Document_and_Entity_Informatio
Document and Entity Information Document | 6 Months Ended | |
Apr. 30, 2014 | 31-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Apr-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'nav | ' |
Entity Registrant Name | 'NAVISTAR INTERNATIONAL CORP | ' |
Entity Central Index Key | '0000808450 | ' |
Current Fiscal Year End Date | '--10-31 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 81,328,555 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Sales and revenues | ' | ' | ' | ' |
Sales of manufactured products, net | $2,708 | $2,487 | $4,877 | $5,085 |
Finance revenues | 38 | 39 | 77 | 78 |
Sales and revenues, net | 2,746 | 2,526 | 4,954 | 5,163 |
Costs and expenses | ' | ' | ' | ' |
Costs of products sold | 2,468 | 2,363 | 4,482 | 4,649 |
Restructuring charges | 8 | 6 | 11 | 8 |
Asset impairment charges | 151 | 0 | 169 | 0 |
Selling, general and administrative expenses | 237 | 312 | 476 | 597 |
Engineering and product development costs | 83 | 100 | 173 | 211 |
Interest expense | 74 | 90 | 156 | 164 |
Other expense (income), net | -8 | -19 | 6 | -57 |
Total costs and expenses | 3,013 | 2,852 | 5,473 | 5,572 |
Equity in income of non-consolidated affiliates | 3 | 4 | 3 | 3 |
Loss from continuing operations before income taxes | -264 | -322 | -516 | -406 |
Income tax expense | -23 | -22 | -11 | -37 |
Loss from continuing operations | -287 | -344 | -527 | -443 |
Income (loss) from discontinued operations, net of tax | 1 | -21 | 2 | -30 |
Net loss | -286 | -365 | -525 | -473 |
Less: Net income attributable to non-controlling interests | 11 | 9 | 20 | 24 |
Loss from continuing operations, net of tax | -298 | -353 | -547 | -467 |
Income (loss) from discontinued operations, net of tax | 1 | -21 | 2 | -30 |
Net loss | ($297) | ($374) | ($545) | ($497) |
Earnings (loss) per share attributable to Navistar International Corporation: | ' | ' | ' | ' |
Basic: Loss from Continuing Operations (in dollars per share) | ($3.66) | ($4.39) | ($6.73) | ($5.82) |
Basic: Income (Loss) from Discontinued Operations (in dollars per share) | $0.01 | ($0.26) | $0.03 | ($0.37) |
Basic (in dollars per share) | ($3.65) | ($4.65) | ($6.70) | ($6.19) |
Diluted: Loss from Continuing Operations (in dollars per share) | ($3.66) | ($4.39) | ($6.73) | ($5.82) |
Diluted: Income (Loss) from Discontinued Operations (in dollars per share) | $0.01 | ($0.26) | $0.03 | ($0.37) |
Diluted (in dollars per share) | ($3.65) | ($4.65) | ($6.70) | ($6.19) |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 81.4 | 80.4 | 81.3 | 80.3 |
Diluted (in shares) | 81.4 | 80.4 | 81.3 | 80.3 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net loss attributable to Navistar International Corporation | ($297) | ($374) | ($545) | ($497) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | 48 | 3 | -14 | 20 |
Defined benefit plans (net of tax of $0, $1, $(1), and $1 respectively) | 25 | 40 | 50 | 78 |
Total other comprehensive income | 73 | 43 | 36 | 98 |
Total comprehensive loss attributable to Navistar International Corporation | ($224) | ($331) | ($509) | ($399) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Loss (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Defined benefit plan, tax | $0 | $1 | ($1) | $1 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $594 | $755 |
Marketable securities | 534 | 830 |
Trade and other receivables, net | 630 | 737 |
Finance receivables, net | 1,713 | 1,597 |
Inventories | 1,384 | 1,210 |
Deferred taxes, net | 39 | 72 |
Other current assets | 228 | 258 |
Total current assets | 5,122 | 5,459 |
Restricted cash | 112 | 91 |
Trade and other receivables, net | 28 | 29 |
Finance receivables, net | 311 | 338 |
Investments in non-consolidated affiliates | 69 | 77 |
Property and equipment (net of accumulated depreciation and amortization of $2,494 and $2,440, respectively) | 1,693 | 1,741 |
Goodwill | 38 | 184 |
Intangible assets (net of accumulated amortization of $102 and $97, respectively) | 104 | 138 |
Deferred taxes, net | 153 | 159 |
Other noncurrent assets | 97 | 99 |
Total assets | 7,727 | 8,315 |
Current liabilities | ' | ' |
Notes payable and current maturities of long-term debt | 956 | 1,163 |
Accounts payable | 1,569 | 1,502 |
Other current liabilities | 1,527 | 1,596 |
Total current liabilities | 4,052 | 4,261 |
Long-term debt | 4,144 | 3,922 |
Postretirement benefits liabilities | 2,496 | 2,564 |
Deferred taxes, net | 14 | 33 |
Other noncurrent liabilities | 1,093 | 1,136 |
Total liabilities | 11,799 | 11,916 |
Redeemable equity securities | 2 | 4 |
Stockholders’ deficit | ' | ' |
Series D convertible junior preference stock | 3 | 3 |
Common stock (86.8 shares issued, $0.10 par value per share and 220 shares authorized, all at both dates) | 9 | 9 |
Additional paid-in capital | 2,502 | 2,477 |
Accumulated deficit | -4,608 | -4,063 |
Accumulated other comprehensive loss | -1,788 | -1,824 |
Common stock held in treasury, at cost (5.5 and 6.3 shares, respectively) | -226 | -251 |
Total stockholders’ deficit attributable to Navistar International Corporation | -4,108 | -3,649 |
Stockholders’ equity attributable to non-controlling interests | 34 | 44 |
Total stockholders’ deficit | -4,074 | -3,605 |
Total liabilities and stockholders’ deficit | $7,727 | $8,315 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.10 | $0.10 |
Common stock, shares authorized | 220 | 220 |
Common stock, shares issued | 86.8 | 86.8 |
Common stock held in treasury, shares | 5.5 | 6.3 |
Property and Equipment, accumulated depreciation and amortization | $2,494 | $2,440 |
Property and Equipment, accumulated amortization | $102 | $97 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | ||
Cash flows from operating activities | ' | ' | ||
Net loss | ($525) | ($473) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ||
Depreciation and amortization | 122 | 164 | ||
Depreciation of equipment leased to others | 63 | 78 | ||
Deferred taxes, including change in valuation allowance | -2 | 20 | ||
Asset impairment charges | 169 | 8 | ||
Gain on sales of investments and businesses, net | 0 | -13 | ||
Amortization of debt issuance costs and discount | 27 | 31 | ||
Stock-based compensation | 12 | 14 | ||
Provision for doubtful accounts, net of recoveries | 9 | 13 | ||
Equity in income of non-consolidated affiliates, net of dividends | 7 | 8 | ||
Write-off of debt issuance cost and discount | 1 | 6 | ||
Other non-cash operating activities | -15 | -54 | ||
Changes in other assets and liabilities, exclusive of the effects of businesses disposed | -194 | 155 | ||
Net cash used in operating activities | -326 | -43 | ||
Cash flows from investing activities | ' | ' | ||
Purchases of marketable securities | -788 | -759 | ||
Sales of marketable securities | 902 | 358 | ||
Maturities of marketable securities | 182 | 134 | ||
Net change in restricted cash and cash equivalents | -21 | 44 | ||
Capital expenditures | -50 | [1] | -107 | [1] |
Purchases of equipment leased to others | -108 | -295 | ||
Proceeds from sales of property and equipment | 20 | 19 | ||
Proceeds from sales of affiliates | 5 | 30 | ||
Net cash provided by (used in) investing activities | 142 | -576 | ||
Cash flows from financing activities | ' | ' | ||
Proceeds from issuance of securitized debt | 152 | 200 | ||
Principal payments on securitized debt | -81 | -402 | ||
Proceeds from issuance of non-securitized debt | 473 | 339 | ||
Principal payments on non-securitized debt | -509 | -374 | ||
Net increase in notes and debt outstanding under revolving credit facilities | 3 | 80 | ||
Principal payments under financing arrangements and capital lease obligations | -14 | -51 | ||
Debt issuance costs | -13 | -14 | ||
Proceeds from financed lease obligations | 34 | 263 | ||
Issuance of common stock | 0 | 14 | ||
Proceeds from exercise of stock options | 18 | 8 | ||
Dividends paid by subsidiaries to non-controlling interest | -30 | -25 | ||
Other financing activities | 0 | 4 | ||
Net cash provided by financing activities | 33 | 42 | ||
Effect of exchange rate changes on cash and cash equivalents | -10 | -5 | ||
Decrease in cash and cash equivalents | -161 | -582 | ||
Cash and cash equivalents at beginning of the period | 755 | 1,087 | ||
Cash and cash equivalents at end of the period | $594 | $505 | ||
[1] | Exclusive of purchases of equipment leased to others. |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (Deficit) (USD $) | Total | Preferred Stock [Member] | Common Stock | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
In Millions | ||||||||
Stockholders' Equity balance at beginning of period at Oct. 31, 2012 | ($3,265) | $3 | $9 | $2,440 | ($3,165) | ($2,325) | ($272) | $45 |
Net loss attributable to Navistar International Corporation | -497 | ' | ' | ' | -497 | ' | ' | ' |
Net income (loss) | -473 | ' | ' | ' | ' | ' | ' | 24 |
Total other comprehensive income | 98 | ' | ' | ' | ' | 98 | ' | ' |
Transfer from redeemable equity securities upon exercise or expiration of stock options | 1 | ' | ' | 1 | ' | ' | ' | ' |
Stock-based compensation | 9 | ' | ' | 9 | ' | ' | ' | ' |
Stock ownership programs | 7 | ' | ' | -9 | ' | ' | 16 | ' |
Dividends paid by subsidiaries to non-controlling interest | -25 | ' | ' | ' | ' | ' | ' | -25 |
Issuance of common stock, net of issuance cost and fees | 14 | ' | ' | 14 | ' | ' | ' | ' |
Deconsolidation of a non-controlling interest | -9 | ' | ' | ' | ' | ' | ' | -9 |
Other | 1 | ' | ' | 1 | ' | ' | ' | ' |
Stockholders' Equity balance at end of period at Apr. 30, 2013 | -3,642 | 3 | 9 | 2,456 | -3,662 | -2,227 | -256 | 35 |
Stockholders' Equity balance at beginning of period at Oct. 31, 2013 | -3,605 | 3 | 9 | 2,477 | -4,063 | -1,824 | -251 | 44 |
Net loss attributable to Navistar International Corporation | -545 | ' | ' | ' | -545 | ' | ' | ' |
Net income (loss) | -525 | ' | ' | ' | ' | ' | ' | 20 |
Total other comprehensive income | 36 | ' | ' | ' | ' | 36 | ' | ' |
Transfer from redeemable equity securities upon exercise or expiration of stock options | 2 | ' | ' | 2 | ' | ' | ' | ' |
Stock-based compensation | 9 | ' | ' | 9 | ' | ' | ' | ' |
Stock ownership programs | 17 | ' | ' | -8 | ' | ' | 25 | ' |
Equity component of convertible debt instruments, net of tax expense of $16 | 27 | ' | ' | 27 | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Tax | -16 | ' | ' | ' | ' | ' | ' | ' |
Equity component of repurchased convertible debt instruments, net of tax benefit of $3 | -5 | ' | ' | -5 | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Repurchase, Tax | 3 | ' | ' | ' | ' | ' | ' | ' |
Dividends paid by subsidiaries to non-controlling interest | -30 | ' | ' | ' | ' | ' | ' | -30 |
Stockholders' Equity balance at end of period at Apr. 30, 2014 | ($4,074) | $3 | $9 | $2,502 | ($4,608) | ($1,788) | ($226) | $34 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Summary of Significant Accounting Policies | ' | |||||||
Summary of Significant Accounting Policies | ||||||||
Organization and Description of the Business | ||||||||
Navistar International Corporation ("NIC"), incorporated under the laws of the State of Delaware in 1993, is a holding company whose principal operating entities are Navistar, Inc. and Navistar Financial Corporation ("NFC"). References herein to the "Company," "we," "our," or "us" refer collectively to NIC and its consolidated subsidiaries, including certain variable interest entities ("VIEs") of which we are the primary beneficiary. | ||||||||
Our fiscal year ends October 31. As such, all references to 2014 and 2013 contained within this Quarterly Report on Form 10-Q relate to our fiscal year, unless otherwise indicated. | ||||||||
We operate in four principal industry segments: North America Truck, North America 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 13, Segment Reporting. | ||||||||
Basis of Presentation and Consolidation | ||||||||
The accompanying unaudited consolidated financial statements include the assets, liabilities, and results of operations of our Manufacturing operations, which include majority-owned dealers ("Dealcors"), and our Financial Services operations, including VIEs of which we are the primary beneficiary. The effects of transactions among consolidated entities have been eliminated to arrive at the consolidated amounts. | ||||||||
Certain reclassifications were made to prior periods' amounts to conform to the 2014 presentation, which relates to the realignment of our reporting segments that became effective during the fourth quarter of 2013. | ||||||||
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, 2013, 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 the VIE's economic performance and have the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Accordingly, we include in our consolidated financial statements the assets and liabilities and results of operations of those entities, even though we may not own a majority voting interest. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather they represent claims against the specific assets of these VIEs. Assets of these entities are not readily available to satisfy claims against our general assets. | ||||||||
We are the primary beneficiary of our Blue Diamond Parts ("BDP") and Blue Diamond Truck ("BDT") joint ventures with Ford. As a result, our Consolidated Balance Sheets include assets of $298 million and $323 million and liabilities of $225 million and $188 million as of April 30, 2014 and October 31, 2013, respectively, from BDP and BDT, including $79 million and $56 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 and BDT do not have recourse to our general credit. In December 2011, Ford notified the Company of its intention to dissolve the BDT joint venture effective December 2014. In September 2013, we agreed with Ford to extend the BDT joint venture through February 2015. We do not expect the dissolution of the BDT joint venture to have a material impact on our consolidated financial statements. | ||||||||
Our Financial Services segment consolidates several VIEs. As a result, our Consolidated Balance Sheets include assets of $1.1 billion and $989 million as of April 30, 2014 and October 31, 2013, respectively, and liabilities of $844 million and $778 million as of April 30, 2014 and October 31, 2013, respectively, all of which are involved in securitizations that are treated as asset-backed debt. In addition, our Consolidated Balance Sheets include assets of $66 million and $61 million and corresponding liabilities of $51 million and $49 million as of April 30, 2014 and October 31, 2013, respectively, which are related to other secured transactions that do not qualify for sale accounting treatment, and therefore, are treated as borrowings secured by operating and finance leases. Investors that hold securitization debt have a priority claim on the cash flows generated by their respective securitized assets to the extent that the related trusts 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 loss (income) of non-consolidated affiliates includes our share of the net income (loss) of these entities. | ||||||||
Product Warranty Liability | ||||||||
The following table presents accrued product warranty and deferred warranty revenue activity: | ||||||||
Six Months Ended April 30, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Balance at beginning of period | $ | 1,349 | $ | 1,118 | ||||
Costs accrued and revenues deferred | 153 | 226 | ||||||
Currency translation adjustment | (1 | ) | — | |||||
Adjustments to pre-existing warranties(A)(B) | 94 | 204 | ||||||
Payments and revenues recognized | (272 | ) | (327 | ) | ||||
Balance at end of period | 1,323 | 1,221 | ||||||
Less: Current portion | 626 | 647 | ||||||
Noncurrent accrued product warranty and deferred warranty revenue | $ | 697 | $ | 574 | ||||
_________________________ | ||||||||
(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 first quarter of 2014, we recorded adjustments for changes in estimates of $52 million or $0.64 per diluted share. In the second quarter of 2014, we recorded adjustments for changes in estimates of $42 million, or $0.52 per diluted share. The impact of income taxes on the 2014 adjustments is not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. | ||||||||
In the first quarter of 2013, we recorded adjustments for changes in estimates of $40 million or $0.50 per diluted share. In the second quarter of 2013, we recorded adjustments for changes in estimates of $164 million, or $2.04 per diluted share. The impact of income taxes on the 2013 adjustments is not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. | ||||||||
(B) | In the first quarter of 2013, we recognized $13 million of charges for adjustments to pre-existing warranties for a specific warranty issue related to component parts from a supplier. Also during the first quarter of 2013, we reached an agreement for reimbursement from this supplier for this amount and other costs previously accrued. As a result of this agreement, we recognized a recovery of $27 million within Costs of products sold and recorded a receivable within Other current assets. In the second quarter of 2013, we recognized a warranty recovery of $13 million within Loss from discontinued operations, net of tax and recorded a receivable within Other current assets. | |||||||
Extended Warranty Programs | ||||||||
The amount of deferred revenue related to extended warranty programs was $437 million and $420 million at April 30, 2014 and October 31, 2013, respectively. Revenue recognized under our extended warranty programs was $33 million and $60 million in the three and six months ended April 30, 2014, respectively, and $11 million and $40 million for the three and six months ended April 30, 2013, respectively. In the second quarter of 2014 and 2013, the North America Truck segment recognized charges of $34 million and $33 million, respectively, related to the extended warranty contracts on our 2010 emission standard MaxxForce Big-Bore engines. The majority of these changes are included in the adjustments to pre-existing warranties. | ||||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, pension and other postretirement benefits, allowance for doubtful accounts, income tax contingency accruals and valuation allowances, product warranty accruals, asbestos and other product liability accruals, asset impairment charges, and litigation-related accruals. Actual results could differ from our estimates. | ||||||||
Concentration Risks | ||||||||
Our financial condition, results of operations, and cash flows are subject to concentration risks related to concentrations of our union employees. As of April 30, 2014, approximately 5,700, or 65%, of our hourly workers and approximately 300, or 4%, of our salaried workers are represented by labor unions and are covered by collective bargaining agreements. Our current master collective bargaining agreement with the UAW will expire in October 2014. Our future operations may be affected by changes in governmental procurement policies, budget considerations, changing national defense requirements, and global, political, regulatory and economic developments in the U.S. and certain foreign countries (primarily Canada, Mexico, and Brazil). | ||||||||
Goodwill and Indefinite-Lived Intangible Assets | ||||||||
Goodwill represents the excess of the cost of an acquired business over the amounts assigned to the net assets. Goodwill is not amortized but is tested for impairment at a reporting unit level on an annual basis or more frequently, if circumstances change or an event occurs that would more likely than not reduce the fair value of a reporting unit below its carrying amount. | ||||||||
Qualitative factors may be assessed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the qualitative assessment indicates that the carrying amount is more likely than not higher than the fair value, goodwill is tested for impairment based on a two-step test. The first step compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired, thus the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test shall be performed to measure the amount of impairment loss, if any. The second step compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. | ||||||||
Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions, and selecting an appropriate control premium. The income approach is based on discounted cash flows which are derived from internal forecasts and economic expectations for each respective reporting unit. | ||||||||
An intangible asset determined to have an indefinite useful life is not amortized until its useful life is determined to no longer be indefinite. Indefinite-lived intangible assets are evaluated each reporting period to determine whether events and circumstances continue to support an indefinite useful life. Indefinite-lived intangible assets are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test consists of a comparison of the fair value of the indefinite-lived intangible asset with its carrying amount. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. | ||||||||
Significant judgment is applied when evaluating if an intangible asset has a finite useful life. In addition, for indefinite-lived intangible assets, significant judgment is applied in testing for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, and incorporating general economic and market conditions. | ||||||||
During the second quarter of 2014, the economic downturn in Brazil resulted in the continued decline in actual and forecasted results for the Brazilian engine reporting unit with goodwill of $142 million and an indefinite-lived intangible asset, trademark, of $43 million. As a result, we performed an impairment analysis in the second quarter utilizing the income approach, based on discounted cash flows, which are derived from internal forecasts and economic expectations. It was determined that the carrying value of the Brazilian engine reporting unit, including goodwill, exceeded its fair value. As a result we compared the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. A decrease in the enterprise value of the reporting unit coupled with appreciation in the value of certain tangible assets, which are not recognized for accounting purposes, resulted in the determination that the entire $142 million of goodwill was impaired. In addition, we determined that the related trademark was impaired and recognized an impairment charge of $7 million. The non-cash impairment charges were included in Asset impairment charges in the Company's Consolidated Statements of Operations. The Brazilian engine reporting unit is included in the Global Operations segment. | ||||||||
Recently Adopted Accounting Standards | ||||||||
In the six months ended April 30, 2014, the Company has not adopted any new accounting guidance that has had a material impact on our consolidated financial statements. | ||||||||
Recently Issued Accounting Standards | ||||||||
In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. Our effective date is November 1, 2017. We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements. |
Discontinued_Operations
Discontinued Operations | 6 Months Ended | |||||||||||||||
Apr. 30, 2014 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||
Discontinued Operations and Other Divestitures | ' | |||||||||||||||
Discontinued Operations and Other Divestitures | ||||||||||||||||
The Company is currently evaluating its portfolio of assets to validate their strategic and financial fit. To allow us to increase our focus on our North American core business, we are evaluating product lines, businesses, and engineering programs that fall outside of our core business. We are using Return on Invested Capital ("ROIC") methodology, combined with an assessment of the strategic fit to our core business, to identify areas that are under-performing. For those areas under-performing, we are evaluating whether to fix, divest, or close, and expect to realize incremental benefits from these actions in the near future. | ||||||||||||||||
Discontinued Operations | ||||||||||||||||
In the first quarter of 2013, the Company completed the idling of the Workhorse Custom Chassis ("WCC") operations, and in the second quarter of 2013, we completed the divestiture of the WCC business for an immaterial amount. The operating results of the WCC operations are reported as discontinued operations in the Consolidated Statements of Operations for all periods presented. | ||||||||||||||||
Also in the first quarter of 2013, certain operations of the Monaco recreational vehicle ("RV") business ("Monaco") were determined to be held-for-sale. In May 2013, we divested substantially all of our interest in these operations of Monaco. The operating results of these operations of Monaco are reported as discontinued operations in the Consolidated Statements of Operations for all periods presented. The cash consideration from the divestiture was $19 million. As a result of the divestiture, we impaired certain assets and recognized a loss totaling $24 million. | ||||||||||||||||
WCC and Monaco were not material to the Company's Consolidated Balance Sheets or Condensed Consolidated Statements of Cash Flows and have not been reclassified in the respective financial statements. | ||||||||||||||||
The following table summarizes the discontinued operations activity in the Company's Consolidated Statements of Operations: | ||||||||||||||||
Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Sales and revenues, net | $ | — | $ | 36 | $ | — | $ | 70 | ||||||||
Income (loss) before income taxes | $ | 1 | $ | (21 | ) | $ | 2 | $ | (30 | ) | ||||||
Income tax benefit (expense) | — | — | — | — | ||||||||||||
Income (loss) from discontinued operations, net of tax | $ | 1 | $ | (21 | ) | $ | 2 | $ | (30 | ) | ||||||
We generally use a centralized approach to cash management, financing of our Manufacturing operations, and general corporate related functions, and, accordingly, do not allocate debt, interest expense, or corporate overhead to our discontinued businesses. Any debt and related interest expense of a specific entity within a business is recorded by the respective entity. | ||||||||||||||||
Other Divestitures | ||||||||||||||||
Mahindra Joint Ventures | ||||||||||||||||
In 2006 and 2008, we formed two joint ventures with Mahindra & Mahindra Ltd. ("Mahindra") in India, which operated under the names of Mahindra Navistar Automotives Ltd. ("MNAL") and Mahindra-Navistar Engines Private Ltd. ("MNEPL") (collectively, the "Mahindra Joint Ventures"). In February 2013, the Company sold its stake in the Mahindra Joint Ventures to Mahindra for $33 million. As a result of the divestiture, the Global Operations segment recognized a gain of $26 million in 2013. As part of the transaction, the Company entered into licensing and service agreements with Mahindra. | ||||||||||||||||
E-Z Pack | ||||||||||||||||
In the second quarter of 2014, the Company sold the E-Z Pack business, which related to the production of truck refuse bodies. E-Z Pack was not material to the Company's Consolidated Statements of Operations, Consolidated Balance Sheets, or Condensed Consolidated Statements of Cash Flows and therefore, its operations have not been reclassified as discontinued operations in the respective financial statements. |
Restructuring_and_Impairments
Restructuring and Impairments | 6 Months Ended | |||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
Restructurings and Impairments | ' | |||||||||||||||||||
Restructurings and Impairments | ||||||||||||||||||||
Restructuring charges are recorded 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. In the three and six months ended April 30, 2014, the Company recognized Restructuring charges of $8 million and $11 million, respectively, compared to $6 million and $8 million in the three and six months ended April 30, 2013. | ||||||||||||||||||||
In the three and six months ended April 30, 2014, the Company recognized Asset impairment charges of $151 million and $169 million, respectively. There were no asset impairment charges in the comparable periods of 2013. | ||||||||||||||||||||
The following table reconciles our impairment charges in our Consolidated Statements of Operations: | ||||||||||||||||||||
(in millions) | Three Months Ended April 30, 2014 | Six Months Ended April 30, 2014 | ||||||||||||||||||
Goodwill impairment charge | $ | 142 | $ | 142 | ||||||||||||||||
Intangible asset impairment charge | 7 | 7 | ||||||||||||||||||
Other asset impairment charges | 2 | 20 | ||||||||||||||||||
Total asset impairment charges | $ | 151 | $ | 169 | ||||||||||||||||
In the second quarter of 2014, we recognized a non-cash charge of $149 million for the impairment of certain intangible assets of our Brazilian engine reporting unit. As a result of the economic downturn in Brazil causing declines in actual and forecasted results, we tested the goodwill and indefinite-lived intangible asset of our Brazilian engine reporting unit for potential impairment. As a result, we determined that the entire $142 million balance of goodwill and $7 million of trademarks were impaired. For more information, see Note 1, Summary of Significant Accounting Policies. | ||||||||||||||||||||
In the first quarter of 2014, the Company concluded it had a triggering event related to potential sales of assets requiring assessment of impairment for certain intangible and long-lived assets in the North America Truck segment. As a result, certain amortizing intangible assets and long-lived assets were determined to be fully impaired, resulting in an impairment charge of $19 million that was recognized in the six months ended April 30, 2014 in Asset impairment charges in the Company's Consolidated Statements of Operations. | ||||||||||||||||||||
Cost-Reductions and Other Strategic Initiatives | ||||||||||||||||||||
From time to time, we announced actions to control spending across the Company with targeted reductions of certain costs. We are focused on continued reductions in discretionary spending, including but not limited to reductions resulting from efficiencies, and prioritizing or eliminating certain programs or projects. | ||||||||||||||||||||
We continue to focus on improving our core North America Truck and Parts businesses. We continue to evaluate our portfolio of assets, with the purpose of closing or divesting non-core/non-strategic businesses, and identifying opportunities to restructure our business and rationalize our Manufacturing operations in an effort to optimize our cost structure. The Company is currently evaluating its portfolio of assets to validate their strategic and financial fit. To allow us to increase our focus on our North America core businesses, we are evaluating product lines, businesses, and engineering programs that fall outside of our core businesses. We are using ROIC, combined with an assessment of the strategic fit to our core businesses, to identify areas that are not performing to our expectations. For those areas, we are evaluating whether to fix, divest, or close. These actions could result in additional restructuring and other related charges in the future, including but not limited to; (i) impairments, (ii) costs for employee and contractor termination and other related benefits, and (iii) charges for pension and other postretirement contractual benefits and pension curtailments. These charges could be significant. | ||||||||||||||||||||
As a result of our ongoing evaluation of our portfolio of assets to validate their strategic and financial fit, which led to the discontinuation of certain engineering programs related to products that were determined to be outside of our core operations or not performing to our expectations, the North America Truck segment recognized certain charges, which included (i) accelerated depreciation of certain assets of $13 million in the first quarter of 2013, which impacted Cost of products sold in the Company's Consolidated Statements of Operations, and (ii) asset impairments of $17 million in the third quarter of 2013. | ||||||||||||||||||||
Voluntary separation program and reduction-in-force actions | ||||||||||||||||||||
In the fourth quarter of 2012, the Company offered the majority of our U.S.-based non-represented salaried employees the opportunity to apply for a voluntary separation program ("VSP"). Along with the employees who chose to participate in the VSP, we used attrition and an involuntary reduction-in-force to eliminate additional positions in order to meet our targeted reductions goal. In addition to these actions in the U.S., our Brazilian operations utilized an involuntary reduction in force to eliminate positions. | ||||||||||||||||||||
In the fourth quarter of 2013, the Company leveraged efficiencies identified through redesigning our organizational structure and began implementing new cost-reduction initiatives, including an enterprise-wide reduction-in-force. As a result of these actions, the Company recognized restructuring charges of $11 million in personnel costs for employee termination and related benefits, of which a portion was paid in 2013. The Company expects the remaining restructuring charges will be paid throughout 2014. | ||||||||||||||||||||
In the second quarter of 2014, the Company initiated new cost-reduction actions, including an enterprise-wide reduction-in-force. As a result of these actions, the Company recognized restructuring charges of $8 million in personnel costs for employee termination and related benefits, the majority of which is expected to be paid during the remainder of 2014. The Company expects the remaining restructuring charges will be paid throughout 2015. | ||||||||||||||||||||
Warrenville, Illinois Lease Vacancy | ||||||||||||||||||||
In the second quarter of 2012, the Company vacated the premises of its former world headquarters in Warrenville, Illinois. The cash payments associated with the lease vacancy obligation are expected to be completed by the end of 2016. | ||||||||||||||||||||
North American Manufacturing Restructuring Activities | ||||||||||||||||||||
The Company continues to evaluate opportunities to restructure and rationalize its Manufacturing operations in an effort to optimize our cost structure. | ||||||||||||||||||||
Chatham restructuring activities | ||||||||||||||||||||
In the third quarter of 2011, the Company committed to close its Chatham, Ontario heavy truck plant, which had been idled since June 2009. Potential additional charges in future periods could range from $20 million to $70 million, primarily related to pension and postretirement costs and termination benefits, which are subject to employee negotiation, acceptance rates and the resolution of disputes related thereto. | ||||||||||||||||||||
Garland Facility closure | ||||||||||||||||||||
In the fourth quarter of 2012, the Company committed to plans for the closure of its Garland, Texas truck manufacturing operations (the "Garland Facility"). Beginning in early 2013, the Company began transitioning production from the Garland Facility to other North America operations that produce similar models. In the second quarter of 2013, production at the Garland Facility ceased. In the first and second quarters of 2013, we recognized charges of $12 million and $8 million, respectively, for the acceleration of depreciation of certain assets related to the facility that impacted Cost of products sold in the Company's Consolidated Statements of Operations. | ||||||||||||||||||||
Huntsville Facility | ||||||||||||||||||||
In February 2014, the Company announced plans to consolidate its mid-range engine manufacturing footprint and relocate mid-range engine production from its Huntsville, Alabama, facility ("Huntsville Facility") to its Melrose Park, Illinois facility ("Melrose Park Facility"). As a result, in the first quarter of 2014, the North America Truck segment recognized restructuring charges of $1 million for personnel costs related to employee terminations and $2 million for inventory reserves related to the idled production equipment at the Huntsville Facility that impacted Cost of products sold in the Company's Consolidated Statements of Operations. | ||||||||||||||||||||
Restructuring Liability | ||||||||||||||||||||
The following tables summarize the activity in the restructuring liability, which includes amounts related to discontinued operations and excludes pension and other postretirement contractual termination benefits: | ||||||||||||||||||||
(in millions) | Balance at October 31, 2013 | Additions | Payments | Adjustments | Balance at April 30, 2014 | |||||||||||||||
Employee termination charges | $ | 15 | $ | 9 | $ | (8 | ) | $ | — | $ | 16 | |||||||||
Employee relocation costs | — | 1 | (1 | ) | — | — | ||||||||||||||
Lease vacancy | 18 | 1 | (4 | ) | — | 15 | ||||||||||||||
Other | 1 | — | (2 | ) | — | (1 | ) | |||||||||||||
Restructuring liability | $ | 34 | $ | 11 | $ | (15 | ) | $ | — | $ | 30 | |||||||||
(in millions) | Balance at | Additions | Payments | Adjustments | Balance at April 30, 2013 | |||||||||||||||
October 31, 2012 | ||||||||||||||||||||
Employee termination charges | $ | 72 | $ | 1 | $ | (44 | ) | $ | (3 | ) | $ | 26 | ||||||||
Employee relocation costs | — | 2 | (2 | ) | — | — | ||||||||||||||
Lease vacancy | 17 | 2 | (3 | ) | 2 | 18 | ||||||||||||||
Other | — | 4 | (3 | ) | — | 1 | ||||||||||||||
Restructuring liability | $ | 89 | $ | 9 | $ | (52 | ) | $ | (1 | ) | $ | 45 | ||||||||
Finance_Receivables
Finance Receivables | 6 Months Ended | |||||||||||||||
Apr. 30, 2014 | ||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||
Finance Receivables | ' | |||||||||||||||
Finance Receivables | ||||||||||||||||
Finance receivables are receivables of our Financial Services operations. Finance receivables generally consist of wholesale notes and accounts, as well as retail notes, finance leases and accounts. Total finance receivables reported on the Consolidated Balance Sheets are net of an allowance for doubtful accounts. Total assets of our Financial Services operations net of intercompany balances are $2.5 billion and $2.4 billion as of April 30, 2014 and October 31, 2013, respectively. Included in total assets are finance receivables of $2.0 billion and $1.9 billion as of April 30, 2014 and October 31, 2013, respectively. We have two portfolio segments of finance receivables based on the type of financing inherent to each portfolio. The retail portfolio segment represents loans or leases to end-users for the purchase or lease of vehicles. The wholesale portfolio segment represents loans to dealers to finance their inventory. | ||||||||||||||||
Our Finance receivables, net, consist of the following: | ||||||||||||||||
(in millions) | April 30, 2014 | October 31, 2013 | ||||||||||||||
Retail portfolio | $ | 807 | $ | 751 | ||||||||||||
Wholesale portfolio | 1,241 | 1,207 | ||||||||||||||
Total finance receivables | 2,048 | 1,958 | ||||||||||||||
Less: Allowance for doubtful accounts | 24 | 23 | ||||||||||||||
Total finance receivables, net | 2,024 | 1,935 | ||||||||||||||
Less: Current portion, net(A) | 1,713 | 1,597 | ||||||||||||||
Noncurrent portion, net | $ | 311 | $ | 338 | ||||||||||||
_________________________ | ||||||||||||||||
(A) | The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals. | |||||||||||||||
Securitizations | ||||||||||||||||
Our Financial Services operations transfers wholesale notes, retail accounts receivable, retail notes, finance leases, and operating leases through special purpose entities ("SPEs"), which generally are only permitted to purchase these assets, issue asset-backed securities, and make payments on the securities. In addition to servicing receivables, our continued involvement in the SPEs may include an economic interest in the transferred receivables and, in some cases, managing exposure to interest rates using interest rate swaps and interest rate caps. There were no transfers of finance receivables that qualified for sale accounting treatment as of April 30, 2014 and October 31, 2013, and as a result, the transferred finance receivables are included in our Consolidated Balance Sheets and the related interest earned is included in Finance revenues. | ||||||||||||||||
We transfer eligible finance receivables into retail note owner trusts or wholesale note owner trusts in order to issue asset-backed securities. These trusts are VIEs of which we are determined to be the primary beneficiary and, therefore, the assets and liabilities of the trusts are included in our Consolidated Balance Sheets. The outstanding balance of finance receivables transferred into these VIEs was $989 million and $948 million as of April 30, 2014 and October 31, 2013, respectively. Other finance receivables related to secured transactions that do not qualify for sale accounting treatment were $2 million and $4 million as of April 30, 2014 and October 31, 2013, respectively. For more information on assets and liabilities of consolidated VIEs and other securitizations accounted for as secured borrowings by our Financial Services segment, see Note 1, Summary of Significant Accounting Policies. | ||||||||||||||||
Finance Revenues | ||||||||||||||||
The following table presents the components of our Finance revenues: | ||||||||||||||||
Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Retail notes and finance leases revenue | $ | 16 | $ | 20 | $ | 33 | $ | 41 | ||||||||
Wholesale notes interest | 19 | 19 | 37 | 39 | ||||||||||||
Operating lease revenue | 15 | 12 | 29 | 24 | ||||||||||||
Retail and wholesale accounts interest | 7 | 7 | 13 | 13 | ||||||||||||
Gross finance revenues | 57 | 58 | 112 | 117 | ||||||||||||
Less: Intercompany revenues | (19 | ) | (19 | ) | (35 | ) | (39 | ) | ||||||||
Finance revenues | $ | 38 | $ | 39 | $ | 77 | $ | 78 | ||||||||
Allowance_for_Doubtful_Account
Allowance for Doubtful Accounts | 6 Months Ended | |||||||||||||||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||||||||||||||
Allowance for Doubtful Accounts [Abstract] | ' | |||||||||||||||||||||||||||||||
Allowance for Doubtful Accounts | ' | |||||||||||||||||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||||||||||||||||||
Our two 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 4, 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 April 30, 2014 | Three Months Ended April 30, 2013 | |||||||||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Trade and | Total | Retail | Wholesale | Trade and | Total | ||||||||||||||||||||||||
Portfolio | Portfolio | Other | Portfolio | Portfolio | Other | |||||||||||||||||||||||||||
Receivables | Receivables | |||||||||||||||||||||||||||||||
Allowance for doubtful accounts, at beginning of period | $ | 22 | $ | 2 | $ | 36 | $ | 60 | $ | 23 | $ | 2 | $ | 24 | $ | 49 | ||||||||||||||||
Provision for doubtful accounts, net of recoveries | 3 | — | 1 | 4 | 1 | — | 10 | 11 | ||||||||||||||||||||||||
Charge-off of accounts(A) | (3 | ) | — | (2 | ) | (5 | ) | (3 | ) | — | — | (3 | ) | |||||||||||||||||||
Other(B) | — | — | 3 | 3 | 1 | — | — | 1 | ||||||||||||||||||||||||
Allowance for doubtful accounts, at end of period | $ | 22 | $ | 2 | $ | 38 | $ | 62 | $ | 22 | $ | 2 | $ | 34 | $ | 58 | ||||||||||||||||
Six Months Ended April 30, 2014 | Six Months Ended April 30, 2013 | |||||||||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Trade and | Total | Retail | Wholesale | Trade and | Total | ||||||||||||||||||||||||
Portfolio | Portfolio | Other | Portfolio | Portfolio | Other | |||||||||||||||||||||||||||
Receivables | Receivables | |||||||||||||||||||||||||||||||
Allowance for doubtful accounts, at beginning of period | $ | 21 | $ | 2 | $ | 37 | $ | 60 | $ | 27 | $ | — | $ | 24 | $ | 51 | ||||||||||||||||
Provision for doubtful accounts, net of recoveries | 7 | — | 3 | 10 | (1 | ) | 2 | 10 | 11 | |||||||||||||||||||||||
Charge-off of accounts(A) | (5 | ) | — | (2 | ) | (7 | ) | (6 | ) | — | — | (6 | ) | |||||||||||||||||||
Other(B) | (1 | ) | — | — | (1 | ) | 2 | — | — | 2 | ||||||||||||||||||||||
Allowance for doubtful accounts, at end of period | $ | 22 | $ | 2 | $ | 38 | $ | 62 | $ | 22 | $ | 2 | $ | 34 | $ | 58 | ||||||||||||||||
_________________________ | ||||||||||||||||||||||||||||||||
(A) | We repossess sold and leased vehicles on defaulted finance receivables and leases, and place them into Inventories. Losses recognized at the time of repossession and charged against the allowance for doubtful accounts were less than $1 million for the three and six months ended April 30, 2014 as well as for the three and six months ended April 30, 2013. | |||||||||||||||||||||||||||||||
(B) | Amounts include currency translation. | |||||||||||||||||||||||||||||||
The accrual of interest income is discontinued on certain impaired finance receivables. Impaired finance receivables include accounts with specific loss reserves and certain accounts that are on non-accrual status. In certain cases, we continue to collect payments on our impaired finance receivables. | ||||||||||||||||||||||||||||||||
The following table presents information regarding impaired finance receivables: | ||||||||||||||||||||||||||||||||
30-Apr-14 | 31-Oct-13 | |||||||||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Total | Retail | Wholesale | Total | ||||||||||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||||||||||||
Impaired finance receivables with specific loss reserves | $ | 14 | $ | — | $ | 14 | $ | 15 | $ | — | $ | 15 | ||||||||||||||||||||
Impaired finance receivables without specific loss reserves | 1 | — | 1 | 1 | — | 1 | ||||||||||||||||||||||||||
Specific loss reserves on impaired finance receivables | 6 | — | 6 | 6 | — | 6 | ||||||||||||||||||||||||||
Finance receivables on non-accrual status | 15 | — | 15 | 10 | — | 10 | ||||||||||||||||||||||||||
For the impaired finance receivables in the retail portfolio as of April 30, 2014 and 2013, the average balances of those receivables were $16 million and $13 million during the six months ended April 30, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
The Company uses the aging of its receivables as well as other inputs when assessing credit quality. The following table presents the aging analysis for finance receivables: | ||||||||||||||||||||||||||||||||
30-Apr-14 | 31-Oct-13 | |||||||||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Total | Retail | Wholesale | Total | ||||||||||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||||||||||||
Current, and up to 30 days past due | $ | 724 | $ | 1,237 | $ | 1,961 | $ | 699 | $ | 1,204 | $ | 1,903 | ||||||||||||||||||||
30-90 days past due | 69 | 2 | 71 | 44 | 2 | 46 | ||||||||||||||||||||||||||
Over 90 days past due | 14 | 2 | 16 | 8 | 1 | 9 | ||||||||||||||||||||||||||
Total finance receivables | $ | 807 | $ | 1,241 | $ | 2,048 | $ | 751 | $ | 1,207 | $ | 1,958 | ||||||||||||||||||||
Inventories
Inventories | 6 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
The following table presents the components of Inventories: | ||||||||
(in millions) | April 30, | October 31, | ||||||
2014 | 2013 | |||||||
Finished products | $ | 808 | $ | 692 | ||||
Work in process | 74 | 58 | ||||||
Raw materials | 502 | 460 | ||||||
Total inventories | $ | 1,384 | $ | 1,210 | ||||
Debt
Debt | 6 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
Debt | ||||||||
(in millions) | April 30, 2014 | October 31, 2013 | ||||||
Manufacturing operations | ||||||||
Senior Secured Term Loan Credit Facility, as Amended, due 2017, net of unamortized discount of $4 for both periods | $ | 694 | $ | 693 | ||||
8.25% Senior Notes, due 2021, net of unamortized discount of $21 and $22, respectively | 1,179 | 1,178 | ||||||
3.00% Senior Subordinated Convertible Notes, due 2014, net of unamortized discount of $4 and $26, respectively | 163 | 544 | ||||||
4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $21 and $23, respectively | 179 | 177 | ||||||
4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $43 | 368 | — | ||||||
Debt of majority-owned dealerships | 48 | 48 | ||||||
Financing arrangements and capital lease obligations | 59 | 77 | ||||||
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040 | 225 | 225 | ||||||
Promissory Note | 15 | 20 | ||||||
Financed lease obligations | 205 | 218 | ||||||
Other | 35 | 39 | ||||||
Total Manufacturing operations debt | 3,170 | 3,219 | ||||||
Less: Current portion | 267 | 658 | ||||||
Net long-term Manufacturing operations debt | $ | 2,903 | $ | 2,561 | ||||
(in millions) | April 30, 2014 | October 31, 2013 | ||||||
Financial Services operations | ||||||||
Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2019 | $ | 844 | $ | 778 | ||||
Bank revolvers, at fixed and variable rates, due dates from 2014 through 2019 | 1,005 | 1,018 | ||||||
Commercial paper, at variable rates, program matures in 2015 | 30 | 21 | ||||||
Borrowings secured by operating and finance leases, at various rates, due serially through 2018 | 51 | 49 | ||||||
Total Financial Services operations debt | 1,930 | 1,866 | ||||||
Less: Current portion | 689 | 505 | ||||||
Net long-term Financial Services operations debt | $ | 1,241 | $ | 1,361 | ||||
Manufacturing Operations | ||||||||
4.75% Senior Subordinated Convertible Notes | ||||||||
During the second quarter of 2014, we completed the private sale of $411 million of 4.75% senior subordinated convertible notes due April 2019 ("2019 Convertible Notes"), including a portion of the underwriter's over-allotment option. The Company received proceeds of $402 million, net of $9 million of issuance costs. Interest is payable on April 15 and October 15 of each year until the maturity date. The 2019 Convertible Notes are senior subordinated unsecured obligations of the Company. | ||||||||
In accounting for the issuance, the 2019 Convertible Notes were separated into a debt component and an equity component, resulting in the debt component being recorded at estimated fair value without consideration given to the conversion feature. The excess of the principal amount of the liability component over the carrying amount is treated as debt discount and will be amortized to Interest expense using the effective interest method over the term of the 2019 Convertible Notes. We estimated the fair value of the liability component at $367 million. The equity component of $44 million, is recorded in Additional paid in capital and will not be remeasured as long as it continues to meet the conditions for equity classification. Issuance costs are also allocated between the debt and equity components resulting in $8 million of debt issue costs being recorded in Other noncurrent assets and $1 million recorded as a reduction in Additional paid in capital. The liability component of the debt issuance costs will be amortized to Interest expense over the term of the 2019 Convertible Notes. | ||||||||
The Company has the option to redeem the 2019 Convertible Notes for cash, in whole or in part, on any business day on or after April 20, 2017 if the last reported sale price of the Company's common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), during any 30 consecutive trading day period ending within 10 trading days immediately prior to the date of the redemption notice ("Optional Redemption"). The redemption price is equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. | ||||||||
Holders may convert the 2019 Convertible Notes into common stock of the Company at any time on or after October 15, 2018. Holders may also convert the 2019 Convertible Notes at their option prior to October 15, 2018, under the following circumstances: (i) during any fiscal quarter (and only during that fiscal quarter) commencing after April 30, 2014, if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price on each such trading day; (ii) during the 5 business day period after any 5 consecutive trading day period (the "Measurement Period") in which the trading price per $1,000 principal amount of notes for each trading day of that Measurement Period was less than 98% of the product of the last reported sale price of the common stock and the applicable conversion rate on each such trading day; (iii) if the Company exercises its Optional Redemption, as described above, after October 15, 2018, holders of the 2019 Convertible Notes will have the right to convert their 2019 Convertible Notes at any time prior to the close of business on the business day preceding the redemption date, or; (iv) upon the occurrence of specified corporate events, as more fully described in the 2019 Convertible Notes indenture. The conversion rate will initially be 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 conversion rate may be adjusted for anti-dilution provisions and the conversion price may be decreased by the Board of Directors to the extent permitted by law and listing requirements. | ||||||||
The 2019 Convertible Notes can be settled in common stock, cash, or a combination of common stock and cash. Upon conversion, the Company will satisfy its conversion obligations by delivering, at its election, shares of common stock (plus cash in lieu of fractional shares), cash ("Cash Settlement"), or any combination of cash and shares of common stock ("Combination Settlement"). If the Company elects a Cash Settlement or a Combination Settlement, the amounts due will be based on a daily conversion value calculated on a proportionate basis for each trading day in a 20 trading-day observation period. If a holder converts its 2019 Convertible Notes on or after October 15, 2018, and the Company elects physical settlement, the holder will not receive the shares of common stock into which the 2019 Convertible Notes are convertible until after the expiration of the observation period, even though the number of shares the holder will receive upon settlement will not change. It is our policy to settle the principal and accrued interest on the 2019 Convertible Notes with cash. Subject to certain exceptions, holders may require the Company to repurchase, for cash, all or part of the 2019 Convertible Notes at a price equal to 100% of the principal amount of the 2019 Convertible Notes being repurchased plus any accrued and unpaid interest. | ||||||||
3.00% Senior Subordinated Convertible Notes | ||||||||
In October 2009, we completed the sale of $570 million aggregate principal amount of 3.00% senior subordinated convertible notes ("2014 Convertible Notes"), including over-allotment options. The 2014 Convertible Notes are senior subordinated unsecured obligations of the Company. | ||||||||
In connection with the sale of the 2014 Convertible Notes, the Company purchased call options for $125 million. The call options cover 11,337,870 shares of common stock, subject to adjustments, at an exercise price of $50.27. The call options are intended to minimize share dilution associated with the 2014 Convertible Notes. In addition, in connection with the sale of the 2014 Convertible Notes, the Company also entered into separate warrant transactions whereby, the Company sold warrants for $87 million to sell in the aggregate 11,337,870 shares of common stock, subject to adjustments, at an exercise price of $60.14 per share of common stock. | ||||||||
During the second quarter of 2014, the Company used proceeds from the issuance of the 2019 Convertible Notes, as well as cash on-hand, to repurchase $404 million of notional amount of the 2014 Convertible Notes. The Company recorded a charge of $11 million related to the repurchase which was recognized in Other expense (income), net. In conjunction with the repurchases of the 2014 Convertible Notes, call options representing 8,026,456 shares expired or were unwound by the Company and warrants representing 6,523,319 shares were unwound by the Company. | ||||||||
Financial Services Operations | ||||||||
In March 2014, the maturity date of the $500 million variable funding notes was extended from September 2014 to March 2015. | ||||||||
In November 2013, Navistar Financial, S.A. de C.V., SOFOM, E.N.R, our Mexican financial services affiliate ("NFM"), expanded its facility of five-year notes secured by retail finance receivables by selling an additional P$800 million (the equivalent of approximately US$61 million at April 30, 2014). | ||||||||
In December 2013, International Truck Leasing Corporation, a special purpose, wholly-owned subsidiary of NFC, issued borrowings secured by operating and finance leases of $21 million. |
Postretirement_Benefits
Postretirement Benefits | 6 Months Ended | |||||||||||||||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||||||||||||||
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, and 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 six months ended April 30, 2014, we contributed $36 million and $65 million, respectively, and for the three and six months ended April 30, 2013 we contributed $30 million and $57 million, respectively, to our pension plans to meet regulatory funding requirements. We currently anticipate additional contributions of $133 million to our pension plans during the remainder of 2014. | ||||||||||||||||||||||||||||||||
We primarily fund other post-employment benefit ("OPEB") obligations, such as retiree medical, in accordance with a 1993 Settlement Agreement (the "1993 Settlement Agreement"), which requires us to fund a portion of the plans' annual service cost to a retiree benefit trust (the "Base Trust"). The 1993 Settlement Agreement resolved a class action lawsuit originally filed in 1992 regarding the restructuring of the Company's then applicable retiree health care and life insurance benefits. Contributions for the six months ended April 30, 2014 and 2013, as well as anticipated contributions for the remainder of 2014, are not material. | ||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Expense (Income) | ||||||||||||||||||||||||||||||||
Net postretirement benefits expense included in our Consolidated Statements of Operations is comprised of the following: | ||||||||||||||||||||||||||||||||
Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||||||||||||||||||
Pension Benefits | Health and Life | Pension Benefits | Health and Life | |||||||||||||||||||||||||||||
Insurance Benefits | Insurance Benefits | |||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Service cost for benefits earned during the period | $ | 2 | $ | 5 | $ | 1 | $ | 2 | $ | 6 | $ | 10 | $ | 2 | $ | 4 | ||||||||||||||||
Interest on obligation | 40 | 36 | 17 | 16 | 79 | 72 | 34 | 31 | ||||||||||||||||||||||||
Amortization of cumulative loss | 23 | 32 | 4 | 8 | 47 | 64 | 8 | 15 | ||||||||||||||||||||||||
Amortization of prior service benefit | — | — | (1 | ) | (1 | ) | — | — | (2 | ) | (2 | ) | ||||||||||||||||||||
Premiums on pension insurance | — | 1 | — | — | — | 1 | — | — | ||||||||||||||||||||||||
Expected return on assets | (48 | ) | (47 | ) | (8 | ) | (9 | ) | (96 | ) | (94 | ) | (16 | ) | (17 | ) | ||||||||||||||||
Net postretirement benefits expense | $ | 17 | $ | 27 | $ | 13 | $ | 16 | $ | 36 | $ | 53 | $ | 26 | $ | 31 | ||||||||||||||||
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. Effective February 1, 2013, the Company changed the timing for depositing the matching contributions to the end of the calendar year. 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 $15 million in the three and six months ended April 30, 2014, respectively, and $8 million and $15 million for the three and six months ended April 30, 2013, respectively. | ||||||||||||||||||||||||||||||||
In accordance with the 1993 Settlement Agreement, an independent Retiree Supplemental Benefit Trust (the "Supplemental Trust") was established. The Supplemental Trust, and the benefits it provides to certain retirees pursuant to a certain Retiree Supplemental Benefit Program under the 1993 Settlement Agreement ("Supplemental Benefit Program"), is not part of the Company's consolidated financial statements. The assets of the Supplemental Trust arise from three sources: (i) the Company's 1993 contribution to the Supplemental Trust of 25.5 million shares of our Class B common stock, which were subsequently sold by the Supplemental Trust prior to 2000, (ii) contingent profit-sharing contributions made by the Company pursuant to a certain Supplemental Benefit Trust Profit Sharing Plan ("Supplemental Benefit Profit Sharing Plan"), and (iii) net investment gains on the Supplemental Trust's assets, if any. | ||||||||||||||||||||||||||||||||
The Company's contingent profit sharing obligations under the Supplemental Benefits Profit Sharing Plan will continue until certain funding targets defined by the 1993 Settlement Agreement are met ("Profit Sharing Cessation"). Upon Profit Sharing Cessation, the Company would assume responsibility for (i) establishing the investment policy for the Supplemental Trust, (ii) approving or disapproving of certain additional supplemental benefits to the extent such benefits would result in higher expenditures than those contemplated upon the Profit Sharing Cessation, and (iii) making additional contributions to the Supplemental Trust as necessary to make up for investment and/or actuarial losses. We have recorded no profit sharing accruals based on the operating performance of the entities that are included in the determination of qualifying profits. For more information, see Note 12, Commitments and Contingencies, for a discussion of pending litigation regarding the Supplemental Benefit Profit Sharing Plan. |
Income_Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
We compute on a quarterly basis an estimated annual effective tax rate considering ordinary income and related income tax expense. For all periods presented, U.S. and certain foreign results are excluded from ordinary income due to ordinary losses for which no benefit can be recognized. Ordinary income refers to income (loss) before income tax expense excluding significant unusual or infrequently occurring items. The tax effect of a significant unusual or infrequently occurring item is recorded in the interim period in which it occurs. Items included in income tax expense in the periods in which they occur include the tax effects of material restructurings and impairments, cumulative effect of changes in tax laws or rates, foreign exchange gains and losses, adjustments to uncertain tax positions, and adjustments to our valuation allowance due to changes in judgment regarding the ability to realize deferred tax assets in future years. In the second quarter of 2014, in accordance with the intraperiod tax allocation rules, the Company recorded a net benefit of $13 million in Income tax expense related to continuing operations, and an offsetting reduction in Additional paid in capital, which resulted from the issuance and repurchase of convertible notes. For more information, see Note 7, Debt. | |
We have evaluated the need to maintain a valuation allowance for deferred tax assets based on our assessment of whether it is more likely than not that deferred tax benefits will be realized through the generation of future taxable income. Appropriate consideration is given to all available evidence, both positive and negative, in assessing the need for a valuation allowance. We continue to maintain a valuation allowance on our U.S. deferred tax assets, as well as certain foreign deferred tax assets, that we believe, on a more-likely-than-not basis, will not be realized. During the second quarter of 2014, our evaluation of the realizability of our Brazilian deferred tax assets resulted in a determination that a valuation allowance was required, due to a deterioration of operating performance in Brazil and an increase in net operating loss carryforwards. As a result, we recorded a net income tax expense of $29 million related to establishment of the valuation allowance and tax impact from the impairment of certain intangible assets. 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 April 30, 2014, the amount of liability for uncertain tax positions was $63 million. If the unrecognized tax benefits are recognized, all but $7 million 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 carry forward, 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 six months ended April 30, 2014, total interest and penalties related to our uncertain tax positions resulted in an income tax expense of $1 million and income tax benefit of $2 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 12 months, we do not expect any such change would have a material effect on our financial condition, results of operations, or cash flows. | |
In the three months ended January 31, 2014, we reached a tax settlement with the State of Alabama, which resulted in the recording of a decrease to our uncertain tax positions of $8 million. In the first quarter of 2013, we accrued $12 million related to this matter, but later reduced our accrual by $4 million in the fourth quarter of 2013 in anticipation of the settlement. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair value measurements | ' | |||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||
For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect our assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, we classify each fair value measurement as follows: | ||||||||||||||||||||||||||||||||
• | Level 1—based upon quoted prices for identical instruments in active markets, | |||||||||||||||||||||||||||||||
• | Level 2—based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and | |||||||||||||||||||||||||||||||
• | Level 3—based upon one or more significant unobservable inputs. | |||||||||||||||||||||||||||||||
The following section describes key inputs and assumptions in our valuation methodologies: | ||||||||||||||||||||||||||||||||
Cash Equivalents and Restricted Cash Equivalents—We classify highly liquid investments, with an original maturity of 90 days or less, including U.S. Treasury bills, federal agency securities, and commercial paper, as cash equivalents. The carrying amounts of cash and cash equivalents and restricted cash approximate fair value because of the short-term maturity and highly liquid nature of these instruments. | ||||||||||||||||||||||||||||||||
Marketable Securities—Our marketable securities portfolios are classified as available-for-sale and primarily include investments in U.S. government securities and commercial paper with an original maturity greater than 90 days. We use quoted prices from active markets to determine fair value. | ||||||||||||||||||||||||||||||||
Derivative Assets and Liabilities—We measure the fair value of derivatives assuming that the unit of account is an individual derivative transaction and that each derivative could be sold or transferred on a stand-alone basis. We classify within Level 2 our derivatives that are traded over-the-counter and valued using internal models based on observable market inputs. In certain cases, market data is not available and we estimate inputs such as in situations where trading in a particular commodity is not active. Measurements based upon these unobservable inputs are classified within Level 3. For more information regarding derivatives, see Note 11, Financial Instruments and Commodity Contracts. | ||||||||||||||||||||||||||||||||
Guarantees—We provide certain guarantees of payments and residual values to specific counterparties. Fair value of these guarantees is based upon internally developed models that utilize current market-based assumptions and historical data. We classify these liabilities within Level 3. For more information regarding guarantees, see Note 12, Commitments and Contingencies. | ||||||||||||||||||||||||||||||||
The following table presents the financial instruments measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||
April 30, 2014 | October 31, 2013 | |||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Marketable securities: | ||||||||||||||||||||||||||||||||
U.S. Treasury bills | $ | 241 | $ | — | $ | — | $ | 241 | $ | 396 | $ | — | $ | — | $ | 396 | ||||||||||||||||
Other | 293 | — | — | 293 | 434 | — | — | 434 | ||||||||||||||||||||||||
Derivative financial instruments: | ||||||||||||||||||||||||||||||||
Foreign currency contracts | — | — | — | — | — | 4 | — | 4 | ||||||||||||||||||||||||
Interest rate caps | — | 2 | — | 2 | — | 1 | — | 1 | ||||||||||||||||||||||||
Total assets | $ | 534 | $ | 2 | $ | — | $ | 536 | $ | 830 | $ | 5 | $ | — | $ | 835 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative financial instruments: | ||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Guarantees | — | — | 6 | 6 | — | — | 6 | 6 | ||||||||||||||||||||||||
Total liabilities | $ | — | $ | — | $ | 6 | $ | 6 | $ | — | $ | — | $ | 6 | $ | 6 | ||||||||||||||||
The following table presents the changes for those financial instruments classified within Level 3 of the valuation hierarchy: | ||||||||||||||||||||||||||||||||
Three Months Ended April 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(in millions) | Guarantees | Commodity contracts | Guarantees | Commodity contracts | ||||||||||||||||||||||||||||
Balance at February 1 | $ | (6 | ) | $ | — | $ | (7 | ) | $ | — | ||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | ||||||||||||||||||||||||||||
Issuances | — | — | — | — | ||||||||||||||||||||||||||||
Settlements | — | — | — | — | ||||||||||||||||||||||||||||
Balance at April 30 | $ | (6 | ) | $ | — | $ | (7 | ) | $ | — | ||||||||||||||||||||||
Change in unrealized gains on assets and liabilities still held | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Six Months Ended April 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(in millions) | Guarantees | Commodity contracts | Guarantees | Commodity contracts | ||||||||||||||||||||||||||||
Balance at November 1 | $ | (6 | ) | $ | — | $ | (7 | ) | $ | — | ||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | ||||||||||||||||||||||||||||
Issuances | — | — | — | — | ||||||||||||||||||||||||||||
Settlements | — | — | — | — | ||||||||||||||||||||||||||||
Balance at April 30 | $ | (6 | ) | $ | — | $ | (7 | ) | $ | — | ||||||||||||||||||||||
Change in unrealized gains on assets and liabilities still held | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
The following table presents the financial instruments measured at fair value on a nonrecurring basis: | ||||||||||||||||||||||||||||||||
(in millions) | April 30, 2014 | October 31, 2013 | ||||||||||||||||||||||||||||||
Level 2 financial instruments | ||||||||||||||||||||||||||||||||
Carrying value of impaired finance receivables (A) | $ | 14 | $ | 15 | ||||||||||||||||||||||||||||
Specific loss reserve | (6 | ) | (6 | ) | ||||||||||||||||||||||||||||
Fair value | $ | 8 | $ | 9 | ||||||||||||||||||||||||||||
_________________________ | ||||||||||||||||||||||||||||||||
(A) | Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors. | |||||||||||||||||||||||||||||||
In the second quarter of 2014, for the purpose of impairment evaluation the Company measured the implied fair value of the Company's Brazilian engine reporting unit's goodwill and the fair value of an indefinite-lived intangible asset, trademark. The Company's Brazilian engine reporting unit's goodwill was determined to be fully impaired and resulted in a non-cash charge of $142 million. In addition, the related trademark, with a carrying value of $43 million was determined to be impaired and a non-cash charge of $7 million was recognized. The impairment charges were included in Asset impairment charges in the Company's Consolidated Statements of Operations. We utilized the income approach to determine the fair value of these Level 3 assets. For more information, see Note 1, Summary of Significant Accounting Policies. | ||||||||||||||||||||||||||||||||
In the first quarter of 2014, the Company concluded it had a triggering event related to potential sales of assets requiring assessment of impairment for certain intangible and long-lived assets in the North America Truck segment. As a result, certain amortizing intangible assets and long-lived assets with a carrying value of $18 million were determined to be fully impaired, resulting in an impairment charge of $18 million, which was included in Asset impairment charges in the Company's Consolidated Statements of Operations. We utilized the market approach to determine the fair values of these Level 2 assets. | ||||||||||||||||||||||||||||||||
In addition to the methods and assumptions we use for the financial instruments recorded at fair value as discussed above, we use the following methods and assumptions to estimate the fair value for our other financial instruments that are not marked to market on a recurring basis. The carrying amounts of Cash and cash equivalents, Restricted cash, and Accounts payable approximate fair values because of the short-term maturity and highly liquid nature of these instruments. Finance receivables generally consist of retail and wholesale accounts and retail and wholesale notes. The carrying amounts of Trade and other receivables and retail and wholesale accounts approximate fair values as a result of the short-term nature of the receivables. The carrying amounts of wholesale notes approximate fair values as a result of the short-term nature of the wholesale notes and their variable interest rate terms. The fair values of these financial instruments are classified as Level 1. Due to the nature of the aforementioned financial instruments, they have been excluded from the fair value amounts presented in the table below. | ||||||||||||||||||||||||||||||||
The fair values of our retail notes are estimated by discounting expected cash flows at estimated current market rates. The fair values of our retail notes are classified as Level 3 financial instruments. | ||||||||||||||||||||||||||||||||
The fair values of our debt instruments classified as Level 1 were determined using quoted market prices. Our Tax Exempt Bonds 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 April 30, 2014 | ||||||||||||||||||||||||||||||||
Estimated Fair Value | Carrying Value | |||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Retail notes | $ | — | $ | — | $ | 306 | $ | 306 | $ | 302 | ||||||||||||||||||||||
Notes receivable | — | — | 10 | 10 | 69 | |||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||||||||
Manufacturing operations | ||||||||||||||||||||||||||||||||
Senior Secured Term Loan Credit Facility, as Amended, due 2017 | — | — | 701 | 701 | 694 | |||||||||||||||||||||||||||
8.25% Senior Notes, due 2021 | 1,277 | — | — | 1,277 | 1,179 | |||||||||||||||||||||||||||
3.00% Senior Subordinated Convertible Notes, due 2014(A) | 169 | — | — | 169 | 163 | |||||||||||||||||||||||||||
4.50% Senior Subordinated Convertible Notes, due 2018(A) | — | — | 203 | 203 | 179 | |||||||||||||||||||||||||||
4.75% Senior Subordinated Convertible Notes, due 2019(A) | — | — | 434 | 434 | 368 | |||||||||||||||||||||||||||
Debt of majority-owned dealerships | — | — | 48 | 48 | 48 | |||||||||||||||||||||||||||
Financing arrangements | — | — | 29 | 29 | 56 | |||||||||||||||||||||||||||
Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 | — | 227 | — | 227 | 225 | |||||||||||||||||||||||||||
Promissory Note | — | — | 15 | 15 | 15 | |||||||||||||||||||||||||||
Financed lease obligations | — | — | 205 | 205 | 205 | |||||||||||||||||||||||||||
Other | — | — | 33 | 33 | 35 | |||||||||||||||||||||||||||
Financial Services operations | ||||||||||||||||||||||||||||||||
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019 | — | — | 838 | 838 | 844 | |||||||||||||||||||||||||||
Bank revolvers, at fixed and variable rates, due dates from 2014 through 2019 | — | — | 984 | 984 | 1,005 | |||||||||||||||||||||||||||
Commercial paper, at variable rates, program matures in 2015 | 30 | — | — | 30 | 30 | |||||||||||||||||||||||||||
Borrowings secured by operating and finance leases, at various rates, due serially through 2018 | — | — | 51 | 51 | 51 | |||||||||||||||||||||||||||
As of October 31, 2013 | ||||||||||||||||||||||||||||||||
Estimated Fair Value | Carrying Value | |||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Retail notes | $ | — | $ | — | $ | 390 | $ | 390 | $ | 390 | ||||||||||||||||||||||
Notes receivable | — | — | 13 | 13 | 14 | |||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||||||||
Manufacturing operations | ||||||||||||||||||||||||||||||||
Senior Secured Term Loan Credit Facility, as Amended, due 2017 | — | — | 720 | 720 | 693 | |||||||||||||||||||||||||||
8.25% Senior Notes, due 2021 | 1,274 | — | — | 1,274 | 1,178 | |||||||||||||||||||||||||||
3.00% Senior Subordinated Convertible Notes, due 2014(A) | 586 | — | — | 586 | 544 | |||||||||||||||||||||||||||
4.50% Senior Subordinated Convertible Notes, due 2018(A) | — | — | 203 | 203 | 177 | |||||||||||||||||||||||||||
Debt of majority-owned dealerships | — | — | 48 | 48 | 48 | |||||||||||||||||||||||||||
Financing arrangements | — | — | 44 | 44 | 73 | |||||||||||||||||||||||||||
Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 | — | 229 | — | 229 | 225 | |||||||||||||||||||||||||||
Promissory Note | — | — | 20 | 20 | 20 | |||||||||||||||||||||||||||
Financed lease obligations | — | — | 218 | 218 | 218 | |||||||||||||||||||||||||||
Other | — | — | 36 | 36 | 39 | |||||||||||||||||||||||||||
Financial Services operations | ||||||||||||||||||||||||||||||||
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019 | — | — | 775 | 775 | 778 | |||||||||||||||||||||||||||
Bank revolvers, at fixed and variable rates, due dates from 2014 through 2019 | — | — | 990 | 990 | 1,018 | |||||||||||||||||||||||||||
Commercial paper, at variable rates, program matures in 2015 | 21 | — | — | 21 | 21 | |||||||||||||||||||||||||||
Borrowings secured by operating and finance leases, at various rates, due serially through 2017 | — | — | 49 | 49 | 49 | |||||||||||||||||||||||||||
_________________________ | ||||||||||||||||||||||||||||||||
(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 quoted market prices for the convertible note which includes the equity feature. |
Financial_Instruments_and_Comm
Financial Instruments and Commodity Contracts | 6 Months Ended | |||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Financial Instruments and Commodity Contracts | ' | |||||||||||||||||
Financial Instruments and Commodity Contracts | ||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||
We use derivative financial instruments as part of our overall interest rate, foreign currency, and commodity risk management strategies to reduce our interest rate exposure, reduce exchange rate risk for transactional exposures denominated in currencies other than the functional currency, and minimize the effect of commodity price volatility. From time to time, we use foreign currency forward and option contracts to manage the risk of exchange rate movements that would affect the value of our foreign currency cash flows. Foreign currency exchange rate movements create a degree of risk by affecting the value of sales made and costs incurred in currencies other than the functional currency. From time to time, we also use commodity forward contracts to manage our exposure to variability in certain commodity prices. In 2009, in connection with the sale of our 2014 Convertible Notes, we purchased call options and we entered into separate warrant transactions. The call options are intended to minimize share dilution associated with the 2014 Convertible Notes. As the call options and warrants are indexed to our common stock, we recognized them in permanent equity in Additional paid-in capital in the Company's Consolidated Balance Sheets, and will not recognize subsequent changes in fair value as long as the instruments remain classified as equity. | ||||||||||||||||||
We generally do not enter into derivative financial instruments for speculative or trading purposes and did not during the three months ended April 30, 2014 and 2013. None of our derivatives qualified for hedge accounting treatment during the three months ended April 30, 2014 and 2013. | ||||||||||||||||||
The majority of our derivative contracts are transacted under International Swaps and Derivatives Association ("ISDA") master agreements. Each agreement permits the net settlement of amounts owed in the event of default or certain other termination events. For derivative financial instruments, we have elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreement. Certain of our derivative contracts contain provisions that require us to provide collateral if certain thresholds are exceeded. No collateral was provided at April 30, 2014 and at October 31, 2013. Collateral is generally not required to be provided by our counter-parties for derivative contracts. We manage exposure to counter-party credit risk by entering into derivative financial instruments with various major financial institutions that can be expected to fully perform under the terms of such instruments. We do not anticipate nonperformance by any of the counter-parties. Our exposure to credit risk in the event of nonperformance by the counter-parties is limited to those assets that have been recorded, but have not yet been received in cash. At April 30, 2014 and October 31, 2013, our exposure to the credit risk of others was $2 million and $5 million, respectively. | ||||||||||||||||||
Our Financial Services operations may use interest rate swaps or interest rate caps from time to time to manage exposure to fluctuations in interest rates by limiting the amount of fixed rate finance receivables that are funded with variable rate debt. The Mexican Financial Services operation uses cross currency swaps to limit exposure to fluctuations in the value of the peso, as required under Mexican bank credit facilities. | ||||||||||||||||||
The fair values of all derivatives are recorded as assets or liabilities on a gross basis in our Consolidated Balance Sheets. The following table presents the fair values of our derivatives and their respective balance sheet locations: | ||||||||||||||||||
30-Apr-14 | ||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(in millions) | Location in | Fair Value | Location in | Fair Value | ||||||||||||||
Consolidated Balance Sheets | Consolidated Balance Sheets | |||||||||||||||||
Foreign currency contracts | Other current assets | $ | — | Other current liabilities | $ | 2 | ||||||||||||
Interest rate caps | Other current assets | 2 | Other noncurrent liabilities | — | ||||||||||||||
Total fair value | $ | 2 | $ | 2 | ||||||||||||||
31-Oct-13 | ||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(in millions) | Location in | Fair Value | Location in | Fair Value | ||||||||||||||
Consolidated Balance Sheets | Consolidated Balance Sheets | |||||||||||||||||
Foreign currency contracts | Other current assets | $ | 4 | Other current liabilities | $ | — | ||||||||||||
Interest rate caps | Other noncurrent assets | 1 | Other current liabilities | — | ||||||||||||||
Total fair value | $ | 5 | $ | — | ||||||||||||||
The following table presents the location and amount of loss (gain) recognized in our Consolidated Statements of Operations related to derivatives: | ||||||||||||||||||
Location in Consolidated Statements of Operations | Three Months Ended April 30, | Six Months Ended April 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Foreign currency contracts | Other expense (income), net | $ | 1 | $ | (1 | ) | $ | 1 | $ | (2 | ) | |||||||
Interest rate caps | Interest expense | 2 | — | 1 | — | |||||||||||||
Cross currency swaps | Other expense (income), net | (1 | ) | — | — | — | ||||||||||||
Commodity forward contracts | Costs of products sold | — | 2 | — | 2 | |||||||||||||
Total loss | $ | 2 | $ | 1 | $ | 2 | $ | — | ||||||||||
Foreign Currency Contracts | ||||||||||||||||||
During 2014 and 2013, we entered into foreign exchange forward and option contracts as economic hedges of anticipated cash flows denominated in Canadian Dollars, Brazilian Reais and Euros. All contracts were entered into to protect against the risk that the eventual cash flows resulting from certain transactions would be affected by changes in exchange rates between the U.S. dollar and the respective foreign currency. | ||||||||||||||||||
The following table presents the outstanding foreign currency contracts as of April 30, 2014 and October 31, 2013: | ||||||||||||||||||
(in millions) | Currency | Notional Amount | Maturity | |||||||||||||||
As of April 30, 2014 | ||||||||||||||||||
Forward exchange contract | EUR | € | 16 | Jul-14 | ||||||||||||||
As of October 31, 2013 | ||||||||||||||||||
Option collar contracts | EUR | € | 2 | Oct-13 | ||||||||||||||
Forward exchange contract | CAD | C$ | 90 | Oct-13 | ||||||||||||||
Option collar contract | CAD | C$ | 50 | Oct-13 | ||||||||||||||
Option collar contract | BRL | US$ | 25 | Oct-13 | ||||||||||||||
Commodity Forward Contracts | ||||||||||||||||||
During 2014 and 2013, we entered into commodity forward contracts as economic hedges of our exposure to variability in commodity prices for diesel fuel and steel. As of April 30, 2014, we had outstanding diesel fuel contracts with aggregate notional values of $4 million and outstanding steel contracts with aggregate notional values of $19 million. The commodity forward contracts have maturity dates ranging from April 30, 2014 to March 31, 2015. As of October 31, 2013, we had outstanding diesel fuel contracts with aggregate notional values of $2 million and outstanding steel contracts with aggregate notional values of $11 million. All of these contracts were entered into to protect against the risk that the eventual cash flows related to purchases of the commodities will be affected by changes in prices. | ||||||||||||||||||
Interest-Rate Contracts | ||||||||||||||||||
From time to time, we enter into various interest-rate contracts, interest rate caps, and cross currency swaps. As of April 30, 2014 and October 31, 2013, the notional amount of our outstanding cross currency swaps was $22 million and $45 million, respectively. We are exposed to interest rate and exchange rate risk as a result of our borrowing activities. The objective of these contracts is to mitigate fluctuations in earnings, cash flows, and fair value of borrowings. Our Mexican financial services operation uses interest rate caps and cross currency swaps to protect against the potential of rising interest rates as required by the terms of its variable-rate asset-backed securities. As of April 30, 2014 and October 31, 2013, the notional amount of our outstanding interest rate caps was $137 million and $78 million, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Apr. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Guarantees | |
We occasionally provide guarantees that could obligate us to make future payments if the primary entity fails to perform under its contractual obligations. We have recognized liabilities for some of these guarantees in our Consolidated Balance Sheets as they meet the recognition and measurement provisions of U.S. GAAP. In addition to the liabilities that have been recognized, we are contingently liable for other potential losses under various guarantees. We do not believe that claims that may be made under such guarantees would have a material effect on our financial condition, results of operations, or cash flows. | |
In March 2010, we entered into an operating agreement, as amended, which contains automatic extensions and is subject to early termination provisions, with GE Capital Corporation and GE Capital Commercial, Inc. (collectively, "GE") (the "GE Operating Agreement"). Under the terms of the GE Operating Agreement, as amended, GE is our preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. We provide GE with a loss sharing arrangement for certain credit losses. Under the loss sharing arrangement, as amended, we generally reimburse GE for credit losses in excess of the first 10% of the financed value of a contract; for certain leases we reimburse GE up to a maximum of the first 9.5% of the credit loss on those lease contracts. The Company’s exposure to loss is mitigated because contracts under the GE Operating Agreement are secured by the financed equipment. There were $1.5 billion and $1.4 billion of outstanding loan principal and operating lease payments receivable at April 30, 2014 and October 31, 2013, respectively, financed through the GE Operating Agreement and subject to the loss sharing arrangement. The related financed values of these outstanding contracts were $2.2 billion and $2.0 billion at April 30, 2014 and October 31, 2013, respectively. Generally, we do not carry the contracts under the GE Operating Agreement on our Consolidated Balance Sheets. However, for certain GE financed contracts which we have accounted for as borrowings, we have recognized equipment leased to others of $178 million and financed lease obligations of $205 million in our Consolidated Balance Sheets for the period ended April 30, 2014. | |
Historically, our losses, representing the entire loss amount, on similar contracts, measured as a percentage of the average balance of the related contracts, ranged from 0.3% to 2.1%. Under limited circumstances NFC retains the right to originate retail customer financings. Based on our historic experience of losses on similar contracts and the nature of the loss sharing arrangement, we do not believe our share of losses related to balances currently outstanding will be material. | |
For certain independent dealers’ wholesale inventory financed by third-party banks or finance companies, we provide limited repurchase agreements to the respective financing institution. The amount of losses related to these arrangements has not been material to our Consolidated Statements of Operations or Condensed Consolidated Statements of Cash Flows and the value of the guarantees and accruals recorded are not material to our Consolidated Balance Sheets. | |
We also have issued limited residual value guarantees in connection with various leases. The amounts of the guarantees are estimated and recorded. Our guarantees are contingent upon the fair value of the leased assets at the end of the lease term. The amount of losses related to these arrangements has not been material to our Consolidated Statements of Operations or Condensed Consolidated Statements of Cash Flows and the value of the guarantees and accruals recorded are not material to our Consolidated Balance Sheets. | |
We obtain certain stand-by letters of credit and surety bonds from third-party financial institutions in the ordinary course of business when required under contracts or to satisfy insurance-related requirements. As of April 30, 2014, the amount of stand-by letters of credit and surety bonds was $128 million. | |
We extend credit commitments to certain truck fleet customers, which allow them to purchase parts and services from participating dealers. The participating dealers receive accelerated payments from us with the result that we carry the receivables and absorb the credit risk related to these customers. As of April 30, 2014, the total credit limit under this program was $11 million of which $7 million was unused. | |
In addition, as of April 30, 2014, we have entered into various purchase commitments of $187 million and contracts that have cancellation fees of $46 million with various expiration dates through 2019. | |
In the ordinary course of business, we also provide routine indemnifications and other guarantees, the terms of which range in duration and often are not explicitly defined. We do not believe these will result in claims that would have a material impact on our financial condition, results of operations, or cash flows. | |
Environmental Liabilities | |
We have been named a potentially responsible party ("PRP"), in conjunction with other parties, in a number of cases arising under an environmental protection law, the Comprehensive Environmental Response, Compensation, and Liability Act, popularly known as the "Superfund" law. These cases involve sites that allegedly received wastes from current or former Company locations. Based on information available to us which, in most cases, consists of data related to quantities and characteristics of material generated at current or former Company locations, material allegedly shipped by us to these disposal sites, as well as cost estimates from PRPs and/or federal or state regulatory agencies for the cleanup of these sites, a reasonable estimate is calculated of our share of the probable costs, if any, and accruals are recorded in our consolidated financial statements. These accruals are generally recognized no later than upon completion of the remedial feasibility study and are not discounted to their present value. We review all accruals on a regular basis and believe that, based on these calculations, our share of the potential additional costs for the cleanup of each site will not have a material effect on our financial condition, results of operations, or cash flows. | |
Two sites formerly owned by us: (i) Solar Turbines in San Diego, California, and (ii) the Canton Plant in Canton, Illinois; were identified as having soil and groundwater contamination. Two sites in Sao Paulo, Brazil, where we are currently operating, were identified as having soil and groundwater contamination. While investigations and cleanup activities continue at these and other sites, we believe that we have adequate accruals to cover costs to complete the cleanup of all sites. | |
We have accrued $22 million for these and other environmental matters, which are included within Other current liabilities and Other noncurrent liabilities, as of April 30, 2014. The majority of these accrued liabilities are expected to be paid subsequent to 2015. | |
Along with other vehicle manufacturers, we have been subject to an increased number of asbestos-related claims in recent years. In general, these claims relate to illnesses alleged to have resulted from asbestos exposure from component parts found in older vehicles, although some cases relate to the alleged presence of asbestos in our facilities. In these claims, we are generally not the sole defendant, and the claims name as defendants numerous manufacturers and suppliers of a wide variety of products allegedly containing asbestos. We have strongly disputed these claims, and it has been our policy to defend against them vigorously. Historically, the actual damages paid out to claimants have not been material in any year to our financial condition, results of operations, or cash flows. It is possible that the number of these claims will continue to grow, and that the costs for resolving asbestos related claims could become significant in the future. | |
Legal Proceedings | |
Overview | |
We are subject to various claims arising in the ordinary course of business, and are party to various legal proceedings that constitute ordinary, routine litigation incidental to our business. The majority of these claims and proceedings relate to commercial, product liability, and warranty matters. In addition, from time to time we are subject to various claims and legal proceedings related to employee compensation, benefits, and benefits administration including, but not limited to, compliance with the Employee Retirement Income Security Act of 1974, as amended, and Department of Labor requirements. In our opinion, apart from the actions set forth below, the disposition of these proceedings and claims, after taking into account recorded accruals and the availability and limits of our insurance coverage, will not have a material adverse effect on our business or our financial condition, results of operations, or cash flows. | |
Profit Sharing Disputes | |
Pursuant to the 1993 Settlement Agreement, the program administrator and named fiduciary of the Supplemental Benefit Program is the Supplemental Benefit Program committee (the "Committee"), comprised of non-Company individuals. In August 2013, the Committee filed a motion for leave to amend its February 2013 complaint (which sought injunctive relief for the Company to provide certain information to which it was allegedly entitled under the Supplemental Benefit 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 alleges the Company breached the 1993 Settlement Agreement and violated ERISA by failing to properly calculate profit sharing contributions due under the Supplemental Benefit Profit Sharing Plan. The Committee seeks damages in excess of $50 million, injunctive relief and reimbursement of attorneys' fees and costs. In October 2013, the Company filed a Motion to Dismiss the Profit Sharing Complaint and to compel the Committee to comply with the dispute resolution procedures set forth in the Supplemental Benefit Trust Profit Sharing Plan. In March 2014, the Court denied the Company's Motion to Dismiss and ruled, among other things, that the Company waived its right to compel the Committee to comply with the dispute resolution provisions set forth in the Supplemental Benefit Trust Profit Sharing Plan. In April 2014, the Company appealed the Court's refusal to compel the Committee to comply with the dispute resolution process to the Court of Appeals for the 6th Circuit and the brief for the appeal is scheduled for completion in June 2014. The Company also filed a motion in Court to stay all proceedings pending the appeal. In May 2014, the Court granted the motion to stay all proceedings, including discovery, pending the appeal. | |
In addition, various local bargaining units of the UAW have filed separate grievances pursuant to the profit sharing plans under various collective bargaining agreements in effect between the Company and the UAW that may have similar legal and factual issues as the Profit Sharing Complaint. | |
FATMA Notice | |
International Indústria de Motores da América do Sul Ltda. ("IIAA"), formerly known as Maxion International Motores S/A ("Maxion"), now a wholly owned subsidiary of the Company, received a notice in July 2010 from the State of Santa Catarina Environmental Protection Agency ("FATMA") in Brazil. The notice alleged that Maxion had sent wastes to a facility owned and operated by a company known as Natureza and that soil and groundwater contamination had occurred at the Natureza facility. The notice asserted liability against Maxion and assessed an initial penalty in the amount of R$2 million (the equivalent of approximately US$1 million at April 30, 2014), which is not due and final until all administrative appeals are exhausted. Maxion was one of numerous companies that received similar notices. IIAA filed an administrative defense in August 2010 and has not yet received a decision following that filing. IIAA disputes the allegations in the notice and intends to vigorously defend itself. | |
Sao Paulo Groundwater Notice | |
In March 2014, IIAA, along with other nearby companies, received from the Sao Paulo District Attorney a notice and proposed Consent Agreement relating to alleged neighborhood-wide groundwater contamination at or around its Sao Paulo manufacturing facility. The proposed Consent Agreement seeks certain groundwater investigations and other technical relief and proposes sanctions in the amount of R$3 million (the equivalent of approximately US$1 million at April 30, 2014). IIAA disputes the allegations in the notice and proposed Consent Agreement and intends to vigorously defend itself. | |
Lis Franco de Toledo, et. al. vs. Syntex do Brasil and IIAA | |
In 1973, Syntex do Brasil Industria e Comercio Ltda. ("Syntex"), a predecessor of IIAA, our Brazilian engine manufacturing subsidiary, which was formerly known as MWM International Industria de Motores da America do Sul Ltda ("MWM"), filed a lawsuit in Brazilian court against Dr. Lis Franco de Toledo and others (collectively, "Lis Franco"). Syntex claimed Lis Franco had improperly terminated a contract which provided for the transfer from Lis Franco to Syntex of a patent for the production of a certain vaccine. Lis Franco filed a counterclaim alleging that he was entitled to royalties under the contract. In 1975, the Brazilian court ruled in favor of Lis Franco, a decision which was affirmed on appeal in 1976. In 1984, while the case was still pending, Syntex’ owner, Syntex Comercio e Participacoes Ltds ("Syntex Parent") sold the stock of Syntex to MWM, and in connection with that sale Syntex Parent agreed to indemnify and hold harmless MWM for any and all liabilities of Syntex, including its prior pharmaceutical operations (which had been previously spun-off to another subsidiary wholly-owned by the Syntex Parent) and any payments that might be payable under the Lis Franco lawsuit. In the mid to late 1990s, Syntex Parent was merged with an entity known as Wyeth Industria Farmaceutica LTDA ("Wyeth"). | |
In 1999, Lis Franco amended its pleadings to add MWM to the lawsuit as a defendant. In 2000, Wyeth acknowledged to the Brazilian court its sole responsibility for amounts due in the Lis Franco lawsuit and MWM asked the court to be dismissed from that action. The judge denied that request. MWM appealed and lost. | |
In his pleadings, Lis Franco alleged that the royalties payable to him were approximately R$42 million. MWM believed the appropriate amount payable was approximately R$16 million. In December 2009, the court appointed expert responsible for the preparation of the royalty calculation filed a report with the court indicating royalty damages of approximately R$70 million. MWM challenged the expert’s calculation. In August 2010, the court asked the parties to consider the appointment of a new expert. MWM agreed with this request but Lis Franco objected and, in September 2010, the court accepted and ratified the expert’s calculation as of May 2010 in the amount of R$74 million and entered judgment against MWM. | |
In September 2010, MWM filed a motion for clarification of the decision which would suspend its enforcement. The Brazilian court denied this motion and MWM appealed the matter to the Rio de Janeiro State Court of Appeals (the "Court of Appeals"). In January 2011, the Court of Appeals granted the appeal and issued an injunction suspending the lower court’s decision and judgment in favor of Lis Franco. In January 2011, MWM merged into IIAA and is now known as IIAA. An expert appointed by the Court of Appeals submitted his calculation report on October 24, 2011, and determined the amount to be R$10.85 million. The parties submitted comments to such report in December 2011, the expert replied to these comments and ratified his previous report in May 2012, and the parties again submitted comments to the expert's reply. The expert reviewed these comments and submitted a complementary report in December 2012 which determined the amount to be R$22 million. The parties submitted comments to the complementary report in January 2013. In May 2013, the Court of Appeals determined the damages amount to be R$25 million (the equivalent of approximately US$11 million at April 30, 2014). Wyeth, Lis Franco and MWM filed motions for clarification against such decision and in July 2013 the Court of Appeals denied all of these motions. MWM, Wyeth and Lis Franco filed a special appeal to the Brasilia Special Court of Appeals on August 20, 2013. The Brasilia Special Court of Appeals has not yet ruled on the special appeal. | |
In parallel, in May 2010, MWM filed a lawsuit in Sao Paulo, Brazil, against Wyeth seeking recognition that Wyeth is liable for any and all liabilities, costs, expenses, and payments related to the Lis Franco lawsuit. In September 2012, the Sao Paulo court ruled in favor of MWM and ordered Wyeth to pay, directly to the Estate of Lis Franco de Toledo and others and jointly with MWM, the amounts of the condemnation, to be determined at the end of the liquidation proceeding. The Sao Paulo court also ordered Wyeth to reimburse MWM for all expenses, including court costs and attorney fees associated with the case. The parties were notified of the decision in October 2012, to which MWM and Wyeth filed motions for clarification of certain issues, and in December 2012, the Sao Paulo court rejected both motions. In January 2013, Wyeth filed an appeal to the San Paulo court's December 2012 decision, and in April 2013, MWM filed an answer to the appeal. The appeal was rejected by the Court of Appeals on September 10, 2013. Wyeth filed a motion for clarification to the Court of Appeals. The motion was rejected by the Court of Appeals on November 5, 2013. | |
In April 2014, the parties entered into a settlement agreement which provides as follows: Wyeth will pay a negotiated settlement amount to the Estate of Lis Franco de Toledo, as well as the contingency fees of their respective attorneys, and upon payment, the Estate of Lis Franco de Toledo and its attorneys will grant Wyeth and MWM a full release. This settlement agreement was submitted to the Superior Court of Appeals and the Court has approved and ratified the settlement agreement, but requested that the Estate of Lis Franco de Toledo to provide evidence that the credit has been duly listed among the assets of the estate and that the respective taxes have been paid. The estate has submitted evidence that the credit has been duly listed among the assets and requested the Superior Court of Appeals to pay the inheritance tax from the Wyeth settlement proceeds. The Superior Court of Appeals has not issued a decision on this request yet. | |
Westbrook vs. Navistar. et. al. | |
In April 2011, a False Claims Act qui tam complaint against Navistar, Inc., Navistar Defense, LLC, a wholly owned subsidiary of the Company ("Navistar Defense"), and unrelated third parties was unsealed by the United States District Court for the Northern District of Texas (the "Court"). The complaint was initially filed under seal in August 2010 by a qui tam relator ("Westbrook") on behalf of the federal government. The complaint alleged violations of the False Claims Act based on allegations that parts of vehicles delivered by Navistar Defense were not painted according to the contract specification, and improper activities in dealing with one of the vendors who painted certain of the vehicle parts. The complaint seeks monetary damages and civil penalties on behalf of the federal government, as well as costs and expenses. After the complaint was unsealed, the U.S. government notified the Court that it declined to intervene at that time. Navistar, Inc. was served with the complaint in July 2011, and a scheduling order and a revised scheduling order was entered by the Court. In December 2011, the Court granted a motion by Navistar, Inc. and Navistar Defense, along with the other named defendants to judicially estop Westbrook and his affiliated company from participating in any recovery from the action, and to substitute his bankruptcy trustee (the "Trustee") as the only person with standing to pursue Westbrook's claims. In March 2012, the Court granted motions by Navistar, Inc., Navistar Defense, and the other named defendants to dismiss the complaint. The dismissal was without prejudice and the Trustee filed an amended complaint in April 2012. In May 2012, Navistar, Inc., Navistar Defense, and the other named defendants filed motions to dismiss the amended complaint. In addition, the parties jointly filed a motion to stay discovery pending resolution of the motions to dismiss. In July 2012, the Court granted all of the defendants' motions to dismiss with prejudice, dismissing all of the claims except the claim against Navistar Defense for retaliation and the claim against Navistar, Inc. for retaliation, which was dismissed without prejudice. Plaintiff was granted leave to file an amended complaint including only the retaliation claims against Navistar Defense and Navistar, Inc. The Trustee did not file a retaliation claim against Navistar, Inc. and voluntarily dismissed without prejudice the retaliation claim against Navistar Defense. The Trustee also filed a motion for reconsideration of the dismissal of the False Claims Act claims against Navistar Defense which the Court denied. The Court issued final judgment dismissing the matter in July 2012. Westbrook filed a notice of appeal to the Fifth Circuit Court of Appeals ("Fifth Circuit") in August 2012 as to the final judgment and the motion for reconsideration as to Navistar Defense only. The Trustee filed a separate notice of appeal to the Fifth Circuit in August 2012 as to several district court orders, including the December 2011 order holding the Trustee, not Westbrook, to be the proper party in the case. In December 2012, Navistar Defense's motion to dismiss Westbrook's appeal was denied "without prejudice to reconsideration by the oral argument panel" by the Fifth Circuit. The Fifth Circuit heard oral arguments on both appeals in November 2013. On May 5, 2014, the Fifth Circuit affirmed the judgment of the Court dismissing the original relator, Westbrook, for lack of standing, and the judgment of the Court dismissing the amended complaint for failure to state a claim. On May 19, 2014, the Relator filed a petition for rehearing/review. Navistar Defense cannot submit a response unless requested to do so by the Fifth Circuit. | |
Based on our assessment of the facts underlying the claims in the above action, 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 Notice of Violation | |
In February 2012, Navistar, Inc. received a Notice of Violation ("NOV") from the U.S. Environmental Protection Agency ("EPA"). The NOV pertains to approximately 7,600 diesel engines which, according to the EPA, were produced by Navistar, Inc. in 2010 and, therefore, should have met the EPA's 2010 emissions standards. Navistar, Inc. previously provided information to the EPA showing that the engines were in fact produced in 2009. The NOV contains the EPA's conclusion that Navistar, Inc.'s alleged production of the engines in 2010 violated the Federal Clean Air Act. The NOV states that the EPA reserves the right to file an administrative complaint or to refer this matter to the U.S. Department of Justice with a recommendation that a civil complaint be filed in federal district court. | |
Based on our assessment of the facts underlying the NOV above, we are unable to provide meaningful quantification of how the final resolution of this matter may impact our future consolidated financial condition, results of operations or cash flows. | |
CARB Notice of Violation | |
In April 2013, Navistar, Inc. received a notice of violation and proposed settlement ("Notice") from the California Air Resources Board ("CARB"). The Notice alleges violations of the California regulations relating to verification of after-treatment devices and proposed civil penalties of approximately $2.5 million, among other proposed settlement terms. Beginning in June 2013, the Company has made settlement offers to CARB and remains in discussions regarding this matter. | |
Based on our assessment of the facts underlying the Notice from CARB, we are unable to provide meaningful quantification of how the final resolution of this matter may impact our future consolidated financial condition, results of operations or cash flows. | |
Shareholder Litigation | |
In March 2013, a putative class action complaint, alleging securities fraud, was filed against us by the Construction Workers Pension Trust Fund - Lake County and Vicinity, on behalf of itself and all other similarly situated purchasers of our common stock between the period of November 3, 2010 and August 1, 2012. A second class action complaint was filed in April 2013 by the Norfolk County Retirement System, individually and on behalf of all other similarly situated purchasers of our common stock between the period of June 9, 2010 and August 1, 2012. A third class action complaint was filed in April 2013 by Jane C. Purnell FBO Purnell Family Trust, on behalf of itself and all other similarly situated purchasers of our common stock between the period of November 3, 2010 and August 1, 2012. Each complaint named us as well as Daniel C. Ustian, our former President and Chief Executive Officer, and Andrew J. Cederoth, our former Executive Vice President and Chief Financial Officer as defendants. These complaints (collectively, the "10b-5 Cases") contain similar factual allegations which include, among other things, that we violated the federal securities laws by knowingly issuing materially false and misleading statements concerning our financial condition and future business prospects and that we misrepresented and omitted material facts in filings with the SEC concerning the timing and likelihood of EPA certification of our EGR technology to meet 2010 EPA emission standards. The plaintiffs in these matters seek compensatory damages and attorneys' fees, among other relief. In May 2013, an order was entered transferring and consolidating all cases before one judge and in July 2013, the Court appointed a lead plaintiff and lead plaintiff's counsel. The lead plaintiff filed a consolidated amended complaint in October 2013. The consolidated amended complaint enlarged the proposed class period to June 9, 2009 through August 1, 2012, and named fourteen additional current and former directors and officers as defendants. The defendants filed Motions to Dismiss on December 17, 2013. The plaintiff filed an Omnibus Opposition to Defendants’ Motions to Dismiss, and a Motion to Strike on January 31, 2014. The defendants filed their opposition to the Motion to Strike on February 18, 2014 and filed a reply in support of their Motions to Dismiss on March 3, 2014. The Court has scheduled a hearing date on the Motions to Dismiss of July 23, 2014. | |
In March 2013, James Gould filed a derivative complaint on behalf of the Company against us and certain of our current and former directors and former officers. The complaint alleges, among other things, that certain of our current and former directors and former officers committed a breach of fiduciary duty, waste of corporate assets and were unjustly enriched in relation to similar factual allegations made in the 10b-5 Cases. The plaintiff in this matter seeks compensatory damages, certain corporate governance reforms, certain injunctive relief, disgorgement of the proceeds of certain defendants' profits from the sale of Company stock, and attorneys' fees, among other relief. Pursuant to a court order in May 2013, this matter has been stayed until the outcome of any motion to dismiss in the 10b-5 Cases. | |
Each of these matters is pending in the United States District Court, Northern District of Illinois. | |
In August 2013, Abbie Griffin filed a derivative complaint in the State of Delaware Court of Chancery, on behalf of the Company and all similarly situated stockholders, against the Company, as the nominal defendant, and certain of our current and former directors and former officers. The complaint alleges, among other things, that certain of our current and former directors and former officers committed a breach of fiduciary duty, in relation to similar factual allegations made in the 10b-5 Cases. The plaintiff in this matter seeks compensatory damages, certain corporate governance reforms, certain injunctive relief, and attorneys' fees, among other relief. Pursuant to a court order in August 2013, this matter has been stayed until the outcome of any motion to dismiss in the 10b-5 Cases. | |
Based on our assessment of the facts underlying these matters described above, we are unable to provide meaningful quantification of how the final resolution of these matters may impact our future consolidated financial condition, results of operations, or cash flows. | |
Deloitte & Touche LLP | |
In April 2011, the Company filed a complaint against Deloitte and Touche LLP ("Deloitte"). In December 2012, the parties reached a settlement. As a result of this settlement in the first quarter of 2013, the Company received cash proceeds of $35 million, which were recorded as a gain to Other expense (income), net, in the Company's Consolidated Statements of Operations. | |
Other | |
U.S. Securities and Exchange Commission ("SEC") Inquiry | |
In June 2012, Navistar received an informal inquiry from the Chicago Office of the Enforcement Division of the SEC seeking a number of categories of documents for the periods dating back to November 1, 2010, relating to various accounting and disclosure issues. We received a formal order of private investigation in July 2012. We have received subsequent subpoenas from the SEC in connection with their inquiry, and we continue our full cooperation with the SEC in this matter. At this time, we are unable to predict the outcome of this matter or provide meaningful quantification of how the final resolution of this matter may impact our future consolidated financial condition, results of operations or cash flows. | |
Non-Conformance Penalties | |
In January 2012, the EPA promulgated the Interim Final Rule establishing non-conformance penalties ("NCPs") for heavy-duty diesel ("HDD") engines, and we began using NCPs for trucks using certain of our HDD engines in 2012. Also in January 2012, the EPA published a Notice of Proposed Rulemaking for a final NCP rule (the "Final Rule"), which proposed to make NCPs available in model years 2012 and later for emissions of NOx above the 0.20g limit for both medium and heavy HDD engines. The EPA promulgated the Final Rule for heavy HDD engines in September 2012. The Final Rule did not include NCPs for medium HDD engines. Certain of the Company's competitors challenged in the D.C. Circuit Court of Appeals both the Final Rule and the certificates issued under the Final Rule. On December 11, 2013, the D.C. Circuit Court issued an opinion vacating the Final Rule. On February 10, 2014, the EPA filed a petition for panel rehearing asking the D.C. Circuit to reconsider that portion of its opinion vacating the Final Rule. In April 2014, EPA withdrew its request for rehearing of the Final Rule decision. The Petitioners simultaneously moved to dismiss their appeals of the 2013 NCP certificates. We expect that these developments will effectively conclude these legal matters. To the extent we are required to pay additional NCPs related to prior period model years, we do not expect them to be material. In the three and six months ended April 30, 2014, the North America Truck segment recorded charges totaling less than $1 million and $2 million, respectively, for NCPs for certain engine sales, compared to charges totaling $12 million and $22 million in the three and six months ended April 30, 2013, respectively. |
Segment_Reporting
Segment Reporting | 6 Months Ended | |||||||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||||||
Segment Reporting | ||||||||||||||||||||||||
The following is a description of our four reporting segments: | ||||||||||||||||||||||||
• | Our North America Truck segment manufactures and distributes Class 4 through 8 trucks, buses, and military vehicles under the International and IC Bus ("IC") brands, along with production of engines under the MaxxForce brand name, in the North America markets that include sales in the U.S., Canada, and Mexico. 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 North America Parts segment provides customers with proprietary products needed to support the International commercial and military truck, IC Bus, MaxxForce engine lines, as well as our other product lines. Our North America Parts segment also provides a wide selection of other standard truck, trailer, and engine aftermarket parts. At April 30, 2014, this segment operated eleven regional parts distribution centers that provide 24-hour availability and shipment. Also included in the North America 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 includes businesses that derive their revenue from outside our core North America markets and primarily consists of the IIAA (formerly MWM) engine and truck operations in Brazil and our export truck and parts businesses. The IIAA engine operations produce diesel engines, primarily under contract manufacturing arrangements, as well as under the MWM brand, for sale to OEMs in South America. | |||||||||||||||||||||||
• | Our Financial Services segment provides retail, wholesale, and lease financing of products sold by the North America Truck and North America Parts segments and their dealers within the U.S. and Mexico, as well as financing for wholesale accounts and selected retail accounts receivable. | |||||||||||||||||||||||
Corporate contains those items that are not included in our four segments. | ||||||||||||||||||||||||
Segment Profit (Loss) | ||||||||||||||||||||||||
We define segment profit (loss) as Net income (loss) from continuing operations attributable to Navistar International Corporation excluding Income tax benefit (expense). The following tables present selected financial information for our reporting segments: | ||||||||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services(A) | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Three Months Ended April 30, 2014 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 1,680 | $ | 611 | $ | 417 | $ | 38 | $ | — | $ | 2,746 | ||||||||||||
Intersegment sales and revenues | 129 | 12 | 6 | 19 | (166 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 1,809 | $ | 623 | $ | 423 | $ | 57 | $ | (166 | ) | $ | 2,746 | |||||||||||
Income (loss) from continuing operations attributable to NIC, net of tax | $ | (134 | ) | $ | 126 | $ | (150 | ) | $ | 24 | $ | (164 | ) | $ | (298 | ) | ||||||||
Income tax expense | — | — | — | — | (23 | ) | (23 | ) | ||||||||||||||||
Segment profit (loss) | $ | (134 | ) | $ | 126 | $ | (150 | ) | $ | 24 | $ | (141 | ) | $ | (275 | ) | ||||||||
Depreciation and amortization | $ | 69 | $ | 4 | $ | 8 | $ | 11 | $ | 7 | $ | 99 | ||||||||||||
Interest expense | — | — | — | 17 | 57 | 74 | ||||||||||||||||||
Equity in income of non-consolidated affiliates | 1 | 1 | 1 | — | — | 3 | ||||||||||||||||||
Capital expenditures(B) | 26 | 1 | 1 | — | 1 | 29 | ||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services(A) | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Three Months Ended April 30, 2013 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 1,395 | $ | 621 | $ | 471 | $ | 39 | $ | — | $ | 2,526 | ||||||||||||
Intersegment sales and revenues | 120 | 14 | 22 | 19 | (175 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 1,515 | $ | 635 | $ | 493 | $ | 58 | $ | (175 | ) | $ | 2,526 | |||||||||||
Income (loss) from continuing operations attributable to NIC, net of tax | $ | (303 | ) | $ | 114 | $ | 32 | $ | 19 | $ | (215 | ) | $ | (353 | ) | |||||||||
Income tax expense | — | — | — | — | (22 | ) | (22 | ) | ||||||||||||||||
Segment profit (loss) | $ | (303 | ) | $ | 114 | $ | 32 | $ | 19 | $ | (193 | ) | $ | (331 | ) | |||||||||
Depreciation and amortization | $ | 114 | $ | 4 | $ | 9 | $ | 10 | $ | 5 | $ | 142 | ||||||||||||
Interest expense | — | — | — | 17 | 73 | 90 | ||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 3 | 2 | (1 | ) | — | — | 4 | |||||||||||||||||
Capital expenditures(B) | 28 | — | 4 | 1 | 2 | 35 | ||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services(A) | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Six Months Ended April 30, 2014 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 2,957 | $ | 1,208 | $ | 712 | $ | 77 | $ | — | $ | 4,954 | ||||||||||||
Intersegment sales and revenues | 217 | 22 | 14 | 35 | (288 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 3,174 | $ | 1,230 | $ | 726 | $ | 112 | $ | (288 | ) | $ | 4,954 | |||||||||||
Income (loss) from continuing operations attributable to NIC, net of tax | $ | (341 | ) | $ | 230 | $ | (183 | ) | $ | 47 | $ | (300 | ) | $ | (547 | ) | ||||||||
Income tax expense | — | — | — | — | (11 | ) | (11 | ) | ||||||||||||||||
Segment profit (loss) | $ | (341 | ) | $ | 230 | $ | (183 | ) | $ | 47 | $ | (289 | ) | $ | (536 | ) | ||||||||
Depreciation and amortization | $ | 127 | $ | 8 | $ | 16 | $ | 21 | $ | 13 | $ | 185 | ||||||||||||
Interest expense | — | — | — | 34 | 122 | 156 | ||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 2 | 2 | (1 | ) | — | — | 3 | |||||||||||||||||
Capital expenditures(B) | 38 | 5 | 4 | 1 | 2 | 50 | ||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services(A) | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Six Months Ended April 30, 2013 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 2,933 | $ | 1,290 | $ | 862 | $ | 78 | $ | — | $ | 5,163 | ||||||||||||
Intersegment sales and revenues | 247 | 32 | 37 | 39 | (355 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 3,180 | $ | 1,322 | $ | 899 | $ | 117 | $ | (355 | ) | $ | 5,163 | |||||||||||
Income (loss) from continuing operations attributable to NIC, net of tax | $ | (404 | ) | $ | 231 | $ | 22 | $ | 41 | $ | (357 | ) | $ | (467 | ) | |||||||||
Income tax expense | — | — | — | — | (37 | ) | (37 | ) | ||||||||||||||||
Segment profit (loss) | $ | (404 | ) | $ | 231 | $ | 22 | $ | 41 | $ | (320 | ) | $ | (430 | ) | |||||||||
Depreciation and amortization | $ | 185 | $ | 8 | $ | 18 | $ | 19 | $ | 12 | $ | 242 | ||||||||||||
Interest expense | — | — | — | 35 | 129 | 164 | ||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 5 | 3 | (5 | ) | — | — | 3 | |||||||||||||||||
Capital expenditures(B) | 93 | 1 | 7 | 1 | 5 | 107 | ||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Segment assets, as of: | ||||||||||||||||||||||||
30-Apr-14 | $ | 2,306 | $ | 671 | $ | 878 | $ | 2,494 | $ | 1,378 | $ | 7,727 | ||||||||||||
31-Oct-13 | 2,250 | 716 | 1,162 | 2,355 | 1,832 | 8,315 | ||||||||||||||||||
_________________________ | ||||||||||||||||||||||||
(A) | Total sales and revenues in the Financial Services segment include interest revenues of $42 million and $82 million for the three and six months ended April 30, 2014, respectively and $46 million and $93 million for the three and six months ended April 30, 2013, respectively. | |||||||||||||||||||||||
(B) | Exclusive of purchases of equipment leased to others. |
Stockholders_Deficit
Stockholders' Deficit | 6 Months Ended | |||||||||||
Apr. 30, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Stockholders' Deficit | ' | |||||||||||
Stockholders' Deficit | ||||||||||||
October 2012 Issuance of Common Stock | ||||||||||||
In October 2012, the Company completed a public offering of 10,666,666 shares of NIC common stock at a price of $18.75 per share and received proceeds, net of underwriting discounts, commissions, and offering expenses, of $192 million. In connection with the public offering, in November 2012, the underwriters elected to exercise a portion of an over-allotment option and purchased an additional 763,534 shares of NIC common stock at a price of $18.75 per share. The Company received proceeds from the exercise of the over-allotment, net of underwriting discounts and commissions, of $14 million in the three months ended January 31, 2013. | ||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||
The following tables display the changes in Accumulated other comprehensive loss, net of tax, by component for the three and six months ended April 30, 2014: | ||||||||||||
(in millions) | Foreign Currency Translation Adjustments | Defined Benefit Plan | Total | |||||||||
Balance as of January 31, 2014 | $ | (137 | ) | $ | (1,724 | ) | $ | (1,861 | ) | |||
Other comprehensive income (loss) before reclassifications | 48 | (1 | ) | 47 | ||||||||
Amounts reclassified out of accumulated other comprehensive loss | — | 26 | 26 | |||||||||
Net current-period other comprehensive income | 48 | 25 | 73 | |||||||||
Balance as of April 30, 2014 | $ | (89 | ) | $ | (1,699 | ) | $ | (1,788 | ) | |||
(in millions) | Foreign Currency Translation Adjustments | Defined Benefit Plan | Total | |||||||||
Balance as of October 31, 2013 | $ | (75 | ) | $ | (1,749 | ) | $ | (1,824 | ) | |||
Other comprehensive loss before reclassifications | (14 | ) | (2 | ) | (16 | ) | ||||||
Amounts reclassified out of accumulated other comprehensive loss | — | 52 | 52 | |||||||||
Net current-period other comprehensive income (loss) | (14 | ) | 50 | 36 | ||||||||
Balance as of April 30, 2014 | $ | (89 | ) | $ | (1,699 | ) | $ | (1,788 | ) | |||
The following table displays the amounts reclassified from Accumulated other comprehensive loss and the affected line item in the Consolidated Statements of Operations: | ||||||||||||
Location in Consolidated | Three Months Ended April 30, 2014 | Six Months Ended April 30, 2014 | ||||||||||
Statements of Operations | ||||||||||||
Defined benefit plans | ||||||||||||
Amortization of prior service costs | Selling, general and administrative expenses | $ | (1 | ) | $ | (2 | ) | |||||
Amortization of actuarial loss | Selling, general and administrative expenses | 27 | 54 | |||||||||
Total before tax | 26 | 52 | ||||||||||
Tax benefit (expense) | — | — | ||||||||||
Net of tax | $ | 26 | $ | 52 | ||||||||
Total reclassifications for the period, net of tax | $ | 26 | $ | 52 | ||||||||
Loss_Per_Share_Attributable_to
Loss Per Share Attributable to Navistar International Corporation | 6 Months Ended | |||||||||||||||
Apr. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Loss Per Share Attributable to Navistar International Corporation | ' | |||||||||||||||
Earnings (Loss) Per Share Attributable to Navistar International Corporation | ||||||||||||||||
The following table presents the information used in the calculation of our basic and diluted income (loss) per share for continuing operations, discontinued operations, and net loss, all attributable to Navistar International Corporation: | ||||||||||||||||
Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||
(in millions, except per share data) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Numerator: | ||||||||||||||||
Amounts attributable to Navistar International Corporation common stockholders: | ||||||||||||||||
Loss from continuing operations, net of tax | $ | (298 | ) | $ | (353 | ) | $ | (547 | ) | $ | (467 | ) | ||||
Income (loss) from discontinued operations, net of tax | 1 | (21 | ) | 2 | (30 | ) | ||||||||||
Net loss | $ | (297 | ) | $ | (374 | ) | $ | (545 | ) | $ | (497 | ) | ||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 81.4 | 80.4 | 81.3 | 80.3 | ||||||||||||
Effect of dilutive securities | — | — | — | — | ||||||||||||
Diluted | 81.4 | 80.4 | 81.3 | 80.3 | ||||||||||||
Earnings (loss) per share attributable to Navistar International Corporation: | ||||||||||||||||
Basic: | ||||||||||||||||
Continuing operations | $ | (3.66 | ) | $ | (4.39 | ) | $ | (6.73 | ) | $ | (5.82 | ) | ||||
Discontinued operations | 0.01 | (0.26 | ) | 0.03 | (0.37 | ) | ||||||||||
Net loss | $ | (3.65 | ) | $ | (4.65 | ) | $ | (6.70 | ) | $ | (6.19 | ) | ||||
Diluted: | ||||||||||||||||
Continuing operations | $ | (3.66 | ) | $ | (4.39 | ) | $ | (6.73 | ) | $ | (5.82 | ) | ||||
Discontinued operations | 0.01 | (0.26 | ) | 0.03 | (0.37 | ) | ||||||||||
Net loss | $ | (3.65 | ) | $ | (4.65 | ) | $ | (6.70 | ) | $ | (6.19 | ) | ||||
The conversion rate on our 2014 Convertible Notes is 19.891 shares of common stock per $1,000 principal amount of 2014 Convertible Notes, equivalent to an initial conversion price of $50.27 per share of common stock. In connection with the sale of the 2014 Convertible Notes, we sold warrants to various counterparties to purchase shares of our common stock from us at an exercise price of $60.14 per share. The 2014 Convertible Notes and warrants are anti-dilutive when calculating diluted earnings per share when our average stock price is less than $50.27 and $60.14, respectively. During the second quarter of 2014, the Company unwound warrants representing 6.5 million shares associated with the repurchased 2014 Convertible Notes. | ||||||||||||||||
We also purchased call options in connection with the sale of the 2014 Convertible Notes, covering 11.3 million shares at an exercise price of $50.27 per share, which are intended to minimize share dilution associated with the 2014 Convertible Notes; however under accounting guidance, these call options cannot be utilized to offset the dilution of the 2014 Convertible Notes for determining diluted earnings per share as they are anti-dilutive. During the second quarter of 2014, call options representing 8.0 million shares expired or were unwound by the Company. | ||||||||||||||||
The conversion rate on our 4.50% Senior Subordinated Convertible Notes, due 2018 (the "2018 Convertible Notes"), is 17.1233 shares of common stock per $1,000 principal amount of 2018 Convertible Notes, equivalent to an initial conversion price of approximately $58.40 per share of common stock. The 2018 Convertible Notes are anti-dilutive when calculating diluted earnings per share when our average stock price is less than $58.40. | ||||||||||||||||
The conversion rate on our 2019 Convertible Notes is 18.4946 shares of common stock per $1,000 principal amount of 2019 Convertible Notes, equivalent to an initial conversion price of approximately $54.07 per share of common stock. The 2019 Convertible Notes are anti-dilutive when calculating diluted earnings per share when our average stock price is less than $54.07. | ||||||||||||||||
The computation of diluted earnings per share also excludes outstanding options and other common stock equivalents in periods where inclusion of such potential common stock instruments would be anti-dilutive. | ||||||||||||||||
For the three and six months ended April 30, 2014 and 2013, no dilutive securities were included in the computation of diluted loss per share since they would have been anti-dilutive due to the net loss attributable to Navistar International Corporation. Additionally, certain securities would have been excluded from the computation of earnings per share, as our average stock price was less than their respective exercise prices. For the three and six months ended April 30, 2014 the aggregate shares not included were 24.0 million and 27.3 million, respectively. For the three and six months ended April 30, 2013, the aggregate shares not included were 30.0 million and 29.0 million, respectively. | ||||||||||||||||
For the three months ended April 30, 2014, the aggregate shares not included in the computation of earnings per share were primarily comprised of 4.8 million shares related to warrants, 3.3 million shares related to the 2014 Convertible Notes, 3.4 million shares related to the 2018 Convertible Notes, and 7.6 million shares related to the 2019 Convertible Notes. | ||||||||||||||||
For the six months ended April 30, 2014, the aggregate shares not included in the computation of earnings per share were primarily comprised of 8.1 million shares related to the warrants, 7.3 million shares related to the 2014 Convertible Notes, 3.4 million shares related to the 2018 Convertible Notes, and 3.8 million shares related to the 2019 Convertible Notes. | ||||||||||||||||
For both the three and six months ended April 30, 2013, the aggregate shares not included in the computation of earnings per share were primarily comprised of 11.3 million shares related to the warrants and 11.3 million shares related to the 2014 Convertible Notes. |
Condensed_Consolidating_Guaran
Condensed Consolidating Guarantor and Non-Guarantor Financial Information | 6 Months Ended | |||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||
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 April 30, 2014 and October 31, 2013, condensed consolidating statements of operations and condensed consolidating statements of comprehensive income (loss) for the three and six months ended April 30, 2014 and 2013, and condensed consolidating statements of cash flows for the six months ended April 30, 2014 and 2013. | ||||||||||||||||||||
The information is presented as a result of Navistar, Inc.’s guarantee, exclusive of its subsidiaries, of NIC’s indebtedness under our 8.25% Senior Notes, due 2021, and obligations under our Loan Agreement related to the 6.5% Tax Exempt Bonds, due 2040. Navistar, Inc. is a direct wholly-owned subsidiary of NIC. None of NIC’s other subsidiaries guarantee any of these notes or bonds. The guarantees are "full and unconditional", as those terms are used in Regulation S-X Rule 3-10, except that the guarantees will be automatically released in certain customary circumstances, such as when the subsidiary is sold or all of the assets of the subsidiary are sold, the capital stock is sold, when the subsidiary is designated as an "unrestricted subsidiary" for purposes of the respective indenture for each of the 8.25% Senior Notes, due 2021, and the 6.5% Tax Exempt Bonds, due 2040, upon liquidation or dissolution of the subsidiary or upon legal or covenant defeasance, or satisfaction and discharge of the notes or bonds. Separate financial statements and other disclosures concerning Navistar, Inc. have not been presented because management believes that such information is not material to investors. Within this disclosure only, "NIC" includes the financial results of the parent company only, with all of its wholly-owned subsidiaries accounted for under the equity method. Likewise, "Navistar, Inc.," for purposes of this disclosure only, includes the consolidated financial results of its wholly-owned subsidiaries accounted for under the equity method and its operating units accounted for on a consolidated basis. "Non-Guarantor Subsidiaries" includes the combined financial results of all other non-guarantor subsidiaries. "Eliminations and Other" includes all eliminations and reclassifications to reconcile to the consolidated financial statements. NIC files a consolidated U.S. federal income tax return that includes Navistar, Inc. and its U.S. subsidiaries. Navistar, Inc. has a tax allocation agreement ("Tax Agreement") with NIC which requires Navistar, Inc. to compute its separate federal income tax liability and remit any resulting tax liability to NIC. Tax benefits that may arise from net operating losses of Navistar, Inc. are not refunded to Navistar, Inc. but may be used to offset future required tax payments under the Tax Agreement. The effect of the Tax Agreement is to allow NIC, the parent company, rather than Navistar, Inc., to utilize current U.S. taxable losses of Navistar, Inc. and all other direct or indirect subsidiaries of NIC. | ||||||||||||||||||||
Condensed Consolidating Statement of Operations for the Three Months Ended April 30, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Sales and revenues, net | $ | — | $ | 1,893 | $ | 2,061 | $ | (1,208 | ) | $ | 2,746 | |||||||||
Costs of products sold | — | 1,797 | 1,862 | (1,191 | ) | 2,468 | ||||||||||||||
Restructuring charges | — | 8 | — | — | 8 | |||||||||||||||
Asset impairment charges | — | — | 153 | (2 | ) | 151 | ||||||||||||||
All other operating expenses (income) | 41 | 273 | 89 | (17 | ) | 386 | ||||||||||||||
Total costs and expenses | 41 | 2,078 | 2,104 | (1,210 | ) | 3,013 | ||||||||||||||
Equity in income (loss) of affiliates | (269 | ) | (141 | ) | 2 | 411 | 3 | |||||||||||||
Income (loss) before income taxes | (310 | ) | (326 | ) | (41 | ) | 413 | (264 | ) | |||||||||||
Income tax benefit (expense) | 13 | (8 | ) | (28 | ) | — | (23 | ) | ||||||||||||
Earnings (loss) from continuing operations | (297 | ) | (334 | ) | (69 | ) | 413 | (287 | ) | |||||||||||
Income from discontinued operations, net of tax | — | — | 1 | — | 1 | |||||||||||||||
Net income (loss) | (297 | ) | (334 | ) | (68 | ) | 413 | (286 | ) | |||||||||||
Less: Net income attributable to non-controlling interests | — | — | 11 | — | 11 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (297 | ) | $ | (334 | ) | $ | (79 | ) | $ | 413 | $ | (297 | ) | ||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended April 30, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (297 | ) | $ | (334 | ) | $ | (79 | ) | $ | 413 | $ | (297 | ) | ||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Foreign currency translation adjustment | 48 | — | 48 | (48 | ) | 48 | ||||||||||||||
Defined benefit plans (net of tax of $0 tax for all entities) | 25 | 25 | — | (25 | ) | 25 | ||||||||||||||
Total other comprehensive income (loss) | 73 | 25 | 48 | (73 | ) | 73 | ||||||||||||||
Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (224 | ) | $ | (309 | ) | $ | (31 | ) | $ | 340 | $ | (224 | ) | ||||||
Condensed Consolidating Statement of Operations for the Six Months Ended April 30, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Sales and revenues, net | $ | — | $ | 3,317 | $ | 3,790 | $ | (2,153 | ) | $ | 4,954 | |||||||||
Costs of products sold | — | 3,222 | 3,393 | (2,133 | ) | 4,482 | ||||||||||||||
Restructuring charges | — | 10 | 1 | — | 11 | |||||||||||||||
Asset impairment charges | — | — | 171 | (2 | ) | 169 | ||||||||||||||
All other operating expenses (income) | 77 | 514 | 248 | (28 | ) | 811 | ||||||||||||||
Total costs and expenses | 77 | 3,746 | 3,813 | (2,163 | ) | 5,473 | ||||||||||||||
Equity in income (loss) of affiliates | (481 | ) | (152 | ) | 1 | 635 | 3 | |||||||||||||
Income (loss) before income taxes | (558 | ) | (581 | ) | (22 | ) | 645 | (516 | ) | |||||||||||
Income tax benefit (expense) | 13 | (1 | ) | (23 | ) | — | (11 | ) | ||||||||||||
Earnings (loss) from continuing operations | (545 | ) | (582 | ) | (45 | ) | 645 | (527 | ) | |||||||||||
Income from discontinued operations, net of tax | — | — | 2 | — | 2 | |||||||||||||||
Net income (loss) | (545 | ) | (582 | ) | (43 | ) | 645 | (525 | ) | |||||||||||
Less: Net income attributable to non-controlling interests | — | — | 20 | — | 20 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (545 | ) | $ | (582 | ) | $ | (63 | ) | $ | 645 | $ | (545 | ) | ||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Six Months Ended April 30, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (545 | ) | $ | (582 | ) | $ | (63 | ) | $ | 645 | $ | (545 | ) | ||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Foreign currency translation adjustment | (14 | ) | — | (14 | ) | 14 | (14 | ) | ||||||||||||
Defined benefit plans (net of tax of $(1), $0, $(1), $1, and, $(1), respectively) | 50 | 50 | — | (50 | ) | 50 | ||||||||||||||
Total other comprehensive income (loss) | 36 | 50 | (14 | ) | (36 | ) | 36 | |||||||||||||
Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (509 | ) | $ | (532 | ) | $ | (77 | ) | $ | 609 | $ | (509 | ) | ||||||
Condensed Consolidating Balance Sheet as of April 30, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 280 | $ | 44 | $ | 270 | $ | — | $ | 594 | ||||||||||
Marketable securities | 193 | — | 341 | — | 534 | |||||||||||||||
Restricted cash | 18 | 4 | 90 | — | 112 | |||||||||||||||
Finance and other receivables, net | 3 | 136 | 2,553 | (10 | ) | 2,682 | ||||||||||||||
Inventories | — | 749 | 648 | (13 | ) | 1,384 | ||||||||||||||
Investments in non-consolidated affiliates | (6,570 | ) | 6,433 | 66 | 140 | 69 | ||||||||||||||
Property and equipment, net | — | 899 | 790 | 4 | 1,693 | |||||||||||||||
Goodwill | — | — | 38 | — | 38 | |||||||||||||||
Deferred taxes, net | 1 | 13 | 178 | — | 192 | |||||||||||||||
Other | 38 | 156 | 237 | (2 | ) | 429 | ||||||||||||||
Total assets | $ | (6,037 | ) | $ | 8,434 | $ | 5,211 | $ | 119 | $ | 7,727 | |||||||||
Liabilities and stockholders’ equity (deficit) | ||||||||||||||||||||
Debt | $ | 2,114 | $ | 967 | $ | 2,024 | $ | (5 | ) | $ | 5,100 | |||||||||
Postretirement benefits liabilities | — | 2,340 | 234 | — | 2,574 | |||||||||||||||
Amounts due to (from) affiliates | (7,412 | ) | 11,392 | (4,128 | ) | 148 | — | |||||||||||||
Other liabilities | 3,367 | 624 | 210 | (76 | ) | 4,125 | ||||||||||||||
Total liabilities | (1,931 | ) | 15,323 | (1,660 | ) | 67 | 11,799 | |||||||||||||
Redeemable equity securities | 2 | — | — | — | 2 | |||||||||||||||
Stockholders’ equity attributable to non-controlling interest | — | — | 34 | — | 34 | |||||||||||||||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (4,108 | ) | (6,889 | ) | 6,837 | 52 | (4,108 | ) | ||||||||||||
Total liabilities and stockholders’ equity (deficit) | $ | (6,037 | ) | $ | 8,434 | $ | 5,211 | $ | 119 | $ | 7,727 | |||||||||
Condensed Consolidating Statement of Cash Flows for the Six Months Ended April 30, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net cash provided by (used in) operations | $ | (458 | ) | $ | (961 | ) | $ | 85 | $ | 1,008 | $ | (326 | ) | |||||||
Cash flows from investment activities | ||||||||||||||||||||
Net change in restricted cash and cash equivalents | 5 | (1 | ) | (25 | ) | — | (21 | ) | ||||||||||||
Net sales of marketable securities | 389 | — | (93 | ) | — | 296 | ||||||||||||||
Capital expenditures and purchase of equipment leased to others | — | (67 | ) | (91 | ) | — | (158 | ) | ||||||||||||
Other investing activities | — | 8 | 17 | — | 25 | |||||||||||||||
Net cash provided by (used in) investment activities | 394 | (60 | ) | (192 | ) | — | 142 | |||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Net borrowings (repayments) of debt | (10 | ) | 959 | 68 | (1,006 | ) | 11 | |||||||||||||
Other financing activities | 18 | 34 | (30 | ) | — | 22 | ||||||||||||||
Net cash provided by (used in) financing activities | 8 | 993 | 38 | (1,006 | ) | 33 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (8 | ) | (2 | ) | (10 | ) | ||||||||||||
Decrease in cash and cash equivalents | (56 | ) | (28 | ) | (77 | ) | — | (161 | ) | |||||||||||
Cash and cash equivalents at beginning of the period | 336 | 72 | 347 | — | 755 | |||||||||||||||
Cash and cash equivalents at end of the period | $ | 280 | $ | 44 | $ | 270 | $ | — | $ | 594 | ||||||||||
Condensed Consolidating Statement of Operations for the Three Months Ended April 30, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Sales and revenues, net | $ | — | $ | 1,493 | $ | 2,293 | $ | (1,260 | ) | $ | 2,526 | |||||||||
Costs of products sold | — | 1,622 | 1,987 | (1,246 | ) | 2,363 | ||||||||||||||
Restructuring charges | — | 4 | 2 | — | 6 | |||||||||||||||
All other operating expenses (income) | (48 | ) | 349 | 125 | 57 | 483 | ||||||||||||||
Total costs and expenses | (48 | ) | 1,975 | 2,114 | (1,189 | ) | 2,852 | |||||||||||||
Equity in income (loss) of affiliates | (422 | ) | 50 | 1 | 375 | 4 | ||||||||||||||
Income (loss) before income taxes | (374 | ) | (432 | ) | 180 | 304 | (322 | ) | ||||||||||||
Income tax expense | — | (1 | ) | (21 | ) | — | (22 | ) | ||||||||||||
Earnings (loss) from continuing operations | (374 | ) | (433 | ) | 159 | 304 | (344 | ) | ||||||||||||
Loss from discontinued operations, net of tax | — | — | (21 | ) | — | (21 | ) | |||||||||||||
Net income (loss) | (374 | ) | (433 | ) | 138 | 304 | (365 | ) | ||||||||||||
Less: Net income attributable to non-controlling interests | — | — | 9 | — | 9 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (374 | ) | $ | (433 | ) | $ | 129 | $ | 304 | $ | (374 | ) | |||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended April 30, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (374 | ) | $ | (433 | ) | $ | 129 | $ | 304 | $ | (374 | ) | |||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Foreign currency translation adjustment | 3 | — | 2 | (2 | ) | 3 | ||||||||||||||
Defined benefit plans (net of tax of $1, $0, $1, $(1), and, $1, respectively) | 40 | 35 | 5 | (40 | ) | 40 | ||||||||||||||
Total other comprehensive income (loss) | 43 | 35 | 7 | (42 | ) | 43 | ||||||||||||||
Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (331 | ) | $ | (398 | ) | $ | 136 | $ | 262 | $ | (331 | ) | |||||||
Condensed Consolidating Statement of Operations for the Six Months Ended April 30, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Sales and revenues, net | $ | — | $ | 3,102 | $ | 4,551 | $ | (2,490 | ) | $ | 5,163 | |||||||||
Costs of products sold | — | 3,217 | 3,896 | (2,464 | ) | 4,649 | ||||||||||||||
Restructuring charges | — | 4 | 4 | — | 8 | |||||||||||||||
All other operating expenses (income) | (27 | ) | 580 | 317 | 45 | 915 | ||||||||||||||
Total costs and expenses | (27 | ) | 3,801 | 4,217 | (2,419 | ) | 5,572 | |||||||||||||
Equity in income (loss) of affiliates | (524 | ) | 104 | (1 | ) | 424 | 3 | |||||||||||||
Income (loss) before income taxes | (497 | ) | (595 | ) | 333 | 353 | (406 | ) | ||||||||||||
Income tax expense | — | (12 | ) | (25 | ) | — | (37 | ) | ||||||||||||
Earnings (loss) from continuing operations | (497 | ) | (607 | ) | 308 | 353 | (443 | ) | ||||||||||||
Loss from discontinued operations, net of tax | — | — | (30 | ) | — | (30 | ) | |||||||||||||
Net income (loss) | (497 | ) | (607 | ) | 278 | 353 | (473 | ) | ||||||||||||
Less: Net income attributable to non-controlling interests | — | — | 24 | — | 24 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (497 | ) | $ | (607 | ) | $ | 254 | $ | 353 | $ | (497 | ) | |||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Six Months Ended April 30, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (497 | ) | $ | (607 | ) | $ | 254 | $ | 353 | $ | (497 | ) | |||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Foreign currency translation adjustment | 20 | — | 20 | (20 | ) | 20 | ||||||||||||||
Defined benefit plans (net of tax of $1, $0, $1, $(1), and, $1, respectively) | 78 | 70 | 8 | (78 | ) | 78 | ||||||||||||||
Total other comprehensive income (loss) | 98 | 70 | 28 | (98 | ) | 98 | ||||||||||||||
Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (399 | ) | $ | (537 | ) | $ | 282 | $ | 255 | $ | (399 | ) | |||||||
Condensed Consolidating Balance Sheet as of October 31, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 336 | $ | 72 | $ | 347 | $ | — | $ | 755 | ||||||||||
Marketable securities | 581 | 1 | 248 | — | 830 | |||||||||||||||
Restricted cash | 23 | 3 | 65 | — | 91 | |||||||||||||||
Finance and other receivables, net | 3 | 148 | 2,561 | (11 | ) | 2,701 | ||||||||||||||
Inventories | — | 621 | 608 | (19 | ) | 1,210 | ||||||||||||||
Investments in non-consolidated affiliates | (6,123 | ) | 6,600 | 73 | (473 | ) | 77 | |||||||||||||
Property and equipment, net | — | 937 | 807 | (3 | ) | 1,741 | ||||||||||||||
Goodwill | — | — | 184 | — | 184 | |||||||||||||||
Deferred taxes, net | — | 13 | 219 | (1 | ) | 231 | ||||||||||||||
Other | 36 | 156 | 304 | (1 | ) | 495 | ||||||||||||||
Total assets | $ | (5,144 | ) | $ | 8,551 | $ | 5,416 | $ | (508 | ) | $ | 8,315 | ||||||||
Liabilities and stockholders’ equity (deficit) | ||||||||||||||||||||
Debt | $ | 2,125 | $ | 1,002 | $ | 1,960 | $ | (2 | ) | $ | 5,085 | |||||||||
Postretirement benefits liabilities | — | 2,407 | 245 | — | 2,652 | |||||||||||||||
Amounts due to (from) affiliates | (6,988 | ) | 10,846 | (3,932 | ) | 74 | — | |||||||||||||
Other liabilities | 3,362 | 646 | 250 | (79 | ) | 4,179 | ||||||||||||||
Total liabilities | (1,501 | ) | 14,901 | (1,477 | ) | (7 | ) | 11,916 | ||||||||||||
Redeemable equity securities | 4 | — | — | — | 4 | |||||||||||||||
Stockholders’ equity attributable to non-controlling interest | — | — | 44 | — | 44 | |||||||||||||||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (3,647 | ) | (6,350 | ) | 6,849 | (501 | ) | (3,649 | ) | |||||||||||
Total liabilities and stockholders’ equity (deficit) | $ | (5,144 | ) | $ | 8,551 | $ | 5,416 | $ | (508 | ) | $ | 8,315 | ||||||||
Condensed Consolidating Statement of Cash Flows for the Six Months Ended April 30, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net cash provided by (used in) operations | $ | (648 | ) | $ | (288 | ) | $ | 222 | $ | 671 | $ | (43 | ) | |||||||
Cash flows from investment activities | ||||||||||||||||||||
Net change in restricted cash and cash equivalents | (1 | ) | — | 45 | — | 44 | ||||||||||||||
Net purchases of marketable securities | (186 | ) | — | (81 | ) | — | (267 | ) | ||||||||||||
Capital expenditures and purchase of equipment leased to others | — | (304 | ) | (98 | ) | — | (402 | ) | ||||||||||||
Other investing activities | — | 9 | 40 | — | 49 | |||||||||||||||
Net cash used in investment activities | (187 | ) | (295 | ) | (94 | ) | — | (576 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Net borrowings (repayments) of debt | 327 | 301 | (179 | ) | (671 | ) | (222 | ) | ||||||||||||
Other financing activities | 24 | 263 | (23 | ) | — | 264 | ||||||||||||||
Net cash provided by (used in) financing activities | 351 | 564 | (202 | ) | (671 | ) | 42 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (5 | ) | — | (5 | ) | |||||||||||||
Decrease in cash and cash equivalents | (484 | ) | (19 | ) | (79 | ) | — | (582 | ) | |||||||||||
Cash and cash equivalents at beginning of the period | 702 | 55 | 330 | — | 1,087 | |||||||||||||||
Cash and cash equivalents at end of the period | $ | 218 | $ | 36 | $ | 251 | $ | — | $ | 505 | ||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Basis of Presentation and Consolidation | ' | |||||||
Basis of Presentation and Consolidation | ||||||||
The accompanying unaudited consolidated financial statements include the assets, liabilities, and results of operations of our Manufacturing operations, which include majority-owned dealers ("Dealcors"), and our Financial Services operations, including VIEs of which we are the primary beneficiary. The effects of transactions among consolidated entities have been eliminated to arrive at the consolidated amounts. | ||||||||
Certain reclassifications were made to prior periods' amounts to conform to the 2014 presentation, which relates to the realignment of our reporting segments that became effective during the fourth quarter of 2013. | ||||||||
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, 2013, 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 the VIE's economic performance and have the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Accordingly, we include in our consolidated financial statements the assets and liabilities and results of operations of those entities, even though we may not own a majority voting interest. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather they represent claims against the specific assets of these VIEs. Assets of these entities are not readily available to satisfy claims against our general assets. | ||||||||
We are the primary beneficiary of our Blue Diamond Parts ("BDP") and Blue Diamond Truck ("BDT") joint ventures with Ford. As a result, our Consolidated Balance Sheets include assets of $298 million and $323 million and liabilities of $225 million and $188 million as of April 30, 2014 and October 31, 2013, respectively, from BDP and BDT, including $79 million and $56 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 and BDT do not have recourse to our general credit. In December 2011, Ford notified the Company of its intention to dissolve the BDT joint venture effective December 2014. In September 2013, we agreed with Ford to extend the BDT joint venture through February 2015. We do not expect the dissolution of the BDT joint venture to have a material impact on our consolidated financial statements. | ||||||||
Our Financial Services segment consolidates several VIEs. As a result, our Consolidated Balance Sheets include assets of $1.1 billion and $989 million as of April 30, 2014 and October 31, 2013, respectively, and liabilities of $844 million and $778 million as of April 30, 2014 and October 31, 2013, respectively, all of which are involved in securitizations that are treated as asset-backed debt. In addition, our Consolidated Balance Sheets include assets of $66 million and $61 million and corresponding liabilities of $51 million and $49 million as of April 30, 2014 and October 31, 2013, respectively, which are related to other secured transactions that do not qualify for sale accounting treatment, and therefore, are treated as borrowings secured by operating and finance leases. Investors that hold securitization debt have a priority claim on the cash flows generated by their respective securitized assets to the extent that the related trusts 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 loss (income) of non-consolidated affiliates includes our share of the net income (loss) of these entities. | ||||||||
Equity Method Investments, Policy [Policy Text Block] | ' | |||||||
We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in loss (income) of non-consolidated affiliates includes our share of the net income (loss) of these entities. | ||||||||
Product Warranty Liability | ' | |||||||
Product Warranty Liability | ||||||||
The following table presents accrued product warranty and deferred warranty revenue activity: | ||||||||
Six Months Ended April 30, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Balance at beginning of period | $ | 1,349 | $ | 1,118 | ||||
Costs accrued and revenues deferred | 153 | 226 | ||||||
Currency translation adjustment | (1 | ) | — | |||||
Adjustments to pre-existing warranties(A)(B) | 94 | 204 | ||||||
Payments and revenues recognized | (272 | ) | (327 | ) | ||||
Balance at end of period | 1,323 | 1,221 | ||||||
Less: Current portion | 626 | 647 | ||||||
Noncurrent accrued product warranty and deferred warranty revenue | $ | 697 | $ | 574 | ||||
_________________________ | ||||||||
(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 first quarter of 2014, we recorded adjustments for changes in estimates of $52 million or $0.64 per diluted share. In the second quarter of 2014, we recorded adjustments for changes in estimates of $42 million, or $0.52 per diluted share. The impact of income taxes on the 2014 adjustments is not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. | ||||||||
In the first quarter of 2013, we recorded adjustments for changes in estimates of $40 million or $0.50 per diluted share. In the second quarter of 2013, we recorded adjustments for changes in estimates of $164 million, or $2.04 per diluted share. The impact of income taxes on the 2013 adjustments is not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. | ||||||||
(B) | In the first quarter of 2013, we recognized $13 million of charges for adjustments to pre-existing warranties for a specific warranty issue related to component parts from a supplier. Also during the first quarter of 2013, we reached an agreement for reimbursement from this supplier for this amount and other costs previously accrued. As a result of this agreement, we recognized a recovery of $27 million within Costs of products sold and recorded a receivable within Other current assets. In the second quarter of 2013, we recognized a warranty recovery of $13 million within Loss from discontinued operations, net of tax and recorded a receivable within Other current assets. | |||||||
Extended Warranty Programs | ||||||||
The amount of deferred revenue related to extended warranty programs was $437 million and $420 million at April 30, 2014 and October 31, 2013, respectively. Revenue recognized under our extended warranty programs was $33 million and $60 million in the three and six months ended April 30, 2014, respectively, and $11 million and $40 million for the three and six months ended April 30, 2013, respectively. In the second quarter of 2014 and 2013, the North America Truck segment recognized charges of $34 million and $33 million, respectively, related to the extended warranty contracts on our 2010 emission standard MaxxForce Big-Bore engines. The majority of these changes are included in the adjustments to pre-existing warranties. | ||||||||
Use of estimates | ' | |||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, pension and other postretirement benefits, allowance for doubtful accounts, income tax contingency accruals and valuation allowances, product warranty accruals, asbestos and other product liability accruals, asset impairment charges, and litigation-related accruals. Actual results could differ from our estimates. | ||||||||
Concentration Risks | ' | |||||||
Concentration Risks | ||||||||
Our financial condition, results of operations, and cash flows are subject to concentration risks related to concentrations of our union employees. As of April 30, 2014, approximately 5,700, or 65%, of our hourly workers and approximately 300, or 4%, of our salaried workers are represented by labor unions and are covered by collective bargaining agreements. Our current master collective bargaining agreement with the UAW will expire in October 2014. Our future operations may be affected by changes in governmental procurement policies, budget considerations, changing national defense requirements, and global, political, regulatory and economic developments in the U.S. and certain foreign countries (primarily Canada, Mexico, and Brazil). | ||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | ' | |||||||
Goodwill and Indefinite-Lived Intangible Assets | ||||||||
Goodwill represents the excess of the cost of an acquired business over the amounts assigned to the net assets. Goodwill is not amortized but is tested for impairment at a reporting unit level on an annual basis or more frequently, if circumstances change or an event occurs that would more likely than not reduce the fair value of a reporting unit below its carrying amount. | ||||||||
Qualitative factors may be assessed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the qualitative assessment indicates that the carrying amount is more likely than not higher than the fair value, goodwill is tested for impairment based on a two-step test. The first step compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired, thus the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test shall be performed to measure the amount of impairment loss, if any. The second step compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. | ||||||||
Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions, and selecting an appropriate control premium. The income approach is based on discounted cash flows which are derived from internal forecasts and economic expectations for each respective reporting unit. | ||||||||
An intangible asset determined to have an indefinite useful life is not amortized until its useful life is determined to no longer be indefinite. Indefinite-lived intangible assets are evaluated each reporting period to determine whether events and circumstances continue to support an indefinite useful life. Indefinite-lived intangible assets are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test consists of a comparison of the fair value of the indefinite-lived intangible asset with its carrying amount. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. | ||||||||
Significant judgment is applied when evaluating if an intangible asset has a finite useful life. In addition, for indefinite-lived intangible assets, significant judgment is applied in testing for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, and incorporating general economic and market conditions. | ||||||||
During the second quarter of 2014, the economic downturn in Brazil resulted in the continued decline in actual and forecasted results for the Brazilian engine reporting unit with goodwill of $142 million and an indefinite-lived intangible asset, trademark, of $43 million. As a result, we performed an impairment analysis in the second quarter utilizing the income approach, based on discounted cash flows, which are derived from internal forecasts and economic expectations. It was determined that the carrying value of the Brazilian engine reporting unit, including goodwill, exceeded its fair value. As a result we compared the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. A decrease in the enterprise value of the reporting unit coupled with appreciation in the value of certain tangible assets, which are not recognized for accounting purposes, resulted in the determination that the entire $142 million of goodwill was impaired. In addition, we determined that the related trademark was impaired and recognized an impairment charge of $7 million. The non-cash impairment charges were included in Asset impairment charges in the Company's Consolidated Statements of Operations. The Brazilian engine reporting unit is included in the Global Operations segment. | ||||||||
Recently Issued and Adopted Accounting Standards | ' | |||||||
Recently Adopted Accounting Standards | ||||||||
In the six months ended April 30, 2014, the Company has not adopted any new accounting guidance that has had a material impact on our consolidated financial statements. | ||||||||
Recently Issued Accounting Standards | ||||||||
In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. Our effective date is November 1, 2017. We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Schedule of Accrued Product Warranty and Deferred Warranty Revenue | ' | |||||||
The following table presents accrued product warranty and deferred warranty revenue activity: | ||||||||
Six Months Ended April 30, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Balance at beginning of period | $ | 1,349 | $ | 1,118 | ||||
Costs accrued and revenues deferred | 153 | 226 | ||||||
Currency translation adjustment | (1 | ) | — | |||||
Adjustments to pre-existing warranties(A)(B) | 94 | 204 | ||||||
Payments and revenues recognized | (272 | ) | (327 | ) | ||||
Balance at end of period | 1,323 | 1,221 | ||||||
Less: Current portion | 626 | 647 | ||||||
Noncurrent accrued product warranty and deferred warranty revenue | $ | 697 | $ | 574 | ||||
_________________________ | ||||||||
(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 first quarter of 2014, we recorded adjustments for changes in estimates of $52 million or $0.64 per diluted share. In the second quarter of 2014, we recorded adjustments for changes in estimates of $42 million, or $0.52 per diluted share. The impact of income taxes on the 2014 adjustments is not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. | ||||||||
In the first quarter of 2013, we recorded adjustments for changes in estimates of $40 million or $0.50 per diluted share. In the second quarter of 2013, we recorded adjustments for changes in estimates of $164 million, or $2.04 per diluted share. The impact of income taxes on the 2013 adjustments is not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. | ||||||||
(B) | In the first quarter of 2013, we recognized $13 million of charges for adjustments to pre-existing warranties for a specific warranty issue related to component parts from a supplier. Also during the first quarter of 2013, we reached an agreement for reimbursement from this supplier for this amount and other costs previously accrued. As a result of this agreement, we recognized a recovery of $27 million within Costs of products sold and recorded a receivable within Other current assets. In the second quarter of 2013, we recognized a warranty recovery of $13 million within Loss from discontinued operations, net of tax and recorded a receivable within Other current assets. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 6 Months Ended | |||||||||||||||
Apr. 30, 2014 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||
Statements of Operations for Discontinued Operations [Table Text Block] | ' | |||||||||||||||
The following table summarizes the discontinued operations activity in the Company's Consolidated Statements of Operations: | ||||||||||||||||
Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Sales and revenues, net | $ | — | $ | 36 | $ | — | $ | 70 | ||||||||
Income (loss) before income taxes | $ | 1 | $ | (21 | ) | $ | 2 | $ | (30 | ) | ||||||
Income tax benefit (expense) | — | — | — | — | ||||||||||||
Income (loss) from discontinued operations, net of tax | $ | 1 | $ | (21 | ) | $ | 2 | $ | (30 | ) | ||||||
Restructuring_and_Impairments_
Restructuring and Impairments (Tables) | 6 Months Ended | |||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | |||||||||||||||||||
The following tables summarize the activity in the restructuring liability, which includes amounts related to discontinued operations and excludes pension and other postretirement contractual termination benefits: | ||||||||||||||||||||
(in millions) | Balance at October 31, 2013 | Additions | Payments | Adjustments | Balance at April 30, 2014 | |||||||||||||||
Employee termination charges | $ | 15 | $ | 9 | $ | (8 | ) | $ | — | $ | 16 | |||||||||
Employee relocation costs | — | 1 | (1 | ) | — | — | ||||||||||||||
Lease vacancy | 18 | 1 | (4 | ) | — | 15 | ||||||||||||||
Other | 1 | — | (2 | ) | — | (1 | ) | |||||||||||||
Restructuring liability | $ | 34 | $ | 11 | $ | (15 | ) | $ | — | $ | 30 | |||||||||
(in millions) | Balance at | Additions | Payments | Adjustments | Balance at April 30, 2013 | |||||||||||||||
October 31, 2012 | ||||||||||||||||||||
Employee termination charges | $ | 72 | $ | 1 | $ | (44 | ) | $ | (3 | ) | $ | 26 | ||||||||
Employee relocation costs | — | 2 | (2 | ) | — | — | ||||||||||||||
Lease vacancy | 17 | 2 | (3 | ) | 2 | 18 | ||||||||||||||
Other | — | 4 | (3 | ) | — | 1 | ||||||||||||||
Restructuring liability | $ | 89 | $ | 9 | $ | (52 | ) | $ | (1 | ) | $ | 45 | ||||||||
Finance_Receivables_Tables
Finance Receivables (Tables) | 6 Months Ended | |||||||||||||||
Apr. 30, 2014 | ||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||||||||||
Our Finance receivables, net, consist of the following: | ||||||||||||||||
(in millions) | April 30, 2014 | October 31, 2013 | ||||||||||||||
Retail portfolio | $ | 807 | $ | 751 | ||||||||||||
Wholesale portfolio | 1,241 | 1,207 | ||||||||||||||
Total finance receivables | 2,048 | 1,958 | ||||||||||||||
Less: Allowance for doubtful accounts | 24 | 23 | ||||||||||||||
Total finance receivables, net | 2,024 | 1,935 | ||||||||||||||
Less: Current portion, net(A) | 1,713 | 1,597 | ||||||||||||||
Noncurrent portion, net | $ | 311 | $ | 338 | ||||||||||||
_________________________ | ||||||||||||||||
(A) | The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals. | |||||||||||||||
Finance Revenues Derived From Receivables [Table Text Block] | ' | |||||||||||||||
The following table presents the components of our Finance revenues: | ||||||||||||||||
Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Retail notes and finance leases revenue | $ | 16 | $ | 20 | $ | 33 | $ | 41 | ||||||||
Wholesale notes interest | 19 | 19 | 37 | 39 | ||||||||||||
Operating lease revenue | 15 | 12 | 29 | 24 | ||||||||||||
Retail and wholesale accounts interest | 7 | 7 | 13 | 13 | ||||||||||||
Gross finance revenues | 57 | 58 | 112 | 117 | ||||||||||||
Less: Intercompany revenues | (19 | ) | (19 | ) | (35 | ) | (39 | ) | ||||||||
Finance revenues | $ | 38 | $ | 39 | $ | 77 | $ | 78 | ||||||||
Allowance_for_Doubtful_Account1
Allowance for Doubtful Accounts (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||||||||||||||
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 April 30, 2014 | Three Months Ended April 30, 2013 | |||||||||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Trade and | Total | Retail | Wholesale | Trade and | Total | ||||||||||||||||||||||||
Portfolio | Portfolio | Other | Portfolio | Portfolio | Other | |||||||||||||||||||||||||||
Receivables | Receivables | |||||||||||||||||||||||||||||||
Allowance for doubtful accounts, at beginning of period | $ | 22 | $ | 2 | $ | 36 | $ | 60 | $ | 23 | $ | 2 | $ | 24 | $ | 49 | ||||||||||||||||
Provision for doubtful accounts, net of recoveries | 3 | — | 1 | 4 | 1 | — | 10 | 11 | ||||||||||||||||||||||||
Charge-off of accounts(A) | (3 | ) | — | (2 | ) | (5 | ) | (3 | ) | — | — | (3 | ) | |||||||||||||||||||
Other(B) | — | — | 3 | 3 | 1 | — | — | 1 | ||||||||||||||||||||||||
Allowance for doubtful accounts, at end of period | $ | 22 | $ | 2 | $ | 38 | $ | 62 | $ | 22 | $ | 2 | $ | 34 | $ | 58 | ||||||||||||||||
Six Months Ended April 30, 2014 | Six Months Ended April 30, 2013 | |||||||||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Trade and | Total | Retail | Wholesale | Trade and | Total | ||||||||||||||||||||||||
Portfolio | Portfolio | Other | Portfolio | Portfolio | Other | |||||||||||||||||||||||||||
Receivables | Receivables | |||||||||||||||||||||||||||||||
Allowance for doubtful accounts, at beginning of period | $ | 21 | $ | 2 | $ | 37 | $ | 60 | $ | 27 | $ | — | $ | 24 | $ | 51 | ||||||||||||||||
Provision for doubtful accounts, net of recoveries | 7 | — | 3 | 10 | (1 | ) | 2 | 10 | 11 | |||||||||||||||||||||||
Charge-off of accounts(A) | (5 | ) | — | (2 | ) | (7 | ) | (6 | ) | — | — | (6 | ) | |||||||||||||||||||
Other(B) | (1 | ) | — | — | (1 | ) | 2 | — | — | 2 | ||||||||||||||||||||||
Allowance for doubtful accounts, at end of period | $ | 22 | $ | 2 | $ | 38 | $ | 62 | $ | 22 | $ | 2 | $ | 34 | $ | 58 | ||||||||||||||||
_________________________ | ||||||||||||||||||||||||||||||||
(A) | We repossess sold and leased vehicles on defaulted finance receivables and leases, and place them into Inventories. Losses recognized at the time of repossession and charged against the allowance for doubtful accounts were less than $1 million for the three and six months ended April 30, 2014 as well as for the three and six months ended April 30, 2013. | |||||||||||||||||||||||||||||||
(B) | Amounts include currency translation. | |||||||||||||||||||||||||||||||
Impaired Financing Receivables [Table Text Block] | ' | |||||||||||||||||||||||||||||||
The following table presents information regarding impaired finance receivables: | ||||||||||||||||||||||||||||||||
30-Apr-14 | 31-Oct-13 | |||||||||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Total | Retail | Wholesale | Total | ||||||||||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||||||||||||
Impaired finance receivables with specific loss reserves | $ | 14 | $ | — | $ | 14 | $ | 15 | $ | — | $ | 15 | ||||||||||||||||||||
Impaired finance receivables without specific loss reserves | 1 | — | 1 | 1 | — | 1 | ||||||||||||||||||||||||||
Specific loss reserves on impaired finance receivables | 6 | — | 6 | 6 | — | 6 | ||||||||||||||||||||||||||
Finance receivables on non-accrual status | 15 | — | 15 | 10 | — | 10 | ||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | |||||||||||||||||||||||||||||||
The Company uses the aging of its receivables as well as other inputs when assessing credit quality. The following table presents the aging analysis for finance receivables: | ||||||||||||||||||||||||||||||||
30-Apr-14 | 31-Oct-13 | |||||||||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Total | Retail | Wholesale | Total | ||||||||||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||||||||||||
Current, and up to 30 days past due | $ | 724 | $ | 1,237 | $ | 1,961 | $ | 699 | $ | 1,204 | $ | 1,903 | ||||||||||||||||||||
30-90 days past due | 69 | 2 | 71 | 44 | 2 | 46 | ||||||||||||||||||||||||||
Over 90 days past due | 14 | 2 | 16 | 8 | 1 | 9 | ||||||||||||||||||||||||||
Total finance receivables | $ | 807 | $ | 1,241 | $ | 2,048 | $ | 751 | $ | 1,207 | $ | 1,958 | ||||||||||||||||||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of inventories | ' | |||||||
The following table presents the components of Inventories: | ||||||||
(in millions) | April 30, | October 31, | ||||||
2014 | 2013 | |||||||
Finished products | $ | 808 | $ | 692 | ||||
Work in process | 74 | 58 | ||||||
Raw materials | 502 | 460 | ||||||
Total inventories | $ | 1,384 | $ | 1,210 | ||||
Debt_Tables
Debt (Tables) | 6 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
Debt | ||||||||
(in millions) | April 30, 2014 | October 31, 2013 | ||||||
Manufacturing operations | ||||||||
Senior Secured Term Loan Credit Facility, as Amended, due 2017, net of unamortized discount of $4 for both periods | $ | 694 | $ | 693 | ||||
8.25% Senior Notes, due 2021, net of unamortized discount of $21 and $22, respectively | 1,179 | 1,178 | ||||||
3.00% Senior Subordinated Convertible Notes, due 2014, net of unamortized discount of $4 and $26, respectively | 163 | 544 | ||||||
4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $21 and $23, respectively | 179 | 177 | ||||||
4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $43 | 368 | — | ||||||
Debt of majority-owned dealerships | 48 | 48 | ||||||
Financing arrangements and capital lease obligations | 59 | 77 | ||||||
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040 | 225 | 225 | ||||||
Promissory Note | 15 | 20 | ||||||
Financed lease obligations | 205 | 218 | ||||||
Other | 35 | 39 | ||||||
Total Manufacturing operations debt | 3,170 | 3,219 | ||||||
Less: Current portion | 267 | 658 | ||||||
Net long-term Manufacturing operations debt | $ | 2,903 | $ | 2,561 | ||||
(in millions) | April 30, 2014 | October 31, 2013 | ||||||
Financial Services operations | ||||||||
Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2019 | $ | 844 | $ | 778 | ||||
Bank revolvers, at fixed and variable rates, due dates from 2014 through 2019 | 1,005 | 1,018 | ||||||
Commercial paper, at variable rates, program matures in 2015 | 30 | 21 | ||||||
Borrowings secured by operating and finance leases, at various rates, due serially through 2018 | 51 | 49 | ||||||
Total Financial Services operations debt | 1,930 | 1,866 | ||||||
Less: Current portion | 689 | 505 | ||||||
Net long-term Financial Services operations debt | $ | 1,241 | $ | 1,361 | ||||
Postretirement_Benefits_Tables
Postretirement Benefits (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | |||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | ' | |||||||||||||||||||||||||||||||
Net postretirement benefits expense included in our Consolidated Statements of Operations is comprised of the following: | ||||||||||||||||||||||||||||||||
Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||||||||||||||||||
Pension Benefits | Health and Life | Pension Benefits | Health and Life | |||||||||||||||||||||||||||||
Insurance Benefits | Insurance Benefits | |||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Service cost for benefits earned during the period | $ | 2 | $ | 5 | $ | 1 | $ | 2 | $ | 6 | $ | 10 | $ | 2 | $ | 4 | ||||||||||||||||
Interest on obligation | 40 | 36 | 17 | 16 | 79 | 72 | 34 | 31 | ||||||||||||||||||||||||
Amortization of cumulative loss | 23 | 32 | 4 | 8 | 47 | 64 | 8 | 15 | ||||||||||||||||||||||||
Amortization of prior service benefit | — | — | (1 | ) | (1 | ) | — | — | (2 | ) | (2 | ) | ||||||||||||||||||||
Premiums on pension insurance | — | 1 | — | — | — | 1 | — | — | ||||||||||||||||||||||||
Expected return on assets | (48 | ) | (47 | ) | (8 | ) | (9 | ) | (96 | ) | (94 | ) | (16 | ) | (17 | ) | ||||||||||||||||
Net postretirement benefits expense | $ | 17 | $ | 27 | $ | 13 | $ | 16 | $ | 36 | $ | 53 | $ | 26 | $ | 31 | ||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||
April 30, 2014 | October 31, 2013 | |||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Marketable securities: | ||||||||||||||||||||||||||||||||
U.S. Treasury bills | $ | 241 | $ | — | $ | — | $ | 241 | $ | 396 | $ | — | $ | — | $ | 396 | ||||||||||||||||
Other | 293 | — | — | 293 | 434 | — | — | 434 | ||||||||||||||||||||||||
Derivative financial instruments: | ||||||||||||||||||||||||||||||||
Foreign currency contracts | — | — | — | — | — | 4 | — | 4 | ||||||||||||||||||||||||
Interest rate caps | — | 2 | — | 2 | — | 1 | — | 1 | ||||||||||||||||||||||||
Total assets | $ | 534 | $ | 2 | $ | — | $ | 536 | $ | 830 | $ | 5 | $ | — | $ | 835 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative financial instruments: | ||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Guarantees | — | — | 6 | 6 | — | — | 6 | 6 | ||||||||||||||||||||||||
Total liabilities | $ | — | $ | — | $ | 6 | $ | 6 | $ | — | $ | — | $ | 6 | $ | 6 | ||||||||||||||||
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 April 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(in millions) | Guarantees | Commodity contracts | Guarantees | Commodity contracts | ||||||||||||||||||||||||||||
Balance at February 1 | $ | (6 | ) | $ | — | $ | (7 | ) | $ | — | ||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | ||||||||||||||||||||||||||||
Issuances | — | — | — | — | ||||||||||||||||||||||||||||
Settlements | — | — | — | — | ||||||||||||||||||||||||||||
Balance at April 30 | $ | (6 | ) | $ | — | $ | (7 | ) | $ | — | ||||||||||||||||||||||
Change in unrealized gains on assets and liabilities still held | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Six Months Ended April 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(in millions) | Guarantees | Commodity contracts | Guarantees | Commodity contracts | ||||||||||||||||||||||||||||
Balance at November 1 | $ | (6 | ) | $ | — | $ | (7 | ) | $ | — | ||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | ||||||||||||||||||||||||||||
Issuances | — | — | — | — | ||||||||||||||||||||||||||||
Settlements | — | — | — | — | ||||||||||||||||||||||||||||
Balance at April 30 | $ | (6 | ) | $ | — | $ | (7 | ) | $ | — | ||||||||||||||||||||||
Change in unrealized gains on assets and liabilities still held | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Financial instruments measured at fair value, nonrecurring basis | ' | |||||||||||||||||||||||||||||||
The following table presents the financial instruments measured at fair value on a nonrecurring basis: | ||||||||||||||||||||||||||||||||
(in millions) | April 30, 2014 | October 31, 2013 | ||||||||||||||||||||||||||||||
Level 2 financial instruments | ||||||||||||||||||||||||||||||||
Carrying value of impaired finance receivables (A) | $ | 14 | $ | 15 | ||||||||||||||||||||||||||||
Specific loss reserve | (6 | ) | (6 | ) | ||||||||||||||||||||||||||||
Fair value | $ | 8 | $ | 9 | ||||||||||||||||||||||||||||
_________________________ | ||||||||||||||||||||||||||||||||
(A) | Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors. | |||||||||||||||||||||||||||||||
Carrying values and estimated fair values of financial instruments | ' | |||||||||||||||||||||||||||||||
The following tables present the carrying values and estimated fair values of financial instruments: | ||||||||||||||||||||||||||||||||
As of April 30, 2014 | ||||||||||||||||||||||||||||||||
Estimated Fair Value | Carrying Value | |||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Retail notes | $ | — | $ | — | $ | 306 | $ | 306 | $ | 302 | ||||||||||||||||||||||
Notes receivable | — | — | 10 | 10 | 69 | |||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||||||||
Manufacturing operations | ||||||||||||||||||||||||||||||||
Senior Secured Term Loan Credit Facility, as Amended, due 2017 | — | — | 701 | 701 | 694 | |||||||||||||||||||||||||||
8.25% Senior Notes, due 2021 | 1,277 | — | — | 1,277 | 1,179 | |||||||||||||||||||||||||||
3.00% Senior Subordinated Convertible Notes, due 2014(A) | 169 | — | — | 169 | 163 | |||||||||||||||||||||||||||
4.50% Senior Subordinated Convertible Notes, due 2018(A) | — | — | 203 | 203 | 179 | |||||||||||||||||||||||||||
4.75% Senior Subordinated Convertible Notes, due 2019(A) | — | — | 434 | 434 | 368 | |||||||||||||||||||||||||||
Debt of majority-owned dealerships | — | — | 48 | 48 | 48 | |||||||||||||||||||||||||||
Financing arrangements | — | — | 29 | 29 | 56 | |||||||||||||||||||||||||||
Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 | — | 227 | — | 227 | 225 | |||||||||||||||||||||||||||
Promissory Note | — | — | 15 | 15 | 15 | |||||||||||||||||||||||||||
Financed lease obligations | — | — | 205 | 205 | 205 | |||||||||||||||||||||||||||
Other | — | — | 33 | 33 | 35 | |||||||||||||||||||||||||||
Financial Services operations | ||||||||||||||||||||||||||||||||
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019 | — | — | 838 | 838 | 844 | |||||||||||||||||||||||||||
Bank revolvers, at fixed and variable rates, due dates from 2014 through 2019 | — | — | 984 | 984 | 1,005 | |||||||||||||||||||||||||||
Commercial paper, at variable rates, program matures in 2015 | 30 | — | — | 30 | 30 | |||||||||||||||||||||||||||
Borrowings secured by operating and finance leases, at various rates, due serially through 2018 | — | — | 51 | 51 | 51 | |||||||||||||||||||||||||||
As of October 31, 2013 | ||||||||||||||||||||||||||||||||
Estimated Fair Value | Carrying Value | |||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Retail notes | $ | — | $ | — | $ | 390 | $ | 390 | $ | 390 | ||||||||||||||||||||||
Notes receivable | — | — | 13 | 13 | 14 | |||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||||||||
Manufacturing operations | ||||||||||||||||||||||||||||||||
Senior Secured Term Loan Credit Facility, as Amended, due 2017 | — | — | 720 | 720 | 693 | |||||||||||||||||||||||||||
8.25% Senior Notes, due 2021 | 1,274 | — | — | 1,274 | 1,178 | |||||||||||||||||||||||||||
3.00% Senior Subordinated Convertible Notes, due 2014(A) | 586 | — | — | 586 | 544 | |||||||||||||||||||||||||||
4.50% Senior Subordinated Convertible Notes, due 2018(A) | — | — | 203 | 203 | 177 | |||||||||||||||||||||||||||
Debt of majority-owned dealerships | — | — | 48 | 48 | 48 | |||||||||||||||||||||||||||
Financing arrangements | — | — | 44 | 44 | 73 | |||||||||||||||||||||||||||
Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 | — | 229 | — | 229 | 225 | |||||||||||||||||||||||||||
Promissory Note | — | — | 20 | 20 | 20 | |||||||||||||||||||||||||||
Financed lease obligations | — | — | 218 | 218 | 218 | |||||||||||||||||||||||||||
Other | — | — | 36 | 36 | 39 | |||||||||||||||||||||||||||
Financial Services operations | ||||||||||||||||||||||||||||||||
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019 | — | — | 775 | 775 | 778 | |||||||||||||||||||||||||||
Bank revolvers, at fixed and variable rates, due dates from 2014 through 2019 | — | — | 990 | 990 | 1,018 | |||||||||||||||||||||||||||
Commercial paper, at variable rates, program matures in 2015 | 21 | — | — | 21 | 21 | |||||||||||||||||||||||||||
Borrowings secured by operating and finance leases, at various rates, due serially through 2017 | — | — | 49 | 49 | 49 | |||||||||||||||||||||||||||
_________________________ | ||||||||||||||||||||||||||||||||
(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 quoted market prices for the convertible note which includes the equity feature. |
Financial_Instruments_and_Comm1
Financial Instruments and Commodity Contracts (Tables) | 6 Months Ended | |||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | |||||||||||||||||
The fair values of all derivatives are recorded as assets or liabilities on a gross basis in our Consolidated Balance Sheets. The following table presents the fair values of our derivatives and their respective balance sheet locations: | ||||||||||||||||||
30-Apr-14 | ||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(in millions) | Location in | Fair Value | Location in | Fair Value | ||||||||||||||
Consolidated Balance Sheets | Consolidated Balance Sheets | |||||||||||||||||
Foreign currency contracts | Other current assets | $ | — | Other current liabilities | $ | 2 | ||||||||||||
Interest rate caps | Other current assets | 2 | Other noncurrent liabilities | — | ||||||||||||||
Total fair value | $ | 2 | $ | 2 | ||||||||||||||
31-Oct-13 | ||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(in millions) | Location in | Fair Value | Location in | Fair Value | ||||||||||||||
Consolidated Balance Sheets | Consolidated Balance Sheets | |||||||||||||||||
Foreign currency contracts | Other current assets | $ | 4 | Other current liabilities | $ | — | ||||||||||||
Interest rate caps | Other noncurrent assets | 1 | Other current liabilities | — | ||||||||||||||
Total fair value | $ | 5 | $ | — | ||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | ' | |||||||||||||||||
The following table presents the location and amount of loss (gain) recognized in our Consolidated Statements of Operations related to derivatives: | ||||||||||||||||||
Location in Consolidated Statements of Operations | Three Months Ended April 30, | Six Months Ended April 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Foreign currency contracts | Other expense (income), net | $ | 1 | $ | (1 | ) | $ | 1 | $ | (2 | ) | |||||||
Interest rate caps | Interest expense | 2 | — | 1 | — | |||||||||||||
Cross currency swaps | Other expense (income), net | (1 | ) | — | — | — | ||||||||||||
Commodity forward contracts | Costs of products sold | — | 2 | — | 2 | |||||||||||||
Total loss | $ | 2 | $ | 1 | $ | 2 | $ | — | ||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | ' | |||||||||||||||||
The following table presents the outstanding foreign currency contracts as of April 30, 2014 and October 31, 2013: | ||||||||||||||||||
(in millions) | Currency | Notional Amount | Maturity | |||||||||||||||
As of April 30, 2014 | ||||||||||||||||||
Forward exchange contract | EUR | € | 16 | Jul-14 | ||||||||||||||
As of October 31, 2013 | ||||||||||||||||||
Option collar contracts | EUR | € | 2 | Oct-13 | ||||||||||||||
Forward exchange contract | CAD | C$ | 90 | Oct-13 | ||||||||||||||
Option collar contract | CAD | C$ | 50 | Oct-13 | ||||||||||||||
Option collar contract | BRL | US$ | 25 | Oct-13 | ||||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | |||||||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Schedule of selected financial information, by segment | ' | |||||||||||||||||||||||
The following tables present selected financial information for our reporting segments: | ||||||||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services(A) | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Three Months Ended April 30, 2014 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 1,680 | $ | 611 | $ | 417 | $ | 38 | $ | — | $ | 2,746 | ||||||||||||
Intersegment sales and revenues | 129 | 12 | 6 | 19 | (166 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 1,809 | $ | 623 | $ | 423 | $ | 57 | $ | (166 | ) | $ | 2,746 | |||||||||||
Income (loss) from continuing operations attributable to NIC, net of tax | $ | (134 | ) | $ | 126 | $ | (150 | ) | $ | 24 | $ | (164 | ) | $ | (298 | ) | ||||||||
Income tax expense | — | — | — | — | (23 | ) | (23 | ) | ||||||||||||||||
Segment profit (loss) | $ | (134 | ) | $ | 126 | $ | (150 | ) | $ | 24 | $ | (141 | ) | $ | (275 | ) | ||||||||
Depreciation and amortization | $ | 69 | $ | 4 | $ | 8 | $ | 11 | $ | 7 | $ | 99 | ||||||||||||
Interest expense | — | — | — | 17 | 57 | 74 | ||||||||||||||||||
Equity in income of non-consolidated affiliates | 1 | 1 | 1 | — | — | 3 | ||||||||||||||||||
Capital expenditures(B) | 26 | 1 | 1 | — | 1 | 29 | ||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services(A) | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Three Months Ended April 30, 2013 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 1,395 | $ | 621 | $ | 471 | $ | 39 | $ | — | $ | 2,526 | ||||||||||||
Intersegment sales and revenues | 120 | 14 | 22 | 19 | (175 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 1,515 | $ | 635 | $ | 493 | $ | 58 | $ | (175 | ) | $ | 2,526 | |||||||||||
Income (loss) from continuing operations attributable to NIC, net of tax | $ | (303 | ) | $ | 114 | $ | 32 | $ | 19 | $ | (215 | ) | $ | (353 | ) | |||||||||
Income tax expense | — | — | — | — | (22 | ) | (22 | ) | ||||||||||||||||
Segment profit (loss) | $ | (303 | ) | $ | 114 | $ | 32 | $ | 19 | $ | (193 | ) | $ | (331 | ) | |||||||||
Depreciation and amortization | $ | 114 | $ | 4 | $ | 9 | $ | 10 | $ | 5 | $ | 142 | ||||||||||||
Interest expense | — | — | — | 17 | 73 | 90 | ||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 3 | 2 | (1 | ) | — | — | 4 | |||||||||||||||||
Capital expenditures(B) | 28 | — | 4 | 1 | 2 | 35 | ||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services(A) | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Six Months Ended April 30, 2014 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 2,957 | $ | 1,208 | $ | 712 | $ | 77 | $ | — | $ | 4,954 | ||||||||||||
Intersegment sales and revenues | 217 | 22 | 14 | 35 | (288 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 3,174 | $ | 1,230 | $ | 726 | $ | 112 | $ | (288 | ) | $ | 4,954 | |||||||||||
Income (loss) from continuing operations attributable to NIC, net of tax | $ | (341 | ) | $ | 230 | $ | (183 | ) | $ | 47 | $ | (300 | ) | $ | (547 | ) | ||||||||
Income tax expense | — | — | — | — | (11 | ) | (11 | ) | ||||||||||||||||
Segment profit (loss) | $ | (341 | ) | $ | 230 | $ | (183 | ) | $ | 47 | $ | (289 | ) | $ | (536 | ) | ||||||||
Depreciation and amortization | $ | 127 | $ | 8 | $ | 16 | $ | 21 | $ | 13 | $ | 185 | ||||||||||||
Interest expense | — | — | — | 34 | 122 | 156 | ||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 2 | 2 | (1 | ) | — | — | 3 | |||||||||||||||||
Capital expenditures(B) | 38 | 5 | 4 | 1 | 2 | 50 | ||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services(A) | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Six Months Ended April 30, 2013 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 2,933 | $ | 1,290 | $ | 862 | $ | 78 | $ | — | $ | 5,163 | ||||||||||||
Intersegment sales and revenues | 247 | 32 | 37 | 39 | (355 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 3,180 | $ | 1,322 | $ | 899 | $ | 117 | $ | (355 | ) | $ | 5,163 | |||||||||||
Income (loss) from continuing operations attributable to NIC, net of tax | $ | (404 | ) | $ | 231 | $ | 22 | $ | 41 | $ | (357 | ) | $ | (467 | ) | |||||||||
Income tax expense | — | — | — | — | (37 | ) | (37 | ) | ||||||||||||||||
Segment profit (loss) | $ | (404 | ) | $ | 231 | $ | 22 | $ | 41 | $ | (320 | ) | $ | (430 | ) | |||||||||
Depreciation and amortization | $ | 185 | $ | 8 | $ | 18 | $ | 19 | $ | 12 | $ | 242 | ||||||||||||
Interest expense | — | — | — | 35 | 129 | 164 | ||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 5 | 3 | (5 | ) | — | — | 3 | |||||||||||||||||
Capital expenditures(B) | 93 | 1 | 7 | 1 | 5 | 107 | ||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Segment assets, as of: | ||||||||||||||||||||||||
30-Apr-14 | $ | 2,306 | $ | 671 | $ | 878 | $ | 2,494 | $ | 1,378 | $ | 7,727 | ||||||||||||
31-Oct-13 | 2,250 | 716 | 1,162 | 2,355 | 1,832 | 8,315 | ||||||||||||||||||
_________________________ | ||||||||||||||||||||||||
(A) | Total sales and revenues in the Financial Services segment include interest revenues of $42 million and $82 million for the three and six months ended April 30, 2014, respectively and $46 million and $93 million for the three and six months ended April 30, 2013, respectively. | |||||||||||||||||||||||
(B) | Exclusive of purchases of equipment leased to others. |
Stockholders_Deficit_Tables_Ta
Stockholders' Deficit (Tables) (Tables) | 6 Months Ended | |||||||||||
Apr. 30, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||
The following tables display the changes in Accumulated other comprehensive loss, net of tax, by component for the three and six months ended April 30, 2014: | ||||||||||||
(in millions) | Foreign Currency Translation Adjustments | Defined Benefit Plan | Total | |||||||||
Balance as of January 31, 2014 | $ | (137 | ) | $ | (1,724 | ) | $ | (1,861 | ) | |||
Other comprehensive income (loss) before reclassifications | 48 | (1 | ) | 47 | ||||||||
Amounts reclassified out of accumulated other comprehensive loss | — | 26 | 26 | |||||||||
Net current-period other comprehensive income | 48 | 25 | 73 | |||||||||
Balance as of April 30, 2014 | $ | (89 | ) | $ | (1,699 | ) | $ | (1,788 | ) | |||
(in millions) | Foreign Currency Translation Adjustments | Defined Benefit Plan | Total | |||||||||
Balance as of October 31, 2013 | $ | (75 | ) | $ | (1,749 | ) | $ | (1,824 | ) | |||
Other comprehensive loss before reclassifications | (14 | ) | (2 | ) | (16 | ) | ||||||
Amounts reclassified out of accumulated other comprehensive loss | — | 52 | 52 | |||||||||
Net current-period other comprehensive income (loss) | (14 | ) | 50 | 36 | ||||||||
Balance as of April 30, 2014 | $ | (89 | ) | $ | (1,699 | ) | $ | (1,788 | ) | |||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | |||||||||||
Location in Consolidated | Three Months Ended April 30, 2014 | Six Months Ended April 30, 2014 | ||||||||||
Statements of Operations | ||||||||||||
Defined benefit plans | ||||||||||||
Amortization of prior service costs | Selling, general and administrative expenses | $ | (1 | ) | $ | (2 | ) | |||||
Amortization of actuarial loss | Selling, general and administrative expenses | 27 | 54 | |||||||||
Total before tax | 26 | 52 | ||||||||||
Tax benefit (expense) | — | — | ||||||||||
Net of tax | $ | 26 | $ | 52 | ||||||||
Total reclassifications for the period, net of tax | $ | 26 | $ | 52 | ||||||||
Loss_Per_Share_Attributable_to1
Loss Per Share Attributable to Navistar International Corporation (Tables) | 6 Months Ended | |||||||||||||||
Apr. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Earnings Per Share Reconciliation [Table Text Block] | ' | |||||||||||||||
Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||
(in millions, except per share data) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Numerator: | ||||||||||||||||
Amounts attributable to Navistar International Corporation common stockholders: | ||||||||||||||||
Loss from continuing operations, net of tax | $ | (298 | ) | $ | (353 | ) | $ | (547 | ) | $ | (467 | ) | ||||
Income (loss) from discontinued operations, net of tax | 1 | (21 | ) | 2 | (30 | ) | ||||||||||
Net loss | $ | (297 | ) | $ | (374 | ) | $ | (545 | ) | $ | (497 | ) | ||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 81.4 | 80.4 | 81.3 | 80.3 | ||||||||||||
Effect of dilutive securities | — | — | — | — | ||||||||||||
Diluted | 81.4 | 80.4 | 81.3 | 80.3 | ||||||||||||
Earnings (loss) per share attributable to Navistar International Corporation: | ||||||||||||||||
Basic: | ||||||||||||||||
Continuing operations | $ | (3.66 | ) | $ | (4.39 | ) | $ | (6.73 | ) | $ | (5.82 | ) | ||||
Discontinued operations | 0.01 | (0.26 | ) | 0.03 | (0.37 | ) | ||||||||||
Net loss | $ | (3.65 | ) | $ | (4.65 | ) | $ | (6.70 | ) | $ | (6.19 | ) | ||||
Diluted: | ||||||||||||||||
Continuing operations | $ | (3.66 | ) | $ | (4.39 | ) | $ | (6.73 | ) | $ | (5.82 | ) | ||||
Discontinued operations | 0.01 | (0.26 | ) | 0.03 | (0.37 | ) | ||||||||||
Net loss | $ | (3.65 | ) | $ | (4.65 | ) | $ | (6.70 | ) | $ | (6.19 | ) |
Condensed_Consolidating_Guaran1
Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Tables) | 6 Months Ended | |||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||
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 April 30, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Sales and revenues, net | $ | — | $ | 1,493 | $ | 2,293 | $ | (1,260 | ) | $ | 2,526 | |||||||||
Costs of products sold | — | 1,622 | 1,987 | (1,246 | ) | 2,363 | ||||||||||||||
Restructuring charges | — | 4 | 2 | — | 6 | |||||||||||||||
All other operating expenses (income) | (48 | ) | 349 | 125 | 57 | 483 | ||||||||||||||
Total costs and expenses | (48 | ) | 1,975 | 2,114 | (1,189 | ) | 2,852 | |||||||||||||
Equity in income (loss) of affiliates | (422 | ) | 50 | 1 | 375 | 4 | ||||||||||||||
Income (loss) before income taxes | (374 | ) | (432 | ) | 180 | 304 | (322 | ) | ||||||||||||
Income tax expense | — | (1 | ) | (21 | ) | — | (22 | ) | ||||||||||||
Earnings (loss) from continuing operations | (374 | ) | (433 | ) | 159 | 304 | (344 | ) | ||||||||||||
Loss from discontinued operations, net of tax | — | — | (21 | ) | — | (21 | ) | |||||||||||||
Net income (loss) | (374 | ) | (433 | ) | 138 | 304 | (365 | ) | ||||||||||||
Less: Net income attributable to non-controlling interests | — | — | 9 | — | 9 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (374 | ) | $ | (433 | ) | $ | 129 | $ | 304 | $ | (374 | ) | |||||||
Condensed Consolidating Statement of Operations for the Six Months Ended April 30, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Sales and revenues, net | $ | — | $ | 3,317 | $ | 3,790 | $ | (2,153 | ) | $ | 4,954 | |||||||||
Costs of products sold | — | 3,222 | 3,393 | (2,133 | ) | 4,482 | ||||||||||||||
Restructuring charges | — | 10 | 1 | — | 11 | |||||||||||||||
Asset impairment charges | — | — | 171 | (2 | ) | 169 | ||||||||||||||
All other operating expenses (income) | 77 | 514 | 248 | (28 | ) | 811 | ||||||||||||||
Total costs and expenses | 77 | 3,746 | 3,813 | (2,163 | ) | 5,473 | ||||||||||||||
Equity in income (loss) of affiliates | (481 | ) | (152 | ) | 1 | 635 | 3 | |||||||||||||
Income (loss) before income taxes | (558 | ) | (581 | ) | (22 | ) | 645 | (516 | ) | |||||||||||
Income tax benefit (expense) | 13 | (1 | ) | (23 | ) | — | (11 | ) | ||||||||||||
Earnings (loss) from continuing operations | (545 | ) | (582 | ) | (45 | ) | 645 | (527 | ) | |||||||||||
Income from discontinued operations, net of tax | — | — | 2 | — | 2 | |||||||||||||||
Net income (loss) | (545 | ) | (582 | ) | (43 | ) | 645 | (525 | ) | |||||||||||
Less: Net income attributable to non-controlling interests | — | — | 20 | — | 20 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (545 | ) | $ | (582 | ) | $ | (63 | ) | $ | 645 | $ | (545 | ) | ||||||
Condensed Consolidating Statement of Operations for the Six Months Ended April 30, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Sales and revenues, net | $ | — | $ | 3,102 | $ | 4,551 | $ | (2,490 | ) | $ | 5,163 | |||||||||
Costs of products sold | — | 3,217 | 3,896 | (2,464 | ) | 4,649 | ||||||||||||||
Restructuring charges | — | 4 | 4 | — | 8 | |||||||||||||||
All other operating expenses (income) | (27 | ) | 580 | 317 | 45 | 915 | ||||||||||||||
Total costs and expenses | (27 | ) | 3,801 | 4,217 | (2,419 | ) | 5,572 | |||||||||||||
Equity in income (loss) of affiliates | (524 | ) | 104 | (1 | ) | 424 | 3 | |||||||||||||
Income (loss) before income taxes | (497 | ) | (595 | ) | 333 | 353 | (406 | ) | ||||||||||||
Income tax expense | — | (12 | ) | (25 | ) | — | (37 | ) | ||||||||||||
Earnings (loss) from continuing operations | (497 | ) | (607 | ) | 308 | 353 | (443 | ) | ||||||||||||
Loss from discontinued operations, net of tax | — | — | (30 | ) | — | (30 | ) | |||||||||||||
Net income (loss) | (497 | ) | (607 | ) | 278 | 353 | (473 | ) | ||||||||||||
Less: Net income attributable to non-controlling interests | — | — | 24 | — | 24 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (497 | ) | $ | (607 | ) | $ | 254 | $ | 353 | $ | (497 | ) | |||||||
Condensed Consolidating Statement of Operations for the Three Months Ended April 30, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Sales and revenues, net | $ | — | $ | 1,893 | $ | 2,061 | $ | (1,208 | ) | $ | 2,746 | |||||||||
Costs of products sold | — | 1,797 | 1,862 | (1,191 | ) | 2,468 | ||||||||||||||
Restructuring charges | — | 8 | — | — | 8 | |||||||||||||||
Asset impairment charges | — | — | 153 | (2 | ) | 151 | ||||||||||||||
All other operating expenses (income) | 41 | 273 | 89 | (17 | ) | 386 | ||||||||||||||
Total costs and expenses | 41 | 2,078 | 2,104 | (1,210 | ) | 3,013 | ||||||||||||||
Equity in income (loss) of affiliates | (269 | ) | (141 | ) | 2 | 411 | 3 | |||||||||||||
Income (loss) before income taxes | (310 | ) | (326 | ) | (41 | ) | 413 | (264 | ) | |||||||||||
Income tax benefit (expense) | 13 | (8 | ) | (28 | ) | — | (23 | ) | ||||||||||||
Earnings (loss) from continuing operations | (297 | ) | (334 | ) | (69 | ) | 413 | (287 | ) | |||||||||||
Income from discontinued operations, net of tax | — | — | 1 | — | 1 | |||||||||||||||
Net income (loss) | (297 | ) | (334 | ) | (68 | ) | 413 | (286 | ) | |||||||||||
Less: Net income attributable to non-controlling interests | — | — | 11 | — | 11 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (297 | ) | $ | (334 | ) | $ | (79 | ) | $ | 413 | $ | (297 | ) | ||||||
Schedule of Condensed Statement of Comprehensive Income [Table Text Block] | ' | |||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended April 30, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (297 | ) | $ | (334 | ) | $ | (79 | ) | $ | 413 | $ | (297 | ) | ||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Foreign currency translation adjustment | 48 | — | 48 | (48 | ) | 48 | ||||||||||||||
Defined benefit plans (net of tax of $0 tax for all entities) | 25 | 25 | — | (25 | ) | 25 | ||||||||||||||
Total other comprehensive income (loss) | 73 | 25 | 48 | (73 | ) | 73 | ||||||||||||||
Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (224 | ) | $ | (309 | ) | $ | (31 | ) | $ | 340 | $ | (224 | ) | ||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended April 30, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (374 | ) | $ | (433 | ) | $ | 129 | $ | 304 | $ | (374 | ) | |||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Foreign currency translation adjustment | 3 | — | 2 | (2 | ) | 3 | ||||||||||||||
Defined benefit plans (net of tax of $1, $0, $1, $(1), and, $1, respectively) | 40 | 35 | 5 | (40 | ) | 40 | ||||||||||||||
Total other comprehensive income (loss) | 43 | 35 | 7 | (42 | ) | 43 | ||||||||||||||
Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (331 | ) | $ | (398 | ) | $ | 136 | $ | 262 | $ | (331 | ) | |||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Six Months Ended April 30, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (545 | ) | $ | (582 | ) | $ | (63 | ) | $ | 645 | $ | (545 | ) | ||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Foreign currency translation adjustment | (14 | ) | — | (14 | ) | 14 | (14 | ) | ||||||||||||
Defined benefit plans (net of tax of $(1), $0, $(1), $1, and, $(1), respectively) | 50 | 50 | — | (50 | ) | 50 | ||||||||||||||
Total other comprehensive income (loss) | 36 | 50 | (14 | ) | (36 | ) | 36 | |||||||||||||
Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (509 | ) | $ | (532 | ) | $ | (77 | ) | $ | 609 | $ | (509 | ) | ||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Six Months Ended April 30, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (497 | ) | $ | (607 | ) | $ | 254 | $ | 353 | $ | (497 | ) | |||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Foreign currency translation adjustment | 20 | — | 20 | (20 | ) | 20 | ||||||||||||||
Defined benefit plans (net of tax of $1, $0, $1, $(1), and, $1, respectively) | 78 | 70 | 8 | (78 | ) | 78 | ||||||||||||||
Total other comprehensive income (loss) | 98 | 70 | 28 | (98 | ) | 98 | ||||||||||||||
Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (399 | ) | $ | (537 | ) | $ | 282 | $ | 255 | $ | (399 | ) | |||||||
Schedule of Condensed Balance Sheet [Table Text Block] | ' | |||||||||||||||||||
Condensed Consolidating Balance Sheet as of October 31, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 336 | $ | 72 | $ | 347 | $ | — | $ | 755 | ||||||||||
Marketable securities | 581 | 1 | 248 | — | 830 | |||||||||||||||
Restricted cash | 23 | 3 | 65 | — | 91 | |||||||||||||||
Finance and other receivables, net | 3 | 148 | 2,561 | (11 | ) | 2,701 | ||||||||||||||
Inventories | — | 621 | 608 | (19 | ) | 1,210 | ||||||||||||||
Investments in non-consolidated affiliates | (6,123 | ) | 6,600 | 73 | (473 | ) | 77 | |||||||||||||
Property and equipment, net | — | 937 | 807 | (3 | ) | 1,741 | ||||||||||||||
Goodwill | — | — | 184 | — | 184 | |||||||||||||||
Deferred taxes, net | — | 13 | 219 | (1 | ) | 231 | ||||||||||||||
Other | 36 | 156 | 304 | (1 | ) | 495 | ||||||||||||||
Total assets | $ | (5,144 | ) | $ | 8,551 | $ | 5,416 | $ | (508 | ) | $ | 8,315 | ||||||||
Liabilities and stockholders’ equity (deficit) | ||||||||||||||||||||
Debt | $ | 2,125 | $ | 1,002 | $ | 1,960 | $ | (2 | ) | $ | 5,085 | |||||||||
Postretirement benefits liabilities | — | 2,407 | 245 | — | 2,652 | |||||||||||||||
Amounts due to (from) affiliates | (6,988 | ) | 10,846 | (3,932 | ) | 74 | — | |||||||||||||
Other liabilities | 3,362 | 646 | 250 | (79 | ) | 4,179 | ||||||||||||||
Total liabilities | (1,501 | ) | 14,901 | (1,477 | ) | (7 | ) | 11,916 | ||||||||||||
Redeemable equity securities | 4 | — | — | — | 4 | |||||||||||||||
Stockholders’ equity attributable to non-controlling interest | — | — | 44 | — | 44 | |||||||||||||||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (3,647 | ) | (6,350 | ) | 6,849 | (501 | ) | (3,649 | ) | |||||||||||
Total liabilities and stockholders’ equity (deficit) | $ | (5,144 | ) | $ | 8,551 | $ | 5,416 | $ | (508 | ) | $ | 8,315 | ||||||||
Condensed Consolidating Balance Sheet as of April 30, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 280 | $ | 44 | $ | 270 | $ | — | $ | 594 | ||||||||||
Marketable securities | 193 | — | 341 | — | 534 | |||||||||||||||
Restricted cash | 18 | 4 | 90 | — | 112 | |||||||||||||||
Finance and other receivables, net | 3 | 136 | 2,553 | (10 | ) | 2,682 | ||||||||||||||
Inventories | — | 749 | 648 | (13 | ) | 1,384 | ||||||||||||||
Investments in non-consolidated affiliates | (6,570 | ) | 6,433 | 66 | 140 | 69 | ||||||||||||||
Property and equipment, net | — | 899 | 790 | 4 | 1,693 | |||||||||||||||
Goodwill | — | — | 38 | — | 38 | |||||||||||||||
Deferred taxes, net | 1 | 13 | 178 | — | 192 | |||||||||||||||
Other | 38 | 156 | 237 | (2 | ) | 429 | ||||||||||||||
Total assets | $ | (6,037 | ) | $ | 8,434 | $ | 5,211 | $ | 119 | $ | 7,727 | |||||||||
Liabilities and stockholders’ equity (deficit) | ||||||||||||||||||||
Debt | $ | 2,114 | $ | 967 | $ | 2,024 | $ | (5 | ) | $ | 5,100 | |||||||||
Postretirement benefits liabilities | — | 2,340 | 234 | — | 2,574 | |||||||||||||||
Amounts due to (from) affiliates | (7,412 | ) | 11,392 | (4,128 | ) | 148 | — | |||||||||||||
Other liabilities | 3,367 | 624 | 210 | (76 | ) | 4,125 | ||||||||||||||
Total liabilities | (1,931 | ) | 15,323 | (1,660 | ) | 67 | 11,799 | |||||||||||||
Redeemable equity securities | 2 | — | — | — | 2 | |||||||||||||||
Stockholders’ equity attributable to non-controlling interest | — | — | 34 | — | 34 | |||||||||||||||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (4,108 | ) | (6,889 | ) | 6,837 | 52 | (4,108 | ) | ||||||||||||
Total liabilities and stockholders’ equity (deficit) | $ | (6,037 | ) | $ | 8,434 | $ | 5,211 | $ | 119 | $ | 7,727 | |||||||||
Schedule of Condensed Cash Flow Statement [Table Text Block] | ' | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows for the Six Months Ended April 30, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net cash provided by (used in) operations | $ | (648 | ) | $ | (288 | ) | $ | 222 | $ | 671 | $ | (43 | ) | |||||||
Cash flows from investment activities | ||||||||||||||||||||
Net change in restricted cash and cash equivalents | (1 | ) | — | 45 | — | 44 | ||||||||||||||
Net purchases of marketable securities | (186 | ) | — | (81 | ) | — | (267 | ) | ||||||||||||
Capital expenditures and purchase of equipment leased to others | — | (304 | ) | (98 | ) | — | (402 | ) | ||||||||||||
Other investing activities | — | 9 | 40 | — | 49 | |||||||||||||||
Net cash used in investment activities | (187 | ) | (295 | ) | (94 | ) | — | (576 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Net borrowings (repayments) of debt | 327 | 301 | (179 | ) | (671 | ) | (222 | ) | ||||||||||||
Other financing activities | 24 | 263 | (23 | ) | — | 264 | ||||||||||||||
Net cash provided by (used in) financing activities | 351 | 564 | (202 | ) | (671 | ) | 42 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (5 | ) | — | (5 | ) | |||||||||||||
Decrease in cash and cash equivalents | (484 | ) | (19 | ) | (79 | ) | — | (582 | ) | |||||||||||
Cash and cash equivalents at beginning of the period | 702 | 55 | 330 | — | 1,087 | |||||||||||||||
Cash and cash equivalents at end of the period | $ | 218 | $ | 36 | $ | 251 | $ | — | $ | 505 | ||||||||||
Condensed Consolidating Statement of Cash Flows for the Six Months Ended April 30, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net cash provided by (used in) operations | $ | (458 | ) | $ | (961 | ) | $ | 85 | $ | 1,008 | $ | (326 | ) | |||||||
Cash flows from investment activities | ||||||||||||||||||||
Net change in restricted cash and cash equivalents | 5 | (1 | ) | (25 | ) | — | (21 | ) | ||||||||||||
Net sales of marketable securities | 389 | — | (93 | ) | — | 296 | ||||||||||||||
Capital expenditures and purchase of equipment leased to others | — | (67 | ) | (91 | ) | — | (158 | ) | ||||||||||||
Other investing activities | — | 8 | 17 | — | 25 | |||||||||||||||
Net cash provided by (used in) investment activities | 394 | (60 | ) | (192 | ) | — | 142 | |||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Net borrowings (repayments) of debt | (10 | ) | 959 | 68 | (1,006 | ) | 11 | |||||||||||||
Other financing activities | 18 | 34 | (30 | ) | — | 22 | ||||||||||||||
Net cash provided by (used in) financing activities | 8 | 993 | 38 | (1,006 | ) | 33 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (8 | ) | (2 | ) | (10 | ) | ||||||||||||
Decrease in cash and cash equivalents | (56 | ) | (28 | ) | (77 | ) | — | (161 | ) | |||||||||||
Cash and cash equivalents at beginning of the period | 336 | 72 | 347 | — | 755 | |||||||||||||||
Cash and cash equivalents at end of the period | $ | 280 | $ | 44 | $ | 270 | $ | — | $ | 594 | ||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Narrative (Details) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||
In Millions, unless otherwise specified | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Jan. 31, 2014 |
segments | Unionized Employees Concentration Risk [Member] | Unionized Employees Concentration Risk [Member] | Brazilian Reporting Unit [Member] | Brazilian Reporting Unit [Member] | Brazilian Reporting Unit [Member] | ||
Number Of Employees Hourly Workers [Member] | Number of Employees Salaried Workers [Member] | ||||||
employees | employees | ||||||
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number Of Segments | 4 | ' | ' | ' | ' | ' | ' |
Concentration Risk Number Of Employees | ' | ' | 5,700 | 300 | ' | ' | ' |
concentration risk number of employees percentage | ' | ' | 65.00% | 4.00% | ' | ' | ' |
Goodwill | $38 | $184 | ' | ' | ' | ' | $142 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | ' | ' | ' | ' | ' | ' | 43 |
Goodwill, Impairment Loss | ' | ' | ' | ' | 142 | 142 | ' |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | ' | ' | ' | ' | $7 | $7 | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Variable Interest Entities (Details) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2013 | Oct. 31, 2012 |
In Millions, unless otherwise specified | ||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | $594 | $755 | $505 | $1,087 |
Variable Interest Entity Primary Beneficiary Blue Diamond Parts And Blue Diamond Truck [Member] | ' | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' | ' |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 298 | 323 | ' | ' |
Cash and Cash Equivalents, at Carrying Value | 79 | 56 | ' | ' |
Liabilities | 225 | 188 | ' | ' |
Variable Interest Entity Primary Beneficiary Securitizations Treated As Borrowings [Member] | Financial Services Operations [Member] | ' | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' | ' |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 1,059 | 989 | ' | ' |
Liabilities | 844 | 778 | ' | ' |
Transaction Does Not Qualify for Sale Accounting [Member] | Financial Services Operations [Member] | ' | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' | ' |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 66 | 61 | ' | ' |
Liabilities | $51 | $49 | ' | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Product Warranty Liability (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||||||||||
In Millions, except Per Share data, unless otherwise specified | Apr. 30, 2013 | Jan. 31, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Oct. 31, 2013 | Apr. 30, 2014 | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 | Jan. 31, 2013 |
NA Truck [Member] | NA Truck [Member] | Extended Warranty Programs [Member] | Extended Warranty Programs [Member] | Extended Warranty Programs [Member] | Extended Warranty Programs [Member] | Extended Warranty Programs [Member] | Product Warranty Accrual [Member] | Product Warranty Accrual [Member] | Product Warranty Accrual [Member] | Product Warranty Accrual [Member] | recoverable [Member] | |||||
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | $1,118 | $1,349 | $1,118 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Costs accrued and revenues deferred | ' | ' | 153 | 226 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Currency translation adjustment | ' | ' | -1 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments to pre-existing warranties(A)(B) | ' | ' | 94 | 204 | ' | ' | ' | ' | ' | ' | ' | 42 | 52 | 164 | 40 | 13 |
Payments and revenues recognized | ' | ' | -272 | -327 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at end of period | 1,221 | ' | 1,323 | 1,221 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Current portion | 647 | ' | 626 | 647 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncurrent accrued product warranty and deferred warranty revenue | 574 | ' | 697 | 574 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Warranty Accrual, Preexisting Increase Decrease Per Share, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.52 | $0.64 | $2.04 | $0.50 | ' |
Warranty Recoveries | 13 | 27 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extended Warranty Program: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Revenue, Revenue Recognized | ' | ' | ' | ' | ' | ' | 33 | 11 | 60 | 40 | ' | ' | ' | ' | ' | ' |
Deferred Revenue | ' | ' | ' | ' | ' | ' | 437 | ' | 437 | ' | 420 | ' | ' | ' | ' | ' |
Product Warranty Expense | ' | ' | ' | ' | $34 | $33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued_Operations_Discon
Discontinued Operations - Discontinued Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Jul. 31, 2013 | Apr. 30, 2013 |
Discontinued Operations [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | MONACO | Mahindra [Member] | |||||
Statements of Operations for Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Divestiture of Businesses | ' | ' | ' | ' | ' | ' | ' | ' | $19 | $33 |
Asset impairment charges | 151 | 0 | 169 | 0 | ' | ' | ' | ' | 24 | ' |
Sales and revenues, net | ' | ' | ' | ' | 0 | 36 | 0 | 70 | ' | ' |
Income (loss) before income taxes | ' | ' | ' | ' | 1 | -21 | 2 | -30 | ' | ' |
Income tax benefit (expense) | ' | ' | ' | ' | 0 | 0 | 0 | 0 | ' | ' |
Income (loss) from discontinued operations, net of tax | 1 | -21 | 2 | -30 | 1 | -21 | 2 | -30 | ' | ' |
Gain (Loss) on Disposition of Business | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26 |
Restructuring_and_Impairments_1
Restructuring and Impairments - Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Jul. 31, 2013 | Apr. 30, 2014 | Apr. 30, 2014 |
Employee Severance [Member] | Employee Severance [Member] | NA Truck [Member] | NA Truck [Member] | NA Truck [Member] | NA Truck [Member] | NA Truck [Member] | NA Truck [Member] | NA Truck [Member] | Minimum [Member] | Maximum [Member] | Discontinuation Engineering Program [Member] | Brazilian Reporting Unit [Member] | Brazilian Reporting Unit [Member] | |||||
Discontinuation Engineering Program [Member] | Garland Assembly Plant [Member] | Garland Assembly Plant [Member] | Huntsville Engine Plant [Member] | Huntsville Engine Plant [Member] | NA Truck [Member] | NA Truck [Member] | NA Truck [Member] | |||||||||||
Garland plant closure [Member] | Garland plant closure [Member] | Employee Severance [Member] | Engine Plant Consolidation [Member] | Chatham [Member] | Chatham [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | $8 | $6 | $11 | $8 | $8 | $11 | ' | ' | $13 | $8 | $12 | $1 | $2 | ' | ' | ' | ' | ' |
Asset impairment charges | 151 | 0 | 169 | 0 | ' | ' | 18 | 19 | ' | ' | ' | ' | ' | ' | ' | 17 | 149 | ' |
Goodwill, Impairment Loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 142 | 142 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | 7 |
Other Asset Impairment Charges | 2 | ' | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20 | $70 | ' | ' | ' |
Restructuring_and_Impairments_2
Restructuring and Impairments - Restructuring Liability (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Employee Severance [Member] | Employee Severance [Member] | Employee Severance [Member] | Employee Severance [Member] | Employee Relocation [Member] | Employee Relocation [Member] | Lease Vacancy [Member] [Domain] | Lease Vacancy [Member] [Domain] | Other Restructuring [Member] | Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Charges | $8 | $6 | $11 | $8 | $8 | $11 | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring liability at beginning of year | ' | ' | 34 | 89 | ' | ' | 15 | 72 | 0 | 0 | 18 | 17 | 1 | 0 |
Additions | ' | ' | 11 | 9 | ' | ' | 9 | 1 | 1 | 2 | 1 | 2 | 0 | 4 |
Payments | ' | ' | -15 | -52 | ' | ' | -8 | -44 | -1 | -2 | -4 | -3 | -2 | -3 |
Adjustments | ' | ' | 0 | -1 | ' | ' | 0 | -3 | 0 | 0 | 0 | 2 | 0 | 0 |
Restructuring liability at end of year | $30 | $45 | $30 | $45 | $16 | $15 | $16 | $26 | $0 | $0 | $15 | $18 | ($1) | $1 |
Finance_Receivables_Finance_Re
Finance Receivables - Finance Receivables (Details) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
segments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Net Amount | $2,000,000,000 | $1,900,000,000 |
Number of Portfolio Segments for Finance Receivables | 2 | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 2,048,000,000 | 1,958,000,000 |
Less: Allowance for Doubtful accounts | 24,000,000 | 23,000,000 |
Total finance receivables, net | 2,024,000,000 | 1,935,000,000 |
Financing Receivable, Recorded Investment, Current | 1,713,000,000 | 1,597,000,000 |
Finance Receivables, Noncurrent | 311,000,000 | 338,000,000 |
Retail Portfolio [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 807,000,000 | 751,000,000 |
Wholesale Portfolio [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 1,241,000,000 | 1,207,000,000 |
Financial Services Operations [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Assets Net Of Intercompany Balances | $2,500,000,000 | $2,400,000,000 |
Finance_Receivables_Securitiza
Finance Receivables - Securitizations (Details) (Trac Funding Facility [Member], USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Trac Funding Facility [Member] | ' | ' |
Schedule of Securitization [Line Items] | ' | ' |
Finance Receivables Retail Accounts Collateral For Borrowed Securities | $989 | $948 |
Cash Collateral for Borrowed Securities | $2 | $4 |
Finance_Receivables_Finance_Re1
Finance Receivables - Finance Revenues (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Finance Revenues [Line Items] | ' | ' | ' | ' |
Retail notes and finance leases revenue | $16 | $20 | $33 | $41 |
Gross finance revenues | 57 | 58 | 112 | 117 |
Less: Intercompany revenues | -19 | -19 | -35 | -39 |
Finance revenues | 38 | 39 | 77 | 78 |
Financing Receivable [Member] | ' | ' | ' | ' |
Finance Revenues [Line Items] | ' | ' | ' | ' |
Operating lease revenue | 15 | 12 | 29 | 24 |
Wholesale Portfolio [Member] | Notes Receivable [Member] | ' | ' | ' | ' |
Finance Revenues [Line Items] | ' | ' | ' | ' |
Interest Income, Operating | 19 | 19 | 37 | 39 |
Retail And Wholesale Portfolios [Member] | ' | ' | ' | ' |
Finance Revenues [Line Items] | ' | ' | ' | ' |
Interest Income, Operating | $7 | $7 | $13 | $13 |
Allowance_for_Doubtful_Account2
Allowance for Doubtful Accounts - Retail, Wholesale, Trade & Other (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
class | class | |||
segments | segments | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Number of Portfolio Segments for Finance Receivables | 2 | ' | 2 | ' |
Classes of Receivables in Each Portfolio | 1 | ' | 1 | ' |
Allowance for doubtful accounts at beginning of period | $60 | $49 | $60 | $51 |
Provision for doubtful accounts, net of recoveries | 4 | 11 | 10 | 11 |
Charge-off of accounts(A) | -5 | -3 | -7 | -6 |
Financing Receivable, Allowance for Credit Losses, Other | 3 | 1 | -1 | 2 |
Allowance for doubtful accounts at end of period | 62 | 58 | 62 | 58 |
Loss on Contract Termination for Default | 1 | 1 | 1 | 1 |
Retail Portfolio [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Allowance for doubtful accounts at beginning of period | 22 | 23 | 21 | 27 |
Provision for doubtful accounts, net of recoveries | 3 | 1 | 7 | -1 |
Charge-off of accounts(A) | -3 | -3 | -5 | -6 |
Financing Receivable, Allowance for Credit Losses, Other | 0 | 1 | -1 | 2 |
Allowance for doubtful accounts at end of period | 22 | 22 | 22 | 22 |
Impaired Financing Receivable, Average Recorded Investment | ' | ' | 16 | 13 |
Wholesale Portfolio [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Allowance for doubtful accounts at beginning of period | 2 | 2 | 2 | 0 |
Provision for doubtful accounts, net of recoveries | 0 | 0 | 0 | 2 |
Charge-off of accounts(A) | 0 | 0 | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Other | 0 | 0 | 0 | 0 |
Allowance for doubtful accounts at end of period | 2 | 2 | 2 | 2 |
Trade and Other Receivables [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Allowance for doubtful accounts at beginning of period | 36 | 24 | 37 | 24 |
Provision for doubtful accounts, net of recoveries | 1 | 10 | 3 | 10 |
Charge-off of accounts(A) | -2 | 0 | -2 | 0 |
Financing Receivable, Allowance for Credit Losses, Other | 3 | 0 | 0 | 0 |
Allowance for doubtful accounts at end of period | $38 | $34 | $38 | $34 |
Allowance_for_Doubtful_Account3
Allowance for Doubtful Accounts - Impaired Finance Receivables (Details) (USD $) | 6 Months Ended | |||||||||||||||||||||||||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 |
Retail Portfolio [Member] | Retail Portfolio [Member] | Impaired finance receivables with specific loss reserves [Member] | Impaired finance receivables with specific loss reserves [Member] | Impaired finance receivables with specific loss reserves [Member] | Impaired finance receivables with specific loss reserves [Member] | Impaired finance receivables with specific loss reserves [Member] | Impaired finance receivables with specific loss reserves [Member] | Impaired financing receivable without specific loss reserves [Member] | Impaired financing receivable without specific loss reserves [Member] | Impaired financing receivable without specific loss reserves [Member] | Impaired financing receivable without specific loss reserves [Member] | Impaired financing receivable without specific loss reserves [Member] | Impaired financing receivable without specific loss reserves [Member] | Specific loss reserves on impaired finance receivables [Member] | Specific loss reserves on impaired finance receivables [Member] | Specific loss reserves on impaired finance receivables [Member] | Specific loss reserves on impaired finance receivables [Member] | Specific loss reserves on impaired finance receivables [Member] | Specific loss reserves on impaired finance receivables [Member] | Finance receivable non-accrual status [Member] | Finance receivable non-accrual status [Member] | Finance receivable non-accrual status [Member] | Finance receivable non-accrual status [Member] | Finance receivable non-accrual status [Member] | Finance receivable non-accrual status [Member] | |
Retail Portfolio [Member] | Retail Portfolio [Member] | Wholesale Portfolio [Member] | Wholesale Portfolio [Member] | Retail Portfolio [Member] | Retail Portfolio [Member] | Wholesale Portfolio [Member] | Wholesale Portfolio [Member] | Retail Portfolio [Member] | Retail Portfolio [Member] | Wholesale Portfolio [Member] | Wholesale Portfolio [Member] | Retail Portfolio [Member] | Retail Portfolio [Member] | Wholesale Portfolio [Member] | Wholesale Portfolio [Member] | |||||||||||
Finance Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment | ' | ' | $14 | $15 | $14 | $15 | $0 | $0 | $1 | $1 | $1 | $1 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Specific loss reserves on impaired finance receivables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 6 | 6 | 6 | 0 | 0 | ' | ' | ' | ' | ' | ' |
Finance receivables on non-accrual status | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | 10 | 15 | 10 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | $16 | $13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance_for_Doubtful_Account4
Allowance for Doubtful Accounts - Aging Analysis (Details) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Finance Receivables, Current | $1,961 | $1,903 |
30-90 days past due | 71 | 46 |
Over 90 days past due | 16 | 9 |
Total finance receivables | 2,048 | 1,958 |
Retail Portfolio [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Finance Receivables, Current | 724 | 699 |
30-90 days past due | 69 | 44 |
Over 90 days past due | 14 | 8 |
Total finance receivables | 807 | 751 |
Wholesale Portfolio [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Finance Receivables, Current | 1,237 | 1,204 |
30-90 days past due | 2 | 2 |
Over 90 days past due | 2 | 1 |
Total finance receivables | $1,241 | $1,207 |
Inventories_Inventory_Details
Inventories - Inventory (Details) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished products | $808 | $692 |
Work in process | 74 | 58 |
Raw materials | 502 | 460 |
Total inventories | $1,384 | $1,210 |
Debt_Manufacturing_Operations_
Debt - Manufacturing Operations (Details) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Debt, Current | $956 | $1,163 |
Long-term Debt and Capital Lease Obligations | 4,144 | 3,922 |
Manufacturing Operations [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | 3,170 | 3,219 |
Debt, Current | 267 | 658 |
Long-term Debt and Capital Lease Obligations | 2,903 | 2,561 |
Manufacturing Operations [Member] | Line of Credit [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | ' | 693 |
Debt Instrument, Unamortized Discount | 4 | 4 |
Manufacturing Operations [Member] | Debt Of Majority Owned Dealerships [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | ' | 48 |
Manufacturing Operations [Member] | Financing Arrangements and Capital Lease Obligations [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | 59 | 77 |
Manufacturing Operations [Member] | Tax Exempt Bond [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | ' | 225 |
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | ' |
Manufacturing Operations [Member] | Promissory Note [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | ' | 20 |
Manufacturing Operations [Member] | Financed lease obligations [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | ' | 218 |
Manufacturing Operations [Member] | Other [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | ' | 39 |
Eight Point Two Five Percent Senior Notes [Member] | Manufacturing Operations [Member] | Notes Payable to Banks [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | ' | 1,178 |
Debt Instrument, Unamortized Discount | 21 | 22 |
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | ' |
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | 2014 [Member] | Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | ' | 544 |
Debt Instrument, Unamortized Discount | 4 | 26 |
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ' |
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | 2018 [Member] | Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | ' | 177 |
Debt Instrument, Unamortized Discount | 21 | 23 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ' |
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ' |
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | 2019 [Member] | Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | ' | 0 |
Debt Instrument, Unamortized Discount | $43 | ' |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ' |
Debt_Financial_Services_Operat
Debt - Financial Services Operations (Details) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Debt, Current | $956 | $1,163 |
Long-term Debt and Capital Lease Obligations | 4,144 | 3,922 |
Financial Services Operations [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | 1,930 | 1,866 |
Debt, Current | 689 | 505 |
Long-term Debt and Capital Lease Obligations | 1,241 | 1,361 |
Financial Services Operations [Member] | Secured Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | ' | 778 |
Financial Services Operations [Member] | Line of Credit [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | ' | 1,018 |
Financial Services Operations [Member] | Commercial Paper [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | ' | 21 |
Financial Services Operations [Member] | Borrowings Secured By Operating and Finance Leases [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, net | ' | $49 |
Debt_Narrative_Details
Debt - Narrative (Details) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Apr. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2014 | Nov. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Oct. 31, 2009 | Apr. 30, 2014 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Oct. 31, 2009 | Apr. 30, 2014 | Oct. 31, 2009 | Apr. 30, 2014 | Apr. 30, 2014 |
USD ($) | Financial Services Operations [Member] | International Truck Leasing Corporation [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Minimum [Member] | Maximum [Member] | Call Option [Member] | Call Option [Member] | Call Option [Member] | Other Noncurrent Assets [Member] | Additional Paid-in Capital [Member] | |
VFN Facility [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | ||
USD ($) | USD ($) | Investor Notes Maturing 2018 [Member] | Investor Notes Maturing 2018 [Member] | Days | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Eight Point Two Five Percent Senior Notes [Member] | Eight Point Two Five Percent Senior Notes [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | |||
USD ($) | MXN | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Days | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | ||||||||
USD ($) | USD ($) | USD ($) | ||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | $500 | $21 | ' | ' | ' | $411 | $570 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | 4.75% | ' | ' | 8.25% | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Senior Long-term Debt | ' | ' | ' | ' | ' | ' | 402 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Related Commitment Fees and Debt Issuance Costs | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 1 |
Debt Instrument, Unamortized Discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21 | 22 | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Fair Value | ' | ' | ' | ' | ' | ' | 367 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Carrying Amount of Equity Component | ' | ' | ' | ' | ' | ' | 44 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | ' | ' | ' | ' | ' | 130.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Threshold Trading Days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Threshold Consecutive Trading Days | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Measurement Period, Trading Days, Ending | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Measurement Period, Business Days | ' | ' | ' | ' | ' | '5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Redemption Price, Percentage | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option Indexed to Issuer's Equity, Strike Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54.07 | 50.27 | ' | ' |
Debt Instrument Convertible Conversion Price Percent | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold percentage of last reported sale price of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98.00% | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Ratio | ' | ' | ' | ' | ' | 18.4946 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Warrants | ' | ' | ' | ' | ' | ' | ' | 87 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for Derivative Instrument, Investing Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125 | ' | ' |
Option Indexed to Issuer's Equity, Indexed Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,337,870 | ' | 11,337,870 | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | ' | ' | ' | ' | ' | ' | 60.14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Long-term Debt | ' | ' | ' | ' | ' | ' | ' | ' | 404 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of Call Options Unwound | 8,026,456 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of Warrants Unwound | 6,523,319 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge Related to Repurchase of Debt | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Debt | ' | ' | ' | $61 | 800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Postretirement_Benefits_Define
Postretirement Benefits - Defined Benefit Plans (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Oct. 31, 1993 |
Pension Plan, Defined Benefit [Member] | Pension Plan, Defined Benefit [Member] | Pension Plan, Defined Benefit [Member] | Pension Plan, Defined Benefit [Member] | Other Pension Plan, Postretirement or Supplemental Plans, Defined Benefit [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts contributed to meet regulatory funding requirements | ' | ' | ' | ' | $36 | $30 | $65 | $57 | ' |
Defined Contribution Plan, Cost Recognized | 7 | 8 | 15 | 15 | ' | ' | ' | ' | ' |
Contribution to the Supplemental Trust shares | ' | ' | ' | ' | ' | ' | ' | ' | 25.5 |
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | ' | ' | $133 | ' | ' | ' | ' | ' | ' |
Postretirement_Benefits_Compon
Postretirement Benefits - Components of Postretirement Benefits Expense (Income) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Pension Plan, Defined Benefit [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Service cost for benefits earned during the period | $2 | $5 | $6 | $10 |
Interest on obligation | 40 | 36 | 79 | 72 |
Amortization of cumulative loss | 23 | 32 | 47 | 64 |
Amortization of prior service benefit | 0 | 0 | 0 | 0 |
Premiums on pension insurance | 0 | 1 | 0 | 1 |
Expected return on assets | -48 | -47 | -96 | -94 |
Net postretirement benefits expense | 17 | 27 | 36 | 53 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Service cost for benefits earned during the period | 1 | 2 | 2 | 4 |
Interest on obligation | 17 | 16 | 34 | 31 |
Amortization of cumulative loss | 4 | 8 | 8 | 15 |
Amortization of prior service benefit | -1 | -1 | -2 | -2 |
Premiums on pension insurance | 0 | 0 | 0 | 0 |
Expected return on assets | -8 | -9 | -16 | -17 |
Net postretirement benefits expense | $13 | $16 | $26 | $31 |
Income_Taxes_Income_Tax_Detail
Income Taxes - Income Tax (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Oct. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Apr. 30, 2014 |
State and Local Jurisdiction | State and Local Jurisdiction | State and Local Jurisdiction | Senior Subordinated Notes [Member] | |||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Expense (Benefit) | $23 | $22 | $11 | $37 | ' | ' | ' | ($13) |
Deferred Tax Assets, Valuation Allowance | 29 | ' | ' | ' | ' | ' | ' | ' |
Income Taxes Percent Likelihood Of Being Realized Upon Settlement | 50.00% | ' | 50.00% | ' | ' | ' | ' | ' |
Liability for uncertain tax positions | 63 | ' | 63 | ' | ' | ' | ' | ' |
Unrecognized tax benefits that would not impact effective tax rate | 7 | ' | 7 | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 1 | ' | -2 | ' | ' | ' | ' | ' |
Liability for Uncertain Tax Benefits term range | ' | ' | '12 days | ' | ' | ' | ' | ' |
Liability for Uncertain Tax Positions | ' | ' | ' | ' | ' | 8 | 12 | ' |
Tax Adjustments, Settlements, and Unusual Provisions | ' | ' | ' | ' | $4 | ' | ' | ' |
Fair_Value_Measurements_Financ
Fair Value Measurements - Financial Instruments Measured on Recurring Basis (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure | $534 | $830 |
Guarantees, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure | 2 | 5 |
Guarantees, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure | 0 | 0 |
Guarantees, Fair Value Disclosure | 6 | 6 |
Liabilities, Fair Value Disclosure | 6 | 6 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure | 536 | 835 |
Guarantees, Fair Value Disclosure | 6 | 6 |
Liabilities, Fair Value Disclosure | 6 | 6 |
US Treasury Bill Securities [Member] | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 241 | 396 |
US Treasury Bill Securities [Member] | Level 2 | ' | ' |
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] | Level 3 | ' | ' |
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] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 241 | 396 |
Other Investment Companies [Member] | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 293 | 434 |
Other Investment Companies [Member] | Level 2 | ' | ' |
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] | Level 3 | ' | ' |
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] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 293 | 434 |
Foreign Exchange Contract [Member] | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Foreign currency contracts | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Foreign Exchange Contract [Member] | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Foreign currency contracts | 0 | 4 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Foreign Exchange Contract [Member] | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Foreign currency contracts | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Foreign Exchange Contract [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Foreign currency contracts | 0 | 4 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Interest Rate Cap [Member] | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Foreign currency contracts | 0 | 0 |
Interest Rate Cap [Member] | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Foreign currency contracts | 2 | 1 |
Interest Rate Cap [Member] | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Foreign currency contracts | 0 | 0 |
Interest Rate Cap [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Foreign currency contracts | $2 | $1 |
Fair_Value_Measurements_Level_
Fair Value Measurements - Level 3 Reconciliation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Guarantees [Member] | ' | ' | ' | ' |
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 | ($6) | ($7) | ($6) | ($7) |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset (Liability) Ending Value | -6 | -7 | -6 | -7 |
Change in unrealized gains on assets and liabilities still held | 0 | 0 | 0 | 0 |
Commodity Contract [Member] | ' | ' | ' | ' |
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 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset (Liability) Ending Value | 0 | 0 | 0 | 0 |
Change in unrealized gains on assets and liabilities still held | $0 | $0 | $0 | $0 |
Fair_Value_Measurements_Financ1
Fair Value Measurements - Financial Instruments Measured on Nonrecurring Basis (Details) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
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 | $14 | $15 | ||
Impaired finance receivables with specific loss reserves [Member] | Level 2 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired Financing Receivable, Recorded Investment | 14 | [1] | 15 | [1] |
Specific loss reserves on impaired finance receivables [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Specific loss reserve | -6 | -6 | ||
Specific loss reserves on impaired finance receivables [Member] | Level 2 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Specific loss reserve | -6 | -6 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | Level 2 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Finance Receivables Fair Value Disclosure | $8 | $9 | ||
[1] | Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors. |
Fair_Value_Measurements_Carryi
Fair Value Measurements - Carrying Values and Estimated Fair Values of Financial Instruments (Details) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Retail Notes | $306 | $390 | ||
Notes Receivable | 10 | 13 | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Retail Notes | 302 | 390 | ||
Notes Receivable | 69 | 14 | ||
Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Retail Notes | 0 | 0 | ||
Notes Receivable | 0 | 0 | ||
Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Retail Notes | 0 | 0 | ||
Notes Receivable | 0 | 0 | ||
Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Retail Notes | 306 | 390 | ||
Notes Receivable | 10 | 13 | ||
Manufacturing Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 3,170 | 3,219 | ||
Financial Services Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 1,930 | 1,866 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 693 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 701 | 720 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 694 | 693 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 701 | 720 | ||
Line of Credit [Member] | Financial Services Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 1,018 | ||
Line of Credit [Member] | Financial Services Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 984 | 990 | ||
Line of Credit [Member] | Financial Services Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 1,005 | 1,018 | ||
Line of Credit [Member] | Financial Services Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Line of Credit [Member] | Financial Services Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Line of Credit [Member] | Financial Services Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 984 | 990 | ||
Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 1,277 | 1,274 | ||
Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 1,178 | ||
Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 1,277 | 1,274 | ||
Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | ' | 203 | [1] | |
Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 177 | [1] | |
Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | ' | 0 | [1] | |
Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | ' | 0 | ||
Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | ' | 203 | [1] | |
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 48 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 48 | 48 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 48 | 48 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 48 | 48 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 29 | 44 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 56 | 73 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 29 | 44 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 225 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 227 | 229 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 225 | 225 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 227 | 229 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Promissory Note [Member] | Manufacturing Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 20 | ||
Promissory Note [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 15 | 20 | ||
Promissory Note [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 15 | 20 | ||
Promissory Note [Member] | Manufacturing Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Promissory Note [Member] | Manufacturing Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Promissory Note [Member] | Manufacturing Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 15 | 20 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 218 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 205 | 218 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 205 | 218 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 205 | 218 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 39 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 33 | 36 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 35 | 39 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 33 | 36 | ||
Secured Debt [Member] | Financial Services Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 778 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 838 | 775 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 844 | 778 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 838 | 775 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 21 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 30 | 21 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 30 | 21 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | Level 1 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 30 | ' | ||
Commercial Paper [Member] | Financial Services Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | ' | 21 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | Level 2 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | ' | ||
Commercial Paper [Member] | Financial Services Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | ' | 0 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | Level 3 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | ' | ||
Commercial Paper [Member] | Financial Services Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | ' | 0 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 49 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 51 | 49 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 51 | 49 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 51 | 49 | ||
2014 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 169 | [1] | 586 | [1] |
2014 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 544 | [1] | |
2014 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 169 | [1] | 586 | [1] |
2014 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | [1] | 0 | [1] |
2014 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | [1] | 0 | [1] |
2018 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 203 | [1] | ' | |
2018 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | [1] | ' | |
2018 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | [1] | ' | |
2018 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 203 | [1] | ' | |
2019 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 434 | [1] | ' | |
2019 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Level 1 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | [1] | ' | |
2019 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Level 2 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 0 | [1] | ' | |
2019 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Level 3 | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 434 | [1] | ' | |
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 1,178 | ||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 1,179 | ' | ||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | 2014 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 544 | ||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | 2014 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 163 | ' | ||
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | 2018 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 177 | ||
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | 2018 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | 179 | ' | ||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt, Fair Value | 367 | ' | ||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | 2019 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | ' | 0 | ||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | 2019 [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term Debt | $368 | ' | ||
[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 quoted market prices for the convertible note which includes the equity feature. |
Fair_Value_Measurements_Narrat
Fair Value Measurements Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Jan. 31, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Jan. 31, 2014 |
NA Truck [Member] | NA Truck [Member] | Brazilian Reporting Unit [Member] | Brazilian Reporting Unit [Member] | Brazilian Reporting Unit [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and Cash Equivalents, Maturity Term | ' | ' | '90 days | ' | ' | ' | ' | ' | ' |
Marketable Securities, Maturity Term | ' | ' | '90 days | ' | ' | ' | ' | ' | ' |
Goodwill, Impairment Loss | ' | ' | ' | ' | ' | ' | $142 | $142 | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | ' | ' | ' | ' | ' | ' | ' | ' | 43 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | ' | ' | ' | ' | ' | ' | 7 | 7 | ' |
Other Assets | ' | ' | ' | ' | 18 | ' | ' | ' | ' |
Asset impairment charges | $151 | $0 | $169 | $0 | $18 | $19 | $149 | ' | ' |
Financial_Instruments_and_Comm2
Financial Instruments and Commodity Contracts - Narrative (Details) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Apr. 30, 2014 |
Interest Rate Contract [Member] | Interest Rate Contract [Member] | Steel Forward Contracts [Member] | Steel Forward Contracts [Member] | Diesel Fuel Forward Contracts [Member] | Diesel Fuel Forward Contracts [Member] | Mexican Financial Services [Member] | Mexican Financial Services [Member] | |||
Commodity Contract [Member] | Commodity Contract [Member] | Commodity Contract [Member] | Commodity Contract [Member] | Interest Rate Cap [Member] | Asset-backed Securities [Member] | |||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Amount of Hedged Item | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Exposure to Credit Risk | 2,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | ' | ' | $22,000,000 | $45,000,000 | $19,000,000 | $11,000,000 | $4,000,000 | $2,000,000 | $78,000,000 | $137,000,000 |
Financial_Instruments_and_Comm3
Financial Instruments and Commodity Contracts - Balance Sheet Location (Details) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset derivatives | $2 | $5 |
Other Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability derivatives | 2 | 0 |
Foreign Exchange Contract [Member] | Other Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset derivatives | 0 | 4 |
Foreign Exchange Contract [Member] | Other Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability derivatives | 2 | 0 |
Interest Rate Cap [Member] | Other Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset derivatives | 2 | 1 |
Interest Rate Cap [Member] | Other Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability derivatives | $0 | $0 |
Financial_Instruments_and_Comm4
Financial Instruments and Commodity Contracts - Income Statement Location (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $2 | $1 | $2 | $0 |
Cross currency swaps | Other Income Expense Net [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -1 | 0 | 0 | 0 |
Interest Rate Cap [Member] | Interest Expense [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 2 | 0 | 1 | ' |
Foreign currency contracts | Other Income Expense Net [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 1 | -1 | 1 | -2 |
Forward Contracts [Member] | Commodity Contract [Member] | Cost of Sales [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $0 | ($2) | $0 | ($2) |
Financial_Instruments_and_Comm5
Financial Instruments and Commodity Contracts - Foreign Currency Contracts (Details) (Foreign Exchange Contract [Member]) | Apr. 30, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 |
In Millions, unless otherwise specified | EUR (€) | EUR (€) | Contract 1 [Member] | Contract 1 [Member] | Contract 2 [Member] |
USD ($) | CAD | CAD | |||
Derivative [Line Items] | ' | ' | ' | ' | ' |
Derivative, Notional Amount | € 16 | € 2 | $25 | 90 | 50 |
Commitments_and_Contingencies_
Commitments and Contingencies - Commitments and Contingencies (Details) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||
Jan. 31, 2013 | Apr. 30, 2014 | Mar. 31, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Oct. 25, 2011 | 31-May-13 | Dec. 31, 2012 | Apr. 30, 2014 | Dec. 31, 1999 | 30-May-10 | Dec. 31, 2009 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Apr. 30, 2014 | |
USD ($) | USD ($) | Sao Paulo Groundwater Notice [Member] | Sao Paulo Groundwater Notice [Member] | Non-conformance Penalties [Member] | Non-conformance Penalties [Member] | Non-conformance Penalties [Member] | Non-conformance Penalties [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Damages from Product Defects [Member] | California Air Resources Board (CARB) [Member] | G E Operating Agreement [Member] | G E Operating Agreement [Member] | Minimum [Member] | Maximum [Member] | G E Operating Agreement [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | |
site | Sanctions [Member] | Sanctions [Member] | USD ($) | USD ($) | USD ($) | USD ($) | Disputes [Member] | FATMA Notice, Trial [Member] | FATMA Notice, Trial [Member] | Lis Franco vs. Syntex and MWM, Trial [Member] | Lis Franco vs. Syntex and MWM, Trial [Member] | Lis Franco vs. Syntex and MWM, Trial [Member] | Lis Franco vs. Syntex and MWM, Trial [Member] | Lis Franco vs. Syntex and MWM, Trial [Member] | Lis Franco vs. Syntex and MWM, Trial [Member] | Lis Franco vs. Syntex and MWM, Trial [Member] | engine | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Financed lease obligations [Member] | G E Operating Agreement [Member] | ||||
BRL | USD ($) | USD ($) | Penalties [Member] | Penalties [Member] | BRL | BRL | BRL | USD ($) | Royalties [Member] | Royalties [Member] | Royalties [Member] | USD ($) | Financed lease obligations [Member] | ||||||||||||||||
USD ($) | BRL | BRL | BRL | BRL | USD ($) | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Agreement Excess Loss Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Sharing Agreement, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Off Balance Sheet Finance Receivables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,500,000,000 | $1,400,000,000 | ' | ' | ' | ' | ' | ' | ' |
Off Balance Sheet Finance Receivables Related Originations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,200,000,000 | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Equipment on Lease | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 178,000,000 | ' | ' | ' | ' |
Long-term Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,170,000,000 | 3,219,000,000 | 218,000,000 | 205,000,000 |
Historical losses on finance receivables, measured as percentage of average balance of related finance receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.30% | 2.10% | ' | ' | ' | ' | ' |
Available stand-by letters of credit and surety bonds | ' | 128,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Current Borrowing Capacity | ' | 11,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | ' | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase commitments | ' | 187,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long Term Purchase Commitment Cancellation Fees | ' | 46,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Contaminated Sites | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Contaminated Sites in Sao Paulo, Brazil | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual for environmental loss contingencies | ' | 22,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Damages sought, value | ' | ' | 3,000,000 | 1,000,000 | ' | ' | ' | ' | 50,000,000 | 1,000,000 | 2,000,000 | 10,850,000 | 25,000,000 | 22,000,000 | 11,000,000 | 42,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimate of possible loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,000,000 | 74,000,000 | 70,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Legal Settlements | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notice of Violation, number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory Penalty | ' | ' | ' | ' | $1,000,000 | $12,000,000 | $2,000,000 | $22,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment_Reporting_Segment_Repo
Segment Reporting - Segment Reporting (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | ||||
segments | ||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Number Of Segments | ' | ' | 4 | ' | ||||
External sales and revenues, net | $2,746 | $2,526 | $4,954 | $5,163 | ||||
Intersegment sales and revenues | 0 | 0 | 0 | 0 | ||||
External sales and revenues, net | 2,746 | 2,526 | 4,954 | 5,163 | ||||
Sales and revenues, net | 2,746 | 2,526 | 4,954 | 5,163 | ||||
Net loss attributable to Navistar International Corporation | -297 | -374 | -545 | -497 | ||||
Income (Loss) from Continuing Operations Attributable to Parent | -298 | -353 | -547 | -467 | ||||
Income tax expense | -23 | -22 | -11 | -37 | ||||
Segment profit (loss) | -275 | -331 | -536 | -430 | ||||
Depreciation and amortization | 99 | 142 | 185 | 242 | ||||
Interest expense | 74 | 90 | 156 | 164 | ||||
Equity in income (loss) of non-consolidated affiliates | 3 | 4 | 3 | 3 | ||||
Capital expenditures | 29 | [1] | 35 | [1] | 50 | [1] | 107 | [1] |
NA Truck [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
External sales and revenues, net | 1,680 | 1,395 | 2,957 | 2,933 | ||||
Intersegment sales and revenues | 129 | 120 | 217 | 247 | ||||
External sales and revenues, net | 1,809 | 1,515 | 3,174 | 3,180 | ||||
Sales and revenues, net | 1,809 | 1,515 | 3,174 | 3,180 | ||||
Net loss attributable to Navistar International Corporation | -134 | -303 | -341 | -404 | ||||
Income tax expense | 0 | 0 | 0 | 0 | ||||
Segment profit (loss) | -134 | -303 | -341 | -404 | ||||
Depreciation and amortization | 69 | 114 | 127 | 185 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Equity in income (loss) of non-consolidated affiliates | 1 | 3 | 2 | 5 | ||||
Capital expenditures | 26 | [1] | 28 | [1] | 38 | [1] | 93 | [1] |
NA Parts [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Number Of Regional Parts Distribution Centers | 11 | ' | 11 | ' | ||||
External sales and revenues, net | 611 | 621 | 1,208 | 1,290 | ||||
Intersegment sales and revenues | 12 | 14 | 22 | 32 | ||||
External sales and revenues, net | 623 | 635 | 1,230 | 1,322 | ||||
Sales and revenues, net | 623 | 635 | 1,230 | 1,322 | ||||
Net loss attributable to Navistar International Corporation | 126 | 114 | 230 | 231 | ||||
Income tax expense | 0 | 0 | 0 | 0 | ||||
Segment profit (loss) | 126 | 114 | 230 | 231 | ||||
Depreciation and amortization | 4 | 4 | 8 | 8 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Equity in income (loss) of non-consolidated affiliates | 1 | 2 | 2 | 3 | ||||
Capital expenditures | 1 | [1] | 0 | [1] | 5 | [1] | 1 | [1] |
Global [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
External sales and revenues, net | 417 | 471 | 712 | 862 | ||||
Intersegment sales and revenues | 6 | 22 | 14 | 37 | ||||
External sales and revenues, net | 423 | 493 | 726 | 899 | ||||
Sales and revenues, net | 423 | 493 | 726 | 899 | ||||
Net loss attributable to Navistar International Corporation | -150 | 32 | -183 | 22 | ||||
Income tax expense | 0 | 0 | 0 | 0 | ||||
Segment profit (loss) | -150 | 32 | -183 | 22 | ||||
Depreciation and amortization | 8 | 9 | 16 | 18 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Equity in income (loss) of non-consolidated affiliates | 1 | -1 | -1 | -5 | ||||
Capital expenditures | 1 | [1] | 4 | [1] | 4 | [1] | 7 | [1] |
Financial Services Operations [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
External sales and revenues, net | 38 | [2] | 39 | [2] | 77 | [2] | 78 | [2] |
Intersegment sales and revenues | 19 | [2] | 19 | [2] | 35 | [2] | 39 | [2] |
External sales and revenues, net | 57 | [2] | 58 | [2] | 112 | [2] | 117 | [2] |
Sales and revenues, net | 57 | [2] | 58 | [2] | 112 | [2] | 117 | [2] |
Net loss attributable to Navistar International Corporation | 24 | [2] | 19 | [2] | 47 | [2] | 41 | [2] |
Income tax expense | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Segment profit (loss) | 24 | [2] | 19 | [2] | 47 | [2] | 41 | [2] |
Depreciation and amortization | 11 | [2] | 10 | [2] | 21 | [2] | 19 | [2] |
Interest expense | 17 | [2] | 17 | [2] | 34 | [2] | 35 | [2] |
Equity in income (loss) of non-consolidated affiliates | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Capital expenditures | 0 | [1],[2] | 1 | [1],[2] | 1 | [1],[2] | 1 | [1],[2] |
Interest revenues | 42 | 46 | 82 | 93 | ||||
Corporate And Eliminations [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
External sales and revenues, net | 0 | 0 | 0 | 0 | ||||
Intersegment sales and revenues | -166 | -175 | -288 | -355 | ||||
External sales and revenues, net | -166 | -175 | -288 | -355 | ||||
Sales and revenues, net | -166 | -175 | -288 | -355 | ||||
Net loss attributable to Navistar International Corporation | -164 | -215 | -300 | -357 | ||||
Income tax expense | -23 | -22 | -11 | -37 | ||||
Segment profit (loss) | -141 | -193 | -289 | -320 | ||||
Depreciation and amortization | 7 | 5 | 13 | 12 | ||||
Interest expense | 57 | 73 | 122 | 129 | ||||
Equity in income (loss) of non-consolidated affiliates | 0 | 0 | 0 | 0 | ||||
Capital expenditures | $1 | [1] | $2 | [1] | $2 | [1] | $5 | [1] |
[1] | Exclusive of purchases of equipment leased to others. | |||||||
[2] | (A)Total sales and revenues in the Financial Services segment include interest revenues of $42 million and $82 million for the three and six months ended April 30, 2014, respectively and $46 million and $93 million for the three and six months ended April 30, 2013, respectively. |
Segment_Reporting_Segment_Asse
Segment Reporting - Segment Assets (Details) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Segment Assets | $7,727 | $8,315 |
NA Truck [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment Assets | 2,306 | 2,250 |
NA Parts [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment Assets | 671 | 716 |
Global [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment Assets | 878 | 1,162 |
Financial Services Operations [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment Assets | 2,494 | 2,355 |
Corporate And Eliminations [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment Assets | $1,378 | $1,832 |
Stockholders_Deficit_Details
Stockholders' Deficit (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jan. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2014 | Apr. 30, 2013 |
Class of Stock [Line Items] | ' | ' | ' | ' |
Proceeds from Issuance of Common Stock | $14 | $192 | $0 | $14 |
Common Stock [Member] | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | 763,534 | 10,666,666 | ' | ' |
Share Price | $18.75 | $18.75 | ' | ' |
Stockholders_Deficit_Accumulat
Stockholders' Deficit Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Accumulated Other Comprehensive Loss, Beginning Balance | ' | ($1,824) |
Other comprehensive loss before reclassifications | -1 | -2 |
Amounts reclassified out of accumulated other comprehensive loss | 26 | 52 |
Net current-period other comprehensive income (loss) | 25 | 50 |
Accumulated Other Comprehensive Loss, Ending Balance | -1,788 | -1,788 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 26 | 52 |
Prior Service Costs [Member] | Selling, General and Administrative Expenses [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | -1 | -2 |
Unrecognized (Gains) Losses, Net [Member] | Selling, General and Administrative Expenses [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 27 | 54 |
Accumulated Translation Adjustment [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Accumulated Other Comprehensive Loss, Beginning Balance | -137 | -75 |
Other comprehensive loss before reclassifications | 48 | -14 |
Amounts reclassified out of accumulated other comprehensive loss | 0 | 0 |
Net current-period other comprehensive income (loss) | 48 | -14 |
Accumulated Other Comprehensive Loss, Ending Balance | -89 | -89 |
Pension Plan, Defined Benefit [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Accumulated Other Comprehensive Loss, Beginning Balance | -1,724 | -1,749 |
Accumulated Other Comprehensive Loss, Ending Balance | -1,699 | -1,699 |
Other Comprehensive Income (Loss), Tax | 0 | 0 |
transaction type [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Accumulated Other Comprehensive Loss, Beginning Balance | -1,861 | -1,824 |
Other comprehensive loss before reclassifications | 47 | -16 |
Amounts reclassified out of accumulated other comprehensive loss | 26 | 52 |
Net current-period other comprehensive income (loss) | 73 | 36 |
Accumulated Other Comprehensive Loss, Ending Balance | ($1,788) | ($1,788) |
Loss_Per_Share_Attributable_to2
Loss Per Share Attributable to Navistar International Corporation - Basic & Diluted Loss per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Loss from continuing operations, net of tax | ($298) | ($353) | ($547) | ($467) |
Income (loss) from discontinued operations, net of tax | 1 | -21 | 2 | -30 |
Net loss attributable to Navistar International Corporation | ($297) | ($374) | ($545) | ($497) |
Weighted Average Number of Shares Outstanding, Basic | 81.4 | 80.4 | 81.3 | 80.3 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 0 | 0 |
Weighted Average Number of Shares Outstanding, Diluted | 81.4 | 80.4 | 81.3 | 80.3 |
Basic: Loss from Continuing Operations (in dollars per share) | ($3.66) | ($4.39) | ($6.73) | ($5.82) |
Basic: Income (Loss) from Discontinued Operations (in dollars per share) | $0.01 | ($0.26) | $0.03 | ($0.37) |
Basic (in dollars per share) | ($3.65) | ($4.65) | ($6.70) | ($6.19) |
Diluted: Loss from Continuing Operations (in dollars per share) | ($3.66) | ($4.39) | ($6.73) | ($5.82) |
Diluted: Income (Loss) from Discontinued Operations (in dollars per share) | $0.01 | ($0.26) | $0.03 | ($0.37) |
Diluted (in dollars per share) | ($3.65) | ($4.65) | ($6.70) | ($6.19) |
Loss_Per_Share_Attributable_to3
Loss Per Share Attributable to Navistar International Corporation - Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | |||||||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Oct. 31, 2009 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Oct. 31, 2009 | Apr. 30, 2014 | Oct. 31, 2009 | |
Convertible Debt Securities [Domain] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2018 [Member] | 2018 [Member] | 2019 [Member] | 2019 [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Call Option [Member] | Call Option [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | |||||
Convertible Debt Securities [Domain] | Convertible Debt Securities [Domain] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Call Option [Member] | ||||||||||||||
Convertible Debt Securities [Domain] | Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | ||||||||||||||||||
Manufacturing Operations [Member] | ||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Ratio | ' | ' | ' | ' | 17.1233 | ' | ' | ' | ' | ' | 19.891 | ' | ' | ' | ' | 18.4946 | ' | ' | ' | ' |
Debt Instrument Convertible Conversion Ratio Basis | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' |
Option Indexed to Issuer's Equity, Strike Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.27 | ' | ' | ' | ' | ' | ' | ' | ' | 54.07 | 50.27 |
Debt Instrument, Convertible, Conversion Price | ' | ' | ' | ' | $58.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of Call Options Unwound | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment Warrants, Exercise Price | ' | ' | ' | ' | $60.14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of Warrants Unwound | 6,523,319 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option Indexed to Issuer's Equity, Indexed Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,337,870 | ' | 11,337,870 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 24,000,000 | 30,000,000 | 27,300,000 | 29,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares related to warrants | 4,800,000 | 11,300,000 | 8,100,000 | 11,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares related to convertible notes | ' | ' | ' | ' | ' | 3,300,000 | 11,300,000 | 7,300,000 | 11,300,000 | ' | ' | 3,400,000 | 3,400,000 | 7,600,000 | 3,800,000 | ' | ' | ' | ' | ' |
Condensed_Consolidating_Guaran2
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Sales and revenues, net | $2,746 | $2,526 | $4,954 | $5,163 |
Costs of products sold | 2,468 | 2,363 | 4,482 | 4,649 |
Restructuring charges | 8 | 6 | 11 | 8 |
Asset impairment charges | 151 | 0 | 169 | 0 |
All other operating expenses (income) | 386 | 483 | 811 | 915 |
Total costs and expenses | 3,013 | 2,852 | 5,473 | 5,572 |
Equity in income (loss) of non-consolidated affiliates | 3 | 4 | 3 | 3 |
Loss from continuing operations before income taxes | -264 | -322 | -516 | -406 |
Income tax expense | -23 | -22 | -11 | -37 |
Loss from continuing operations | -287 | -344 | -527 | -443 |
Loss from discontinued operations, net of tax | 1 | -21 | 2 | -30 |
Net loss | -286 | -365 | -525 | -473 |
Net Income (Loss) Attributable to Noncontrolling Interest | 11 | 9 | 20 | 24 |
Net loss attributable to Navistar International Corporation | -297 | -374 | -545 | -497 |
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 | ' |
All other operating expenses (income) | 41 | -48 | 77 | -27 |
Total costs and expenses | 41 | -48 | 77 | -27 |
Equity in income (loss) of non-consolidated affiliates | -269 | -422 | -481 | -524 |
Loss from continuing operations before income taxes | -310 | -374 | -558 | -497 |
Income tax expense | 13 | 0 | 13 | 0 |
Loss from continuing operations | -297 | -374 | -545 | -497 |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net loss | -297 | -374 | -545 | -497 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Net loss attributable to Navistar International Corporation | -297 | -374 | -545 | -497 |
Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Sales and revenues, net | 1,893 | 1,493 | 3,317 | 3,102 |
Costs of products sold | 1,797 | 1,622 | 3,222 | 3,217 |
Restructuring charges | 8 | 4 | 10 | 4 |
Asset impairment charges | 0 | ' | 0 | ' |
All other operating expenses (income) | 273 | 349 | 514 | 580 |
Total costs and expenses | 2,078 | 1,975 | 3,746 | 3,801 |
Equity in income (loss) of non-consolidated affiliates | -141 | 50 | -152 | 104 |
Loss from continuing operations before income taxes | -326 | -432 | -581 | -595 |
Income tax expense | -8 | -1 | -1 | -12 |
Loss from continuing operations | -334 | -433 | -582 | -607 |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net loss | -334 | -433 | -582 | -607 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Net loss attributable to Navistar International Corporation | -334 | -433 | -582 | -607 |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Sales and revenues, net | 2,061 | 2,293 | 3,790 | 4,551 |
Costs of products sold | 1,862 | 1,987 | 3,393 | 3,896 |
Restructuring charges | 0 | 2 | 1 | 4 |
Asset impairment charges | 153 | ' | 171 | ' |
All other operating expenses (income) | 89 | 125 | 248 | 317 |
Total costs and expenses | 2,104 | 2,114 | 3,813 | 4,217 |
Equity in income (loss) of non-consolidated affiliates | 2 | 1 | 1 | -1 |
Loss from continuing operations before income taxes | -41 | 180 | -22 | 333 |
Income tax expense | -28 | -21 | -23 | -25 |
Loss from continuing operations | -69 | 159 | -45 | 308 |
Loss from discontinued operations, net of tax | 1 | -21 | 2 | -30 |
Net loss | -68 | 138 | -43 | 278 |
Net Income (Loss) Attributable to Noncontrolling Interest | 11 | 9 | 20 | 24 |
Net loss attributable to Navistar International Corporation | -79 | 129 | -63 | 254 |
Consolidation, Eliminations [Member] | ' | ' | ' | ' |
Sales and revenues, net | -1,208 | -1,260 | -2,153 | -2,490 |
Costs of products sold | -1,191 | -1,246 | -2,133 | -2,464 |
Restructuring charges | 0 | 0 | 0 | 0 |
Asset impairment charges | -2 | ' | -2 | ' |
All other operating expenses (income) | -17 | 57 | -28 | 45 |
Total costs and expenses | -1,210 | -1,189 | -2,163 | -2,419 |
Equity in income (loss) of non-consolidated affiliates | 411 | 375 | 635 | 424 |
Loss from continuing operations before income taxes | 413 | 304 | 645 | 353 |
Income tax expense | 0 | 0 | 0 | 0 |
Loss from continuing operations | 413 | 304 | 645 | 353 |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net loss | 413 | 304 | 645 | 353 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Net loss attributable to Navistar International Corporation | $413 | $304 | $645 | $353 |
Condensed_Consolidating_Guaran3
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Comprehsive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Net loss attributable to Navistar International Corporation | ($297) | ($374) | ($545) | ($497) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | 48 | 3 | -14 | 20 |
Defined benefit plans (net of tax of $233), $14, and $430 respectively) | 25 | 40 | 50 | 78 |
Total other comprehensive income | 73 | 43 | 36 | 98 |
Total comprehensive loss attributable to Navistar International Corporation | -224 | -331 | -509 | -399 |
Parent Company [Member] | ' | ' | ' | ' |
Net loss attributable to Navistar International Corporation | -297 | -374 | -545 | -497 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | 48 | 3 | -14 | 20 |
Defined benefit plans (net of tax of $233), $14, and $430 respectively) | 25 | 40 | 50 | 78 |
Total other comprehensive income | 73 | 43 | 36 | 98 |
Total comprehensive loss attributable to Navistar International Corporation | -224 | -331 | -509 | -399 |
Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Net loss attributable to Navistar International Corporation | -334 | -433 | -582 | -607 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Defined benefit plans (net of tax of $233), $14, and $430 respectively) | 25 | 35 | 50 | 70 |
Total other comprehensive income | 25 | 35 | 50 | 70 |
Total comprehensive loss attributable to Navistar International Corporation | -309 | -398 | -532 | -537 |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Net loss attributable to Navistar International Corporation | -79 | 129 | -63 | 254 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | 48 | 2 | -14 | 20 |
Defined benefit plans (net of tax of $233), $14, and $430 respectively) | 0 | 5 | 0 | 8 |
Total other comprehensive income | 48 | 7 | -14 | 28 |
Total comprehensive loss attributable to Navistar International Corporation | -31 | 136 | -77 | 282 |
Consolidation, Eliminations [Member] | ' | ' | ' | ' |
Net loss attributable to Navistar International Corporation | 413 | 304 | 645 | 353 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | -48 | -2 | 14 | -20 |
Defined benefit plans (net of tax of $233), $14, and $430 respectively) | -25 | -40 | -50 | -78 |
Total other comprehensive income | -73 | -42 | -36 | -98 |
Total comprehensive loss attributable to Navistar International Corporation | $340 | $262 | $609 | $255 |
Condensed_Consolidating_Guaran4
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Balance Sheet (Details) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2013 | Oct. 31, 2012 |
In Millions, unless otherwise specified | ||||
Cash and Cash Equivalents, at Carrying Value | $594 | $755 | $505 | $1,087 |
Marketable securities | 534 | 830 | ' | ' |
Restricted Cash | 112 | 91 | ' | ' |
Finance and other receivables, net | 2,682 | 2,701 | ' | ' |
Inventories | 1,384 | 1,210 | ' | ' |
Investments in non-consolidated affiliates | 69 | 77 | ' | ' |
Property and equipment, net | 1,693 | 1,741 | ' | ' |
Goodwill | 38 | 184 | ' | ' |
Deferred Taxes Net | 192 | 231 | ' | ' |
Intangible Assets Net And Other Assets | 429 | 495 | ' | ' |
Total assets | 7,727 | 8,315 | ' | ' |
Debt | 5,100 | 5,085 | ' | ' |
Net liability recognized | 2,574 | 2,652 | ' | ' |
Amounts due to (from) affiliates | 0 | 0 | ' | ' |
Other Liabilities | 4,125 | 4,179 | ' | ' |
Total liabilities | 11,799 | 11,916 | ' | ' |
Redeemable equity securities | 2 | 4 | ' | ' |
Stockholders’ equity attributable to non-controlling interests | 34 | 44 | ' | ' |
Stockholders' Equity (deficit) Attributable to Navistar International Corporation | -4,108 | -3,649 | ' | ' |
Total liabilities and stockholders’ deficit | 7,727 | 8,315 | ' | ' |
Parent Company [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | 280 | 336 | ' | ' |
Marketable securities | 193 | 581 | ' | ' |
Restricted Cash | 18 | 23 | ' | ' |
Finance and other receivables, net | 3 | 3 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Investments in non-consolidated affiliates | -6,570 | -6,123 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Deferred Taxes Net | 1 | 0 | ' | ' |
Intangible Assets Net And Other Assets | 38 | 36 | ' | ' |
Total assets | -6,037 | -5,144 | ' | ' |
Debt | 2,114 | 2,125 | ' | ' |
Net liability recognized | 0 | 0 | ' | ' |
Amounts due to (from) affiliates | -7,412 | -6,988 | ' | ' |
Other Liabilities | 3,367 | 3,362 | ' | ' |
Total liabilities | -1,931 | -1,501 | ' | ' |
Redeemable equity securities | 2 | 4 | ' | ' |
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | ' | ' |
Stockholders' Equity (deficit) Attributable to Navistar International Corporation | -4,108 | -3,647 | ' | ' |
Total liabilities and stockholders’ deficit | -6,037 | -5,144 | ' | ' |
Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | 44 | 72 | ' | ' |
Marketable securities | 0 | 1 | ' | ' |
Restricted Cash | 4 | 3 | ' | ' |
Finance and other receivables, net | 136 | 148 | ' | ' |
Inventories | 749 | 621 | ' | ' |
Investments in non-consolidated affiliates | 6,433 | 6,600 | ' | ' |
Property and equipment, net | 899 | 937 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Deferred Taxes Net | 13 | 13 | ' | ' |
Intangible Assets Net And Other Assets | 156 | 156 | ' | ' |
Total assets | 8,434 | 8,551 | ' | ' |
Debt | 967 | 1,002 | ' | ' |
Net liability recognized | 2,340 | 2,407 | ' | ' |
Amounts due to (from) affiliates | 11,392 | 10,846 | ' | ' |
Other Liabilities | 624 | 646 | ' | ' |
Total liabilities | 15,323 | 14,901 | ' | ' |
Redeemable equity securities | 0 | 0 | ' | ' |
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | ' | ' |
Stockholders' Equity (deficit) Attributable to Navistar International Corporation | -6,889 | -6,350 | ' | ' |
Total liabilities and stockholders’ deficit | 8,434 | 8,551 | ' | ' |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | 270 | 347 | ' | ' |
Marketable securities | 341 | 248 | ' | ' |
Restricted Cash | 90 | 65 | ' | ' |
Finance and other receivables, net | 2,553 | 2,561 | ' | ' |
Inventories | 648 | 608 | ' | ' |
Investments in non-consolidated affiliates | 66 | 73 | ' | ' |
Property and equipment, net | 790 | 807 | ' | ' |
Goodwill | 38 | 184 | ' | ' |
Deferred Taxes Net | 178 | 219 | ' | ' |
Intangible Assets Net And Other Assets | 237 | 304 | ' | ' |
Total assets | 5,211 | 5,416 | ' | ' |
Debt | 2,024 | 1,960 | ' | ' |
Net liability recognized | 234 | 245 | ' | ' |
Amounts due to (from) affiliates | -4,128 | -3,932 | ' | ' |
Other Liabilities | 210 | 250 | ' | ' |
Total liabilities | -1,660 | -1,477 | ' | ' |
Redeemable equity securities | 0 | 0 | ' | ' |
Stockholders’ equity attributable to non-controlling interests | 34 | 44 | ' | ' |
Stockholders' Equity (deficit) Attributable to Navistar International Corporation | 6,837 | 6,849 | ' | ' |
Total liabilities and stockholders’ deficit | 5,211 | 5,416 | ' | ' |
Consolidation, Eliminations [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | 0 | 0 | ' | ' |
Marketable securities | 0 | 0 | ' | ' |
Restricted Cash | 0 | 0 | ' | ' |
Finance and other receivables, net | -10 | -11 | ' | ' |
Inventories | -13 | -19 | ' | ' |
Investments in non-consolidated affiliates | 140 | -473 | ' | ' |
Property and equipment, net | 4 | -3 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Deferred Taxes Net | 0 | -1 | ' | ' |
Intangible Assets Net And Other Assets | -2 | -1 | ' | ' |
Total assets | 119 | -508 | ' | ' |
Debt | -5 | -2 | ' | ' |
Net liability recognized | 0 | 0 | ' | ' |
Amounts due to (from) affiliates | 148 | 74 | ' | ' |
Other Liabilities | -76 | -79 | ' | ' |
Total liabilities | 67 | -7 | ' | ' |
Redeemable equity securities | 0 | 0 | ' | ' |
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | ' | ' |
Stockholders' Equity (deficit) Attributable to Navistar International Corporation | 52 | -501 | ' | ' |
Total liabilities and stockholders’ deficit | $119 | ($508) | ' | ' |
Condensed_Consolidating_Guaran5
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Cash Flows (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 |
Net Cash Provided by (Used in) Operating Activities | ($326) | ($43) |
Net change in restricted cash and cash equivalents | -21 | 44 |
Net purchases of marketable securities | 296 | -267 |
Capital expenditures and purchase of equipment leased to others | -158 | -402 |
Other investing activities | 25 | 49 |
Net cash provided by (used in) investing activities | 142 | -576 |
Net borrowings (repayments) of debt | 11 | -222 |
Other financing activities | 22 | 264 |
Net cash provided by financing activities | 33 | 42 |
Effect of exchange rate changes on cash and cash equivalents | -10 | -5 |
Decrease in cash and cash equivalents | -161 | -582 |
Cash and cash equivalents at beginning of the period | 755 | 1,087 |
Cash and cash equivalents at end of the period | 594 | 505 |
Parent Company [Member] | ' | ' |
Net Cash Provided by (Used in) Operating Activities | -458 | -648 |
Net change in restricted cash and cash equivalents | 5 | -1 |
Net purchases of marketable securities | 389 | -186 |
Capital expenditures and purchase of equipment leased to others | 0 | 0 |
Other investing activities | 0 | 0 |
Net cash provided by (used in) investing activities | 394 | -187 |
Net borrowings (repayments) of debt | -10 | 327 |
Other financing activities | 18 | 24 |
Net cash provided by financing activities | 8 | 351 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Decrease in cash and cash equivalents | -56 | -484 |
Cash and cash equivalents at beginning of the period | 336 | 702 |
Cash and cash equivalents at end of the period | 280 | 218 |
Guarantor Subsidiaries [Member] | ' | ' |
Net Cash Provided by (Used in) Operating Activities | -961 | -288 |
Net change in restricted cash and cash equivalents | -1 | 0 |
Net purchases of marketable securities | 0 | 0 |
Capital expenditures and purchase of equipment leased to others | -67 | -304 |
Other investing activities | 8 | 9 |
Net cash provided by (used in) investing activities | -60 | -295 |
Net borrowings (repayments) of debt | 959 | 301 |
Other financing activities | 34 | 263 |
Net cash provided by financing activities | 993 | 564 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Decrease in cash and cash equivalents | -28 | -19 |
Cash and cash equivalents at beginning of the period | 72 | 55 |
Cash and cash equivalents at end of the period | 44 | 36 |
Non-Guarantor Subsidiaries [Member] | ' | ' |
Net Cash Provided by (Used in) Operating Activities | 85 | 222 |
Net change in restricted cash and cash equivalents | -25 | 45 |
Net purchases of marketable securities | -93 | -81 |
Capital expenditures and purchase of equipment leased to others | -91 | -98 |
Other investing activities | 17 | 40 |
Net cash provided by (used in) investing activities | -192 | -94 |
Net borrowings (repayments) of debt | 68 | -179 |
Other financing activities | -30 | -23 |
Net cash provided by financing activities | 38 | -202 |
Effect of exchange rate changes on cash and cash equivalents | -8 | -5 |
Decrease in cash and cash equivalents | -77 | -79 |
Cash and cash equivalents at beginning of the period | 347 | 330 |
Cash and cash equivalents at end of the period | 270 | 251 |
Consolidation, Eliminations [Member] | ' | ' |
Net Cash Provided by (Used in) Operating Activities | 1,008 | 671 |
Net change in restricted cash and cash equivalents | 0 | 0 |
Net purchases of marketable securities | 0 | 0 |
Capital expenditures and purchase of equipment leased to others | 0 | 0 |
Other investing activities | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Net borrowings (repayments) of debt | -1,006 | -671 |
Other financing activities | 0 | 0 |
Net cash provided by financing activities | -1,006 | -671 |
Effect of exchange rate changes on cash and cash equivalents | -2 | 0 |
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 |
Condensed_Consolidating_Guaran6
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Guarantor and Non-Guarantor Parenthetical (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Defined benefit plan, tax | $0 | $1 | ($1) | $1 |
Parent Company [Member] | ' | ' | ' | ' |
Defined benefit plan, tax | 0 | 1 | -1 | 1 |
Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Defined benefit plan, tax | 0 | 0 | 0 | 0 |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Defined benefit plan, tax | 0 | 1 | -1 | 1 |
Consolidation, Eliminations [Member] | ' | ' | ' | ' |
Defined benefit plan, tax | $0 | ($1) | $1 | ($1) |