Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Jul. 31, 2017 | Aug. 31, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
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 | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 98,183,165 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Sales and revenues | ||||
Sales of manufactured products, net | $ 2,178 | $ 2,052 | $ 5,870 | $ 5,946 |
Finance revenues | 35 | 34 | 102 | 102 |
Sales and revenues, net | 2,213 | 2,086 | 5,972 | 6,048 |
Costs and expenses | ||||
Costs of products sold | 1,803 | 1,757 | 4,949 | 5,068 |
Restructuring charges | (13) | 5 | (4) | 11 |
Asset impairment charges | 6 | 12 | 13 | 17 |
Selling, general and administrative expenses | 233 | 197 | 654 | 604 |
Engineering and product development costs | 61 | 62 | 189 | 181 |
Interest expense | 91 | 84 | 262 | 246 |
Other income, net | (8) | (15) | (7) | (62) |
Total costs and expenses | 2,173 | 2,102 | 6,056 | 6,065 |
Equity in income of non-consolidated affiliates | 1 | 2 | 6 | 3 |
Income (loss) from continuing operations before income taxes | 41 | (14) | (78) | (14) |
Income Tax Expense (Benefit) | 0 | 14 | 10 | 25 |
Income (loss) from continuing operations | 41 | (28) | (88) | (39) |
Income from discontinued operations, net of tax | 1 | 0 | 1 | 0 |
Net income (loss) | 42 | (28) | (87) | (39) |
Less: Net income attributable to non-controlling interests | (5) | (6) | (18) | (24) |
Income (loss) from continuing operations, net of tax | 36 | (34) | (106) | (63) |
Income from discontinued operations, net of tax | 1 | 0 | 1 | 0 |
Net income (loss) attributable to Navistar International Corporation | $ 37 | $ (34) | $ (105) | $ (63) |
Earnings (loss) per share attributable to Navistar International Corporation: | ||||
Basic: Loss from Continuing Operations (in dollars per share) | $ 0.37 | $ (0.42) | $ (1.16) | $ (0.77) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0.01 | 0 | 0.01 | 0 |
Earnings Per Share, Basic | 0.38 | (0.42) | (1.15) | (0.77) |
Diluted: Loss from Continuing Operations (in dollars per share) | 0.37 | (0.42) | (1.16) | (0.77) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0.01 | 0 | 0.01 | 0 |
Earnings Per Share, Diluted | $ 0.38 | $ (0.42) | $ (1.15) | $ (0.77) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 98.3 | 81.7 | 91.1 | 81.7 |
Diluted (in shares) | 98.6 | 81.7 | 91.1 | 81.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 42 | $ (28) | $ (87) | $ (39) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 42 | (10) | 34 | 7 |
Defined benefit plans, net of tax | 125 | 34 | 194 | 82 |
Total other comprehensive income | 167 | 24 | 228 | 89 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 209 | (4) | 141 | 50 |
Less: Net income attributable to non-controlling interests | 5 | 6 | 18 | 24 |
Total comprehensive income (loss) attributable to Navistar International Corporation | $ 204 | $ (10) | $ 123 | $ 26 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 31, 2017 | Oct. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 911 | $ 804 |
Restricted cash and cash equivalents | 81 | 64 |
Marketable securities | 62 | 46 |
Trade and other receivables, net | 311 | 276 |
Finance receivables, net | 1,557 | 1,457 |
Inventories, net | 979 | 944 |
Other current assets | 181 | 168 |
Total current assets | 4,082 | 3,759 |
Restricted cash | 56 | 48 |
Trade and other receivables, net | 18 | 16 |
Finance receivables, net | 231 | 220 |
Investments in non-consolidated affiliates | 55 | 53 |
Property and equipment (net of accumulated depreciation and amortization of $2,500 and $2,553, respectively) | 1,333 | 1,241 |
Goodwill | 38 | 38 |
Intangible assets (net of accumulated amortization of $130 and $124, respectively) | 44 | 53 |
Deferred taxes, net | 141 | 161 |
Other noncurrent assets | 82 | 64 |
Total assets | 6,080 | 5,653 |
Current liabilities | ||
Notes payable and current maturities of long-term debt | 965 | 907 |
Accounts payable | 1,213 | 1,113 |
Other current liabilities | 1,137 | 1,183 |
Total current liabilities | 3,315 | 3,203 |
Long-term debt | 4,255 | 3,997 |
Postretirement benefits liabilities | 2,747 | 3,023 |
Other noncurrent liabilities | 686 | 723 |
Total liabilities | 11,003 | 10,946 |
Stockholders’ deficit | ||
Series D convertible junior preference stock | 2 | 2 |
Common stock (103.1 and 86.8 shares issued, respectively, and $0.10 par value per share and 220 shares authorized at both dates) | 10 | 9 |
Additional paid-in capital | 2,733 | 2,499 |
Accumulated deficit | (5,068) | (4,963) |
Accumulated other comprehensive loss | (2,412) | (2,640) |
Common stock held in treasury, at cost (4.9 and 5.2 shares, respectively) | (190) | (205) |
Total stockholders’ deficit attributable to Navistar International Corporation | (4,925) | (5,298) |
Stockholders’ equity attributable to non-controlling interests | 2 | 5 |
Total stockholders’ deficit | (4,923) | (5,293) |
Total liabilities and stockholders’ deficit | $ 6,080 | $ 5,653 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jul. 31, 2017 | Oct. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation and amortization | $ 2,500 | $ 2,553 |
Intangible assets, accumulated amortization | $ 133 | $ 124 |
Common stock, par value | $ 0.1 | $ 0.10 |
Common stock, shares authorized | 220 | 220 |
Common stock, shares issued | 103.1 | 86.8 |
Common stock held in treasury, shares | 4.9 | 5.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Cash flows from operating activities | ||
Net income (loss) | $ (87) | $ (39) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 113 | 111 |
Depreciation of equipment leased to others | 56 | 53 |
Deferred taxes, including change in valuation allowance | (16) | 0 |
Asset impairment charges | 13 | 17 |
Gain (Loss) on Sales of Investments and Businesses, Net | 5 | (2) |
Amortization of debt issuance costs and discount | 36 | 27 |
Stock-based compensation | 19 | 9 |
Provision for doubtful accounts, net of dividends | 9 | 9 |
Equity in income of non-consolidated affiliates, net of dividends | 1 | 5 |
Write off of debt issuance cost and discount | 4 | 0 |
Other non-cash operating activities | (21) | (12) |
Changes in other assets and liabilities, exclusive of businesses disposed | (290) | (196) |
Net cash used in operating activities | (168) | (14) |
Cash flows from investing activities | ||
Payments to Acquire Marketable Securities | (619) | (378) |
Sales of marketable securities | 586 | 358 |
Maturities of marketable securities | 17 | 39 |
Net change in restricted cash and cash equivalents | (25) | (64) |
Capital expenditures | (93) | (83) |
Purchases of equipment leased to others | (96) | (94) |
Proceeds from sales of property and equipment | 32 | 20 |
Investments in non-consolidated affiliates | (2) | (1) |
Proceeds from sales of affiliates | 6 | 36 |
Net Cash Provided by (Used in) Investing Activities | (194) | (167) |
Cash flows from financing activities | ||
Proceeds from issuance of secured debt | 278 | 72 |
Principal payments on secured debt | (326) | (69) |
Net change in secured revolving credit facilities | 119 | 26 |
Proceeds from issuance of non-securitized debt | 491 | 163 |
Principal payments on non-securitized debt | (368) | (235) |
Net change in notes and debt outstanding under revolving credit facilities | 23 | (151) |
Repayments of Debt and Capital Lease Obligations | (1) | (1) |
Debt issuance costs | (22) | (12) |
Proceeds from finance lease obligations | 49 | 17 |
Proceeds from Issuance of Common Stock | 256 | 0 |
Payments of Stock Issuance Costs | (11) | 0 |
Proceeds from exercise of stock options | 4 | 0 |
Dividends paid by subsidiaries to non-controlling interest | (21) | (28) |
Other financing activities | (3) | 1 |
Net cash provided by (used in) financing activities | 468 | (217) |
Effect of exchange rate changes on cash and cash equivalents | 1 | 33 |
Increase (decrease) in cash and cash equivalents | 107 | (365) |
Cash and cash equivalents | 804 | 912 |
Cash and cash equivalents | $ 911 | $ 547 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) $ in Millions | Total | Convertible Junior Preference Stock Series D [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, 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 | 0 | 0 | 0 | 0 | 0 | 24 | |
Net income (loss) | (39) | |||||||
Total other comprehensive income | 89 | 0 | 0 | 0 | 0 | 89 | 0 | 0 |
Stock-based compensation | 3 | 0 | 0 | 3 | 0 | 0 | 0 | 0 |
Stock ownership programs | 0 | 0 | 0 | (4) | 0 | 0 | 4 | 0 |
Dividends paid by subsidiaries to non-controlling interest | (28) | 0 | 0 | 0 | 0 | 0 | 0 | (28) |
Payments of Stock Issuance Costs | 0 | |||||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 1 | 0 | 0 | 1 | 0 | 0 | 0 | 0 |
Stockholders' Equity balance at end of period at Jul. 31, 2016 | (5,134) | 2 | 9 | 2,499 | (4,929) | (2,512) | (206) | 3 |
Stockholders' Equity balance at beginning of period at Oct. 31, 2016 | (5,293) | 2 | 9 | 2,499 | (4,963) | (2,640) | (205) | 5 |
Net loss attributable to Navistar International Corporation | (105) | 0 | 0 | 0 | (105) | 0 | 0 | |
Less: Net income attributable to non-controlling interests | 18 | |||||||
Net income (loss) | (87) | |||||||
Total other comprehensive income | 228 | 0 | 0 | 0 | 0 | 228 | 0 | 0 |
Stock-based compensation | 4 | 0 | 0 | 4 | 0 | 0 | 0 | 0 |
Stock ownership programs | 2 | 0 | 0 | (13) | 0 | 0 | 15 | 0 |
Dividends paid by subsidiaries to non-controlling interest | (21) | 0 | 0 | 0 | 0 | 0 | 0 | (21) |
Issuance of common stock | 256 | 0 | 2 | 254 | 0 | 0 | 0 | 0 |
Payments of Stock Issuance Costs | (11) | 0 | 0 | (11) | 0 | 0 | 0 | 0 |
Stockholders' Equity, Other | (1) | 0 | (1) | 0 | 0 | 0 | 0 | 0 |
Stockholders' Equity balance at end of period at Jul. 31, 2017 | $ (4,923) | $ 2 | $ 10 | $ 2,733 | $ (5,068) | $ (2,412) | $ (190) | $ 2 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jul. 31, 2017 | |
Accounting Policies [Abstract] | |
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. ("NI") 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 11, Segment Reporting . Our fiscal year ends on October 31. As such, all references to 2017 and 2016 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, 2016 , 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. |
Significant Accounting Policies [Text Block] | 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. ("NI") 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 11, Segment Reporting . Our fiscal year ends on October 31. As such, all references to 2017 and 2016 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, 2016 , 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, LLC ("BDP") joint venture with Ford Motor Company ("Ford"). As a result, our Consolidated Balance Sheets include assets of $35 million and $51 million and liabilities of $13 million and $16 million as of July 31, 2017 and October 31, 2016 , respectively, including $3 million and $6 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. Our Financial Services segment consolidates several VIEs. As a result, our Consolidated Balance Sheets include secured assets of $901 million and $865 million as of July 31, 2017 and October 31, 2016 , respectively, and liabilities of $773 million and $722 million as of July 31, 2017 and October 31, 2016 , 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 $242 million and $249 million as of July 31, 2017 and October 31, 2016 , respectively, and corresponding liabilities of $156 million and $136 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. Inventories Inventories are valued at the lower of cost or market. Cost is principally determined using the first-in, first-out method. Our gross used truck inventory decreased to $280 million at July 31, 2017 from $410 million at October 31, 2016 , offset by reserves of $174 million and $208 million , respectively. 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. The following table presents the activity in our used truck reserve: Nine Months Ended July 31, (in millions) 2017 2016 Balance at beginning of period $ 208 $ 110 Additions charged to expense (A) 102 124 Deductions/Other adjustments (B) (136 ) (68 ) Balance at end of period $ 174 $ 166 _________________________ (A) Additions charged to expense reflect the increase of the reserve for inventory on hand. During the second quarter of 2017, we implemented a shift in market mix to include an increase in volume to certain export markets, which have a lower price point as compared to sales through our domestic channels, and lower domestic pricing to enable higher sales velocity. In the third quarter of 2017 and 2016, we recorded a charge of $14 million and $40 million , respectively, in Costs of Products Sold in our Consolidated Statements of Operations. (B) Deductions/Other adjustments reflect reductions of the reserve primarily related to the sale of units to certain export markets and our currency translation adjustments. Property and Equipment We report land, buildings, leasehold improvements, machinery and equipment (including tooling and pattern equipment), furniture, fixtures, and equipment, and equipment leased to others at cost, net of depreciation. We initially record assets under capital lease obligations at the lower of their fair value or the present value of the aggregate future minimum lease payments. We depreciate our assets using the straight-line method over the shorter of the lease term or the estimated useful lives of the assets. We test for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset or asset group (hereinafter referred to as "asset group") may not be recoverable by comparing the sum of the estimated undiscounted future cash flows expected to result from the operation of the asset group and its eventual disposition to the carrying value. During the third quarter of 2017, we identified a triggering event related to continued economic weakness in Brazil which resulted in the decline in forecasted results for the Brazilian asset group. The Brazilian asset group is included in the Global Operations segment. As a result, we estimated the recoverable amount of the asset group and determined that the sum of the undiscounted future cash flows exceeds the carrying value and the asset group was not impaired. Significant adverse changes to our business environment and future cash flows could cause us to record impairment charges in future periods, which could be material. Product Warranty Liability The following table presents accrued product warranty and deferred warranty revenue activity: Nine Months Ended July 31, (in millions) 2017 2016 Balance at beginning of period $ 818 $ 994 Costs accrued and revenues deferred 137 141 Currency translation adjustment — 2 Adjustments to pre-existing warranties (A) (4 ) 70 Payments and revenues recognized (292 ) (339 ) Balance at end of period 659 868 Less: Current portion 340 423 Noncurrent accrued product warranty and deferred warranty revenue $ 319 $ 445 _________________________ (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 pre-existing charges primarily related to increases in both claim frequency and cost of repair across both the Medium Duty and Big Bore engine families. These charges increase the reserve for Navistar's standard warranty obligations as well as the loss positions related to our Big Bore extended service contract. Extended Warranty Programs The amount of deferred revenue related to extended warranty programs was $280 million and $325 million at July 31, 2017 and October 31, 2016 , respectively. Revenue recognized under our extended warranty programs was $28 million and $109 million for the three and nine months ended July 31, 2017 , respectively, and $37 million and $113 million for the three and nine months ended July 31, 2016 , 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, 2017 , approximately 6,600 , or 94% , of our hourly workers and approximately 900 , or 17% , 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, tax 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). Recently Issued Accounting Standards In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-01, "Business Combinations" (Topic 805). This ASU provides a new framework for determining whether transactions should be accounted for as acquisitions or disposals of assets or businesses. This ASU creates an initial screening test (Step 1) that reduces the population of transactions that an entity needs to analyze to determine whether there is an input and substantive processes in the acquisition or disposal (Step 2). Fewer transactions are expected to involve acquiring or selling a business. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. Our effective date for this ASU is November 1, 2018. Adoption will require a prospective transition. We do not expect the impact of this ASU to have a material effect on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows" (Topic 230). This ASU requires that a statement of cash flows explain the change during the period in the total of cash, and cash equivalents, including amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. Our effective date for this ASU is November 1, 2018. Adoption will require a retrospective transition. We do not expect the impact of this ASU to have a material effect on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes” (Topic 740). This ASU update requires entities to recognize the income tax consequences of many intercompany asset transfers at the transaction date. The seller and buyer will immediately recognize the current and deferred income tax consequences of an intercompany transfer of an asset other than inventory. The tax consequences were previously deferred. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. Our effective date for this ASU is November 1, 2018. Adoption will require a modified retrospective transition. We are currently evaluating 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. Adoption will require a modified retrospective transition. Our effective date is November 1, 2020. We are currently evaluating 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 impact of this ASU on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (Topic 606), which supersedes the revenue recognition requirements in ASC 605, "Revenue Recognition." This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. 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 in the process of completing our initial assessment of the potential impact on our consolidated financial statements and have not concluded on our adoption methodology. |
Restructuring and Impairments
Restructuring and Impairments | 9 Months Ended |
Jul. 31, 2017 | |
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 excludes pension and other postretirement contractual termination benefits: (in millions) Balance at October 31, 2016 Additions Payments Adjustments Balance at July 31, 2017 Employee termination charges $ 5 $ 15 $ (11 ) $ — $ 9 Lease vacancy 1 — (1 ) — — Other 1 — — — 1 Restructuring liability $ 7 $ 15 $ (12 ) $ — $ 10 (in millions) Balance at 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 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 an additional charge of $14 million related to the 2011 closure of the Chatham, Ontario plant. Unsuccessful efforts to appeal the ruling in the Ontario court system ended in December 2015. On April 25, 2016, we filed a qualified partial wind-up report for approval by the Financial Services Commission of Ontario ("FSCO"). On January 12, 2017, FSCO issued its approval of the partial wind-up report. On February 27, 2017, we finalized the resolution of statutory severance pay for former employees related to the closure of our Chatham, Ontario plant, resulting in a charge of $6 million in the first quarter of 2017. During the third quarter of 2017, we finalized the Chatham closure agreement. This resulted in the release of $66 million in other post-employment benefit ("OPEB") liabilities. In addition, a pension settlement accounting charge of $23 million was recorded as a result of lump-sum payments made to certain pension plan participants. These charges and benefits were recorded in our Truck segment within Restructuring charges in our Consolidated Statements of Operation s. Melrose Park Facility restructuring activities In the third quarter of 2017, we committed to a plan to cease engine production at our plant in Melrose Park, Illinois. (“Melrose Park Facility”) in the second quarter of fiscal year 2018. As a result, in the third quarter of 2017, we recognized charges of $41 million in our Truck segment. The charges include $23 million related to pension and OPEB liabilities and $8 million for severance pay recorded in Restructuring charges in our Consolidated Statements of Operations. We also recorded $10 million of inventory reserves and other related charges Costs of products sold in our Consolidated Statements of Operations. See Note 7, Postretirement benefits for further discussion. Asset Impairments In the three and nine months ended July 31, 2017 , we concluded that we had a triggering event in connection with the sale of our fabrication business in Conway, Arkansas requiring the impairment of certain assets. As a result, we recorded charges of $5 million in our Truck segment. In August 2017, we completed the sale of the business. In the three and nine months ended July 31, 2017 , we concluded that we had triggering events related to certain assets under operating leases. As a result, we recorded charges of $1 million and $8 million , respectively, in our Truck segment. In the three and nine months ended July 31, 2016, we concluded that we had triggering events related to certain long-lived assets. As a result, we recorded impairment charges of $11 million and $16 million , respectively, in our Truck segment. In the nine months ended July 31, 2016 , we concluded that we had a triggering event in connection with the potential sale of Pure Power Technologies, LLC ("PPT"), a components business focused on air and fuel systems, requiring the impairment of certain assets. As a result, we recorded charges of $3 million in our Truck segment. In February 2016, we completed the sale of PPT. These charges were recorded in Asset impairment charges in our Consolidated Statements of Operations. See Note 9, Fair Value Measurements , for information on the valuation of impaired operating leases and other assets. |
Finance Receivables
Finance Receivables | 9 Months Ended |
Jul. 31, 2017 | |
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 were $2.2 billion and $2.1 billion as of July 31, 2017 and October 31, 2016 , respectively. Included in total assets of our Financial Services operations were finance receivables of $1.8 billion and $1.7 billion as of July 31, 2017 and October 31, 2016 , 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, 2017 October 31, 2016 Retail portfolio $ 520 $ 499 Wholesale portfolio 1,291 1,199 Total finance receivables 1,811 1,698 Less: Allowance for doubtful accounts 23 21 Total finance receivables, net 1,788 1,677 Less: Current portion, net (A) 1,557 1,457 Noncurrent portion, net $ 231 $ 220 _________________________ (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, 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, 2017 and October 31, 2016 , 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 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 $820 million and $829 million as of July 31, 2017 and October 31, 2016 , respectively. Other finance receivables related to secured transactions that do not qualify for sale accounting treatment were $122 million and $108 million as of July 31, 2017 and October 31, 2016 , 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) 2017 2016 2017 2016 Retail notes and finance leases revenue $ 11 $ 9 $ 30 $ 28 Wholesale notes interest 28 29 75 81 Operating lease revenue 17 17 50 49 Retail and wholesale accounts interest 6 5 17 19 Gross finance revenues 62 60 172 177 Less: Intercompany revenues 27 26 70 75 Finance revenues $ 35 $ 34 $ 102 $ 102 |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 9 Months Ended |
Jul. 31, 2017 | |
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, 2017 Three Months Ended July 31, 2016 (in millions) Retail Wholesale Trade and Total Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 21 $ 2 $ 28 $ 51 $ 21 $ 4 $ 26 $ 51 Provision for doubtful accounts, net of recoveries (1 ) 1 1 1 2 (1 ) — 1 Charge-off of accounts (1 ) — — (1 ) (3 ) — (1 ) (4 ) Other (A) 1 — — 1 (2 ) — 2 — Allowance for doubtful accounts, at end of period $ 20 $ 3 $ 29 $ 52 $ 18 $ 3 $ 27 $ 48 Nine Months Ended July 31, 2017 Nine Months Ended July 31, 2016 (in millions) Retail Wholesale Trade and Total Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 19 $ 2 $ 28 $ 49 $ 22 $ 4 $ 22 $ 48 Provision for doubtful accounts, net of recoveries 5 1 2 8 5 (1 ) 4 8 Charge-off of accounts (5 ) — (1 ) (6 ) (7 ) — (2 ) (9 ) Other (A) 1 — — 1 (2 ) — 3 1 Allowance for doubtful accounts, at end of period $ 20 $ 3 $ 29 $ 52 $ 18 $ 3 $ 27 $ 48 ____________________ (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, 2017 October 31, 2016 (in millions) Retail Wholesale Total Retail Wholesale Total Impaired finance receivables with specific loss reserves $ 20 $ — $ 20 $ 15 $ — $ 15 Impaired finance receivables without specific loss reserves — — — — — — Specific loss reserves on impaired finance receivables 9 — 9 8 — 8 Finance receivables on non-accrual status 20 — 20 15 — 15 The average balances of the impaired finance receivables in the retail portfolio were $19 million and $18 million during the nine months ended July 31, 2017 and 2016 , respectively. See Note 9, Fair Value Measurements , for information on the valuation of impaired finance receivables. 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, 2017 October 31, 2016 (in millions) Retail Wholesale Total Retail Wholesale Total Current, and up to 30 days past due $ 465 $ 1,290 $ 1,755 $ 449 $ 1,198 $ 1,647 30-90 days past due 39 1 40 37 — 37 Over 90 days past due 16 — 16 13 1 14 Total finance receivables $ 520 $ 1,291 $ 1,811 $ 499 $ 1,199 $ 1,698 |
Inventories
Inventories | 9 Months Ended |
Jul. 31, 2017 | |
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 $ 631 $ 678 Work in process 66 46 Raw materials 282 220 Total inventories, net $ 979 $ 944 |
Debt
Debt | 9 Months Ended |
Jul. 31, 2017 | |
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, 2017 October 31, 2016 Manufacturing operations Senior Secured Term Loan Credit Facility, as amended, due 2020, net of unamortized discount of $9 and $14, respectively, and unamortized debt issuance costs of $11 and $7, respectively $ 1,001 $ 1,009 8.25% Senior Notes, due 2022 net of unamortized discount of $14 and $15, respectively, and unamortized debt issuance costs of $14 and $12, respectively 1,422 1,173 4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $6 and $10, respectively, and unamortized debt issuance costs of $1 at both dates 193 189 4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $17 and $24, respectively, and unamortized debt issuance costs of $3 and $4, respectively 391 383 Financing arrangements and capital lease obligations 36 42 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040, net of unamortized debt issuance costs of $5 at both dates 220 220 Financed lease obligations 127 52 Other 34 28 Total Manufacturing operations debt 3,424 3,096 Less: Current portion 114 71 Net long-term Manufacturing operations debt $ 3,310 $ 3,025 (in millions) July 31, 2017 October 31, 2016 Financial Services operations Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2022 , net of unamortized debt issuance costs of $6 at both dates $ 822 $ 753 Bank credit facilities, at fixed and variable rates, due dates from 2017 through 2023, net of unamortized debt issuance costs of $2 and $3, respectively 774 861 Commercial paper, at variable rates, program matures in 2022 100 96 Borrowings secured by operating and finance leases, at various rates, due serially through 2022 100 98 Total Financial Services operations debt 1,796 1,808 Less: Current portion 851 836 Net long-term Financial Services operations debt $ 945 $ 972 Manufacturing Operations Senior Secured Term Loan Credit Facility In February 2017, the Senior Secured Term Loan Credit Facility ("Term Loan") was amended, pursuant to which the Company's remaining approximately $1.0 billion loan was repriced and provisions regarding European Union bail-in legislation were inserted. The amendment reduces the interest rate applicable to the outstanding loan by 1.50% . Under the terms of the amendment, the interest rate on the outstanding loan is based, at our option, on an adjusted Eurodollar Rate, plus a margin of 4.00% , or a Base Rate, plus a margin of 3.00% . In connection with the amendment, we paid a consent fee equal to 0.25% of the aggregate principal amount, a call protection fee equal to 1.00% of the aggregate principal amount, and certain other fees. During the second quarter of 2017, we recorded a charge of $4 million related to certain third party fees and debt issuance costs associated with the repricing of our Term Loan. The remaining debt issuance costs were recorded as a direct deduction from the carrying amount of the Term Loan and will be amortized through Interest expense over the remaining life of the Term Loan. Senior Notes In October 2009, we completed the sale of $1.0 billion aggregate principal amount of our 8.25% Senior Notes due 2022 ("Senior Notes"). In March 2013, we completed the sale of an additional $300 million aggregate principal amount of Senior Notes. In January 2017, we issued an additional $250 million aggregate principal amount of Senior Notes. Interest related to the Senior Notes is payable on May 1 and November 1 of each year until the maturity date of November 1, 2021. The Senior Notes are senior unsecured obligations of the Company. We received net proceeds of approximately $250 million from the January 2017 issuance of additional Senior Notes, which included accrued interest of $4 million , offset by underwriter fees of $4 million . The debt issuance costs were recorded as a direct deduction from the carrying amount of the Senior Notes and will be amortized through Interest expense over the remaining life of the Senior Notes. As a result of the transaction, the effective interest rate of the Senior Notes is now 8.5% . The proceeds from the January 2017 sale of additional Senior Notes are being used for general corporate purposes, including working capital and capital expenditures. Amended and Restated Asset-Based Credit Facility In August 2017, we amended and extended our Amended and Restated Asset-Based Credit Facility which was originally due in May 2018. The 2017 amendment extended the maturity date to August 2022, subject to a springing maturity based upon the maturity of our Term Loan and Senior Notes, and reduced the revolving facility from $175 million to a maximum of $125 million. Our borrowing capacity under the amended facility was previously subject to a $35 million liquidity block and is now subject to a $13 million liquidity block, less outstanding standby letters of credit issued under this facility, and is impacted by inventory levels at certain aftermarket parts inventory locations. As of July 31, 2017, we had no borrowings, and we have limited availability to borrow under the Amended and Restated Asset-Based Credit Facility. However, we maintain capacity under our various debt arrangements to incur incremental debt. Financial Services Operations Asset-backed Debt In November 2016, the maturity date of the variable funding notes ("VFN") facility was extended from May 2017 to November 2017, and the maximum capacity was reduced from $500 million to $450 million . In May 2017, the VFN was extended to May 2018, and the maximum capacity was reduced to $425 million . The VFN facility is secured by assets of the wholesale note owner trust. In May 2017, Truck Retail Accounts Corporation ("TRAC"), one of our consolidated SPEs, renewed its $100 million revolving facility to April 2018. Borrowings under this facility are secured by eligible retail accounts receivable. In June 2017, Navistar Financial Securities Corporation ("NFSC") issued $250 million of two-year investor notes secured by assets of the wholesale note owner trust. Proceeds were used, in part, to replace the $250 million of investor notes that matured in June 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 extended the maturity date to June 2018 and initially reduced the revolving portion of the facility from $500 million to $400 million . In December 2016, and in accordance with the amendment, the revolving portion of the facility was reduced to a maximum of $275 million , the term loan portion of the facility was paid down to $82 million , and the quarterly principal payments were reduced from $9 million to $2 million . The borrowings on the revolving portion of the facility totaled $274 million as of July 31, 2017 . The balance of the term loan portion of the facility was $78 million as of July 31, 2017 . 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. Commercial Paper Effective February 2017, our Mexican financial services operation entered into a five -year commercial paper program for up to ₱1.8 billion (the equivalent of approximately US $102 million at July 31, 2017 ). This program replaced the program that matured in December 2016. |
Postretirement Benefits
Postretirement Benefits | 9 Months Ended |
Jul. 31, 2017 | |
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, 2017 , we contributed $21 million and $67 million , respectively, and for the three and nine months ended July 31, 2016 , $20 million and $60 million , respectively, to our pension plans to meet regulatory funding requirements. We expect to contribute approximately $46 million to our pension plans during the remainder of 2017 . We primarily fund OPEB obligations, such as retiree medical, in accordance with the 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, 2017 , and 2016 , as well as anticipated contributions for the remainder of 2017 , are not material. Components of Net Periodic Benefit Expense Net periodic benefit expense included in our Consolidated Statements of Operations, and other amounts recognized in our Consolidated Statements of Stockholders' Deficit , for the periods ended July 31 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) 2017 2016 2017 2016 2017 2016 2017 2016 Service cost for benefits earned during the period $ 2 $ 2 $ 1 $ 1 $ 6 $ 7 $ 4 $ 4 Interest on obligation 27 29 11 14 80 88 35 44 Amortization of cumulative loss 30 26 6 8 89 78 17 24 Amortization of prior service benefit — — — — — — — (1 ) Settlements 23 — — — 23 — — — Contractual termination benefits 9 1 4 4 10 3 4 4 Curtailments and other — — (58 ) — — — (58 ) — Premiums on pension insurance 4 4 — — 12 12 — — Expected return on assets (40 ) (41 ) (5 ) (6 ) (119 ) (125 ) (17 ) (19 ) Net periodic benefit expense $ 55 $ 21 $ (41 ) $ 21 $ 101 $ 63 $ (15 ) $ 56 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. In April 2016, we filed a qualified partial wind-up report for approval by FSCO related to the 2011 closure of our Chatham, Ontario plant. FSCO provided formal approval in January 2017. As a result of an ongoing administration review ordered in conjunction with the partial wind-up, we recognized $1 million of contractual termination charges in the first quarter of 2017. During the third quarter of 2017, we finalized the Chatham closure agreement. This resulted in the release of $66 million in other postemployment benefit ("OPEB") liabilities. In addition, a pension settlement accounting charge of $23 million was recorded as a result of lump-sum payments made to certain pension plan participants. These charges and benefits were recorded in our Truck segment within Restructuring charges in our Consolidated Statements of Operation s. See Note 2, Restructurings and Impairments for further discussion. As a result of the pension and OPEB plan remeasurements in connection with the finalization of the Chatham closure agreement, net actuarial gains of $21 million were recognized as a component of Accumulated other comprehensive loss in the third quarter of 2017. In the third quarter of 2017, we committed to a plan to cease engine production at our Melrose Park Facility in the second quarter of fiscal year 2018. As a result, in the third quarter of 2017, we recognized $9 million of pension and $4 million of OPEB contractual termination benefits charges and $10 million of OPEB curtailment charges. These charges were recorded in our Truck segment within Restructuring charges in our Consolidated Statements of Operations. See Note 2, Restructurings and Impairments for further discussion. A pension curtailment gain of $2 million and net actuarial gains of $91 million resulting from pension and OPEB remeasurements in connection with our Melrose Park Facility announcement were recognized as a component of Accumulated other comprehensive loss in the third quarter of 2017. Also, in the third quarter of 2017, in accordance with the intraperiod tax allocation rules, we recorded a net benefit of $35 million related to domestic continuing operations in Income tax expense in our Consolidated Statements of Operations , and an offsetting reduction in Other comprehensive income due to the remeasurement of certain pension and OPEB plans. 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, 2017 , and 2016, 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 10, Commitments and Contingencies . |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 31, 2017 | |
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 cumulative 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 third quarter of 2017, in accordance with the intraperiod tax allocation rules, we recorded a net benefit of $35 million in Income tax expense related to domestic continuing operations, and an offsetting reduction in Other comprehensive income, which resulted from gains due to the remeasurement of certain pension and OPEB plans. The net benefit was offset by an increase in foreign taxes in Canada and Mexico. For more information, see Note 7, Postretirement Benefits. We have evaluated the need to maintain a valuation allowance for deferred tax assets based on our assessment of whether it is more likely than not that deferred tax benefits will be realized through the generation of future taxable income. Appropriate consideration is given to all available evidence, both positive and negative, in assessing the need for a valuation allowance. We continue to maintain a valuation allowance on the majority of our U.S. deferred tax assets as well as certain foreign deferred tax assets that we believe, on a more-likely-than-not basis, will not be realized based on current forecasted results. For all remaining deferred tax assets, while we believe that it is more likely than not that they will be realized, we believe that it is reasonably possible that additional deferred tax asset valuation allowances could be required in the next twelve months. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of July 31, 2017 , the amount of liability for uncertain tax positions was $49 million . The liability at July 31, 2017 has a recorded offsetting tax benefit associated with various issues that total $14 million . If the unrecognized tax benefits are recognized, all would impact our effective tax rate. However, to the extent we continue to maintain a full valuation allowance against certain deferred tax assets, the effect may be in the form of an increase in the deferred tax asset related to our net operating loss carryforward, which would be offset by a full valuation allowance. We recognize interest and penalties related to uncertain tax positions as part of Income tax expense . For the three and nine months ended July 31, 2017 , total interest and penalties related to our uncertain tax positions resulted in an income tax expense of less than $1 million , and $1 million , respectively. 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, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | 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. Guarantees —We provide certain guarantees of payments and residual values, to which losses are generally capped, to specific counterparties. The fair value of these guarantees includes a contingent component and a non-contingent component that are based upon internally developed models using unobservable inputs. We classify these liabilities within Level 3. For more information regarding guarantees, see Note 10, Commitments and Contingencies. Impaired Finance Receivables and Impaired Assets Under Operating Leases — Fair values of the underlying collateral are determined by current and forecasted sales prices, aging of and demand for used trucks, and the mix of sales through various market channels. For more information regarding impaired finance receivables, see Note 4, Allowance for Doubtful Accounts, and for more information regarding impaired assets under operating leases, see Note 2, Restructuring and Impairments . Impaired Property, Plant and Equipment — We measure the fair value by discounting future cash flows expected to be received from the operation of, or disposition of, the asset or asset group that has been determined to be impaired. For more information regarding the impairment of property, plant and equipment, see Note 2, Restructuring and Impairments . The following table presents the financial instruments measured at fair value on a recurring basis: As of July 31, 2017 As of October 31, 2016 (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Marketable securities: U.S. Treasury bills $ 3 $ — $ — $ 3 $ 6 $ — $ — $ 6 Other 59 — — 59 40 — — 40 Derivative financial instruments: Commodity forward contracts (A) — 2 — 2 — 2 — 2 Foreign currency contracts (A) — 1 — 1 — — — — Interest rate caps (B) — 1 — 1 — 1 — 1 Total assets $ 62 $ 4 $ — $ 66 $ 46 $ 3 $ — $ 49 Liabilities Derivative financial instruments: Foreign currency contracts (C) $ — $ 9 $ — $ 9 $ — $ — $ — $ — Guarantees — — 19 19 — — 23 23 Total liabilities $ — $ 9 $ 19 $ 28 $ — $ — $ 23 $ 23 _________________________ (A) The asset value of commodity forward contracts and foreign currency contracts is included in Other current assets in the accompanying Consolidated Balance Sheets . (B) The asset value of interest rate caps is included in Other noncurrent assets in the accompanying Consolidated Balance Sheets. (C) The liability value of foreign currency contracts is included in Other current liabilities 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) 2017 2016 2017 2016 Guarantees, at beginning of period $ (19 ) $ (19 ) $ (23 ) $ (10 ) Transfers out of Level 3 — — — — Net terminations (issuances) — (5 ) 1 (16 ) Settlements — 1 3 3 Guarantees, at end of period $ (19 ) $ (23 ) $ (19 ) $ (23 ) 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. |
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. Guarantees —We provide certain guarantees of payments and residual values, to which losses are generally capped, to specific counterparties. The fair value of these guarantees includes a contingent component and a non-contingent component that are based upon internally developed models using unobservable inputs. We classify these liabilities within Level 3. For more information regarding guarantees, see Note 10, Commitments and Contingencies. Impaired Finance Receivables and Impaired Assets Under Operating Leases — Fair values of the underlying collateral are determined by current and forecasted sales prices, aging of and demand for used trucks, and the mix of sales through various market channels. For more information regarding impaired finance receivables, see Note 4, Allowance for Doubtful Accounts, and for more information regarding impaired assets under operating leases, see Note 2, Restructuring and Impairments . Impaired Property, Plant and Equipment — We measure the fair value by discounting future cash flows expected to be received from the operation of, or disposition of, the asset or asset group that has been determined to be impaired. For more information regarding the impairment of property, plant and equipment, see Note 2, Restructuring and Impairments . The following table presents the financial instruments measured at fair value on a recurring basis: As of July 31, 2017 As of October 31, 2016 (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Marketable securities: U.S. Treasury bills $ 3 $ — $ — $ 3 $ 6 $ — $ — $ 6 Other 59 — — 59 40 — — 40 Derivative financial instruments: Commodity forward contracts (A) — 2 — 2 — 2 — 2 Foreign currency contracts (A) — 1 — 1 — — — — Interest rate caps (B) — 1 — 1 — 1 — 1 Total assets $ 62 $ 4 $ — $ 66 $ 46 $ 3 $ — $ 49 Liabilities Derivative financial instruments: Foreign currency contracts (C) $ — $ 9 $ — $ 9 $ — $ — $ — $ — Guarantees — — 19 19 — — 23 23 Total liabilities $ — $ 9 $ 19 $ 28 $ — $ — $ 23 $ 23 _________________________ (A) The asset value of commodity forward contracts and foreign currency contracts is included in Other current assets in the accompanying Consolidated Balance Sheets . (B) The asset value of interest rate caps is included in Other noncurrent assets in the accompanying Consolidated Balance Sheets. (C) The liability value of foreign currency contracts is included in Other current liabilities 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) 2017 2016 2017 2016 Guarantees, at beginning of period $ (19 ) $ (19 ) $ (23 ) $ (10 ) Transfers out of Level 3 — — — — Net terminations (issuances) — (5 ) 1 (16 ) Settlements — 1 3 3 Guarantees, at end of period $ (19 ) $ (23 ) $ (19 ) $ (23 ) 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, 2017 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 152 $ 152 $ 158 Notes receivable — — — — — Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Facility, as Amended, due 2020 — — 1,031 1,031 1,001 8.25% Senior Notes, due 2022 1,447 — — 1,447 1,422 4.50% Senior Subordinated Convertible Notes, due 2018 (A) — — 201 201 193 4.75% Senior Subordinated Convertible Notes, due 2019 (A) — — 413 413 391 Financing arrangements — — 16 16 32 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 — 234 — 234 220 Financed lease obligations — — 127 127 127 Other — — 34 34 34 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2022 — — 828 828 822 Bank credit facilities, at fixed and variable rates, due dates from 2017 through 2023 — — 751 751 774 Commercial paper, at variable rates, program matures in 2022 100 — — 100 100 Borrowings secured by operating and finance leases, at various rates, due serially through 2022 — — 101 101 100 As of October 31, 2016 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 153 $ 153 $ 151 Notes receivable — — 1 1 1 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Facility, as Amended, due 2020 — — 1,037 1,037 1,009 8.25% Senior Notes, due 2022 1,180 — — 1,180 1,173 4.50% Senior Subordinated Convertible Notes, due 2018 (A) — — 189 189 189 4.75% Senior Subordinated Convertible Notes, due 2019 (A) — — 382 382 383 Financing arrangements — — 17 17 37 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 — 233 — 233 220 Financed lease obligations — — 52 52 52 Other — — 26 26 28 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2022 — — 754 754 753 Bank credit facilities, at fixed and variable rates, due dates from 2017 through 2023 — — 851 851 861 Commercial paper, at variable rates, program matures in 2022 96 — — 96 96 Borrowings secured by operating and finance leases, at various rates, due serially through 2022 — — 98 98 98 _________________________ (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. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jul. 31, 2017 | |
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. Under the terms of the Navistar Capital Operating Agreement, BMO Financial Group and its wholly-owned subsidiary BMO Harris Bank N.A. (together "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 and $1.5 billion of outstanding loan principal and operating lease payments receivable at July 31, 2017 and October 31, 2016 , respectively, 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 $2.3 billion and $2.4 billion at July 31, 2017 and October 31, 2016 , 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 $114 million and $48 million and financed lease obligations of $127 million and $51 million , in our Consolidated Balance Sheets as of July 31, 2017 and October 31, 2016 , respectively. We also have issued a limited number of residual value guarantees, for which losses are generally capped. If substantial risk of loss has not transferred, we account for these arrangements as operating leases and revenue is recognized on a straight-line basis over the term of the lease. If substantial risk of loss has transferred, revenue is recognized upon sale and 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. We have recognized liabilities for some of these guarantees in our Consolidated Balance Sheets as they meet recognition and measurement provisions. In addition to the liabilities that have been recognized, we are contingently liable for other potential losses under various guarantees that are not recognized in our Consolidated Balance Sheets . We do not believe claims that may be made under such guarantees would have a material effect on our financial condition, results of operations, or cash flows. 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, 2017 , the amount of stand-by letters of credit and surety bonds was $89 million . In addition, as of July 31, 2017 , we have $21 million of outstanding purchase commitments and contracts with $37 million of cancellation fees with expiration dates through 2021. 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. In addition, other sites formerly owned by us or where we are currently operating have been identified as having soil and groundwater contamination. While investigations and cleanup activities continue at these sites, we believe that we have appropriate 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, 2017 . The majority of these accrued liabilities are expected to be paid subsequent to 2018 . 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"), composed of individuals not appointed by NI or NIC. 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. Following the resolution of a procedural dispute by the U.S. Court of Appeals for the 6 th Circuit, 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. On June 29, 2017, the arbitrator ruled, among other things, that the arbitration will include Supplemental Benefit Trust Profit Sharing Plan calculations for the years ending October 31, 2000 through October 31, 2014. 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. Retiree Health Care Litigation On October 21, 2016, two lawsuits were filed in the U.S. District Court for the Southern District of Ohio relating to postretirement healthcare and life insurance obligations under the 1993 Settlement Agreement. The first lawsuit (the “Committee’s Complaint”) was filed by the Supplemental Benefit Program Committee. The Committee’s Complaint was filed against NIC, NI, NFC and a former affiliate, all of which are parties to the 1993 Settlement Agreement. Since January 1, 2012, the Navistar, Inc. Retiree Health Benefit Trust, created pursuant to the 1993 Settlement Agreement (the “Base Trust”), has received certain Medicare Part D subsidies from the federal Centers for Medicare and Medicaid Services that were made available for prescription drug benefits provided to Medicare-eligible seniors pursuant to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 and has also received certain Medicare Part D coverage-gap discounts from prescription drug manufacturers that were made available to eligible seniors pursuant to the Patient Protection and Affordable Care Act (collectively, the “Subsidies”). The Committee alleges, among other things, that the defendants breached the 1993 Settlement Agreement since January 1, 2012 by causing the Base Trust to allocate the Subsidies in a manner that improperly decreased the defendants’ contributions to the Base Trust and increased retiree contributions. The Committee seeks damages, attorneys’ fees and costs for all alleged violations of the 1993 Settlement Agreement, including approximately $26 million which the Committee alleges is the eligible retirees’ “fair share” of the Subsidies that were allegedly misappropriated by the defendants from January, 2012 through April, 2015. The second lawsuit was filed by two individual members of the Committee (the “Committee Members”) who are retirees and participants in the Navistar, Inc. Health Benefit and Life Insurance Plan (the “Plan”) created pursuant to the 1993 Settlement Agreement. The Committee Members’ complaint (the “Committee Members’ Complaint”) was filed against NIC, NI, NFC and certain other former or current affiliates, all of which are parties or employers as defined in the 1993 Settlement Agreement. The Committee Members allege, among other things, that the Company violated the terms of the Plan, breached a fiduciary duty under the ERISA, and engaged in ERISA-prohibited transactions by improperly using the Plan’s assets (a portion of the Subsidies) for the Company’s benefit. The Committee Members request that the court order the defendants to restore all losses to the Base Trust, including approximately $26 million , which the Committee Members allege is the Plan participants’ “fair share” of the Subsidies that were allegedly misappropriated by the defendants from January 2012 through April 2015. The Committee Members also request that the court enjoin the defendants from alleged future violations of the Plan and ERISA with respect to treatment of the Subsidies, order the defendants to remedy all alleged ERISA-prohibited transactions and pay the Committee Members’ attorneys’ fees and costs. The defendants filed motions to dismiss each respective complaint on January 10, 2017. On May 10, 2017, the court dismissed the Committee's Complaint with prejudice stating that the Committee lacked standing to bring its claims and overruled the defendants' motion to dismiss the Committee Members' Complaint, subject to the parties conducting limited discovery and filing cross-motions for summary judgment on whether the Committee Members' Complaint is barred by the statute of limitations. The parties’ cross-motions for summary judgment are due September 21, 2017. On April 6, 2017, a motion was filed in the U.S. District Court for the Southern District of Ohio relating to postretirement healthcare and life insurance obligations under the 1993 Settlement Agreement. The motion was filed by the current "Other Member" of the Health Benefit Program Committee ("HBPC"). The HBPC is provided for in the 1993 Settlement Agreement and the HBPC currently consists of the Other Member, three members appointed by the Company ("Company Members"), and two members appointed by the UAW. NI and the Company Members are named as defendants in the motion. The motion alleges that NI and the Company Members impermissibly interfered with the Other Member's ability to discharge his rights and duties relating to eligibility for Plan benefits for an unknown number of non-represented employees and retirees. He requests the court (a) find that all prior Plan eligibility determinations made by NI and the HBPC are invalid to the extent they were not based on eligibility criteria in a plan which pre-dated the Plan; and (b) find all employees or retirees who were improperly denied Plan benefits based on the application of incorrect eligibility criteria, to retroactively enroll them in the Plan, and to reimburse those retirees for costs they incurred as a result of the prior improper determinations of Plan eligibility. He estimates 1,000 non-represented employees or retirees were wrongfully denied Plan benefits. He also requests the court direct him to oversee NI's compliance with the requested relief order. The defendants filed their response to the motion on May 11, 2017 and the Other Member filed his reply on May 17, 2017. 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 Automotiva 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 sent waste 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, 2017 ), 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. In August 2017, IIAA presented a motion to the District Attorney to set forth its defenses and correct inaccuracies in the notice. The District Attorney has informed IIAA that it intends to present a Consent Agreement with all of the companies that sent waste to Natureza in September 2017. Currently, no demands or offers are outstanding. 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, 2017 ). 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 filed its defense to the civil action on January 26, 2017, alleging that IIAA has made all necessary investigations and has taken remedial measures to address the contamination and that Companhia Ambiental do Estado de São Paulo (CETESB), the environmental agency of São Paulo State, has agreed to the remedial measures taken by IIAA. On June 20, 2017, IIAA presented a petition requesting a 90 day suspension of the lawsuit. IIAA has since held and is currently engaged in discussions with the District Attorney regarding settlement of this matter. The District Attorney agreed to the suspension on June 30, 2017. Currently, no demands or offers are outstanding. MaxxForce Engine EGR Warranty Litigation On June 24, 2014, N&C Transportation Ltd. filed a putative class action lawsuit against NIC, NI, Navistar Canada Inc., and Harbour International Trucks in Canada in the Supreme Court of British Columbia (the "N&C Action"). Subsequently, seven 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. On November 16, 2016, the court certified a Canada-wide class comprised of persons who purchased heavy-duty trucks equipped with Advanced EGR MaxxForce 11, MaxxForce 13, and MaxxForce 15 engines designed to meet 2010 EPA regulations. The court in the N&C Action denied certification to persons who operated but did not buy the trucks in question. To date, no appeals have been filed, but the deadline for the Company to appeal the class certification decision has been extended indefinitely, subject to a 15 -day notice of termination. On June 5, 2017, a hearing was held in the Quebec putative class action lawsuit captioned 4037308 Canada Inc. v. Navistar Canada Inc., NI, and NIC. At that hearing, the Court ruled on certain motions regarding evidence related to certification but deferred a ruling on plaintiff’s proposed amendment to narrow the proposed class to Quebec-only purchasers and lessees of model year 2010-13 vehicles containing MaxxForce 11, 13, and 15 liter engines. Preliminary motions not decided at the June 5, 2017 hearing are scheduled to be heard on October 17, 2017. The class authorization hearing in Quebec has not been scheduled, and there are no authorization hearings 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 NI 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 Northern 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 NI, and 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 NI 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 NI 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. Non-class federal lawsuits presenting pre-trial issues similar to the MDL Action continue to be transferred to the MDL Action. Approximately twenty such actions are currently pending. 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 September 22, 2016, lead counsel for the plaintiffs filed a First Amended Consolidated Class Action Complaint (the “Amended Consolidated Complaint”). The Amended Consolidated Complaint added twenty-five additional named plaintiffs. NI and NIC answered the Amended Consolidated Complaint on October 20, 2016. On May 27, 2016, Judge Gottschall entered a Case Management Order setting a July 13, 2017 date for plaintiffs' class certification motion. On November 30, 2016, the court entered an order referring discovery matters to a magistrate judge for supervision. Pursuant to the magistrate’s order, the parties jointly filed a new proposed case management order on January 25, 2017, which extends the fact discovery deadline to November 22, 2017. On January 31, 2017, the parties filed a joint motion with Judge Gottschall requesting adjustment of the class action briefing schedule to April 24, 2018. On February 2, 2017, Judge Gottschall granted the parties' motion extending the deadline to complete the class certification briefing to April 24, 2018. On February 6, 2017, the magistrate approved the parties' January 25, 2017 proposed case management order extending the deadline for fact discovery to November 22, 2017. There are also non-class action MaxxForce Advanced EGR engine lawsuits filed against the Company in various state courts. A number of non-class action lawsuits have been resolved in favor of the Company prior to trial or settled for immaterial amounts. Approximately 40 state court non-class actions are pending at this time. One of the non-class action lawsuits ("Milan"), alleging violations of the Tennessee Consumer Protection Act and fraud and involving approximately 235 trucks, was tried in Tennessee state court in August 2017. On August 10, 2017, the Milan jury returned a verdict in the amount of $31 million against the Company, including $20 million in punitive damages. The Company intends to challenge the verdict in the trial court and, if necessary, the appellate court. In the third quarter of 2017, we recorded $31 million of charges in SG&A expenses in our Consolidated Statements of Operations . 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, NI 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 NI until calendar year 2010 and, therefore, were not covered by NI's model year 2009 certificates of conformity. The NOV concluded that NI'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 NI in the U.S. District Court for the Northern District of Illinois. Similar to the NOV, the lawsuit alleges that NIC and NI 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 NI each filed an Answer and Affirmative Defenses to the Amended Complaint. We dispute the allegations in the lawsuit. Discovery in the matter is proceeding in two phases. Fact discovery for the liability phase commenced on December 9, 2015. Pursuant to the court's Minute Order entered on July 12, 2017, the Phase I liability fact discovery is to be completed by November 9, 2017. The proposed deadline for dispositive motions is set for June 11, 2018. After completion of the liability phase, the court will set further dates for a remedy phase. On May 13, 2016, the DOJ, on behalf of the EPA filed a motion for summary judgment on liability. On June 30, 2016, NIC and NI opposed the EPA's motion for summary judgment, and NIC cross-moved for summary judgment against EPA. On March 1, 2017, the court entered a Memorandum Opinion and Order (i) granting the DOJ’s motion for summary judgment on the issue of liability with respect to NI, (ii) denying the DOJ’s motion for summary judgment on the issue of liability with respect to NIC, and (iii) denying NIC’s motion for summary judgment. Based on our assessment of the facts underlying the complaint above, potential charges to the Consolidated Statement of Operations and cash outlays in future periods could range from $2 million to $291 million related to the resolution of this matter. Other than the aforementioned, we are unable to provide further meaningful quantification of how the final resolution of this matter 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, 2017 ), 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 $41 million as of July 31, 2017 ) 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 the hearing held on June 13-15, 2016. On September 30, 2016, the parties presented their final allegations. On April 20, 2017, the arbitral tribunal issued a partial award (the "Initial Award") granting a portion of the relief sought by each of the parties. Specifically, the arbitral tribunal's Initial Award held that: (a) Navitrucks failed to pay certain amounts to IIAA for the purchase of vehicles under its agreements with IIAA, thereby breaching its contractual obligations; and (b) IIAA breached its contractual obligations under its agreements with Navitrucks due to its failure to fulfill its promises to invest in products, infrastructure, and a dealership network. Furthermore, the arbitral tribunal held that, due to the mutual breach of the agreements between IIAA and Navitrucks, the agreements should be deemed terminated. On June 3, 2017, IIAA and Navitrucks filed an application to clarify certain interpretations of the Initial Award and to correct clerical errors in the Initial Award. IIAA also requested an award to (a) set the undisputable amount of the Initial Award, and (2) order Navitrucks to promptly pay such amount. On June 8, 2017, the arbitral tribunal invited IIAA and Navitrucks to present their respective comments on each other’s applications on or before June 27, 2017. On June 27, 2017, IIAA and Navitrucks filed their respective comments. The arbitral tribunal is expected to render its decision in September 2017. After the decision is rendered, the calculation phase of the arbitration will begin and is estimated to be one year or lon |
Segment Reporting
Segment Reporting | 9 Months Ended |
Jul. 31, 2017 | |
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 Brazil engine operations which produce diesel engines 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. This segment also facilitates financing relationships in other countries to support our Manufacturing Operations. 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 benefit (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, 2017 External sales and revenues, net $ 1,521 $ 580 $ 74 $ 35 $ 3 $ 2,213 Intersegment sales and revenues 10 6 10 27 (53 ) — Total sales and revenues, net $ 1,531 $ 586 $ 84 $ 62 $ (50 ) $ 2,213 Income (loss) from continuing operations attributable to NIC, net of tax $ 7 $ 157 $ 3 $ 23 $ (154 ) $ 36 Income tax expense — — — — — — Segment profit (loss) $ 7 $ 157 $ 3 $ 23 $ (154 ) $ 36 Depreciation and amortization $ 35 $ 3 $ 3 $ 13 $ 3 $ 57 Interest expense — — — 24 67 91 Equity in income (loss) of non-consolidated affiliates 1 1 (1 ) — — 1 Capital expenditures (B) 21 1 2 — 3 27 (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 Nine Months Ended July 31, 2017 External sales and revenues, net $ 3,929 $ 1,747 $ 186 $ 102 $ 8 $ 5,972 Intersegment sales and revenues 27 19 18 70 (134 ) — Total sales and revenues, net $ 3,956 $ 1,766 $ 204 $ 172 $ (126 ) $ 5,972 Income (loss) from continuing operations attributable to NIC, net of tax $ (118 ) $ 459 $ (8 ) $ 51 $ (490 ) $ (106 ) Income tax expense — — — — (10 ) (10 ) Segment profit (loss) $ (118 ) $ 459 $ (8 ) $ 51 $ (480 ) $ (96 ) Depreciation and amortization $ 103 $ 9 $ 10 $ 38 $ 9 $ 169 Interest expense — — — — 65 197 262 Equity in income of non-consolidated affiliates 3 3 — — — 6 Capital expenditures (B) 78 2 5 1 7 93 (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 Services Corporate and Eliminations Total Segment assets, as of: July 31, 2017 $ 1,736 $ 602 $ 374 $ 2,237 $ 1,131 $ 6,080 October 31, 2016 1,520 594 407 2,116 1,016 5,653 _________________________ (A) Total sales and revenues in the Financial Services segment include interest revenues of $45 million and $121 million for the three and nine months ended July 31, 2017 , respectively, and $43 million and $127 million for the three and nine months ended July 31, 2016 , respectively. (B) Exclusive of purchases of equipment leased to others. |
Stockholders' Deficit
Stockholders' Deficit | 9 Months Ended |
Jul. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Deficit | Stockholders' Deficit Accumulated Other Comprehensive Loss The following table presents changes in Accumulated other comprehensive loss, net of tax, included in our Consolidated Statements of Stockholders' Deficit : (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of April 30, 2017 $ 1 $ (288 ) $ (2,292 ) $ (2,579 ) Other comprehensive income before reclassifications (A) — 42 72 114 Amounts reclassified out of accumulated other comprehensive loss — — 53 53 Net current-period other comprehensive income — 42 125 167 Balance as of July 31, 2017 $ 1 $ (246 ) $ (2,167 ) $ (2,412 ) ____________________ (A) Other comprehensive income before reclassifications for Defined Benefit Plans includes $111 million of remeasurement gains and $2 million of curtailment gains, partially offset by a $35 million intraperiod tax allocation and $6 million of deferred tax assets during the third quarter of 2017. (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2016 $ 1 $ (280 ) $ (2,361 ) $ (2,640 ) Other comprehensive income before reclassifications (A) — 34 72 106 Amounts reclassified out of accumulated other comprehensive loss — — 122 122 Net current-period other comprehensive income — 34 194 228 Balance as of July 31, 2017 $ 1 $ (246 ) $ (2,167 ) $ (2,412 ) ____________________ (A) Other comprehensive income before reclassifications for Defined Benefit Plans includes $111 million of remeasurement gains and $2 million of curtailment gains, partially offset by a $35 million intraperiod tax allocation and $6 million of deferred tax assets during the third quarter of 2017. (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 ) The following table presents the amounts reclassified from Accumulated other comprehensive loss and the affected line item in our Consolidated Statements of Operations: Three Months Ended July 31, Nine Months Ended July 31, Location in Consolidated 2017 2016 2017 2016 Defined benefit plans Amortization of prior service benefit Selling, general and administrative expenses $ — $ — $ — $ (1 ) Amortization of actuarial loss Selling, general and administrative expenses 36 34 106 101 Settlements Restructuring charges 23 — 23 — Total before tax 59 34 129 100 Tax expense (6 ) — (7 ) — Total reclassifications for the period, net of tax $ 53 $ 34 $ 122 $ 100 |
Earnings (Loss) Per Share Attri
Earnings (Loss) Per Share Attributable to Navistar International Corporation | 9 Months Ended |
Jul. 31, 2017 | |
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 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) 2017 2016 2017 2016 Numerator: Amounts attributable to Navistar International Corporation common stockholders: Income (loss) from continuing operations, net of tax $ 36 $ (34 ) $ (106 ) $ (63 ) Income from discontinued operations, net of tax 1 — 1 — Net income (loss) $ 37 $ (34 ) $ (105 ) $ (63 ) Denominator: Weighted average shares outstanding: Basic 98.3 81.7 91.1 81.7 Effect of dilutive securities 0.3 — — — Diluted 98.6 81.7 91.1 81.7 Earnings (loss) per share attributable to Navistar International Corporation: Basic: Continuing operations $ 0.37 $ (0.42 ) $ (1.16 ) $ (0.77 ) Discontinued operations 0.01 — 0.01 $ — $ 0.38 $ (0.42 ) $ (1.15 ) $ (0.77 ) Diluted: Continuing operations $ 0.37 $ (0.42 ) $ (1.16 ) $ (0.77 ) Discontinued operations 0.01 — 0.01 — $ 0.38 $ (0.42 ) $ (1.15 ) $ (0.77 ) The conversion rate on our 4.5% Senior Subordinated Convertible Notes due 2018 (the "2018 Convertible Notes") is 17.1233 shares of common stock per $1,000 principal amount of 2018 Convertible Notes, equivalent to an initial conversion price of approximately $58.40 per share of common stock. The 2018 Convertible Notes 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 2019 (the “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 months ended July 31, 2016 , 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. Additionally, certain securities have been excluded from the computation of earnings per share, as our average stock price during the period was less than their respective exercise prices. For the three months ended July 31, 2016 , the aggregate shares not included were 15.2 million . For the three months ended July 31, 2017 , certain securities have been excluded from the computation of earnings per share, as our average stock price during the period was less than their respective exercise prices. For the three months ended July 31, 2017 , the aggregate shares not included were 14.6 million . In February 2017, we consummated our previously announced strategic alliance with Volkswagen Truck & Bus ("VW T&B"), which included an equity investment in the Company by VW T&B pursuant to a Stock Purchase Agreement (the "Stock Purchase Agreement"), a License and Supply Framework Agreement and a Procurement JV Framework Agreement. Pursuant to the Stock Purchase Agreement, on February 28, 2017 we issued and VW T&B purchased 16.2 million shares of our common stock for an aggregate purchase price of $256 million at $15.76 per share (a 19.9% stake ( 16.6% on a fully-diluted basis)) in the Company, excluding stock issuance costs. For both the nine months ended July 31, 2017 and 2016 , 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. Additionally, certain securities have been excluded from the computation of earnings per share, as our average stock price during the period was less than their respective exercise prices. For the nine months ended July 31, 2017 and 2016 , the aggregate shares not included were 14.7 million and 15 million , respectively. For both the three and nine months ended July 31, 2017 and 2016 , 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, 2017 | |
Condensed Consolidating Guarantor and Non-Guarantor [Abstract] | |
Condensed Consolidating Guarantor and Non-guarantor Financial Information | Condensed Consolidating Guarantor and Non-guarantor Financial Information The following tables set forth condensed consolidating balance sheets as of July 31, 2017 and October 31, 2016 , and condensed consolidating statements of operations and comprehensive income (loss) for the three and nine months ended July 31, 2017 and 2016 , and condensed consolidating statements of cash flows for the nine months ended July 31, 2017 and 2016 . The information is presented as a result of NI’s guarantee, exclusive of its subsidiaries, of NIC’s indebtedness under our Senior Notes, and obligations under our Loan Agreement related to the 6.5% Tax Exempt Bonds, due 2040. NI 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 Senior Notes, 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 NI 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, "NI," 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 NI and its U.S. subsidiaries. NI has a tax allocation agreement ("Tax Agreement") with NIC which requires NI 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 NI 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 NI, to utilize current U.S. taxable losses of NI and all other direct or indirect domestic subsidiaries of NIC. Condensed Consolidating Statement of Operations for the Three Months Ended July 31, 2017 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Sales and revenues, net $ — $ 1,524 $ 1,562 $ (873 ) $ 2,213 Costs of products sold — 1,328 1,337 (862 ) 1,803 Restructuring charges — 31 (44 ) — (13 ) Asset impairment charges — — 6 — 6 All other operating expenses (income) 36 267 88 (14 ) 377 Total costs and expenses 36 1,626 1,387 (876 ) 2,173 Equity in income (loss) of affiliates 73 67 — (139 ) 1 Income (loss) before income taxes 37 (35 ) 175 (136 ) 41 Income tax benefit (expense) — 35 (35 ) — — Income (loss) from continuing operations 37 — 140 (136 ) 41 Income from discontinued operations, net of tax — — 1 — 1 Net income (loss) 37 — 141 (136 ) 42 Less: Net income attributable to non-controlling interests — — 5 — 5 Net income (loss) attributable to Navistar International Corporation $ 37 $ — $ 136 $ (136 ) $ 37 Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended July 31, 2017 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net income (loss) $ 37 $ — $ 141 $ (136 ) $ 42 Other comprehensive income (loss): Foreign currency translation adjustment 42 — 42 (42 ) 42 Defined benefit plans, net of tax 125 126 35 (161 ) 125 Total other comprehensive income (loss) 167 126 77 (203 ) 167 Comprehensive income (loss) 204 126 218 (339 ) 209 Less: Net income attributable to non-controlling interests — — 5 — 5 Total comprehensive income (loss) attributable to Navistar International Corporation $ 204 $ 126 $ 213 $ (339 ) $ 204 Condensed Consolidating Statement of Operations for the Nine Months Ended July 31, 2017 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Sales and revenues, net $ — $ 4,319 $ 3,988 $ (2,335 ) $ 5,972 Costs of products sold — 3,813 3,431 (2,295 ) 4,949 Restructuring charges — 33 (37 ) — (4 ) Asset impairment charges — 7 6 — 13 All other operating expenses (income) 92 738 307 (39 ) 1,098 Total costs and expenses 92 4,591 3,707 (2,334 ) 6,056 Equity in income (loss) of affiliates (13 ) 128 3 (112 ) 6 Income (loss) before income taxes (105 ) (144 ) 284 (113 ) (78 ) Income tax benefit (expense) — 35 (45 ) — (10 ) Income (loss) from continuing operations (105 ) (109 ) 239 (113 ) (88 ) Income from discontinued operations, net of tax — — 1 — 1 Net income (loss) (105 ) (109 ) 240 (113 ) (87 ) Less: Net income attributable to non-controlling interests — — 18 — 18 Net income (loss) attributable to Navistar International Corporation $ (105 ) $ (109 ) $ 222 $ (113 ) $ (105 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Nine Months Ended July 31, 2017 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net income (loss) $ (105 ) $ (109 ) $ 240 $ (113 ) $ (87 ) Other comprehensive income (loss): Foreign currency translation adjustment 34 — 34 (34 ) 34 Defined benefit plans, net of tax 194 192 38 (230 ) 194 Total other comprehensive income (loss) 228 192 72 (264 ) 228 Comprehensive income (loss) 123 83 312 (377 ) 141 Less: Net income attributable to non-controlling interests — — 18 — 18 Total comprehensive income (loss) attributable to Navistar International Corporation $ 123 $ 83 $ 294 $ (377 ) $ 123 Condensed Consolidating Balance Sheet as of July 31, 2017 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 652 $ 23 $ 236 $ — $ 911 Marketable securities 44 — 18 — 62 Restricted cash 16 5 116 — 137 Finance and other receivables, net 8 202 1,997 (90 ) 2,117 Inventories — 585 399 (5 ) 979 Investments in non-consolidated affiliates (7,215 ) 6,372 52 846 55 Property and equipment, net — 796 544 (7 ) 1,333 Goodwill — — 38 — 38 Deferred taxes, net — 10 132 (1 ) 141 Other 3 127 178 (1 ) 307 Total assets $ (6,492 ) $ 8,120 $ 3,710 $ 742 $ 6,080 Liabilities and stockholders’ equity (deficit) Debt $ 2,227 $ 1,192 $ 1,801 $ — $ 5,220 Postretirement benefits liabilities — 2,690 134 — 2,824 Amounts due to (from) affiliates (7,738 ) 10,947 (3,261 ) 52 — Other liabilities 3,944 (244 ) (677 ) (64 ) 2,959 Total liabilities (1,567 ) 14,585 (2,003 ) (12 ) 11,003 Stockholders’ equity (deficit) attributable to Navistar International Corporation (4,925 ) (6,465 ) 5,711 754 (4,925 ) Stockholders’ equity attributable to non-controlling interest — — 2 — 2 Total liabilities and stockholders’ equity (deficit) $ (6,492 ) $ 8,120 $ 3,710 $ 742 $ 6,080 Condensed Consolidating Statement of Cash Flows for the Nine Months Ended July 31, 2017 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net cash provided by (used in) operating activities $ (307 ) $ (401 ) $ (126 ) $ 666 $ (168 ) Cash flows from investing activities Net change in restricted cash and cash equivalents — 2 (27 ) — (25 ) Net sales (purchases) of marketable securities (16 ) — — — (16 ) Capital expenditures and purchase of equipment leased to others — (132 ) (57 ) — (189 ) Other investing activities (250 ) 6 30 250 36 Net cash provided by (used in) investing activities (266 ) (124 ) (54 ) 250 (194 ) Cash flows from financing activities Net borrowings (repayments) of debt 542 384 (58 ) (674 ) 194 Issuance of common stock, net of issuance costs 245 — 250 (250 ) 245 Other financing activities 3 47 (29 ) 8 29 Net cash provided by (used in) financing activities 790 431 163 (916 ) 468 Effect of exchange rate changes on cash and cash equivalents — — 1 — 1 Increase (decrease) in cash and cash equivalents 217 (94 ) (16 ) — 107 Cash and cash equivalents at beginning of the period 435 117 252 — 804 Cash and cash equivalents at end of the period $ 652 $ 23 $ 236 $ — $ 911 Condensed Consolidating Statement of Operations for the Three Months Ended July 31, 2016 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other 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 ) 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, Inc. Non-Guarantor Subsidiaries Eliminations and Other 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, Inc. Non-Guarantor Subsidiaries Eliminations and Other 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 ) 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, Inc. Non-Guarantor Subsidiaries Eliminations and Other 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 October 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 435 $ 117 $ 252 $ — $ 804 Marketable securities 27 — 19 — 46 Restricted cash 16 6 90 — 112 Finance and other receivables, net (1 ) 171 1,883 (84 ) 1,969 Inventories — 639 313 (8 ) 944 Investments in non-consolidated affiliates (7,714 ) 6,253 57 1,457 53 Property and equipment, net — 669 580 (8 ) 1,241 Goodwill — — 38 — 38 Deferred taxes, net — 10 150 1 161 Other 2 110 175 (2 ) 285 Total assets $ (7,235 ) $ 7,975 $ 3,557 $ 1,356 $ 5,653 Liabilities and stockholders’ equity (deficit) Debt $ 1,965 $ 1,100 $ 1,841 $ (2 ) $ 4,904 Postretirement benefits liabilities — 2,865 233 — 3,098 Amounts due to (from) affiliates (7,724 ) 10,709 (3,040 ) 55 — Other liabilities 3,822 (152 ) (665 ) (61 ) 2,944 Total liabilities (1,937 ) 14,522 (1,631 ) (8 ) 10,946 Stockholders’ equity (deficit) attributable to Navistar International Corporation (5,298 ) (6,547 ) 5,183 1,364 (5,298 ) Stockholders’ equity attributable to non-controlling interest — — 5 — 5 Total liabilities and stockholders’ equity (deficit) $ (7,235 ) $ 7,975 $ 3,557 $ 1,356 $ 5,653 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 investment 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 Accoun22
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jul. 31, 2017 | |
Inventory [Line Items] | |
Product Warranty Disclosure [Text Block] | Product Warranty Liability The following table presents accrued product warranty and deferred warranty revenue activity: Nine Months Ended July 31, (in millions) 2017 2016 Balance at beginning of period $ 818 $ 994 Costs accrued and revenues deferred 137 141 Currency translation adjustment — 2 Adjustments to pre-existing warranties (A) (4 ) 70 Payments and revenues recognized (292 ) (339 ) Balance at end of period 659 868 Less: Current portion 340 423 Noncurrent accrued product warranty and deferred warranty revenue $ 319 $ 445 _________________________ (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 pre-existing charges primarily related to increases in both claim frequency and cost of repair across both the Medium Duty and Big Bore engine families. These charges increase the reserve for Navistar's standard warranty obligations as well as the loss positions related to our Big Bore extended service contract. Extended Warranty Programs The amount of deferred revenue related to extended warranty programs was $280 million and $325 million at July 31, 2017 and October 31, 2016 , respectively. Revenue recognized under our extended warranty programs was $28 million and $109 million for the three and nine months ended July 31, 2017 , respectively, and $37 million and $113 million for the three and nine months ended July 31, 2016 , respectively. |
Business Description and Basis of Presentation [Text Block] | 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. ("NI") 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 11, Segment Reporting . Our fiscal year ends on October 31. As such, all references to 2017 and 2016 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, 2016 , 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. |
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, 2016 , 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, LLC ("BDP") joint venture with Ford Motor Company ("Ford"). As a result, our Consolidated Balance Sheets include assets of $35 million and $51 million and liabilities of $13 million and $16 million as of July 31, 2017 and October 31, 2016 , respectively, including $3 million and $6 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. Our Financial Services segment consolidates several VIEs. As a result, our Consolidated Balance Sheets include secured assets of $901 million and $865 million as of July 31, 2017 and October 31, 2016 , respectively, and liabilities of $773 million and $722 million as of July 31, 2017 and October 31, 2016 , 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 $242 million and $249 million as of July 31, 2017 and October 31, 2016 , respectively, and corresponding liabilities of $156 million and $136 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. |
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, 2017 , approximately 6,600 , or 94% , of our hourly workers and approximately 900 , or 17% , 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, tax 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] | 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 Issued Accounting Standards In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-01, "Business Combinations" (Topic 805). This ASU provides a new framework for determining whether transactions should be accounted for as acquisitions or disposals of assets or businesses. This ASU creates an initial screening test (Step 1) that reduces the population of transactions that an entity needs to analyze to determine whether there is an input and substantive processes in the acquisition or disposal (Step 2). Fewer transactions are expected to involve acquiring or selling a business. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. Our effective date for this ASU is November 1, 2018. Adoption will require a prospective transition. We do not expect the impact of this ASU to have a material effect on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows" (Topic 230). This ASU requires that a statement of cash flows explain the change during the period in the total of cash, and cash equivalents, including amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. Our effective date for this ASU is November 1, 2018. Adoption will require a retrospective transition. We do not expect the impact of this ASU to have a material effect on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes” (Topic 740). This ASU update requires entities to recognize the income tax consequences of many intercompany asset transfers at the transaction date. The seller and buyer will immediately recognize the current and deferred income tax consequences of an intercompany transfer of an asset other than inventory. The tax consequences were previously deferred. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. Our effective date for this ASU is November 1, 2018. Adoption will require a modified retrospective transition. We are currently evaluating 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. Adoption will require a modified retrospective transition. Our effective date is November 1, 2020. We are currently evaluating 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 impact of this ASU on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (Topic 606), which supersedes the revenue recognition requirements in ASC 605, "Revenue Recognition." This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. 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 in the process of completing our initial assessment of the potential impact on our consolidated financial statements and have not concluded on our adoption methodology. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Product Warranty Liability [Line Items] | |
Schedule of Product Warranty Liability [Table Text Block] | The following table presents accrued product warranty and deferred warranty revenue activity: Nine Months Ended July 31, (in millions) 2017 2016 Balance at beginning of period $ 818 $ 994 Costs accrued and revenues deferred 137 141 Currency translation adjustment — 2 Adjustments to pre-existing warranties (A) (4 ) 70 Payments and revenues recognized (292 ) (339 ) Balance at end of period 659 868 Less: Current portion 340 423 Noncurrent accrued product warranty and deferred warranty revenue $ 319 $ 445 _________________________ (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 pre-existing charges primarily related to increases in both claim frequency and cost of repair across both the Medium Duty and Big Bore engine families. These charges increase the reserve for Navistar's standard warranty obligations as well as the loss positions related to our Big Bore extended service contract. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies Inventory Reserve (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Schedule of Used Truck Reserve [Abstract] | |
Inventory Reserve [Table Text Block] | The following table presents the activity in our used truck reserve: Nine Months Ended July 31, (in millions) 2017 2016 Balance at beginning of period $ 208 $ 110 Additions charged to expense (A) 102 124 Deductions/Other adjustments (B) (136 ) (68 ) Balance at end of period $ 174 $ 166 _________________________ (A) Additions charged to expense reflect the increase of the reserve for inventory on hand. During the second quarter of 2017, we implemented a shift in market mix to include an increase in volume to certain export markets, which have a lower price point as compared to sales through our domestic channels, and lower domestic pricing to enable higher sales velocity. In the third quarter of 2017 and 2016, we recorded a charge of $14 million and $40 million , respectively, in Costs of Products Sold in our Consolidated Statements of Operations. (B) Deductions/Other adjustments reflect reductions of the reserve primarily related to the sale of units to certain export markets and our currency translation adjustments. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies Inventory (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Reserve [Table Text Block] | 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. |
Restructuring and Impairments (
Restructuring and Impairments (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
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 excludes pension and other postretirement contractual termination benefits: (in millions) Balance at October 31, 2016 Additions Payments Adjustments Balance at July 31, 2017 Employee termination charges $ 5 $ 15 $ (11 ) $ — $ 9 Lease vacancy 1 — (1 ) — — Other 1 — — — 1 Restructuring liability $ 7 $ 15 $ (12 ) $ — $ 10 (in millions) Balance at 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 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Our Finance receivables, net in our Consolidated Balance Sheets consist of the following: (in millions) July 31, 2017 October 31, 2016 Retail portfolio $ 520 $ 499 Wholesale portfolio 1,291 1,199 Total finance receivables 1,811 1,698 Less: Allowance for doubtful accounts 23 21 Total finance receivables, net 1,788 1,677 Less: Current portion, net (A) 1,557 1,457 Noncurrent portion, net $ 231 $ 220 _________________________ (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) 2017 2016 2017 2016 Retail notes and finance leases revenue $ 11 $ 9 $ 30 $ 28 Wholesale notes interest 28 29 75 81 Operating lease revenue 17 17 50 49 Retail and wholesale accounts interest 6 5 17 19 Gross finance revenues 62 60 172 177 Less: Intercompany revenues 27 26 70 75 Finance revenues $ 35 $ 34 $ 102 $ 102 |
Allowance for Doubtful Accoun28
Allowance for Doubtful Accounts (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Allowance for Doubtful Accounts [Abstract] | |
Allowance For Credit Losses On Receivables [Table Text Block] | The following tables present the activity related to our allowance for doubtful accounts for our retail portfolio segment, wholesale portfolio segment, and trade and other receivables: Three Months Ended July 31, 2017 Three Months Ended July 31, 2016 (in millions) Retail Wholesale Trade and Total Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 21 $ 2 $ 28 $ 51 $ 21 $ 4 $ 26 $ 51 Provision for doubtful accounts, net of recoveries (1 ) 1 1 1 2 (1 ) — 1 Charge-off of accounts (1 ) — — (1 ) (3 ) — (1 ) (4 ) Other (A) 1 — — 1 (2 ) — 2 — Allowance for doubtful accounts, at end of period $ 20 $ 3 $ 29 $ 52 $ 18 $ 3 $ 27 $ 48 Nine Months Ended July 31, 2017 Nine Months Ended July 31, 2016 (in millions) Retail Wholesale Trade and Total Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 19 $ 2 $ 28 $ 49 $ 22 $ 4 $ 22 $ 48 Provision for doubtful accounts, net of recoveries 5 1 2 8 5 (1 ) 4 8 Charge-off of accounts (5 ) — (1 ) (6 ) (7 ) — (2 ) (9 ) Other (A) 1 — — 1 (2 ) — 3 1 Allowance for doubtful accounts, at end of period $ 20 $ 3 $ 29 $ 52 $ 18 $ 3 $ 27 $ 48 ____________________ (A) Amounts include impact from currency translation. |
Impaired Financing Receivables [Table Text Block] | The following table presents information regarding impaired finance receivables: July 31, 2017 October 31, 2016 (in millions) Retail Wholesale Total Retail Wholesale Total Impaired finance receivables with specific loss reserves $ 20 $ — $ 20 $ 15 $ — $ 15 Impaired finance receivables without specific loss reserves — — — — — — Specific loss reserves on impaired finance receivables 9 — 9 8 — 8 Finance receivables on non-accrual status 20 — 20 15 — 15 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | 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, 2017 October 31, 2016 (in millions) Retail Wholesale Total Retail Wholesale Total Current, and up to 30 days past due $ 465 $ 1,290 $ 1,755 $ 449 $ 1,198 $ 1,647 30-90 days past due 39 1 40 37 — 37 Over 90 days past due 16 — 16 13 1 14 Total finance receivables $ 520 $ 1,291 $ 1,811 $ 499 $ 1,199 $ 1,698 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | The following table presents the components of Inventories in our Consolidated Balance Sheets : (in millions) July 31, October 31, Finished products $ 631 $ 678 Work in process 66 46 Raw materials 282 220 Total inventories, net $ 979 $ 944 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Debt Disclosure [Abstract] | |
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, 2017 October 31, 2016 Manufacturing operations Senior Secured Term Loan Credit Facility, as amended, due 2020, net of unamortized discount of $9 and $14, respectively, and unamortized debt issuance costs of $11 and $7, respectively $ 1,001 $ 1,009 8.25% Senior Notes, due 2022 net of unamortized discount of $14 and $15, respectively, and unamortized debt issuance costs of $14 and $12, respectively 1,422 1,173 4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $6 and $10, respectively, and unamortized debt issuance costs of $1 at both dates 193 189 4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $17 and $24, respectively, and unamortized debt issuance costs of $3 and $4, respectively 391 383 Financing arrangements and capital lease obligations 36 42 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040, net of unamortized debt issuance costs of $5 at both dates 220 220 Financed lease obligations 127 52 Other 34 28 Total Manufacturing operations debt 3,424 3,096 Less: Current portion 114 71 Net long-term Manufacturing operations debt $ 3,310 $ 3,025 (in millions) July 31, 2017 October 31, 2016 Financial Services operations Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2022 , net of unamortized debt issuance costs of $6 at both dates $ 822 $ 753 Bank credit facilities, at fixed and variable rates, due dates from 2017 through 2023, net of unamortized debt issuance costs of $2 and $3, respectively 774 861 Commercial paper, at variable rates, program matures in 2022 100 96 Borrowings secured by operating and finance leases, at various rates, due serially through 2022 100 98 Total Financial Services operations debt 1,796 1,808 Less: Current portion 851 836 Net long-term Financial Services operations debt $ 945 $ 972 |
(Tables)
(Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | Net periodic benefit expense included in our Consolidated Statements of Operations, and other amounts recognized in our Consolidated Statements of Stockholders' Deficit , for the periods ended July 31 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) 2017 2016 2017 2016 2017 2016 2017 2016 Service cost for benefits earned during the period $ 2 $ 2 $ 1 $ 1 $ 6 $ 7 $ 4 $ 4 Interest on obligation 27 29 11 14 80 88 35 44 Amortization of cumulative loss 30 26 6 8 89 78 17 24 Amortization of prior service benefit — — — — — — — (1 ) Settlements 23 — — — 23 — — — Contractual termination benefits 9 1 4 4 10 3 4 4 Curtailments and other — — (58 ) — — — (58 ) — Premiums on pension insurance 4 4 — — 12 12 — — Expected return on assets (40 ) (41 ) (5 ) (6 ) (119 ) (125 ) (17 ) (19 ) Net periodic benefit expense $ 55 $ 21 $ (41 ) $ 21 $ 101 $ 63 $ (15 ) $ 56 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
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: As of July 31, 2017 As of October 31, 2016 (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Marketable securities: U.S. Treasury bills $ 3 $ — $ — $ 3 $ 6 $ — $ — $ 6 Other 59 — — 59 40 — — 40 Derivative financial instruments: Commodity forward contracts (A) — 2 — 2 — 2 — 2 Foreign currency contracts (A) — 1 — 1 — — — — Interest rate caps (B) — 1 — 1 — 1 — 1 Total assets $ 62 $ 4 $ — $ 66 $ 46 $ 3 $ — $ 49 Liabilities Derivative financial instruments: Foreign currency contracts (C) $ — $ 9 $ — $ 9 $ — $ — $ — $ — Guarantees — — 19 19 — — 23 23 Total liabilities $ — $ 9 $ 19 $ 28 $ — $ — $ 23 $ 23 _________________________ (A) The asset value of commodity forward contracts and foreign currency contracts is included in Other current assets in the accompanying Consolidated Balance Sheets . (B) The asset value of interest rate caps is included in Other noncurrent assets in the accompanying Consolidated Balance Sheets. (C) The liability value of foreign currency contracts is included in Other current liabilities 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) 2017 2016 2017 2016 Guarantees, at beginning of period $ (19 ) $ (19 ) $ (23 ) $ (10 ) Transfers out of Level 3 — — — — Net terminations (issuances) — (5 ) 1 (16 ) Settlements — 1 3 3 Guarantees, at end of period $ (19 ) $ (23 ) $ (19 ) $ (23 ) |
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, 2017 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 152 $ 152 $ 158 Notes receivable — — — — — Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Facility, as Amended, due 2020 — — 1,031 1,031 1,001 8.25% Senior Notes, due 2022 1,447 — — 1,447 1,422 4.50% Senior Subordinated Convertible Notes, due 2018 (A) — — 201 201 193 4.75% Senior Subordinated Convertible Notes, due 2019 (A) — — 413 413 391 Financing arrangements — — 16 16 32 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 — 234 — 234 220 Financed lease obligations — — 127 127 127 Other — — 34 34 34 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2022 — — 828 828 822 Bank credit facilities, at fixed and variable rates, due dates from 2017 through 2023 — — 751 751 774 Commercial paper, at variable rates, program matures in 2022 100 — — 100 100 Borrowings secured by operating and finance leases, at various rates, due serially through 2022 — — 101 101 100 As of October 31, 2016 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 153 $ 153 $ 151 Notes receivable — — 1 1 1 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Facility, as Amended, due 2020 — — 1,037 1,037 1,009 8.25% Senior Notes, due 2022 1,180 — — 1,180 1,173 4.50% Senior Subordinated Convertible Notes, due 2018 (A) — — 189 189 189 4.75% Senior Subordinated Convertible Notes, due 2019 (A) — — 382 382 383 Financing arrangements — — 17 17 37 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 — 233 — 233 220 Financed lease obligations — — 52 52 52 Other — — 26 26 28 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2022 — — 754 754 753 Bank credit facilities, at fixed and variable rates, due dates from 2017 through 2023 — — 851 851 861 Commercial paper, at variable rates, program matures in 2022 96 — — 96 96 Borrowings secured by operating and finance leases, at various rates, due serially through 2022 — — 98 98 98 _________________________ (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. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of selected financial information, by segment | We define segment profit (loss) as net income (loss) from continuing operations attributable to NIC, excluding income tax benefit (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, 2017 External sales and revenues, net $ 1,521 $ 580 $ 74 $ 35 $ 3 $ 2,213 Intersegment sales and revenues 10 6 10 27 (53 ) — Total sales and revenues, net $ 1,531 $ 586 $ 84 $ 62 $ (50 ) $ 2,213 Income (loss) from continuing operations attributable to NIC, net of tax $ 7 $ 157 $ 3 $ 23 $ (154 ) $ 36 Income tax expense — — — — — — Segment profit (loss) $ 7 $ 157 $ 3 $ 23 $ (154 ) $ 36 Depreciation and amortization $ 35 $ 3 $ 3 $ 13 $ 3 $ 57 Interest expense — — — 24 67 91 Equity in income (loss) of non-consolidated affiliates 1 1 (1 ) — — 1 Capital expenditures (B) 21 1 2 — 3 27 (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 Nine Months Ended July 31, 2017 External sales and revenues, net $ 3,929 $ 1,747 $ 186 $ 102 $ 8 $ 5,972 Intersegment sales and revenues 27 19 18 70 (134 ) — Total sales and revenues, net $ 3,956 $ 1,766 $ 204 $ 172 $ (126 ) $ 5,972 Income (loss) from continuing operations attributable to NIC, net of tax $ (118 ) $ 459 $ (8 ) $ 51 $ (490 ) $ (106 ) Income tax expense — — — — (10 ) (10 ) Segment profit (loss) $ (118 ) $ 459 $ (8 ) $ 51 $ (480 ) $ (96 ) Depreciation and amortization $ 103 $ 9 $ 10 $ 38 $ 9 $ 169 Interest expense — — — — 65 197 262 Equity in income of non-consolidated affiliates 3 3 — — — 6 Capital expenditures (B) 78 2 5 1 7 93 (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 Services Corporate and Eliminations Total Segment assets, as of: July 31, 2017 $ 1,736 $ 602 $ 374 $ 2,237 $ 1,131 $ 6,080 October 31, 2016 1,520 594 407 2,116 1,016 5,653 (in millions) Truck Parts Global Operations Financial Services Corporate and Eliminations Total Segment assets, as of: July 31, 2017 $ 1,736 $ 602 $ 374 $ 2,237 $ 1,131 $ 6,080 October 31, 2016 1,520 594 407 2,116 1,016 5,653 _________________________ (A) Total sales and revenues in the Financial Services segment include interest revenues of $45 million and $121 million for the three and nine months ended July 31, 2017 , respectively, and $43 million and $127 million for the three and nine months ended July 31, 2016 , respectively. (B) Exclusive of purchases of equipment leased to others. |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) (Tables) | 9 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents changes in Accumulated other comprehensive loss, net of tax, included in our Consolidated Statements of Stockholders' Deficit : (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of April 30, 2017 $ 1 $ (288 ) $ (2,292 ) $ (2,579 ) Other comprehensive income before reclassifications (A) — 42 72 114 Amounts reclassified out of accumulated other comprehensive loss — — 53 53 Net current-period other comprehensive income — 42 125 167 Balance as of July 31, 2017 $ 1 $ (246 ) $ (2,167 ) $ (2,412 ) ____________________ (A) Other comprehensive income before reclassifications for Defined Benefit Plans includes $111 million of remeasurement gains and $2 million of curtailment gains, partially offset by a $35 million intraperiod tax allocation and $6 million of deferred tax assets during the third quarter of 2017. (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2016 $ 1 $ (280 ) $ (2,361 ) $ (2,640 ) Other comprehensive income before reclassifications (A) — 34 72 106 Amounts reclassified out of accumulated other comprehensive loss — — 122 122 Net current-period other comprehensive income — 34 194 228 Balance as of July 31, 2017 $ 1 $ (246 ) $ (2,167 ) $ (2,412 ) | (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 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table presents the amounts reclassified from Accumulated other comprehensive loss and the affected line item in our Consolidated Statements of Operations: Three Months Ended July 31, Nine Months Ended July 31, Location in Consolidated 2017 2016 2017 2016 Defined benefit plans Amortization of prior service benefit Selling, general and administrative expenses $ — $ — $ — $ (1 ) Amortization of actuarial loss Selling, general and administrative expenses 36 34 106 101 Settlements Restructuring charges 23 — 23 — Total before tax 59 34 129 100 Tax expense (6 ) — (7 ) — Total reclassifications for the period, net of tax $ 53 $ 34 $ 122 $ 100 |
Earnings (Loss) Per Share Att35
Earnings (Loss) Per Share Attributable to Navistar International Corporation (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation [Table Text Block] | The following table presents the information used in the calculation of our basic and diluted earnings (loss) per share 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) 2017 2016 2017 2016 Numerator: Amounts attributable to Navistar International Corporation common stockholders: Income (loss) from continuing operations, net of tax $ 36 $ (34 ) $ (106 ) $ (63 ) Income from discontinued operations, net of tax 1 — 1 — Net income (loss) $ 37 $ (34 ) $ (105 ) $ (63 ) Denominator: Weighted average shares outstanding: Basic 98.3 81.7 91.1 81.7 Effect of dilutive securities 0.3 — — — Diluted 98.6 81.7 91.1 81.7 Earnings (loss) per share attributable to Navistar International Corporation: Basic: Continuing operations $ 0.37 $ (0.42 ) $ (1.16 ) $ (0.77 ) Discontinued operations 0.01 — 0.01 $ — $ 0.38 $ (0.42 ) $ (1.15 ) $ (0.77 ) Diluted: Continuing operations $ 0.37 $ (0.42 ) $ (1.16 ) $ (0.77 ) Discontinued operations 0.01 — 0.01 — $ 0.38 $ (0.42 ) $ (1.15 ) $ (0.77 ) |
Condensed Consolidating Guara36
Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Tables) | 9 Months Ended | |
Jul. 31, 2017 | 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, 2017 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Sales and revenues, net $ — $ 1,524 $ 1,562 $ (873 ) $ 2,213 Costs of products sold — 1,328 1,337 (862 ) 1,803 Restructuring charges — 31 (44 ) — (13 ) Asset impairment charges — — 6 — 6 All other operating expenses (income) 36 267 88 (14 ) 377 Total costs and expenses 36 1,626 1,387 (876 ) 2,173 Equity in income (loss) of affiliates 73 67 — (139 ) 1 Income (loss) before income taxes 37 (35 ) 175 (136 ) 41 Income tax benefit (expense) — 35 (35 ) — — Income (loss) from continuing operations 37 — 140 (136 ) 41 Income from discontinued operations, net of tax — — 1 — 1 Net income (loss) 37 — 141 (136 ) 42 Less: Net income attributable to non-controlling interests — — 5 — 5 Net income (loss) attributable to Navistar International Corporation $ 37 $ — $ 136 $ (136 ) $ 37 Condensed Consolidating Statement of Operations for the Nine Months Ended July 31, 2017 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Sales and revenues, net $ — $ 4,319 $ 3,988 $ (2,335 ) $ 5,972 Costs of products sold — 3,813 3,431 (2,295 ) 4,949 Restructuring charges — 33 (37 ) — (4 ) Asset impairment charges — 7 6 — 13 All other operating expenses (income) 92 738 307 (39 ) 1,098 Total costs and expenses 92 4,591 3,707 (2,334 ) 6,056 Equity in income (loss) of affiliates (13 ) 128 3 (112 ) 6 Income (loss) before income taxes (105 ) (144 ) 284 (113 ) (78 ) Income tax benefit (expense) — 35 (45 ) — (10 ) Income (loss) from continuing operations (105 ) (109 ) 239 (113 ) (88 ) Income from discontinued operations, net of tax — — 1 — 1 Net income (loss) (105 ) (109 ) 240 (113 ) (87 ) Less: Net income attributable to non-controlling interests — — 18 — 18 Net income (loss) attributable to Navistar International Corporation $ (105 ) $ (109 ) $ 222 $ (113 ) $ (105 ) Condensed Consolidating Statement of Operations for the Three Months Ended July 31, 2016 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other 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 ) 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, Inc. Non-Guarantor Subsidiaries Eliminations and Other 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 ) 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 ) |
Schedule of Condensed Statement of Comprehensive Income [Table Text Block] | Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended July 31, 2017 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net income (loss) $ 37 $ — $ 141 $ (136 ) $ 42 Other comprehensive income (loss): Foreign currency translation adjustment 42 — 42 (42 ) 42 Defined benefit plans, net of tax 125 126 35 (161 ) 125 Total other comprehensive income (loss) 167 126 77 (203 ) 167 Comprehensive income (loss) 204 126 218 (339 ) 209 Less: Net income attributable to non-controlling interests — — 5 — 5 Total comprehensive income (loss) attributable to Navistar International Corporation $ 204 $ 126 $ 213 $ (339 ) $ 204 Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended July 31, 2016 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other 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, 2017 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net income (loss) $ (105 ) $ (109 ) $ 240 $ (113 ) $ (87 ) Other comprehensive income (loss): Foreign currency translation adjustment 34 — 34 (34 ) 34 Defined benefit plans, net of tax 194 192 38 (230 ) 194 Total other comprehensive income (loss) 228 192 72 (264 ) 228 Comprehensive income (loss) 123 83 312 (377 ) 141 Less: Net income attributable to non-controlling interests — — 18 — 18 Total comprehensive income (loss) attributable to Navistar International Corporation $ 123 $ 83 $ 294 $ (377 ) $ 123 | Condensed Consolidating Statement of Comprehensive Income (Loss) for the Nine Months Ended July 31, 2016 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other 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 July 31, 2017 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 652 $ 23 $ 236 $ — $ 911 Marketable securities 44 — 18 — 62 Restricted cash 16 5 116 — 137 Finance and other receivables, net 8 202 1,997 (90 ) 2,117 Inventories — 585 399 (5 ) 979 Investments in non-consolidated affiliates (7,215 ) 6,372 52 846 55 Property and equipment, net — 796 544 (7 ) 1,333 Goodwill — — 38 — 38 Deferred taxes, net — 10 132 (1 ) 141 Other 3 127 178 (1 ) 307 Total assets $ (6,492 ) $ 8,120 $ 3,710 $ 742 $ 6,080 Liabilities and stockholders’ equity (deficit) Debt $ 2,227 $ 1,192 $ 1,801 $ — $ 5,220 Postretirement benefits liabilities — 2,690 134 — 2,824 Amounts due to (from) affiliates (7,738 ) 10,947 (3,261 ) 52 — Other liabilities 3,944 (244 ) (677 ) (64 ) 2,959 Total liabilities (1,567 ) 14,585 (2,003 ) (12 ) 11,003 Stockholders’ equity (deficit) attributable to Navistar International Corporation (4,925 ) (6,465 ) 5,711 754 (4,925 ) Stockholders’ equity attributable to non-controlling interest — — 2 — 2 Total liabilities and stockholders’ equity (deficit) $ (6,492 ) $ 8,120 $ 3,710 $ 742 $ 6,080 Condensed Consolidating Balance Sheet as of October 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 435 $ 117 $ 252 $ — $ 804 Marketable securities 27 — 19 — 46 Restricted cash 16 6 90 — 112 Finance and other receivables, net (1 ) 171 1,883 (84 ) 1,969 Inventories — 639 313 (8 ) 944 Investments in non-consolidated affiliates (7,714 ) 6,253 57 1,457 53 Property and equipment, net — 669 580 (8 ) 1,241 Goodwill — — 38 — 38 Deferred taxes, net — 10 150 1 161 Other 2 110 175 (2 ) 285 Total assets $ (7,235 ) $ 7,975 $ 3,557 $ 1,356 $ 5,653 Liabilities and stockholders’ equity (deficit) Debt $ 1,965 $ 1,100 $ 1,841 $ (2 ) $ 4,904 Postretirement benefits liabilities — 2,865 233 — 3,098 Amounts due to (from) affiliates (7,724 ) 10,709 (3,040 ) 55 — Other liabilities 3,822 (152 ) (665 ) (61 ) 2,944 Total liabilities (1,937 ) 14,522 (1,631 ) (8 ) 10,946 Stockholders’ equity (deficit) attributable to Navistar International Corporation (5,298 ) (6,547 ) 5,183 1,364 (5,298 ) Stockholders’ equity attributable to non-controlling interest — — 5 — 5 Total liabilities and stockholders’ equity (deficit) $ (7,235 ) $ 7,975 $ 3,557 $ 1,356 $ 5,653 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 investment 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 | |
Schedule of Condensed Cash Flow Statement [Table Text Block] | Condensed Consolidating Statement of Cash Flows for the Nine Months Ended July 31, 2017 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net cash provided by (used in) operating activities $ (307 ) $ (401 ) $ (126 ) $ 666 $ (168 ) Cash flows from investing activities Net change in restricted cash and cash equivalents — 2 (27 ) — (25 ) Net sales (purchases) of marketable securities (16 ) — — — (16 ) Capital expenditures and purchase of equipment leased to others — (132 ) (57 ) — (189 ) Other investing activities (250 ) 6 30 250 36 Net cash provided by (used in) investing activities (266 ) (124 ) (54 ) 250 (194 ) Cash flows from financing activities Net borrowings (repayments) of debt 542 384 (58 ) (674 ) 194 Issuance of common stock, net of issuance costs 245 — 250 (250 ) 245 Other financing activities 3 47 (29 ) 8 29 Net cash provided by (used in) financing activities 790 431 163 (916 ) 468 Effect of exchange rate changes on cash and cash equivalents — — 1 — 1 Increase (decrease) in cash and cash equivalents 217 (94 ) (16 ) — 107 Cash and cash equivalents at beginning of the period 435 117 252 — 804 Cash and cash equivalents at end of the period $ 652 $ 23 $ 236 $ — $ 911 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 investment 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 Accoun37
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2017USD ($)employeessegments | Jul. 31, 2016USD ($) | Jul. 31, 2017USD ($)employees | Jul. 31, 2016USD ($) | Oct. 31, 2016USD ($) | |
Accounting Policies [Line Items] | |||||
Costs of products sold | $ 1,803 | $ 1,757 | $ 4,949 | $ 5,068 | |
Net loss attributable to Navistar International Corporation | $ 37 | (34) | (105) | (63) | |
Number Of Segments | segments | 4 | ||||
Goodwill | $ 38 | 38 | $ 38 | ||
Sales of manufactured products, net | 2,178 | 2,052 | 5,870 | 5,946 | |
Interest expense | 91 | 84 | 262 | 246 | |
Capital expenditures | $ 27 | 30 | 93 | 83 | |
Proceeds from finance lease obligations | 49 | 17 | |||
Product Warranty Accrual, Preexisting, Increase (Decrease) | $ (4) | 70 | |||
Document Type | 10-Q | ||||
Unionized Employees Concentration Risk [Member] | Number Of Employees Hourly Workers [Member] | |||||
Accounting Policies [Line Items] | |||||
Concentration Risk Number Of Employees | employees | 6,600 | 6,600 | |||
concentration risk number of employees percentage | 94.00% | 94.00% | |||
Unionized Employees Concentration Risk [Member] | Number of Employees Salaried Workers [Member] | |||||
Accounting Policies [Line Items] | |||||
Concentration Risk Number Of Employees | employees | 900 | 900 | |||
concentration risk number of employees percentage | 17.00% | 17.00% | |||
North America Truck [Member] | |||||
Accounting Policies [Line Items] | |||||
Interest expense | $ 0 | 0 | $ 0 | 0 | |
Capital expenditures | 21 | 26 | 78 | 70 | |
Extended Warranty Programs [Member] | |||||
Accounting Policies [Line Items] | |||||
Deferred Revenue, Revenue Recognized | 28 | $ 37 | 109 | $ 113 | |
Deferred Revenue | $ 280 | $ 280 | $ 325 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Variable Interest Entities (Details) - USD ($) $ in Millions | Jul. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Oct. 31, 2015 |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 911 | $ 804 | $ 547 | $ 912 |
Variable Interest Entity Primary Beneficiary, Blue Diamond Parts [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 35 | 51 | ||
Cash and cash equivalents | 3 | 6 | ||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | 13 | 16 | ||
Variable Interest Entity Primary Beneficiary Securitizations Treated As Borrowings [Member] | Financial Services Operations | ||||
Variable Interest Entity [Line Items] | ||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 901 | 865 | ||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | 773 | 722 | ||
Transaction Does Not Qualify for Sale Accounting [Member] | Financial Services Operations | ||||
Variable Interest Entity [Line Items] | ||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 242 | 249 | ||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | $ 156 | $ 136 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Product Warranty Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 | Oct. 31, 2015 | |
Product Liability Contingency [Line Items] | ||||||
Document Type | 10-Q | |||||
Product Warranty Accrual | $ 659 | $ 868 | $ 659 | $ 868 | $ 818 | $ 994 |
Product Warranty Accrual, Warranties Issued | 137 | 141 | ||||
Product Warranty Accrual, Currency Translation, Increase (Decrease) | 0 | 2 | ||||
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward: | ||||||
Adjustments to pre-existing warranties(A)(B) | (4) | 70 | ||||
Extended Warranty Program: | ||||||
Product Warranty Accrual, Payments | (292) | (339) | ||||
Product Warranty Accrual, Current | 340 | 423 | 340 | 423 | ||
Product Warranty Accrual, Noncurrent | 319 | 445 | 319 | 445 | ||
Extended Warranty Programs [Member] | ||||||
Extended Warranty Program: | ||||||
Deferred Revenue, Revenue Recognized | 28 | $ 37 | 109 | $ 113 | ||
Deferred Revenue | $ 280 | $ 280 | $ 325 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 | Oct. 31, 2015 | |
Inventory Reserve [Line Items] | ||||||
Gross truck bed inventory | $ 280 | $ 280 | $ 410 | |||
Inventory reserves | 174 | 174 | 208 | |||
Trucks [Member] | ||||||
Inventory Reserve [Line Items] | ||||||
Valuation Allowances and Reserves, Additions for Charges to Cost and Expense | 14 | $ 40 | 102 | $ 124 | ||
Valuation Allowances and Reserves, Deductions | (136) | (68) | ||||
Valuation Allowances and Reserves, Balance | $ 174 | $ 166 | $ 174 | $ 166 | $ 208 | $ 110 |
Restructuring and Impairments -
Restructuring and Impairments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2017 | Jan. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2014 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ (13) | $ 5 | $ (4) | $ 11 | |||
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | 2,747 | 2,747 | $ 3,023 | ||||
Restructuring and Related Cost, Incurred Cost | 15 | 4 | |||||
Asset impairment charges | 6 | 12 | 13 | 17 | |||
Goodwill | 38 | 38 | $ 38 | ||||
Other Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Incurred Cost | 0 | 0 | |||||
Employee Severance [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Incurred Cost | 15 | 4 | |||||
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] | |||||||
Asset impairment charges | 1 | $ 11 | 8 | $ 16 | |||
Conway [Member] | North America Truck [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Asset impairment charges | 5 | ||||||
Pure Power Technologies [Member] | North America Truck [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Asset impairment charges | 3 | ||||||
Other Postretirement Benefit Plan [Member] | Chatham [Member] | Facility Closing [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Postemployment Benefits, Period Expense | 23 | $ 6 | $ 14 | ||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | (66) | $ (66) | |||||
Other Postretirement Benefit Plan [Member] | Melrose Park [Member] | Facility Closing [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Postemployment Benefits, Period Expense | 41 | ||||||
Defined Benefit Plan, Actuarial Gain (Loss) | 91 | ||||||
Other Postretirement Benefit Plan [Member] | Melrose Park [Member] | Other Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Postemployment Benefits, Period Expense | $ 10 |
Restructuring and Impairments42
Restructuring and Impairments - Restructuring Reserve by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2017 | Jan. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2014 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 | Oct. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ (13) | $ 5 | $ (4) | $ 11 | ||||
Restructuring Reserve | 10 | 12 | 10 | 12 | $ 7 | $ 68 | ||
Restructuring and Related Cost, Incurred Cost | 15 | 4 | ||||||
Payments for Restructuring | (12) | (62) | ||||||
Restructuring Reserve, Accrual Adjustment | 0 | 2 | ||||||
Employee Severance [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Reserve | 9 | 10 | 9 | 10 | 5 | 62 | ||
Restructuring and Related Cost, Incurred Cost | 15 | 4 | ||||||
Payments for Restructuring | (11) | (58) | ||||||
Restructuring Reserve, Accrual Adjustment | 0 | 2 | ||||||
Lease Vacancy [Member] [Domain] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Reserve | 0 | 1 | 0 | 1 | 1 | 5 | ||
Restructuring and Related Cost, Incurred Cost | 0 | 0 | ||||||
Payments for Restructuring | (1) | (4) | ||||||
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 | 0 | ||||||
Payments for Restructuring | 0 | 0 | ||||||
Restructuring Reserve, Accrual Adjustment | $ 0 | $ 0 | ||||||
Other Postretirement Benefit Plan [Member] | Chatham [Member] | Facility Closing [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Postemployment Benefits, Period Expense | 23 | $ 6 | $ 14 | |||||
Other Postretirement Benefit Plan [Member] | Melrose Park [Member] | Facility Closing [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Postemployment Benefits, Period Expense | 41 | |||||||
Other Postretirement Benefit Plan [Member] | Melrose Park [Member] | Other Restructuring [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Postemployment Benefits, Period Expense | 10 | |||||||
Other Postretirement Benefit Plan [Member] | Melrose Park [Member] | Defined Benefit Plan Remeasurement [Domain] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Postemployment Benefits, Period Expense | $ 2 |
Restructuring and Impairments43
Restructuring and Impairments - Schedule of Impairment Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | $ 2,747 | $ 2,747 | $ 3,023 | ||
Asset impairment charges | 6 | $ 12 | 13 | $ 17 | |
North America Truck [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment charges | $ 1 | $ 11 | 8 | $ 16 | |
North America Truck [Member] | Pure Power Technologies [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment charges | 3 | ||||
North America Truck [Member] | Conway [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment charges | $ 5 |
Finance Receivables - Narrative
Finance Receivables - Narrative (Details) $ in Millions | Jul. 31, 2017USD ($)segments | Oct. 31, 2016USD ($) |
Schedule of Securitization [Line Items] | ||
Loans and Leases Receivable, Net Amount | $ 1,800 | $ 1,700 |
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 | $ 820 | 829 |
Cash Collateral for Borrowed Securities | 122 | 108 |
Financial Services Operations | ||
Schedule of Securitization [Line Items] | ||
Assets Net Of Intercompany Balances | $ 2,200 | $ 2,100 |
Finance Receivables - Finance R
Finance Receivables - Finance Receivables (Details) - USD ($) $ in Millions | Jul. 31, 2017 | Oct. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $ 1,811 | $ 1,698 | |
Less: Allowance for Doubtful accounts | 23 | 21 | |
Total finance receivables, net | 1,788 | 1,677 | |
Financing Receivable, Recorded Investment, Current | [1] | 1,557 | 1,457 |
Finance Receivables, Noncurrent | 231 | 220 | |
Loans and Leases Receivable, Gross | 1,811 | 1,698 | |
Retail Portfolio [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 520 | 499 | |
Wholesale Portfolio [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $ 1,291 | $ 1,199 | |
[1] | (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 Receivables - Schedule
Finance Receivables - Schedule of Finance Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Finance Revenues [Line Items] | ||||
Retail notes and finance leases revenue | $ 11 | $ 9 | $ 30 | $ 28 |
Gross finance revenues | 62 | 60 | 172 | 177 |
Less: Intercompany revenues | 27 | 26 | 70 | 75 |
Finance revenues | 35 | 34 | 102 | 102 |
Financing Receivable [Member] | ||||
Finance Revenues [Line Items] | ||||
Operating lease revenue | 17 | 17 | 50 | 49 |
Wholesale Portfolio [Member] | Notes Receivable [Member] | ||||
Finance Revenues [Line Items] | ||||
Interest Income, Operating | 28 | 29 | 75 | 81 |
Retail And Wholesale Portfolios [Member] | ||||
Finance Revenues [Line Items] | ||||
Interest Income, Operating | $ 6 | $ 5 | $ 17 | $ 19 |
Allowance for Doubtful Accoun47
Allowance for Doubtful Accounts - Schedule of Allowance for Retail, Wholesale, Trade & Other (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Allowance for doubtful accounts at beginning of period | $ 51 | $ 51 | $ 49 | $ 48 |
Provision for doubtful accounts, net of recoveries | 1 | 1 | 8 | 8 |
Charge-off of accounts | (1) | (4) | (6) | (9) |
Financing Receivable, Allowance for Credit Losses, Other | 1 | 0 | 1 | 1 |
Allowance for doubtful accounts at end of period | 52 | 48 | 52 | 48 |
Retail Portfolio [Member] | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Allowance for doubtful accounts at beginning of period | 21 | 21 | 19 | 22 |
Provision for doubtful accounts, net of recoveries | (1) | 2 | 5 | 5 |
Charge-off of accounts | (1) | (3) | (5) | (7) |
Financing Receivable, Allowance for Credit Losses, Other | 1 | (2) | 1 | (2) |
Allowance for doubtful accounts at end of period | 20 | 18 | 20 | 18 |
Impaired Financing Receivable, Average Recorded Investment | 19 | 18 | ||
Wholesale Portfolio [Member] | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Allowance for doubtful accounts at beginning of period | 2 | 4 | 2 | 4 |
Provision for doubtful accounts, net of recoveries | 1 | (1) | 1 | (1) |
Charge-off of accounts | 0 | 0 | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Other | 0 | 0 | 0 | 0 |
Allowance for doubtful accounts at end of period | 3 | 3 | 3 | 3 |
Trade and Other Receivables [Member] | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Allowance for doubtful accounts at beginning of period | 28 | 26 | 28 | 22 |
Provision for doubtful accounts, net of recoveries | 1 | 0 | 2 | 4 |
Charge-off of accounts | 0 | (1) | (1) | (2) |
Financing Receivable, Allowance for Credit Losses, Other | 0 | 2 | 0 | 3 |
Allowance for doubtful accounts at end of period | $ 29 | $ 27 | $ 29 | $ 27 |
Allowance for Doubtful Accoun48
Allowance for Doubtful Accounts - Schedule of Impaired Finance Receivables (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 | |
Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | $ 19 | $ 18 | |
Impaired finance receivables with specific loss reserves [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 20 | $ 15 | |
Impaired finance receivables with specific loss reserves [Member] | Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 20 | 15 | |
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 | 8 | |
Specific loss reserves on impaired finance receivables [Member] | Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Specific loss reserves on impaired finance receivables | 9 | 8 | |
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 | 20 | 15 | |
Finance receivable non-accrual status [Member] | Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Finance receivables on non-accrual status | 20 | 15 | |
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 Accoun49
Allowance for Doubtful Accounts - Schedule of Allowance Aging Analysis (Details) - USD ($) $ in Millions | Jul. 31, 2017 | Oct. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Current | $ 1,755 | $ 1,647 |
30-90 days past due | 40 | 37 |
Total finance receivables | 1,811 | 1,698 |
Retail Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Current | 465 | 449 |
30-90 days past due | 39 | 37 |
Total finance receivables | 520 | 499 |
Wholesale Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Current | 1,290 | 1,198 |
30-90 days past due | 1 | 0 |
Total finance receivables | 1,291 | 1,199 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Over 90 days past due | 16 | 14 |
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 | 13 |
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 | $ 0 | $ 1 |
Allowance for Doubtful Accoun50
Allowance for Doubtful Accounts - Narrative (Details) $ in Millions | 9 Months Ended | |
Jul. 31, 2017USD ($)segmentsclass | Jul. 31, 2016USD ($) | |
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 | $ | $ 19 | $ 18 |
Inventories - Inventory (Detail
Inventories - Inventory (Details) - USD ($) $ in Millions | Jul. 31, 2017 | Oct. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 631 | $ 678 |
Work in process | 66 | 46 |
Raw materials | 282 | 220 |
Total inventories, net | $ 979 | $ 944 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Millions | Jul. 31, 2017 | Apr. 30, 2017 | Oct. 31, 2016 |
Debt Instrument [Line Items] | |||
Long-term Debt and Capital Lease Obligations | $ 4,255 | $ 3,997 | |
Financial Services Operations | |||
Debt Instrument [Line Items] | |||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 1,796 | 1,808 | |
Long-term Debt and Capital Lease Obligations, Current | 851 | 836 | |
Long-term Debt and Capital Lease Obligations | 945 | 972 | |
Financial Services Operations | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | $ 6 | 6 | |
Long-term Debt | 822 | 753 | |
Financial Services Operations | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | 2 | 3 | |
Long-term Debt | 774 | 861 | |
Financial Services Operations | Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 100 | 96 | |
Financial Services Operations | Borrowings Secured By Operating and Finance Leases [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 100 | 98 | |
Manufacturing Operations [Member] | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | 4 | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 3,424 | 3,096 | |
Long-term Debt and Capital Lease Obligations, Current | 114 | 71 | |
Long-term Debt and Capital Lease Obligations | 3,310 | 3,025 | |
Manufacturing Operations [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | 11 | 7 | |
Debt Instrument, Unamortized Discount | 9 | 14 | |
Long-term Debt | 1,001 | 1,009 | |
Manufacturing Operations [Member] | Notes Payable to Banks [Member] | Eight Point Two Five Percent Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | 14 | 12 | |
Debt Instrument, Unamortized Discount | $ 14 | 15 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | ||
Long-term Debt | $ 1,422 | 1,173 | |
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | $ 1 | 1 | |
Debt Instrument, Unamortized Discount | $ 6 | 10 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | |
Long-term Debt | $ 193 | 189 | |
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | $ 3 | 4 | |
Debt Instrument, Unamortized Discount | $ 17 | 24 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | |
Long-term Debt | $ 391 | 383 | |
Manufacturing Operations [Member] | Financing Arrangements and Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 36 | 42 | |
Manufacturing Operations [Member] | Tax Exempt Bond [Member] | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | $ 5 | 5 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | |
Long-term Debt | $ 220 | 220 | |
Manufacturing Operations [Member] | Financed lease obligations [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 127 | 52 | |
Manufacturing Operations [Member] | Notes Payable, Other Payables [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 34 | $ 28 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 9 Months Ended | |||||||||||||
Feb. 28, 2017 | Dec. 31, 2016 | Dec. 31, 2011 | Apr. 30, 2017 | Jul. 31, 2017 | Jul. 31, 2016 | May 31, 2017 | Jan. 31, 2017 | Nov. 30, 2016 | Oct. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Jan. 31, 2015 | Mar. 31, 2013 | Aug. 31, 2012 | Oct. 31, 2009 | |
Debt Instrument [Line Items] | ||||||||||||||||
Payments of Debt Issuance Costs | $ 22,000,000 | $ 12,000,000 | ||||||||||||||
Term Loan [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Payments of Debt Issuance Costs | $ 4,000,000 | |||||||||||||||
Manufacturing Operations [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Accrued Liabilities | $ 4,000,000 | |||||||||||||||
Debt Issuance Costs, Net | 4,000,000 | |||||||||||||||
Financial Services Operations | VFN Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 425,000,000 | $ 450,000,000 | $ 500,000,000 | |||||||||||||
Financial Services Operations | Trac Funding Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 100,000,000 | |||||||||||||||
Revolving Credit Facility [Member] | Financial Services Operations | Bank Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 275,000,000 | $ 500,000,000 | $ 400,000,000 | |||||||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 274,000,000 | |||||||||||||||
Line of Credit Facility, Accordion Feature, Higher Borrowing Capacity Option | $ 700,000,000 | |||||||||||||||
Term Loan [Member] | Financial Services Operations | Bank Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 82,000,000 | |||||||||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 78,000,000 | |||||||||||||||
Commercial Paper [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of Credit Facility, Expiration Period | 5 years | |||||||||||||||
Installment Payments Set Two [Member] | Term Loan [Member] | Financial Services Operations | Bank Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Periodic Payment, Principal | $ 2,000,000 | $ 9,000,000 | ||||||||||||||
Line of Credit [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate, Period Increase (Decrease) | 1.50% | |||||||||||||||
Line of Credit [Member] | Manufacturing Operations [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Issuance Costs, Net | 11,000,000 | $ 7,000,000 | ||||||||||||||
Line of Credit [Member] | Financial Services Operations | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Issuance Costs, Net | $ 2,000,000 | $ 3,000,000 | ||||||||||||||
Notes Payable to Banks [Member] | Manufacturing Operations [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 250,000,000 | $ 300,000,000 | $ 1,000,000,000 | |||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.50% | |||||||||||||||
Mexico, Pesos | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Commercial Paper | $ 1,800,000,000 | |||||||||||||||
United States of America, Dollars | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Commercial Paper | $ 102,000,000 | |||||||||||||||
Eurodollar [Member] | Line of Credit [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | |||||||||||||||
Base Rate [Member] | Line of Credit [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |||||||||||||||
Debt Instrument, Consent Fee Amount, Percent | 0.25% | |||||||||||||||
Debt Instrument, Call Protection Fee Amount, Percent | 1.00% |
Postretirement Benefits - Narra
Postretirement Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2017 | Jan. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2014 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer contributions | $ 21 | $ 20 | $ 67 | $ 60 | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 46 | ||||||
Defined Benefit Plan, Cost of Providing Special or Contractual Termination Benefits Recognized During Period | $ 1 | ||||||
Income Tax Expense (Benefit) | 0 | 14 | 10 | 25 | |||
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | 2,747 | 2,747 | $ 3,023 | ||||
Defined Contribution Plan, Cost Recognized | 7 | $ 7 | 22 | $ 22 | |||
Chatham [Member] | Facility Closing [Member] | Other Postretirement Benefit Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Postemployment Benefits, Period Expense | 23 | $ 6 | $ 14 | ||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | (66) | $ (66) | |||||
Melrose Park [Member] | Facility Closing [Member] | Other Postretirement Benefit Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Postemployment Benefits, Period Expense | 41 | ||||||
Defined Benefit Plan, Actuarial Gain (Loss) | 91 | ||||||
Melrose Park [Member] | Defined Benefit Plan Remeasurement [Domain] | Other Postretirement Benefit Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Postemployment Benefits, Period Expense | 2 | ||||||
Intraperiod Tax Allocation Rule [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Income Tax Expense (Benefit) | $ (35) |
Postretirement Benefits - Sched
Postretirement Benefits - Schedule of Net Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Cost Recognized | $ 7 | $ 7 | $ 22 | $ 22 |
Employer contributions | 21 | 20 | 67 | 60 |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 2 | 6 | 7 |
Interest on obligations | 27 | 29 | 80 | 88 |
Amortization of cumulative loss | 30 | 26 | 89 | 78 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 23 | 0 | 23 | 0 |
Contractual termination benefits | 9 | 1 | 10 | 3 |
Curtailments and other | 0 | 0 | 0 | 0 |
Premiums on pension insurance | 4 | 4 | 12 | 12 |
Expected return on assets | (40) | (41) | (119) | (125) |
Net postretirement benefits expense | 55 | 21 | 101 | 63 |
Health and Life Insurance Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 4 | 4 |
Interest on obligations | 11 | 14 | 35 | 44 |
Amortization of cumulative loss | 6 | 8 | 17 | 24 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | 0 | (1) |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 0 | 0 | 0 | 0 |
Contractual termination benefits | 4 | 4 | 4 | 4 |
Curtailments and other | (58) | 0 | (58) | 0 |
Premiums on pension insurance | 0 | 0 | 0 | 0 |
Expected return on assets | (5) | (6) | (17) | (19) |
Net postretirement benefits expense | $ (41) | $ 21 | $ (15) | $ 56 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||
Income Taxes Percent Likelihood Of Being Realized Upon Settlement | 50.00% | 50.00% | ||
Income tax expense | $ 0 | $ (14) | $ (10) | $ (25) |
Unrecognized Tax Benefits | 49 | 49 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 1 | 1 | ||
Intraperiod Tax Allocation Rule [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax expense | $ 35 | |||
Other Comprehensive Income (Loss) [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax expense | $ 14 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jul. 31, 2017 | Oct. 31, 2016 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 62 | $ 46 |
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 | 4 | 3 |
Guarantees, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 9 | 0 |
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 | 19 | 23 |
Liabilities, Fair Value Disclosure | 19 | 23 |
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 | 3 | 6 |
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 | 59 | 40 |
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 | 1 | 0 |
Other Current Assets [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 0 | 0 |
Other 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 | 2 | 2 |
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 Noncurrent Assets [Member] | Interest Rate Cap [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 0 | 0 |
Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 1 | 1 |
Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 0 | 0 |
Other Current Liabilities [Member] | 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 | 9 | 0 |
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 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 66 | 49 |
Guarantees, Fair Value Disclosure | 19 | 23 |
Liabilities, Fair Value Disclosure | 28 | 23 |
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 | 3 | 6 |
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 | 59 | 40 |
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 | 1 | 0 |
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 | 2 | 2 |
Estimate of Fair Value Measurement [Member] | Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 1 | 1 |
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 | $ 9 | $ 0 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Reconciliation (Details) - Guarantees [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
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) | $ (19) | $ (23) | $ (10) |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Issuances | 0 | (5) | 1 | (16) |
Settlements | 0 | 1 | 3 | 3 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset (Liability) Ending Value | $ (19) | $ (23) | $ (19) | $ (23) |
Fair Value Measurements - Fin59
Fair Value Measurements - Financial Instruments Measured on Nonrecurring Basis (Details) - USD ($) $ in Millions | Jul. 31, 2017 | Oct. 31, 2016 |
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 | $ 20 | $ 15 |
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) | $ (8) |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Apr. 30, 2017 | Oct. 31, 2016 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Goodwill | $ 38 | $ 38 | $ 38 | ||||||
Asset impairment charges | 6 | $ 12 | 13 | $ 17 | |||||
Reported Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Retail Notes | 158 | 158 | 151 | ||||||
Notes Receivable | 0 | 0 | 1 | ||||||
Estimate of Fair Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Retail Notes | 152 | 152 | 153 | ||||||
Notes Receivable | 0 | 0 | 1 | ||||||
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 | 0 | ||||||
Notes Receivable | 0 | 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 | 0 | ||||||
Notes Receivable | 0 | 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 | 152 | 152 | 153 | ||||||
Notes Receivable | 0 | 0 | 1 | ||||||
North America Truck [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Asset impairment charges | 1 | $ 11 | 8 | $ 16 | |||||
Line of Credit [Member] | Manufacturing Operations [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt | 1,001 | 1,001 | 1,009 | ||||||
Line of Credit [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt | 1,001 | 1,001 | 1,009 | ||||||
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 | 1,031 | 1,031 | 1,037 | ||||||
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 | 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 | 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 | 1,031 | 1,031 | 1,037 | ||||||
Line of Credit [Member] | Financial Services Operations | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt | 774 | 774 | 861 | ||||||
Line of Credit [Member] | Financial Services Operations | Reported Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt | 774 | 774 | 861 | ||||||
Line of Credit [Member] | Financial Services Operations | Estimate of Fair Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt, Fair Value | 751 | 751 | 851 | ||||||
Line of Credit [Member] | Financial Services Operations | 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 | 0 | ||||||
Line of Credit [Member] | Financial Services Operations | 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 | 0 | ||||||
Line of Credit [Member] | Financial Services Operations | 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 | 751 | 751 | 851 | ||||||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt | 32 | 32 | 37 | ||||||
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 | 16 | 16 | 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 | 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 | 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 | $ 16 | $ 16 | 17 | ||||||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | 6.50% | ||||||
Long-term Debt | $ 220 | $ 220 | 220 | ||||||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt | 220 | 220 | 220 | ||||||
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 | 234 | 234 | 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 | 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 | 234 | 234 | 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 | 0 | ||||||
Financed lease obligations [Member] | Manufacturing Operations [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt | 127 | 127 | 52 | ||||||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt | 127 | 127 | 52 | ||||||
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 | 127 | 127 | 52 | ||||||
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 | 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 | 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 | 127 | 127 | 52 | ||||||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt | 34 | 34 | 28 | ||||||
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 | 34 | 34 | 28 | ||||||
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 | 34 | 34 | 26 | ||||||
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 | 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 | 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 | 34 | 34 | 26 | ||||||
Secured Debt [Member] | Financial Services Operations | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt | 822 | 822 | 753 | ||||||
Secured Debt [Member] | Financial Services Operations | Reported Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt | 822 | 822 | 753 | ||||||
Secured Debt [Member] | Financial Services Operations | Estimate of Fair Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt, Fair Value | 828 | 828 | 754 | ||||||
Secured Debt [Member] | Financial Services Operations | 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 | 0 | ||||||
Secured Debt [Member] | Financial Services Operations | 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 | 0 | ||||||
Secured Debt [Member] | Financial Services Operations | 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 | 828 | 828 | 754 | ||||||
Commercial Paper [Member] | Financial Services Operations | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt | 100 | 100 | 96 | ||||||
Commercial Paper [Member] | Financial Services Operations | Reported Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt | 100 | 100 | 96 | ||||||
Commercial Paper [Member] | Financial Services Operations | Estimate of Fair Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt, Fair Value | 100 | 100 | 96 | ||||||
Commercial Paper [Member] | Financial Services Operations | Fair Value, Inputs, Level 1 [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt, Fair Value | 100 | 100 | |||||||
Commercial Paper [Member] | Financial Services Operations | 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 | 96 | ||||||||
Commercial Paper [Member] | Financial Services Operations | Fair Value, Inputs, Level 2 [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt, Fair Value | 0 | 0 | |||||||
Commercial Paper [Member] | Financial Services Operations | 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 | Fair Value, Inputs, Level 3 [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt, Fair Value | 0 | 0 | |||||||
Commercial Paper [Member] | Financial Services Operations | 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 | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt | 100 | 100 | 98 | ||||||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations | Reported Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt | 100 | 100 | 98 | ||||||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations | Estimate of Fair Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt, Fair Value | 101 | 101 | 98 | ||||||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations | 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 | 0 | ||||||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations | 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 | 0 | ||||||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations | 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 | 101 | 101 | 98 | ||||||
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] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | ||||||||
Long-term Debt | 1,422 | 1,422 | 1,173 | ||||||
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 | 1,422 | 1,422 | 1,173 | ||||||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt, Fair Value | 1,447 | 1,447 | 1,180 | ||||||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Long-term Debt, Fair Value | 1,447 | 1,447 | 1,180 | ||||||
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 | 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 | 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] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | 4.50% | ||||||
Long-term Debt | $ 193 | $ 193 | 189 | ||||||
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] | 193 | 193 | 189 | |||||
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] | 201 | 201 | 189 | |||||
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 | 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 | 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] | $ 201 | $ 201 | 189 | |||||
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] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | 4.75% | ||||||
Long-term Debt | $ 391 | $ 391 | 383 | ||||||
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] | 391 | 391 | 383 | |||||
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] | 413 | 413 | 382 | |||||
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 | 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 | [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] | $ 413 | $ 413 | $ 382 | |||||
[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, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Apr. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Asset impairment charges | $ 6 | $ 12 | $ 13 | $ 17 | ||
Goodwill | 38 | $ 38 | 38 | |||
Cash and Cash Equivalents, Maturity Term | 90 days | |||||
Marketable Securities, Maturity Term | 90 days | |||||
North America Truck [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Asset impairment charges | $ 1 | $ 11 | $ 8 | $ 16 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | 6.50% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) BRL in Millions | Nov. 16, 2016 | Oct. 21, 2016plaintifflawsuits | Sep. 22, 2016plaintiff | Jul. 16, 2015USD ($) | Jul. 07, 2014lawsuits | Mar. 31, 2014BRL | Jul. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Oct. 31, 2016BRL | Jan. 31, 2014BRL | Jul. 31, 2017USD ($)dealer | Apr. 30, 2017USD ($) | Jul. 31, 2015engine |
Loss Contingencies [Line Items] | |||||||||||||
Available stand-by letters of credit and surety bonds | $ 89,000,000 | $ 89,000,000 | |||||||||||
Purchase commitments | 21,000,000 | 21,000,000 | |||||||||||
Long Term Purchase Commitment Cancellation Fees | 37,000,000 | ||||||||||||
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 | $ 41,000,000 | ||||||||||||
Damages from Product Defects [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Notice of Violation, number | engine | 7,749 | ||||||||||||
Damages from Product Defects [Member] | EPA [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Civil penalties sought, per violation | $ 37,500 | ||||||||||||
G E Operating Agreement [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Operating Agreement Excess Loss Percentage | 10.00% | ||||||||||||
Loss Sharing Agreement, Percentage | 9.50% | 9.50% | |||||||||||
Off Balance Sheet Finance Receivables | $ 1,400,000,000 | $ 1,500,000,000 | $ 1,400,000,000 | ||||||||||
Off Balance Sheet Finance Receivables Related Originations1 | 2,400,000,000 | $ 2,300,000,000 | |||||||||||
Minimum [Member] | Damages from Product Defects [Member] | EPA [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Civil penalties sought, per violation | 2,000,000 | ||||||||||||
Maximum [Member] | Damages from Product Defects [Member] | EPA [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Civil penalties sought, per violation | $ 291,000,000 | ||||||||||||
G E Operating Agreement [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Equipment leased to others | 114,000,000 | 48,000,000 | 114,000,000 | ||||||||||
Manufacturing Operations [Member] | Financed lease obligations [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Long-term Debt | 127,000,000 | 52,000,000 | 127,000,000 | ||||||||||
Manufacturing Operations [Member] | G E Operating Agreement [Member] | Financed lease obligations [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Long-term Debt | 127,000,000 | 51,000,000 | 127,000,000 | ||||||||||
Pending Litigation [Member] | FATMA Notice, Trial [Member] | Penalties [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages sought, value | $ 1,000,000 | BRL 2 | |||||||||||
Profit Sharing Litigation [Member] | Pending Litigation [Member] | Disputes [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages sought, value | $ 50,000,000 | ||||||||||||
Retiree Health Care [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages sought, value | $ 26,000,000 | ||||||||||||
Loss Contingency, Number of Potential Additional Plaintiffs | plaintiff | 1,000 | ||||||||||||
Loss Contingency, Number of Plaintiffs | plaintiff | 2 | ||||||||||||
Loss Contingency, New Claims Filed, Number | lawsuits | 2 | ||||||||||||
MaxxForce Engine EGR Warranty Litigation [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Loss Contingency, Termination Period for Appeal | 15 days | ||||||||||||
Loss Contingency, Number of Plaintiffs | plaintiff | 25 | ||||||||||||
Loss Contingency, New Claims Filed, Number | lawsuits | 17 | ||||||||||||
IIAA Vs. Navitrucks [Member] | Minimum [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Loss Contingency, Damages Calculation Period | 1 year | ||||||||||||
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 | ||||||||||||
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, 2017USD ($)segments | Jul. 31, 2016USD ($) | Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number Of Segments | segments | 4 | |||
Intersegment sales and revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Sales and revenues, net | 2,213 | 2,086 | 5,972 | 6,048 |
Financial Services Operations | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales and revenues | 27 | 26 | 70 | 75 |
Sales and revenues, net | 62 | 60 | 172 | 177 |
North America Truck [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales and revenues | 10 | 9 | 27 | 81 |
Sales and revenues, net | 1,531 | 1,395 | 3,956 | 4,007 |
North America Parts [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales and revenues | 6 | 8 | 19 | 23 |
Sales and revenues, net | 586 | 597 | 1,766 | 1,814 |
Corporate And Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales and revenues | (53) | (55) | (134) | (212) |
Sales and revenues, net | $ (50) | $ (51) | $ (126) | $ (204) |
Segment Reporting - Summary of
Segment Reporting - Summary of Segment Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
External sales and revenues, net | $ 2,213 | $ 2,086 | $ 5,972 | $ 6,048 | |
Segment Assets | 6,080 | 6,080 | $ 5,653 | ||
Intersegment sales and revenues | 0 | 0 | 0 | 0 | |
Sales and revenues, net | 2,213 | 2,086 | 5,972 | 6,048 | |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 36 | (34) | (106) | (63) | |
Income Tax Expense (Benefit) | 0 | 14 | 10 | 25 | |
Segment Profit Loss | 36 | (20) | (96) | (38) | |
Depreciation, Depletion and Amortization | 57 | 53 | 169 | 164 | |
Interest expense | 91 | 84 | 262 | 246 | |
Equity in income of non-consolidated affiliates | 1 | 2 | 6 | 3 | |
Capital expenditures | 27 | 30 | 93 | 83 | |
North America Truck [Member] | |||||
Segment Reporting Information [Line Items] | |||||
External sales and revenues, net | 1,521 | 1,386 | 3,929 | 3,926 | |
Segment Assets | 1,736 | 1,736 | 1,520 | ||
Intersegment sales and revenues | 10 | 9 | 27 | 81 | |
Sales and revenues, net | 1,531 | 1,395 | 3,956 | 4,007 | |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 7 | (54) | (118) | (128) | |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 | |
Segment Profit Loss | 7 | (54) | (118) | (128) | |
Depreciation, Depletion and Amortization | 35 | 29 | 103 | 92 | |
Interest expense | 0 | 0 | 0 | 0 | |
Equity in income of non-consolidated affiliates | 1 | 1 | 3 | 3 | |
Capital expenditures | 21 | 26 | 78 | 70 | |
North America Parts [Member] | |||||
Segment Reporting Information [Line Items] | |||||
External sales and revenues, net | 580 | 589 | 1,747 | 1,791 | |
Segment Assets | 602 | 602 | 594 | ||
Intersegment sales and revenues | 6 | 8 | 19 | 23 | |
Sales and revenues, net | 586 | 597 | 1,766 | 1,814 | |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 157 | 152 | 459 | 478 | |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 | |
Segment Profit Loss | 157 | 152 | 459 | 478 | |
Depreciation, Depletion and Amortization | 3 | 3 | 9 | 10 | |
Interest expense | 0 | 0 | 0 | 0 | |
Equity in income of non-consolidated affiliates | 1 | 1 | 3 | 3 | |
Capital expenditures | 1 | 0 | 2 | 2 | |
Global Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
External sales and revenues, net | 74 | 73 | 186 | 221 | |
Segment Assets | 374 | 374 | 407 | ||
Intersegment sales and revenues | 10 | 12 | 18 | 33 | |
Sales and revenues, net | 84 | 85 | 204 | 254 | |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 3 | (5) | (8) | (19) | |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 | |
Segment Profit Loss | 3 | (5) | (8) | (19) | |
Depreciation, Depletion and Amortization | 3 | 4 | 10 | 13 | |
Interest expense | 0 | 0 | 0 | 0 | |
Equity in income of non-consolidated affiliates | (1) | 0 | 0 | (3) | |
Capital expenditures | 2 | 0 | 5 | 2 | |
Financial Services Operations | |||||
Segment Reporting Information [Line Items] | |||||
External sales and revenues, net | 35 | 34 | 102 | 102 | |
Segment Assets | 2,237 | 2,237 | 2,116 | ||
Intersegment sales and revenues | 27 | 26 | 70 | 75 | |
Sales and revenues, net | 62 | 60 | 172 | 177 | |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 23 | 26 | 51 | 77 | |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 | |
Segment Profit Loss | 23 | 26 | 51 | 77 | |
Depreciation, Depletion and Amortization | 13 | 13 | 38 | 37 | |
Interest expense | 24 | 21 | 65 | 59 | |
Equity in income of non-consolidated affiliates | 0 | 0 | 0 | 0 | |
Capital expenditures | 0 | 1 | 1 | 1 | |
Corporate And Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
External sales and revenues, net | 3 | 4 | 8 | 8 | |
Segment Assets | 1,131 | 1,131 | $ 1,016 | ||
Intersegment sales and revenues | (53) | (55) | (134) | (212) | |
Sales and revenues, net | (50) | (51) | (126) | (204) | |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (154) | (153) | (490) | (471) | |
Income Tax Expense (Benefit) | 0 | (14) | 10 | 25 | |
Segment Profit Loss | (154) | (139) | (480) | (446) | |
Depreciation, Depletion and Amortization | 3 | 4 | 9 | 12 | |
Interest expense | 67 | 63 | 197 | 187 | |
Equity in income of non-consolidated affiliates | 0 | 0 | 0 | 0 | |
Capital expenditures | $ 3 | $ 3 | $ 7 | $ 8 |
Segment Reporting - Summary o65
Segment Reporting - Summary of Segment Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | $ 2,213 | $ 2,086 | $ 5,972 | $ 6,048 |
Sales and revenues, net | 2,213 | 2,086 | 5,972 | 6,048 |
Income (loss) from continuing operations, net of tax | 36 | (34) | (106) | (63) |
Income tax expense | 0 | (14) | (10) | (25) |
Interest expense | 91 | 84 | 262 | 246 |
Equity in income of non-consolidated affiliates | 1 | 2 | 6 | 3 |
Capital expenditures | 27 | 30 | 93 | 83 |
Intersegment sales and revenues | 0 | 0 | 0 | 0 |
Segment Profit Loss | 36 | (20) | (96) | (38) |
Depreciation, Depletion and Amortization | 57 | 53 | 169 | 164 |
North America Truck [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 1,521 | 1,386 | 3,929 | 3,926 |
Sales and revenues, net | 1,531 | 1,395 | 3,956 | 4,007 |
Income (loss) from continuing operations, net of tax | 7 | (54) | (118) | (128) |
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 | 21 | 26 | 78 | 70 |
Intersegment sales and revenues | 10 | 9 | 27 | 81 |
Segment Profit Loss | 7 | (54) | (118) | (128) |
Depreciation, Depletion and Amortization | 35 | 29 | 103 | 92 |
Corporate And Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 3 | 4 | 8 | 8 |
Sales and revenues, net | (50) | (51) | (126) | (204) |
Income (loss) from continuing operations, net of tax | (154) | (153) | (490) | (471) |
Income tax expense | 0 | 14 | (10) | (25) |
Interest expense | 67 | 63 | 197 | 187 |
Equity in income of non-consolidated affiliates | 0 | 0 | 0 | 0 |
Capital expenditures | 3 | 3 | 7 | 8 |
Intersegment sales and revenues | (53) | (55) | (134) | (212) |
Segment Profit Loss | (154) | (139) | (480) | (446) |
Depreciation, Depletion and Amortization | 3 | 4 | 9 | 12 |
North America Parts [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 580 | 589 | 1,747 | 1,791 |
Sales and revenues, net | 586 | 597 | 1,766 | 1,814 |
Income (loss) from continuing operations, net of tax | 157 | 152 | 459 | 478 |
Income tax expense | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Equity in income of non-consolidated affiliates | 1 | 1 | 3 | 3 |
Capital expenditures | 1 | 0 | 2 | 2 |
Intersegment sales and revenues | 6 | 8 | 19 | 23 |
Segment Profit Loss | 157 | 152 | 459 | 478 |
Depreciation, Depletion and Amortization | 3 | 3 | 9 | 10 |
Global Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 74 | 73 | 186 | 221 |
Sales and revenues, net | 84 | 85 | 204 | 254 |
Income (loss) from continuing operations, net of tax | 3 | (5) | (8) | (19) |
Income tax expense | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Equity in income of non-consolidated affiliates | (1) | 0 | 0 | (3) |
Capital expenditures | 2 | 0 | 5 | 2 |
Intersegment sales and revenues | 10 | 12 | 18 | 33 |
Segment Profit Loss | 3 | (5) | (8) | (19) |
Depreciation, Depletion and Amortization | 3 | 4 | 10 | 13 |
Financial Services Operations | ||||
Segment Reporting Information [Line Items] | ||||
Interest Revenue (Expense), Net | 45 | 43 | 121 | 127 |
External sales and revenues, net | 35 | 34 | 102 | 102 |
Sales and revenues, net | 62 | 60 | 172 | 177 |
Income (loss) from continuing operations, net of tax | 23 | 26 | 51 | 77 |
Income tax expense | 0 | 0 | 0 | 0 |
Interest expense | 24 | 21 | 65 | 59 |
Equity in income of non-consolidated affiliates | 0 | 0 | 0 | 0 |
Capital expenditures | 0 | 1 | 1 | 1 |
Intersegment sales and revenues | 27 | 26 | 70 | 75 |
Segment Profit Loss | 23 | 26 | 51 | 77 |
Depreciation, Depletion and Amortization | $ 13 | $ 13 | $ 38 | $ 37 |
Segment Reporting - Summary o66
Segment Reporting - Summary of Segment Long Lived Assets and Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Sales and revenues, net | $ 2,213 | $ 2,086 | $ 5,972 | $ 6,048 |
Financial Services Operations | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Sales and revenues, net | $ 62 | $ 60 | $ 172 | $ 177 |
Stockholders' Deficit Accumulat
Stockholders' Deficit Accumulated Other Comprehensive Income (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Feb. 28, 2017 | Jul. 31, 2017 | Jul. 31, 2016 | Apr. 30, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Issuance of common stock | $ 256 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||
Accumulated Other Comprehensive Loss, Beginning Balance | $ (2,579) | $ (2,536) | (2,640) | $ (2,601) | |||
Other comprehensive loss before reclassifications | 114 | $ (10) | 106 | (11) | |||
Amounts reclassified out of accumulated other comprehensive loss | 53 | 34 | 122 | 100 | |||
Net current-period other comprehensive income (loss) | 167 | 24 | 24 | 228 | 89 | ||
Accumulated Other Comprehensive Loss, Ending Balance | (2,412) | (2,512) | (2,536) | (2,412) | (2,512) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 41 | (28) | (88) | (39) | |||
Tax expense | 0 | (14) | (10) | (25) | |||
Net income (loss) attributable to Navistar International Corporation | $ 37 | (34) | $ (105) | (63) | |||
Common stock, shares authorized | 220 | 220 | 220 | ||||
Common stock, par value | $ 0.1 | $ 0.1 | $ 0.10 | ||||
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 | 1 | ||
Accumulated Translation Adjustment [Member] | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||
Accumulated Other Comprehensive Loss, Beginning Balance | (288) | (270) | (280) | (287) | |||
Other comprehensive loss before reclassifications | 42 | (10) | 34 | 7 | |||
Amounts reclassified out of accumulated other comprehensive loss | 0 | 0 | 0 | 0 | |||
Net current-period other comprehensive income (loss) | 42 | (10) | 34 | 7 | |||
Accumulated Other Comprehensive Loss, Ending Balance | (246) | (280) | (270) | (246) | (280) | ||
Pension Benefits | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||
Accumulated Other Comprehensive Loss, Beginning Balance | (2,292) | (2,267) | (2,361) | (2,315) | |||
Other comprehensive loss before reclassifications | 72 | 0 | 72 | (18) | |||
Amounts reclassified out of accumulated other comprehensive loss | 53 | 34 | 122 | 100 | |||
Net current-period other comprehensive income (loss) | 125 | 34 | 194 | 82 | |||
Accumulated Other Comprehensive Loss, Ending Balance | (2,167) | (2,233) | $ (2,267) | (2,167) | (2,233) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Benefits | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), before Tax | 0 | 0 | 0 | 1 | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||||||
Amortization of actuarial loss | 36 | 34 | 106 | 101 | |||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (59) | (34) | (129) | (100) | |||
Tax expense | (6) | 0 | (7) | 0 | |||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | $ 53 | $ 34 | $ 122 | $ 100 | |||
Volkswagen Truck and Bus GmbH [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Stock Purchase Agreement, Ownership Percentage Transferred to Acquirer, Pro Forma | 16.60% | ||||||
Stock Purchase Agreement, Ownership Percentage Transferred to Acquirer | 19.90% | ||||||
Stock Issued During Period, Shares, New Issues | 16.2 | ||||||
Share Price | $ 15.76 | $ 15.76 | |||||
Issuance of common stock | $ 256 |
Earnings (Loss) Per Share Att68
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, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Earnings Per Share [Abstract] | ||||
Income (loss) from continuing operations, net of tax | $ 36 | $ (34) | $ (106) | $ (63) |
Income from discontinued operations, net of tax | 1 | 0 | 1 | 0 |
Net loss attributable to Navistar International Corporation | $ 37 | $ (34) | $ (105) | $ (63) |
Basic (in shares) | 98.3 | 81.7 | 91.1 | 81.7 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0.3 | 0 | 0 | 0 |
Diluted (in shares) | 98.6 | 81.7 | 91.1 | 81.7 |
Basic: Loss from Continuing Operations (in dollars per share) | $ 0.37 | $ (0.42) | $ (1.16) | $ (0.77) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0.01 | 0 | 0.01 | 0 |
Earnings Per Share, Basic | 0.38 | (0.42) | (1.15) | (0.77) |
Diluted: Loss from Continuing Operations (in dollars per share) | 0.37 | (0.42) | (1.16) | (0.77) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0.01 | 0 | 0.01 | 0 |
Earnings Per Share, Diluted | $ 0.38 | $ (0.42) | $ (1.15) | $ (0.77) |
Earnings (Loss) Per Share Att69
Earnings (Loss) Per Share Attributable to Navistar International Corporation - Narrative (Details) $ / shares in Units, shares in Millions | Feb. 28, 2017shares | Jul. 31, 2017USD ($)$ / sharesshares | Oct. 31, 2016USD ($) | Jul. 31, 2016shares | Jul. 31, 2017USD ($)$ / sharesshares | Jul. 31, 2016shares | Apr. 30, 2017 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 14.7 | ||||||
Shares related to convertible notes | 14.6 | 15.2 | |||||
Issuance of common stock | $ | $ 256,000,000 | ||||||
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 | ||||
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 | ||||
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 | ||||||
Volkswagen Truck and Bus GmbH [Member] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 16.2 | ||||||
Issuance of common stock | $ | $ 256,000,000 | ||||||
Share Price | $ / shares | $ 15.76 | $ 15.76 | |||||
Stock Purchase Agreement, Ownership Percentage Transferred to Acquirer | 19.90% | ||||||
Stock Purchase Agreement, Ownership Percentage Transferred to Acquirer, Pro Forma | 16.60% | ||||||
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | 4.50% | ||||
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | 4.75% |
Condensed Consolidating Guara70
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Sales and revenues, net | $ 2,213 | $ 2,086 | $ 5,972 | $ 6,048 |
Costs of products sold | 1,803 | 1,757 | 4,949 | 5,068 |
Restructuring charges | (13) | 5 | (4) | 11 |
Asset impairment charges | 6 | 12 | 13 | 17 |
All other operating expenses (income) | 377 | 328 | 1,098 | 969 |
Total costs and expenses | 2,173 | 2,102 | 6,056 | 6,065 |
Equity in income of non-consolidated affiliates | 1 | 2 | 6 | 3 |
Income (loss) from continuing operations before income taxes | 41 | (14) | (78) | (14) |
Income tax expense | 0 | (14) | (10) | (25) |
Income (loss) from continuing operations | 41 | (28) | (88) | (39) |
Income from discontinued operations, net of tax | 1 | 0 | 1 | 0 |
Net income (loss) | 42 | (28) | (87) | (39) |
Less: Net income attributable to non-controlling interests | 5 | 6 | 18 | 24 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 204 | (10) | 123 | 26 |
Net income (loss) attributable to Navistar International Corporation | 37 | (34) | (105) | (63) |
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) | 36 | 18 | 92 | 75 |
Total costs and expenses | 36 | 18 | 92 | 75 |
Equity in income of non-consolidated affiliates | 73 | (16) | (13) | 12 |
Income (loss) from continuing operations before income taxes | 37 | (34) | (105) | (63) |
Income tax expense | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations | 37 | (105) | ||
Income from discontinued operations, net of tax | 0 | 0 | ||
Net income (loss) | 37 | (34) | (105) | (63) |
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 204 | (10) | 123 | 26 |
Net income (loss) attributable to Navistar International Corporation | 37 | (34) | (105) | (63) |
Guarantor Subsidiaries [Member] | ||||
Sales and revenues, net | 1,524 | 1,411 | 4,319 | 4,455 |
Costs of products sold | 1,328 | 1,276 | 3,813 | 4,028 |
Restructuring charges | 31 | (1) | 33 | 3 |
Asset impairment charges | 0 | 0 | 7 | 2 |
All other operating expenses (income) | 267 | 197 | 738 | 643 |
Total costs and expenses | 1,626 | 1,472 | 4,591 | 4,676 |
Equity in income of non-consolidated affiliates | 67 | 63 | 128 | 118 |
Income (loss) from continuing operations before income taxes | (35) | 2 | (144) | (103) |
Income tax expense | 35 | (1) | 35 | 10 |
Income (loss) from continuing operations | 0 | (109) | ||
Income from discontinued operations, net of tax | 0 | 0 | ||
Net income (loss) | 0 | 1 | (109) | (93) |
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 126 | 34 | 83 | 3 |
Net income (loss) attributable to Navistar International Corporation | 0 | 1 | (109) | (93) |
Non-Guarantor Subsidiaries [Member] | ||||
Sales and revenues, net | 1,562 | 1,432 | 3,988 | 4,055 |
Costs of products sold | 1,337 | 1,216 | 3,431 | 3,447 |
Restructuring charges | (44) | 6 | (37) | 8 |
Asset impairment charges | 6 | 12 | 6 | 15 |
All other operating expenses (income) | 88 | 131 | 307 | 305 |
Total costs and expenses | 1,387 | 1,365 | 3,707 | 3,775 |
Equity in income of non-consolidated affiliates | 0 | 1 | 3 | 0 |
Income (loss) from continuing operations before income taxes | 175 | 68 | 284 | 280 |
Income tax expense | (35) | (13) | (45) | (35) |
Income (loss) from continuing operations | 140 | 239 | ||
Income from discontinued operations, net of tax | 1 | 1 | ||
Net income (loss) | 141 | 55 | 240 | 245 |
Less: Net income attributable to non-controlling interests | 5 | 6 | 18 | 24 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 213 | 40 | 294 | 214 |
Net income (loss) attributable to Navistar International Corporation | 136 | 49 | 222 | 221 |
Consolidation, Eliminations [Member] | ||||
Sales and revenues, net | (873) | (757) | (2,335) | (2,462) |
Costs of products sold | (862) | (735) | (2,295) | (2,407) |
Restructuring charges | 0 | 0 | 0 | 0 |
Asset impairment charges | 0 | 0 | 0 | 0 |
All other operating expenses (income) | (14) | (18) | (39) | (54) |
Total costs and expenses | (876) | (753) | (2,334) | (2,461) |
Equity in income of non-consolidated affiliates | (139) | (46) | (112) | (127) |
Income (loss) from continuing operations before income taxes | (136) | (50) | (113) | (128) |
Income tax expense | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations | (136) | (113) | ||
Income from discontinued operations, net of tax | 0 | 0 | ||
Net income (loss) | (136) | (50) | (113) | (128) |
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (339) | (74) | (377) | (217) |
Net income (loss) attributable to Navistar International Corporation | $ (136) | $ (50) | $ (113) | $ (128) |
Condensed Consolidating Guara71
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Comprehsive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Apr. 30, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Net income (loss) | $ 42 | $ (28) | $ (87) | $ (39) | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||
Foreign currency translation adjustment | 42 | (10) | 34 | 7 | |
Defined benefit plans (net of tax of $0, for all entities) | (125) | (34) | (194) | (82) | |
Other Comprehensive Income (Loss), Net of Tax | 167 | 24 | $ 24 | 228 | 89 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 209 | (4) | 141 | 50 | |
Net Income (Loss) Attributable to Noncontrolling Interest | 5 | 6 | 18 | 24 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 204 | (10) | 123 | 26 | |
Parent Company [Member] | |||||
Net income (loss) | 37 | (34) | (105) | (63) | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||
Foreign currency translation adjustment | 42 | (10) | 34 | 7 | |
Defined benefit plans (net of tax of $0, for all entities) | (125) | (34) | (194) | (82) | |
Other Comprehensive Income (Loss), Net of Tax | 167 | 24 | 228 | 89 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 204 | (10) | 123 | 26 | |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 204 | (10) | 123 | 26 | |
Guarantor Subsidiaries [Member] | |||||
Net income (loss) | 0 | 1 | (109) | (93) | |
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) | (126) | (33) | (192) | (96) | |
Other Comprehensive Income (Loss), Net of Tax | 126 | 33 | 192 | 96 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 126 | 34 | 83 | 3 | |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 126 | 34 | 83 | 3 | |
Non-Guarantor Subsidiaries [Member] | |||||
Net income (loss) | 141 | 55 | 240 | 245 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||
Foreign currency translation adjustment | 42 | (10) | 34 | 7 | |
Defined benefit plans (net of tax of $0, for all entities) | (35) | (1) | (38) | 14 | |
Other Comprehensive Income (Loss), Net of Tax | 77 | (9) | 72 | (7) | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 218 | 46 | 312 | 238 | |
Net Income (Loss) Attributable to Noncontrolling Interest | 5 | 6 | 18 | 24 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 213 | 40 | 294 | 214 | |
Consolidation, Eliminations [Member] | |||||
Net income (loss) | (136) | (50) | (113) | (128) | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||
Foreign currency translation adjustment | (42) | 10 | (34) | (7) | |
Defined benefit plans (net of tax of $0, for all entities) | 161 | 34 | 230 | 82 | |
Other Comprehensive Income (Loss), Net of Tax | (203) | (24) | (264) | (89) | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (339) | (74) | (377) | (217) | |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (339) | $ (74) | $ (377) | $ (217) |
Condensed Consolidating Guara72
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Balance Sheet (Details) - USD ($) $ in Millions | Jul. 31, 2017 | Apr. 30, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Oct. 31, 2015 |
Cash and cash equivalents | $ 911 | $ 804 | $ 547 | $ 912 | |
Marketable securities | 62 | 46 | |||
Restricted cash | 137 | 112 | |||
Finance and other receivables, net | 2,117 | 1,969 | |||
Inventories, net | 979 | 944 | |||
Investments in non-consolidated affiliates | 55 | 53 | |||
Property and equipment, net | 1,333 | 1,241 | |||
Goodwill | 38 | 38 | |||
Deferred taxes, net | 141 | 161 | |||
Other | 307 | 285 | |||
Total assets | 6,080 | 5,653 | |||
Debt | 5,220 | 4,904 | |||
Postretirement benefits liabilities | 2,824 | 3,098 | |||
Amounts due to (from) affiliates | 0 | 0 | |||
Other liabilities | 2,959 | 2,944 | |||
Total liabilities | 11,003 | 10,946 | |||
Stockholders’ equity attributable to non-controlling interests | 2 | 5 | |||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (4,925) | (5,298) | |||
Total liabilities and stockholders’ deficit | 6,080 | 5,653 | |||
Non-Guarantor Subsidiaries [Member] | |||||
Cash and cash equivalents | 236 | 252 | |||
Marketable securities | 18 | 19 | |||
Restricted cash | 116 | 90 | |||
Finance and other receivables, net | 1,997 | 1,883 | |||
Inventories, net | 399 | 313 | |||
Investments in non-consolidated affiliates | 52 | 57 | |||
Property and equipment, net | 544 | 580 | |||
Goodwill | 38 | 38 | |||
Deferred taxes, net | 132 | 150 | |||
Other | 178 | 175 | |||
Total assets | 3,710 | 3,557 | |||
Debt | 1,801 | 1,841 | |||
Postretirement benefits liabilities | 134 | 233 | |||
Amounts due to (from) affiliates | (3,261) | (3,040) | |||
Other liabilities | (677) | (665) | |||
Total liabilities | (2,003) | (1,631) | |||
Stockholders’ equity attributable to non-controlling interests | 2 | 5 | |||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | 5,711 | 5,183 | |||
Total liabilities and stockholders’ deficit | 3,710 | 3,557 | |||
Parent Company [Member] | |||||
Cash and cash equivalents | 652 | 435 | |||
Marketable securities | 44 | 27 | |||
Restricted cash | 16 | 16 | |||
Finance and other receivables, net | 8 | (1) | |||
Inventories, net | 0 | 0 | |||
Investments in non-consolidated affiliates | (7,215) | (7,714) | |||
Property and equipment, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Deferred taxes, net | 0 | 0 | |||
Other | 3 | 2 | |||
Total assets | (6,492) | (7,235) | |||
Debt | 2,227 | 1,965 | |||
Postretirement benefits liabilities | 0 | 0 | |||
Amounts due to (from) affiliates | (7,738) | (7,724) | |||
Other liabilities | 3,944 | 3,822 | |||
Total liabilities | (1,567) | (1,937) | |||
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | |||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (4,925) | (5,298) | |||
Total liabilities and stockholders’ deficit | (6,492) | (7,235) | |||
Guarantor Subsidiaries [Member] | |||||
Cash and cash equivalents | 23 | 117 | |||
Marketable securities | 0 | 0 | |||
Restricted cash | 5 | 6 | |||
Finance and other receivables, net | 202 | 171 | |||
Inventories, net | 585 | 639 | |||
Investments in non-consolidated affiliates | 6,372 | 6,253 | |||
Property and equipment, net | 796 | 669 | |||
Goodwill | 0 | 0 | |||
Deferred taxes, net | 10 | 10 | |||
Other | 127 | 110 | |||
Total assets | 8,120 | 7,975 | |||
Debt | 1,192 | 1,100 | |||
Postretirement benefits liabilities | 2,690 | 2,865 | |||
Amounts due to (from) affiliates | 10,947 | 10,709 | |||
Other liabilities | (244) | (152) | |||
Total liabilities | 14,585 | 14,522 | |||
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | |||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (6,465) | (6,547) | |||
Total liabilities and stockholders’ deficit | 8,120 | 7,975 | |||
Consolidation, Eliminations [Member] | |||||
Cash and cash equivalents | 0 | 0 | |||
Marketable securities | 0 | 0 | |||
Restricted cash | 0 | 0 | |||
Finance and other receivables, net | (90) | (84) | |||
Inventories, net | (5) | (8) | |||
Investments in non-consolidated affiliates | 846 | 1,457 | |||
Property and equipment, net | (7) | (8) | |||
Goodwill | 0 | 0 | |||
Deferred taxes, net | (1) | 1 | |||
Other | (1) | (2) | |||
Total assets | 742 | 1,356 | |||
Debt | 0 | (2) | |||
Postretirement benefits liabilities | 0 | 0 | |||
Amounts due to (from) affiliates | 52 | 55 | |||
Other liabilities | (64) | (61) | |||
Total liabilities | (12) | (8) | |||
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | |||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | 754 | 1,364 | |||
Total liabilities and stockholders’ deficit | $ 742 | $ 1,356 | |||
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 Guara73
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Net cash provided by (used in) operating activities | $ (168) | $ (14) |
Net change in restricted cash and cash equivalents | (25) | (64) |
Net sales (purchases) of marketable securities | (16) | 19 |
Capital expenditures and purchase of equipment leased to others | (189) | (177) |
Other investing activities | 36 | 55 |
Net Cash Provided by (Used in) Investing Activities | (194) | (167) |
Net borrowings (repayments) of debt | 194 | (207) |
Proceeds from Issuance of Common Stock, Net of Issuance Costs | 245 | |
Other financing activities | 29 | (10) |
Net cash provided by (used in) financing activities | 468 | (217) |
Effect of exchange rate changes on cash and cash equivalents | 1 | 33 |
Increase (decrease) in cash and cash equivalents | 107 | (365) |
Cash and cash equivalents at beginning of the period | 804 | 912 |
Cash and cash equivalents at end of the period | 911 | 547 |
Parent Company [Member] | ||
Net cash provided by (used in) operating activities | (307) | (372) |
Net change in restricted cash and cash equivalents | 0 | 0 |
Net sales (purchases) of marketable securities | (16) | 113 |
Capital expenditures and purchase of equipment leased to others | 0 | 0 |
Other investing activities | (250) | 0 |
Net Cash Provided by (Used in) Investing Activities | (266) | 113 |
Net borrowings (repayments) of debt | 542 | 0 |
Proceeds from Issuance of Common Stock, Net of Issuance Costs | 245 | |
Other financing activities | 3 | 0 |
Net cash provided by (used in) financing activities | 790 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 217 | (259) |
Cash and cash equivalents at beginning of the period | 435 | 456 |
Cash and cash equivalents at end of the period | 652 | 197 |
Guarantor Subsidiaries [Member] | ||
Net cash provided by (used in) operating activities | (401) | (225) |
Net change in restricted cash and cash equivalents | 2 | 4 |
Net sales (purchases) of marketable securities | 0 | 0 |
Capital expenditures and purchase of equipment leased to others | (132) | (56) |
Other investing activities | 6 | 0 |
Net Cash Provided by (Used in) Investing Activities | (124) | (52) |
Net borrowings (repayments) of debt | 384 | 263 |
Proceeds from Issuance of Common Stock, Net of Issuance Costs | 0 | |
Other financing activities | 47 | 18 |
Net cash provided by (used in) financing activities | 431 | 281 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | (94) | 4 |
Cash and cash equivalents at beginning of the period | 117 | 81 |
Cash and cash equivalents at end of the period | 23 | 85 |
Non-Guarantor Subsidiaries [Member] | ||
Net cash provided by (used in) operating activities | (126) | 344 |
Net change in restricted cash and cash equivalents | (27) | (68) |
Net sales (purchases) of marketable securities | 0 | (94) |
Capital expenditures and purchase of equipment leased to others | (57) | (121) |
Other investing activities | 30 | 55 |
Net Cash Provided by (Used in) Investing Activities | (54) | (228) |
Net borrowings (repayments) of debt | (58) | (151) |
Proceeds from Issuance of Common Stock, Net of Issuance Costs | 250 | |
Other financing activities | (29) | (108) |
Net cash provided by (used in) financing activities | 163 | (259) |
Effect of exchange rate changes on cash and cash equivalents | 1 | 33 |
Increase (decrease) in cash and cash equivalents | (16) | (110) |
Cash and cash equivalents at beginning of the period | 252 | 375 |
Cash and cash equivalents at end of the period | 236 | 265 |
Consolidation, Eliminations [Member] | ||
Net cash provided by (used in) operating activities | 666 | 239 |
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 | 250 | 0 |
Net Cash Provided by (Used in) Investing Activities | 250 | 0 |
Net borrowings (repayments) of debt | (674) | (319) |
Proceeds from Issuance of Common Stock, Net of Issuance Costs | (250) | |
Other financing activities | 8 | 80 |
Net cash provided by (used in) financing activities | (916) | (239) |
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) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Feb. 28, 2017 | Jul. 31, 2017 |
Subsequent Event [Line Items] | ||
Issuance of common stock | $ 256 | |
Volkswagen Truck and Bus GmbH [Member] | ||
Subsequent Event [Line Items] | ||
Stock Purchase Agreement, Ownership Percentage Transferred to Acquirer | 19.90% | |
Stock Issued During Period, Shares, New Issues | 16.2 | |
Issuance of common stock | $ 256 | |
Share Price | $ 15.76 | |
Stock Purchase Agreement, Ownership Percentage Transferred to Acquirer, Pro Forma | 16.60% |