Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Oct. 31, 2014 | Nov. 30, 2014 | Apr. 30, 2014 |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Oct-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | nav | ||
Entity Registrant Name | NAVISTAR INTERNATIONAL CORP | ||
Entity Central Index Key | 808450 | ||
Current Fiscal Year End Date | -21 | ||
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 | 81,414,738 | ||
Entity Public Float | $2 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Sales and revenues | |||
Sales of manufactured products, net | $10,653 | $10,617 | $12,527 |
Finance revenues | 153 | 158 | 168 |
Sales and revenues, net | 10,806 | 10,775 | 12,695 |
Costs and expenses | |||
Costs of products sold | 9,534 | 9,761 | 11,401 |
Restructuring charges | 42 | 25 | 107 |
Asset impairment charges | 183 | 97 | 16 |
Selling, general and administrative expenses | 979 | 1,215 | 1,419 |
Engineering and product development costs | 331 | 406 | 532 |
Interest expense | 314 | 321 | 259 |
Other (income) expense, net | -12 | -65 | 43 |
Total costs and expenses | 11,371 | 11,760 | 13,777 |
Equity in income (loss) of non-consolidated affiliates | 9 | 11 | -29 |
Income (loss) before income taxes | -556 | -974 | -1,111 |
Income tax expense | -26 | 171 | -1,780 |
Earnings (loss) from continuing operations | -582 | -803 | -2,891 |
Income (loss) from discontinued operations, net of tax | 3 | -41 | -71 |
Net income (loss) | -579 | -844 | -2,962 |
Less: Net income attributable to non-controlling interests | 40 | 54 | 48 |
Loss from continuing operations, net of tax | -622 | -857 | -2,939 |
Income (loss) from discontinued operations, net of tax | 3 | -41 | -71 |
Net income (loss) attributable to Navistar International Corporation | ($619) | ($898) | ($3,010) |
Earnings (loss) per share attributable to Navistar International Corporation: | |||
Basic: Loss from Continuing Operations (in dollars per share) | ($7.64) | ($10.66) | ($42.53) |
Basic: Income (Loss) from Discontinued Operations (in dollars per share) | $0.04 | ($0.51) | ($1.03) |
Basic (in dollars per share) | ($7.60) | ($11.17) | ($43.56) |
Diluted: Loss from Continuing Operations (in dollars per share) | ($7.64) | ($10.66) | ($42.53) |
Diluted: Income (Loss) from Discontinued Operations (in dollars per share) | $0.04 | ($0.51) | ($1.03) |
Diluted (in dollars per share) | ($7.60) | ($11.17) | ($43.56) |
Weighted average shares outstanding: | |||
Basic (in shares) | 81,400,000 | 80,400,000 | 69,100,000 |
Diluted (in shares) | 81,400,000 | 80,400,000 | 69,100,000 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net loss attributable to Navistar International Corporation | ($619) | ($898) | ($3,010) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | -52 | -51 | -125 |
Unrealized gain on marketable securities | 1 | 0 | 0 |
Defined benefit plans (net of tax of $(2), $(233), and $14) | -388 | 552 | -256 |
Total other comprehensive income (loss) | -439 | 501 | -381 |
Total comprehensive loss attributable to Navistar International Corporation | ($1,058) | ($397) | ($3,391) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Loss (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Defined benefit plan, tax | ($2) | ($233) | $14 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $497 | $755 |
Restricted cash and cash equivalents | 40 | 0 |
Marketable securities | 605 | 830 |
Trade and other receivables, net | 553 | 737 |
Finance receivables, net | 1,758 | 1,597 |
Inventories | 1,319 | 1,210 |
Deferred taxes, net | 55 | 72 |
Other current assets | 186 | 258 |
Total current assets | 5,013 | 5,459 |
Restricted cash | 131 | 91 |
Trade and other receivables, net | 25 | 29 |
Finance receivables, net | 280 | 338 |
Investments in non-consolidated affiliates | 73 | 77 |
Property and equipment, net | 1,562 | 1,741 |
Goodwill | 38 | 184 |
Intangible assets, net | 90 | 138 |
Deferred taxes, net | 145 | 159 |
Other noncurrent assets | 86 | 99 |
Total assets | 7,443 | 8,315 |
Current liabilities | ||
Notes payable and current maturities of long-term debt | 1,295 | 1,163 |
Accounts payable | 1,564 | 1,502 |
Other current liabilities | 1,372 | 1,596 |
Total current liabilities | 4,231 | 4,261 |
Long-term debt | 3,929 | 3,922 |
Postretirement benefits liabilities | 2,862 | 2,564 |
Deferred taxes, net | 14 | 33 |
Other noncurrent liabilities | 1,025 | 1,136 |
Total liabilities | 12,061 | 11,916 |
Redeemable equity securities | 2 | 4 |
Stockholders’ deficit | ||
Series D convertible junior preference stock | 3 | 3 |
Common stock (81.4 and 80.5 shares issued, respectively; and $0.10 par value per share and 220 shares authorized, at both dates) | 9 | 9 |
Additional paid-in capital | 2,500 | 2,477 |
Accumulated deficit | -4,682 | -4,063 |
Accumulated other comprehensive loss | -2,263 | -1,824 |
Common stock held in treasury, at cost (5.4 and 6.3 shares, respectively) | -221 | -251 |
Total stockholders’ deficit attributable to Navistar International Corporation | -4,654 | -3,649 |
Stockholders’ equity attributable to non-controlling interests | 34 | 44 |
Total stockholders’ deficit | -4,620 | -3,605 |
Total liabilities and stockholders’ deficit | $7,443 | $8,315 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Oct. 31, 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 | 81.4 | 80.5 |
Common stock held in treasury, shares | 5.4 | 6.3 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |||
Cash flows from operating activities | ||||||
Net income (loss) | ($579) | ($844) | ($2,962) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||
Depreciation and amortization | 227 | 282 | 277 | |||
Depreciation of equipment leased to others | 105 | 135 | 46 | |||
Deferred taxes, including change in valuation allowance | -15 | -226 | 1,778 | |||
Asset impairment charges | 183 | 105 | 44 | |||
Gain on sales of investments and businesses, net | 0 | -29 | 0 | |||
Amortization of debt issuance costs and discount | 49 | 57 | 46 | |||
Stock-based compensation | 16 | 24 | 19 | |||
Provision for doubtful accounts, net of recoveries | 20 | 20 | 14 | |||
Equity in income of non-consolidated affiliates, net of dividends | 3 | 2 | 36 | |||
Write-off of debt issuance cost and discount | 1 | 6 | 13 | |||
Other non-cash operating activities | -41 | -70 | 7 | |||
Changes in other assets and liabilities, exclusive of the effects of businesses disposed: | ||||||
Trade and other receivables | 55 | 68 | 454 | |||
Finance receivables | -33 | 187 | 741 | |||
Inventories | -129 | 264 | 76 | |||
Accounts payable | 84 | -121 | -399 | |||
Other assets and liabilities | -282 | 240 | 420 | |||
Net cash provided by (used in) operating activities | -336 | 100 | 610 | |||
Cash flows from investing activities | ||||||
Purchases of marketable securities | -1,812 | -1,779 | -1,209 | |||
Sales of marketable securities | 1,576 | 1,217 | 1,399 | |||
Maturities of marketable securities | 461 | 198 | 62 | |||
Net change in restricted cash and cash equivalents | -80 | 70 | 165 | |||
Capital expenditures | -88 | [1] | -167 | [1] | -309 | [1] |
Purchases of equipment leased to others | -189 | -432 | -61 | |||
Proceeds from sales of property and equipment | 43 | 25 | 18 | |||
Investments in non-consolidated affiliates | 0 | -24 | -42 | |||
Proceeds from sales of affiliates | 14 | 82 | 1 | |||
Acquisition of intangibles | 0 | 0 | -14 | |||
Business acquisitions, net of cash received | 0 | 0 | -12 | |||
Net cash used in investing activities | -75 | -810 | -2 | |||
Cash flows from financing activities | ||||||
Proceeds from issuance of securitized debt | 255 | 529 | 1,313 | |||
Principal payments on securitized debt | -126 | -773 | -1,976 | |||
Proceeds from issuance of non-securitized debt | 663 | 641 | 1,517 | |||
Principal payments on non-securitized debt | -862 | -475 | -616 | |||
Net increase (decrease) in notes and debt outstanding under revolving credit facilities | 255 | 274 | -269 | |||
Principal payments under financing arrangements and capital lease obligations | -20 | -60 | -35 | |||
Debt issuance costs | -15 | -20 | -57 | |||
Proceeds from financed lease obligations | 60 | 294 | 0 | |||
Purchase of treasury stock | 0 | 0 | -75 | |||
Issuance of common stock | 0 | 14 | 192 | |||
Proceeds from exercise of stock options | 19 | 12 | 2 | |||
Dividends paid by subsidiaries to non-controlling interest | -50 | -47 | -56 | |||
Other financing activities | 0 | 4 | -3 | |||
Net cash provided by (used in) financing activities | 179 | 393 | -63 | |||
Effect of exchange rate changes on cash and cash equivalents | -26 | -15 | 3 | |||
Increase (decrease) in cash and cash equivalents | -258 | -332 | 548 | |||
Cash and cash equivalents at beginning of the year | 755 | 1,087 | 539 | |||
Cash and cash equivalents at end of the year | $497 | $755 | $1,087 | |||
[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 [Member] | 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, 2011 | $23 | $3 | $7 | $2,253 | ($155) | ($1,944) | ($191) | $50 |
Net loss attributable to Navistar International Corporation | -3,010 | -3,010 | ||||||
Net income (loss) | -2,962 | 48 | ||||||
Total other comprehensive income | -381 | -381 | ||||||
Stock-based compensation | 18 | 18 | ||||||
Stock ownership programs | 1 | -14 | 15 | |||||
Stock Repurchase Program, Authorized Amount | -75 | 20 | -95 | |||||
Stock repurchase programs | 192 | 191 | ||||||
Adjustments to Additional Paid in Capital, Other | -26 | -26 | ||||||
Dividends paid by subsidiaries to non-controlling interest | -56 | -56 | ||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 0 | -3 | 3 | |||||
Issuance of common stock, net of issuance cost and fees | 1 | |||||||
Equity component of convertible debt instruments, net of tax expense of $- | -1 | 1 | 1 | -1 | ||||
Stockholders' Equity balance at end 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 | -898 | -898 | ||||||
Net income (loss) | -844 | 54 | ||||||
Total other comprehensive income | 501 | 501 | ||||||
Transfer from redeemable equity securities upon exercise or expiration of stock options | 2 | 2 | ||||||
Stock-based compensation | 18 | 18 | ||||||
Stock ownership programs | 11 | -10 | 21 | |||||
Stock repurchase programs | 14 | 14 | ||||||
Dividends paid by subsidiaries to non-controlling interest | -47 | -47 | ||||||
Issuance of common stock, net of issuance cost and fees | 14 | 14 | ||||||
Deconsolidation of a non-controlling interest | -9 | -9 | ||||||
Equity component of convertible debt instruments, net of tax expense of $- | 0 | 1 | ||||||
Stockholders' Equity balance at end 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 | -619 | -619 | ||||||
Net income (loss) | -579 | 40 | ||||||
Total other comprehensive income | -439 | -439 | ||||||
Transfer from redeemable equity securities upon exercise or expiration of stock options | 2 | 2 | ||||||
Stock-based compensation | 10 | 10 | ||||||
Stock ownership programs | 18 | -12 | 30 | |||||
Stock repurchase programs | 27 | 27 | ||||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Tax | 16 | |||||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Repurchase, Tax | 3 | |||||||
Dividends paid by subsidiaries to non-controlling interest | -50 | -50 | ||||||
Issuance of common stock, net of issuance cost and fees | -5 | -5 | ||||||
Equity component of convertible debt instruments, net of tax expense of $- | -1 | 1 | ||||||
Stockholders' Equity balance at end of period at Oct. 31, 2014 | ($4,620) | $3 | $9 | $2,500 | ($4,682) | ($2,263) | ($221) | $34 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Oct. 31, 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. 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 16, Segment Reporting. | ||||||||||||
Our fiscal year ends on October 31. As such, all references to 2014, 2013, and 2012 contained within this Annual Report on Form 10-K relate to the fiscal year, unless otherwise indicated. | ||||||||||||
Basis of Presentation and Consolidation | ||||||||||||
The accompanying audited 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. | ||||||||||||
2014 Out-Of-Period Adjustments | ||||||||||||
Included in the results of operations for the year ended October 31, 2014, are out-of-period adjustments, which represent corrections of prior-period errors. The correction of prior-period errors for the year ended October 31, 2014 was not material to the current period and any of the prior periods. Included in the corrections were significant prior-period errors related to product warranties which resulted in a $36 million increase, primarily to the warranty liability and a corresponding increase primarily in Costs of products sold. | ||||||||||||
As disclosed in Item 9A. Controls and Procedures, we concluded that a material weakness exists surrounding the validation of the completeness and accuracy of underlying data used in the determination of significant accounting estimates and accounting transactions. Specifically, controls were not designed to identify errors in the underlying data which was used to calculate warranty cost estimates and other significant accounting estimates and the accounting effects of significant transactions. As part of our remediation efforts for our material weakness, we performed substantive procedures to date that identified incomplete data used in calculating our warranty accrual. | ||||||||||||
2013 Out-Of-Period Adjustments | ||||||||||||
Included in the results of operations for the year ended October 31, 2013 are out-of-period adjustments, which represent corrections of prior-period errors related to the accounting for certain sales transactions. In March 2010, we entered into an operating agreement with GE Capital Corporation and GE Capital Commercial, Inc. (collectively "GE"). Under the terms of the agreement, GE became our preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. We provide GE a loss sharing arrangement for certain credit losses. The determination was made that certain sales that were ultimately financed by GE did not qualify for revenue recognition, as we retained substantial risks of ownership in the leased property. As a result, the transactions should have been accounted for as borrowings, resulting in the proceeds from the transfer being recorded as an obligation and amortized to revenue over the term of the financing. In addition, the equipment financing should have been accounted for as operating leases with the equipment transferred from inventory to equipment leased to others and depreciated over the term of the financing. | ||||||||||||
Correcting the errors for the year ended October 31, 2013, which were not material to any of the prior periods, resulted in an $8 million increase to Net loss in our Consolidated Statements of Operations. The impact of the correction on our results for the year ended October 31, 2013 related to prior periods includes: (i) a $113 million net decrease to both Sales of manufactured products, net and Costs of products sold, which also included $37 million of additional depreciation expense, and (ii) an $8 million increase to Interest expense. In addition, in our Consolidated Statements of Cash Flows we recognized Purchases of equipment leased to others of $184 million and Proceeds from financed lease obligations of $201 million related to periods prior to fiscal 2013. The impact of the corrections was not material to any of our Consolidated Balance Sheets. | ||||||||||||
Variable Interest Entities | ||||||||||||
We have an interest in several VIEs, primarily joint ventures, established to manufacture or distribute products and enhance our operational capabilities. We have determined for certain of our VIEs that we are the primary beneficiary because we have the power to direct the activities of the VIE that most significantly impact its economic performance and we have the obligation to absorb losses of, or the right to receive benefits from the VIE that could potentially be significant to the VIE. Accordingly, we include in our consolidated financial statements the assets and liabilities and results of operations of those entities, even though we may not own a majority voting interest. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather they represent claims against the specific assets of these VIEs. Assets of these entities are not readily available to satisfy claims against our general assets. | ||||||||||||
We are the primary beneficiary of our Blue Diamond Parts ("BDP") and Blue Diamond Truck ("BDT") joint ventures with Ford. As a result, our Consolidated Balance Sheets include assets of $297 million and $323 million and liabilities of $250 million and $188 million as of October 31, 2014 and October 31, 2013, respectively, from BDP and BDT, including $77 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, and in October 2014, Ford and the Company agreed to extend the BDT joint venture through April 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 October 31, 2014 and October 31, 2013, respectively, and liabilities of $896 million and $778 million as of October 31, 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 $156 million and $61 million and corresponding liabilities of $54 million and $49 million as of October 31, 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 VIEs are required to make principal and interest payments. Investors in securitizations of these entities have no recourse to our general credit. | ||||||||||||
We also have an interest in other VIEs, which we do not consolidate because we are not the primary beneficiary. Our financial support and maximum loss exposure relating to these non-consolidated VIEs are not material to our financial condition, results of operations, or cash flows. | ||||||||||||
We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in income of non-consolidated affiliates includes our share of the net income of these entities. | ||||||||||||
Use of Estimates | ||||||||||||
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 October 31, 2014, approximately 6,100, or 70%, of our hourly workers and approximately 300, or 5%, of our salaried workers are represented by labor unions and are covered by collective bargaining agreements. Our current collective bargaining agreement with the UAW expired in October 2014 and we are currently operating under an extension of that agreement during our collective bargaining negotiations with the UAW. 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). | ||||||||||||
Revenue Recognition | ||||||||||||
Our Manufacturing operations recognize revenue when we meet four basic criteria: (i) persuasive evidence that a customer arrangement exists, (ii) the price is fixed or determinable, (iii) collectability is reasonably assured, and (iv) delivery of product has occurred or services have been rendered. Sales are generally recognized when risk of ownership passes. | ||||||||||||
Sales to fleet customers and governmental entities are recognized in accordance with the terms of each contract. Revenue on certain customer requested bill and hold arrangements is not recognized until after the customer is notified that the product (i) has been completed according to customer specifications, (ii) has passed our quality control inspections, and (iii) is ready for delivery based upon the established delivery terms and risk of loss has transferred. | ||||||||||||
An allowance for sales returns is recorded as a reduction to revenue based upon estimates using historical information about returns. For the sale of service parts that include a core component, we record revenue on a gross basis including the fair market value of the core. A core component is the basic forging or casting, such as an engine block, that can be remanufactured by a certified remanufacturing supplier. When a dealer returns a core within the specified eligibility period, we provide a core return credit, which is applied to the customer's account balance. At times, we may mark up the core charge beyond the amount we are charged by the supplier. This mark-up is recorded as a liability, as it represents the amount that will be paid to the dealer upon return of the core component and is in excess of the fair value to be received from the supplier. | ||||||||||||
Concurrent with our recognition of revenue, we recognize price allowances and the cost of incentive programs in the normal course of business based on programs offered to dealers or fleet customers. Estimates are made for sales incentives on certain vehicles in dealer stock inventory when special programs that provide specific incentives to dealers are offered in order to facilitate sales to end customers. | ||||||||||||
Truck sales to the U.S. and foreign governments, of non-commercial products manufactured to government specifications, are recognized using the units-of-delivery measure under the percentage-of-completion accounting method as units are delivered and accepted by the government. | ||||||||||||
Certain terms or modifications to U.S. and foreign government contracts may be unpriced; that is, the work to be performed is defined, but the related contract price is to be negotiated at a later date. In situations where we can reliably estimate a profit margin in excess of costs incurred, revenue and gross margin are recorded for delivered contract items. Otherwise, revenue is recognized when the price has been agreed with the government and costs are deferred when it is probable that the costs will be recovered. | ||||||||||||
Shipping and handling amounts billed to our customers are included in Sales of manufactured products, net and the related shipping and handling costs incurred are included in Costs of products sold. | ||||||||||||
Financial Services operations recognize revenue from retail notes, finance leases, wholesale notes, retail accounts, and wholesale accounts as Finance revenues over the term of the receivables utilizing the effective interest method. Certain direct origination costs and fees are deferred and recognized as adjustments to yield and are reported as part of interest income over the life of the receivable. Loans are considered to be impaired when we conclude it is probable the customer will not be able to make full payment after reviewing the customer's financial performance, payment ability, capital-raising potential, management style, economic situation, and other factors. The accrual of interest on such loans is discontinued when the loan becomes 90 days or more past due. Finance revenues on these loans are recognized only to the extent cash payments are received. We resume accruing interest on these accounts when payments are current according to the terms of the loans and future payments are reasonably assured. | ||||||||||||
Operating lease revenues are recognized on a straight-line basis over the life of the lease. Recognition of revenue is suspended when management determines the collection of future revenue is not probable. Recognition of revenue is resumed if collection again becomes probable. | ||||||||||||
Selected receivables are securitized and sold to public and private investors with limited recourse. Our Financial Services operations continue to service the sold receivables and receive fees for such services. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
All highly liquid financial instruments with original maturities of 90 days or less, consisting primarily of U.S. Treasury bills, federal agency securities, and commercial paper, are classified as cash equivalents. | ||||||||||||
Restricted cash is related to our securitized facilities, senior and subordinated floating rate asset-backed notes, wholesale trust agreements, indentured trust agreements, letters of credit, Environmental Protection Agency requirements, and workers compensation requirements. The restricted cash and cash equivalents for our securitized facilities is restricted to pay interest expense, principal, or other amounts associated with our securitization agreements. | ||||||||||||
Marketable Securities | ||||||||||||
Marketable securities consist of available-for-sale securities and are measured and reported at fair value. The difference between amortized cost and fair value is recorded as a component of Accumulated other comprehensive loss ("AOCL") in Stockholders' Deficit, net of taxes. Most securities with remaining maturities of less than twelve months and other investments needed for current cash requirements are classified as current in our Consolidated Balance Sheets. Gains and losses on the sale of marketable securities are determined using the specific identification method and are recorded in Other (income) expense, net. | ||||||||||||
We evaluate our investments in marketable securities at the end of each reporting period to determine if a decline in fair value is other than temporary. When a decline in fair value is determined to be other than temporary, an impairment charge is recorded and a new cost basis in the investment is established. Our marketable securities are classified as Level 1 in the fair value hierarchy. | ||||||||||||
Derivative Instruments | ||||||||||||
We utilize derivative instruments to manage certain exposure to changes in foreign currency exchange rates, interest rates, and commodity prices. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these derivative instruments are recognized in our operating results or included in AOCL, depending on whether the derivative instrument is a fair value or cash flow hedge and whether it qualifies for hedge accounting treatment. The Company elected to apply the normal purchase and normal sale exclusion to certain commodity contracts that are entered into to be used in production within a reasonable time during the normal course of business. For the years ended October 31, 2014, 2013, and 2012, none of our derivatives qualified for hedge accounting and all changes in the fair value of our derivatives, except for those qualifying under the normal purchases and normal sales exception, were recognized in our operating results. | ||||||||||||
Gains and losses on derivative instruments are recognized in Costs of products sold, Interest expense, or Other (income) expense, net depending on the underlying exposure. The exchange of cash associated with derivative transactions is classified in the Consolidated Statements of Cash Flows in the same category as the cash flows from the items subject to the economic hedging relationships. | ||||||||||||
Trade and Finance Receivables | ||||||||||||
Trade Receivables | ||||||||||||
Trade accounts receivable and trade notes receivable primarily arise from sales of goods to independently owned and operated dealers, original equipment manufacturers ("OEMs"), and commercial customers in the normal course of business. | ||||||||||||
Finance Receivables | ||||||||||||
Finance receivables consist of the following: | ||||||||||||
• | Retail notes—Retail notes primarily consist of fixed rate loans to commercial customers to facilitate their purchase of new and used trucks, trailers, and related equipment. | |||||||||||
• | Finance leases—Finance leases consist of direct financing leases to commercial customers for acquisition of new and used trucks, trailers, and related equipment. | |||||||||||
• | Wholesale notes—Wholesale notes primarily consist of variable rate loans to our dealers for the purchase of new and used trucks, trailers, and related equipment. | |||||||||||
• | Retail accounts—Retail accounts consist of short-term accounts receivable that finance the sale of products to commercial customers. | |||||||||||
• | Wholesale accounts—Wholesale accounts consist of short-term accounts receivable primarily related to the sales of items other than trucks, trailers, and related equipment (e.g. service parts) to dealers. | |||||||||||
Finance receivables are classified as held-to-maturity and are recorded at gross value less unearned income and are reported net of allowances for doubtful accounts. Unearned revenue is amortized to revenue over the life of the receivable using the effective interest method. Our Financial Services operations purchase the majority of the wholesale notes receivable and some retail notes and accounts receivable arising from our Manufacturing operations. The Financial Services operations retain as collateral a security interest in the equipment associated with retail notes, wholesale notes, and finance leases. | ||||||||||||
Sales of Finance Receivables | ||||||||||||
We sell finance receivables using a process commonly known as securitization, whereby asset-backed securities are sold via public offering or private placement. None of our securitization and receivable sale arrangements qualify for sales accounting or off-balance sheet treatment. As a result, the transferred receivables and the associated secured borrowings are included in our Consolidated Balance Sheets and no gain or loss is recorded for the sale. | ||||||||||||
We also act as servicer of transferred receivables. The servicing duties include collecting payments on receivables and preparing monthly investor reports on the performance of the receivables that are used by the trustee to distribute monthly interest and principal payments to investors. While servicing the receivables, we apply the same servicing policies and procedures that are applied to our owned receivables. | ||||||||||||
Allowance for Doubtful Accounts | ||||||||||||
An allowance for doubtful accounts is established through a charge to Selling, general and administrative expenses. The allowance is an estimate of the amount required to absorb probable losses on trade and finance receivables that may become uncollectible. The receivables are charged off when amounts due are determined to be uncollectible. | ||||||||||||
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. As the initial measurement attributes and the monitoring and assessment of credit risk or the performance of the receivables are consistent within each of our receivable portfolios, we determined that each portfolio consisted of one class of receivable. | ||||||||||||
Impaired receivables are specifically identified and segregated from the remaining portfolio. The expected loss on impaired receivables is fully reserved in a separate calculation as a specific reserve based on the unique ability of the customer to pay and the estimated value of the collateral. The historical loss experience and portfolio quality trends of the retail portfolio segment compared to the wholesale portfolio segment are inherently different. A specific reserve on impaired retail receivables is recorded if the estimated fair value of the underlying collateral, net of selling costs, is less than the principal balance of the receivable. We calculate a general reserve on the remaining loan portfolio by applying loss ratios which are determined using actual loss experience and customer payment history, in conjunction with current economic and portfolio quality trends. In addition, we analyze specific economic indicators such as tonnage, fuel prices, and gross domestic product for additional insight into the overall state of the economy and its potential impact on our portfolio. | ||||||||||||
To establish a specific reserve for impaired wholesale receivables, we consider the same factors discussed above but also consider the financial strength of the dealer and key management, the timeliness of payments, the number and location of satellite locations, the number of dealers of competitor manufacturers in the market area, the type of equipment normally financed, and the seasonality of the business. | ||||||||||||
Repossessions | ||||||||||||
Gains or losses arising from the sale of repossessed collateral supporting finance receivables and operating leases are recognized in Selling, general and administrative expenses. Repossessed assets are recorded within Inventories at the lower of historical cost or fair value, less estimated costs to sell. | ||||||||||||
Inventories | ||||||||||||
Inventories are valued at the lower of cost or market. Cost is principally determined using the first-in, first-out ("FIFO") method. | ||||||||||||
Property and Equipment | ||||||||||||
We report land, buildings, leasehold improvements, machinery and equipment (including tooling and pattern equipment), furniture, fixtures, and equipment, and equipment leased to others at cost, net of depreciation. We initially record assets under capital lease obligations at the lower of their fair value or the present value of the aggregate future minimum lease payments. We depreciate our assets using the straight-line method over the shorter of the lease term or the estimated useful lives of the assets. | ||||||||||||
The ranges of estimated useful lives are as follows: | ||||||||||||
Years | ||||||||||||
Buildings | 20 - 50 | |||||||||||
Leasehold improvements | 20-Mar | |||||||||||
Machinery and equipment | 12-Mar | |||||||||||
Furniture, fixtures, and equipment | 15-Mar | |||||||||||
Equipment leased to others | 10-Jan | |||||||||||
Long-lived assets are evaluated periodically to determine if adjustment to the depreciation and amortization period or to the unamortized balance is warranted. Such evaluation is based principally on the expected utilization of the long-lived assets. | ||||||||||||
We depreciate trucks, tractors, and trailers leased to customers under operating lease agreements on a straight-line basis to the equipment's estimated residual value over the lease term. The residual values of the equipment represent estimates of the value of the assets at the end of the lease contracts and are initially recorded based on estimates of future market values. Realization of the residual values is dependent on our future ability to market the equipment. We review residual values periodically to determine that recorded amounts are appropriate and the equipment has not been impaired. | ||||||||||||
Maintenance and repairs of property and equipment are expensed as incurred. We capitalize replacements and improvements that increase the estimated useful life or productive capacity of an asset and we capitalize interest on major construction and development projects while in progress. | ||||||||||||
Gains or losses on disposition of property and equipment are recognized in Other (income) expense, net. | ||||||||||||
We test for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset or asset group (hereinafter referred to as "asset group") may not be recoverable by comparing the sum of the estimated undiscounted future cash flows expected to result from the operation of the asset group and its eventual disposition to the carrying value. If the sum of the undiscounted future cash flows is less than the carrying value, the fair value of the asset group is determined. The amount of impairment is calculated by subtracting the fair value of the asset group from the carrying value of the asset group. | ||||||||||||
Included in equipment leased to others are trucks that we produced or acquired to lease to customers as well as equipment that is financed by GE that does not qualify for revenue recognition, as we retained substantial risks of ownership in the leased property, which are accounted for as operating leases and borrowings, respectively. In the Consolidated Statement of Cash Flows the related expenditures are reflected as the Purchases of equipment leased to others in the investing section. | ||||||||||||
Goodwill and Other 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. | ||||||||||||
Intangible assets subject to amortization are also evaluated for impairment periodically or when indicators of impairment are determined to exist. We test for impairment of intangible assets, subject to amortization, by comparing the sum of the estimated undiscounted future cash flows expected to result from the operation of the asset group and its eventual disposition to the carrying value. If the sum of the undiscounted future cash flows is less than the carrying value, the fair value of the asset group is determined. The amount of impairment is calculated by subtracting the fair value of the asset group from the carrying value of the asset group. Intangible assets, subject to amortization, could become impaired in the future or require additional charges as a result of declines in profitability due to changes in volume, market pricing, cost, manner in which an asset is used, physical condition of an asset, laws and regulations, or the business environment. We amortize the cost of intangible assets over their respective estimated useful lives, generally on a straight-line basis. | ||||||||||||
The ranges for the amortization periods are generally as follows: | ||||||||||||
Years | ||||||||||||
Customer base and relationships | 3 - 15 | |||||||||||
Trademarks | 20 | |||||||||||
Other | 3 - 18 | |||||||||||
Investments in Non-consolidated Affiliates | ||||||||||||
Equity method investments are recorded at original cost and adjusted periodically to recognize (i) our proportionate share of the investees' net income or losses after the date of investment, (ii) additional contributions made and dividends or distributions received, and (iii) impairment losses resulting from adjustments to fair value. | ||||||||||||
We assess the potential impairment of our equity method investments and determine fair value based on valuation methodologies, as appropriate, including the present value of estimated future cash flows, estimates of sales proceeds, and market multiples. If an investment is determined to be impaired and the decline in value is other than temporary, we record an appropriate write-down. | ||||||||||||
Debt Issuance Costs | ||||||||||||
We amortize debt issuance costs, discounts and premiums over the remaining life of the related debt using the effective interest method. The related income or expense is included in Interest expense. We record discounts or premiums as a direct deduction from, or addition to, the face amount of the debt. | ||||||||||||
Pensions and Postretirement Benefits | ||||||||||||
We use actuarial methods and assumptions to account for our pension plans and other postretirement benefit plans. Pension and other postretirement benefits expense includes the actuarially computed cost of benefits earned during the current service period, the interest cost on accrued obligations, the expected return on plan assets, the straight-line amortization of net actuarial gains and losses and plan amendments, and adjustments due to settlements and curtailments. | ||||||||||||
Engineering and Product Development Costs | ||||||||||||
Engineering and product development costs arise from ongoing costs associated with improving existing products and manufacturing processes and for the introduction of new truck and engine components and products, and are expensed as incurred. | ||||||||||||
Advertising Costs | ||||||||||||
Advertising costs are expensed as incurred and are included in Selling, general and administrative expenses. These costs totaled $39 million, $48 million, and $78 million for the years ended October 31, 2014, 2013, and 2012, respectively. | ||||||||||||
Contingency Accruals | ||||||||||||
We accrue for loss contingencies associated with outstanding litigation for which we have determined it is probable that a loss has occurred and the amount of loss can be reasonably estimated. Our asbestos, product liability, environmental, and workers compensation accruals also include estimated future legal fees associated with the loss contingencies, as we believe we can reasonably estimate those costs. In all other instances, legal fees are expensed as incurred. These expenses may be recorded in Costs of products sold, Selling, general and administrative expenses, or Other (income) expense, net. These estimates are based on our expectations of the scope, length to complete, and complexity of the claims. In the future, additional adjustments may be recorded as the scope, length, or complexity of outstanding litigation changes. | ||||||||||||
Warranty | ||||||||||||
We generally offer one to five-year warranty coverage for our truck, bus, and engine products, as well as our service parts. Terms and conditions vary by product, customer, and country. We accrue warranty related costs under standard warranty terms and for certain claims outside the contractual obligation period that we choose to pay as accommodations to our customers. | ||||||||||||
Our warranty estimates are established using historical information about the nature, frequency, timing, and average cost of warranty claims. Warranty claims are influenced by numerous factors, including new product introductions, technological developments, the competitive environment, the design and manufacturing process, and the complexity and related costs of component parts. We estimate our warranty accrual for our engines and trucks based on engine types and model years. Our warranty accruals take into account the projected ultimate cost-per-unit ("CPU") utilizing historical claims information. The CPU represents the total cash projected to be spent for warranty claims for a particular model year during the warranty period, divided by the number of units sold. The projection of the ultimate CPU is affected by component failure rates, repair costs, and the timing of failures in the product life cycle. Warranty claims inherently have a high amount of variability in timing and severity and can be influenced by external factors. Our warranty estimation process takes into consideration numerous variables that contribute to the precision of the estimate, but also add to the complexity of the model. Including numerous variables also reduces the sensitivity of the model to any one variable. We perform periodic reviews of warranty spend data to allow for timely consideration of the effects on warranty accruals. We also utilize actuarial analysis in order to determine whether our accrual estimate falls within a reasonable range. | ||||||||||||
Initial warranty estimates for new model year products are based on the previous model year product's warranty experience until the new product progresses sufficiently through its life cycle and related claims data becomes mature. Historically, warranty claims experience for launch-year products has been higher compared to the prior model-year engines; however, over time we have been able to refine both the design and manufacturing process to reduce both the volume and the severity of warranty claims. New product launches require a greater use of judgment in developing estimates until historical experience becomes available. | ||||||||||||
We record adjustments to pre-existing warranties for changes in our estimate of warranty costs for products sold in prior fiscal years. Such adjustments typically occur when claims experience deviates from historic and expected trends. In 2014, we recognized additional charges for adjustments to pre-existing warranties of $55 million. Future events and circumstances could materially change these estimates and require additional adjustments to our liability. | ||||||||||||
When we identify cost effective opportunities to address issues in products sold or corrective actions for safety issues, we initiate product recalls or field campaigns. As a result of the uncertainty surrounding the nature and frequency of product recalls and field campaigns, the liability for such actions are generally recorded when we commit to a product recall or field campaign. Included in 2014 warranty expense was $13 million of charges related to field campaigns we initiated to address issues in products sold, as compared to $88 million and $130 million in 2013 and 2012, respectively. The charges were primarily recognized as adjustments to pre-existing warranties. As we continue to identify opportunities to improve the design and manufacturing of our engines we may incur additional charges for product recalls and field campaigns to address identified issues. | ||||||||||||
Optional extended warranty contracts can be purchased for periods ranging from one to ten years. Warranty revenues related to extended warranty contracts are amortized to income, over the life of the contract using the straight-line method. Costs under extended warranty contracts are expensed as incurred. We recognize losses on extended warranty contracts when the expected costs under the contracts exceed related unearned revenue. | ||||||||||||
When collection is reasonably assured, we also estimate the amount of warranty claim recoveries to be received from our suppliers and record them in Other current assets and Other noncurrent assets. Recoveries related to specific product recalls, in which a supplier confirms its liability under the recall, are recorded in Trade and other receivables, net. Warranty costs and recoveries are included in Costs of products sold. | ||||||||||||
Although we believe that the estimates and judgments discussed herein are reasonable, actual results could differ and we may be exposed to increases or decreases in our warranty accrual that could be material. | ||||||||||||
Product Warranty Liability | ||||||||||||
The following table presents accrued product warranty and deferred warranty revenue activity: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Balance at beginning of period | $ | 1,349 | $ | 1,118 | $ | 598 | ||||||
Costs accrued and revenues deferred | 302 | 469 | 575 | |||||||||
Divestitures | — | (3 | ) | — | ||||||||
Currency translation adjustment | (4 | ) | (2 | ) | (4 | ) | ||||||
Adjustments to pre-existing warranties(A)(B) | 55 | 404 | 404 | |||||||||
Payments and revenues recognized | (505 | ) | (637 | ) | (455 | ) | ||||||
Balance at end of period | 1,197 | 1,349 | 1,118 | |||||||||
Less: Current portion | 535 | 601 | 551 | |||||||||
Noncurrent accrued product warranty and deferred warranty revenue | $ | 662 | $ | 748 | $ | 567 | ||||||
_________________________ | ||||||||||||
(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. In the third quarter of 2014, we recognized a benefit for adjustments to pre-existing warranties of $(29) million, or $(0.36) per diluted share. Included in the 2014 adjustments is a $36 million correction of prior-period errors, primarily related to pre-existing warranties. For more information on the errors identified, see 2014 Out-of-Period Adjustments. 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. In the third quarter of 2013, we recorded adjustments for changes in estimates of $48 million, or $0.60 per diluted share. In the fourth quarter of 2013, we recorded adjustments for changes in estimates of $152 million, or $1.89 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. | ||||||||||||
In the first quarter of 2012, we recorded adjustments for changes in estimates of $123 million, or $1.76 per diluted share. In the second quarter of 2012, we recorded adjustments for changes in estimates of $104 million, or $1.51 per diluted share. In the fourth quarter of 2012, we recorded adjustments for changes in estimates of $149 million, or $2.16 per diluted share. | ||||||||||||
(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 Income (loss) from discontinued operations, net of tax and recorded a receivable within Other current assets. | |||||||||||
In the third quarter of 2012, we recognized $10 million of adjustments to pre-existing warranties for a specific warranty issue related to component parts from a supplier. Also during the quarter, we reached agreement for reimbursement from such supplier and recognized a recovery for that amount and recorded a receivable within Other current assets. | ||||||||||||
Extended Warranty Programs | ||||||||||||
The amount of deferred revenue related to extended warranty programs was $437 million, $420 million, and $364 million at October 31, 2014, 2013, and 2012 respectively. Revenue recognized under our extended warranty programs was $132 million, $87 million, and $63 million in the years ended October 31, 2014, 2013, and 2012 respectively. | ||||||||||||
In 2014, amounts recognized related to extended warranty contracts on our MaxxForce Big-Bore engines was not material to the Company's Consolidated Statements of Operations. | ||||||||||||
In 2013 we recognized net charges of $161 million related to extended warranty contracts on our MaxxForce Big-Bore engines, which includes charges of $127 million related to pre-existing warranties. | ||||||||||||
In 2012 we recognized net charges of $66 million for losses on extended warranty contracts for our 2010 emissions standard MaxxForce Big-Bore engines. The net charges included $19 million related to contracts sold in 2012 and $47 million recognized as adjustments to pre-existing warranties. Future warranty experience, pricing of extended warranty contracts, and external market factors may cause us to recognize additional charges as losses on extended service contracts in future periods. | ||||||||||||
Stock-based Compensation | ||||||||||||
We have various plans that provide for the granting of stock-based compensation to certain employees, directors, and consultants, which is further described in Note 19, Stock-Based Compensation Plans. Shares are issued upon option exercise from Common stock held in treasury. | ||||||||||||
For transactions in which we obtain employee services in exchange for an award of equity instruments, we measure the cost of the services based on the grant date fair value of the award. We recognize the cost over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period). Costs related to plans with graded vesting are generally recognized using a straight-line method. | ||||||||||||
Foreign Currency Translation | ||||||||||||
We translate the financial statements of foreign subsidiaries whose local currency is their functional currency to U.S. dollars using period-end exchange rates for assets and liabilities and weighted average exchange rates for each period for revenues and expenses. Differences arising from exchange rate changes are included in the Foreign currency translation adjustment component of AOCL. | ||||||||||||
For foreign subsidiaries whose functional currency is the U.S. dollar, we remeasure non-monetary balance sheet accounts and the related income statement accounts at historical exchange rates. Gains and losses arising from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency are recognized in earnings as incurred. We recognized net foreign currency transaction losses of $21 million, $23 million, and $25 million in 2014, 2013, and 2012 respectively, which were recorded in Other (income) expense, net. | ||||||||||||
Income Taxes | ||||||||||||
We file a consolidated U.S. federal income tax return for NIC and its eligible domestic subsidiaries. Our non-U.S. subsidiaries file income tax returns in their respective local jurisdictions. We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax benefit carryforwards. Deferred tax assets and liabilities at the end of each period are determined using enacted tax rates. A valuation allowance is established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized. | ||||||||||||
We recognize the tax benefit from an uncertain tax position claimed or expected to be claimed on a tax return only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the 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. | ||||||||||||
We apply the intraperiod tax allocation rules to allocate income taxes among continuing operations, discontinued operations, extraordinary items, other comprehensive income (loss), and additional paid-in capital when we meet the criteria as prescribed in the rules. | ||||||||||||
Earnings Per Share | ||||||||||||
The calculation of basic earnings per share is based on the weighted average number of our shares of common stock outstanding during the applicable period. The calculation for diluted earnings per share recognizes the effect of all potential dilutive shares of common stock that were outstanding during the respective periods, unless their impact would be anti-dilutive. | ||||||||||||
Diluted earnings per share recognizes the dilution that would occur if securities or other contracts to issue common stock were exercised or converted into shares using the treasury stock method. | ||||||||||||
Recently Adopted Accounting Standards | ||||||||||||
In the year ended October 31, 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 and method of adoption of this ASU on our consolidated financial statements. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||||||||||
Oct. 31, 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 a 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 third quarter of 2011, the Company committed to a restructuring plan of certain North American manufacturing operations, including the Workhorse Custom Chassis ("WCC") and Monaco RV ("Monaco") recreational vehicles operations. In the second quarter of 2012, the Company decided to stop accepting new orders and idle the WCC operations. In the first quarter of 2013, the Company completed the idling of the WCC operations and in the second quarter of 2013, it divested WCC for an immaterial amount. | ||||||||||||
As a result of the decision to idle the WCC operations in the second quarter of 2012, the WCC asset group was reviewed for recoverability and determined not to be recoverable. We determined that the remaining intangible asset balances were fully impaired, and the Company recognized asset impairment charges of $28 million in the Loss from discontinued operations, net of tax. In addition, the North America Parts segment recognized a charge of $10 million for the impairment of certain intangible assets of the parts distribution operations related to the WCC business. | ||||||||||||
Also in the first quarter of 2013, certain operations of 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 in 2013. | ||||||||||||
WCC and Monaco were not material to the Company's Consolidated Balance Sheets or 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: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Sales and revenues, net | $ | — | $ | 73 | $ | 253 | ||||||
Income (loss) from discontinued operations (net of tax of $- in 2014, 2013, and 2012) | $ | 3 | $ | (41 | ) | $ | (71 | ) | ||||
Income (loss) from discontinued operations, net of tax | $ | 3 | $ | (41 | ) | $ | (71 | ) | ||||
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 | ||||||||||||
Continental Mixer | ||||||||||||
In the fourth quarter of 2014, the Company sold the Continental Mixer business, which produces concrete mixers. Continental was not material to the Company's Consolidated Statements of Operations, Consolidated Balance Sheets, or Consolidated Statements of Cash Flows and therefore, its operations have not been reclassified as discontinued operations in the respective financial statements. | ||||||||||||
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 Consolidated Statements of Cash Flows and therefore, its operations have not been reclassified as discontinued operations in the respective financial statements. | ||||||||||||
Bison Coach | ||||||||||||
In the fourth quarter of 2013, the Company sold the Bison Coach trailer manufacturing business ("Bison Coach") for $16 million in cash. As a result of the divestiture, the North America Truck segment recognized a gain of $16 million in 2013. | ||||||||||||
Bison Coach was not material to the Company's Consolidated Statements of Operations, Consolidated Balance Sheets, or Consolidated Statements of Cash Flows and therefore, its operations have not been reclassified as discontinued operations in the respective financial statements. | ||||||||||||
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. | ||||||||||||
Dealer operations | ||||||||||||
We acquire and dispose of dealerships from time to time to facilitate the transition of dealerships from one independent owner to another. These dealerships are included in our consolidated financial statements from their respective dates of acquisition in our North America Truck segment. We did not acquire any dealerships in 2014, 2013, or 2012. | ||||||||||||
During the year ended October 31, 2014, we sold one of our Dealcors while in each of the years ended October 31, 2013 and 2012, we sold two Dealcors. Also in 2013, we discontinued consolidating the financial statements of another Dealcor due to the settlement of a financial commitment. The gains or losses associated with the sales of these Dealcors were not material. |
Restructuring_and_Impairments
Restructuring and Impairments | 12 Months Ended | |||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||
Restructurings and Impairments | Restructurings and Impairments | |||||||||||||||||||
Restructuring charges recorded are based on restructuring plans that have been committed to by management and are, in part, based upon management's best estimates of future events. Changes to the estimates may require future adjustments to the restructuring liabilities. | ||||||||||||||||||||
Restructuring Liability | ||||||||||||||||||||
The following tables summarize the activity in the restructuring liability, which includes amounts related to discontinued operations and excludes pension and other postretirement contractual termination benefits: | ||||||||||||||||||||
(in millions) | Balance at October 31, 2013 | Additions | Payments | Adjustments | Balance at October 31, 2014 | |||||||||||||||
Employee termination charges | $ | 15 | $ | 15 | $ | (19 | ) | $ | (3 | ) | $ | 8 | ||||||||
Employee relocation costs | — | 1 | (1 | ) | — | — | ||||||||||||||
Lease vacancy | 18 | — | (8 | ) | 1 | 11 | ||||||||||||||
Other | 1 | 2 | (2 | ) | — | 1 | ||||||||||||||
Restructuring liability | $ | 34 | $ | 18 | $ | (30 | ) | $ | (2 | ) | $ | 20 | ||||||||
(in millions) | Balance at | Additions | Payments | Adjustments | Balance at October 31, 2013 | |||||||||||||||
October 31, 2012 | ||||||||||||||||||||
Employee termination charges | $ | 72 | $ | 12 | $ | (64 | ) | $ | (5 | ) | $ | 15 | ||||||||
Employee relocation costs | — | 3 | (3 | ) | — | — | ||||||||||||||
Lease vacancy | 17 | 6 | (9 | ) | 4 | 18 | ||||||||||||||
Other | — | 5 | (4 | ) | — | 1 | ||||||||||||||
Restructuring liability | $ | 89 | $ | 26 | $ | (80 | ) | $ | (1 | ) | $ | 34 | ||||||||
The following table reconciles our restructuring charges in our Consolidated Statements of Operations: | ||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Restructuring charges related to continuing operations | $ | 42 | $ | 25 | $ | 107 | ||||||||||||||
Restructuring charges related to discontinued operations | — | — | 1 | |||||||||||||||||
Total restructuring charges | $ | 42 | $ | 25 | $ | 108 | ||||||||||||||
Cost-Reductions and Other Strategic Initiatives | ||||||||||||||||||||
From time to time, we announce 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. | ||||||||||||||||||||
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. As a result of these actions, the Company recognized restructuring charges of $66 million in personnel costs for employee termination and related benefits and $7 million of employee relocation and other costs, of which all was paid in 2012 and 2013. | ||||||||||||||||||||
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. | ||||||||||||||||||||
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 has been paid during 2014. The Company expects the remaining restructuring charges will be paid throughout 2015. | ||||||||||||||||||||
Engineering Integration | ||||||||||||||||||||
In the second quarter of 2012, the Company vacated the premises of its former world headquarters in Warrenville, Illinois and recorded a charge of $16 million, consisting of $19 million for the recognition of the fair value of the lease vacancy obligation, partially offset by $3 million for the reversal of deferred rent expense. This charge was recorded in Corporate and recognized in Restructuring charges. The cash payments associated with the lease vacancy obligation are expected to be completed in January of 2016. | ||||||||||||||||||||
North American Manufacturing Restructuring Activities | ||||||||||||||||||||
We continue to focus on improving our core North America Truck and North America Parts businesses. We continue to evaluate our portfolio of assets, with the purpose of closing or divesting non-core/non-strategic businesses, and identifying opportunities to restructure our business and rationalize our Manufacturing operations in an effort to optimize our cost structure. The Company is currently evaluating its portfolio of assets to validate their strategic and financial fit. To allow us to increase our focus on our North America core businesses, we are evaluating product lines, businesses, and engineering programs that fall outside of our core businesses. We are using a ROIC methodology, combined with an assessment of the strategic fit to our core businesses, to identify areas that are not performing to our expectations. For those areas, we are evaluating whether to fix, divest, or close. These actions could result in additional restructuring and other related charges in the future, including but not limited to: (i) impairments, (ii) costs for employee and contractor termination and other related benefits, and (iii) charges for pension and other postretirement contractual benefits and curtailments. These charges could be significant. | ||||||||||||||||||||
Chatham restructuring activities | ||||||||||||||||||||
In the third quarter of 2011, the Company committed to close its Chatham, Ontario heavy truck plant, which had been idled since June 2009. Potential additional charges in future periods could range from $0 million to $60 million, primarily related to pension, postretirement costs and termination benefits, which are subject to employee negotiation, acceptance rates and the resolution of disputes related thereto. Based on a ruling received from the Financial Services Tribunal in Ontario, Canada, in the third quarter of 2014, the Company recognized additional charges of $14 million related to the 2011 closure of its Chatham, Ontario plant. The Company has appealed this ruling. See Note 11, Postretirement benefits for further discussion. | ||||||||||||||||||||
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. | ||||||||||||||||||||
Foundry Facilities | ||||||||||||||||||||
In the fourth quarter of 2014, as part of our ROIC evaluation, we anticipated an exit from our Indianapolis, Indiana foundry facility and certain assets in our Waukesha, Wisconsin foundry operations were impaired and certain other charges were recorded. As a result, the North America Truck segment recognized restructuring charges of $13 million, which are included in Restructuring charges in the Company's Consolidated Statements of Operations. The restructuring charges consist of $2 million in personnel costs for employee termination and related benefits and $11 million of charges for pension and other postretirement contractual termination benefits. We expect the restructuring charges relating to employee terminations will be paid over the next year. Also in the fourth quarter of 2014, the North America Truck segment recognized $7 million for inventory reserves related to the foundry facilities that impacted Cost of products sold in the Company's Consolidated Statements of Operations. | ||||||||||||||||||||
In addition, the North America Truck segment recognized $7 million of charges for impairments of property and equipment. The Waukesha asset group was reviewed for recoverability by comparing the carrying value to estimated future undiscounted cash flows and those carrying values were determined not to be fully recoverable. We utilized the market approach to determine the fair value of the asset group. These charges were recorded in Asset impairment charges in the Company's Consolidated Statements of Operations. In addition to the charges in the fourth quarter of 2014, we could incur additional charges up to $40 million for accelerated depreciation related to the exit of the Indianapolis foundry facility and related impacts during 2015. | ||||||||||||||||||||
Alabama Facility Sublease | ||||||||||||||||||||
In January 2012, the Company began leasing an existing manufacturing facility in Cherokee, Alabama and purchased certain machinery and equipment within the facility. In the second quarter of 2013, we signed an agreement to sublease a portion of such facility. The term of the sublease agreement runs through the remaining term of our operating lease, which ends in 2021. | ||||||||||||||||||||
Asset Impairments | ||||||||||||||||||||
The following table reconciles our impairment charges in our Consolidated Statements of Operations: | ||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Goodwill impairment charge(A) | $ | 142 | $ | 81 | $ | — | ||||||||||||||
Indefinite-lived intangible asset impairment charge | 7 | — | — | |||||||||||||||||
Other asset impairment charges related to continuing operations | 34 | 20 | 16 | |||||||||||||||||
Other asset impairment charges related to discontinued operations | — | 4 | 28 | |||||||||||||||||
Total asset impairment charges | $ | 183 | $ | 105 | $ | 44 | ||||||||||||||
_________________________ | ||||||||||||||||||||
(A) | For more information, see Note 8, Goodwill and Other Intangible Assets, Net, and includes $4 million related to discontinued operations in 2013. | |||||||||||||||||||
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 year ended October 31, 2014 in Asset impairment charges in the Company's Consolidated Statements of Operations. | ||||||||||||||||||||
The 2013 other asset impairment charges primarily consisted of $19 million for the impairment of assets that resulted from the discontinuation of certain engineering programs. The 2012 charges primarily consisted of $38 million for the impairment of certain intangible assets as a result of the Company's decision to discontinue accepting orders for its WCC business and take certain actions to idle the business. For more information, see Note 2, Discontinued Operations and Other Divestitures. |
Finance_Receivables
Finance Receivables | 12 Months Ended | |||||||||||
Oct. 31, 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 $2.6 billion and $2.4 billion as of October 31, 2014 and October 31, 2013, respectively. Included in total assets are finance receivables of $2.0 billion and $1.9 billion as of October 31, 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. | ||||||||||||
As of October 31, our Finance receivables, net consist of the following: | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Retail portfolio | $ | 726 | $ | 751 | ||||||||
Wholesale portfolio | 1,339 | 1,207 | ||||||||||
Total finance receivables | 2,065 | 1,958 | ||||||||||
Less: Allowance for doubtful accounts | 27 | 23 | ||||||||||
Total finance receivables, net | 2,038 | 1,935 | ||||||||||
Less: Current portion, net(A) | 1,758 | 1,597 | ||||||||||
Noncurrent portion, net | $ | 280 | $ | 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. | |||||||||||
As of October 31, 2014, contractual maturities of our finance receivables are as follows: | ||||||||||||
(in millions) | Retail Portfolio | Wholesale Portfolio | Total | |||||||||
Due in: | ||||||||||||
2015 | $ | 468 | $ | 1,339 | $ | 1,807 | ||||||
2016 | 147 | — | 147 | |||||||||
2017 | 88 | — | 88 | |||||||||
2018 | 50 | — | 50 | |||||||||
2019 | 22 | — | 22 | |||||||||
Thereafter | 2 | — | 2 | |||||||||
Gross finance receivables | 777 | 1,339 | 2,116 | |||||||||
Unearned finance income | 51 | — | 51 | |||||||||
Total finance receivables | $ | 726 | $ | 1,339 | $ | 2,065 | ||||||
Securitizations | ||||||||||||
Our Financial Services operations transfers wholesale notes, retail accounts receivable, retail notes, finance leases, and operating leases through 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 October 31, 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 $996 million and $948 million as of October 31, 2014 and October 31, 2013, respectively. Other finance receivables related to secured transactions that do not qualify for sale accounting treatment were $93 million and $4 million as of October 31, 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: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Retail notes and finance leases revenue | $ | 64 | $ | 78 | $ | 98 | ||||||
Wholesale notes interest | 80 | 77 | 87 | |||||||||
Operating lease revenue | 60 | 51 | 40 | |||||||||
Retail and wholesale accounts interest | 28 | 27 | 34 | |||||||||
Gross finance revenues | 232 | 233 | 259 | |||||||||
Less: Intercompany revenues | 79 | 75 | 91 | |||||||||
Finance revenues | $ | 153 | $ | 158 | $ | 168 | ||||||
Allowance_for_Doubtful_Account
Allowance for Doubtful Accounts | 12 Months Ended | |||||||||||||||||||||||
Oct. 31, 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: | ||||||||||||||||||||||||
31-Oct-14 | ||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Trade and | Total | ||||||||||||||||||||
Portfolio | Portfolio | Other | ||||||||||||||||||||||
Receivables | ||||||||||||||||||||||||
Allowance for doubtful accounts, at beginning of period | $ | 21 | $ | 2 | $ | 37 | $ | 60 | ||||||||||||||||
Provision for doubtful accounts, net of recoveries(A) | 12 | 1 | 7 | 20 | ||||||||||||||||||||
Charge-off of accounts(B) | (9 | ) | — | (6 | ) | (15 | ) | |||||||||||||||||
Allowance for doubtful accounts, at end of period | $ | 24 | $ | 3 | $ | 38 | $ | 65 | ||||||||||||||||
31-Oct-13 | ||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Trade and | Total | ||||||||||||||||||||
Portfolio | Portfolio | Other | ||||||||||||||||||||||
Receivables | ||||||||||||||||||||||||
Allowance for doubtful accounts, at beginning of period | $ | 27 | $ | — | $ | 24 | $ | 51 | ||||||||||||||||
Provision for doubtful accounts, net of recoveries(A) | 4 | 2 | 14 | 20 | ||||||||||||||||||||
Charge-off of accounts(B) | (10 | ) | — | (1 | ) | (11 | ) | |||||||||||||||||
Allowance for doubtful accounts, at end of period | $ | 21 | $ | 2 | $ | 37 | $ | 60 | ||||||||||||||||
31-Oct-12 | ||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Trade and | Total | ||||||||||||||||||||
Portfolio | Portfolio | Other | ||||||||||||||||||||||
Receivables | ||||||||||||||||||||||||
Allowance for doubtful accounts, at beginning of period | $ | 31 | $ | 2 | $ | 17 | $ | 50 | ||||||||||||||||
Provision for doubtful accounts, net of recoveries(A) | 3 | (2 | ) | 13 | 14 | |||||||||||||||||||
Charge-off of accounts(B) | (7 | ) | — | (6 | ) | (13 | ) | |||||||||||||||||
Allowance for doubtful accounts, at end of period | $ | 27 | $ | — | $ | 24 | $ | 51 | ||||||||||||||||
________________________ | ||||||||||||||||||||||||
(A) | Amounts include currency translation. | |||||||||||||||||||||||
(B) | 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, $2 million, and $6 million in 2014, 2013, and 2012, respectively. | |||||||||||||||||||||||
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: | ||||||||||||||||||||||||
31-Oct-14 | 31-Oct-13 | |||||||||||||||||||||||
(in millions) | Retail | Wholesale | Total | Retail | Wholesale | Total | ||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||||
Impaired finance receivables with specific loss reserves | $ | 20 | $ | — | $ | 20 | $ | 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 | 21 | — | 21 | 10 | — | 10 | ||||||||||||||||||
For the impaired finance receivables in the retail portfolio as of October 31, 2014 and 2013, the average balances of those receivables were $21 million and $13 million during the year ended October 31, 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: | ||||||||||||||||||||||||
31-Oct-14 | ||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Total | |||||||||||||||||||||
Portfolio | Portfolio | |||||||||||||||||||||||
Current, and up to 30 days past due | $ | 643 | $ | 1,333 | $ | 1,976 | ||||||||||||||||||
30-90 days past due | 64 | 2 | 66 | |||||||||||||||||||||
Over 90 days past due | 19 | 4 | 23 | |||||||||||||||||||||
Total finance receivables | $ | 726 | $ | 1,339 | $ | 2,065 | ||||||||||||||||||
Inventories
Inventories | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
As of October 31, the following table presents the components of Inventories: | ||||||||
(in millions) | 2014 | 2013 | ||||||
Finished products | $ | 880 | $ | 692 | ||||
Work in process | 50 | 58 | ||||||
Raw materials | 389 | 460 | ||||||
Total inventories | $ | 1,319 | $ | 1,210 | ||||
Property_and_Equipment_Net_Not
Property and Equipment, Net (Notes) | 12 Months Ended | |||||||||||
Oct. 31, 2014 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | Property and Equipment, Net | |||||||||||
As of October 31, Property and equipment, net included the following: | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Land | $ | 82 | $ | 87 | ||||||||
Buildings | 518 | 575 | ||||||||||
Leasehold improvements | 60 | 68 | ||||||||||
Machinery and equipment | 2,232 | 2,289 | ||||||||||
Furniture, fixtures, and equipment | 487 | 444 | ||||||||||
Equipment leased to others | 677 | 663 | ||||||||||
Construction in progress | 41 | 55 | ||||||||||
Total property and equipment, at cost | 4,097 | 4,181 | ||||||||||
Less: Accumulated depreciation and amortization | 2,535 | 2,440 | ||||||||||
Property and equipment, net | $ | 1,562 | $ | 1,741 | ||||||||
Certain of our property and equipment serve as collateral for borrowings. See Note 10, Debt, for description of borrowings. | ||||||||||||
As of October 31, equipment leased to others and assets under financing arrangements and capital lease obligations are as follows: | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Equipment leased to others | $ | 677 | $ | 663 | ||||||||
Less: Accumulated depreciation | 210 | 191 | ||||||||||
Equipment leased to others, net | $ | 467 | $ | 472 | ||||||||
Buildings, machinery, and equipment under financing arrangements and capital lease obligations | $ | 70 | $ | 93 | ||||||||
Less: Accumulated depreciation and amortization | 32 | 31 | ||||||||||
Assets under financing arrangements and capital lease obligations, net | $ | 38 | $ | 62 | ||||||||
For the years ended October 31, 2014, 2013, and 2012, depreciation expense, amortization expense related to assets under financing arrangements and capital lease obligations, and interest capitalized on construction projects are as follows: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Depreciation expense | $ | 206 | $ | 260 | $ | 248 | ||||||
Depreciation of equipment leased to others | 105 | 135 | 46 | |||||||||
Amortization expense | 3 | — | 4 | |||||||||
Interest capitalized | — | 5 | 9 | |||||||||
Certain depreciation expense on buildings used for administrative purposes is recorded in Selling, general and administrative expenses. | ||||||||||||
Capital Expenditures | ||||||||||||
At October 31, 2014, 2013, and 2012 respectively, commitments for capital expenditures were $15 million, $11 million, and $48 million respectively. At October 31, 2014, 2013, and 2012, liabilities related to capital expenditures that are included in accounts payable were $1 million, $2 million, and $29 million, respectively. | ||||||||||||
Leases | ||||||||||||
We lease certain land, buildings, and equipment under non-cancelable operating leases and capital leases expiring at various dates through 2024. Operating leases generally have 1 to 20 year terms, with one or more renewal options, with terms to be negotiated at the time of renewal. Various leases include provisions for rent escalation to recognize increased operating costs or require us to pay certain maintenance and utility costs. Our rent expense for the years ended October 31, 2014, 2013, and 2012 was $62 million, $74 million, and $63 million, respectively. Rental income from subleases for the years ended October 31, 2014, 2013, and 2012 was $10 million, $7 million, and $4 million, respectively. | ||||||||||||
Future minimum lease payments at October 31, 2014, for those leases having an initial or remaining non-cancelable lease term in excess of one year and certain leases that are treated as finance lease obligations, are as follows: | ||||||||||||
(in millions) | Financing | Operating | Total | |||||||||
Arrangements | Leases | |||||||||||
and Capital | ||||||||||||
Lease Obligations | ||||||||||||
2015 | $ | 11 | $ | 65 | $ | 76 | ||||||
2016 | 10 | 51 | 61 | |||||||||
2017 | 9 | 41 | 50 | |||||||||
2018 | 9 | 36 | 45 | |||||||||
2019 | 9 | 29 | 38 | |||||||||
Thereafter | 20 | 71 | 91 | |||||||||
68 | $ | 293 | $ | 361 | ||||||||
Less: Interest portion | 14 | |||||||||||
Total | $ | 54 | ||||||||||
Asset Retirement Obligations | ||||||||||||
We have a number of asset retirement obligations in connection with certain owned and leased locations, leasehold improvements, and sale and leaseback arrangements. Certain of our production facilities contain asbestos that would have to be removed if such facilities were to be demolished or undergo a major renovation. The fair value of the conditional asset retirement obligations as of the balance sheet date has been determined to be immaterial. Asset retirement obligations relating to the cost of removing improvements to leased facilities or returning leased equipment at the end of the associated agreements are not material. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible assets, Net (Notes) | 12 Months Ended | |||||||||||||||
Oct. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Other Intangible Assets, Net | |||||||||||||||
For reporting units with goodwill, we perform goodwill impairment tests on an annual basis on August 1st, 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. As part of our impairment analysis for these reporting units, we performed a qualitative assessment or we determined the fair value of the reporting unit based on estimates of its future cash flows. | ||||||||||||||||
Changes in the carrying amount of goodwill for each operating segment are as follows: | ||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Total | ||||||||||||
As of October 31, 2011 | $ | 82 | $ | 38 | $ | 199 | $ | 319 | ||||||||
Currency translation | — | — | (33 | ) | (33 | ) | ||||||||||
Adjustments(A) | — | — | (6 | ) | (6 | ) | ||||||||||
As of October 31, 2012 | $ | 82 | $ | 38 | $ | 160 | $ | 280 | ||||||||
Impairments | (81 | ) | — | — | (81 | ) | ||||||||||
Currency translation | — | — | (12 | ) | (12 | ) | ||||||||||
Adjustments(A) | (1 | ) | — | (2 | ) | (3 | ) | |||||||||
As of October 31, 2013 | $ | — | $ | 38 | $ | 146 | $ | 184 | ||||||||
Impairments | — | — | (142 | ) | (142 | ) | ||||||||||
Currency translation | — | — | (4 | ) | (4 | ) | ||||||||||
As of October 31, 2014 | $ | — | $ | 38 | $ | — | $ | 38 | ||||||||
_________________________ | ||||||||||||||||
(A) | Adjustments to goodwill primarily result from the tax benefit attributable to the amortization of tax deductible goodwill in excess of goodwill recorded for financial statement purposes as measured in the IIAA balance sheet immediately after its acquisition in 2005. | |||||||||||||||
During 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 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. | ||||||||||||||||
In the fourth quarter of 2013, our North America Truck segment recorded a non-cash charge of $77 million to reflect impairment of goodwill. As a result of certain changes in our organizational and reporting structures, we reviewed the recoverability of our goodwill in the North America truck reporting unit. The income approach, which was based on discounted cash flows was used in the impairment analysis for the reporting unit. The impairment charges were included in Asset impairment charges. In the second quarter of 2013, our North America Truck segment recorded a non-cash charge of $4 million to reflect impairment of goodwill related to the divestiture of Monaco. The impairment charges were included in the Income (loss) from discontinued operations, net of tax. | ||||||||||||||||
Information regarding our intangible assets that are not subject to amortization as of October 31 is as follows: | ||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||
Dealer franchise rights | $ | 1 | $ | 1 | ||||||||||||
Trademarks | 33 | 45 | ||||||||||||||
Intangible assets not subject to amortization | $ | 34 | $ | 46 | ||||||||||||
Information regarding our intangible assets that are subject to amortization at October 31, is as follows: | ||||||||||||||||
As of October 31, 2014 | ||||||||||||||||
(in millions) | Customer | Trademarks, Patents and Other | Total | |||||||||||||
Base and | ||||||||||||||||
Relationships | ||||||||||||||||
Gross carrying value | $ | 80 | $ | 85 | $ | 165 | ||||||||||
Accumulated amortization | (60 | ) | (49 | ) | (109 | ) | ||||||||||
Net of amortization | $ | 20 | $ | 36 | $ | 56 | ||||||||||
As of October 31, 2013 | ||||||||||||||||
(in millions) | Customer | Trademarks, Patents and Other | Total | |||||||||||||
Base and | ||||||||||||||||
Relationships | ||||||||||||||||
Gross carrying value | $ | 88 | $ | 101 | $ | 189 | ||||||||||
Accumulated amortization | (55 | ) | (42 | ) | (97 | ) | ||||||||||
Net of amortization | $ | 33 | $ | 59 | $ | 92 | ||||||||||
We recorded amortization expense for our finite-lived intangible assets of $18 million, $22 million, and $25 million for the years ended October 31, 2014, 2013, and 2012, respectively. Future estimated amortization expense for our finite-lived intangible assets for the remaining years is as follows: | ||||||||||||||||
(in millions) | Estimated | |||||||||||||||
Amortization | ||||||||||||||||
2015 | $ | 15 | ||||||||||||||
2016 | 12 | |||||||||||||||
2017 | 11 | |||||||||||||||
2018 | 7 | |||||||||||||||
2019 | 3 | |||||||||||||||
Thereafter | 8 | |||||||||||||||
Investments_in_NonConsolidated
Investments in Non-Consolidated Affiliates (Notes) | 12 Months Ended | |||||||||||
Oct. 31, 2014 | ||||||||||||
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ||||||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Investments in Non-consolidated Affiliates | |||||||||||
Investments in non-consolidated affiliates is comprised of our interests in partially-owned affiliates of which our ownership percentages range from 10% to 50%. We do not control these affiliates, but have the ability to exercise significant influence over their operating and financial policies. We account for them using the equity method of accounting. We made no new and incremental investments in these non-consolidated affiliates for 2014, compared to $25 million in 2013. | ||||||||||||
The following table summarizes 100% of the combined assets, liabilities, and equity of our equity method affiliates as of October 31: | ||||||||||||
(Unaudited) | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Assets: | ||||||||||||
Current assets | $ | 252 | $ | 254 | ||||||||
Noncurrent assets | 130 | 50 | ||||||||||
Total assets | $ | 382 | $ | 304 | ||||||||
Liabilities and equity: | ||||||||||||
Current liabilities | $ | 191 | $ | 111 | ||||||||
Noncurrent liabilities | 12 | 8 | ||||||||||
Total liabilities | 203 | 119 | ||||||||||
Partners' capital and stockholders' equity: | ||||||||||||
NIC | 75 | 77 | ||||||||||
Third parties | 104 | 108 | ||||||||||
Total partners' capital and stockholders' equity | 179 | 185 | ||||||||||
Total liabilities and equity | $ | 382 | $ | 304 | ||||||||
The following table summarizes 100% of the combined results of operations of our equity method affiliates for the years ended October 31: | ||||||||||||
(Unaudited) | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Net sales | $ | 527 | $ | 448 | $ | 704 | ||||||
Costs, expenses, and income tax expense | 500 | 412 | 726 | |||||||||
Net income (loss) | $ | 27 | $ | 36 | $ | (22 | ) | |||||
We recorded sales to certain of these affiliates totaling $8 million, $63 million, and $25 million in 2014, 2013, and 2012, respectively. We also purchased $219 million, $245 million, and $370 million of products and services from certain of these affiliates in 2014, 2013, and 2012, respectively. | ||||||||||||
Amounts due to and due from our affiliates arising from the sale and purchase of products and services as of October 31, are as follows: | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Receivables due from affiliates | $ | 1 | $ | 23 | ||||||||
Payables due to affiliates | 30 | 32 | ||||||||||
As of October 31, 2014 and 2013, our share of net unfunded earnings in non-consolidated affiliates totaled $25 million and $27 million, respectively. | ||||||||||||
In February 2013, the Company sold its interests 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. |
Debt
Debt | 12 Months Ended | |||||||||||
Oct. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Debt | Debt | |||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Manufacturing operations | ||||||||||||
Senior Secured Term Loan Credit Facility, as amended, due 2017, net of unamortized discount of $3 and $4, respectively | $ | 694 | $ | 693 | ||||||||
8.25% Senior Notes, due 2021, net of unamortized discount of $20 and $22, respectively | 1,180 | 1,178 | ||||||||||
3.00% Senior Subordinated Convertible Notes, paid 2014, net of unamortized discount of $26 | — | 544 | ||||||||||
4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $19 and $23, respectively | 181 | 177 | ||||||||||
4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $40 | 371 | — | ||||||||||
Debt of majority-owned dealerships | 30 | 48 | ||||||||||
Financing arrangements and capital lease obligations | 54 | 77 | ||||||||||
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040 | 225 | 225 | ||||||||||
Promissory Note | 10 | 20 | ||||||||||
Financed lease obligations | 184 | 218 | ||||||||||
Other | 29 | 39 | ||||||||||
Total Manufacturing operations debt | 2,958 | 3,219 | ||||||||||
Less: Current portion | 100 | 658 | ||||||||||
Net long-term Manufacturing operations debt | $ | 2,858 | $ | 2,561 | ||||||||
(in millions) | 2014 | 2013 | ||||||||||
Financial Services operations | ||||||||||||
Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2019 | $ | 914 | $ | 778 | ||||||||
Bank revolvers, at fixed and variable rates, due dates from 2014 through 2020 | 1,242 | 1,018 | ||||||||||
Commercial paper, at variable rates, program matures in 2015 | 74 | 21 | ||||||||||
Borrowings secured by operating and finance leases, at various rates, due serially through 2018 | 36 | 49 | ||||||||||
Total Financial Services operations debt | 2,266 | 1,866 | ||||||||||
Less: Current portion | 1,195 | 505 | ||||||||||
Net long-term Financial Services operations debt | $ | 1,071 | $ | 1,361 | ||||||||
Manufacturing Operations | ||||||||||||
Senior Secured Term Loan Credit Facility, as Amended | ||||||||||||
In August 2012, NIC and Navistar, Inc. signed a definitive credit agreement relating to a senior secured, term loan credit facility in an aggregate principal amount of $1 billion (the "Term Loan Credit Facility") and borrowed an aggregate principal amount of $1 billion under the Term Loan Credit Facility. The Term Loan Credit Facility required quarterly principal amortization payments of 0.25% of the aggregate principal amount, with the balance due at maturity. | ||||||||||||
The Term Loan Credit Facility is secured by a first priority security interest in certain assets of NIC, Navistar, Inc., and fourteen of its direct and indirect subsidiaries, and contains customary provisions for financings of this type, including, without limitation, representations and warranties, affirmative and negative covenants and events of default. Generally, if an event of default occurs and is not cured within any specified grace period, the administrative agent, at the request of (or with the consent of) the lenders holding not less than a majority in principal amount of the outstanding term loans, may declare the term loan to be due and payable immediately. | ||||||||||||
In April 2013, the Term Loan Credit Facility was amended (the "Amended Term Loan Credit Facility"), to: (i) change the maturity date of all borrowings under the Term Loan Credit Facility to August 17, 2017, (ii) lower the interest on all borrowings under the Term Loan Credit Facility to a rate equal to a base rate plus a spread of 350 basis points, or a Eurodollar rate plus a spread of 450 basis points with a London Interbank Offered Rate ("LIBOR") floor that was reduced to 125 basis points, (iii) provide additional operating flexibility, and (iv) remove certain pledged assets as collateral from the Term Loan Credit Facility. | ||||||||||||
In April 2013, Navistar, Inc. used proceeds derived from the March 2013 sale of additional 8.25% Senior Notes due 2021 (the "Senior Notes"), as described below, to make a principal repayment of $300 million against the Term Loan Credit Facility (the "April 2013 Principal Repayment"). As a result of the April 2013 Principal Repayment, no further quarterly principal payments are required. In the second quarter of 2013, the Company recorded charges of $13 million related to the April 2013 Principal Repayment and amendment of the Term Loan Credit Facility. The charges were recognized in Other income (expense), net, and included the write-off of related discount and debt issuance costs and a prepayment premium fee. | ||||||||||||
Senior Notes | ||||||||||||
In October 2009, we completed the sale of $1 billion aggregate principal amount of our Senior Notes. In March 2013, we completed the sale of an additional $300 million aggregate principal amount of Senior Notes. Interest related to the Senior Notes is payable on May 1 and November 1 of each year until the maturity date of November 1, 2021. The Senior Notes are senior unsecured obligations of the Company. | ||||||||||||
From the March 2013 sale of additional Senior Notes, the Company received net proceeds of approximately $310 million, which included an offering premium of $4 million and accrued interest of $10 million, offset by underwriter fees of $4 million. The debt issuance costs were recorded in Other noncurrent assets and will be amortized through Interest expense. Both the offering premium and the debt issuance costs will be accreted over the life of the Senior Notes. As a result of the transaction, the effective interest rate of the Senior Notes is now 8.50%. The proceeds from the March 2013 sale of additional Senior Notes were used to make the April 2013 Principal Repayment. | ||||||||||||
On or after November 1, 2014, the Company can redeem all or part of the Senior Notes during the twelve-month period beginning on November 1, 2014, 2015, 2016, 2017, and thereafter at a redemption price equal to 104.125%, 102.75%, 101.375%, and 100%, respectively, of the principal amount of the Senior Notes redeemed. | ||||||||||||
In addition, not more than once during each twelve-month period ending on November 1, 2010, 2011, 2012, 2013, and 2014, the Company was permitted under the indenture to redeem up to $50 million in principal amount of the Senior Notes in each such twelve-month period, at a redemption price equal to 103% of the principal amount of the Senior Notes redeemed, plus accrued and unpaid interest, if any. The Company exercised this early redemption feature for a total principal amount of $100 million, by redeeming $50 million of Senior Notes on November 1, 2011 and an additional $50 million of Senior Notes on November 2, 2011. In the first quarter of 2012, the Company recorded $8 million of charges related to the early redemption premium and write-off of related discount and debt issuance costs. | ||||||||||||
The Company was permitted under the indenture to redeem the Senior Notes at its election in whole or part at any time prior to November 1, 2014 at a redemption price equal to 100% of the principal amount thereof plus the applicable premium, plus accrued and unpaid interest, to the redemption date. The applicable premium is defined as the greater of: 1% of the principal amount and the excess, if any, of (i) the present value as of such date of redemption of (A) the redemption price of such Senior Note on November 1, 2014, plus (B) all required interest payments due on such Senior Note through November 1, 2014, computed using a discount rate equal to the Treasury Rate (as defined in the debt agreement), plus 50 basis points over (ii) the then-outstanding principal of such Senior Note. | ||||||||||||
3.00% Senior Subordinated Convertible Notes | ||||||||||||
In October 2009, we completed the sale of $570 million aggregate principal amount of 3.00% senior subordinated convertible notes ("2014 Convertible Notes"), including over-allotment options. The 2014 Convertible Notes were senior subordinated unsecured obligations of the Company. | ||||||||||||
In connection with the sale of the 2014 Convertible Notes, the Company purchased call options for $125 million. The call options covered 11,337,870 shares of common stock, subject to adjustments, at an exercise price of $50.27. The call options were intended to minimize share dilution associated with the 2014 Convertible Notes. In addition, in connection with the sale of the 2014 Convertible Notes, the Company also entered into separate warrant transactions whereby, the Company sold warrants for $87 million to sell in the aggregate 11,337,870 shares of common stock, subject to adjustments, at an exercise price of $60.14 per share of common stock. As of October 31, 2014, there were 4,814,551 warrants outstanding until April 2015. | ||||||||||||
During the second quarter of 2014, the Company used proceeds from the issuance of the 2019 Convertible Notes (as defined below), 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. On October 15, 2014, upon maturity the 2014 Convertible Notes were paid in full and the purchased call options expired worthless. | ||||||||||||
4.50% Senior Subordinated Convertible Notes | ||||||||||||
In October 2013, we completed the private sale of $200 million of 4.50% senior subordinated convertible notes due October 2018 ("2018 Convertible Notes"). The Company received proceeds of $196 million, net of $3 million of issuance costs and a $1 million issuance discount. Interest is payable on April 15 and October 15 of each year until the maturity date. The 2018 Convertible Notes are senior subordinated unsecured obligations of the Company. | ||||||||||||
In accounting for the issuance, the 2018 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 2018 Convertible Notes. We estimated the fair value of the liability component at $177 million. The equity component of $22 million, net of discount, 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 most of the $3 million of debt issue costs being recorded in Other noncurrent assets and the remainder being 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 2018 Convertible Notes. | ||||||||||||
The Company has the option to redeem the 2018 Convertible Notes for cash, in whole or in part, on any business day on or after October 15, 2016 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 2018 Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. | ||||||||||||
Holders may convert the 2018 Convertible Notes into common stock of the Company at any time on or after April 15, 2018. Holders may also convert the 2018 Convertible Notes at their option prior to April 15, 2018, under the following circumstances: (i) during any fiscal quarter (and only during that fiscal quarter) commencing after October 31, 2013, 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 five business day period after any five 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, 2016, holders of the 2018 Convertible Notes will have the right to convert their 2018 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 2018 Convertible Notes indenture. The conversion rate will initially be 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 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 2018 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 2018 Convertible Notes on or after April 15, 2018, and the Company elects physical settlement, the holder will not receive the shares of common stock into which the 2018 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 2018 Convertible Notes with cash. Subject to certain exceptions, holders may require the Company to repurchase, for cash, all or part of the 2018 Convertible Notes at a price equal to 100% of the principal amount of the 2018 Convertible Notes being repurchased plus any accrued and unpaid interest. | ||||||||||||
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 2019 Convertible 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 2019 Convertible 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. | ||||||||||||
Debt of Majority-owned Dealerships | ||||||||||||
Our majority-owned dealerships incur debt to finance their inventories, property, and equipment. The various dealership debt instruments have interest rates that range from 4.3% to 7.7% and maturities that extend to 2021. | ||||||||||||
Financing Arrangements and Capital Lease Obligations | ||||||||||||
Included in our financing arrangements and capital lease obligations are financing arrangements of $6 million and $24 million as of October 31, 2014 and 2013, respectively. The majority of the financing arrangements and capital lease obligations in 2013 involve the sale and leaseback of manufacturing equipment considered integral equipment, which matured in 2014. In addition, the amount of financing arrangements and capital lease obligations includes $4 million and $2 million of capital leases for real estate and equipment as of October 31, 2014 and 2013, respectively. | ||||||||||||
In January 2012, the Company began leasing an existing manufacturing facility in Cherokee, Alabama and purchased certain machinery and equipment within that facility. In relation to the machinery and equipment, the Company entered into a $40 million promissory note with the lessor. This amount is payable in monthly installments over a ten-year term, in conjunction with the lease of the facility. The Company recorded the machinery and equipment, and the associated liability, at the relative fair value of $58 million. | ||||||||||||
Loan Agreement related to the Tax Exempt Bonds | ||||||||||||
In October 2010, we benefited from the issuance of certain tax-exempt bond financings, of which: (i) the Illinois Finance Authority issued and sold $135 million aggregate principal amount of Recovery Zone Facility Revenue Bonds due October 15, 2040, and (ii) The County of Cook, Illinois issued and sold $90 million aggregate principal amount of Recovery Zone Facility Revenue Bonds also due October 15, 2040 (collectively the "Tax Exempt Bonds"). The Tax Exempt Bonds were issued pursuant to separate, but substantially identical, indentures of trust dated as of October 1, 2010. The proceeds of the Tax Exempt Bonds were loaned by each issuer to the Company pursuant to separate, but substantially identical, loan agreements dated as of October 1, 2010. The proceeds from the issuance of the Tax Exempt Bonds are restricted, and must be used substantially for capital expenditures related to financing the relocation of the Company's headquarters, the expansion of an existing warehouse facility, and the development of certain industrial and testing facilities, together with related improvements and equipment (the "Projects"). The payment of principal and interest on the Tax Exempt Bonds are guaranteed under separate, but substantially identical, bond guarantees issued by Navistar, Inc. The Tax Exempt Bonds are special, limited obligations of each issuer, payable out of the revenues and income derived under the related loan agreements and related guarantees. The Tax Exempt Bonds bear interest at the fixed rate of 6.5% per annum, payable each April 15 and October 15, commencing April 15, 2011. Beginning on October 15, 2020, the Tax Exempt Bonds are subject to optional redemption at the direction of the Company, in whole or in part, at the redemption price equal to 100% of the principal amount thereof, plus accrued interest, if any, to the redemption date. The funds received from the issuance of the Tax Exempt Bonds were deposited directly into trust accounts by the bonding authority at the time of issuance, and will be remitted to the Company on a reimbursement basis as we make qualified capital expenditures related to the Projects. As the Company does not have the ability to use these funds for general operating purposes, they are classified as Other noncurrent assets in our Consolidated Balance Sheets. In addition, as the Company did not receive cash proceeds upon the closing of the Tax Exempt Bonds, there was no impact on the Consolidated Statement of Cash Flows for the year ended October 31, 2010. As the Company makes qualifying capital expenditures and is reimbursed by the Trust, the Company reports the corresponding amounts as capital expenditures and proceeds from issuance of debt within the Consolidated Statement of Cash Flows. In November 2010, we finalized the purchase of the property and buildings that we developed into our new world headquarters site. As of October 31, 2014, only $2.3 million of the $225 million remains to be reimbursed under the Tax Exempt Bonds. | ||||||||||||
Promissory Note | ||||||||||||
In September 2011, Navistar, Inc. entered into a $40 million floating rate promissory note with Caterpillar (the "Promissory Note"), under which the principal amount will be repaid over a 4 year term in 16 quarterly installments. The floating interest rate for the Promissory Note will be computed based on LIBOR plus 2.75% over the term of the note. | ||||||||||||
Financed Lease Obligations | ||||||||||||
We have accounted for as borrowings certain third-party equipment financings by GE, our preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. The initial transactions do not qualify for revenue recognition as we retain substantial risks of ownership in the leased property. As a result, the proceeds from the transfer are recorded as an obligation and amortized to revenue over the term of the financing. The remaining obligation will be amortized through 2019 with interest rates ranging from 2.8% to 7.6%. In the second quarter of 2013, the Company recorded certain out-of-period adjustments for the correction of prior-period errors, which resulted in the financed lease obligations balance as of October 31, 2012 being understated by $167 million. For more information, see Note 1, Summary of Significant Accounting Policies. | ||||||||||||
Amended and Restated Asset-Based Credit Facility | ||||||||||||
In August 2012, Navistar, Inc. entered into our amended and restated asset-based credit agreement in an aggregate principal amount of $175 million (the "Amended and Restated Asset-Based Credit Facility"). The borrowing base of the facility was secured by a first priority security interest in Navistar, Inc.'s aftermarket parts inventory that is stored at certain parts distribution centers, storage facilities and third-party processor or logistics provider locations. In April 2013, the Amended and Restated Asset-Based Credit Facility was amended to include used truck inventory in the borrowing base. | ||||||||||||
Also in April 2013, the maturity date of the Amended and Restated Asset-Based Credit Facility automatically extended to May 18, 2017, as a result of a modification to the maturity date of our Term Loan Credit Facility. The Amended and Restated Asset-Based Credit Facility contains customary provisions for financings of this type, including, without limitation, representations and warranties, affirmative and negative covenants and events of default. All borrowings under the Amended and Restated Asset-Based Credit Facility accrue interest at a rate equal to a base rate or an adjusted LIBOR rate plus a spread. The spread, which will be based on an availability-based measure, ranges from 175 basis points to 225 basis points for Base Rate borrowings and 275 basis points to 325 basis points for LIBOR borrowings. The initial LIBOR spread was 275 basis points. | ||||||||||||
On July 3, 2014, the Amended and Restated Asset-Based Credit Facility was further amended to remove used truck inventory from the borrowing base. Additionally, the calculation of availability was revised to include cash collateral posted to support outstanding designated letters of credit, subject to a $40 million cap, and the cash management provisions were amended to reflect intercreditor arrangements with respect to a financing with NFC secured by a first priority lien on the used truck inventory. In connection with the removal of used truck inventory from the borrowing base, certain adjustments were made to the covenants to reflect that such assets were no longer included in the borrowing base. The amendment also provides for a 1.00% reduction in the amount of the participation fee with respect to designated letters of credit in the event that all outstanding letters of credit are in excess of $50 million, such reduction applying only to the portion of designated letters of credit in excess of $50 million for all outstanding letters of credit. The amendment had no impact on the aggregate commitment level under the Amended and Restated Asset-Based Credit Facility Agreement, which remains at $175 million. | ||||||||||||
As of October 31, 2014 we had no borrowings under the Amended and Restated Asset-Based Credit Facility. | ||||||||||||
Financial Services Operations | ||||||||||||
Asset-backed Debt | ||||||||||||
In June 2012, NFC's wholly-owned subsidiary Navistar Financial Retail Receivables Corporation ("NFRRC") issued $502 million of borrowings secured by retail asset-backed securities that matures in January 2019. Proceeds were used to settle the borrowings secured by retail asset-backed securities of $372 million issued in May 2012, and to settle a portion of NFC's bank credit facility revolving line of credit. | ||||||||||||
In February 2013, NFC completed the sale of $200 million of two-year investor notes secured by assets of the wholesale note owner trust. Proceeds were used to reduce borrowings under the variable funding notes ("VFN") facility. In conjunction with this sale, and in accordance with the terms of the VFN facility, the maximum capacity of the VFN facility was reduced from $750 million to $500 million. In March 2014, the maturity date of the $500 million VFN facility was extended from September 2014 to March 2015. | ||||||||||||
In October 2013, NFC completed the sale of $250 million of two-year investor notes secured by assets of the wholesale note owner trust. Proceeds were used, in part, to replace the $224 million of investor notes that matured in October 2013. | ||||||||||||
In November 2014, subsequent to our fiscal year end, NFC completed the sale of $250 million of two-year investor notes secured by assets of the wholesale note owner trust. Proceeds will be used, in part, to replace the $200 million of investor notes that mature in January 2015. Also in November 2014, the wholesale note owner trust was amended to reduce customer concentration restrictions. | ||||||||||||
In May 2013, our Mexican financial services affiliate, Navistar Financial, S.A. de C.V., SOFOM, E.N.R. ("NFM"), completed the sale of P$1 billion (the equivalent of approximately $74 million at October 31, 2014) of five-year notes secured by retail finance receivables. In November 2013, this facility was expanded by an additional P$800 million (the equivalent of $60 million at October 31, 2014). | ||||||||||||
In May 2014, Truck Retail Accounts Corporation ("TRAC"), our consolidated SPE, entered into a one-year revolving facility to fund up to $100 million. Borrowings under this facility are secured by eligible retail accounts receivable. No TRAC funding facility was in place as of October 31, 2013. | ||||||||||||
The majority of the above asset-backed debt is issued by consolidated SPEs and is payable out of collections on the finance receivables sold to the SPEs. This debt is the legal obligation of the SPEs and not NFC or NFM. Assets used as collateral include finance receivables, restricted cash and other assets. The carrying amount of the assets used as collateral for asset-backed debt was $1.2 billion and $989 million as of October 31, 2014 and 2013, respectively. See Note 4, Finance Receivables, for more information on finance receivables used to secure asset-backed debt. | ||||||||||||
Bank Revolvers and Commercial Paper | ||||||||||||
In December 2011, NFC refinanced its 2009 bank credit facility with a five-year $840 million facility consisting of a $340 million term loan and a $500 million revolving line of credit, of which our Mexican finance subsidiary may borrow up to $200 million. The facility is subject to customary operational and financial covenants. Remaining quarterly principal payments on the term portion are $9 million for the following eight quarters, with the remaining principal balance due upon maturity. In July 2014, NFC paid a $30 million cash dividend to Navistar, Inc. Dividends and certain affiliate loans are subject to the restricted payment covenants set forth in the bank credit facility. | ||||||||||||
We borrow funds under various bank credit lines denominated in U.S. dollars and Mexican pesos to be used for investment in our Mexican financial services operations. As of October 31, 2014, borrowings outstanding under these arrangements, including commercial paper, were $535 million, of which 51% is denominated in dollars and 49% in pesos. As of October 31, 2013, borrowings outstanding under these arrangements, including commercial paper, were $489 million, of which 36% is denominated in dollars and 64% in pesos. The interest rates on the dollar-denominated debt are at a negotiated fixed rate or at a variable rate based on LIBOR, and the interest rates on peso-denominated debt are based on the Interbank Interest Equilibrium Rate. | ||||||||||||
Effective August 2013, our Mexican Financial Services operation entered into a two-year commercial paper program for up to P$1 billion (the equivalent of approximately $74 million at October 31, 2014). | ||||||||||||
Borrowings Secured by Operating and Finance Leases | ||||||||||||
International Truck Leasing Corporation ("ITLC"), a special purpose, wholly-owned subsidiary of NFC, provides NFC with another entity to obtain borrowings secured by leases. The balances are classified under Financial Services operations debt as borrowings secured by leases. ITLC's assets are available to satisfy its creditors' claims prior to such assets becoming available for ITLC's use or to NFC or affiliated companies. In December 2013, ITLC issued new borrowings of $21 million. The balance of these secured borrowings issued by ITLC totaled $36 million and $49 million as of October 31, 2014 and 2013, respectively. The carrying amount of assets used as collateral was $48 million and $61 million as of October 31, 2014 and 2013, respectively. ITLC does not have any unsecured debt. | ||||||||||||
Future Maturities | ||||||||||||
The aggregate contractual annual maturities for debt as of October 31, 2014, are as follows: | ||||||||||||
Manufacturing | Financial | Total | ||||||||||
Operations | Services | |||||||||||
Operations | ||||||||||||
(in millions) | ||||||||||||
2015 | $ | 100 | $ | 1,195 | $ | 1,295 | ||||||
2016 | 100 | 177 | 277 | |||||||||
2017 | 748 | 801 | 1,549 | |||||||||
2018 | 227 | 49 | 276 | |||||||||
2019 | 421 | 43 | 464 | |||||||||
Thereafter | 1,444 | 1 | 1,445 | |||||||||
Total debt | 3,040 | 2,266 | 5,306 | |||||||||
Less: Unamortized discount | 82 | — | 82 | |||||||||
Net debt | $ | 2,958 | $ | 2,266 | $ | 5,224 | ||||||
Debt and Lease Covenants | ||||||||||||
We have certain public and private debt agreements, including the indenture for our Senior Notes, the loan agreements for the Tax Exempt Bonds, the Amended Term Loan Credit Facility, and the Amended and Restated Asset-Based Credit Facility, which limit our ability to incur additional indebtedness, pay dividends, buy back our stock, and take other actions. The terms of our 2018 Convertible Notes and 2019 Convertible Notes (together, the "Notes") do not contain covenants that could limit the amount of debt we may issue, or restrict us from paying dividends or repurchasing our other securities. However, the indentures for the Notes define circumstances under which the Company would be required to repurchase the Notes and include limitations on consolidation, merger, and sale of the Company's assets. As of October 31, 2014, we were in compliance with these covenants. | ||||||||||||
We are also required under certain agreements with public and private lenders of NFC to ensure that NFC and its subsidiaries maintain their income before interest expense and income taxes at not less than 125% of their total interest expense. Under these agreements, if NFC's consolidated income, including capital contributions made by NIC or Navistar, Inc., before interest expense and income taxes is less than 125% of its interest expense ("fixed charge coverage ratio"), NIC or Navistar, Inc. must make payments to NFC to achieve the required ratio. During the years ended October 31, 2014, 2013, and 2012, no such payments were made. | ||||||||||||
Our Mexican financial services operations also have debt covenants, which require the maintenance of certain financial ratios. As of October 31, 2014, we were in compliance with those covenants. |
Postretirement_Benefits
Postretirement Benefits | 12 Months Ended | |||||||||||||||||||||||||||||||
Oct. 31, 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, surviving spouses and dependents. | ||||||||||||||||||||||||||||||||
Obligations and Funded Status | ||||||||||||||||||||||||||||||||
A summary of the changes in benefit obligations and plan assets is as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Health and Life | |||||||||||||||||||||||||||||||
Insurance Benefits | ||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Change in benefit obligations | ||||||||||||||||||||||||||||||||
Benefit obligations at beginning of year | $ | 3,943 | $ | 4,492 | $ | 1,674 | $ | 1,866 | ||||||||||||||||||||||||
Amendments | — | 3 | — | — | ||||||||||||||||||||||||||||
Service cost | 12 | 20 | 5 | 7 | ||||||||||||||||||||||||||||
Interest on obligations | 158 | 143 | 68 | 62 | ||||||||||||||||||||||||||||
Actuarial loss (gain) | 176 | (334 | ) | 319 | (142 | ) | ||||||||||||||||||||||||||
Curtailments | (2 | ) | (33 | ) | — | — | ||||||||||||||||||||||||||
Contractual termination benefits | 23 | — | 2 | — | ||||||||||||||||||||||||||||
Currency translation | 49 | (15 | ) | — | — | |||||||||||||||||||||||||||
Plan participants' contributions | — | — | 40 | 28 | ||||||||||||||||||||||||||||
Subsidy receipts | — | — | 34 | 41 | ||||||||||||||||||||||||||||
Benefits paid | (318 | ) | (333 | ) | (185 | ) | (188 | ) | ||||||||||||||||||||||||
Benefit obligations at end of year | $ | 4,041 | $ | 3,943 | $ | 1,957 | $ | 1,674 | ||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 2,519 | $ | 2,411 | $ | 447 | $ | 437 | ||||||||||||||||||||||||
Actual return on plan assets | 206 | 284 | 26 | 66 | ||||||||||||||||||||||||||||
Currency translation | 42 | (22 | ) | — | — | |||||||||||||||||||||||||||
Employer contributions | 164 | 165 | 2 | 3 | ||||||||||||||||||||||||||||
Benefits paid | (304 | ) | (319 | ) | (60 | ) | (59 | ) | ||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 2,627 | $ | 2,519 | $ | 415 | $ | 447 | ||||||||||||||||||||||||
Funded status at year end | $ | (1,414 | ) | $ | (1,424 | ) | $ | (1,542 | ) | $ | (1,227 | ) | ||||||||||||||||||||
Pension Benefits | Health and Life | |||||||||||||||||||||||||||||||
Insurance Benefits | ||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Amounts recognized in our Consolidated Balance Sheets consist of: | ||||||||||||||||||||||||||||||||
Current liability | $ | (15 | ) | $ | (14 | ) | $ | (79 | ) | $ | (73 | ) | ||||||||||||||||||||
Noncurrent liability | (1,399 | ) | (1,410 | ) | (1,463 | ) | (1,154 | ) | ||||||||||||||||||||||||
Net liability recognized | $ | (1,414 | ) | $ | (1,424 | ) | $ | (1,542 | ) | $ | (1,227 | ) | ||||||||||||||||||||
Amounts recognized in our accumulated other comprehensive loss consist of: | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 2,019 | $ | 1,947 | $ | 664 | $ | 354 | ||||||||||||||||||||||||
Net prior service cost (benefit) | 1 | 1 | (6 | ) | (10 | ) | ||||||||||||||||||||||||||
Net amount recognized | $ | 2,020 | $ | 1,948 | $ | 658 | $ | 344 | ||||||||||||||||||||||||
The accumulated benefit obligation for pension benefits, a measure that excludes the effect of prospective salary and wage increases, was $4 billion and $3.9 billion at October 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
The cumulative postretirement benefit adjustment included in the Consolidated Statement of Stockholders' Deficit at October 31, 2014 is net of $537 million of deferred taxes related to the Company's postretirement benefit plans. | ||||||||||||||||||||||||||||||||
Information for pension plans with accumulated benefit obligations in excess of plan assets were as follows: | ||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Projected benefit obligations | $ | 4,041 | $ | 3,943 | ||||||||||||||||||||||||||||
Accumulated benefit obligations | 4,021 | 3,933 | ||||||||||||||||||||||||||||||
Fair value of plan assets | 2,627 | 2,519 | ||||||||||||||||||||||||||||||
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. As of October 31, 2014, we have met all regulatory funding requirements. In 2014, we contributed $164 million to our pension plans to meet regulatory funding requirements. In August 2014, HATFA, including extension of pension funding interest rate relief, was signed into law. As a result, we lowered our funding expectations. We expect to contribute $148 million to our pension plans during 2015. | ||||||||||||||||||||||||||||||||
We primarily fund other post-employment benefit ("OPEB") obligations, such as retiree medical, in accordance with a 1993 settlement agreement (the "1993 Settlement Agreement"), which requires us to fund a portion of the plans' annual service cost to a retiree benefit trust (the "Base Trust"). The 1993 Settlement Agreement resolved a class action lawsuit originally filed in 1992 regarding the restructuring of the Company's then applicable retiree health care and life insurance benefits. In 2014, we contributed $2 million to our OPEB plans to meet legal funding requirements. We expect to contribute $2 million to our OPEB plans during 2015. | ||||||||||||||||||||||||||||||||
We have certain unfunded pension plans, under which we make payments directly to employees. Benefit payments of $14 million for both 2014 and 2013, are included within the amount of "Benefits paid" in the "Change in benefit obligation" section above, but are not included in the "Change in plan assets" section, because the payments are made directly by us and not by separate trusts that are used in the funding of our other pension plans. | ||||||||||||||||||||||||||||||||
We also have certain OPEB benefits that are paid from Company assets (instead of trust assets). Payments from Company assets, net of participant contributions and subsidy receipts, result in differences between benefits paid as presented under "Change in benefit obligation" and "Change in plan assets" of $51 million and $60 million for 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Expense and Other Amounts Recognized in Other Comprehensive Loss (Income) | ||||||||||||||||||||||||||||||||
The components of our postretirement benefits expense included in our Consolidated Statements of Operations for the years ended October 31 consist of the following: | ||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Pension expense | $ | 106 | $ | 116 | $ | 122 | ||||||||||||||||||||||||||
Health and life insurance expense | 54 | 61 | 81 | |||||||||||||||||||||||||||||
Total postretirement benefits expense | $ | 160 | $ | 177 | $ | 203 | ||||||||||||||||||||||||||
Components of Net Periodic Benefit Expense | ||||||||||||||||||||||||||||||||
Net postretirement benefits expense included in our Consolidated Statements of Operations, and other amounts recognized in our Consolidated Statements of Stockholders' Deficit, for the years ended October 31 is comprised of the following: | ||||||||||||||||||||||||||||||||
Pension Benefits | Health and Life | |||||||||||||||||||||||||||||||
Insurance Benefits | ||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Service cost for benefits earned during the period | $ | 12 | $ | 20 | 17 | $ | 5 | $ | 7 | $ | 7 | |||||||||||||||||||||
Interest on obligation | 158 | 143 | 169 | 68 | 62 | 83 | ||||||||||||||||||||||||||
Amortization of cumulative loss | 94 | 128 | 112 | 16 | 29 | 38 | ||||||||||||||||||||||||||
Amortization of prior service cost (benefit) | — | 1 | 1 | (4 | ) | (4 | ) | (5 | ) | |||||||||||||||||||||||
Curtailments | — | 4 | 5 | — | — | (3 | ) | |||||||||||||||||||||||||
Contractual termination benefits | 23 | — | 2 | 2 | — | (2 | ) | |||||||||||||||||||||||||
Retrospective payments to retirees | — | — | — | — | — | (2 | ) | |||||||||||||||||||||||||
Premiums on pension insurance | 12 | 9 | 8 | — | — | — | ||||||||||||||||||||||||||
Expected return on assets | (193 | ) | (189 | ) | $ | (192 | ) | (33 | ) | (33 | ) | (35 | ) | |||||||||||||||||||
Net postretirement benefits expense | $ | 106 | $ | 116 | $ | 122 | $ | 54 | $ | 61 | $ | 81 | ||||||||||||||||||||
Other Changes in plan assets and benefit obligations recognized in other comprehensive loss (income) | ||||||||||||||||||||||||||||||||
Actuarial net loss (gain) | $ | 164 | $ | (422 | ) | $ | 469 | $ | 326 | $ | (175 | ) | $ | (58 | ) | |||||||||||||||||
Amortization of cumulative loss | (94 | ) | (128 | ) | (112 | ) | (16 | ) | (29 | ) | (38 | ) | ||||||||||||||||||||
Prior service cost (benefit) | — | (1 | ) | (1 | ) | — | — | — | ||||||||||||||||||||||||
Amortization of prior service benefit (cost) | — | (1 | ) | (1 | ) | 4 | 4 | 5 | ||||||||||||||||||||||||
Curtailments | — | (33 | ) | — | — | — | 3 | |||||||||||||||||||||||||
Currency translation | 1 | — | 2 | — | — | — | ||||||||||||||||||||||||||
Total recognized in other comprehensive loss (income) | $ | 71 | $ | (585 | ) | $ | 357 | $ | 314 | $ | (200 | ) | $ | (88 | ) | |||||||||||||||||
Total net postretirement benefits expense and other comprehensive loss (income) | $ | 177 | $ | (469 | ) | $ | 479 | $ | 368 | $ | (139 | ) | $ | (7 | ) | |||||||||||||||||
In the fourth quarter of 2014, the Company recognized contractual termination charges of $11 million related to our Indianapolis, Indiana foundry facility and our Waukesha, Wisconsin foundry operations. See Note 3, Restructurings and Impairments for further discussion. | ||||||||||||||||||||||||||||||||
Based on a ruling received from the Financial Services Tribunal in Ontario, Canada, in the third quarter of 2014, the Company recognized contractual termination charges of $14 million related to the 2011 closure of its Chatham, Ontario plant. The Company has appealed this ruling. These charges were in addition to the previous curtailment and contractual termination charges recognized in the third quarter of 2011. There was also a remeasurement of the pension plan for hourly employees during the third quarter of 2014. The discount rate used to measure the pension benefit obligation was 3.8% at remeasurement, compared to 4.1% at October 31, 2013. As a result of the plan remeasurement, net actuarial gains of $10 million were recognized as a component of Accumulated other comprehensive loss in the third quarter of 2014. See Note 3, Restructurings and Impairments for further discussion. | ||||||||||||||||||||||||||||||||
In the fourth quarter of 2013, the Company made the decision to freeze all benefit accruals for the non-represented participants in the pension plans effective December 31, 2013. The plan freeze resulted in curtailment charges of $4 million and a reduction in the pension obligation of $33 million which was recognized as a component of AOCL. During 2012, the Company recognized a charge of $7 million due to plan curtailments and contractual termination charges related to the VSP and additional salaried employee terminations. See Note 3, Restructurings and Impairments, for more information on cost-reduction and restructuring activities. | ||||||||||||||||||||||||||||||||
The Early Retiree Reinsurance Program ("ERRP") was created under the Patient Protection and Affordable Care Act ("PPACA") to provide temporary financial assistance to health plan sponsors who provide retirement health coverage to pre-Medicare retirees. Under the terms of ERRP, no amounts were collected and deposited into the retiree benefit trust in 2014 and 2013, compared to $3 million in 2012. The amounts collected in 2012 were deposited into the retiree benefit trust and accounted for as part of the actual return on assets. | ||||||||||||||||||||||||||||||||
The estimated amounts for the defined benefit pension plans and the other postretirement benefit plans that will be amortized from AOCL into net periodic benefit expense over the next fiscal year are as follows: | ||||||||||||||||||||||||||||||||
(in millions) | Pension Benefits | Health and Life Insurance Benefits | ||||||||||||||||||||||||||||||
Amortization of prior service cost (benefit) | $ | — | $ | (4 | ) | |||||||||||||||||||||||||||
Amortization of cumulative losses | 98 | 39 | ||||||||||||||||||||||||||||||
Cumulative unrecognized actuarial gains and losses for postretirement benefit plans, where substantially all of the plan participants are inactive, are amortized over the average remaining life expectancy of the inactive plan participants. Otherwise, cumulative gains and losses are amortized over the average remaining service period of active employees. | ||||||||||||||||||||||||||||||||
Plan amendments unrelated to negotiated labor contracts are amortized over the average remaining service period of active employees or the remaining life expectancy of the inactive participants based upon the nature of the amendment and the participants impacted. Plan amendments arising from negotiated labor contracts are amortized over the length of the contract. | ||||||||||||||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||||||||||
The weighted average rate assumptions used in determining benefit obligations for the years ended October 31, 2014 and 2013 were: | ||||||||||||||||||||||||||||||||
Pension Benefits | Health and Life Insurance Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Discount rate used to determine present value of benefit obligation at end of year | 3.7 | % | 4.1 | % | 3.7 | % | 4.1 | % | ||||||||||||||||||||||||
Expected rate of increase in future compensation levels | 3.5 | % | 3.5 | % | — | — | ||||||||||||||||||||||||||
The weighted average rate assumptions used in determining net postretirement benefits expense for 2014, 2013, and 2012 were: | ||||||||||||||||||||||||||||||||
Pension Benefits | Health and Life Insurance Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Discount rate(A) | 4.1 | % | 3.2 | % | 4.1 | % | 4.1 | % | 3.4 | % | 4.2 | % | ||||||||||||||||||||
Expected long-term rate of return on plan assets | 7.8 | % | 8 | % | 8.3 | % | 7.8 | % | 8 | % | 8.3 | % | ||||||||||||||||||||
Expected rate of increase in future compensation levels | 3.5 | % | 3.5 | % | 3.5 | % | — | — | — | |||||||||||||||||||||||
________________________ | ||||||||||||||||||||||||||||||||
(A) | In 2012 for pension benefits, the weighted average discount rate used to compute the expense for the period of November 1, 2011 through July 31, 2012 was 4.2%. Due to plan remeasurements at July 31, 2012 at a rate of 3.3%, the weighted average discount rate for the full fiscal year 2012 was 4.1%. | |||||||||||||||||||||||||||||||
The actuarial assumptions used to compute the net postretirement benefits expense (income) are based upon information available as of the beginning of the year, specifically market interest rates, past experience, and our best estimate of future economic conditions. Changes in these assumptions may impact the measurement of future benefit costs and obligations. In computing future costs and obligations, we must make assumptions about such things as employee mortality and turnover, expected salary and wage increases, discount rates, expected returns on plan assets, and expected future cost increases. Three of these items have a significant impact on the level of expense recognized: (i) discount rates, (ii) expected rates of return on plan assets, and (iii) healthcare cost trend rates. | ||||||||||||||||||||||||||||||||
We determine the discount rate for our U.S. pension and OPEB obligations by matching anticipated future benefit payments for the plans to the Citigroup yield curve to establish a weighted average discount rate for each plan. | ||||||||||||||||||||||||||||||||
We determine our assumption as to expected return on plan assets by evaluating historical performance, investment community forecasts, and current market conditions. We consider the current asset mix as well as our targeted asset mix when establishing the expected return on plan assets. | ||||||||||||||||||||||||||||||||
Health care cost trend rates have been established through a review of actual recent cost trends and projected future trends. Our retiree medical and drug cost trend assumptions are our best estimate of expected inflationary increases to healthcare costs. Due to the number of former employees and their beneficiaries included in our retiree population (approximately 37,000), the trend assumptions are based upon both our specific trends and nationally expected trends. | ||||||||||||||||||||||||||||||||
The weighted average rate of increase in the per capita cost of postretirement health care benefits provided through U.S. plans representing 91% of our other postretirement benefit obligation, is projected to be 7.80% in 2015 and was estimated as 8.25% for 2014. Our projections assume that the rate will decrease to 5% by the year 2020 and remain at that level each year thereafter. | ||||||||||||||||||||||||||||||||
The effect of changing the health care cost trend rate by one-percentage point for each future year is as follows: | ||||||||||||||||||||||||||||||||
(in millions) | One-Percentage | One-Percentage | ||||||||||||||||||||||||||||||
Point Increase | Point Decrease | |||||||||||||||||||||||||||||||
Effect on total of service and interest cost components | $ | 10 | $ | (9 | ) | |||||||||||||||||||||||||||
Effect on postretirement benefit obligation | 239 | (207 | ) | |||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||||||
The accounting guidance on fair value measurements specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques (Level 1, 2 and 3). See Note 13, Fair Value Measurements, for a discussion of the fair value hierarchy. | ||||||||||||||||||||||||||||||||
The following describes the methods and significant assumptions used to estimate fair value of the investments: | ||||||||||||||||||||||||||||||||
• | Cash and short-term investments—Valued at cost plus earnings from investments for the period, which approximates fair market value due to the short-term duration. Cash equivalents are valued at net asset value as provided by the administrator of the fund. | |||||||||||||||||||||||||||||||
• | U.S. Government and agency securities—Valued at the closing price reported on the active market on which the security is traded or valued by the trustee at year-end using various pricing services of financial institutions, including Interactive Data Corporation, Standard & Poor's and Telekurs. | |||||||||||||||||||||||||||||||
• | Corporate debt securities—Valued by the trustee at year-end using various pricing services of financial institutions, including Interactive Data Corporation, Standard & Poor's and Telekurs. | |||||||||||||||||||||||||||||||
• | Common and preferred stock—Valued at the closing price reported on the active market on which the security is traded. | |||||||||||||||||||||||||||||||
• | Collective trusts, Partnerships/joint venture interests and Hedge funds—Valued at the net asset value provided by the administrator of the fund. The net asset value is based on the value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. | |||||||||||||||||||||||||||||||
• | Derivatives -Valued monthly for the trustee using various pricing services of financial institutions, including Interactive Data Corporation, Standard & Poor’s and Telekurs. Valued monthly by the trustee using various providers of derivatives pricing, most notably Numerix, Markit and Super Derivatives. | |||||||||||||||||||||||||||||||
The fair value of the pension and other postretirement benefit plan assets by category is summarized below: | ||||||||||||||||||||||||||||||||
Pension Assets | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 112 | $ | — | $ | — | $ | 112 | $ | 107 | $ | — | $ | — | $ | 107 | ||||||||||||||||
Equity | ||||||||||||||||||||||||||||||||
U.S. Large Cap | 227 | — | — | 227 | 207 | — | — | 207 | ||||||||||||||||||||||||
U.S. Small-Mid Cap | 313 | — | — | 313 | 350 | — | — | 350 | ||||||||||||||||||||||||
Canadian | 44 | — | — | 44 | 93 | — | — | 93 | ||||||||||||||||||||||||
International | 244 | — | — | 244 | 254 | — | — | 254 | ||||||||||||||||||||||||
Emerging Markets | 108 | — | — | 108 | 105 | — | — | 105 | ||||||||||||||||||||||||
Equity derivative | — | — | (106 | ) | (106 | ) | — | — | (72 | ) | (72 | ) | ||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||||||||||
Corporate Bonds | — | 200 | — | 200 | — | 147 | — | 147 | ||||||||||||||||||||||||
Government Bonds | — | 630 | — | 630 | — | 494 | — | 494 | ||||||||||||||||||||||||
Asset Backed Securities | — | 8 | — | 8 | — | 8 | — | 8 | ||||||||||||||||||||||||
Fixed income derivative | — | — | 1 | 1 | — | — | (13 | ) | (13 | ) | ||||||||||||||||||||||
Collective Trusts and Other | ||||||||||||||||||||||||||||||||
Common and Preferred Stock | — | 531 | — | 531 | — | 583 | — | 583 | ||||||||||||||||||||||||
Commodities | — | 58 | — | 58 | — | 68 | — | 68 | ||||||||||||||||||||||||
Hedge Funds | — | — | 106 | 106 | — | — | 101 | 101 | ||||||||||||||||||||||||
Private Equity | — | — | 94 | 94 | — | 103 | 103 | |||||||||||||||||||||||||
Exchange Traded Funds | 9 | — | — | 9 | 6 | — | — | 6 | ||||||||||||||||||||||||
Mutual Funds | 29 | — | — | 29 | 32 | — | — | 32 | ||||||||||||||||||||||||
Real Estate | — | — | 1 | 1 | — | — | 1 | 1 | ||||||||||||||||||||||||
Total(A) | $ | 1,086 | $ | 1,427 | $ | 96 | $ | 2,609 | $ | 1,154 | $ | 1,300 | $ | 120 | $ | 2,574 | ||||||||||||||||
___________________ | ||||||||||||||||||||||||||||||||
(A) | For October 31, 2014 and 2013, the totals exclude $9 million and $8 million of receivables, respectively, which are included in the change in plan assets table. In addition, the table above includes the fair value of Canadian pension assets translated at the exchange rates as of October 31, 2014 and 2013, respectively, while the change in plan asset table includes the fair value of Canadian pension assets translated at historical foreign currency rates. | |||||||||||||||||||||||||||||||
The table below presents the changes for those financial instruments classified within Level 3 of the valuation hierarchy for pension assets for the years ended October 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
(in millions) | Hedge Funds | Private Equity | Real Estate | Fixed Income Derivative | Equity Derivatives | |||||||||||||||||||||||||||
Balance at November 1, 2012 | $ | 92 | $ | 92 | $ | 1 | $ | 19 | $ | 4 | ||||||||||||||||||||||
Unrealized gains (losses) | 8 | 18 | — | (32 | ) | (90 | ) | |||||||||||||||||||||||||
Realized gains | 1 | — | — | 4 | 10 | |||||||||||||||||||||||||||
Purchases, issuances, and settlements | — | (7 | ) | — | (4 | ) | 4 | |||||||||||||||||||||||||
Balance at October 31, 2013 | $ | 101 | $ | 103 | $ | 1 | $ | (13 | ) | $ | (72 | ) | ||||||||||||||||||||
Unrealized gains (losses) | 5 | 10 | — | 14 | (43 | ) | ||||||||||||||||||||||||||
Realized gains | — | 15 | — | — | — | |||||||||||||||||||||||||||
Purchases, issuances, and settlements | — | (34 | ) | — | — | 9 | ||||||||||||||||||||||||||
Balance at October 31, 2014 | $ | 106 | $ | 94 | $ | 1 | $ | 1 | $ | (106 | ) | |||||||||||||||||||||
Other Postretirement Benefits | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 16 | $ | — | $ | — | $ | 16 | $ | 32 | $ | — | $ | — | $ | 32 | ||||||||||||||||
Equity | ||||||||||||||||||||||||||||||||
U.S. Large Cap | 28 | — | — | 28 | 28 | — | — | 28 | ||||||||||||||||||||||||
U.S. Small-Mid Cap | 60 | — | — | 60 | 69 | — | — | 69 | ||||||||||||||||||||||||
International | 60 | — | — | 60 | 65 | — | — | 65 | ||||||||||||||||||||||||
Emerging Markets | 19 | — | — | 19 | 22 | — | — | 22 | ||||||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||||||||||
Corporate Bonds | — | 55 | — | 55 | — | 52 | — | 52 | ||||||||||||||||||||||||
Government Bonds | — | 49 | — | 49 | — | 43 | — | 43 | ||||||||||||||||||||||||
Asset Backed Securities | — | 3 | — | 3 | — | 4 | — | 4 | ||||||||||||||||||||||||
Collective Trusts and Other | ||||||||||||||||||||||||||||||||
Common Stock | — | 69 | — | 69 | — | 71 | — | 71 | ||||||||||||||||||||||||
Commodities | — | 10 | — | 10 | — | 13 | — | 13 | ||||||||||||||||||||||||
Hedge Funds | — | — | 22 | 22 | — | — | 21 | 21 | ||||||||||||||||||||||||
Private Equity | — | — | 23 | 23 | — | — | 26 | 26 | ||||||||||||||||||||||||
Total(A) | $ | 183 | $ | 186 | $ | 45 | $ | 414 | $ | 216 | $ | 183 | $ | 47 | $ | 446 | ||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||
(A) | For both October 31, 2014 and 2013, the totals exclude $1 million of receivables, which are included in the change in plan asset table. | |||||||||||||||||||||||||||||||
The table below presents the changes for those financial instruments classified within Level 3 of the valuation hierarchy for other postretirement benefit assets for the years ended October 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
(in millions) | Hedge Funds | Private Equity | ||||||||||||||||||||||||||||||
Balance at November 1, 2012 | $ | 19 | $ | 23 | ||||||||||||||||||||||||||||
Unrealized gains | 2 | 5 | ||||||||||||||||||||||||||||||
Realized gains | — | — | ||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | — | (2 | ) | |||||||||||||||||||||||||||||
Balance at October 31, 2013 | $ | 21 | $ | 26 | ||||||||||||||||||||||||||||
Unrealized gains | 1 | 3 | ||||||||||||||||||||||||||||||
Realized gains | — | 4 | ||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | — | (10 | ) | |||||||||||||||||||||||||||||
Balance at October 31, 2014 | $ | 22 | $ | 23 | ||||||||||||||||||||||||||||
The investment strategy of the postretirement pension plans (the "Plans") is based on sound investment practices that emphasize long-term investment fundamentals. The objective of the strategy is to maximize long-term returns consistent with prudent levels of risk. In establishing the investment strategy of the Plans, the following factors were taken into account: (i) the time horizon available for investment, (ii) the nature of the Plan's cash flows and liabilities, and (iii) other factors that affect the Plan's risk tolerance. | ||||||||||||||||||||||||||||||||
The strategy is to manage the Plans to achieve fully funded status within the time horizon mandated under Pension Protection Act of 2006 after giving effect to the Preservation of Access to Care for Medicare Beneficiaries, Pension Relief Act of 2010, MAP-21, and HATFA with a prudent amount of risk. As part of that strategy, the Plans are invested in a diversified portfolio across a wide variety of asset classes. This includes areas such as large and small capitalization equities, international and emerging market equities, high quality fixed income, convertible bonds and alternative assets such as commodities, hedge fund of funds, and private equity funds. As a result of our diversification strategies, we believe we have minimized concentrations of risk within the investment portfolios. | ||||||||||||||||||||||||||||||||
In February 2012, the Plans entered into a three-year put spread collar hedge covering a majority of the Plans' assets. The hedge will provide protection against large equity losses while allowing participation in equity gains up to a limit per annum over the three-year term of the hedge. In addition to the asset hedge, in February 2012, the Plans entered into a three-year zero cost swaption collar. The hedge is designed to protect the liabilities of the Plans against lower interest rates, while allowing participation in the positive benefits that would result if interest rates rise up to a predefined level over the life of the hedge. Given the improvements in the equity markets and changes to the shape of the yield curve, the hedge positions were restructured in March 2013 by monetizing gains generated by the swaption strategy and using the proceeds to increase the equity protection level to reflect the increase in equity values since the inception of the hedge in February 2012. The result was that we were able to maintain the equity protection and swaption collar strategies and receive more attractive equity downside protection with no impact on collateral requirements. In May 2014, as participation in equity gains beyond the original 10% per annum became restricted by the hedging strategy, the current hedge ratio was reduced from 100% to 90%. The strategy was implemented by purchasing additional upside exposure through shorter dated, low transaction cost at-the-money S&P 500 Index call options with a notional value of $183 million. | ||||||||||||||||||||||||||||||||
In line with the Plans' return objectives and risk parameters, target asset allocations, which were established following a 2009 asset liability study, are approximately 55% equity investments, 30% fixed income investments, 10% alternative investments (commodities, hedge funds and private equity), and 5% cash. | ||||||||||||||||||||||||||||||||
All assets are managed by external investment managers. Each investment manager is expected to prudently manage the assets in a manner consistent with the investment objectives, guidelines, and constraints outlined in their Investment Management Agreements and the Investment Policy Statement. Managers are not permitted to invest outside of the asset class mandate (e.g., equity, fixed income, alternatives) or strategy for which they are appointed. In July 2013, a portion of the equity portfolio was allocated to index funds. The areas indexed were the large cap growth and large cap value strategies. Approximately 15% of the Plans' assets were indexed. | ||||||||||||||||||||||||||||||||
Expected Future Benefit Payments | ||||||||||||||||||||||||||||||||
The expected future benefit payments for the years ending October 31, 2015 through 2019 and the five years ending October 31, 2024 are estimated as follows: | ||||||||||||||||||||||||||||||||
(in millions) | Pension Benefit Payments | Other Postretirement Benefit Payments(A) | ||||||||||||||||||||||||||||||
2015 | $ | 312 | $ | 143 | ||||||||||||||||||||||||||||
2016 | 304 | 132 | ||||||||||||||||||||||||||||||
2017 | 296 | 137 | ||||||||||||||||||||||||||||||
2018 | 288 | 130 | ||||||||||||||||||||||||||||||
2019 | 280 | 127 | ||||||||||||||||||||||||||||||
2020 through 2024 | 1,278 | 600 | ||||||||||||||||||||||||||||||
________________________ | ||||||||||||||||||||||||||||||||
(A) | Payments are net of expected participant contributions and expected federal subsidy receipts. | |||||||||||||||||||||||||||||||
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 $27 million in both 2014 and 2013, and $41 million in 2012. | ||||||||||||||||||||||||||||||||
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 15, Commitments and Contingencies, for a discussion of pending litigation regarding the Supplemental Benefit Profit Sharing Plan. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Oct. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | The domestic and foreign components of Loss from continuing operations before income taxes consist of the following for the years ended October 31: | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Domestic | $ | (398 | ) | $ | (1,045 | ) | $ | (893 | ) | |||
Foreign | (158 | ) | 71 | (218 | ) | |||||||
Loss from continuing operations before income taxes | $ | (556 | ) | $ | (974 | ) | $ | (1,111 | ) | |||
The components of Income tax benefit (expense) related to continuing operations consist of the following for the years ended October 31: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | — | $ | 4 | $ | (2 | ) | |||||
State and local | 7 | (10 | ) | (11 | ) | |||||||
Foreign | (48 | ) | (58 | ) | 4 | |||||||
Total current benefit (expense) | $ | (41 | ) | $ | (64 | ) | $ | (9 | ) | |||
Deferred: | ||||||||||||
Federal | 13 | 219 | (1,841 | ) | ||||||||
State and local | — | 2 | (137 | ) | ||||||||
Foreign | 2 | 14 | 207 | |||||||||
Total deferred benefit (expense) | $ | 15 | $ | 235 | $ | (1,771 | ) | |||||
Total income tax benefit (expense) | $ | (26 | ) | $ | 171 | $ | (1,780 | ) | ||||
A reconciliation of statutory federal income tax benefit (expense) to recorded Income tax benefit (expense) related to continuing operations is as follows for the years ended October 31: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Federal income tax benefit at the statutory rate of 35% | $ | 195 | $ | 341 | $ | 389 | ||||||
State income taxes, net of federal benefit | (4 | ) | (4 | ) | (6 | ) | ||||||
Credits and incentives | (5 | ) | — | 10 | ||||||||
Adjustments to valuation allowances | (234 | ) | (350 | ) | (2,207 | ) | ||||||
Foreign operations | (37 | ) | (8 | ) | (17 | ) | ||||||
Adjustments to uncertain tax positions | 15 | (16 | ) | 11 | ||||||||
Income tax related to equity components | 13 | 220 | — | |||||||||
Non-controlling interest adjustment | 14 | 19 | 17 | |||||||||
Other | 17 | (31 | ) | 23 | ||||||||
Recorded income tax benefit (expense) | $ | (26 | ) | $ | 171 | $ | (1,780 | ) | ||||
The tax effect of pretax income or loss from continuing operations generally should be determined by a computation that does not consider the tax effects of items that are not included in continuing operations. An exception to that incremental approach is applied when there is a loss from continuing operations and income in another category of earnings (for example, extraordinary items, discontinued operations, other comprehensive income, additional paid in capital, etc.). | ||||||||||||
In that situation, the tax provision is first allocated to the other categories of earnings. A related tax benefit is then recorded in continuing operations. This exception to the general rule applies even when a valuation allowance is in place at the beginning and end of the year. While intraperiod tax allocations do not change the overall tax provision, it may result in a gross-up of the individual components, thereby changing the amount of tax provision included in each category. | ||||||||||||
In the fourth quarter of 2013, the Company met the criteria necessary to apply the exception within the intraperiod tax allocation rules, since we incurred a loss from continuing operations and income was recognized in both Total other comprehensive income (loss) and Additional paid-in capital. As a result, the Company recorded an income tax benefit of $220 million in Income tax benefit (expense) related to continuing operations, and an offsetting tax expense of $212 million and $8 million in Total other comprehensive income (loss) and Additional paid-in capital, respectively. Similarly, in the second quarter of 2014, in accordance with the intraperiod tax allocation rules, the Company recorded an income tax benefit of $13 million in Income tax benefit (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 10, Debt. During 2012, the Company allocated the tax provision consistent with the intraperiod tax allocation rules, but did not meet the criteria necessary to apply the exception. | ||||||||||||
For the year ended October 31, 2014, the Company incurred additional losses in the U.S. and certain foreign jurisdictions and recognized income tax expense of $234 million for the increase in the valuation allowance on our deferred tax assets generated during the period. During the second quarter of 2014, we recorded an income tax expense of $29 million to establish the valuation allowance for Brazil deferred tax assets. In the fourth quarter of 2014, we recorded an offsetting benefit of $16 million to reflect a tax law change in Brazil that will allow utilization of a portion of the net operating loss carryforwards to satisfy other taxes. During the year ended October 31, 2013, we recognized income tax expense of $350 million for the increase in the valuation allowance on our deferred tax assets generated during the period. During the year ended October 31, 2012, we recognized income tax expense of $2.2 billion for the increase in the valuation allowance, which included the establishment of a valuation allowance on our U.S. deferred tax assets partially offset by the release of a significant portion of our valuation allowance on our Canadian deferred tax assets. | ||||||||||||
Undistributed earnings of foreign subsidiaries were $469 million at October 31, 2014. Domestic income taxes of $6 million were recorded for unremitted earnings from our Mexico subsidiaries in the fourth quarter of 2014. Domestic income taxes have not been provided on the remaining undistributed earnings because they are considered to be permanently invested in foreign subsidiaries. It is not practicable to estimate the amount of unrecognized deferred tax liabilities, if any, for these undistributed foreign earnings. | ||||||||||||
The components of the deferred tax asset (liability) at October 31 are as follows: | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Deferred tax assets attributable to: | ||||||||||||
Employee benefits liabilities | $ | 1,210 | $ | 1,107 | ||||||||
Net operating loss ("NOL") carryforwards | 1,213 | 840 | ||||||||||
Product liability and warranty accruals | 494 | 546 | ||||||||||
Research and development | 9 | 26 | ||||||||||
Tax credit carryforwards | 256 | 259 | ||||||||||
Other | 194 | 271 | ||||||||||
Gross deferred tax assets | 3,376 | 3,049 | ||||||||||
Less: Valuation allowances | 3,174 | 2,773 | ||||||||||
Net deferred tax assets | $ | 202 | $ | 276 | ||||||||
Deferred tax liabilities attributable to: | ||||||||||||
Goodwill and intangibles assets | $ | (6 | ) | $ | (72 | ) | ||||||
Other | (10 | ) | (5 | ) | ||||||||
Total deferred tax liabilities | $ | (16 | ) | $ | (77 | ) | ||||||
At October 31, 2014, deferred tax assets attributable to NOL carryforwards include $870 million attributable to U.S. federal NOL carryforwards, $144 million attributable to state NOL carryforwards, and $199 million attributable to foreign NOL carryforwards. If not used to reduce future taxable income, U.S. federal NOLs are scheduled to expire beginning in 2025. State NOLs can be carried forward for initial periods of 5 to 20 years, and are scheduled to expire in 2015 to 2034. Approximately one half of our foreign net operating losses will expire, beginning in 2028, while the balance has no expiration date. | ||||||||||||
There are $62 million of NOL carryforwards relating to stock option tax benefits which are deferred until utilization of our net operating losses. These tax benefits will be allocated to Additional paid-in capital when recognized. The majority of our tax credits can be carried forward for initial periods of 20 years, and are scheduled to expire in 2015 to 2034. Alternative minimum tax credits can be carried forward indefinitely. | ||||||||||||
A valuation allowance is required to be established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized. The guidance on accounting for income taxes provides important factors in determining whether a deferred tax asset will be realized, including whether there has been sufficient taxable income in recent years and whether sufficient income can reasonably be expected in future years in order to utilize the deferred tax asset. | ||||||||||||
For the year ended October 31, 2014, 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. In the fourth quarter of 2012 our evaluation resulted in the determination that a significant additional valuation allowance on our U.S. deferred tax assets was required, due in part to our current domestic performance, which include continued fourth quarter deterioration and cumulative losses as of October 31, 2012, risks associated with our strategy for meeting 2010 Environmental Protection Agency ("EPA") emissions standards, and significant fourth quarter warranty charges. The Company incurred additional domestic losses from continuing operations for the years ended October 31, 2013 and 2014, resulting in objective negative evidence of cumulative losses that outweighs the subjective positive evidence. The qualitative and quantitative analysis of current and expected domestic earnings, industry volumes, tax planning strategies, and general business risks resulted in a more likely than not conclusion of not being able to realize a significant portion of our deferred tax assets for the year ended October 31, 2014. | ||||||||||||
In the second quarter of 2012, our evaluation resulted in the determination that a significant portion of our valuation allowance on our Canadian deferred tax assets could be released. The qualitative and quantitative analysis of current and expected earnings, industry volumes, tax planning strategies, and general business risks resulted in a more likely than not conclusion of being able to realize a significant portion of our Canadian deferred tax assets. As a result of our analysis, we recognized an income tax benefit of $189 million from the release of valuation allowances. | ||||||||||||
We continue to maintain valuation allowances on certain other foreign deferred tax assets that we believe, on a more-likely-than-not basis, will not be realized based on current forecasted results. For all remaining deferred tax assets, while we believe that it is more likely than not that they will be realized, we believe that it is reasonably possible that additional deferred tax asset valuation allowances could be required in the next twelve months. | ||||||||||||
The total deferred tax asset valuation allowances were $3.2 billion and $2.8 billion at October 31, 2014 and 2013, respectively. In the event we released all of our valuation allowances, almost all would impact income taxes as a benefit in our Consolidated Statements of Operations. | ||||||||||||
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 October 31, 2014 and 2013, the amount of liability for uncertain tax positions was $47 million and $88 million, respectively. The liability at October 31, 2014 of $47 million has a recorded offsetting tax benefit associated with the correlative effects of various issues of $12 million. If the unrecognized tax benefits are recognized, all would impact our effective tax rate. However, to the extent we continue to maintain a full valuation allowance against certain deferred tax assets, the effect may be in the form of an increase in the deferred tax asset related to our net operating loss carryforward, which would be offset by a full valuation allowance. | ||||||||||||
Changes in the liability for uncertain tax positions during the year ended October 31, 2014 are summarized as follows: | ||||||||||||
(in millions) | 2014 | |||||||||||
Liability for uncertain tax positions at November 1 | $ | 88 | ||||||||||
Increase as a result of positions taken in prior periods | 1 | |||||||||||
Decrease as a result of positions taken in the current period | (7 | ) | ||||||||||
Decrease as a result of foreign currency translation adjustments | (2 | ) | ||||||||||
Settlements | (32 | ) | ||||||||||
Lapse of statute of limitations | (1 | ) | ||||||||||
Liability for uncertain tax positions at October 31 | $ | 47 | ||||||||||
We recognize interest and penalties related to uncertain tax positions as part of Income tax benefit (expense). Total interest and penalties related to our uncertain tax positions resulted in an income tax benefit of $4 million, income tax expense of $6 million, and an income tax benefit of $11 million for the years ended October 31, 2014, 2013, and 2012 respectively. The total interest and penalties accrued were $8 million and $12 million for the years ended October 31, 2014 and 2013 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. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||||||||||
Oct. 31, 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 14, 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 15, Commitments and Contingencies. | ||||||||||||||||||||||||||||||||
The following table presents the financial instruments measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||
October 31, 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 | $ | 256 | $ | — | $ | — | $ | 256 | $ | 396 | $ | — | $ | — | $ | 396 | ||||||||||||||||
Other | 349 | — | — | 349 | 434 | — | — | 434 | ||||||||||||||||||||||||
Derivative financial instruments: | ||||||||||||||||||||||||||||||||
Foreign currency contracts(A) | — | — | — | — | — | 4 | — | 4 | ||||||||||||||||||||||||
Interest rate caps(B) | — | 1 | — | 1 | — | 1 | — | 1 | ||||||||||||||||||||||||
Total assets | $ | 605 | $ | 1 | $ | — | $ | 606 | $ | 830 | $ | 5 | $ | — | $ | 835 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative financial instruments: | ||||||||||||||||||||||||||||||||
Commodity forward contracts(C) | $ | — | $ | 2 | $ | — | $ | 2 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Guarantees | — | — | 8 | 8 | — | — | 6 | 6 | ||||||||||||||||||||||||
Total liabilities | $ | — | $ | 2 | $ | 8 | $ | 10 | $ | — | $ | — | $ | 6 | $ | 6 | ||||||||||||||||
_________________________ | ||||||||||||||||||||||||||||||||
(A) | The asset value of foreign currency contracts are included in other current assets for the year ended October 31, 2013 in the accompanying Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||
(B) | The asset value of interest rate caps are included in other noncurrent assets for the years ended October 31, 2014 and 2013 in the accompanying Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||
(C) | The asset value of commodity forward contracts are included in other current liabilities for the year ended October 31, 2014 in the accompanying Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||
The following table presents the changes for those financial instruments classified within Level 3 of the valuation hierarchy: | ||||||||||||||||||||||||||||||||
(in millions) | 31-Oct-14 | 31-Oct-13 | ||||||||||||||||||||||||||||||
Guarantees, at beginning of period | $ | (6 | ) | $ | (7 | ) | ||||||||||||||||||||||||||
Transfers out of Level 3 | — | — | ||||||||||||||||||||||||||||||
Issuances | (2 | ) | — | |||||||||||||||||||||||||||||
Settlements | — | 1 | ||||||||||||||||||||||||||||||
Guarantees, at end of period | $ | (8 | ) | $ | (6 | ) | ||||||||||||||||||||||||||
Change in unrealized gains on assets and liabilities still held | $ | — | $ | — | ||||||||||||||||||||||||||||
The following table presents the financial instruments measured at fair value on a nonrecurring basis: | ||||||||||||||||||||||||||||||||
(in millions) | October 31, 2014 | October 31, 2013 | ||||||||||||||||||||||||||||||
Level 2 financial instruments | ||||||||||||||||||||||||||||||||
Carrying value of impaired finance receivables (A) | $ | 20 | $ | 15 | ||||||||||||||||||||||||||||
Specific loss reserve | (6 | ) | (6 | ) | ||||||||||||||||||||||||||||
Fair value | $ | 14 | $ | 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, a trademark. The Company's Brazilian engine reporting unit's goodwill was determined to be fully impaired and resulted in a non-cash charge of $142 million. In addition, the related trademark, with a carrying value of $43 million was determined to be impaired and a non-cash charge of $7 million was recognized. The impairment charges were included in Asset impairment charges in the Company's Consolidated Statements of Operations. We utilized the income approach to determine the fair value of these Level 3 assets. For more information see Note 8, Goodwill and Other Intangible Assets, net. | ||||||||||||||||||||||||||||||||
In addition, in 2014, the North America Truck segment recorded asset impairment charges of $33 million, which were primarily related to potential sales of assets requiring assessment of impairment for certain intangible and long-lived assets, reflecting our ongoing evaluation of our portfolio of assets to validate their strategic and financial fit. These charges were 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 and Level 3 assets. | ||||||||||||||||||||||||||||||||
During the year ended October 31, 2013, certain impaired property and equipment and intangible assets with a carrying amount of $25 million were written down to their fair value of $5 million resulting in an impairment charge of $20 million, which was included in Asset impairment charges. We utilized the market and cost approach to determine the fair value of these Level 3 assets. | ||||||||||||||||||||||||||||||||
For the purpose of impairment evaluation during the year ended October 31, 2013, the Company measured the fair values of certain long-lived assets, including goodwill and intangible assets. In the fourth quarter of 2013, the Company recorded a non-cash impairment charge for the entire North America truck reporting unit's goodwill balance of $77 million. The impairment charges were included in Asset impairment charges. We utilized the income approach to determine the fair value of these Level 3 assets. In the second quarter of 2013, our North America Truck segment recorded a non-cash charge of $4 million to reflect impairment of goodwill related to the divestiture of Monaco. The impairment charges were included in the Income (loss) from discontinued operations, net of tax. For more information see Note 8, Goodwill and Other Intangible Assets, net. | ||||||||||||||||||||||||||||||||
In addition to the methods and assumptions we use for the financial instruments recorded at fair value as discussed above, we use the following methods and assumptions to estimate the fair value for our other financial instruments that are not marked to market on a recurring basis. The carrying amounts of Cash and cash equivalents, Restricted cash, and Accounts payable approximate fair values because of the short-term maturity and highly liquid nature of these instruments. Finance receivables generally consist of retail and wholesale accounts and retail and wholesale notes. The carrying amounts of Trade and other receivables and retail and wholesale accounts approximate fair values as a result of the short-term nature of the receivables. The carrying amounts of wholesale notes approximate fair values as a result of the short-term nature of the wholesale notes and their variable interest rate terms. The fair values of these financial instruments are classified as Level 1. Due to the nature of the aforementioned financial instruments, they have been excluded from the fair value amounts presented in the table below. | ||||||||||||||||||||||||||||||||
The fair values of our retail notes are estimated by discounting expected cash flows at estimated current market rates. The fair values of our retail notes are classified as Level 3 financial instruments. | ||||||||||||||||||||||||||||||||
The fair values of our debt instruments classified as Level 1 were determined using quoted market prices. The 6.5% Tax Exempt Bonds 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 October 31, 2014 | ||||||||||||||||||||||||||||||||
Estimated Fair Value | Carrying Value | |||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Retail notes | $ | — | $ | — | $ | 279 | $ | 279 | $ | 275 | ||||||||||||||||||||||
Notes receivable | — | — | 7 | 7 | 8 | |||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||||||||
Manufacturing operations | ||||||||||||||||||||||||||||||||
Senior Secured Term Loan Credit Facility, as Amended, due 2017 | — | — | 704 | 704 | 694 | |||||||||||||||||||||||||||
8.25% Senior Notes, due 2021 | 1,285 | — | — | 1,285 | 1,180 | |||||||||||||||||||||||||||
4.50% Senior Subordinated Convertible Notes, due 2018(A) | — | — | 196 | 196 | 181 | |||||||||||||||||||||||||||
4.75% Senior Subordinated Convertible Notes, due 2019(A) | — | — | 413 | 413 | 371 | |||||||||||||||||||||||||||
Debt of majority-owned dealerships | — | — | 30 | 30 | 30 | |||||||||||||||||||||||||||
Financing arrangements | — | — | 22 | 22 | 48 | |||||||||||||||||||||||||||
Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 | — | 232 | — | 232 | 225 | |||||||||||||||||||||||||||
Promissory Note | — | — | 10 | 10 | 10 | |||||||||||||||||||||||||||
Financed lease obligations | — | — | 184 | 184 | 184 | |||||||||||||||||||||||||||
Other | — | — | 28 | 28 | 29 | |||||||||||||||||||||||||||
Financial Services operations | ||||||||||||||||||||||||||||||||
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019 | — | — | 911 | 911 | 914 | |||||||||||||||||||||||||||
Bank revolvers, at fixed and variable rates, due dates from 2014 through 2020 | — | — | 1,214 | 1,214 | 1,242 | |||||||||||||||||||||||||||
Commercial paper, at variable rates, program matures in 2015 | 74 | — | — | 74 | 74 | |||||||||||||||||||||||||||
Borrowings secured by operating and finance leases, at various rates, due serially through 2018 | — | — | 36 | 36 | 36 | |||||||||||||||||||||||||||
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 Level 1 convertible notes which include the equity feature and internally developed valuation techniques such as discounted cash flow modeling for Level 3 convertible notes which include the equity feature. |
Financial_Instruments_and_Comm
Financial Instruments and Commodity Contracts | 12 Months Ended | |||||||||||||
Oct. 31, 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. In addition, 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 were intended to minimize share dilution associated with the 2014 Convertible Notes. In the fourth quarter of 2014, the remaining call options expired upon maturity of the 2014 Convertible Notes. As the 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 years ended October 31, 2014, 2013, and 2012. None of our derivatives qualified for hedge accounting treatment during the years ended October 31, 2014, 2013, and 2012. | ||||||||||||||
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 October 31, 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 October 31, 2014 and October 31, 2013, our exposure to the credit risk of others was $1 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 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 | Amount of Loss (Gain) Recognized | |||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||
Foreign currency contracts | Other expense (income), net | $ | (1 | ) | $ | (4 | ) | $ | 4 | |||||
Interest rate caps | Interest expense | 1 | — | — | ||||||||||
Cross currency swaps | Other expense (income), net | 3 | — | (1 | ) | |||||||||
Commodity forward contracts | Costs of products sold | 1 | 2 | 8 | ||||||||||
Total loss (gain) | $ | 4 | $ | (2 | ) | $ | 11 | |||||||
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 October 31, 2014 and October 31, 2013: | ||||||||||||||
(in millions) | Currency | Notional Amount | Maturity | |||||||||||
As of October 31, 2014 | ||||||||||||||
Forward exchange contract | EUR | € | 4 | Nov-14 | ||||||||||
Forward exchange contract | EUR | € | 4 | Dec-14 | ||||||||||
Forward exchange contract | EUR | € | 5 | Jan-15 | ||||||||||
Forward exchange contract | EUR | € | 9 | February 2015 - October 2015(A) | ||||||||||
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 | ||||||||||
_________________________ | ||||||||||||||
(A) | Forward exchange contracts of €1 expire on the last day of each month from February 2015 through October 2015. | |||||||||||||
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 October 31, 2014, we had outstanding diesel fuel contracts with aggregate notional values of $24 million and outstanding steel contracts with aggregate notional values of $23 million. The commodity forward contracts have maturity dates ranging from December 31, 2014 to October 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 October 31, 2014 and October 31, 2013, the notional amount of our outstanding cross currency swaps was $27 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 October 31, 2014 and October 31, 2013, the notional amount of our outstanding interest rate caps was $134 million and $78 million, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 31, 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 (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 for credit losses up to a maximum of the first 9.5% of the financed value of those lease contracts. The Company’s exposure to loss is mitigated because contracts under the GE Operating Agreement are secured by the financed equipment. There were $1.5 billion and $1.4 billion of outstanding loan principal and operating lease payments receivable at both October 31, 2014 and October 31, 2013, financed through the GE Operating Agreement and subject to the loss sharing arrangements in the U.S. The related financed values of these outstanding contracts were $2.3 billion and $2.0 billion at October 31, 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 $156 million and financed lease obligations of $181 million in our Consolidated Balance Sheets for the period ended October 31, 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 Consolidated Statements of Cash Flows and the value of the guarantees and accruals recorded are not material to our Consolidated Balance Sheets. | |
We also have issued limited residual value guarantees in connection with various leases. The amounts of the guarantees are estimated and recorded. Our guarantees are contingent upon the fair value of the leased assets at the end of the lease term. The amount of losses related to these arrangements has not been material to our Consolidated Statements of Operations or Consolidated Statements of Cash Flows and the value of the guarantees and accruals recorded are not material to our Consolidated Balance Sheets. | |
We obtain certain stand-by letters of credit and surety bonds from third-party financial institutions in the ordinary course of business when required under contracts or to satisfy insurance-related requirements. As of October 31, 2014, the amount of stand-by letters of credit and surety bonds was $90 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 October 31, 2014, the total credit limit under this program was $13 million of which $9 million was unused. | |
In addition, as of October 31, 2014, we have entered into various purchase commitments of $154 million and contracts that have cancellation fees of $41 million with various expiration dates through 2020. | |
In the ordinary course of business, we also provide routine indemnifications and other guarantees, the terms of which range in duration and often are not explicitly defined. We do not believe these will result in claims that would have a material impact on our financial condition, results of operations, or cash flows. | |
Environmental Liabilities | |
We have been named a potentially responsible party ("PRP"), in conjunction with other parties, in a number of cases arising under an environmental protection law, the Comprehensive Environmental Response, Compensation, and Liability Act, popularly known as the "Superfund" law. These cases involve sites that allegedly received wastes from current or former Company locations. Based on information available to us which, in most cases, consists of data related to quantities and characteristics of material generated at current or former Company locations, material allegedly shipped by us to these disposal sites, as well as cost estimates from PRPs and/or federal or state regulatory agencies for the cleanup of these sites, a reasonable estimate is calculated of our share of the probable costs, if any, and accruals are recorded in our consolidated financial statements. These accruals are generally recognized no later than upon completion of the remedial feasibility study and are not discounted to their present value. We review all accruals on a regular basis and believe that, based on these calculations, our share of the potential additional costs for the cleanup of each site will not have a material effect on our financial condition, results of operations, or cash flows. | |
Two sites formerly owned by us: (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 $21 million for these and other environmental matters, which are included within Other current liabilities and Other noncurrent liabilities, as of October 31, 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 ("ERISA"), and Department of Labor requirements. In our opinion, apart from the actions set forth below, the disposition of these proceedings and claims, after taking into account recorded accruals and the availability and limits of our insurance coverage, will not have a material adverse effect on our business or our financial condition, results of operations, or cash flows. | |
Profit Sharing Disputes | |
The Company primarily funds post-employment benefit obligations, other than pension benefits, in accordance with the 1993 Settlement Agreement. The 1993 Settlement Agreement resolved a class action lawsuit originally filed in 1992 regarding the restructuring of the Company's then applicable health care and life insurance benefits. Pursuant to the 1993 Settlement Agreement, the program administrator and named fiduciary of the Supplemental Benefit Program is the Supplemental Benefit Program committee (the "Committee"), comprised of non-Company individuals. In August 2013, the Committee filed a motion for leave to amend its February 2013 complaint (which sought injunctive relief for the Company to provide certain information to which it was allegedly entitled under the Supplemental Benefit Trust Profit Sharing Plan) and a proposed amended complaint (the "Profit Sharing Complaint") in the U.S. District Court for the Southern District of Ohio (the "Court"). Leave to file the Profit Sharing Complaint was granted by the Court in October 2013. In its Profit Sharing Complaint, the Committee alleges the Company breached the 1993 Settlement Agreement and violated ERISA by failing to properly calculate profit sharing contributions due under the Supplemental Benefit Trust Profit Sharing Plan. The Committee seeks damages in excess of $50 million, injunctive relief and reimbursement of attorneys' fees and costs. In October 2013, the Company filed a motion to dismiss the Profit Sharing Complaint and to compel the Committee to comply with the dispute resolution procedures set forth in the Supplemental Benefit Trust Profit Sharing Plan. In March 2014, the Court denied the Company's Motion to Dismiss and ruled, among other things, that the Company waived its right to compel the Committee to comply with the dispute resolution provisions set forth in the Supplemental Benefit Trust Profit Sharing Plan. In April 2014, the Company appealed the Court's refusal to compel the Committee to comply with the dispute resolution process to the Court of Appeals for the 6th Circuit and the briefs for the appeal were completed in June 2014. The Company also filed a motion with the Court to stay all proceedings pending the appeal. In May 2014, the Court granted the motion to stay all proceedings, including discovery, pending the appeal. Oral argument before the Court of Appeals for the 6th Circuit has been set for January 14, 2015. | |
In addition, various local bargaining units of the United Automobile, Aerospace, and Agricultural Implement Workers of America ("UAW") have filed separate grievances pursuant to the profit sharing plans under various collective bargaining agreements in effect between the Company and the UAW that may have similar legal and factual issues as the Profit Sharing Complaint. | |
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 October 31, 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$1.2 million at October 31, 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$10.2 million at October 31, 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 had 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 was ratified by the Special Court of Appeals on April 25, 2014, the "Rio Settlement." Pursuant to the Rio Settlement, Wyeth undertook to pay R$20 million (the equivalent of approximately US$8.2 million at October 31, 2014) to Lis Franco within 30 days from the ratification of the Rio Settlement, and Lis Franco undertook to release IIAA and Wyeth from any indemnification obligations as well as from any and all claims against IIAA regarding the subject of Lis Franco's counterclaim. In addition, Wyeth agreed to pay the total amount of R$8.5 million (the equivalent of approximately US$3.5 million at October 31, 2014) to Lis Franco's attorneys within 30 days from the ratification of the Rio Settlement, and Lis Franco undertook to release IIAA and Wyeth from any and all claims regarding such attorneys' fees. The Rio Settlement became final and binding on May 27, 2014 and the matter was closed on the same date. | |
Separately, Wyeth filed a special appeal, addressed to the Superior Court of Appeals in Sao Paulo, in December 2013. MWM filed an answer to the appeal in January 2014. Before the Superior Court of Appeals ruled on the appeal, the parties entered into a settlement agreement, the "Sao Paulo Settlement," subject to the approval of the Rio Settlement. Pursuant to the Sao Paulo Settlement, Wyeth undertook to (i) comply with the terms of the Rio Settlement, including payment of the agreed-upon amounts to Lis Franco and his attorneys; (ii) withdraw the appeal filed against the award granted to MWM in Sao Paulo; and (iii) pay R$0.2 million in attorneys' fees to MWM's counsels. Once the Rio Settlement became final and binding, the Sao Paulo Settlement was submitted for ratification on April 30, 2014. At the same time, Wyeth withdrew its appeal and both parties waived the right to appeal the future ratification of the Sao Paulo Settlement. In May 2014, the Sao Paulo State Court of Appeals ratified Wyeth's appeal withdrawal in a final and binding decision and the matter was closed on the same date. | |
Deloitte & Touche LLP | |
In April 2011, the Company filed a complaint against Deloitte and Touche LLP ("Deloitte") in the Circuit Court of Cook County, Illinois County Department, Law Division ("Illinois Circuit Court") for fraud, fraudulent concealment, negligent misrepresentation, violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, professional malpractice, negligence, breach of contract, and breach of fiduciary duty (the "Deloitte Case"). The matters giving rise to the allegations contained in the complaint arose from Deloitte's service as the Company's independent auditor prior to April 2006 and the Company was seeking monetary damages against Deloitte. In May 2011, Deloitte filed a Notice of Removal to remove the case to the United States District Court for the Northern District of Illinois. In June 2011, the Company filed in the federal court a motion to remand the case to Illinois Circuit Court. In July 2011, Deloitte filed a motion to dismiss the Company's complaint and in August 2011, the Company responded to Deloitte's motion to dismiss. In October 2011, the court remanded the case back to the Illinois Circuit Court and denied the motion to dismiss as moot. The Company amended its complaint in January 2012 in Illinois Circuit Court. In February 2012, Deloitte moved to dismiss the Company's amended complaint. In July 2012, the Illinois Circuit Court granted in part and denied in part Deloitte's motion to dismiss. Specifically, the Illinois Circuit Court dismissed without prejudice with leave to re-plead the Company's counts for fraud, fraudulent concealment and breach of fiduciary duty and otherwise denied Deloitte's motion with respect to the remaining causes of action. In December 2012, the parties reached a settlement. As a result of this settlement in 2013, the Company received cash proceeds of $35 million, which was recorded as a gain to Other (income) expense, net, in the Company's Consolidated Statements of Operations. | |
MaxxForce Engine EGR Warranty Litigation | |
On June 24, 2014, N&C Transportation Ltd. filed a putative class action lawsuit against Navistar International Corporation, Navistar, Inc., Navistar Canada Inc., and Harbour International Trucks in Canada in the Supreme Court of British Columbia (the "N&C Action"). Subsequently, five additional, similar putative class action lawsuits have been filed in Canada (together with the N&C Action, the "Canadian Actions"). | |
On July 7, 2014, Par 4 Transport, LLC filed a putative class action lawsuit against Navistar, Inc. in the United States District Court for the Northern District of Illinois (the "Par 4 Action"). Subsequently, twelve additional putative class action lawsuits were filed in various United States district courts, including the Northern District of Illinois, the Eastern District of Wisconsin, the Southern District of Florida, and the Middle District of Pennsylvania (together with the Par 4 Action, the "U.S. Actions"). The U.S. Actions alleged matters substantially similar to the Canadian Actions. More specifically, the Canadian Actions and the U.S. Actions (collectively, the "EGR Class Actions") seek to certify a class of persons or entities in Canada or the United States who purchased and/or leased a ProStar or other Navistar vehicle equipped with a model year 2008-2013 MaxxForce Advanced EGR engine. In substance, the EGR Class Actions allege that the MaxxForce Advanced EGR engines are defective and that Navistar, Inc. failed to disclose and correct the alleged defect. The EGR Class Actions assert claims based on theories of contract, breach of warranty, consumer fraud, unfair competition, misrepresentation and negligence. The EGR Class Actions seek relief in the form of monetary damages, punitive damages, declaratory relief, interest, fees, and costs. | |
On October 3, 2014, Navistar International Corporation and Navistar, Inc. filed a motion before the United States Judicial Panel on Multidistrict Litigation (the "MDL Action") seeking to transfer and consolidate before Judge Joan B. Gottschall of the United States District Court for the Northern District of Illinois all of the U.S. Actions, as well as certain non-class action MaxxForce Advanced EGR engine lawsuits pending in various federal district courts. The MDL Action has been fully briefed, and the majority of the responses supported Navistar's motion. An oral argument on the MDL Action occurred on December 4, 2014. | |
Based on our assessment of the facts underlying the claims in the above actions, we are unable to provide meaningful quantification of how the final resolution of these claims may impact our future consolidated financial condition, results of operations, or cash flows. | |
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 June 11, 2014, the Fifth Circuit denied the Trustee’s petition for rehearing. On June 19, 2014, the Fifth Circuit issued its mandate affirming the judgment of the District Court. | |
EPA Notice of Violation | |
In February 2012, Navistar, Inc. received a Notice of Violation ("NOV") from the EPA. The NOV pertains to approximately 7,600 diesel engines which, according to the EPA, were produced by Navistar, Inc. in 2010 and, therefore, should have met the EPA's 2010 emissions standards. Navistar, Inc. previously provided information to the EPA evidencing its belief that the engines were in fact produced in 2009. The NOV contains the EPA's conclusion that Navistar, Inc.'s alleged production of the engines in 2010 violated the Federal Clean Air Act. The NOV states that the EPA reserves the right to file an administrative complaint or to refer this matter to the U.S. Department of Justice ("DOJ") with a recommendation that a civil complaint be filed in federal district court. In July 2014, the DOJ informed Navistar that the matter had been referred to the DOJ and the parties are currently discussing the matter. | |
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. In October 2014, the parties tentatively agreed to resolve the matter for a penalty payment of $0.3 million and the Company's agreement to conduct certain in-use testing. As certain non-monetary terms remain to be resolved, a formal settlement has not yet been reached. | |
Shareholder Litigation | |
In March 2013, a putative class action complaint, alleging securities fraud, was filed against us by the Construction Workers Pension Trust Fund - Lake County and Vicinity, on behalf of itself and all other similarly situated purchasers of our common stock between the period of November 3, 2010 and August 1, 2012. A second class action complaint was filed in April 2013 by the Norfolk County Retirement System, individually and on behalf of all other similarly situated purchasers of our common stock between the period of June 9, 2010 and August 1, 2012. A third class action complaint was filed in April 2013 by Jane C. Purnell FBO Purnell Family Trust, on behalf of itself and all other similarly situated purchasers of our common stock between the period of November 3, 2010 and August 1, 2012. Each complaint named us as well as Daniel C. Ustian, our former President and Chief Executive Officer, and Andrew J. Cederoth, our former Executive Vice President and Chief Financial Officer as defendants. These complaints (collectively, the "10b-5 Cases") contain similar factual allegations which include, among other things, that we violated the federal securities laws by knowingly issuing materially false and misleading statements concerning our financial condition and future business prospects and that we misrepresented and omitted material facts in filings with the U.S. Securities and Exchange Commission ("SEC") concerning the timing and likelihood of EPA certification of our EGR technology to meet 2010 EPA emission standards. The plaintiffs in these matters seek compensatory damages and attorneys' fees, among other relief. In May 2013, an order was entered transferring and consolidating all 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. On December 17, 2013, we filed a motion to dismiss the consolidated amended complaint. On July 22, 2014, the Court granted the defendants' Motions to Dismiss, denied the lead plaintiff's Motion to Strike as moot, and gave the lead plaintiff leave to file a second consolidated amended complaint by August 22, 2014. On August 22, 2014, the plaintiff filed a Second Amended Complaint, which narrows the claims in two ways. First, the plaintiff abandoned its claims against the majority of the defendants. The plaintiff now brings claims against only Navistar, Dan Ustian, A.J. Cederoth, Jack Allen, and Eric Tech. The plaintiff also shortened the putative class period. In the prior complaint, the class period began on June 9, 2009. In the Second Amended Complaint, it begins on March 10, 2010. Defendants filed their Motion to Dismiss the Second Amended Complaint on September 23, 2014. On October 23, 2014, the plaintiff filed its opposition to defendant's Motion to Dismiss. On November 7, 2014, defendants filed their reply brief in support of defendant's Motion to Dismiss. The Court has ordered a briefing schedule and set a ruling date for February 17, 2015. | |
In March 2013, James Gould filed a derivative complaint on behalf of the Company against us and certain of our current and former directors and former officers. The complaint alleges, among other things, that certain of our current and former directors and former officers committed a breach of fiduciary duty, waste of corporate assets and were unjustly enriched in relation to similar factual allegations made in the 10b-5 Cases. The plaintiff in this matter seeks compensatory damages, certain corporate governance reforms, certain injunctive relief, disgorgement of the proceeds of certain defendants' profits from the sale of Company stock, and attorneys' fees, among other relief. On May 3, 2013, the court entered a Stipulation and Order to Stay Action, staying the case pending further order of the court or entry of an order on the motion to dismiss the consolidated amended complaint in the 10b-5 Cases. On July 31, 2014, after the amended complaint was dismissed, the parties filed a status report, and the court entered an order on August 27, 2014 continuing the stay pending a ruling on defendants' motion to dismiss the Second Amended Complaint in the 10b-5 Cases. | |
Each of these matters is pending in the United States District Court, Northern District of Illinois. | |
In August 2013, Abbie Griffin, filed a derivative complaint in the State of Delaware Court of Chancery, on behalf of the Company and all similarly situated stockholders, against the Company, as the nominal defendant, and certain of our current and former directors and former officers. The complaint alleges, among other things, that certain of our current and former directors and former officers committed a breach of fiduciary duty, in relation to similar factual allegations made in the 10b-5 Cases. The plaintiff in this matter seeks compensatory damages, certain corporate governance reforms, certain injunctive relief, and attorneys' fees, among other relief. On August 29, 2013, the court entered an order staying the case pending resolution of the defendant's motion to dismiss the consolidated amended complaint in the 10b-5 Cases. On August 5, 2014, the parties filed a status report with the court requesting that the August 2013 stay order remain in place pending a ruling on the motion to dismiss the Second Amended Complaint in the 10b-5 Cases and on November 9, 2014, the court entered an order continuing the stay pending a ruling on defendants’ motion to dismiss the Second Amended Complaint in the 10b-5 Cases. | |
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. | |
6.4 Liter Diesel Engine Litigation | |
Plaintiff Steve Darne ("Darne") filed a putative class action lawsuit in May 2013 against Navistar, Inc. and Ford in the United States District Court for the Northern District of Illinois (the "Court"). The complaint seeks to certify a class of United States owners and lessees of Ford vehicles powered by the 6.4L PowerStroke ® engine (and in the alternative purports to certify a class of Illinois owners and lessees) that Navistar, Inc. previously supplied to Ford. Darne alleges that Ford vehicles equipped with a 6.4L engine had numerous design and manufacturing defects and that Navistar, Inc. and Ford knew of such engine problems but failed to disclose them to consumers. Darne asserts claims against Navistar, Inc. based on theories of negligence, deceptive trade practices, consumer fraud, unjust enrichment, and intentional conduct. For relief, Darne seeks compensatory dollar damages sufficient to remedy the alleged defects, compensate the proposed class members for alleged incurred damages, and compensate plaintiff's counsel. Darne also asks the Court to award punitive damages and restitution/disgorgement. In November 2013, Darne filed an amended complaint, only as to Ford. On November 25, 2013, Darne voluntarily dismissed Navistar, Inc. from the case without prejudice. On November 26, 2013, the Court entered an order terminating the case as to Navistar, Inc. | |
Other | |
U.S. Securities and Exchange Commission Inquiry | |
In June 2012, Navistar received an informal inquiry from the Chicago Office of the Enforcement Division of the SEC seeking a number of categories of documents for the periods dating back to November 1, 2010, relating to various accounting and disclosure issues. We received a formal order of private investigation in July 2012. We have received subsequent subpoenas from the 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. | |
Meeting U.S. Federal and State 2010 Emissions Standards Requirements | |
Truck and engine manufacturers continue to face significant governmental regulation of their products, especially in the areas of environment and safety. We have incurred, and will continue to incur, significant research, development, and tooling costs to design and produce our engine product lines to meet the EPA and CARB on-highway heavy duty diesel ("HDD") emission standards that have reduced the allowable levels of nitrogen oxide ("NOx") to the current limit of 0.20g NOx and include the required on-board diagnostics ("OBD"). The regulations requiring OBD began the initial phase-in during 2010 for truck engines and have been part of our product plans. | |
We attempted to meet the emissions standard for NOx of 0.20g using Exhaust Gas Recirculation ("EGR") until July 2012, when we announced that we changed our engine emission strategy for our HDD engines from an EGR-only strategy to a strategy of combining our EGR technology with Selective Catalytic Reduction ("SCR") after-treatment systems. | |
Since 2010, certain of our HDD engine families have met EPA and CARB certification requirements by using emission credits we earned by producing low-NOx engines earlier than was required by the EPA. In January 2012, the EPA promulgated the Interim Final Rule establishing NCPs for HDD engines, and we began using NCPs for trucks using certain of our HDD engines in 2012. In June 2012, the United States Circuit Court for the District of Columbia (the "D.C. Circuit Court") ruled that the EPA did not follow the required rulemaking processes and issued an order vacating the Interim Final Rule. The Company, as an intervenor in that action, asked for a rehearing, and in August 2012, the D.C. Circuit Court denied that request. The D.C. Circuit Court's ruling became final on August 24, 2012. Following that decision, some of our competitors filed a lawsuit asking the D.C. Circuit Court to invalidate the emission certificates issued to us under the Interim Final Rule. On October 18, 2013, the D.C. Circuit Court dismissed our competitors' lawsuit seeking to invalidate the emission certificates issued to us under the Interim Final Rule. | |
In January 2012, the EPA promulgated the Interim Final Rule establishing NCPs for 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 effectively concluded these legal matters. | |
In October 2012, we announced a definitive agreement with Cummins under which Cummins Emission Solutions will supply its SCR after-treatment system for our 13L engines, as well as other light and medium HDD engines. As a part of our expanded relationship with Cummins, in December 2012 we began phasing in the Cummins 15L as a part of our North American on-highway truck line-up. In September 2013, we announced the offering of the Cummins ISB 6.7 liter engine (the "Cummins ISB") in our International® DuraStar® medium-duty trucks and IC Bus™ CE Series school buses. Initial production of DuraStar® and CE Series school buses, with the Cummins ISB, was completed during the first quarter of 2014. | |
In April 2013, we received EPA emissions certification for certain of our high-volume 13L SCR engines. Also in April 2013, we received OBD certification for all current applications. | |
In the years ended October 31, 2014 and 2013, the North America Truck segment recorded charges totaling $2 million and $36 million, respectively, for NCPs for certain engine sales that did not otherwise comply with emissions standards. | |
As a result of the dismissal of the case noted above and not using the NCP rule to certify engines on a going forward basis, we do not believe this issue will have a material impact on our future consolidated financial condition, results of operation or cashflow. |
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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 October 31, 2014, this segment operated out of twelve regional parts distribution centers, the majority of which 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). Selected financial information is as follows: | ||||||||||||||||||||||||
• | The costs of profit sharing and annual incentive compensation for the Manufacturing operations are included in corporate expenses. | |||||||||||||||||||||||
• | Interest expense and interest income for the Manufacturing operations are reported in corporate expenses. | |||||||||||||||||||||||
• | The Financial Services segment finances certain sales to our dealers in North America, which include an interest-free period that varies in length, that are subsidized by our North America Truck and North America Parts segments. Additionally, the Financial Services segment reports intersegment revenues from secured loans to the Manufacturing operations. Certain retail sales financed by the Financial Services segment, primarily NFC, require the Manufacturing operations, primarily the North America Truck segment, to share a portion of any credit losses. | |||||||||||||||||||||||
• | We allocate "access fees" to the North America Parts segment from the North America Truck segment for certain engineering and product development costs, depreciation expense, and selling, general and administrative expenses incurred by the North America Truck segment based on the relative percentage of certain sales, as adjusted for cyclicality. | |||||||||||||||||||||||
• | Other than the items discussed above, the selected financial information presented below is presented in accordance with our policies described in Note 1, Summary of Significant Accounting Policies. | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Year ended October 31, 2014 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 6,660 | $ | 2,471 | $ | 1,522 | $ | 153 | $ | — | $ | 10,806 | ||||||||||||
Intersegment sales and revenues | 420 | 46 | 35 | 79 | (580 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 7,080 | $ | 2,517 | $ | 1,557 | $ | 232 | $ | (580 | ) | $ | 10,806 | |||||||||||
Income (loss) from continuing operations attributable to NIC, net of tax | $ | (408 | ) | $ | 500 | $ | (218 | ) | $ | 97 | $ | (593 | ) | $ | (622 | ) | ||||||||
Income tax expense | — | — | — | — | (26 | ) | (26 | ) | ||||||||||||||||
Segment profit (loss) | $ | (408 | ) | $ | 500 | $ | (218 | ) | $ | 97 | $ | (567 | ) | $ | (596 | ) | ||||||||
Depreciation and amortization | $ | 212 | $ | 15 | $ | 32 | $ | 46 | $ | 27 | $ | 332 | ||||||||||||
Interest expense | — | — | — | 71 | 243 | 314 | ||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 5 | 4 | — | — | — | 9 | ||||||||||||||||||
Capital expenditures(B) | 65 | 6 | 8 | 1 | 8 | 88 | ||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services(A) | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Year ended October 31, 2013 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 6,312 | $ | 2,558 | $ | 1,747 | $ | 158 | $ | — | $ | 10,775 | ||||||||||||
Intersegment sales and revenues | 486 | 57 | 78 | 75 | (696 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 6,798 | $ | 2,615 | $ | 1,825 | $ | 233 | $ | (696 | ) | $ | 10,775 | |||||||||||
Income (loss) from continuing operations attributable to NIC, net of tax | $ | (902 | ) | $ | 476 | $ | (6 | ) | $ | 81 | $ | (506 | ) | $ | (857 | ) | ||||||||
Income tax benefit | — | — | — | — | 171 | 171 | ||||||||||||||||||
Segment profit (loss) | $ | (902 | ) | $ | 476 | $ | (6 | ) | $ | 81 | $ | (677 | ) | $ | (1,028 | ) | ||||||||
Depreciation and amortization | $ | 305 | $ | 17 | $ | 32 | $ | 40 | $ | 23 | $ | 417 | ||||||||||||
Interest expense | — | — | — | 70 | 251 | 321 | ||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 10 | 6 | (5 | ) | — | — | 11 | |||||||||||||||||
Capital expenditures(B) | 142 | 2 | 9 | 2 | 12 | 167 | ||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services(A) | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Year ended October 31, 2012 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 7,946 | $ | 2,497 | $ | 2,084 | $ | 168 | $ | — | $ | 12,695 | ||||||||||||
Intersegment sales and revenues | 442 | 124 | 126 | 91 | (783 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 8,388 | $ | 2,621 | $ | 2,210 | $ | 259 | $ | (783 | ) | $ | 12,695 | |||||||||||
Income (loss) from continuing operations attributable to NIC, net of tax | $ | (736 | ) | $ | 343 | $ | (168 | ) | $ | 91 | $ | (2,469 | ) | $ | (2,939 | ) | ||||||||
Income tax expense | — | — | — | — | (1,780 | ) | (1,780 | ) | ||||||||||||||||
Segment profit (loss) | $ | (736 | ) | $ | 343 | $ | (168 | ) | $ | 91 | $ | (689 | ) | $ | (1,159 | ) | ||||||||
Depreciation and amortization | $ | 216 | $ | 16 | $ | 36 | $ | 33 | $ | 22 | $ | 323 | ||||||||||||
Interest expense | — | — | — | 88 | 171 | 259 | ||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | (1 | ) | 5 | (33 | ) | — | — | (29 | ) | |||||||||||||||
Capital expenditures(B) | 173 | 21 | 50 | 3 | 62 | 309 | ||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Segment assets, as of: | ||||||||||||||||||||||||
31-Oct-14 | $ | 2,145 | $ | 682 | $ | 749 | $ | 2,598 | $ | 1,269 | $ | 7,443 | ||||||||||||
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 $170 million, $181 million, and $254 million for 2014, 2013, 2012, respectively. | |||||||||||||||||||||||
(B) | Exclusive of purchases of equipment leased to others. | |||||||||||||||||||||||
No single customer accounted for more than 10% of consolidated sales and revenues for the years ended October 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||
Sales and revenues to external customers classified by significant products and services for the years ended October 31, 2014, 2013, and 2012 were as follows: | ||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Sales and revenues: | ||||||||||||||||||||||||
Trucks | $ | 7,137 | $ | 6,738 | $ | 8,705 | ||||||||||||||||||
Parts | 2,424 | 2,906 | 2,886 | |||||||||||||||||||||
Engine | 1,092 | 973 | 936 | |||||||||||||||||||||
Financial Services | 153 | 158 | 168 | |||||||||||||||||||||
Information concerning principal geographic areas for the years ended October 31, 2014, 2013, and 2012 were as follows: | ||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Sales and revenues: | ||||||||||||||||||||||||
United States | $ | 7,760 | $ | 7,122 | $ | 8,822 | ||||||||||||||||||
Canada | 749 | 791 | 949 | |||||||||||||||||||||
Mexico | 657 | 694 | 728 | |||||||||||||||||||||
Brazil | 833 | 1,121 | 1,066 | |||||||||||||||||||||
Other | 807 | 1,047 | 1,130 | |||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||
Long-lived assets:(A) | ||||||||||||||||||||||||
United States | $ | 1,277 | $ | 1,467 | ||||||||||||||||||||
Canada | 26 | 26 | ||||||||||||||||||||||
Mexico | 190 | 157 | ||||||||||||||||||||||
Brazil | 182 | 376 | ||||||||||||||||||||||
Other | 15 | 37 | ||||||||||||||||||||||
__________________________ | ||||||||||||||||||||||||
(A) | Long-lived assets consist of Property and equipment, net, Goodwill, and Intangible assets, net. |
Stockholders_Deficit
Stockholders' Deficit | 12 Months Ended | |||||||||||||||
Oct. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Stockholders' Deficit | In June 2012, our Board of Directors adopted a Stockholder Rights Plan (the "Rights Plan") and initially declared a dividend of one right on each outstanding share of the Company's common stock held of record as of the close of business on June 29, 2012. In July 2013, the Rights Plan was amended to increase the level of beneficial ownership of the Company’s common stock to less than 20% of outstanding common stock of the Company and to exclude persons who beneficially owned less than 20% of outstanding common stock at the time of announcement of entry into the Rights Plan. Pursuant to the Rights Plan, each share of common stock of the Company was associated with one preferred stock purchase right. Each right entitled the holder to buy a unit representing one one-thousandth of a share of a new series of preferred stock of the Company for $140.00. Under certain circumstances, if a person or group acquired beneficial ownership of 20% or more of the Company's common stock, each right (other than rights held by the acquirer) would, unless the rights were redeemed by the Company, become exercisable, and upon payment of the exercise price of $140.00, the holder of the right would receive that number of shares of common stock of the Company having a market value of twice the exercise price of the right. The rights may have been redeemed by the Company for $0.001 per right at any time until the tenth business day following the first public announcement of the acquisition of beneficial ownership of 20% or more of the Company's common stock. Additionally, the July 2013 amendment extended the expiration date of the Rights Plan to June 18, 2015. At the Company’s Annual Meeting of Stockholders in March 2014, a non-binding advisory vote to terminate the Rights Plan was proposed and approved. On June 17, 2014, the Rights Plan was further amended to have the plan expire on July 1, 2014. | |||||||||||||||
Stockholders' Deficit | ||||||||||||||||
Stockholder Rights Plan | ||||||||||||||||
In June 2012, our Board of Directors adopted a Stockholder Rights Plan (the "Rights Plan") and initially declared a dividend of one right on each outstanding share of the Company's common stock held of record as of the close of business on June 29, 2012. In July 2013, the Rights Plan was amended to increase the level of beneficial ownership of the Company’s common stock to less than 20% of outstanding common stock of the Company and to exclude persons who beneficially owned less than 20% of outstanding common stock at the time of announcement of entry into the Rights Plan. Pursuant to the Rights Plan, each share of common stock of the Company was associated with one preferred stock purchase right. Each right entitled the holder to buy a unit representing one one-thousandth of a share of a new series of preferred stock of the Company for $140.00. Under certain circumstances, if a person or group acquired beneficial ownership of 20% or more of the Company's common stock, each right (other than rights held by the acquirer) would, unless the rights were redeemed by the Company, become exercisable, and upon payment of the exercise price of $140.00, the holder of the right would receive that number of shares of common stock of the Company having a market value of twice the exercise price of the right. The rights may have been redeemed by the Company for $0.001 per right at any time until the tenth business day following the first public announcement of the acquisition of beneficial ownership of 20% or more of the Company's common stock. Additionally, the July 2013 amendment extended the expiration date of the Rights Plan to June 18, 2015. At the Company’s Annual Meeting of Stockholders in March 2014, a non-binding advisory vote to terminate the Rights Plan was proposed and approved. On June 17, 2014, the Rights Plan was further amended to have the plan expire on July 1, 2014. | ||||||||||||||||
On June 23, 2014, prior to expiration of the Rights Plan, the Company’s Board of Directors approved an amendment to the Rights Plan that, in essence, turned the existing Stockholder Rights Plan into a Tax Asset Protection Plan. This Tax Asset Protection Plan was adopted to protect the long-term value of Navistar’s substantial tax assets and was set to expire on September 1, 2014. On August 29, 2014 the Tax Asset Protection Plan was further amended to extend the expiration date until November 3, 2014. On November 3, 2014, the Tax Asset Protection Plan expired in accordance with its terms. | ||||||||||||||||
Preferred and Preference Stocks | ||||||||||||||||
NIC has authorized 30 million shares of preferred stock, none of which have been issued, with a par value of $1.00 per share. In June 2012, the Company filed (i) a Certificate of Elimination to its Restated Certificate of Incorporation, eliminating the series of 110,000 shares of Preferred Stock designated as Junior Participating Preferred Stock, Series A, par value $1.00 per share, that had been authorized in 2007, but unissued, in connection with a prior stockholder rights plan and (ii) a Certificate of Designation to its Restated Certificate of Incorporation creating a series of 220,000 shares of Preferred Stock designated as Junior Participating Preferred Stock, Series A, par value $1.00 per share, authorized in connection with the adoption of the Rights Plan. On December 10, 2014, the Company filed a Certificate of Elimination to its Restated Certificate of Incorporation, eliminating the series of 220,000 shares of Preferred Stock designated as Junior Participating Preferred Stock, Series A, par value of $1.00 per share, that had been authorized in June 2012 in connection with the Rights Plan, NIC has authorized 10 million shares of preference stock with a par value of $1.00 per share. Currently, Series B Nonconvertible Junior Preference Stock ("Series B") and Series D Convertible Junior Preference Stock ("Series D") are outstanding. | ||||||||||||||||
The UAW holds the Series B and is currently entitled to elect one member of our Board of Directors. As of October 31, 2014 and 2013, there was one share of Series B Preference stock authorized and outstanding. | ||||||||||||||||
As of October 31, 2014 and 2013, there were 100,702 and 120,096 shares, respectively, of Series D issued and outstanding. These shares were issued with a par value of $1.00 per share, an optional redemption price, and a liquidation preference of $25 per share plus accrued dividends. The Series D stock may be converted into NIC common stock at the holder's option (subject to adjustment in certain circumstances); upon conversion each share of Series D stock is converted to 0.3125 shares of common stock. The Series D stock ranks senior to common stock as to dividends and liquidation and receives dividends at a rate of 120% of the cash dividends on common stock as declared on an as-converted basis. | ||||||||||||||||
Common Stock | ||||||||||||||||
At October 31, 2014, the Company's amount of authorized shares of Common Stock was 220 million, with a par value of $0.10 per share. At October 31, 2014 and 2013, the Company had 81.4 million shares and 80.5 million shares, respectively, of common stock outstanding, net of common stock held in treasury. | ||||||||||||||||
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. As a result of this over-allotment, the Company received proceeds, net of underwriting discounts and commissions, of $14 million in January 2013. | ||||||||||||||||
Additional Paid in Capital | ||||||||||||||||
In connection with the sale of the 2014 Convertible Notes, the Company purchased call options for $125 million and entered into separate warrant transactions whereby the Company sold warrants for $87 million to purchase shares of common stock. As the call options and warrants are indexed to our common stock, we recognized them in permanent equity in Additional paid in capital, and will not recognize subsequent changes in fair value as long as the instruments remain classified as equity. On October 15, 2014, upon maturity, the 2014 Convertible Notes were paid in full and the purchased call options expired worthless. | ||||||||||||||||
In accounting for the issuance of the 2018 Convertible Notes, a debt component and an equity component were separated resulting in the debt component being recorded at its estimated fair value without consideration given to the conversion feature. We estimated the fair value of the liability component at $177 million. The resulting equity component of $22 million, net of $1 million of discount, was 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 were also allocated between the debt and equity components resulting in an immaterial amount being recorded as a reduction in Additional paid in capital. | ||||||||||||||||
In accounting for the issuance of the 2019 Convertible Notes, the debt component and equity component of the 2019 Convertible Notes were separated, resulting in the debt component being recorded at its estimated fair value without consideration given to the conversion feature. We estimated the fair value of the liability component at $367 million. The resulting equity component of $44 million was 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 were also allocated between debt and equity components with $1 million being recorded as a reduction in Additional paid in capital. | ||||||||||||||||
For more information on our 2014 Convertible Notes, 2018 Convertible Notes, and 2019 Convertible Notes, see Note 10, Debt. | ||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||
The following tables display the changes in Accumulated other comprehensive loss, net of tax, by component as of October 31: | ||||||||||||||||
(in millions) | Unrealized Gain on Marketable Securities | Foreign Currency Translation Adjustments | Defined Benefit Plan | Total | ||||||||||||
Balance as of October 31, 2013 | $ | — | $ | (75 | ) | $ | (1,749 | ) | $ | (1,824 | ) | |||||
Other comprehensive income (loss) before reclassifications | 1 | (52 | ) | (491 | ) | (542 | ) | |||||||||
Amounts reclassified out of accumulated other comprehensive loss | — | — | 103 | 103 | ||||||||||||
Net current-period other comprehensive income (loss) | 1 | (52 | ) | (388 | ) | (439 | ) | |||||||||
Balance as of October 31, 2014 | $ | 1 | $ | (127 | ) | $ | (2,137 | ) | $ | (2,263 | ) | |||||
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 | 2014 | |||||||||||||||
Statements of Operations | ||||||||||||||||
Defined benefit plans | ||||||||||||||||
Amortization of prior service costs | Selling, general and administrative expenses | $ | (4 | ) | ||||||||||||
Amortization of actuarial loss | Selling, general and administrative expenses | 109 | ||||||||||||||
Total before tax | 105 | |||||||||||||||
Tax benefit | (2 | ) | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 103 | ||||||||||||||
Share Repurchase Programs | ||||||||||||||||
In September 2011, a special committee of our Board of Directors authorized a share repurchase program for up to $175 million worth of the Company's common stock in the open market or in any private transaction. | ||||||||||||||||
In October 2011, the Company entered into a variable term accelerated share repurchase ("ASR") agreement with a third-party financial institution to purchase shares of common stock for an aggregate purchase price of $100 million. Under the ASR agreement, the Company paid the financial institution $100 million and received an initial delivery of 2,380,952 shares. The value of the delivered shares on the date of purchase was $80 million at $33.60 per share, and was included in Common stock held in treasury in our Consolidated Balance Sheets. The remaining $20 million was included in Additional paid in capital in our Consolidated Balance Sheets as of October 31, 2011. | ||||||||||||||||
In November 2011, the ASR program concluded and the Company received an additional 161,657 shares for a total of 2,542,609 shares. The final settlement was based upon the volume weighted average price of the Company's common stock (subject to a discount agreed upon with the financial institution) over an averaging period. With the conclusion of the agreement, the remaining $20 million included in Additional paid in capital was reclassified to Common stock held in treasury. | ||||||||||||||||
In October 2011, the Company entered into an open market share repurchase ("OMR") agreement with a third-party financial institution to purchase the remaining $75 million worth of the Company's common stock authorized by a special committee of our Board of Directors in September 2011. The OMR commenced in November 2011, following the completion of the ASR program. In January 2012, the OMR concluded with the Company repurchasing 1,905,600 shares of our common stock. Repurchases of $70 million were settled in cash during the three months ended January 31, 2012, and the remaining $5 million was settled in cash during the three months ended April 30, 2012. The share repurchase program expired upon its completion. | ||||||||||||||||
Dividend Restrictions | ||||||||||||||||
Under the General Corporation Law of the State of Delaware, dividends may only be paid out of surplus or out of net profits for the year in which the dividend is declared or the preceding year, and no dividend may be paid on common stock at any time during which the capital of outstanding preferred stock or preference stock exceeds our net assets. | ||||||||||||||||
Certain debt instruments, including our Senior Notes indenture, our Loan Agreement with regard to the Tax Exempt Bonds, our Amended Term Loan Credit Facility, and our Amended and Restated Asset-Based Credit Facility, contain terms that include various financial covenants and restrictions, including, among others, certain limitations on dividends. We have not paid dividends on our common stock since 1980. |
Loss_Per_Share_Attributable_to
Loss Per Share Attributable to Navistar International Corporation | 12 Months Ended | |||||||||||
Oct. 31, 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: | ||||||||||||
(in millions, except per share data) | 2014 | 2013 | 2012 | |||||||||
Numerator: | ||||||||||||
Amounts attributable to Navistar International Corporation common stockholders: | ||||||||||||
Loss from continuing operations, net of tax | $ | (622 | ) | $ | (857 | ) | $ | (2,939 | ) | |||
Income (loss) from discontinued operations, net of tax | 3 | (41 | ) | (71 | ) | |||||||
Net loss | $ | (619 | ) | $ | (898 | ) | $ | (3,010 | ) | |||
Denominator: | ||||||||||||
Weighted average shares outstanding: | ||||||||||||
Basic | 81.4 | 80.4 | 69.1 | |||||||||
Effect of dilutive securities | — | — | — | |||||||||
Diluted | 81.4 | 80.4 | 69.1 | |||||||||
Earnings (loss) per share attributable to Navistar International Corporation: | ||||||||||||
Basic: | ||||||||||||
Continuing operations | $ | (7.64 | ) | $ | (10.66 | ) | $ | (42.53 | ) | |||
Discontinued operations | 0.04 | (0.51 | ) | (1.03 | ) | |||||||
Net loss | $ | (7.60 | ) | $ | (11.17 | ) | $ | (43.56 | ) | |||
Diluted: | ||||||||||||
Continuing operations | $ | (7.64 | ) | $ | (10.66 | ) | $ | (42.53 | ) | |||
Discontinued operations | 0.04 | (0.51 | ) | (1.03 | ) | |||||||
Net loss | $ | (7.60 | ) | $ | (11.17 | ) | $ | (43.56 | ) | |||
The conversion rate on our 2014 Convertible Notes were 19.891 shares of common stock per $1,000 principal amount of 2014 Convertible Notes, equivalent to an initial conversion price of $50.27 per share of common stock. In connection with the sale of the 2014 Convertible Notes, we sold warrants to various counterparties to purchase shares of our common stock from us at an exercise price of $60.14 per share. The 2014 Convertible Notes and warrants were anti-dilutive when calculating diluted earnings per share when our average stock price is less than $50.27 and $60.14, respectively. During the second quarter of 2014, the Company unwound warrants representing 6.5 million shares associated with the repurchased 2014 Convertible Notes. On October 15, 2014, upon maturity the 2014 Convertible Notes were paid in full. The outstanding warrants of 4.8 million shares will expire on April 10, 2015. | ||||||||||||
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 were 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 and fourth quarters of 2014, call options representing 8.0 million and 3.3 million shares, respectively, expired or were unwound by the Company. | ||||||||||||
The conversion rate on our 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 years ended October 31, 2014, 2013, and 2012, 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 years ended October 31, 2014, 2013, and 2012, the aggregate shares not included were 24.8 million, 29.9 million, and 28.5 million, respectively. | ||||||||||||
For the year ended October 31, 2014, the aggregate shares not included in the computation of earnings per share were primarily comprised of 6.4 million shares related to the warrants, 4.5 million shares related to the 2014 Convertible Notes, 5.7 million shares were related to the 2018 Convertible Notes, and 4.4 million were related to the 2019 Convertible Notes. | ||||||||||||
For the years ended October 31, 2013 and 2012 the aggregate shares not included in the computation of earnings per share were primarily comprised of 11.3 million shares related to the warrants, 11.3 million shares related to the 2014 Convertible Notes, as well as for the year ended October 31, 2013, 0.9 million shares related to the 2018 Convertible Notes. |
Stockbased_Compensation_Plans_
Stock-based Compensation Plans (Notes) | 12 Months Ended | ||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 2013 Performance Incentive Plan | ||||||||||||||||||||
The 2013 Performance Incentive Plan ("2013 PIP") was approved by the Board of Directors on December 11, 2012 and subsequently by the stockholders on February 19, 2013. The 2013 PIP provides for the grant of annual cash incentive awards to all employees (including the Company’s executive officers), and stock options, restricted stock or stock unit awards, stock appreciation rights and other stock-based awards to all employees (including the Company’s executive officers), any consultants of the Company and its subsidiaries, and all non-employee directors serving on the Company’s Board of Directors. The awards granted under the 2013 PIP are established by our Board of Directors or a committee thereof at the time of issuance. | |||||||||||||||||||||
The 2013 PIP replaced on a prospective basis, our 2004 Performance Incentive Plan, and will expire in February 2023. A total of 3,665,500 shares of common stock were reserved for awards under the 2013 Plan. The number of shares authorized and available for issuance under the 2013 PIP will be increased by shares of stock subject to an option or award under the 2013 PIP, or under the Company’s 2004 Performance Incentive Plan, the Navistar 1994 Performance Incentive Plan, the Navistar 1998 Supplemental Stock Plan, or our 1998 Non-Employee Director Stock Option Plan (collectively, the "Existing Plans"), that is canceled, expired, forfeited, settled in cash, or otherwise terminated after February 19, 2013 without a delivery of shares to the participant of such plan, including shares used to satisfy the exercise price of a stock option or a tax withholding obligation arising in connection with an award. As of October 31, 2014, 1,124,273 shares remain available for issuance under the 2013 PIP. Shares issued under the Plan may be newly issued shares or reissued Treasury shares. | |||||||||||||||||||||
Other Plans and Grants | |||||||||||||||||||||
The following plans were approved by our Board of Directors but were not approved and were not required to be approved by our stockholders: the Executive Stock Ownership Program (the "Ownership Program") and the Non-Employee Directors Deferred Fee Plan (the "Deferred Fee Plan"). | |||||||||||||||||||||
• | Ownership Program—In June 1997, our Board of Directors approved the terms of the Ownership Program, as amended from time to time (the "Ownership Program"). In general, under the Ownership Program in existence until November 2013, all officers and senior managers were required to acquire, by direct purchase or through salary or annual bonus reduction, an ownership interest in the Company by acquiring a designated amount of our common stock based on organizational level. Participants were required to hold such stock for the entire period in which they are employed by the Company. The Ownership Program was amended and restated effective November 1, 2013 on a going forward basis. The new guidelines (i) increase stock ownership guideline multiples to six times salary for the President and CEO and up to three times salary for other senior executives; (ii) modify retention requirements for Company granted equity until ownership requirements are met; (iii) add a holding period for shares acquired through transactions with Company granted equity after the executives satisfy the stock ownership requirement; (iv) eliminate the granting of premium shares as an inducement to executives fulfilling stock ownership guidelines on an accelerated basis; and (v) eliminate the required time frame to fulfill stock ownership guidelines. Under the prior Ownership Program, participants were entitled to defer their cash bonus into deferred share units ("DSUs"), which vested immediately. There were 7,082 DSUs outstanding as of October 31, 2014. Premium share units ("PSUs") were also eligible to be awarded to participants who complete their ownership requirement on an accelerated basis. PSUs vested annually, pro rata over three years. There were 57,572 PSUs outstanding as of October 31, 2014 under the prior Ownership Program. Each vested DSU and PSU will be settled by delivery of one share of common stock within ten days after a participant's termination of employment or at such later date as required by Internal Revenue Code Section Rule 409A. Beginning in February 2013, PSUs and DSUs awarded under the prior Ownership Program are to be issued under the 2013 PIP. | ||||||||||||||||||||
• | Deferred Fee Plan—Under the Deferred Fee Plan, non-employee directors may elect to defer payment of all or a portion of their retainer fees and meeting fees in cash (with interest) or in stock units. Deferrals in the deferred stock account are valued as if each deferral was vested in NIC common stock as of the deferral date. As of October 31, 2014, 47,552 deferred shares were outstanding under the Deferred Fee Plan. Beginning on September 30, 2013, shares deferred by non-employee directors are issued out of the 2013 PIP. The Deferred Fee Plan was amended and restated effective November 1, 2013 on a going forward basis. | ||||||||||||||||||||
In August 2012, we also granted 500,000 non-qualified stock options to Lewis B. Campbell upon his appointment as Executive Chairman and CEO of the Company. These stock options were awarded pursuant to NYSE inducement grant rules. | |||||||||||||||||||||
Stock Options | |||||||||||||||||||||
A stock option is the right to purchase a specified number of shares of common stock at a specified exercise price. Primarily, stock options are awarded with an exercise price equal to the fair market value of our common stock on the date of grant. The stock options granted prior to December 2009 generally have a ten-year contractual life. Starting with the December 2009 stock option grants, the Company granted awards with a seven-year contractual life. Stock Options are valued using the Black-Scholes option pricing model and vest over a three-year period. | |||||||||||||||||||||
The following table summarizes stock option activity for the years ended October 31: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | ||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||
Options outstanding, at beginning of year | 5,000 | $ | 37.94 | 5,636 | $ | 37.89 | 4,500 | $ | 39.65 | ||||||||||||
Granted | 251 | 38.51 | 926 | 31.64 | 1,289 | 31.69 | |||||||||||||||
Exercised | (784 | ) | 24.33 | (451 | ) | 26.16 | (71 | ) | 27.66 | ||||||||||||
Forfeited/expired | (810 | ) | 44.41 | (1,111 | ) | 37.24 | (82 | ) | 44.66 | ||||||||||||
Options outstanding, at end of year | 3,657 | 39.46 | 5,000 | 37.94 | 5,636 | 37.89 | |||||||||||||||
Options exercisable, at end of year | 2,637 | 41.34 | 3,468 | 38.22 | 3,672 | 36.96 | |||||||||||||||
The following table summarizes information about stock options outstanding at October 31, 2014: | |||||||||||||||||||||
Options Outstanding | |||||||||||||||||||||
Number | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Aggregate Intrinsic Value | ||||||||||||||||||
Outstanding | |||||||||||||||||||||
Range of Exercise Prices: | (in thousands) | (in years) | (in millions) | ||||||||||||||||||
$ 21.02 - $ 31.19 | 976 | 4.3 | $ | 27.07 | $ | 8.1 | |||||||||||||||
$ 31.20 - $ 40.92 | 1,864 | 3 | 37.94 | — | |||||||||||||||||
$ 40.93 - $ 68.65 | 817 | 3.2 | 57.75 | — | |||||||||||||||||
The following table summarizes information about stock options exercisable at October 31, 2014: | |||||||||||||||||||||
Options Exercisable | |||||||||||||||||||||
Number | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Aggregate Intrinsic Value | ||||||||||||||||||
Outstanding | |||||||||||||||||||||
Range of Exercise Prices: | (in thousands) | (in years) | (in millions) | ||||||||||||||||||
$ 21.02 - $ 31.19 | 593 | 3.7 | $ | 25.7 | $ | 5.7 | |||||||||||||||
$ 31.20 - $ 40.92 | 1,308 | 2.2 | 38.34 | — | |||||||||||||||||
$ 40.93 - $ 68.65 | 736 | 2.9 | 59.28 | — | |||||||||||||||||
The weighted average grant date fair value of options granted during the years ended October 31, 2014, 2013, and 2012 was $13.81, $14.01, and $14.73, respectively. The total intrinsic value of stock options exercised during the years ended October 31, 2014, 2013, and 2012 was $12 million, $4 million, and $1 million, respectively. The fair value of each option grant was estimated on the grant date using the Black-Scholes option-pricing model. | |||||||||||||||||||||
The following table summarizes the annual weighted average assumptions: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Risk-free interest rate | 1.6 | % | 0.8 | % | 0.8 | % | |||||||||||||||
Dividend yield | — | % | — | % | — | % | |||||||||||||||
Expected volatility | 45.6 | % | 54.7 | % | 55.6 | % | |||||||||||||||
Expected life (in years) | 4.9 | 5.1 | 4.8 | ||||||||||||||||||
The use of the Black-Scholes option-pricing model requires us to make certain estimates and assumptions. The risk-free interest rate utilized is the implied yield on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term assumption on the grant date, rounded to the nearest half year. A dividend yield assumption of 0% is used for all grants based on the Company's history of not paying a dividend to any class of stock and future expectations. Expected volatility is based on a blend of our historical stock prices and implied volatilities from traded options in our stock. The weighted average expected life in years for all grants as a group is then calculated for each year. | |||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||
Restricted stock is common stock that is subject to forfeiture or other restrictions that will lapse upon satisfaction of specified conditions. Restricted stock is issued and valued based on the fair value of the common stock at grant date and vests either over a three year-period or cliff-vest at the end of a three-year period. | |||||||||||||||||||||
The following table summarizes restricted stock activity for the years ended October 31: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||
Nonvested, at beginning of year | 41 | $ | 24.13 | 41 | $ | 24.13 | — | $ | — | ||||||||||||
Granted | 4 | 33.7 | 2 | 34.19 | 44 | 25.06 | |||||||||||||||
Vested | (4 | ) | 33.7 | (2 | ) | 34.19 | (3 | ) | 40.76 | ||||||||||||
Forfeited | — | — | — | — | — | — | |||||||||||||||
Nonvested, at end of year | 41 | 24.13 | 41 | 24.13 | 41 | 24.13 | |||||||||||||||
The aggregate grant date fair value of restricted stock vested during each of the years ended October 31, 2014, 2013, and 2012 was $0.1 million. | |||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||
Restricted stock units ("RSUs") represent the right to receive shares of common stock ("share-settled RSUs") or cash ("cash-settled RSUs") in the future, with the right to future delivery of the shares or cash subject to forfeiture or other restrictions that will lapse upon satisfaction of specified conditions. Share and cash-settled RSUs are valued based on the fair value of the common stock at grant date. There are 26,500 RSUs that can be settled either by cash or shares at the Company's discretion. The cash or share-settled RSUs have been classified as share-settled RSUs below. Cash-settled RSUs are classified as liabilities and are remeasured at each reporting date until settlement and vest either over a three-year period or cliff-vest at the end of a three year-period. | |||||||||||||||||||||
The following table summarizes RSU activity for the years ended October 31: | |||||||||||||||||||||
Shares-Settled Restricted Stock Units | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||
Nonvested, at beginning of year | 299 | $ | 29.54 | 77 | $ | 45.93 | 162 | $ | 35.54 | ||||||||||||
Granted | — | — | 316 | 28.13 | 6 | 42.19 | |||||||||||||||
Vested | (90 | ) | 31.74 | (26 | ) | 35.84 | (90 | ) | 27.22 | ||||||||||||
Forfeited | (21 | ) | 27.24 | (68 | ) | 39.13 | (1 | ) | 33.97 | ||||||||||||
Nonvested, at end of year | 188 | 28.75 | 299 | 29.54 | 77 | 45.93 | |||||||||||||||
Cash-Settled Restricted Stock Units | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||
Nonvested, at beginning of year | 194 | $ | 43.74 | 463 | $ | 43.2 | 393 | $ | 48.8 | ||||||||||||
Granted | 470 | 32.44 | 3 | 27.24 | 285 | 37.1 | |||||||||||||||
Vested | (124 | ) | 47.48 | (215 | ) | 42.71 | (158 | ) | 46.18 | ||||||||||||
Forfeited | (71 | ) | 33.24 | (57 | ) | 42.46 | (57 | ) | 43.58 | ||||||||||||
Nonvested, at end of year | 469 | 33 | 194 | 43.74 | 463 | 43.2 | |||||||||||||||
The aggregate grant date fair value of restricted stock units vested during the year ended October 31, 2014 was $9 million, and $10 million during both years ended October 31, 2013 and 2012. | |||||||||||||||||||||
Cash-settled Performance-based Stock Units | |||||||||||||||||||||
Cash-settled performance-based stock units represent the right to receive the cash value of one share of common stock provided that performance measures are achieved. A stock unit will be determined by comparing the Company's total shareholder return for a pre-determined period to the Company's percentile ranking when compared to its peer group. Cash-settled performance-based stock units are valued using a Monte Carlo simulation. Cash-settled performance-based stock units are classified as liabilities and are remeasured at each reporting date until settlement and vest over a three or five-year period, if performance measures are met. | |||||||||||||||||||||
The following table summarizes cash-settled performance-based stock unit activity for the years ended October 31: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||
Nonvested, at beginning of year | 172 | $ | 69.64 | 314 | $ | 68.03 | 161 | $ | 84.75 | ||||||||||||
Granted | — | — | — | — | 153 | 50.52 | |||||||||||||||
Vested | — | — | — | — | — | — | |||||||||||||||
Forfeited | — | — | (142 | ) | 66.09 | — | — | ||||||||||||||
Nonvested, at end of year | 172 | 69.64 | 172 | 69.64 | 314 | 68.03 | |||||||||||||||
The following table summarizes the annual assumptions used in the calculation of the fair value: | |||||||||||||||||||||
2012 | |||||||||||||||||||||
Risk-free interest rate | 0.8 | % | |||||||||||||||||||
Dividend yield | — | % | |||||||||||||||||||
Expected volatility | 52.3 | % | |||||||||||||||||||
The risk-free rate is based on the rate on zero-coupon governmental bonds with a term commensurate with the remaining performance period at grant date. A dividend yield assumption of 0% is used based on the Company's history of not paying dividends to any class of stock and future expectations. Expected volatility is based on a blend of the implied volatility of traded call options in our stock and the historical volatility of our daily stock prices. | |||||||||||||||||||||
Performance-based Stock Options | |||||||||||||||||||||
Performance-based stock options represent the right to receive shares of common stock in the future, with the right to future delivery of the shares subject to forfeiture or other restrictions that will lapse upon satisfaction of a combination of the following conditions: service, market and performance conditions. Performance-based stock options have a seven-year contractual life. Performance-based stock options with service and performance conditions are valued using the Black-Scholes option pricing model and vest either at the end of the performance period or cliff-vest at the end of a three-year period, if performance measures are met. Performance -based stock options with service and market conditions are valued using a Monte Carlo simulation and cliff-vest at the end of a three-year period, if performance measures are met. | |||||||||||||||||||||
The following table summarizes the performance-based stock options with service and performance conditions activity for the years ended October 31: | |||||||||||||||||||||
Service and Performance | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
Options outstanding, at beginning of year | 299 | $ | 34.47 | — | $ | — | |||||||||||||||
Granted | 651 | 35.83 | 299 | 34.47 | |||||||||||||||||
Exercised | — | — | — | — | |||||||||||||||||
Forfeited | (9 | ) | 35.09 | — | — | ||||||||||||||||
Options outstanding, at end of year | 941 | 35.41 | 299 | 34.47 | |||||||||||||||||
Options exercisable, at end of year | — | — | — | — | |||||||||||||||||
The performance-based stock options subject to service and performance conditions weighted average grant date fair value of options granted during the years ended October 31, 2014 and 2013 was $14.12 and $14.01, respectively. The fair value of each option grant was estimated on the grant date using the Black-Scholes option-pricing model. | |||||||||||||||||||||
The following table summarizes the annual weighted average assumptions: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Risk-free interest rate | 1.6 | % | 0.7 | % | |||||||||||||||||
Dividend yield | — | % | — | % | |||||||||||||||||
Expected volatility | 45.5 | % | 54.1 | % | |||||||||||||||||
Expected life (in years) | 4.9 | 5.1 | |||||||||||||||||||
The use of the Black-Scholes option-pricing model requires us to make certain estimates and assumptions. The risk-free interest rate utilized is the implied yield on the U.S. Treasury zero-coupon issues with a remaining term equal to the expected term assumption on the grant date, rounded to the nearest half year. A dividend yield assumption of 0% is used for all grants based on the Company's history of not paying a dividend to any class of stock. Expected volatility is based on a blend of our historical stock prices and implied volatilities from traded options in our stock. The weighted average expected life in years for all grants as a group is then calculated for each year. | |||||||||||||||||||||
The following table summarizes the performance-based stock options with service and market conditions activity for the years ended October 31: | |||||||||||||||||||||
Service and Market | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
Options outstanding, at beginning of year | 759 | $ | 27.24 | — | $ | — | |||||||||||||||
Granted | — | — | 917 | 27.24 | |||||||||||||||||
Exercised | — | — | — | — | |||||||||||||||||
Forfeited | (89 | ) | 27.24 | (158 | ) | 27.24 | |||||||||||||||
Options outstanding, at end of year | 670 | 27.24 | 759 | 27.24 | |||||||||||||||||
Options exercisable, at end of year | — | — | — | — | |||||||||||||||||
The following table summarizes the assumptions used in the calculation of the fair value using a Monte Carlo simulation for the performance-based stock options with service and market conditions for the year ended October 31: | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Risk-free interest rate | 0.9 | % | |||||||||||||||||||
Dividend yield | — | % | |||||||||||||||||||
Expected volatility | 55.4 | % | |||||||||||||||||||
Expected life (in years) | 5 | ||||||||||||||||||||
Monte Carlo Simulation Fair Value | $ | 12.41 | |||||||||||||||||||
Performance-based Stock Units | |||||||||||||||||||||
Performance-based stock units ("PSUs") represent the right to receive shares of common stock ("share-settled PSUs") or cash ("cash-settled PSUs") in the future, with the right to future delivery of the shares or cash subject to forfeiture or other restrictions that will lapse upon satisfaction of the service and performance conditions. Share and cash-settled PSUs are valued based on the fair value of the common stock at grant date and cliff-vest at the end of a three-year period, if performance measures are met. Cash-settled PSUs are classified as liabilities and are remeasured at each reporting date until settlement. | |||||||||||||||||||||
The following table summarizes performance-based stock units activity for the years ended October 31: | |||||||||||||||||||||
Share-Settled Performance-based Stock Units | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
Nonvested, at beginning of year | 326 | $ | 28.35 | — | $ | — | |||||||||||||||
Granted | — | — | 381 | 28.19 | |||||||||||||||||
Vested | — | — | — | — | |||||||||||||||||
Forfeited | (34 | ) | 27.24 | (55 | ) | 27.24 | |||||||||||||||
Nonvested, at end of year | 292 | $ | 28.48 | 326 | $ | 28.35 | |||||||||||||||
Cash-Settled Performance-based Stock Units | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Nonvested, at beginning of year | — | $ | — | ||||||||||||||||||
Granted | 225 | 35.1 | |||||||||||||||||||
Vested | — | — | |||||||||||||||||||
Forfeited | (4 | ) | 35.09 | ||||||||||||||||||
Nonvested, at end of year | 221 | 35.11 | |||||||||||||||||||
Total Share-Based Compensation Expense | |||||||||||||||||||||
Total share-based compensation expense for the years ended October 31, 2014, 2013, and 2012 was $16 million, $24 million and $19 million, respectively. As of October 31, 2014, the minimum performance measures for share-settled PSUs and performance-based stock options with service and performance conditions were not met and no share-based compensation expense was recorded. However, cash-settled PSUs partially met the performance measures and share-based compensation expense recorded was based on the interpolated calculated future pay out. Share-based compensation expense will be adjusted each reporting period based on the available current performance measures information for all awards with performance conditions. The Company records share-based compensation expense on a straight-line basis over the required service period which is equal to the vesting period, beginning on the grant date. Share-based compensation expense is included in Selling, general, and administrative expenses in the Consolidated Statements of Operations. As of October 31, 2014, there was $51 million of total unrecognized compensation expense related to non-vested share-based awards which is expected to be recognized over a weighted average period of approximately 1.8 years. | |||||||||||||||||||||
The Company received cash of $19 million, $12 million, and $2 million during the years ended October 31, 2014, 2013, and 2012, respectively, related to stock awards exercised. The Company used cash of $5 million during the years ended October 31, 2014 and 2013 respectively, and $6 million during the year ended October 31, 2012, to settle cash-settled RSUs. The Company did not realize any tax benefit from stock awards exercised for 2014, 2013, or 2012. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information (Notes) | 12 Months Ended | |||||||||||
Oct. 31, 2014 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||
Cash Flow, Supplemental Disclosures [Text Block] | Supplemental Cash Flow Information | |||||||||||
The following table provides additional information about the Company's Consolidated Statements of Cash Flows for the years ended October 31, 2014, 2013, and 2012: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Equity in income of affiliated companies, net of dividends | ||||||||||||
Equity in loss (income) of non-consolidated affiliates | $ | (9 | ) | $ | (11 | ) | $ | 29 | ||||
Dividends from non-consolidated affiliates | 12 | 13 | 7 | |||||||||
Equity in loss of non-consolidated affiliates, net of dividends | $ | 3 | $ | 2 | $ | 36 | ||||||
Other non-cash operating activities | ||||||||||||
Loss on sales of affiliates | $ | — | $ | — | $ | 3 | ||||||
Loss (gain) on sale of property and equipment | (9 | ) | 5 | 4 | ||||||||
Loss on sale and impairment of repossessed collateral | 3 | — | — | |||||||||
Loss on repurchase of debt | 11 | — | — | |||||||||
Income from operating leases | (46 | ) | (75 | ) | — | |||||||
Other non-cash operating activities | $ | (41 | ) | $ | (70 | ) | $ | 7 | ||||
Changes in other assets and liabilities | ||||||||||||
Other current assets | $ | 62 | $ | 6 | $ | 1 | ||||||
Other noncurrent assets | 2 | (46 | ) | 16 | ||||||||
Other current liabilities | (206 | ) | 144 | 198 | ||||||||
Postretirement benefits liabilities | (82 | ) | (58 | ) | (79 | ) | ||||||
Other noncurrent liabilities | (78 | ) | 190 | 292 | ||||||||
Other, net | 20 | 4 | (8 | ) | ||||||||
Changes in other assets and liabilities | $ | (282 | ) | $ | 240 | $ | 420 | |||||
Cash paid during the year | ||||||||||||
Interest, net of amounts capitalized | $ | 258 | $ | 237 | $ | 195 | ||||||
Income taxes, net of refunds | 15 | (6 | ) | 51 | ||||||||
Non-cash investing and financing activities | ||||||||||||
Property and equipment acquired under capital leases | $ | 3 | $ | — | $ | 58 | ||||||
Transfers (to)/from inventories (from)/to property and equipment for leases to others | (14 | ) | (10 | ) | 37 | |||||||
Condensed_Consolidating_Guaran
Condensed Consolidating Guarantor and Non-Guarantor Financial Information | 12 Months Ended | |||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||
Condensed Consolidating Guarantor and Non-Guarantor [Abstract] | ||||||||||||||||||||
Condensed Consolidating Guarantor and Non-guarantor Financial Information | Consolidating Guarantor and Non-guarantor Financial Information | |||||||||||||||||||
The following tables set forth condensed consolidating balance sheets as of October 31, 2014 and 2013, and condensed consolidating statements of operations and condensed consolidating statements of comprehensive income (loss) for the years ended October 31, 2014, 2013, and 2012, and condensed consolidating statements of cash flows for the years ended October 31, 2014, 2013, and 2012. | ||||||||||||||||||||
The information is presented as a result of Navistar, Inc.’s guarantee, exclusive of its subsidiaries, of NIC’s indebtedness under our Senior Notes and obligations under our Loan Agreement related to the Tax Exempt Bonds. 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 Year ended October 31, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Sales and revenues, net | $ | — | $ | 7,269 | $ | 8,196 | $ | (4,659 | ) | $ | 10,806 | |||||||||
Costs of products sold | — | 6,794 | 7,337 | (4,597 | ) | 9,534 | ||||||||||||||
Restructuring charges | — | 8 | 34 | — | 42 | |||||||||||||||
Asset impairment charges | — | 16 | 167 | — | 183 | |||||||||||||||
All other operating expenses (income) | (48 | ) | 1,003 | 541 | 116 | 1,612 | ||||||||||||||
Total costs and expenses | (48 | ) | 7,821 | 8,079 | (4,481 | ) | 11,371 | |||||||||||||
Equity in income (loss) of affiliates | (680 | ) | (169 | ) | 5 | 853 | 9 | |||||||||||||
Income (loss) before income taxes | (632 | ) | (721 | ) | 122 | 675 | (556 | ) | ||||||||||||
Income tax expense | 13 | 25 | (64 | ) | — | (26 | ) | |||||||||||||
Earnings (loss) from continuing operations | (619 | ) | (696 | ) | 58 | 675 | (582 | ) | ||||||||||||
Income from discontinued operations, net of tax | — | — | 3 | — | 3 | |||||||||||||||
Net income (loss) | (619 | ) | (696 | ) | 61 | 675 | (579 | ) | ||||||||||||
Less: Net income attributable to non-controlling interests | — | — | 40 | — | 40 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (619 | ) | $ | (696 | ) | $ | 21 | $ | 675 | $ | (619 | ) | |||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Year ended October 31, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (619 | ) | $ | (696 | ) | $ | 21 | $ | 675 | $ | (619 | ) | |||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Foreign currency translation adjustment | (52 | ) | — | (52 | ) | 52 | (52 | ) | ||||||||||||
Unrealized gain on marketable securities | 1 | — | 1 | (1 | ) | 1 | ||||||||||||||
Defined benefit plans (net of tax of $(2), $0, $(2), $2 and, $(2), respectively) | (388 | ) | (397 | ) | 9 | 388 | (388 | ) | ||||||||||||
Total other comprehensive income (loss) | (439 | ) | (397 | ) | (42 | ) | 439 | (439 | ) | |||||||||||
Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (1,058 | ) | $ | (1,093 | ) | $ | (21 | ) | $ | 1,114 | $ | (1,058 | ) | ||||||
Condensed Consolidating Balance Sheet as of October 31, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 101 | $ | 53 | $ | 343 | $ | — | $ | 497 | ||||||||||
Marketable securities | 379 | — | 226 | — | 605 | |||||||||||||||
Restricted cash | 19 | 4 | 148 | — | 171 | |||||||||||||||
Finance and other receivables, net | — | 124 | 2,504 | (12 | ) | 2,616 | ||||||||||||||
Inventories | — | 792 | 539 | (12 | ) | 1,319 | ||||||||||||||
Investments in non-consolidated affiliates | (7,245 | ) | 6,410 | 71 | 837 | 73 | ||||||||||||||
Property and equipment, net | — | 827 | 740 | (5 | ) | 1,562 | ||||||||||||||
Goodwill | — | — | 38 | — | 38 | |||||||||||||||
Deferred taxes, net | 5 | 9 | 185 | 1 | 200 | |||||||||||||||
Other | 34 | 137 | 194 | (3 | ) | 362 | ||||||||||||||
Total assets | $ | (6,707 | ) | $ | 8,356 | $ | 4,988 | $ | 806 | $ | 7,443 | |||||||||
Liabilities and stockholders’ equity (deficit) | ||||||||||||||||||||
Debt | $ | 1,958 | $ | 937 | $ | 2,336 | $ | (7 | ) | $ | 5,224 | |||||||||
Postretirement benefits liabilities | — | 2,712 | 243 | — | 2,955 | |||||||||||||||
Amounts due to (from) affiliates | (7,618 | ) | 11,739 | (4,267 | ) | 146 | — | |||||||||||||
Other liabilities | 3,605 | 370 | (22 | ) | (71 | ) | 3,882 | |||||||||||||
Total liabilities | (2,055 | ) | 15,758 | (1,710 | ) | 68 | 12,061 | |||||||||||||
Redeemable equity securities | 2 | — | — | — | 2 | |||||||||||||||
Stockholders’ equity attributable to non-controlling interest | — | — | 34 | — | 34 | |||||||||||||||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (4,654 | ) | (7,402 | ) | 6,664 | 738 | (4,654 | ) | ||||||||||||
Total liabilities and stockholders’ equity (deficit) | $ | (6,707 | ) | $ | 8,356 | $ | 4,988 | $ | 806 | $ | 7,443 | |||||||||
Condensed Consolidating Statement of Cash Flows for the Year ended October 31, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net cash provided by (used in) operations | $ | (285 | ) | $ | (1,287 | ) | $ | (112 | ) | $ | 1,348 | $ | (336 | ) | ||||||
Cash flows from investment activities | ||||||||||||||||||||
Net change in restricted cash and cash equivalents | 5 | (1 | ) | (84 | ) | — | (80 | ) | ||||||||||||
Net sales of marketable securities | 203 | — | 22 | — | 225 | |||||||||||||||
Capital expenditures and purchase of equipment leased to others | — | (114 | ) | (163 | ) | — | (277 | ) | ||||||||||||
Other investing activities | — | 17 | 40 | — | 57 | |||||||||||||||
Net cash provided by (used in) investment activities | 208 | (98 | ) | (185 | ) | — | (75 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Net borrowings (repayments) of debt | (176 | ) | 1,306 | 409 | (1,389 | ) | 150 | |||||||||||||
Other financing activities | 18 | 60 | (90 | ) | 41 | 29 | ||||||||||||||
Net cash provided by (used in) financing activities | (158 | ) | 1,366 | 319 | (1,348 | ) | 179 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (26 | ) | — | (26 | ) | |||||||||||||
Decrease in cash and cash equivalents | (235 | ) | (19 | ) | (4 | ) | — | (258 | ) | |||||||||||
Cash and cash equivalents at beginning of the year | 336 | 72 | 347 | — | 755 | |||||||||||||||
Cash and cash equivalents at end of the year | $ | 101 | $ | 53 | $ | 343 | $ | — | $ | 497 | ||||||||||
Condensed Consolidating Statement of Operations for the Year ended October 31, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Sales and revenues, net | $ | — | $ | 6,426 | $ | 8,979 | $ | (4,630 | ) | $ | 10,775 | |||||||||
Costs of products sold | — | 6,629 | 7,720 | (4,588 | ) | 9,761 | ||||||||||||||
Restructuring charges | — | 15 | 10 | — | 25 | |||||||||||||||
Asset impairment charges | — | 81 | 16 | — | 97 | |||||||||||||||
All other operating expenses (income) | (208 | ) | 1,180 | 659 | 246 | 1,877 | ||||||||||||||
Total costs and expenses | (208 | ) | 7,905 | 8,405 | (4,342 | ) | 11,760 | |||||||||||||
Equity in income (loss) of affiliates | (1,108 | ) | 161 | 4 | 954 | 11 | ||||||||||||||
Income (loss) before income taxes | (900 | ) | (1,318 | ) | 578 | 666 | (974 | ) | ||||||||||||
Income tax benefit (expense) | 2 | 244 | (75 | ) | — | 171 | ||||||||||||||
Earnings (loss) from continuing operations | (898 | ) | (1,074 | ) | 503 | 666 | (803 | ) | ||||||||||||
Loss from discontinued operations, net of tax | — | — | (41 | ) | — | (41 | ) | |||||||||||||
Net income (loss) | (898 | ) | (1,074 | ) | 462 | 666 | (844 | ) | ||||||||||||
Less: Net income attributable to non-controlling interests | — | — | 54 | — | 54 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (898 | ) | $ | (1,074 | ) | $ | 408 | $ | 666 | $ | (898 | ) | |||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Year ended October 31, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (898 | ) | $ | (1,074 | ) | $ | 408 | $ | 666 | $ | (898 | ) | |||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Foreign currency translation adjustment | (51 | ) | — | (51 | ) | 51 | (51 | ) | ||||||||||||
Defined benefit plans (net of tax of $(21), $5, $(26), $21, and, $(21), respectively) | 552 | 687 | 74 | (761 | ) | 552 | ||||||||||||||
Total other comprehensive income (loss) | 501 | 687 | 23 | (710 | ) | 501 | ||||||||||||||
Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (397 | ) | $ | (387 | ) | $ | 431 | $ | (44 | ) | $ | (397 | ) | ||||||
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 Year ended October 31, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net cash provided by (used in) operations | $ | (669 | ) | $ | (355 | ) | $ | 401 | $ | 723 | $ | 100 | ||||||||
Cash flows from investment activities | ||||||||||||||||||||
Net change in restricted cash and cash equivalents | — | 5 | 65 | — | 70 | |||||||||||||||
Net purchases of marketable securities | (267 | ) | — | (97 | ) | — | (364 | ) | ||||||||||||
Capital expenditures and purchase of equipment leased to others | — | (422 | ) | (177 | ) | — | (599 | ) | ||||||||||||
Other investing activities | — | 87 | (4 | ) | — | 83 | ||||||||||||||
Net cash used in investment activities | (267 | ) | (330 | ) | (213 | ) | — | (810 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Net borrowings (repayments) of debt | 540 | 409 | (40 | ) | (793 | ) | 116 | |||||||||||||
Other financing activities | 30 | 293 | (116 | ) | 70 | 277 | ||||||||||||||
Net cash provided by (used in) financing activities | 570 | 702 | (156 | ) | (723 | ) | 393 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (15 | ) | — | (15 | ) | |||||||||||||
Increase (decrease) in cash and cash equivalents | (366 | ) | 17 | 17 | — | (332 | ) | |||||||||||||
Cash and cash equivalents at beginning of the year | 702 | 55 | 330 | — | 1,087 | |||||||||||||||
Cash and cash equivalents at end of the year | $ | 336 | $ | 72 | $ | 347 | $ | — | $ | 755 | ||||||||||
Condensed Consolidating Statement of Operations for the Year ended October 31, 2012 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Sales and revenues, net | $ | — | $ | 7,924 | $ | 11,413 | $ | (6,642 | ) | $ | 12,695 | |||||||||
Costs of products sold | — | 8,188 | 9,798 | (6,585 | ) | 11,401 | ||||||||||||||
Restructuring charges | — | 86 | 21 | — | 107 | |||||||||||||||
Asset impairment charges | — | 2 | 14 | — | 16 | |||||||||||||||
All other operating expenses (income) | (249 | ) | 1,297 | 968 | 237 | 2,253 | ||||||||||||||
Total costs and expenses | (249 | ) | 9,573 | 10,801 | (6,348 | ) | 13,777 | |||||||||||||
Equity in income (loss) of affiliates | (3,258 | ) | 536 | (34 | ) | 2,727 | (29 | ) | ||||||||||||
Income (loss) before income taxes | (3,009 | ) | (1,113 | ) | 578 | 2,433 | (1,111 | ) | ||||||||||||
Income tax benefit (expense) | (1 | ) | (1,987 | ) | 209 | (1 | ) | (1,780 | ) | |||||||||||
Earnings (loss) from continuing operations | (3,010 | ) | (3,100 | ) | 787 | 2,432 | (2,891 | ) | ||||||||||||
Income from discontinued operations, net of tax | — | — | (71 | ) | — | (71 | ) | |||||||||||||
Net income (loss) | (3,010 | ) | (3,100 | ) | 716 | 2,432 | (2,962 | ) | ||||||||||||
Less: Net income attributable to non-controlling interests | — | — | 48 | — | 48 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (3,010 | ) | $ | (3,100 | ) | $ | 668 | $ | 2,432 | $ | (3,010 | ) | |||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Year ended October 31, 2012 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (3,010 | ) | $ | (3,100 | ) | $ | 668 | $ | 2,432 | $ | (3,010 | ) | |||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Foreign currency translation adjustment | (125 | ) | — | (125 | ) | 125 | (125 | ) | ||||||||||||
Defined benefit plans (net of tax of $14, $0, $14, $(14), and, $14, respectively) | (256 | ) | (225 | ) | (31 | ) | 256 | (256 | ) | |||||||||||
Total other comprehensive income (loss) | (381 | ) | (225 | ) | (156 | ) | 381 | (381 | ) | |||||||||||
Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (3,391 | ) | $ | (3,325 | ) | $ | 512 | $ | 2,813 | $ | (3,391 | ) | |||||||
Condensed Consolidating Statement of Cash Flows for the Year ended October 31, 2012 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net cash provided by (used in) operations | $ | 350 | $ | (183 | ) | $ | 901 | $ | (458 | ) | $ | 610 | ||||||||
Cash flows from investment activities | ||||||||||||||||||||
Net change in restricted cash and cash equivalents | (4 | ) | 1 | 168 | — | 165 | ||||||||||||||
Net purchases of marketable securities | 115 | — | 137 | — | 252 | |||||||||||||||
Capital expenditures and purchase of equipment leased to others | — | (213 | ) | (157 | ) | — | (370 | ) | ||||||||||||
Other investing activities | — | (157 | ) | 108 | — | (49 | ) | |||||||||||||
Net cash provided by (used in) investment activities | 111 | (369 | ) | 256 | — | (2 | ) | |||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Net borrowings (repayments) of debt | 171 | 594 | (1,245 | ) | 549 | 69 | ||||||||||||||
Other financing activities | (156 | ) | — | 115 | (91 | ) | (132 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 15 | 594 | (1,130 | ) | 458 | (63 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 3 | — | 3 | |||||||||||||||
Increase in cash and cash equivalents | 476 | 42 | 30 | — | 548 | |||||||||||||||
Cash and cash equivalents at beginning of the year | 226 | 13 | 300 | — | 539 | |||||||||||||||
Cash and cash equivalents at end of the year | $ | 702 | $ | 55 | $ | 330 | $ | — | $ | 1,087 | ||||||||||
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (unaudited) (Notes) | 12 Months Ended | |||||||||||||||
Oct. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Financial Information [Text Block] | Selected Quarterly Financial Data (Unaudited) | |||||||||||||||
The following tables provide our Quarterly Condensed Consolidated Statements of Operations and Financial Data: | ||||||||||||||||
1st Quarter Ended | 2nd Quarter Ended | |||||||||||||||
January 31, | April 30, | |||||||||||||||
(in millions, except for per share data and stock prices) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Sales and revenues, net | $ | 2,208 | $ | 2,637 | $ | 2,746 | $ | 2,526 | ||||||||
Manufacturing gross margin(A)(B) | 155 | 312 | 240 | 124 | ||||||||||||
Amounts attributable to Navistar International Corporation common shareholders: | ||||||||||||||||
Loss from continuing operations, net of tax(C) | $ | (249 | ) | $ | (114 | ) | $ | (298 | ) | $ | (353 | ) | ||||
Loss from discontinued operations, net of tax | 1 | (9 | ) | 1 | (21 | ) | ||||||||||
Net loss | $ | (248 | ) | $ | (123 | ) | $ | (297 | ) | $ | (374 | ) | ||||
Loss per share attributable to Navistar International Corporation: | ||||||||||||||||
Basic: | ||||||||||||||||
Continuing operations | $ | (3.07 | ) | $ | (1.42 | ) | $ | (3.66 | ) | $ | (4.39 | ) | ||||
Discontinued operations | 0.02 | (0.11 | ) | 0.01 | (0.26 | ) | ||||||||||
$ | (3.05 | ) | $ | (1.53 | ) | $ | (3.65 | ) | $ | (4.65 | ) | |||||
Diluted: | ||||||||||||||||
Continuing operations | $ | (3.07 | ) | $ | (1.42 | ) | $ | (3.66 | ) | $ | (4.39 | ) | ||||
Discontinued operations | 0.02 | (0.11 | ) | 0.01 | (0.26 | ) | ||||||||||
$ | (3.05 | ) | $ | (1.53 | ) | $ | (3.65 | ) | $ | (4.65 | ) | |||||
Market price range-common stock: | ||||||||||||||||
High | $ | 41.57 | $ | 26.9 | $ | 39.45 | $ | 37.65 | ||||||||
Low | 30.8 | 18.78 | 29.08 | 23.25 | ||||||||||||
3rd Quarter Ended | 4th Quarter Ended | |||||||||||||||
July 31, | October 31, | |||||||||||||||
(in millions, except for per share data and stock prices) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Sales and revenues, net | $ | 2,844 | $ | 2,861 | $ | 3,008 | $ | 2,751 | ||||||||
Manufacturing gross margin(A)(B) | 389 | 273 | 335 | 147 | ||||||||||||
Amounts attributable to Navistar International Corporation common shareholders: | ||||||||||||||||
Loss from continuing operations, net of tax(C) | $ | (3 | ) | $ | (237 | ) | $ | (72 | ) | $ | (153 | ) | ||||
Income (loss) from discontinued operations, net of tax | 1 | (10 | ) | — | (1 | ) | ||||||||||
Net loss | $ | (2 | ) | $ | (247 | ) | $ | (72 | ) | $ | (154 | ) | ||||
Earnings (loss) per share attributable to Navistar International Corporation: | ||||||||||||||||
Basic: | ||||||||||||||||
Continuing operations | $ | (0.04 | ) | $ | (2.94 | ) | $ | (0.88 | ) | $ | (1.90 | ) | ||||
Discontinued operations | 0.02 | (0.12 | ) | — | (0.01 | ) | ||||||||||
$ | (0.02 | ) | $ | (3.06 | ) | $ | (0.88 | ) | $ | (1.91 | ) | |||||
Diluted: | ||||||||||||||||
Continuing operations | $ | (0.04 | ) | $ | (2.94 | ) | $ | (0.88 | ) | $ | (1.90 | ) | ||||
Discontinued operations | 0.02 | (0.12 | ) | — | (0.01 | ) | ||||||||||
$ | (0.02 | ) | $ | (3.06 | ) | $ | (0.88 | ) | $ | (1.91 | ) | |||||
Market price range-common stock: | ||||||||||||||||
High | $ | 39.41 | $ | 38.81 | $ | 40.17 | $ | 39.79 | ||||||||
Low | 32.45 | 25.56 | 29.54 | 31.88 | ||||||||||||
_______________________ | ||||||||||||||||
(A) Manufacturing gross margin is calculated by subtracting Costs of products sold from Sales of manufactured products, net. | ||||||||||||||||
(B) We record adjustments to our product warranty accrual to 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. In the third quarter of 2014, we recognized a benefit for adjustments to pre-existing warranties of $(29) million. The benefit is comprised of a benefit for changes in estimates of $(59) million, partially offset by a $30 million correction of prior-period errors, primarily related to pre-existing warranties. In the fourth quarter of 2014, we recognized a benefit for adjustments to pre-existing warranties of $(10) million compared to a charge for adjustments to pre-existing warranties of $152 million in the fourth quarter of 2013. The $(10) million benefit recorded in the fourth quarter of 2014 is comprised of a benefit for changes in estimates of $(35) million, partially offset by the fourth quarter impact of $25 million relating to the correction of prior-period errors as discussed in Note 1, 2014 Out-Of-Period Adjustments. | ||||||||||||||||
(C) | In the second quarter of 2014, the company recognized a non-cash charge of $149 million for the impairment of certain intangible assets of our Brazilian engine reporting unit. Due to the economic downturn in Brazil which resulted in a continued decline in actual and forecasted results, we tested the goodwill of our Brazilian engine reporting unit and trademark for potential impairment. As a result, we determined that the entire $142 million balance of goodwill and $7 million of trademark were impaired. | |||||||||||||||
In the fourth quarter of 2013, our North America Truck segment recorded a non-cash charge of $77 million to reflect impairment of goodwill as a result of changes in our organizational and reporting structures, which resulted in a change in certain of our reporting units. The impairment charges were included in Asset impairment charges. | ||||||||||||||||
Also in the fourth quarter of 2013, the Company met the criteria necessary to apply the exception within the intraperiod tax allocation rules. As a result, the Company recorded an income tax benefit of $220 million, which was recorded in Income tax benefit (expense) related to continuing operations. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Oct. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes | |||||||||||
We file a consolidated U.S. federal income tax return for NIC and its eligible domestic subsidiaries. Our non-U.S. subsidiaries file income tax returns in their respective local jurisdictions. We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax benefit carryforwards. Deferred tax assets and liabilities at the end of each period are determined using enacted tax rates. A valuation allowance is established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized. | ||||||||||||
We recognize the tax benefit from an uncertain tax position claimed or expected to be claimed on a tax return only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the 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. | ||||||||||||
We apply the intraperiod tax allocation rules to allocate income taxes among continuing operations, discontinued operations, extraordinary items, other comprehensive income (loss), and additional paid-in capital when we meet the criteria as prescribed in the rules. | ||||||||||||
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share | |||||||||||
The calculation of basic earnings per share is based on the weighted average number of our shares of common stock outstanding during the applicable period. The calculation for diluted earnings per share recognizes the effect of all potential dilutive shares of common stock that were outstanding during the respective periods, unless their impact would be anti-dilutive. | ||||||||||||
Diluted earnings per share recognizes the dilution that would occur if securities or other contracts to issue common stock were exercised or converted into shares using the treasury stock method. | ||||||||||||
Compensation Related Costs, Policy [Policy Text Block] | Stock-based Compensation | |||||||||||
We have various plans that provide for the granting of stock-based compensation to certain employees, directors, and consultants, which is further described in Note 19, Stock-Based Compensation Plans. Shares are issued upon option exercise from Common stock held in treasury. | ||||||||||||
For transactions in which we obtain employee services in exchange for an award of equity instruments, we measure the cost of the services based on the grant date fair value of the award. We recognize the cost over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period). Costs related to plans with graded vesting are generally recognized using a straight-line method. | ||||||||||||
Commitments and Contingencies, Policy [Policy Text Block] | Contingency Accruals | |||||||||||
We accrue for loss contingencies associated with outstanding litigation for which we have determined it is probable that a loss has occurred and the amount of loss can be reasonably estimated. Our asbestos, product liability, environmental, and workers compensation accruals also include estimated future legal fees associated with the loss contingencies, as we believe we can reasonably estimate those costs. In all other instances, legal fees are expensed as incurred. These expenses may be recorded in Costs of products sold, Selling, general and administrative expenses, or Other (income) expense, net. These estimates are based on our expectations of the scope, length to complete, and complexity of the claims. In the future, additional adjustments may be recorded as the scope, length, or complexity of outstanding litigation changes. | ||||||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | |||||||||||
Our Manufacturing operations recognize revenue when we meet four basic criteria: (i) persuasive evidence that a customer arrangement exists, (ii) the price is fixed or determinable, (iii) collectability is reasonably assured, and (iv) delivery of product has occurred or services have been rendered. Sales are generally recognized when risk of ownership passes. | ||||||||||||
Sales to fleet customers and governmental entities are recognized in accordance with the terms of each contract. Revenue on certain customer requested bill and hold arrangements is not recognized until after the customer is notified that the product (i) has been completed according to customer specifications, (ii) has passed our quality control inspections, and (iii) is ready for delivery based upon the established delivery terms and risk of loss has transferred. | ||||||||||||
An allowance for sales returns is recorded as a reduction to revenue based upon estimates using historical information about returns. For the sale of service parts that include a core component, we record revenue on a gross basis including the fair market value of the core. A core component is the basic forging or casting, such as an engine block, that can be remanufactured by a certified remanufacturing supplier. When a dealer returns a core within the specified eligibility period, we provide a core return credit, which is applied to the customer's account balance. At times, we may mark up the core charge beyond the amount we are charged by the supplier. This mark-up is recorded as a liability, as it represents the amount that will be paid to the dealer upon return of the core component and is in excess of the fair value to be received from the supplier. | ||||||||||||
Concurrent with our recognition of revenue, we recognize price allowances and the cost of incentive programs in the normal course of business based on programs offered to dealers or fleet customers. Estimates are made for sales incentives on certain vehicles in dealer stock inventory when special programs that provide specific incentives to dealers are offered in order to facilitate sales to end customers. | ||||||||||||
Truck sales to the U.S. and foreign governments, of non-commercial products manufactured to government specifications, are recognized using the units-of-delivery measure under the percentage-of-completion accounting method as units are delivered and accepted by the government. | ||||||||||||
Certain terms or modifications to U.S. and foreign government contracts may be unpriced; that is, the work to be performed is defined, but the related contract price is to be negotiated at a later date. In situations where we can reliably estimate a profit margin in excess of costs incurred, revenue and gross margin are recorded for delivered contract items. Otherwise, revenue is recognized when the price has been agreed with the government and costs are deferred when it is probable that the costs will be recovered. | ||||||||||||
Shipping and handling amounts billed to our customers are included in Sales of manufactured products, net and the related shipping and handling costs incurred are included in Costs of products sold. | ||||||||||||
Financial Services operations recognize revenue from retail notes, finance leases, wholesale notes, retail accounts, and wholesale accounts as Finance revenues over the term of the receivables utilizing the effective interest method. Certain direct origination costs and fees are deferred and recognized as adjustments to yield and are reported as part of interest income over the life of the receivable. Loans are considered to be impaired when we conclude it is probable the customer will not be able to make full payment after reviewing the customer's financial performance, payment ability, capital-raising potential, management style, economic situation, and other factors. The accrual of interest on such loans is discontinued when the loan becomes 90 days or more past due. Finance revenues on these loans are recognized only to the extent cash payments are received. We resume accruing interest on these accounts when payments are current according to the terms of the loans and future payments are reasonably assured. | ||||||||||||
Operating lease revenues are recognized on a straight-line basis over the life of the lease. Recognition of revenue is suspended when management determines the collection of future revenue is not probable. Recognition of revenue is resumed if collection again becomes probable. | ||||||||||||
Selected receivables are securitized and sold to public and private investors with limited recourse. Our Financial Services operations continue to service the sold receivables and receive fees for such services. | ||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents | |||||||||||
All highly liquid financial instruments with original maturities of 90 days or less, consisting primarily of U.S. Treasury bills, federal agency securities, and commercial paper, are classified as cash equivalents. | ||||||||||||
Restricted cash is related to our securitized facilities, senior and subordinated floating rate asset-backed notes, wholesale trust agreements, indentured trust agreements, letters of credit, Environmental Protection Agency requirements, and workers compensation requirements. The restricted cash and cash equivalents for our securitized facilities is restricted to pay interest expense, principal, or other amounts associated with our securitization agreements. | ||||||||||||
Marketable Securities, Policy [Policy Text Block] | Marketable Securities | |||||||||||
Marketable securities consist of available-for-sale securities and are measured and reported at fair value. The difference between amortized cost and fair value is recorded as a component of Accumulated other comprehensive loss ("AOCL") in Stockholders' Deficit, net of taxes. Most securities with remaining maturities of less than twelve months and other investments needed for current cash requirements are classified as current in our Consolidated Balance Sheets. Gains and losses on the sale of marketable securities are determined using the specific identification method and are recorded in Other (income) expense, net. | ||||||||||||
We evaluate our investments in marketable securities at the end of each reporting period to determine if a decline in fair value is other than temporary. When a decline in fair value is determined to be other than temporary, an impairment charge is recorded and a new cost basis in the investment is established. Our marketable securities are classified as Level 1 in the fair value hierarchy. | ||||||||||||
Derivatives, Policy [Policy Text Block] | Derivative Instruments | |||||||||||
We utilize derivative instruments to manage certain exposure to changes in foreign currency exchange rates, interest rates, and commodity prices. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these derivative instruments are recognized in our operating results or included in AOCL, depending on whether the derivative instrument is a fair value or cash flow hedge and whether it qualifies for hedge accounting treatment. The Company elected to apply the normal purchase and normal sale exclusion to certain commodity contracts that are entered into to be used in production within a reasonable time during the normal course of business. For the years ended October 31, 2014, 2013, and 2012, none of our derivatives qualified for hedge accounting and all changes in the fair value of our derivatives, except for those qualifying under the normal purchases and normal sales exception, were recognized in our operating results. | ||||||||||||
Gains and losses on derivative instruments are recognized in Costs of products sold, Interest expense, or Other (income) expense, net depending on the underlying exposure. The exchange of cash associated with derivative transactions is classified in the Consolidated Statements of Cash Flows in the same category as the cash flows from the items subject to the economic hedging relationships. | ||||||||||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Trade and Finance Receivables | |||||||||||
Trade Receivables | ||||||||||||
Trade accounts receivable and trade notes receivable primarily arise from sales of goods to independently owned and operated dealers, original equipment manufacturers ("OEMs"), and commercial customers in the normal course of business. | ||||||||||||
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | Finance receivables consist of the following: | |||||||||||
• | Retail notes—Retail notes primarily consist of fixed rate loans to commercial customers to facilitate their purchase of new and used trucks, trailers, and related equipment. | |||||||||||
• | Finance leases—Finance leases consist of direct financing leases to commercial customers for acquisition of new and used trucks, trailers, and related equipment. | |||||||||||
• | Wholesale notes—Wholesale notes primarily consist of variable rate loans to our dealers for the purchase of new and used trucks, trailers, and related equipment. | |||||||||||
• | Retail accounts—Retail accounts consist of short-term accounts receivable that finance the sale of products to commercial customers. | |||||||||||
• | Wholesale accounts—Wholesale accounts consist of short-term accounts receivable primarily related to the sales of items other than trucks, trailers, and related equipment (e.g. service parts) to dealers. | |||||||||||
Finance receivables are classified as held-to-maturity and are recorded at gross value less unearned income and are reported net of allowances for doubtful accounts. Unearned revenue is amortized to revenue over the life of the receivable using the effective interest method. Our Financial Services operations purchase the majority of the wholesale notes receivable and some retail notes and accounts receivable arising from our Manufacturing operations. The Financial Services operations retain as collateral a security interest in the equipment associated with retail notes, wholesale notes, and finance leases. | ||||||||||||
Sales of Finance Receivables | ||||||||||||
We sell finance receivables using a process commonly known as securitization, whereby asset-backed securities are sold via public offering or private placement. None of our securitization and receivable sale arrangements qualify for sales accounting or off-balance sheet treatment. As a result, the transferred receivables and the associated secured borrowings are included in our Consolidated Balance Sheets and no gain or loss is recorded for the sale. | ||||||||||||
We also act as servicer of transferred receivables. The servicing duties include collecting payments on receivables and preparing monthly investor reports on the performance of the receivables that are used by the trustee to distribute monthly interest and principal payments to investors. While servicing the receivables, we apply the same servicing policies and procedures that are applied to our owned receivables. | ||||||||||||
Allowance for Doubtful Accounts [Policy Text Block] | Allowance for Doubtful Accounts | |||||||||||
An allowance for doubtful accounts is established through a charge to Selling, general and administrative expenses. The allowance is an estimate of the amount required to absorb probable losses on trade and finance receivables that may become uncollectible. The receivables are charged off when amounts due are determined to be uncollectible. | ||||||||||||
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. As the initial measurement attributes and the monitoring and assessment of credit risk or the performance of the receivables are consistent within each of our receivable portfolios, we determined that each portfolio consisted of one class of receivable. | ||||||||||||
Impaired receivables are specifically identified and segregated from the remaining portfolio. The expected loss on impaired receivables is fully reserved in a separate calculation as a specific reserve based on the unique ability of the customer to pay and the estimated value of the collateral. The historical loss experience and portfolio quality trends of the retail portfolio segment compared to the wholesale portfolio segment are inherently different. A specific reserve on impaired retail receivables is recorded if the estimated fair value of the underlying collateral, net of selling costs, is less than the principal balance of the receivable. We calculate a general reserve on the remaining loan portfolio by applying loss ratios which are determined using actual loss experience and customer payment history, in conjunction with current economic and portfolio quality trends. In addition, we analyze specific economic indicators such as tonnage, fuel prices, and gross domestic product for additional insight into the overall state of the economy and its potential impact on our portfolio. | ||||||||||||
To establish a specific reserve for impaired wholesale receivables, we consider the same factors discussed above but also consider the financial strength of the dealer and key management, the timeliness of payments, the number and location of satellite locations, the number of dealers of competitor manufacturers in the market area, the type of equipment normally financed, and the seasonality of the business. | ||||||||||||
Repossessions [Policy Text Block] | Repossessions | |||||||||||
Gains or losses arising from the sale of repossessed collateral supporting finance receivables and operating leases are recognized in Selling, general and administrative expenses. Repossessed assets are recorded within Inventories at the lower of historical cost or fair value, less estimated costs to sell. | ||||||||||||
Inventory, Policy [Policy Text Block] | Inventories | |||||||||||
Inventories are valued at the lower of cost or market. Cost is principally determined using the first-in, first-out ("FIFO") method. | ||||||||||||
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation | |||||||||||
The accompanying audited 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. | ||||||||||||
Basis of Presentation and Consolidation | ||||||||||||
The accompanying audited 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. | ||||||||||||
2014 Out-Of-Period Adjustments | ||||||||||||
Included in the results of operations for the year ended October 31, 2014, are out-of-period adjustments, which represent corrections of prior-period errors. The correction of prior-period errors for the year ended October 31, 2014 was not material to the current period and any of the prior periods. Included in the corrections were significant prior-period errors related to product warranties which resulted in a $36 million increase, primarily to the warranty liability and a corresponding increase primarily in Costs of products sold. | ||||||||||||
As disclosed in Item 9A. Controls and Procedures, we concluded that a material weakness exists surrounding the validation of the completeness and accuracy of underlying data used in the determination of significant accounting estimates and accounting transactions. Specifically, controls were not designed to identify errors in the underlying data which was used to calculate warranty cost estimates and other significant accounting estimates and the accounting effects of significant transactions. As part of our remediation efforts for our material weakness, we performed substantive procedures to date that identified incomplete data used in calculating our warranty accrual. | ||||||||||||
2013 Out-Of-Period Adjustments | ||||||||||||
Included in the results of operations for the year ended October 31, 2013 are out-of-period adjustments, which represent corrections of prior-period errors related to the accounting for certain sales transactions. In March 2010, we entered into an operating agreement with GE Capital Corporation and GE Capital Commercial, Inc. (collectively "GE"). Under the terms of the agreement, GE became our preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. We provide GE a loss sharing arrangement for certain credit losses. The determination was made that certain sales that were ultimately financed by GE did not qualify for revenue recognition, as we retained substantial risks of ownership in the leased property. As a result, the transactions should have been accounted for as borrowings, resulting in the proceeds from the transfer being recorded as an obligation and amortized to revenue over the term of the financing. In addition, the equipment financing should have been accounted for as operating leases with the equipment transferred from inventory to equipment leased to others and depreciated over the term of the financing. | ||||||||||||
Correcting the errors for the year ended October 31, 2013, which were not material to any of the prior periods, resulted in an $8 million increase to Net loss in our Consolidated Statements of Operations. The impact of the correction on our results for the year ended October 31, 2013 related to prior periods includes: (i) a $113 million net decrease to both Sales of manufactured products, net and Costs of products sold, which also included $37 million of additional depreciation expense, and (ii) an $8 million increase to Interest expense. In addition, in our Consolidated Statements of Cash Flows we recognized Purchases of equipment leased to others of $184 million and Proceeds from financed lease obligations of $201 million related to periods prior to fiscal 2013. The impact of the corrections was not material to any of our Consolidated Balance Sheets. | ||||||||||||
Variable Interest Entities | Variable Interest Entities | |||||||||||
We have an interest in several VIEs, primarily joint ventures, established to manufacture or distribute products and enhance our operational capabilities. We have determined for certain of our VIEs that we are the primary beneficiary because we have the power to direct the activities of the VIE that most significantly impact its economic performance and we have the obligation to absorb losses of, or the right to receive benefits from the VIE that could potentially be significant to the VIE. Accordingly, we include in our consolidated financial statements the assets and liabilities and results of operations of those entities, even though we may not own a majority voting interest. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather they represent claims against the specific assets of these VIEs. Assets of these entities are not readily available to satisfy claims against our general assets. | ||||||||||||
We are the primary beneficiary of our Blue Diamond Parts ("BDP") and Blue Diamond Truck ("BDT") joint ventures with Ford. As a result, our Consolidated Balance Sheets include assets of $297 million and $323 million and liabilities of $250 million and $188 million as of October 31, 2014 and October 31, 2013, respectively, from BDP and BDT, including $77 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, and in October 2014, Ford and the Company agreed to extend the BDT joint venture through April 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 October 31, 2014 and October 31, 2013, respectively, and liabilities of $896 million and $778 million as of October 31, 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 $156 million and $61 million and corresponding liabilities of $54 million and $49 million as of October 31, 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 VIEs are required to make principal and interest payments. Investors in securitizations of these entities have no recourse to our general credit. | ||||||||||||
We also have an interest in other VIEs, which we do not consolidate because we are not the primary beneficiary. Our financial support and maximum loss exposure relating to these non-consolidated VIEs are not material to our financial condition, results of operations, or cash flows. | ||||||||||||
We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in income of non-consolidated affiliates includes our share of the net income of these entities. | ||||||||||||
Variable Interest Entities | ||||||||||||
We have an interest in several VIEs, primarily joint ventures, established to manufacture or distribute products and enhance our operational capabilities. We have determined for certain of our VIEs that we are the primary beneficiary because we have the power to direct the activities of the VIE that most significantly impact its economic performance and we have the obligation to absorb losses of, or the right to receive benefits from the VIE that could potentially be significant to the VIE. Accordingly, we include in our consolidated financial statements the assets and liabilities and results of operations of those entities, even though we may not own a majority voting interest. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather they represent claims against the specific assets of these VIEs. Assets of these entities are not readily available to satisfy claims against our general assets. | ||||||||||||
We are the primary beneficiary of our Blue Diamond Parts ("BDP") and Blue Diamond Truck ("BDT") joint ventures with Ford. As a result, our Consolidated Balance Sheets include assets of $297 million and $323 million and liabilities of $250 million and $188 million as of October 31, 2014 and October 31, 2013, respectively, from BDP and BDT, including $77 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, and in October 2014, Ford and the Company agreed to extend the BDT joint venture through April 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 October 31, 2014 and October 31, 2013, respectively, and liabilities of $896 million and $778 million as of October 31, 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 $156 million and $61 million and corresponding liabilities of $54 million and $49 million as of October 31, 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 VIEs are required to make principal and interest payments. Investors in securitizations of these entities have no recourse to our general credit. | ||||||||||||
We also have an interest in other VIEs, which we do not consolidate because we are not the primary beneficiary. Our financial support and maximum loss exposure relating to these non-consolidated VIEs are not material to our financial condition, results of operations, or cash flows. | ||||||||||||
We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in income of non-consolidated affiliates includes our share of the net income of these entities. | ||||||||||||
Equity Method Investments, Policy [Policy Text Block] | We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in income of non-consolidated affiliates includes our share of the net income of these entities. | |||||||||||
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 October 31, 2014, approximately 6,100, or 70%, of our hourly workers and approximately 300, or 5%, of our salaried workers are represented by labor unions and are covered by collective bargaining agreements. Our current collective bargaining agreement with the UAW expired in October 2014 and we are currently operating under an extension of that agreement during our collective bargaining negotiations with the UAW. 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). | ||||||||||||
Revenue Recognition | ||||||||||||
Our Manufacturing operations recognize revenue when we meet four basic criteria: (i) persuasive evidence that a customer arrangement exists, (ii) the price is fixed or determinable, (iii) collectability is reasonably assured, and (iv) delivery of product has occurred or services have been rendered. Sales are generally recognized when risk of ownership passes. | ||||||||||||
Sales to fleet customers and governmental entities are recognized in accordance with the terms of each contract. Revenue on certain customer requested bill and hold arrangements is not recognized until after the customer is notified that the product (i) has been completed according to customer specifications, (ii) has passed our quality control inspections, and (iii) is ready for delivery based upon the established delivery terms and risk of loss has transferred. | ||||||||||||
An allowance for sales returns is recorded as a reduction to revenue based upon estimates using historical information about returns. For the sale of service parts that include a core component, we record revenue on a gross basis including the fair market value of the core. A core component is the basic forging or casting, such as an engine block, that can be remanufactured by a certified remanufacturing supplier. When a dealer returns a core within the specified eligibility period, we provide a core return credit, which is applied to the customer's account balance. At times, we may mark up the core charge beyond the amount we are charged by the supplier. This mark-up is recorded as a liability, as it represents the amount that will be paid to the dealer upon return of the core component and is in excess of the fair value to be received from the supplier. | ||||||||||||
Concurrent with our recognition of revenue, we recognize price allowances and the cost of incentive programs in the normal course of business based on programs offered to dealers or fleet customers. Estimates are made for sales incentives on certain vehicles in dealer stock inventory when special programs that provide specific incentives to dealers are offered in order to facilitate sales to end customers. | ||||||||||||
Truck sales to the U.S. and foreign governments, of non-commercial products manufactured to government specifications, are recognized using the units-of-delivery measure under the percentage-of-completion accounting method as units are delivered and accepted by the government. | ||||||||||||
Certain terms or modifications to U.S. and foreign government contracts may be unpriced; that is, the work to be performed is defined, but the related contract price is to be negotiated at a later date. In situations where we can reliably estimate a profit margin in excess of costs incurred, revenue and gross margin are recorded for delivered contract items. Otherwise, revenue is recognized when the price has been agreed with the government and costs are deferred when it is probable that the costs will be recovered. | ||||||||||||
Shipping and handling amounts billed to our customers are included in Sales of manufactured products, net and the related shipping and handling costs incurred are included in Costs of products sold. | ||||||||||||
Financial Services operations recognize revenue from retail notes, finance leases, wholesale notes, retail accounts, and wholesale accounts as Finance revenues over the term of the receivables utilizing the effective interest method. Certain direct origination costs and fees are deferred and recognized as adjustments to yield and are reported as part of interest income over the life of the receivable. Loans are considered to be impaired when we conclude it is probable the customer will not be able to make full payment after reviewing the customer's financial performance, payment ability, capital-raising potential, management style, economic situation, and other factors. The accrual of interest on such loans is discontinued when the loan becomes 90 days or more past due. Finance revenues on these loans are recognized only to the extent cash payments are received. We resume accruing interest on these accounts when payments are current according to the terms of the loans and future payments are reasonably assured. | ||||||||||||
Operating lease revenues are recognized on a straight-line basis over the life of the lease. Recognition of revenue is suspended when management determines the collection of future revenue is not probable. Recognition of revenue is resumed if collection again becomes probable. | ||||||||||||
Selected receivables are securitized and sold to public and private investors with limited recourse. Our Financial Services operations continue to service the sold receivables and receive fees for such services. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
All highly liquid financial instruments with original maturities of 90 days or less, consisting primarily of U.S. Treasury bills, federal agency securities, and commercial paper, are classified as cash equivalents. | ||||||||||||
Restricted cash is related to our securitized facilities, senior and subordinated floating rate asset-backed notes, wholesale trust agreements, indentured trust agreements, letters of credit, Environmental Protection Agency requirements, and workers compensation requirements. The restricted cash and cash equivalents for our securitized facilities is restricted to pay interest expense, principal, or other amounts associated with our securitization agreements. | ||||||||||||
Marketable Securities | ||||||||||||
Marketable securities consist of available-for-sale securities and are measured and reported at fair value. The difference between amortized cost and fair value is recorded as a component of Accumulated other comprehensive loss ("AOCL") in Stockholders' Deficit, net of taxes. Most securities with remaining maturities of less than twelve months and other investments needed for current cash requirements are classified as current in our Consolidated Balance Sheets. Gains and losses on the sale of marketable securities are determined using the specific identification method and are recorded in Other (income) expense, net. | ||||||||||||
We evaluate our investments in marketable securities at the end of each reporting period to determine if a decline in fair value is other than temporary. When a decline in fair value is determined to be other than temporary, an impairment charge is recorded and a new cost basis in the investment is established. Our marketable securities are classified as Level 1 in the fair value hierarchy. | ||||||||||||
Derivative Instruments | ||||||||||||
We utilize derivative instruments to manage certain exposure to changes in foreign currency exchange rates, interest rates, and commodity prices. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these derivative instruments are recognized in our operating results or included in AOCL, depending on whether the derivative instrument is a fair value or cash flow hedge and whether it qualifies for hedge accounting treatment. The Company elected to apply the normal purchase and normal sale exclusion to certain commodity contracts that are entered into to be used in production within a reasonable time during the normal course of business. For the years ended October 31, 2014, 2013, and 2012, none of our derivatives qualified for hedge accounting and all changes in the fair value of our derivatives, except for those qualifying under the normal purchases and normal sales exception, were recognized in our operating results. | ||||||||||||
Gains and losses on derivative instruments are recognized in Costs of products sold, Interest expense, or Other (income) expense, net depending on the underlying exposure. The exchange of cash associated with derivative transactions is classified in the Consolidated Statements of Cash Flows in the same category as the cash flows from the items subject to the economic hedging relationships. | ||||||||||||
Trade and Finance Receivables | ||||||||||||
Trade Receivables | ||||||||||||
Trade accounts receivable and trade notes receivable primarily arise from sales of goods to independently owned and operated dealers, original equipment manufacturers ("OEMs"), and commercial customers in the normal course of business. | ||||||||||||
Finance Receivables | ||||||||||||
Finance receivables consist of the following: | ||||||||||||
• | Retail notes—Retail notes primarily consist of fixed rate loans to commercial customers to facilitate their purchase of new and used trucks, trailers, and related equipment. | |||||||||||
• | Finance leases—Finance leases consist of direct financing leases to commercial customers for acquisition of new and used trucks, trailers, and related equipment. | |||||||||||
• | Wholesale notes—Wholesale notes primarily consist of variable rate loans to our dealers for the purchase of new and used trucks, trailers, and related equipment. | |||||||||||
• | Retail accounts—Retail accounts consist of short-term accounts receivable that finance the sale of products to commercial customers. | |||||||||||
• | Wholesale accounts—Wholesale accounts consist of short-term accounts receivable primarily related to the sales of items other than trucks, trailers, and related equipment (e.g. service parts) to dealers. | |||||||||||
Finance receivables are classified as held-to-maturity and are recorded at gross value less unearned income and are reported net of allowances for doubtful accounts. Unearned revenue is amortized to revenue over the life of the receivable using the effective interest method. Our Financial Services operations purchase the majority of the wholesale notes receivable and some retail notes and accounts receivable arising from our Manufacturing operations. The Financial Services operations retain as collateral a security interest in the equipment associated with retail notes, wholesale notes, and finance leases. | ||||||||||||
Sales of Finance Receivables | ||||||||||||
We sell finance receivables using a process commonly known as securitization, whereby asset-backed securities are sold via public offering or private placement. None of our securitization and receivable sale arrangements qualify for sales accounting or off-balance sheet treatment. As a result, the transferred receivables and the associated secured borrowings are included in our Consolidated Balance Sheets and no gain or loss is recorded for the sale. | ||||||||||||
We also act as servicer of transferred receivables. The servicing duties include collecting payments on receivables and preparing monthly investor reports on the performance of the receivables that are used by the trustee to distribute monthly interest and principal payments to investors. While servicing the receivables, we apply the same servicing policies and procedures that are applied to our owned receivables. | ||||||||||||
Allowance for Doubtful Accounts | ||||||||||||
An allowance for doubtful accounts is established through a charge to Selling, general and administrative expenses. The allowance is an estimate of the amount required to absorb probable losses on trade and finance receivables that may become uncollectible. The receivables are charged off when amounts due are determined to be uncollectible. | ||||||||||||
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. As the initial measurement attributes and the monitoring and assessment of credit risk or the performance of the receivables are consistent within each of our receivable portfolios, we determined that each portfolio consisted of one class of receivable. | ||||||||||||
Impaired receivables are specifically identified and segregated from the remaining portfolio. The expected loss on impaired receivables is fully reserved in a separate calculation as a specific reserve based on the unique ability of the customer to pay and the estimated value of the collateral. The historical loss experience and portfolio quality trends of the retail portfolio segment compared to the wholesale portfolio segment are inherently different. A specific reserve on impaired retail receivables is recorded if the estimated fair value of the underlying collateral, net of selling costs, is less than the principal balance of the receivable. We calculate a general reserve on the remaining loan portfolio by applying loss ratios which are determined using actual loss experience and customer payment history, in conjunction with current economic and portfolio quality trends. In addition, we analyze specific economic indicators such as tonnage, fuel prices, and gross domestic product for additional insight into the overall state of the economy and its potential impact on our portfolio. | ||||||||||||
To establish a specific reserve for impaired wholesale receivables, we consider the same factors discussed above but also consider the financial strength of the dealer and key management, the timeliness of payments, the number and location of satellite locations, the number of dealers of competitor manufacturers in the market area, the type of equipment normally financed, and the seasonality of the business. | ||||||||||||
Repossessions | ||||||||||||
Gains or losses arising from the sale of repossessed collateral supporting finance receivables and operating leases are recognized in Selling, general and administrative expenses. Repossessed assets are recorded within Inventories at the lower of historical cost or fair value, less estimated costs to sell. | ||||||||||||
Inventories | ||||||||||||
Inventories are valued at the lower of cost or market. Cost is principally determined using the first-in, first-out ("FIFO") method. | ||||||||||||
Property and Equipment | ||||||||||||
We report land, buildings, leasehold improvements, machinery and equipment (including tooling and pattern equipment), furniture, fixtures, and equipment, and equipment leased to others at cost, net of depreciation. We initially record assets under capital lease obligations at the lower of their fair value or the present value of the aggregate future minimum lease payments. We depreciate our assets using the straight-line method over the shorter of the lease term or the estimated useful lives of the assets. | ||||||||||||
The ranges of estimated useful lives are as follows: | ||||||||||||
Years | ||||||||||||
Buildings | 20 - 50 | |||||||||||
Leasehold improvements | 20-Mar | |||||||||||
Machinery and equipment | 12-Mar | |||||||||||
Furniture, fixtures, and equipment | 15-Mar | |||||||||||
Equipment leased to others | 10-Jan | |||||||||||
Long-lived assets are evaluated periodically to determine if adjustment to the depreciation and amortization period or to the unamortized balance is warranted. Such evaluation is based principally on the expected utilization of the long-lived assets. | ||||||||||||
We depreciate trucks, tractors, and trailers leased to customers under operating lease agreements on a straight-line basis to the equipment's estimated residual value over the lease term. The residual values of the equipment represent estimates of the value of the assets at the end of the lease contracts and are initially recorded based on estimates of future market values. Realization of the residual values is dependent on our future ability to market the equipment. We review residual values periodically to determine that recorded amounts are appropriate and the equipment has not been impaired. | ||||||||||||
Maintenance and repairs of property and equipment are expensed as incurred. We capitalize replacements and improvements that increase the estimated useful life or productive capacity of an asset and we capitalize interest on major construction and development projects while in progress. | ||||||||||||
Gains or losses on disposition of property and equipment are recognized in Other (income) expense, net. | ||||||||||||
We test for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset or asset group (hereinafter referred to as "asset group") may not be recoverable by comparing the sum of the estimated undiscounted future cash flows expected to result from the operation of the asset group and its eventual disposition to the carrying value. If the sum of the undiscounted future cash flows is less than the carrying value, the fair value of the asset group is determined. The amount of impairment is calculated by subtracting the fair value of the asset group from the carrying value of the asset group. | ||||||||||||
Included in equipment leased to others are trucks that we produced or acquired to lease to customers as well as equipment that is financed by GE that does not qualify for revenue recognition, as we retained substantial risks of ownership in the leased property, which are accounted for as operating leases and borrowings, respectively. In the Consolidated Statement of Cash Flows the related expenditures are reflected as the Purchases of equipment leased to others in the investing section. | ||||||||||||
Goodwill and Other 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. | ||||||||||||
Intangible assets subject to amortization are also evaluated for impairment periodically or when indicators of impairment are determined to exist. We test for impairment of intangible assets, subject to amortization, by comparing the sum of the estimated undiscounted future cash flows expected to result from the operation of the asset group and its eventual disposition to the carrying value. If the sum of the undiscounted future cash flows is less than the carrying value, the fair value of the asset group is determined. The amount of impairment is calculated by subtracting the fair value of the asset group from the carrying value of the asset group. Intangible assets, subject to amortization, could become impaired in the future or require additional charges as a result of declines in profitability due to changes in volume, market pricing, cost, manner in which an asset is used, physical condition of an asset, laws and regulations, or the business environment. We amortize the cost of intangible assets over their respective estimated useful lives, generally on a straight-line basis. | ||||||||||||
The ranges for the amortization periods are generally as follows: | ||||||||||||
Years | ||||||||||||
Customer base and relationships | 3 - 15 | |||||||||||
Trademarks | 20 | |||||||||||
Other | 3 - 18 | |||||||||||
Investments in Non-consolidated Affiliates | ||||||||||||
Equity method investments are recorded at original cost and adjusted periodically to recognize (i) our proportionate share of the investees' net income or losses after the date of investment, (ii) additional contributions made and dividends or distributions received, and (iii) impairment losses resulting from adjustments to fair value. | ||||||||||||
We assess the potential impairment of our equity method investments and determine fair value based on valuation methodologies, as appropriate, including the present value of estimated future cash flows, estimates of sales proceeds, and market multiples. If an investment is determined to be impaired and the decline in value is other than temporary, we record an appropriate write-down. | ||||||||||||
Debt Issuance Costs | ||||||||||||
We amortize debt issuance costs, discounts and premiums over the remaining life of the related debt using the effective interest method. The related income or expense is included in Interest expense. We record discounts or premiums as a direct deduction from, or addition to, the face amount of the debt. | ||||||||||||
Pensions and Postretirement Benefits | ||||||||||||
We use actuarial methods and assumptions to account for our pension plans and other postretirement benefit plans. Pension and other postretirement benefits expense includes the actuarially computed cost of benefits earned during the current service period, the interest cost on accrued obligations, the expected return on plan assets, the straight-line amortization of net actuarial gains and losses and plan amendments, and adjustments due to settlements and curtailments. | ||||||||||||
Engineering and Product Development Costs | ||||||||||||
Engineering and product development costs arise from ongoing costs associated with improving existing products and manufacturing processes and for the introduction of new truck and engine components and products, and are expensed as incurred. | ||||||||||||
Advertising Costs | ||||||||||||
Advertising costs are expensed as incurred and are included in Selling, general and administrative expenses. These costs totaled $39 million, $48 million, and $78 million for the years ended October 31, 2014, 2013, and 2012, respectively. | ||||||||||||
Contingency Accruals | ||||||||||||
We accrue for loss contingencies associated with outstanding litigation for which we have determined it is probable that a loss has occurred and the amount of loss can be reasonably estimated. Our asbestos, product liability, environmental, and workers compensation accruals also include estimated future legal fees associated with the loss contingencies, as we believe we can reasonably estimate those costs. In all other instances, legal fees are expensed as incurred. These expenses may be recorded in Costs of products sold, Selling, general and administrative expenses, or Other (income) expense, net. These estimates are based on our expectations of the scope, length to complete, and complexity of the claims. In the future, additional adjustments may be recorded as the scope, length, or complexity of outstanding litigation changes. | ||||||||||||
Warranty | ||||||||||||
We generally offer one to five-year warranty coverage for our truck, bus, and engine products, as well as our service parts. Terms and conditions vary by product, customer, and country. We accrue warranty related costs under standard warranty terms and for certain claims outside the contractual obligation period that we choose to pay as accommodations to our customers. | ||||||||||||
Our warranty estimates are established using historical information about the nature, frequency, timing, and average cost of warranty claims. Warranty claims are influenced by numerous factors, including new product introductions, technological developments, the competitive environment, the design and manufacturing process, and the complexity and related costs of component parts. We estimate our warranty accrual for our engines and trucks based on engine types and model years. Our warranty accruals take into account the projected ultimate cost-per-unit ("CPU") utilizing historical claims information. The CPU represents the total cash projected to be spent for warranty claims for a particular model year during the warranty period, divided by the number of units sold. The projection of the ultimate CPU is affected by component failure rates, repair costs, and the timing of failures in the product life cycle. Warranty claims inherently have a high amount of variability in timing and severity and can be influenced by external factors. Our warranty estimation process takes into consideration numerous variables that contribute to the precision of the estimate, but also add to the complexity of the model. Including numerous variables also reduces the sensitivity of the model to any one variable. We perform periodic reviews of warranty spend data to allow for timely consideration of the effects on warranty accruals. We also utilize actuarial analysis in order to determine whether our accrual estimate falls within a reasonable range. | ||||||||||||
Initial warranty estimates for new model year products are based on the previous model year product's warranty experience until the new product progresses sufficiently through its life cycle and related claims data becomes mature. Historically, warranty claims experience for launch-year products has been higher compared to the prior model-year engines; however, over time we have been able to refine both the design and manufacturing process to reduce both the volume and the severity of warranty claims. New product launches require a greater use of judgment in developing estimates until historical experience becomes available. | ||||||||||||
We record adjustments to pre-existing warranties for changes in our estimate of warranty costs for products sold in prior fiscal years. Such adjustments typically occur when claims experience deviates from historic and expected trends. In 2014, we recognized additional charges for adjustments to pre-existing warranties of $55 million. Future events and circumstances could materially change these estimates and require additional adjustments to our liability. | ||||||||||||
When we identify cost effective opportunities to address issues in products sold or corrective actions for safety issues, we initiate product recalls or field campaigns. As a result of the uncertainty surrounding the nature and frequency of product recalls and field campaigns, the liability for such actions are generally recorded when we commit to a product recall or field campaign. Included in 2014 warranty expense was $13 million of charges related to field campaigns we initiated to address issues in products sold, as compared to $88 million and $130 million in 2013 and 2012, respectively. The charges were primarily recognized as adjustments to pre-existing warranties. As we continue to identify opportunities to improve the design and manufacturing of our engines we may incur additional charges for product recalls and field campaigns to address identified issues. | ||||||||||||
Optional extended warranty contracts can be purchased for periods ranging from one to ten years. Warranty revenues related to extended warranty contracts are amortized to income, over the life of the contract using the straight-line method. Costs under extended warranty contracts are expensed as incurred. We recognize losses on extended warranty contracts when the expected costs under the contracts exceed related unearned revenue. | ||||||||||||
When collection is reasonably assured, we also estimate the amount of warranty claim recoveries to be received from our suppliers and record them in Other current assets and Other noncurrent assets. Recoveries related to specific product recalls, in which a supplier confirms its liability under the recall, are recorded in Trade and other receivables, net. Warranty costs and recoveries are included in Costs of products sold. | ||||||||||||
Although we believe that the estimates and judgments discussed herein are reasonable, actual results could differ and we may be exposed to increases or decreases in our warranty accrual that could be material. | ||||||||||||
Investments in Non-consolidated Affiliates | ||||||||||||
Equity method investments are recorded at original cost and adjusted periodically to recognize (i) our proportionate share of the investees' net income or losses after the date of investment, (ii) additional contributions made and dividends or distributions received, and (iii) impairment losses resulting from adjustments to fair value. | ||||||||||||
We assess the potential impairment of our equity method investments and determine fair value based on valuation methodologies, as appropriate, including the present value of estimated future cash flows, estimates of sales proceeds, and market multiples. If an investment is determined to be impaired and the decline in value is other than temporary, we record an appropriate write-down. | ||||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates | |||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, pension and other postretirement benefits, allowance for doubtful accounts, income tax contingency accruals and valuation allowances, product warranty accruals, asbestos and other product liability accruals, asset impairment charges, and litigation-related accruals. Actual results could differ from our estimates. | ||||||||||||
Product Warranty Liability | Product Warranty Liability | |||||||||||
The following table presents accrued product warranty and deferred warranty revenue activity: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Balance at beginning of period | $ | 1,349 | $ | 1,118 | $ | 598 | ||||||
Costs accrued and revenues deferred | 302 | 469 | 575 | |||||||||
Divestitures | — | (3 | ) | — | ||||||||
Currency translation adjustment | (4 | ) | (2 | ) | (4 | ) | ||||||
Adjustments to pre-existing warranties(A)(B) | 55 | 404 | 404 | |||||||||
Payments and revenues recognized | (505 | ) | (637 | ) | (455 | ) | ||||||
Balance at end of period | 1,197 | 1,349 | 1,118 | |||||||||
Less: Current portion | 535 | 601 | 551 | |||||||||
Noncurrent accrued product warranty and deferred warranty revenue | $ | 662 | $ | 748 | $ | 567 | ||||||
_________________________ | ||||||||||||
(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. In the third quarter of 2014, we recognized a benefit for adjustments to pre-existing warranties of $(29) million, or $(0.36) per diluted share. Included in the 2014 adjustments is a $36 million correction of prior-period errors, primarily related to pre-existing warranties. For more information on the errors identified, see 2014 Out-of-Period Adjustments. 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. In the third quarter of 2013, we recorded adjustments for changes in estimates of $48 million, or $0.60 per diluted share. In the fourth quarter of 2013, we recorded adjustments for changes in estimates of $152 million, or $1.89 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. | ||||||||||||
In the first quarter of 2012, we recorded adjustments for changes in estimates of $123 million, or $1.76 per diluted share. In the second quarter of 2012, we recorded adjustments for changes in estimates of $104 million, or $1.51 per diluted share. In the fourth quarter of 2012, we recorded adjustments for changes in estimates of $149 million, or $2.16 per diluted share. | ||||||||||||
(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 Income (loss) from discontinued operations, net of tax and recorded a receivable within Other current assets. | |||||||||||
In the third quarter of 2012, we recognized $10 million of adjustments to pre-existing warranties for a specific warranty issue related to component parts from a supplier. Also during the quarter, we reached agreement for reimbursement from such supplier and recognized a recovery for that amount and recorded a receivable within Other current assets. | ||||||||||||
Extended Warranty Programs | ||||||||||||
The amount of deferred revenue related to extended warranty programs was $437 million, $420 million, and $364 million at October 31, 2014, 2013, and 2012 respectively. Revenue recognized under our extended warranty programs was $132 million, $87 million, and $63 million in the years ended October 31, 2014, 2013, and 2012 respectively. | ||||||||||||
In 2014, amounts recognized related to extended warranty contracts on our MaxxForce Big-Bore engines was not material to the Company's Consolidated Statements of Operations. | ||||||||||||
In 2013 we recognized net charges of $161 million related to extended warranty contracts on our MaxxForce Big-Bore engines, which includes charges of $127 million related to pre-existing warranties. | ||||||||||||
In 2012 we recognized net charges of $66 million for losses on extended warranty contracts for our 2010 emissions standard MaxxForce Big-Bore engines. The net charges included $19 million related to contracts sold in 2012 and $47 million recognized as adjustments to pre-existing warranties. Future warranty experience, pricing of extended warranty contracts, and external market factors may cause us to recognize additional charges as losses on extended service contracts in future periods. | ||||||||||||
Stock-based | ||||||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other 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. | ||||||||||||
Intangible assets subject to amortization are also evaluated for impairment periodically or when indicators of impairment are determined to exist. We test for impairment of intangible assets, subject to amortization, by comparing the sum of the estimated undiscounted future cash flows expected to result from the operation of the asset group and its eventual disposition to the carrying value. If the sum of the undiscounted future cash flows is less than the carrying value, the fair value of the asset group is determined. The amount of impairment is calculated by subtracting the fair value of the asset group from the carrying value of the asset group. Intangible assets, subject to amortization, could become impaired in the future or require additional charges as a result of declines in profitability due to changes in volume, market pricing, cost, manner in which an asset is used, physical condition of an asset, laws and regulations, or the business environment. We amortize the cost of intangible assets over their respective estimated useful lives, generally on a straight-line basis. | ||||||||||||
The ranges for the amortization periods are generally as follows: | ||||||||||||
Years | ||||||||||||
Customer base and relationships | 3 - 15 | |||||||||||
Trademarks | 20 | |||||||||||
Other | 3 - 18 | |||||||||||
Recently Issued and Adopted Accounting Standards | Recently Adopted Accounting Standards | |||||||||||
In the year ended October 31, 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 and method of adoption of this ASU on our consolidated financial statements. | ||||||||||||
Concentration Risk Disclosure [Text Block] | Concentration Risks | |||||||||||
Our financial condition, results of operations, and cash flows are subject to concentration risks related to concentrations of our union employees. As of October 31, 2014, approximately 6,100, or 70%, of our hourly workers and approximately 300, or 5%, of our salaried workers are represented by labor unions and are covered by collective bargaining agreements. Our current collective bargaining agreement with the UAW expired in October 2014 and we are currently operating under an extension of that agreement during our collective bargaining negotiations with the UAW. 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). | ||||||||||||
Reclassification, Policy [Policy Text Block] | 2014 Out-Of-Period Adjustments | |||||||||||
Included in the results of operations for the year ended October 31, 2014, are out-of-period adjustments, which represent corrections of prior-period errors. The correction of prior-period errors for the year ended October 31, 2014 was not material to the current period and any of the prior periods. Included in the corrections were significant prior-period errors related to product warranties which resulted in a $36 million increase, primarily to the warranty liability and a corresponding increase primarily in Costs of products sold. | ||||||||||||
As disclosed in Item 9A. Controls and Procedures, we concluded that a material weakness exists surrounding the validation of the completeness and accuracy of underlying data used in the determination of significant accounting estimates and accounting transactions. Specifically, controls were not designed to identify errors in the underlying data which was used to calculate warranty cost estimates and other significant accounting estimates and the accounting effects of significant transactions. As part of our remediation efforts for our material weakness, we performed substantive procedures to date that identified incomplete data used in calculating our warranty accrual. | ||||||||||||
2013 Out-Of-Period Adjustments | ||||||||||||
Included in the results of operations for the year ended October 31, 2013 are out-of-period adjustments, which represent corrections of prior-period errors related to the accounting for certain sales transactions. In March 2010, we entered into an operating agreement with GE Capital Corporation and GE Capital Commercial, Inc. (collectively "GE"). Under the terms of the agreement, GE became our preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. We provide GE a loss sharing arrangement for certain credit losses. The determination was made that certain sales that were ultimately financed by GE did not qualify for revenue recognition, as we retained substantial risks of ownership in the leased property. As a result, the transactions should have been accounted for as borrowings, resulting in the proceeds from the transfer being recorded as an obligation and amortized to revenue over the term of the financing. In addition, the equipment financing should have been accounted for as operating leases with the equipment transferred from inventory to equipment leased to others and depreciated over the term of the financing. | ||||||||||||
Correcting the errors for the year ended October 31, 2013, which were not material to any of the prior periods, resulted in an $8 million increase to Net loss in our Consolidated Statements of Operations. The impact of the correction on our results for the year ended October 31, 2013 related to prior periods includes: (i) a $113 million net decrease to both Sales of manufactured products, net and Costs of products sold, which also included $37 million of additional depreciation expense, and (ii) an $8 million increase to Interest expense. In addition, in our Consolidated Statements of Cash Flows we recognized Purchases of equipment leased to others of $184 million and Proceeds from financed lease obligations of $201 million related to periods prior to fiscal 2013. The impact of the corrections was not material to any of our Consolidated Balance Sheets. | ||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment | |||||||||||
We report land, buildings, leasehold improvements, machinery and equipment (including tooling and pattern equipment), furniture, fixtures, and equipment, and equipment leased to others at cost, net of depreciation. We initially record assets under capital lease obligations at the lower of their fair value or the present value of the aggregate future minimum lease payments. We depreciate our assets using the straight-line method over the shorter of the lease term or the estimated useful lives of the assets. | ||||||||||||
The ranges of estimated useful lives are as follows: | ||||||||||||
Years | ||||||||||||
Buildings | 20 - 50 | |||||||||||
Leasehold improvements | 20-Mar | |||||||||||
Machinery and equipment | 12-Mar | |||||||||||
Furniture, fixtures, and equipment | 15-Mar | |||||||||||
Equipment leased to others | 10-Jan | |||||||||||
Long-lived assets are evaluated periodically to determine if adjustment to the depreciation and amortization period or to the unamortized balance is warranted. Such evaluation is based principally on the expected utilization of the long-lived assets. | ||||||||||||
We depreciate trucks, tractors, and trailers leased to customers under operating lease agreements on a straight-line basis to the equipment's estimated residual value over the lease term. The residual values of the equipment represent estimates of the value of the assets at the end of the lease contracts and are initially recorded based on estimates of future market values. Realization of the residual values is dependent on our future ability to market the equipment. We review residual values periodically to determine that recorded amounts are appropriate and the equipment has not been impaired. | ||||||||||||
Maintenance and repairs of property and equipment are expensed as incurred. We capitalize replacements and improvements that increase the estimated useful life or productive capacity of an asset and we capitalize interest on major construction and development projects while in progress. | ||||||||||||
Gains or losses on disposition of property and equipment are recognized in Other (income) expense, net. | ||||||||||||
We test for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset or asset group (hereinafter referred to as "asset group") may not be recoverable by comparing the sum of the estimated undiscounted future cash flows expected to result from the operation of the asset group and its eventual disposition to the carrying value. If the sum of the undiscounted future cash flows is less than the carrying value, the fair value of the asset group is determined. The amount of impairment is calculated by subtracting the fair value of the asset group from the carrying value of the asset group. | ||||||||||||
Included in equipment leased to others are trucks that we produced or acquired to lease to customers as well as equipment that is financed by GE that does not qualify for revenue recognition, as we retained substantial risks of ownership in the leased property, which are accounted for as operating leases and borrowings, respectively. In the Consolidated Statement of Cash Flows the related expenditures are reflected as the Purchases of equipment leased to others in the investing section. | ||||||||||||
Debt, Policy [Policy Text Block] | Debt Issuance Costs | |||||||||||
We amortize debt issuance costs, discounts and premiums over the remaining life of the related debt using the effective interest method. The related income or expense is included in Interest expense. We record discounts or premiums as a direct deduction from, or addition to, the face amount of the debt. | ||||||||||||
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Pensions and Postretirement Benefits | |||||||||||
We use actuarial methods and assumptions to account for our pension plans and other postretirement benefit plans. Pension and other postretirement benefits expense includes the actuarially computed cost of benefits earned during the current service period, the interest cost on accrued obligations, the expected return on plan assets, the straight-line amortization of net actuarial gains and losses and plan amendments, and adjustments due to settlements and curtailments. | ||||||||||||
Research and Development Expense, Policy [Policy Text Block] | Engineering and Product Development Costs | |||||||||||
Engineering and product development costs arise from ongoing costs associated with improving existing products and manufacturing processes and for the introduction of new truck and engine components and products, and are expensed as incurred. | ||||||||||||
Advertising Costs, Policy [Policy Text Block] | Advertising Costs | |||||||||||
Advertising costs are expensed as incurred and are included in Selling, general and administrative expenses. These costs totaled $39 million, $48 million, and $78 million for the years ended October 31, 2014, 2013, and 2012, respectively. | ||||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation | |||||||||||
We translate the financial statements of foreign subsidiaries whose local currency is their functional currency to U.S. dollars using period-end exchange rates for assets and liabilities and weighted average exchange rates for each period for revenues and expenses. Differences arising from exchange rate changes are included in the Foreign currency translation adjustment component of AOCL. | ||||||||||||
For foreign subsidiaries whose functional currency is the U.S. dollar, we remeasure non-monetary balance sheet accounts and the related income statement accounts at historical exchange rates. Gains and losses arising from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency are recognized in earnings as incurred. We recognized net foreign currency transaction losses of $21 million, $23 million, and $25 million in 2014, 2013, and 2012 respectively, which were recorded in Other (income) expense, net. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Oct. 31, 2014 | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Schedule intangibles amortization periods [Table Text Block] | ||||||||||||
Years | ||||||||||||
Customer base and relationships | 3 - 15 | |||||||||||
Trademarks | 20 | |||||||||||
Other | 3 - 18 | |||||||||||
Property, Plant and Equipment [Table Text Block] | The ranges of estimated useful lives are as follows: | |||||||||||
Years | ||||||||||||
Buildings | 20 - 50 | |||||||||||
Leasehold improvements | 20-Mar | |||||||||||
Machinery and equipment | 12-Mar | |||||||||||
Furniture, fixtures, and equipment | 15-Mar | |||||||||||
Equipment leased to others | 10-Jan | |||||||||||
Schedule of Accrued Product Warranty and Deferred Warranty Revenue | The following table presents accrued product warranty and deferred warranty revenue activity: | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Balance at beginning of period | $ | 1,349 | $ | 1,118 | $ | 598 | ||||||
Costs accrued and revenues deferred | 302 | 469 | 575 | |||||||||
Divestitures | — | (3 | ) | — | ||||||||
Currency translation adjustment | (4 | ) | (2 | ) | (4 | ) | ||||||
Adjustments to pre-existing warranties(A)(B) | 55 | 404 | 404 | |||||||||
Payments and revenues recognized | (505 | ) | (637 | ) | (455 | ) | ||||||
Balance at end of period | 1,197 | 1,349 | 1,118 | |||||||||
Less: Current portion | 535 | 601 | 551 | |||||||||
Noncurrent accrued product warranty and deferred warranty revenue | $ | 662 | $ | 748 | $ | 567 | ||||||
_________________________ | ||||||||||||
(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. In the third quarter of 2014, we recognized a benefit for adjustments to pre-existing warranties of $(29) million, or $(0.36) per diluted share. Included in the 2014 adjustments is a $36 million correction of prior-period errors, primarily related to pre-existing warranties. For more information on the errors identified, see 2014 Out-of-Period Adjustments. 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. In the third quarter of 2013, we recorded adjustments for changes in estimates of $48 million, or $0.60 per diluted share. In the fourth quarter of 2013, we recorded adjustments for changes in estimates of $152 million, or $1.89 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. | ||||||||||||
In the first quarter of 2012, we recorded adjustments for changes in estimates of $123 million, or $1.76 per diluted share. In the second quarter of 2012, we recorded adjustments for changes in estimates of $104 million, or $1.51 per diluted share. In the fourth quarter of 2012, we recorded adjustments for changes in estimates of $149 million, or $2.16 per diluted share. | ||||||||||||
(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 Income (loss) from discontinued operations, net of tax and recorded a receivable within Other current assets. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||||||
Oct. 31, 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: | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Sales and revenues, net | $ | — | $ | 73 | $ | 253 | ||||||
Income (loss) from discontinued operations (net of tax of $- in 2014, 2013, and 2012) | $ | 3 | $ | (41 | ) | $ | (71 | ) | ||||
Income (loss) from discontinued operations, net of tax | $ | 3 | $ | (41 | ) | $ | (71 | ) | ||||
Restructuring_and_Impairments_
Restructuring and Impairments (Tables) | 12 Months Ended | |||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||
Restructuring and Related Costs [Table Text Block] | The following table reconciles our impairment charges in our Consolidated Statements of Operations: | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Goodwill impairment charge(A) | $ | 142 | $ | 81 | $ | — | ||||||||||||||
Indefinite-lived intangible asset impairment charge | 7 | — | — | |||||||||||||||||
Other asset impairment charges related to continuing operations | 34 | 20 | 16 | |||||||||||||||||
Other asset impairment charges related to discontinued operations | — | 4 | 28 | |||||||||||||||||
Total asset impairment charges | $ | 183 | $ | 105 | $ | 44 | ||||||||||||||
The following table reconciles our restructuring charges in our Consolidated Statements of Operations: | ||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Restructuring charges related to continuing operations | $ | 42 | $ | 25 | $ | 107 | ||||||||||||||
Restructuring charges related to discontinued operations | — | — | 1 | |||||||||||||||||
Total restructuring charges | $ | 42 | $ | 25 | $ | 108 | ||||||||||||||
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 October 31, 2014 | |||||||||||||||
Employee termination charges | $ | 15 | $ | 15 | $ | (19 | ) | $ | (3 | ) | $ | 8 | ||||||||
Employee relocation costs | — | 1 | (1 | ) | — | — | ||||||||||||||
Lease vacancy | 18 | — | (8 | ) | 1 | 11 | ||||||||||||||
Other | 1 | 2 | (2 | ) | — | 1 | ||||||||||||||
Restructuring liability | $ | 34 | $ | 18 | $ | (30 | ) | $ | (2 | ) | $ | 20 | ||||||||
(in millions) | Balance at | Additions | Payments | Adjustments | Balance at October 31, 2013 | |||||||||||||||
October 31, 2012 | ||||||||||||||||||||
Employee termination charges | $ | 72 | $ | 12 | $ | (64 | ) | $ | (5 | ) | $ | 15 | ||||||||
Employee relocation costs | — | 3 | (3 | ) | — | — | ||||||||||||||
Lease vacancy | 17 | 6 | (9 | ) | 4 | 18 | ||||||||||||||
Other | — | 5 | (4 | ) | — | 1 | ||||||||||||||
Restructuring liability | $ | 89 | $ | 26 | $ | (80 | ) | $ | (1 | ) | $ | 34 | ||||||||
Finance_Receivables_Tables
Finance Receivables (Tables) | 12 Months Ended | |||||||||||
Oct. 31, 2014 | ||||||||||||
Receivables [Abstract] | ||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | As of October 31, our Finance receivables, net consist of the following: | |||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Retail portfolio | $ | 726 | $ | 751 | ||||||||
Wholesale portfolio | 1,339 | 1,207 | ||||||||||
Total finance receivables | 2,065 | 1,958 | ||||||||||
Less: Allowance for doubtful accounts | 27 | 23 | ||||||||||
Total finance receivables, net | 2,038 | 1,935 | ||||||||||
Less: Current portion, net(A) | 1,758 | 1,597 | ||||||||||
Noncurrent portion, net | $ | 280 | $ | 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. | |||||||||||
Schedule of Financing Receivables, Minimum Payments [Table Text Block] | As of October 31, 2014, contractual maturities of our finance receivables are as follows: | |||||||||||
(in millions) | Retail Portfolio | Wholesale Portfolio | Total | |||||||||
Due in: | ||||||||||||
2015 | $ | 468 | $ | 1,339 | $ | 1,807 | ||||||
2016 | 147 | — | 147 | |||||||||
2017 | 88 | — | 88 | |||||||||
2018 | 50 | — | 50 | |||||||||
2019 | 22 | — | 22 | |||||||||
Thereafter | 2 | — | 2 | |||||||||
Gross finance receivables | 777 | 1,339 | 2,116 | |||||||||
Unearned finance income | 51 | — | 51 | |||||||||
Total finance receivables | $ | 726 | $ | 1,339 | $ | 2,065 | ||||||
Finance Revenues Derived From Receivables [Table Text Block] | The following table presents the components of our Finance revenues: | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Retail notes and finance leases revenue | $ | 64 | $ | 78 | $ | 98 | ||||||
Wholesale notes interest | 80 | 77 | 87 | |||||||||
Operating lease revenue | 60 | 51 | 40 | |||||||||
Retail and wholesale accounts interest | 28 | 27 | 34 | |||||||||
Gross finance revenues | 232 | 233 | 259 | |||||||||
Less: Intercompany revenues | 79 | 75 | 91 | |||||||||
Finance revenues | $ | 153 | $ | 158 | $ | 168 | ||||||
Allowance_for_Doubtful_Account1
Allowance for Doubtful Accounts (Tables) | 12 Months Ended | |||||||||||||||||||||||
Oct. 31, 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: | |||||||||||||||||||||||
31-Oct-14 | ||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Trade and | Total | ||||||||||||||||||||
Portfolio | Portfolio | Other | ||||||||||||||||||||||
Receivables | ||||||||||||||||||||||||
Allowance for doubtful accounts, at beginning of period | $ | 21 | $ | 2 | $ | 37 | $ | 60 | ||||||||||||||||
Provision for doubtful accounts, net of recoveries(A) | 12 | 1 | 7 | 20 | ||||||||||||||||||||
Charge-off of accounts(B) | (9 | ) | — | (6 | ) | (15 | ) | |||||||||||||||||
Allowance for doubtful accounts, at end of period | $ | 24 | $ | 3 | $ | 38 | $ | 65 | ||||||||||||||||
31-Oct-13 | ||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Trade and | Total | ||||||||||||||||||||
Portfolio | Portfolio | Other | ||||||||||||||||||||||
Receivables | ||||||||||||||||||||||||
Allowance for doubtful accounts, at beginning of period | $ | 27 | $ | — | $ | 24 | $ | 51 | ||||||||||||||||
Provision for doubtful accounts, net of recoveries(A) | 4 | 2 | 14 | 20 | ||||||||||||||||||||
Charge-off of accounts(B) | (10 | ) | — | (1 | ) | (11 | ) | |||||||||||||||||
Allowance for doubtful accounts, at end of period | $ | 21 | $ | 2 | $ | 37 | $ | 60 | ||||||||||||||||
31-Oct-12 | ||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Trade and | Total | ||||||||||||||||||||
Portfolio | Portfolio | Other | ||||||||||||||||||||||
Receivables | ||||||||||||||||||||||||
Allowance for doubtful accounts, at beginning of period | $ | 31 | $ | 2 | $ | 17 | $ | 50 | ||||||||||||||||
Provision for doubtful accounts, net of recoveries(A) | 3 | (2 | ) | 13 | 14 | |||||||||||||||||||
Charge-off of accounts(B) | (7 | ) | — | (6 | ) | (13 | ) | |||||||||||||||||
Allowance for doubtful accounts, at end of period | $ | 27 | $ | — | $ | 24 | $ | 51 | ||||||||||||||||
________________________ | ||||||||||||||||||||||||
(A) | Amounts include currency translation. | |||||||||||||||||||||||
(B) | 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, $2 million, and $6 million in 2014, 2013, and 2012, respectively. | |||||||||||||||||||||||
Impaired Financing Receivables [Table Text Block] | The following table presents information regarding impaired finance receivables: | |||||||||||||||||||||||
31-Oct-14 | 31-Oct-13 | |||||||||||||||||||||||
(in millions) | Retail | Wholesale | Total | Retail | Wholesale | Total | ||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||||
Impaired finance receivables with specific loss reserves | $ | 20 | $ | — | $ | 20 | $ | 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 | 21 | — | 21 | 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: | |||||||||||||||||||||||
31-Oct-14 | ||||||||||||||||||||||||
(in millions) | Retail | Wholesale | Total | |||||||||||||||||||||
Portfolio | Portfolio | |||||||||||||||||||||||
Current, and up to 30 days past due | $ | 643 | $ | 1,333 | $ | 1,976 | ||||||||||||||||||
30-90 days past due | 64 | 2 | 66 | |||||||||||||||||||||
Over 90 days past due | 19 | 4 | 23 | |||||||||||||||||||||
Total finance receivables | $ | 726 | $ | 1,339 | $ | 2,065 | ||||||||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of inventories | As of October 31, the following table presents the components of Inventories: | |||||||
(in millions) | 2014 | 2013 | ||||||
Finished products | $ | 880 | $ | 692 | ||||
Work in process | 50 | 58 | ||||||
Raw materials | 389 | 460 | ||||||
Total inventories | $ | 1,319 | $ | 1,210 | ||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | |||||||||||
Oct. 31, 2014 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Schedule Of Property Plant And Equipment [Table Text Block] | As of October 31, Property and equipment, net included the following: | |||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Land | $ | 82 | $ | 87 | ||||||||
Buildings | 518 | 575 | ||||||||||
Leasehold improvements | 60 | 68 | ||||||||||
Machinery and equipment | 2,232 | 2,289 | ||||||||||
Furniture, fixtures, and equipment | 487 | 444 | ||||||||||
Equipment leased to others | 677 | 663 | ||||||||||
Construction in progress | 41 | 55 | ||||||||||
Total property and equipment, at cost | 4,097 | 4,181 | ||||||||||
Less: Accumulated depreciation and amortization | 2,535 | 2,440 | ||||||||||
Property and equipment, net | $ | 1,562 | $ | 1,741 | ||||||||
Schedule Of Equipment Leased To Others And Assets Under Financing Arrangements And Capital Lease Obligations [Table Text Block] | As of October 31, equipment leased to others and assets under financing arrangements and capital lease obligations are as follows: | |||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Equipment leased to others | $ | 677 | $ | 663 | ||||||||
Less: Accumulated depreciation | 210 | 191 | ||||||||||
Equipment leased to others, net | $ | 467 | $ | 472 | ||||||||
Buildings, machinery, and equipment under financing arrangements and capital lease obligations | $ | 70 | $ | 93 | ||||||||
Less: Accumulated depreciation and amortization | 32 | 31 | ||||||||||
Assets under financing arrangements and capital lease obligations, net | $ | 38 | $ | 62 | ||||||||
Schedule Of Depreciation Amortization Expenses And Interest Capitalized [Table Text Block] | For the years ended October 31, 2014, 2013, and 2012, depreciation expense, amortization expense related to assets under financing arrangements and capital lease obligations, and interest capitalized on construction projects are as follows: | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Depreciation expense | $ | 206 | $ | 260 | $ | 248 | ||||||
Depreciation of equipment leased to others | 105 | 135 | 46 | |||||||||
Amortization expense | 3 | — | 4 | |||||||||
Interest capitalized | — | 5 | 9 | |||||||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Future minimum lease payments at October 31, 2014, for those leases having an initial or remaining non-cancelable lease term in excess of one year and certain leases that are treated as finance lease obligations, are as follows: | |||||||||||
(in millions) | Financing | Operating | Total | |||||||||
Arrangements | Leases | |||||||||||
and Capital | ||||||||||||
Lease Obligations | ||||||||||||
2015 | $ | 11 | $ | 65 | $ | 76 | ||||||
2016 | 10 | 51 | 61 | |||||||||
2017 | 9 | 41 | 50 | |||||||||
2018 | 9 | 36 | 45 | |||||||||
2019 | 9 | 29 | 38 | |||||||||
Thereafter | 20 | 71 | 91 | |||||||||
68 | $ | 293 | $ | 361 | ||||||||
Less: Interest portion | 14 | |||||||||||
Total | $ | 54 | ||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible assets, Net (Tables) | 12 Months Ended | |||||||||||||||
Oct. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Schedule of Equity Method Investments, Summarized Financial Information, Balance Sheet [Table Text Block] | Changes in the carrying amount of goodwill for each operating segment are as follows: | |||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Total | ||||||||||||
As of October 31, 2011 | $ | 82 | $ | 38 | $ | 199 | $ | 319 | ||||||||
Currency translation | — | — | (33 | ) | (33 | ) | ||||||||||
Adjustments(A) | — | — | (6 | ) | (6 | ) | ||||||||||
As of October 31, 2012 | $ | 82 | $ | 38 | $ | 160 | $ | 280 | ||||||||
Impairments | (81 | ) | — | — | (81 | ) | ||||||||||
Currency translation | — | — | (12 | ) | (12 | ) | ||||||||||
Adjustments(A) | (1 | ) | — | (2 | ) | (3 | ) | |||||||||
As of October 31, 2013 | $ | — | $ | 38 | $ | 146 | $ | 184 | ||||||||
Impairments | — | — | (142 | ) | (142 | ) | ||||||||||
Currency translation | — | — | (4 | ) | (4 | ) | ||||||||||
As of October 31, 2014 | $ | — | $ | 38 | $ | — | $ | 38 | ||||||||
_________________________ | ||||||||||||||||
(A) | Adjustments to goodwill primarily result from the tax benefit attributable to the amortization of tax deductible goodwill in excess of goodwill recorded for financial statement purposes as measured in the IIAA balance sheet immediately after its acquisition in 2005. | |||||||||||||||
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | Information regarding our intangible assets that are not subject to amortization as of October 31 is as follows: | |||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||
Dealer franchise rights | $ | 1 | $ | 1 | ||||||||||||
Trademarks | 33 | 45 | ||||||||||||||
Intangible assets not subject to amortization | $ | 34 | $ | 46 | ||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Information regarding our intangible assets that are subject to amortization at October 31, is as follows: | |||||||||||||||
As of October 31, 2014 | ||||||||||||||||
(in millions) | Customer | Trademarks, Patents and Other | Total | |||||||||||||
Base and | ||||||||||||||||
Relationships | ||||||||||||||||
Gross carrying value | $ | 80 | $ | 85 | $ | 165 | ||||||||||
Accumulated amortization | (60 | ) | (49 | ) | (109 | ) | ||||||||||
Net of amortization | $ | 20 | $ | 36 | $ | 56 | ||||||||||
As of October 31, 2013 | ||||||||||||||||
(in millions) | Customer | Trademarks, Patents and Other | Total | |||||||||||||
Base and | ||||||||||||||||
Relationships | ||||||||||||||||
Gross carrying value | $ | 88 | $ | 101 | $ | 189 | ||||||||||
Accumulated amortization | (55 | ) | (42 | ) | (97 | ) | ||||||||||
Net of amortization | $ | 33 | $ | 59 | $ | 92 | ||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Future estimated amortization expense for our finite-lived intangible assets for the remaining years is as follows: | |||||||||||||||
(in millions) | Estimated | |||||||||||||||
Amortization | ||||||||||||||||
2015 | $ | 15 | ||||||||||||||
2016 | 12 | |||||||||||||||
2017 | 11 | |||||||||||||||
2018 | 7 | |||||||||||||||
2019 | 3 | |||||||||||||||
Thereafter | 8 | |||||||||||||||
Investments_in_NonConsolidated1
Investments in Non-Consolidated Affiliates (Tables) | 12 Months Ended | |||||||||||
Oct. 31, 2014 | ||||||||||||
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ||||||||||||
Schedule of Equity Method Investments, Summarized Financial Information, Balance Sheet [Table Text Block] | The following table summarizes 100% of the combined assets, liabilities, and equity of our equity method affiliates as of October 31: | |||||||||||
(Unaudited) | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Assets: | ||||||||||||
Current assets | $ | 252 | $ | 254 | ||||||||
Noncurrent assets | 130 | 50 | ||||||||||
Total assets | $ | 382 | $ | 304 | ||||||||
Liabilities and equity: | ||||||||||||
Current liabilities | $ | 191 | $ | 111 | ||||||||
Noncurrent liabilities | 12 | 8 | ||||||||||
Total liabilities | 203 | 119 | ||||||||||
Partners' capital and stockholders' equity: | ||||||||||||
NIC | 75 | 77 | ||||||||||
Third parties | 104 | 108 | ||||||||||
Total partners' capital and stockholders' equity | 179 | 185 | ||||||||||
Total liabilities and equity | $ | 382 | $ | 304 | ||||||||
Schedule of Equity Method Investment, Summarized Financial Information, Income Statement [Table Text Block] | The following table summarizes 100% of the combined results of operations of our equity method affiliates for the years ended October 31: | |||||||||||
(Unaudited) | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Net sales | $ | 527 | $ | 448 | $ | 704 | ||||||
Costs, expenses, and income tax expense | 500 | 412 | 726 | |||||||||
Net income (loss) | $ | 27 | $ | 36 | $ | (22 | ) | |||||
Schedule of transactions with affiliates [Table Text Block] | Amounts due to and due from our affiliates arising from the sale and purchase of products and services as of October 31, are as follows: | |||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Receivables due from affiliates | $ | 1 | $ | 23 | ||||||||
Payables due to affiliates | 30 | 32 | ||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||||
Oct. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Debt | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Manufacturing operations | ||||||||||||
Senior Secured Term Loan Credit Facility, as amended, due 2017, net of unamortized discount of $3 and $4, respectively | $ | 694 | $ | 693 | ||||||||
8.25% Senior Notes, due 2021, net of unamortized discount of $20 and $22, respectively | 1,180 | 1,178 | ||||||||||
3.00% Senior Subordinated Convertible Notes, paid 2014, net of unamortized discount of $26 | — | 544 | ||||||||||
4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $19 and $23, respectively | 181 | 177 | ||||||||||
4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $40 | 371 | — | ||||||||||
Debt of majority-owned dealerships | 30 | 48 | ||||||||||
Financing arrangements and capital lease obligations | 54 | 77 | ||||||||||
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040 | 225 | 225 | ||||||||||
Promissory Note | 10 | 20 | ||||||||||
Financed lease obligations | 184 | 218 | ||||||||||
Other | 29 | 39 | ||||||||||
Total Manufacturing operations debt | 2,958 | 3,219 | ||||||||||
Less: Current portion | 100 | 658 | ||||||||||
Net long-term Manufacturing operations debt | $ | 2,858 | $ | 2,561 | ||||||||
(in millions) | 2014 | 2013 | ||||||||||
Financial Services operations | ||||||||||||
Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2019 | $ | 914 | $ | 778 | ||||||||
Bank revolvers, at fixed and variable rates, due dates from 2014 through 2020 | 1,242 | 1,018 | ||||||||||
Commercial paper, at variable rates, program matures in 2015 | 74 | 21 | ||||||||||
Borrowings secured by operating and finance leases, at various rates, due serially through 2018 | 36 | 49 | ||||||||||
Total Financial Services operations debt | 2,266 | 1,866 | ||||||||||
Less: Current portion | 1,195 | 505 | ||||||||||
Net long-term Financial Services operations debt | $ | 1,071 | $ | 1,361 | ||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | The aggregate contractual annual maturities for debt as of October 31, 2014, are as follows: | |||||||||||
Manufacturing | Financial | Total | ||||||||||
Operations | Services | |||||||||||
Operations | ||||||||||||
(in millions) | ||||||||||||
2015 | $ | 100 | $ | 1,195 | $ | 1,295 | ||||||
2016 | 100 | 177 | 277 | |||||||||
2017 | 748 | 801 | 1,549 | |||||||||
2018 | 227 | 49 | 276 | |||||||||
2019 | 421 | 43 | 464 | |||||||||
Thereafter | 1,444 | 1 | 1,445 | |||||||||
Total debt | 3,040 | 2,266 | 5,306 | |||||||||
Less: Unamortized discount | 82 | — | 82 | |||||||||
Net debt | $ | 2,958 | $ | 2,266 | $ | 5,224 | ||||||
Postretirement_Benefits_Tables
Postretirement Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | A summary of the changes in benefit obligations and plan assets is as follows: | |||||||||||||||||||||||||||||||
Pension Benefits | Health and Life | |||||||||||||||||||||||||||||||
Insurance Benefits | ||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Change in benefit obligations | ||||||||||||||||||||||||||||||||
Benefit obligations at beginning of year | $ | 3,943 | $ | 4,492 | $ | 1,674 | $ | 1,866 | ||||||||||||||||||||||||
Amendments | — | 3 | — | — | ||||||||||||||||||||||||||||
Service cost | 12 | 20 | 5 | 7 | ||||||||||||||||||||||||||||
Interest on obligations | 158 | 143 | 68 | 62 | ||||||||||||||||||||||||||||
Actuarial loss (gain) | 176 | (334 | ) | 319 | (142 | ) | ||||||||||||||||||||||||||
Curtailments | (2 | ) | (33 | ) | — | — | ||||||||||||||||||||||||||
Contractual termination benefits | 23 | — | 2 | — | ||||||||||||||||||||||||||||
Currency translation | 49 | (15 | ) | — | — | |||||||||||||||||||||||||||
Plan participants' contributions | — | — | 40 | 28 | ||||||||||||||||||||||||||||
Subsidy receipts | — | — | 34 | 41 | ||||||||||||||||||||||||||||
Benefits paid | (318 | ) | (333 | ) | (185 | ) | (188 | ) | ||||||||||||||||||||||||
Benefit obligations at end of year | $ | 4,041 | $ | 3,943 | $ | 1,957 | $ | 1,674 | ||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 2,519 | $ | 2,411 | $ | 447 | $ | 437 | ||||||||||||||||||||||||
Actual return on plan assets | 206 | 284 | 26 | 66 | ||||||||||||||||||||||||||||
Currency translation | 42 | (22 | ) | — | — | |||||||||||||||||||||||||||
Employer contributions | 164 | 165 | 2 | 3 | ||||||||||||||||||||||||||||
Benefits paid | (304 | ) | (319 | ) | (60 | ) | (59 | ) | ||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 2,627 | $ | 2,519 | $ | 415 | $ | 447 | ||||||||||||||||||||||||
Funded status at year end | $ | (1,414 | ) | $ | (1,424 | ) | $ | (1,542 | ) | $ | (1,227 | ) | ||||||||||||||||||||
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block] | ||||||||||||||||||||||||||||||||
Pension Benefits | Health and Life | |||||||||||||||||||||||||||||||
Insurance Benefits | ||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Amounts recognized in our Consolidated Balance Sheets consist of: | ||||||||||||||||||||||||||||||||
Current liability | $ | (15 | ) | $ | (14 | ) | $ | (79 | ) | $ | (73 | ) | ||||||||||||||||||||
Noncurrent liability | (1,399 | ) | (1,410 | ) | (1,463 | ) | (1,154 | ) | ||||||||||||||||||||||||
Net liability recognized | $ | (1,414 | ) | $ | (1,424 | ) | $ | (1,542 | ) | $ | (1,227 | ) | ||||||||||||||||||||
Amounts recognized in our accumulated other comprehensive loss consist of: | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 2,019 | $ | 1,947 | $ | 664 | $ | 354 | ||||||||||||||||||||||||
Net prior service cost (benefit) | 1 | 1 | (6 | ) | (10 | ) | ||||||||||||||||||||||||||
Net amount recognized | $ | 2,020 | $ | 1,948 | $ | 658 | $ | 344 | ||||||||||||||||||||||||
The estimated amounts for the defined benefit pension plans and the other postretirement benefit plans that will be amortized from AOCL into net periodic benefit expense over the next fiscal year are as follows: | ||||||||||||||||||||||||||||||||
(in millions) | Pension Benefits | Health and Life Insurance Benefits | ||||||||||||||||||||||||||||||
Amortization of prior service cost (benefit) | $ | — | $ | (4 | ) | |||||||||||||||||||||||||||
Amortization of cumulative losses | 98 | 39 | ||||||||||||||||||||||||||||||
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | Information for pension plans with accumulated benefit obligations in excess of plan assets were as follows: | |||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Projected benefit obligations | $ | 4,041 | $ | 3,943 | ||||||||||||||||||||||||||||
Accumulated benefit obligations | 4,021 | 3,933 | ||||||||||||||||||||||||||||||
Fair value of plan assets | 2,627 | 2,519 | ||||||||||||||||||||||||||||||
Components Of Postretirement Benefits Income Expense Included in Statement Of Operations [Table Text Block] | The components of our postretirement benefits expense included in our Consolidated Statements of Operations for the years ended October 31 consist of the following: | |||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Pension expense | $ | 106 | $ | 116 | $ | 122 | ||||||||||||||||||||||||||
Health and life insurance expense | 54 | 61 | 81 | |||||||||||||||||||||||||||||
Total postretirement benefits expense | $ | 160 | $ | 177 | $ | 203 | ||||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | Net postretirement benefits expense included in our Consolidated Statements of Operations, and other amounts recognized in our Consolidated Statements of Stockholders' Deficit, for the years ended October 31 is comprised of the following: | |||||||||||||||||||||||||||||||
Pension Benefits | Health and Life | |||||||||||||||||||||||||||||||
Insurance Benefits | ||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Service cost for benefits earned during the period | $ | 12 | $ | 20 | 17 | $ | 5 | $ | 7 | $ | 7 | |||||||||||||||||||||
Interest on obligation | 158 | 143 | 169 | 68 | 62 | 83 | ||||||||||||||||||||||||||
Amortization of cumulative loss | 94 | 128 | 112 | 16 | 29 | 38 | ||||||||||||||||||||||||||
Amortization of prior service cost (benefit) | — | 1 | 1 | (4 | ) | (4 | ) | (5 | ) | |||||||||||||||||||||||
Curtailments | — | 4 | 5 | — | — | (3 | ) | |||||||||||||||||||||||||
Contractual termination benefits | 23 | — | 2 | 2 | — | (2 | ) | |||||||||||||||||||||||||
Retrospective payments to retirees | — | — | — | — | — | (2 | ) | |||||||||||||||||||||||||
Premiums on pension insurance | 12 | 9 | 8 | — | — | — | ||||||||||||||||||||||||||
Expected return on assets | (193 | ) | (189 | ) | $ | (192 | ) | (33 | ) | (33 | ) | (35 | ) | |||||||||||||||||||
Net postretirement benefits expense | $ | 106 | $ | 116 | $ | 122 | $ | 54 | $ | 61 | $ | 81 | ||||||||||||||||||||
Other Changes in plan assets and benefit obligations recognized in other comprehensive loss (income) | ||||||||||||||||||||||||||||||||
Actuarial net loss (gain) | $ | 164 | $ | (422 | ) | $ | 469 | $ | 326 | $ | (175 | ) | $ | (58 | ) | |||||||||||||||||
Amortization of cumulative loss | (94 | ) | (128 | ) | (112 | ) | (16 | ) | (29 | ) | (38 | ) | ||||||||||||||||||||
Prior service cost (benefit) | — | (1 | ) | (1 | ) | — | — | — | ||||||||||||||||||||||||
Amortization of prior service benefit (cost) | — | (1 | ) | (1 | ) | 4 | 4 | 5 | ||||||||||||||||||||||||
Curtailments | — | (33 | ) | — | — | — | 3 | |||||||||||||||||||||||||
Currency translation | 1 | — | 2 | — | — | — | ||||||||||||||||||||||||||
Total recognized in other comprehensive loss (income) | $ | 71 | $ | (585 | ) | $ | 357 | $ | 314 | $ | (200 | ) | $ | (88 | ) | |||||||||||||||||
Total net postretirement benefits expense and other comprehensive loss (income) | $ | 177 | $ | (469 | ) | $ | 479 | $ | 368 | $ | (139 | ) | $ | (7 | ) | |||||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | The effect of changing the health care cost trend rate by one-percentage point for each future year is as follows: | |||||||||||||||||||||||||||||||
(in millions) | One-Percentage | One-Percentage | ||||||||||||||||||||||||||||||
Point Increase | Point Decrease | |||||||||||||||||||||||||||||||
Effect on total of service and interest cost components | $ | 10 | $ | (9 | ) | |||||||||||||||||||||||||||
Effect on postretirement benefit obligation | 239 | (207 | ) | |||||||||||||||||||||||||||||
Schedule of Allocation of Plan Assets [Table Text Block] | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 16 | $ | — | $ | — | $ | 16 | $ | 32 | $ | — | $ | — | $ | 32 | ||||||||||||||||
Equity | ||||||||||||||||||||||||||||||||
U.S. Large Cap | 28 | — | — | 28 | 28 | — | — | 28 | ||||||||||||||||||||||||
U.S. Small-Mid Cap | 60 | — | — | 60 | 69 | — | — | 69 | ||||||||||||||||||||||||
International | 60 | — | — | 60 | 65 | — | — | 65 | ||||||||||||||||||||||||
Emerging Markets | 19 | — | — | 19 | 22 | — | — | 22 | ||||||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||||||||||
Corporate Bonds | — | 55 | — | 55 | — | 52 | — | 52 | ||||||||||||||||||||||||
Government Bonds | — | 49 | — | 49 | — | 43 | — | 43 | ||||||||||||||||||||||||
Asset Backed Securities | — | 3 | — | 3 | — | 4 | — | 4 | ||||||||||||||||||||||||
Collective Trusts and Other | ||||||||||||||||||||||||||||||||
Common Stock | — | 69 | — | 69 | — | 71 | — | 71 | ||||||||||||||||||||||||
Commodities | — | 10 | — | 10 | — | 13 | — | 13 | ||||||||||||||||||||||||
Hedge Funds | — | — | 22 | 22 | — | — | 21 | 21 | ||||||||||||||||||||||||
Private Equity | — | — | 23 | 23 | — | — | 26 | 26 | ||||||||||||||||||||||||
Total(A) | $ | 183 | $ | 186 | $ | 45 | $ | 414 | $ | 216 | $ | 183 | $ | 47 | $ | 446 | ||||||||||||||||
__________________ | ||||||||||||||||||||||||||||||||
(A) | For both October 31, 2014 and 2013, the totals exclude $1 million of receivables, which are included in the change in plan asset table. | |||||||||||||||||||||||||||||||
The fair value of the pension and other postretirement benefit plan assets by category is summarized below: | ||||||||||||||||||||||||||||||||
Pension Assets | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 112 | $ | — | $ | — | $ | 112 | $ | 107 | $ | — | $ | — | $ | 107 | ||||||||||||||||
Equity | ||||||||||||||||||||||||||||||||
U.S. Large Cap | 227 | — | — | 227 | 207 | — | — | 207 | ||||||||||||||||||||||||
U.S. Small-Mid Cap | 313 | — | — | 313 | 350 | — | — | 350 | ||||||||||||||||||||||||
Canadian | 44 | — | — | 44 | 93 | — | — | 93 | ||||||||||||||||||||||||
International | 244 | — | — | 244 | 254 | — | — | 254 | ||||||||||||||||||||||||
Emerging Markets | 108 | — | — | 108 | 105 | — | — | 105 | ||||||||||||||||||||||||
Equity derivative | — | — | (106 | ) | (106 | ) | — | — | (72 | ) | (72 | ) | ||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||||||||||
Corporate Bonds | — | 200 | — | 200 | — | 147 | — | 147 | ||||||||||||||||||||||||
Government Bonds | — | 630 | — | 630 | — | 494 | — | 494 | ||||||||||||||||||||||||
Asset Backed Securities | — | 8 | — | 8 | — | 8 | — | 8 | ||||||||||||||||||||||||
Fixed income derivative | — | — | 1 | 1 | — | — | (13 | ) | (13 | ) | ||||||||||||||||||||||
Collective Trusts and Other | ||||||||||||||||||||||||||||||||
Common and Preferred Stock | — | 531 | — | 531 | — | 583 | — | 583 | ||||||||||||||||||||||||
Commodities | — | 58 | — | 58 | — | 68 | — | 68 | ||||||||||||||||||||||||
Hedge Funds | — | — | 106 | 106 | — | — | 101 | 101 | ||||||||||||||||||||||||
Private Equity | — | — | 94 | 94 | — | 103 | 103 | |||||||||||||||||||||||||
Exchange Traded Funds | 9 | — | — | 9 | 6 | — | — | 6 | ||||||||||||||||||||||||
Mutual Funds | 29 | — | — | 29 | 32 | — | — | 32 | ||||||||||||||||||||||||
Real Estate | — | — | 1 | 1 | — | — | 1 | 1 | ||||||||||||||||||||||||
Total(A) | $ | 1,086 | $ | 1,427 | $ | 96 | $ | 2,609 | $ | 1,154 | $ | 1,300 | $ | 120 | $ | 2,574 | ||||||||||||||||
___________________ | ||||||||||||||||||||||||||||||||
(A) | For October 31, 2014 and 2013, the totals exclude $9 million and $8 million of receivables, respectively, which are included in the change in plan assets table. In addition, the table above includes the fair value of Canadian pension assets translated at the exchange rates as of October 31, 2014 and 2013, respectively, while the change in plan asset table includes the fair value of Canadian pension assets translated at historical foreign currency rates. | |||||||||||||||||||||||||||||||
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] | The table below presents the changes for those financial instruments classified within Level 3 of the valuation hierarchy for other postretirement benefit assets for the years ended October 31, 2014 and 2013: | |||||||||||||||||||||||||||||||
(in millions) | Hedge Funds | Private Equity | ||||||||||||||||||||||||||||||
Balance at November 1, 2012 | $ | 19 | $ | 23 | ||||||||||||||||||||||||||||
Unrealized gains | 2 | 5 | ||||||||||||||||||||||||||||||
Realized gains | — | — | ||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | — | (2 | ) | |||||||||||||||||||||||||||||
Balance at October 31, 2013 | $ | 21 | $ | 26 | ||||||||||||||||||||||||||||
Unrealized gains | 1 | 3 | ||||||||||||||||||||||||||||||
Realized gains | — | 4 | ||||||||||||||||||||||||||||||
Purchases, issuances, and settlements | — | (10 | ) | |||||||||||||||||||||||||||||
Balance at October 31, 2014 | $ | 22 | $ | 23 | ||||||||||||||||||||||||||||
The table below presents the changes for those financial instruments classified within Level 3 of the valuation hierarchy for pension assets for the years ended October 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
(in millions) | Hedge Funds | Private Equity | Real Estate | Fixed Income Derivative | Equity Derivatives | |||||||||||||||||||||||||||
Balance at November 1, 2012 | $ | 92 | $ | 92 | $ | 1 | $ | 19 | $ | 4 | ||||||||||||||||||||||
Unrealized gains (losses) | 8 | 18 | — | (32 | ) | (90 | ) | |||||||||||||||||||||||||
Realized gains | 1 | — | — | 4 | 10 | |||||||||||||||||||||||||||
Purchases, issuances, and settlements | — | (7 | ) | — | (4 | ) | 4 | |||||||||||||||||||||||||
Balance at October 31, 2013 | $ | 101 | $ | 103 | $ | 1 | $ | (13 | ) | $ | (72 | ) | ||||||||||||||||||||
Unrealized gains (losses) | 5 | 10 | — | 14 | (43 | ) | ||||||||||||||||||||||||||
Realized gains | — | 15 | — | — | — | |||||||||||||||||||||||||||
Purchases, issuances, and settlements | — | (34 | ) | — | — | 9 | ||||||||||||||||||||||||||
Balance at October 31, 2014 | $ | 106 | $ | 94 | $ | 1 | $ | 1 | $ | (106 | ) | |||||||||||||||||||||
Schedule of Expected Benefit Payments [Table Text Block] | The expected future benefit payments for the years ending October 31, 2015 through 2019 and the five years ending October 31, 2024 are estimated as follows: | |||||||||||||||||||||||||||||||
(in millions) | Pension Benefit Payments | Other Postretirement Benefit Payments(A) | ||||||||||||||||||||||||||||||
2015 | $ | 312 | $ | 143 | ||||||||||||||||||||||||||||
2016 | 304 | 132 | ||||||||||||||||||||||||||||||
2017 | 296 | 137 | ||||||||||||||||||||||||||||||
2018 | 288 | 130 | ||||||||||||||||||||||||||||||
2019 | 280 | 127 | ||||||||||||||||||||||||||||||
2020 through 2024 | 1,278 | 600 | ||||||||||||||||||||||||||||||
Schedule of Assumptions Used [Table Text Block] | The weighted average rate assumptions used in determining benefit obligations for the years ended October 31, 2014 and 2013 were: | |||||||||||||||||||||||||||||||
Pension Benefits | Health and Life Insurance Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Discount rate used to determine present value of benefit obligation at end of year | 3.7 | % | 4.1 | % | 3.7 | % | 4.1 | % | ||||||||||||||||||||||||
Expected rate of increase in future compensation levels | 3.5 | % | 3.5 | % | — | — | ||||||||||||||||||||||||||
The weighted average rate assumptions used in determining net postretirement benefits expense for 2014, 2013, and 2012 were: | ||||||||||||||||||||||||||||||||
Pension Benefits | Health and Life Insurance Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Discount rate(A) | 4.1 | % | 3.2 | % | 4.1 | % | 4.1 | % | 3.4 | % | 4.2 | % | ||||||||||||||||||||
Expected long-term rate of return on plan assets | 7.8 | % | 8 | % | 8.3 | % | 7.8 | % | 8 | % | 8.3 | % | ||||||||||||||||||||
Expected rate of increase in future compensation levels | 3.5 | % | 3.5 | % | 3.5 | % | — | — | — | |||||||||||||||||||||||
________________________ | ||||||||||||||||||||||||||||||||
(A) | In 2012 for pension benefits, the weighted average discount rate used to compute the expense for the period of November 1, 2011 through July 31, 2012 was 4.2%. Due to plan remeasurements at July 31, 2012 at a rate of 3.3%, the weighted average discount rate for the full fiscal year 2012 was 4.1%. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Oct. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The domestic and foreign components of Loss from continuing operations before income taxes consist of the following for the years ended October 31: | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Domestic | $ | (398 | ) | $ | (1,045 | ) | $ | (893 | ) | |||
Foreign | (158 | ) | 71 | (218 | ) | |||||||
Loss from continuing operations before income taxes | $ | (556 | ) | $ | (974 | ) | $ | (1,111 | ) | |||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of Income tax benefit (expense) related to continuing operations consist of the following for the years ended October 31: | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | — | $ | 4 | $ | (2 | ) | |||||
State and local | 7 | (10 | ) | (11 | ) | |||||||
Foreign | (48 | ) | (58 | ) | 4 | |||||||
Total current benefit (expense) | $ | (41 | ) | $ | (64 | ) | $ | (9 | ) | |||
Deferred: | ||||||||||||
Federal | 13 | 219 | (1,841 | ) | ||||||||
State and local | — | 2 | (137 | ) | ||||||||
Foreign | 2 | 14 | 207 | |||||||||
Total deferred benefit (expense) | $ | 15 | $ | 235 | $ | (1,771 | ) | |||||
Total income tax benefit (expense) | $ | (26 | ) | $ | 171 | $ | (1,780 | ) | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of statutory federal income tax benefit (expense) to recorded Income tax benefit (expense) related to continuing operations is as follows for the years ended October 31: | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Federal income tax benefit at the statutory rate of 35% | $ | 195 | $ | 341 | $ | 389 | ||||||
State income taxes, net of federal benefit | (4 | ) | (4 | ) | (6 | ) | ||||||
Credits and incentives | (5 | ) | — | 10 | ||||||||
Adjustments to valuation allowances | (234 | ) | (350 | ) | (2,207 | ) | ||||||
Foreign operations | (37 | ) | (8 | ) | (17 | ) | ||||||
Adjustments to uncertain tax positions | 15 | (16 | ) | 11 | ||||||||
Income tax related to equity components | 13 | 220 | — | |||||||||
Non-controlling interest adjustment | 14 | 19 | 17 | |||||||||
Other | 17 | (31 | ) | 23 | ||||||||
Recorded income tax benefit (expense) | $ | (26 | ) | $ | 171 | $ | (1,780 | ) | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of the deferred tax asset (liability) at October 31 are as follows: | |||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Deferred tax assets attributable to: | ||||||||||||
Employee benefits liabilities | $ | 1,210 | $ | 1,107 | ||||||||
Net operating loss ("NOL") carryforwards | 1,213 | 840 | ||||||||||
Product liability and warranty accruals | 494 | 546 | ||||||||||
Research and development | 9 | 26 | ||||||||||
Tax credit carryforwards | 256 | 259 | ||||||||||
Other | 194 | 271 | ||||||||||
Gross deferred tax assets | 3,376 | 3,049 | ||||||||||
Less: Valuation allowances | 3,174 | 2,773 | ||||||||||
Net deferred tax assets | $ | 202 | $ | 276 | ||||||||
Deferred tax liabilities attributable to: | ||||||||||||
Goodwill and intangibles assets | $ | (6 | ) | $ | (72 | ) | ||||||
Other | (10 | ) | (5 | ) | ||||||||
Total deferred tax liabilities | $ | (16 | ) | $ | (77 | ) | ||||||
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | Changes in the liability for uncertain tax positions during the year ended October 31, 2014 are summarized as follows: | |||||||||||
(in millions) | 2014 | |||||||||||
Liability for uncertain tax positions at November 1 | $ | 88 | ||||||||||
Increase as a result of positions taken in prior periods | 1 | |||||||||||
Decrease as a result of positions taken in the current period | (7 | ) | ||||||||||
Decrease as a result of foreign currency translation adjustments | (2 | ) | ||||||||||
Settlements | (32 | ) | ||||||||||
Lapse of statute of limitations | (1 | ) | ||||||||||
Liability for uncertain tax positions at October 31 | $ | 47 | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Oct. 31, 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: | |||||||||||||||||||||||||||||||
October 31, 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 | $ | 256 | $ | — | $ | — | $ | 256 | $ | 396 | $ | — | $ | — | $ | 396 | ||||||||||||||||
Other | 349 | — | — | 349 | 434 | — | — | 434 | ||||||||||||||||||||||||
Derivative financial instruments: | ||||||||||||||||||||||||||||||||
Foreign currency contracts(A) | — | — | — | — | — | 4 | — | 4 | ||||||||||||||||||||||||
Interest rate caps(B) | — | 1 | — | 1 | — | 1 | — | 1 | ||||||||||||||||||||||||
Total assets | $ | 605 | $ | 1 | $ | — | $ | 606 | $ | 830 | $ | 5 | $ | — | $ | 835 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative financial instruments: | ||||||||||||||||||||||||||||||||
Commodity forward contracts(C) | $ | — | $ | 2 | $ | — | $ | 2 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Guarantees | — | — | 8 | 8 | — | — | 6 | 6 | ||||||||||||||||||||||||
Total liabilities | $ | — | $ | 2 | $ | 8 | $ | 10 | $ | — | $ | — | $ | 6 | $ | 6 | ||||||||||||||||
_________________________ | ||||||||||||||||||||||||||||||||
(A) | The asset value of foreign currency contracts are included in other current assets for the year ended October 31, 2013 in the accompanying Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||
(B) | The asset value of interest rate caps are included in other noncurrent assets for the years ended October 31, 2014 and 2013 in the accompanying Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||
(C) | The asset value of commodity forward contracts are included in other current liabilities for the year ended October 31, 2014 in the accompanying Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||
Financial instruments classified within Level 3 | The following table presents the changes for those financial instruments classified within Level 3 of the valuation hierarchy: | |||||||||||||||||||||||||||||||
(in millions) | 31-Oct-14 | 31-Oct-13 | ||||||||||||||||||||||||||||||
Guarantees, at beginning of period | $ | (6 | ) | $ | (7 | ) | ||||||||||||||||||||||||||
Transfers out of Level 3 | — | — | ||||||||||||||||||||||||||||||
Issuances | (2 | ) | — | |||||||||||||||||||||||||||||
Settlements | — | 1 | ||||||||||||||||||||||||||||||
Guarantees, at end of period | $ | (8 | ) | $ | (6 | ) | ||||||||||||||||||||||||||
Change in unrealized gains on assets and liabilities still held | $ | — | $ | — | ||||||||||||||||||||||||||||
Financial instruments measured at fair value, nonrecurring basis | The following table presents the financial instruments measured at fair value on a nonrecurring basis: | |||||||||||||||||||||||||||||||
(in millions) | October 31, 2014 | October 31, 2013 | ||||||||||||||||||||||||||||||
Level 2 financial instruments | ||||||||||||||||||||||||||||||||
Carrying value of impaired finance receivables (A) | $ | 20 | $ | 15 | ||||||||||||||||||||||||||||
Specific loss reserve | (6 | ) | (6 | ) | ||||||||||||||||||||||||||||
Fair value | $ | 14 | $ | 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 October 31, 2014 | ||||||||||||||||||||||||||||||||
Estimated Fair Value | Carrying Value | |||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Retail notes | $ | — | $ | — | $ | 279 | $ | 279 | $ | 275 | ||||||||||||||||||||||
Notes receivable | — | — | 7 | 7 | 8 | |||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||||||||
Manufacturing operations | ||||||||||||||||||||||||||||||||
Senior Secured Term Loan Credit Facility, as Amended, due 2017 | — | — | 704 | 704 | 694 | |||||||||||||||||||||||||||
8.25% Senior Notes, due 2021 | 1,285 | — | — | 1,285 | 1,180 | |||||||||||||||||||||||||||
4.50% Senior Subordinated Convertible Notes, due 2018(A) | — | — | 196 | 196 | 181 | |||||||||||||||||||||||||||
4.75% Senior Subordinated Convertible Notes, due 2019(A) | — | — | 413 | 413 | 371 | |||||||||||||||||||||||||||
Debt of majority-owned dealerships | — | — | 30 | 30 | 30 | |||||||||||||||||||||||||||
Financing arrangements | — | — | 22 | 22 | 48 | |||||||||||||||||||||||||||
Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 | — | 232 | — | 232 | 225 | |||||||||||||||||||||||||||
Promissory Note | — | — | 10 | 10 | 10 | |||||||||||||||||||||||||||
Financed lease obligations | — | — | 184 | 184 | 184 | |||||||||||||||||||||||||||
Other | — | — | 28 | 28 | 29 | |||||||||||||||||||||||||||
Financial Services operations | ||||||||||||||||||||||||||||||||
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019 | — | — | 911 | 911 | 914 | |||||||||||||||||||||||||||
Bank revolvers, at fixed and variable rates, due dates from 2014 through 2020 | — | — | 1,214 | 1,214 | 1,242 | |||||||||||||||||||||||||||
Commercial paper, at variable rates, program matures in 2015 | 74 | — | — | 74 | 74 | |||||||||||||||||||||||||||
Borrowings secured by operating and finance leases, at various rates, due serially through 2018 | — | — | 36 | 36 | 36 | |||||||||||||||||||||||||||
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 Level 1 convertible notes which include the equity feature and internally developed valuation techniques such as discounted cash flow modeling for Level 3 convertible notes which include the equity feature. |
Financial_Instruments_and_Comm1
Financial Instruments and Commodity Contracts (Tables) | 12 Months Ended | |||||||||||||
Oct. 31, 2014 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ||||||||||||||
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 | Amount of Loss (Gain) Recognized | |||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||
Foreign currency contracts | Other expense (income), net | $ | (1 | ) | $ | (4 | ) | $ | 4 | |||||
Interest rate caps | Interest expense | 1 | — | — | ||||||||||
Cross currency swaps | Other expense (income), net | 3 | — | (1 | ) | |||||||||
Commodity forward contracts | Costs of products sold | 1 | 2 | 8 | ||||||||||
Total loss (gain) | $ | 4 | $ | (2 | ) | $ | 11 | |||||||
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents the outstanding foreign currency contracts as of October 31, 2014 and October 31, 2013: | |||||||||||||
(in millions) | Currency | Notional Amount | Maturity | |||||||||||
As of October 31, 2014 | ||||||||||||||
Forward exchange contract | EUR | € | 4 | Nov-14 | ||||||||||
Forward exchange contract | EUR | € | 4 | Dec-14 | ||||||||||
Forward exchange contract | EUR | € | 5 | Jan-15 | ||||||||||
Forward exchange contract | EUR | € | 9 | February 2015 - October 2015(A) | ||||||||||
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) | 12 Months Ended | |||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Revenue from External Customers by Products and Services [Table Text Block] | Sales and revenues to external customers classified by significant products and services for the years ended October 31, 2014, 2013, and 2012 were as follows: | |||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Sales and revenues: | ||||||||||||||||||||||||
Trucks | $ | 7,137 | $ | 6,738 | $ | 8,705 | ||||||||||||||||||
Parts | 2,424 | 2,906 | 2,886 | |||||||||||||||||||||
Engine | 1,092 | 973 | 936 | |||||||||||||||||||||
Financial Services | 153 | 158 | 168 | |||||||||||||||||||||
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 | ||||||||||||||||||||||||
Year ended October 31, 2014 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 6,660 | $ | 2,471 | $ | 1,522 | $ | 153 | $ | — | $ | 10,806 | ||||||||||||
Intersegment sales and revenues | 420 | 46 | 35 | 79 | (580 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 7,080 | $ | 2,517 | $ | 1,557 | $ | 232 | $ | (580 | ) | $ | 10,806 | |||||||||||
Income (loss) from continuing operations attributable to NIC, net of tax | $ | (408 | ) | $ | 500 | $ | (218 | ) | $ | 97 | $ | (593 | ) | $ | (622 | ) | ||||||||
Income tax expense | — | — | — | — | (26 | ) | (26 | ) | ||||||||||||||||
Segment profit (loss) | $ | (408 | ) | $ | 500 | $ | (218 | ) | $ | 97 | $ | (567 | ) | $ | (596 | ) | ||||||||
Depreciation and amortization | $ | 212 | $ | 15 | $ | 32 | $ | 46 | $ | 27 | $ | 332 | ||||||||||||
Interest expense | — | — | — | 71 | 243 | 314 | ||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 5 | 4 | — | — | — | 9 | ||||||||||||||||||
Capital expenditures(B) | 65 | 6 | 8 | 1 | 8 | 88 | ||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services(A) | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Year ended October 31, 2013 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 6,312 | $ | 2,558 | $ | 1,747 | $ | 158 | $ | — | $ | 10,775 | ||||||||||||
Intersegment sales and revenues | 486 | 57 | 78 | 75 | (696 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 6,798 | $ | 2,615 | $ | 1,825 | $ | 233 | $ | (696 | ) | $ | 10,775 | |||||||||||
Income (loss) from continuing operations attributable to NIC, net of tax | $ | (902 | ) | $ | 476 | $ | (6 | ) | $ | 81 | $ | (506 | ) | $ | (857 | ) | ||||||||
Income tax benefit | — | — | — | — | 171 | 171 | ||||||||||||||||||
Segment profit (loss) | $ | (902 | ) | $ | 476 | $ | (6 | ) | $ | 81 | $ | (677 | ) | $ | (1,028 | ) | ||||||||
Depreciation and amortization | $ | 305 | $ | 17 | $ | 32 | $ | 40 | $ | 23 | $ | 417 | ||||||||||||
Interest expense | — | — | — | 70 | 251 | 321 | ||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 10 | 6 | (5 | ) | — | — | 11 | |||||||||||||||||
Capital expenditures(B) | 142 | 2 | 9 | 2 | 12 | 167 | ||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services(A) | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Year ended October 31, 2012 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 7,946 | $ | 2,497 | $ | 2,084 | $ | 168 | $ | — | $ | 12,695 | ||||||||||||
Intersegment sales and revenues | 442 | 124 | 126 | 91 | (783 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 8,388 | $ | 2,621 | $ | 2,210 | $ | 259 | $ | (783 | ) | $ | 12,695 | |||||||||||
Income (loss) from continuing operations attributable to NIC, net of tax | $ | (736 | ) | $ | 343 | $ | (168 | ) | $ | 91 | $ | (2,469 | ) | $ | (2,939 | ) | ||||||||
Income tax expense | — | — | — | — | (1,780 | ) | (1,780 | ) | ||||||||||||||||
Segment profit (loss) | $ | (736 | ) | $ | 343 | $ | (168 | ) | $ | 91 | $ | (689 | ) | $ | (1,159 | ) | ||||||||
Depreciation and amortization | $ | 216 | $ | 16 | $ | 36 | $ | 33 | $ | 22 | $ | 323 | ||||||||||||
Interest expense | — | — | — | 88 | 171 | 259 | ||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | (1 | ) | 5 | (33 | ) | — | — | (29 | ) | |||||||||||||||
Capital expenditures(B) | 173 | 21 | 50 | 3 | 62 | 309 | ||||||||||||||||||
(in millions) | North America Truck | North America Parts | Global Operations | Financial | Corporate | Total | ||||||||||||||||||
Services | and | |||||||||||||||||||||||
Eliminations | ||||||||||||||||||||||||
Segment assets, as of: | ||||||||||||||||||||||||
31-Oct-14 | $ | 2,145 | $ | 682 | $ | 749 | $ | 2,598 | $ | 1,269 | $ | 7,443 | ||||||||||||
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 $170 million, $181 million, and $254 million for 2014, 2013, 2012, respectively. | |||||||||||||||||||||||
(B) | Exclusive of purchases of equipment leased to others. | |||||||||||||||||||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | nformation concerning principal geographic areas for the years ended October 31, 2014, 2013, and 2012 were as follows: | |||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Sales and revenues: | ||||||||||||||||||||||||
United States | $ | 7,760 | $ | 7,122 | $ | 8,822 | ||||||||||||||||||
Canada | 749 | 791 | 949 | |||||||||||||||||||||
Mexico | 657 | 694 | 728 | |||||||||||||||||||||
Brazil | 833 | 1,121 | 1,066 | |||||||||||||||||||||
Other | 807 | 1,047 | 1,130 | |||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||
Long-lived assets:(A) | ||||||||||||||||||||||||
United States | $ | 1,277 | $ | 1,467 | ||||||||||||||||||||
Canada | 26 | 26 | ||||||||||||||||||||||
Mexico | 190 | 157 | ||||||||||||||||||||||
Brazil | 182 | 376 | ||||||||||||||||||||||
Other | 15 | 37 | ||||||||||||||||||||||
Stockholders_Deficit_Tables_Ta
Stockholders' Deficit (Tables) (Tables) | 12 Months Ended | |||||||||||||||
Oct. 31, 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 as of October 31: | |||||||||||||||
(in millions) | Unrealized Gain on Marketable Securities | Foreign Currency Translation Adjustments | Defined Benefit Plan | Total | ||||||||||||
Balance as of October 31, 2013 | $ | — | $ | (75 | ) | $ | (1,749 | ) | $ | (1,824 | ) | |||||
Other comprehensive income (loss) before reclassifications | 1 | (52 | ) | (491 | ) | (542 | ) | |||||||||
Amounts reclassified out of accumulated other comprehensive loss | — | — | 103 | 103 | ||||||||||||
Net current-period other comprehensive income (loss) | 1 | (52 | ) | (388 | ) | (439 | ) | |||||||||
Balance as of October 31, 2014 | $ | 1 | $ | (127 | ) | $ | (2,137 | ) | $ | (2,263 | ) | |||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ||||||||||||||||
Location in Consolidated | 2014 | |||||||||||||||
Statements of Operations | ||||||||||||||||
Defined benefit plans | ||||||||||||||||
Amortization of prior service costs | Selling, general and administrative expenses | $ | (4 | ) | ||||||||||||
Amortization of actuarial loss | Selling, general and administrative expenses | 109 | ||||||||||||||
Total before tax | 105 | |||||||||||||||
Tax benefit | (2 | ) | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 103 | ||||||||||||||
Loss_Per_Share_Attributable_to1
Loss Per Share Attributable to Navistar International Corporation (Tables) | 12 Months Ended | |||||||||||
Oct. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Earnings Per Share Reconciliation [Table Text Block] | ||||||||||||
(in millions, except per share data) | 2014 | 2013 | 2012 | |||||||||
Numerator: | ||||||||||||
Amounts attributable to Navistar International Corporation common stockholders: | ||||||||||||
Loss from continuing operations, net of tax | $ | (622 | ) | $ | (857 | ) | $ | (2,939 | ) | |||
Income (loss) from discontinued operations, net of tax | 3 | (41 | ) | (71 | ) | |||||||
Net loss | $ | (619 | ) | $ | (898 | ) | $ | (3,010 | ) | |||
Denominator: | ||||||||||||
Weighted average shares outstanding: | ||||||||||||
Basic | 81.4 | 80.4 | 69.1 | |||||||||
Effect of dilutive securities | — | — | — | |||||||||
Diluted | 81.4 | 80.4 | 69.1 | |||||||||
Earnings (loss) per share attributable to Navistar International Corporation: | ||||||||||||
Basic: | ||||||||||||
Continuing operations | $ | (7.64 | ) | $ | (10.66 | ) | $ | (42.53 | ) | |||
Discontinued operations | 0.04 | (0.51 | ) | (1.03 | ) | |||||||
Net loss | $ | (7.60 | ) | $ | (11.17 | ) | $ | (43.56 | ) | |||
Diluted: | ||||||||||||
Continuing operations | $ | (7.64 | ) | $ | (10.66 | ) | $ | (42.53 | ) | |||
Discontinued operations | 0.04 | (0.51 | ) | (1.03 | ) | |||||||
Net loss | $ | (7.60 | ) | $ | (11.17 | ) | $ | (43.56 | ) |
Stockbased_Compensation_Plans_1
Stock-based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes stock option activity for the years ended October 31: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | ||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||
Options outstanding, at beginning of year | 5,000 | $ | 37.94 | 5,636 | $ | 37.89 | 4,500 | $ | 39.65 | ||||||||||||
Granted | 251 | 38.51 | 926 | 31.64 | 1,289 | 31.69 | |||||||||||||||
Exercised | (784 | ) | 24.33 | (451 | ) | 26.16 | (71 | ) | 27.66 | ||||||||||||
Forfeited/expired | (810 | ) | 44.41 | (1,111 | ) | 37.24 | (82 | ) | 44.66 | ||||||||||||
Options outstanding, at end of year | 3,657 | 39.46 | 5,000 | 37.94 | 5,636 | 37.89 | |||||||||||||||
Options exercisable, at end of year | 2,637 | 41.34 | 3,468 | 38.22 | 3,672 | 36.96 | |||||||||||||||
The following table summarizes the performance-based stock options with service and performance conditions activity for the years ended October 31: | |||||||||||||||||||||
Service and Performance | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
Options outstanding, at beginning of year | 299 | $ | 34.47 | — | $ | — | |||||||||||||||
Granted | 651 | 35.83 | 299 | 34.47 | |||||||||||||||||
Exercised | — | — | — | — | |||||||||||||||||
Forfeited | (9 | ) | 35.09 | — | — | ||||||||||||||||
Options outstanding, at end of year | 941 | 35.41 | 299 | 34.47 | |||||||||||||||||
Options exercisable, at end of year | — | — | — | — | |||||||||||||||||
The following table summarizes the performance-based stock options with service and market conditions activity for the years ended October 31: | |||||||||||||||||||||
Service and Market | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
Options outstanding, at beginning of year | 759 | $ | 27.24 | — | $ | — | |||||||||||||||
Granted | — | — | 917 | 27.24 | |||||||||||||||||
Exercised | — | — | — | — | |||||||||||||||||
Forfeited | (89 | ) | 27.24 | (158 | ) | 27.24 | |||||||||||||||
Options outstanding, at end of year | 670 | 27.24 | 759 | 27.24 | |||||||||||||||||
Options exercisable, at end of year | — | — | — | — | |||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table summarizes information about stock options outstanding at October 31, 2014: | ||||||||||||||||||||
Options Outstanding | |||||||||||||||||||||
Number | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Aggregate Intrinsic Value | ||||||||||||||||||
Outstanding | |||||||||||||||||||||
Range of Exercise Prices: | (in thousands) | (in years) | (in millions) | ||||||||||||||||||
$ 21.02 - $ 31.19 | 976 | 4.3 | $ | 27.07 | $ | 8.1 | |||||||||||||||
$ 31.20 - $ 40.92 | 1,864 | 3 | 37.94 | — | |||||||||||||||||
$ 40.93 - $ 68.65 | 817 | 3.2 | 57.75 | — | |||||||||||||||||
The following table summarizes information about stock options exercisable at October 31, 2014: | |||||||||||||||||||||
Options Exercisable | |||||||||||||||||||||
Number | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Aggregate Intrinsic Value | ||||||||||||||||||
Outstanding | |||||||||||||||||||||
Range of Exercise Prices: | (in thousands) | (in years) | (in millions) | ||||||||||||||||||
$ 21.02 - $ 31.19 | 593 | 3.7 | $ | 25.7 | $ | 5.7 | |||||||||||||||
$ 31.20 - $ 40.92 | 1,308 | 2.2 | 38.34 | — | |||||||||||||||||
$ 40.93 - $ 68.65 | 736 | 2.9 | 59.28 | — | |||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following table summarizes the annual weighted average assumptions: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Risk-free interest rate | 1.6 | % | 0.8 | % | 0.8 | % | |||||||||||||||
Dividend yield | — | % | — | % | — | % | |||||||||||||||
Expected volatility | 45.6 | % | 54.7 | % | 55.6 | % | |||||||||||||||
Expected life (in years) | 4.9 | 5.1 | 4.8 | ||||||||||||||||||
The following table summarizes the annual assumptions used in the calculation of the fair value: | |||||||||||||||||||||
2012 | |||||||||||||||||||||
Risk-free interest rate | 0.8 | % | |||||||||||||||||||
Dividend yield | — | % | |||||||||||||||||||
Expected volatility | 52.3 | % | |||||||||||||||||||
The following table summarizes the assumptions used in the calculation of the fair value using a Monte Carlo simulation for the performance-based stock options with service and market conditions for the year ended October 31: | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Risk-free interest rate | 0.9 | % | |||||||||||||||||||
Dividend yield | — | % | |||||||||||||||||||
Expected volatility | 55.4 | % | |||||||||||||||||||
Expected life (in years) | 5 | ||||||||||||||||||||
Monte Carlo Simulation Fair Value | $ | 12.41 | |||||||||||||||||||
The following table summarizes the annual weighted average assumptions: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Risk-free interest rate | 1.6 | % | 0.7 | % | |||||||||||||||||
Dividend yield | — | % | — | % | |||||||||||||||||
Expected volatility | 45.5 | % | 54.1 | % | |||||||||||||||||
Expected life (in years) | 4.9 | 5.1 | |||||||||||||||||||
Nonvested Restricted Stock Shares Activity [Table Text Block] | The following table summarizes restricted stock activity for the years ended October 31: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||
Nonvested, at beginning of year | 41 | $ | 24.13 | 41 | $ | 24.13 | — | $ | — | ||||||||||||
Granted | 4 | 33.7 | 2 | 34.19 | 44 | 25.06 | |||||||||||||||
Vested | (4 | ) | 33.7 | (2 | ) | 34.19 | (3 | ) | 40.76 | ||||||||||||
Forfeited | — | — | — | — | — | — | |||||||||||||||
Nonvested, at end of year | 41 | 24.13 | 41 | 24.13 | 41 | 24.13 | |||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table summarizes RSU activity for the years ended October 31: | ||||||||||||||||||||
Shares-Settled Restricted Stock Units | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||
Nonvested, at beginning of year | 299 | $ | 29.54 | 77 | $ | 45.93 | 162 | $ | 35.54 | ||||||||||||
Granted | — | — | 316 | 28.13 | 6 | 42.19 | |||||||||||||||
Vested | (90 | ) | 31.74 | (26 | ) | 35.84 | (90 | ) | 27.22 | ||||||||||||
Forfeited | (21 | ) | 27.24 | (68 | ) | 39.13 | (1 | ) | 33.97 | ||||||||||||
Nonvested, at end of year | 188 | 28.75 | 299 | 29.54 | 77 | 45.93 | |||||||||||||||
Cash-Settled Restricted Stock Units | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||
Nonvested, at beginning of year | 194 | $ | 43.74 | 463 | $ | 43.2 | 393 | $ | 48.8 | ||||||||||||
Granted | 470 | 32.44 | 3 | 27.24 | 285 | 37.1 | |||||||||||||||
Vested | (124 | ) | 47.48 | (215 | ) | 42.71 | (158 | ) | 46.18 | ||||||||||||
Forfeited | (71 | ) | 33.24 | (57 | ) | 42.46 | (57 | ) | 43.58 | ||||||||||||
Nonvested, at end of year | 469 | 33 | 194 | 43.74 | 463 | 43.2 | |||||||||||||||
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | The following table summarizes cash-settled performance-based stock unit activity for the years ended October 31: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||
Nonvested, at beginning of year | 172 | $ | 69.64 | 314 | $ | 68.03 | 161 | $ | 84.75 | ||||||||||||
Granted | — | — | — | — | 153 | 50.52 | |||||||||||||||
Vested | — | — | — | — | — | — | |||||||||||||||
Forfeited | — | — | (142 | ) | 66.09 | — | — | ||||||||||||||
Nonvested, at end of year | 172 | 69.64 | 172 | 69.64 | 314 | 68.03 | |||||||||||||||
The following table summarizes performance-based stock units activity for the years ended October 31: | |||||||||||||||||||||
Share-Settled Performance-based Stock Units | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
Nonvested, at beginning of year | 326 | $ | 28.35 | — | $ | — | |||||||||||||||
Granted | — | — | 381 | 28.19 | |||||||||||||||||
Vested | — | — | — | — | |||||||||||||||||
Forfeited | (34 | ) | 27.24 | (55 | ) | 27.24 | |||||||||||||||
Nonvested, at end of year | 292 | $ | 28.48 | 326 | $ | 28.35 | |||||||||||||||
Cash-Settled Performance-based Stock Units | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Nonvested, at beginning of year | — | $ | — | ||||||||||||||||||
Granted | 225 | 35.1 | |||||||||||||||||||
Vested | — | — | |||||||||||||||||||
Forfeited | (4 | ) | 35.09 | ||||||||||||||||||
Nonvested, at end of year | 221 | 35.11 | |||||||||||||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | |||||||||||
Oct. 31, 2014 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The following table provides additional information about the Company's Consolidated Statements of Cash Flows for the years ended October 31, 2014, 2013, and 2012: | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Equity in income of affiliated companies, net of dividends | ||||||||||||
Equity in loss (income) of non-consolidated affiliates | $ | (9 | ) | $ | (11 | ) | $ | 29 | ||||
Dividends from non-consolidated affiliates | 12 | 13 | 7 | |||||||||
Equity in loss of non-consolidated affiliates, net of dividends | $ | 3 | $ | 2 | $ | 36 | ||||||
Other non-cash operating activities | ||||||||||||
Loss on sales of affiliates | $ | — | $ | — | $ | 3 | ||||||
Loss (gain) on sale of property and equipment | (9 | ) | 5 | 4 | ||||||||
Loss on sale and impairment of repossessed collateral | 3 | — | — | |||||||||
Loss on repurchase of debt | 11 | — | — | |||||||||
Income from operating leases | (46 | ) | (75 | ) | — | |||||||
Other non-cash operating activities | $ | (41 | ) | $ | (70 | ) | $ | 7 | ||||
Changes in other assets and liabilities | ||||||||||||
Other current assets | $ | 62 | $ | 6 | $ | 1 | ||||||
Other noncurrent assets | 2 | (46 | ) | 16 | ||||||||
Other current liabilities | (206 | ) | 144 | 198 | ||||||||
Postretirement benefits liabilities | (82 | ) | (58 | ) | (79 | ) | ||||||
Other noncurrent liabilities | (78 | ) | 190 | 292 | ||||||||
Other, net | 20 | 4 | (8 | ) | ||||||||
Changes in other assets and liabilities | $ | (282 | ) | $ | 240 | $ | 420 | |||||
Cash paid during the year | ||||||||||||
Interest, net of amounts capitalized | $ | 258 | $ | 237 | $ | 195 | ||||||
Income taxes, net of refunds | 15 | (6 | ) | 51 | ||||||||
Non-cash investing and financing activities | ||||||||||||
Property and equipment acquired under capital leases | $ | 3 | $ | — | $ | 58 | ||||||
Transfers (to)/from inventories (from)/to property and equipment for leases to others | (14 | ) | (10 | ) | 37 | |||||||
Condensed_Consolidating_Guaran1
Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||
Condensed Consolidating Guarantor and Non-Guarantor [Abstract] | ||||||||||||||||||||
Schedule of Condensed Income Statement [Table Text Block] | ||||||||||||||||||||
Condensed Consolidating Statement of Operations for the Year ended October 31, 2012 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Sales and revenues, net | $ | — | $ | 7,924 | $ | 11,413 | $ | (6,642 | ) | $ | 12,695 | |||||||||
Costs of products sold | — | 8,188 | 9,798 | (6,585 | ) | 11,401 | ||||||||||||||
Restructuring charges | — | 86 | 21 | — | 107 | |||||||||||||||
Asset impairment charges | — | 2 | 14 | — | 16 | |||||||||||||||
All other operating expenses (income) | (249 | ) | 1,297 | 968 | 237 | 2,253 | ||||||||||||||
Total costs and expenses | (249 | ) | 9,573 | 10,801 | (6,348 | ) | 13,777 | |||||||||||||
Equity in income (loss) of affiliates | (3,258 | ) | 536 | (34 | ) | 2,727 | (29 | ) | ||||||||||||
Income (loss) before income taxes | (3,009 | ) | (1,113 | ) | 578 | 2,433 | (1,111 | ) | ||||||||||||
Income tax benefit (expense) | (1 | ) | (1,987 | ) | 209 | (1 | ) | (1,780 | ) | |||||||||||
Earnings (loss) from continuing operations | (3,010 | ) | (3,100 | ) | 787 | 2,432 | (2,891 | ) | ||||||||||||
Income from discontinued operations, net of tax | — | — | (71 | ) | — | (71 | ) | |||||||||||||
Net income (loss) | (3,010 | ) | (3,100 | ) | 716 | 2,432 | (2,962 | ) | ||||||||||||
Less: Net income attributable to non-controlling interests | — | — | 48 | — | 48 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (3,010 | ) | $ | (3,100 | ) | $ | 668 | $ | 2,432 | $ | (3,010 | ) | |||||||
Condensed Consolidating Statement of Operations for the Year ended October 31, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Sales and revenues, net | $ | — | $ | 6,426 | $ | 8,979 | $ | (4,630 | ) | $ | 10,775 | |||||||||
Costs of products sold | — | 6,629 | 7,720 | (4,588 | ) | 9,761 | ||||||||||||||
Restructuring charges | — | 15 | 10 | — | 25 | |||||||||||||||
Asset impairment charges | — | 81 | 16 | — | 97 | |||||||||||||||
All other operating expenses (income) | (208 | ) | 1,180 | 659 | 246 | 1,877 | ||||||||||||||
Total costs and expenses | (208 | ) | 7,905 | 8,405 | (4,342 | ) | 11,760 | |||||||||||||
Equity in income (loss) of affiliates | (1,108 | ) | 161 | 4 | 954 | 11 | ||||||||||||||
Income (loss) before income taxes | (900 | ) | (1,318 | ) | 578 | 666 | (974 | ) | ||||||||||||
Income tax benefit (expense) | 2 | 244 | (75 | ) | — | 171 | ||||||||||||||
Earnings (loss) from continuing operations | (898 | ) | (1,074 | ) | 503 | 666 | (803 | ) | ||||||||||||
Loss from discontinued operations, net of tax | — | — | (41 | ) | — | (41 | ) | |||||||||||||
Net income (loss) | (898 | ) | (1,074 | ) | 462 | 666 | (844 | ) | ||||||||||||
Less: Net income attributable to non-controlling interests | — | — | 54 | — | 54 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (898 | ) | $ | (1,074 | ) | $ | 408 | $ | 666 | $ | (898 | ) | |||||||
Condensed Consolidating Statement of Operations for the Year ended October 31, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Sales and revenues, net | $ | — | $ | 7,269 | $ | 8,196 | $ | (4,659 | ) | $ | 10,806 | |||||||||
Costs of products sold | — | 6,794 | 7,337 | (4,597 | ) | 9,534 | ||||||||||||||
Restructuring charges | — | 8 | 34 | — | 42 | |||||||||||||||
Asset impairment charges | — | 16 | 167 | — | 183 | |||||||||||||||
All other operating expenses (income) | (48 | ) | 1,003 | 541 | 116 | 1,612 | ||||||||||||||
Total costs and expenses | (48 | ) | 7,821 | 8,079 | (4,481 | ) | 11,371 | |||||||||||||
Equity in income (loss) of affiliates | (680 | ) | (169 | ) | 5 | 853 | 9 | |||||||||||||
Income (loss) before income taxes | (632 | ) | (721 | ) | 122 | 675 | (556 | ) | ||||||||||||
Income tax expense | 13 | 25 | (64 | ) | — | (26 | ) | |||||||||||||
Earnings (loss) from continuing operations | (619 | ) | (696 | ) | 58 | 675 | (582 | ) | ||||||||||||
Income from discontinued operations, net of tax | — | — | 3 | — | 3 | |||||||||||||||
Net income (loss) | (619 | ) | (696 | ) | 61 | 675 | (579 | ) | ||||||||||||
Less: Net income attributable to non-controlling interests | — | — | 40 | — | 40 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (619 | ) | $ | (696 | ) | $ | 21 | $ | 675 | $ | (619 | ) | |||||||
Schedule of Condensed Statement of Comprehensive Income [Table Text Block] | ||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Year ended October 31, 2012 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (3,010 | ) | $ | (3,100 | ) | $ | 668 | $ | 2,432 | $ | (3,010 | ) | |||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Foreign currency translation adjustment | (125 | ) | — | (125 | ) | 125 | (125 | ) | ||||||||||||
Defined benefit plans (net of tax of $14, $0, $14, $(14), and, $14, respectively) | (256 | ) | (225 | ) | (31 | ) | 256 | (256 | ) | |||||||||||
Total other comprehensive income (loss) | (381 | ) | (225 | ) | (156 | ) | 381 | (381 | ) | |||||||||||
Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (3,391 | ) | $ | (3,325 | ) | $ | 512 | $ | 2,813 | $ | (3,391 | ) | |||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Year ended October 31, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (619 | ) | $ | (696 | ) | $ | 21 | $ | 675 | $ | (619 | ) | |||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Foreign currency translation adjustment | (52 | ) | — | (52 | ) | 52 | (52 | ) | ||||||||||||
Unrealized gain on marketable securities | 1 | — | 1 | (1 | ) | 1 | ||||||||||||||
Defined benefit plans (net of tax of $(2), $0, $(2), $2 and, $(2), respectively) | (388 | ) | (397 | ) | 9 | 388 | (388 | ) | ||||||||||||
Total other comprehensive income (loss) | (439 | ) | (397 | ) | (42 | ) | 439 | (439 | ) | |||||||||||
Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (1,058 | ) | $ | (1,093 | ) | $ | (21 | ) | $ | 1,114 | $ | (1,058 | ) | ||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Year ended October 31, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (898 | ) | $ | (1,074 | ) | $ | 408 | $ | 666 | $ | (898 | ) | |||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Foreign currency translation adjustment | (51 | ) | — | (51 | ) | 51 | (51 | ) | ||||||||||||
Defined benefit plans (net of tax of $(21), $5, $(26), $21, and, $(21), respectively) | 552 | 687 | 74 | (761 | ) | 552 | ||||||||||||||
Total other comprehensive income (loss) | 501 | 687 | 23 | (710 | ) | 501 | ||||||||||||||
Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (397 | ) | $ | (387 | ) | $ | 431 | $ | (44 | ) | $ | (397 | ) | ||||||
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 October 31, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 101 | $ | 53 | $ | 343 | $ | — | $ | 497 | ||||||||||
Marketable securities | 379 | — | 226 | — | 605 | |||||||||||||||
Restricted cash | 19 | 4 | 148 | — | 171 | |||||||||||||||
Finance and other receivables, net | — | 124 | 2,504 | (12 | ) | 2,616 | ||||||||||||||
Inventories | — | 792 | 539 | (12 | ) | 1,319 | ||||||||||||||
Investments in non-consolidated affiliates | (7,245 | ) | 6,410 | 71 | 837 | 73 | ||||||||||||||
Property and equipment, net | — | 827 | 740 | (5 | ) | 1,562 | ||||||||||||||
Goodwill | — | — | 38 | — | 38 | |||||||||||||||
Deferred taxes, net | 5 | 9 | 185 | 1 | 200 | |||||||||||||||
Other | 34 | 137 | 194 | (3 | ) | 362 | ||||||||||||||
Total assets | $ | (6,707 | ) | $ | 8,356 | $ | 4,988 | $ | 806 | $ | 7,443 | |||||||||
Liabilities and stockholders’ equity (deficit) | ||||||||||||||||||||
Debt | $ | 1,958 | $ | 937 | $ | 2,336 | $ | (7 | ) | $ | 5,224 | |||||||||
Postretirement benefits liabilities | — | 2,712 | 243 | — | 2,955 | |||||||||||||||
Amounts due to (from) affiliates | (7,618 | ) | 11,739 | (4,267 | ) | 146 | — | |||||||||||||
Other liabilities | 3,605 | 370 | (22 | ) | (71 | ) | 3,882 | |||||||||||||
Total liabilities | (2,055 | ) | 15,758 | (1,710 | ) | 68 | 12,061 | |||||||||||||
Redeemable equity securities | 2 | — | — | — | 2 | |||||||||||||||
Stockholders’ equity attributable to non-controlling interest | — | — | 34 | — | 34 | |||||||||||||||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (4,654 | ) | (7,402 | ) | 6,664 | 738 | (4,654 | ) | ||||||||||||
Total liabilities and stockholders’ equity (deficit) | $ | (6,707 | ) | $ | 8,356 | $ | 4,988 | $ | 806 | $ | 7,443 | |||||||||
Schedule of Condensed Cash Flow Statement [Table Text Block] | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows for the Year ended October 31, 2013 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net cash provided by (used in) operations | $ | (669 | ) | $ | (355 | ) | $ | 401 | $ | 723 | $ | 100 | ||||||||
Cash flows from investment activities | ||||||||||||||||||||
Net change in restricted cash and cash equivalents | — | 5 | 65 | — | 70 | |||||||||||||||
Net purchases of marketable securities | (267 | ) | — | (97 | ) | — | (364 | ) | ||||||||||||
Capital expenditures and purchase of equipment leased to others | — | (422 | ) | (177 | ) | — | (599 | ) | ||||||||||||
Other investing activities | — | 87 | (4 | ) | — | 83 | ||||||||||||||
Net cash used in investment activities | (267 | ) | (330 | ) | (213 | ) | — | (810 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Net borrowings (repayments) of debt | 540 | 409 | (40 | ) | (793 | ) | 116 | |||||||||||||
Other financing activities | 30 | 293 | (116 | ) | 70 | 277 | ||||||||||||||
Net cash provided by (used in) financing activities | 570 | 702 | (156 | ) | (723 | ) | 393 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (15 | ) | — | (15 | ) | |||||||||||||
Increase (decrease) in cash and cash equivalents | (366 | ) | 17 | 17 | — | (332 | ) | |||||||||||||
Cash and cash equivalents at beginning of the year | 702 | 55 | 330 | — | 1,087 | |||||||||||||||
Cash and cash equivalents at end of the year | $ | 336 | $ | 72 | $ | 347 | $ | — | $ | 755 | ||||||||||
Condensed Consolidating Statement of Cash Flows for the Year ended October 31, 2012 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net cash provided by (used in) operations | $ | 350 | $ | (183 | ) | $ | 901 | $ | (458 | ) | $ | 610 | ||||||||
Cash flows from investment activities | ||||||||||||||||||||
Net change in restricted cash and cash equivalents | (4 | ) | 1 | 168 | — | 165 | ||||||||||||||
Net purchases of marketable securities | 115 | — | 137 | — | 252 | |||||||||||||||
Capital expenditures and purchase of equipment leased to others | — | (213 | ) | (157 | ) | — | (370 | ) | ||||||||||||
Other investing activities | — | (157 | ) | 108 | — | (49 | ) | |||||||||||||
Net cash provided by (used in) investment activities | 111 | (369 | ) | 256 | — | (2 | ) | |||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Net borrowings (repayments) of debt | 171 | 594 | (1,245 | ) | 549 | 69 | ||||||||||||||
Other financing activities | (156 | ) | — | 115 | (91 | ) | (132 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 15 | 594 | (1,130 | ) | 458 | (63 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 3 | — | 3 | |||||||||||||||
Increase in cash and cash equivalents | 476 | 42 | 30 | — | 548 | |||||||||||||||
Cash and cash equivalents at beginning of the year | 226 | 13 | 300 | — | 539 | |||||||||||||||
Cash and cash equivalents at end of the year | $ | 702 | $ | 55 | $ | 330 | $ | — | $ | 1,087 | ||||||||||
Condensed Consolidating Statement of Cash Flows for the Year ended October 31, 2014 | ||||||||||||||||||||
(in millions) | NIC | Navistar, | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Inc. | Subsidiaries | and Other | ||||||||||||||||||
Net cash provided by (used in) operations | $ | (285 | ) | $ | (1,287 | ) | $ | (112 | ) | $ | 1,348 | $ | (336 | ) | ||||||
Cash flows from investment activities | ||||||||||||||||||||
Net change in restricted cash and cash equivalents | 5 | (1 | ) | (84 | ) | — | (80 | ) | ||||||||||||
Net sales of marketable securities | 203 | — | 22 | — | 225 | |||||||||||||||
Capital expenditures and purchase of equipment leased to others | — | (114 | ) | (163 | ) | — | (277 | ) | ||||||||||||
Other investing activities | — | 17 | 40 | — | 57 | |||||||||||||||
Net cash provided by (used in) investment activities | 208 | (98 | ) | (185 | ) | — | (75 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Net borrowings (repayments) of debt | (176 | ) | 1,306 | 409 | (1,389 | ) | 150 | |||||||||||||
Other financing activities | 18 | 60 | (90 | ) | 41 | 29 | ||||||||||||||
Net cash provided by (used in) financing activities | (158 | ) | 1,366 | 319 | (1,348 | ) | 179 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (26 | ) | — | (26 | ) | |||||||||||||
Decrease in cash and cash equivalents | (235 | ) | (19 | ) | (4 | ) | — | (258 | ) | |||||||||||
Cash and cash equivalents at beginning of the year | 336 | 72 | 347 | — | 755 | |||||||||||||||
Cash and cash equivalents at end of the year | $ | 101 | $ | 53 | $ | 343 | $ | — | $ | 497 | ||||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Oct. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | The following tables provide our Quarterly Condensed Consolidated Statements of Operations and Financial Data: | |||||||||||||||
1st Quarter Ended | 2nd Quarter Ended | |||||||||||||||
January 31, | April 30, | |||||||||||||||
(in millions, except for per share data and stock prices) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Sales and revenues, net | $ | 2,208 | $ | 2,637 | $ | 2,746 | $ | 2,526 | ||||||||
Manufacturing gross margin(A)(B) | 155 | 312 | 240 | 124 | ||||||||||||
Amounts attributable to Navistar International Corporation common shareholders: | ||||||||||||||||
Loss from continuing operations, net of tax(C) | $ | (249 | ) | $ | (114 | ) | $ | (298 | ) | $ | (353 | ) | ||||
Loss from discontinued operations, net of tax | 1 | (9 | ) | 1 | (21 | ) | ||||||||||
Net loss | $ | (248 | ) | $ | (123 | ) | $ | (297 | ) | $ | (374 | ) | ||||
Loss per share attributable to Navistar International Corporation: | ||||||||||||||||
Basic: | ||||||||||||||||
Continuing operations | $ | (3.07 | ) | $ | (1.42 | ) | $ | (3.66 | ) | $ | (4.39 | ) | ||||
Discontinued operations | 0.02 | (0.11 | ) | 0.01 | (0.26 | ) | ||||||||||
$ | (3.05 | ) | $ | (1.53 | ) | $ | (3.65 | ) | $ | (4.65 | ) | |||||
Diluted: | ||||||||||||||||
Continuing operations | $ | (3.07 | ) | $ | (1.42 | ) | $ | (3.66 | ) | $ | (4.39 | ) | ||||
Discontinued operations | 0.02 | (0.11 | ) | 0.01 | (0.26 | ) | ||||||||||
$ | (3.05 | ) | $ | (1.53 | ) | $ | (3.65 | ) | $ | (4.65 | ) | |||||
Market price range-common stock: | ||||||||||||||||
High | $ | 41.57 | $ | 26.9 | $ | 39.45 | $ | 37.65 | ||||||||
Low | 30.8 | 18.78 | 29.08 | 23.25 | ||||||||||||
3rd Quarter Ended | 4th Quarter Ended | |||||||||||||||
July 31, | October 31, | |||||||||||||||
(in millions, except for per share data and stock prices) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Sales and revenues, net | $ | 2,844 | $ | 2,861 | $ | 3,008 | $ | 2,751 | ||||||||
Manufacturing gross margin(A)(B) | 389 | 273 | 335 | 147 | ||||||||||||
Amounts attributable to Navistar International Corporation common shareholders: | ||||||||||||||||
Loss from continuing operations, net of tax(C) | $ | (3 | ) | $ | (237 | ) | $ | (72 | ) | $ | (153 | ) | ||||
Income (loss) from discontinued operations, net of tax | 1 | (10 | ) | — | (1 | ) | ||||||||||
Net loss | $ | (2 | ) | $ | (247 | ) | $ | (72 | ) | $ | (154 | ) | ||||
Earnings (loss) per share attributable to Navistar International Corporation: | ||||||||||||||||
Basic: | ||||||||||||||||
Continuing operations | $ | (0.04 | ) | $ | (2.94 | ) | $ | (0.88 | ) | $ | (1.90 | ) | ||||
Discontinued operations | 0.02 | (0.12 | ) | — | (0.01 | ) | ||||||||||
$ | (0.02 | ) | $ | (3.06 | ) | $ | (0.88 | ) | $ | (1.91 | ) | |||||
Diluted: | ||||||||||||||||
Continuing operations | $ | (0.04 | ) | $ | (2.94 | ) | $ | (0.88 | ) | $ | (1.90 | ) | ||||
Discontinued operations | 0.02 | (0.12 | ) | — | (0.01 | ) | ||||||||||
$ | (0.02 | ) | $ | (3.06 | ) | $ | (0.88 | ) | $ | (1.91 | ) | |||||
Market price range-common stock: | ||||||||||||||||
High | $ | 39.41 | $ | 38.81 | $ | 40.17 | $ | 39.79 | ||||||||
Low | 32.45 | 25.56 | 29.54 | 31.88 | ||||||||||||
_______________________ | ||||||||||||||||
(A) Manufacturing gross margin is calculated by subtracting Costs of products sold from Sales of manufactured products, net. | ||||||||||||||||
(B) We record adjustments to our product warranty accrual to 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. In the third quarter of 2014, we recognized a benefit for adjustments to pre-existing warranties of $(29) million. The benefit is comprised of a benefit for changes in estimates of $(59) million, partially offset by a $30 million correction of prior-period errors, primarily related to pre-existing warranties. In the fourth quarter of 2014, we recognized a benefit for adjustments to pre-existing warranties of $(10) million compared to a charge for adjustments to pre-existing warranties of $152 million in the fourth quarter of 2013. The $(10) million benefit recorded in the fourth quarter of 2014 is comprised of a benefit for changes in estimates of $(35) million, partially offset by the fourth quarter impact of $25 million relating to the correction of prior-period errors as discussed in Note 1, 2014 Out-Of-Period Adjustments. | ||||||||||||||||
(C) | In the second quarter of 2014, the company recognized a non-cash charge of $149 million for the impairment of certain intangible assets of our Brazilian engine reporting unit. Due to the economic downturn in Brazil which resulted in a continued decline in actual and forecasted results, we tested the goodwill of our Brazilian engine reporting unit and trademark for potential impairment. As a result, we determined that the entire $142 million balance of goodwill and $7 million of trademark were impaired. | |||||||||||||||
In the fourth quarter of 2013, our North America Truck segment recorded a non-cash charge of $77 million to reflect impairment of goodwill as a result of changes in our organizational and reporting structures, which resulted in a change in certain of our reporting units. The impairment charges were included in Asset impairment charges. | ||||||||||||||||
Also in the fourth quarter of 2013, the Company met the criteria necessary to apply the exception within the intraperiod tax allocation rules. As a result, the Company recorded an income tax benefit of $220 million, which was recorded in Income tax benefit (expense) related to continuing operations. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||
In Millions, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2012 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2014 | Apr. 30, 2013 | Oct. 31, 2011 | ||||
segments | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Cost of Goods Sold | ($9,534) | ($9,761) | ($11,401) | |||||||||||
Foreign Currency Transaction Gain (Loss), before Tax | -21 | -23 | -25 | |||||||||||
Net Income (Loss) Attributable to Parent | -619 | -898 | -3,010 | |||||||||||
Number Of Segments | 4 | |||||||||||||
Goodwill | 38 | 184 | 38 | 184 | 280 | 319 | ||||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 34 | 46 | 34 | 46 | ||||||||||
Goodwill, Impairment Loss | 142 | 81 | ||||||||||||
Sales of manufactured products, net | 10,653 | 10,617 | 12,527 | |||||||||||
Depreciation and amortization | 332 | 417 | 323 | |||||||||||
Interest expense | 314 | 321 | 259 | |||||||||||
Capital expenditures | 88 | [1] | 167 | [1] | 309 | [1] | ||||||||
Proceeds from financed lease obligations | 60 | 294 | 0 | |||||||||||
Advertising Expense | 39 | 48 | 78 | |||||||||||
Product Warranty Accrual, Preexisting, Increase (Decrease) | -10 | -29 | 152 | 10 | 55 | [2],[3] | 404 | [2],[3] | 404 | [2],[3] | ||||
Unionized Employees Concentration Risk [Member] | Number Of Employees Hourly Workers [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Concentration Risk Number Of Employees | 6,100 | 6,100 | ||||||||||||
concentration risk number of employees percentage | 70.00% | 70.00% | ||||||||||||
Unionized Employees Concentration Risk [Member] | Number of Employees Salaried Workers [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Concentration Risk Number Of Employees | 300 | 300 | ||||||||||||
concentration risk number of employees percentage | 5.00% | 5.00% | ||||||||||||
Brazilian Reporting Unit [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Goodwill | 142 | |||||||||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 43 | |||||||||||||
Goodwill, Impairment Loss | 81 | [4] | 142 | [4] | 0 | [4] | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 7 | 0 | 7 | ||||||||||
Warranty Liability Prior Period Adjustment [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Cost of Goods Sold | -36 | |||||||||||||
G E Operating Agreement [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Net Income (Loss) Attributable to Parent | -8 | |||||||||||||
Sales of manufactured products, net | -113 | |||||||||||||
Depreciation and amortization | 37 | |||||||||||||
Interest expense | 8 | |||||||||||||
Capital expenditures | 184 | |||||||||||||
Proceeds from financed lease obligations | 201 | |||||||||||||
North America Truck [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Goodwill | 0 | 0 | 0 | 0 | 82 | 82 | ||||||||
Goodwill, Impairment Loss | -77 | 0 | 81 | -4 | ||||||||||
Depreciation and amortization | 212 | 305 | 216 | |||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||
Capital expenditures | 65 | [1] | 142 | [1] | 173 | [1] | ||||||||
Product Warranty Expense | 161 | 66 | ||||||||||||
North America Truck [Member] | Field Campaign to address issues in products sold [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Product Warranty Expense | 13 | 88 | 130 | |||||||||||
North America Truck [Member] | Pre-existing Warranty [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Product Warranty Expense | 127 | |||||||||||||
Extended Warranty Programs [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Deferred Revenue, Revenue Recognized | 132 | 87 | 63 | |||||||||||
Deferred Revenue | 437 | 420 | 437 | 420 | 364 | |||||||||
Warranty contracts sold in current year [Member] | North America Truck [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Product Warranty Expense | 19 | |||||||||||||
Product Warranty Accrual [Member] | North America Truck [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Product Warranty Expense | $47 | |||||||||||||
Building [Member] | Minimum [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Property, Plant and Equipment, Useful Life | 20 years | |||||||||||||
Building [Member] | Maximum [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Property, Plant and Equipment, Useful Life | 50 years | |||||||||||||
Leasehold Improvements [Member] | Minimum [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||||||||||
Leasehold Improvements [Member] | Maximum [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Property, Plant and Equipment, Useful Life | 20 years | |||||||||||||
Machinery and Equipment [Member] | Minimum [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||||||||||
Machinery and Equipment [Member] | Maximum [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Property, Plant and Equipment, Useful Life | 12 years | |||||||||||||
Furniture and Fixtures [Member] | Minimum [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||||||||||
Furniture and Fixtures [Member] | Maximum [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Property, Plant and Equipment, Useful Life | 15 years | |||||||||||||
Equipment Leased to Other Party [Member] | Minimum [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Property, Plant and Equipment, Useful Life | 1 year | |||||||||||||
Equipment Leased to Other Party [Member] | Maximum [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Property, Plant and Equipment, Useful Life | 10 years | |||||||||||||
Customer Relationships [Member] | Minimum [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years | |||||||||||||
Customer Relationships [Member] | Maximum [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 15 years | |||||||||||||
Trademarks [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 20 years | |||||||||||||
Other Intangible Assets [Member] | Minimum [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years | |||||||||||||
Other Intangible Assets [Member] | Maximum [Member] | ||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 18 years | |||||||||||||
[1] | Exclusive of purchases of equipment leased to others. | |||||||||||||
[2] | (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 Income (loss) from discontinued operations, net of tax and recorded a receivable within Other current assets.In the third quarter of 2012, we recognized $10 million of adjustments to pre-existing warranties for a specific warranty issue related to component parts from a supplier. Also during the quarter, we reached agreement for reimbursement from such supplier and recognized a recovery for that amount and recorded a receivable within Other current assets. | |||||||||||||
[3] | (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. In the third quarter of 2014, we recognized a benefit for adjustments to pre-existing warranties of $(29) million, or $(0.36) per diluted share. Included in the 2014 adjustments is a $36 million correction of prior-period errors, primarily related to pre-existing warranties. For more information on the errors identified, see 2014 Out-of-Period Adjustments. 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. In the third quarter of 2013, we recorded adjustments for changes in estimates of $48 million, or $0.60 per diluted share. In the fourth quarter of 2013, we recorded adjustments for changes in estimates of $152 million, or $1.89 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. In the first quarter of 2012, we recorded adjustments for changes in estimates of $123 million, or $1.76 per diluted share. In the second quarter of 2012, we recorded adjustments for changes in estimates of $104 million, or $1.51 per diluted share. In the fourth quarter of 2012, we recorded adjustments for changes in estimates of $149 million, or $2.16 per diluted share. | |||||||||||||
[4] | (A)For more information, see Note 8, Goodwill and Other Intangible Assets, Net, and includes $4 million related to discontinued operations in 2013. |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Variable Interest Entities (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
In Millions, unless otherwise specified | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $497 | $755 | $1,087 | $539 |
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 | 297 | 323 | ||
Cash and cash equivalents | 77 | 56 | ||
Liabilities | 250 | 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 | 1,100 | 989 | ||
Liabilities | 896 | 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 | 156 | 61 | ||
Liabilities | $54 | $49 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Product Warranty Liability (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Jul. 31, 2012 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2014 | Jan. 31, 2014 | Jul. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | |||
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 | $598 | $1,349 | $598 | ||||||||||||
Costs accrued and revenues deferred | 302 | 469 | 575 | |||||||||||||||
Product Warranty Accrual, Divestures | 0 | -3 | 0 | |||||||||||||||
Currency translation adjustment | -4 | -2 | -4 | |||||||||||||||
Adjustments to pre-existing warranties(A)(B) | -10 | -29 | 152 | 10 | 55 | [1],[2] | 404 | [1],[2] | 404 | [1],[2] | ||||||||
Payments and revenues recognized | -505 | -637 | -455 | |||||||||||||||
Balance at end of period | 1,197 | 1,349 | 1,197 | 1,349 | 1,118 | 1,118 | ||||||||||||
Less: Current portion | 535 | 601 | 535 | 601 | 551 | 551 | ||||||||||||
Noncurrent accrued product warranty and deferred warranty revenue | 662 | 748 | 662 | 748 | 567 | 567 | ||||||||||||
Warranty Recoveries | 13 | 27 | ||||||||||||||||
Extended Warranty Programs [Member] | ||||||||||||||||||
Extended Warranty Program: | ||||||||||||||||||
Deferred Revenue, Revenue Recognized | 132 | 87 | 63 | |||||||||||||||
Deferred Revenue | 437 | 420 | 437 | 420 | 364 | 364 | ||||||||||||
recoverable [Member] | ||||||||||||||||||
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward: | ||||||||||||||||||
Adjustments to pre-existing warranties(A)(B) | 13 | |||||||||||||||||
Product Warranty Accrual [Member] | ||||||||||||||||||
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward: | ||||||||||||||||||
Adjustments to pre-existing warranties(A)(B) | $25 | $30 | $164 | $40 | $42 | $52 | $48 | $149 | $104 | $123 | ||||||||
Product Warranty Accrual, Preexisting Increase Decrease Per Share, Net of Tax | ($0.36) | $1.89 | $2.04 | $0.50 | $0.52 | $0.64 | $0.60 | $2.16 | $1.51 | $1.76 | ||||||||
[1] | (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 Income (loss) from discontinued operations, net of tax and recorded a receivable within Other current assets.In the third quarter of 2012, we recognized $10 million of adjustments to pre-existing warranties for a specific warranty issue related to component parts from a supplier. Also during the quarter, we reached agreement for reimbursement from such supplier and recognized a recovery for that amount and recorded a receivable within Other current assets. | |||||||||||||||||
[2] | (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. In the third quarter of 2014, we recognized a benefit for adjustments to pre-existing warranties of $(29) million, or $(0.36) per diluted share. Included in the 2014 adjustments is a $36 million correction of prior-period errors, primarily related to pre-existing warranties. For more information on the errors identified, see 2014 Out-of-Period Adjustments. 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. In the third quarter of 2013, we recorded adjustments for changes in estimates of $48 million, or $0.60 per diluted share. In the fourth quarter of 2013, we recorded adjustments for changes in estimates of $152 million, or $1.89 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. In the first quarter of 2012, we recorded adjustments for changes in estimates of $123 million, or $1.76 per diluted share. In the second quarter of 2012, we recorded adjustments for changes in estimates of $104 million, or $1.51 per diluted share. In the fourth quarter of 2012, we recorded adjustments for changes in estimates of $149 million, or $2.16 per diluted share. |
Discontinued_Operations_Narrat
Discontinued Operations - Narrative (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Apr. 30, 2012 |
dealcor | dealcor | |||||
Statements of Operations for Discontinued Operations [Line Items] | ||||||
Proceeds from Divestiture of Businesses | $33 | |||||
Asset impairment charges | 183 | 97 | 16 | |||
Impairment of Intangible Assets (Excluding Goodwill) | 183 | 105 | 44 | |||
Number of Dealcors | 1 | 2 | ||||
North America Truck [Member] | ||||||
Statements of Operations for Discontinued Operations [Line Items] | ||||||
Proceeds from Divestiture of Businesses | 16 | |||||
Asset impairment charges | 19 | |||||
MONACO | ||||||
Statements of Operations for Discontinued Operations [Line Items] | ||||||
Proceeds from Divestiture of Businesses | 19 | |||||
Asset impairment charges | 24 | 28 | ||||
Mahindra [Member] | ||||||
Statements of Operations for Discontinued Operations [Line Items] | ||||||
Gain (Loss) on Disposition of Business | 26 | |||||
Bison Coach [Member] | ||||||
Statements of Operations for Discontinued Operations [Line Items] | ||||||
Proceeds from Divestiture of Businesses | 16 | |||||
Workhorse Custom Chassis [Member] | North America Parts [Member] | ||||||
Statements of Operations for Discontinued Operations [Line Items] | ||||||
Impairment of Intangible Assets (Excluding Goodwill) | $10 |
Discontinued_Operations_Schedu
Discontinued Operations - Schedule of Discontinued Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Income (loss) from discontinued operations, net of tax | $0 | $1 | $1 | $1 | ($1) | ($10) | ($21) | ($9) | $3 | ($41) | ($71) |
Discontinued Operations [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Disposal Group, Including Discontinued Operation, Revenue | 0 | 73 | 253 | ||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 3 | -41 | -71 | ||||||||
Income (loss) from discontinued operations, net of tax | 3 | -41 | -71 | ||||||||
Income tax benefit (expense) | $0 | $0 | $0 |
Restructuring_and_Impairments_1
Restructuring and Impairments - Narrative (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||||||||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2012 | Jul. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | $42 | $25 | $107 | ||||||||
Asset impairment charges | 183 | 97 | 16 | ||||||||
Employee Severance [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 8 | 11 | |||||||||
North America Truck [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Asset impairment charges | 19 | ||||||||||
Warrenville [Member] | North America Truck [Member] | Lease Vacancy [Member] [Domain] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 16 | ||||||||||
Warrenville [Member] | North America Truck [Member] | Lease Vacancy Fair Value [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 19 | ||||||||||
Warrenville [Member] | North America Truck [Member] | Accrued Rent Expense, Reversal [Domain] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 3 | ||||||||||
Chatham [Member] | North America Truck [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 14 | ||||||||||
Garland Assembly Plant [Member] | North America Truck [Member] | Garland plant closure [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 8 | 12 | |||||||||
Huntsville Engine Plant [Member] | North America Truck [Member] | Employee Severance [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 1 | ||||||||||
Huntsville Engine Plant [Member] | North America Truck [Member] | Engine Plant Consolidation [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 2 | ||||||||||
Indianapolis and Waukesha Foundry [Member] | North America Truck [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 13 | ||||||||||
Asset impairment charges | 7 | ||||||||||
Indianapolis and Waukesha Foundry [Member] | North America Truck [Member] | Employee Severance [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 2 | ||||||||||
Indianapolis and Waukesha Foundry [Member] | North America Truck [Member] | Pension And Other Postretirement Contractual Termination Benefits [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 11 | ||||||||||
Indianapolis and Waukesha Foundry [Member] | North America Truck [Member] | Restructuring Inventory Adjustments [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 7 | ||||||||||
Minimum [Member] | Chatham [Member] | North America Truck [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Expected Cost | 0 | 0 | |||||||||
Maximum [Member] | Chatham [Member] | North America Truck [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Expected Cost | 60 | 60 | |||||||||
Maximum [Member] | Indianapolis and Waukesha Foundry [Member] | North America Truck [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Expected Cost | 40 | 40 | |||||||||
Discontinuation Engineering Program [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Asset impairment charges | 19 | ||||||||||
Discontinued Operations [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Asset impairment charges | $38 |
Restructuring_and_Impairments_2
Restructuring and Impairments - Restructuring Reserve by Type (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $20 | $34 | $89 |
Restructuring and Related Cost, Incurred Cost | 18 | 26 | |
Payments for Restructuring | 30 | 80 | |
Restructuring Reserve, Accrual Adjustment | -2 | -1 | |
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 8 | 15 | 72 |
Restructuring and Related Cost, Incurred Cost | 15 | 12 | |
Payments for Restructuring | 19 | 64 | |
Restructuring Reserve, Accrual Adjustment | -3 | -5 | |
Employee Relocation [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 0 | 0 | 0 |
Restructuring and Related Cost, Incurred Cost | 1 | 3 | |
Payments for Restructuring | 1 | 3 | |
Restructuring Reserve, Accrual Adjustment | 0 | 0 | |
Lease Vacancy [Member] [Domain] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 11 | 18 | 17 |
Restructuring and Related Cost, Incurred Cost | 0 | 6 | |
Payments for Restructuring | 8 | 9 | |
Restructuring Reserve, Accrual Adjustment | 1 | 4 | |
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 1 | 1 | 0 |
Restructuring and Related Cost, Incurred Cost | 2 | 5 | |
Payments for Restructuring | 2 | 4 | |
Restructuring Reserve, Accrual Adjustment | $0 | $0 |
Restructuring_and_Impairments_3
Restructuring and Impairments - Schedule of Restructuring Charges (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $42 | $25 | $107 |
Restructuring Charges [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 42 | 25 | 108 |
Discontinued Operations [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $0 | $0 | $1 |
Restructuring_and_Impairments_4
Restructuring and Impairments - Schedule of Impairment Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2014 | |||
Restructuring Cost and Reserve [Line Items] | ||||||||
Goodwill, Impairment Loss | $142 | $81 | ||||||
Other Asset Impairment Charges | 20 | 34 | 16 | |||||
Asset impairment charges | 183 | 97 | 16 | |||||
Brazilian Reporting Unit [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Goodwill, Impairment Loss | 81 | [1] | 142 | [1] | 0 | [1] | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 7 | 0 | 7 | ||||
Asset impairment charges | 149 | |||||||
Discontinued Operations [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Asset impairment charges | 0 | 4 | 28 | |||||
Impairment charges [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Asset impairment charges | $183 | $105 | $44 | |||||
[1] | (A)For more information, see Note 8, Goodwill and Other Intangible Assets, Net, and includes $4 million related to discontinued operations in 2013. |
Finance_Receivables_Narrative_
Finance Receivables - Narrative (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
segments | ||
Schedule of Securitization [Line Items] | ||
Loans and Leases Receivable, Net Amount | $2,000,000,000 | $1,900,000,000 |
Number of Portfolio Segments for Finance Receivables | 2 | |
Trac Funding Facility [Member] | ||
Schedule of Securitization [Line Items] | ||
Finance Receivables Retail Accounts Collateral For Borrowed Securities | 996,000,000 | 948,000,000 |
Cash Collateral for Borrowed Securities | 93,000,000 | 4,000,000 |
Financial Services Operations [Member] | ||
Schedule of Securitization [Line Items] | ||
Assets Net Of Intercompany Balances | $2,600,000,000 | $2,400,000,000 |
Finance_Receivables_Finance_Re
Finance Receivables - Finance Receivables (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $2,065 | $1,958 | ||
Less: Allowance for Doubtful accounts | 27 | 23 | ||
Total finance receivables, net | 2,038 | 1,935 | ||
Financing Receivable, Recorded Investment, Current | 1,758 | [1] | 1,597 | [1] |
Finance Receivables, Noncurrent | 280 | 338 | ||
Loans and Leases Receivable Due In One Year | 1,807 | |||
Loans and Leases Receivable Due In Two Years | 147 | |||
Loans and Leases Receivable Due In Three Years | 88 | |||
Loans and Leases Receivable Due In Four Years | 50 | |||
Loans and Leases Receivable Due In Five Years | 22 | |||
Loans and Leases Receivable Due Thereafter | 2 | |||
Finance Receivables Gross | 2,116 | |||
Loans and Leases Receivable, Deferred Income | 51 | |||
Total finance receivables | 2,065 | |||
Retail Portfolio [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 726 | 751 | ||
Loans and Leases Receivable Due In One Year | 468 | |||
Loans and Leases Receivable Due In Two Years | 147 | |||
Loans and Leases Receivable Due In Three Years | 88 | |||
Loans and Leases Receivable Due In Four Years | 50 | |||
Loans and Leases Receivable Due In Five Years | 22 | |||
Loans and Leases Receivable Due Thereafter | 2 | |||
Finance Receivables Gross | 777 | |||
Loans and Leases Receivable, Deferred Income | 51 | |||
Total finance receivables | 726 | |||
Wholesale Portfolio [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 1,339 | 1,207 | ||
Loans and Leases Receivable Due In One Year | 1,339 | |||
Loans and Leases Receivable Due In Two Years | 0 | |||
Loans and Leases Receivable Due In Three Years | 0 | |||
Loans and Leases Receivable Due In Four Years | 0 | |||
Loans and Leases Receivable Due In Five Years | 0 | |||
Loans and Leases Receivable Due Thereafter | 0 | |||
Finance Receivables Gross | 1,339 | |||
Loans and Leases Receivable, Deferred Income | 0 | |||
Total finance receivables | $1,339 | |||
[1] | The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals. |
Finance_Receivables_Schedule_o
Finance Receivables - Schedule of Finance Revenues (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Finance Revenues [Line Items] | |||
Retail notes and finance leases revenue | $64 | $78 | $98 |
Operating lease revenue | 46 | 75 | 0 |
Gross finance revenues | 232 | 233 | 259 |
Less: Intercompany revenues | 79 | 75 | 91 |
Finance revenues | 153 | 158 | 168 |
Financing Receivable [Member] | |||
Finance Revenues [Line Items] | |||
Operating lease revenue | 60 | 51 | 40 |
Wholesale Portfolio [Member] | Notes Receivable [Member] | |||
Finance Revenues [Line Items] | |||
Interest Income, Operating | 80 | 77 | 87 |
Retail And Wholesale Portfolios [Member] | |||
Finance Revenues [Line Items] | |||
Interest Income, Operating | $28 | $27 | $34 |
Allowance_for_Doubtful_Account2
Allowance for Doubtful Accounts - Schedule of Allowance for Retail, Wholesale, Trade & Other (Details) (USD $) | 12 Months Ended | |||||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||
Allowance for doubtful accounts at beginning of period | $60,000,000 | $51,000,000 | $50,000,000 | |||
Provision for doubtful accounts, net of recoveries | 20,000,000 | [1] | 20,000,000 | [1] | 14,000,000 | [1] |
Charge-off of accounts | -15,000,000 | [2] | -11,000,000 | [2] | -13,000,000 | [2] |
Allowance for doubtful accounts at end of period | 65,000,000 | 60,000,000 | 51,000,000 | |||
Loss on Contract Termination for Default | 1,000,000 | 2,000,000 | 6,000,000 | |||
Retail Portfolio [Member] | ||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||
Allowance for doubtful accounts at beginning of period | 21,000,000 | 27,000,000 | 31,000,000 | |||
Provision for doubtful accounts, net of recoveries | 12,000,000 | [1] | 4,000,000 | [1] | 3,000,000 | [1] |
Charge-off of accounts | -9,000,000 | [2] | -10,000,000 | [2] | -7,000,000 | [2] |
Allowance for doubtful accounts at end of period | 24,000,000 | 21,000,000 | 27,000,000 | |||
Wholesale Portfolio [Member] | ||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||
Allowance for doubtful accounts at beginning of period | 2,000,000 | 0 | 2,000,000 | |||
Provision for doubtful accounts, net of recoveries | 1,000,000 | [1] | 2,000,000 | [1] | -2,000,000 | [1] |
Charge-off of accounts | 0 | [2] | 0 | [2] | 0 | [2] |
Allowance for doubtful accounts at end of period | 3,000,000 | 2,000,000 | 0 | |||
Trade and Other Receivables [Member] | ||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||
Allowance for doubtful accounts at beginning of period | 37,000,000 | 24,000,000 | 17,000,000 | |||
Provision for doubtful accounts, net of recoveries | 7,000,000 | [1] | 14,000,000 | [1] | 13,000,000 | [1] |
Charge-off of accounts | -6,000,000 | [2] | -1,000,000 | [2] | -6,000,000 | [2] |
Allowance for doubtful accounts at end of period | $38,000,000 | $37,000,000 | $24,000,000 | |||
[1] | (A)Amounts include currency translation. | |||||
[2] | We repossess sold and leased vehicles on defaulted finance receivables and leases, and place them into Inventories. Losses recognized at the time of repossession and charged against the allowance for doubtful accounts were less than $1 million, $2 million, and $6 million in 2014, 2013, and 2012, respectively. |
Allowance_for_Doubtful_Account3
Allowance for Doubtful Accounts - Schedule of Impaired Finance Receivables (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Impaired finance receivables with specific loss reserves [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | $20 | $15 |
Impaired finance receivables with specific loss reserves [Member] | Retail Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 20 | 15 |
Impaired finance receivables with specific loss reserves [Member] | Wholesale Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 0 | 0 |
Impaired financing receivable without specific loss reserves [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 1 | 1 |
Impaired financing receivable without specific loss reserves [Member] | Retail Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 1 | 1 |
Impaired financing receivable without specific loss reserves [Member] | Wholesale Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 0 | 0 |
Specific loss reserves on impaired finance receivables [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Specific loss reserves on impaired finance receivables | 6 | 6 |
Specific loss reserves on impaired finance receivables [Member] | Retail Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Specific loss reserves on impaired finance receivables | 6 | 6 |
Specific loss reserves on impaired finance receivables [Member] | Wholesale Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Specific loss reserves on impaired finance receivables | 0 | 0 |
Finance receivable non-accrual status [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Finance receivables on non-accrual status | 21 | 10 |
Finance receivable non-accrual status [Member] | Retail Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Finance receivables on non-accrual status | 21 | 10 |
Finance receivable non-accrual status [Member] | Wholesale Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Finance receivables on non-accrual status | $0 | $0 |
Allowance_for_Doubtful_Account4
Allowance for Doubtful Accounts - Schedule of Allowance Aging Analysis (Details) (USD $) | Oct. 31, 2014 |
In Millions, unless otherwise specified | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Finance Receivables, Current | $1,976 |
30-90 days past due | 66 |
Over 90 days past due | 23 |
Total finance receivables | 2,065 |
Retail Portfolio [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Finance Receivables, Current | 643 |
30-90 days past due | 64 |
Over 90 days past due | 19 |
Total finance receivables | 726 |
Wholesale Portfolio [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Finance Receivables, Current | 1,333 |
30-90 days past due | 2 |
Over 90 days past due | 4 |
Total finance receivables | $1,339 |
Allowance_for_Doubtful_Account5
Allowance for Doubtful Accounts - Narrative (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Portfolio Segments for Finance Receivables | 2 | |
Classes Of Receivables In Each Portfolio | 1 | |
Retail Portfolio [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, Average Recorded Investment | $21 | $13 |
Inventories_Inventory_Details
Inventories - Inventory (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished products | $880 | $692 |
Work in process | 50 | 58 |
Raw materials | 389 | 460 |
Total inventories | $1,319 | $1,210 |
Property_and_Equipment_Net_Nar
Property and Equipment, Net Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Commitments For Capital Expenditures In Progress | $15 | $11 | $48 |
Capital Expenditures Incurred but Not yet Paid | 1 | 2 | 29 |
Operating Leases, Rent Expense | 62 | 74 | 63 |
Operating Leases, Income Statement, Sublease Revenue | $10 | $7 | $4 |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 1 year | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 20 years |
Property_and_Equipment_Net_Sch
Property and Equipment, Net Schedule of Property and Equipment, Net (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ||
Land | $82 | $87 |
Buildings and Improvements, Gross | 518 | 575 |
Leasehold Improvements, Gross | 60 | 68 |
Machinery and Equipment, Gross | 2,232 | 2,289 |
Furniture and Fixtures, Gross | 487 | 444 |
Equipment leased to others | 677 | 663 |
Construction in Progress, Gross | 41 | 55 |
Property, Plant and Equipment, Gross | 4,097 | 4,181 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 2,535 | 2,440 |
Property and equipment, net | $1,562 | $1,741 |
Property_and_Equipment_Net_Equ
Property and Equipment, Net Equipment Leased to Others (Details) (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $4,097 | $4,181 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 2,535 | 2,440 |
Property and equipment, net | 1,562 | 1,741 |
Capital Leased Assets, Gross | 70 | 93 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 32 | 31 |
Capital Leases, Balance Sheet, Assets by Major Class, Net | 38 | 62 |
Equipment Leased to Other Party [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 677 | 663 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 210 | 191 |
Property and equipment, net | $467 | $472 |
Property_and_Equipment_Net_Dep
Property and Equipment, Net Depreciation Expense, Amortization Expense, and Interest Capitalized (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $206 | $260 | $248 |
Amortization | 3 | 0 | 4 |
Interest Costs Capitalized | 0 | 5 | 9 |
Equipment Leased to Other Party [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $105 | $135 | $46 |
Property_and_Equipment_Net_Sch1
Property and Equipment, Net Schedule of Future Minimum Lease Payments (Details) (USD $) | Oct. 31, 2014 |
In Millions, unless otherwise specified | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | $11 |
Capital Leases, Future Minimum Payments Due in Two Years | 10 |
Capital Leases, Future Minimum Payments Due in Three Years | 9 |
Capital Leases, Future Minimum Payments Due in Four Years | 9 |
Capital Leases, Future Minimum Payments Due in Five Years | 9 |
Capital Leases, Future Minimum Payments Due Thereafter | 20 |
Capital Leases, Future Minimum Payments Due | 68 |
Capital Leases, Future Minimum Payments, Interest Included in Payments | 14 |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 54 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 65 |
Operating Leases, Future Minimum Payments, Due in Two Years | 51 |
Operating Leases, Future Minimum Payments, Due in Three Years | 41 |
Operating Leases, Future Minimum Payments, Due in Four Years | 36 |
Operating Leases, Future Minimum Payments, Due in Five Years | 29 |
Operating Leases, Future Minimum Payments, Due Thereafter | 71 |
Operating Leases, Future Minimum Payments Due | 293 |
Future Minimum Lease Payments Due Current | 76 |
Future Minimum Lease Payments Due in Two Years | 61 |
Future Minimum Lease Payments Due in Three Years | 50 |
Future Minimum Lease Payments Due in Four Years | 45 |
Future Minimum Lease Payments Due in Five Years | 38 |
Future Minimum Lease Payments Due Thereafter | 91 |
Future Minimum Lease Payments Due | $361 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible assets, Net - Narrative (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||||||||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Apr. 30, 2013 | Apr. 30, 2014 | Oct. 31, 2011 | |||
Goodwill [Line Items] | ||||||||||
Goodwill | $38 | $184 | $280 | $184 | $319 | |||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 34 | 46 | 46 | |||||||
Goodwill, Impairment Loss | 142 | 81 | ||||||||
Amortization of Intangible Assets | 18 | 22 | 25 | |||||||
North America Truck [Member] | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill | 0 | 0 | 82 | 0 | 82 | |||||
Goodwill, Impairment Loss | 0 | 81 | -77 | -4 | ||||||
Brazilian Reporting Unit [Member] | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill | 142 | |||||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 43 | |||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 7 | 0 | 0 | 7 | ||||||
Goodwill, Impairment Loss | $142 | [1] | $0 | [1] | $81 | [1] | ||||
[1] | (A)For more information, see Note 8, Goodwill and Other Intangible Assets, Net, and includes $4 million related to discontinued operations in 2013. |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible assets, Net Changes in Carrying Amounts of Goodwill (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Oct. 31, 2013 | Apr. 30, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Goodwill [Roll Forward] | ||||||
Goodwill | $184 | $280 | $319 | |||
Goodwill, Translation Adjustments | -4 | -12 | -33 | |||
Goodwill, Subsequent Recognition of Deferred Tax Asset | -3 | -6 | [1] | |||
Goodwill, Impairment Loss | -142 | -81 | ||||
Goodwill | 184 | 38 | 184 | 280 | ||
North America Truck [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill | 0 | 82 | 82 | |||
Goodwill, Translation Adjustments | 0 | 0 | 0 | |||
Goodwill, Subsequent Recognition of Deferred Tax Asset | -1 | 0 | [1] | |||
Goodwill, Impairment Loss | 77 | 4 | 0 | -81 | ||
Goodwill | 0 | 0 | 0 | 82 | ||
North America Parts [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill | 38 | 38 | 38 | |||
Goodwill, Translation Adjustments | 0 | 0 | 0 | |||
Goodwill, Subsequent Recognition of Deferred Tax Asset | 0 | 0 | [1] | |||
Goodwill, Impairment Loss | 0 | 0 | ||||
Goodwill | 38 | 38 | 38 | 38 | ||
Global Operations [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill | 146 | 160 | 199 | |||
Goodwill, Translation Adjustments | -4 | -12 | -33 | |||
Goodwill, Subsequent Recognition of Deferred Tax Asset | -2 | -6 | [1] | |||
Goodwill, Impairment Loss | -142 | 0 | ||||
Goodwill | $146 | $0 | $146 | $160 | ||
[1] | Adjustments to goodwill primarily result from the tax benefit attributable to the amortization of tax deductible goodwill in excess of goodwill recorded for financial statement purposes as measured in the IIAA balance sheet immediately after its acquisition in 2005. |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible assets, Net Intangible Assets Not Subject to Amortization (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $34 | $46 |
Franchise Rights [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 1 | 1 |
Trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $33 | $45 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible assets, Net Intangible Assets Subject to Amortization (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $165 | $189 |
Finite-Lived Intangible Assets, Accumulated Amortization | -109 | -97 |
Finite-Lived Intangible Assets, Net | 56 | 92 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 80 | 88 |
Finite-Lived Intangible Assets, Accumulated Amortization | -60 | -55 |
Finite-Lived Intangible Assets, Net | 20 | 33 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 85 | 101 |
Finite-Lived Intangible Assets, Accumulated Amortization | -49 | -42 |
Finite-Lived Intangible Assets, Net | $36 | $59 |
Goodwill_and_Other_Intangible_6
Goodwill and Other Intangible assets, Net Future Amortization Expense (Details) (USD $) | Oct. 31, 2014 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $15 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 12 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 11 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 7 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 3 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $8 |
Investments_in_NonConsolidated2
Investments in Non-Consolidated Affiliates - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Investments in and Advances to Affiliates, at Fair Value, Gross Additions | $0 | $25 | |
Related Party Transaction, Other Revenues from Transactions with Related Party | 8 | 63 | 25 |
Related Party Transaction, Expenses from Transactions with Related Party | 219 | 245 | 370 |
Equity Method Investment Summarized Financial Information Undistributed Earnings | -25 | -27 | |
Proceeds from Divestiture of Businesses | 33 | ||
Minimum [Member] | |||
Equity Method Investment, Ownership Percentage | 10.00% | ||
Maximum [Member] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Mahindra [Member] | |||
Gain (Loss) on Disposition of Business | $26 |
Investments_in_NonConsolidated3
Investments in Non-Consolidated Affiliates Combined Assets, Liabilities and Equity of Equity Method Investments (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | ||
Equity Method Investment, Summarized Financial Information, Current Assets | $252 | $254 |
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 130 | 50 |
Equity Method Investment, Summarized Financial Information, Assets | 382 | 304 |
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | ||
Equity Method Investment, Summarized Financial Information, Current Liabilities | 191 | 111 |
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities | 12 | 8 |
Equity Method Investment, Summarized Financial Information, Liabilities | 203 | 119 |
Equity Method Investment Summarized Financial Information, Equity [Abstract] | ||
Equity Method Investment, Summarized Financial Information, Equity Excluding Noncontrolling Interests | 75 | 77 |
Equity Method Investment, Summarized Financial Information, Noncontrolling Interest | 104 | 108 |
Equity Method Investment Summarized Financial Information, Equity | 179 | 185 |
Equity Method Investment, Summarized Financial Information, Liabilities and Equity | $382 | $304 |
Investments_in_NonConsolidated4
Investments in Non-Consolidated Affiliates Combined Results of Operations of Equity Method Investments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |||
Equity Method Investment, Summarized Financial Information, Revenue | $527 | $448 | $704 |
Equity Method Investment, Summarized Financial Information, Cost of Sales, Expenses and Income Tax Expense | 500 | 412 | 726 |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $27 | $36 | ($22) |
Investments_in_NonConsolidated5
Investments in Non-Consolidated Affiliates Amounts Due To and From Affiliates (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ||
Due from Affiliates | $1 | $23 |
Due to Affiliate | $30 | $32 |
Debt_Schedule_of_Debt_Instrume
Debt - Schedule of Debt Instruments (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2012 |
In Millions, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount | $82 | |||
Long-term Debt | 5,224 | |||
Long-term Debt and Capital Lease Obligations | 3,929 | 3,922 | ||
Convertible Subordinated Debt [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount | 1 | |||
Convertible Subordinated Debt [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount | 1 | |||
Financial Services Operations [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount | 0 | |||
Long-term Debt | 2,266 | |||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 2,266 | 1,866 | ||
Long-term Debt and Capital Lease Obligations, Current | 1,195 | 505 | ||
Long-term Debt and Capital Lease Obligations | 1,071 | 1,361 | ||
Financial Services Operations [Member] | Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 914 | 778 | ||
Financial Services Operations [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 1,242 | 1,018 | ||
Financial Services Operations [Member] | Commercial Paper [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 74 | 21 | ||
Financial Services Operations [Member] | Borrowings Secured By Operating and Finance Leases [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 36 | 49 | ||
Manufacturing Operations [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount | 82 | |||
Long-term Debt | 2,958 | |||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 2,958 | 3,219 | ||
Long-term Debt and Capital Lease Obligations, Current | 100 | 658 | ||
Long-term Debt and Capital Lease Obligations | 2,858 | 2,561 | ||
Manufacturing Operations [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount | 3 | 4 | ||
Long-term Debt | 694 | 693 | ||
Manufacturing Operations [Member] | Notes Payable to Banks [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | |||
Manufacturing Operations [Member] | Notes Payable to Banks [Member] | Eight Point Two Five Percent Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount | 20 | 22 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | |||
Long-term Debt | 1,180 | 1,178 | ||
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount | 0 | 26 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | |||
Long-term Debt | 0 | 544 | ||
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount | 19 | 23 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | ||
Long-term Debt | 181 | 177 | ||
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount | 40 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | ||
Long-term Debt | 371 | 0 | ||
Manufacturing Operations [Member] | Debt Of Majority Owned Dealerships [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 30 | 48 | ||
Manufacturing Operations [Member] | Financing Arrangements and Capital Lease Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 54 | 77 | ||
Manufacturing Operations [Member] | Tax Exempt Bond [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | ||
Long-term Debt | 225 | 225 | ||
Manufacturing Operations [Member] | Promissory Note [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 10 | 20 | ||
Manufacturing Operations [Member] | Financed lease obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 184 | 218 | ||
Manufacturing Operations [Member] | Notes Payable, Other Payables [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $29 | $39 |
Debt_Schedule_of_Debt_Maturiti
Debt - Schedule of Debt Maturities (Details) (USD $) | Oct. 31, 2014 |
In Millions, unless otherwise specified | |
Debt Instrument [Line Items] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $1,295 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 277 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 1,549 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 276 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 464 |
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 1,445 |
Long-term Debt, Gross | 5,306 |
Debt Instrument, Unamortized Discount | 82 |
Long-term Debt | 5,224 |
Manufacturing Operations [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 100 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 100 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 748 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 227 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 421 |
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 1,444 |
Long-term Debt, Gross | 3,040 |
Debt Instrument, Unamortized Discount | 82 |
Long-term Debt | 2,958 |
Financial Services Operations [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 1,195 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 177 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 801 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 49 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 43 |
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 1 |
Long-term Debt, Gross | 2,266 |
Debt Instrument, Unamortized Discount | 0 |
Long-term Debt | $2,266 |
Debt_Narrative_Details
Debt - Narrative (Details) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 11 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jul. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2014 | Oct. 31, 2012 | Oct. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2014 | Nov. 30, 2013 | Oct. 31, 2014 | 31-May-13 | 31-May-12 | Oct. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2012 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Aug. 31, 2012 | Oct. 31, 2014 | Oct. 31, 2014 | Apr. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2009 | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2014 | Oct. 31, 2009 | Apr. 30, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2012 | Sep. 30, 2011 | Sep. 29, 2011 | Sep. 30, 2011 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2010 | Oct. 31, 2012 | Oct. 31, 2010 | Oct. 31, 2010 | Oct. 31, 2014 | Oct. 31, 2013 | Aug. 31, 2012 | Apr. 30, 2013 | Apr. 30, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Nov. 02, 2011 | Nov. 03, 2011 | Jan. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2014 | Oct. 31, 2009 | Oct. 31, 2009 | Oct. 31, 2014 | Oct. 31, 2009 | Apr. 30, 2014 | Apr. 30, 2014 | Oct. 31, 2009 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Apr. 30, 2013 | Apr. 30, 2013 | Oct. 31, 2014 | Oct. 31, 2012 | Jul. 03, 2014 | Jul. 03, 2014 | Oct. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2011 | Jun. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Dec. 31, 2011 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Financial Services Operations [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] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Debt Instrument, Redemption, Scenario One [Member] | Debt Instrument, Redemption, Scenario One [Member] | Debt Instrument, Redemption, Scenario One [Member] | Debt Instrument, Redemption, Scenario One [Member] | Debt Instrument, Redemption, Scenario Two [Member] | Debt Instrument, Redemption, Scenario Two [Member] | Debt Instrument, Redemption, Scenario Two [Member] | Debt Instrument, Redemption, Scenario Two [Member] | Debt Instrument, Redemption, Scenario Three [Member] | Debt Instrument, Redemption, Scenario Three [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Call Option [Member] | Call Option [Member] | Call Option [Member] | Call Option [Member] | Other Noncurrent Assets [Member] | Additional Paid-in Capital [Member] | Convertible Debt Securities [Member] | Convertible Debt Securities [Member] | Convertible Debt Securities [Member] | Convertible Debt Securities [Member] | Interest Rate Floor [Member] | Interest Rate Cap [Member] | G E Operating Agreement [Member] | G E Operating Agreement [Member] | Letter of Credit [Member] | Letter of Credit [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Term Loan [Member] | Navistar Financial Retail Receivables Corporation [Member] | Mexican Finance Subsidiary [Member] | International Truck Leasing Corporation [Member] | International Truck Leasing Corporation [Member] | International Truck Leasing Corporation [Member] | Navistar Financial Corporation [Member] | Installment Payments Set Two [Member] | United States Dollars and Mexican Pesos [Member] | United States Dollars and Mexican Pesos [Member] | United States of America, Dollars | United States of America, Dollars | United States of America, Dollars | Mexico, Pesos | Mexico, Pesos | Mexico, Pesos | |
USD ($) | USD ($) | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | USD ($) | USD ($) | VFN Facility [Member] | VFN Facility [Member] | Bank Facility [Member] | Line of Credit [Member] | Line of Credit [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Asset-backed Securities [Member] | USD ($) | USD ($) | Promissory Note With Lessor In Cherokee, Alabama [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [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] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Debt Of Majority Owned Dealerships [Member] | Debt Of Majority Owned Dealerships [Member] | Debt Of Majority Owned Dealerships [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Tax Exempt Bond [Member] | Tax Exempt Bond [Member] | Tax Exempt Bond [Member] | Tax Exempt Bond [Member] | Tax Exempt Bond [Member] | Tax Exempt Bond [Member] | Tax Exempt Bond [Member] | Financed lease obligations [Member] | Financed lease obligations [Member] | Asset-Based Credit Facility [Member] | USD ($) | USD ($) | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Debt Instrument, Redemption, Scenario Two [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | Manufacturing Operations [Member] | USD ($) | Maximum [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Revolving Credit Facility [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | Term Loan [Member] | Financial Services Operations [Member] | Financial Services Operations [Member] | USD ($) | Financial Services Operations [Member] | Financial Services Operations [Member] | USD ($) | Financial Services Operations [Member] | Financial Services Operations [Member] | ||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Investor Notes Maturing Two Thousand and Fifteen [Member] | Investor Notes Maturing Two Thousand and Fifteen [Member] | Investor Notes Maturing October Two Thousand Thirteen [Member] | Investor Notes Maturing October Two Thousand Thirteen [Member] | Investor Notes Maturing Two Thousand and Eighteen [Member] | Investor Notes Maturing Two Thousand and Eighteen [Member] | Investor Notes Maturing Two Thousand and Eighteen [Member] | Investor Notes Maturing Two Thousand and Eighteen [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Eurodollar [Member] | London Interbank Offered Rate (LIBOR) [Member] | USD ($) | USD ($) | Days | USD ($) | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | USD ($) | USD ($) | USD ($) | USD ($) | Promissory Note With Lessor In Cherokee, Alabama [Member] | Promissory Note [Member] | Promissory Note [Member] | Secured Debt [Member] | USD ($) | USD ($) | USD ($) | Debt Instrument, Redemption, Period Six [Member] | Illinois Finance Authority Recovery Zone Facility Revenue Bond [Member] | County of Cook Recovery Zone Facility Revenue Bonds [Member] | USD ($) | USD ($) | USD ($) | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Amended and Restated Asset-Based Credit Facility [Member] | Amended and Restated Asset-Based Credit Facility [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Amended and Restated Asset-Based Credit Facility [Member] | Amended and Restated Asset-Based Credit Facility [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | Convertible Subordinated Debt [Member] | USD ($) | USD ($) | USD ($) | USD ($) | Financed lease obligations [Member] | Financed lease obligations [Member] | Financed lease obligations [Member] | Financed lease obligations [Member] | USD ($) | Bank Facility [Member] | Bank Facility [Member] | Bank Facility [Member] | Asset-backed Securities [Member] | Financial Services Operations [Member] | USD ($) | USD ($) | USD ($) | Financial Services Operations [Member] | USD ($) | USD ($) | ||||||||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | MXN | USD ($) | MXN | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | London Interbank Offered Rate (LIBOR) [Member] | USD ($) | USD ($) | Debt Instrument, Redemption, Period Two [Member] | Debt Instrument, Redemption, Period Three [Member] | Debt Instrument, Redemption, Period Four [Member] | Debt Instrument, Redemption, Period Five [Member] | USD ($) | USD ($) | USD ($) | USD ($) | Treasury Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | Base Rate [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Notes Payable to Banks [Member] | London Interbank Offered Rate (LIBOR) [Member] | Base Rate [Member] | Days | Days | USD ($) | USD ($) | 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 ($) | USD ($) | USD ($) | USD ($) | Bank Facility [Member] | Bank Facility [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Installments | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Installments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to subsidiary to meet convenant requirement | $0 | $0 | $0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Covenant Compliance, Fixed Charge Coverage Ratio, Maximum | 125.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 840,000,000 | 1,000,000,000 | 175,000,000 | 40,000,000 | 100,000,000 | 500,000,000 | 340,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Payable to Bank | 372,000,000 | 502,000,000 | 200,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment, Principal | 9,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Participation Fee Reduction, Amount Outstanding in Excess of Maximum Borrowing Capacity | 50,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Line of Credit | 1,000,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment, Principal, Percentage | 0.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | 3.00% | 4.50% | 4.50% | 4.50% | 4.75% | 4.75% | 6.50% | 6.50% | 2.80% | 7.60% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Long-term Debt | 404,000,000 | 300,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments of Debt Extinguishment Costs | 13,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 200,000,000 | 500,000,000 | 750,000,000 | 250,000,000 | 250,000,000 | 200,000,000 | 224,000,000 | 74,000,000 | 1,000,000,000 | 0 | 1,000,000,000 | 570,000,000 | 200,000,000 | 200,000,000 | 411,000,000 | 40,000,000 | 225,000,000 | 135,000,000 | 90,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Debt | 60,000,000 | 800,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Senior Long-term Debt | 310,000,000 | 402,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Related Commitment Fees and Debt Issuance Costs | 9,000,000 | 8,000,000 | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Premium | 4,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Interest Received | 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | 100.00% | 104.13% | 102.75% | 101.38% | 100.00% | 103.00% | 100.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Long-term Debt | 2,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Redemption Price, Principal Amount Redeemed | 50,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Redemption Period | 12 months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Early Repayment of Senior Debt | 50,000,000 | 50,000,000 | 100,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) on Extinguishment of Debt | -8,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Redemption, Premium, Percentage of Principal Amount Redeemed | 1.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 350.00% | 450.00% | 125.00% | 2.75% | 50.00% | 325.00% | 225.00% | 275.00% | 175.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments for Derivative Instrument, Investing Activities | 125,000,000 | 125,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants and Rights Outstanding | 4,814,551 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Option Indexed to Issuer's Equity, Strike Price | $54.07 | $58.40 | $50.27 | $50.27 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Warrants | 87,000,000 | 87,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge Related to Repurchase of Debt | 11,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares of Call Options Unwound | 8,026,456 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares of Warrants Unwound | 6,523,319 | 6,523,319 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Convertible Debt | 196,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments of Debt Issuance Costs | 15,000,000 | 20,000,000 | 57,000,000 | 3,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance Costs | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Fair Value | 177,000,000 | 367,000,000 | 58,000,000 | 177,000,000 | 177,000,000 | 367,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | 22,000,000 | 44,000,000 | 22,000,000 | 22,000,000 | 44,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Issuance Cost | -4,000,000 | 3,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 130.00% | 130.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Threshold Trading Days | 20 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 days | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Measurement Period, Trading Days, Ending | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Measurement Period, Business Days | 10 | 5 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Convertible Conversion Price Percent | 100.00% | 100.00% | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Convertible Conversion Ratio Basis | 1,000 | 1,000 | 1,000 | 1,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Threshold percentage of last reported sale price of common stock | 98.00% | 98.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 18.4946 | 17.1233 | 19.891 | 17.1233 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 4.30% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 7.70% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Present Value of Future Minimum Lease Payments, Sale Leaseback Transactions | 6,000,000 | 24,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Lease Obligations | 4,000,000 | 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | 5,224,000,000 | 2,266,000,000 | 1,242,000,000 | 1,018,000,000 | 2,958,000,000 | 40,000,000 | 694,000,000 | 693,000,000 | 0 | 544,000,000 | 177,000,000 | 177,000,000 | 181,000,000 | 371,000,000 | 0 | 30,000,000 | 48,000,000 | 29,000,000 | 39,000,000 | 225,000,000 | 225,000,000 | 184,000,000 | 218,000,000 | 181,000,000 | 167,000,000 | 535,000,000 | 489,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, percentage of borrowings denominated in countries currency | 51.00% | 36.00% | 49.00% | 64.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 10 years | 4 years | 2 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Number Of Installment Payments | 16 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 30,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pledged Assets, Other, Not Separately Reported on Statement of Financial Position | 1,200,000,000 | 989,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit Facility Term Length | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Paper | 74,000,000 | 1,000,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of securitized debt | 255,000,000 | 529,000,000 | 1,313,000,000 | 21,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Debt | 36,000,000 | 49,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Pledged as Collateral | $48,000,000 | $61,000,000 |
Postretirement_Benefits_Summar
Postretirement Benefits - Summary of Changes in the Defined Benefit Plans (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Curtailments | $4 | ||||
Pension Benefits | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligations at beginning of year | 3,943 | 4,492 | |||
Amendments | 0 | 3 | |||
Service cost | 12 | 20 | 17 | ||
Interest on obligations | 158 | 143 | 169 | ||
Actuarial loss (gain) | -176 | 334 | |||
Curtailments | 2 | 33 | |||
Contractual termination benefits | 23 | 0 | |||
Currency translation | -49 | 15 | |||
Plan participants' contributions | 0 | 0 | |||
Subsidy receipts | 0 | 0 | |||
Benefits paid | 318 | 333 | |||
Benefit obligations at end of year | 3,943 | 4,041 | 4,041 | 3,943 | 4,492 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 2,519 | 2,411 | |||
Actual return on plan assets | 206 | 284 | |||
Currency translation | 42 | -22 | |||
Employer contributions | 164 | 164 | 165 | ||
Benefits paid | 304 | 319 | |||
Fair value of plan assets at end of year | 2,519 | 2,627 | 2,627 | 2,519 | 2,411 |
Funded status at year end | -1,424 | -1,414 | -1,414 | -1,424 | |
Health and Life Insurance Benefits | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligations at beginning of year | 1,674 | 1,866 | |||
Amendments | 0 | 0 | |||
Service cost | 5 | 7 | 7 | ||
Interest on obligations | 68 | 62 | 83 | ||
Actuarial loss (gain) | -319 | 142 | |||
Curtailments | 0 | 0 | |||
Contractual termination benefits | 2 | 0 | |||
Currency translation | 0 | 0 | |||
Plan participants' contributions | 40 | 28 | |||
Subsidy receipts | 34 | 41 | |||
Benefits paid | 185 | 188 | |||
Benefit obligations at end of year | 1,674 | 1,957 | 1,957 | 1,674 | 1,866 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 447 | 437 | |||
Actual return on plan assets | 26 | 66 | |||
Currency translation | 0 | 0 | |||
Employer contributions | 2 | 3 | |||
Benefits paid | 60 | 59 | |||
Fair value of plan assets at end of year | 447 | 415 | 415 | 447 | 437 |
Funded status at year end | ($1,227) | ($1,542) | ($1,542) | ($1,227) |
Postretirement_Benefits_Schedu
Postretirement Benefits - Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liability | $2,862 | $2,564 |
Net liability recognized | 2,955 | 2,652 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liability | 15 | 14 |
Noncurrent liability | 1,399 | 1,410 |
Net liability recognized | 1,414 | 1,424 |
Net actuarial loss | -2,019 | -1,947 |
Net prior service cost (benefit) | 1 | 1 |
Net amount recognized | 2,020 | 1,948 |
Amortization of prior service cost (benefit) | 0 | |
Amortization of cumulative losses | 98 | |
Health and Life Insurance Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liability | 79 | 73 |
Noncurrent liability | 1,463 | 1,154 |
Net liability recognized | 1,542 | 1,227 |
Net actuarial loss | -664 | -354 |
Net prior service cost (benefit) | -6 | -10 |
Net amount recognized | 658 | 344 |
Amortization of prior service cost (benefit) | -4 | |
Amortization of cumulative losses | $39 |
Postretirement_Benefits_Schedu1
Postretirement Benefits - Schedule of Accumulated Obligation in Excess of Plan Assets (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ||
Projected benefit obligations | $4,041 | $3,943 |
Accumulated benefit obligations | 4,021 | 3,933 |
Fair value of plan assets | $2,627 | $2,519 |
Postretirement_Benefits_Compon
Postretirement Benefits - Components of Postretirement Benefits Included in Operations (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net postretirement benefits expense | $160 | $177 | $203 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net postretirement benefits expense | 106 | 116 | 122 |
Health and Life Insurance Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net postretirement benefits expense | $54 | $61 | $81 |
Postretirement_Benefits_Schedu2
Postretirement Benefits - Schedule of Net Benefit (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net postretirement benefits expense | $160 | $177 | $203 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 12 | 20 | 17 |
Interest on obligations | 158 | 143 | 169 |
Amortization of cumulative loss | -94 | -128 | -112 |
Amortization of cumulative loss | 0 | 1 | 1 |
Curtailments | 0 | -4 | -5 |
Contractual termination benefits | 23 | 0 | 2 |
Retrospective payments to retirees | 0 | 0 | 0 |
Premiums on pension insurance | 12 | 9 | 8 |
Expected return on assets | 193 | 189 | 192 |
Net postretirement benefits expense | 106 | 116 | 122 |
Actuarial net loss (gain) | -164 | 422 | -469 |
Amortization of cumulative loss | -94 | -128 | -112 |
Prior service cost (benefit) | 0 | -1 | -1 |
Amortization of prior service benefit (cost) | 0 | 1 | 1 |
Curtailments | 0 | 33 | 0 |
Currency translation | -1 | 0 | -2 |
Total recognized in other comprehensive loss (income) | 71 | -585 | 357 |
Total net postretirement benefits expense and other comprehensive loss (income) | -177 | 469 | -479 |
Health and Life Insurance Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 5 | 7 | 7 |
Interest on obligations | 68 | 62 | 83 |
Amortization of cumulative loss | -16 | -29 | -38 |
Amortization of cumulative loss | -4 | -4 | -5 |
Curtailments | 0 | 0 | 3 |
Contractual termination benefits | 2 | 0 | -2 |
Retrospective payments to retirees | 0 | 0 | -2 |
Premiums on pension insurance | 0 | 0 | 0 |
Expected return on assets | 33 | 33 | 35 |
Net postretirement benefits expense | 54 | 61 | 81 |
Actuarial net loss (gain) | -326 | 175 | 58 |
Amortization of cumulative loss | -16 | -29 | -38 |
Prior service cost (benefit) | 0 | 0 | 0 |
Amortization of prior service benefit (cost) | -4 | -4 | -5 |
Curtailments | 0 | 0 | -3 |
Currency translation | 0 | 0 | 0 |
Total recognized in other comprehensive loss (income) | 314 | -200 | -88 |
Total net postretirement benefits expense and other comprehensive loss (income) | ($368) | $139 | $7 |
Postretirement_Benefits_Schedu3
Postretirement Benefits - Schedule of Benefit Plan Assumptions (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jul. 31, 2012 | Jul. 31, 2012 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | ||||
Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Discount rate used to determine present value of benefit obligation at end of year | 3.70% | 4.10% | ||||||
Expected rate of increase in future compensation levels | 3.50% | 3.50% | ||||||
Discount rate(A) | 3.30% | 4.20% | 4.10% | [1] | 3.20% | [1] | 4.10% | [1] |
Expected long-term rate of return on plan assets | 7.80% | 8.00% | 8.30% | |||||
Expected rate of increase in future compensation levels | 3.50% | 3.50% | 3.50% | |||||
Health and Life Insurance Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Discount rate used to determine present value of benefit obligation at end of year | 3.70% | 4.10% | ||||||
Expected rate of increase in future compensation levels | 0.00% | 0.00% | ||||||
Discount rate(A) | 4.10% | [1] | 3.40% | [1] | 4.20% | [1] | ||
Expected long-term rate of return on plan assets | 7.80% | 8.00% | 8.30% | |||||
Expected rate of increase in future compensation levels | 0.00% | 0.00% | 0.00% | |||||
[1] | ________________________(A)In 2012 for pension benefits, the weighted average discount rate used to compute the expense for the period of November 1, 2011 through July 31, 2012 was 4.2%. Due to plan remeasurements at July 31, 2012 at a rate of 3.3%, the weighted average discount rate for the full fiscal year 2012 was 4.1%. |
Postretirement_Benefits_Effect
Postretirement Benefits - Effect of Changing Assumptions (Details) (Health and Life Insurance Benefits, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Oct. 31, 2014 |
Health and Life Insurance Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $10 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | -9 |
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 239 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | ($207) |
Postretirement_Benefits_Schedu4
Postretirement Benefits - Schedule of Plan Assets (Details) (Pension Benefits, USD $) | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | ||
In Millions, unless otherwise specified | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | $2,627 | $2,519 | $2,411 | ||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Receivables | 2,609 | [1] | 2,574 | [1] | |
Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Receivables | 1,086 | [1] | 1,154 | [1] | |
Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Receivables | 1,427 | [1] | 1,300 | [1] | |
Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Receivables | 96 | [1] | 120 | [1] | |
Cash and Cash Equivalents [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 112 | 107 | |||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 112 | 107 | |||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
US Large Cap [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 227 | 207 | |||
US Large Cap [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 227 | 207 | |||
US Large Cap [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
US Large Cap [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
US Smid Cap [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 313 | 350 | |||
US Smid Cap [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 313 | 350 | |||
US Smid Cap [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
US Smid Cap [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Canadian Equity [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 44 | 93 | |||
Canadian Equity [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 44 | 93 | |||
Canadian Equity [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Canadian Equity [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
International Equity [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 244 | 254 | |||
International Equity [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 244 | 254 | |||
International Equity [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
International Equity [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Emerging Markets Equity [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 108 | 105 | |||
Emerging Markets Equity [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 108 | 105 | |||
Emerging Markets Equity [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Emerging Markets Equity [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Equity [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | -106 | -72 | |||
Equity [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Equity [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Equity [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | -106 | -72 | 4 | ||
Corporate Bond Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 200 | 147 | |||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 200 | 147 | |||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
US Treasury and Government [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 630 | 494 | |||
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 630 | 494 | |||
US Treasury and Government [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Asset-backed Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 8 | 8 | |||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 8 | 8 | |||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Fixed Income Interest Rate [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | -13 | |||
Fixed Income Interest Rate [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Fixed Income Interest Rate [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Fixed Income Interest Rate [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | -13 | 19 | ||
Common And Preferred Stock [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 531 | 583 | |||
Common And Preferred Stock [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Common And Preferred Stock [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 531 | 583 | |||
Common And Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Commodities Investment [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 58 | 68 | |||
Commodities Investment [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Commodities Investment [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 58 | 68 | |||
Commodities Investment [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Hedge Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 106 | 101 | |||
Hedge Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Hedge Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Hedge Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 106 | 101 | 92 | ||
Private Equity Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 94 | 103 | |||
Private Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||||
Private Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Private Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 94 | 103 | 92 | ||
Exchange Traded Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 9 | 6 | |||
Exchange Traded Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 9 | 6 | |||
Exchange Traded Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Exchange Traded Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Mutual Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 29 | 32 | |||
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 29 | 32 | |||
Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Mutual Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Real Estate [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 1 | |||
Real Estate [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Real Estate [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 1 | 1 | ||
Accounts Receivable [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | $9 | $8 | |||
[1] | (A)For October 31, 2014 and 2013, the totals exclude $9 million and $8 million of receivables, respectively, which are included in the change in plan assets table. In addition, the table above includes the fair value of Canadian pension assets translated at the exchange rates as of October 31, 2014 and 2013, respectively, while the change in plan asset table includes the fair value of Canadian pension assets translated at historical foreign currency rates. |
Postretirement_Benefits_Effect1
Postretirement Benefits - Effect of Significant Inputs (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Health and Life Insurance Benefits | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $437 | ||
Fair value of plan assets at end of year | 415 | 447 | 437 |
Health and Life Insurance Benefits | Hedge Funds [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 22 | 21 | |
Health and Life Insurance Benefits | Hedge Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 21 | 19 | |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 1 | 2 | |
Defined Benefit Plans, Realized Gains | 0 | 0 | |
Defined Benefit Plan, Purchases, Sales, and Settlements | 0 | 0 | |
Fair value of plan assets at end of year | 22 | 21 | |
Health and Life Insurance Benefits | Private Equity Funds [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 23 | 26 | |
Health and Life Insurance Benefits | Private Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 26 | 23 | |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 3 | 5 | |
Defined Benefit Plans, Realized Gains | 4 | 0 | |
Defined Benefit Plan, Purchases, Sales, and Settlements | -10 | -2 | |
Fair value of plan assets at end of year | 23 | 26 | |
Pension Benefits | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 2,411 | ||
Fair value of plan assets at end of year | 2,627 | 2,519 | 2,411 |
Pension Benefits | Hedge Funds [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 106 | 101 | |
Pension Benefits | Hedge Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 101 | 92 | |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 5 | 8 | |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | 0 | 1 | |
Defined Benefit Plan, Purchases, Sales, and Settlements | 0 | 0 | |
Fair value of plan assets at end of year | 106 | 101 | |
Pension Benefits | Private Equity Funds [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 94 | 103 | |
Pension Benefits | Private Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 103 | 92 | |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 10 | 18 | |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | 15 | 0 | |
Defined Benefit Plan, Purchases, Sales, and Settlements | -34 | -7 | |
Fair value of plan assets at end of year | 94 | 103 | |
Pension Benefits | Real Estate [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 1 | 1 | |
Pension Benefits | Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 1 | 1 | |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 0 | 0 | |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | 0 | 0 | |
Defined Benefit Plan, Purchases, Sales, and Settlements | 0 | 0 | |
Fair value of plan assets at end of year | 1 | 1 | |
Pension Benefits | Fixed Income Interest Rate [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 1 | -13 | |
Pension Benefits | Fixed Income Interest Rate [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | -13 | 19 | |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 14 | -32 | |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | 0 | 4 | |
Defined Benefit Plan, Purchases, Sales, and Settlements | 0 | -4 | |
Fair value of plan assets at end of year | 1 | -13 | |
Pension Benefits | Equity [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | -106 | -72 | |
Pension Benefits | Equity [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | -72 | 4 | |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | -43 | -90 | |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | 0 | 10 | |
Defined Benefit Plan, Purchases, Sales, and Settlements | 9 | 4 | |
Fair value of plan assets at end of year | ($106) | ($72) |
Postretirement_Benefits_Alloca
Postretirement Benefits - Allocation of Plan Assets (Details) (Health and Life Insurance Benefits, USD $) | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | ||
In Millions, unless otherwise specified | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | $415 | $447 | $437 | ||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Receivables | 414 | [1] | 446 | [1] | |
Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Receivables | 183 | [1] | 216 | [1] | |
Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Receivables | 186 | [1] | 183 | [1] | |
Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Receivables | 45 | [1] | 47 | [1] | |
Cash and Cash Equivalents [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 16 | 32 | |||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 16 | 32 | |||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
US Large Cap [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 28 | 28 | |||
US Large Cap [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 28 | 28 | |||
US Large Cap [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
US Large Cap [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
US Smid Cap [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 60 | 69 | |||
US Smid Cap [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 60 | 69 | |||
US Smid Cap [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
US Smid Cap [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
International Equity [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 60 | 65 | |||
International Equity [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 60 | 65 | |||
International Equity [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
International Equity [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Emerging Markets Equity [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 19 | 22 | |||
Emerging Markets Equity [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 19 | 22 | |||
Emerging Markets Equity [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Emerging Markets Equity [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Corporate Bond Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 55 | 52 | |||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 55 | 52 | |||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
US Treasury and Government [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 49 | 43 | |||
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 49 | 43 | |||
US Treasury and Government [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Asset-backed Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 3 | 4 | |||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 3 | 4 | |||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Common Stock [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 69 | 71 | |||
Common Stock [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Common Stock [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 69 | 71 | |||
Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Commodities Investment [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 10 | 13 | |||
Commodities Investment [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Commodities Investment [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 10 | 13 | |||
Commodities Investment [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Hedge Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 22 | 21 | |||
Hedge Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Hedge Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Hedge Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 22 | 21 | 19 | ||
Private Equity Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 23 | 26 | |||
Private Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Private Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Private Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 23 | 26 | 23 | ||
Accounts Receivable [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | $1 | $1 | |||
[1] | (A)For both October 31, 2014 and 2013, the totals exclude $1 million of receivables, which are included in the change in plan asset table. |
Postretirement_Benefits_Expect
Postretirement Benefits - Expected Future Benefit Costs (Details) (USD $) | Oct. 31, 2014 | |
In Millions, unless otherwise specified | ||
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | $312 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 304 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 296 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 288 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 280 | |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 1,278 | |
Health and Life Insurance Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 143 | [1] |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 132 | [1] |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 137 | [1] |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 130 | [1] |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 127 | [1] |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $600 | [1] |
[1] | (A)Payments are net of expected participant contributions and expected federal subsidy receipts. |
Postretirement_Benefits_Narrat
Postretirement Benefits - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | |||
Share data in Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2014 | Oct. 31, 1993 | Jul. 31, 2014 | Feb. 29, 2012 | 31-May-14 |
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $148,000,000 | ||||||||
Defined Benefit Plan, Accumulated Benefit Obligation | 3,900,000,000 | 4,000,000,000 | 3,900,000,000 | 4,000,000,000 | |||||
Restructuring charges | 42,000,000 | 25,000,000 | 107,000,000 | ||||||
Defined benefit plan, weighted average rate of increase in in per capita cost percent of benefit obligation | 8.25% | ||||||||
Defined Contribution Plan, Cost Recognized | 27,000,000 | 41,000,000 | |||||||
Curtailments | 4,000,000 | ||||||||
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease) | 33,000,000 | ||||||||
Pension and other postretirment charges due to reduction in workfroce | 7,000,000 | ||||||||
Equity Method Investments [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Target Plan Asset Allocations | 55.00% | ||||||||
Fixed Income Investments [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Target Plan Asset Allocations | 30.00% | ||||||||
Other Investments [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Target Plan Asset Allocations | 10.00% | ||||||||
Cash [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Target Plan Asset Allocations | 5.00% | ||||||||
US Large Cap [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Target Plan Asset Allocations | 15.00% | ||||||||
United States Postretirement Benefit Plan of US Entity [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Deferred Income Taxes and Other Assets, Noncurrent | 537,000,000 | 537,000,000 | |||||||
Pension Benefits | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Employer contributions | 164,000,000 | 165,000,000 | 164,000,000 | ||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 71,000,000 | -585,000,000 | 357,000,000 | ||||||
Curtailments | 2,000,000 | 33,000,000 | |||||||
Plan participants' contributions | 0 | 0 | |||||||
Benefits paid | 318,000,000 | 333,000,000 | |||||||
Health and Life Insurance Benefits | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Employer contributions | 2,000,000 | 3,000,000 | |||||||
Defined benefit plan, weighted average rate of increase in in per capita cost percent of benefit obligation | 91.00% | ||||||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 7.80% | ||||||||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | ||||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 314,000,000 | -200,000,000 | -88,000,000 | ||||||
Curtailments | 0 | 0 | |||||||
Plan participants' contributions | 40,000,000 | 28,000,000 | |||||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 2,000,000 | ||||||||
Benefits paid | 185,000,000 | 188,000,000 | |||||||
Defined benefit plan, benefits paid from Company assets | 51,000,000 | 60,000,000 | |||||||
Unfunded pension plan [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Benefits paid | 14,000,000 | ||||||||
Other Pension Plan, Postretirement or Supplemental Plans [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Contribution To The Trust Shares | 25.5 | ||||||||
Early Retiree Reinsurance Program [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Plan participants' contributions | 0 | 3,000,000 | |||||||
Indianapolis and Waukesha Foundry [Member] | North America Truck [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Restructuring charges | 13,000,000 | ||||||||
Indianapolis and Waukesha Foundry [Member] | North America Truck [Member] | Pension And Other Postretirement Contractual Termination Benefits [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Restructuring charges | 11,000,000 | ||||||||
Chatham [Member] | Facility Closing [Member] | Health and Life Insurance Benefits | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Postemployment Benefits, Period Expense | 14,000,000 | ||||||||
Chatham [Member] | North America Truck [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Restructuring charges | 14,000,000 | ||||||||
Effect Of Remeasurement On Plan [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 10,000,000 | ||||||||
Call Option [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Derivative, Notional Amount | $183,000,000 | ||||||||
Designated as Hedging Instrument [Member] | Put Option [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Derivative, Term of Contract | 3 years |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Operating Loss Carryforwards [Line Items] | |||||
Unrecognized Tax Benefits that Would Not Impact Effective Tax Rate | $4 | $4 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 870 | 870 | |||
Income Tax Expense (Benefit) | 26 | -171 | 1,780 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | -16 | 29 | 234 | 350 | 2,200 |
Undistributed Earnings of Foreign Subsidiaries | 469 | 469 | |||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 144 | 144 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 199 | 199 | |||
Deferred Tax Assets, Operating Loss Carryforwards | 1,213 | 1,213 | 840 | ||
Deferred Tax Assets, Valuation Allowance | 3,174 | 3,174 | 2,773 | ||
Income Taxes Percent Likelihood Of Being Realized Upon Settlement | 50.00% | 50.00% | |||
Unrecognized Tax Benefits | 47 | 47 | 88 | ||
offsetting tax benefits associated with the correlative effects of potential transfer pricing adjustments | 12 | 12 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 6 | 11 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 8 | 8 | 12 | ||
Liability for Uncertain Tax Benefits Time Range | 12 days | ||||
Intraperiod Tax Allocation Rule [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income Tax Expense (Benefit) | -220 | ||||
Domestic Tax Authority [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | -189 | ||||
Other Comprehensive Income (Loss) [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income Tax Expense (Benefit) | -212 | ||||
Additional Paid-in Capital [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income Tax Expense (Benefit) | -8 | ||||
Convertible Subordinated Debt [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income Tax Expense (Benefit) | -13 | ||||
Stock Option Tax Benefits [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Deferred Tax Assets, Operating Loss Carryforwards | $62 | $62 | |||
Minimum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating Loss Carryforwards, Duration of Carryforward | 5 years | ||||
Maximum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating Loss Carryforwards, Duration of Carryforward | 20 years |
Income_Taxes_Loss_From_Continu
Income Taxes - Loss From Continuing Operations Before Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | ($398) | ($1,045) | ($893) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | -158 | 71 | -218 |
Income (loss) before income taxes | ($556) | ($974) | ($1,111) |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Benefit (Expense) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||
Current Federal Tax Expense (Benefit) | $0 | $4 | ($2) | ||
Current State and Local Tax Expense (Benefit) | 7 | -10 | -11 | ||
Current Foreign Tax Expense (Benefit) | -48 | -58 | 4 | ||
Current Income Tax Expense (Benefit) | -41 | -64 | -9 | ||
Deferred Federal Income Tax Expense (Benefit) | 13 | 219 | -1,841 | ||
Deferred State and Local Income Tax Expense (Benefit) | 0 | 2 | -137 | ||
Deferred Foreign Income Tax Expense (Benefit) | 2 | 14 | 207 | ||
Deferred Income Tax Expense (Benefit) | 15 | 235 | -1,771 | ||
Income Tax Expense (Benefit) | -26 | 171 | -1,780 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | ($16) | $29 | $234 | $350 | $2,200 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Income Tax to Statutory Income Tax (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $195 | $341 | $389 |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | -4 | -4 | -6 |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | -5 | 0 | 10 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | -234 | -350 | -2,207 |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | -37 | -8 | -17 |
Effective Income Tax Rate Reconciliation, Tax Contingency, Amount | 15 | -16 | 11 |
Effective Income Tax Rate Reconciliation, Tax Expense related to Equity Components | 13 | 220 | 0 |
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Amount | 14 | 19 | 17 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 17 | -31 | 23 |
Income Tax Expense (Benefit) | ($26) | $171 | ($1,780) |
Income_Taxes_Schedule_of_Defer
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Benefits | $1,210 | $1,107 |
Deferred Tax Assets, Operating Loss Carryforwards | 1,213 | 840 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Warranty Reserves | 494 | 546 |
Deferred Tax Assets, in Process Research and Development | 9 | 26 |
Deferred Tax Assets, Tax Credit Carryforwards | 256 | 259 |
Deferred Tax Assets, Other | 194 | 271 |
Deferred Tax Assets, Gross | 3,376 | 3,049 |
Deferred Tax Assets, Valuation Allowance | 3,174 | 2,773 |
Deferred Tax Assets, Net of Valuation Allowance | 202 | 276 |
Deferred Tax Liabilities, Goodwill and Intangible Assets | -6 | -72 |
Deferred Tax Liabilities, Other | -10 | -5 |
Deferred Tax Liabilities, Net | ($16) | ($77) |
Income_Taxes_Schedule_of_Unrec
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Oct. 31, 2014 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Unrecognized Tax Benefits | $88 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 1 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | -7 |
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation | -2 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | -32 |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | -1 |
Unrecognized Tax Benefits | $47 |
Fair_Value_Measurements_Financ
Fair Value Measurements - Financial Instruments Measured on Recurring Basis (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Oct. 31, 2014 | Oct. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure | $605 | $830 | ||
Guarantees, Fair Value Disclosure | 0 | 0 | ||
Liabilities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure | 1 | 5 | ||
Guarantees, Fair Value Disclosure | 0 | 0 | ||
Liabilities, Fair Value Disclosure | 2 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure | 0 | 0 | ||
Guarantees, Fair Value Disclosure | 8 | 6 | ||
Liabilities, Fair Value Disclosure | 8 | 6 | ||
Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure | 606 | 835 | ||
Guarantees, Fair Value Disclosure | 8 | 6 | ||
Liabilities, Fair Value Disclosure | 10 | 6 | ||
US Treasury Bill Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 256 | 396 | ||
US Treasury Bill Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
US Treasury Bill Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
US Treasury Bill Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 256 | 396 | ||
Other Investment Companies [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 349 | 434 | ||
Other Investment Companies [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
Other Investment Companies [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
Other Investment Companies [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 349 | 434 | ||
Other Current Assets [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency contracts | 0 | [1] | 0 | [1] |
Other Current Assets [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency contracts | 0 | [1] | 4 | [1] |
Other Current Assets [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency contracts | 0 | [1] | 0 | [1] |
Other Current Assets [Member] | Foreign Exchange Contract [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency contracts | 0 | [1] | 4 | [1] |
Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency contracts | 0 | [2] | 0 | [2] |
Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency contracts | 1 | [2] | 1 | [2] |
Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency contracts | 0 | [2] | 0 | [2] |
Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency contracts | 1 | [2] | 1 | [2] |
Other Current Liabilities [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 0 | [3] | 0 | [3] |
Other Current Liabilities [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 2 | [3] | 0 | [3] |
Other Current Liabilities [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 0 | [3] | 0 | [3] |
Other Current Liabilities [Member] | Commodity Contract [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | $2 | [3] | $0 | [3] |
[1] | The asset value of foreign currency contracts are included in other current assets for the year ended October 31, 2013 in the accompanying Consolidated Balance Sheets. | |||
[2] | The asset value of interest rate caps are included in other noncurrent assets for the years ended October 31, 2014 and 2013 in the accompanying Consolidated Balance Sheets. | |||
[3] | The asset value of commodity forward contracts are included in other current liabilities for the year ended October 31, 2014 in the accompanying Consolidated Balance Sheets. |
Fair_Value_Measurements_Level_
Fair Value Measurements - Level 3 Reconciliation (Details) (Guarantees [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 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) |
Transfers out of Level 3 | 0 | 0 |
Issuances | -2 | 0 |
Settlements | 0 | 1 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset (Liability) Ending Value | -8 | -6 |
Change in unrealized gains on assets and liabilities still held | $0 | $0 |
Fair_Value_Measurements_Financ1
Fair Value Measurements - Financial Instruments Measured on Nonrecurring Basis (Details) (USD $) | Oct. 31, 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 | $20 | $15 | ||
Impaired finance receivables with specific loss reserves [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired Financing Receivable, Recorded Investment | 20 | [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] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Specific loss reserve | -6 | -6 | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Finance Receivables Fair Value Disclosure | $14 | $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 $) | Oct. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | ||
In Millions, unless otherwise specified | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | $5,224 | ||||
Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Retail Notes | 279 | 390 | |||
Notes Receivable | 7 | 13 | |||
Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Retail Notes | 275 | 390 | |||
Notes Receivable | 8 | 14 | |||
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Retail Notes | 0 | 0 | |||
Notes Receivable | 0 | 0 | |||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Retail Notes | 0 | 0 | |||
Notes Receivable | 0 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Retail Notes | 279 | 390 | |||
Notes Receivable | 7 | 13 | |||
Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 2,958 | ||||
Financial Services Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 2,266 | ||||
Line of Credit [Member] | Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 694 | 693 | |||
Line of Credit [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 704 | 720 | |||
Line of Credit [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 694 | 693 | |||
Line of Credit [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Line of Credit [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Line of Credit [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 704 | 720 | |||
Line of Credit [Member] | Financial Services Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 1,242 | 1,018 | |||
Line of Credit [Member] | Financial Services Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 1,214 | 990 | |||
Line of Credit [Member] | Financial Services Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 1,242 | 1,018 | |||
Line of Credit [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Line of Credit [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Line of Credit [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 1,214 | 990 | |||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 30 | 48 | |||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 30 | 48 | |||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 30 | 48 | |||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 30 | 48 | |||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 22 | 44 | |||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 48 | 73 | |||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 22 | 44 | |||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 225 | 225 | |||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 232 | 229 | |||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 225 | 225 | |||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 232 | 229 | |||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Promissory Note [Member] | Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 10 | 20 | |||
Promissory Note [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 10 | 20 | |||
Promissory Note [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 10 | 20 | |||
Promissory Note [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Promissory Note [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Promissory Note [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 10 | 20 | |||
Financed lease obligations [Member] | Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 184 | 218 | |||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 184 | 218 | |||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 184 | 218 | |||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 184 | 218 | |||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 29 | 39 | |||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 28 | 36 | |||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 29 | 39 | |||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 28 | 36 | |||
Secured Debt [Member] | Financial Services Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 914 | 778 | |||
Secured Debt [Member] | Financial Services Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 911 | 775 | |||
Secured Debt [Member] | Financial Services Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 914 | 778 | |||
Secured Debt [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Secured Debt [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Secured Debt [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 911 | 775 | |||
Commercial Paper [Member] | Financial Services Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 74 | 21 | |||
Commercial Paper [Member] | Financial Services Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 74 | 21 | |||
Commercial Paper [Member] | Financial Services Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 74 | 21 | |||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 74 | ||||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 21 | ||||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | ||||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | ||||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | ||||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | ||||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 36 | 49 | |||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 36 | 49 | |||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 36 | 49 | |||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 36 | 49 | |||
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 | 1,180 | 1,178 | |||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 1,285 | 1,274 | |||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 1,180 | 1,178 | |||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 1,285 | 1,274 | |||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 0 | 544 | |||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 586 | [1] | |||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 544 | [1] | |||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 586 | [1] | |||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | [1] | |||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | [1] | |||
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 177 | ||||
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 177 | ||||
Long-term Debt | 181 | 177 | |||
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 196 | [1] | 203 | [1] | |
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 181 | [1] | 177 | [1] | |
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | [1] | 0 | [1] | |
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | [1] | 0 | [1] | |
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 196 | [1] | 203 | [1] | |
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [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] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 367 | ||||
Long-term Debt | 371 | 0 | |||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 413 | [1] | |||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 371 | [1] | |||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | [1] | |||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | [1] | |||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | $413 | [1] | |||
[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 Level 1 convertible notes which include the equity feature and internally developed valuation techniques such as discounted cash flow modeling for Level 3 convertible notes which include the equity feature. |
Fair_Value_Measurements_Narrat
Fair Value Measurements - Narrative (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2013 | Oct. 31, 2011 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Goodwill | $38 | $184 | $184 | $280 | $319 | |||||
Cash and Cash Equivalents, Maturity Term | 90 days | |||||||||
Marketable Securities, Maturity Term | 90 days | |||||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 34 | 46 | 46 | |||||||
Impairment of Long-Lived Assets Held-for-use | 20 | |||||||||
Goodwill, Impairment Loss | 142 | 81 | ||||||||
Reported Value Measurement [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Property, Plant, and Equipment and Intangible Assets, Fair Value Disclosure | 25 | 25 | ||||||||
Estimate of Fair Value Measurement [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Property, Plant, and Equipment, Fair Value Disclosure | 5 | 5 | ||||||||
Brazilian Reporting Unit [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Goodwill | 142 | |||||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 43 | |||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 7 | 7 | 0 | 0 | ||||||
Goodwill, Impairment Loss | 142 | [1] | 81 | [1] | 0 | [1] | ||||
North America Truck [Member] | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Goodwill | 0 | 0 | 0 | 82 | 82 | |||||
Goodwill, Impairment Loss | $0 | $81 | ($77) | ($4) | ||||||
[1] | (A)For more information, see Note 8, Goodwill and Other Intangible Assets, Net, and includes $4 million related to discontinued operations in 2013. |
Financial_Instruments_and_Comm2
Financial Instruments and Commodity Contracts - Narrative (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Derivative [Line Items] | |||
Derivative, Amount of Hedged Item | $0 | $0 | $0 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | |
Exposure to Credit Risk | 1,000,000 | 5,000,000 | |
Interest Rate Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 27,000,000 | 45,000,000 | |
Diesel Fuel Forward Contracts [Member] | Commodity Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 24,000,000 | 2,000,000 | |
Steel Forward Contracts [Member] | Commodity Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 23,000,000 | 11,000,000 | |
Mexican Financial Services [Member] | Asset-backed Securities [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 134,000,000 | ||
Mexican Financial Services [Member] | Interest Rate Cap [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $78,000,000 |
Financial_Instruments_and_Comm3
Financial Instruments and Commodity Contracts - Income Statement Location (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $4 | ($2) | ($11) |
Foreign currency contracts | Other Income Expense Net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -1 | -4 | -4 |
Cross currency swaps | Other Income Expense Net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 3 | 0 | 1 |
Interest Rate Cap [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 1 | 0 | 0 |
Commodity Contract [Member] | Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | ($1) | ($2) | ($8) |
Financial_Instruments_and_Comm4
Financial Instruments and Commodity Contracts - Foreign Currency Contracts (Details) (Foreign Exchange Contract [Member]) | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | |
In Millions, unless otherwise specified | USD ($) | EUR (€) | EUR (€) | Contract 1 [Member] | Contract 1 [Member] | Contract 1 [Member] | Contract 1 [Member] | Contract 2 [Member] | |
USD ($) | CAD | USD ($) | CAD | CAD | |||||
Derivative [Line Items] | |||||||||
Derivative, Notional Amount | $4 | € 9 | [1] | € 2 | $4 | 5 | $25 | 90 | 50 |
[1] | Forward exchange contracts of €1 expire on the last day of each month from February 2015 through October 2015. |
Commitments_and_Contingencies_
Commitments and Contingencies - Narrative (Details) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Mar. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 25, 2011 | 31-May-13 | Dec. 31, 2012 | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2014 | Dec. 31, 1999 | 30-May-10 | Dec. 31, 2009 | Oct. 31, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2012 | |
USD ($) | USD ($) | USD ($) | Sao Paulo Groundwater Notice [Member] | Sao Paulo Groundwater Notice [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] | 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] | 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] | Manufacturing Operations [Member] | |
site | Sanctions [Member] | Sanctions [Member] | 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] | Lis Franco vs. Syntex and MWM, Trial [Member] | Lis Franco vs. Syntex and MWM, Trial [Member] | engine | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Financed lease obligations [Member] | Financed lease obligations [Member] | G E Operating Agreement [Member] | G E Operating Agreement [Member] | ||||||
BRL | USD ($) | USD ($) | Penalties [Member] | Penalties [Member] | BRL | BRL | BRL | BRL | BRL | USD ($) | Royalties [Member] | Royalties [Member] | Royalties [Member] | USD ($) | USD ($) | Financed lease obligations [Member] | Financed lease obligations [Member] | |||||||||||||||
USD ($) | BRL | BRL | BRL | BRL | USD ($) | 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 | 2,300,000,000 | 2,000,000,000 | ||||||||||||||||||||||||||||||
Equipment leased to others | 677,000,000 | 663,000,000 | 156,000,000 | |||||||||||||||||||||||||||||
Long-term Debt | 5,224,000,000 | 2,958,000,000 | 184,000,000 | 218,000,000 | 181,000,000 | 167,000,000 | ||||||||||||||||||||||||||
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 | 90,000,000 | |||||||||||||||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 13,000,000 | |||||||||||||||||||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 9,000,000 | |||||||||||||||||||||||||||||||
Purchase commitments | 154,000,000 | |||||||||||||||||||||||||||||||
Long Term Purchase Commitment Cancellation Fees | 41,000,000 | |||||||||||||||||||||||||||||||
Number of Contaminated Sites | 2 | |||||||||||||||||||||||||||||||
Number of Contaminated Sites in Sao Paulo, Brazil | 2 | |||||||||||||||||||||||||||||||
Accrual for environmental loss contingencies | 21,000,000 | |||||||||||||||||||||||||||||||
Damages sought, value | 3,000,000 | 1,200,000 | 50,000,000 | 1,000,000 | 2,000,000 | 10,850,000 | 25,000,000 | 22,000,000 | 3,500,000 | 42,000,000 | ||||||||||||||||||||||
Loss Contingency, Loss in Period | 8,500,000 | 20,000,000 | 8,200,000 | |||||||||||||||||||||||||||||
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 | $2,000,000 | $36,000,000 | $2,500,000 |
Segment_Reporting_Narrative_De
Segment Reporting - Narrative (Details) | 12 Months Ended |
Oct. 31, 2014 | |
segments | |
Segment Reporting Information [Line Items] | |
Number Of Segments | 4 |
Concentration Risk, Customer | 0 |
North America Parts [Member] | |
Segment Reporting Information [Line Items] | |
Number Of Regional Parts Distribution Centers | 12 |
Segment_Reporting_Summary_of_S
Segment Reporting - Summary of Segment Assets (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | $7,443 | $8,315 |
North America Truck [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 2,145 | 2,250 |
North America Parts [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 682 | 716 |
Global Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 749 | 1,162 |
Financial Services Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 2,598 | 2,355 |
Corporate And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | $1,269 | $1,832 |
Segment_Reporting_Summary_of_S1
Segment Reporting - Summary of Segment Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||||||||||
External sales and revenues, net | $10,806 | $10,775 | $12,695 | |||||||||||
Intersegment sales and revenues | 0 | 0 | 0 | |||||||||||
Sales and revenues, net | 3,008 | 2,844 | 2,746 | 2,208 | 2,751 | 2,861 | 2,526 | 2,637 | 10,806 | 10,775 | 12,695 | |||
Loss from continuing operations, net of tax | -622 | -857 | -2,939 | |||||||||||
Income tax expense | -26 | 171 | -1,780 | |||||||||||
Segment Profit Loss | -596 | -1,028 | -1,159 | |||||||||||
Depreciation and amortization | 332 | 417 | 323 | |||||||||||
Interest expense | 314 | 321 | 259 | |||||||||||
Equity in income (loss) of non-consolidated affiliates | 9 | 11 | -29 | |||||||||||
Capital expenditures | 88 | [1] | 167 | [1] | 309 | [1] | ||||||||
North America Truck [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
External sales and revenues, net | 6,660 | 6,312 | 7,946 | |||||||||||
Intersegment sales and revenues | 420 | 486 | 442 | |||||||||||
Sales and revenues, net | 7,080 | 6,798 | 8,388 | |||||||||||
Loss from continuing operations, net of tax | -408 | -902 | -736 | |||||||||||
Income tax expense | 0 | 0 | 0 | |||||||||||
Segment Profit Loss | -408 | -902 | -736 | |||||||||||
Depreciation and amortization | 212 | 305 | 216 | |||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||
Equity in income (loss) of non-consolidated affiliates | 5 | 10 | -1 | |||||||||||
Capital expenditures | 65 | [1] | 142 | [1] | 173 | [1] | ||||||||
North America Parts [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
External sales and revenues, net | 2,471 | 2,558 | 2,497 | |||||||||||
Intersegment sales and revenues | 46 | 57 | 124 | |||||||||||
Sales and revenues, net | 2,517 | 2,615 | 2,621 | |||||||||||
Loss from continuing operations, net of tax | 500 | 476 | 343 | |||||||||||
Income tax expense | 0 | 0 | 0 | |||||||||||
Segment Profit Loss | 500 | 476 | 343 | |||||||||||
Depreciation and amortization | 15 | 17 | 16 | |||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||
Equity in income (loss) of non-consolidated affiliates | 4 | 6 | 5 | |||||||||||
Capital expenditures | 6 | [1] | 2 | [1] | 21 | [1] | ||||||||
Global Operations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
External sales and revenues, net | 1,522 | 1,747 | 2,084 | |||||||||||
Intersegment sales and revenues | 35 | 78 | 126 | |||||||||||
Sales and revenues, net | 1,557 | 1,825 | 2,210 | |||||||||||
Loss from continuing operations, net of tax | -218 | -6 | -168 | |||||||||||
Income tax expense | 0 | 0 | 0 | |||||||||||
Segment Profit Loss | -218 | -6 | -168 | |||||||||||
Depreciation and amortization | 32 | 32 | 36 | |||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||
Equity in income (loss) of non-consolidated affiliates | 0 | -5 | -33 | |||||||||||
Capital expenditures | 8 | [1] | 9 | [1] | 50 | [1] | ||||||||
Financial Services Operations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
External sales and revenues, net | 153 | [2] | 158 | [2] | 168 | [2] | ||||||||
Intersegment sales and revenues | 79 | [2] | 75 | [2] | 91 | [2] | ||||||||
Sales and revenues, net | 232 | [2] | 233 | [2] | 259 | [2] | ||||||||
Loss from continuing operations, net of tax | 97 | [2] | 81 | [2] | 91 | [2] | ||||||||
Income tax expense | 0 | [2] | 0 | [2] | 0 | [2] | ||||||||
Segment Profit Loss | 97 | [2] | 81 | [2] | 91 | [2] | ||||||||
Depreciation and amortization | 46 | [2] | 40 | [2] | 33 | [2] | ||||||||
Interest expense | 71 | [2] | 70 | [2] | 88 | [2] | ||||||||
Equity in income (loss) of non-consolidated affiliates | 0 | [2] | 0 | [2] | 0 | [2] | ||||||||
Capital expenditures | 1 | [1],[2] | 2 | [1],[2] | 3 | [1],[2] | ||||||||
Investment Income, Interest | 170 | 254 | 181 | |||||||||||
Corporate And Eliminations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
External sales and revenues, net | 0 | 0 | 0 | |||||||||||
Intersegment sales and revenues | -580 | -696 | -783 | |||||||||||
Sales and revenues, net | -580 | -696 | -783 | |||||||||||
Loss from continuing operations, net of tax | -593 | -506 | -2,469 | |||||||||||
Income tax expense | -26 | 171 | -1,780 | |||||||||||
Segment Profit Loss | -567 | -677 | -689 | |||||||||||
Depreciation and amortization | 27 | 23 | 22 | |||||||||||
Interest expense | 243 | 251 | 171 | |||||||||||
Equity in income (loss) of non-consolidated affiliates | 0 | 0 | 0 | |||||||||||
Capital expenditures | $8 | [1] | $12 | [1] | $62 | [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 $170 million, $181 million, and $254 million for 2014, 2013, 2012, respectively. |
Segment_Reporting_Summary_of_S2
Segment Reporting - Summary of Segment Long Lived Assets and Revenue (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Sales and revenues, net | $3,008 | $2,844 | $2,746 | $2,208 | $2,751 | $2,861 | $2,526 | $2,637 | $10,806 | $10,775 | $12,695 | ||||
UNITED STATES | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Sales and revenues, net | 7,760 | 7,122 | 8,822 | ||||||||||||
Long-Lived Assets | 1,277 | [1] | 1,467 | [1] | 1,277 | [1] | 1,467 | [1] | |||||||
CANADA | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Sales and revenues, net | 749 | 791 | 949 | ||||||||||||
Long-Lived Assets | 26 | [1] | 26 | [1] | 26 | [1] | 26 | [1] | |||||||
MEXICO | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Sales and revenues, net | 657 | 694 | 728 | ||||||||||||
Long-Lived Assets | 190 | [1] | 157 | [1] | 190 | [1] | 157 | [1] | |||||||
BRAZIL | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Sales and revenues, net | 833 | 1,121 | 1,066 | ||||||||||||
Long-Lived Assets | 182 | [1] | 376 | [1] | 182 | [1] | 376 | [1] | |||||||
Other Countries [Member] | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Sales and revenues, net | 807 | 1,047 | 1,130 | ||||||||||||
Long-Lived Assets | 15 | [1] | 37 | [1] | 15 | [1] | 37 | [1] | |||||||
Truck [Member] | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Sales and revenues, net | 7,137 | 6,738 | 8,705 | ||||||||||||
Parts [Member] | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Sales and revenues, net | 2,424 | 2,906 | 2,886 | ||||||||||||
Engine [Member] | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Sales and revenues, net | 1,092 | 973 | 936 | ||||||||||||
Financial Services Operations [Member] | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Sales and revenues, net | $153 | $158 | $168 | ||||||||||||
[1] | Long-lived assets consist of Property and equipment, net, Goodwill, and Intangible assets, net. |
Stockholders_Deficit_Narrative
Stockholders' Deficit - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||||
In Millions, except Share data, unless otherwise specified | Jan. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2009 | Nov. 30, 2011 | Oct. 31, 2011 | Jan. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Jul. 31, 2013 | Jul. 31, 2007 | Apr. 30, 2014 |
Class of Stock [Line Items] | ||||||||||||||
Stock Repurchase Program, Authorized Amount | $75 | $75 | ||||||||||||
Common stock, shares issued | 81,400,000 | 80,500,000 | ||||||||||||
Preferred Stock, Shares Authorized | 30,000,000 | |||||||||||||
Proceeds from Issuance of Common Stock | 14 | 192 | 0 | 14 | 192 | |||||||||
Preferred Stock, Shares Issued | 0 | |||||||||||||
Preferred Stock, Par or Stated Value Per Share | $1 | |||||||||||||
Debt Instrument, Unamortized Discount | 82 | |||||||||||||
Payments for Repurchase of Common Stock | 0 | 0 | 75 | |||||||||||
Common stock, shares authorized | 220,000,000 | 220,000,000 | ||||||||||||
Common stock, par value | $0.10 | $0.10 | ||||||||||||
Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 0.001 | |||||||||||||
Series A Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred Stock, Shares Authorized | 220,000 | 220,000 | 110,000 | |||||||||||
Preferred Stock, Par or Stated Value Per Share | $1 | |||||||||||||
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 | $18.75 | |||||||||||
Preference Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | ||||||||||||
Preferred Stock, Par or Stated Value Per Share | $1 | $1 | ||||||||||||
Convertible Junior Preference Stock Series D [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $1 | $1 | ||||||||||||
Preferred Stock, Shares Outstanding | 100,702 | 120,096 | ||||||||||||
Preferred Stock, Liquidation Preference Per Share | $25 | $25 | ||||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 0.3125 | 0.3125 | ||||||||||||
Preferred Stock, Dividend Rate, Percentage | 120.00% | |||||||||||||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Proceeds from Issuance of Warrants | 87 | |||||||||||||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Call Option [Member] | Convertible Subordinated Debt [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Payments for Derivative Instrument, Investing Activities | 125 | |||||||||||||
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Long-term Debt, Fair Value | 177 | |||||||||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | 22 | |||||||||||||
Debt Instrument, Unamortized Discount | 1 | |||||||||||||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Long-term Debt, Fair Value | 367 | |||||||||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | 44 | |||||||||||||
Debt Instrument, Unamortized Discount | 1 | |||||||||||||
Maximum [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock Repurchase Program, Authorized Amount | 175 | |||||||||||||
Accelerated Share Repurchases Program [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock Repurchase Program, Authorized Amount | 100 | |||||||||||||
Treasury Stock, Shares, Acquired | 2,542,609 | |||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 20 | |||||||||||||
October 2011 [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | 80 | 80 | ||||||||||||
Accelerated Share Repurchases, Initial Price Paid Per Share | $33.60 | |||||||||||||
October 2011 [Member] | Accelerated Share Repurchases Program [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Treasury Stock, Shares, Acquired | 2,380,952 | |||||||||||||
November 2011 [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | 20 | 20 | ||||||||||||
November 2011 [Member] | Accelerated Share Repurchases Program [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Treasury Stock, Additional Shares Acquired | 161,657 | |||||||||||||
Open Market Share Repurchase Program [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock Repurchase Program, Authorized Amount | 75 | |||||||||||||
Treasury Stock, Shares, Acquired | 1,905,600 | |||||||||||||
Payments for Repurchase of Common Stock | $5 | $70 |
Stockholders_Deficit_Accumulat
Stockholders' Deficit Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Oct. 31, 2014 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Accumulated Other Comprehensive Loss, Beginning Balance | ($1,824) |
Other comprehensive income (loss) before reclassifications | -542 |
Amounts reclassified out of accumulated other comprehensive loss | 103 |
Net current-period other comprehensive income (loss) | -439 |
Accumulated Other Comprehensive Loss, Ending Balance | -2,263 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Accumulated Other Comprehensive Loss, Beginning Balance | 0 |
Other comprehensive income (loss) before reclassifications | 1 |
Amounts reclassified out of accumulated other comprehensive loss | 0 |
Net current-period other comprehensive income (loss) | 1 |
Accumulated Other Comprehensive Loss, Ending Balance | 1 |
Accumulated Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Accumulated Other Comprehensive Loss, Beginning Balance | -75 |
Other comprehensive income (loss) before reclassifications | -52 |
Amounts reclassified out of accumulated other comprehensive loss | 0 |
Net current-period other comprehensive income (loss) | -52 |
Accumulated Other Comprehensive Loss, Ending Balance | -127 |
Pension Benefits | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Accumulated Other Comprehensive Loss, Beginning Balance | -1,749 |
Other comprehensive income (loss) before reclassifications | -491 |
Amounts reclassified out of accumulated other comprehensive loss | 103 |
Net current-period other comprehensive income (loss) | -388 |
Accumulated Other Comprehensive Loss, Ending Balance | -2,137 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 105 |
Other Comprehensive Income (Loss), Tax | -2 |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) [Member] | Selling, General and Administrative Expenses [Member] | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | -4 |
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) [Member] | Selling, General and Administrative Expenses [Member] | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $109 |
Loss_Per_Share_Attributable_to2
Loss Per Share Attributable to Navistar International Corporation - Basic & Diluted Loss per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Loss from continuing operations, net of tax | ($622) | ($857) | ($2,939) | ||||||||
Income (loss) from discontinued operations, net of tax | 3 | -41 | -71 | ||||||||
Net loss attributable to Navistar International Corporation | ($619) | ($898) | ($3,010) | ||||||||
Basic (in shares) | 40.17 | 39.41 | 0 | 0 | 39.79 | 38.81 | 0 | 0 | 81,400,000 | 80,400,000 | 69,100,000 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 0 | ||||||||
Diluted (in shares) | 29.54 | 32.45 | 0 | 0 | 31.88 | 25.56 | 0 | 0 | 81,400,000 | 80,400,000 | 69,100,000 |
Basic: Loss from Continuing Operations (in dollars per share) | ($0.88) | ($0.04) | ($3.66) | ($3.07) | ($1.90) | ($2.94) | ($4.39) | ($1.42) | ($7.64) | ($10.66) | ($42.53) |
Basic: Income (Loss) from Discontinued Operations (in dollars per share) | $0 | $0.02 | $0.01 | $0.02 | ($0.01) | ($0.12) | ($0.26) | ($0.11) | $0.04 | ($0.51) | ($1.03) |
Basic (in dollars per share) | ($0.88) | ($0.02) | ($3.65) | ($3.05) | ($1.91) | ($3.06) | ($4.65) | ($1.53) | ($7.60) | ($11.17) | ($43.56) |
Diluted: Loss from Continuing Operations (in dollars per share) | ($0.88) | ($0.04) | ($3.66) | ($3.07) | ($1.90) | ($2.94) | ($4.39) | ($1.42) | ($7.64) | ($10.66) | ($42.53) |
Diluted: Income (Loss) from Discontinued Operations (in dollars per share) | $0 | $0.02 | $0.01 | $0.02 | ($0.01) | ($0.12) | ($0.26) | ($0.11) | $0.04 | ($0.51) | ($1.03) |
Diluted (in dollars per share) | ($0.88) | ($0.02) | ($3.65) | ($3.05) | ($1.91) | ($3.06) | ($4.65) | ($1.53) | ($7.60) | ($11.17) | ($43.56) |
Loss_Per_Share_Attributable_to3
Loss Per Share Attributable to Navistar International Corporation - Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | ||||
Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2014 | Oct. 31, 2009 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Shares of Warrants Unwound | 6,523,319 | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 24,800,000 | 29,900,000 | 28,500,000 | ||||||
Shares related to warrants | 6,400,000 | 11,300,000 | 11,300,000 | ||||||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Shares of Warrants Unwound | 6,523,319 | ||||||||
Class of Warrant or Right, Outstanding | 4,800,000 | 4,800,000 | |||||||
Option Indexed to Issuer's Equity, Shares Expired in Period | 8,000,000 | 3,300,000 | |||||||
Shares related to convertible notes | 4,500,000 | 11,300,000 | 11,300,000 | ||||||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Convertible Debt Securities [Member] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Debt Instrument, Convertible, Conversion Ratio | 19.891 | ||||||||
Debt Instrument Convertible Conversion Ratio Basis | 1,000 | ||||||||
Option Indexed to Issuer's Equity, Strike Price | $50.27 | ||||||||
Investment Warrants, Exercise Price | 60.14 | ||||||||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Call Option [Member] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Option Indexed to Issuer's Equity, Indexed Shares | 11,337,870 | ||||||||
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Shares related to convertible notes | 5,700,000 | 900,000 | |||||||
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Debt Securities [Member] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Debt Instrument, Convertible, Conversion Ratio | 17.1233 | ||||||||
Debt Instrument Convertible Conversion Ratio Basis | 1,000 | ||||||||
Debt Instrument, Convertible, Conversion Price | 58.4 | 58.4 | |||||||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Debt Instrument, Convertible, Conversion Ratio | 18.4946 | ||||||||
Option Indexed to Issuer's Equity, Strike Price | 54.07 | ||||||||
Shares related to convertible notes | 4,400,000 | ||||||||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Debt Securities [Member] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Debt Instrument Convertible Conversion Ratio Basis | 1,000 |
Stockbased_Compensation_Plans_2
Stock-based Compensation Plans - Narrative (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $13.81 | $14.01 | $14.73 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $12 | $4 | $1 | |
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $14.12 | $14.01 | ||
Stock-based compensation | 16 | 24 | 19 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 51 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 1 day | |||
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | 19 | 12 | 2 | |
Deferred Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding Number | 7,082 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested, Number Of Common Stock Delivered | 1 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Delivery Period of Shares | 10 days | |||
Deferred Fee Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding Number | 47,552 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement By Share-based Payment Award, Equity Instruments Other than Options, Aggregate Grant Date Fair Value | 0.1 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Equity Instruments Other than Options, Grants in Period | 4,000 | 2,000 | 44,000 | |
Equity Instruments Other than Options, Vested in Period | 4,000 | 2,000 | 3,000 | |
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $33.70 | $34.19 | $25.06 | |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Settlement by Cash or Shares, Number | 26,500 | |||
Share-based Compensation Arrangement By Share-based Payment Award, Equity Instruments Other than Options, Aggregate Grant Date Fair Value | 9 | 10 | 10 | |
Cash-Settled Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity Instruments Other than Options, Vested in Period | 0 | |||
Performance-based Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Equity Instruments Other than Options, Grants in Period | 651,000 | 299,000 | ||
Equity Instruments Other than Options, Vested in Period | 0 | 0 | ||
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $35.83 | $34.47 | ||
Premium Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding Number | 57,572 | |||
Cash-Settled Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity Instruments Other than Options, Grants in Period | 470,000 | 3,000 | 285,000 | |
Equity Instruments Other than Options, Vested in Period | 124,000 | 215,000 | 158,000 | |
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $32.44 | $27.24 | $37.10 | |
Employee Service Share-based Compensation, Cash Flow Effect, Cash Used to Settle Awards | $5 | $6 | ||
Plan 2013 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,665,500 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,124,273 | |||
Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 500,000 | |||
Minimum [Member] | Cash-Settled Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Maximum [Member] | Cash-Settled Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years |
Stockbased_Compensation_Plans_3
Stock-based Compensation Plans - Schedule of Stock Options (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options, Outstanding, Number | 5,000 | 5,636 | 4,500 |
Options, Grants in Period, Net of Forfeitures | 251 | 926 | 1,289 |
Options, Exercises in Period | 784 | 451 | 71 |
Options, Forfeitures and Expirations in Period | 810 | 1,111 | 82 |
Options, Outstanding, Number | 3,657 | 5,000 | 5,636 |
Options, Exercisable, Number | 2,637 | 3,468 | 3,672 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Options, Outstanding, Weighted Average Exercise Price | $37.94 | $37.89 | $39.65 |
Options, Grants in Period, Weighted Average Exercise Price | $38.51 | $31.64 | $31.69 |
Options, Exercises in Period, Weighted Average Exercise Price | $24.33 | $26.16 | $27.66 |
Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $44.41 | $37.24 | $44.66 |
Options, Outstanding, Weighted Average Exercise Price | $39.46 | $37.94 | $37.89 |
Options, Exercisable, Weighted Average Exercise Price | $41.34 | $38.22 | $36.96 |
Stockbased_Compensation_Plans_4
Stock-based Compensation Plans - Schedule of Option Exercise Prices (Details) (USD $) | 12 Months Ended |
In Millions, except Share data in Thousands, unless otherwise specified | Oct. 31, 2014 |
Exercise Price Range From $ 21.22 To $ 31.81 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $21.02 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $31.81 |
Exercise Price Range, Number of Outstanding Options | 976 |
Stock Options Weighted Average Remaining Contractual Life | 4.3 |
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $27.07 |
Options, Outstanding, Intrinsic Value | $8.10 |
Exercise Price Range, Number of Exercisable Options | 593 |
weighted average reamining contractual term | 3.7 |
Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $25.70 |
Options, Exercisable, Intrinsic Value | 5.7 |
Exercise Price Range From $ 32.18 To $ 40.92 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $32.82 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $40.92 |
Exercise Price Range, Number of Outstanding Options | 1,864 |
Stock Options Weighted Average Remaining Contractual Life | 3 |
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $37.94 |
Options, Outstanding, Intrinsic Value | 0 |
Exercise Price Range, Number of Exercisable Options | 1,308 |
weighted average reamining contractual term | 2.2 |
Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $38.34 |
Options, Exercisable, Intrinsic Value | 0 |
Exercise Price Range From $ 42.48 To $ 69.91 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $40.93 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $69.91 |
Exercise Price Range, Number of Outstanding Options | 817 |
Stock Options Weighted Average Remaining Contractual Life | 3 years 2 months 1 day |
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $57.75 |
Options, Outstanding, Intrinsic Value | 0 |
Exercise Price Range, Number of Exercisable Options | 736 |
weighted average reamining contractual term | 2.9 |
Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $59.28 |
Options, Exercisable, Intrinsic Value | $0 |
Stockbased_Compensation_Plans_5
Stock-based Compensation Plans - Schedule of Valuation Assumptions (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Cash-settled Performance-based Stock Unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk Free Interest Rate | 0.80% | ||
Expected Dividend Rate | 0.00% | ||
Expected Volatility Rate | 52.30% | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk Free Interest Rate | 1.60% | 0.80% | 0.80% |
Expected Dividend Rate | 0.00% | 0.00% | 0.00% |
Expected Volatility Rate | 45.60% | 54.70% | 55.60% |
Expected Term | 4 years 10 months 18 days | 5 years 1 month 6 days | 4 years 9 months 18 days |
Black Scholes [Member] | Performance-based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk Free Interest Rate | 1.60% | 0.70% | |
Expected Dividend Rate | 0.00% | 0.00% | |
Expected Volatility Rate | 45.50% | 54.10% | |
Expected Term | 4 years 10 months 15 days | 5 years 1 month 6 days | |
Monte Carlo [Member] | Performance-based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk Free Interest Rate | 0.90% | ||
Expected Dividend Rate | 0.00% | ||
Expected Volatility Rate | 55.40% | ||
Expected Term | 5 years 0 months 1 day | ||
Fair Value Assumptions, Exercise Price | 12,410,000 |
Stockbased_Compensation_Plans_6
Stock-based Compensation Plans - Schedule of Stock Based Compensation Other than Options (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $14.12 | $14.01 | |
Performance-based Stock Unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Equity Instruments Other than Options, Nonvested, Number | 326 | 0 | |
Equity Instruments Other than Options, Grants in Period | 0 | 381 | |
Equity Instruments Other than Options, Vested in Period | 0 | 0 | |
Equity Instruments Other than Options, Forfeited in Period | 34 | 55 | |
Equity Instruments Other than Options, Nonvested, Number | 292 | 326 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $28.35 | $0 | |
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $0 | $28.19 | |
Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $0 | $0 | |
Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $27.24 | $27.24 | |
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $28.48 | $28.35 | |
Market-based Stock Options [Member] [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Equity Instruments Other than Options, Nonvested, Number | 759 | 0 | |
Equity Instruments Other than Options, Grants in Period | 0 | 917 | |
Equity Instruments Other than Options, Vested in Period | 0 | 0 | |
Equity Instruments Other than Options, Forfeited in Period | 89 | 158 | |
Equity Instruments Other than Options, Nonvested, Number | 670 | 759 | |
Equity Instruments Other Than Options, Exercisable, Number | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $27.24 | $0 | |
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $0 | $27.24 | |
Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $0 | $0 | |
Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $27.24 | $27.24 | |
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $27.24 | $27.24 | |
Equity Instruments Other Than Options, Exercisable, Weighted Average Exercise Price | $0 | $0 | |
Share-Settled Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Equity Instruments Other than Options, Nonvested, Number | 299 | 77 | 162 |
Equity Instruments Other than Options, Grants in Period | 0 | 316 | 6 |
Equity Instruments Other than Options, Vested in Period | 90 | 26 | 90 |
Equity Instruments Other than Options, Forfeited in Period | 21 | 68 | 1 |
Equity Instruments Other than Options, Nonvested, Number | 188 | 299 | 77 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $29.54 | $45.93 | $35.54 |
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $0 | $28.13 | $42.19 |
Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $31.74 | $35.84 | $27.22 |
Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $27.24 | $39.13 | $33.97 |
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $28.75 | $29.54 | $45.93 |
Performance-based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Equity Instruments Other than Options, Nonvested, Number | 299 | 0 | |
Equity Instruments Other than Options, Grants in Period | 651 | 299 | |
Equity Instruments Other than Options, Vested in Period | 0 | 0 | |
Equity Instruments Other than Options, Forfeited in Period | 9 | 0 | |
Equity Instruments Other than Options, Nonvested, Number | 941 | 299 | |
Equity Instruments Other Than Options, Exercisable, Number | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $34.47 | $0 | |
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $35.83 | $34.47 | |
Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $0 | $0 | |
Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $35.09 | $0 | |
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $35.41 | $34.47 | |
Equity Instruments Other Than Options, Exercisable, Weighted Average Exercise Price | $0 | $0 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Equity Instruments Other than Options, Nonvested, Number | 41 | 41 | 0 |
Equity Instruments Other than Options, Grants in Period | 4 | 2 | 44 |
Equity Instruments Other than Options, Vested in Period | 4 | 2 | 3 |
Equity Instruments Other than Options, Forfeited in Period | 0 | 0 | 0 |
Equity Instruments Other than Options, Nonvested, Number | 41 | 41 | 41 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $24.13 | $24.13 | $0 |
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $33.70 | $34.19 | $25.06 |
Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $33.70 | $34.19 | $40.76 |
Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $0 | $0 | $0 |
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $24.13 | $24.13 | $24.13 |
Cash-Settled Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Equity Instruments Other than Options, Nonvested, Number | 194 | 463 | 393 |
Equity Instruments Other than Options, Grants in Period | 470 | 3 | 285 |
Equity Instruments Other than Options, Vested in Period | 124 | 215 | 158 |
Equity Instruments Other than Options, Forfeited in Period | 71 | 57 | 57 |
Equity Instruments Other than Options, Nonvested, Number | 469 | 194 | 463 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $43.74 | $43.20 | $48.80 |
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $32.44 | $27.24 | $37.10 |
Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $47.48 | $42.71 | $46.18 |
Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $33.24 | $42.46 | $43.58 |
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $33 | $43.74 | $43.20 |
Service and Market Measures [Member] | Cash-settled Performance-based Stock Unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Equity Instruments Other than Options, Nonvested, Number | 172 | 314 | 161 |
Equity Instruments Other than Options, Grants in Period | 0 | 0 | 153 |
Equity Instruments Other than Options, Vested in Period | 0 | 0 | 0 |
Equity Instruments Other than Options, Forfeited in Period | 0 | 142 | 0 |
Equity Instruments Other than Options, Nonvested, Number | 172 | 172 | 314 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $69.64 | $68.03 | $84.75 |
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $0 | $0 | $50.52 |
Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $0 | $0 | $0 |
Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $0 | $66.09 | $0 |
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $69.64 | $69.64 | $68.03 |
Service and Performance Measures [Member] | Cash-settled Performance-based Stock Unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Equity Instruments Other than Options, Nonvested, Number | 0 | ||
Equity Instruments Other than Options, Grants in Period | 225 | ||
Equity Instruments Other than Options, Vested in Period | 0 | ||
Equity Instruments Other than Options, Forfeited in Period | 4 | ||
Equity Instruments Other than Options, Nonvested, Number | 221 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $0 | ||
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $35.10 | ||
Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $0 | ||
Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $35.09 | ||
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $35.11 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Supplemental Cash Flow Elements [Abstract] | |||
Equity in loss (income) of non-consolidated affiliates | ($9) | ($11) | $29 |
Dividends from non-consolidated affiliates | 12 | 13 | 7 |
Equity in loss of non-consolidated affiliates, net of dividends | -3 | -2 | -36 |
Loss on sales of affiliates | 0 | 0 | 3 |
Loss (gain) on sale of property and equipment | -9 | 5 | 4 |
Loss on sale and impairment of repossessed collateral | 3 | 0 | 0 |
Loss on repurchased of debt | 11 | 0 | 0 |
Income from operating leases | -46 | -75 | 0 |
Other non-cash operating activities | 41 | 70 | -7 |
Other current assets | 62 | 6 | 1 |
Other noncurrent assets | 2 | -46 | 16 |
Other current liabilities | -206 | 144 | 198 |
Postretirement benefits liabilities | -82 | -58 | -79 |
Other noncurrent liabilities | -78 | 190 | 292 |
Other, net | 20 | 4 | -8 |
Changes in other assets and liabilities | 282 | -240 | -420 |
Interest, net of amounts capitalized | 258 | 237 | 195 |
Income taxes, net of refunds | 15 | -6 | 51 |
Property and equipment acquired under capital leases | 3 | 0 | 58 |
Transfers (to)/from inventories (from)/to property and equipment for leases to others | ($14) | ($10) | $37 |
Condensed_Consolidating_Guaran2
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | ||||||||
Sales and revenues, net | $3,008 | $2,844 | $2,746 | $2,208 | $2,751 | $2,861 | $2,526 | $2,637 | $10,806 | $10,775 | $12,695 | ||||||||
Costs of products sold | 9,534 | 9,761 | 11,401 | ||||||||||||||||
Restructuring charges | 42 | 25 | 107 | ||||||||||||||||
Asset impairment charges | 183 | 97 | 16 | ||||||||||||||||
All other operating expenses (income) | 1,612 | 1,877 | 2,253 | ||||||||||||||||
Total costs and expenses | 11,371 | 11,760 | 13,777 | ||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 9 | 11 | -29 | ||||||||||||||||
Income (loss) before income taxes | -556 | -974 | -1,111 | ||||||||||||||||
Income tax expense | -26 | 171 | -1,780 | ||||||||||||||||
Earnings (loss) from continuing operations | -72 | [1] | -3 | [1] | -298 | [1] | -249 | [1] | -153 | [1] | -237 | [1] | -353 | [1] | -114 | [1] | -582 | -803 | -2,891 |
Income (loss) from discontinued operations, net of tax | 0 | 1 | 1 | 1 | -1 | -10 | -21 | -9 | 3 | -41 | -71 | ||||||||
Net income (loss) | -72 | -2 | -297 | -248 | -154 | -247 | -374 | -123 | -579 | -844 | -2,962 | ||||||||
Less: Net income attributable to non-controlling interests | 40 | 54 | 48 | ||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | -619 | -898 | -3,010 | ||||||||||||||||
Parent Company [Member] | |||||||||||||||||||
Sales and revenues, net | 0 | 0 | 0 | ||||||||||||||||
Costs of products sold | 0 | 0 | 0 | ||||||||||||||||
Restructuring charges | 0 | 0 | 0 | ||||||||||||||||
Asset impairment charges | 0 | 0 | 0 | ||||||||||||||||
All other operating expenses (income) | -48 | -208 | -249 | ||||||||||||||||
Total costs and expenses | -48 | -208 | -249 | ||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | -680 | -1,108 | -3,258 | ||||||||||||||||
Income (loss) before income taxes | -632 | -900 | -3,009 | ||||||||||||||||
Income tax expense | 13 | 2 | -1 | ||||||||||||||||
Earnings (loss) from continuing operations | -619 | -898 | -3,010 | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) | -619 | -898 | -3,010 | ||||||||||||||||
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | -619 | -898 | -3,010 | ||||||||||||||||
Guarantor Subsidiaries [Member] | |||||||||||||||||||
Sales and revenues, net | 7,269 | 6,426 | 7,924 | ||||||||||||||||
Costs of products sold | 6,794 | 6,629 | 8,188 | ||||||||||||||||
Restructuring charges | 8 | 15 | 86 | ||||||||||||||||
Asset impairment charges | 16 | 81 | 2 | ||||||||||||||||
All other operating expenses (income) | 1,003 | 1,180 | 1,297 | ||||||||||||||||
Total costs and expenses | 7,821 | 7,905 | 9,573 | ||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | -169 | 161 | 536 | ||||||||||||||||
Income (loss) before income taxes | -721 | -1,318 | -1,113 | ||||||||||||||||
Income tax expense | 25 | 244 | -1,987 | ||||||||||||||||
Earnings (loss) from continuing operations | -696 | -1,074 | -3,100 | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) | -696 | -1,074 | -3,100 | ||||||||||||||||
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | -696 | -1,074 | -3,100 | ||||||||||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||||||||||
Sales and revenues, net | 8,196 | 8,979 | 11,413 | ||||||||||||||||
Costs of products sold | 7,337 | 7,720 | 9,798 | ||||||||||||||||
Restructuring charges | 34 | 10 | 21 | ||||||||||||||||
Asset impairment charges | 167 | 16 | 14 | ||||||||||||||||
All other operating expenses (income) | 541 | 659 | 968 | ||||||||||||||||
Total costs and expenses | 8,079 | 8,405 | 10,801 | ||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 5 | 4 | -34 | ||||||||||||||||
Income (loss) before income taxes | 122 | 578 | 578 | ||||||||||||||||
Income tax expense | -64 | -75 | 209 | ||||||||||||||||
Earnings (loss) from continuing operations | 58 | 503 | 787 | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | 3 | -41 | -71 | ||||||||||||||||
Net income (loss) | 61 | 462 | 716 | ||||||||||||||||
Less: Net income attributable to non-controlling interests | 40 | 54 | 48 | ||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | 21 | 408 | 668 | ||||||||||||||||
Consolidation, Eliminations [Member] | |||||||||||||||||||
Sales and revenues, net | -4,659 | -4,630 | -6,642 | ||||||||||||||||
Costs of products sold | -4,597 | -4,588 | -6,585 | ||||||||||||||||
Restructuring charges | 0 | 0 | 0 | ||||||||||||||||
Asset impairment charges | 0 | 0 | 0 | ||||||||||||||||
All other operating expenses (income) | 116 | 246 | 237 | ||||||||||||||||
Total costs and expenses | -4,481 | -4,342 | -6,348 | ||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 853 | 954 | 2,727 | ||||||||||||||||
Income (loss) before income taxes | 675 | 666 | 2,433 | ||||||||||||||||
Income tax expense | 0 | 0 | -1 | ||||||||||||||||
Earnings (loss) from continuing operations | 675 | 666 | 2,432 | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) | 675 | 666 | 2,432 | ||||||||||||||||
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $675 | $666 | $2,432 | ||||||||||||||||
[1] | In the second quarter of 2014, the company recognized a non-cash charge of $149 million for the impairment of certain intangible assets of our Brazilian engine reporting unit. Due to the economic downturn in Brazil which resulted in a continued decline in actual and forecasted results, we tested the goodwill of our Brazilian engine reporting unit and trademark for potential impairment. As a result, we determined that the entire $142 million balance of goodwill and $7 million of trademark were impaired. In the fourth quarter of 2013, our North America Truck segment recorded a non-cash charge of $77 million to reflect impairment of goodwill as a result of changes in our organizational and reporting structures, which resulted in a change in certain of our reporting units. The impairment charges were included in Asset impairment charges. Also in the fourth quarter of 2013, the Company met the criteria necessary to apply the exception within the intraperiod tax allocation rules. As a result, the Company recorded an income tax benefit of $220 million, which was recorded in Income tax benefit (expense) related to continuing operations. |
Condensed_Consolidating_Guaran3
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Comprehsive Income (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Net loss attributable to Navistar International Corporation | ($619) | ($898) | ($3,010) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | -52 | -51 | -125 |
Unrealized gain on marketable securities | 1 | 0 | 0 |
Defined benefit plans (net of tax of $(2), $0, $(2), $2 and, $(2), respectively) | -388 | 552 | -256 |
Total other comprehensive income (loss) | -439 | 501 | -381 |
Total comprehensive loss attributable to Navistar International Corporation | -1,058 | -397 | -3,391 |
Parent Company [Member] | |||
Net loss attributable to Navistar International Corporation | -619 | -898 | -3,010 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | -52 | -51 | -125 |
Unrealized gain on marketable securities | 1 | ||
Defined benefit plans (net of tax of $(2), $0, $(2), $2 and, $(2), respectively) | -388 | 552 | -256 |
Total other comprehensive income (loss) | -439 | 501 | -381 |
Total comprehensive loss attributable to Navistar International Corporation | -1,058 | -397 | -3,391 |
Guarantor Subsidiaries [Member] | |||
Net loss attributable to Navistar International Corporation | -696 | -1,074 | -3,100 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 0 | 0 | 0 |
Unrealized gain on marketable securities | 0 | ||
Defined benefit plans (net of tax of $(2), $0, $(2), $2 and, $(2), respectively) | -397 | 687 | -225 |
Total other comprehensive income (loss) | -397 | 687 | -225 |
Total comprehensive loss attributable to Navistar International Corporation | -1,093 | -387 | -3,325 |
Non-Guarantor Subsidiaries [Member] | |||
Net loss attributable to Navistar International Corporation | 21 | 408 | 668 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | -52 | -51 | -125 |
Unrealized gain on marketable securities | 1 | ||
Defined benefit plans (net of tax of $(2), $0, $(2), $2 and, $(2), respectively) | 9 | 74 | -31 |
Total other comprehensive income (loss) | -42 | 23 | -156 |
Total comprehensive loss attributable to Navistar International Corporation | -21 | 431 | 512 |
Consolidation, Eliminations [Member] | |||
Net loss attributable to Navistar International Corporation | 675 | 666 | 2,432 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 52 | 51 | 125 |
Unrealized gain on marketable securities | -1 | ||
Defined benefit plans (net of tax of $(2), $0, $(2), $2 and, $(2), respectively) | 388 | -761 | 256 |
Total other comprehensive income (loss) | 439 | -710 | 381 |
Total comprehensive loss attributable to Navistar International Corporation | $1,114 | ($44) | $2,813 |
Condensed_Consolidating_Guaran4
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Balance Sheet (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
In Millions, unless otherwise specified | ||||
Cash and cash equivalents | $497 | $755 | $1,087 | $539 |
Marketable securities | 605 | 830 | ||
Restricted cash | 171 | 91 | ||
Finance and other receivables, net | 2,616 | 2,701 | ||
Inventories | 1,319 | 1,210 | ||
Investments in non-consolidated affiliates | 73 | 77 | ||
Property and equipment, net | 1,562 | 1,741 | ||
Goodwill | 38 | 184 | 280 | 319 |
Deferred taxes, net | 200 | 231 | ||
Other | 362 | 495 | ||
Total assets | 7,443 | 8,315 | ||
Debt | 5,224 | 5,085 | ||
Postretirement benefits liabilities | 2,955 | 2,652 | ||
Amounts due to (from) affiliates | 0 | 0 | ||
Other liabilities | 3,882 | 4,179 | ||
Total liabilities | 12,061 | 11,916 | ||
Redeemable equity securities | 2 | 4 | ||
Stockholders’ equity attributable to non-controlling interests | 34 | 44 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | -4,654 | -3,649 | ||
Total liabilities and stockholders’ deficit | 7,443 | 8,315 | ||
Parent Company [Member] | ||||
Cash and cash equivalents | 101 | 336 | ||
Marketable securities | 379 | 581 | ||
Restricted cash | 19 | 23 | ||
Finance and other receivables, net | 0 | 3 | ||
Inventories | 0 | 0 | ||
Investments in non-consolidated affiliates | -7,245 | -6,123 | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred taxes, net | 5 | 0 | ||
Other | 34 | 36 | ||
Total assets | -6,707 | -5,144 | ||
Debt | 1,958 | 2,125 | ||
Postretirement benefits liabilities | 0 | 0 | ||
Amounts due to (from) affiliates | -7,618 | -6,988 | ||
Other liabilities | 3,605 | 3,362 | ||
Total liabilities | -2,055 | -1,501 | ||
Redeemable equity securities | 2 | 4 | ||
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | -4,654 | -3,647 | ||
Total liabilities and stockholders’ deficit | -6,707 | -5,144 | ||
Guarantor Subsidiaries [Member] | ||||
Cash and cash equivalents | 53 | 72 | ||
Marketable securities | 0 | 1 | ||
Restricted cash | 4 | 3 | ||
Finance and other receivables, net | 124 | 148 | ||
Inventories | 792 | 621 | ||
Investments in non-consolidated affiliates | 6,410 | 6,600 | ||
Property and equipment, net | 827 | 937 | ||
Goodwill | 0 | 0 | ||
Deferred taxes, net | 9 | 13 | ||
Other | 137 | 156 | ||
Total assets | 8,356 | 8,551 | ||
Debt | 937 | 1,002 | ||
Postretirement benefits liabilities | 2,712 | 2,407 | ||
Amounts due to (from) affiliates | 11,739 | 10,846 | ||
Other liabilities | 370 | 646 | ||
Total liabilities | 15,758 | 14,901 | ||
Redeemable equity securities | 0 | 0 | ||
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | -7,402 | -6,350 | ||
Total liabilities and stockholders’ deficit | 8,356 | 8,551 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Cash and cash equivalents | 343 | 347 | ||
Marketable securities | 226 | 248 | ||
Restricted cash | 148 | 65 | ||
Finance and other receivables, net | 2,504 | 2,561 | ||
Inventories | 539 | 608 | ||
Investments in non-consolidated affiliates | 71 | 73 | ||
Property and equipment, net | 740 | 807 | ||
Goodwill | 38 | 184 | ||
Deferred taxes, net | 185 | 219 | ||
Other | 194 | 304 | ||
Total assets | 4,988 | 5,416 | ||
Debt | 2,336 | 1,960 | ||
Postretirement benefits liabilities | 243 | 245 | ||
Amounts due to (from) affiliates | -4,267 | -3,932 | ||
Other liabilities | -22 | 250 | ||
Total liabilities | -1,710 | -1,477 | ||
Redeemable equity securities | 0 | 0 | ||
Stockholders’ equity attributable to non-controlling interests | 34 | 44 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | 6,664 | 6,849 | ||
Total liabilities and stockholders’ deficit | 4,988 | 5,416 | ||
Consolidation, Eliminations [Member] | ||||
Cash and cash equivalents | 0 | 0 | ||
Marketable securities | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Finance and other receivables, net | -12 | -11 | ||
Inventories | -12 | -19 | ||
Investments in non-consolidated affiliates | 837 | -473 | ||
Property and equipment, net | -5 | -3 | ||
Goodwill | 0 | 0 | ||
Deferred taxes, net | 1 | -1 | ||
Other | -3 | -1 | ||
Total assets | 806 | -508 | ||
Debt | -7 | -2 | ||
Postretirement benefits liabilities | 0 | 0 | ||
Amounts due to (from) affiliates | 146 | 74 | ||
Other liabilities | -71 | -79 | ||
Total liabilities | 68 | -7 | ||
Redeemable equity securities | 0 | 0 | ||
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | 738 | -501 | ||
Total liabilities and stockholders’ deficit | $806 | ($508) |
Condensed_Consolidating_Guaran5
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Net cash provided by (used in) operations | ($336) | $100 | $610 |
Net change in restricted cash and cash equivalents | -80 | 70 | 165 |
Net sales of marketable securities | 225 | -364 | 252 |
Capital expenditures and purchase of equipment leased to others | -277 | -599 | -370 |
Other investing activities | 57 | 83 | -49 |
Net cash used in investing activities | -75 | -810 | -2 |
Net borrowings (repayments) of debt | 150 | 116 | 69 |
Other financing activities | 0 | 4 | -3 |
Net cash provided by (used in) financing activities | 179 | 393 | -63 |
Effect of exchange rate changes on cash and cash equivalents | -26 | -15 | 3 |
Increase (decrease) in cash and cash equivalents | -258 | -332 | 548 |
Decrease in cash and cash equivalents | 755 | 1,087 | 539 |
Cash and cash equivalents at beginning of the year | 497 | 755 | 1,087 |
Other financing activities | 29 | 277 | -132 |
Parent Company [Member] | |||
Net cash provided by (used in) operations | -285 | -669 | 350 |
Net change in restricted cash and cash equivalents | 5 | 0 | -4 |
Net sales of marketable securities | 203 | -267 | 115 |
Capital expenditures and purchase of equipment leased to others | 0 | 0 | 0 |
Other investing activities | 0 | 0 | 0 |
Net cash used in investing activities | 208 | -267 | 111 |
Net borrowings (repayments) of debt | -176 | 540 | 171 |
Net cash provided by (used in) financing activities | -158 | 570 | 15 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | -235 | -366 | 476 |
Decrease in cash and cash equivalents | 336 | 702 | 226 |
Cash and cash equivalents at beginning of the year | 101 | 336 | 702 |
Other financing activities | 18 | 30 | -156 |
Guarantor Subsidiaries [Member] | |||
Net cash provided by (used in) operations | -1,287 | -355 | -183 |
Net change in restricted cash and cash equivalents | -1 | 5 | 1 |
Net sales of marketable securities | 0 | 0 | 0 |
Capital expenditures and purchase of equipment leased to others | -114 | -422 | -213 |
Other investing activities | 17 | 87 | -157 |
Net cash used in investing activities | -98 | -330 | -369 |
Net borrowings (repayments) of debt | 1,306 | 409 | 594 |
Net cash provided by (used in) financing activities | 1,366 | 702 | 594 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | -19 | 17 | 42 |
Decrease in cash and cash equivalents | 72 | 55 | 13 |
Cash and cash equivalents at beginning of the year | 53 | 72 | 55 |
Other financing activities | 60 | 293 | 0 |
Non-Guarantor Subsidiaries [Member] | |||
Net cash provided by (used in) operations | -112 | 401 | 901 |
Net change in restricted cash and cash equivalents | -84 | 65 | 168 |
Net sales of marketable securities | 22 | -97 | 137 |
Capital expenditures and purchase of equipment leased to others | -163 | -177 | -157 |
Other investing activities | 40 | -4 | 108 |
Net cash used in investing activities | -185 | -213 | 256 |
Net borrowings (repayments) of debt | 409 | -40 | -1,245 |
Net cash provided by (used in) financing activities | 319 | -156 | -1,130 |
Effect of exchange rate changes on cash and cash equivalents | -26 | -15 | 3 |
Increase (decrease) in cash and cash equivalents | -4 | 17 | 30 |
Decrease in cash and cash equivalents | 347 | 330 | 300 |
Cash and cash equivalents at beginning of the year | 343 | 347 | 330 |
Other financing activities | -90 | -116 | 115 |
Consolidation, Eliminations [Member] | |||
Net cash provided by (used in) operations | 1,348 | 723 | -458 |
Net change in restricted cash and cash equivalents | 0 | 0 | 0 |
Net sales of marketable securities | 0 | 0 | 0 |
Capital expenditures and purchase of equipment leased to others | 0 | 0 | 0 |
Other investing activities | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
Net borrowings (repayments) of debt | -1,389 | -793 | 549 |
Net cash provided by (used in) financing activities | -1,348 | -723 | 458 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Decrease in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of the year | 0 | 0 | 0 |
Other financing activities | $41 | $70 | ($91) |
Condensed_Consolidating_Guaran6
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Guarantor and Non-Guarantor Parenthetical (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Defined benefit plan, tax | ($2) | ($233) | $14 |
Parent Company [Member] | |||
Defined benefit plan, tax | -2 | -233 | 14 |
Guarantor Subsidiaries [Member] | |||
Defined benefit plan, tax | 0 | -207 | 0 |
Non-Guarantor Subsidiaries [Member] | |||
Defined benefit plan, tax | -2 | -26 | 14 |
Consolidation, Eliminations [Member] | |||
Defined benefit plan, tax | $2 | $233 | ($14) |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (unaudited) - Schedule of Selected Quarterly Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Jul. 31, 2012 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2011 | |||||||||||
Sales and revenues, net | $3,008 | $2,844 | $2,746 | $2,208 | $2,751 | $2,861 | $2,526 | $2,637 | $10,806 | $10,775 | $12,695 | ||||||||||||||||
Gross Profit | 335 | [1],[2] | 389 | [1],[2] | 240 | [1],[2] | 155 | [1],[2] | 147 | [1],[2] | 273 | [1],[2] | 124 | [1],[2] | 312 | [1],[2] | |||||||||||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | -72 | [3] | -3 | [3] | -298 | [3] | -249 | [3] | -153 | [3] | -237 | [3] | -353 | [3] | -114 | [3] | -582 | -803 | -2,891 | ||||||||
Income (loss) from discontinued operations, net of tax | 0 | 1 | 1 | 1 | -1 | -10 | -21 | -9 | 3 | -41 | -71 | ||||||||||||||||
Net income (loss) | -72 | -2 | -297 | -248 | -154 | -247 | -374 | -123 | -579 | -844 | -2,962 | ||||||||||||||||
Basic: Loss from Continuing Operations (in dollars per share) | ($0.88) | ($0.04) | ($3.66) | ($3.07) | ($1.90) | ($2.94) | ($4.39) | ($1.42) | ($7.64) | ($10.66) | ($42.53) | ||||||||||||||||
Basic: Income (Loss) from Discontinued Operations (in dollars per share) | $0 | $0.02 | $0.01 | $0.02 | ($0.01) | ($0.12) | ($0.26) | ($0.11) | $0.04 | ($0.51) | ($1.03) | ||||||||||||||||
Basic (in dollars per share) | ($0.88) | ($0.02) | ($3.65) | ($3.05) | ($1.91) | ($3.06) | ($4.65) | ($1.53) | ($7.60) | ($11.17) | ($43.56) | ||||||||||||||||
Diluted: Loss from Continuing Operations (in dollars per share) | ($0.88) | ($0.04) | ($3.66) | ($3.07) | ($1.90) | ($2.94) | ($4.39) | ($1.42) | ($7.64) | ($10.66) | ($42.53) | ||||||||||||||||
Diluted: Income (Loss) from Discontinued Operations (in dollars per share) | $0 | $0.02 | $0.01 | $0.02 | ($0.01) | ($0.12) | ($0.26) | ($0.11) | $0.04 | ($0.51) | ($1.03) | ||||||||||||||||
Diluted (in dollars per share) | ($0.88) | ($0.02) | ($3.65) | ($3.05) | ($1.91) | ($3.06) | ($4.65) | ($1.53) | ($7.60) | ($11.17) | ($43.56) | ||||||||||||||||
Basic (in shares) | 40.17 | 39.41 | 0 | 0 | 39.79 | 38.81 | 0 | 0 | 81,400,000 | 80,400,000 | 69,100,000 | ||||||||||||||||
Diluted (in shares) | 29.54 | 32.45 | 0 | 0 | 31.88 | 25.56 | 0 | 0 | 81,400,000 | 80,400,000 | 69,100,000 | ||||||||||||||||
Product Warranty Accrual, Preexisting, Increase (Decrease) | -10 | -29 | 152 | 10 | 55 | [4],[5] | 404 | [4],[5] | 404 | [4],[5] | |||||||||||||||||
Asset impairment charges | 183 | 97 | 16 | ||||||||||||||||||||||||
Goodwill | 38 | 184 | 38 | 184 | 280 | 280 | 319 | ||||||||||||||||||||
Goodwill, Impairment Loss | 142 | 81 | |||||||||||||||||||||||||
Income Tax Expense (Benefit) | 26 | -171 | 1,780 | ||||||||||||||||||||||||
North America Truck [Member] | |||||||||||||||||||||||||||
Sales and revenues, net | 7,080 | 6,798 | 8,388 | ||||||||||||||||||||||||
Asset impairment charges | 19 | ||||||||||||||||||||||||||
Goodwill | 0 | 0 | 0 | 0 | 82 | 82 | 82 | ||||||||||||||||||||
Goodwill, Impairment Loss | -77 | -4 | 0 | 81 | |||||||||||||||||||||||
Income Tax Expense (Benefit) | 0 | 0 | 0 | ||||||||||||||||||||||||
Brazilian Reporting Unit [Member] | |||||||||||||||||||||||||||
Asset impairment charges | 149 | ||||||||||||||||||||||||||
Goodwill | 142 | ||||||||||||||||||||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 7 | 0 | 7 | 0 | |||||||||||||||||||||||
Goodwill, Impairment Loss | 81 | [6] | 142 | [6] | 0 | [6] | |||||||||||||||||||||
Product Warranty Accrual [Member] | |||||||||||||||||||||||||||
Product Warranty Accrual, Preexisting, Increase (Decrease) | 25 | 30 | 42 | 52 | 48 | 164 | 40 | 149 | 104 | 123 | |||||||||||||||||
Warranty Obligations [Member] | |||||||||||||||||||||||||||
Product Warranty Accrual, Preexisting, Increase (Decrease) | ($35) | ($59) | |||||||||||||||||||||||||
[1] | Manufacturing gross margin is calculated by subtracting Costs of products sold from Sales of manufactured products, net. | ||||||||||||||||||||||||||
[2] | We record adjustments to our product warranty accrual to 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. In the third quarter of 2014, we recognized a benefit for adjustments to pre-existing warranties of $(29) million. The benefit is comprised of a benefit for changes in estimates of $(59) million, partially offset by a $30 million correction of prior-period errors, primarily related to pre-existing warranties. In the fourth quarter of 2014, we recognized a benefit for adjustments to pre-existing warranties of $(10) million compared to a charge for adjustments to pre-existing warranties of $152 million in the fourth quarter of 2013. The $(10) million benefit recorded in the fourth quarter of 2014 is comprised of a benefit for changes in estimates of $(35) million, partially offset by the fourth quarter impact of $25 million relating to the correction of prior-period errors as discussed in Note 1, 2014 Out-Of-Period Adjustments. | ||||||||||||||||||||||||||
[3] | In the second quarter of 2014, the company recognized a non-cash charge of $149 million for the impairment of certain intangible assets of our Brazilian engine reporting unit. Due to the economic downturn in Brazil which resulted in a continued decline in actual and forecasted results, we tested the goodwill of our Brazilian engine reporting unit and trademark for potential impairment. As a result, we determined that the entire $142 million balance of goodwill and $7 million of trademark were impaired. In the fourth quarter of 2013, our North America Truck segment recorded a non-cash charge of $77 million to reflect impairment of goodwill as a result of changes in our organizational and reporting structures, which resulted in a change in certain of our reporting units. The impairment charges were included in Asset impairment charges. Also in the fourth quarter of 2013, the Company met the criteria necessary to apply the exception within the intraperiod tax allocation rules. As a result, the Company recorded an income tax benefit of $220 million, which was recorded in Income tax benefit (expense) related to continuing operations. | ||||||||||||||||||||||||||
[4] | (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 Income (loss) from discontinued operations, net of tax and recorded a receivable within Other current assets.In the third quarter of 2012, we recognized $10 million of adjustments to pre-existing warranties for a specific warranty issue related to component parts from a supplier. Also during the quarter, we reached agreement for reimbursement from such supplier and recognized a recovery for that amount and recorded a receivable within Other current assets. | ||||||||||||||||||||||||||
[5] | (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. In the third quarter of 2014, we recognized a benefit for adjustments to pre-existing warranties of $(29) million, or $(0.36) per diluted share. Included in the 2014 adjustments is a $36 million correction of prior-period errors, primarily related to pre-existing warranties. For more information on the errors identified, see 2014 Out-of-Period Adjustments. 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. In the third quarter of 2013, we recorded adjustments for changes in estimates of $48 million, or $0.60 per diluted share. In the fourth quarter of 2013, we recorded adjustments for changes in estimates of $152 million, or $1.89 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. In the first quarter of 2012, we recorded adjustments for changes in estimates of $123 million, or $1.76 per diluted share. In the second quarter of 2012, we recorded adjustments for changes in estimates of $104 million, or $1.51 per diluted share. In the fourth quarter of 2012, we recorded adjustments for changes in estimates of $149 million, or $2.16 per diluted share. | ||||||||||||||||||||||||||
[6] | (A)For more information, see Note 8, Goodwill and Other Intangible Assets, Net, and includes $4 million related to discontinued operations in 2013. |