Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Jan. 31, 2016 | Feb. 29, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | nav | |
Entity Registrant Name | NAVISTAR INTERNATIONAL CORP | |
Entity Central Index Key | 808,450 | |
Current Fiscal Year End Date | --10-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 81,593,034 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Sales and revenues | ||
Sales of manufactured products, net | $ 1,730 | $ 2,385 |
Finance revenues | 35 | 36 |
Sales and revenues, net | 1,765 | 2,421 |
Costs and expenses | ||
Costs of products sold | 1,466 | 2,045 |
Restructuring charges | 3 | 3 |
Asset impairment charges | 2 | 7 |
Selling, general and administrative expenses | 205 | 241 |
Engineering and product development costs | 58 | 79 |
Interest expense | 81 | 77 |
Other income, net | (22) | (3) |
Total costs and expenses | 1,793 | 2,449 |
Equity in income (loss) of non-consolidated affiliates | (1) | 2 |
Income (loss) before income taxes | (29) | (26) |
Income tax expense | 5 | (7) |
Earnings (loss) from continuing operations | (24) | (33) |
Income (loss) from discontinued operations, net of tax | 0 | 0 |
Net income (loss) | (24) | (33) |
Less: Net income attributable to non-controlling interests | 9 | 9 |
Net income (loss) attributable to Navistar International Corporation | (33) | (42) |
Loss from continuing operations, net of tax | (33) | (42) |
Income (loss) from discontinued operations, net of tax | $ 0 | $ 0 |
Earnings (loss) per share attributable to Navistar International Corporation: | ||
Basic: Loss from Continuing Operations (in dollars per share) | $ (0.40) | $ (0.52) |
Basic: Income (Loss) from Discontinued Operations (in dollars per share) | 0 | 0 |
Basic (in dollars per share) | (0.40) | (0.52) |
Diluted: Loss from Continuing Operations (in dollars per share) | (0.40) | (0.52) |
Diluted: Income (Loss) from Discontinued Operations (in dollars per share) | 0 | 0 |
Diluted (in dollars per share) | $ (0.40) | $ (0.52) |
Weighted average shares outstanding: | ||
Basic (in shares) | 81.7 | 81.5 |
Diluted (in shares) | 81.7 | 81.5 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (24) | $ (33) |
Net loss attributable to Navistar International Corporation | (33) | (42) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (33) | (59) |
Defined benefit plans (net of tax of $0 and $(1), respectively) | 33 | 32 |
Total other comprehensive loss | 0 | (27) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (24) | (60) |
Less: Net income attributable to non-controlling interests | 9 | 9 |
Total comprehensive loss attributable to Navistar International Corporation | $ (33) | $ (69) |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Defined benefit plan, tax | $ 0 | $ (1) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 31, 2016 | Oct. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 579 | $ 912 |
Marketable securities | 152 | 159 |
Trade and other receivables, net | 340 | 429 |
Finance receivables, net | 1,431 | 1,779 |
Inventories, net | 1,269 | 1,135 |
Deferred taxes, net | 0 | 36 |
Other current assets | 168 | 172 |
Total current assets | 3,939 | 4,622 |
Restricted cash | 118 | 121 |
Trade and other receivables, net | 12 | 13 |
Finance receivables, net | 198 | 216 |
Investments in non-consolidated affiliates | 64 | 66 |
Property and equipment (net of accumulated depreciation and amortization of $2,555 and $2,546, respectively) | 1,304 | 1,345 |
Goodwill | 38 | 38 |
Intangible assets (net of accumulated amortization of $123 and $120, respectively) | 52 | 57 |
Deferred taxes, net | 157 | 128 |
Other noncurrent assets | 98 | 86 |
Total assets | 5,980 | 6,692 |
Current liabilities | ||
Notes payable and current maturities of long-term debt | 1,492 | 1,110 |
Accounts payable | 1,031 | 1,301 |
Other current liabilities | 1,277 | 1,377 |
Total current liabilities | 3,800 | 3,788 |
Long-term debt | 3,607 | 4,188 |
Postretirement benefits liabilities | 2,966 | 2,995 |
Deferred taxes, net | 0 | 14 |
Other noncurrent liabilities | 797 | 867 |
Total liabilities | 11,170 | 11,852 |
Stockholders’ deficit | ||
Series D convertible junior preference stock | 2 | 2 |
Common stock (86.8 shares issued, and $0.10 par value per share and 220 shares authorized, all at both dates) | 9 | 9 |
Additional paid-in capital | 2,501 | 2,499 |
Accumulated deficit | (4,899) | (4,866) |
Accumulated other comprehensive loss | (2,601) | (2,601) |
Common stock held in treasury, at cost (5.3 shares, at both dates) | (209) | (210) |
Total stockholders’ deficit attributable to Navistar International Corporation | (5,197) | (5,167) |
Stockholders’ equity attributable to non-controlling interests | 7 | 7 |
Total stockholders’ deficit | (5,190) | (5,160) |
Total liabilities and stockholders’ deficit | $ 5,980 | $ 6,692 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jan. 31, 2016 | Oct. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 2,555 | $ 2,546 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 123 | $ 120 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 220 | 220 |
Common stock, shares issued | 86.8 | 86.8 |
Common stock held in treasury, shares | 5.3 | 5.3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Cash flows from operating activities | ||
Net income (loss) | $ (24) | $ (33) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 39 | 58 |
Depreciation of equipment leased to others | 19 | 21 |
Deferred taxes, including change in valuation allowance | (18) | (12) |
Asset impairment charges | 2 | 7 |
Amortization of debt issuance costs and discount | 9 | 9 |
Stock-based compensation | 1 | 2 |
Provision for doubtful accounts, net of recoveries | 2 | (3) |
Equity in income of non-consolidated affiliates, net of dividends | 1 | 5 |
Other non-cash operating activities | (5) | (11) |
Changes in other assets and liabilities, exclusive of the effects of businesses disposed: | ||
Increase (Decrease) in Operating Capital | (128) | (254) |
Net cash used in operating activities | (102) | (211) |
Cash flows from investing activities | ||
Purchases of marketable securities | (117) | (140) |
Sales of marketable securities | 115 | 507 |
Maturities of marketable securities | 9 | 63 |
Net change in restricted cash and cash equivalents | (1) | 53 |
Capital expenditures | (29) | (17) |
Purchases of equipment leased to others | (49) | (10) |
Proceeds from sales of property and equipment | 14 | 1 |
Payments to Acquire Equity Method Investments | (1) | 0 |
Net cash provided by (used in) investing activities | (59) | 457 |
Cash flows from financing activities | ||
Proceeds from issuance of securitized debt | 50 | 250 |
Principal payments on securitized debt | (8) | (240) |
Net change in secured revolving credit facilities | (108) | (27) |
Proceeds from issuance of non-securitized debt | 42 | 35 |
Principal payments on non-securitized debt | (77) | (78) |
Net decrease in notes and debt outstanding under revolving credit facilities | (70) | (43) |
Principal payments under financing arrangements and capital lease obligations | (1) | 0 |
Debt issuance costs | (1) | (4) |
Proceeds from financed lease obligations | 7 | 10 |
Dividends paid by subsidiaries to non-controlling interest | (10) | (12) |
Cash provided by (used in) Other Financing Activities | 1 | 0 |
Net cash used in financing activities | (175) | (109) |
Effect of exchange rate changes on cash and cash equivalents | 3 | (14) |
Increase (decrease) in cash and cash equivalents | (333) | 123 |
Cash and cash equivalents at beginning of the period | 912 | 497 |
Cash and cash equivalents at end of the period | $ 579 | $ 620 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) $ in Millions | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
Stockholders' Equity balance at beginning of period at Oct. 31, 2014 | $ (4,620) | $ 3 | $ 9 | $ 2,500 | $ (4,682) | $ (2,263) | $ (221) | $ 34 |
Net loss attributable to Navistar International Corporation | (42) | (42) | ||||||
Net income (loss) | (33) | 9 | ||||||
Total other comprehensive income | (27) | (27) | ||||||
Transfer from redeemable equity securities upon exercise or expiration of stock options | (1) | (1) | ||||||
Stock-based compensation | 3 | 3 | ||||||
Stock ownership programs | (1) | (4) | 3 | |||||
Dividends paid by subsidiaries to non-controlling interest | (12) | (12) | ||||||
Stockholders' Equity balance at end of period at Jan. 31, 2015 | (4,689) | 3 | 9 | 2,500 | (4,724) | (2,290) | (218) | 31 |
Stockholders' Equity balance at beginning of period at Oct. 31, 2015 | (5,160) | 2 | 9 | 2,499 | (4,866) | (2,601) | (210) | 7 |
Net loss attributable to Navistar International Corporation | (33) | (33) | ||||||
Net income (loss) | (24) | 9 | ||||||
Total other comprehensive income | 0 | |||||||
Stock-based compensation | 2 | 2 | ||||||
Stock ownership programs | 0 | (1) | 1 | |||||
Dividends paid by subsidiaries to non-controlling interest | (10) | (10) | ||||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 1 | 1 | 0 | |||||
Stockholders' Equity, Other | 1 | 0 | 1 | |||||
Stockholders' Equity balance at end of period at Jan. 31, 2016 | $ (5,190) | $ 2 | $ 9 | $ 2,501 | $ (4,899) | $ (2,601) | $ (209) | $ 7 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization and Description of the Business Navistar International Corporation ("NIC"), incorporated under the laws of the State of Delaware in 1993 , is a holding company whose principal operating entities are Navistar, Inc. and Navistar Financial Corporation ("NFC"). References herein to the "Company," "we," "our," or "us" refer collectively to NIC and its consolidated subsidiaries, including certain variable interest entities ("VIEs") of which we are the primary beneficiary. We operate in four principal industry segments: Truck, Parts, Global Operations (collectively called "Manufacturing operations"), and Financial Services, which consists of NFC and our foreign finance operations (collectively called "Financial Services operations"). These segments are discussed in Note 12, Segment Reporting . Our fiscal year ends on October 31. As such, all references to 2016 and 2015 contained within this Quarterly Report on Form 10-Q relate to the fiscal year, unless otherwise indicated. Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements include the assets, liabilities, and results of operations of our Manufacturing operations, which include majority-owned dealers ("Dealcors"), and our Financial Services operations, including VIEs of which we are the primary beneficiary. The effects of transactions among consolidated entities have been eliminated to arrive at the consolidated amounts. Reclassifications were made to present the net change in secured revolving credit facilities as a separate line rather than within proceeds from issuance of securitized debt and principal payments on securitized debt in the Condensed Statements of Cash Flows. This reclassification did not have an impact on our Condensed Statements of Cash Flows . We prepared the accompanying unaudited consolidated financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by U.S. GAAP for comprehensive annual financial statements. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended October 31, 2015 , which should be read in conjunction with the disclosures therein. In our opinion, these interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial condition, results of operations, and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results. Variable Interest Entities We have an interest in several VIEs, primarily joint ventures, established to manufacture or distribute products and enhance our operational capabilities. We have determined for certain of our VIEs that we are the primary beneficiary because we have the power to direct the activities of the VIE that most significantly impact its economic performance and we have the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. Accordingly, we include in our consolidated financial statements the assets and liabilities and results of operations of those entities, even though we may not own a majority voting interest. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather they represent claims against the specific assets of these VIEs. Assets of these entities are not readily available to satisfy claims against our general assets. We are the primary beneficiary of our Blue Diamond Parts ("BDP") joint venture with Ford. As a result, our Consolidated Balance Sheets include assets of $40 million and $50 million and liabilities of $5 million and $7 million as of January 31, 2016 and October 31, 2015 , respectively, including $3 million and $7 million of cash and cash equivalents, at the respective dates, which are not readily available to satisfy claims against our general assets. The creditors of BDP do not have recourse to our general credit. Our Financial Services segment consolidates several VIEs. As a result, our Consolidated Balance Sheets include secured assets of $899 million and $1.1 billion as of January 31, 2016 and October 31, 2015 , respectively, and liabilities of $766 million and $844 million as of January 31, 2016 and October 31, 2015 , respectively, all of which are involved in securitizations that are treated as asset-backed debt. In addition, our Consolidated Balance Sheets include secured assets of $162 million and $235 million as of January 31, 2016 and October 31, 2015 , respectively, and corresponding liabilities of $107 million as of both January 31, 2016 and October 31, 2015 , which are related to other secured transactions that do not qualify for sale accounting treatment, and therefore, are treated as borrowings secured by operating and finance leases. Investors that hold securitization debt have a priority claim on the cash flows generated by their respective securitized assets to the extent that the related VIEs are required to make principal and interest payments. Investors in securitizations of these entities have no recourse to our general credit. We also have an interest in other VIEs, which we do not consolidate because we are not the primary beneficiary. Our financial support and maximum loss exposure relating to these non-consolidated VIEs are not material to our financial condition, results of operations, or cash flows. We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in income of non-consolidated affiliates includes our share of the net income of these entities. Product Warranty Liability The following table presents accrued product warranty and deferred warranty revenue activity: Three Months Ended January 31, (in millions) 2016 2015 Balance at beginning of period $ 994 $ 1,197 Costs accrued and revenues deferred 26 50 Currency translation adjustment (1 ) (2 ) Adjustments to pre-existing warranties (A) 5 (57 ) Payments and revenues recognized (102 ) (105 ) Balance at end of period 922 1,083 Less: Current portion 421 497 Noncurrent accrued product warranty and deferred warranty revenue $ 501 $ 586 _________________________ (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 2015, we recorded a benefit for adjustments to pre-existing warranties of $57 million or $0.70 per diluted share. The impact of income taxes on the adjustments are not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. Extended Warranty Programs The amount of deferred revenue related to extended warranty programs was $383 million and $401 million at January 31, 2016 and October 31, 2015 , respectively. Revenue recognized under our extended warranty programs was $38 million and $37 million for the three months ended January 31, 2016 and 2015 , respectively. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, pension and other postretirement benefits, allowance for doubtful accounts, income tax contingency accruals and valuation allowances, product warranty accruals, 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 our significant unionized workforce. As of January 31, 2016 , approximately 5,500 , or 77% , 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 future operations may be affected by changes in governmental procurement policies, budget considerations, changing national defense requirements, and political, regulatory and economic developments in the U.S. and certain foreign countries (primarily Canada, Mexico, and Brazil). Inventories Inventories are valued at the lower of cost or market. Our gross used truck inventory increased to approximately $440 million at January 31, 2016 from $390 million at October 31, 2015 , offset by reserves of $145 million and $110 million , respectively. During the quarter ended January 31, 2016 , additional reserves of $35 million were recorded primarily in Costs of products sold . In valuing our used truck inventory, we are required to make assumptions regarding the level of reserves required to value inventories at their net realizable value ("NRV"). Our judgments and estimates for used truck inventory are based on an analysis of current and forecasted sales prices, aging of and demand for used trucks, and the mix of sales through various market channels. The NRV is subject to change based on numerous conditions taking into account age, specifications, mileage, timing of sales, market mix and current and forecasted pricing. While calculations are made involving these factors, significant management judgment regarding expectations for future events is involved. Future events that could significantly influence our judgment and related estimates include general economic conditions in markets where our products are sold, actions of our competitors, and the ability to sell used trucks in a timely manner. Recently Adopted Accounting Standards In the three months ended January 31, 2016 , we have not adopted any new accounting guidance that has had a material impact on our consolidated financial statements. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers" (Topic 606), which supersedes the revenue recognition requirements in ASC 605, "Revenue Recognition." This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, which postponed the effective date of ASU No. 2014-09 to fiscal years beginning after December 15, 2017, with early adoption permitted on the original effective date of fiscal years beginning after December 15, 2016. Our effective date for this ASU is November 1, 2018. We are currently evaluating the impact of this ASU on our consolidated financial statements and method of adoption. In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). This ASU requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than twelve months. The accounting by lessors will remain largely unchanged. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Our effective date for this ASU is November 1, 2019. Adoption will require a modified retrospective transition. We are currently evaluating the method of adoption and the impact of this ASU on our consolidated financial statements. |
Restructuring and Impairments
Restructuring and Impairments | 3 Months Ended |
Jan. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructurings and Impairments | Restructurings and Impairments Restructuring charges are recorded based on restructuring plans that have been committed to by management and are, in part, based upon management's best estimates of future events. Changes to the estimates may require future adjustments to the restructuring liabilities. Restructuring Liability The following tables summarize the activity in the restructuring liability, which includes amounts related to discontinued operations and excludes pension and other postretirement contractual termination benefits: (in millions) Balance at October 31, 2015 Additions Payments Adjustments Balance at January 31, 2016 Employee termination charges $ 62 $ 4 $ (22 ) $ (2 ) $ 42 Lease vacancy 5 — (3 ) — 2 Other 1 — — — 1 Restructuring liability $ 68 $ 4 $ (25 ) $ (2 ) $ 45 (in millions) Balance at Additions Payments Adjustments Balance at January 31, 2015 Employee termination charges $ 8 $ 3 $ (3 ) $ (1 ) $ 7 Lease vacancy 11 — (2 ) — 9 Other 1 — — — 1 Restructuring liability $ 20 $ 3 $ (5 ) $ (1 ) $ 17 North American Manufacturing Restructuring Activities We continue to focus on our core Truck and Parts businesses. We continue to evaluate our portfolio of assets to validate their strategic and financial fit, 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. For those areas that fall outside our core businesses, we are evaluating alternatives which could result in additional restructuring and other related charges in the future, including but not limited to: (i) impairments, (ii) costs for employee and contractor termination and other related benefits, and (iii) charges for pension and other postretirement contractual benefits and curtailments. These charges could be significant. Chatham restructuring activities In the third quarter of 2011, we committed to close our Chatham, Ontario heavy truck plant, which had been idled since June 2009. At that time, we recognized curtailment and contractual termination charges related to postretirement plans. Based on a ruling regarding pension benefits received from the Financial Services Tribunal in Ontario, Canada, in the third quarter of 2014, we recognized additional charges of $14 million related to the 2011 closure of the Chatham, Ontario plant. We appealed this ruling, but it was upheld in a July 3, 2015 decision issued by the Divisional Court of Ontario. On July 23, 2015, we filed a notice of motion for leave to appeal to the Court of Appeal for Ontario, which was perfected on August 25, 2015 through an additional filing. On December 21, 2015, the Ontario Court of Appeal denied the motion for leave to appeal. We are in the process of preparing the final partial wind-up report for approval by the Financial Services Commission of Ontario. Potential charges in future periods could range from $0 million to $60 million , primarily related to pension, postretirement costs and termination benefits, which are subject to governmental approval, employee negotiation, acceptance rates and the resolution of disputes related thereto. In addition, we are evaluating the impact of the ruling on prior plan administration practices and it is probable that additional charges will be recognized, but those charges are currently not estimable. Foundry Facilities In December 2014, we announced the closure of our Indianapolis, Indiana foundry facility and on June 30, 2015, we closed this foundry. In addition, on April 30, 2015, we sold our Waukesha, Wisconsin foundry operations. As a result, in the first quarter of 2015, the Truck segment recognized charges of $13 million for the acceleration of depreciation of certain assets related to the foundry facilities. These charges are reported within Costs of products sold in our Consolidated Statements of Operations. Asset Impairments In the first quarter of 2016, we concluded that a triggering event occurred in connection with the potential sale of Pure Power Technologies ("PPT") assets requiring the impairment of its assets in the Truck segment. As a result, a charge of approximately $2 million was recognized in the first quarter of 2016. This charge is reported within Asset impairment charges in our Consolidated Statements of Operations. In February 2016, we sold PPT, a components business focused on air and fuel systems. In the first quarter of 2015, we concluded we had a triggering event related to certain equipment leased to others. As a result, the Truck segment recorded $7 million of asset impairment charges. These charges are reported within Asset impairment charges in our Consolidated Statements of Operations. |
Finance Receivables
Finance Receivables | 3 Months Ended |
Jan. 31, 2016 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Finance receivables are receivables of our Financial Services operations. Finance receivables generally consist of wholesale notes and accounts, as well as retail notes, finance leases and accounts. Total finance receivables reported on the Consolidated Balance Sheets are net of an allowance for doubtful accounts. Total assets of our Financial Services operations net of intercompany balances are $2.1 billion and $2.5 billion as of January 31, 2016 and October 31, 2015 , respectively. Included in total assets of our Financial Services operations are finance receivables of $1.6 billion and $2.0 billion as of January 31, 2016 and October 31, 2015 , respectively. We have two portfolio segments of finance receivables that we distinguish based on the type of customer and nature of the financing inherent to each portfolio. The retail portfolio segment represents loans or leases to end-users for the purchase or lease of vehicles. The wholesale portfolio segment represents loans to dealers to finance their inventory. Our Finance receivables, net consist of the following: (in millions) January 31, 2016 October 31, 2015 Retail portfolio $ 446 $ 554 Wholesale portfolio 1,206 1,467 Total finance receivables 1,652 2,021 Less: Allowance for doubtful accounts 23 26 Total finance receivables, net 1,629 1,995 Less: Current portion, net (A) 1,431 1,779 Noncurrent portion, net $ 198 $ 216 _________________________ (A) The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals. Securitizations Our Financial Services operations transfer wholesale notes, retail accounts receivable, retail notes, finance leases, and operating leases to special purpose entities ("SPEs"), which generally are only permitted to purchase these assets, issue asset-backed securities, and make payments on the securities issued. In addition to servicing receivables, our continued involvement in the SPEs may include an economic interest in the transferred receivables and, in some cases, managing exposure to interest rate changes on the securities using interest rate swaps or interest rate caps. There were no transfers of finance receivables that qualified for sale accounting treatment as of January 31, 2016 and October 31, 2015 , and as a result, the transferred finance receivables are included in our Consolidated Balance Sheets and the related interest earned is included in Finance revenues . We transfer eligible finance receivables into retail note owner trusts or wholesale note owner trusts in order to issue asset-backed securities. These trusts are VIEs of which we are determined to be the primary beneficiary and, therefore, the assets and liabilities of the trusts are included in our Consolidated Balance Sheets . The outstanding balance of finance receivables transferred into these VIEs was $843 million and $1.0 billion as of January 31, 2016 and October 31, 2015 , respectively. Other finance receivables related to secured transactions that do not qualify for sale accounting treatment were $43 million and $96 million as of January 31, 2016 and October 31, 2015 , respectively. For more information on assets and liabilities of consolidated VIEs and other securitizations accounted for as secured borrowings by our Financial Services segment, see Note 1, Summary of Significant Accounting Policies. Finance Revenues The following table presents the components of our Finance revenues : Three Months Ended January 31, (in millions) 2016 2015 Retail notes and finance leases revenue $ 10 $ 13 Wholesale notes interest 26 24 Operating lease revenue 16 15 Retail and wholesale accounts interest 7 8 Gross finance revenues 59 60 Less: Intercompany revenues (24 ) (24 ) Finance revenues $ 35 $ 36 |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 3 Months Ended |
Jan. 31, 2016 | |
Allowance for Doubtful Accounts [Abstract] | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Our two finance receivables portfolio segments, retail and wholesale, each consist of one class of receivable based on: (i) initial measurement attributes of the receivables, and (ii) the assessment and monitoring of risk and performance of the receivables. For more information, see Note 3, Finance Receivables . The following tables present the activity related to our allowance for doubtful accounts for our retail portfolio segment, wholesale portfolio segment, and trade and other receivables: Three Months Ended January 31, 2016 (in millions) Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 22 $ 4 $ 22 $ 48 Provision for doubtful accounts, net of recoveries 2 — 3 5 Charge-off of accounts (A) (3 ) — (1 ) (4 ) Other (B) (2 ) — (1 ) (3 ) Allowance for doubtful accounts, at end of period $ 19 $ 4 $ 23 $ 46 Three Months Ended January 31, 2015 (in millions) Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 24 $ 3 $ 38 $ 65 Provision for doubtful accounts, net of recoveries 2 — — 2 Charge-off of accounts (A) (1 ) — (3 ) (4 ) Other (B) (2 ) — (3 ) (5 ) Allowance for doubtful accounts, at end of period $ 23 $ 3 $ 32 $ 58 _________________________ (A) We repossess sold and leased vehicles on defaulted finance receivables and leases, and place them into Inventories. Losses recognized at the time of repossession and charged against the allowance for doubtful accounts were less than $1 million in both the three months ended January 31, 2016 and 2015. (B) Amounts include impact from currency translation. The accrual of interest income is discontinued on certain impaired finance receivables. Impaired finance receivables include accounts with specific loss reserves and certain accounts that are on non-accrual status. In certain cases, we continue to collect payments on our impaired finance receivables. The following table presents information regarding impaired finance receivables: January 31, 2016 October 31, 2015 (in millions) Retail Wholesale Total Retail Wholesale Total Impaired finance receivables with specific loss reserves $ 19 $ — $ 19 $ 21 $ — $ 21 Impaired finance receivables without specific loss reserves — — — — — — Specific loss reserves on impaired finance receivables 12 — 12 9 — 9 Finance receivables on non-accrual status 19 — 19 21 — 21 The average balances of the impaired finance receivables in the retail portfolio were $20 million and $19 million during the three months ended January 31, 2016 and 2015 , respectively. We use the aging of our receivables as well as other inputs when assessing credit quality. The following table presents the aging analysis for finance receivables: January 31, 2016 October 31, 2015 (in millions) Retail Wholesale Total Retail Wholesale Total Current, and up to 30 days past due $ 382 $ 1,202 $ 1,584 $ 486 $ 1,461 $ 1,947 30-90 days past due 46 3 49 48 4 52 Over 90 days past due 18 1 19 20 2 22 Total finance receivables $ 446 $ 1,206 $ 1,652 $ 554 $ 1,467 $ 2,021 |
Inventories
Inventories | 3 Months Ended |
Jan. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table presents the components of Inventories : (in millions) January 31, October 31, Finished products $ 891 $ 837 Work in process 69 34 Raw materials 309 264 Total inventories, net $ 1,269 $ 1,135 |
Debt
Debt | 3 Months Ended |
Jan. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt (in millions) January 31, 2016 October 31, 2015 Manufacturing operations Senior Secured Term Loan Credit Facility, as amended, due 2020, net of unamortized discount of $16 and $17, respectively $ 1,024 $ 1,023 8.25% Senior Notes, due 2021, net of unamortized discount of $17 and $18, respectively 1,183 1,182 4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $13 and $14, respectively 187 186 4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $30 and $32, respectively 381 379 Debt of majority-owned dealerships 20 28 Financing arrangements and capital lease obligations 46 49 Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040 225 225 Financed lease obligations 91 111 Other 15 15 Total Manufacturing operations debt 3,172 3,198 Less: Current portion 87 103 Net long-term Manufacturing operations debt $ 3,085 $ 3,095 (in millions) January 31, 2016 October 31, 2015 Financial Services operations Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2021 $ 784 $ 870 Bank revolvers, at fixed and variable rates, due dates from 2016 through 2020 981 1,063 Commercial paper, at variable rates, program matures in 2017 74 86 Borrowings secured by operating and finance leases, at various rates, due serially through 2020 88 81 Total Financial Services operations debt 1,927 2,100 Less: Current portion 1,405 1,007 Net long-term Financial Services operations debt $ 522 $ 1,093 Financial Services Operations Asset-backed Debt In February 2016, the maximum capacity of NFC’s wholesale variable funding notes facility was increased from $375 million to $500 million . |
Postretirement Benefits
Postretirement Benefits | 3 Months Ended |
Jan. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Postretirement Benefits | Postretirement Benefits Defined Benefit Plans We provide postretirement benefits to a substantial portion of our employees and retirees. Costs associated with postretirement benefits include pension and postretirement health care expenses for employees, retirees, surviving spouses and dependents. Generally, the pension plans are non-contributory. Our policy is to fund the pension plans in accordance with applicable U.S. and Canadian government regulations and to make additional contributions from time to time. For the three months ended January 31, 2016 and 2015 , we contributed $19 million and $30 million , respectively, to our pension plans to meet regulatory funding requirements. We expect to contribute approximately $80 million to our pension plans during the remainder of 2016 . We primarily fund other post-employment benefit ("OPEB") obligations, such as retiree medical, in accordance with a 1993 Settlement Agreement (the "1993 Settlement Agreement"), which requires us to fund a portion of the plans' annual service cost to a retiree benefit trust (the "Base Trust"). The 1993 Settlement Agreement resolved a class action lawsuit originally filed in 1992 regarding the restructuring of our then applicable retiree health care and life insurance benefits. Contributions for the three months ended January 31, 2016 and 2015 , as well as anticipated contributions for the remainder of 2016 , are not material. Components of Net Periodic Benefit Expense Net periodic benefit expense included in our Consolidated Statements of Operations is comprised of the following: Three Months Ended January 31, Pension Benefits Health and Life (in millions) 2016 2015 2016 2015 Service cost for benefits earned during the period $ 2 $ 3 $ 1 $ 1 Interest on obligation 30 36 15 18 Amortization of cumulative loss 26 25 8 10 Amortization of prior service benefit — — — (1 ) Premiums on pension insurance 4 1 — — Expected return on assets (42 ) (49 ) (6 ) (7 ) Net periodic benefit expense $ 20 $ 16 $ 18 $ 21 In 2016, we changed the approach utilized to estimate the service cost and interest cost components of net periodic benefit cost for our major defined benefit postretirement plans. Historically, we estimated the service cost and interest cost components using a single weighted average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. In 2016, we are using a spot rate approach for the estimation of service and interest cost for our major plans by applying specific spot rates along the yield curve to the relevant projected cash flows, to provide a better estimate of service and interest costs. Interest on the obligation as reported above is $9 million and $4 million lower in the current quarter for pension and for health and life insurance, respectively, as a result of using the spot rate approach compared to the historical approach. Defined Contribution Plans and Other Contractual Arrangements Our defined contribution plans cover a substantial portion of domestic salaried employees and certain domestic represented employees. The defined contribution plans contain a 401(k) feature and provide most participants with a matching contribution from the Company. We deposit the matching contribution annually. Many participants covered by the plans receive annual Company contributions to their retirement accounts based on an age-weighted percentage of the participant's eligible compensation for the calendar year. Defined contribution expense pursuant to these plans was $7 million and $9 million in the three months ended January 31, 2016 and 2015 , respectively. In accordance with the 1993 Settlement Agreement, an independent Retiree Supplemental Benefit Trust (the "Supplemental Trust") was established. The Supplemental Trust, and the benefits it provides to certain retirees pursuant to a certain Retiree Supplemental Benefit Program under the 1993 Settlement Agreement ("Supplemental Benefit Program"), is not part of our consolidated financial statements. Our contingent profit sharing obligations under a certain Supplemental Benefit Trust Profit Sharing Plan ("Supplemental Benefit Trust Profit Sharing Plan") will continue until certain funding targets defined by the 1993 Settlement Agreement are met. We have recorded no profit sharing accruals based on the operating performance of the entities that are included in the determination of qualifying profits. For more information on pending arbitration regarding the Supplemental Benefit Trust Profit Sharing Plan, see Note 11, Commitments and Contingencies . |
Income Taxes
Income Taxes | 3 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We compute, on a quarterly basis, an estimated annual effective tax rate considering ordinary income and related income tax expense. For all periods presented, U.S. and certain foreign results are excluded from ordinary income due to ordinary losses for which no benefit can be recognized. Ordinary income refers to income (loss) before income tax expense excluding significant unusual or infrequently occurring items. The tax effect of a significant unusual or infrequently occurring item is recorded in the interim period in which the item occurs. Items included in income tax expense in the periods in which they occur include the tax effects of material restructurings, impairments, cumulative effect of changes in tax laws or rates, foreign exchange gains and losses, adjustments to uncertain tax positions, and adjustments to our valuation allowance due to changes in judgment regarding the ability to realize deferred tax assets in future years. We have reviewed the impact of recently enacted U.S. tax legislation, the most significant of which is the Protecting Americans from Tax Hikes Act of 2015 ("PATH Act of 2015"), which extended the rules allowing us to forego bonus depreciation in exchange for refunds of previously paid Alternative Minimum Tax ("AMT"). This change has resulted in the likely realization of our deferred AMT credits, on a more likely than not basis, which supports the release of the associated valuation allowance. In addition, PATH Act of 2015 extended the "look-through rule," under subpart F of the U.S. Internal Revenue Code, which had expired for us on September 30, 2015. The "look-through rule" had provided an exception to the U.S. taxation of certain income generated by foreign subsidiaries. The rule was extended in December 2015 with retroactive effect to the beginning of our 2016 fiscal year, and the rule will remain in place through our 2020 fiscal year. This rule extension will allow us to reverse recently recognized deferred tax liabilities associated with earnings in foreign jurisdictions. However, since the reversal of this deferred tax liability will also have an associated and completely offsetting valuation allowance effect, there is no impact to total deferred taxes due to this change. In the first quarter of 2016, we elected to early adopt the provisions of ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” This ASU requires the offset of all deferred tax assets and liabilities, including valuation allowances, for each tax-paying jurisdiction within each tax-paying component. The net deferred tax must be presented as a single noncurrent amount for each jurisdiction. In accordance with the adoption of ASU 2015-17 we have chosen to apply this change prospectively, and as a result, prior year amounts are maintained as originally filed. We have evaluated the need to maintain a valuation allowance for deferred tax assets based on our assessment of whether it is more likely than not that deferred tax benefits will be realized through the generation of future taxable income. Appropriate consideration is given to all available evidence, both positive and negative, in assessing the need for a valuation allowance. As mentioned above, we have concluded that the valuation allowance on our U.S. deferred AMT credits is no longer necessary. This partial valuation allowance release resulted in an income tax benefit of $13 million . We continue to maintain a valuation allowance on our remaining U.S. deferred tax assets, as well as certain foreign deferred tax assets, that we believe, on a more-likely-than-not basis, will not be realized. For all remaining deferred tax assets, while we believe at January 31, 2016 that it is more likely than not that they will be realized, it is reasonably possible that additional deferred tax asset valuation allowances could be required in the next twelve months. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of January 31, 2016 , the amount of liability for uncertain tax positions was $41 million . The liability at January 31, 2016 has a recorded offsetting tax benefit associated with various issues that total $12 million . If the unrecognized tax benefits are recognized, all would impact our effective tax rate. However, to the extent we continue to maintain a full valuation allowance against certain deferred tax assets, the effect may be in the form of an increase in the deferred tax asset related to our net operating loss carryforward, which would be offset by a full valuation allowance. We recognize interest and penalties related to uncertain tax positions as part of Income tax expense . For the three months ended January 31, 2016 and 2015 , total interest and penalties related to our uncertain tax positions resulted in an income tax expense of less than $1 million , for both periods. We have open tax years back to 2001 with various significant taxing jurisdictions including the U.S., Canada, Mexico, and Brazil. In connection with the examination of tax returns, contingencies may arise that generally result from differing interpretations of applicable tax laws and regulations as they relate to the amount, timing, or inclusion of revenues or expenses in taxable income, or the sustainability of tax credits to reduce income taxes payable. We believe we have sufficient accruals for our contingent tax liabilities. Annual tax provisions include amounts considered sufficient to pay assessments that may result from examinations of prior year tax returns, although actual results may differ. While it is probable that the liability for unrecognized tax benefits may increase or decrease during the next twelve months, we do not expect any such change would have a material effect on our financial condition, results of operations, or cash flows. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jan. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair Value Measurements For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect our assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, we classify each fair value measurement as follows: • Level 1—based upon quoted prices for identical instruments in active markets, • Level 2—based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and • Level 3—based upon one or more significant unobservable inputs. The following section describes key inputs and assumptions in our valuation methodologies: Cash Equivalents and Restricted Cash Equivalents —We classify highly liquid investments, with an original maturity of 90 days or less, including U.S. Treasury bills, federal agency securities, and commercial paper, as cash equivalents. The carrying amounts of cash and cash equivalents and restricted cash approximate fair value because of the short-term maturity and highly liquid nature of these instruments. Marketable Securities —Our marketable securities portfolios are classified as available-for-sale and primarily include investments in U.S. government securities and commercial paper with an original maturity greater than 90 days. We use quoted prices from active markets to determine fair value. Derivative Assets and Liabilities —We measure the fair value of derivatives assuming that the unit of account is an individual derivative transaction and that each derivative could be sold or transferred on a stand-alone basis. We classify within Level 2 our derivatives that are traded over-the-counter and valued using internal models based on observable market inputs. In certain cases, market data is not available and we estimate inputs such as in situations where trading in a particular commodity is not active. Measurements based upon these unobservable inputs are classified within Level 3. For more information regarding derivatives, see Note 10, Financial Instruments and Commodity Contracts . Guarantees —We provide certain guarantees of payments and residual values to specific counterparties. Fair value of these guarantees is based upon internally developed models that utilize current market-based assumptions and historical data. We classify these liabilities within Level 3. For more information regarding guarantees, see Note 11, Commitments and Contingencies. The following table presents the financial instruments measured at fair value on a recurring basis: January 31, 2016 October 31, 2015 (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Marketable securities: U.S. Treasury bills $ 44 $ — $ — $ 44 $ 53 $ — $ — $ 53 Other 108 — — 108 106 — — 106 Derivative financial instruments: Foreign currency contracts (A) — 1 — 1 — 1 — 1 Total assets $ 152 $ 1 $ — $ 153 $ 159 $ 1 $ — $ 160 Liabilities Derivative financial instruments: Commodity forward contracts (B) $ — $ 5 $ — $ 5 $ — $ 2 $ — $ 2 Foreign currency contracts (B) — 1 — 1 — 2 — 2 Guarantees — — 10 10 — — 10 10 Total liabilities $ — $ 6 $ 10 $ 16 $ — $ 4 $ 10 $ 14 _________________________ (A) The asset value of foreign currency contracts is included in other current assets as of January 31, 2016 and October 31, 2015 in the accompanying Consolidated Balance Sheets . (B) The liability value of commodity forward contracts and foreign currency contracts is included in other current liabilities as of January 31, 2016 and October 31, 2015 in the accompanying Consolidated Balance Sheets. The following table presents the changes for those financial instruments classified within Level 3 of the valuation hierarchy: Three Months Ended January 31, (in millions) 2016 2015 Guarantees, at November 1 $ (10 ) $ (8 ) Transfers out of Level 3 — — Issuances (1 ) — Settlements 1 — Guarantees, at January 31 $ (10 ) $ (8 ) Change in unrealized gains on assets (liabilities) still held $ — $ — The following table presents the financial instruments measured at fair value on a nonrecurring basis: (in millions) January 31, 2016 October 31, 2015 Level 2 financial instruments Carrying value of impaired finance receivables (A) $ 19 $ 21 Specific loss reserve (12 ) (9 ) Fair value $ 7 $ 12 _________________________ (A) Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors. In addition to the methods and assumptions we use for the financial instruments recorded at fair value as discussed above, we use the following methods and assumptions to estimate the fair value for our other financial instruments that are not marked to market on a recurring basis. The carrying amounts of Cash and cash equivalents , Restricted cash , and Accounts payable approximate fair values because of the short-term maturity and highly liquid nature of these instruments. Finance receivables generally consist of retail and wholesale accounts and retail and wholesale notes. The carrying amounts of Trade and other receivables and retail and wholesale accounts approximate fair values as a result of the short-term nature of the receivables. The carrying amounts of wholesale notes approximate fair values as a result of the short-term nature of the wholesale notes and their variable interest rate terms. Due to the nature of the aforementioned financial instruments, they have been excluded from the fair value amounts presented in the table below. The fair values of our retail notes are estimated by discounting expected cash flows at estimated current market rates. The fair values of our retail notes are classified as Level 3 financial instruments. The fair values of our debt instruments classified as Level 1 were determined using quoted market prices. The 6.5% Tax Exempt Bonds, due 2040, are traded, but the trading market is illiquid, and as a result, the Loan Agreement underlying the Tax Exempt Bonds is classified as Level 2. The fair values of our Level 3 debt instruments are generally determined using internally developed valuation techniques such as discounted cash flow modeling. Inputs such as discount rates and credit spreads reflect our estimates of assumptions that market participants would use in pricing the instrument and may be unobservable. The following tables present the carrying values and estimated fair values of financial instruments: As of January 31, 2016 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 145 $ 145 $ 143 Notes receivable — — 2 2 2 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Facility, as Amended, due 2020 — — 910 910 1,024 8.25% Senior Notes, due 2021 750 — — 750 1,183 4.50% Senior Subordinated Convertible Notes, due 2018 (A) — — 95 95 187 4.75% Senior Subordinated Convertible Notes, due 2019 (A) — — 172 172 381 Debt of majority-owned dealerships — — 20 20 20 Financing arrangements — — 14 14 41 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 — 220 — 220 225 Financed lease obligations — — 91 91 91 Other — — 14 14 15 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2021 — — 780 780 784 Bank revolvers, at fixed and variable rates, due dates from 2016 through 2020 — — 969 969 981 Commercial paper, at variable rates, program matures in 2017 74 — — 74 74 Borrowings secured by operating and finance leases, at various rates, due serially through 2020 — — 88 88 88 As of October 31, 2015 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 170 $ 170 $ 166 Notes receivable — — 3 3 3 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Facility, as Amended, due 2020 — — 1,014 1,014 1,023 8.25% Senior Notes, due 2021 998 — — 998 1,182 4.50% Senior Subordinated Convertible Notes, due 2018 (A) — — 148 148 186 4.75% Senior Subordinated Convertible Notes, due 2019 (A) — — 289 289 379 Debt of majority-owned dealerships — — 28 28 28 Financing arrangements — — 17 17 43 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 — 233 — 233 225 Financed lease obligations — — 111 111 111 Other — — 17 17 15 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2018 — — 865 865 870 Bank revolvers, at fixed and variable rates, due dates from 2016 through 2020 — — 1,048 1,048 1,063 Commercial paper, at variable rates, program matures in 2017 86 — — 86 86 Borrowings secured by operating and finance leases, at various rates, due serially through 2020 — — 80 80 81 _________________________ (A) The carrying value represents the consolidated financial statement amount of the debt which excludes the allocation of the conversion feature to equity, while the fair value is based on internally developed valuation techniques such as discounted cash flow modeling for Level 3 convertible notes which include the equity feature. |
Financial Instruments and Commo
Financial Instruments and Commodity Contracts | 3 Months Ended |
Jan. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Commodity Contracts | Financial Instruments and Commodity Contracts Derivative Financial Instruments We use derivative financial instruments as part of our overall interest rate, foreign currency, and commodity risk management strategies to reduce our interest rate exposure, reduce exchange rate risk for transactional exposures denominated in currencies other than the functional currency, and minimize the effect of commodity price volatility. From time to time, we use foreign currency forward and option contracts to manage the risk of exchange rate movements that would affect the value of our foreign currency cash flows. Foreign currency exchange rate movements create a degree of risk by affecting the value of sales made and costs incurred in currencies other than the functional currency. In addition, we also use commodity forward contracts to manage our exposure to variability in certain commodity prices. We generally do not enter into derivative financial instruments for speculative or trading purposes and did not during the three months ended January 31, 2016 and 2015 . None of our derivatives qualified for hedge accounting treatment during the three months ended January 31, 2016 and 2015 . 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. Collateral is generally not required to be provided by our counter-parties for derivative contracts. However, certain of our derivative contracts contain provisions that require us to provide collateral if certain loss thresholds are exceeded. Collateral of $3 million was provided as of January 31, 2016 and $1 million of collateral was provided as of October 31, 2015 . We manage exposure to counter-party credit risk by entering into derivative financial instruments with various major financial institutions that can be expected to fully perform under the terms of such instruments. We do not anticipate nonperformance by any of the counter-parties. Our exposure to credit risk in the event of nonperformance by the counter-parties is limited to those assets that have been recorded, but have not yet been received in cash. At January 31, 2016 and October 31, 2015 , our exposure to the credit risk of others was $2 million and $1 million , respectively. The following table presents the location and amount of loss (gain) recognized in our Consolidated Statements of Operations related to derivatives: Three Months Ended January 31, (in millions) Location in Consolidated Statements of Operations 2016 2015 Cross currency swaps Other income, net $ — $ 2 Foreign currency contracts Other income, net (1 ) 1 Commodity forward contracts Costs of products sold 5 10 Total loss $ 4 $ 13 Foreign Currency Contracts During 2016 and 2015 , we entered into foreign exchange forward and option contracts as economic hedges of anticipated cash flows denominated in Brazilian Reais, Euros, Canadian Dollars, and Mexican Pesos. All contracts were entered into to protect against the risk that the eventual cash flows resulting from certain transactions would be affected by changes in exchange rates between the U.S. Dollar and the respective foreign currency. The following table presents the outstanding foreign currency contracts as of January 31, 2016 and October 31, 2015 : (in millions) Currency Notional Amount Maturity As of January 31, 2016 Forward exchange contract EUR € 24 February 2016 - October 2016 (A) Forward exchange contract MXN ₱ 889 February 2016 (B) As of October 31, 2015 Forward exchange contract EUR € 30 November 2015 - October 2016 (C) Forward exchange contract CAD C$ 25 November 2015 Forward exchange contract MXN ₱ 1,270 November 2015 _________________________ (A) Forward exchange contracts of €2 million settled in February 2016, €3 million matured in February 2016, €4 million mature in March 2016, €3 million mature in April 2016, and €2 million mature each month from May 2016 through October 2016. (B) Forward exchange contracts of ₱431 million matured in January 2016 but settled in February 2016 and ₱458 million matured and settled in February 2016. (C) Forward exchange contracts of €2 million settled in November 2015, €3 million matured in November 2015, €3 million matured in December 2015, €4 million matured in January 2016, and €2 million mature each month from February 2016 through October 2016. Commodity Forward Contracts During 2016 and 2015 , we entered into commodity forward contracts as economic hedges of our exposure to variability in commodity prices for diesel fuel and steel. As of January 31, 2016 , we had outstanding diesel fuel contracts with aggregate notional values of $26 million and outstanding steel contracts with aggregate notional values of $12 million . The commodity forward contracts have various maturity dates through December 31, 2016. As of October 31, 2015 , we had outstanding diesel fuel contracts with aggregate notional values of $24 million and outstanding steel contracts with aggregate notional values of $6 million . All of these contracts were entered into to protect against the risk that the eventual cash flows related to purchases of the commodities will be affected by changes in prices. Interest-Rate Contracts From time to time, we enter into various interest-rate contracts, interest rate caps, and cross currency swaps. As of January 31, 2016 , the notional amount of our outstanding cross currency swaps was $28 million . As of October 31, 2015 , there were no outstanding cross currency swaps. We are exposed to interest rate and exchange rate risk as a result of our borrowing activities. The objective of these contracts is to mitigate fluctuations in earnings, cash flows, and fair value of borrowings. Our Mexican financial services operation uses interest rate caps and cross currency swaps to protect against the potential of rising interest rates as required by the terms of its variable-rate asset-backed securities, and fluctuations in the value of the peso, as required under our Mexican bank credit facilities. As of January 31, 2016 and October 31, 2015 , the notional amount of our outstanding interest rate caps at our Mexican financial services operation was $133 million and $108 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jan. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees We occasionally provide guarantees that could obligate us to make future payments if the primary entity fails to perform under its contractual obligations. We have recognized liabilities for some of these guarantees in our Consolidated Balance Sheets as they meet the recognition and measurement provisions of U.S. GAAP. In addition to the liabilities that have been recognized, we are contingently liable for other potential losses under various guarantees. We do not believe that claims that may be made under such guarantees would have a material effect on our financial condition, results of operations, or cash flows. In March 2010, we entered into an operating agreement with GE Capital which contains automatic extensions and is subject to early termination provisions (the "Navistar Capital Operating Agreement"). Effective December 1, 2015, GE Capital assigned the Navistar Capital Operating Agreement to BMO Financial Group and its wholly-owned subsidiary BMO Harris Bank N.A. (together “BMO”) as part of General Electric’s sale of its GE Transportation Finance business. Under the terms of the Navistar Capital Operating Agreement, GE Capital has been, and going forward BMO will be, our third-party preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. We refer to this alliance as "Navistar Capital." The Navistar Capital Operating Agreement contains a loss sharing arrangement for certain credit losses. Under the loss sharing arrangement, as amended, we generally reimburse our financing partner for credit losses in excess of the first 10% of the financed value of a contract; for certain leases we reimburse our financing partner for credit losses up to a maximum of the first 9.5% of the financed value of those lease contracts. Our exposure to loss is mitigated because contracts under the Navistar Capital Operating Agreement are secured by the financed equipment. There were $1.4 billion of outstanding loan principal and operating lease payments receivable at both January 31, 2016 and October 31, 2015 , financed through the Navistar Capital Operating Agreement and subject to the loss sharing arrangements in the U.S. The related financed values of these outstanding contracts were $2.4 billion and $2.3 billion at January 31, 2016 and October 31, 2015 , respectively. Generally, we do not carry the contracts under the Navistar Capital Operating Agreement on our Consolidated Balance Sheets . However, for certain Navistar Capital financed contracts which we have accounted for as borrowings, we have recognized equipment leased to others of $84 million and financed lease obligations of $91 million in our Consolidated Balance Sheets as of January 31, 2016 . Based on our historic experience of losses on similar contracts and the nature of the loss sharing arrangement, we do not believe our share of losses related to balances currently outstanding will be material. We also have issued limited residual value guarantees in connection with various leases. The amounts of the guarantees are estimated and recorded. Our guarantees are contingent upon the fair value of the leased assets at the end of the lease term. The amount of losses related to these arrangements has not been material to our Consolidated Statements of Operations or 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 January 31, 2016 , the amount of stand-by letters of credit and surety bonds was $88 million . We extend credit commitments to certain truck fleet customers, which allow them to purchase parts and services from participating dealers. The participating dealers receive accelerated payments from us with the result that we carry the receivables and absorb the credit risk related to these customers. As of January 31, 2016 , the total credit limit under this program was $11 million of which $8 million was unused. In addition, as of January 31, 2016 , we have entered into various purchase commitments of $15 million and contracts that have cancellation fees of $51 million with various expiration dates through 2020. In the ordinary course of business, we also provide routine indemnifications and other guarantees, the terms of which range in duration and often are not explicitly defined. We do not believe these will result in claims that would have a material impact on our financial condition, results of operations, or cash flows. Environmental Liabilities We have been named a potentially responsible party ("PRP"), in conjunction with other parties, in a number of cases arising under an environmental protection law, the Comprehensive Environmental Response, Compensation, and Liability Act, popularly known as the "Superfund" law. These cases involve sites that allegedly received wastes from current or former Company locations. Based on information available to us which, in most cases, consists of data related to quantities and characteristics of material generated at current or former Company locations, material allegedly shipped by us to these disposal sites, as well as cost estimates from PRPs and/or federal or state regulatory agencies for the cleanup of these sites, a reasonable estimate is calculated of our share of the probable costs, if any, and accruals are recorded in our consolidated financial statements. These accruals are generally recognized no later than upon completion of the remedial feasibility study and are not discounted to their present value. We review all accruals on a regular basis and believe that, based on these calculations, our share of the potential additional costs for the cleanup of each site will not have a material effect on our financial condition, results of operations, or cash flows. Two sites formerly owned by us, Solar Turbines in San Diego, California, and the Canton Plant in Canton, Illinois, were identified as having soil and groundwater contamination. Two sites in Sao Paulo, Brazil, one at which we are currently operating and one where we formerly operated, were identified as having soil and groundwater contamination. While investigations and cleanup activities continue at these and other sites, we believe that we have adequate accruals to cover costs to complete the cleanup of all sites. We have accrued $23 million for these and other environmental matters, which are included within Other current liabilities and Other noncurrent liabilities , as of January 31, 2016 . The majority of these accrued liabilities are expected to be paid subsequent to 2017 . Along with other vehicle manufacturers, we have been subject to an increased number of asbestos-related claims in recent years. In general, these claims relate to illnesses alleged to have resulted from asbestos exposure from component parts found in older vehicles, although some cases relate to the alleged presence of asbestos in our facilities. In these claims, we are generally not the sole defendant, and the claims name as defendants numerous manufacturers and suppliers of a wide variety of products allegedly containing asbestos. We have strongly disputed these claims, and it has been our policy to defend against them vigorously. Historically, the actual damages paid out to claimants have not been material in any year to our financial condition, results of operations, or cash flows. It is possible that the number of these claims will continue to grow, and that the costs for resolving asbestos related claims could become significant in the future. Legal Proceedings Overview We are subject to various claims arising in the ordinary course of business, and are party to various legal proceedings that constitute ordinary, routine litigation incidental to our business. The majority of these claims and proceedings relate to commercial, product liability, and warranty matters. In addition, from time to time we are subject to various claims and legal proceedings related to employee compensation, benefits, and benefits administration including, but not limited to, compliance with the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and Department of Labor requirements. In our opinion, apart from the actions set forth below, the disposition of these proceedings and claims, after taking into account recorded accruals and the availability and limits of our insurance coverage, will not have a material adverse effect on our business or our financial condition, results of operations, or cash flows. Profit Sharing Disputes Pursuant to the 1993 Settlement Agreement, the program administrator and named fiduciary of the Supplemental Benefit Program is the Supplemental Benefit Program committee (the "Committee"), comprised of non-Company individuals. In August 2013, the Committee filed a motion for leave to amend its February 2013 complaint (which sought injunctive relief for the Company to provide certain information to which it was allegedly entitled under the Supplemental Benefit Trust Profit Sharing Plan) and a proposed amended complaint (the "Profit Sharing Complaint") in the U.S. District Court for the Southern District of Ohio (the "Court"). Leave to file the Profit Sharing Complaint was granted by the Court in October 2013. In its Profit Sharing Complaint, the Committee alleged the Company breached the 1993 Settlement Agreement and violated ERISA by failing to properly calculate profit sharing contributions due under the Supplemental Benefit Trust Profit Sharing Plan. The Committee seeks damages in excess of $50 million , injunctive relief and reimbursement of attorneys' fees and costs. In October 2013, the Company filed a Motion to Dismiss the Profit Sharing Complaint and to compel the Committee to comply with the dispute resolution procedures set forth in the Supplemental Benefit Trust Profit Sharing Plan. In March 2014, the Court denied the Company's Motion to Dismiss and ruled, among other things, that the Company waived its right to compel the Committee to comply with the dispute resolution provisions set forth in the Supplemental Benefit Trust Profit Sharing Plan. In April 2014, the Company appealed the Court's refusal to compel the Committee to comply with the dispute resolution process to the Court of Appeals for the 6th Circuit. The Company also filed a motion with the Court to stay all proceedings pending the appeal. In May 2014, the Court granted the motion to stay all proceedings, including discovery, pending the appeal. In March 2015, the 6 th Circuit Court of Appeals remanded the case to the Court with instructions that the Committee’s claims in the Profit Sharing Complaint be arbitrated. In May 2015, the Court ordered that the claims in the Profit Sharing Complaint be arbitrated pursuant to the dispute resolution procedures in the Supplemental Benefit Trust Profit Sharing Plan. In November 2015, the Company and the Committee selected an arbitrator. The discovery process has commenced. In addition, various local bargaining units of the United Automobile, Aerospace and Agricultural Implement Workers of America ("UAW") have filed separate grievances pursuant to the profit sharing plans under various collective bargaining agreements in effect between the Company and the UAW that may have similar legal and factual issues as the Profit Sharing Complaint. Based on our assessment of the facts underlying the claims in the above actions, we are unable to provide meaningful quantification of how the final resolution of these claims may impact our future consolidated financial condition, results of operations, or cash flows. FATMA Notice International Indústria de Motores da América do Sul Ltda. ("IIAA"), formerly known as Maxion International Motores S/A ("Maxion"), now a wholly owned subsidiary of the Company, received a notice in July 2010 from the State of Santa Catarina Environmental Protection Agency ("FATMA") in Brazil. The notice alleged that Maxion had sent wastes to a facility owned and operated by a company known as Natureza and that soil and groundwater contamination had occurred at the Natureza facility. The notice asserted liability against Maxion and assessed an initial penalty in the amount of R$2 million (the equivalent of approximately less than US $1 million at January 31, 2016 ), which is not due and final until all administrative appeals are exhausted. Maxion was one of numerous companies that received similar notices. IIAA filed an administrative defense in August 2010 and has not yet received a decision following that filing. IIAA disputes the allegations in the notice and intends to vigorously defend itself. Sao Paulo Groundwater Notice In March 2014, IIAA, along with other nearby companies, received from the Sao Paulo District Attorney a notice and proposed Consent Agreement relating to alleged neighborhood-wide groundwater contamination at or around its Sao Paulo manufacturing facility. The proposed Consent Agreement seeks certain groundwater investigations and other technical relief and proposes sanctions in the amount of R $3 million (the equivalent of approximately US $1 million at January 31, 2016 ). In November 2014, IIAA extended a settlement offer. Currently, the parties remain in settlement discussions concerning the sanctions amount and the provisions of a Consent Agreement. MaxxForce Engine EGR Warranty Litigation On June 24, 2014, N&C Transportation Ltd. filed a putative class action lawsuit against Navistar International Corporation, Navistar, Inc., Navistar Canada Inc., and Harbour International Trucks (collectively, "Navistar") in Canada in the Supreme Court of British Columbia (the "N&C Action"). Subsequently, six additional, similar putative class action lawsuits have been filed in Canada (together with the N&C Action, the "Canadian Actions"). A certification hearing is scheduled in the N&C Action starting on June 13, 2016. The plaintiff submitted application materials for the certification motion, and Navistar's responding materials were filed on December 4, 2015. There are no court dates scheduled in any of the other Canadian Actions at this time. On July 7, 2014, Par 4 Transport, LLC filed a putative class action lawsuit against Navistar, Inc. in the United States District Court for the Northern District of Illinois (the "Par 4 Action"). Subsequently, sixteen additional putative class action lawsuits were filed in various United States district courts, including the Northern District of Illinois, the Eastern District of Wisconsin, the Southern District of Florida, the Middle District of Pennsylvania, the Southern District of Texas, the Western District of Kentucky, the District of Minnesota, and the District of Alabama (together with the Par 4 Action, the "U.S. Actions"). Some of the U.S. Actions name both Navistar International Corporation and Navistar, Inc. The U.S. Actions allege matters substantially similar to the Canadian Actions. More specifically, the Canadian Actions and the U.S. Actions (collectively, the "EGR Class Actions") seek to certify a class of persons or entities in Canada or the United States who purchased and/or leased a ProStar or other Navistar vehicle equipped with a model year 2008-2013 MaxxForce Advanced EGR engine. In substance, the EGR Class Actions allege that the MaxxForce Advanced EGR engines are defective and that the Company and Navistar, Inc. failed to disclose and correct the alleged defect. The EGR Class Actions assert claims based on theories of contract, breach of warranty, consumer fraud, unfair competition, misrepresentation and negligence. The EGR Class Actions seek relief in the form of monetary damages, punitive damages, declaratory relief, interest, fees, and costs. On October 3, 2014, Navistar International Corporation and Navistar, Inc. filed a motion before the United States Judicial Panel on Multidistrict Litigation (the "MDL Panel") seeking to transfer and consolidate before Judge Joan B. Gottschall of the United States District Court for the Northern District of Illinois all of the then-pending U.S. Actions, as well as certain non-class action MaxxForce Advanced EGR engine lawsuits pending in various federal district courts. On December 17, 2014, Navistar's motion to consolidate the U.S. Actions and certain other non-class action lawsuits was granted. The MDL Panel issued an order consolidating all of the U.S. Actions that were pending on the date of Navistar’s motion before Judge Gottschall in the United States District Court for the Northern District of Illinois (the "MDL Action"). The MDL Panel also consolidated into the MDL Action certain non-class action MaxxForce Advanced EGR engine lawsuits pending in the various federal district courts, with the exception of one matter. For putative class action lawsuits filed subsequent to Navistar’s original motion, we continue to request that the MDL Panel similarly transfer and consolidate these U.S. Actions. At the request of the various law firms representing the plaintiffs in the MDL Action, on March 5, 2015, Judge Gottschall entered an order in the MDL Action appointing interim lead counsel and interim liaison counsel for the plaintiffs. On May 11, 2015, lead counsel for the plaintiffs filed a First Master Consolidated Class Action Complaint ("Consolidated Complaint"). The parties to the MDL Action exchanged initial disclosures on May 29, 2015. The Company answered the Consolidated Complaint on July 13, 2015. Based on our assessment of the facts underlying the claims in the above actions, we are unable to provide meaningful quantification of how the final resolution of these claims may impact our future consolidated financial condition, results of operations, or cash flows. EPA Clean Air Act Litigation In February 2012, Navistar, Inc. received a Notice of Violation ("NOV") from the United States Environmental Protection Agency (the "EPA") pertaining to certain heavy-duty diesel engines which, according to EPA, were not completely assembled by Navistar, Inc. until calendar year 2010 and, therefore, were not covered by Navistar, Inc.'s model year 2009 certificates of conformity. The NOV concluded that Navistar, Inc.'s introduction into commerce of each of these engines violated the Federal Clean Air Act. On July 14, 2015, the Department of Justice ("DOJ"), on behalf of the EPA, filed a lawsuit against the Company and Navistar, Inc. in the U.S. District Court for the Northern District of Illinois. Similar to the NOV, the lawsuit alleges that the Company and Navistar, Inc. introduced into commerce approximately 7,749 heavy-duty diesel engines that were not covered by model year 2009 certificates of conformity because those engines were not completely assembled until calendar year 2010, resulting in violations of the Federal Clean Air Act. On July 16, 2015, the DOJ filed an Amended Complaint clarifying the amount of civil penalties being sought. The lawsuit requests injunctive relief and the assessment of civil penalties of up to $37,500 for each violation. On September 14, 2015, the Company and Navistar, Inc. each filed an Answer and Affirmative Defenses to the Amended Complaint. On December 1, 2015, the Court entered an order setting a discovery schedule. Discovery in the matter will proceed in two phases. Fact discovery for the liability phase commenced on December 9, 2015, and is scheduled to be completed on August 9, 2016, followed by expert discovery. The deadline for dispositive motions is January 20, 2017. After completion of the first phase, the Court will, if necessary, set further dates for a remedy phase. The Company and Navistar, Inc. dispute the allegations in the lawsuit. Based on our assessment of the facts underlying the complaint above, we are unable to provide meaningful quantification of how the final resolution of this matter may impact our future consolidated financial condition, results of operations or cash flows. Shareholder Litigation In March 2013, a putative class action complaint, alleging securities fraud, was filed against us by the Construction Workers Pension Trust Fund - Lake County and Vicinity, on behalf of itself and all other similarly situated purchasers of our common stock between the period of November 3, 2010 and August 1, 2012. A second class action complaint was filed in April 2013 by the Norfolk County Retirement System, individually and on behalf of all other similarly situated purchasers of our common stock between the period of June 9, 2010 and August 1, 2012. A third class action complaint was filed in April 2013 by Jane C. Purnell FBO Purnell Family Trust, on behalf of itself and all other similarly situated purchasers of our common stock between the period of November 3, 2010 and August 1, 2012. Each complaint named us as well as Daniel C. Ustian, our former President and Chief Executive Officer, and Andrew J. Cederoth, our former Executive Vice President and Chief Financial Officer as defendants. These complaints (collectively, the "10b-5 Cases") contain similar factual allegations which include, among other things, that we violated the federal securities laws by knowingly issuing materially false and misleading statements concerning our financial condition and future business prospects and that we misrepresented and omitted material facts in filings with the U.S. Securities Exchange Commission (“SEC") concerning the timing and likelihood of EPA certification of our EGR technology to meet 2010 EPA emission standards. The plaintiffs in these matters seek compensatory damages and attorneys' fees, among other relief. In May 2013, an order was entered transferring and consolidating all 10b-5 Cases before one judge sitting in the U.S. District Court for the Northern District of Illinois and in July 2013, the Court appointed a lead plaintiff and lead plaintiff's counsel. The lead plaintiff filed a Consolidated Amended Complaint in October 2013. The Consolidated Amended Complaint enlarged the proposed class period to June 9, 2009 through August 1, 2012, and named fourteen additional current and former directors and officers as defendants. On December 17, 2013, defendants filed a motion to dismiss the Consolidated Amended Complaint. On July 22, 2014, the Court granted the defendants' Motion to Dismiss, denied the lead plaintiff's Motion to Strike as moot, and gave the lead plaintiff leave to file a second consolidated amended complaint by August 22, 2014. On August 22, 2014, the plaintiff filed a Second Amended Complaint, which narrowed the claims in two ways. First, the plaintiff abandoned its claims against the majority of the defendants. The Second Amended Complaint brought claims against only Navistar, Dan Ustian, 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. In November 2014, the plaintiff voluntarily dismissed Eric Tech as a defendant. On July 10, 2015, the Court issued its Opinion and Order on our Motion to Dismiss the Second Amended Complaint. The Motion to Dismiss was granted in part and denied in part. Specifically, the Court (i) dismissed all of plaintiff’s claims against the Company, Andrew J. Cederoth and Jack Allen and (ii) dismissed all of plaintiffs’ claims against Daniel C. Ustian, the only remaining defendant, except for claims regarding two of Mr. Ustian’s statements. Further, all of the dismissed claims were dismissed with prejudice except for claims based on statements made subsequent to the lead plaintiff’s last purchase of the Company’s stock (the “Post-Purchase Claims”). The Court determined the lead plaintiff lacked standing to assert the Post-Purchase Claims and dismissed those claims without prejudice. At a December 1, 2015 status conference, the parties reported that a settlement in principle had been reached, subject to, among other things, final documentation, confirmatory discovery and Court approval, and the Court filed a minute entry reflecting such report. At a February 2, 2016 status conference, the parties reported on the status of settlement documentation and confirmatory discovery and the Court set a new status conference for April 5, 2016. In March 2013, James Gould filed a derivative complaint in the U.S. District Court for the Northern District of Illinois on behalf of the Company against us and certain of our current and former directors and former officers. The complaint alleges, among other things, that certain of our current and former directors and former officers committed a breach of fiduciary duty, waste of corporate assets and were unjustly enriched in relation to similar factual allegations made in the 10b-5 Cases. The plaintiff in this matter seeks compensatory damages, certain corporate governance reforms, certain injunctive relief, disgorgement of the proceeds of certain defendants' profits from the sale of Company stock, and attorneys' fees, among other relief. On May 3, 2013, the court entered a Stipulation and Order to Stay Action, staying the case pending further order of the court or entry of an order on the motion to dismiss the Consolidated Amended Complaint in the 10b-5 Cases. On July 31, 2014, after the amended complaint was dismissed, the parties filed a status report, and the court entered an order on August 27, 2014 continuing the stay pending a ruling on defendants' motion to dismiss the Second Amended Complaint in the 10b-5 Cases. In November 2015, the existing stay order in this derivative action was further extended through March 22, 2016. In August 2013, Abbie Griffin filed a derivative complaint in the State of Delaware Court of Chancery, on behalf of the Company against us and certain of our current and former directors and former officers. The complaint alleges, among other things, that certain of our current and former directors and former officers committed a breach of fiduciary duty, in relation to similar factual allegations made in the 10b-5 Cases. The plaintiff in this matter seeks compensatory damages, certain corporate governance reforms, certain injunctive relief, and attorneys' fees, among other relief. On August 29, 2013, the court entered an order staying the case pending resolution of the defendant's motion to dismiss the Consolidated Amended Complaint in the 10b-5 Cases. On August 5, 2014, the parties filed a status report with the court requesting that the August 2013 stay order remain in place pending a ruling on the motion to dismiss the Second Amended Complaint in the 10b-5 Cases and on November 9, 2014, the court entered an order continuing the stay pending a ruling on defendants’ motion to dismiss the Second Amended Complaint in the 10b-5 Cases. In August 2015, the court further extended the stay of this derivative action through December 3, 2015. In November 2015, the court further extended the stay through March 23, 2016. Based on our assessment of the facts underlying these matters described above, we are unable to provide meaningful quantification of how the final resolution of these matters may impact our future consolidated financial condition, results of operations, or cash flows. Brazil Truck Dealer Disputes In January 2014, IIAA initiated an arbitration proceeding under the International Chamber of Commerce rules seeking payment for goods sold and unpaid, in the amount of R$64 million (approximately US $16 million as of January 31, 2016 ), including penalties and interest, from a group of affiliated truck dealers in Brazil. The truck dealers are affiliated with each other, but not with us, and are collectively referred to as Navitrucks. In the proceeding, IIAA also seeks a declaration of fault against Navitrucks related to the termination of the truck dealer agreements between IIAA and Navitrucks. Navitrucks responded in part by submitting counterclaims against IIAA seeking the amount of R$128 million (approximately US $32 million as of January 31, 2016 ) for damages related to alleged unfulfilled promises and injury to Navitrucks’ reputation. In October 2014, Navitrucks amended their counterclaims by increasing the amount of damages. During a preliminary hearing before the arbitral tribunal on March 24, 2015, the parties agreed to submit all of the pending claims between the parties to the exclusive jurisdiction of the arbitral tribunal. Pursuant to the timetable issued in the arbitration proceeding, IIAA presented its complaint in July 2015, Navitrucks filed its answer and counterclaims on August 24, 2015, and IIAA filed its rebuttal and answer to Navitrucks’ counterclaims on October 22, 2015. On December 7, 2015, Navitrucks filed its rebuttal to IIAA’s answer to counterclaims. The parties now expect the arbitral tribunal to set a hearing date. As of January 31, 2016 , the approximate amount of the IIAA claim against Navitrucks is R $119 million (approximately US $29 million as of January 31, 2016 ), and the approximate amount of the Navitrucks claim against IIAA is R $116 million (approximately US $29 million as of January 31, 2016 ). In addition, Navitrucks has acknowledged that IIAA is entitled to a credit against Navitrucks’ damages claim in the approximate amount of R $64 million (approximately US $16 million as of January 31, 2016 ). Based on our assessment of the facts underlying the claims in the above actions, we are unable to provide meaningful quantification of how the final resolution of these claims may impact our future consolidated financial condition, results of operations, or cash flows. In addition, two other truck dealers and a truck fleet owner in Brazil initiated separate adversarial proceedings against IIAA that may have similar legal and factual issues as the Navitrucks claim. One truck dealer proceeding was resolved in favor of IIAA and the other two proceedings remain pending. These other claims are not material either individually or in the aggregate. Other U.S. Securities and Exchange Commission Inquiry In June 2012, Navistar received an informal inquiry from the Chicago Office of the Enforcement Division of the SEC seeking a number of categories of documents for the periods dating back to November 1, 2010, relating to various accounting and disclosure issues. We received a formal order of private investigation in July 2012. We have received subsequent subpoenas from the staff of the SEC in connection with their inquiry. In December 2014, the SEC filed an application in the United States District Court for the Northern District of Illinois seeking an order compelling the production of certain documents withheld by Navistar from its responses to the administrative subpoenas on the basis of attorney-client privilege and/or the work product doctrine. The discovery dispute involved a small number of documents in relation to the number of documents already produced by Navistar. On June 30, 2015, following an in camera review of some of the documents at issue, the Court entered an Order sustaining the privilege claims in part and overruling the claims in part. The Court also entered related orders dated August 31, 2015 and October 21, 2015. Pursuant to those Orders, Navistar completed the production of those documents, or portions of documents, for which its privilege claims were denied, as well as other documents subject to the SEC’s December 2014 application that the Company determined were not privileged under the reasoning of the Court’s June 30, 2015 Order. On August 13 and 17, 2015, the SEC staff transmitted “Wells Notices” in connection with the formal order of investigation from July 2012 described above. The Notices state that the staff has made a preliminary determination to recommend that the SEC file an enforcement action against the Company and its former chief executive officer, Daniel Ustian, alleging violations of the Securities Exchange Act of 1934, certain related regulations, the Securities Act of 1933, and an August 5, 2010 Order Instituting Cease-and-Desist Proceedings against the Company. We have been informed that the issues the staff may recommend the SEC pursue concern three applications in 2011 and 2012 by Navistar to the EPA for certification of heavy-duty diesel engines emitting 0.2g of NOx, as well as disclosures related to the circumstances of Mr. Ustian’s departure from the Company in August |
Segment Reporting
Segment Reporting | 3 Months Ended |
Jan. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The following is a description of our four reporting segments: • Our Truck segment manufactures and distributes Class 4 through 8 trucks, buses, and military vehicles under the International and IC Bus ("IC") brands, and produces engines under our proprietary brand name and parts required to support the military truck lines. This segment sells its products in markets that include the U.S., Canada, Mexico, and within our export truck business. In an effort to strengthen and maintain our dealer network, this segment occasionally acquires and operates dealer locations for the purpose of transitioning ownership. • Our Parts segment provides customers with proprietary products needed to support the International commercial truck, IC Bus, proprietary engine lines, and export parts business, as well as our other product lines. Our Parts segment also provides a wide selection of other standard truck, trailer, and engine aftermarket parts. Also included in the Parts segment are the operating results of BDP, which manages the sourcing, merchandising, and distribution of certain service parts we sell to Ford in North America. • Our Global Operations segment primarily consists of the IIAA (formerly MWM International Industria De Motores Da America Do Sul Ltda. ("MWM")) engine and truck operations in Brazil. The IIAA engine operations produce diesel engines, primarily under contract manufacturing arrangements, as well as under the MWM brand, for sale to OEMs in South America. In addition, our Global Operations segment includes the operating results of our joint venture in China with Anhui Jianghuai Automobile Co ("JAC"). • Our Financial Services segment provides retail, wholesale, and lease financing of products sold by the Truck and Parts segments and their dealers within the U.S. and Mexico, as well as financing for wholesale accounts and selected retail accounts receivable. Corporate contains those items that are not included in our four segments. Segment Profit (Loss) We define segment profit (loss) as Net income (loss) from continuing operations attributable to Navistar International Corporation excluding Income tax benefit (expense) . Selected financial information is as follows: (in millions) Truck Parts Global Operations Financial (A) Corporate Total Three Months Ended January 31, 2016 External sales and revenues, net $ 1,081 $ 562 $ 84 $ 35 $ 3 $ 1,765 Intersegment sales and revenues 51 8 8 24 (91 ) — Total sales and revenues, net $ 1,132 $ 570 $ 92 $ 59 $ (88 ) $ 1,765 Income (loss) from continuing operations attributable to NIC, net of tax $ (51 ) $ 150 $ (13 ) $ 26 $ (145 ) $ (33 ) Income tax benefit — — — — 5 5 Segment profit (loss) $ (51 ) $ 150 $ (13 ) $ 26 $ (150 ) $ (38 ) Depreciation and amortization $ 34 $ 3 $ 5 $ 12 $ 4 $ 58 Interest expense — — — 19 62 81 Equity in income (loss) of non-consolidated affiliates 1 1 (3 ) — — (1 ) Capital expenditures (B) 25 1 1 — 2 29 (in millions) Truck Parts Global Operations Financial (A) Corporate Total Three Months Ended January 31, 2015 External sales and revenues, net $ 1,631 $ 614 $ 138 $ 36 $ 2 $ 2,421 Intersegment sales and revenues 74 12 14 24 (124 ) — Total sales and revenues, net $ 1,705 $ 626 $ 152 $ 60 $ (122 ) $ 2,421 Income (loss) from continuing operations attributable to NIC, net of tax $ (18 ) $ 145 $ (15 ) $ 24 $ (178 ) $ (42 ) Income tax expense — — — — (7 ) (7 ) Segment profit (loss) $ (18 ) $ 145 $ (15 ) $ 24 $ (171 ) $ (35 ) Depreciation and amortization $ 52 $ 3 $ 7 $ 12 $ 5 $ 79 Interest expense — — — 20 57 77 Equity in income (loss) of non-consolidated affiliates 2 1 (1 ) — — 2 Capital expenditures (B) 14 — 2 — 1 17 (in millions) Truck Parts Global Operations Financial Services Corporate and Eliminations Total Segment assets, as of: January 31, 2016 $ 1,934 $ 623 $ 349 $ 2,094 $ 980 $ 5,980 October 31, 2015 1,876 641 409 2,455 1,311 6,692 _________________________ (A) Total sales and revenues in the Financial Services segment include interest revenues of $42 million and $45 million for the three months ended January 31, 2016 and 2015 , respectively. (B) Exclusive of purchases of equipment leased to others. |
Stockholders' Deficit
Stockholders' Deficit | 3 Months Ended |
Jan. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders' Deficit Accumulated Other Comprehensive Loss Changes in Accumulated other comprehensive loss , net of tax, included in the Consolidated Statements of Stockholders' Deficit , consisted of the following: (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2015 $ 1 $ (287 ) $ (2,315 ) $ (2,601 ) Other comprehensive loss before reclassifications — (33 ) — (33 ) Amounts reclassified out of accumulated other comprehensive loss — — 33 33 Net current-period other comprehensive income (loss) — (33 ) 33 — Balance as of January 31, 2016 $ 1 $ (320 ) $ (2,282 ) $ (2,601 ) (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2014 $ 1 $ (127 ) $ (2,137 ) $ (2,263 ) Other comprehensive loss before reclassifications — (59 ) — (59 ) Amounts reclassified out of accumulated other comprehensive loss — — 32 32 Net current-period other comprehensive income (loss) — (59 ) 32 (27 ) Balance as of January 31, 2015 $ 1 $ (186 ) $ (2,105 ) $ (2,290 ) The following table displays the amounts reclassified from Accumulated other comprehensive loss and the affected line item in the Consolidated Statements of Operations: Three Months Ended January 31, Location in Consolidated 2016 2015 Defined benefit plans Amortization of prior service benefit Selling, general and administrative expenses $ — $ (1 ) Amortization of actuarial loss Selling, general and administrative expenses 33 33 Total reclassifications for the period (net of tax of $0 for both periods) $ 33 $ 32 |
Stockholders' Deficit | The following table displays the amounts reclassified from Accumulated other comprehensive loss and the affected line item in the Consolidated Statements of Operations: Three Months Ended January 31, Location in Consolidated 2016 2015 Defined benefit plans Amortization of prior service benefit Selling, general and administrative expenses $ — $ (1 ) Amortization of actuarial loss Selling, general and administrative expenses 33 33 Total reclassifications for the period (net of tax of $0 for both periods) $ 33 $ 32 |
Earnings (Loss) Per Share Attri
Earnings (Loss) Per Share Attributable to Navistar International Corporation | 3 Months Ended |
Jan. 31, 2016 | |
Earnings Per Share [Abstract] | |
Loss Per Share Attributable to Navistar International Corporation | Loss Per Share Attributable to Navistar International Corporation The following table presents the information used in the calculation of our basic and diluted loss per share for continuing operations, discontinued operations, and net loss, all attributable to Navistar International Corporation: Three Months Ended January 31, (in millions, except per share data) 2016 2015 Numerator: Amounts attributable to Navistar International Corporation common stockholders: Loss from continuing operations, net of tax $ (33 ) $ (42 ) Income (loss) from discontinued operations, net of tax — — Net loss $ (33 ) $ (42 ) Denominator: Weighted average shares outstanding: Basic 81.7 81.5 Effect of dilutive securities — — Diluted 81.7 81.5 Loss per share attributable to Navistar International Corporation: Basic: Continuing operations $ (0.40 ) $ (0.52 ) Discontinued operations — — Net loss $ (0.40 ) $ (0.52 ) Diluted: Continuing operations $ (0.40 ) $ (0.52 ) Discontinued operations — — Net loss $ (0.40 ) $ (0.52 ) The conversion rate on our 4.50% senior subordinated convertible notes due 2018 ("2018 Convertible Notes") is 17.1233 shares of common stock per $1,000 principal amount of 2018 Convertible Notes, equivalent to an initial conversion price of approximately $58.40 per share of common stock. The 2018 Convertible Notes have an anti-dilutive effect when calculating diluted earnings per share when our average stock price is less than $58.40 . The conversion rate on our 4.75% senior subordinated convertible notes due April 2019 ("2019 Convertible Notes") is 18.4946 shares of common stock per $1,000 principal amount of 2019 Convertible Notes, equivalent to an initial conversion price of approximately $54.07 per share of common stock. The 2019 Convertible Notes have an anti-dilutive effect when calculating diluted earnings per share when our average stock price is less than $54.07 . The computation of diluted earnings per share also excludes outstanding options and other common stock equivalents in periods where inclusion of such potential common stock instruments would be anti-dilutive. For the three months ended January 31, 2016 and 2015 , no dilutive securities were included in the computation of diluted loss per share as their inclusion would have been anti-dilutive due to the net loss attributable to Navistar International Corporation. Additionally, certain securities have been excluded from the computation of earnings per share, as our average stock price was less than the respective exercise prices. For the three months ended January 31, 2016 and 2015 , the aggregate shares not included in the calculation of diluted loss per share were 15 million and 17 million , respectively. In both the three months ended January 31, 2016 and 2015 , the aggregate shares not included in the computation of earnings per share were primarily comprised of 3.4 million shares related to the 2018 Convertible Notes and 7.6 million shares related to the 2019 Convertible Notes. |
Condensed Consolidating Guarant
Condensed Consolidating Guarantor and Non-Guarantor Financial Information | 3 Months Ended |
Jan. 31, 2016 | |
Condensed Consolidating Guarantor and Non-Guarantor [Abstract] | |
Condensed Consolidating Guarantor and Non-guarantor Financial Information | Consolidating Guarantor and Non-guarantor Financial Information The following tables set forth condensed consolidating balance sheets as of January 31, 2016 and October 31, 2015 , and condensed consolidating statements of operations and comprehensive income (loss) for the three months ended January 31, 2016 and 2015 , and condensed consolidating statements of cash flows for the three months ended January 31, 2016 and 2015 . The information is presented as a result of Navistar, Inc.’s guarantee, exclusive of its subsidiaries, of NIC’s indebtedness under our 8.25% Senior Notes, due 2021, and obligations under our Loan Agreement related to the 6.5% Tax Exempt Bonds, due 2040. Navistar, Inc. is a direct wholly-owned subsidiary of NIC. None of NIC’s other subsidiaries guarantee any of these notes or bonds. The guarantees are "full and unconditional", as those terms are used in Regulation S-X Rule 3-10, except that the guarantees will be automatically released in certain customary circumstances, such as when the subsidiary is sold or all of the assets of the subsidiary are sold, the capital stock is sold, when the subsidiary is designated as an "unrestricted subsidiary" for purposes of the respective indentures for each of the 8.25% Senior Notes, due 2021, and the 6.5% Tax Exempt Bonds, due 2040, upon liquidation or dissolution of the subsidiary or upon legal or covenant defeasance, or satisfaction and discharge of the notes or bonds. Separate financial statements and other disclosures concerning Navistar, Inc. have not been presented because management believes that such information is not material to investors. Within this disclosure only, "NIC" includes the financial results of the parent company only, with all of its wholly-owned subsidiaries accounted for under the equity method. Likewise, "Navistar, Inc.," for purposes of this disclosure only, includes the consolidated financial results of its wholly-owned subsidiaries accounted for under the equity method and its operating units accounted for on a consolidated basis. "Non-Guarantor Subsidiaries" includes the combined financial results of all other non-guarantor subsidiaries. "Eliminations and Other" includes all eliminations and reclassifications to reconcile to the consolidated financial statements. NIC files a consolidated U.S. federal income tax return that includes Navistar, Inc. and its U.S. subsidiaries. Navistar, Inc. has a tax allocation agreement ("Tax Agreement") with NIC which requires Navistar, Inc. to compute its separate federal income tax liability and remit any resulting tax liability to NIC. Tax benefits that may arise from net operating losses of Navistar, Inc. are not refunded to Navistar, Inc. but may be used to offset future required tax payments under the Tax Agreement. The effect of the Tax Agreement is to allow NIC, the parent company, rather than Navistar, Inc., to utilize current U.S. taxable losses of Navistar, Inc. and all other direct or indirect subsidiaries of NIC. Condensed Consolidating Statement of Operations for the Three Months Ended January 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Sales and revenues, net $ — $ 1,342 $ 1,200 $ (777 ) $ 1,765 Costs of products sold — 1,204 1,023 (761 ) 1,466 Restructuring charges — 1 2 — 3 Asset impairment charges — — 2 — 2 All other operating expenses (income) 19 213 108 (18 ) 322 Total costs and expenses 19 1,418 1,135 (779 ) 1,793 Equity in income (loss) of affiliates (14 ) (13 ) (1 ) 27 (1 ) Income (loss) before income taxes (33 ) (89 ) 64 29 (29 ) Income tax benefit (expense) — 13 (8 ) — 5 Earnings (loss) from continuing operations (33 ) (76 ) 56 29 (24 ) Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) (33 ) (76 ) 56 29 (24 ) Less: Net income attributable to non-controlling interests — — 9 — 9 Net income (loss) attributable to Navistar International Corporation $ (33 ) $ (76 ) $ 47 $ 29 $ (33 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended January 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net income (loss) $ (33 ) $ (76 ) $ 56 $ 29 $ (24 ) Other comprehensive income (loss): Foreign currency translation adjustment (33 ) — (33 ) 33 (33 ) Defined benefit plans (net of tax of $0 for all entities) 33 32 1 (33 ) 33 Total other comprehensive income (loss) — 32 (32 ) — — Comprehensive income (loss) (33 ) (44 ) 24 29 (24 ) Less: Comprehensive income attributable to non-controlling interests — — 9 — 9 Total comprehensive income (loss) attributable to Navistar International Corporation $ (33 ) $ (44 ) $ 15 $ 29 $ (33 ) Condensed Consolidating Balance Sheet as of January 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 257 $ 32 $ 290 $ — $ 579 Marketable securities 2 — 150 — 152 Restricted cash 16 6 96 — 118 Finance and other receivables, net 5 89 1,990 (103 ) 1,981 Inventories — 896 386 (13 ) 1,269 Investments in non-consolidated affiliates (7,692 ) 6,148 62 1,546 64 Property and equipment, net — 713 599 (8 ) 1,304 Goodwill — — 38 — 38 Deferred taxes, net — 16 141 — 157 Other 31 135 154 (2 ) 318 Total assets $ (7,381 ) $ 8,035 $ 3,906 $ 1,420 $ 5,980 Liabilities and stockholders’ equity (deficit) Debt $ 1,975 $ 1,160 $ 1,969 $ (5 ) $ 5,099 Postretirement benefits liabilities — 2,880 179 — 3,059 Amounts due to (from) affiliates (7,856 ) 10,544 (2,862 ) 174 — Other liabilities 3,697 71 (687 ) (69 ) 3,012 Total liabilities (2,184 ) 14,655 (1,401 ) 100 11,170 Stockholders’ equity attributable to non-controlling interest — — 7 — 7 Stockholders’ equity (deficit) attributable to Navistar International Corporation (5,197 ) (6,620 ) 5,300 1,320 (5,197 ) Total liabilities and stockholders’ equity (deficit) $ (7,381 ) $ 8,035 $ 3,906 $ 1,420 $ 5,980 Condensed Consolidating Statement of Cash Flows for the Three Months Ended January 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net cash provided by (used in) operations $ (309 ) $ (332 ) $ 226 $ 313 $ (102 ) Cash flows from investment activities Net change in restricted cash and cash equivalents — 1 (2 ) — (1 ) Net sales of marketable securities 110 — (103 ) — 7 Capital expenditures and purchase of equipment leased to others — (17 ) (61 ) — (78 ) Other investing activities — — 13 — 13 Net cash provided by (used in) investing activities 110 (16 ) (153 ) — (59 ) Cash flows from financing activities Net borrowings (repayments) of debt — 292 (152 ) (313 ) (173 ) Other financing activities — 7 (9 ) — (2 ) Net cash provided by (used in) financing activities — 299 (161 ) (313 ) (175 ) Effect of exchange rate changes on cash and cash equivalents — — 3 — 3 Decrease in cash and cash equivalents (199 ) (49 ) (85 ) — (333 ) Cash and cash equivalents at beginning of the period 456 81 375 — 912 Cash and cash equivalents at end of the period $ 257 $ 32 $ 290 $ — $ 579 Condensed Consolidating Statement of Operations for the Three Months Ended January 31, 2015 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Sales and revenues, net $ — $ 1,610 $ 1,768 $ (957 ) $ 2,421 Costs of products sold — 1,409 1,570 (934 ) 2,045 Restructuring charges — 3 — — 3 Asset impairment charges — 7 — — 7 All other operating expenses (income) 23 264 125 (18 ) 394 Total costs and expenses 23 1,683 1,695 (952 ) 2,449 Equity in income (loss) of affiliates (19 ) 15 1 5 2 Income (loss) before income taxes (42 ) (58 ) 74 — (26 ) Income tax expense — (1 ) (6 ) — (7 ) Earnings (loss) from continuing operations (42 ) (59 ) 68 — (33 ) Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) (42 ) (59 ) 68 — (33 ) Less: Net income attributable to non-controlling interests — — 9 — 9 Net income (loss) attributable to Navistar International Corporation $ (42 ) $ (59 ) $ 59 $ — $ (42 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended January 31, 2015 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Net income (loss) $ (42 ) $ (59 ) $ 68 $ — $ (33 ) Other comprehensive income (loss): Foreign currency translation adjustment (59 ) — 59 (59 ) (59 ) Defined benefit plans (net of tax of $(1), $0, $(1), $1, and $(1), respectively) 32 31 1 (32 ) 32 Total other comprehensive income (loss) (27 ) 31 60 (91 ) (27 ) Comprehensive income (loss) (69 ) (28 ) 128 (91 ) (60 ) Less: Comprehensive income attributable to non-controlling interests — — 9 — 9 Total comprehensive income (loss) attributable to Navistar International Corporation $ (69 ) $ (28 ) $ 119 $ (91 ) $ (69 ) Condensed Consolidating Balance Sheet as of October 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 456 $ 81 $ 375 $ — $ 912 Marketable securities 112 — 47 — 159 Restricted cash 16 7 98 — 121 Finance and other receivables, net 1 99 2,440 (103 ) 2,437 Inventories — 809 342 (16 ) 1,135 Investments in non-consolidated affiliates (7,679 ) 6,204 64 1,477 66 Property and equipment, net — 737 616 (8 ) 1,345 Goodwill — — 38 — 38 Deferred taxes, net 7 20 137 — 164 Other 33 128 155 (1 ) 315 Total assets $ (7,054 ) $ 8,085 $ 4,312 $ 1,349 $ 6,692 Liabilities and stockholders’ equity (deficit) Debt $ 1,971 $ 1,180 $ 2,151 $ (4 ) $ 5,298 Postretirement benefits liabilities — 2,909 179 — 3,088 Amounts due to (from) affiliates (7,574 ) 10,280 (2,879 ) 173 — Other liabilities 3,716 207 (388 ) (69 ) 3,466 Total liabilities (1,887 ) 14,576 (937 ) 100 11,852 Stockholders’ equity attributable to non-controlling interest — — 7 — 7 Stockholders’ equity (deficit) attributable to Navistar International Corporation (5,167 ) (6,491 ) 5,242 1,249 (5,167 ) Total liabilities and stockholders’ equity (deficit) $ (7,054 ) $ 8,085 $ 4,312 $ 1,349 $ 6,692 Condensed Consolidating Statement of Cash Flows for the Three Months Ended January 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net cash provided by (used in) operations $ (194 ) $ (46 ) $ (112 ) $ 141 $ (211 ) Cash flows from investment activities Net change in restricted cash and cash equivalents — (3 ) 56 — 53 Net sales of marketable securities 278 — 152 — 430 Capital expenditures and purchase of equipment leased to others — (8 ) (19 ) — (27 ) Other investing activities — — 1 — 1 Net cash provided by (used in) investing activities 278 (11 ) 190 — 457 Cash flows from financing activities Net borrowings (repayments) of debt — 34 (80 ) (61 ) (107 ) Other financing activities — 10 68 (80 ) (2 ) Net cash provided by (used in) financing activities — 44 (12 ) (141 ) (109 ) Effect of exchange rate changes on cash and cash equivalents — — (14 ) — (14 ) Increase (decrease) in cash and cash equivalents 84 (13 ) 52 — 123 Cash and cash equivalents at beginning of the period 101 53 343 — 497 Cash and cash equivalents at end of the period $ 185 $ 40 $ 395 $ — $ 620 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranty Liability The following table presents accrued product warranty and deferred warranty revenue activity: Three Months Ended January 31, (in millions) 2016 2015 Balance at beginning of period $ 994 $ 1,197 Costs accrued and revenues deferred 26 50 Currency translation adjustment (1 ) (2 ) Adjustments to pre-existing warranties (A) 5 (57 ) Payments and revenues recognized (102 ) (105 ) Balance at end of period 922 1,083 Less: Current portion 421 497 Noncurrent accrued product warranty and deferred warranty revenue $ 501 $ 586 _________________________ (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 2015, we recorded a benefit for adjustments to pre-existing warranties of $57 million or $0.70 per diluted share. The impact of income taxes on the adjustments are not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. Extended Warranty Programs The amount of deferred revenue related to extended warranty programs was $383 million and $401 million at January 31, 2016 and October 31, 2015 , respectively. Revenue recognized under our extended warranty programs was $38 million and $37 million for the three months ended January 31, 2016 and 2015 , respectively. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements include the assets, liabilities, and results of operations of our Manufacturing operations, which include majority-owned dealers ("Dealcors"), and our Financial Services operations, including VIEs of which we are the primary beneficiary. The effects of transactions among consolidated entities have been eliminated to arrive at the consolidated amounts. Reclassifications were made to present the net change in secured revolving credit facilities as a separate line rather than within proceeds from issuance of securitized debt and principal payments on securitized debt in the Condensed Statements of Cash Flows. This reclassification did not have an impact on our Condensed Statements of Cash Flows . We prepared the accompanying unaudited consolidated financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by U.S. GAAP for comprehensive annual financial statements. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended October 31, 2015 , which should be read in conjunction with the disclosures therein. In our opinion, these interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial condition, results of operations, and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results. |
Variable Interest Entities | Variable Interest Entities We have an interest in several VIEs, primarily joint ventures, established to manufacture or distribute products and enhance our operational capabilities. We have determined for certain of our VIEs that we are the primary beneficiary because we have the power to direct the activities of the VIE that most significantly impact its economic performance and we have the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. Accordingly, we include in our consolidated financial statements the assets and liabilities and results of operations of those entities, even though we may not own a majority voting interest. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather they represent claims against the specific assets of these VIEs. Assets of these entities are not readily available to satisfy claims against our general assets. We are the primary beneficiary of our Blue Diamond Parts ("BDP") joint venture with Ford. As a result, our Consolidated Balance Sheets include assets of $40 million and $50 million and liabilities of $5 million and $7 million as of January 31, 2016 and October 31, 2015 , respectively, including $3 million and $7 million of cash and cash equivalents, at the respective dates, which are not readily available to satisfy claims against our general assets. The creditors of BDP do not have recourse to our general credit. Our Financial Services segment consolidates several VIEs. As a result, our Consolidated Balance Sheets include secured assets of $899 million and $1.1 billion as of January 31, 2016 and October 31, 2015 , respectively, and liabilities of $766 million and $844 million as of January 31, 2016 and October 31, 2015 , respectively, all of which are involved in securitizations that are treated as asset-backed debt. In addition, our Consolidated Balance Sheets include secured assets of $162 million and $235 million as of January 31, 2016 and October 31, 2015 , respectively, and corresponding liabilities of $107 million as of both January 31, 2016 and October 31, 2015 , which are related to other secured transactions that do not qualify for sale accounting treatment, and therefore, are treated as borrowings secured by operating and finance leases. Investors that hold securitization debt have a priority claim on the cash flows generated by their respective securitized assets to the extent that the related VIEs are required to make principal and interest payments. Investors in securitizations of these entities have no recourse to our general credit. We also have an interest in other VIEs, which we do not consolidate because we are not the primary beneficiary. Our financial support and maximum loss exposure relating to these non-consolidated VIEs are not material to our financial condition, results of operations, or cash flows. We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in income of non-consolidated affiliates includes our share of the net income of these entities. |
Equity Method Investments, Policy [Policy Text Block] | We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in income of non-consolidated affiliates includes our share of the net income of these entities. Product Warranty Liability The following table presents accrued product warranty and deferred warranty revenue activity: Three Months Ended January 31, (in millions) 2016 2015 Balance at beginning of period $ 994 $ 1,197 Costs accrued and revenues deferred 26 50 Currency translation adjustment (1 ) (2 ) Adjustments to pre-existing warranties (A) 5 (57 ) Payments and revenues recognized (102 ) (105 ) Balance at end of period 922 1,083 Less: Current portion 421 497 Noncurrent accrued product warranty and deferred warranty revenue $ 501 $ 586 _________________________ (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 2015, we recorded a benefit for adjustments to pre-existing warranties of $57 million or $0.70 per diluted share. The impact of income taxes on the adjustments are not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. Extended Warranty Programs The amount of deferred revenue related to extended warranty programs was $383 million and $401 million at January 31, 2016 and October 31, 2015 , respectively. Revenue recognized under our extended warranty programs was $38 million and $37 million for the three months ended January 31, 2016 and 2015 , respectively. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, pension and other postretirement benefits, allowance for doubtful accounts, income tax contingency accruals and valuation allowances, product warranty accruals, 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 our significant unionized workforce. As of January 31, 2016 , approximately 5,500 , or 77% , 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 future operations may be affected by changes in governmental procurement policies, budget considerations, changing national defense requirements, and political, regulatory and economic developments in the U.S. and certain foreign countries (primarily Canada, Mexico, and Brazil). Inventories Inventories are valued at the lower of cost or market. Our gross used truck inventory increased to approximately $440 million at January 31, 2016 from $390 million at October 31, 2015 , offset by reserves of $145 million and $110 million , respectively. During the quarter ended January 31, 2016 , additional reserves of $35 million were recorded primarily in Costs of products sold . In valuing our used truck inventory, we are required to make assumptions regarding the level of reserves required to value inventories at their net realizable value ("NRV"). Our judgments and estimates for used truck inventory are based on an analysis of current and forecasted sales prices, aging of and demand for used trucks, and the mix of sales through various market channels. The NRV is subject to change based on numerous conditions taking into account age, specifications, mileage, timing of sales, market mix and current and forecasted pricing. While calculations are made involving these factors, significant management judgment regarding expectations for future events is involved. Future events that could significantly influence our judgment and related estimates include general economic conditions in markets where our products are sold, actions of our competitors, and the ability to sell used trucks in a timely manner. Recently Adopted Accounting Standards In the three months ended January 31, 2016 , we have not adopted any new accounting guidance that has had a material impact on our consolidated financial statements. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, pension and other postretirement benefits, allowance for doubtful accounts, income tax contingency accruals and valuation allowances, product warranty accruals, asbestos and other product liability accruals, asset impairment charges, and litigation-related accruals. Actual results could differ from our estimates. |
Concentration Risk Disclosure [Text Block] | Concentration Risks Our financial condition, results of operations, and cash flows are subject to concentration risks related to our significant unionized workforce. As of January 31, 2016 , approximately 5,500 , or 77% , 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 future operations may be affected by changes in governmental procurement policies, budget considerations, changing national defense requirements, and political, regulatory and economic developments in the U.S. and certain foreign countries (primarily Canada, Mexico, and Brazil). |
Inventory, Policy [Policy Text Block] | Inventories Inventories are valued at the lower of cost or market. Our gross used truck inventory increased to approximately $440 million at January 31, 2016 from $390 million at October 31, 2015 , offset by reserves of $145 million and $110 million , respectively. During the quarter ended January 31, 2016 , additional reserves of $35 million were recorded primarily in Costs of products sold . In valuing our used truck inventory, we are required to make assumptions regarding the level of reserves required to value inventories at their net realizable value ("NRV"). Our judgments and estimates for used truck inventory are based on an analysis of current and forecasted sales prices, aging of and demand for used trucks, and the mix of sales through various market channels. The NRV is subject to change based on numerous conditions taking into account age, specifications, mileage, timing of sales, market mix and current and forecasted pricing. While calculations are made involving these factors, significant management judgment regarding expectations for future events is involved. Future events that could significantly influence our judgment and related estimates include general economic conditions in markets where our products are sold, actions of our competitors, and the ability to sell used trucks in a timely manner. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards In the three months ended January 31, 2016 , we have not adopted any new accounting guidance that has had a material impact on our consolidated financial statements. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers" (Topic 606), which supersedes the revenue recognition requirements in ASC 605, "Revenue Recognition." This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, which postponed the effective date of ASU No. 2014-09 to fiscal years beginning after December 15, 2017, with early adoption permitted on the original effective date of fiscal years beginning after December 15, 2016. Our effective date for this ASU is November 1, 2018. We are currently evaluating the impact of this ASU on our consolidated financial statements and method of adoption. In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). This ASU requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than twelve months. The accounting by lessors will remain largely unchanged. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Our effective date for this ASU is November 1, 2019. Adoption will require a modified retrospective transition. We are currently evaluating the method of adoption and the impact of this ASU on our consolidated financial statements. |
Stockholders' Deficit Stockhold
Stockholders' Deficit Stockholder's Rights Plan (Policies) | 3 Months Ended |
Jan. 31, 2016 | |
Shareholder's Rights Plan [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders' Deficit Accumulated Other Comprehensive Loss Changes in Accumulated other comprehensive loss , net of tax, included in the Consolidated Statements of Stockholders' Deficit , consisted of the following: (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2015 $ 1 $ (287 ) $ (2,315 ) $ (2,601 ) Other comprehensive loss before reclassifications — (33 ) — (33 ) Amounts reclassified out of accumulated other comprehensive loss — — 33 33 Net current-period other comprehensive income (loss) — (33 ) 33 — Balance as of January 31, 2016 $ 1 $ (320 ) $ (2,282 ) $ (2,601 ) (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2014 $ 1 $ (127 ) $ (2,137 ) $ (2,263 ) Other comprehensive loss before reclassifications — (59 ) — (59 ) Amounts reclassified out of accumulated other comprehensive loss — — 32 32 Net current-period other comprehensive income (loss) — (59 ) 32 (27 ) Balance as of January 31, 2015 $ 1 $ (186 ) $ (2,105 ) $ (2,290 ) The following table displays the amounts reclassified from Accumulated other comprehensive loss and the affected line item in the Consolidated Statements of Operations: Three Months Ended January 31, Location in Consolidated 2016 2015 Defined benefit plans Amortization of prior service benefit Selling, general and administrative expenses $ — $ (1 ) Amortization of actuarial loss Selling, general and administrative expenses 33 33 Total reclassifications for the period (net of tax of $0 for both periods) $ 33 $ 32 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | Product Warranty Liability The following table presents accrued product warranty and deferred warranty revenue activity: Three Months Ended January 31, (in millions) 2016 2015 Balance at beginning of period $ 994 $ 1,197 Costs accrued and revenues deferred 26 50 Currency translation adjustment (1 ) (2 ) Adjustments to pre-existing warranties (A) 5 (57 ) Payments and revenues recognized (102 ) (105 ) Balance at end of period 922 1,083 Less: Current portion 421 497 Noncurrent accrued product warranty and deferred warranty revenue $ 501 $ 586 _________________________ (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 2015, we recorded a benefit for adjustments to pre-existing warranties of $57 million or $0.70 per diluted share. The impact of income taxes on the adjustments are not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. |
Restructuring and Impairments (
Restructuring and Impairments (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following tables summarize the activity in the restructuring liability, which includes amounts related to discontinued operations and excludes pension and other postretirement contractual termination benefits: (in millions) Balance at October 31, 2015 Additions Payments Adjustments Balance at January 31, 2016 Employee termination charges $ 62 $ 4 $ (22 ) $ (2 ) $ 42 Lease vacancy 5 — (3 ) — 2 Other 1 — — — 1 Restructuring liability $ 68 $ 4 $ (25 ) $ (2 ) $ 45 (in millions) Balance at Additions Payments Adjustments Balance at January 31, 2015 Employee termination charges $ 8 $ 3 $ (3 ) $ (1 ) $ 7 Lease vacancy 11 — (2 ) — 9 Other 1 — — — 1 Restructuring liability $ 20 $ 3 $ (5 ) $ (1 ) $ 17 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ur Finance receivables, net consist of the following: (in millions) January 31, 2016 October 31, 2015 Retail portfolio $ 446 $ 554 Wholesale portfolio 1,206 1,467 Total finance receivables 1,652 2,021 Less: Allowance for doubtful accounts 23 26 Total finance receivables, net 1,629 1,995 Less: Current portion, net (A) 1,431 1,779 Noncurrent portion, net $ 198 $ 216 _________________________ (A) The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals. |
Finance Revenues Derived From Receivables [Table Text Block] | The following table presents the components of our Finance revenues : Three Months Ended January 31, (in millions) 2016 2015 Retail notes and finance leases revenue $ 10 $ 13 Wholesale notes interest 26 24 Operating lease revenue 16 15 Retail and wholesale accounts interest 7 8 Gross finance revenues 59 60 Less: Intercompany revenues (24 ) (24 ) Finance revenues $ 35 $ 36 |
Allowance for Doubtful Accoun29
Allowance for Doubtful Accounts (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Allowance for Doubtful Accounts [Abstract] | |
Allowance For Credit Losses On Receivables [Table Text Block] | The following tables present the activity related to our allowance for doubtful accounts for our retail portfolio segment, wholesale portfolio segment, and trade and other receivables: Three Months Ended January 31, 2016 (in millions) Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 22 $ 4 $ 22 $ 48 Provision for doubtful accounts, net of recoveries 2 — 3 5 Charge-off of accounts (A) (3 ) — (1 ) (4 ) Other (B) (2 ) — (1 ) (3 ) Allowance for doubtful accounts, at end of period $ 19 $ 4 $ 23 $ 46 Three Months Ended January 31, 2015 (in millions) Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 24 $ 3 $ 38 $ 65 Provision for doubtful accounts, net of recoveries 2 — — 2 Charge-off of accounts (A) (1 ) — (3 ) (4 ) Other (B) (2 ) — (3 ) (5 ) Allowance for doubtful accounts, at end of period $ 23 $ 3 $ 32 $ 58 _________________________ (A) We repossess sold and leased vehicles on defaulted finance receivables and leases, and place them into Inventories. Losses recognized at the time of repossession and charged against the allowance for doubtful accounts were less than $1 million in both the three months ended January 31, 2016 and 2015. (B) Amounts include impact from currency translation. |
Impaired Financing Receivables [Table Text Block] | The following table presents information regarding impaired finance receivables: January 31, 2016 October 31, 2015 (in millions) Retail Wholesale Total Retail Wholesale Total Impaired finance receivables with specific loss reserves $ 19 $ — $ 19 $ 21 $ — $ 21 Impaired finance receivables without specific loss reserves — — — — — — Specific loss reserves on impaired finance receivables 12 — 12 9 — 9 Finance receivables on non-accrual status 19 — 19 21 — 21 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | use the aging of our receivables as well as other inputs when assessing credit quality. The following table presents the aging analysis for finance receivables: January 31, 2016 October 31, 2015 (in millions) Retail Wholesale Total Retail Wholesale Total Current, and up to 30 days past due $ 382 $ 1,202 $ 1,584 $ 486 $ 1,461 $ 1,947 30-90 days past due 46 3 49 48 4 52 Over 90 days past due 18 1 19 20 2 22 Total finance receivables $ 446 $ 1,206 $ 1,652 $ 554 $ 1,467 $ 2,021 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | he following table presents the components of Inventories : (in millions) January 31, October 31, Finished products $ 891 $ 837 Work in process 69 34 Raw materials 309 264 Total inventories, net $ 1,269 $ 1,135 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | (in millions) January 31, 2016 October 31, 2015 Manufacturing operations Senior Secured Term Loan Credit Facility, as amended, due 2020, net of unamortized discount of $16 and $17, respectively $ 1,024 $ 1,023 8.25% Senior Notes, due 2021, net of unamortized discount of $17 and $18, respectively 1,183 1,182 4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $13 and $14, respectively 187 186 4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $30 and $32, respectively 381 379 Debt of majority-owned dealerships 20 28 Financing arrangements and capital lease obligations 46 49 Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040 225 225 Financed lease obligations 91 111 Other 15 15 Total Manufacturing operations debt 3,172 3,198 Less: Current portion 87 103 Net long-term Manufacturing operations debt $ 3,085 $ 3,095 (in millions) January 31, 2016 October 31, 2015 Financial Services operations Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2021 $ 784 $ 870 Bank revolvers, at fixed and variable rates, due dates from 2016 through 2020 981 1,063 Commercial paper, at variable rates, program matures in 2017 74 86 Borrowings secured by operating and finance leases, at various rates, due serially through 2020 88 81 Total Financial Services operations debt 1,927 2,100 Less: Current portion 1,405 1,007 Net long-term Financial Services operations debt $ 522 $ 1,093 |
(Tables)
(Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Ended January 31, Pension Benefits Health and Life (in millions) 2016 2015 2016 2015 Service cost for benefits earned during the period $ 2 $ 3 $ 1 $ 1 Interest on obligation 30 36 15 18 Amortization of cumulative loss 26 25 8 10 Amortization of prior service benefit — — — (1 ) Premiums on pension insurance 4 1 — — Expected return on assets (42 ) (49 ) (6 ) (7 ) Net periodic benefit expense $ 20 $ 16 $ 18 $ 21 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial instruments measured at fair value, recurring basis | The following table presents the financial instruments measured at fair value on a recurring basis: January 31, 2016 October 31, 2015 (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Marketable securities: U.S. Treasury bills $ 44 $ — $ — $ 44 $ 53 $ — $ — $ 53 Other 108 — — 108 106 — — 106 Derivative financial instruments: Foreign currency contracts (A) — 1 — 1 — 1 — 1 Total assets $ 152 $ 1 $ — $ 153 $ 159 $ 1 $ — $ 160 Liabilities Derivative financial instruments: Commodity forward contracts (B) $ — $ 5 $ — $ 5 $ — $ 2 $ — $ 2 Foreign currency contracts (B) — 1 — 1 — 2 — 2 Guarantees — — 10 10 — — 10 10 Total liabilities $ — $ 6 $ 10 $ 16 $ — $ 4 $ 10 $ 14 _________________________ (A) The asset value of foreign currency contracts is included in other current assets as of January 31, 2016 and October 31, 2015 in the accompanying Consolidated Balance Sheets . (B) The liability value of commodity forward contracts and foreign currency contracts is included in other current liabilities as of January 31, 2016 and October 31, 2015 in the accompanying Consolidated Balance Sheets. |
Financial instruments classified within Level 3 | The following table presents the changes for those financial instruments classified within Level 3 of the valuation hierarchy: Three Months Ended January 31, (in millions) 2016 2015 Guarantees, at November 1 $ (10 ) $ (8 ) Transfers out of Level 3 — — Issuances (1 ) — Settlements 1 — Guarantees, at January 31 $ (10 ) $ (8 ) Change in unrealized gains on assets (liabilities) still held $ — $ — |
Financial instruments measured at fair value, nonrecurring basis | The following table presents the financial instruments measured at fair value on a nonrecurring basis: (in millions) January 31, 2016 October 31, 2015 Level 2 financial instruments Carrying value of impaired finance receivables (A) $ 19 $ 21 Specific loss reserve (12 ) (9 ) Fair value $ 7 $ 12 _________________________ (A) Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors. |
Carrying values and estimated fair values of financial instruments | The following tables present the carrying values and estimated fair values of financial instruments: As of January 31, 2016 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 145 $ 145 $ 143 Notes receivable — — 2 2 2 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Facility, as Amended, due 2020 — — 910 910 1,024 8.25% Senior Notes, due 2021 750 — — 750 1,183 4.50% Senior Subordinated Convertible Notes, due 2018 (A) — — 95 95 187 4.75% Senior Subordinated Convertible Notes, due 2019 (A) — — 172 172 381 Debt of majority-owned dealerships — — 20 20 20 Financing arrangements — — 14 14 41 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 — 220 — 220 225 Financed lease obligations — — 91 91 91 Other — — 14 14 15 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2021 — — 780 780 784 Bank revolvers, at fixed and variable rates, due dates from 2016 through 2020 — — 969 969 981 Commercial paper, at variable rates, program matures in 2017 74 — — 74 74 Borrowings secured by operating and finance leases, at various rates, due serially through 2020 — — 88 88 88 As of October 31, 2015 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 170 $ 170 $ 166 Notes receivable — — 3 3 3 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Facility, as Amended, due 2020 — — 1,014 1,014 1,023 8.25% Senior Notes, due 2021 998 — — 998 1,182 4.50% Senior Subordinated Convertible Notes, due 2018 (A) — — 148 148 186 4.75% Senior Subordinated Convertible Notes, due 2019 (A) — — 289 289 379 Debt of majority-owned dealerships — — 28 28 28 Financing arrangements — — 17 17 43 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 — 233 — 233 225 Financed lease obligations — — 111 111 111 Other — — 17 17 15 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2018 — — 865 865 870 Bank revolvers, at fixed and variable rates, due dates from 2016 through 2020 — — 1,048 1,048 1,063 Commercial paper, at variable rates, program matures in 2017 86 — — 86 86 Borrowings secured by operating and finance leases, at various rates, due serially through 2020 — — 80 80 81 _________________________ (A) The carrying value represents the consolidated financial statement amount of the debt which excludes the allocation of the conversion feature to equity, while the fair value is based on internally developed valuation techniques such as discounted cash flow modeling for Level 3 convertible notes which include the equity feature. |
Financial Instruments and Com34
Financial Instruments and Commodity Contracts (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following table presents the location and amount of loss (gain) recognized in our Consolidated Statements of Operations related to derivatives: Three Months Ended January 31, (in millions) Location in Consolidated Statements of Operations 2016 2015 Cross currency swaps Other income, net $ — $ 2 Foreign currency contracts Other income, net (1 ) 1 Commodity forward contracts Costs of products sold 5 10 Total loss $ 4 $ 13 |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents the outstanding foreign currency contracts as of January 31, 2016 and October 31, 2015 : (in millions) Currency Notional Amount Maturity As of January 31, 2016 Forward exchange contract EUR € 24 February 2016 - October 2016 (A) Forward exchange contract MXN ₱ 889 February 2016 (B) As of October 31, 2015 Forward exchange contract EUR € 30 November 2015 - October 2016 (C) Forward exchange contract CAD C$ 25 November 2015 Forward exchange contract MXN ₱ 1,270 November 2015 _________________________ (A) Forward exchange contracts of €2 million settled in February 2016, €3 million matured in February 2016, €4 million mature in March 2016, €3 million mature in April 2016, and €2 million mature each month from May 2016 through October 2016. (B) Forward exchange contracts of ₱431 million matured in January 2016 but settled in February 2016 and ₱458 million matured and settled in February 2016. (C) Forward exchange contracts of €2 million settled in November 2015, €3 million matured in November 2015, €3 million matured in December 2015, €4 million matured in January 2016, and €2 million mature each month from February 2016 through October 2016. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of selected financial information, by segment | (in millions) Truck Parts Global Operations Financial (A) Corporate Total Three Months Ended January 31, 2016 External sales and revenues, net $ 1,081 $ 562 $ 84 $ 35 $ 3 $ 1,765 Intersegment sales and revenues 51 8 8 24 (91 ) — Total sales and revenues, net $ 1,132 $ 570 $ 92 $ 59 $ (88 ) $ 1,765 Income (loss) from continuing operations attributable to NIC, net of tax $ (51 ) $ 150 $ (13 ) $ 26 $ (145 ) $ (33 ) Income tax benefit — — — — 5 5 Segment profit (loss) $ (51 ) $ 150 $ (13 ) $ 26 $ (150 ) $ (38 ) Depreciation and amortization $ 34 $ 3 $ 5 $ 12 $ 4 $ 58 Interest expense — — — 19 62 81 Equity in income (loss) of non-consolidated affiliates 1 1 (3 ) — — (1 ) Capital expenditures (B) 25 1 1 — 2 29 (in millions) Truck Parts Global Operations Financial (A) Corporate Total Three Months Ended January 31, 2015 External sales and revenues, net $ 1,631 $ 614 $ 138 $ 36 $ 2 $ 2,421 Intersegment sales and revenues 74 12 14 24 (124 ) — Total sales and revenues, net $ 1,705 $ 626 $ 152 $ 60 $ (122 ) $ 2,421 Income (loss) from continuing operations attributable to NIC, net of tax $ (18 ) $ 145 $ (15 ) $ 24 $ (178 ) $ (42 ) Income tax expense — — — — (7 ) (7 ) Segment profit (loss) $ (18 ) $ 145 $ (15 ) $ 24 $ (171 ) $ (35 ) Depreciation and amortization $ 52 $ 3 $ 7 $ 12 $ 5 $ 79 Interest expense — — — 20 57 77 Equity in income (loss) of non-consolidated affiliates 2 1 (1 ) — — 2 Capital expenditures (B) 14 — 2 — 1 17 (in millions) Truck Parts Global Operations Financial Services Corporate and Eliminations Total Segment assets, as of: January 31, 2016 $ 1,934 $ 623 $ 349 $ 2,094 $ 980 $ 5,980 October 31, 2015 1,876 641 409 2,455 1,311 6,692 _________________________ (A) Total sales and revenues in the Financial Services segment include interest revenues of $42 million and $45 million for the three months ended January 31, 2016 and 2015 , respectively. (B) Exclusive of purchases of equipment leased to others. |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2014 $ 1 $ (127 ) $ (2,137 ) $ (2,263 ) Other comprehensive loss before reclassifications — (59 ) — (59 ) Amounts reclassified out of accumulated other comprehensive loss — — 32 32 Net current-period other comprehensive income (loss) — (59 ) 32 (27 ) Balance as of January 31, 2015 $ 1 $ (186 ) $ (2,105 ) $ (2,290 ) Accumulated other comprehensive loss , net of tax, included in the Consolidated Statements of Stockholders' Deficit , consisted of the following: (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2015 $ 1 $ (287 ) $ (2,315 ) $ (2,601 ) Other comprehensive loss before reclassifications — (33 ) — (33 ) Amounts reclassified out of accumulated other comprehensive loss — — 33 33 Net current-period other comprehensive income (loss) — (33 ) 33 — Balance as of January 31, 2016 $ 1 $ (320 ) $ (2,282 ) $ (2,601 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table displays the amounts reclassified from Accumulated other comprehensive loss and the affected line item in the Consolidated Statements of Operations: Three Months Ended January 31, Location in Consolidated 2016 2015 Defined benefit plans Amortization of prior service benefit Selling, general and administrative expenses $ — $ (1 ) Amortization of actuarial loss Selling, general and administrative expenses 33 33 Total reclassifications for the period (net of tax of $0 for both periods) $ 33 $ 32 |
Earnings (Loss) Per Share Att37
Earnings (Loss) Per Share Attributable to Navistar International Corporation (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation [Table Text Block] | Three Months Ended January 31, (in millions, except per share data) 2016 2015 Numerator: Amounts attributable to Navistar International Corporation common stockholders: Loss from continuing operations, net of tax $ (33 ) $ (42 ) Income (loss) from discontinued operations, net of tax — — Net loss $ (33 ) $ (42 ) Denominator: Weighted average shares outstanding: Basic 81.7 81.5 Effect of dilutive securities — — Diluted 81.7 81.5 Loss per share attributable to Navistar International Corporation: Basic: Continuing operations $ (0.40 ) $ (0.52 ) Discontinued operations — — Net loss $ (0.40 ) $ (0.52 ) Diluted: Continuing operations $ (0.40 ) $ (0.52 ) Discontinued operations — — Net loss $ (0.40 ) $ (0.52 ) |
Condensed Consolidating Guara38
Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Condensed Consolidating Guarantor and Non-Guarantor [Abstract] | |
Schedule of Condensed Income Statement [Table Text Block] | Condensed Consolidating Statement of Operations for the Three Months Ended January 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Sales and revenues, net $ — $ 1,342 $ 1,200 $ (777 ) $ 1,765 Costs of products sold — 1,204 1,023 (761 ) 1,466 Restructuring charges — 1 2 — 3 Asset impairment charges — — 2 — 2 All other operating expenses (income) 19 213 108 (18 ) 322 Total costs and expenses 19 1,418 1,135 (779 ) 1,793 Equity in income (loss) of affiliates (14 ) (13 ) (1 ) 27 (1 ) Income (loss) before income taxes (33 ) (89 ) 64 29 (29 ) Income tax benefit (expense) — 13 (8 ) — 5 Earnings (loss) from continuing operations (33 ) (76 ) 56 29 (24 ) Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) (33 ) (76 ) 56 29 (24 ) Less: Net income attributable to non-controlling interests — — 9 — 9 Net income (loss) attributable to Navistar International Corporation $ (33 ) $ (76 ) $ 47 $ 29 $ (33 ) Condensed Consolidating Statement of Operations for the Three Months Ended January 31, 2015 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Sales and revenues, net $ — $ 1,610 $ 1,768 $ (957 ) $ 2,421 Costs of products sold — 1,409 1,570 (934 ) 2,045 Restructuring charges — 3 — — 3 Asset impairment charges — 7 — — 7 All other operating expenses (income) 23 264 125 (18 ) 394 Total costs and expenses 23 1,683 1,695 (952 ) 2,449 Equity in income (loss) of affiliates (19 ) 15 1 5 2 Income (loss) before income taxes (42 ) (58 ) 74 — (26 ) Income tax expense — (1 ) (6 ) — (7 ) Earnings (loss) from continuing operations (42 ) (59 ) 68 — (33 ) Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) (42 ) (59 ) 68 — (33 ) Less: Net income attributable to non-controlling interests — — 9 — 9 Net income (loss) attributable to Navistar International Corporation $ (42 ) $ (59 ) $ 59 $ — $ (42 ) |
Schedule of Condensed Statement of Comprehensive Income [Table Text Block] | Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended January 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net income (loss) $ (33 ) $ (76 ) $ 56 $ 29 $ (24 ) Other comprehensive income (loss): Foreign currency translation adjustment (33 ) — (33 ) 33 (33 ) Defined benefit plans (net of tax of $0 for all entities) 33 32 1 (33 ) 33 Total other comprehensive income (loss) — 32 (32 ) — — Comprehensive income (loss) (33 ) (44 ) 24 29 (24 ) Less: Comprehensive income attributable to non-controlling interests — — 9 — 9 Total comprehensive income (loss) attributable to Navistar International Corporation $ (33 ) $ (44 ) $ 15 $ 29 $ (33 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended January 31, 2015 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Net income (loss) $ (42 ) $ (59 ) $ 68 $ — $ (33 ) Other comprehensive income (loss): Foreign currency translation adjustment (59 ) — 59 (59 ) (59 ) Defined benefit plans (net of tax of $(1), $0, $(1), $1, and $(1), respectively) 32 31 1 (32 ) 32 Total other comprehensive income (loss) (27 ) 31 60 (91 ) (27 ) Comprehensive income (loss) (69 ) (28 ) 128 (91 ) (60 ) Less: Comprehensive income attributable to non-controlling interests — — 9 — 9 Total comprehensive income (loss) attributable to Navistar International Corporation $ (69 ) $ (28 ) $ 119 $ (91 ) $ (69 ) |
Schedule of Condensed Balance Sheet [Table Text Block] | Condensed Consolidating Balance Sheet as of January 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 257 $ 32 $ 290 $ — $ 579 Marketable securities 2 — 150 — 152 Restricted cash 16 6 96 — 118 Finance and other receivables, net 5 89 1,990 (103 ) 1,981 Inventories — 896 386 (13 ) 1,269 Investments in non-consolidated affiliates (7,692 ) 6,148 62 1,546 64 Property and equipment, net — 713 599 (8 ) 1,304 Goodwill — — 38 — 38 Deferred taxes, net — 16 141 — 157 Other 31 135 154 (2 ) 318 Total assets $ (7,381 ) $ 8,035 $ 3,906 $ 1,420 $ 5,980 Liabilities and stockholders’ equity (deficit) Debt $ 1,975 $ 1,160 $ 1,969 $ (5 ) $ 5,099 Postretirement benefits liabilities — 2,880 179 — 3,059 Amounts due to (from) affiliates (7,856 ) 10,544 (2,862 ) 174 — Other liabilities 3,697 71 (687 ) (69 ) 3,012 Total liabilities (2,184 ) 14,655 (1,401 ) 100 11,170 Stockholders’ equity attributable to non-controlling interest — — 7 — 7 Stockholders’ equity (deficit) attributable to Navistar International Corporation (5,197 ) (6,620 ) 5,300 1,320 (5,197 ) Total liabilities and stockholders’ equity (deficit) $ (7,381 ) $ 8,035 $ 3,906 $ 1,420 $ 5,980 Condensed Consolidating Balance Sheet as of October 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 456 $ 81 $ 375 $ — $ 912 Marketable securities 112 — 47 — 159 Restricted cash 16 7 98 — 121 Finance and other receivables, net 1 99 2,440 (103 ) 2,437 Inventories — 809 342 (16 ) 1,135 Investments in non-consolidated affiliates (7,679 ) 6,204 64 1,477 66 Property and equipment, net — 737 616 (8 ) 1,345 Goodwill — — 38 — 38 Deferred taxes, net 7 20 137 — 164 Other 33 128 155 (1 ) 315 Total assets $ (7,054 ) $ 8,085 $ 4,312 $ 1,349 $ 6,692 Liabilities and stockholders’ equity (deficit) Debt $ 1,971 $ 1,180 $ 2,151 $ (4 ) $ 5,298 Postretirement benefits liabilities — 2,909 179 — 3,088 Amounts due to (from) affiliates (7,574 ) 10,280 (2,879 ) 173 — Other liabilities 3,716 207 (388 ) (69 ) 3,466 Total liabilities (1,887 ) 14,576 (937 ) 100 11,852 Stockholders’ equity attributable to non-controlling interest — — 7 — 7 Stockholders’ equity (deficit) attributable to Navistar International Corporation (5,167 ) (6,491 ) 5,242 1,249 (5,167 ) Total liabilities and stockholders’ equity (deficit) $ (7,054 ) $ 8,085 $ 4,312 $ 1,349 $ 6,692 Condensed Consolidating Statement of Cash Flows for the Three Months Ended January 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net cash provided by (used in) operations $ (194 ) $ (46 ) $ (112 ) $ 141 $ (211 ) Cash flows from investment activities Net change in restricted cash and cash equivalents — (3 ) 56 — 53 Net sales of marketable securities 278 — 152 — 430 Capital expenditures and purchase of equipment leased to others — (8 ) (19 ) — (27 ) Other investing activities — — 1 — 1 Net cash provided by (used in) investing activities 278 (11 ) 190 — 457 Cash flows from financing activities Net borrowings (repayments) of debt — 34 (80 ) (61 ) (107 ) Other financing activities — 10 68 (80 ) (2 ) Net cash provided by (used in) financing activities — 44 (12 ) (141 ) (109 ) Effect of exchange rate changes on cash and cash equivalents — — (14 ) — (14 ) Increase (decrease) in cash and cash equivalents 84 (13 ) 52 — 123 Cash and cash equivalents at beginning of the period 101 53 343 — 497 Cash and cash equivalents at end of the period $ 185 $ 40 $ 395 $ — $ 620 |
Schedule of Condensed Cash Flow Statement [Table Text Block] | Condensed Consolidating Statement of Cash Flows for the Three Months Ended January 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net cash provided by (used in) operations $ (194 ) $ (46 ) $ (112 ) $ 141 $ (211 ) Cash flows from investment activities Net change in restricted cash and cash equivalents — (3 ) 56 — 53 Net sales of marketable securities 278 — 152 — 430 Capital expenditures and purchase of equipment leased to others — (8 ) (19 ) — (27 ) Other investing activities — — 1 — 1 Net cash provided by (used in) investing activities 278 (11 ) 190 — 457 Cash flows from financing activities Net borrowings (repayments) of debt — 34 (80 ) (61 ) (107 ) Other financing activities — 10 68 (80 ) (2 ) Net cash provided by (used in) financing activities — 44 (12 ) (141 ) (109 ) Effect of exchange rate changes on cash and cash equivalents — — (14 ) — (14 ) Increase (decrease) in cash and cash equivalents 84 (13 ) 52 — 123 Cash and cash equivalents at beginning of the period 101 53 343 — 497 Cash and cash equivalents at end of the period $ 185 $ 40 $ 395 $ — $ 620 Condensed Consolidating Statement of Cash Flows for the Three Months Ended January 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net cash provided by (used in) operations $ (309 ) $ (332 ) $ 226 $ 313 $ (102 ) Cash flows from investment activities Net change in restricted cash and cash equivalents — 1 (2 ) — (1 ) Net sales of marketable securities 110 — (103 ) — 7 Capital expenditures and purchase of equipment leased to others — (17 ) (61 ) — (78 ) Other investing activities — — 13 — 13 Net cash provided by (used in) investing activities 110 (16 ) (153 ) — (59 ) Cash flows from financing activities Net borrowings (repayments) of debt — 292 (152 ) (313 ) (173 ) Other financing activities — 7 (9 ) — (2 ) Net cash provided by (used in) financing activities — 299 (161 ) (313 ) (175 ) Effect of exchange rate changes on cash and cash equivalents — — 3 — 3 Decrease in cash and cash equivalents (199 ) (49 ) (85 ) — (333 ) Cash and cash equivalents at beginning of the period 456 81 375 — 912 Cash and cash equivalents at end of the period $ 257 $ 32 $ 290 $ — $ 579 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | ||
Jan. 31, 2016USD ($)employeessegments | Jan. 31, 2015USD ($) | Oct. 31, 2015USD ($) | |
Accounting Policies [Line Items] | |||
Costs of products sold | $ 1,466 | $ 2,045 | |
Net loss attributable to Navistar International Corporation | $ (33) | (42) | |
Number Of Segments | segments | 4 | ||
Goodwill | $ 38 | $ 38 | |
Sales of manufactured products, net | 1,730 | 2,385 | |
Depreciation, Depletion and Amortization | 58 | 79 | |
Interest expense | 81 | 77 | |
Capital expenditures | 29 | 17 | |
Proceeds from financed lease obligations | 7 | 10 | |
Product Warranty Accrual, Preexisting, Increase (Decrease) | $ 5 | (57) | |
Unionized Employees Concentration Risk [Member] | Number Of Employees Hourly Workers [Member] | |||
Accounting Policies [Line Items] | |||
Concentration Risk Number Of Employees | employees | 5,500 | ||
concentration risk number of employees percentage | 77.00% | ||
Unionized Employees Concentration Risk [Member] | Number of Employees Salaried Workers [Member] | |||
Accounting Policies [Line Items] | |||
Concentration Risk Number Of Employees | employees | 300 | ||
concentration risk number of employees percentage | 5.00% | ||
Product Warranty Accrual [Member] | |||
Accounting Policies [Line Items] | |||
Product Warranty Accrual, Preexisting, Increase (Decrease) | (57) | ||
North America Truck [Member] | |||
Accounting Policies [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 7 | ||
Depreciation, Depletion and Amortization | $ 34 | 52 | |
Interest expense | 0 | 0 | |
Capital expenditures | 25 | 14 | |
Extended Warranty Programs [Member] | |||
Accounting Policies [Line Items] | |||
Deferred Revenue, Revenue Recognized | 38 | $ 37 | |
Deferred Revenue | $ 383 | $ 401 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Variable Interest Entities (Details) - USD ($) $ in Millions | Jan. 31, 2016 | Oct. 31, 2015 | Jan. 31, 2015 | Oct. 31, 2014 |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 579 | $ 912 | $ 620 | $ 497 |
Variable Interest Entity Primary Beneficiary, Blue Diamond Parts [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 40 | 50 | ||
Cash and cash equivalents | 3 | 7 | ||
Liabilities | 5 | 7 | ||
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 | 899 | 1,100 | ||
Liabilities | 766 | 844 | ||
Transaction Does Not Qualify for Sale Accounting [Member] | Financial Services Operations [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 162 | 235 | ||
Liabilities | $ 107 | $ 107 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Product Warranty Liability (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Oct. 31, 2015 | Oct. 31, 2014 | |
Product Liability Contingency [Line Items] | ||||
Product Warranty Accrual | $ 922 | $ 1,083 | $ 994 | $ 1,197 |
Product Warranty Accrual, Warranties Issued | 26 | 50 | ||
Product Warranty Accrual, Currency Translation, Increase (Decrease) | (1) | (2) | ||
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward: | ||||
Adjustments to pre-existing warranties(A)(B) | 5 | (57) | ||
Extended Warranty Program: | ||||
Product Warranty Accrual, Payments | (102) | (105) | ||
Product Warranty Accrual, Current | 421 | 497 | ||
Product Warranty Accrual, Noncurrent | 501 | 586 | ||
Extended Warranty Programs [Member] | ||||
Extended Warranty Program: | ||||
Deferred Revenue, Revenue Recognized | 38 | 37 | ||
Deferred Revenue | $ 383 | $ 401 | ||
Product Warranty Accrual [Member] | ||||
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward: | ||||
Adjustments to pre-existing warranties(A)(B) | $ (57) | |||
Product Warranty Accrual, Preexisting Increase Decrease Per Share, Net of Tax | $ (0.70) |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Oct. 31, 2015 | |
Inventory [Line Items] | ||
Gross truck bed inventory | $ 440 | $ 390 |
Inventory reserves | 145 | $ 110 |
Cost of Goods [Member] | Inventory Valuation Reserve [Member] | ||
Inventory [Line Items] | ||
Additional reserves added during period | $ 35 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Oct. 31, 2015 | |
Statements of Operations for Discontinued Operations [Line Items] | |||
Asset impairment charges | $ 2 | $ 7 | |
Impairment of Intangible Assets (Excluding Goodwill) | 2 | 7 | |
Goodwill | 38 | $ 38 | |
North America Truck [Member] | |||
Statements of Operations for Discontinued Operations [Line Items] | |||
Asset impairment charges | $ 2 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 7 |
Restructuring and Impairments -
Restructuring and Impairments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Jul. 31, 2014 | Oct. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 3 | $ 3 | ||
Asset impairment charges | 2 | 7 | ||
Goodwill | 38 | $ 38 | ||
North America Truck [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment charges | 2 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 7 | |||
Minimum [Member] | Chatham [Member] | North America Truck [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | 0 | |||
Maximum [Member] | Chatham [Member] | North America Truck [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | $ 60 | |||
Maximum [Member] | Indianapolis and Waukesha Foundry [Member] | North America Truck [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Cost Incurred to Date | $ 13 | |||
Other Postretirement Benefit Plan [Member] | Chatham [Member] | Facility Closing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Postemployment Benefits, Period Expense | $ 14 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 0 |
Restructuring and Impairments46
Restructuring and Impairments - Restructuring Reserve by Type (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Oct. 31, 2015 | Oct. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 3 | $ 3 | ||
Restructuring Reserve | 45 | 17 | $ 68 | $ 20 |
Restructuring and Related Cost, Incurred Cost | 4 | 3 | ||
Payments for Restructuring | 25 | 5 | ||
Restructuring Reserve, Accrual Adjustment | (2) | (1) | ||
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | 42 | 7 | 62 | 8 |
Restructuring and Related Cost, Incurred Cost | 4 | 3 | ||
Payments for Restructuring | 22 | 3 | ||
Restructuring Reserve, Accrual Adjustment | (2) | (1) | ||
Lease Vacancy [Member] [Domain] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | 2 | 9 | 5 | 11 |
Restructuring and Related Cost, Incurred Cost | 0 | 0 | ||
Payments for Restructuring | 3 | 2 | ||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | ||
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | 1 | 1 | $ 1 | $ 1 |
Restructuring and Related Cost, Incurred Cost | 0 | 0 | ||
Payments for Restructuring | 0 | 0 | ||
Restructuring Reserve, Accrual Adjustment | $ 0 | $ 0 |
Restructuring and Impairments47
Restructuring and Impairments - Schedule of Impairment Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment charges | $ 2 | $ 7 |
North America Truck [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 7 | |
Asset impairment charges | $ 2 |
Finance Receivables - Narrative
Finance Receivables - Narrative (Details) $ in Millions | Jan. 31, 2016USD ($)segments | Oct. 31, 2015USD ($) |
Schedule of Securitization [Line Items] | ||
Loans and Leases Receivable, Net Amount | $ 1,600 | $ 2,000 |
Number of Portfolio Segments for Finance Receivables | segments | 2 | |
Trac Funding Facility [Member] | ||
Schedule of Securitization [Line Items] | ||
Finance Receivables Retail Accounts Collateral For Borrowed Securities | $ 843 | 1,000 |
Cash Collateral for Borrowed Securities | 43 | 96 |
Financial Services Operations [Member] | ||
Schedule of Securitization [Line Items] | ||
Assets Net Of Intercompany Balances | $ 2,100 | $ 2,500 |
Finance Receivables - Finance R
Finance Receivables - Finance Receivables (Details) - USD ($) $ in Millions | Jan. 31, 2016 | Oct. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $ 1,652 | $ 2,021 | |
Less: Allowance for Doubtful accounts | 23 | 26 | |
Total finance receivables, net | 1,629 | 1,995 | |
Financing Receivable, Recorded Investment, Current | [1] | 1,431 | 1,779 |
Finance Receivables, Noncurrent | 198 | 216 | |
Loans and Leases Receivable, Gross | 1,652 | 2,021 | |
Retail Portfolio [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 446 | 554 | |
Wholesale Portfolio [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $ 1,206 | $ 1,467 | |
[1] | The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals. |
Finance Receivables - Schedule
Finance Receivables - Schedule of Finance Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Finance Revenues [Line Items] | ||
Retail notes and finance leases revenue | $ 10 | $ 13 |
Gross finance revenues | 59 | 60 |
Less: Intercompany revenues | (24) | (24) |
Finance revenues | 35 | 36 |
Financing Receivable [Member] | ||
Finance Revenues [Line Items] | ||
Operating lease revenue | 16 | 15 |
Wholesale Portfolio [Member] | Notes Receivable [Member] | ||
Finance Revenues [Line Items] | ||
Interest Income, Operating | 26 | 24 |
Retail And Wholesale Portfolios [Member] | ||
Finance Revenues [Line Items] | ||
Interest Income, Operating | $ 7 | $ 8 |
Allowance for Doubtful Accoun51
Allowance for Doubtful Accounts - Schedule of Allowance for Retail, Wholesale, Trade & Other (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for doubtful accounts at beginning of period | $ 48 | $ 65 |
Provision for doubtful accounts, net of recoveries | 5 | 2 |
Charge-off of accounts | (4) | (4) |
Allowance for doubtful accounts at end of period | 46 | 58 |
Loss on Contract Termination for Default | 1 | 1 |
Financing Receivable, Allowance for Credit Losses, Other | (3) | (5) |
Retail Portfolio [Member] | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for doubtful accounts at beginning of period | 22 | 24 |
Provision for doubtful accounts, net of recoveries | 2 | 2 |
Charge-off of accounts | (3) | (1) |
Allowance for doubtful accounts at end of period | 19 | 23 |
Financing Receivable, Allowance for Credit Losses, Other | (2) | (2) |
Impaired Financing Receivable, Average Recorded Investment | 20 | 19 |
Wholesale Portfolio [Member] | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for doubtful accounts at beginning of period | 4 | 3 |
Provision for doubtful accounts, net of recoveries | 0 | 0 |
Charge-off of accounts | 0 | 0 |
Allowance for doubtful accounts at end of period | 4 | 3 |
Financing Receivable, Allowance for Credit Losses, Other | 0 | 0 |
Trade and Other Receivables [Member] | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for doubtful accounts at beginning of period | 22 | 38 |
Provision for doubtful accounts, net of recoveries | 3 | 0 |
Charge-off of accounts | (1) | (3) |
Allowance for doubtful accounts at end of period | 23 | 32 |
Financing Receivable, Allowance for Credit Losses, Other | $ (1) | $ (3) |
Allowance for Doubtful Accoun52
Allowance for Doubtful Accounts - Schedule of Impaired Finance Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Oct. 31, 2015 | |
Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | $ 20 | $ 19 | |
Impaired finance receivables with specific loss reserves [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 19 | $ 21 | |
Impaired finance receivables with specific loss reserves [Member] | Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 19 | 21 | |
Impaired finance receivables with specific loss reserves [Member] | Wholesale Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | |
Impaired financing receivable without specific loss reserves [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | |
Impaired financing receivable without specific loss reserves [Member] | Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | |
Impaired financing receivable without specific loss reserves [Member] | Wholesale Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | |
Specific loss reserves on impaired finance receivables [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Specific loss reserves on impaired finance receivables | 12 | 9 | |
Specific loss reserves on impaired finance receivables [Member] | Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Specific loss reserves on impaired finance receivables | 12 | 9 | |
Specific loss reserves on impaired finance receivables [Member] | Wholesale Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Specific loss reserves on impaired finance receivables | 0 | 0 | |
Finance receivable non-accrual status [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Finance receivables on non-accrual status | 19 | 21 | |
Finance receivable non-accrual status [Member] | Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Finance receivables on non-accrual status | 19 | 21 | |
Finance receivable non-accrual status [Member] | Wholesale Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Finance receivables on non-accrual status | $ 0 | $ 0 |
Allowance for Doubtful Accoun53
Allowance for Doubtful Accounts - Schedule of Allowance Aging Analysis (Details) - USD ($) $ in Millions | Jan. 31, 2016 | Oct. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Current | $ 1,584 | $ 1,947 |
30-90 days past due | 49 | 52 |
Over 90 days past due | 19 | 22 |
Total finance receivables | 1,652 | 2,021 |
Retail Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Current | 382 | 486 |
30-90 days past due | 46 | 48 |
Over 90 days past due | 18 | 20 |
Total finance receivables | 446 | 554 |
Wholesale Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Current | 1,202 | 1,461 |
30-90 days past due | 3 | 4 |
Over 90 days past due | 1 | 2 |
Total finance receivables | $ 1,206 | $ 1,467 |
Allowance for Doubtful Accoun54
Allowance for Doubtful Accounts - Narrative (Details) $ in Millions | 3 Months Ended | |
Jan. 31, 2016USD ($)segmentsclass | Jan. 31, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loss on Contract Termination for Default | $ 1 | $ 1 |
Number of Portfolio Segments for Finance Receivables | segments | 2 | |
Classes Of Receivables In Each Portfolio | class | 1 | |
Retail Portfolio [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, Average Recorded Investment | $ 20 | $ 19 |
Inventories - Inventory (Detail
Inventories - Inventory (Details) - USD ($) $ in Millions | Jan. 31, 2016 | Oct. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 891 | $ 837 |
Work in process | 69 | 34 |
Raw materials | 309 | 264 |
Total inventories, net | $ 1,269 | $ 1,135 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Millions | Jan. 31, 2016 | Oct. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations | $ 3,607 | $ 4,188 |
Financial Services Operations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 1,927 | 2,100 |
Long-term Debt and Capital Lease Obligations, Current | 1,405 | 1,007 |
Long-term Debt and Capital Lease Obligations | 522 | 1,093 |
Financial Services Operations [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 784 | 870 |
Financial Services Operations [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 981 | 1,063 |
Financial Services Operations [Member] | Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 74 | 86 |
Financial Services Operations [Member] | Borrowings Secured By Operating and Finance Leases [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 88 | 81 |
Manufacturing Operations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 3,172 | 3,198 |
Long-term Debt and Capital Lease Obligations, Current | 87 | 103 |
Long-term Debt and Capital Lease Obligations | 3,085 | 3,095 |
Manufacturing Operations [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount | 16 | 17 |
Long-term Debt | 1,024 | 1,023 |
Manufacturing Operations [Member] | Notes Payable to Banks [Member] | Eight Point Two Five Percent Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 17 | 18 |
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | |
Long-term Debt | $ 1,183 | 1,182 |
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 13 | 14 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |
Long-term Debt | $ 187 | 186 |
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 30 | 32 |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |
Long-term Debt | $ 381 | 379 |
Manufacturing Operations [Member] | Debt Of Majority Owned Dealerships [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 20 | 28 |
Manufacturing Operations [Member] | Financing Arrangements and Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 46 | 49 |
Manufacturing Operations [Member] | Tax Exempt Bond [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | |
Long-term Debt | $ 225 | 225 |
Manufacturing Operations [Member] | Financed lease obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 91 | 111 |
Manufacturing Operations [Member] | Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 15 | $ 15 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | |||
Jan. 31, 2016USD ($)$ / shares | Jan. 31, 2015USD ($) | Feb. 29, 2016USD ($) | Oct. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||||
Payments of Debt Issuance Costs | $ 1,000,000 | $ 4,000,000 | ||
Proceeds from issuance of securitized debt | $ 50,000,000 | $ 250,000,000 | ||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Option Indexed to Issuer's Equity, Strike Price | $ / shares | $ 54.07 | |||
Debt Instrument, Convertible, Conversion Ratio | 18.4946 | |||
Financial Services Operations [Member] | VFN Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 375,000,000 | |||
Financial Services Operations [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 981,000,000 | $ 1,063,000,000 | ||
Manufacturing Operations [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount | 16,000,000 | 17,000,000 | ||
Long-term Debt | $ 1,024,000,000 | 1,023,000,000 | ||
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||
Debt Instrument, Unamortized Discount | $ 13,000,000 | 14,000,000 | ||
Long-term Debt | $ 187,000,000 | 186,000,000 | ||
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |||
Debt Instrument, Unamortized Discount | $ 30,000,000 | 32,000,000 | ||
Long-term Debt | 381,000,000 | 379,000,000 | ||
Manufacturing Operations [Member] | Debt Of Majority Owned Dealerships [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 20,000,000 | 28,000,000 | ||
Manufacturing Operations [Member] | Notes Payable, Other Payables [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 15,000,000 | 15,000,000 | ||
Manufacturing Operations [Member] | Tax Exempt Bond [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | |||
Long-term Debt | $ 225,000,000 | 225,000,000 | ||
Manufacturing Operations [Member] | Financed lease obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 91,000,000 | $ 111,000,000 | ||
Convertible Debt Securities [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Convertible, Conversion Ratio | 17.1233 | |||
Debt Instrument Convertible Conversion Ratio Basis | $ 1,000 | |||
Convertible Debt Securities [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Convertible Conversion Ratio Basis | 1,000 | |||
G E Operating Agreement [Member] | Manufacturing Operations [Member] | Financed lease obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 91,000,000 | |||
Subsequent Event [Member] | Financial Services Operations [Member] | VFN Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 500,000,000 |
Postretirement Benefits - Narra
Postretirement Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jul. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Restructuring Charges | $ 3 | $ 3 | |
Defined Contribution Plan, Cost Recognized | 7 | 9 | |
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 80 | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | 19 | $ 30 | |
Effect of change in estimate approach on interest cos | 9 | ||
Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Effect of change in estimate approach on interest cos | $ 4 | ||
Facility Closing [Member] | Chatham [Member] | Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Restructuring charges | $ 14 |
Postretirement Benefits - Summa
Postretirement Benefits - Summary of Changes in the Defined Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Pension Benefits | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Service cost | $ 2 | $ 3 |
Interest on obligations | 30 | 36 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Employer contributions | 19 | 30 |
Health and Life Insurance Benefits | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Service cost | 1 | 1 |
Interest on obligations | $ 15 | $ 18 |
Postretirement Benefits - Sched
Postretirement Benefits - Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Jan. 31, 2016 | Oct. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liability | $ (2,966) | $ (2,995) |
Net liability recognized | $ (3,059) | $ (3,088) |
Postretirement Benefits - Compo
Postretirement Benefits - Components of Postretirement Benefits Included in Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net postretirement benefits expense | $ 20 | $ 16 |
Health and Life Insurance Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net postretirement benefits expense | $ 18 | $ 21 |
Postretirement Benefits - Sch62
Postretirement Benefits - Schedule of Net Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2 | $ 3 |
Interest on obligations | 30 | 36 |
Amortization of cumulative loss | 26 | 25 |
Amortization of cumulative loss | 0 | 0 |
Premiums on pension insurance | 4 | 1 |
Expected return on assets | (42) | (49) |
Net postretirement benefits expense | 20 | 16 |
Health and Life Insurance Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest on obligations | 15 | 18 |
Amortization of cumulative loss | 8 | 10 |
Amortization of cumulative loss | 0 | (1) |
Premiums on pension insurance | 0 | 0 |
Expected return on assets | (6) | (7) |
Net postretirement benefits expense | $ 18 | $ 21 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | ||
Income Tax Expense (Benefit) | $ (5) | $ 7 |
Income Taxes Percent Likelihood Of Being Realized Upon Settlement | 50.00% | |
Unrecognized Tax Benefits | $ 41 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 1 | $ 1 |
Other Comprehensive Income (Loss) [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Income Tax Expense (Benefit) | (12) | |
Alternative Minimum Tax [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 13 |
Income Taxes - Loss From Contin
Income Taxes - Loss From Continuing Operations Before Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before income taxes | $ (29) | $ (26) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Benefit (Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income Tax Expense (Benefit) | $ 5 | $ (7) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax to Statutory Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income Tax Expense (Benefit) | $ 5 | $ (7) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jan. 31, 2016 | Oct. 31, 2015 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 152 | $ 159 |
Guarantees, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1 | 1 |
Guarantees, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 6 | 4 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Guarantees, Fair Value Disclosure | 10 | 10 |
Liabilities, Fair Value Disclosure | 10 | 10 |
US Treasury Bill Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 44 | 53 |
US Treasury Bill Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
US Treasury Bill Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Other Investment Companies [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 108 | 106 |
Other Investment Companies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Other Investment Companies [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Other Current Assets [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Other Current Assets [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 1 | 1 |
Derivative Liability, Fair Value, Gross Liability | 1 | 2 |
Other Current Assets [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Other Current Liabilities [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Other Current Liabilities [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 5 | 2 |
Other Current Liabilities [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 153 | 160 |
Guarantees, Fair Value Disclosure | 10 | 10 |
Liabilities, Fair Value Disclosure | 16 | 14 |
Estimate of Fair Value Measurement [Member] | US Treasury Bill Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 44 | 53 |
Estimate of Fair Value Measurement [Member] | Other Investment Companies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 108 | 106 |
Estimate of Fair Value Measurement [Member] | Other Current Assets [Member] | Foreign Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 1 | 1 |
Derivative Liability, Fair Value, Gross Liability | 1 | 2 |
Estimate of Fair Value Measurement [Member] | Other Current Liabilities [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 5 | $ 2 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Reconciliation (Details) - Guarantees [Member] - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Fair Value Assets And Liablities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset (Liability) Beginning Value | $ (10) | $ (8) |
Transfers out of Level 3 | 0 | 0 |
Issuances | (1) | 0 |
Settlements | 1 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset (Liability) Ending Value | (10) | (8) |
Change in unrealized gains on assets and liabilities still held | $ 0 | $ 0 |
Fair Value Measurements - Fin69
Fair Value Measurements - Financial Instruments Measured on Nonrecurring Basis (Details) - USD ($) $ in Millions | Jan. 31, 2016 | Oct. 31, 2015 | |
Impaired finance receivables with specific loss reserves [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | $ 19 | $ 21 | |
Impaired finance receivables with specific loss reserves [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | [1] | 19 | 21 |
Specific loss reserves on impaired finance receivables [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Specific loss reserve | (12) | (9) | |
Specific loss reserves on impaired finance receivables [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Specific loss reserve | (12) | (9) | |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Finance Receivables Fair Value Disclosure | $ 7 | $ 12 | |
[1] | Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors. |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Jan. 31, 2016 | Oct. 31, 2015 | ||
Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Retail Notes | $ 143 | $ 166 | ||
Notes Receivable | 2 | 3 | ||
Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Retail Notes | 145 | 170 | ||
Notes Receivable | 2 | 3 | ||
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Retail Notes | 0 | 0 | ||
Notes Receivable | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Retail Notes | 0 | 0 | ||
Notes Receivable | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Retail Notes | 145 | 170 | ||
Notes Receivable | 2 | 3 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 1,024 | 1,023 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 1,024 | 1,023 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 910 | 1,014 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 910 | 1,014 | ||
Line of Credit [Member] | Financial Services Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 981 | 1,063 | ||
Line of Credit [Member] | Financial Services Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 981 | 1,063 | ||
Line of Credit [Member] | Financial Services Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 969 | 1,048 | ||
Line of Credit [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Line of Credit [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Line of Credit [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 969 | 1,048 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 20 | 28 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 20 | 28 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 20 | 28 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 20 | 28 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 41 | 43 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 14 | 17 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 14 | 17 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 225 | 225 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 225 | 225 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 220 | 233 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 220 | 233 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 91 | 111 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 91 | 111 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 91 | 111 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 91 | 111 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 15 | 15 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 15 | 15 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 14 | 17 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 14 | 17 | ||
Secured Debt [Member] | Financial Services Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 784 | 870 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 784 | 870 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 780 | 865 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 780 | 865 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 74 | 86 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 74 | 86 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 74 | 86 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 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 | 86 | |||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | |||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | |||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | |||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | |||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 88 | 81 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 88 | 81 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 88 | 80 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 88 | 80 | ||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 1,183 | 1,182 | ||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 1,183 | 1,182 | ||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 750 | 998 | ||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 750 | 998 | ||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 187 | 186 | ||
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | [1] | 187 | 186 | |
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | [1] | 95 | 148 | |
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | [1] | 0 | 0 | |
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | [1] | 0 | 0 | |
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | [1] | 95 | 148 | |
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 381 | 379 | ||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | [1] | 381 | 379 | |
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | [1] | 172 | 289 | |
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | [1] | 0 | 0 | |
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | [1] | 0 | |
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | [1] | $ 172 | $ 289 | |
[1] | The carrying value represents the consolidated financial statement amount of the debt which excludes the allocation of the conversion feature to equity, while the fair value is based on internally developed valuation techniques such as discounted cash flow modeling for Level 3 convertible notes which include the equity feature. |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Oct. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | $ 2 | $ 7 | |
Goodwill | $ 38 | $ 38 | |
Cash and Cash Equivalents, Maturity Term | 90 days | ||
Marketable Securities, Maturity Term | 90 days | ||
North America Truck [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | $ 2 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 7 |
Financial Instruments and Com72
Financial Instruments and Commodity Contracts - Narrative (Details) - USD ($) | Jan. 31, 2016 | Oct. 31, 2015 | Jan. 31, 2015 |
Derivative [Line Items] | |||
Derivative, Amount of Hedged Item | $ 0 | $ 0 | |
Derivative, Collateral, Obligation to Return Cash | 3,499,652 | $ 1,000,000 | |
Exposure to Credit Risk | 2,000,000 | 1,000,000 | |
Interest Rate Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 28,000,000 | 0 | |
Diesel Fuel Forward Contracts [Member] | Commodity Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 26,000,000 | 24,000,000 | |
Steel Forward Contracts [Member] | Commodity Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 12,000,000 | 6,000,000 | |
Mexican Financial Services [Member] | Asset-backed Securities [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 133,000,000 | $ 108,000,000 |
Financial Instruments and Com73
Financial Instruments and Commodity Contracts - Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Oct. 31, 2015 | |
Derivative [Line Items] | |||
Exposure to Credit Risk | $ 2 | $ 1 | |
Derivative Instruments,Derivative, Gain (Loss) on Derivative, Net | (4) | $ (13) | |
Cross currency swaps | Other Income Expense Net [Member] | |||
Derivative [Line Items] | |||
Derivative Instruments,Derivative, Gain (Loss) on Derivative, Net | 0 | (2) | |
Foreign Exchange Contract [Member] | Other Income Expense Net [Member] | |||
Derivative [Line Items] | |||
Derivative Instruments,Derivative, Gain (Loss) on Derivative, Net | 1 | (1) | |
Commodity Contract [Member] | Cost of Sales [Member] | |||
Derivative [Line Items] | |||
Derivative Instruments,Derivative, Gain (Loss) on Derivative, Net | $ (5) | $ (10) |
Financial Instruments and Com74
Financial Instruments and Commodity Contracts - Foreign Currency Contracts (Details) - Foreign Exchange Contract [Member] € in Millions, MXN in Millions, CAD in Millions, $ in Millions | May. 31, 2016EUR (€) | Apr. 30, 2016EUR (€) | Mar. 31, 2016EUR (€) | Feb. 29, 2016EUR (€) | Feb. 29, 2016MXN | Jan. 31, 2016USD ($) | Jan. 31, 2016EUR (€) | Jan. 31, 2016MXN | Dec. 31, 2015EUR (€) | Nov. 30, 2015EUR (€) | Oct. 31, 2015EUR (€) | Oct. 31, 2015CAD | Jan. 31, 2015EUR (€) | |
Euro Member Countries, Euro | Settling in November 2015 [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount Expiring Monthly | € 2 | € 2 | ||||||||||||
Euro Member Countries, Euro | Maturing November 2015 to October 2016 [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | [1] | € 24 | € 30 | |||||||||||
Euro Member Countries, Euro | Maturing November 2015 [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount Expiring Monthly | 3 | |||||||||||||
Euro Member Countries, Euro | Maturing December 2015 [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount Expiring Monthly | € 3 | |||||||||||||
Euro Member Countries, Euro | Maturing January 2016 [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount Expiring Monthly | € 4 | |||||||||||||
Canada, Dollars | Maturing November 2015 [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | CAD | CAD 25 | |||||||||||||
Canada, Dollars | Maturing June 2015 [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | $ | $ 889 | |||||||||||||
Mexican Pesos | Settling in November 2015 [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount Expiring Monthly | MXN | MXN 431 | |||||||||||||
Mexican Pesos | Maturing November 2015 [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | CAD | CAD 1,270 | |||||||||||||
Subsequent Event [Member] | Euro Member Countries, Euro | Settling in November 2015 [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount Expiring Monthly | € 3 | |||||||||||||
Subsequent Event [Member] | Euro Member Countries, Euro | Maturing February 2016 through October 2016 [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount Expiring Monthly | € 2 | |||||||||||||
Subsequent Event [Member] | Mexican Pesos | Maturing February 2016 [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount Expiring Monthly | MXN | MXN 458 | |||||||||||||
Scenario, Forecast [Member] | Euro Member Countries, Euro | Settling in November 2015 [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount Expiring Monthly | € 2 | € 3 | € 4 | |||||||||||
[1] | Forward exchange contracts of €2 million settled in February 2016, €3 million matured in February 2016, €4 million mature in March 2016, €3 million mature in April 2016, and €2 million mature each month from May 2016 through October 2016. |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) BRL in Millions | Jul. 16, 2015USD ($) | Mar. 31, 2014BRL | Jan. 31, 2016USD ($)site | Jan. 31, 2016BRL | Jan. 31, 2014BRL | Jul. 31, 2010BRL | Jan. 31, 2016BRLsite | Oct. 31, 2015USD ($) | Jul. 31, 2015engine |
Loss Contingencies [Line Items] | |||||||||
Available stand-by letters of credit and surety bonds | $ 88,000,000 | ||||||||
Line of Credit Facility, Current Borrowing Capacity | 11,000,000 | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 8,000,000 | ||||||||
Purchase commitments | 15,000,000 | ||||||||
Long Term Purchase Commitment Cancellation Fees | $ 51,000,000 | ||||||||
Number of Contaminated Sites | site | 2 | 2 | |||||||
Number of Contaminated Sites in Sao Paulo, Brazil | site | 2 | 2 | |||||||
Accrual for environmental loss contingencies | $ 23,000,000 | ||||||||
Sao Paulo Groundwater Notice [Member] | Sanctions [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, value | BRL 3 | $ 1,000,000 | |||||||
International Chamber of Commerce [Member] | Penalties and Interest [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, value | BRL | BRL 16 | ||||||||
Navitrucks [Member] | Alleged Unfulfilled Promises and Injury to Reputation [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, value | BRL | BRL 32 | ||||||||
Damages from Product Defects [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Notice of Violation, number | engine | 7,749 | ||||||||
Civil penalties sought, per violation | $ 37,500 | ||||||||
G E Operating Agreement [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Operating Agreement Excess Loss Percentage | 10.00% | 10.00% | |||||||
Loss Sharing Agreement, Percentage | 9.50% | 9.50% | |||||||
Off Balance Sheet Finance Receivables | $ 1,400,000,000 | $ 1,400,000,000 | |||||||
Off Balance Sheet Finance Receivables Related Originations1 | 2,400,000,000 | 2,300,000,000 | |||||||
G E Operating Agreement [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Equipment leased to others | 84,000,000 | ||||||||
Manufacturing Operations [Member] | Financed lease obligations [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Long-term Debt | 91,000,000 | $ 111,000,000 | |||||||
Manufacturing Operations [Member] | G E Operating Agreement [Member] | Financed lease obligations [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Long-term Debt | 91,000,000 | ||||||||
Pending Litigation [Member] | Disputes [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, value | 50,000,000 | ||||||||
Pending Litigation [Member] | FATMA Notice, Trial [Member] | Penalties [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, value | 1,000,000 | BRL 2 | |||||||
IIAA Vs. Navitrucks [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Gain Contingency, Unrecorded Amount | 29,000,000 | ||||||||
Navitrucks Vs. IIAA [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | $ 29,000,000 | ||||||||
Brazil, Brazil Real | International Chamber of Commerce [Member] | Penalties and Interest [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, value | BRL | BRL 64 | BRL 64 | |||||||
Brazil, Brazil Real | Navitrucks [Member] | Alleged Unfulfilled Promises and Injury to Reputation [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought, value | BRL | BRL 128 | ||||||||
Brazil, Brazil Real | IIAA Vs. Navitrucks [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Gain Contingency, Unrecorded Amount | BRL | BRL 119 | ||||||||
Brazil, Brazil Real | Navitrucks Vs. IIAA [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | BRL | BRL 116 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Millions | 3 Months Ended | |
Jan. 31, 2016USD ($)segments | Jan. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||
Number Of Segments | segments | 4 | |
Intersegment sales and revenues | $ 0 | $ 0 |
Sales and revenues, net | 1,765 | 2,421 |
North America Truck [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment sales and revenues | 51 | 74 |
Sales and revenues, net | 1,132 | 1,705 |
North America Parts [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment sales and revenues | 8 | 12 |
Sales and revenues, net | 570 | 626 |
Corporate And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment sales and revenues | (91) | (124) |
Sales and revenues, net | $ (88) | $ (122) |
Segment Reporting - Summary of
Segment Reporting - Summary of Segment Assets (Details) - USD ($) $ in Millions | Jan. 31, 2016 | Oct. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Segment Assets | $ 5,980 | $ 6,692 |
North America Truck [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 1,934 | 1,876 |
North America Parts [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 623 | 641 |
Global Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 349 | 409 |
Financial Services Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 2,094 | 2,455 |
Corporate And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | $ 980 | $ 1,311 |
Segment Reporting - Summary o78
Segment Reporting - Summary of Segment Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
External sales and revenues, net | $ 1,765 | $ 2,421 |
Sales and revenues, net | 1,765 | 2,421 |
Loss from continuing operations, net of tax | (33) | (42) |
Income tax expense | 5 | (7) |
Interest expense | 81 | 77 |
Equity in income (loss) of non-consolidated affiliates | (1) | 2 |
Capital expenditures | 29 | 17 |
Intersegment sales and revenues | 0 | 0 |
Segment Profit Loss | (38) | (35) |
Depreciation, Depletion and Amortization | 58 | 79 |
North America Truck [Member] | ||
Segment Reporting Information [Line Items] | ||
External sales and revenues, net | 1,081 | 1,631 |
Sales and revenues, net | 1,132 | 1,705 |
Loss from continuing operations, net of tax | (51) | (18) |
Income tax expense | 0 | 0 |
Interest expense | 0 | 0 |
Equity in income (loss) of non-consolidated affiliates | 1 | 2 |
Capital expenditures | 25 | 14 |
Intersegment sales and revenues | 51 | 74 |
Segment Profit Loss | (51) | (18) |
Depreciation, Depletion and Amortization | 34 | 52 |
North America Parts [Member] | ||
Segment Reporting Information [Line Items] | ||
External sales and revenues, net | 562 | 614 |
Sales and revenues, net | 570 | 626 |
Loss from continuing operations, net of tax | 150 | 145 |
Income tax expense | 0 | 0 |
Interest expense | 0 | 0 |
Equity in income (loss) of non-consolidated affiliates | 1 | 1 |
Capital expenditures | 1 | 0 |
Intersegment sales and revenues | 8 | 12 |
Segment Profit Loss | 150 | 145 |
Depreciation, Depletion and Amortization | 3 | 3 |
Global Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
External sales and revenues, net | 84 | 138 |
Sales and revenues, net | 92 | 152 |
Loss from continuing operations, net of tax | (13) | (15) |
Income tax expense | 0 | 0 |
Interest expense | 0 | 0 |
Equity in income (loss) of non-consolidated affiliates | (3) | (1) |
Capital expenditures | 1 | 2 |
Intersegment sales and revenues | 8 | 14 |
Segment Profit Loss | (13) | (15) |
Depreciation, Depletion and Amortization | 5 | 7 |
Financial Services Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
External sales and revenues, net | 35 | 36 |
Sales and revenues, net | 59 | 60 |
Loss from continuing operations, net of tax | 26 | 24 |
Income tax expense | 0 | 0 |
Interest expense | 19 | 20 |
Equity in income (loss) of non-consolidated affiliates | 0 | 0 |
Capital expenditures | 0 | 0 |
Investment Income, Interest | 42 | 45 |
Intersegment sales and revenues | 24 | 24 |
Segment Profit Loss | 26 | 24 |
Depreciation, Depletion and Amortization | 12 | 12 |
Corporate And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
External sales and revenues, net | 3 | 2 |
Sales and revenues, net | (88) | (122) |
Loss from continuing operations, net of tax | (145) | (178) |
Income tax expense | 5 | (7) |
Interest expense | 62 | 57 |
Equity in income (loss) of non-consolidated affiliates | 0 | 0 |
Capital expenditures | 2 | 1 |
Intersegment sales and revenues | (91) | (124) |
Segment Profit Loss | (150) | (171) |
Depreciation, Depletion and Amortization | $ 4 | $ 5 |
Segment Reporting - Summary o79
Segment Reporting - Summary of Segment Long Lived Assets and Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales and revenues, net | $ 1,765 | $ 2,421 |
Financial Services Operations [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Investment Income, Interest | 42 | 45 |
Sales and revenues, net | $ 59 | $ 60 |
Stockholders' Deficit - Narrati
Stockholders' Deficit - Narrative (Details) - $ / shares shares in Millions | Jan. 31, 2016 | Oct. 31, 2015 |
Class of Stock [Line Items] | ||
Common stock, shares authorized | 220 | 220 |
Common stock, par value | $ 0.10 | $ 0.10 |
Stockholders' Deficit Accumulat
Stockholders' Deficit Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Loss, Beginning Balance | $ (2,601) | $ (2,263) |
Other comprehensive loss before reclassifications | (33) | (59) |
Amounts reclassified out of accumulated other comprehensive loss | 33 | 32 |
Net current-period other comprehensive income (loss) | 0 | (27) |
Accumulated Other Comprehensive Loss, Ending Balance | (2,601) | (2,290) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||
Total before tax | (24) | (33) |
Tax expense | 5 | (7) |
Net income (loss) attributable to Navistar International Corporation | (33) | (42) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Loss, Beginning Balance | 1 | 1 |
Other comprehensive loss before reclassifications | 0 | 0 |
Amounts reclassified out of accumulated other comprehensive loss | 0 | 0 |
Net current-period other comprehensive income (loss) | 0 | 0 |
Accumulated Other Comprehensive Loss, Ending Balance | 1 | 1 |
Accumulated Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Loss, Beginning Balance | (287) | (127) |
Other comprehensive loss before reclassifications | (33) | (59) |
Amounts reclassified out of accumulated other comprehensive loss | 0 | 0 |
Net current-period other comprehensive income (loss) | (33) | (59) |
Accumulated Other Comprehensive Loss, Ending Balance | (320) | (186) |
Pension Benefits | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Loss, Beginning Balance | (2,315) | (2,137) |
Other comprehensive loss before reclassifications | 0 | 0 |
Amounts reclassified out of accumulated other comprehensive loss | 33 | 32 |
Net current-period other comprehensive income (loss) | 33 | 32 |
Accumulated Other Comprehensive Loss, Ending Balance | (2,282) | (2,105) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Benefits | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||
Tax expense | 0 | 0 |
Net income (loss) attributable to Navistar International Corporation | 33 | 32 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Benefits | Selling, General and Administrative Expenses [Member] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||
Amortization of prior service benefit | 0 | (1) |
Amortization of actuarial loss | $ (33) | $ (33) |
Earnings (Loss) Per Share Att82
Earnings (Loss) Per Share Attributable to Navistar International Corporation - Basic & Diluted Loss per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 15 | 17 |
Loss from continuing operations, net of tax | $ (33) | $ (42) |
Income (loss) from discontinued operations, net of tax | 0 | 0 |
Net loss attributable to Navistar International Corporation | $ (33) | $ (42) |
Basic (in shares) | 81.7 | 81.5 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 |
Diluted (in shares) | 81.7 | 81.5 |
Basic: Loss from Continuing Operations (in dollars per share) | $ (0.40) | $ (0.52) |
Basic: Income (Loss) from Discontinued Operations (in dollars per share) | 0 | 0 |
Basic (in dollars per share) | (0.40) | (0.52) |
Diluted: Loss from Continuing Operations (in dollars per share) | (0.40) | (0.52) |
Diluted: Income (Loss) from Discontinued Operations (in dollars per share) | 0 | 0 |
Diluted (in dollars per share) | $ (0.40) | $ (0.52) |
Earnings (Loss) Per Share Att83
Earnings (Loss) Per Share Attributable to Navistar International Corporation - Narrative (Details) $ / shares in Units, shares in Millions | 3 Months Ended | |
Jan. 31, 2016USD ($)$ / sharesshares | Jan. 31, 2015shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 15 | 17 |
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares related to convertible notes | 3.4 | 3.4 |
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Debt Instrument, Convertible, Conversion Ratio | 17.1233 | |
Debt Instrument Convertible Conversion Ratio Basis | $ | $ 1,000 | |
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 58.40 | |
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Debt Instrument, Convertible, Conversion Ratio | 18.4946 | |
Option Indexed to Issuer's Equity, Strike Price | $ / shares | $ 54.07 | |
Shares related to convertible notes | 7.6 | 7.6 |
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Debt Instrument Convertible Conversion Ratio Basis | $ | $ 1,000 |
Condensed Consolidating Guara84
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Sales and revenues, net | $ 1,765 | $ 2,421 |
Costs of products sold | 1,466 | 2,045 |
Restructuring charges | 3 | 3 |
Asset impairment charges | 2 | 7 |
All other operating expenses (income) | 322 | 394 |
Total costs and expenses | 1,793 | 2,449 |
Equity in income (loss) of non-consolidated affiliates | (1) | 2 |
Income (loss) before income taxes | (29) | (26) |
Income tax expense | 5 | (7) |
Earnings (loss) from continuing operations | (24) | (33) |
Income (loss) from discontinued operations, net of tax | 0 | 0 |
Net income (loss) | (24) | (33) |
Less: Net income attributable to non-controlling interests | 9 | 9 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (33) | (69) |
Net income (loss) attributable to Navistar International Corporation | (33) | (42) |
Parent Company [Member] | ||
Sales and revenues, net | 0 | 0 |
Costs of products sold | 0 | 0 |
Restructuring charges | 0 | 0 |
Asset impairment charges | 0 | 0 |
All other operating expenses (income) | 19 | 23 |
Total costs and expenses | 19 | 23 |
Equity in income (loss) of non-consolidated affiliates | (14) | (19) |
Income (loss) before income taxes | (33) | (42) |
Income tax expense | 0 | 0 |
Earnings (loss) from continuing operations | (33) | (42) |
Income (loss) from discontinued operations, net of tax | 0 | 0 |
Net income (loss) | (33) | (42) |
Less: Net income attributable to non-controlling interests | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (33) | (69) |
Net income (loss) attributable to Navistar International Corporation | (33) | (42) |
Guarantor Subsidiaries [Member] | ||
Sales and revenues, net | 1,342 | 1,610 |
Costs of products sold | 1,204 | 1,409 |
Restructuring charges | 1 | 3 |
Asset impairment charges | 0 | 7 |
All other operating expenses (income) | 213 | 264 |
Total costs and expenses | 1,418 | 1,683 |
Equity in income (loss) of non-consolidated affiliates | (13) | 15 |
Income (loss) before income taxes | (89) | (58) |
Income tax expense | 13 | (1) |
Earnings (loss) from continuing operations | (76) | (59) |
Income (loss) from discontinued operations, net of tax | 0 | 0 |
Net income (loss) | (76) | (59) |
Less: Net income attributable to non-controlling interests | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (44) | (28) |
Net income (loss) attributable to Navistar International Corporation | (76) | (59) |
Non-Guarantor Subsidiaries [Member] | ||
Sales and revenues, net | 1,200 | 1,768 |
Costs of products sold | 1,023 | 1,570 |
Restructuring charges | 2 | 0 |
Asset impairment charges | 2 | 0 |
All other operating expenses (income) | 108 | 125 |
Total costs and expenses | 1,135 | 1,695 |
Equity in income (loss) of non-consolidated affiliates | (1) | 1 |
Income (loss) before income taxes | 64 | 74 |
Income tax expense | (8) | (6) |
Earnings (loss) from continuing operations | 56 | 68 |
Income (loss) from discontinued operations, net of tax | 0 | 0 |
Net income (loss) | 56 | 68 |
Less: Net income attributable to non-controlling interests | 9 | 9 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 15 | 119 |
Net income (loss) attributable to Navistar International Corporation | 47 | 59 |
Consolidation, Eliminations [Member] | ||
Sales and revenues, net | (777) | (957) |
Costs of products sold | (761) | (934) |
Restructuring charges | 0 | 0 |
Asset impairment charges | 0 | 0 |
All other operating expenses (income) | (18) | (18) |
Total costs and expenses | (779) | (952) |
Equity in income (loss) of non-consolidated affiliates | 27 | 5 |
Income (loss) before income taxes | 29 | 0 |
Income tax expense | 0 | 0 |
Earnings (loss) from continuing operations | 29 | 0 |
Income (loss) from discontinued operations, net of tax | 0 | 0 |
Net income (loss) | 29 | 0 |
Less: Net income attributable to non-controlling interests | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 29 | (91) |
Net income (loss) attributable to Navistar International Corporation | $ 29 | $ 0 |
Condensed Consolidating Guara85
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Comprehsive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Net income (loss) | $ (24) | $ (33) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Foreign currency translation adjustment | (33) | (59) |
Defined benefit plans (net of tax of $0, for all entities) | 33 | 32 |
Total other comprehensive income (loss) | 0 | (27) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (24) | (60) |
Less: Net income attributable to non-controlling interests | 9 | 9 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (33) | (69) |
Defined benefit plan, tax | 0 | (1) |
Parent Company [Member] | ||
Net income (loss) | (33) | (42) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Foreign currency translation adjustment | (33) | (59) |
Defined benefit plans (net of tax of $0, for all entities) | 33 | 32 |
Total other comprehensive income (loss) | 0 | (27) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (33) | (69) |
Less: Net income attributable to non-controlling interests | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (33) | (69) |
Defined benefit plan, tax | 0 | (1) |
Guarantor Subsidiaries [Member] | ||
Net income (loss) | (76) | (59) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Foreign currency translation adjustment | 0 | 0 |
Defined benefit plans (net of tax of $0, for all entities) | 32 | 31 |
Total other comprehensive income (loss) | 32 | 31 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (44) | (28) |
Less: Net income attributable to non-controlling interests | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (44) | (28) |
Defined benefit plan, tax | 0 | 0 |
Non-Guarantor Subsidiaries [Member] | ||
Net income (loss) | 56 | 68 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Foreign currency translation adjustment | (33) | 59 |
Defined benefit plans (net of tax of $0, for all entities) | 1 | 1 |
Total other comprehensive income (loss) | (32) | 60 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 24 | 128 |
Less: Net income attributable to non-controlling interests | 9 | 9 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 15 | 119 |
Defined benefit plan, tax | 0 | (1) |
Consolidation, Eliminations [Member] | ||
Net income (loss) | 29 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Foreign currency translation adjustment | 33 | (59) |
Defined benefit plans (net of tax of $0, for all entities) | (33) | (32) |
Total other comprehensive income (loss) | 0 | (91) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 29 | (91) |
Less: Net income attributable to non-controlling interests | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 29 | (91) |
Defined benefit plan, tax | $ 0 | $ 1 |
Condensed Consolidating Guara86
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Balance Sheet (Details) - USD ($) $ in Millions | Jan. 31, 2016 | Oct. 31, 2015 | Jan. 31, 2015 | Oct. 31, 2014 |
Cash and cash equivalents | $ 579 | $ 912 | $ 620 | $ 497 |
Marketable securities | 152 | 159 | ||
Restricted cash | 118 | 121 | ||
Finance and other receivables, net | 1,981 | 2,437 | ||
Inventories, net | 1,269 | 1,135 | ||
Investments in non-consolidated affiliates | 64 | 66 | ||
Property and equipment, net | 1,304 | 1,345 | ||
Goodwill | 38 | 38 | ||
Deferred taxes, net | 157 | 164 | ||
Other | 318 | 315 | ||
Total assets | 5,980 | 6,692 | ||
Debt | 5,099 | 5,298 | ||
Postretirement benefits liabilities | 3,059 | 3,088 | ||
Amounts due to (from) affiliates | 0 | 0 | ||
Other liabilities | 3,012 | 3,466 | ||
Total liabilities | 11,170 | 11,852 | ||
Stockholders’ equity attributable to non-controlling interests | 7 | 7 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (5,197) | (5,167) | ||
Total liabilities and stockholders’ deficit | 5,980 | 6,692 | ||
Parent Company [Member] | ||||
Cash and cash equivalents | 257 | 456 | ||
Marketable securities | 2 | 112 | ||
Restricted cash | 16 | 16 | ||
Finance and other receivables, net | 5 | 1 | ||
Inventories, net | 0 | 0 | ||
Investments in non-consolidated affiliates | (7,692) | (7,679) | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred taxes, net | 0 | 7 | ||
Other | 31 | 33 | ||
Total assets | (7,381) | (7,054) | ||
Debt | 1,975 | 1,971 | ||
Postretirement benefits liabilities | 0 | 0 | ||
Amounts due to (from) affiliates | (7,856) | (7,574) | ||
Other liabilities | 3,697 | 3,716 | ||
Total liabilities | (2,184) | (1,887) | ||
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (5,197) | (5,167) | ||
Total liabilities and stockholders’ deficit | (7,381) | (7,054) | ||
Guarantor Subsidiaries [Member] | ||||
Cash and cash equivalents | 32 | 81 | ||
Marketable securities | 0 | 0 | ||
Restricted cash | 6 | 7 | ||
Finance and other receivables, net | 89 | 99 | ||
Inventories, net | 896 | 809 | ||
Investments in non-consolidated affiliates | 6,148 | 6,204 | ||
Property and equipment, net | 713 | 737 | ||
Goodwill | 0 | 0 | ||
Deferred taxes, net | 16 | 20 | ||
Other | 135 | 128 | ||
Total assets | 8,035 | 8,085 | ||
Debt | 1,160 | 1,180 | ||
Postretirement benefits liabilities | 2,880 | 2,909 | ||
Amounts due to (from) affiliates | 10,544 | 10,280 | ||
Other liabilities | 71 | 207 | ||
Total liabilities | 14,655 | 14,576 | ||
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (6,620) | (6,491) | ||
Total liabilities and stockholders’ deficit | 8,035 | 8,085 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Cash and cash equivalents | 290 | 375 | ||
Marketable securities | 150 | 47 | ||
Restricted cash | 96 | 98 | ||
Finance and other receivables, net | 1,990 | 2,440 | ||
Inventories, net | 386 | 342 | ||
Investments in non-consolidated affiliates | 62 | 64 | ||
Property and equipment, net | 599 | 616 | ||
Goodwill | 38 | 38 | ||
Deferred taxes, net | 141 | 137 | ||
Other | 154 | 155 | ||
Total assets | 3,906 | 4,312 | ||
Debt | 1,969 | 2,151 | ||
Postretirement benefits liabilities | 179 | 179 | ||
Amounts due to (from) affiliates | (2,862) | (2,879) | ||
Other liabilities | (687) | (388) | ||
Total liabilities | (1,401) | (937) | ||
Stockholders’ equity attributable to non-controlling interests | 7 | 7 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | 5,300 | 5,242 | ||
Total liabilities and stockholders’ deficit | 3,906 | 4,312 | ||
Consolidation, Eliminations [Member] | ||||
Cash and cash equivalents | 0 | 0 | ||
Marketable securities | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Finance and other receivables, net | (103) | (103) | ||
Inventories, net | (13) | (16) | ||
Investments in non-consolidated affiliates | 1,546 | 1,477 | ||
Property and equipment, net | (8) | (8) | ||
Goodwill | 0 | 0 | ||
Deferred taxes, net | 0 | 0 | ||
Other | (2) | (1) | ||
Total assets | 1,420 | 1,349 | ||
Debt | (5) | (4) | ||
Postretirement benefits liabilities | 0 | 0 | ||
Amounts due to (from) affiliates | 174 | 173 | ||
Other liabilities | (69) | (69) | ||
Total liabilities | 100 | 100 | ||
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | 1,320 | 1,249 | ||
Total liabilities and stockholders’ deficit | $ 1,420 | $ 1,349 | ||
Manufacturing Operations [Member] | Notes Payable to Banks [Member] | Eight Point Two Five Percent Senior Notes [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% |
Condensed Consolidating Guara87
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Net cash provided by (used in) operations | $ (102) | $ (211) |
Net change in restricted cash and cash equivalents | (1) | 53 |
Net sales of marketable securities | 7 | 430 |
Capital expenditures and purchase of equipment leased to others | (78) | (27) |
Other investing activities | 13 | 1 |
Net cash provided by (used in) investing activities | (59) | 457 |
Net borrowings (repayments) of debt | (173) | (107) |
Other financing activities | (2) | (2) |
Net cash used in financing activities | (175) | (109) |
Effect of exchange rate changes on cash and cash equivalents | 3 | (14) |
Increase (decrease) in cash and cash equivalents | (333) | 123 |
Cash and cash equivalents at beginning of the period | 912 | 497 |
Cash and cash equivalents at end of the period | 579 | 620 |
Parent Company [Member] | ||
Net cash provided by (used in) operations | (309) | (194) |
Net change in restricted cash and cash equivalents | 0 | 0 |
Net sales of marketable securities | 110 | 278 |
Capital expenditures and purchase of equipment leased to others | 0 | 0 |
Other investing activities | 0 | 0 |
Net cash provided by (used in) investing activities | 110 | 278 |
Net borrowings (repayments) of debt | 0 | 0 |
Other financing activities | 0 | 0 |
Net cash used in financing activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | (199) | 84 |
Cash and cash equivalents at beginning of the period | 456 | 101 |
Cash and cash equivalents at end of the period | 257 | 185 |
Guarantor Subsidiaries [Member] | ||
Net cash provided by (used in) operations | (332) | (46) |
Net change in restricted cash and cash equivalents | 1 | (3) |
Net sales of marketable securities | 0 | 0 |
Capital expenditures and purchase of equipment leased to others | (17) | (8) |
Other investing activities | 0 | 0 |
Net cash provided by (used in) investing activities | (16) | (11) |
Net borrowings (repayments) of debt | 292 | 34 |
Other financing activities | 7 | 10 |
Net cash used in financing activities | 299 | 44 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | (49) | (13) |
Cash and cash equivalents at beginning of the period | 81 | 53 |
Cash and cash equivalents at end of the period | 32 | 40 |
Non-Guarantor Subsidiaries [Member] | ||
Net cash provided by (used in) operations | 226 | (112) |
Net change in restricted cash and cash equivalents | (2) | 56 |
Net sales of marketable securities | (103) | 152 |
Capital expenditures and purchase of equipment leased to others | (61) | (19) |
Other investing activities | 13 | 1 |
Net cash provided by (used in) investing activities | (153) | 190 |
Net borrowings (repayments) of debt | (152) | (80) |
Other financing activities | (9) | 68 |
Net cash used in financing activities | (161) | (12) |
Effect of exchange rate changes on cash and cash equivalents | 3 | (14) |
Increase (decrease) in cash and cash equivalents | (85) | 52 |
Cash and cash equivalents at beginning of the period | 375 | 343 |
Cash and cash equivalents at end of the period | 290 | 395 |
Consolidation, Eliminations [Member] | ||
Net cash provided by (used in) operations | 313 | 141 |
Net change in restricted cash and cash equivalents | 0 | 0 |
Net sales of marketable securities | 0 | 0 |
Capital expenditures and purchase of equipment leased to others | 0 | 0 |
Other investing activities | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Net borrowings (repayments) of debt | (313) | (61) |
Other financing activities | 0 | (80) |
Net cash used in financing activities | (313) | (141) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of the period | 0 | 0 |
Cash and cash equivalents at end of the period | $ 0 | $ 0 |