Document and Entity Information
Document and Entity Information Document | 3 Months Ended |
Jan. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jan. 31, 2019 |
Document Fiscal Year Focus | 2,019 |
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 Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 99,065,477 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Sales of Manufactured Products | $ 2,386 | $ 1,867 |
Finance revenues | 47 | 38 |
Sales and revenues | ||
Sales and revenues, net | 2,433 | 1,905 |
Costs and expenses | ||
Cost of Goods and Services Sold | 1,979 | 1,532 |
Restructuring charges | 0 | (3) |
Asset impairment charges | 2 | 2 |
Selling, general and administrative expenses | 186 | 191 |
Engineering and product development costs | 86 | 75 |
Interest expense | 85 | 79 |
Other expense, net | (97) | (80) |
Total costs and expenses | 2,435 | 1,956 |
Equity in income of non-consolidated affiliates | 0 | 0 |
Income (Loss) Attributable to Parent, before Tax | (2) | (51) |
Income Tax Expense (Benefit) | (19) | 15 |
Net income (loss) | 17 | (66) |
Less: Net income attributable to non-controlling interests | (6) | (7) |
Net income (loss) attributable to Navistar International Corporation | $ 11 | $ (73) |
Earnings (loss) per share attributable to Navistar International Corporation: | ||
Earnings Per Share, Basic | $ 0.11 | $ (0.74) |
Earnings Per Share, Diluted | $ 0.11 | $ (0.74) |
Weighted average shares outstanding: | ||
Basic (in shares) | 99.1 | 98.6 |
Diluted (in shares) | 99.4 | 98.6 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 17 | $ (66) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 14 | 22 |
Defined benefit plans, net of tax | 115 | 35 |
Total other comprehensive income | 129 | 57 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 146 | (9) |
Less: Net income attributable to non-controlling interests | 6 | 7 |
Total comprehensive income (loss) attributable to Navistar International Corporation | $ 140 | $ (16) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 31, 2019 | Oct. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 1,201 | $ 1,320 |
Restricted cash and cash equivalents | 83 | 62 |
Marketable securities | 41 | 101 |
Trade and other receivables, net | 429 | 456 |
Finance receivables, net | 1,818 | 1,898 |
Inventories, net | 1,211 | 1,110 |
Other current assets | 291 | 189 |
Total current assets | 5,074 | 5,136 |
Restricted cash | 65 | 63 |
Trade and other receivables, net | 31 | 49 |
Finance receivables, net | 272 | 260 |
Investments in non-consolidated affiliates | 32 | 50 |
Property and equipment (net of accumulated depreciation and amortization of $2,452 and $2,498, respectively) | 1,275 | 1,370 |
Goodwill | 38 | 38 |
Intangible assets (net of accumulated amortization of $141 and $140, respectively) | 29 | 30 |
Deferred taxes, net | 123 | 121 |
Other noncurrent assets | 98 | 113 |
Total assets | 7,037 | 7,230 |
Current liabilities | ||
Notes payable and current maturities of long-term debt | 942 | 946 |
Accounts payable | 1,484 | 1,606 |
Other current liabilities | 1,225 | 1,255 |
Total current liabilities | 3,651 | 3,807 |
Long-term debt | 4,552 | 4,521 |
Postretirement benefits liabilities | 1,961 | 2,097 |
Other noncurrent liabilities | 686 | 731 |
Total liabilities | 10,850 | 11,156 |
Stockholders’ deficit | ||
Series D convertible junior preference stock | 2 | 2 |
Common stock, $0.10 par value per share (103.1 shares issued and 220 shares authorized at both dates) | 10 | 10 |
Additional paid-in capital | 2,732 | 2,731 |
Accumulated deficit | (4,609) | (4,593) |
Accumulated other comprehensive loss | (1,791) | (1,920) |
Common stock held in treasury, at cost (4.1 and 4.2 shares, respectively) | (160) | (161) |
Total stockholders’ deficit attributable to Navistar International Corporation | (3,816) | (3,931) |
Stockholders’ equity attributable to non-controlling interests | 3 | 5 |
Total stockholders’ deficit | (3,813) | (3,926) |
Total liabilities and stockholders’ deficit | $ 7,037 | $ 7,230 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jan. 31, 2019 | Oct. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation and amortization | $ 2,452 | $ 2,498 |
Intangible assets, accumulated amortization | $ 141 | $ 140 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 220 | 220 |
Common stock, shares issued | 103.1 | 103.1 |
Common stock held in treasury, shares | 4.1 | 4.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Cash flows from operating activities | ||
Net income (loss) | $ 17 | $ (66) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 33 | 37 |
Depreciation of equipment leased to others | 15 | 18 |
Deferred taxes, including change in valuation allowance | (41) | 6 |
Asset impairment charges | 2 | 2 |
Gain (Loss) on Sales of Investments and Businesses, Net | 59 | 0 |
Amortization of debt issuance costs and discount | 6 | 8 |
Stock-based compensation | 0 | 9 |
Provision for doubtful accounts | 1 | 1 |
Equity in income of non-consolidated affiliates, net of dividends | 0 | 3 |
Write off of debt issuance cost and discount | 0 | 42 |
Other non-cash operating activities | (1) | (6) |
Changes in other assets and liabilities, exclusive of businesses disposed | (213) | (130) |
Net cash used in operating activities | (240) | (76) |
Cash flows from investing activities | ||
Payments to Acquire Marketable Securities | 0 | (61) |
Sales of marketable securities | 0 | 150 |
Maturities of marketable securities | 61 | 5 |
Capital expenditures | (44) | (30) |
Purchases of equipment leased to others | (42) | (52) |
Proceeds from sales of property and equipment | 3 | 3 |
Payments for (Proceeds from) Businesses and Interest in Affiliates | 95 | 0 |
Payments for (Proceeds from) Other Investing Activities | 1 | 0 |
Net Cash Provided by (Used in) Investing Activities | 74 | 15 |
Cash flows from financing activities | ||
Proceeds from issuance of secured debt | 0 | 16 |
Principal payments on secured debt | (22) | (16) |
Net change in secured revolving credit facilities | 48 | (150) |
Proceeds from issuance of non-securitized debt | 27 | 2,747 |
Principal payments on non-securitized debt | (61) | (2,521) |
Net change in notes and debt outstanding under revolving credit facilities | 83 | (38) |
Debt issuance costs | (1) | (33) |
Proceeds from finance lease obligations | 6 | 16 |
Proceeds from exercise of stock options | 1 | 4 |
Dividends paid by subsidiaries to non-controlling interest | (8) | (7) |
Other financing activities | 0 | (12) |
Net cash provided by (used in) financing activities | 73 | 6 |
Effect of exchange rate changes on cash and cash equivalents | (3) | 2 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (96) | (53) |
Cash and cash equivalents at beginning of the period | 1,445 | 840 |
Cash and cash equivalents at end of the period | $ 1,349 | $ 787 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) $ in Millions | Total | Convertible Junior Preference Stock Series D [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
Stockholders' Equity balance at beginning of period at Oct. 31, 2017 | $ (4,574) | $ 2 | $ 10 | $ 2,733 | $ (4,933) | $ (2,211) | $ (179) | $ 4 |
Net income (loss) | (66) | 0 | 0 | 0 | (73) | 0 | 0 | 7 |
Total other comprehensive income | 57 | 0 | 0 | 0 | 0 | 57 | 0 | 0 |
Stock-based compensation | 3 | 0 | 0 | 3 | 0 | 0 | 0 | 0 |
Stock ownership programs | 4 | 0 | 0 | (1) | 0 | 0 | 5 | 0 |
Dividends paid by subsidiaries to non-controlling interest | (7) | 0 | 0 | 0 | 0 | 0 | 0 | (7) |
Stockholders' Equity balance at end of period at Jan. 31, 2018 | (4,583) | 2 | 10 | 2,735 | (5,006) | (2,154) | (174) | 4 |
Stockholders' Equity balance at beginning of period at Oct. 31, 2018 | (3,926) | 2 | 10 | 2,731 | (4,593) | (1,920) | (161) | 5 |
Net income (loss) | 17 | 0 | 0 | 0 | 11 | 0 | 0 | 6 |
Total other comprehensive income | 129 | 0 | 0 | 0 | 0 | 129 | 0 | 0 |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (27) | 0 | 0 | 0 | (27) | 0 | 0 | 0 |
Stock-based compensation | 2 | 0 | 0 | 2 | 0 | 0 | 0 | 0 |
Stock ownership programs | 0 | 0 | 0 | (1) | 0 | 0 | 1 | 0 |
Dividends paid by subsidiaries to non-controlling interest | (8) | 0 | 0 | 0 | 0 | 0 | 0 | (8) |
Stockholders' Equity balance at end of period at Jan. 31, 2019 | $ (3,813) | $ 2 | $ 10 | $ 2,732 | $ (4,609) | $ (1,791) | $ (160) | $ 3 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Organization and Description of the Business Navistar International Corporation ("NIC"), incorporated under the laws of the State of Delaware in 1993, is a holding company whose principal operating entities are Navistar, Inc. ("NI") and Navistar Financial Corporation ("NFC"). References herein to the "Company," "we," "our," or "us" refer collectively to NIC and its consolidated subsidiaries, including certain variable interest entities ("VIEs") of which we are the primary beneficiary. We operate in four principal industry segments: Truck, Parts, Global Operations (collectively called "Manufacturing operations"), and Financial Services, which consists of NFC and our foreign finance operations (collectively called "Financial Services operations"). These segments are discussed in Note 12, Segment Reporting . Our fiscal year ends on October 31. As such, all references to 2019 , 2018 , and other years 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 and our Financial Services operations, including VIEs of which we are the primary beneficiary. The effects of transactions among consolidated entities have been eliminated to arrive at the consolidated amounts. We prepared the accompanying unaudited consolidated financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by U.S. GAAP for comprehensive annual financial statements. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended October 31, 2018 , which should be read in conjunction with the disclosures therein. In our opinion, these interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial condition, results of operations, and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results. Variable Interest Entities We have an interest in several VIEs, primarily joint ventures, established to manufacture or distribute products and enhance our operational capabilities. We have determined for certain of our VIEs that we are the primary beneficiary because we have the power to direct the activities of the VIE that most significantly impact its economic performance and we have the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. Accordingly, we include in our consolidated financial statements the assets and liabilities and results of operations of those entities, even though we may not own a majority voting interest. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather they represent claims against the specific assets of these VIEs. Assets of these entities are not readily available to satisfy claims against our general assets. |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Organization and Description of the Business Navistar International Corporation ("NIC"), incorporated under the laws of the State of Delaware in 1993, is a holding company whose principal operating entities are Navistar, Inc. ("NI") and Navistar Financial Corporation ("NFC"). References herein to the "Company," "we," "our," or "us" refer collectively to NIC and its consolidated subsidiaries, including certain variable interest entities ("VIEs") of which we are the primary beneficiary. We operate in four principal industry segments: Truck, Parts, Global Operations (collectively called "Manufacturing operations"), and Financial Services, which consists of NFC and our foreign finance operations (collectively called "Financial Services operations"). These segments are discussed in Note 12, Segment Reporting . Our fiscal year ends on October 31. As such, all references to 2019 , 2018 , and other years 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 and our Financial Services operations, including VIEs of which we are the primary beneficiary. The effects of transactions among consolidated entities have been eliminated to arrive at the consolidated amounts. We prepared the accompanying unaudited consolidated financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by U.S. GAAP for comprehensive annual financial statements. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended October 31, 2018 , which should be read in conjunction with the disclosures therein. In our opinion, these interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial condition, results of operations, and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results. Variable Interest Entities We have an interest in several VIEs, primarily joint ventures, established to manufacture or distribute products and enhance our operational capabilities. We have determined for certain of our VIEs that we are the primary beneficiary because we have the power to direct the activities of the VIE that most significantly impact its economic performance and we have the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. Accordingly, we include in our consolidated financial statements the assets and liabilities and results of operations of those entities, even though we may not own a majority voting interest. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather they represent claims against the specific assets of these VIEs. Assets of these entities are not readily available to satisfy claims against our general assets. We are the primary beneficiary of our Blue Diamond Parts, LLC ("BDP") joint venture with Ford Motor Company ("Ford"). As a result, our Consolidated Balance Sheets include assets of $26 million and $39 million and liabilities of $3 million and $4 million as of January 31, 2019 and October 31, 2018 , respectively, including $4 million of cash and cash equivalents, at both 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 $1.0 billion and $994 million as of January 31, 2019 and October 31, 2018 , respectively, and liabilities of $902 million and $852 million as of January 31, 2019 and October 31, 2018 , 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 $359 million and $370 million as of January 31, 2019 and October 31, 2018 , respectively, and corresponding liabilities of $181 million and $205 million , at the respective dates, which are related to other secured transactions that do not qualify for sale accounting treatment, and, therefore, are treated as borrowings secured by operating and finance leases. Investors that hold securitization debt have a priority claim on the cash flows generated by their respective securitized assets to the extent that the related VIEs are required to make principal and interest payments. Investors in securitizations of these entities have no recourse to our general credit. We also have an interest in other VIEs, which we do not consolidate because we are not the primary beneficiary. Our financial support and maximum loss exposure relating to these non-consolidated VIEs are not material to our financial condition, results of operations, or cash flows. We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in income of non-consolidated affiliates includes our share of the net income of these entities. Related Party Transactions We have a series of commercial relationships and agreements with TRATON AG and certain of its subsidiaries and affiliates ("TRATON Group") for royalties related to use of certain engine technology, contract manufacturing operations performed by us, the sale of engines, the sale and purchase of parts, and a procurement joint venture. We have also entered into development agreements with TRATON Group involving certain engine and transmission projects. This development work is being expensed as incurred. For the three months ended January 31, 2019 and 2018 , revenue recognized was approximately $29 million and $40 million , respectively. For the three months ended January 31, 2019 and 2018 , expenses incurred were $13 million and $11 million , respectively, included primarily in Engineering and product development costs on our Consolidated Statements of Operations. Our receivable from TRATON Group was $16 million and $10 million as of January 31, 2019 and October 31, 2018 , respectively. Our payable to TRATON Group was $37 million and $25 million as of January 31, 2019 and October 31, 2018 , respectively. Inventories Inventories are valued at the lower of cost and net realizable value ("NRV"). Cost is principally determined using the first-in, first-out method. Our gross used truck inventory was $169 million at January 31, 2019 compared to $154 million at October 31, 2018 , offset by reserves of $33 million and $31 million , respectively. Property and Equipment We report land, buildings, leasehold improvements, machinery and equipment (including tooling and pattern equipment), furniture, fixtures, and equipment, and equipment leased to others at cost, net of depreciation. We initially record assets under capital lease obligations at the lower of their fair value or the present value of the aggregate future minimum lease payments. We depreciate our assets using the straight-line method over the shorter of the lease term or the estimated useful lives of the assets. We test for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset or asset group (hereinafter referred to as "asset group") may not be recoverable by comparing the sum of the estimated undiscounted future cash flows expected to result from the operation of the asset group and its eventual disposition to the carrying value. During 2017, we identified a triggering event related to continued economic weakness in Brazil which resulted in the decline in forecasted results for the Brazilian asset group. The Brazilian asset group is included in the Global Operations segment. As a result, we estimated the recoverable amount of the asset group and determined that the sum of the undiscounted future cash flows exceeds the carrying value and the asset group was not impaired. Significant adverse changes to our business environment and future cash flows could cause us to record impairment charges in future periods, which could be material. Product Warranty Liability The following table presents accrued product warranty and deferred warranty revenue activity: Three Months Ended January 31, (in millions) 2019 2018 Balance at beginning of period $ 529 $ 629 Costs accrued and revenues deferred 52 29 Adjustments to pre-existing warranties (A) (7 ) (6 ) Payments and revenues recognized (68 ) (79 ) Other adjustments (B) 12 — Balance at end of period 518 573 Less: Current portion 257 287 Noncurrent accrued product warranty and deferred warranty revenue $ 261 $ 286 _________________________ (A) Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior fiscal 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. (B) Other adjustments include a $14 million increase in revenues deferred in connection with the adoption of the new revenue standard (as defined below regarding ASC 606), partially offset by a $2 million reduction in liability related to the sale of a majority interest in our defense business, ND Holdings, LLC (“Navistar Defense”). 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, restructuring charges and litigation-related accruals. Actual results could differ from our estimates. Concentration Risks Our financial condition, results of operations, and cash flows are subject to concentration risks related to our significant unionized workforce. As of January 31, 2019 , approximately 8,700 , or 99% , of our hourly workers and approximately 700 , or 13% , of our salaried workers, are represented by labor unions and are covered by collective bargaining agreements. In January 2019, certain of our United Automobile, Aerospace and Agricultural Implement Workers of America ("UAW") represented employees ratified a new six-year master collective bargaining agreement that replaced the prior agreement that expired in October 2018. 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). Recently Adopted Accounting Standards In March 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118". This ASU updates the income tax accounting in U.S. GAAP to reflect the SEC's interpretive guidance released on December 22, 2017, when the Tax Cuts and Jobs Act (H.R.1) (the "Tax Act") was signed into law. We adopted this ASU on November 1, 2018. See Note 9, Income taxes for additional information. In March 2017, the FASB issued ASU No. 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost". This ASU requires that an employer disaggregate the service cost component from the other components of net periodic benefit cost. In addition, only the service cost component will be eligible for capitalization. The amendments in this update are required to be applied retrospectively for the presentation of the service cost component and the other components of net periodic benefit cost in the Consolidated Statement of Operations and prospectively, on and after the adoption date, for the capitalization of the service cost component of net periodic benefit cost in assets. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. We adopted this ASU on November 1, 2018, using a retrospective approach, which resulted in a reclassification of certain net periodic benefit costs from Selling, general and administrative (" SG&A") expenses to Other Income, net in our Consolidated Statements of Operations . See Note 8, Postretirement benefits for additional information. The following table provides changes to our Consolidated Statements of Operations for the three months ended January 31, 2018: (in millions) Under Prior Standard Effects of New Standard As Reported Selling, general and administrative expenses $ 222 $ (31 ) $ 191 Other expense, net 49 31 80 In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations: Clarifying the Definition of a Business" (Topic 805). This ASU provides a new framework for determining whether transactions should be accounted for as acquisitions or disposals of assets or businesses. This ASU creates an initial screening test (Step 1) that reduces the population of transactions that an entity needs to analyze to determine whether there is an input and substantive processes in the acquisition or disposal (Step 2). Fewer transactions are expected to involve acquiring or selling a business. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. We adopted this ASU on November 1, 2018 with no material impact on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows: Restricted Cash" (Topic 230). This ASU requires that a statement of cash flows explain the change during the period in the total of cash, and cash equivalents, including amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. We adopted this ASU on November 1, 2018 using a retrospective transition approach. The following table provides changes to our Condensed Consolidated Statements of Cash Flows for the three months ended January 31, 2018: (in millions) Under Prior Standard Effects of New Standard As Reported Cash flows from investing activities Net change in restricted cash and cash equivalents $ 46 $ (46 ) $ — Net cash provided by investing activities 61 (46 ) 15 Decrease in cash, cash equivalents and restricted cash (7 ) (46 ) (53 ) Cash, cash equivalents and restricted cash at beginning of the period 706 134 840 Cash, cash equivalents and restricted cash at end of the period 699 88 787 In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory” (Topic 740). This ASU update requires entities to recognize the income tax consequences of many intercompany asset transfers at the transaction date. The seller and buyer will immediately recognize the current and deferred income tax consequences of an intercompany transfer of an asset other than inventory. The tax consequences were previously deferred. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. We adopted this ASU on November 1, 2018 with no material impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments” (Topic 230). This ASU provides guidance on how entities should classify eight specific cash flow transactions for which diversity in practice exists. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. We adopted this ASU on November 1, 2018 with no material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (“ASC 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. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, which postponed the effective date of ASU No. 2014-09 to fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted on the original effective date for fiscal years beginning after December 15, 2016. We analyzed the impact of the ASU on our portfolio of customer contracts which resulted in changes in the timing and the amount of revenue recognized and gross versus net accounting for certain revenue streams in comparison with current guidance. On November 1, 2018, we adopted the new accounting standard ASC 606, "Revenue from Contracts with Customers" and all the related amendments (“new revenue standard”) using the modified retrospective method to all contracts. Based on our assessment, the cumulative effect adjustment upon adoption of the new revenue standard had a $27 million impact on our Accumulated deficit. The primary impacts include an increase in Accumulated deficit due to an increase in the refund liability owed to our customers for future returns of core components. Previously our refund liability was recorded net of our future trade-in value to our suppliers. Under the new revenue standard, we record a liability for the amounts owed to our customers and a deposit asset for the amount we are currently eligible to receive from our suppliers. An additional increase relates to a change in the recognition pattern of revenue for extended warranty contracts. Revenue from these contracts was recognized on a straight-line basis over the life of the contract. Under the new revenue standard, revenue for extended warranty contracts is recorded in proportion to the costs expected to be incurred in satisfying the obligations based on historical cost patterns over the life of similar contracts. The increase in Accumulated deficit is partially offset by certain contracts where revenue recognition occurred as units were delivered and accepted. Under the new revenue standard, when the contract transfers control of a good to a customer as services or production occurs, revenue is recognized over time. An additional decrease in Accumulated deficit relates to certain sales that were recorded as leases or borrowings as we retained substantial risks of ownership. Under the new revenue standard, revenue is recognized upon transfer of control for these transactions, less the value of any guarantees provided to the customer. The adoption of the new revenue standard resulted in changes in the classification of Sales and revenues, net and Costs of products sold in our Consolidated Statements of Operations . The new revenue standard also resulted in changes in the classification of certain assets and liabilities in our Consolidated Balance Sheets . We have revised our relevant policy and procedures and provided expanded revenue recognition disclosures based on the new qualitative and quantitative disclosure requirements of the standard in Note 2, Revenue . The cumulative effects of the adjustments made to our November 1, 2018 Consolidated Balance Sheet for the adoption of the new revenue standard were as follows: (in millions) Balance at October 31, 2018 Change Due to New Standard Balance at November 1, 2018 ASSETS Current assets Trade and other receivables, net $ 456 $ (8 ) $ 448 Inventories, net 1,110 (91 ) 1,019 Other current assets 189 101 290 Total current assets 5,136 2 5,138 Property and equipment, net 1,370 (109 ) 1,261 Deferred taxes, net 121 1 122 Other noncurrent assets 113 (3 ) 110 Total assets $ 7,230 $ (109 ) $ 7,121 LIABILITIES and STOCKHOLDERS’ DEFICIT Liabilities Current liabilities Notes payable and current maturities of long-term debt $ 946 $ (15 ) $ 931 Other current liabilities 1,255 13 1,268 Total current liabilities 3,807 (2 ) 3,805 Long-term debt 4,521 (58 ) 4,463 Other noncurrent liabilities 731 (22 ) 709 Total liabilities 11,156 (82 ) 11,074 Stockholders’ deficit Total stockholders’ deficit attributable to Navistar International Corporation (3,931 ) (27 ) (3,958 ) Total liabilities and stockholders’ deficit $ 7,230 $ (109 ) $ 7,121 The following reconciles amounts as they would have been reported under the prior standard to current reporting: Three months ended January 31, 2019 (A) (in millions) Under Prior Standard Effects of New Standard As Reported Sales of manufactured products, net $ 2,390 $ (4 ) $ 2,386 Costs of products sold 1,986 (7 ) 1,979 Interest expense 86 (1 ) 85 Income (loss) before income tax (6 ) 4 (2 ) Income tax benefit 20 (1 ) 19 Net income $ 14 $ 3 $ 17 ______________________ (A) Our Consolidated Statements of Operations for the three months ended January 31, 2019 includes two months of the operating activity of Navistar Defense prior to the sale of a majority interest in our defense business. See Note 3 Restructuring, Impairments and Divestitures for additional information. As of January 31, 2019 (A) (in millions) Under Prior Standard Effects of New Standard As Reported ASSETS Current assets Trade and other receivables, net $ 441 $ (12 ) $ 429 Inventories, net 1,260 (49 ) 1,211 Other current assets 222 69 291 Total current assets 5,066 8 5,074 Property and equipment, net 1,402 (127 ) 1,275 Other noncurrent assets 101 (3 ) 98 Total assets $ 7,159 $ (122 ) $ 7,037 LIABILITIES and STOCKHOLDERS’ DEFICIT Liabilities Current liabilities Notes payable and current maturities of long-term debt $ 957 $ (15 ) $ 942 Other current liabilities 1,195 30 1,225 Total current liabilities 3,636 15 3,651 Long-term debt 4,607 (55 ) 4,552 Other noncurrent liabilities 734 (48 ) 686 Total liabilities 10,938 (88 ) 10,850 Stockholders’ deficit Total stockholders’ deficit attributable to Navistar International Corporation (3,782 ) (34 ) (3,816 ) Total liabilities and stockholders’ deficit $ 7,159 $ (122 ) $ 7,037 _________________________ (A) Our Consolidated Balance Sheet as of January 31, 2019 does not include the impact of Navistar Defense due to the sale of a majority interest in our defense business. See Note 3, Restructuring, Impairments and Divestitures for additional information. Recently Issued Accounting Standards In August 2018, FASB issued ASU No. 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement". This ASU provides guidance on evaluating the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) and determining when the arrangement includes a software license. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. This ASU is effective for us in the first quarter of fiscal 2021. We are currently evaluating the impact of this ASU on our consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)". This ASU provides guidance on a reclassification from accumulated other comprehensive income to retained earnings for the effect of the tax rate change resulting from the Tax Act. The amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. This ASU is effective for us in the first quarter of fiscal 2020. We are currently evaluating the impact of this ASU on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments” (Topic 326). This ASU sets forth an expected credit loss model which requires the measurement of expected credit losses for financial instruments based on historical experience, current conditions and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost, and certain off-balance sheet credit exposures. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Adoption will require a modified retrospective transition. This ASU is effective for us in the first quarter of fiscal 2021. We are currently evaluating the impact of this ASU on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). This ASU requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than twelve months. The accounting by lessors will remain largely unchanged. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. This ASU is effective for us in the first quarter of fiscal 2020. We expect to adopt this ASU in the first quarter of fiscal 2020 on a modified retrospective basis by which the cumulative effect adjustment recognized in Accumulated deficit as of November 1, 2019. We will continue to evaluate the impact of this ASU on our consolidated financial statements. |
Revenue
Revenue | 3 Months Ended |
Jan. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Disaggregation of Revenue The following tables disaggregate our external revenue by product type and geographic area for the three months ended January 31, 2019 (in millions): Products and Services (in millions) Truck Parts Global Operations Financial Corporate Total Three Months Ended January 31, 2019 Truck products and services (A)(B) $ 1,677 $ — $ — $ — $ 3 $ 1,680 Truck contract manufacturing 18 — — — — 18 Used trucks 51 — — — — 51 Engines — 66 45 — — 111 Parts 1 480 16 — — 497 Extended warranty contracts 29 — — — — 29 Sales of manufactured products, net 1,776 546 61 — 3 2,386 Retail financing (C) — — — 35 — 35 Wholesale financing (C) — — — 12 — 12 Sales and revenues, net $ 1,776 $ 546 $ 61 $ 47 $ 3 $ 2,433 _________________________ (A) Includes other markets primarily consisting of Bus, Export Truck and Mexico. Also includes revenue of $3 million related to certain third-party financings initially recorded as borrowings, and operating lease revenue of $1 million . (B) Includes military sales of $62 million . In December 2018, we completed the previously announced sale of a 70% equity interest in Navistar Defense. See Note 3, Restructuring, Impairments and Divestitures for additional information. (C) Retail financing and Wholesale financing revenues in the Financial Services segment include interest revenue of $13 million and $12 million , respectively, for the three months ended January 31, 2019. Geography (in millions) Truck Parts Global Operations Financial Corporate Total Three Months Ended January 31, 2019 United States $ 1,468 $ 455 $ — $ 23 $ 3 $ 1,949 Canada 135 49 — — — 184 Mexico 66 25 — 24 — 115 Brazil — — 53 — — 53 Other 107 17 8 — — 132 Sales and revenues, net $ 1,776 $ 546 $ 61 $ 47 $ 3 $ 2,433 Trucks, Truck Contract Manufacturing, Used trucks, Engines and Parts Revenue for our Truck products and services, certain truck contract manufacturing, Used trucks, certain Engines and Parts is recognized at a point in time when control is transferred to the customer. Our Trucks, Used Trucks, Engines, and Parts have a standard warranty, the estimated cost of which is included in Costs of products sold . Operating lease and borrowing revenues are recognized on a straight-line basis over the life of the lease. Certain truck sales to the U.S. government of non-commercial products manufactured to government specification, and certain truck and other contract manufacturing arrangements are recognized over time as the goods are manufactured. We recognize revenue over time when the finished assets have no alternative use and we have a right to payment for work performed in the event of a contract cancellation or when we create or enhance an asset that the customer controls as it is being created or enhanced. We recognize revenue using a cost-based input method because it best depicts our progress in satisfying the performance obligation. The selection of the method requires judgement and is based on the nature of the products or services to be provided. Certain terms or modifications to U.S. and foreign government contracts may be unpriced; that is, the work to be performed is defined, but the related contract price is to be negotiated at a later date. In situations where we can reliably estimate a profit margin in excess of costs incurred, revenue and gross margin are recorded for delivered contract items. Otherwise, revenue is recognized when the price has been agreed with the applicable government and costs are deferred when it is probable that the costs will be recovered. An allowance for sales returns is recorded as a reduction to revenue based upon estimates using historical information about returns. This includes when the Company is a reseller of certain service parts that include a core component. A core component is the basic forging or casting, such as an engine block, that can be remanufactured by a certified remanufacturing supplier. When a dealer returns a core component within the specified eligibility period, we refund the core return deposit, which is applied to the customer's account balance. Extended Warranty Contracts We sell separately-priced extended warranty contracts that can be purchased for periods ranging from one to ten years. Warranty revenue related to extended warranty contracts is recognized over the life of the contract in proportion to the costs expected to be incurred in satisfying the obligation under the contract. Costs under extended warranty contracts are expensed as incurred. We recognize losses on defined pools of extended warranty contracts when the remaining expected costs for a given pool of contracts exceed the related deferred revenue. Retail and Wholesale Financing Financial Services operations recognize revenue from retail notes, finance leases, wholesale notes, retail accounts, and wholesale accounts as Finance revenues over the term of the receivables utilizing the effective interest method. Certain direct origination costs and fees are deferred and recognized as adjustments to yield and are reported as part of interest income over the life of the receivable. Loans are impaired when we conclude it is probable the customer will not be able to make full payment according to contractual terms after reviewing the customer's financial performance, payment ability, capital-raising potential, management style, economic situation, and other factors. The accrual of interest on such loans is suspended when the loan becomes 90 days or more past due. Finance revenues on these loans are recognized only to the extent cash payments are received. We resume accruing interest on these accounts when payments are current according to the terms of the loans and future payments are reasonably assured. Operating lease revenues are recognized on a straight-line basis over the life of the lease. Recognition of revenue is suspended when management determines the collection of future revenue is not probable. Recognition of revenue is resumed if collection again becomes probable. Performance Obligations Generally, revenue from our sales is recognized at a point in time when control is transferred to the customer which generally occurs upon shipment from our plants and distribution centers or at the time of delivery to our customers. The standard payment term is less than 30 days, but we may extend payment terms on selected receivables. We have elected the practical expedient that allows the Company to not assess whether a contract has a significant financing component when the time between cash collection and transfer of control is less than one year. We recognize price allowances, returns and the cost of incentive programs in the normal course of business based on programs offered to dealers or fleet customers. Estimates are made for sales incentives on certain vehicles in dealer stock inventory based on historical experience and announced special programs. The estimated sales incentives and returns are adjusted at the earlier of when the estimate of consideration we expect to receive changes or the consideration becomes fixed. For contracts where there is more than one performance obligation, discounts are allocated to all of the performance obligations in the contract based on their relative standalone selling prices. Revenue on bill and hold arrangements is not recognized until after the customer is notified that the product (i) has been completed according to customer specifications, (ii) has passed our quality control inspections, (iii) is ready for physical transfer to the customer and (iv) the reason for the bill and hold arrangement is substantive. We have elected to account for shipping and handling activities that occur subsequent to transfer of control as a fulfillment cost and not as a separate performance obligation. The costs are recognized as an expense in Costs of products sold when incurred. As a practical expedient, we do not disclose the transaction price related to order backlogs as they have an original expected duration of less than one year. We exclude from revenue any sales taxes, value added taxes and other related taxes collected from customers. For the three months ended January 31, 2019, the impact of changes to revenue related to performance obligations satisfied in a prior period was not material to our consolidated financial statements. Contract Balances Most of our contracts are for a period of less than one year. We have certain long-term contract manufacturing and extended warranty contracts that extend beyond one year. We record deferred revenue, primarily related to extended warranty contracts, when we receive consideration from a customer prior to transferring goods or services under the terms of a sales contract. This deferred revenue represents contract liabilities which are included in our Consolidated Balance Sheets as components of current and long-term liabilities. The amount of manufacturing contract liabilities is not material to our consolidated financial statements. The amount of deferred revenue related to extended warranty contracts was $269 million and $255 million at January 31, 2019 and October 31, 2018 , respectively. Revenue recognized under our extended warranty programs for the three months ended January 31, 2019 and 2018 was $29 million , for both periods. We expect to recognize revenue under our extended warranty programs of approximately $71 million in the remainder of 2019, $77 million in 2020, $58 million in 2021, $35 million in 2022, $18 million in 2023 and $10 million thereafter. Contract Costs We recognize incremental costs to obtain contracts as an asset if they are recoverable. As a practical expedient, we recognize the costs of obtaining a contract as an expense when the related contract period is less than one year. We have no contract costs capitalized as of January 31, 2019 . |
Restructuring and Impairments
Restructuring and Impairments | 3 Months Ended |
Jan. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructurings and Impairments | Restructuring, Impairments and Divestitures 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. Manufacturing Restructuring Activities We continue to focus on our core Truck and Parts businesses and evaluate our portfolio of assets to validate their strategic and financial fit. This allows us to close or divest non-strategic businesses and identify opportunities to restructure our business and rationalize our Manufacturing operations in an effort to optimize our cost structure. For those areas that fall outside our strategic businesses, we evaluate 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. Global operations employee separation actions In the fourth quarter of 2017, we initiated cost-reduction actions impacting our workforce in Brazil. As a result of these actions, we recognized restructuring charges of $6 million in personnel costs for employee separation and related benefits. In the first quarter of 2018, we recognized a benefit of $1 million upon the completion of these separation actions. This benefit was recorded in our Global operations segment within Restructuring charges in our Consolidated Statements of Operations. Melrose Park Facility restructuring activities In the third quarter of 2017, we committed to a plan to cease engine production at our plant in Melrose Park, Illinois (“Melrose Park Facility”) in the third quarter of fiscal year 2018. As a result, in the third quarter of 2017, we recognized charges of $41 million in our Truck segment. The charges include $23 million related to pension and other post-employment benefits ("OPEB") liabilities and $8 million for severance pay recorded in Restructuring charges in our Consolidated Statements of Operations. We also recorded $10 million of inventory reserves and other related charges in Costs of products sold in our Consolidated Statements of Operations. In the first quarter of 2018, we recognized a benefit of $2 million related to the finalized cessation of the production agreement. This benefit was recorded in our Truck segment within Restructuring charges in our Consolidated Statements of Operations. Production at the Melrose Park Facility ceased on May 17, 2018. Asset Impairments In the three months ended January 31, 2019, we concluded that we had triggering events related to certain operating leases. As a result, a charge of $2 million was recorded in our Truck segment. In the first quarter of 2018, we concluded that we had triggering events related to the sale of our railcar business in Cherokee, Alabama requiring the impairment of certain long-lived assets. As a result, we recorded a charge of $2 million in our Truck segment. In February 2018, we completed the sale of the business. These charges were recorded in Asset impairment charges in our Consolidated Statements of Operations. See Note 10, Fair Value Measurements , for information on the valuation of impaired operating leases and other assets. Navistar Defense Divestiture In December 2018, we completed the previously announced sale of a 70% equity interest in Navistar Defense, to an affiliate of Cerberus Capital Management, L.P. In connection with the closing of the transaction, we entered into an exclusive long-term agreement to supply military and commercial parts and chassis to Navistar Defense . We also entered into an intellectual property agreement and a transition services agreement concurrent with the sale. The Navistar Defense purchase price, adjusted for certain calendar year 2018 chargeouts, was approximately $140 million , which was further subject to additional adjustments for working capital, transfers of certain liabilities and commitments, and other items. The transaction also includes potential additional consideration of up to $17 million , not included in the gain on the sale, based on cash proceeds from certain contracts which exceed defined thresholds. We recognized a gain on the sale in our Truck segment of $54 million in Other expense, net in our Consolidated Statements of Operations. |
Finance Receivables
Finance Receivables | 3 Months Ended |
Jan. 31, 2019 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Finance receivables are receivables of our Financial Services operations. Finance receivables generally consist of wholesale notes and accounts, as well as retail notes, finance leases and accounts. Total finance receivables reported on the Consolidated Balance Sheets are net of an allowance for doubtful accounts. Total assets of our Financial Services operations net of intercompany balances were $2.6 billion as of January 31, 2019 and October 31, 2018 . Included in total assets of our Financial Services operations were finance receivables of $2.1 billion and $2.2 billion as of January 31, 2019 and October 31, 2018 , respectively. We have two portfolio segments of finance receivables that we distinguish based on the type of customer and nature of the financing inherent to each portfolio. The retail portfolio segment represents loans or leases to end-users for the purchase or lease of vehicles. The wholesale portfolio segment represents loans to dealers to finance their inventory. Our Finance receivables, net in our Consolidated Balance Sheets consist of the following: (in millions) January 31, 2019 October 31, 2018 Retail portfolio $ 713 $ 720 Wholesale portfolio 1,400 1,460 Total finance receivables 2,113 2,180 Less: Allowance for doubtful accounts 23 22 Total finance receivables, net 2,090 2,158 Less: Current portion, net (A) 1,818 1,898 Noncurrent portion, net $ 272 $ 260 _________________________ (A) The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals. Securitizations Our Financial Services operations transfer wholesale notes, retail accounts receivable, finance leases, and operating leases to special purpose entities ("SPEs"), which generally are only permitted to purchase these assets, issue asset-backed securities, and make payments on the securities issued. In addition to servicing receivables, our continued involvement in the SPEs may include an economic interest in the transferred receivables and, in some cases, managing exposure to interest rate changes on the securities using interest rate swaps or interest rate caps. There were no transfers of finance receivables that qualified for sale accounting treatment as of January 31, 2019 and October 31, 2018 , 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 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 $984 million and $956 million as of January 31, 2019 and October 31, 2018 , respectively. Other finance receivables related to secured transactions that do not qualify for sale accounting treatment were $222 million and $235 million as of January 31, 2019 and October 31, 2018 , respectively. For more information on assets and liabilities of consolidated VIEs and other securitizations accounted for as secured borrowings by our Financial Services segment, see Note 1, Summary of Significant Accounting Policies. Finance Revenues The following table presents the components of our Finance revenues in our Consolidated Statements of Operations : Three Months Ended January 31, (in millions) 2019 2018 Retail notes and finance leases revenue $ 14 $ 11 Wholesale notes interest 31 25 Operating lease revenue 21 18 Retail and wholesale accounts interest 8 5 Gross finance revenues 74 59 Less: Intercompany revenues 27 21 Finance revenues $ 47 $ 38 |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 3 Months Ended |
Jan. 31, 2019 | |
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 4, Finance Receivables . The following tables present the activity related to our allowance for doubtful accounts for our retail portfolio segment, wholesale portfolio segment, and trade and other receivables: Three Months Ended January 31, 2019 Three Months Ended January 31, 2018 (in millions) Retail Wholesale Trade and Total Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 19 $ 3 $ 28 $ 50 $ 17 $ 3 $ 28 $ 48 Provision for doubtful accounts 1 — — 1 — — 1 1 Charge-off of accounts (1 ) — — (1 ) (1 ) — — (1 ) Recoveries — — — — 1 — — 1 Other (A) 1 — — 1 1 — — 1 Allowance for doubtful accounts, at end of period $ 20 $ 3 $ 28 $ 51 $ 18 $ 3 $ 29 $ 50 ____________________ (A) Amounts include impact from currency translation. The accrual of interest income is suspended 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, 2019 October 31, 2018 (in millions) Retail Wholesale Total Retail Wholesale Total Impaired finance receivables with specific loss reserves $ 20 $ — $ 20 $ 20 $ — $ 20 Impaired finance receivables without specific loss reserves — — — — — — Specific loss reserves on impaired finance receivables 9 — 9 9 — 9 Finance receivables on non-accrual status 20 — 20 20 — 20 The average balances of the impaired finance receivables in the retail portfolio were $21 million and $18 million during the three months ended January 31, 2019 and 2018 , respectively. See Note 10, Fair Value Measurements , for information on the valuation of impaired finance receivables. We use the aging of our receivables as well as other inputs when assessing credit quality. The following table presents the aging analysis for finance receivables: January 31, 2019 October 31, 2018 (in millions) Retail Wholesale Total Retail Wholesale Total Current, and up to 30 days past due $ 636 $ 1,399 $ 2,035 $ 655 $ 1,459 $ 2,114 30-90 days past due 57 1 58 51 1 52 Over 90 days past due 20 — 20 14 — 14 Total finance receivables $ 713 $ 1,400 $ 2,113 $ 720 $ 1,460 $ 2,180 |
Inventories
Inventories | 3 Months Ended |
Jan. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table presents the components of Inventories in our Consolidated Balance Sheets : (in millions) January 31, October 31, Finished products $ 739 $ 671 Work in process 163 118 Raw materials 309 321 Total inventories, net $ 1,211 $ 1,110 |
Debt
Debt | 3 Months Ended |
Jan. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following tables present the components of Notes payable and current maturities of long-term debt and Long-term debt in our Consolidated Balance Sheets : (in millions) January 31, 2019 October 31, 2018 Manufacturing operations Senior Secured Term Loan Credit Agreement, due 2025, net of unamortized discount of $7 at both dates, and unamortized debt issuance costs of $11 at both dates $ 1,566 $ 1,570 6.625% Senior Notes, due 2026, net of unamortized debt issuance costs of $16 and $17, respectively 1,084 1,083 4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $2 and $5, respectively, and unamortized debt issuance costs of $1 at both dates 408 405 Loan Agreement related to 6.75% Tax Exempt Bonds, due 2040, net of unamortized debt issuance costs of $5 at both dates 220 220 Financed lease obligations 52 122 Other 13 26 Total Manufacturing operations debt 3,343 3,426 Less: Current portion 437 461 Net long-term Manufacturing operations debt $ 2,906 $ 2,965 (in millions) January 31, 2019 October 31, 2018 Financial Services operations Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2023 , net of unamortized debt issuance costs of $4 at both dates $ 992 $ 948 Senior secured NFC Term Loan, due 2025, net of unamortized discount of $2 at both dates, and unamortized debt issuance costs of $4 at both dates 393 394 Bank credit facilities, at fixed and variable rates, due dates from 2019 through 2025, net of unamortized debt issuance costs of $1 and $2, respectively 616 519 Commercial paper, at variable rates, program matures in 2022 62 75 Borrowings secured by operating and finance leases, at various rates, due serially through 2024 88 105 Total Financial Services operations debt 2,151 2,041 Less: Current portion 505 485 Net long-term Financial Services operations debt $ 1,646 $ 1,556 Financial Services Operations Asset-backed Debt In November 2018, the maturity of our $350 million variable funding notes ("VFN") facility was extended from December 2018 to May 2020. In December 2018, the maturity of our $100 million Truck Retail Accounts Corporation ("TRAC") funding facility was extended from January 2019 to January 2020. |
Postretirement Benefits
Postretirement Benefits | 3 Months Ended |
Jan. 31, 2019 | |
Retirement Benefits [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, 2019 and 2018 , we contributed $131 million and $21 million , respectively, to our pension plans to meet regulatory funding requirements. During the first quarter of 2019 , we accelerated the payment of a substantial portion of our 2019 minimum required funding. We expect to contribute approximately $9 million to our pension plans during the remainder of 2019 . We primarily fund OPEB obligations, such as retiree medical, in accordance with the 1993 Settlement Agreement (the "1993 Settlement Agreement"), which requires us to fund a portion of the plans' annual service cost to a retiree benefit trust (the "Base Trust"). The 1993 Settlement Agreement resolved a class action lawsuit originally filed in 1992 regarding the restructuring of our then applicable retiree health care and life insurance benefits. Contributions for the three months ended January 31, 2019 and 2018 , as well as anticipated contributions for the remainder of 2019 , are not material. Components of Net Periodic Benefit Expense Net periodic benefit expense included in our Consolidated Statements of Operations, and other amounts recognized in our Consolidated Statements of Stockholders' Deficit , for the three months ended January 31, 2019 and 2018 are comprised of the following: Three Months Ended January 31, Pension Benefits Health and Life (in millions) 2019 2018 2019 2018 Service cost for benefits earned during the period $ 2 $ 2 $ 1 $ 1 Interest on obligation 32 27 12 11 Amortization of cumulative loss 24 26 — 2 Settlements 142 9 — — Premiums on pension insurance 1 2 — — Expected return on assets (38 ) (40 ) (5 ) (6 ) Net periodic benefit expense $ 163 $ 26 $ 8 $ 8 In the first quarter of 2019, we adopted ASU No. 2017-07 "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." This ASU requires than an employer disaggregate the service cost component from the other components of net periodic benefit cost. As a result, we have reclassified certain net periodic benefit costs from SG&A expenses to Other expense, net in our Consolidated Statements of Operations . The guidance, which required retrospective application, resulted in recording a reclassification of $31 million as of January 31, 2018. In the three months ended January 31, 2019 and 2018, we purchased group annuity contracts for certain retired pension plan participants resulting in plan remeasurements. The purchase of the group annuity contracts was funded directly by the assets of our Canadian pension plans. As a result, net actuarial losses of $11 million and $2 million , respectively, were recognized as components of Accumulated other comprehensive loss and non-cash pension settlement accounting expenses of $142 million and $9 million , respectively, were recognized in Other expense, net in our Consolidated Statements of Operations . Defined Contribution Plans and Other Contractual Arrangements Our defined contribution plans cover a substantial portion of domestic salaried employees and certain domestic represented employees. The defined contribution plans contain a 401(k) feature and provide most participants with a matching contribution from the Company. Effective January 1, 2019, we deposit the matching contribution monthly. 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 $8 million and $7 million in the three months ended January 31, 2019 and 2018 , 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 record 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, 2019 | |
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. Tax jurisdictions with a projected or year to date loss for which a tax benefit cannot be realized are excluded. 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. We included an income tax benefit of $38 million in the current quarter for the tax effect of the Canadian pension settlement as a significant unusual or infrequently occurring item. Other items included in income tax expense in the periods in which they occur include the tax effects of cumulative changes in tax laws or rates, foreign exchange gains and losses, adjustments to uncertain tax positions, and adjustments to our valuation allowance due to changes in judgment regarding the ability to realize deferred tax assets in future years. On December 22, 2017, the Tax Act was signed into U.S. law. On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company’s financial statement effects were reported on a provisional basis for the year ended October 31, 2018. The remeasurement period for SAB 118 ended on December 22, 2018. The Tax Act reduced the statutory corporate income tax rate from 35% to 21% , effective January 1, 2018. This rate reduction required us to remeasure our deferred taxes as of the date the Tax Act was enacted. Our U.S. deferred tax assets, net of deferred tax liabilities, were remeasured and reduced by $983 million , entirely offset by a valuation allowance reduction. As a result, the remeasurement of our deferred tax assets, net of deferred tax liabilities, including the valuation allowance, did not impact our income tax expense or net income. The Tax Act also included a mandatory deemed repatriation of earnings of the Company’s foreign subsidiaries and resulted in a one-time transition tax for the year ended October 31, 2018. We included $147 million of foreign earnings in taxable income due to this deemed repatriation. The deferred tax impact had a valuation allowance offset, resulting in no impact on our income tax expense or net income. The income tax accounting for the effect of the rate change on deferred taxes and the mandatory deemed repatriation is complete. The Tax Act also included many other provisions, including changes to limits on the deductions for executive compensation and interest expense, a tax on global intangible low‐taxed income (“GILTI”), the base erosion anti‐abuse tax (“BEAT”) and a deduction for foreign derived intangible income (“FDII”). We have included the impact of these provisions in our interim period tax calculations, which first apply to our taxable year beginning November 1, 2018. Companies can either account for taxes on GILTI as incurred or recognize deferred taxes when basis differences exist that are expected to affect the amount of the GILTI inclusion upon reversal. The Company is electing to account for taxes on GILTI as incurred. We will continue to evaluate the Tax Act’s impact, which may change as a result of additional Treasury guidance, federal or state legislative actions, or changes in accounting standards or related interpretations. The Company’s analyses performed to date are sufficient to calculate a reasonable estimate of the impacts of the Tax Act. We have evaluated the need to maintain a valuation allowance for deferred tax assets based on our assessment of whether it is more likely than not that deferred tax benefits will be realized through the generation of future taxable income. Appropriate consideration is given to all available evidence, both positive and negative, in assessing the need for a valuation allowance. We continue to maintain a valuation allowance on the majority of our U.S. deferred tax assets as well as certain foreign deferred tax assets that we believe, on a more-likely-than-not basis, will not be realized based on current forecasted results. For all remaining deferred tax assets, while we believe that it is more likely than not that they will be realized, we believe that it is reasonably possible that additional deferred tax asset valuation allowances could be required in the next twelve months. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of January 31, 2019 , the amount of liability for uncertain tax positions was $30 million . The liability at January 31, 2019 has a recorded offsetting tax benefit associated with various issues that total $9 million . If the unrecognized tax benefits are recognized, all would impact our effective tax rate, except for positions for which we maintain a full valuation allowance against certain deferred tax assets. In this case, 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 . Total interest and penalties for the three months ended January 31, 2019 and 2018 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, 2019 | |
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 —Cash equivalents are highly liquid investments, with an original maturity of 90 days or less, which may include U.S. government and federal agency securities, commercial paper, and other highly liquid investments. The carrying amounts of cash and cash equivalents and restricted cash and cash equivalents 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 may include investments in U.S. government and federal agency securities, commercial paper and other investments 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. Guarantees —We provide certain guarantees of payments and residual values, to which losses are generally capped, to specific counterparties. The fair value of these guarantees includes a contingent component and a non-contingent component that are based upon internally developed models using unobservable inputs. We classify these liabilities within Level 3. For more information regarding guarantees, see Note 11, Commitments and Contingencies. Impaired Finance Receivables and Impaired Assets Under Operating Leases —Fair values of the underlying collateral are determined by current and forecasted sales prices, aging of and demand for used trucks, and the mix of sales through various market channels. For more information regarding impaired finance receivables, see Note 5, Allowance for Doubtful Accounts. Impaired Property, Plant and Equipment —We measure the fair value by discounting future cash flows expected to be received from the operation of, or disposition of, the asset or asset group that has been determined to be impaired. For more information regarding the impairment of property, plant and equipment, see Note 3, Restructurings and Impairments. The following table presents the financial instruments measured at fair value on a recurring basis: As of January 31, 2019 As of October 31, 2018 (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Marketable securities: U.S. government and federal agency securities $ 41 $ — $ — $ 41 $ 101 $ — $ — $ 101 Derivative financial instruments: Commodity forward contracts (A) — — — — — 2 — 2 Interest rate caps (B) — 1 — 1 — 2 — 2 Total assets $ 41 $ 1 $ — $ 42 $ 101 $ 4 $ — $ 105 Liabilities Derivative financial instruments: Commodity forward contracts (C) $ — $ 1 $ — $ 1 $ — $ — $ — $ — Guarantees — — 21 21 — — 24 24 Total liabilities $ — $ 1 $ 21 $ 22 $ — $ — $ 24 $ 24 _________________________ (A) The asset value of commodity forward contracts is included in Other current assets in the accompanying Consolidated Balance Sheets . (B) The asset value of interest rate caps is included in Other noncurrent assets in the accompanying Consolidated Balance Sheets. (C) The liability value of commodity forward contracts is included in Other current liabilities in the accompanying Consolidated Balance Sheets. The following table presents the changes for those financial instruments classified within Level 3 of the valuation hierarchy: Three Months Ended January 31, (in millions) 2019 2018 Guarantees, at beginning of period $ (24 ) $ (21 ) Transfers out of Level 3 — — Net terminations (issuances) 2 (5 ) Settlements 1 1 Guarantees, at end of period $ (21 ) $ (25 ) 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 cash equivalents , 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 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 6.75% 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. Trading in our 6.625% Senior Notes is limited to qualified institutional buyers; therefore the notes are 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, 2019 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 196 $ 196 $ 201 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Agreement, due 2025 — — 1,563 1,563 1,566 6.625% Senior Notes, due 2026 — 1,109 — 1,109 1,084 4.75% Senior Subordinated Convertible Notes, due 2019 (A) 412 — — 412 408 Loan Agreement related to 6.75% Tax Exempt Bonds, due 2040 — 235 — 235 220 Financed lease obligations — — 52 52 52 Other (B) — — 11 11 12 Financial Services operations Asset-backed debt issued by consolidated SPEs, due serially through 2023 — — 993 993 992 Senior secured NFC Term Loan, due 2025 — — 395 395 393 Bank credit facilities, due dates from 2019 through 2025 — — 586 586 616 Commercial paper, program matures in 2022 62 — — 62 62 Borrowings secured by operating and finance leases, due serially through 2024 — — 87 87 88 As of October 31, 2018 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 180 $ 180 $ 183 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Agreement, due 2025 — — 1,597 1,597 1,570 6.625% Senior Notes, due 2026 — 1,122 — 1,122 1,083 4.75% Senior Subordinated Convertible Notes, due 2019 (A) 412 — — 412 405 Loan Agreement related to 6.75% Tax Exempt Bonds, due 2040 — 235 — 235 220 Financed lease obligations — — 122 122 122 Other — — 25 25 26 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2023 — — 949 949 948 Senior secured NFC Term Loan, due 2025 — — 400 400 394 Bank credit facilities, due dates from 2019 through 2025 — — 511 511 519 Commercial paper, at variable rates, program matures in 2022 75 — — 75 75 Borrowings secured by operating and finance leases, due serially through 2024 — — 104 104 105 _________________________ (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 estimated fair value is derived from quoted prices in active markets which include the equity feature. (B) Excludes capital lease obligation debt of $1 million as of January 31, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jan. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees We occasionally provide guarantees that could obligate us to make future payments if the primary entity fails to perform under its contractual obligations. We have recognized liabilities for some of these guarantees in our Consolidated Balance Sheets as they meet the recognition and measurement provisions of U.S. GAAP. In addition to the liabilities that have been recognized, we are contingently liable for other potential losses under various guarantees. We do not believe that claims that may be made under such guarantees would have a material effect on our financial condition, results of operations, or cash flows. Under the terms of the Navistar Capital Operating Agreement, Navistar Capital (a program of BMO Harris Bank N.A. and Bank of Montreal (together "BMO")) is our third-party preferred source of retail and lease 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 BMO for credit losses in excess of the first 10% of the financed value of a contract; for certain leases we reimburse BMO 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 $1.5 billion of outstanding loan principal and operating lease payments receivable at both January 31, 2019 and October 31, 2018 , 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 $2.6 billion and $2.5 billion at January 31, 2019 and October 31, 2018 , 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 $44 million and $104 million and financed lease obligations of $52 million and $122 million , in our Consolidated Balance Sheets as of January 31, 2019 and October 31, 2018 , respectively. We also have issued a limited number of residual value guarantees, for which losses are generally capped. If control has not transferred, we account for these arrangements as operating leases and revenue is recognized on a straight-line basis over the term of the lease. If control has transferred, revenue is recognized upon sale and the amounts of the guarantees are estimated and recorded. Our guarantees are contingent upon the fair value of the leased assets at the end of the lease term. We have recognized liabilities for some of these guarantees in our Consolidated Balance Sheets as they meet recognition and measurement provisions. In addition to the liabilities that have been recognized, we are contingently liable for other potential losses under various guarantees that are not recognized in our Consolidated Balance Sheets . We do not believe claims that may be made under such guarantees would have a material effect on our financial condition, results of operations, or cash flows. We obtain certain stand-by letters of credit and surety bonds from third-party financial institutions in the ordinary course of business when required under contracts or to satisfy insurance-related requirements. As of January 31, 2019 , the amount of stand-by letters of credit and surety bonds issued was $95 million . In addition, as of January 31, 2019 , we have $134 million of outstanding purchase commitments and contracts with $21 million of cancellation fees with expiration dates through 2025. In the ordinary course of business, we also provide routine indemnifications and other guarantees, the terms of which range in duration and often are not explicitly defined. We do not believe these will result in claims that would have a material impact on our financial condition, results of operations, or cash flows. Environmental Liabilities We have been named a potentially responsible party ("PRP"), in conjunction with other parties, in a number of cases arising under an environmental protection law, the Comprehensive Environmental Response, Compensation, and Liability Act, popularly known as the "Superfund" law. These cases involve sites that allegedly received wastes from current or former Company locations. Based on information available to us which, in most cases, consists of data related to quantities and characteristics of material generated at current or former Company locations, material allegedly shipped by us to these disposal sites, as well as cost estimates from PRPs and/or federal or state regulatory agencies for the cleanup of these sites, a reasonable estimate is calculated of our share of the probable costs, if any, and accruals are recorded in our consolidated financial statements. These accruals are generally recognized no later than upon completion of the remedial feasibility study and are not discounted to their present value. We review all accruals on a regular basis and believe that, based on these calculations, our share of the potential additional costs for the cleanup of each site will not have a material effect on our financial condition, results of operations, or cash flows. In addition, other sites formerly owned by us or where we are currently operating have been identified as having soil and groundwater contamination. While investigations and cleanup activities continue at these sites, we believe that we have appropriate accruals to cover costs to complete the cleanup of all sites. We have accrued $18 million for these and other environmental matters, which are included within Other current liabilities and Other noncurrent liabilities , as of January 31, 2019 . The majority of these accrued liabilities are expected to be paid subsequent to 2020 . Along with other vehicle manufacturers, we have been subject to an increased number of asbestos-related claims in recent years. In general, these claims relate to illnesses alleged to have resulted from asbestos exposure from component parts found in older vehicles, although some cases relate to the alleged presence of asbestos in our facilities. In these claims, we are generally not the sole defendant, and the claims name as defendants numerous manufacturers and suppliers of a wide variety of products allegedly containing asbestos. We have strongly disputed these claims, and it has been our policy to defend against them vigorously. Historically, the actual damages paid out to claimants have not been material in any year to our financial condition, results of operations, or cash flows. It is possible that the number of these claims will continue to grow, and that the costs for resolving asbestos related claims could become significant in the future. Legal Proceedings Overview We are subject to various claims arising in the ordinary course of business and are party to various legal proceedings that constitute ordinary, routine litigation incidental to our business. The majority of these claims and proceedings relate to commercial, product liability, and warranty matters. In addition, from time to time we are subject to various claims and legal proceedings related to employee compensation, benefits, and benefits administration including, but not limited to, compliance with the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and Department of Labor requirements. In our opinion, apart from the actions set forth below, the disposition of these proceedings and claims, after taking into account recorded accruals and the availability and limits of our insurance coverage, will not have a material adverse effect on our business or our financial condition, results of operations, or cash flows. Profit Sharing Disputes Pursuant to the 1993 Settlement Agreement, the program administrator and named fiduciary of the Supplemental Benefit Program is the Supplemental Benefit Program Committee (the "Committee"), composed of individuals not appointed by NI or NIC. In August 2013, the Committee filed a motion for leave to amend its February 2013 complaint (which sought injunctive relief for the Company to provide certain information to which it was allegedly entitled under the Supplemental Benefit Trust Profit Sharing Plan) and a proposed amended complaint (the "Profit Sharing Complaint") in the U.S. District Court for the Southern District of Ohio (the "Court"). Leave to file the Profit Sharing Complaint was granted by the Court in October 2013. In its Profit Sharing Complaint, the Committee alleged the Company breached the 1993 Settlement Agreement and violated ERISA by failing to properly calculate profit sharing contributions due under the Supplemental Benefit Trust Profit Sharing Plan. The Committee seeks damages in excess of $50 million , injunctive relief and reimbursement of attorneys' fees and costs. Following the resolution of a procedural dispute by the U.S. Court of Appeals for the 6th Circuit, in May 2015, the Court ordered that the claims in the Profit Sharing Complaint be arbitrated pursuant to the dispute resolution procedures in the Supplemental Benefit Trust Profit Sharing Plan. In November 2015, the Company and the Committee selected an arbitrator and the discovery process commenced. On August 1, 2016, the parties submitted briefs on issues related to the scope of the arbitration. On June 29, 2017, the arbitrator ruled, among other things, that the arbitration will include Supplemental Benefit Trust Profit Sharing Plan calculations for the years ending October 31, 2001 through October 31, 2014. On May 2, 2018, the Committee submitted to the arbitrator a proposed schedule for the presentation of the issues to be addressed in the arbitration. On September 21, 2018, the arbitrator set a schedule to rule on all issues and determine final calculations in April 2020. As noted under “Retiree Health Care Litigation” below, on August 14, 2018, the Company filed a motion to schedule a status hearing, in which the Company requested an in-person hearing to discuss global resolution of various disputes under the 1993 Settlement Agreement, including the pending Profit Sharing Complaint. As a result, in-person hearings were held on November 2, 2018 and February 22, 2019. Additional hearings may be scheduled in the future. In addition, various local bargaining units of the UAW have filed separate grievances pursuant to the profit sharing plans under various collective bargaining agreements in effect between the Company and the UAW that may have similar legal and factual issues as the Profit Sharing Complaint. Based on our assessment of the facts underlying the claims in the above actions, we are unable to provide meaningful quantification of how the final resolution of these claims may impact our future consolidated financial condition, results of operations, or cash flows. Retiree Health Care Litigation On October 21, 2016, two lawsuits were filed in the U.S. District Court for the Southern District of Ohio relating to postretirement healthcare and life insurance obligations under the 1993 Settlement Agreement. The first lawsuit (the “Committee’s Complaint”) was filed by the Supplemental Benefit Program Committee. The Committee’s Complaint was filed against NIC, NI, NFC and a former affiliate, all of which are parties to the 1993 Settlement Agreement. Since January 1, 2012, the Navistar, Inc. Retiree Health Benefit Trust, created pursuant to the 1993 Settlement Agreement (the “Base Trust”), has received certain Medicare Part D subsidies from the federal Centers for Medicare and Medicaid Services that were made available for prescription drug benefits provided to Medicare-eligible seniors pursuant to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 and has also received certain Medicare Part D coverage-gap discounts from prescription drug manufacturers that were made available to eligible seniors pursuant to the Patient Protection and Affordable Care Act (collectively, the “Subsidies”). The Committee alleges, among other things, that the defendants breached the 1993 Settlement Agreement since January 1, 2012 by causing the Base Trust to allocate the Subsidies in a manner that improperly decreased the defendants’ contributions to the Base Trust and increased retiree contributions. The Committee seeks damages, attorneys’ fees and costs for all alleged violations of the 1993 Settlement Agreement, including approximately $26 million which the Committee alleges is the eligible retirees’ “fair share” of the Subsidies that were allegedly misappropriated by the defendants from January, 2012 through April, 2015. The second lawsuit was filed by two individual members of the Committee (the “Committee Members”) who are retirees and participants in the Navistar, Inc. Health Benefit and Life Insurance Plan (the “Plan”) created pursuant to the 1993 Settlement Agreement. The Committee Members’ complaint (the “Committee Members’ Complaint”) was filed against NIC, NI, NFC and certain other former or current affiliates, all of which are parties or employers as defined in the 1993 Settlement Agreement. The Committee Members allege, among other things, that the Company violated the terms of the Plan, breached a fiduciary duty under ERISA, and engaged in ERISA-prohibited transactions by improperly using the Plan’s assets (a portion of the Subsidies) for the Company’s benefit. The Committee Members request that the court order the defendants to restore all losses to the Base Trust, including approximately $26 million , which the Committee Members allege is the Plan participants’ “fair share” of the Subsidies that were allegedly misappropriated by the defendants from January 2012 through April 2015. The Committee Members also request that the court enjoin the defendants from alleged future violations of the Plan and ERISA with respect to treatment of the Subsidies, order the defendants to remedy all alleged ERISA-prohibited transactions and pay the Committee Members’ attorneys’ fees and costs. The defendants filed motions to dismiss each respective complaint on January 10, 2017. On May 10, 2017, the court dismissed the Committee's Complaint with prejudice, stating that the Committee lacked standing to bring its claims. With respect to the Committee Members’ Complaint, the court declined to dismiss the complaint, but ordered the parties to conduct discovery regarding whether the Committee Members’ Complaint is barred by the applicable statute of limitations and to file a motion for summary judgment thereafter on that issue of timeliness. The defendants filed their motion for summary judgment on September 21, 2017, the Committee Members’ filed their opposition on November 2, 2017, and the defendants filed their reply on November 22, 2017. On June 26, 2018, the court conditionally overruled the defendants’ motion for summary judgment. The court bifurcated the case and conducted a trial on the issue of whether the Committee Members’ Complaint is barred by the applicable statute of limitations in September 2018. On November 20, 2018, the Committee Members filed a motion for sanctions, alleging various discovery and trial misconduct by the defendants and requesting that the court enter judgment in favor of the Committee Members with respect to the statute of limitations issue and award attorneys’ fees to the Committee Members. On December 11, 2018, the defendants filed their opposition to the Committee Members’ motion for sanctions, and the motion is pending with the court. On August 14, 2018, under the original Shy et. al. v. Navistar International Corporation, Civil Action No. 3:92-CV-333 (S.D. Ohio 1992), we filed a motion to schedule a status hearing to request an in-person hearing to discuss global resolution of various disputes under the 1993 Settlement Agreement, including but not limited to resolving the pending Profit Sharing Complaint and Committee Members’ Complaint described above. As a result, in-person hearings were held on November 2, 2018 and February 22, 2019. Additional hearings may be scheduled in the future. Based on our assessment of the facts underlying the claims in the above actions, we are unable to provide meaningful quantification of how the final resolution of these claims may impact our future consolidated financial condition, results of operations, or cash flows. FATMA Notice International Indústria Automotiva da América do Sul Ltda. ("IIAA"), formerly known as Maxion International Motores S/A ("Maxion"), now a wholly owned subsidiary of the Company, received a notice (the “FATMA Notice”) in July 2010 from the State of Santa Catarina Environmental Protection Agency ("FATMA") in Brazil. The FATMA Notice alleged that Maxion sent waste to a facility owned and operated by a company known as Natureza (the “Natureza Facility”) and that soil and groundwater contamination had occurred at the Natureza Facility. The FATMA 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, 2019 ), 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. In addition to the matter described above, there is a suit pending in the federal court of Brazil in which the federal district attorney has sued (a) FATMA, for claims related to FATMA’s actions in connection with licensing and inspection procedures related to the Natureza Facility, and (b) Selamix, as the current owner of the Natureza Facility. In this federal suit, Selamix was found liable for the contamination at the Natureza Facility due to it being the successor owner of the facility. However, the federal court’s decision does not prohibit Selamix from seeking to recover its damages from third parties that contributed to the contamination at the Natureza Facility. In connection with the FATMA Notice, IIAA presented a motion to the district attorney of the State of Santa Catarina (the “SC District Attorney”) to set forth its defenses and correct inaccuracies in the FATMA Notice in August 2017. In September 2017, the SC District Attorney informed IIAA that it intended to present a Consent Agreement to all of the companies that sent waste to Natureza to determine the allocation of the liability for generating the waste which led to the contamination of the Natureza Facility. IIAA then filed a motion requesting that the SC District Attorney consider certain facts and circumstances prior to presenting the Consent Agreement. In January 2018, the SC District Attorney, local and state authorities, Selamix, IIAA and the 14 other companies that are alleged to have significantly contributed to the contamination met to discuss the matter. Selamix then presented three proposals for conducting a preliminary environmental assessment in the area to determine the allocation of liability among the companies. In March 2018, Selamix informed the SC District Attorney that it would voluntarily conduct a preliminary environmental study at the Natureza Facility in an attempt to determine and allocate the liability for the contamination pursuant to an agreement with all of the companies after the study is completed. The SC District Attorney agreed to suspend further inquiry into the matter until Selamix’s study had been completed. The other companies involved in the matter have expressed an interest in having an independent environmental study conducted. The SC District Attorney has indicated that it may consider requiring an independent environmental study after Selamix’s environmental study is completed. In June 2018, Selamix presented its Environmental Preliminary Assessment Report to the SC District Attorney and the other companies alleged to have contributed to the contamination and the report indicated that the entire property should be subject to further studies to confirm the type and extent of the contamination due to signs of buried residues in several areas. Selamix also presented commercial proposals from two additional different companies specializing in environmental studies to perform the next steps of the technical work. The SC District Attorney then requested a third commercial proposal which will be presented and paid for by Selamix. A new district attorney recently assumed responsibility for this matter and we are awaiting its analysis of the actions to date. IIAA continues to dispute the allegations in the FATMA Notice and intends to continue to vigorously defend itself. Currently, no demands or offers are outstanding. Sao Paulo Groundwater Notice In March 2014, IIAA, along with other nearby companies, received from the Sao Paulo District Attorney (the "District Attorney") a notice and proposed Consent Agreement relating to alleged neighborhood-wide groundwater contamination at or around its Sao Paulo manufacturing facility. The proposed Consent Agreement sought certain groundwater investigations and other technical relief and proposed sanctions in the amount of R $3 million (the equivalent of approximately less than US $1 million at January 31, 2019 ). In November 2014, IIAA extended a settlement offer. The parties remained in discussions and IIAA’s settlement offer was never accepted, rejected or countered by the District Attorney. On August 31, 2016, the District Attorney filed civil actions against IIAA and other companies in the Central Forum of the capital of the State of São Paulo seeking soil and groundwater investigation and remediation, together with monetary payment in an unspecified amount. IIAA filed its defense to the civil action on January 26, 2017, alleging that IIAA has made all necessary investigations and has taken remedial measures to address the contamination and that Companhia Ambiental do Estado de São Paulo ("CETESB"), the environmental agency of São Paulo State, has agreed to the remedial measures taken by IIAA. On June 20, 2017, IIAA presented a petition requesting a 90-day suspension of the lawsuit. IIAA has since held and is currently engaged in discussions with the District Attorney regarding settlement of this matter. The District Attorney agreed to an initial suspension on June 30, 2017 and a subsequent suspension for an additional 90 days which ended on July 9, 2018. A new district attorney (the “New District Attorney”) assumed responsibility for the case in February 2018. The New District Attorney would like the companies involved to try to reach a settlement agreement as to the remediation efforts to be taken after having discussions and negotiations with the New District Attorney’s technical experts. IIAA attempted to schedule a meeting with the New District Attorney’s technical experts. IIAA met with the New District Attorney on July 25, 2018. The New District Attorney has indicated that he will request information related to the status of the current remediation from CETESB. After receiving that information, the New District Attorney has indicated that he will schedule a meeting with IIAA to discuss the proposed terms of a potential settlement agreement and granted a third suspension on August 14, 2018 which ended on November 14, 2018. Although the suspension has technically terminated, the New District Attorney continues to evaluate the possibility of settlement. There are no current demands or offers outstanding. MaxxForce Engine EGR Warranty Litigation On June 24, 2014, N&C Transportation Ltd. ("N&C") filed a putative class action lawsuit against NIC, NI, Navistar Canada Inc., and Harbour International Trucks in Canada in the Supreme Court of British Columbia (the "N&C Action"). Subsequently, seven additional, similar putative class action lawsuits have been filed in Canada (together with the N&C Action, the "Canadian Actions"). From June 13-17, 2016, the court conducted a certification hearing in the N&C Action. On November 16, 2016, the court certified a Canada-wide class comprised of persons who purchased heavy-duty trucks equipped with Advanced EGR MaxxForce 11, MaxxForce 13, and MaxxForce 15 engines designed to meet 2010 EPA regulations. The court in the N&C Action denied certification to persons who operated but did not buy the trucks in question. On November 2, 2017, NIC, NI, Navistar Canada Inc. and Harbour International Trucks filed a notice of appeal. On December 8, 2017, the plaintiff filed a notice of cross-appeal. Both the appeal and cross-appeal were heard by the British Columbia Court of Appeal on February 9, 2018. On August 1, 2018, the appellate court denied our appeal and granted, in part, N&C's cross-appeal and as such certified three narrow issues on whether misrepresentations were made in Navistar's advertising materials. On September 28, 2018, Navistar sought leave to appeal the certification decision to the Supreme Court of Canada and such leave is still pending. Aside from that application, the next step will be an attendance before the case management judge regarding the details of the notice of certification to be given to the class. No date for this attendance has been set. On June 5, 2017, a hearing was held in the Quebec putative class action lawsuit captioned 4037308 Canada Inc. v. Navistar Canada Inc., NI, and NIC. At that hearing, the court ruled on certain motions regarding evidence related to certification but deferred a ruling on plaintiff’s proposed amendment to narrow the proposed class to Quebec-only purchasers and lessees of model year 2010-13 vehicles containing MaxxForce 11, 13, and 15 liter engines. On November 23, 2017, we filed a motion to stay the Quebec case until the British Columbia Court of Appeal rules on the certification order in the N&C Action. The stay motion was granted on December 7, 2017. The decision of the British Columbia Court of Appeal was provided to the Quebec court. On September 6, 2018, the stay was extended until the Supreme Court of Canada decides the application for leave to appeal in the N&C Action. In the Manitoba putative class action lawsuit captioned Vern Brown v. Navistar International Corporation and Navistar Canada, Inc., the court held a case management conference on June 29, 2018, after the plaintiff failed to file a complete certification record by the previously court-ordered due date. The plaintiff advised that it expected to file its remaining certification affidavits by August 31, 2018, and the court suspended certification scheduling in the interim. The plaintiff filed an additional affidavit on July 5, 2018. On September 5, 2018, the court adjourned the certification application indefinitely to allow the plaintiff to obtain an expert report. There are no certification or other hearings scheduled in any of the other Canadian Actions at this time. On July 7, 2014, Par 4 Transport, LLC filed a putative class action lawsuit against NI in the United States District Court for the Northern District of Illinois (the "Par 4 Action"). Subsequently, seventeen additional putative class action lawsuits were filed in various United States district courts, including the Northern District of Illinois, the Eastern District of Wisconsin, the Southern District of Florida, the Middle District of Pennsylvania, the Southern District of Texas, the Western District of Kentucky, the District of Minnesota, the Northern District of Alabama, and the District of New Jersey (together with the Par 4 Action, the "U.S. Actions"). Some of the U.S. Actions name both NIC and NI, and allege matters substantially similar to the Canadian Actions. More specifically, the Canadian Actions and the U.S. Actions (collectively, the "EGR Class Actions") seek to certify a class of persons or entities in Canada or the United States who purchased and/or leased a ProStar or other Navistar vehicle equipped with a model year 2008-2013 MaxxForce Advanced EGR engine. In substance, the EGR Class Actions allege that the MaxxForce Advanced EGR engines are defective and that the Company and NI failed to disclose and correct the alleged defect. The EGR Class Actions assert claims based on theories of contract, breach of warranty, consumer fraud, unfair competition, misrepresentation and negligence. The EGR Class Actions seek relief in the form of monetary damages, punitive damages, declaratory relief, interest, fees, and costs. On October 3, 2014, NIC and NI filed a motion before the United States Judicial Panel on Multidistrict Litigation (the "MDL Panel") seeking to transfer and consolidate before Judge Joan B. Gottschall of the United States District Court for the Northern District of Illinois all of the then-pending U.S. Actions, as well as certain non-class action MaxxForce Advanced EGR engine lawsuits pending in various federal district courts. On December 17, 2014, Navistar's motion to consolidate the U.S. Actions and certain other non-class action lawsuits was granted. The MDL Panel issued an order consolidating all of the U.S. Actions that were pending on the date of Navistar’s motion before Judge Gottschall in the United States District Court for the Northern District of Illinois (the "MDL Action"). The MDL Panel also consolidated into the MDL Action certain non-class action MaxxForce Advanced EGR engine lawsuits pending in the various federal district courts. Non-class federal lawsuits presenting pre-trial issues similar to the MDL Action continue to be transferred to the MDL Action. Approximately 27 such actions are currently pending. At the request of the various law firms representing the plaintiffs in the MDL Action, on March 5, 2015, Judge Gottschall entered an order in the MDL Action appointing interim lead counsel and interim liaison counsel for the plaintiffs. On May 11, 2015, lead counsel for the plaintiffs filed a First Master Consolidated Class Action Complaint ("Consolidated Complaint"). The parties to the MDL Action exchanged initial disclosures on May 29, 2015. The Company answered the Consolidated Complaint on July 13, 2015. On September 22, 2016, lead counsel for the plaintiffs filed a First Amended Consolidated Class Action Complaint (the “Amended Consolidated Complaint”). The Amended Consolidated Complaint added twenty-five additional named plaintiffs. NI and NIC answered the Amended Consolidated Complaint on October 20, 2016. On May 27, 2016, Judge Gottschall entered a Case Management Order setting a July 13, 2017 date for plaintiffs' class certification motion. On November 30, 2016, the court entered an order referring discovery matters to a magistrate judge for supervision. Pursuant to the magistrate’s order, the parties jointly filed a new proposed case management order on January 25, 2017, which extended the fact discovery deadline to November 22, 2017. On January 31, 2017, the parties filed a joint motion with Judge Gottschall requesting adjustment of the class action briefing schedule to April 24, 2018. On February 2, 2017, Judge Gottschall granted the parties' motion extending the deadline to complete the class certification briefing to April 24, 2018. On February 6, 2017, the magistrate approved the parties' schedule set forth in the case management order jointly filed on January 25, 2017. In September 2017, the plaintiffs filed a motion to further extend the case deadlines. On October 5, 2017, Judge Gottschall entered an Agreed Order Extending the Discovery Cutoff ordering that fact discovery relevant to class certification be completed by March 13, 2018 and that the class certification briefing be completed by July 31, 2018. On March 5, 2018, Judge Gottschall extended the fact discovery deadline to May 25, 2018. Subsequent extensions followed. Fact discovery relevant to class certification is now substantially complete. On October 13, 2017, lead counsel for the plaintiffs filed a Motion for Leave to File a Second Amended Consolidated Class Action Complaint, as well as a Motion for Voluntary Dismissal of Claims without Prejudice relating to 15 previously named plaintiffs. On January 4, 2018, Judge Gottschall granted both motions. On January 9, 2018, the plaintiffs filed a Second Amended Consolidated Class Action Complaint. The Second Amended Consolidated Class Action Complaint removed 15 named plaintiffs and substituted in eight new named plaintiffs. As a r |
Segment Reporting
Segment Reporting | 3 Months Ended |
Jan. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The following is a description of our four reporting segments: • Our Truck segment manufactures and distributes Class 4 through 8 trucks, buses, and military vehicles under the International and IC Bus ("IC") brands, and produces engines under our proprietary brand name and parts required to support the military truck lines. This segment sells its products in the U.S., Canada, and Mexico markets, as well as through our export truck business. In an effort to strengthen and maintain our dealer network, this segment occasionally acquires and operates dealer locations for the purpose of transitioning ownership. • Our Parts segment provides customers with proprietary products needed to support the International commercial truck, IC Bus, proprietary engine lines, and export parts business, as well as our other product lines. Our Parts segment also provides a wide selection of other standard truck, trailer, and engine aftermarket parts. Also included in the Parts segment are the operating results of BDP, which manages the sourcing, merchandising, and distribution of certain service parts we sell to Ford in North America. • Our Global Operations segment primarily consists of Brazil engine operations which produce diesel engines under contract manufacturing arrangements, as well as under the MWM brand, for sale to original equipment manufacturers (OEMs) in South America. In addition, our Global Operations segment includes the operating results of our former joint venture in China with Anhui Jianghuai Automobile Co ("JAC"). • Our Financial Services segment provides retail, wholesale, and lease financing of products sold by the Truck and Parts segments and their dealers within the U.S. and Mexico, as well as financing for wholesale accounts and selected retail accounts receivable. This segment also facilitates financing relationships in other countries to support our Manufacturing Operations. Corporate contains those items that are not included in our four segments. Segment Profit (Loss) We define segment profit (loss) as net income (loss) attributable to NIC, excluding income tax benefit (expense). Selected financial information from our Consolidated Statements of Operations and our Consolidated Balance Sheets is as follows: (in millions) Truck Parts Global Operations Financial (A) Corporate Total Three Months Ended January 31, 2019 External sales and revenues, net $ 1,776 $ 546 $ 61 $ 47 $ 3 $ 2,433 Intersegment sales and revenues 21 2 12 27 (62 ) — Total sales and revenues, net $ 1,797 $ 548 $ 73 $ 74 $ (59 ) $ 2,433 Net income (loss) attributable to NIC $ 90 $ 144 $ 6 $ 31 $ (260 ) $ 11 Income tax benefit — — — — 19 19 Segment profit (loss) $ 90 $ 144 $ 6 $ 31 $ (279 ) $ (8 ) Depreciation and amortization $ 26 $ 1 $ 2 $ 16 $ 3 $ 48 Interest expense — — — 29 56 85 Equity in income (loss) of non-consolidated affiliates 1 1 (1 ) — (1 ) — Capital expenditures (B) 31 2 1 1 9 44 (in millions) Truck Parts Global Operations Financial (A) Corporate Total Three Months Ended January 31, 2018 External sales and revenues, net $ 1,228 $ 564 $ 72 $ 38 $ 3 $ 1,905 Intersegment sales and revenues 23 4 9 21 (57 ) — Total sales and revenues, net $ 1,251 $ 568 $ 81 $ 59 $ (54 ) $ 1,905 Net income (loss) attributable to NIC $ (7 ) $ 137 $ (7 ) $ 20 $ (216 ) $ (73 ) Income tax expense — — — — (15 ) (15 ) Segment profit (loss) $ (7 ) $ 137 $ (7 ) $ 20 $ (201 ) $ (58 ) Depreciation and amortization $ 35 $ 2 $ 3 $ 13 $ 2 $ 55 Interest expense — — — 21 58 79 Equity in income (loss) of non-consolidated affiliates — 1 (1 ) — — — Capital expenditures (B) 25 — 1 — 4 30 (in millions) Truck Parts Global Operations Financial (A) Corporate and Eliminations Total Segment assets, as of: January 31, 2019 $ 2,031 $ 676 $ 316 $ 2,618 $ 1,396 $ 7,037 October 31, 2018 2,085 636 331 2,648 1,530 7,230 _________________________ (A) Total sales and revenues in the Financial Services segment include interest revenues of $53 million and $41 million for the three months ended January 31, 2019 and 2018 , respectively. (B) Exclusive of purchases of equipment leased to others. |
Stockholders' Deficit
Stockholders' Deficit | 3 Months Ended |
Jan. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Deficit | Stockholders' Deficit Accumulated Other Comprehensive Loss The following table presents changes in Accumulated other comprehensive loss, net of tax, included in our Consolidated Statements of Stockholders' Deficit : (in millions) Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2018 $ (315 ) $ (1,605 ) $ (1,920 ) Other comprehensive loss before reclassifications 14 (8 ) 6 Amounts reclassified out of accumulated other comprehensive loss — 123 123 Net current-period other comprehensive income 14 115 129 Balance as of January 31, 2019 $ (301 ) $ (1,490 ) $ (1,791 ) (in millions) Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2017 $ (283 ) $ (1,928 ) $ (2,211 ) Other comprehensive loss before reclassifications 22 (2 ) 20 Amounts reclassified out of accumulated other comprehensive loss — 37 37 Net current-period other comprehensive income 22 35 57 Balance as of January 31, 2018 $ (261 ) $ (1,893 ) $ (2,154 ) The following table presents the amounts reclassified from Accumulated other comprehensive loss and the affected line item in our Consolidated Statements of Operations: Three Months Ended January 31, Location in Consolidated 2019 2018 Defined benefit plans Amortization of actuarial loss Other expense, net $ 24 $ 28 Settlements Other expense, net 142 9 Total before tax 166 37 Income tax benefit (43 ) — Total reclassifications for the period, net of tax $ 123 $ 37 |
Earnings (Loss) Per Share Attri
Earnings (Loss) Per Share Attributable to Navistar International Corporation | 3 Months Ended |
Jan. 31, 2019 | |
Earnings Per Share [Abstract] | |
Loss Per Share Attributable to Navistar International Corporation | Earnings (Loss) Per Share Attributable to Navistar International Corporation The following table presents the information used in the calculation of our basic and diluted earnings (loss) per share all attributable to NIC in our Consolidated Statements of Operations: Three Months Ended January 31, (in millions, except per share data) 2019 2018 Numerator: Net income (loss) attributable to Navistar International Corporation common stockholders $ 11 $ (73 ) Denominator: Weighted average shares outstanding: Basic 99.1 98.6 Effect of dilutive securities 0.3 — Diluted 99.4 98.6 Earnings (loss) per share attributable to Navistar International Corporation: Basic $ 0.11 $ (0.74 ) Diluted 0.11 (0.74 ) The conversion rate on our 4.5% Senior Subordinated Convertible Notes due 2018 (the "2018 Convertible Notes") was 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 had an anti-dilutive effect when calculating diluted earnings per share when our average stock price was less than $58.40 . The 2018 Convertible Notes were fully repaid upon maturity in October 2018, and none were converted into our common stock. The conversion rate on our 4.75% Senior Subordinated Convertible Notes due 2019 (the “2019 Convertible Notes”) is 18.4946 shares of common stock per $1,000 principal amount of 2019 Convertible Notes, equivalent to an initial conversion price of approximately $54.07 per share of common stock. The 2019 Convertible Notes have an anti-dilutive effect when calculating diluted earnings per share when our average stock price is less than $54.07 . The computation of diluted earnings per share also excludes outstanding options and other common stock equivalents in periods where inclusion of such potential common stock instruments would be anti-dilutive. For the three months ended January 31, 2019 , certain securities have been excluded from the computation of earnings per share, as our average stock price during the period was less than their respective exercise prices. For the three months ended January 31, 2019 , the aggregate shares not included were 9.9 million . For the three months ended January 31, 2018 , no dilutive securities were included in the computation of diluted earnings per share because they would have been anti-dilutive due to the net loss attributable to NIC. Additionally, certain securities have been excluded from the computation of earnings per share, as our average stock price during the period was less than their respective exercise prices. For the three months ended January 31, 2018 , the aggregate shares not included were 14.3 million . For the three months ended January 31, 2019 , the aggregate shares not included in the computation of earnings per share were primarily comprised of 7.6 million shares related to the 2019 Convertible Notes. For the three months ended January 31, 2018 , 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jan. 31, 2019 | |
Inventory [Line Items] | |
Product Warranty Disclosure [Text Block] | Product Warranty Liability The following table presents accrued product warranty and deferred warranty revenue activity: Three Months Ended January 31, (in millions) 2019 2018 Balance at beginning of period $ 529 $ 629 Costs accrued and revenues deferred 52 29 Adjustments to pre-existing warranties (A) (7 ) (6 ) Payments and revenues recognized (68 ) (79 ) Other adjustments (B) 12 — Balance at end of period 518 573 Less: Current portion 257 287 Noncurrent accrued product warranty and deferred warranty revenue $ 261 $ 286 _________________________ (A) Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior fiscal 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. |
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 and our Financial Services operations, including VIEs of which we are the primary beneficiary. The effects of transactions among consolidated entities have been eliminated to arrive at the consolidated amounts. We prepared the accompanying unaudited consolidated financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by U.S. GAAP for comprehensive annual financial statements. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended October 31, 2018 , which should be read in conjunction with the disclosures therein. In our opinion, these interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial condition, results of operations, and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results. |
Variable Interest Entities | Variable Interest Entities We have an interest in several VIEs, primarily joint ventures, established to manufacture or distribute products and enhance our operational capabilities. We have determined for certain of our VIEs that we are the primary beneficiary because we have the power to direct the activities of the VIE that most significantly impact its economic performance and we have the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. Accordingly, we include in our consolidated financial statements the assets and liabilities and results of operations of those entities, even though we may not own a majority voting interest. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather they represent claims against the specific assets of these VIEs. Assets of these entities are not readily available to satisfy claims against our general assets. We are the primary beneficiary of our Blue Diamond Parts, LLC ("BDP") joint venture with Ford Motor Company ("Ford"). As a result, our Consolidated Balance Sheets include assets of $26 million and $39 million and liabilities of $3 million and $4 million as of January 31, 2019 and October 31, 2018 , respectively, including $4 million of cash and cash equivalents, at both 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 $1.0 billion and $994 million as of January 31, 2019 and October 31, 2018 , respectively, and liabilities of $902 million and $852 million as of January 31, 2019 and October 31, 2018 , 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 $359 million and $370 million as of January 31, 2019 and October 31, 2018 , respectively, and corresponding liabilities of $181 million and $205 million , at the respective dates, which are related to other secured transactions that do not qualify for sale accounting treatment, and, therefore, are treated as borrowings secured by operating and finance leases. Investors that hold securitization debt have a priority claim on the cash flows generated by their respective securitized assets to the extent that the related VIEs are required to make principal and interest payments. Investors in securitizations of these entities have no recourse to our general credit. We also have an interest in other VIEs, which we do not consolidate because we are not the primary beneficiary. Our financial support and maximum loss exposure relating to these non-consolidated VIEs are not material to our financial condition, results of operations, or cash flows. We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in income of non-consolidated affiliates includes our share of the net income of these entities. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, pension and other postretirement benefits, allowance for doubtful accounts, income tax contingency accruals and valuation allowances, product warranty accruals, asbestos and other product liability accruals, asset impairment charges, restructuring charges and litigation-related accruals. Actual results could differ from our estimates. |
Concentration Risk Disclosure [Text Block] | Concentration Risks Our financial condition, results of operations, and cash flows are subject to concentration risks related to our significant unionized workforce. As of January 31, 2019 , approximately 8,700 , or 99% , of our hourly workers and approximately 700 , or 13% , of our salaried workers, are represented by labor unions and are covered by collective bargaining agreements. |
Inventory, Policy [Policy Text Block] | Inventories are valued at the lower of cost and net realizable value ("NRV"). Cost is principally determined using the first-in, first-out method. Our gross used truck inventory was $169 million at January 31, 2019 compared to $154 million at October 31, 2018 , offset by reserves of $33 million and $31 million , respectively. |
New Accounting Pronouncements, Policy [Policy Text Block] | In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory” (Topic 740). This ASU update requires entities to recognize the income tax consequences of many intercompany asset transfers at the transaction date. The seller and buyer will immediately recognize the current and deferred income tax consequences of an intercompany transfer of an asset other than inventory. The tax consequences were previously deferred. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. We adopted this ASU on November 1, 2018 with no material impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments” (Topic 230). This ASU provides guidance on how entities should classify eight specific cash flow transactions for which diversity in practice exists. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. We adopted this ASU on November 1, 2018 with no material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (“ASC 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. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, which postponed the effective date of ASU No. 2014-09 to fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted on the original effective date for fiscal years beginning after December 15, 2016. We analyzed the impact of the ASU on our portfolio of customer contracts which resulted in changes in the timing and the amount of revenue recognized and gross versus net accounting for certain revenue streams in comparison with current guidance. On November 1, 2018, we adopted the new accounting standard ASC 606, "Revenue from Contracts with Customers" and all the related amendments (“new revenue standard”) using the modified retrospective method to all contracts. Based on our assessment, the cumulative effect adjustment upon adoption of the new revenue standard had a $27 million impact on our Accumulated deficit. The primary impacts include an increase in Accumulated deficit due to an increase in the refund liability owed to our customers for future returns of core components. Previously our refund liability was recorded net of our future trade-in value to our suppliers. Under the new revenue standard, we record a liability for the amounts owed to our customers and a deposit asset for the amount we are currently eligible to receive from our suppliers. An additional increase relates to a change in the recognition pattern of revenue for extended warranty contracts. Revenue from these contracts was recognized on a straight-line basis over the life of the contract. Under the new revenue standard, revenue for extended warranty contracts is recorded in proportion to the costs expected to be incurred in satisfying the obligations based on historical cost patterns over the life of similar contracts. The increase in Accumulated deficit is partially offset by certain contracts where revenue recognition occurred as units were delivered and accepted. Under the new revenue standard, when the contract transfers control of a good to a customer as services or production occurs, revenue is recognized over time. An additional decrease in Accumulated deficit relates to certain sales that were recorded as leases or borrowings as we retained substantial risks of ownership. Under the new revenue standard, revenue is recognized upon transfer of control for these transactions, less the value of any guarantees provided to the customer. The adoption of the new revenue standard resulted in changes in the classification of Sales and revenues, net and Costs of products sold in our Consolidated Statements of Operations . The new revenue standard also resulted in changes in the classification of certain assets and liabilities in our Consolidated Balance Sheets . We have revised our relevant policy and procedures and provided expanded revenue recognition disclosures based on the new qualitative and quantitative disclosure requirements of the standard in Note 2, Revenue . The cumulative effects of the adjustments made to our November 1, 2018 Consolidated Balance Sheet for the adoption of the new revenue standard were as follows: (in millions) Balance at October 31, 2018 Change Due to New Standard Balance at November 1, 2018 ASSETS Current assets Trade and other receivables, net $ 456 $ (8 ) $ 448 Inventories, net 1,110 (91 ) 1,019 Other current assets 189 101 290 Total current assets 5,136 2 5,138 Property and equipment, net 1,370 (109 ) 1,261 Deferred taxes, net 121 1 122 Other noncurrent assets 113 (3 ) 110 Total assets $ 7,230 $ (109 ) $ 7,121 LIABILITIES and STOCKHOLDERS’ DEFICIT Liabilities Current liabilities Notes payable and current maturities of long-term debt $ 946 $ (15 ) $ 931 Other current liabilities 1,255 13 1,268 Total current liabilities 3,807 (2 ) 3,805 Long-term debt 4,521 (58 ) 4,463 Other noncurrent liabilities 731 (22 ) 709 Total liabilities 11,156 (82 ) 11,074 Stockholders’ deficit Total stockholders’ deficit attributable to Navistar International Corporation (3,931 ) (27 ) (3,958 ) Total liabilities and stockholders’ deficit $ 7,230 $ (109 ) $ 7,121 The following reconciles amounts as they would have been reported under the prior standard to current reporting: Three months ended January 31, 2019 (A) (in millions) Under Prior Standard Effects of New Standard As Reported Sales of manufactured products, net $ 2,390 $ (4 ) $ 2,386 Costs of products sold 1,986 (7 ) 1,979 Interest expense 86 (1 ) 85 Income (loss) before income tax (6 ) 4 (2 ) Income tax benefit 20 (1 ) 19 Net income $ 14 $ 3 $ 17 ______________________ (A) Our Consolidated Statements of Operations for the three months ended January 31, 2019 includes two months of the operating activity of Navistar Defense prior to the sale of a majority interest in our defense business. See Note 3 Restructuring, Impairments and Divestitures for additional information. As of January 31, 2019 (A) (in millions) Under Prior Standard Effects of New Standard As Reported ASSETS Current assets Trade and other receivables, net $ 441 $ (12 ) $ 429 Inventories, net 1,260 (49 ) 1,211 Other current assets 222 69 291 Total current assets 5,066 8 5,074 Property and equipment, net 1,402 (127 ) 1,275 Other noncurrent assets 101 (3 ) 98 Total assets $ 7,159 $ (122 ) $ 7,037 LIABILITIES and STOCKHOLDERS’ DEFICIT Liabilities Current liabilities Notes payable and current maturities of long-term debt $ 957 $ (15 ) $ 942 Other current liabilities 1,195 30 1,225 Total current liabilities 3,636 15 3,651 Long-term debt 4,607 (55 ) 4,552 Other noncurrent liabilities 734 (48 ) 686 Total liabilities 10,938 (88 ) 10,850 Stockholders’ deficit Total stockholders’ deficit attributable to Navistar International Corporation (3,782 ) (34 ) (3,816 ) Total liabilities and stockholders’ deficit $ 7,159 $ (122 ) $ 7,037 _________________________ (A) Our Consolidated Balance Sheet as of January 31, 2019 does not include the impact of Navistar Defense due to the sale of a majority interest in our defense business. See Note 3, Restructuring, Impairments and Divestitures for additional information. Recently Issued Accounting Standards In August 2018, FASB issued ASU No. 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement". This ASU provides guidance on evaluating the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) and determining when the arrangement includes a software license. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. This ASU is effective for us in the first quarter of fiscal 2021. We are currently evaluating the impact of this ASU on our consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)". This ASU provides guidance on a reclassification from accumulated other comprehensive income to retained earnings for the effect of the tax rate change resulting from the Tax Act. The amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. This ASU is effective for us in the first quarter of fiscal 2020. We are currently evaluating the impact of this ASU on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments” (Topic 326). This ASU sets forth an expected credit loss model which requires the measurement of expected credit losses for financial instruments based on historical experience, current conditions and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost, and certain off-balance sheet credit exposures. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Adoption will require a modified retrospective transition. This ASU is effective for us in the first quarter of fiscal 2021. We are currently evaluating the impact of this ASU on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). This ASU requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than twelve months. The accounting by lessors will remain largely unchanged. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. This ASU is effective for us in the first quarter of fiscal 2020. We expect to adopt this ASU in the first quarter of fiscal 2020 on a modified retrospective basis by which the cumulative effect adjustment recognized in Accumulated deficit as of November 1, 2019. We will continue to evaluate the impact of this ASU on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Product Warranty Liability [Line Items] | |
Schedule of Product Warranty Liability [Table Text Block] | The following table presents accrued product warranty and deferred warranty revenue activity: Three Months Ended January 31, (in millions) 2019 2018 Balance at beginning of period $ 529 $ 629 Costs accrued and revenues deferred 52 29 Adjustments to pre-existing warranties (A) (7 ) (6 ) Payments and revenues recognized (68 ) (79 ) Other adjustments (B) 12 — Balance at end of period 518 573 Less: Current portion 257 287 Noncurrent accrued product warranty and deferred warranty revenue $ 261 $ 286 _________________________ (A) Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior fiscal 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. (B) Other adjustments include a $14 million increase in revenues deferred in connection with the adoption of the new revenue standard (as defined below regarding ASC 606), partially offset by a $2 million reduction in liability related to the sale of a majority interest in our defense business, ND Holdings, LLC (“Navistar Defense”). |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Inventory (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory, Policy [Policy Text Block] | Inventories are valued at the lower of cost and net realizable value ("NRV"). Cost is principally determined using the first-in, first-out method. Our gross used truck inventory was $169 million at January 31, 2019 compared to $154 million at October 31, 2018 , offset by reserves of $33 million and $31 million , respectively. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue The following tables disaggregate our external revenue by product type and geographic area for the three months ended January 31, 2019 (in millions): Products and Services (in millions) Truck Parts Global Operations Financial Corporate Total Three Months Ended January 31, 2019 Truck products and services (A)(B) $ 1,677 $ — $ — $ — $ 3 $ 1,680 Truck contract manufacturing 18 — — — — 18 Used trucks 51 — — — — 51 Engines — 66 45 — — 111 Parts 1 480 16 — — 497 Extended warranty contracts 29 — — — — 29 Sales of manufactured products, net 1,776 546 61 — 3 2,386 Retail financing (C) — — — 35 — 35 Wholesale financing (C) — — — 12 — 12 Sales and revenues, net $ 1,776 $ 546 $ 61 $ 47 $ 3 $ 2,433 _________________________ (A) Includes other markets primarily consisting of Bus, Export Truck and Mexico. Also includes revenue of $3 million related to certain third-party financings initially recorded as borrowings, and operating lease revenue of $1 million . (B) Includes military sales of $62 million . In December 2018, we completed the previously announced sale of a 70% equity interest in Navistar Defense. See Note 3, Restructuring, Impairments and Divestitures for additional information. (C) Retail financing and Wholesale financing revenues in the Financial Services segment include interest revenue of $13 million and $12 million , respectively, for the three months ended January 31, 2019. Geography (in millions) Truck Parts Global Operations Financial Corporate Total Three Months Ended January 31, 2019 United States $ 1,468 $ 455 $ — $ 23 $ 3 $ 1,949 Canada 135 49 — — — 184 Mexico 66 25 — 24 — 115 Brazil — — 53 — — 53 Other 107 17 8 — — 132 Sales and revenues, net $ 1,776 $ 546 $ 61 $ 47 $ 3 $ 2,433 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Our Finance receivables, net in our Consolidated Balance Sheets consist of the following: (in millions) January 31, 2019 October 31, 2018 Retail portfolio $ 713 $ 720 Wholesale portfolio 1,400 1,460 Total finance receivables 2,113 2,180 Less: Allowance for doubtful accounts 23 22 Total finance receivables, net 2,090 2,158 Less: Current portion, net (A) 1,818 1,898 Noncurrent portion, net $ 272 $ 260 _________________________ (A) The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals. |
Finance Revenues Derived From Receivables [Table Text Block] | The following table presents the components of our Finance revenues in our Consolidated Statements of Operations : Three Months Ended January 31, (in millions) 2019 2018 Retail notes and finance leases revenue $ 14 $ 11 Wholesale notes interest 31 25 Operating lease revenue 21 18 Retail and wholesale accounts interest 8 5 Gross finance revenues 74 59 Less: Intercompany revenues 27 21 Finance revenues $ 47 $ 38 |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
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, 2019 Three Months Ended January 31, 2018 (in millions) Retail Wholesale Trade and Total Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 19 $ 3 $ 28 $ 50 $ 17 $ 3 $ 28 $ 48 Provision for doubtful accounts 1 — — 1 — — 1 1 Charge-off of accounts (1 ) — — (1 ) (1 ) — — (1 ) Recoveries — — — — 1 — — 1 Other (A) 1 — — 1 1 — — 1 Allowance for doubtful accounts, at end of period $ 20 $ 3 $ 28 $ 51 $ 18 $ 3 $ 29 $ 50 ____________________ (A) Amounts include impact from currency translation. |
Impaired Financing Receivables [Table Text Block] | The following table presents information regarding impaired finance receivables: January 31, 2019 October 31, 2018 (in millions) Retail Wholesale Total Retail Wholesale Total Impaired finance receivables with specific loss reserves $ 20 $ — $ 20 $ 20 $ — $ 20 Impaired finance receivables without specific loss reserves — — — — — — Specific loss reserves on impaired finance receivables 9 — 9 9 — 9 Finance receivables on non-accrual status 20 — 20 20 — 20 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | We use the aging of our receivables as well as other inputs when assessing credit quality. The following table presents the aging analysis for finance receivables: January 31, 2019 October 31, 2018 (in millions) Retail Wholesale Total Retail Wholesale Total Current, and up to 30 days past due $ 636 $ 1,399 $ 2,035 $ 655 $ 1,459 $ 2,114 30-90 days past due 57 1 58 51 1 52 Over 90 days past due 20 — 20 14 — 14 Total finance receivables $ 713 $ 1,400 $ 2,113 $ 720 $ 1,460 $ 2,180 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | The following table presents the components of Inventories in our Consolidated Balance Sheets : (in millions) January 31, October 31, Finished products $ 739 $ 671 Work in process 163 118 Raw materials 309 321 Total inventories, net $ 1,211 $ 1,110 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | The following tables present the components of Notes payable and current maturities of long-term debt and Long-term debt in our Consolidated Balance Sheets : (in millions) January 31, 2019 October 31, 2018 Manufacturing operations Senior Secured Term Loan Credit Agreement, due 2025, net of unamortized discount of $7 at both dates, and unamortized debt issuance costs of $11 at both dates $ 1,566 $ 1,570 6.625% Senior Notes, due 2026, net of unamortized debt issuance costs of $16 and $17, respectively 1,084 1,083 4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $2 and $5, respectively, and unamortized debt issuance costs of $1 at both dates 408 405 Loan Agreement related to 6.75% Tax Exempt Bonds, due 2040, net of unamortized debt issuance costs of $5 at both dates 220 220 Financed lease obligations 52 122 Other 13 26 Total Manufacturing operations debt 3,343 3,426 Less: Current portion 437 461 Net long-term Manufacturing operations debt $ 2,906 $ 2,965 (in millions) January 31, 2019 October 31, 2018 Financial Services operations Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2023 , net of unamortized debt issuance costs of $4 at both dates $ 992 $ 948 Senior secured NFC Term Loan, due 2025, net of unamortized discount of $2 at both dates, and unamortized debt issuance costs of $4 at both dates 393 394 Bank credit facilities, at fixed and variable rates, due dates from 2019 through 2025, net of unamortized debt issuance costs of $1 and $2, respectively 616 519 Commercial paper, at variable rates, program matures in 2022 62 75 Borrowings secured by operating and finance leases, at various rates, due serially through 2024 88 105 Total Financial Services operations debt 2,151 2,041 Less: Current portion 505 485 Net long-term Financial Services operations debt $ 1,646 $ 1,556 |
(Tables)
(Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | Net periodic benefit expense included in our Consolidated Statements of Operations, and other amounts recognized in our Consolidated Statements of Stockholders' Deficit , for the three months ended January 31, 2019 and 2018 are comprised of the following: Three Months Ended January 31, Pension Benefits Health and Life (in millions) 2019 2018 2019 2018 Service cost for benefits earned during the period $ 2 $ 2 $ 1 $ 1 Interest on obligation 32 27 12 11 Amortization of cumulative loss 24 26 — 2 Settlements 142 9 — — Premiums on pension insurance 1 2 — — Expected return on assets (38 ) (40 ) (5 ) (6 ) Net periodic benefit expense $ 163 $ 26 $ 8 $ 8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial instruments measured at fair value, recurring basis | The following table presents the financial instruments measured at fair value on a recurring basis: As of January 31, 2019 As of October 31, 2018 (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Marketable securities: U.S. government and federal agency securities $ 41 $ — $ — $ 41 $ 101 $ — $ — $ 101 Derivative financial instruments: Commodity forward contracts (A) — — — — — 2 — 2 Interest rate caps (B) — 1 — 1 — 2 — 2 Total assets $ 41 $ 1 $ — $ 42 $ 101 $ 4 $ — $ 105 Liabilities Derivative financial instruments: Commodity forward contracts (C) $ — $ 1 $ — $ 1 $ — $ — $ — $ — Guarantees — — 21 21 — — 24 24 Total liabilities $ — $ 1 $ 21 $ 22 $ — $ — $ 24 $ 24 _________________________ (A) The asset value of commodity forward contracts is included in Other current assets in the accompanying Consolidated Balance Sheets . (B) The asset value of interest rate caps is included in Other noncurrent assets in the accompanying Consolidated Balance Sheets. (C) The liability value of commodity forward contracts is included in Other current liabilities in the accompanying Consolidated Balance Sheets. |
Financial instruments classified within Level 3 | The following table presents the changes for those financial instruments classified within Level 3 of the valuation hierarchy: Three Months Ended January 31, (in millions) 2019 2018 Guarantees, at beginning of period $ (24 ) $ (21 ) Transfers out of Level 3 — — Net terminations (issuances) 2 (5 ) Settlements 1 1 Guarantees, at end of period $ (21 ) $ (25 ) |
Carrying values and estimated fair values of financial instruments | As of January 31, 2019 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 196 $ 196 $ 201 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Agreement, due 2025 — — 1,563 1,563 1,566 6.625% Senior Notes, due 2026 — 1,109 — 1,109 1,084 4.75% Senior Subordinated Convertible Notes, due 2019 (A) 412 — — 412 408 Loan Agreement related to 6.75% Tax Exempt Bonds, due 2040 — 235 — 235 220 Financed lease obligations — — 52 52 52 Other (B) — — 11 11 12 Financial Services operations Asset-backed debt issued by consolidated SPEs, due serially through 2023 — — 993 993 992 Senior secured NFC Term Loan, due 2025 — — 395 395 393 Bank credit facilities, due dates from 2019 through 2025 — — 586 586 616 Commercial paper, program matures in 2022 62 — — 62 62 Borrowings secured by operating and finance leases, due serially through 2024 — — 87 87 88 As of October 31, 2018 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 180 $ 180 $ 183 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Agreement, due 2025 — — 1,597 1,597 1,570 6.625% Senior Notes, due 2026 — 1,122 — 1,122 1,083 4.75% Senior Subordinated Convertible Notes, due 2019 (A) 412 — — 412 405 Loan Agreement related to 6.75% Tax Exempt Bonds, due 2040 — 235 — 235 220 Financed lease obligations — — 122 122 122 Other — — 25 25 26 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2023 — — 949 949 948 Senior secured NFC Term Loan, due 2025 — — 400 400 394 Bank credit facilities, due dates from 2019 through 2025 — — 511 511 519 Commercial paper, at variable rates, program matures in 2022 75 — — 75 75 Borrowings secured by operating and finance leases, due serially through 2024 — — 104 104 105 _________________________ (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 estimated fair value is derived from quoted prices in active markets which include the equity feature. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of selected financial information, by segment | We define segment profit (loss) as net income (loss) attributable to NIC, excluding income tax benefit (expense). Selected financial information from our Consolidated Statements of Operations and our Consolidated Balance Sheets is as follows: (in millions) Truck Parts Global Operations Financial (A) Corporate Total Three Months Ended January 31, 2019 External sales and revenues, net $ 1,776 $ 546 $ 61 $ 47 $ 3 $ 2,433 Intersegment sales and revenues 21 2 12 27 (62 ) — Total sales and revenues, net $ 1,797 $ 548 $ 73 $ 74 $ (59 ) $ 2,433 Net income (loss) attributable to NIC $ 90 $ 144 $ 6 $ 31 $ (260 ) $ 11 Income tax benefit — — — — 19 19 Segment profit (loss) $ 90 $ 144 $ 6 $ 31 $ (279 ) $ (8 ) Depreciation and amortization $ 26 $ 1 $ 2 $ 16 $ 3 $ 48 Interest expense — — — 29 56 85 Equity in income (loss) of non-consolidated affiliates 1 1 (1 ) — (1 ) — Capital expenditures (B) 31 2 1 1 9 44 (in millions) Truck Parts Global Operations Financial (A) Corporate Total Three Months Ended January 31, 2018 External sales and revenues, net $ 1,228 $ 564 $ 72 $ 38 $ 3 $ 1,905 Intersegment sales and revenues 23 4 9 21 (57 ) — Total sales and revenues, net $ 1,251 $ 568 $ 81 $ 59 $ (54 ) $ 1,905 Net income (loss) attributable to NIC $ (7 ) $ 137 $ (7 ) $ 20 $ (216 ) $ (73 ) Income tax expense — — — — (15 ) (15 ) Segment profit (loss) $ (7 ) $ 137 $ (7 ) $ 20 $ (201 ) $ (58 ) Depreciation and amortization $ 35 $ 2 $ 3 $ 13 $ 2 $ 55 Interest expense — — — 21 58 79 Equity in income (loss) of non-consolidated affiliates — 1 (1 ) — — — Capital expenditures (B) 25 — 1 — 4 30 (in millions) Truck Parts Global Operations Financial (A) Corporate and Eliminations Total Segment assets, as of: January 31, 2019 $ 2,031 $ 676 $ 316 $ 2,618 $ 1,396 $ 7,037 October 31, 2018 2,085 636 331 2,648 1,530 7,230 (in millions) Truck Parts Global Operations Financial (A) Corporate and Eliminations Total Segment assets, as of: January 31, 2019 $ 2,031 $ 676 $ 316 $ 2,618 $ 1,396 $ 7,037 October 31, 2018 2,085 636 331 2,648 1,530 7,230 _________________________ (A) Total sales and revenues in the Financial Services segment include interest revenues of $53 million and $41 million for the three months ended January 31, 2019 and 2018 , respectively. (B) Exclusive of purchases of equipment leased to others. |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents changes in Accumulated other comprehensive loss, net of tax, included in our Consolidated Statements of Stockholders' Deficit : (in millions) Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2018 $ (315 ) $ (1,605 ) $ (1,920 ) Other comprehensive loss before reclassifications 14 (8 ) 6 Amounts reclassified out of accumulated other comprehensive loss — 123 123 Net current-period other comprehensive income 14 115 129 Balance as of January 31, 2019 $ (301 ) $ (1,490 ) $ (1,791 ) (in millions) Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2017 $ (283 ) $ (1,928 ) $ (2,211 ) Other comprehensive loss before reclassifications 22 (2 ) 20 Amounts reclassified out of accumulated other comprehensive loss — 37 37 Net current-period other comprehensive income 22 35 57 Balance as of January 31, 2018 $ (261 ) $ (1,893 ) $ (2,154 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table presents the amounts reclassified from Accumulated other comprehensive loss and the affected line item in our Consolidated Statements of Operations: Three Months Ended January 31, Location in Consolidated 2019 2018 Defined benefit plans Amortization of actuarial loss Other expense, net $ 24 $ 28 Settlements Other expense, net 142 9 Total before tax 166 37 Income tax benefit (43 ) — Total reclassifications for the period, net of tax $ 123 $ 37 |
Earnings (Loss) Per Share Att_2
Earnings (Loss) Per Share Attributable to Navistar International Corporation (Tables) | 3 Months Ended |
Jan. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation [Table Text Block] | The following table presents the information used in the calculation of our basic and diluted earnings (loss) per share all attributable to NIC in our Consolidated Statements of Operations: Three Months Ended January 31, (in millions, except per share data) 2019 2018 Numerator: Net income (loss) attributable to Navistar International Corporation common stockholders $ 11 $ (73 ) Denominator: Weighted average shares outstanding: Basic 99.1 98.6 Effect of dilutive securities 0.3 — Diluted 99.4 98.6 Earnings (loss) per share attributable to Navistar International Corporation: Basic $ 0.11 $ (0.74 ) Diluted 0.11 (0.74 ) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | ||||
Jan. 31, 2019USD ($)employeessegments | Jan. 31, 2018USD ($) | Nov. 01, 2018USD ($) | Oct. 31, 2018USD ($) | Oct. 31, 2017USD ($) | |
Accounting Policies [Line Items] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 27 | ||||
Selling, General and Administrative Expense | (186) | $ (191) | |||
Increase (Decrease) in Restricted Cash | 0 | ||||
Net Cash Provided by (Used in) Investing Activities | 74 | 15 | |||
Cash and Cash Equivalents, Period Increase (Decrease) | (53) | ||||
Cash and cash equivalents at beginning of the period | $ 1,445 | $ 840 | |||
Cash and cash equivalents at end of the period | 1,349 | 787 | |||
Sales of Manufactured Products | 2,386 | 1,867 | |||
Accounts Receivable, Net, Current | (429) | $ (448) | (456) | ||
Property and equipment, net | (1,275) | (1,261) | (1,370) | ||
Liabilities, Current | (3,651) | (3,805) | (3,807) | ||
Long-term Debt and Capital Lease Obligations | (4,552) | (4,463) | (4,521) | ||
Other Liabilities, Noncurrent | 686 | 709 | 731 | ||
Liabilities | (10,850) | (11,074) | (11,156) | ||
Assets | (7,037) | (7,121) | (7,230) | ||
Debt, Current | (942) | (931) | (946) | ||
Other Liabilities, Current | 1,225 | 1,268 | 1,255 | ||
Less: Intercompany revenues | 29 | 40 | |||
Costs of products sold | $ (1,979) | (1,532) | |||
Number Of Segments | segments | 4 | ||||
Goodwill | $ 38 | 38 | |||
Interest expense | (85) | (79) | |||
Income (Loss) Attributable to Parent, before Tax | (2) | (51) | |||
Capital expenditures | 44 | 30 | |||
Proceeds from finance lease obligations | 6 | 16 | |||
Product Warranty Accrual, Preexisting, Increase (Decrease) | $ (7) | (6) | |||
Document Type | 10-Q | ||||
Costs and Expenses, Related Party | $ 13 | 11 | |||
Accounts Receivable, Related Parties | 16 | 10 | |||
Accounts Payable, Related Parties | 37 | 25 | |||
Inventory, Gross | 169 | 154 | |||
Income Tax Expense (Benefit) | (19) | 15 | |||
Stockholders' Equity Attributable to Parent | (3,816) | (3,958) | (3,931) | ||
Inventories, net | (1,211) | (1,019) | (1,110) | ||
Other Assets, Current | 291 | 290 | 189 | ||
Assets, Current | 5,074 | 5,138 | 5,136 | ||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 123 | 122 | 121 | ||
Other Assets, Noncurrent | (98) | (110) | (113) | ||
Liabilities and Equity | (7,037) | (7,121) | (7,230) | ||
Other Operating Income (Expense), Net | 97 | 80 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 17 | (66) | |||
Unionized Employees Concentration Risk [Member] | Number Of Employees Hourly Workers [Member] | |||||
Accounting Policies [Line Items] | |||||
Concentration Risk Number Of Employees | employees | 8,700 | ||||
concentration risk number of employees percentage | 99.00% | ||||
Unionized Employees Concentration Risk [Member] | Number of Employees Salaried Workers [Member] | |||||
Accounting Policies [Line Items] | |||||
Concentration Risk Number Of Employees | employees | 700 | ||||
concentration risk number of employees percentage | 13.00% | ||||
North America Truck [Member] | |||||
Accounting Policies [Line Items] | |||||
Assets | $ (2,031) | (2,085) | |||
Interest expense | 0 | 0 | |||
Capital expenditures | 31 | 25 | |||
Income Tax Expense (Benefit) | 0 | 0 | |||
Accounting Standards Update 2017-07 [Member] | |||||
Accounting Policies [Line Items] | |||||
Selling, General and Administrative Expense | (31) | ||||
Other Operating Income (Expense), Net | 31 | ||||
Under Prior Standard [Domain] | |||||
Accounting Policies [Line Items] | |||||
Selling, General and Administrative Expense | (222) | ||||
Increase (Decrease) in Restricted Cash | 46 | ||||
Net Cash Provided by (Used in) Investing Activities | 61 | ||||
Cash and Cash Equivalents, Period Increase (Decrease) | (7) | ||||
Cash and cash equivalents at beginning of the period | 706 | ||||
Cash and cash equivalents at end of the period | 699 | ||||
Other Operating Income (Expense), Net | 49 | ||||
Accounting Standards Update 2016-18 [Member] | |||||
Accounting Policies [Line Items] | |||||
Increase (Decrease) in Restricted Cash | (46) | ||||
Net Cash Provided by (Used in) Investing Activities | (46) | ||||
Cash and Cash Equivalents, Period Increase (Decrease) | (46) | ||||
Cash and cash equivalents at beginning of the period | $ 134 | ||||
Cash and cash equivalents at end of the period | $ 88 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
Accounting Policies [Line Items] | |||||
Sales of Manufactured Products | 4 | ||||
Accounts Receivable, Net, Current | (12) | (8) | |||
Property and equipment, net | (127) | (109) | |||
Liabilities, Current | (15) | (2) | |||
Long-term Debt and Capital Lease Obligations | (55) | (58) | |||
Other Liabilities, Noncurrent | (48) | (22) | |||
Liabilities | (88) | (82) | |||
Assets | (122) | (109) | |||
Debt, Current | (15) | (15) | |||
Other Liabilities, Current | 30 | 13 | |||
Costs of products sold | (7) | ||||
Interest expense | (1) | ||||
Income (Loss) Attributable to Parent, before Tax | 4 | ||||
Income Tax Expense (Benefit) | (1) | ||||
Stockholders' Equity Attributable to Parent | (34) | (27) | |||
Inventories, net | (49) | (91) | |||
Other Assets, Current | 69 | 101 | |||
Assets, Current | 8 | 2 | |||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 1 | ||||
Other Assets, Noncurrent | (3) | (3) | |||
Liabilities and Equity | (122) | $ (109) | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 3 | ||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
Accounting Policies [Line Items] | |||||
Sales of Manufactured Products | 2,390 | ||||
Accounts Receivable, Net, Current | (441) | (456) | |||
Property and equipment, net | (1,402) | (1,370) | |||
Liabilities, Current | (3,636) | (3,807) | |||
Long-term Debt and Capital Lease Obligations | (4,607) | (4,521) | |||
Other Liabilities, Noncurrent | 734 | 731 | |||
Liabilities | (10,938) | (11,156) | |||
Assets | (7,159) | (7,230) | |||
Debt, Current | (957) | (946) | |||
Other Liabilities, Current | 1,195 | 1,255 | |||
Costs of products sold | (1,986) | ||||
Interest expense | (86) | ||||
Income (Loss) Attributable to Parent, before Tax | (6) | ||||
Income Tax Expense (Benefit) | 20 | ||||
Stockholders' Equity Attributable to Parent | (3,782) | (3,931) | |||
Inventories, net | (1,260) | (1,110) | |||
Other Assets, Current | 222 | 189 | |||
Assets, Current | 5,066 | 5,136 | |||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 121 | ||||
Other Assets, Noncurrent | (101) | (113) | |||
Liabilities and Equity | (7,159) | $ (7,230) | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 14 | ||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | |||||
Accounting Policies [Line Items] | |||||
Extended Product Warranty Accrual | $ 2 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Variable Interest Entities (Details) - USD ($) $ in Millions | Jan. 31, 2019 | Oct. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 1,201 | $ 1,320 |
Variable Interest Entity Primary Beneficiary, Blue Diamond Parts [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 26 | 39 |
Cash and cash equivalents | 4 | |
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | 3 | 4 |
Variable Interest Entity Primary Beneficiary Securitizations Treated As Borrowings [Member] | Financial Services Operations | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 1,000 | 994 |
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | 902 | 852 |
Transaction Does Not Qualify for Sale Accounting [Member] | Financial Services Operations | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 359 | 370 |
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | $ 181 | $ 205 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Product Warranty Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Oct. 31, 2018 | Oct. 31, 2017 | |
Product Liability Contingency [Line Items] | ||||
Standard and Extended Product Warranty Accrual | $ 518 | $ 573 | $ 529 | $ 629 |
Document Type | 10-Q | |||
Product Warranty Accrual, Warranties Issued | $ 52 | 29 | ||
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward: | ||||
Adjustments to pre-existing warranties(A)(B) | (7) | (6) | ||
Extended Warranty Program: | ||||
Product Warranty Accrual, Payments | (68) | (79) | ||
standard and extended product warranty other adjustments | 12 | 0 | ||
Product Warranty Accrual, Current | 257 | 287 | ||
Product Warranty Accrual, Noncurrent | 261 | $ 286 | ||
increase in deferred revenue due to adoption of 606 [Domain] | ||||
Extended Warranty Program: | ||||
Extended Product Warranty Accrual | 14 | |||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | ||||
Extended Warranty Program: | ||||
Extended Product Warranty Accrual | $ 2 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Millions | Jan. 31, 2019 | Oct. 31, 2018 |
Inventory Reserve [Line Items] | ||
Gross truck bed inventory | $ 169 | $ 154 |
Inventory reserves | $ 33 | $ 31 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Finance revenues | $ 47 | $ 38 | ||
Sales and revenues, net | 2,433 | 1,905 | ||
Operating lease revenue | 1 | |||
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 1,949 | |||
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 184 | |||
Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 115 | |||
Brazil | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 53 | |||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 132 | |||
Truck products and services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 1,680 | |||
Truck contract manufacturing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 18 | |||
Used Trucks [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 51 | |||
Engines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 111 | |||
Parts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 497 | |||
Extended warranty contracts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 29 | |||
Manufactured products, net [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 2,386 | |||
Retail financing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Finance revenues | 35 | |||
Interest income | 13 | |||
Wholesale financing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Finance revenues | 12 | |||
Interest income | 12 | |||
Third-Party Financings [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 3 | |||
Military Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | $ 62 | |||
North America Truck [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 1,776 | |||
North America Truck [Member] | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 1,468 | |||
North America Truck [Member] | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 135 | |||
North America Truck [Member] | Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 66 | |||
North America Truck [Member] | Brazil | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 0 | |||
North America Truck [Member] | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 107 | |||
North America Truck [Member] | Truck products and services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 1,677 | |||
North America Truck [Member] | Truck contract manufacturing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 18 | |||
North America Truck [Member] | Used Trucks [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 51 | |||
North America Truck [Member] | Engines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
North America Truck [Member] | Parts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 1 | |||
North America Truck [Member] | Extended warranty contracts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 29 | |||
North America Truck [Member] | Manufactured products, net [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 1,776 | |||
North America Truck [Member] | Retail financing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Finance revenues | 0 | |||
North America Truck [Member] | Wholesale financing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Finance revenues | 0 | |||
North America Parts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 546 | |||
North America Parts [Member] | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 455 | |||
North America Parts [Member] | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 49 | |||
North America Parts [Member] | Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 25 | |||
North America Parts [Member] | Brazil | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 0 | |||
North America Parts [Member] | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 17 | |||
North America Parts [Member] | Truck products and services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
North America Parts [Member] | Truck contract manufacturing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
North America Parts [Member] | Used Trucks [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
North America Parts [Member] | Engines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 66 | |||
North America Parts [Member] | Parts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 480 | |||
North America Parts [Member] | Extended warranty contracts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
North America Parts [Member] | Manufactured products, net [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 546 | |||
North America Parts [Member] | Retail financing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Finance revenues | 0 | |||
North America Parts [Member] | Wholesale financing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Finance revenues | 0 | |||
Global Operations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 61 | |||
Global Operations [Member] | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 0 | |||
Global Operations [Member] | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 0 | |||
Global Operations [Member] | Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 0 | |||
Global Operations [Member] | Brazil | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 53 | |||
Global Operations [Member] | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 8 | |||
Global Operations [Member] | Truck products and services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Global Operations [Member] | Truck contract manufacturing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Global Operations [Member] | Used Trucks [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Global Operations [Member] | Engines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 45 | |||
Global Operations [Member] | Parts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 16 | |||
Global Operations [Member] | Extended warranty contracts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Global Operations [Member] | Manufactured products, net [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 61 | |||
Global Operations [Member] | Retail financing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Finance revenues | 0 | |||
Global Operations [Member] | Wholesale financing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Finance revenues | 0 | |||
Financial Services Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Finance revenues | 47 | $ 38 | ||
Sales and revenues, net | 47 | |||
Financial Services Operations | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 23 | |||
Financial Services Operations | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 0 | |||
Financial Services Operations | Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 24 | |||
Financial Services Operations | Brazil | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 0 | |||
Financial Services Operations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 0 | |||
Financial Services Operations | Truck products and services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Financial Services Operations | Truck contract manufacturing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Financial Services Operations | Used Trucks [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Financial Services Operations | Engines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Financial Services Operations | Parts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Financial Services Operations | Extended warranty contracts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Financial Services Operations | Manufactured products, net [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Financial Services Operations | Retail financing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Finance revenues | 35 | |||
Financial Services Operations | Wholesale financing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Finance revenues | 12 | |||
Corporate And Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 3 | |||
Corporate And Eliminations [Member] | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 3 | |||
Corporate And Eliminations [Member] | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 0 | |||
Corporate And Eliminations [Member] | Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 0 | |||
Corporate And Eliminations [Member] | Brazil | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 0 | |||
Corporate And Eliminations [Member] | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and revenues, net | 0 | |||
Corporate And Eliminations [Member] | Truck products and services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 3 | |||
Corporate And Eliminations [Member] | Truck contract manufacturing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Corporate And Eliminations [Member] | Used Trucks [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Corporate And Eliminations [Member] | Engines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Corporate And Eliminations [Member] | Parts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Corporate And Eliminations [Member] | Extended warranty contracts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 0 | |||
Corporate And Eliminations [Member] | Manufactured products, net [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales of manufactured products, net | 3 | |||
Corporate And Eliminations [Member] | Retail financing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Finance revenues | 0 | |||
Corporate And Eliminations [Member] | Wholesale financing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Finance revenues | $ 0 | |||
Navistar Defense [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Equity Interest, Percent Sold | 70.00% |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2019 | Oct. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Operating lease revenue | $ 1 | |
Extended warranty contracts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | 269 | $ 255 |
Extended warranty contract revenue | $ 29 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) $ in Millions | Jan. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected revenue | $ 71 |
Expected revenue, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected revenue | $ 77 |
Expected revenue, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected revenue | $ 58 |
Expected revenue, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected revenue | $ 35 |
Expected revenue, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected revenue | $ 18 |
Expected revenue, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected revenue | $ 10 |
Expected revenue, period | 1 year |
Restructuring and Impairments -
Restructuring and Impairments - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||
Dec. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Oct. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 0 | $ (3,000,000) | $ 6,000,000 | |||
Liability, Defined Benefit Plan, Noncurrent | 1,961,000,000 | $ 2,097,000,000 | ||||
Asset impairment charges | 2,000,000 | 2,000,000 | ||||
Goodwill | 38,000,000 | $ 38,000,000 | ||||
Gain (Loss) on Sales of Investments and Businesses, Net | 59,000,000 | 0 | ||||
Navistar Defense [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Proceeds from Divestiture of Businesses | $ 140,000,000 | |||||
Potential Additional Consideration | 17,000,000 | |||||
Equity Interest, Percent Sold | 70.00% | |||||
Gain (Loss) on Sales of Investments and Businesses, Net | $ 54,000,000 | |||||
Melrose Park [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 2,000,000 | $ 41,000,000 | ||||
Pension Liability | 23,000,000 | |||||
Restructuring Benefit | 8,000,000 | |||||
Inventory Reserve Charge | $ 10,000,000 | |||||
Global Operations [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 1,000,000 | |||||
Assets Leased to Others [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Asset impairment charges | $ 2,000,000 | |||||
long-lived asset [Domain] | Cherokee [Domain] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Asset impairment charges | $ 2,000,000 |
Restructuring and Impairments_2
Restructuring and Impairments - Restructuring Reserve by Type (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Oct. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0 | $ (3) | $ 6 |
Restructuring and Impairments_3
Restructuring and Impairments - Schedule of Impairment Charges (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Oct. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Liability, Defined Benefit Plan, Noncurrent | $ (1,961) | $ (2,097) | |
Asset impairment charges | 2 | $ 2 | |
Assets Leased to Others [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset impairment charges | $ 2 |
Finance Receivables - Narrative
Finance Receivables - Narrative (Details) $ in Millions | Jan. 31, 2019USD ($)segments | Oct. 31, 2018USD ($) |
Schedule of Securitization [Line Items] | ||
Loans and Leases Receivable, Net Amount | $ 2,100 | $ 2,200 |
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 | $ 984 | 956 |
Cash Collateral for Borrowed Securities | 222 | 235 |
Financial Services Operations | ||
Schedule of Securitization [Line Items] | ||
Assets Net Of Intercompany Balances | $ 2,600 | $ 2,600 |
Finance Receivables - Finance R
Finance Receivables - Finance Receivables (Details) - USD ($) $ in Millions | Jan. 31, 2019 | Oct. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $ 2,113 | $ 2,180 | |
Less: Allowance for Doubtful accounts | 23 | 22 | |
Total finance receivables, net | 2,090 | 2,158 | |
Financing Receivable, Recorded Investment, Current | [1] | 1,818 | 1,898 |
Finance Receivables, Noncurrent | 272 | 260 | |
Loans and Leases Receivable, Gross | 2,113 | 2,180 | |
Retail Portfolio [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 713 | 720 | |
Wholesale Portfolio [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $ 1,400 | $ 1,460 | |
[1] | (A)The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals. |
Finance Receivables - Schedule
Finance Receivables - Schedule of Finance Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Finance Revenues [Line Items] | ||
Retail notes and finance leases revenue | $ 14 | $ 11 |
Operating lease revenue | 1 | |
Gross finance revenues | 74 | 59 |
Intercompany Revenues | 27 | 21 |
Less: Intercompany revenues | 29 | 40 |
Finance Revenues, Net | 47 | 38 |
Financing Receivable [Member] | ||
Finance Revenues [Line Items] | ||
Operating lease revenue | 21 | 18 |
Wholesale Portfolio [Member] | Notes Receivable [Member] | ||
Finance Revenues [Line Items] | ||
Interest Income, Operating | 31 | 25 |
Retail And Wholesale Portfolios [Member] | ||
Finance Revenues [Line Items] | ||
Interest Income, Operating | 8 | 5 |
Financial Services Operations | ||
Finance Revenues [Line Items] | ||
Finance Revenues, Net | $ 47 | $ 38 |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts - Schedule of Allowance for Retail, Wholesale, Trade & Other (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for doubtful accounts at beginning of period | $ 50 | $ 48 |
Provision for doubtful accounts, net of recoveries | 1 | 1 |
Charge-off of accounts | (1) | (1) |
Allowance for Doubtful Accounts Receivable, Recoveries | 1 | |
Financing Receivable, Allowance for Credit Losses, Other | 1 | 1 |
Allowance for doubtful accounts at end of period | 51 | 50 |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for Doubtful Accounts Receivable, Recoveries | 0 | |
Retail Portfolio [Member] | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for doubtful accounts at beginning of period | 19 | 17 |
Provision for doubtful accounts, net of recoveries | 1 | 0 |
Charge-off of accounts | (1) | (1) |
Allowance for Doubtful Accounts Receivable, Recoveries | 1 | |
Financing Receivable, Allowance for Credit Losses, Other | 1 | 1 |
Allowance for doubtful accounts at end of period | 20 | 18 |
Impaired Financing Receivable, Average Recorded Investment | 21 | 18 |
Wholesale Portfolio [Member] | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for doubtful accounts at beginning of period | 3 | 3 |
Provision for doubtful accounts, net of recoveries | 0 | 0 |
Charge-off of accounts | 0 | 0 |
Allowance for Doubtful Accounts Receivable, Recoveries | 0 | |
Financing Receivable, Allowance for Credit Losses, Other | 0 | 0 |
Allowance for doubtful accounts at end of period | 3 | 3 |
Trade and Other Receivables [Member] | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for doubtful accounts at beginning of period | 28 | 28 |
Provision for doubtful accounts, net of recoveries | 0 | 1 |
Charge-off of accounts | 0 | 0 |
Allowance for Doubtful Accounts Receivable, Recoveries | 0 | |
Financing Receivable, Allowance for Credit Losses, Other | 0 | 0 |
Allowance for doubtful accounts at end of period | 28 | $ 29 |
Trade and Other Receivables [Member] | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for Doubtful Accounts Receivable, Recoveries | 0 | |
Wholesale Portfolio [Member] | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for Doubtful Accounts Receivable, Recoveries | 0 | |
Retail Portfolio [Member] | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for Doubtful Accounts Receivable, Recoveries | $ 0 |
Allowance for Doubtful Accoun_4
Allowance for Doubtful Accounts - Schedule of Impaired Finance Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Oct. 31, 2018 | |
Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | $ 21 | $ 18 | |
Impaired finance receivables with specific loss reserves [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 20 | $ 20 | |
Impaired finance receivables with specific loss reserves [Member] | Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 20 | 20 | |
Impaired finance receivables with specific loss reserves [Member] | Wholesale Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | |
Impaired financing receivable without specific loss reserves [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | |
Impaired financing receivable without specific loss reserves [Member] | Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | |
Impaired financing receivable without specific loss reserves [Member] | Wholesale Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | |
Specific loss reserves on impaired finance receivables [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Specific loss reserves on impaired finance receivables | 9 | 9 | |
Specific loss reserves on impaired finance receivables [Member] | Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Specific loss reserves on impaired finance receivables | 9 | 9 | |
Specific loss reserves on impaired finance receivables [Member] | Wholesale Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Specific loss reserves on impaired finance receivables | 0 | 0 | |
Finance receivable non-accrual status [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Finance receivables on non-accrual status | 20 | 20 | |
Finance receivable non-accrual status [Member] | Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Finance receivables on non-accrual status | 20 | 20 | |
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 Accoun_5
Allowance for Doubtful Accounts - Schedule of Allowance Aging Analysis (Details) - USD ($) $ in Millions | Jan. 31, 2019 | Oct. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Current | $ 2,035 | $ 2,114 |
30-90 days past due | 58 | 52 |
Total finance receivables | 2,113 | 2,180 |
Retail Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Current | 636 | 655 |
30-90 days past due | 57 | 51 |
Total finance receivables | 713 | 720 |
Wholesale Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Current | 1,399 | 1,459 |
30-90 days past due | 1 | 1 |
Total finance receivables | 1,400 | 1,460 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Over 90 days past due | 20 | 14 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Retail Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Over 90 days past due | 20 | 14 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Wholesale Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Over 90 days past due | $ 0 | $ 0 |
Allowance for Doubtful Accoun_6
Allowance for Doubtful Accounts - Narrative (Details) $ in Millions | 3 Months Ended | |
Jan. 31, 2019USD ($)segmentsclass | Jan. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Portfolio Segments for Finance Receivables | segments | 2 | |
Classes Of Receivables In Each Portfolio | class | 1 | |
Retail Portfolio [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, Average Recorded Investment | $ | $ 21 | $ 18 |
Inventories - Inventory (Detail
Inventories - Inventory (Details) - USD ($) $ in Millions | Jan. 31, 2019 | Nov. 01, 2018 | Oct. 31, 2018 |
Inventory Disclosure [Abstract] | |||
Finished products | $ 739 | $ 671 | |
Work in process | 163 | 118 | |
Raw materials | 309 | 321 | |
Total inventories, net | $ 1,211 | $ 1,019 | $ 1,110 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Millions | Jan. 31, 2019 | Nov. 01, 2018 | Oct. 31, 2018 | Oct. 31, 2017 |
Debt Instrument [Line Items] | ||||
Long-term Debt and Capital Lease Obligations | $ 4,552 | $ 4,463 | $ 4,521 | |
Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Gross maximum borrowing capacity | 393 | 394 | ||
Financial Services Operations | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 2,151 | 2,041 | ||
Long-term Debt and Capital Lease Obligations, Current | 505 | 485 | ||
Long-term Debt and Capital Lease Obligations | 1,646 | 1,556 | ||
Financial Services Operations | Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Issuance Costs, Net | 4 | $ 4 | ||
Long-term Debt | 992 | 948 | ||
Financial Services Operations | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Issuance Costs, Net | 1 | 2 | ||
Long-term Debt | 616 | 519 | ||
Financial Services Operations | Commercial Paper [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 75 | |||
Commercial Paper | 62 | |||
Financial Services Operations | Borrowings Secured By Operating and Finance Leases [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 88 | 105 | ||
Manufacturing Operations [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 3,343 | 3,426 | ||
Long-term Debt and Capital Lease Obligations, Current | 437 | 461 | ||
Long-term Debt and Capital Lease Obligations | 2,906 | 2,965 | ||
Manufacturing Operations [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Issuance Costs, Net | 0 | 9 | ||
Debt Instrument, Unamortized Discount | 0 | 7 | ||
Long-term Debt | 1,566 | 1,570 | ||
Manufacturing Operations [Member] | Notes Payable to Banks [Member] | Eight Point Two Five Percent Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Issuance Costs, Net | 0 | 14 | ||
Debt Instrument, Unamortized Discount | $ 0 | 13 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | |||
Long-term Debt | $ 1,084 | 1,083 | ||
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Issuance Costs, Net | 0 | 1 | ||
Debt Instrument, Unamortized Discount | $ 0 | 5 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Issuance Costs, Net | $ 1 | 1 | ||
Debt Instrument, Unamortized Discount | $ 2 | 5 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |||
Long-term Debt | $ 408 | 405 | ||
Manufacturing Operations [Member] | Tax Exempt Bond [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Issuance Costs, Net | $ 5 | $ 5 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |||
Long-term Debt | $ 220 | 220 | ||
Manufacturing Operations [Member] | Financed lease obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 52 | 122 | ||
Manufacturing Operations [Member] | Notes Payable, Other Payables [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 13 | $ 26 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Oct. 31, 2017 | |
Debt Instrument [Line Items] | |||
Payments of Debt Issuance Costs | $ 1 | $ 33 | |
Tax Exempt Bond [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||
Financial Services Operations | VFN Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 350 | ||
Financial Services Operations | Trac Funding Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 100 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Unamortized Discount | 0 | $ 7 | |
Debt Issuance Costs, Net | 0 | 9 | |
Line of Credit [Member] | Financial Services Operations | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | $ 1 | $ 2 |
Postretirement Benefits - Narra
Postretirement Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Nov. 01, 2018 | Oct. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | $ 31 | |||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | $ 11 | 2 | ||
Defined Contribution Plan, Administrative Expense | 142 | 9 | ||
Liabilities | 10,850 | $ 11,074 | $ 11,156 | |
Employer contributions | 131 | 21 | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 9 | |||
Income Tax Expense (Benefit) | (19) | 15 | ||
Liability, Defined Benefit Plan, Noncurrent | 1,961 | $ 2,097 | ||
Defined Contribution Plan, Cost | $ 8 | $ 7 |
Postretirement Benefits - Sched
Postretirement Benefits - Schedule of Net Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Contribution Plan, Cost | $ 8 | $ 7 |
Employer contributions | 131 | 21 |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2 | 2 |
Interest on obligations | 32 | 27 |
Amortization of cumulative loss | 24 | 26 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 142 | 9 |
Premiums on pension insurance | 1 | 2 |
Expected return on assets | (38) | (40) |
Net postretirement benefits expense | 163 | 26 |
Health and Life Insurance Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest on obligations | 12 | 11 |
Amortization of cumulative loss | 0 | 2 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 0 |
Premiums on pension insurance | 0 | 0 |
Expected return on assets | (5) | (6) |
Net postretirement benefits expense | $ 8 | $ 8 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||||
Unusual or Infrequent Item, or Both, Tax Effect | $ 38,000,000 | ||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 0.21 | $ 0.35 | |||
Deferred Tax Assets, Valuation Allowance | $ 1,000,000,000 | $ 1,000,000,000 | |||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 147,000,000 | ||||
Income Taxes Percent Likelihood Of Being Realized Upon Settlement | 50.00% | 50.00% | |||
Income Tax Expense (Benefit) | $ (19,000,000) | $ 15,000,000 | |||
Unrecognized Tax Benefits | $ 30,000,000 | 30,000,000 | |||
Interest and Penalties from Uncertain Tax Positions, Income Tax Expense | $1 million | ||||
Other Comprehensive Income (Loss) [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income Tax Expense (Benefit) | $ (9,000,000) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jan. 31, 2019 | Oct. 31, 2018 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 41 | $ 101 |
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 | 4 |
Guarantees, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 1 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Guarantees, Fair Value Disclosure | 21 | 24 |
Liabilities, Fair Value Disclosure | 21 | 24 |
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 | 41 | 101 |
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 Current Assets [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Other Current Assets [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 2 |
Other Current Assets [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 0 | 0 |
Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 1 | 2 |
Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 0 | 0 |
Other Current Liabilities [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Other Current Liabilities [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1 | 0 |
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 | 42 | 105 |
Guarantees, Fair Value Disclosure | 21 | 24 |
Liabilities, Fair Value Disclosure | 22 | 24 |
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 | 41 | 101 |
Estimate of Fair Value Measurement [Member] | Other Current Assets [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 2 |
Estimate of Fair Value Measurement [Member] | Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 1 | 2 |
Estimate of Fair Value Measurement [Member] | Other Current Liabilities [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 1 | $ 0 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Reconciliation (Details) - Guarantees [Member] - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
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 | $ (24) | $ (21) |
Transfers out of Level 3 | 0 | 0 |
Issuances | 2 | (5) |
Settlements | 1 | 1 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset (Liability) Ending Value | $ (21) | $ (25) |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Instruments Measured on Nonrecurring Basis (Details) - USD ($) $ in Millions | Jan. 31, 2019 | Oct. 31, 2018 |
Impaired finance receivables with specific loss reserves [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | $ 20 | $ 20 |
Specific loss reserves on impaired finance receivables [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Specific loss reserve | $ (9) | $ (9) |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Jan. 31, 2019 | Jan. 31, 2018 | Oct. 31, 2018 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Goodwill | $ 38 | $ 38 | |||
Asset impairment charges | 2 | $ 2 | |||
Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Retail Notes | 201 | 183 | |||
Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Retail Notes | 196 | 180 | |||
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 | |||
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 | |||
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Retail Notes | 196 | 180 | |||
Term Loan [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 1,566 | ||||
Term Loan [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 1,563 | ||||
Term Loan [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | ||||
Term Loan [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | ||||
Term Loan [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 1,563 | ||||
Term Loan [Member] | Financial Services Operations | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 393 | 394 | |||
Term Loan [Member] | Financial Services Operations | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 395 | 400 | |||
Term Loan [Member] | Financial Services Operations | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Term Loan [Member] | Financial Services Operations | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Term Loan [Member] | Financial Services Operations | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 395 | 400 | |||
Line of Credit [Member] | Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 1,566 | 1,570 | |||
Line of Credit [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 1,570 | ||||
Line of Credit [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 1,597 | ||||
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 | ||||
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 | ||||
Line of Credit [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 1,597 | ||||
Line of Credit [Member] | Financial Services Operations | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 616 | 519 | |||
Line of Credit [Member] | Financial Services Operations | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 616 | 519 | |||
Line of Credit [Member] | Financial Services Operations | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 586 | 511 | |||
Line of Credit [Member] | Financial Services Operations | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Line of Credit [Member] | Financial Services Operations | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Line of Credit [Member] | Financial Services Operations | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 586 | 511 | |||
Senior Notes [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 1,084 | ||||
Senior Notes [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 1,109 | ||||
Senior Notes [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | ||||
Senior Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 1,109 | ||||
Senior Notes [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | $ 0 | ||||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||||
Long-term Debt | $ 220 | 220 | |||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 220 | 220 | |||
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 | 235 | 235 | |||
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 | 235 | 235 | |||
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 | 52 | 122 | |||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 52 | 122 | |||
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 | 52 | 122 | |||
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 | 52 | 122 | |||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 13 | 26 | |||
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 | 12 | 26 | |||
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 | 11 | 25 | |||
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 | 11 | 25 | |||
Secured Debt [Member] | Financial Services Operations | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 992 | 948 | |||
Secured Debt [Member] | Financial Services Operations | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 992 | 948 | |||
Secured Debt [Member] | Financial Services Operations | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 993 | 949 | |||
Secured Debt [Member] | Financial Services Operations | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Secured Debt [Member] | Financial Services Operations | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Secured Debt [Member] | Financial Services Operations | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 993 | 949 | |||
Commercial Paper [Member] | Financial Services Operations | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 75 | ||||
Commercial Paper [Member] | Financial Services Operations | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 62 | 75 | |||
Commercial Paper [Member] | Financial Services Operations | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 62 | 75 | |||
Commercial Paper [Member] | Financial Services Operations | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 62 | ||||
Commercial Paper [Member] | Financial Services Operations | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 75 | ||||
Commercial Paper [Member] | Financial Services Operations | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | ||||
Commercial Paper [Member] | Financial Services Operations | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | ||||
Commercial Paper [Member] | Financial Services Operations | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | ||||
Commercial Paper [Member] | Financial Services Operations | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | ||||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 88 | 105 | |||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations | Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 88 | 105 | |||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 87 | 104 | |||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 0 | 0 | |||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | $ 87 | 104 | |||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | ||||
Long-term Debt | $ 1,084 | 1,083 | |||
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 | 1,083 | ||||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | 1,122 | ||||
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 | 0 | ||||
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 | 1,122 | ||||
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 | ||||
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||||
Long-term Debt | $ 408 | 405 | |||
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] | 408 | 405 | ||
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] | 412 | 412 | ||
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] | 412 | 412 | ||
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] | $ 0 | $ 0 | ||
[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 estimated fair value is derived from quoted prices in active markets which include the equity feature. |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Oct. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | $ 2 | $ 2 | |
Goodwill | $ 38 | $ 38 | |
Cash and Cash Equivalents, Maturity Term | 90 days | ||
Marketable Securities, Maturity Term | 90 days | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||
Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.63% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) R$ in Millions | Jul. 16, 2015USD ($) | Oct. 31, 2016members | Mar. 31, 2014BRL (R$) | Jan. 31, 2019USD ($)dealer | Oct. 31, 2018USD ($) | Jan. 31, 2018USD ($) | Oct. 31, 2017USD ($) | Jul. 31, 2017USD ($) | Oct. 31, 2016USD ($)lawsuitsplaintiff | Jul. 31, 2014lawsuits | Jan. 31, 2014BRL (R$) | Jul. 31, 2010BRL (R$) | Jul. 31, 2015engine |
Loss Contingencies [Line Items] | |||||||||||||
Available stand-by letters of credit and surety bonds | $ 95,000,000 | ||||||||||||
Purchase commitments | 134,000,000 | ||||||||||||
Long Term Purchase Commitment Cancellation Fees | 21,000,000 | ||||||||||||
Accrual for environmental loss contingencies | 18,000,000 | ||||||||||||
Damages sought, value | 50,000,000 | $ 31,000,000 | |||||||||||
Loss Contingency, Number of Plaintiffs | 2 | 25 | |||||||||||
Loss Contingency, New Claims Filed, Number | lawsuits | 2 | 17 | |||||||||||
Notice of Violation, number | engine | 7,749 | ||||||||||||
Civil penalties sought, per violation | $ 37,500 | ||||||||||||
Loss Contingency, Overcharge Penalty | 88,000,000 | ||||||||||||
Loss Contingency, Damages Sought, Value, Punitive Damages | 20,000,000 | ||||||||||||
Legal Fees | $ 1,400,000 | ||||||||||||
Selling, general and administrative expenses | 186,000,000 | $ 191,000,000 | |||||||||||
Loss Contingency, Damages Sought | $ 264,000,000 | ||||||||||||
Sao Paulo Groundwater Notice [Member] | Sanctions [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages sought, value | R$ 3 | 1,000,000 | |||||||||||
International Chamber of Commerce [Member] | Penalties and Interest [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages sought, value | $ 18,000,000 | ||||||||||||
Navitrucks [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Loss Contingency, Settlement Agreement, Terms | 1 | ||||||||||||
Navitrucks [Member] | Alleged Unfulfilled Promises and Injury to Reputation [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages sought, value | $ 35,000,000 | ||||||||||||
Loss Contingency, Settlement Agreement, Terms | 29 | 29 | |||||||||||
G E Operating Agreement [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Operating Agreement Excess Loss Percentage | 10.00% | ||||||||||||
Loss Sharing Agreement, Percentage | 9.50% | ||||||||||||
Off Balance Sheet Finance Receivables | $ 1,500,000,000 | ||||||||||||
Off Balance Sheet Finance Receivables Related Originations1 | 2,600,000,000 | $ 2,500,000,000 | |||||||||||
Minimum [Member] | Damages from Product Defects [Member] | EPA [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Civil penalties sought, per violation | 2,000,000 | ||||||||||||
Maximum [Member] | Damages from Product Defects [Member] | EPA [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Civil penalties sought, per violation | $ 291,000,000 | ||||||||||||
G E Operating Agreement [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Equipment leased to others | 44,000,000 | 104,000,000 | |||||||||||
Manufacturing Operations [Member] | Financed lease obligations [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Long-term Debt | 52,000,000 | 122,000,000 | |||||||||||
Manufacturing Operations [Member] | G E Operating Agreement [Member] | Financed lease obligations [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Long-term Debt | 52,000,000 | $ 122,000,000 | |||||||||||
Pending Litigation [Member] | FATMA Notice, Trial [Member] | Penalties [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages sought, value | 1,000,000 | R$ 2 | |||||||||||
Profit Sharing Litigation [Member] | Pending Litigation [Member] | Disputes [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages sought, value | $ 50,000,000 | ||||||||||||
Retiree Health Care [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages sought, value | $ 26,000,000 | ||||||||||||
MaxxForce Engine EGR Warranty Litigation [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Selling, general and administrative expenses | $ 31,000,000 | ||||||||||||
Brazil, Brazil Real | International Chamber of Commerce [Member] | Penalties and Interest [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages sought, value | R$ | R$ 64 | ||||||||||||
Brazil, Brazil Real | Navitrucks [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Loss Contingency, Settlement Agreement, Terms | 3 | ||||||||||||
Brazil, Brazil Real | Navitrucks [Member] | Alleged Unfulfilled Promises and Injury to Reputation [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages sought, value | R$ | R$ 128 | ||||||||||||
Loss Contingency, Settlement Agreement, Terms | 107 | 107 | |||||||||||
International Indústria de Motores da América do Sul Ltda [Member] | Other Cases Vs. International Indústria de Motores da América do Sul Ltda [Member] | Pending Litigation [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Loss Contingency, Number of Truck Fleet Owners | dealer | 2 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Millions | 3 Months Ended | |
Jan. 31, 2019USD ($)segments | Jan. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Number Of Segments | segments | 4 | |
Intersegment sales and revenues | $ 0 | $ 0 |
Sales and revenues, net | 2,433 | 1,905 |
Financial Services Operations | ||
Segment Reporting Information [Line Items] | ||
Intersegment sales and revenues | 27 | 21 |
Sales and revenues, net | 47 | |
North America Truck [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment sales and revenues | 21 | 23 |
Sales and revenues, net | 1,776 | |
North America Parts [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment sales and revenues | 2 | 4 |
Sales and revenues, net | 546 | |
Corporate And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment sales and revenues | (62) | $ (57) |
Sales and revenues, net | $ 3 |
Segment Reporting - Summary of
Segment Reporting - Summary of Segment Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Nov. 01, 2018 | Oct. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | $ 2,433 | $ 1,905 | ||
Segment Assets | 7,037 | $ 7,121 | $ 7,230 | |
Intersegment sales and revenues | 0 | 0 | ||
Sales and revenues, net | 2,433 | 1,905 | ||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 11 | (73) | ||
Income Tax Expense (Benefit) | (19) | 15 | ||
Segment Profit Loss | (8) | (58) | ||
Depreciation, Depletion and Amortization | 48 | 55 | ||
Interest expense | 85 | 79 | ||
Equity in income of non-consolidated affiliates | 0 | 0 | ||
Capital expenditures | 44 | 30 | ||
North America Truck [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 1,776 | 1,228 | ||
Segment Assets | 2,031 | 2,085 | ||
Intersegment sales and revenues | 21 | 23 | ||
Sales and revenues, net | 1,776 | |||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 90 | (7) | ||
Income Tax Expense (Benefit) | 0 | 0 | ||
Segment Profit Loss | 90 | (7) | ||
Depreciation, Depletion and Amortization | 26 | 35 | ||
Interest expense | 0 | 0 | ||
Equity in income of non-consolidated affiliates | 1 | 0 | ||
Capital expenditures | 31 | 25 | ||
North America Parts [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 546 | 564 | ||
Segment Assets | 676 | 636 | ||
Intersegment sales and revenues | 2 | 4 | ||
Sales and revenues, net | 546 | |||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 144 | 137 | ||
Income Tax Expense (Benefit) | 0 | 0 | ||
Segment Profit Loss | 144 | 137 | ||
Depreciation, Depletion and Amortization | 1 | 2 | ||
Interest expense | 0 | 0 | ||
Equity in income of non-consolidated affiliates | 1 | 1 | ||
Capital expenditures | 2 | 0 | ||
Global Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 61 | 72 | ||
Segment Assets | 316 | 331 | ||
Intersegment sales and revenues | 12 | 9 | ||
Sales and revenues, net | 61 | |||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 6 | (7) | ||
Income Tax Expense (Benefit) | 0 | 0 | ||
Segment Profit Loss | 6 | (7) | ||
Depreciation, Depletion and Amortization | 2 | 3 | ||
Interest expense | 0 | 0 | ||
Equity in income of non-consolidated affiliates | (1) | (1) | ||
Capital expenditures | 1 | 1 | ||
Financial Services Operations | ||||
Segment Reporting Information [Line Items] | ||||
Interest Revenue (Expense), Net | 53 | 41 | ||
External sales and revenues, net | 47 | 38 | ||
Segment Assets | 2,618 | 2,648 | ||
Intersegment sales and revenues | 27 | 21 | ||
Sales and revenues, net | 47 | |||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 31 | 20 | ||
Income Tax Expense (Benefit) | 0 | 0 | ||
Segment Profit Loss | 31 | 20 | ||
Depreciation, Depletion and Amortization | 16 | 13 | ||
Interest expense | 29 | 21 | ||
Equity in income of non-consolidated affiliates | 0 | 0 | ||
Capital expenditures | 1 | 0 | ||
Corporate And Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 3 | 3 | ||
Segment Assets | 1,396 | $ 1,530 | ||
Intersegment sales and revenues | (62) | (57) | ||
Sales and revenues, net | 3 | |||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (260) | (216) | ||
Income Tax Expense (Benefit) | 19 | (15) | ||
Segment Profit Loss | (279) | (201) | ||
Depreciation, Depletion and Amortization | 3 | 2 | ||
Interest expense | 56 | 58 | ||
Equity in income of non-consolidated affiliates | (1) | 0 | ||
Capital expenditures | $ 9 | $ 4 |
Segment Reporting - Summary o_2
Segment Reporting - Summary of Segment Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
External sales and revenues, net | $ 2,433 | $ 1,905 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 11 | (73) |
Income Tax Expense (Benefit) | (19) | 15 |
Interest expense | 85 | 79 |
Equity in income of non-consolidated affiliates | 0 | 0 |
Capital expenditures | 44 | 30 |
Intersegment sales and revenues | 0 | 0 |
Segment Reporting, Segment Revenue | 2,433 | 1,905 |
Segment Profit Loss | (8) | (58) |
Depreciation, Depletion and Amortization | 48 | 55 |
North America Truck [Member] | ||
Segment Reporting Information [Line Items] | ||
External sales and revenues, net | 1,776 | 1,228 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 90 | (7) |
Income Tax Expense (Benefit) | 0 | 0 |
Interest expense | 0 | 0 |
Equity in income of non-consolidated affiliates | 1 | 0 |
Capital expenditures | 31 | 25 |
Intersegment sales and revenues | 21 | 23 |
Segment Reporting, Segment Revenue | 1,797 | 1,251 |
Segment Profit Loss | 90 | (7) |
Depreciation, Depletion and Amortization | 26 | 35 |
Corporate And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
External sales and revenues, net | 3 | 3 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (260) | (216) |
Income Tax Expense (Benefit) | 19 | (15) |
Interest expense | 56 | 58 |
Equity in income of non-consolidated affiliates | (1) | 0 |
Capital expenditures | 9 | 4 |
Intersegment sales and revenues | (62) | (57) |
Segment Reporting, Segment Revenue | (59) | (54) |
Segment Profit Loss | (279) | (201) |
Depreciation, Depletion and Amortization | 3 | 2 |
North America Parts [Member] | ||
Segment Reporting Information [Line Items] | ||
External sales and revenues, net | 546 | 564 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 144 | 137 |
Income Tax Expense (Benefit) | 0 | 0 |
Interest expense | 0 | 0 |
Equity in income of non-consolidated affiliates | 1 | 1 |
Capital expenditures | 2 | 0 |
Intersegment sales and revenues | 2 | 4 |
Segment Reporting, Segment Revenue | 548 | 568 |
Segment Profit Loss | 144 | 137 |
Depreciation, Depletion and Amortization | 1 | 2 |
Global Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
External sales and revenues, net | 61 | 72 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 6 | (7) |
Income Tax Expense (Benefit) | 0 | 0 |
Interest expense | 0 | 0 |
Equity in income of non-consolidated affiliates | (1) | (1) |
Capital expenditures | 1 | 1 |
Intersegment sales and revenues | 12 | 9 |
Segment Reporting, Segment Revenue | 73 | 81 |
Segment Profit Loss | 6 | (7) |
Depreciation, Depletion and Amortization | 2 | 3 |
Financial Services Operations | ||
Segment Reporting Information [Line Items] | ||
Interest Revenue (Expense), Net | 53 | 41 |
External sales and revenues, net | 47 | 38 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 31 | 20 |
Income Tax Expense (Benefit) | 0 | 0 |
Interest expense | 29 | 21 |
Equity in income of non-consolidated affiliates | 0 | 0 |
Capital expenditures | 1 | 0 |
Intersegment sales and revenues | 27 | 21 |
Segment Reporting, Segment Revenue | 74 | 59 |
Segment Profit Loss | 31 | 20 |
Depreciation, Depletion and Amortization | $ 16 | $ 13 |
Segment Reporting - Summary o_3
Segment Reporting - Summary of Segment Long Lived Assets and Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales and revenues, net | $ 2,433 | $ 1,905 |
Financial Services Operations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales and revenues, net | $ 47 |
Stockholders' Deficit Accumulat
Stockholders' Deficit Accumulated Other Comprehensive Income (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Loss, Beginning Balance | $ (1,920) | $ (2,211) | ||
Other comprehensive loss before reclassifications | 6 | 20 | ||
Amounts reclassified out of accumulated other comprehensive loss | 123 | 37 | ||
Net current-period other comprehensive income (loss) | 129 | 57 | ||
Accumulated Other Comprehensive Loss, Ending Balance | (1,791) | (2,154) | $ (2,211) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Restructuring Charges | 0 | (3) | 6 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | 142 | 9 | ||
Tax expense | 19 | (15) | ||
Net income (loss) attributable to Navistar International Corporation | $ 11 | (73) | ||
Common stock, shares authorized | 220 | 220 | ||
Common stock, par value | $ 0.10 | $ 0.10 | ||
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Loss, Beginning Balance | $ (315) | (283) | ||
Other comprehensive loss before reclassifications | 14 | 22 | ||
Amounts reclassified out of accumulated other comprehensive loss | 0 | 0 | ||
Net current-period other comprehensive income (loss) | 14 | 22 | ||
Accumulated Other Comprehensive Loss, Ending Balance | (301) | (261) | (283) | |
Pension Benefits | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Loss, Beginning Balance | (1,605) | (1,928) | ||
Other comprehensive loss before reclassifications | (8) | (2) | ||
Amounts reclassified out of accumulated other comprehensive loss | 123 | 37 | ||
Net current-period other comprehensive income (loss) | 115 | 35 | ||
Accumulated Other Comprehensive Loss, Ending Balance | (1,490) | (1,893) | $ (1,928) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Amortization of actuarial loss | 24 | 28 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Benefits | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (166) | (37) | ||
Tax expense | (43) | 0 | ||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | $ 123 | $ 37 |
Earnings (Loss) Per Share Att_3
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, 2019 | Jan. 31, 2018 | |
Income (loss) from continuing operations, net of tax | $ 11 | $ (73) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 17 | (66) |
Net loss attributable to Navistar International Corporation | $ 11 | $ (73) |
Basic (in shares) | 99.1 | 98.6 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0.3 | 0 |
Diluted (in shares) | 99.4 | 98.6 |
Earnings Per Share, Basic | $ 0.11 | $ (0.74) |
Earnings Per Share, Diluted | $ 0.11 | $ (0.74) |
Retained Earnings [Member] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 11 | $ (73) |
Earnings (Loss) Per Share Att_4
Earnings (Loss) Per Share Attributable to Navistar International Corporation - Narrative (Details) $ / shares in Units, shares in Millions | 3 Months Ended | |
Jan. 31, 2019USD ($)$ / sharesshares | Jan. 31, 2018shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 9.9 | 14 |
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 | |
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 | |
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% |