þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 36-3359573 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
2701 Navistar Drive, Lisle, Illinois | 60532 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered | |
Common stock (par value $0.10) | New York Stock Exchange | |
Cumulative convertible junior preference stock, Series D (par value $1.00) | New York Stock Exchange |
Large accelerated filer | þ | Accelerated filer | o | |||
Non-accelerated filer | o | Smaller reporting company | o | |||
(Do not check if a smaller reporting company) |
Page | |||
PART I | |||
Item 1. | Business | ||
Item 1A. | Risk Factors | ||
Item 1B. | Unresolved Staff Comments | ||
Item 2. | Properties | ||
Item 3. | Legal Proceedings | ||
Item 4. | [Removed and Reserved] | ||
PART II | |||
Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | ||
Item 6. | Selected Financial Data | ||
Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk | ||
Item 8. | Financial Statements and Supplementary Data | ||
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | ||
Item 9A. | Controls and Procedures | ||
Item 9B. | Other Information | ||
PART III | |||
Item 10. | Directors, Executive Officers, and Corporate Governance | ||
Item 11. | Executive Compensation | ||
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | ||
Item 13. | Certain Relationships and Related Transactions, and Director Independence | ||
Item 14. | Principal Accountant Fees and Services | ||
PART IV | |||
Item 15. | Exhibits and Financial Statement Schedules | ||
Signatures | |||
EXHIBIT INDEX: | |||
Exhibit 3 | |||
Exhibit 4 | |||
Exhibit 10 | |||
Exhibit 12 | |||
Exhibit 18 | |||
Exhibit 21 | |||
Exhibit 23.1 | |||
Exhibit 24 | |||
Exhibit 31.1 | |||
Exhibit 31.2 | |||
Exhibit 32.1 | |||
Exhibit 32.2 | |||
Exhibit 99.1 | |||
Exhibit 99.2 |
• | estimates we have made in preparing our financial statements; |
• | our development of new products and technologies; |
• | the anticipated sales, volume, demand and markets for our products; |
• | the anticipated performance and benefits of our products and technologies, including our exhaust gas recirculation technologies; |
• | our business strategies and long-term goals and activities to accomplish such strategies and goals; |
• | anticipated benefits from acquisitions, strategic alliances, and joint ventures we complete; |
• | our expectations and estimates relating to restructuring activities, including restructuring charges and operational flexibility, savings, and efficiencies; |
• | our expectations relating to our retail finance receivables and retail finance revenues; |
• | our anticipated capital expenditures; |
• | our expectations relating to payments of taxes; |
• | our expectations relating to warranty costs; |
• | estimates relating to pension plan contributions; |
• | trends relating to commodity prices; and |
• | anticipated trends, expectations, and outlook relating to matters affecting our financial condition or results of operations. |
Item 1. | Business |
I | Great Products |
• | Growing our product lines, including an enhanced line of our Class 8 ProStar® and LoneStar® trucks and Class 4/5 TerraStarTM trucks manufactured under the International brand, an expanded line of our engines, including our new 11, 13 and 15L Big-Bore engines, manufactured under the MaxxForce® brand, and additional products manufactured and marketed under the Company's other proprietary brands, including IC and Monaco |
• | Maintaining strong market share in our “traditional” classes, which include School buses and Class 6 through 8 medium and heavy trucks in the U.S. and Canada |
• | Focusing on engine research and development in order to have a competitive advantage using Advanced Exhaust Gas Recirculation (“EGR”), coupled with other strategies, for compliance with ongoing emissions standards |
• | Introducing our advanced engine technology in new markets |
II | Competitive Cost Structure |
• | Continuing our seamless integration of MaxxForce branded engines in our complimentary product lines, including the establishment of our new MaxxForce 11, 13 and 15L Big-Bore engines |
• | Reducing material cost by increasing global sourcing, leveraging scale benefits, finding synergies among strategic partnerships, reducing manufacturing conversion costs, and seeking opportunities for vertical integration |
• | Leveraging commonality in our product platforms through our integrated product strategy, including chassis, cabs and engine families |
III | Profitable Growth |
• | Working in cooperation with the U.S. military to provide an extensive line of defense vehicles and product support, including but not limited to, Mine Resistant Ambush Protected (“MRAP”) vehicles and other vehicles derived from our existing truck platforms |
• | Minimizing the impact of cyclicality in our North American markets by growing our Truck and Parts segments and “expansion” markets sales, which include Mexico, international export, U.S. and non-U.S. military, RV, commercial bus, commercial step van, and other truck and bus markets |
• | Broadening our Engine segment customer base within the commercial truck market, other consumer and specialty vehicle products, and other non-vehicle-based platforms |
I | Leverage Our Assets and Those of Our Partners |
• | Growing in our North American markets and globally through strategic partnerships, including through our joint ventures with Mahindra & Mahindra Ltd. (“Mahindra”) for truck and engine markets in India, our alliance with |
• | Maintaining product and plant flexibility to fully utilize our existing facilities, people, and technologies, as well as leveraging our integrated product strategy to more quickly and cost effectively expand our product portfolio |
• | Attaining further operating efficiencies and economies of scale through consolidating and centralizing certain facilities and functions, including the consolidation of our executive management, certain business operations, and product development at a new world headquarters site in Lisle, Illinois and the development of a testing and validation center at our Melrose Park facility, as well as other actions including the closure of our Chatham, Ontario heavy truck plant and the restructuring of our WCC and Monaco operations |
• | Containing costs by combining global purchasing relationships to achieve scale and sourcing throughout the world |
II | Control Our Destiny |
• | Controlling the development process and associated intellectual property of our products |
• | Utilizing key supplier competencies to reduce costs of components and improve quality |
• | Ensuring the health and growth of our distribution network to provide our products to key markets |
• | In 2006, we completed a joint venture with Mahindra, a leading Indian manufacturer of multi-utility vehicles and tractors to produce commercial trucks and buses in India. In 2008, we signed a second joint venture agreement with Mahindra to produce diesel engines for medium and heavy commercial trucks and buses in India. We have a 49% ownership in each joint venture, which operate under the names of MNAL and MNEPL, respectively. These joint ventures provide us engineering services, as well as advantages of scale and global sourcing for a more competitive cost structure, and afford us the opportunity to enter markets in India that have significant growth potential for commercial vehicles and diesel power. In 2010, MNAL launched a family of commercial trucks and tractors in the range of 25, 31, 40 and 49 ton with MNEPL engines (equivalent gross vehicle weight ranges of approximately 56,000 pounds up to 109,000 pounds). |
• | In 2009, we signed a strategic agreement with Caterpillar to design and develop a new proprietary, purpose-built heavy-duty CAT vocational truck, the CT660, for the North American market, which was launched in March 2011. These trucks are sold and serviced though the Caterpillar North American dealer network. In September 2011, we also signed a non-binding memorandum of understanding with Caterpillar to develop a new, cab-over-engine CAT vocational truck, in addition to the CT660, that will be sold globally. |
• | In 2009, we acquired all of the membership interests and certain assets associated with the amplified common rail injector business of Continental Diesel Systems US, LLC (“CDS”). CDS was a leading manufacturer of injectors used in fuel systems that are installed into various diesel engines. We believe the acquired company, renamed PPT, will allow us to further vertically integrate research and development, engineering, and manufacturing capabilities to produce world-class diesel power systems and advanced emissions control systems. The seamless integration of the fuel, air, and aftertreatment systems that PPT provides is enabled by the focus on optimized solutions through combining the design, development, analysis, and manufacturing into a single company. While PPT currently focuses primarily on intercompany customers, we anticipate that this business will provide additional external opportunities in the future. |
• | In 2010, we signed a joint venture agreement with JAC to develop, build, and market advanced diesel commercial engines in China. NC2 also signed a joint venture agreement with JAC to develop, build, and market advanced commercial vehicles in China. The engine joint venture will focus on meeting emerging needs of the Chinese commercial truck market with Euro V compliant technology and will provide application engineering development, product design and technology advancements, to support the truck joint venture and other engine requirements of JAC's product portfolio. A dedicated manufacturing facility in Hefei, China is expected to be constructed to produce JAC and the Navistar-designed MaxxForce diesel engines. The formation of the joint ventures is pending necessary approvals from the Chinese government, and is subject to finalization of certain ancillary agreements among the parties. |
• | In September 2011, certain aspects of our NC2 joint venture with Caterpillar were restructured and the joint venture agreement was terminated. In addition, we acquired all of Caterpillar's ownership interest in NC2, thereby increasing the Company's equity interest in NC2 from 50% to 100%. Under the terms of the new relationship, NC2 became a wholly owned subsidiary of Navistar and through a new brand licensing agreement, both International and CAT-branded trucks will be distributed through both International and Caterpillar dealers outside of the United States. NC2 has launched CAT-branded on-highway trucks in the Australian market, where it assembles and distributes commercial trucks under both the International and CAT brands, and has initiated operations in Brazil. |
As of October 31, | |||||||||
2011 | 2010 | 2009 | |||||||
Employees worldwide | |||||||||
Total active employees | 19,000 | 15,800 | 15,100 | ||||||
Total inactive employees(A) | 1,800 | 2,900 | 2,800 | ||||||
Total employees worldwide | 20,800 | 18,700 | 17,900 | ||||||
As of October 31, | |||||||||
2011 | 2010 | 2009 | |||||||
Total active union employees | |||||||||
Total UAW | 2,000 | 1,700 | 2,600 | ||||||
Total other unions | 3,900 | 2,400 | 1,900 |
(A) | Employees are considered inactive in certain situations including disability leave, leave of absence, layoffs, and work stoppages. Included within inactive employees are approximately 1,000 employees as of October 31, 2011, and approximately 1,100 employees as of October 31, 2010 and 2009, represented by the National Automobile, Aerospace and Agricultural Implement Workers of Canada ("CAW") at our Chatham, Ontario heavy truck plant related to the expiration of the CAW contract on June 30, 2009. In 2011, the Company committed to close this facility due to an inability to reach a collective bargaining agreement with the CAW. |
Item 1A. | Risk Factors |
• | allow our government clients to terminate or not renew our contracts if we come under foreign ownership, control or influence; |
• | allow our government clients to terminate existing contracts for the convenience of the government; |
• | require us to prevent unauthorized access to classified information; and |
• | require us to comply with laws and regulations intended to promote various social or economic goals. |
• | trade protection measures and import or export licensing requirements; |
• | tax rates in certain foreign countries that exceed those in the U.S. and the imposition of withholding requirements for taxes on foreign earnings; |
• | difficulty in staffing and managing international operations and the application of foreign labor regulations; |
• | multiple and potentially conflicting laws, regulations, and policies that are subject to change; |
• | currency exchange rate risk; and |
• | changes in general economic and political conditions in countries where we operate, particularly in emerging markets. |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
Item 3. | Legal Proceedings |
Item 4. | [Removed and Reserved] |
Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Year Ended October 31, 2011 | High | Low | Year Ended October 31, 2010 | High | Low | |||||||||||||
1st Qtr | $ | 66.39 | $ | 48.32 | 1st Qtr | $ | 41.52 | $ | 31.53 | |||||||||
2nd Qtr | 71.49 | 58.49 | 2nd Qtr | 52.43 | 36.79 | |||||||||||||
3rd Qtr | 70.40 | 50.05 | 3rd Qtr | 58.00 | 44.00 | |||||||||||||
4th Qtr | 52.36 | 30.01 | 4th Qtr | 53.83 | 40.58 |
Period | Total Number of Shares (or Units) Purchased | Average Price Paid Per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet Be Purchased Under the Plans or Programs (A)(B) | ||||||||||
08/01/2011 - 08/31/2011 | 272,666 | $ | 42.37 | 272,666 | $ | 2,167,340 | ||||||||
09/01/2011 - 09/30/2011 | 56,450 | 38.30 | 56,450 | 5,516 | ||||||||||
10/01/2011 - 10/31/2011 | 2,542,609 | 39.33 | 2,542,609 | 81,363,388 | ||||||||||
Total | 2,871,725 | 2,871,725 |
(A) | On December 14, 2010, we announced that our Board of Directors authorized a stock repurchase program which commenced on January 31, 2011 to acquire up to $25 million worth of Company common stock. The repurchase program expires on December 31, 2011. |
(B) | On September 7, 2011, we announced that a special committee of the Board of Directors authorized a stock repurchase program which commenced on October 6, 2011 to acquire up to $175 million worth of Company common stock. The repurchase program expires on March 15, 2012. |
Item 6. | Selected Financial Data |
As of and for the Years Ended October 31, | 2011(A) | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||
RESULTS OF OPERATIONS DATA | ||||||||||||||||||||
Sales and revenues, net | $ | 13,958 | $ | 12,145 | $ | 11,569 | $ | 14,724 | $ | 12,295 | ||||||||||
Income (loss) before extraordinary gain | 1,778 | 267 | 322 | 134 | (120 | ) | ||||||||||||||
Extraordinary gain, net of tax | — | — | 23 | — | — | |||||||||||||||
Net income (loss) | 1,778 | 267 | 345 | 134 | (120 | ) | ||||||||||||||
Less: Net income attributable to non-controlling interest | 55 | 44 | 25 | — | — | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | 1,723 | $ | 223 | $ | 320 | $ | 134 | $ | (120 | ) | |||||||||
Basic earnings (loss) per share: | ||||||||||||||||||||
Income (loss) attributable to Navistar International Corporation before extraordinary gain | $ | 23.66 | $ | 3.11 | $ | 4.18 | $ | 1.89 | $ | (1.70 | ) | |||||||||
Extraordinary gain, net of tax | — | — | 0.33 | — | — | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | 23.66 | $ | 3.11 | $ | 4.51 | $ | 1.89 | $ | (1.70 | ) | |||||||||
Diluted earnings (loss) per share: | ||||||||||||||||||||
Income (loss) attributable to Navistar International Corporation before extraordinary gain | $ | 22.64 | $ | 3.05 | $ | 4.14 | $ | 1.82 | $ | (1.70 | ) | |||||||||
Extraordinary gain, net of tax | — | — | 0.32 | — | — | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | 22.64 | $ | 3.05 | $ | 4.46 | $ | 1.82 | $ | (1.70 | ) | |||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||
Basic | 72.8 | 71.7 | 71.0 | 70.7 | 70.3 | |||||||||||||||
Diluted | 76.1 | 73.2 | 71.8 | 73.2 | 70.3 | |||||||||||||||
BALANCE SHEET DATA | ||||||||||||||||||||
Total assets | $ | 12,291 | $ | 9,730 | $ | 10,028 | $ | 10,390 | $ | 11,448 | ||||||||||
Long-term debt:(B) | ||||||||||||||||||||
Manufacturing operations | 1,881 | 1,841 | 1,670 | 1,639 | 1,665 | |||||||||||||||
Financial services operations | 1,596 | 2,397 | 2,486 | 3,770 | 4,418 | |||||||||||||||
Total long-term debt | $ | 3,477 | $ | 4,238 | $ | 4,156 | $ | 5,409 | $ | 6,083 | ||||||||||
Redeemable equity securities | $ | 5 | $ | 8 | $ | 13 | $ | 143 | $ | 140 |
Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
For the Year Ended October 31, 2011 | |||
(in millions, except per share data) | |||
Net income attributable to Navistar International Corporation | $ | 1,723 | |
Plus: | |||
Engineering integration costs(A) | 64 | ||
Restructuring of North American manufacturing operations(B) | 127 | ||
Impact of Medicare Part D legal ruling(C) | 15 | ||
Less: | |||
Net impact of income tax valuation allowance release(D) | 1,527 | ||
Adjusted net income attributable to Navistar International Corporation | $ | 402 | |
Diluted earnings per share attributable to Navistar International Corporation | $ | 22.64 | |
Effect of adjustments on diluted earnings per share attributable to Navistar International Corporation | (17.36 | ) | |
Adjusted diluted earnings per share attributable to Navistar International Corporation | $ | 5.28 | |
Diluted weighted shares outstanding | 76.1 |
For the Year Ended October 31, 2011 | |||
(in millions) | |||
Truck segment profit | $ | 336 | |
Plus: | |||
Engineering integration costs(A) | 49 | ||
Restructuring of North American manufacturing operations(B) | 124 | ||
Adjusted Truck segment profit | $ | 509 |
(A) | Engineering integration costs relate to the consolidation of our truck and engine engineering operations as well as the move of our world headquarters. These costs include restructuring charges for activities at our Fort Wayne facility of $29 million. We also incurred $35 million of other related costs. Our Truck segment recognized $49 million of the engineering integration costs for the year ended October, 31, 2011. For more information, see Note 2, Restructurings and impairments, to the accompanying consolidated financial statements. |
(B) | Restructuring of North American manufacturing operations are charges primarily related to our plans to close our Chatham, Ontario heavy truck plant and Workhorse chassis plant in Union City, Indiana, and to significantly scale back operations at our Monaco recreational vehicle headquarters and motor coach manufacturing plant in Coburg, Oregon. These costs include restructuring charges of $58 million and other related costs of $5 million. In addition, the Company recognized $64 million of impairment charges related to certain intangible assets and property plant and equipment primarily related to these facilities. Our Truck segment recognized $5 million and $124 million of restructuring of North American manufacturing operation charges for the three months and year ended October 31, 2011. For more information, see Note 2, Restructurings and impairments, to the accompanying consolidated financial statements. |
(C) | In the fourth quarter of 2011, the Company had an unfavorable ruling related to a 2010 administrative change the Company made to the prescription drug program under the OPEB plan affecting plan participants who are Medicare eligible. As a result the Company recognized approximately $15 million of expense for postretirement benefits. |
(D) | In the third quarter of 2011, we recognized an income tax benefit of $1.476 billion from the release of a portion of our income tax valuation allowance. In the fourth quarter of 2011, we recognized an additional income tax benefit of $61 million related to the release of a portion of our income tax valuation allowance. As domestic earnings are now taxable with the release of the income tax valuation allowance we recognized $10 million of domestic income tax expense for 2011 that would not have been recognized had we not released a portion of the income tax valuation allowance. The $10 million of domestic income taxes were netted against the total benefit of $1.537 billion from the release of a portion of the income tax valuation allowance. In addition, the other adjustments included in the table above have not been adjusted to reflect their income tax effect as the adjustments are intended to represent the impact on the Company's Consolidated Statement of Operations without the incremental income tax effect that would result from the release of the income tax valuation allowance. The charges related to our Canadian operations would not be impacted as a full income tax valuation allowance remains for Canada. |
• | “Traditional” Truck Market—The “traditional” truck markets in which we compete are typically cyclical in nature and are strongly influenced by macro-economic factors such as industrial production, demand for durable goods, capital spending, oil prices and consumer confidence. |
• | Worldwide Engine Unit Sales—Our worldwide engine unit sales are impacted primarily by North America truck demand and sales in South America, our largest engine market outside of the North American market. These markets are impacted by consumer demand for products that use our engines as well as macro-economic factors such as oil prices and construction activity. Our worldwide engine unit sales were 243,600 units in 2011, 240,400 units in 2010, and 269,300 units in 2009. In 2009, we settled our legal dispute with Ford and continued our North American supply agreement for diesel engines with Ford through December 31, 2009. As a result, our 2010 North American unit sales to Ford were 24,900 units as compared to 101,500 units for 2009. Our 2011 worldwide engine unit sales were primarily to our Truck segment in North America and to external customers in South America. We also made certain OEM sales for commercial, consumer, and specialty vehicle products in North America, which have not historically been significant to our Engine segment, but are expected to grow in 2012. Additionally within our South America operations, we expect to transition of a portion of our volumes to lower margin contract manufacturing for certain customers. We expect to offset this future impact with increased global engine and parts sales by our South American operations. |
• | Military Sales—In 2011, we continued to leverage existing products and plants to meet the urgent demand of the U.S. military and our North Atlantic Treaty Organization (“NATO”) allies. Our U.S. military sales were $2.0 billion, $1.8 billion and $2.8 billion in 2011, 2010, and 2009, respectively, and consisted of MRAP vehicles, lower-cost militarized commercial trucks, and sales of parts and services. In 2011, we received additional orders for MRAP variants, including recovery vehicles, Dash vehicles, and ambulances, which were substantially delivered in 2011. The remaining MRAP units were delivered during the first quarter of 2012, and we have not received further orders. We continue to expect that over the long-term our military business will generate approximately $1.5 billion to $2 billion in annual sales. |
• | Global Economy—The global economy, and in particular the economies in the U.S. and Brazil markets, are continuing to recover, and the related financial markets have stabilized. The impact of the economic recession and financial turmoil on the global markets poses continued risk as customers may postpone spending in response to tighter credit, negative financial news and/or declines in income or asset values. Lower demand for our customers' products or services could also have a material negative effect on the demand for our products. In addition, there could be exposure related to the financial viability of certain key third-party suppliers, some of which are our sole source for particular components. Lower expectations of growth and profitability have resulted in impairments of long-lived assets in the past and we could continue to experience pressure on the carrying values of our assets if conditions persist for an extended period of time. |
• | 2010 Emissions Standards—We have chosen EGR, combined with other technologies, as our solution to meet the 2010 |
• | 13 Liter / 15 Liter Engine Strategy—In conjunction with our EGR strategy, we only offer vehicles equipped with MaxxForce engines in the U.S. and Canada. For our Class 8 heavy and severe service lines, we offer our MaxxForce 11 and 13L engines, and launched our MaxxForce 15L engine during 2011. The Company has taken significant strides to demonstrate to our customers that, in many applications that historically used a 15L engine, our MaxxForce 13L provides sufficient horsepower and torque. |
• | Impact of Government Regulation—Truck and engine manufacturers continue to face significant governmental regulation of their products, especially in the areas of environmental and safety matters. Truck manufacturers are also subject to various noise standards imposed by federal, state, and local regulations. Government regulation related to climate change is under consideration at the U.S. federal and state levels. Because our products use fossil fuels, they may be impacted indirectly due to regulation, such as a cap and trade program, affecting the cost of fuels. In 2011, the EPA and NHTSA issued final rules setting greenhouse gas emission and fuel economy standards for medium and heavy-duty engines and vehicles, which begin to apply in 2014 and are fully implemented in model year 2017. The Company plans to comply with these rules through the use of existing technologies and implementation of emerging technologies as they become available. |
• | Warranty Costs—In 2010, we introduced changes to our engine line-up in response to 2010 emissions requirements ("2010 Engines"). Emissions regulations in the U.S. and Canada have resulted in rapid product development cycles, driving significant changes from previous engine models. Historically, warranty experience for launch-year engines has been higher compared to the prior model-year engines; however, over time we are able to refine both the design and manufacturing process to reduce both the volume and the severity of warranty claims. We have made substantial investments in engineering, product development, and testing within our 2010 Engines to mitigate some of the warranty exposure. Our proactive actions related to the launch of the 2010 Engines resulted in lower initial warranty costs and more rapid improvements than previous launches. Also contributing to higher warranty costs in 2011 is the use of all MaxxForce engines in our North America product offering compared to previous outside sourcing for various engine models for which warranty costs were included in the engine purchase price. |
• | Raw Material Commodity Costs—Commodity costs, which include steel, precious metals, resins, and petroleum products, increased by $112 million in 2011, decreased by $49 million in 2010, and increased by $23 million in 2009, as compared to the corresponding prior years. We continue to look for opportunities to mitigate the effects market-based commodity cost increases through a combination of design changes, material substitution, alternate supplier resourcing, global sourcing efforts, pricing performance, and hedging activities. The objective of this strategy is to ensure cost stability and competitiveness in an often volatile global marketplace. Generally, the impact of commodity costs fluctuation in the global market will be reflected in our financial results on a time lag, and to a greater or lesser degree than incurred by our supply base depending on many factors including the terms of supplier contracts, special pricing arrangements, and any commodity hedging strategies employed. |
• | Facilities Optimization—We continue to seek further opportunities for manufacturing and operating efficiencies within our facilities. In early 2010, we announced and implemented our plan to consolidate bus production within our Tulsa IC |
• | Joint Ventures and Other Investments—We continue to make substantial investments in joint ventures and other businesses that are considered key growth opportunities to our core operations, as well as important expansionary markets. In India, our joint ventures with Mahindra sell commercial trucks and buses, as well as diesel engines for medium and heavy commercial trucks and buses. We sell International and CAT branded trucks in North America, as well as in various global markets through our alliance with Caterpillar and our NC2 operations, which became a wholly owned subsidiary of Navistar, Inc. in September 2011. In addition, we expect to finalize our China engine joint venture with JAC in 2012. The Company has also made recent acquisitions that present opportunities to further vertically integrate our operations and our product offerings, including Continental Mixer in 2010 and both PPT and Monaco in 2009. |
• | GE Capital Alliance—In March 2010, we entered into a three-year Operating Agreement with GE (the "GE Operating Agreement"). Under the terms of the agreement, GE became our preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. We provide GE a loss sharing arrangement for certain credit losses, and under limited circumstances NFC retains the rights to originate retail customer financing. Loan originations under the GE Operating Agreement began in the third quarter of 2010, which will continue to reduce NFC originations and portfolio balances in the future. We expect retail finance receivables and retail finance revenues to continue to decline as our retail portfolio pays down. |
2011 | 2010 | Change | % Change | |||||||||||
(in millions, except per share data and % change) | ||||||||||||||
Sales and revenues, net | $ | 13,958 | $ | 12,145 | $ | 1,813 | 15 | |||||||
Costs of products sold | 11,262 | 9,741 | 1,521 | 16 | ||||||||||
Restructuring charges (benefit) | 92 | (15 | ) | 107 | N.M. | |||||||||
Impairment of property and equipment and intangible assets | 64 | — | 64 | N.M. | ||||||||||
Selling, general and administrative expenses | 1,434 | 1,406 | 28 | 2 | ||||||||||
Engineering and product development costs | 532 | 464 | 68 | 15 | ||||||||||
Interest expense | 247 | 253 | (6 | ) | (2 | ) | ||||||||
Other income, net | (64 | ) | (44 | ) | (20 | ) | 45 | |||||||
Total costs and expenses | 13,567 | 11,805 | 1,762 | 15 | ||||||||||
Equity in loss of non-consolidated affiliates | (71 | ) | (50 | ) | (21 | ) | 42 | |||||||
Income before income tax benefit (expense ) | 320 | 290 | 30 | 10 | ||||||||||
Income tax benefit (expense) | 1,458 | (23 | ) | 1,481 | N.M. | |||||||||
Net income | 1,778 | 267 | 1,511 | N.M. | ||||||||||
Less: Net income attributable to non-controlling interests | 55 | 44 | 11 | 25 | ||||||||||
Net income attributable to Navistar International Corporation | $ | 1,723 | $ | 223 | $ | 1,500 | N.M. | |||||||
Diluted earnings per share | $ | 22.64 | $ | 3.05 | $ | 19.59 | N.M. |
N.M. | Not meaningful. |
Total | U.S. and Canada | Rest of World (“ROW”) | |||||||||||||||||||||||||||||||||||||||||
2011 | 2010 | Change | % Change | 2011 | 2010 | Change | % Change | 2011 | 2010 | Change | % Change | ||||||||||||||||||||||||||||||||
(in millions, except % change) | |||||||||||||||||||||||||||||||||||||||||||
Truck | $ | 9,738 | $ | 8,207 | $ | 1,531 | 19 | $ | 8,330 | $ | 7,393 | $ | 937 | 13 | $ | 1,408 | $ | 814 | $ | 594 | 73 | ||||||||||||||||||||||
Engine | 3,791 | 2,986 | 805 | 27 | 1,692 | 1,611 | 81 | 5 | 2,099 | 1,375 | 724 | 53 | |||||||||||||||||||||||||||||||
Parts | 2,155 | 1,885 | 270 | 14 | 1,937 | 1,718 | 219 | 13 | 218 | 167 | 51 | 31 | |||||||||||||||||||||||||||||||
Financial Services | 291 | 309 | (18 | ) | (6 | ) | 227 | 254 | (27 | ) | (11 | ) | 64 | 55 | 9 | 16 | |||||||||||||||||||||||||||
Corporate and Eliminations | (2,017 | ) | (1,242 | ) | (775 | ) | 62 | (1,512 | ) | (1,056 | ) | (456 | ) | 43 | (505 | ) | (186 | ) | (319 | ) | 172 | ||||||||||||||||||||||
Total | $ | 13,958 | $ | 12,145 | $ | 1,813 | 15 | $ | 10,674 | $ | 9,920 | $ | 754 | 8 | $ | 3,284 | $ | 2,225 | $ | 1,059 | 48 |
2011 | 2010 | Change | % Change | |||||||||||
(in millions, except % change) | ||||||||||||||
Selling, general and administrative expenses, excluding items presented separately below | $ | 1,175 | $ | 1,014 | $ | 161 | 16 | |||||||
Postretirement benefits expense allocated to selling, general and administrative expenses | 98 | 157 | (59 | ) | (38 | ) | ||||||||
Dealcor expenses | 112 | 145 | (33 | ) | (23 | ) | ||||||||
Incentive compensation and profit sharing | 63 | 63 | — | — | ||||||||||
Provision for doubtful accounts | (14 | ) | 27 | (41 | ) | N.M. | ||||||||
Total selling, general and administrative expenses | $ | 1,434 | $ | 1,406 | $ | 28 | 2 |
N.M. | Not meaningful. |
2011 | 2010 | Change | % Change | |||||||||||
(in millions, except % change) | ||||||||||||||
Truck segment sales - U.S. and Canada | $ | 8,330 | $ | 7,393 | $ | 937 | 13 | |||||||
Truck segment sales - ROW | 1,408 | 814 | 594 | 73 | ||||||||||
Total Truck segment sales, net | $ | 9,738 | $ | 8,207 | $ | 1,531 | 19 | |||||||
Truck segment profit | $ | 336 | $ | 424 | $ | (88 | ) | (21 | ) |
2011 | 2010 | Change | % Change | ||||||||||
(in millions, except % change) | |||||||||||||
Engine segment sales - U.S. and Canada | $ | 1,692 | $ | 1,611 | $ | 81 | 5 | ||||||
Engine segment sales - ROW | 2,099 | 1,375 | 724 | 53 | |||||||||
Total Engine segment sales, net | $ | 3,791 | $ | 2,986 | $ | 805 | 27 | ||||||
Engine segment profit | $ | 84 | $ | 51 | $ | 33 | 65 |
2011 | 2010 | Change | % Change | ||||||||||
(in millions, except % change) | |||||||||||||
Parts segment sales - U.S. and Canada | $ | 1,937 | $ | 1,718 | $ | 219 | 13 | ||||||
Parts segment sales - ROW | 218 | 167 | 51 | 31 | |||||||||
Total Parts segment sales, net | $ | 2,155 | $ | 1,885 | $ | 270 | 14 | ||||||
Parts segment profit | $ | 287 | $ | 266 | $ | 21 | 8 |
2011 | 2010 | Change | % Change | |||||||||||
(in millions, except % change) | ||||||||||||||
Financial Services segment revenues - U.S. and Canada(A) | $ | 227 | $ | 254 | $ | (27 | ) | (11 | ) | |||||
Financial Services segment revenues - ROW | 64 | 55 | 9 | 16 | ||||||||||
Total Financial Services segment revenues, net | $ | 291 | $ | 309 | $ | (18 | ) | (6 | ) | |||||
Financial Services segment profit | $ | 129 | $ | 95 | $ | 34 | 36 |
(A) | Our Financial Services segment does not have Canadian operations. |
2011 | 2010 | Change | % Change | |||||||||||
(in millions, except % change) | ||||||||||||||
Due in one year | $ | 2,253 | $ | 1,881 | $ | 372 | 20 | |||||||
Due in two years | 361 | 526 | (165 | ) | (31 | ) | ||||||||
Due in three years | 240 | 359 | (119 | ) | (33 | ) | ||||||||
Thereafter | 189 | 377 | (188 | ) | (50 | ) | ||||||||
Gross finance receivables | $ | 3,043 | $ | 3,143 | $ | (100 | ) | (3 | ) |
2010 | 2009 | Change | % Change | |||||||||||
(in millions, except per share data and % change) | ||||||||||||||
Sales and revenues, net | $ | 12,145 | $ | 11,569 | $ | 576 | 5 | |||||||
Costs of products sold | 9,741 | 9,366 | 375 | 4 | ||||||||||
Restructuring charges (benefit) | (15 | ) | 59 | (74 | ) | N.M. | ||||||||
Impairment of property and equipment | — | 31 | (31 | ) | (100 | ) | ||||||||
Selling, general and administrative expenses | 1,406 | 1,344 | 62 | 5 | ||||||||||
Engineering and product development costs | 464 | 433 | 31 | 7 | ||||||||||
Interest expense | 253 | 251 | 2 | 1 | ||||||||||
Other income, net | (44 | ) | (228 | ) | 184 | (81 | ) | |||||||
Total costs and expenses | 11,805 | 11,256 | 549 | 5 | ||||||||||
Equity in income (loss) of non-consolidated affiliates | (50 | ) | 46 | (96 | ) | N.M. | ||||||||
Income before income tax expense and extraordinary gain | 290 | 359 | (69 | ) | (19 | ) | ||||||||
Income tax expense | (23 | ) | (37 | ) | 14 | (38 | ) | |||||||
Income before extraordinary gain | 267 | 322 | (55 | ) | (17 | ) | ||||||||
Extraordinary gain, net of tax | — | 23 | (23 | ) | (100 | ) | ||||||||
Net income | 267 | 345 | (78 | ) | (23 | ) | ||||||||
Less: Net income attributable to non-controlling interests | 44 | 25 | 19 | 76 | ||||||||||
Net income attributable to Navistar International Corporation | $ | 223 | $ | 320 | (97 | ) | (30 | ) | ||||||
Diluted earnings per share: | ||||||||||||||
Income attributable to Navistar International Corporation before extraordinary gain | $ | 3.05 | $ | 4.14 | $ | (1.09 | ) | (26 | ) | |||||
Extraordinary gain, net of tax | — | 0.32 | (0.32 | ) | (100 | ) | ||||||||
Net income attributable to Navistar International Corporation | $ | 3.05 | $ | 4.46 | $ | (1.41 | ) | (32 | ) |
Total | U.S. and Canada | ROW | ||||||||||||||||||||||||||||||||||||||||||
2010 | 2009 | Change | % Change | 2010 | 2009 | Change | % Change | 2010 | 2009 | Change | % Change | |||||||||||||||||||||||||||||||||
(in millions, except % change) | ||||||||||||||||||||||||||||||||||||||||||||
Truck | $ | 8,207 | $ | 7,297 | $ | 910 | 12 | $ | 7,393 | $ | 6,807 | $ | 586 | 9 | $ | 814 | $ | 490 | $ | 324 | 66 | |||||||||||||||||||||||
Engine | 2,986 | 2,690 | 296 | 11 | 1,611 | 1,836 | (225 | ) | (12 | ) | 1,375 | 854 | 521 | 61 | ||||||||||||||||||||||||||||||
Parts | 1,885 | 2,173 | (288 | ) | (13 | ) | 1,718 | 2,038 | (320 | ) | (16 | ) | 167 | 135 | 32 | 24 | ||||||||||||||||||||||||||||
Financial Services | 309 | 348 | (39 | ) | (11 | ) | 254 | 268 | (14 | ) | (5 | ) | 55 | 80 | (25 | ) | (31 | ) | ||||||||||||||||||||||||||
Corporate and Eliminations | (1,242 | ) | (939 | ) | (303 | ) | 32 | (1,056 | ) | (869 | ) | (187 | ) | 22 | (186 | ) | (70 | ) | (116 | ) | 166 | |||||||||||||||||||||||
Total | $ | 12,145 | $ | 11,569 | $ | 576 | 5 | $ | 9,920 | $ | 10,080 | $ | (160 | ) | (2 | ) | $ | 2,225 | $ | 1,489 | $ | 736 | 49 |
2010 | 2009 | Change | % Change | |||||||||||
(in millions, except % change) | ||||||||||||||
Selling, general and administrative expenses, excluding items presented separately below | $ | 1,016 | $ | 858 | $ | 158 | 18 | |||||||
Postretirement benefits expense allocated to selling, general and administrative expenses | 157 | 205 | (48 | ) | (23 | ) | ||||||||
Dealcor expenses | 145 | 162 | (17 | ) | (10 | ) | ||||||||
Incentive compensation and profit-sharing | 63 | 54 | 9 | 17 | ||||||||||
Provision for doubtful accounts | 27 | 52 | (25 | ) | (48 | ) | ||||||||
Personnel costs for employee terminations | (2 | ) | 13 | (15 | ) | N.M. | ||||||||
Total selling, general and administrative expenses | $ | 1,406 | $ | 1,344 | $ | 62 | 5 |
2010 | 2009 | Change | % Change | ||||||||||
(in millions, except % change) | |||||||||||||
Truck segment sales - U.S. and Canada | $ | 7,393 | $ | 6,807 | $ | 586 | 9 | ||||||
Truck segment sales - ROW | 814 | 490 | 324 | 66 | |||||||||
Total Truck segment sales, net | $ | 8,207 | $ | 7,297 | $ | 910 | 12 | ||||||
Truck segment profit | $ | 424 | $ | 147 | $ | 277 | 188 |
2010 | 2009 | Change | % Change | |||||||||||
(in millions, except % change) | ||||||||||||||
Engine segment sales - U.S. and Canada | $ | 1,611 | $ | 1,836 | $ | (225 | ) | (12 | ) | |||||
Engine segment sales - ROW | 1,375 | 854 | 521 | 61 | ||||||||||
Total Engine segment sales, net | $ | 2,986 | $ | 2,690 | $ | 296 | 11 | |||||||
Engine segment profit(A) | $ | 51 | $ | 253 | $ | (202 | ) | (80 | ) |
(A) | Included in Engine segment profit for 2009 was income of $160 million from the Ford Settlement, net of related charges. |
2010 | 2009 | Change | % Change | ||||||||||||
(in millions, except % change) | |||||||||||||||
Parts segment sales - U.S. and Canada | $ | 1,718 | $ | 2,038 | $ | (320 | ) | (16 | ) | ||||||
Parts segment sales - ROW | 167 | 135 | 32 | 24 | |||||||||||
Total Parts segment sales, net | $ | 1,885 | $ | 2,173 | $ | (288 | ) | (13 | ) | ||||||
Parts segment profit | $ | 266 | $ | 436 | $ | (170 | ) | (39 | ) |
2010 | 2009 | Change | % Change | ||||||||||||
(in millions, except % change) | |||||||||||||||
Financial Services segment revenues - U.S. and Canada(A) | $ | 254 | $ | 268 | $ | (14 | ) | (5 | ) | ||||||
Financial Services segment revenues - ROW | 55 | 80 | (25 | ) | (31 | ) | |||||||||
Total Financial Services segment revenues, net | $ | 309 | $ | 348 | $ | (39 | ) | (11 | ) | ||||||
Financial Services segment profit (loss) | $ | 95 | $ | 40 | $ | 55 | 138 |
(A) | Our Financial Services segment does not have Canadian operations or revenues. |
2010 | 2009 | Change | % Change | ||||||||||||
(in millions, except % change) | |||||||||||||||
Due in one year | $ | 1,881 | $ | 1,831 | $ | 50 | 3 | ||||||||
Due in two years | 526 | 696 | (170 | ) | (24 | ) | |||||||||
Due in three years | 359 | 478 | (119 | ) | (25 | ) | |||||||||
Thereafter | 377 | 494 | (117 | ) | (24 | ) | |||||||||
Gross finance receivables | $ | 3,143 | $ | 3,499 | $ | (356 | ) | (10 | ) |
2011(A) | 2010(B) | 2009(B) | 2011 vs. 2010 | 2010 vs. 2009 | ||||||||||||||||
Change | % Change | Change | % Change | |||||||||||||||||
(in units) | ||||||||||||||||||||
“Traditional” Markets (U.S. and Canada) | ||||||||||||||||||||
School buses | 18,600 | 20,900 | 22,600 | (2,300 | ) | (11 | ) | (1,700 | ) | (8 | ) | |||||||||
Class 6 and 7 medium trucks | 64,600 | 46,400 | 39,800 | 18,200 | 39 | 6,600 | 17 | |||||||||||||
Class 8 heavy trucks | 139,700 | 92,600 | 77,700 | 47,100 | 51 | 14,900 | 19 | |||||||||||||
Class 8 severe service trucks | 39,400 | 34,600 | 40,500 | 4,800 | 14 | (5,900 | ) | (15 | ) | |||||||||||
Total “traditional” markets | 262,300 | 194,500 | 180,600 | 67,800 | 35 | 13,900 | 8 | |||||||||||||
Combined class 8 trucks | 179,100 | 127,200 | 118,200 | 51,900 | 41 | 9,000 | 8 | |||||||||||||
Navistar “traditional” retail deliveries | 73,000 | 65,400 | 65,000 | 7,600 | 12 | 400 | 1 |
(A) | Beginning in 2011, our competitors are reporting certain RV and commercial bus chassis units consistently with how we report these units. |
(B) | Industry retail deliveries for 2010 and 2009 have been recast to include 3,200 units, and 6,200 units, respectively, to reflect our new methodology for categorization of “traditional” units whereby militarized commercial vehicles sold to the U.S. and Canadian militaries are classified as Class 8 severe service within our “traditional” markets. |
2011(A) | 2010(B) | 2009(B) | ||||||
“Traditional” Markets (U.S. and Canada) | ||||||||
School buses | 48 | % | 59 | % | 61 | % | ||
Class 6 and 7 medium trucks | 41 | 38 | 35 | |||||
Class 8 heavy trucks | 17 | 24 | 25 | |||||
Class 8 severe service trucks | 35 | 40 | 43 | |||||
Total “traditional” markets | 28 | 34 | 36 | |||||
Combined class 8 trucks | 21 | 28 | 31 |
(A) | Beginning in 2011, our competitors are reporting certain RV and commercial bus chassis units consistently with how we report these units, on which the calculation of retail delivery market share is based. |
(B) | As footnoted in the Industry retail deliveries table, Retail delivery market share for 2010 and 2009 has been recast to reflect our new methodology for categorization of “traditional” units whereby militarized commercial vehicles sold to the U.S. and Canadian militaries are classified as Class 8 severe service within our “traditional” markets. |
2011 vs. 2010 | 2010 vs. 2009 | |||||||||||||||||||
2011 | 2010(A) | 2009(A) | Change | % Change | Change | % Change | ||||||||||||||
(in units) | ||||||||||||||||||||
“Traditional” Markets (U.S. and Canada) | ||||||||||||||||||||
School buses | 8,600 | 7,800 | 18,300 | 800 | 10 | (10,500 | ) | (57 | ) | |||||||||||
Class 6 and 7 medium trucks | 28,000 | 17,700 | 15,100 | 10,300 | 58 | 2,600 | 17 | |||||||||||||
Class 8 heavy trucks | 29,600 | 20,200 | 19,900 | 9,400 | 47 | 300 | 2 | |||||||||||||
Class 8 severe service trucks | 13,100 | 13,300 | 15,100 | (200 | ) | (2 | ) | (1,800 | ) | (12 | ) | |||||||||
Total “traditional” markets | 79,300 | 59,000 | 68,400 | 20,300 | 34 | (9,400 | ) | (14 | ) | |||||||||||
Combined class 8 trucks | 42,700 | 33,500 | 35,000 | 9,200 | 27 | (1,500 | ) | (4 | ) |
(A) | Truck segment net orders for 2010 and 2009 have been recast to include 3,300 units and 3,900 units, respectively, to reflect our new methodology for categorization of “traditional” units whereby militarized commercial vehicles sold to the U.S. and Canadian militaries are classified as Class 8 severe service within our “traditional” markets. |
2011 vs. 2010 | 2010 vs. 2009 | |||||||||||||||||||
2011 | 2010(A) | 2009(A) | Change | % Change | Change | % Change | ||||||||||||||
(in units) | ||||||||||||||||||||
“Traditional” Markets (U.S. and Canada) | ||||||||||||||||||||
School buses | 1,200 | 1,500 | 5,800 | (300 | ) | (20 | ) | (4,300 | ) | (74 | ) | |||||||||
Class 6 and 7 medium trucks | 6,100 | 4,700 | 6,100 | 1,400 | 30 | (1,400 | ) | (23 | ) | |||||||||||
Class 8 heavy trucks | 9,300 | 6,300 | 7,800 | 3,000 | 48 | (1,500 | ) | (19 | ) | |||||||||||
Class 8 severe service trucks | 3,400 | 3,100 | 3,500 | 300 | 10 | (400 | ) | (11 | ) | |||||||||||
Total “traditional” markets | 20,000 | 15,600 | 23,200 | 4,400 | 28 | (7,600 | ) | (33 | ) | |||||||||||
Combined class 8 trucks | 12,700 | 9,400 | 11,300 | 3,300 | 35 | (1,900 | ) | (17 | ) |
(A) | Truck segment backlog as of October 31, 2010 and October 31, 2009 have been recast to include 1,000 units and 1,200 units, respectively, to reflect our new methodology for categorization of “traditional” units whereby militarized commercial vehicles sold to the U.S. and Canadian militaries are classified as Class 8 severe service within our “traditional” markets. |
2011 vs. 2010 | 2010 vs. 2009 | ||||||||||||||||||||
2011 | 2010(A) | 2009(A) | Change | % Change | Change | % Change | |||||||||||||||
(in units) | |||||||||||||||||||||
“Traditional” Markets (U.S. and Canada) | |||||||||||||||||||||
School buses | 9,200 | 12,400 | 13,800 | (3,200 | ) | (26 | ) | (1,400 | ) | (10 | ) | ||||||||||
Class 6 and 7 medium trucks | 27,100 | 18,500 | 13,000 | 8,600 | 46 | 5,500 | 42 | ||||||||||||||
Class 8 heavy trucks | 25,700 | 21,600 | 19,100 | 4,100 | 19 | 2,500 | 13 | ||||||||||||||
Class 8 severe service trucks | 13,300 | 14,000 | 17,200 | (700 | ) | (5 | ) | (3,200 | ) | (19 | ) | ||||||||||
Total “traditional” markets | 75,300 | 66,500 | 63,100 | 8,800 | 13 | 3,400 | 5 | ||||||||||||||
Non "traditional" military(B) | 1,400 | 1,400 | 1,600 | — | — | (200 | ) | (13 | ) | ||||||||||||
“Expansion” markets(C) | 31,700 | 19,100 | 11,100 | 12,600 | 66 | 8,000 | 72 | ||||||||||||||
Total worldwide units(D) | 108,400 | 87,000 | 75,800 | 21,400 | 25 | 11,200 | 15 | ||||||||||||||
Combined class 8 trucks | 39,000 | 35,600 | 36,300 | 3,400 | 10 | (700 | ) | (2 | ) | ||||||||||||
Combined military(E) | 3,700 | 4,600 | 7,900 | (900 | ) | (20 | ) | (3,300 | ) | (42 | ) |
(A) | Truck segment chargeouts for 2010 and 2009 have been recast to include 3,200 units and 6,200 units, respectively, to reflect our new methodology for categorization of “traditional” units whereby militarized commercial vehicles sold to the U.S. and Canadian militaries are classified as Class 8 severe service within our “traditional” markets. |
(B) | Excludes U.S. and Canada militarized commercial units included in "traditional" markets Class 8 severe service trucks. |
(C) | Includes 6,700 units, 3,800 units, and 1,100 units 2011, 2010, and 2009, respectively, related to BDT. |
(D) | Chargeouts for 2011, 2010, and 2009 exclude 2,800 units, 4,000 units, and 1,000 units, respectively, related to RV towables. |
(E) | Includes all units reported as non "traditional" military, along with 2,100 units, 3,200 units, and 6,200 units for 2011, 2010, and 2009, respectively, reported within "traditional" markets Class 8 severe service, and 200 units and 100 units for 2011 and 2009, respectively, reported within "expansion" markets. |
2011 vs. 2010 | 2010 vs. 2009 | ||||||||||||||||||||
2011 | 2010 | 2009 | Change | % Change | Change | % Change | |||||||||||||||
(in units) | |||||||||||||||||||||
OEM sales-South America(A) | 138,600 | 132,800 | 99,200 | 5,800 | 4 | 33,600 | 34 | ||||||||||||||
Ford sales-U.S. and Canada | — | 24,900 | 101,500 | (24,900 | ) | (100 | ) | (76,600 | ) | (75 | ) | ||||||||||
Intercompany sales | 88,800 | 68,500 | 57,300 | 20,300 | 30 | 11,200 | 20 | ||||||||||||||
Other OEM sales | 16,200 | 14,200 | 11,300 | 2,000 | 14 | 2,900 | 26 | ||||||||||||||
Total sales | 243,600 | 240,400 | 269,300 | 3,200 | 1 | (28,900 | ) | (11 | ) |
(A) | Includes 27,000 units, 22,300 units, and 11,700 units in 2011, 2010, and 2009, respectively, related to Ford. |
2011 | 2010 | 2009 | ||||||||||
(in millions) | ||||||||||||
Cash and cash equivalents | $ | 539 | $ | 585 | $ | 1,212 | ||||||
Marketable securities | 718 | 586 | — | |||||||||
Cash, cash equivalents and marketable securities at end of the period | $ | 1,257 | $ | 1,171 | $ | 1,212 |
Manufacturing Operations | Financial Services Operations and Adjustments | Condensed Consolidated Statement of Cash Flows | ||||||||||
(in millions) | ||||||||||||
For the Year Ended October 31, 2011 | ||||||||||||
Net cash provided by (used in) operating activities | $ | 680 | $ | 200 | $ | 880 | ||||||
Net cash provided by (used in) investing activities | (617 | ) | (206 | ) | (823 | ) | ||||||
Net cash provided by (used in) financing activities | (106 | ) | 6 | (100 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (3 | ) | — | (3 | ) | |||||||
Increase (decrease) in cash and cash equivalents | (46 | ) | — | (46 | ) | |||||||
Cash and cash equivalents at beginning of the year | 534 | 51 | 585 | |||||||||
Cash and cash equivalents at end of the year | $ | 488 | $ | 51 | $ | 539 |
Manufacturing Operations | Financial Services Operations and Adjustments | Condensed Consolidated Statement of Cash Flows | ||||||||||
(in millions) | ||||||||||||
For the Year Ended October 31, 2010 | ||||||||||||
Net cash provided by operating activities | $ | 409 | $ | 698 | $ | 1,107 | ||||||
Net cash provided by (used in) investing activities | (916 | ) | 482 | (434 | ) | |||||||
Net cash used in financing activities | (110 | ) | (1,190 | ) | (1,300 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1 | ) | 1 | — | ||||||||
Decrease in cash and cash equivalents | (618 | ) | (9 | ) | (627 | ) | ||||||
Cash and cash equivalents at beginning of the year | 1,152 | 60 | 1,212 | |||||||||
Cash and cash equivalents at end of the year | $ | 534 | $ | 51 | $ | 585 |
Manufacturing Operations | Financial Services Operations and Adjustments | Condensed Consolidated Statement of Cash Flows | ||||||||||
(in millions) | ||||||||||||
For the Year Ended October 31, 2009 | ||||||||||||
Net cash provided by operating activities | $ | 534 | $ | 704 | $ | 1,238 | ||||||
Net cash provided by (used in) investing activities | (282 | ) | 70 | (212 | ) | |||||||
Net cash provided by (used in) financing activities | 36 | (800 | ) | (764 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | 9 | — | 9 | |||||||||
Increase (decrease) in cash and cash equivalents | 297 | (26 | ) | 271 | ||||||||
Increase in cash and cash equivalents upon consolidation of BDP and BDT | 80 | — | 80 | |||||||||
Cash and cash equivalents at beginning of the year | 775 | 86 | 861 | |||||||||
Cash and cash equivalents at end of the year | $ | 1,152 | $ | 60 | $ | 1,212 |
Company | Instrument Type | Total Amount | Purpose of Funding | Amount Utilized | Matures or Expires | |||||||||
(in millions) | ||||||||||||||
NFSC | Revolving wholesale note trust | $ | 1,100 | Eligible wholesale notes | $ | 930 | 2012 | |||||||
TRAC | Revolving retail account conduit | 100 | Eligible retail accounts | 92 | 2012 | |||||||||
NFC | Credit agreement | 808 | (A) | Finance receivables and general corporate purposes | 758 | 2012 | ||||||||
NFM | Bank lines and commercial paper | 428 | General corporate purposes | 348 | 2012-2016 |
(A) | NFM can borrow up to $100 million, if not used by NFC. |
Payments Due by Year Ending October 31, | |||||||||||||||||||
Total | 2012 | 2013- 2014 | 2015- 2016 | 2017 + | |||||||||||||||
(in millions) | |||||||||||||||||||
Type of contractual obligation: | |||||||||||||||||||
Long-term debt obligations(A) | $ | 4,844 | $ | 1,344 | $ | 1,317 | $ | 181 | $ | 2,002 | |||||||||
Interest on long-term debt (A)(B) | 1,454 | 171 | 265 | 239 | 779 | ||||||||||||||
Financing arrangements and capital lease obligations(C) | 128 | 39 | 85 | 1 | 3 | ||||||||||||||
Operating lease obligations(D) | 317 | 52 | 93 | 72 | 100 | ||||||||||||||
Purchase obligations(E) | 117 | 110 | 7 | — | — | ||||||||||||||
Total | $ | 6,860 | $ | 1,716 | $ | 1,767 | $ | 493 | $ | 2,884 |
(A) | Amounts include the borrowing of $100 million under the Asset-Based Credit Facility in November 2011, reflected as being due in 2017. Also, the amounts reflect the NFC refinancing of its bank credit facility in December 2011 with a five-year revolving line of credit and term loan, totaling $840 million, which shifted certain debt maturities to be largely due in 2017. For additional information, see Note 10, Debt, to the accompanying consolidated financial statements. |
(B) | Amounts represent estimated contractual interest payments on outstanding debt. Rates in effect as of October 31, 2010 are used for variable rate debt. For more information, see Note 10, Debt, to the accompanying consolidated financial statements. |
(C) | We lease many of our facilities as well as other property and equipment under financing arrangements and capital leases in the normal course of business including $10 million of interest obligation. For more information, see Note 7, Property and equipment, net, to the accompanying consolidated financial statements. |
(D) | Amounts include agreements relating to a facility in Cherokee, Alabama, which we signed in October 2011 and will take possession of on January 1, 2012. Lease obligations for facility closures are included in operating leases. Future operating lease obligations are not recognized in our Consolidated Balance Sheet. For more information, see Note 7, Property and equipment, net, to the accompanying consolidated financial statements. |
(E) | Purchase obligations include various commitments in the ordinary course of business that would include the purchase of goods or services and they are not recognized in our Consolidated Balance Sheet. |
• | the nature of the estimate or assumption is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change, or |
• | the impact of the estimate and assumption on financial condition or operating performance is material. |
• | Plant rationalization activities impact the determination of whether a plan curtailment or settlement has occurred. Key considerations include, but are not limited to, expected future service credit, the remaining years of recall rights of the workforce, and the extent to which minimum service requirements (in the case of healthcare benefits) have been met. |
• | The discount rates are obtained by matching the anticipated future benefit payments for the plans to the Citigroup yield curve to establish a weighted average discount rate for each plan. |
• | Health care cost trend rates are developed based upon historical retiree cost trend data, short term health care outlook, and industry benchmarks and surveys. The inflation assumptions used are based upon both our specific trends and nationally expected trends. |
• | The expected return on plan assets is derived from historical plan returns, expected long-term performance of asset classes, asset allocations, input from an external pension investment advisor, and risks and other factors adjusted for our specific investment strategy. The focus is on long-term trends and provides for the consideration of recent plan performance. |
• | Retirement rates are based upon actual and projected plan experience. |
• | Mortality rates are developed from actual and projected plan experience. |
• | The rate of compensation increase reflects our long-term actual experience and our projected future increases including contractually agreed upon wage rate increases for represented employees. |
October 31, 2011 | 2012 Expense | ||||||||||||||
Obligations | |||||||||||||||
Pension | OPEB | Pension | OPEB | ||||||||||||
(in millions) | |||||||||||||||
Discount rate | |||||||||||||||
Increase of 1.0% | $ | (372 | ) | $ | (194 | ) | $ | (3 | ) | $ | (4 | ) | |||
Decrease of 1.0% | 405 | 227 | (1 | ) | 4 | ||||||||||
Expected return on assets | |||||||||||||||
Increase of 1.0% | NA | NA | (24 | ) | (4 | ) | |||||||||
Decrease of 1.0% | NA | NA | 24 | 4 |
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk |
Item 8. | Financial Statements and Supplementary Data |
Page | |
Notes to Consolidated Financial Statements | ||
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For the Years Ended October 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
(in millions, except per share data) | ||||||||||||
Sales and revenues | ||||||||||||
Sales of manufactured products, net | $ | 13,758 | $ | 11,926 | $ | 11,300 | ||||||
Finance revenues | 200 | 219 | 269 | |||||||||
Sales and revenues, net | 13,958 | 12,145 | 11,569 | |||||||||
Costs and expenses | ||||||||||||
Costs of products sold | 11,262 | 9,741 | 9,366 | |||||||||
Restructuring charges (benefit) | 92 | (15 | ) | 59 | ||||||||
Impairment of property and equipment and intangible assets | 64 | — | 31 | |||||||||
Selling, general and administrative expenses | 1,434 | 1,406 | 1,344 | |||||||||
Engineering and product development costs | 532 | 464 | 433 | |||||||||
Interest expense | 247 | 253 | 251 | |||||||||
Other income, net | (64 | ) | (44 | ) | (228 | ) | ||||||
Total costs and expenses | 13,567 | 11,805 | 11,256 | |||||||||
Equity in income (loss) of non-consolidated affiliates | (71 | ) | (50 | ) | 46 | |||||||
Income before income tax benefit (expense) and extraordinary gain | 320 | 290 | 359 | |||||||||
Income tax benefit (expense) | 1,458 | (23 | ) | (37 | ) | |||||||
Income before extraordinary gain | 1,778 | 267 | 322 | |||||||||
Extraordinary gain, net of tax | — | — | 23 | |||||||||
Net income | 1,778 | 267 | 345 | |||||||||
Less: Net income attributable to non-controlling interests | 55 | 44 | 25 | |||||||||
Net income attributable to Navistar International Corporation | $ | 1,723 | $ | 223 | $ | 320 | ||||||
Basic earnings per share: | ||||||||||||
Income attributable to Navistar International Corporation before extraordinary gain | $ | 23.66 | $ | 3.11 | $ | 4.18 | ||||||
Extraordinary gain, net of tax | — | — | 0.33 | |||||||||
Net income attributable to Navistar International Corporation | $ | 23.66 | $ | 3.11 | $ | 4.51 | ||||||
Diluted earnings per share: | ||||||||||||
Income attributable to Navistar International Corporation before extraordinary gain | 22.64 | 3.05 | 4.14 | |||||||||
Extraordinary gain, net of tax | — | — | 0.32 | |||||||||
Net income attributable to Navistar International Corporation | $ | 22.64 | $ | 3.05 | $ | 4.46 | ||||||
Weighted average shares outstanding: | ||||||||||||
Basic | 72.8 | 71.7 | 71.0 | |||||||||
Diluted | 76.1 | 73.2 | 71.8 |
As of October 31, | ||||||||
2011 | 2010 | |||||||
(in millions, except per share data) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 539 | $ | 585 | ||||
Restricted cash and cash equivalents | 100 | $ | — | |||||
Marketable securities | 718 | 586 | ||||||
Trade and other receivables, net | 1,219 | 987 | ||||||
Finance receivables, net | 2,198 | 1,770 | ||||||
Inventories | 1,714 | 1,568 | ||||||
Deferred taxes, net | 474 | 83 | ||||||
Other current assets | 273 | 256 | ||||||
Total current assets | 7,235 | 5,835 | ||||||
Restricted cash and cash equivalents | 227 | 180 | ||||||
Trade and other receivables, net | 122 | 44 | ||||||
Finance receivables, net | 715 | 1,145 | ||||||
Investments in non-consolidated affiliates | 60 | 103 | ||||||
Property and equipment, net | 1,570 | 1,442 | ||||||
Goodwill | 319 | 324 | ||||||
Intangible assets, net | 234 | 262 | ||||||
Deferred taxes, net | 1,583 | 63 | ||||||
Other noncurrent assets | 226 | 332 | ||||||
Total assets | $ | 12,291 | $ | 9,730 | ||||
LIABILITIES and STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
Liabilities | ||||||||
Current liabilities | ||||||||
Notes payable and current maturities of long-term debt | $ | 1,379 | $ | 632 | ||||
Accounts payable | 2,122 | 1,827 | ||||||
Other current liabilities | 1,297 | 1,130 | ||||||
Total current liabilities | 4,798 | 3,589 | ||||||
Long-term debt | 3,477 | 4,238 | ||||||
Postretirement benefits liabilities | 3,210 | 2,097 | ||||||
Deferred taxes, net | 59 | 142 | ||||||
Other noncurrent liabilities | 719 | 588 | ||||||
Total liabilities | 12,263 | 10,654 | ||||||
Redeemable equity securities | 5 | 8 | ||||||
Stockholders’ equity (deficit) | ||||||||
Series D convertible junior preference stock | 3 | 4 | ||||||
Common stock ($0.10 par value per share, 220.0 and 110.0 shares authorized, at the respective dates, 75.4 shares issued at both dates) | 7 | 7 | ||||||
Additional paid in capital | 2,253 | 2,206 | ||||||
Accumulated deficit | (155 | ) | (1,878 | ) | ||||
Accumulated other comprehensive loss | (1,944 | ) | (1,196 | ) | ||||
Common stock held in treasury, at cost (4.9 and 3.6 shares, at the respective dates) | (191 | ) | (124 | ) | ||||
Total stockholders’ deficit attributable to Navistar International Corporation | (27 | ) | (981 | ) | ||||
Stockholders’ equity attributable to non-controlling interests | 50 | 49 | ||||||
Total stockholders’ equity (deficit) | 23 | (932 | ) | |||||
Total liabilities and stockholders’ equity (deficit) | $ | 12,291 | $ | 9,730 |
For the Years Ended October 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
(in millions) | ||||||||||||
Cash flows from operating activities | ||||||||||||
Net income | $ | 1,778 | $ | 267 | $ | 345 | ||||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 290 | 265 | 288 | |||||||||
Depreciation of equipment leased to others | 38 | 51 | 56 | |||||||||
Deferred taxes, including change in valuation allowance | (1,513 | ) | 17 | (18 | ) | |||||||
Impairment of property and equipment, goodwill, and intangible assets | 75 | — | 41 | |||||||||
Amortization of debt issuance costs and discount | 44 | 38 | 16 | |||||||||
Stock-based compensation | 36 | 24 | 16 | |||||||||
Provision for doubtful accounts, net of recoveries | (6 | ) | 29 | 50 | ||||||||
Equity in loss of non-consolidated affiliates, net of dividends | 75 | 55 | 13 | |||||||||
Other non-cash operating activities | (15 | ) | 61 | 54 | ||||||||
Changes in other assets and liabilities, exclusive of the effects of businesses acquired and disposed: | ||||||||||||
Trade and other receivables | (212 | ) | (136 | ) | 197 | |||||||
Finance receivables | 8 | 546 | 391 | |||||||||
Inventories | (129 | ) | 122 | 135 | ||||||||
Accounts payable | 247 | (72 | ) | (204 | ) | |||||||
Other assets and liabilities | 164 | (160 | ) | (142 | ) | |||||||
Net cash provided by operating activities | 880 | 1,107 | 1,238 | |||||||||
Cash flows from investing activities | ||||||||||||
Purchases of marketable securities | (1,562 | ) | (1,876 | ) | (382 | ) | ||||||
Sales or maturities of marketable securities | 1,430 | 1,290 | 384 | |||||||||
Net change in restricted cash and cash equivalents | (147 | ) | 515 | 71 | ||||||||
Capital expenditures | (429 | ) | (234 | ) | (151 | ) | ||||||
Purchase of equipment leased to others | (71 | ) | (45 | ) | (46 | ) | ||||||
Proceeds from sales of property and equipment | 32 | 23 | 6 | |||||||||
Investments in non-consolidated affiliates | (65 | ) | (97 | ) | (44 | ) | ||||||
Proceeds from sales of affiliates | 3 | 7 | 10 | |||||||||
Acquisition of intangibles | (26 | ) | (15 | ) | — | |||||||
Business acquisitions, net of cash received | 12 | (2 | ) | (60 | ) | |||||||
Net cash used in investing activities | (823 | ) | (434 | ) | (212 | ) | ||||||
Cash flows from financing activities | ||||||||||||
Proceeds from issuance of securitized debt | 599 | 1,460 | 349 | |||||||||
Principal payments on securitized debt | (708 | ) | (1,579 | ) | (1,191 | ) | ||||||
Proceeds from issuance of non-securitized debt | 214 | 687 | 1,868 | |||||||||
Principal payments on non-securitized debt | (107 | ) | (883 | ) | (1,793 | ) | ||||||
Net increase (decrease) in notes and debt outstanding under revolving credit facilities | 137 | (866 | ) | 159 | ||||||||
Principal payments under financing arrangements and capital lease obligations | (86 | ) | (62 | ) | (42 | ) | ||||||
Debt issuance costs | (11 | ) | (35 | ) | (40 | ) | ||||||
Purchase of treasury stock | (125 | ) | — | (29 | ) | |||||||
Call options and warrants, net | — | — | (38 | ) | ||||||||
Proceeds from exercise of stock options | 40 | 35 | 13 | |||||||||
Dividends paid by subsidiaries to non-controlling interest | (53 | ) | (57 | ) | (20 | ) | ||||||
Net cash used in financing activities | (100 | ) | (1,300 | ) | (764 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (3 | ) | — | 9 | ||||||||
Increase (decrease) in cash and cash equivalents | (46 | ) | (627 | ) | 271 | |||||||
Increase in cash and cash equivalents upon consolidation of Blue Diamond Parts and Blue Diamond Truck | — | — | 80 | |||||||||
Cash and cash equivalents at beginning of the year | 585 | 1,212 | 861 | |||||||||
Cash and cash equivalents at end of the year | $ | 539 | $ | 585 | $ | 1,212 |
Series D Convertible Junior Preference Stock | Common Stock | Additional Paid-in Capital | Comprehensive Income (Loss) | Accumulated Deficit | Accumulated Other Comprehensive Loss | Common Stock Held in Treasury, at cost | Stockholders' Equity Attributable to Noncontrolling Interests | Total | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Balance as of October 31, 2008 | $ | 4 | $ | 7 | $ | 1,966 | $ | (2,421 | ) | $ | (957 | ) | $ | (137 | ) | $ | 6 | $ | (1,532 | ) | |||||||||||||||
Net income | $ | 320 | 320 | 25 | 345 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | 97 | 97 | |||||||||||||||||||||||||||||||||
Postretirement benefit adjustment | (830 | ) | (830 | ) | |||||||||||||||||||||||||||||||
Total other comprehensive loss | (733 | ) | (733 | ) | |||||||||||||||||||||||||||||||
Total comprehensive loss | $ | (413 | ) | ||||||||||||||||||||||||||||||||
Stock options recorded as redeemable equity securities | (6 | ) | (6 | ) | |||||||||||||||||||||||||||||||
Redeemable equity securities modification | 130 | 130 | |||||||||||||||||||||||||||||||||
Transfer from redeemable equity securities upon exercise or expiration of stock options | 6 | 6 | |||||||||||||||||||||||||||||||||
Stock-based compensation | 16 | 16 | |||||||||||||||||||||||||||||||||
Stock ownership programs | (3 | ) | 17 | 14 | |||||||||||||||||||||||||||||||
Stock repurchase programs | (29 | ) | (29 | ) | |||||||||||||||||||||||||||||||
Call options and warrants, net | (38 | ) | (38 | ) | |||||||||||||||||||||||||||||||
Equity component of convertible debt instruments | 110 | 110 | |||||||||||||||||||||||||||||||||
Cash dividends paid to non-controlling interest | (20 | ) | (20 | ) | |||||||||||||||||||||||||||||||
Non-controlling interest upon consolidation of BDP and BDT | 53 | 53 | |||||||||||||||||||||||||||||||||
Other | (3 | ) | (3 | ) | |||||||||||||||||||||||||||||||
Balance as of October 31, 2009 | $ | 4 | $ | 7 | $ | 2,181 | $ | (2,101 | ) | $ | (1,690 | ) | $ | (149 | ) | $ | 61 | $ | (1,687 | ) | |||||||||||||||
Net income | $ | 223 | 223 | 44 | 267 | ||||||||||||||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | 22 | 22 | |||||||||||||||||||||||||||||||||
Postretirement benefit adjustment | 472 | 472 | |||||||||||||||||||||||||||||||||
Total other comprehensive income | 494 | 494 | |||||||||||||||||||||||||||||||||
Total comprehensive income | $ | 717 | |||||||||||||||||||||||||||||||||
Transfer from redeemable equity securities upon exercise or expiration of stock options | 5 | 5 | |||||||||||||||||||||||||||||||||
Stock-based compensation | 18 | 18 | |||||||||||||||||||||||||||||||||
Stock ownership programs | 2 | 25 | 27 | ||||||||||||||||||||||||||||||||
Cash dividends paid to non-controlling interest | (57 | ) | (57 | ) | |||||||||||||||||||||||||||||||
Other | — | 1 | 1 | ||||||||||||||||||||||||||||||||
Balance as of October 31, 2010 | $ | 4 | $ | 7 | $ | 2,206 | $ | (1,878 | ) | $ | (1,196 | ) | $ | (124 | ) | $ | 49 | $ | (932 | ) | |||||||||||||||
Net income | 1,723 | 1,723 | 55 | 1,778 | |||||||||||||||||||||||||||||||
Other comprehensive loss: | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (19 | ) | (19 | ) | |||||||||||||||||||||||||||||||
Postretirement benefit adjustment (net of $430 tax benefit) | (729 | ) | (729 | ) | |||||||||||||||||||||||||||||||
Total other comprehensive loss | (748 | ) | (748 | ) | |||||||||||||||||||||||||||||||
Total comprehensive income | 975 | ||||||||||||||||||||||||||||||||||
Transfer from redeemable equity securities upon exercise or expiration of stock options | 3 | 3 | |||||||||||||||||||||||||||||||||
Stock-based compensation | 27 | 27 | |||||||||||||||||||||||||||||||||
Stock ownership programs | (8 | ) | 38 | 30 | |||||||||||||||||||||||||||||||
Stock repurchase programs | (105 | ) | (105 | ) | |||||||||||||||||||||||||||||||
Forward contract for accelerated stock repurchase program | (20 | ) | (20 | ) | |||||||||||||||||||||||||||||||
Impact to additional paid-in capital for valuation allowance release | 45 | 45 | |||||||||||||||||||||||||||||||||
Cash dividends paid to non-controlling interest | (53 | ) | (53 | ) | |||||||||||||||||||||||||||||||
Other | (1 | ) | (1 | ) | (2 | ) | |||||||||||||||||||||||||||||
Balance as of October 31, 2011 | $ | 3 | $ | 7 | $ | 2,253 | $ | (155 | ) | $ | (1,944 | ) | $ | (191 | ) | $ | 50 | $ | 23 |
Years | |
Buildings | 20 - 50 |
Leasehold improvements | 3 - 20 |
Machinery and equipment | 3 - 12 |
Furniture, fixtures, and equipment | 3 - 15 |
Equipment leased to others | 1 - 10 |
Years | ||
Customer base and relationships | 3 - 15 | |
Trademarks | 20 | |
Supply agreements | 3 | |
Other | 3 - 18 |
2011 | 2010 | 2009 | |||||||||
(in millions) | |||||||||||
Balance, at beginning of year | $ | 506 | $ | 492 | $ | 602 | |||||
Costs accrued and revenues deferred | 407 | 269 | 217 | ||||||||
Acquisitions | 5 | — | — | ||||||||
Adjustments to pre-existing warranties(A) | 79 | 51 | 114 | ||||||||
Payments and revenues recognized | (399 | ) | (306 | ) | (366 | ) | |||||
Warranty adjustment related to legal settlement(B) | — | — | (75 | ) | |||||||
Balance, at end of year | 598 | 506 | $ | 492 | |||||||
Less: Current portion | 263 | 252 | 246 | ||||||||
Noncurrent accrued product warranty and deferred warranty revenue | $ | 335 | $ | 254 | $ | 246 |
(A) | Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. In the third quarter of 2011, we recorded adjustments for changes in estimates of $30 million, or $0.39 per diluted share. In the second quarter of 2011, we recorded adjustments for changes in estimates of $27 million, or $0.34 per diluted share. In the third quarter of 2010, we recorded adjustments for changes in estimates of $25 million, or $0.34 per diluted share. In the second quarter of 2009, we recorded material adjustments for changes in estimates of $61 million or $0.86 per diluted share. |
(B) | See Note 2, Restructurings and impairments, under Ford related restructuring activity for discussion regarding warranty adjustments related to the Ford Settlement. |
Balance at October 31, 2010 | Additions | Payments | Adjustments | Balance at October 31, 2011 | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Employee termination charges | $ | 5 | $ | 31 | $ | (5 | ) | $ | — | $ | 31 | |||||||||
Employee relocation costs | — | 9 | (9 | ) | — | — | ||||||||||||||
Other | — | 8 | — | — | 8 | |||||||||||||||
Restructuring liability | $ | 5 | $ | 48 | $ | (14 | ) | $ | — | $ | 39 |
Balance at October 31, 2009 | Additions | Payments | Adjustments | Balance at October 31, 2010 | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Employee termination charges | $ | 20 | $ | — | $ | (12 | ) | $ | (8 | ) | $ | — | ||||||||
Other contractual costs | 21 | — | (5 | ) | (16 | ) | — | |||||||||||||
Restructuring liability | $ | 41 | $ | — | $ | (17 | ) | $ | (24 | ) | $ | — |
2009(A) | |||
(in millions, except per share data) | (Unaudited) | ||
Sales and revenue, net | $ | 11,702 | |
Income before extraordinary gain | 295 | ||
Net income | 343 | ||
Less: Net income attributable to non-controlling interest | 25 | ||
Net income attributable to Navistar International Corporation | 318 | ||
Pro forma basic earnings per share attributable to Navistar International Corporation: | |||
Income attributable to Navistar International Corporation before extraordinary gain | $ | 4.15 | |
Extraordinary gain, net of tax | 0.33 | ||
Net income attributable to Navistar International Corporation | $ | 4.48 | |
Pro forma diluted earnings per share attributable to Navistar International Corporation: | |||
Income attributable to Navistar International Corporation before extraordinary gain | $ | 4.11 | |
Extraordinary gain, net of tax | 0.32 | ||
Net income attributable to Navistar International Corporation | $ | 4.43 |
(A) | Effective June 1, 2009, BDP changed its fiscal year from December 31 to October 31. Also effective June 1, 2009, BDP is accounted for as a consolidated subsidiary. The unaudited pro forma financial information for the year ended October 31, 2009, as presented above, reflects the change in fiscal year and is based on the historical unaudited Consolidated Statement of Operations of BDP for the seven months ended May 31, 2009 (through the date of acquisition) and results of operations of BDP from June 1, 2009 through October 31, 2009 are included in our Consolidated Statement of Operations. |
2011 | 2010 | |||||||
(in millions) | ||||||||
Retail portfolio | $ | 1,613 | $ | 1,917 | ||||
Wholesale portfolio | 1,334 | 1,006 | ||||||
Amounts due from sales of receivables | — | 53 | ||||||
Total finance receivables | 2,947 | 2,976 | ||||||
Less: Allowance for doubtful accounts | (34 | ) | (61 | ) | ||||
Total finance receivables, net | 2,913 | 2,915 | ||||||
Less: Current portion, net(A) | (2,198 | ) | (1,770 | ) | ||||
Noncurrent portion, net | $ | 715 | $ | 1,145 |
(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. |
Retail Portfolio | Wholesale Portfolio | Total | |||||||||
(in millions) | |||||||||||
Due in: | |||||||||||
2012 | $ | 919 | $ | 1,334 | $ | 2,253 | |||||
2013 | 361 | — | 361 | ||||||||
2014 | 240 | — | 240 | ||||||||
2015 | 125 | — | 125 | ||||||||
2016 | 47 | — | 47 | ||||||||
Thereafter | 17 | — | 17 | ||||||||
Gross finance receivables | 1,709 | 1,334 | 3,043 | ||||||||
Unearned finance income | (96 | ) | — | (96 | ) | ||||||
Total finance receivables | $ | 1,613 | $ | 1,334 | $ | 2,947 |
Maturity | As of | ||||||||
October 31, 2011 | October 31, 2010 | ||||||||
(in millions) | |||||||||
Variable funding notes ("VFN") | July 2012 | $ | 500 | $ | 500 | ||||
Investor notes | October 2012 | 350 | 350 | ||||||
Investor notes | January 2012 | 250 | 250 | ||||||
Total wholesale note funding | $ | 1,100 | $ | 1,100 |
October 31, 2010 | |||
(in millions) | |||
Excess seller's interests | $ | 32 | |
Interest only strip | — | ||
Restricted cash reserves | 21 | ||
Total amounts due from sales of receivables | $ | 53 |
October 31, 2010 | ||
Discount rate | 7.3 | % |
Estimated credit losses | — | |
Payment speed (percent of portfolio per month) | 88.5 | % |
2011 | 2010 | ||||||
(in millions) | |||||||
Finance revenues from on-balance sheet receivables: | |||||||
Retail notes and finance leases revenue | $ | 136 | $ | 183 | |||
Operating lease revenue | 32 | 33 | |||||
Wholesale notes interest | 93 | 39 | |||||
Retail and wholesale accounts interest | 27 | 18 | |||||
Total finance revenues from on-balance sheet receivables | 288 | 273 | |||||
Revenues from off-balance sheet securitization: | |||||||
Fair value adjustments | 1 | 37 | |||||
Excess spread income | — | 32 | |||||
Servicing fees revenue | — | 6 | |||||
Gain (loss) on sale of finance receivables | 1 | (39 | ) | ||||
Securitization income | 2 | 36 | |||||
Gross finance revenues | 290 | 309 | |||||
Less: Intercompany revenues | 90 | 90 | |||||
Finance revenues | $ | 200 | $ | 219 |
2010 | 2009 | ||||||
(in millions) | |||||||
Proceeds from sales of finance receivables | $ | 3,509 | $ | 4,178 | |||
Servicing fees | 6 | 8 | |||||
Cash from net excess spread | 32 | 31 | |||||
Investment Income | — | 1 | |||||
Net cash from securitization transactions | $ | 3,547 | $ | 4,218 |
October 31, 2011 | |||||||||||||||
Retail Portfolio | Wholesale Portfolio | Trade and Other Receivables | Total | ||||||||||||
(in millions) | |||||||||||||||
Allowance for doubtful accounts, at beginning of period | $ | 58 | $ | 2 | $ | 36 | $ | 96 | |||||||
Provision for doubtful accounts, net of recoveries | (5 | ) | — | (1 | ) | (6 | ) | ||||||||
Charge-off of accounts(A) | (22 | ) | — | (18 | ) | (40 | ) | ||||||||
Allowance for doubtful accounts, at end of period | $ | 31 | $ | 2 | $ | 17 | $ | 50 |
As of October 31, 2010 | |||||||||||||||
Retail Portfolio | Wholesale Portfolio | Trade and Other Receivables | Total | ||||||||||||
(in millions) | |||||||||||||||
Allowance for doubtful accounts, at beginning of period | $ | 58 | $ | 1 | $ | 45 | $ | 104 | |||||||
Provision for doubtful accounts, net of recoveries | 26 | 1 | 2 | 29 | |||||||||||
Charge-off of accounts(A) | (26 | ) | — | (11 | ) | (37 | ) | ||||||||
Allowance for doubtful accounts, at end of period | $ | 58 | $ | 2 | $ | 36 | $ | 96 |
As of October 31, 2009 | |||||||||||||||
Retail Portfolio | Wholesale Portfolio | Trade and Other Receivables | Total | ||||||||||||
(in millions) | |||||||||||||||
Allowance for doubtful accounts, at beginning of period | $ | 47 | $ | 2 | $ | 64 | $ | 113 | |||||||
Provision for doubtful accounts, net of recoveries | 39 | 1 | 10 | 50 | |||||||||||
Charge-off of accounts(A) | (28 | ) | (2 | ) | (29 | ) | (59 | ) | |||||||
Allowance for doubtful accounts, at end of period | $ | 58 | $ | 1 | $ | 45 | $ | 104 |
(A) | We repossess sold and leased vehicles on defaulted finance receivables and leases, and place them into Inventories. Losses recognized at the time of repossession and charged against the allowance for doubtful accounts were $20 million, $22 million, and $44 million in 2011, 2010, and 2009, respectively. |
As of October 31, 2011 | As of October 31, 2010 | ||||||||||||||||||||||
Retail Portfolio | Wholesale Portfolio | Total | Retail Portfolio | Wholesale Portfolio | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Impaired finance receivables with specific loss reserves | $ | 15 | $ | — | $ | 15 | $ | 49 | $ | 1 | $ | 50 | |||||||||||
Impaired finance receivables without specific loss reserves | 2 | — | 2 | 1 | — | 1 | |||||||||||||||||
Specific loss reserves on impaired finance receivables | 10 | — | 10 | 23 | — | 23 | |||||||||||||||||
Finance receivables on non-accrual status | 14 | — | 14 | 50 | 1 | 51 | |||||||||||||||||
Average balance of impaired finance receivables for the period ended October 31, 2011 | 32 | — | 32 | 86 | 1 | 87 |
As of October 31, 2011 | |||||||||||
Retail Portfolio | Wholesale Portfolio | Total | |||||||||
(in millions) | |||||||||||
Current | $ | 1,515 | $ | 1,328 | $ | 2,843 | |||||
30-90 days past due | 85 | 5 | 90 | ||||||||
Over 90 days past due | 13 | 1 | 14 | ||||||||
Total finance receivables | $ | 1,613 | $ | 1,334 | $ | 2,947 |
2011 | 2010 | |||||||
(in millions) | ||||||||
Finished products | $ | 873 | $ | 893 | ||||
Work in process | 174 | 202 | ||||||
Raw materials | 667 | 473 | ||||||
Total inventories | $ | 1,714 | $ | 1,568 |
2011 | 2010 | ||||||
(in millions) | |||||||
Land | $ | 52 | $ | 55 | |||
Buildings | 387 | 366 | |||||
Leasehold improvements | 71 | 70 | |||||
Machinery and equipment | 2,280 | 2,242 | |||||
Furniture, fixtures, and equipment | 236 | 202 | |||||
Equipment leased to others | 291 | 361 | |||||
Construction in progress(A) | 309 | 74 | |||||
Total property and equipment, at cost | 3,626 | 3,370 | |||||
Less: Accumulated depreciation and amortization | (2,056 | ) | (1,928 | ) | |||
Property and equipment, net | $ | 1,570 | $ | 1,442 |
(A) | We are consolidating our executive management, certain business operations, and product development into a 1.2 million square foot, world headquarters site in Lisle, Illinois, which we will complete in the first quarter of fiscal 2012, and we are consolidating our testing and validation center in our Melrose Park facility, which we expect to complete in 2013. For 2011, Construction in progress includes amounts related to this activity. |
2011 | 2010 | ||||||
(in millions) | |||||||
Equipment leased to others | $ | 291 | $ | 361 | |||
Less: Accumulated depreciation | (103 | ) | (146 | ) | |||
Equipment leased to others, net | $ | 188 | $ | 215 | |||
Buildings, machinery, and equipment under financing arrangements and capital lease obligations | $ | 100 | $ | 123 | |||
Less: Accumulated depreciation and amortization | (71 | ) | (64 | ) | |||
Assets under financing arrangements and capital lease obligations, net | $ | 29 | $ | 59 |
2011 | 2010 | 2009 | ||||||||
(in millions) | ||||||||||
Depreciation expense | $ | 260 | $ | 236 | 255 | |||||
Depreciation of equipment leased to others | 38 | 51 | 56 | |||||||
Amortization expense | 1 | 2 | 6 | |||||||
Interest capitalized | 18 | 4 | 1 |
Financing Arrangements and Capital Lease Obligations | Operating Leases(A) | Total | |||||||||
(in millions) | |||||||||||
2012 | $ | 39 | $ | 52 | $ | 91 | |||||
2013 | 64 | 50 | 114 | ||||||||
2014 | 21 | 43 | 64 | ||||||||
2015 | 1 | 40 | 41 | ||||||||
2016 | 1 | 32 | 33 | ||||||||
Thereafter | 2 | 100 | 102 | ||||||||
128 | $ | 317 | $ | 445 | |||||||
Less: Interest portion | (10 | ) | |||||||||
Total | $ | 118 |
(A) | In October 2011, we signed a lease agreement and a machinery and equipment purchase agreement related to a facility in Cherokee, Alabama. We will take possession of these assets January 1, 2012. The amounts presented above include amounts related to this lease. |
Truck | Engine | Parts | Total | ||||||||||||
(in millions) | |||||||||||||||
As of October 31, 2008 | $ | 84 | $ | 175 | $ | 38 | $ | 297 | |||||||
Impairments | (2 | ) | — | — | (2 | ) | |||||||||
Currency translation | — | 36 | — | 36 | |||||||||||
Adjustments(A) | (7 | ) | (5 | ) | — | (12 | ) | ||||||||
Dispositions | (1 | ) | — | — | (1 | ) | |||||||||
As of October 31, 2009 | $ | 74 | $ | 206 | $ | 38 | $ | 318 | |||||||
Currency translation | — | 5 | — | 5 | |||||||||||
Adjustments(A) | — | (6 | ) | — | (6 | ) | |||||||||
Acquisitions | 7 | — | — | 7 | |||||||||||
As of October 31, 2010 | $ | 81 | $ | 205 | $ | 38 | $ | 324 | |||||||
Impairments | — | — | — | — | |||||||||||
Currency translation | — | 2 | — | 2 | |||||||||||
Adjustments(A) | — | (7 | ) | — | (7 | ) | |||||||||
Acquisitions | — | — | — | — | |||||||||||
As of October 31, 2011 | $ | 81 | $ | 200 | $ | 38 | $ | 319 |
(A) | Adjustments to goodwill primarily result from the tax benefit attributable to the amortization of tax deductible goodwill in excess of goodwill recorded for financial statement purposes as measured in the MWM International (“MWM”) balance sheet immediately after its acquisition in 2005. Goodwill was also reduced in 2008 due to the favorable tax settlement of a Brazilian court case. Goodwill in the Truck segment was reduced in 2009 as a result of an adjustment to our purchase price for WCC as a result of receipt of escrow payments for settlement of a dispute. |
2011 | 2010 | ||||||
(in millions) | |||||||
Dealer franchise rights | $ | 7 | $ | 10 | |||
Trademarks | 60 | 59 | |||||
Intangible assets not subject to amortization | $ | 67 | $ | 69 |
As of October 31, 2011 | Customer Base and Relationships | Trademarks | Supply Agreements | Other | Total | |||||||||||||||
(in millions) | ||||||||||||||||||||
Gross carrying value | $ | 135 | $ | 17 | $ | 27 | $ | 87 | $ | 266 | ||||||||||
Accumulated amortization | (52 | ) | (1 | ) | (27 | ) | (19 | ) | (99 | ) | ||||||||||
Net of amortization | $ | 83 | $ | 16 | $ | — | $ | 68 | $ | 167 |
As of October 31, 2010 | Customer Base and Relationships | Trademarks | Supply Agreements | Other | Total | |||||||||||||||
(in millions) | ||||||||||||||||||||
Gross carrying value | $ | 194 | $ | 59 | $ | 27 | $ | 37 | $ | 317 | ||||||||||
Accumulated amortization | (69 | ) | (15 | ) | (27 | ) | (13 | ) | (124 | ) | ||||||||||
Net of amortization | $ | 125 | $ | 44 | $ | — | $ | 24 | $ | 193 |
Estimated Amortization | |||
(in millions) | |||
2012 | $ | 26 | |
2013 | 25 | ||
2014 | 24 | ||
2015 | 19 | ||
2016 | 18 |
2011 | 2010 | ||||||
(in millions) | (Unaudited) | ||||||
Assets: | |||||||
Current assets | $ | 214 | $ | 341 | |||
Noncurrent assets | 238 | 257 | |||||
Total assets | $ | 452 | $ | 598 | |||
Liabilities and equity: | |||||||
Current liabilities | $ | 118 | $ | 192 | |||
Noncurrent liabilities | 117 | 159 | |||||
Total liabilities | 235 | 351 | |||||
Partners' capital and stockholders' equity: | |||||||
NIC | 73 | 108 | |||||
Third parties | 144 | 139 | |||||
Total partners' capital and stockholders' equity | 217 | 247 | |||||
Total liabilities and equity | $ | 452 | $ | 598 |
2011(A) | 2010 | 2009(B) | |||||||||
(in millions) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||
Net sales | $ | 938 | $ | 659 | $ | 727 | |||||
Costs, expenses, and income tax expense | 1,069 | 755 | 643 | ||||||||
Net income (loss) | $ | (131 | ) | $ | (96 | ) | $ | 84 |
(A) | Includes amounts for NC2 through September 29, 2011. |
(B) | Includes amounts for BDP and BDT through May 31, 2009. |
2011 | 2010 | ||||||
(in millions) | |||||||
Receivables due from affiliates | $ | 30 | $ | 57 | |||
Payables due to affiliates | 29 | 91 |
Eleven Months Ended September 29, 2011 | 2010 | ||||||
(in millions) | (Unaudited) | ||||||
Net revenue | $ | 235 | $ | 63 | |||
Net expenses | 318 | 135 | |||||
Loss before tax expense | (83 | ) | (72 | ) | |||
Net loss | (83 | ) | (72 | ) |
Seven Months Ended May 31, 2009 | |||
(in millions) | (Unaudited) | ||
Net revenue | $ | 118 | |
Net expenses | 16 | ||
Income before tax expense | 102 | ||
Net income | 102 |
2011 | 2010 | |||||||
(in millions) | ||||||||
Manufacturing operations | ||||||||
8.25% Senior Notes, due 2021, net of unamortized discount of $33 and $35 at the respective dates | $ | 967 | $ | 965 | ||||
3.0% Senior Subordinated Convertible Notes, due 2014, net of unamortized discount of $73 and $94 at the respective dates | 497 | 476 | ||||||
Debt of majority-owned dealerships | 94 | 66 | ||||||
Financing arrangements and capital lease obligations | 118 | 221 | ||||||
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040 | 225 | 225 | ||||||
Promissory Note | 40 | — | ||||||
Other | 39 | 33 | ||||||
Total manufacturing operations debt | 1,980 | 1,986 | ||||||
Less: Current portion | 99 | 145 | ||||||
Net long-term manufacturing operations debt | $ | 1,881 | $ | 1,841 | ||||
Financial services operations | ||||||||
Asset-backed debt issued by consolidated SPEs, at variable rates, due serially through 2018 | $ | 1,664 | $ | 1,731 | ||||
Bank revolvers, at fixed and variable rates, due dates from 2012 through 2018 | 1,072 | 974 | ||||||
Commercial paper, at variable rates, due serially through 2012 | 70 | 67 | ||||||
Borrowings secured by operating and finance leases, at various rates, due serially through 2017 | 70 | 112 | ||||||
Total financial services operations debt | 2,876 | 2,884 | ||||||
Less: Current portion | 1,280 | 487 | ||||||
Net long-term financial services operations debt | $ | 1,596 | $ | 2,397 |
Manufacturing Operations(A) | Financial Services Operations(B) | Total | ||||||||||
(in millions) | ||||||||||||
2012 | $ | 99 | $ | 1,280 | $ | 1,379 | ||||||
2013 | 109 | 219 | 328 | |||||||||
2014 | 615 | 454 | 1,069 | |||||||||
2015 | 21 | 62 | 83 | |||||||||
2016 | 8 | 91 | 99 | |||||||||
Thereafter | 1,234 | 770 | 2,004 | |||||||||
Total debt | 2,086 | 2,876 | 4,962 | |||||||||
Less: Unamortized discount | (106 | ) | — | (106 | ) | |||||||
Net debt | $ | 1,980 | $ | 2,876 | $ | 4,856 |
(A) | Amounts include the borrowing of $100 million under the Asset-Based Credit Facility in November 2011, reflected as being due in 2017. |
(B) | Amounts reflect the NFC refinancing of its bank credit facility in December 2011 with a five-year revolving line of credit and term loan, totaling $840 million, which shifted certain debt maturities to be largely due in 2017. |
Pension Benefits | Health and Life Insurance Benefits | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
(in millions) | |||||||||||||||
Change in benefit obligations | |||||||||||||||
Benefit obligations at beginning of year | $ | 4,005 | $ | 3,850 | $ | 1,162 | $ | 1,631 | |||||||
Amendments and administrative changes | — | 4 | 302 | (341 | ) | ||||||||||
Service cost | 17 | 18 | 8 | 8 | |||||||||||
Interest on obligations | 189 | 209 | 56 | 81 | |||||||||||
Actuarial loss (gain) | 242 | 253 | 547 | (89 | ) | ||||||||||
Curtailments | (11 | ) | (3 | ) | 11 | 2 | |||||||||
Contractual termination benefits | 38 | 1 | 6 | (2 | ) | ||||||||||
Retrospective payments due to retirees | — | — | 15 | — | |||||||||||
Currency translation | 26 | 1 | — | — | |||||||||||
Plan participants' contributions | — | — | 34 | 32 | |||||||||||
Subsidy receipts | — | — | — | 15 | |||||||||||
Benefits paid | (335 | ) | (328 | ) | (141 | ) | (175 | ) | |||||||
Benefit obligations at end of year | $ | 4,171 | $ | 4,005 | $ | 2,000 | $ | 1,162 | |||||||
Change in plan assets | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 2,479 | $ | 2,317 | $ | 509 | $ | 473 | |||||||
Actual return on plan assets | 75 | 369 | 22 | 78 | |||||||||||
Currency translation | 25 | (4 | ) | — | — | ||||||||||
Employer contributions | 134 | 115 | 2 | 2 | |||||||||||
Benefits paid | (321 | ) | (318 | ) | (70 | ) | (44 | ) | |||||||
Fair value of plan assets at end of year | $ | 2,392 | $ | 2,479 | $ | 463 | $ | 509 | |||||||
Funded status at year end | (1,779 | ) | (1,526 | ) | (1,537 | ) | (653 | ) | |||||||
Amounts recognized in our Consolidated Balance Sheets consist of: | |||||||||||||||
Current liability | $ | (13 | ) | $ | (10 | ) | $ | (93 | ) | $ | (72 | ) | |||
Noncurrent liability | (1,766 | ) | (1,516 | ) | (1,444 | ) | (581 | ) | |||||||
Net liability recognized | $ | (1,779 | ) | $ | (1,526 | ) | $ | (1,537 | ) | $ | (653 | ) | |||
Amounts recognized in our accumulated other comprehensive loss consist of: | |||||||||||||||
Net actuarial loss | $ | 2,170 | $ | 1,900 | $ | 654 | $ | 92 | |||||||
Net prior service cost (benefit) | 5 | 8 | (21 | ) | (352 | ) | |||||||||
Net amount recognized | $ | 2,175 | $ | 1,908 | $ | 633 | $ | (260 | ) |
2011 | 2010 | ||||||
(in millions) | |||||||
Projected benefit obligations | $ | 4,171 | $ | 4,005 | |||
Accumulated benefit obligations | 4,113 | 3,942 | |||||
Fair value of plan assets | 2,392 | 2,479 |
2011 | 2010 | 2009 | |||||||||
(in millions) | |||||||||||
Pension expense | $ | 139 | $ | 142 | $ | 154 | |||||
Health and life insurance expense | 30 | 37 | 79 | ||||||||
Total postretirement benefits expense | $ | 169 | $ | 179 | $ | 233 |
Pension Expense (Income) | Health and Life Insurance Expense (Income) | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2011 | 2010 | 2009 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Service cost for benefits earned during the period | $ | 17 | $ | 18 | $ | 15 | $ | 8 | $ | 8 | $ | 6 | ||||||||||||
Interest on obligation | 189 | 209 | 234 | 56 | 81 | 117 | ||||||||||||||||||
Amortization of cumulative loss (gain) | 97 | 98 | 72 | 4 | 8 | (2 | ) | |||||||||||||||||
Amortization of prior service cost (benefit) | 1 | 1 | 1 | (29 | ) | (20 | ) | (5 | ) | |||||||||||||||
Curtailments | 2 | 1 | 6 | 11 | 2 | — | ||||||||||||||||||
Contractual termination benefits | 38 | 1 | 9 | 6 | (2 | ) | 3 | |||||||||||||||||
Retrospective payments to retirees | — | — | — | 15 | — | — | ||||||||||||||||||
Premiums on pension insurance | 6 | 7 | 6 | — | — | — | ||||||||||||||||||
Expected return on assets | (211 | ) | (193 | ) | (189 | ) | (41 | ) | (40 | ) | (40 | ) | ||||||||||||
Net postretirement benefits expense | $ | 139 | $ | 142 | $ | 154 | $ | 30 | $ | 37 | $ | 79 | ||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) | ||||||||||||||||||||||||
Actuarial net loss (gain) | $ | 374 | $ | 77 | $ | 713 | $ | 566 | $ | (127 | ) | $ | 180 | |||||||||||
Amortization of cumulative gain (loss) | (97 | ) | (98 | ) | (72 | ) | (4 | ) | (8 | ) | 2 | |||||||||||||
Prior service cost (benefit) | — | 4 | 4 | 302 | (341 | ) | — | |||||||||||||||||
Amortization of prior service benefit (cost) | (1 | ) | (1 | ) | (1 | ) | 29 | 20 | 5 | |||||||||||||||
Curtailments | (13 | ) | (3 | ) | — | — | — | — | ||||||||||||||||
Currency translation | 4 | 4 | — | — | — | — | ||||||||||||||||||
Total recognized in other comprehensive loss (income) | $ | 267 | $ | (17 | ) | $ | 644 | $ | 893 | $ | (456 | ) | $ | 187 | ||||||||||
Total net postretirement benefits expense (income) and other comprehensive loss (income) | $ | 406 | $ | 125 | $ | 798 | $ | 923 | $ | (419 | ) | $ | 266 |
Pension Benefits | Health and Life Insurance Benefits | |||||||
(in millions) | ||||||||
Amortization of prior service cost (benefit) | $ | 1 | $ | (5 | ) | |||
Amortization of cumulative losses | 109 | 37 |
Pension Benefits | Health and Life Insurance Benefits | ||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||
Discount rate used to determine present value of benefit obligation at end of year | 4.2 | % | 4.8 | % | 4.2 | % | 4.6 | % | |||
Expected rate of increase in future compensation levels | 3.5 | % | 3.5 | % | — | — |
Pension Benefits | Health and Life Insurance Benefits | ||||||||||||||||
2011 | 2010 | 2009 | 2011 | 2010 | 2009 | ||||||||||||
Discount rate(A) | 4.8 | % | 5.4 | % | 7.6 | % | 4.6 | % | 5.6 | % | 8.4 | % | |||||
Expected long-term rate of return on plan assets | 8.5 | % | 8.5 | % | 9.0 | % | 8.5 | % | 8.5 | % | 9.0 | % | |||||
Expected rate of increase in future compensation levels | 3.5 | % | 3.5 | % | 3.5 | % | — | — | — |
(A) | In 2009 for pension benefits, the weighted average discount rate used to compute the expense for the period of November 1, 2008 through January 31, 2009 was 8.3%. Due to a plan remeasurement at January 31, 2009 at a rate of 6.5%, the weighted average discount rate for the full fiscal year 2009 was 7.6%. In 2010 for health and life insurance benefits, the weighted average discount rate used to compute the expense for the period of November 1, 2009 through March 31, 2010 was 5.5%. Due to a plan remeasurement at March 31, 2010 at a rate of 5.6%, the weighted average discount rate for the full fiscal year 2010 was 5.6%. |
One-Percentage Point Increase | One-Percentage Point Decrease | |||||||
(in millions) | ||||||||
Effect on total of service and interest cost components | $ | 5 | $ | (8 | ) | |||
Effect on postretirement benefit obligation | 192 | (201 | ) |
2011 | 2010 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 82 | $ | — | $ | — | $ | 82 | $ | 190 | $ | — | $ | — | $ | 190 | ||||||||||||||||
Equity | ||||||||||||||||||||||||||||||||
U.S. Large Cap | 492 | — | — | 492 | 482 | — | — | 482 | ||||||||||||||||||||||||
U.S. SMid Cap | 242 | — | — | 242 | 193 | — | — | 193 | ||||||||||||||||||||||||
Canadian | 103 | — | — | 103 | 113 | — | — | 113 | ||||||||||||||||||||||||
International | 179 | — | — | 179 | 202 | — | — | 202 | ||||||||||||||||||||||||
Emerging Markets | 105 | — | — | 105 | 112 | — | — | 112 | ||||||||||||||||||||||||
Navistar Common Stock | — | — | — | — | 50 | — | — | 50 | ||||||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||||||||||
Corporate Bonds | — | 466 | — | 466 | — | 189 | — | 189 | ||||||||||||||||||||||||
Government Bonds | — | 225 | — | 225 | — | 309 | — | 309 | ||||||||||||||||||||||||
Asset Backed Securities | — | 19 | — | 19 | — | 24 | — | 24 | ||||||||||||||||||||||||
Mortgage Backed Securities | — | 8 | — | 8 | — | 9 | — | 9 | ||||||||||||||||||||||||
Collective Trusts and Other | ||||||||||||||||||||||||||||||||
Common and Preferred Stock | — | 231 | — | 231 | — | 284 | — | 284 | ||||||||||||||||||||||||
Commodities | — | 76 | — | 76 | — | 70 | — | 70 | ||||||||||||||||||||||||
Hedge Funds | — | — | 99 | 99 | — | — | 102 | 102 | ||||||||||||||||||||||||
Private Equity | — | — | 75 | 75 | — | — | 57 | 57 | ||||||||||||||||||||||||
Mutual Funds | 34 | — | — | 34 | 32 | — | — | 32 | ||||||||||||||||||||||||
Real Estate | — | — | 1 | 1 | — | — | 1 | 1 | ||||||||||||||||||||||||
Unallocated Insurance Contract | — | — | — | — | — | — | 120 | 120 | ||||||||||||||||||||||||
Other | — | — | — | 3 | — | — | 3 | |||||||||||||||||||||||||
Total(A) | $ | 1,237 | $ | 1,025 | $ | 175 | $ | 2,437 | $ | 1,377 | $ | 885 | $ | 280 | $ | 2,542 |
(A) | For October 31, 2011 and 2010, the total excludes $8 million and $6 million of receivables, respectively, included in the change in plan asset table. In addition, the table above includes the fair value of Canadian pension assets translated at the October 31, 2011 and October 31, 2010 exchange rates while the change in plan asset table includes the fair value of Canadian pension assets translated at historical foreign currency rates. |
Hedge Funds | Private Equity | Real Estate | Insurance Contract | |||||||||||||
(in millions) | ||||||||||||||||
Balance at November 1, 2009 | $ | 140 | $ | 35 | $ | 1 | $ | 110 | ||||||||
Unrealized gains | 10 | 11 | — | 10 | ||||||||||||
Realized gains (losses) | 1 | — | — | — | ||||||||||||
Purchases, issuances, and settlements | (49 | ) | 11 | — | — | |||||||||||
Balance at October 31, 2010 | $ | 102 | $ | 57 | $ | 1 | $ | 120 | ||||||||
Balance at November 1, 2010 | $ | 102 | $ | 57 | $ | 1 | $ | 120 | ||||||||
Unrealized gains (losses) | (21 | ) | 15 | — | — | |||||||||||
Realized gains (losses) | 19 | — | — | 1 | ||||||||||||
Purchases, issuances, and settlements | (1 | ) | 3 | — | (121 | ) | ||||||||||
Balance at October 31, 2011 | $ | 99 | $ | 75 | $ | 1 | $ | — |
2011 | 2010 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 24 | $ | — | $ | — | $ | 24 | $ | 43 | $ | — | $ | — | $ | 43 | ||||||||||||||||
Equity | ||||||||||||||||||||||||||||||||
U.S. Large Cap | 100 | — | — | 100 | 93 | — | — | 93 | ||||||||||||||||||||||||
U.S. SMid Cap | 59 | — | — | 59 | 46 | — | — | 46 | ||||||||||||||||||||||||
Emerging Markets | — | — | — | — | 28 | — | — | 28 | ||||||||||||||||||||||||
International | 68 | — | — | 68 | 85 | — | — | 85 | ||||||||||||||||||||||||
Navistar Common Stock | 26 | — | — | 26 | 12 | — | — | 12 | ||||||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||||||||||
Corporate Bonds | — | 77 | — | 77 | — | 88 | — | 88 | ||||||||||||||||||||||||
Government Bonds | — | 42 | — | 42 | — | 48 | — | 48 | ||||||||||||||||||||||||
Asset Backed Securities | — | 4 | — | 4 | — | 6 | — | 6 | ||||||||||||||||||||||||
Mortgage Backed Securities | — | 1 | — | 1 | — | 4 | — | 4 | ||||||||||||||||||||||||
Collective Trusts and Other | ||||||||||||||||||||||||||||||||
Commodities | — | 17 | — | 17 | — | 16 | — | 16 | ||||||||||||||||||||||||
Hedge Funds | — | — | 25 | 25 | — | — | 25 | 25 | ||||||||||||||||||||||||
Private Equity | — | — | 19 | 19 | — | — | 14 | 14 | ||||||||||||||||||||||||
Total(A) | $ | 277 | $ | 141 | $ | 44 | $ | 462 | $ | 307 | $ | 162 | $ | 39 | $ | 508 |
(A) | For both October 31, 2011 and 2010, the total excludes $1 million of receivables included in the change in plan asset table. |
Hedge Funds | Private Equity | |||||||
(in millions) | ||||||||
Balance at November 1, 2009 | $ | 33 | $ | 9 | ||||
Unrealized gains | 2 | 2 | ||||||
Purchases, issuances, and settlements | (10 | ) | 3 | |||||
Balance at October 31, 2010 | $ | 25 | $ | 14 | ||||
Balance at November 1, 2010 | $ | 25 | $ | 14 | ||||
Unrealized gains (losses) | (4 | ) | 4 | |||||
Purchases, issuances, and settlements | 4 | 1 | ||||||
Balance at October 31, 2011 | $ | 25 | $ | 19 |
Pension Benefit Payments | Other Postretirement Benefit Payments(A) | |||||||
(in millions) | ||||||||
2012 | $ | 325 | $ | 171 | ||||
2013 | 320 | 152 | ||||||
2014 | 313 | 147 | ||||||
2015 | 307 | 144 | ||||||
2016 | 299 | 140 | ||||||
2017 through 2021 | 1,388 | 628 |
(A) | Payments are net of expected participant contributions and expected federal subsidy receipts. |
2011 | 2010 | 2009 | ||||||||||
(in millions) | ||||||||||||
Domestic | $ | 247 | $ | 166 | $ | 441 | ||||||
Foreign | 73 | 124 | (82 | ) | ||||||||
Income before income tax benefit (expense) and extraordinary gain | $ | 320 | $ | 290 | $ | 359 |
2011 | 2010 | 2009 | ||||||||||
(in millions) | ||||||||||||
Current: | ||||||||||||
Federal | $ | (3 | ) | $ | 30 | $ | (3 | ) | ||||
State and local | 1 | (4 | ) | (6 | ) | |||||||
Foreign | (47 | ) | (33 | ) | (14 | ) | ||||||
Total current expense | (49 | ) | (7 | ) | (23 | ) | ||||||
Deferred: | ||||||||||||
Federal | 1,423 | — | — | |||||||||
State and local | 106 | — | — | |||||||||
Foreign | (22 | ) | (16 | ) | (14 | ) | ||||||
Total deferred benefit (expense) | 1,507 | (16 | ) | (14 | ) | |||||||
Total income tax benefit (expense) | $ | 1,458 | $ | (23 | ) | $ | (37 | ) |
2011 | 2010 | 2009 | ||||||||||
(in millions) | ||||||||||||
Statutory federal income tax expense | $ | (112 | ) | $ | (101 | ) | $ | (126 | ) | |||
State income taxes, net of federal benefit | (6 | ) | (3 | ) | (4 | ) | ||||||
Alternative minimum taxes | — | 29 | (10 | ) | ||||||||
Credits and incentives | 27 | 2 | 8 | |||||||||
Adjustments to valuation allowances | 1,499 | 56 | 105 | |||||||||
Medicare subsidies | — | 6 | 11 | |||||||||
Foreign operations | (19 | ) | (11 | ) | (13 | ) | ||||||
Adjustments to uncertain tax positions | 42 | 5 | (1 | ) | ||||||||
Subpart F income | (1 | ) | (17 | ) | (1 | ) | ||||||
Non-controlling interest adjustment | 19 | 16 | 9 | |||||||||
Other | 9 | (5 | ) | (15 | ) | |||||||
Recorded income tax benefit (expense) | $ | 1,458 | $ | (23 | ) | $ | (37 | ) |
2011 | 2010 | |||||||
(in millions) | ||||||||
Deferred tax assets attributable to: | ||||||||
Employee benefits liabilities | $ | 1,369 | $ | 840 | ||||
Net operating loss (“NOL”) carry forwards | 273 | 306 | ||||||
Product liability and warranty accruals | 262 | 232 | ||||||
Research and development | 74 | 98 | ||||||
Tax credit carry forwards | 208 | 115 | ||||||
Other | 294 | 335 | ||||||
Gross deferred tax assets | 2,480 | 1,926 | ||||||
Less: Valuation allowances | (344 | ) | (1,777 | ) | ||||
Net deferred tax assets | $ | 2,136 | $ | 149 | ||||
Deferred tax liabilities attributable to: | ||||||||
Goodwill and intangibles assets | $ | (107 | ) | $ | (104 | ) | ||
Other | (39 | ) | (59 | ) | ||||
Total deferred tax liabilities | $ | (146 | ) | $ | (163 | ) |
(in millions) | ||||
Liability for uncertain tax positions at October 31, 2010 | $ | 91 | ||
Increase as a result of positions taken in prior periods | 79 | |||
Decrease as a result of positions taken in prior periods | (150 | ) | ||
Increase as a result of positions taken in the current period | 1 | |||
Settlements | (2 | ) | ||
Liability for uncertain tax positions at October 31, 2011 | $ | 19 |
• | 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. |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
(in millions) | |||||||||||||||||||
Assets | |||||||||||||||||||
Marketable securities | |||||||||||||||||||
U.S. Treasury bills | $ | 283 | $ | — | $ | — | $ | 283 | |||||||||||
Other U.S and non-U.S. government bonds | 415 | — | — | 415 | |||||||||||||||
Other | 20 | — | — | 20 | |||||||||||||||
Derivative financial instruments | |||||||||||||||||||
Foreign currency contracts | — | — | 1 | 1 | |||||||||||||||
Commodity contracts | — | 3 | — | 3 | |||||||||||||||
Total assets | $ | 718 | $ | 3 | $ | 1 | $ | 722 | |||||||||||
Liabilities | |||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||
Foreign currency contracts | — | 4 | — | 4 | |||||||||||||||
Commodity contracts | — | 3 | 3 | 6 | 3 | 3 | 6 | ||||||||||||
Guarantees | — | — | 6 | 6 | |||||||||||||||
Total liabilities | $ | — | $ | 7 | $ | 9 | $ | 16 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in millions) | ||||||||||||||||
Assets | ||||||||||||||||
Marketable securities | ||||||||||||||||
U.S. Treasury bills | $ | 159 | $ | — | $ | — | $ | 159 | ||||||||
Other U.S and non-U.S. government bonds | 407 | — | — | 407 | ||||||||||||
Other | 20 | — | — | 20 | ||||||||||||
Derivative financial instruments | ||||||||||||||||
Commodity contracts | — | — | 2 | 2 | ||||||||||||
Foreign currency contracts | — | 8 | — | 8 | ||||||||||||
Retained interests | — | — | 53 | 53 | ||||||||||||
Total assets | $ | 586 | $ | 8 | $ | 55 | $ | 649 | ||||||||
Liabilities | ||||||||||||||||
Derivative financial instruments | ||||||||||||||||
Commodity contracts | $ | — | $ | 4 | $ | — | $ | 4 | ||||||||
Total liabilities | $ | — | $ | 4 | $ | — | $ | 4 |
2011 | 2010 | ||||||||||||||||||||||
Guarantees | Retained interests | Commodity contracts | Interest rate swap assets and liabilities | Retained interests | Commodity contracts | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Year Ended October 31 | |||||||||||||||||||||||
Balance at November 1 | $ | — | $ | 53 | $ | 2 | $ | 1 | $ | 291 | $ | — | |||||||||||
Total gains (losses) (realized/unrealized) included in earnings (A) | — | — | 2 | (1 | ) | 4 | 2 | ||||||||||||||||
Purchases, issuances, and settlements | 6 | (53 | ) | (6 | ) | — | (242 | ) | — | ||||||||||||||
Balance at October 31 | $ | 6 | $ | — | $ | (2 | ) | $ | — | $ | 53 | $ | 2 |
(A) | For interest rate swap assets and liabilities, gains (losses) are included in Interest expense. For commodity contracts, gains (losses) are included in Cost of products sold. For retained interests, gains recognized are included in Finance revenues. |
Level 2 | ||||||||
2011 | 2010 | |||||||
(in millions) | ||||||||
Finance receivables(A) | $ | 5 | $ | 27 |
(A) | Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. As of October 31, 2011, impaired receivables with a carrying amount of $15 million had specific loss reserves of $10 million and a fair value of $5 million. As of October 31, 2010, impaired receivables with a carrying amount of $50 million had specific loss reserves of $23 million and a fair value of $27 million. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors. |
Level 3 | ||||
2011 | ||||
(in millions) | ||||
Assets | ||||
Property and equipment (A) | $ | 54 | ||
Intangible assets (B) | 30 | |||
Total assets | $ | 84 |
(A) | Certain impaired property and equipment with a carrying amount of $64 million were written down to their fair value of $54 million, resulting in an impairment charge of $10 million, which was included in Impairment of property and equipment and intangible assets during the three months ended July 31, 2011. We utilized the market and cost approach to determine the fair value of these assets. |
(B) | Intangible assets with a carrying amount of $84 million were written down to their fair value of $30 million, resulting in an impairment charge of $54 million, which was included in Impairment of property and equipment and intangible assets during the three months ended July 31, 2011. We utilized the income and market approach to determine the fair value of these assets. |
October 31, 2011 | October 31, 2010 | |||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||
(in millions) | ||||||||||||||||
Assets | ||||||||||||||||
Finance receivables | $ | 2,141 | $ | 2,085 | $ | 2,465 | $ | 2,349 | ||||||||
Notes receivable | 47 | 47 | 40 | 40 | ||||||||||||
Liabilities | ||||||||||||||||
Debt: | ||||||||||||||||
Manufacturing operations | ||||||||||||||||
8.25% Senior Notes, due 2021 | 967 | 1,131 | 965 | 1,141 | ||||||||||||
3.0% Senior Subordinated Convertible Notes, due 2014(A) | 497 | 633 | 476 | 684 | ||||||||||||
Debt of majority-owned dealerships | 94 | 88 | 66 | 63 | ||||||||||||
Financing arrangements | 114 | 112 | 203 | 197 | ||||||||||||
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040 | 225 | 234 | 225 | 234 | ||||||||||||
Promissory Note | 40 | 39 | — | — | ||||||||||||
Other | 39 | 26 | 33 | 29 | ||||||||||||
Financial services operations | ||||||||||||||||
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2018 | 1,664 | 1,695 | 1,731 | 1,773 | ||||||||||||
Bank revolvers, at fixed and variable rates, due dates from 2012 through 2018 | 1,072 | 1,091 | 974 | 984 | ||||||||||||
Commercial paper, at variable rates, due serially through 2012 | 70 | 70 | 67 | 67 | ||||||||||||
Borrowings secured by operating and finance leases, at various rates, due serially through 2017 | 70 | 70 | 112 | 113 |
(A) | The carrying value represents the financial statement amount of the debt after allocation of the conversion feature to equity, while the fair value is based on quoted market prices for the convertible note which includes the equity feature. |
As of October 31, 2011 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
(in millions) | Location in Consolidated Balance Sheets | Fair Value | Location in Consolidated Balance Sheets | Fair Value | ||||||||
Foreign currency contracts | Other current assets | $ | 3 | Other current liabilities | $ | — | ||||||
Cross currency swaps | Other current assets | — | Other current liabilities | 4 | ||||||||
Commodity contracts | Other current assets | 1 | Other current liabilities | 6 | ||||||||
Total fair value | $ | 4 | $ | 10 | ||||||||
As of October 31, 2010 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
(in millions) | Location in Consolidated Balance Sheets | Fair Value | Location in Consolidated Balance Sheets | Fair Value | ||||||||
Foreign currency contracts | Other current assets | $ | 8 | Other current liabilities | $ | — | ||||||
Commodity contracts | Other current assets | 2 | Other current liabilities | 4 | ||||||||
Total fair value | $ | 10 | $ | 4 |
Location in Consolidated Statements of Operations | Amount of Gain (Loss) Recognized | ||||||||||||
2011 | 2010 | 2009 | |||||||||||
(in millions) | |||||||||||||
Interest rate swaps | Interest expense | $ | — | $ | (5 | ) | $ | (44 | ) | ||||
Interest rate caps purchased | Interest expense | — | (3 | ) | 2 | ||||||||
Interest rate caps sold | Interest expense | — | 3 | (1 | ) | ||||||||
Cross currency swaps | Other income, net | (8 | ) | — | — | ||||||||
Foreign currency contracts | Other income, net | 4 | 8 | 5 | |||||||||
Commodity forward contracts | Costs of products sold | 14 | 1 | (6 | ) | ||||||||
Total gain (loss) | $ | 10 | $ | 4 | $ | (44 | ) |
• | Our Truck segment manufactures and distributes a full line of Class 4 through 8 trucks, buses and military vehicles under the International and IC Bus (“IC”) brands. Our Truck segment also produces chassis for motor homes and commercial step-van vehicles under the Workhorse brand and recreational vehicles under the Monaco family of brands. 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 Engine segment designs and manufactures diesel engines for use globally, in Class 3 through 8 vehicles, as well as off-road applications. In North America, these engines primarily go into our Class 6 and 7 medium trucks and buses and Class 8 heavy trucks, and are sold to original equipment manufacturers (“OEMs”). In addition, our Engine segment produces diesel engines in Brazil primarily for distribution in South America under the MWM brand for sale to OEMs. In all other areas of the world, including North America, engines are sold under the MaxxForce brand name. To control cost and technology, our Engine segment has expanded its operations to include PPT, a components company focused on air, fuel, and aftertreatment systems to meet more stringent Euro and EPA emission standards. Also included in the Engine segment are the operating results of BDP, which manages the sourcing, merchandising, and distribution of certain service parts for vehicles we and Ford sell in North America. |
• | Our Parts segment provides customers with proprietary products needed to support the International commercial and military truck, IC bus, WCC chassis, and MaxxForce engine lines. Our Parts segment also provides a wide selection of other standard truck, trailer, and engine aftermarket parts. At October 31, 2011, this segment operated eleven regional parts distribution centers that provide 24-hour availability and shipment. |
• | 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. |
• | The UAW master contract and non-represented employee profit sharing, annual incentive compensation, and the costs of contingent contributions to the Supplemental Trust are included in corporate expenses, if applicable. |
• | Interest expense and interest income for the manufacturing operations are reported in corporate expenses. |
• | Certain sales to our dealers include interest-free periods that vary in length. The Financial Services segment finances these sales and our Truck segment subsidizes and reimburses the Financial Services segment for those finance charges. |
• | Intersegment purchases and sales between the Truck and Engine segments are recorded at our best estimates of arms-length pricings. During 2010 and 2009, MaxxForce Big-Bore engine program was treated as a joint program with the Truck and Engine segments sharing in certain costs of the program. |
• | Beginning in 2011, certain purchases from the Engine segment by the Parts segment, primarily related to PPT, are recorded at market-based pricing. All other intersegment purchases from the Truck and Engine segments by the Parts segment are recorded at standard production cost. |
• | We allocate “access fees” to the Parts segment from the Truck and Engine segments for certain engineering and product development costs, depreciation expense, and selling, general and administrative expenses incurred by the Truck and Engine segments based on the relative percentage of certain sales, as adjusted for cyclicality. |
• | The Financial Services segment provides the manufacturing operations, primarily our Truck and Parts segments, financing services that account for a significant share of its financing revenue. Certain sales financed by the Financial Services segment, primarily NFC, require the manufacturing operations, primarily the Truck segment, to share a portion of customer losses. |
• | Beginning in 2009, as a result of higher costs of borrowings our Financial Services segment began charging the manufacturing operations higher fees and interest rates for its funding services. Effective with the third quarter of 2011, with improvements in its cost of borrowings, the Financial Services segment reduced some of these incremental fees and interest rates through an amendment to the Company's master intercompany agreement. Effective with the fourth quarter of 2011, the Company's master intercompany agreement was again amended to provide for the Financial Services segment to reimburse the manufacturing operations for fees and financing revenue when the Financial Services segment exceeds a minimum interest coverage ratio. As a result of the amendment, in the fourth quarter of 2011 the Financial Services segment reimbursed the manufacturing operations $11 million of financing fees and revenues. |
• | Beginning in 2011, we allocate gains and losses on commodities derivatives to the segment to which the underlying commodities relate. Previously, the impacts of commodities derivatives were not material and were recorded in Corporate. |
• | Other than the items discussed above, the selected financial information presented below is recognized in accordance with our policies described in Note 1, Summary of significant accounting policies. |
Truck(A) | Engine(A)(B) | Parts | Financial Services(C) | Corporate and Eliminations | Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
October 31, 2011 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 9,690 | $ | 2,101 | $ | 1,967 | $ | 200 | $ | — | $ | 13,958 | ||||||||||||
Intersegment sales and revenues | 48 | 1,690 | 188 | 91 | (2,017 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 9,738 | $ | 3,791 | $ | 2,155 | $ | 291 | $ | (2,017 | ) | $ | 13,958 | |||||||||||
Net income attributable to NIC | $ | 336 | $ | 84 | $ | 287 | $ | 129 | $ | 887 | $ | 1,723 | ||||||||||||
Income tax benefit | — | — | — | — | 1,458 | 1,458 | ||||||||||||||||||
Segment profit (loss) | $ | 336 | $ | 84 | $ | 287 | $ | 129 | $ | (571 | ) | $ | 265 | |||||||||||
Depreciation and amortization | $ | 151 | $ | 120 | $ | 9 | $ | 28 | $ | 20 | $ | 328 | ||||||||||||
Interest expense | — | — | — | 109 | 138 | 247 | ||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | (73 | ) | (4 | ) | 6 | — | — | (71 | ) | |||||||||||||||
Segment assets | 2,771 | 1,849 | 700 | 3,580 | 3,391 | 12,291 | ||||||||||||||||||
Capital expenditures(D) | 83 | 172 | 19 | 2 | 153 | 429 |
Truck(A) | Engine(A) | Parts | Financial Services(C) | Corporate and Eliminations | Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
October 31, 2010 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 8,205 | $ | 2,031 | $ | 1,690 | $ | 219 | $ | — | $ | 12,145 | ||||||||||||
Intersegment sales and revenues | 2 | 955 | 195 | 90 | (1,242 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 8,207 | $ | 2,986 | $ | 1,885 | $ | 309 | $ | (1,242 | ) | $ | 12,145 | |||||||||||
Net income (loss) attributable to NIC | $ | 424 | $ | 51 | $ | 266 | $ | 95 | $ | (613 | ) | $ | 223 | |||||||||||
Income tax expense | — | — | — | — | (23 | ) | (23 | ) | ||||||||||||||||
Segment profit (loss) | $ | 424 | $ | 51 | $ | 266 | $ | 95 | $ | (590 | ) | $ | 246 | |||||||||||
Depreciation and amortization | $ | 160 | $ | 106 | $ | 7 | $ | 28 | $ | 15 | $ | 316 | ||||||||||||
Interest expense | — | — | — | 113 | 140 | 253 | ||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | (51 | ) | (2 | ) | 3 | — | — | (50 | ) | |||||||||||||||
Segment assets | 2,457 | 1,715 | 811 | 3,497 | 1,250 | 9,730 | ||||||||||||||||||
Capital expenditures | 82 | 116 | 8 | 2 | 26 | 234 |
Truck | Engine | Parts | Financial Services(C) | Corporate and Eliminations | Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
October 31, 2009 | ||||||||||||||||||||||||
External sales and revenues, net | $ | 7,294 | $ | 2,031 | $ | 1,975 | $ | 269 | $ | — | $ | 11,569 | ||||||||||||
Intersegment sales and revenues | 3 | 659 | 198 | 79 | (939 | ) | — | |||||||||||||||||
Total sales and revenues, net | $ | 7,297 | $ | 2,690 | $ | 2,173 | $ | 348 | $ | (939 | ) | $ | 11,569 | |||||||||||
Net income (loss) attributable to NIC | $ | 147 | $ | 253 | $ | 436 | $ | 40 | $ | (556 | ) | $ | 320 | |||||||||||
Income tax expense | — | — | — | — | (37 | ) | (37 | ) | ||||||||||||||||
Segment profit (loss) | $ | 147 | $ | 253 | $ | 436 | $ | 40 | $ | (519 | ) | $ | 357 | |||||||||||
Depreciation and amortization | $ | 178 | $ | 118 | $ | 7 | $ | 25 | $ | 16 | $ | 344 | ||||||||||||
Interest expense | — | — | — | 161 | 90 | 251 | ||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | (5 | ) | 45 | 6 | — | — | 46 | |||||||||||||||||
Segment assets | 2,660 | 1,517 | 664 | 4,136 | 1,051 | 10,028 | ||||||||||||||||||
Capital expenditures(D) | 65 | 56 | 13 | 3 | 14 | 151 |
(A) | See Note 2, Restructurings and impairments, for further discussion. |
(B) | In 2011, the Engine segment recognized a $10 million gain on the extinguishment of a liability related to an equipment financing transaction. Previously, such gains were not material and were recorded in Corporate. |
(C) | Total sales and revenues in the Financial Services segment include interest revenues of $285 million, $270 million, and $304 million for 2011, 2010, and 2009, respectively. |
(D) | Exclusive of purchases of equipment leased to others. |
2011 | 2010 | 2009 | |||||||||
(in millions) | |||||||||||
Sales and revenues: | |||||||||||
United States | $ | 9,098 | $ | 8,728 | $ | 9,762 | |||||
Canada | 1,071 | 1,006 | 748 | ||||||||
Mexico | 1,550 | 609 | 467 | ||||||||
Brazil | 1,190 | 961 | 638 | ||||||||
Other | 1,049 | 841 | 454 |
2011 | 2010 | ||||||
(in millions) | |||||||
Long-lived assets:(A) | |||||||
United States | $ | 1,340 | $ | 1,277 | |||
Canada | 83 | 126 | |||||
Mexico | 152 | 148 | |||||
Brazil | 519 | 476 | |||||
Other | 29 | 1 |
(A) | Long-lived assets consist of Property and equipment, net, Goodwill, and Intangible assets, net. |
2011 | 2010 | 2009 | |||||||
(in millions) | |||||||||
Postretirement and other postemployment benefits | (2,045 | ) | (1,316 | ) | (1,788 | ) | |||
Foreign currency translation adjustments | 101 | 120 | 98 | ||||||
Accumulated other comprehensive loss | (1,944 | ) | (1,196 | ) | (1,690 | ) |
2011 | 2010 | 2009 | |||||||||
(in millions, except per share data) | |||||||||||
Numerator: | |||||||||||
Income attributable to Navistar International Corporation before extraordinary gain | $ | 1,723 | $ | 223 | $ | 297 | |||||
Extraordinary gain, net of tax | — | — | 23 | ||||||||
Net income attributable to Navistar International Corporation available to common stockholders | $ | 1,723 | $ | 223 | $ | 320 | |||||
Denominator: | |||||||||||
Weighted average shares outstanding: | |||||||||||
Basic | 72.8 | 71.7 | 71.0 | ||||||||
Effect of dilutive securities | 3.3 | 1.5 | 0.8 | ||||||||
Diluted | 76.1 | 73.2 | 71.8 | ||||||||
Basic earnings per share: | |||||||||||
Income attributable to Navistar International Corporation before extraordinary gain | $ | 23.66 | $ | 3.11 | $ | 4.18 | |||||
Extraordinary gain, net of tax | — | — | 0.33 | ||||||||
Net income attributable to Navistar International Corporation | $ | 23.66 | $ | 3.11 | $ | 4.51 | |||||
Diluted earnings per share | |||||||||||
Income attributable to Navistar International Corporation before extraordinary gain | $ | 22.64 | $ | 3.05 | $ | 4.14 | |||||
Extraordinary gain, net of tax | — | — | 0.32 | ||||||||
Net income attributable to Navistar International Corporation | $ | 22.64 | $ | 3.05 | $ | 4.46 |
2011 | 2010 | 2009 | ||||||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | |||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||
Options outstanding, at beginning of year | 4,911 | $ | 33.81 | 5,917 | $ | 33.09 | 5,589 | $ | 34.60 | |||||||||||
Granted | 1,069 | 60.32 | 599 | 38.71 | 951 | 22.66 | ||||||||||||||
Exercised | (1,440 | ) | 34.87 | (1,147 | ) | 30.94 | (456 | ) | 30.29 | |||||||||||
Forfeited/expired | (40 | ) | 47.06 | (458 | ) | 38.14 | (167 | ) | 31.81 | |||||||||||
Options outstanding, at end of year | 4,500 | 39.65 | 4,911 | 33.81 | 5,917 | 33.09 | ||||||||||||||
Options exercisable, at end of year | 3,064 | $ | 36.07 | 3,767 | $ | 34.67 | 5,023 | $ | 34.95 |
Options Outstanding | ||||||||||||||
Number Outstanding | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||||
Range of Exercise Prices | ||||||||||||||
(in thousands) | (in years) | (in millions) | ||||||||||||
$ 21.22 - $ 31.81 | 1,615 | 4.2 | $ | 24.98 | $ | 28 | ||||||||
$ 32.18 - $ 40.92 | 1,043 | 3.9 | 38.80 | 3 | ||||||||||
$ 42.48 - $ 69.91 | 1,842 | 3.9 | 53.00 | — |
Options Exercisable | ||||||||||||||
Number Outstanding | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||||
Range of Exercise Prices | ||||||||||||||
(in thousands) | (in years) | (in millions) | ||||||||||||
$ 21.22 - $ 31.81 | 1,347 | 3.6 | $ | 25.45 | $ | 22 | ||||||||
$ 32.18 - $ 40.92 | 738 | 3.3 | 40.02 | 2 | ||||||||||
$ 42.48 - $ 69.91 | 979 | 2.0 | 47.70 | — |
2011 | 2010 | 2009 | |||||||
Risk-free interest rate | 2.27 | % | 2.72 | % | 1.34 | % | |||
Dividend yield | — | % | — | % | — | % | |||
Expected volatility | 46.80 | % | 52.60 | % | 47.30 | % | |||
Expected life in years | 5.4 | 5.5 | 5.9 |
Share-Settled Restricted Stock Units | Cash-Settled Restricted Stock Units | |||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||
(in thousands) | (in thousands) | |||||||||||||
Nonvested at October 31, 2010 | 459 | $ | 45.21 | 275 | $ | 35.81 | ||||||||
Granted | 43 | 53.72 | 225 | 59.25 | ||||||||||
Vested | (333 | ) | 50.98 | (90 | ) | 35.81 | ||||||||
Forfeited | (7 | ) | 46.75 | (17 | ) | 46.53 | ||||||||
Nonvested at October 31, 2011 | 162 | 35.54 | 393 | 48.80 |
For the Years Ended October 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
(in millions) | ||||||||||||
Equity in income of affiliated companies, net of dividends | ||||||||||||
Equity in (income) loss of non-consolidated affiliates | $ | 71 | $ | 50 | $ | (46 | ) | |||||
Dividends from non-consolidated affiliates | 4 | 5 | 59 | |||||||||
Equity in loss of non-consolidated affiliates, net of dividends | $ | 75 | $ | 55 | $ | 13 | ||||||
Other non-cash operating activities | ||||||||||||
Loss on sales of affiliates | $ | — | $ | 8 | $ | 1 | ||||||
Extraordinary gain on acquisition of subsidiary | — | — | (23 | ) | ||||||||
Gain on increased equity interest in subsidiary | (6 | ) | — | (23 | ) | |||||||
Loss on sale of property and equipment | 2 | 1 | 8 | |||||||||
Loss (gain) on sale and impairment of repossessed collateral | (1 | ) | 9 | 32 | ||||||||
Loss on sale of finance receivables | — | 39 | 48 | |||||||||
Write-off of debt issuance cost | — | 4 | 11 | |||||||||
Gain on sale of leaseback settlement | (10 | ) | — | — | ||||||||
Other non-cash operating activities | (15 | ) | 61 | 54 | ||||||||
Changes in other assets and liabilities | ||||||||||||
Other current assets | $ | (28 | ) | $ | (39 | ) | $ | (34 | ) | |||
Other noncurrent assets | (32 | ) | 7 | (10 | ) | |||||||
Other current liabilities | 130 | (73 | ) | (85 | ) | |||||||
Postretirement benefits liabilities | 9 | (40 | ) | 97 | ||||||||
Other noncurrent liabilities | 94 | (16 | ) | (102 | ) | |||||||
Other, net | (9 | ) | 1 | (8 | ) | |||||||
Changes in other assets and liabilities | $ | 164 | $ | (160 | ) | $ | (142 | ) | ||||
Cash paid during the year | ||||||||||||
Interest, net of amounts capitalized | $ | 208 | $ | 170 | $ | 211 | ||||||
Income taxes, net of refunds | 9 | 27 | (5 | ) | ||||||||
Non-cash investing and financing activities | ||||||||||||
Property and equipment acquired under capital leases | $ | — | $ | 12 | $ | 6 | ||||||
Transfers from inventories to property and equipment for leases to others | 9 | 34 | 32 |
NIC | Navistar, Inc. | Non-Guarantor Subsidiaries | Eliminations and Other | Consolidated | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Condensed Consolidating Statement of Operations for the year Ended October 31, 2011 | ||||||||||||||||||||
Sales and revenues, net | $ | — | $ | 8,319 | $ | 13,202 | $ | (7,563 | ) | $ | 13,958 | |||||||||
Costs of products sold | — | 7,775 | 10,974 | (7,487 | ) | 11,262 | ||||||||||||||
Restructuring charges | — | 33 | 59 | — | 92 | |||||||||||||||
Impairment of property and equipment and intangible assets | — | — | 64 | — | 64 | |||||||||||||||
All other operating expenses | 79 | 1,263 | 902 | (95 | ) | 2,149 | ||||||||||||||
Total costs and expenses | 79 | 9,071 | 11,999 | (7,582 | ) | 13,567 | ||||||||||||||
Equity in income (loss) of affiliates | 1,759 | 462 | (37 | ) | (2,255 | ) | (71 | ) | ||||||||||||
Income (loss) before income tax | 1,680 | (290 | ) | 1,166 | (2,236 | ) | 320 | |||||||||||||
Income tax benefit (expense) | 43 | 1,937 | (511 | ) | (11 | ) | 1,458 | |||||||||||||
Net income (loss) | 1,723 | 1,647 | 655 | (2,247 | ) | 1,778 | ||||||||||||||
Less: Net income attributable to non-controlling interests | — | — | 55 | — | 55 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | 1,723 | $ | 1,647 | $ | 600 | $ | (2,247 | ) | $ | 1,723 |
NIC | Navistar, Inc. | Non-Guarantor Subsidiaries | Eliminations and Other | Consolidated | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Condensed Consolidating Balance Sheet as of October 31, 2011 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 226 | $ | 13 | $ | 300 | $ | — | $ | 539 | ||||||||||
Marketable securities | 429 | 1 | 288 | — | 718 | |||||||||||||||
Restricted cash and cash equivalents | 20 | 9 | 298 | — | 327 | |||||||||||||||
Finance and other receivables, net | 3 | 154 | 4,070 | 27 | 4,254 | |||||||||||||||
Inventories | — | 650 | 1,113 | (49 | ) | 1,714 | ||||||||||||||
Investments in non-consolidated affiliates | (2,094 | ) | 5,818 | 54 | (3,718 | ) | 60 | |||||||||||||
Property and equipment, net | — | 600 | 972 | (2 | ) | 1,570 | ||||||||||||||
Goodwill | — | — | 319 | — | 319 | |||||||||||||||
Deferred taxes, net | 31 | 1,912 | 114 | — | 2,057 | |||||||||||||||
Other | 168 | 152 | 416 | (3 | ) | 733 | ||||||||||||||
Total Assets | $ | (1,217 | ) | $ | 9,309 | $ | 7,944 | $ | (3,745 | ) | $ | 12,291 | ||||||||
Liabilities and Stockholders’ Equity (Deficit) | ||||||||||||||||||||
Debt | $ | 1,689 | $ | 156 | $ | 3,242 | $ | (231 | ) | $ | 4,856 | |||||||||
Postretirement benefits liabilities | — | 2,981 | 335 | — | 3,316 | |||||||||||||||
Amounts due to (from) affiliates | (5,574 | ) | 9,055 | (3,595 | ) | 114 | — | |||||||||||||
Other liabilities | 2,690 | (194 | ) | 1,717 | (122 | ) | 4,091 | |||||||||||||
Total Liabilities | (1,195 | ) | 11,998 | 1,699 | (239 | ) | 12,263 | |||||||||||||
Redeemable equity securities | 5 | — | — | — | 5 | |||||||||||||||
Stockholders’ equity attributable to non-controlling interests | — | — | 52 | (2 | ) | 50 | ||||||||||||||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (27 | ) | (2,689 | ) | 6,193 | (3,504 | ) | (27 | ) | |||||||||||
Total Liabilities and Stockholders’ Equity (Deficit) | $ | (1,217 | ) | $ | 9,309 | $ | 7,944 | $ | (3,745 | ) | $ | 12,291 |
NIC | Navistar, Inc. | Non-Guarantor Subsidiaries | Eliminations and Other | Consolidated | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows for the Year Ended October 31, 2011 | ||||||||||||||||||||
Net cash provided by (used in) operations | $ | (44 | ) | $ | (66 | ) | $ | 556 | $ | 434 | $ | 880 | ||||||||
Cash flow from investment activities | ||||||||||||||||||||
Net change in restricted cash and cash equivalents | — | — | (147 | ) | — | (147 | ) | |||||||||||||
Net sales (purchases) of marketable securities | (55 | ) | — | (77 | ) | — | (132 | ) | ||||||||||||
Capital expenditures | — | (264 | ) | (236 | ) | — | (500 | ) | ||||||||||||
Other investing activities | — | (12 | ) | (32 | ) | — | (44 | ) | ||||||||||||
Net cash provided by (used in) investment activities | (55 | ) | (276 | ) | (492 | ) | — | (823 | ) | |||||||||||
Cash flow from financing activities | ||||||||||||||||||||
Net borrowings (repayments) of debt | 91 | 333 | 48 | (434 | ) | 38 | ||||||||||||||
Other financing activities | (5 | ) | — | (133 | ) | — | (138 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 86 | 333 | (85 | ) | (434 | ) | (100 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (3 | ) | — | (3 | ) | |||||||||||||
Increase (decrease) in cash and cash equivalents | (13 | ) | (9 | ) | (24 | ) | — | (46 | ) | |||||||||||
Cash and cash equivalents at beginning of the year | 239 | 22 | 324 | — | 585 | |||||||||||||||
Cash and cash equivalents at end of the year | $ | 226 | $ | 13 | $ | 300 | $ | — | $ | 539 |
NIC | Navistar, Inc. | Non-Guarantor Subsidiaries | Eliminations and Other | Consolidated | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Condensed Consolidating Statement of Operations for the Year Ended October 31, 2010 | ||||||||||||||||||||
Sales and revenues, net | $ | — | $ | 6,751 | $ | 11,278 | $ | (5,884 | ) | $ | 12,145 | |||||||||
Costs of products sold | (1 | ) | 6,303 | 9,245 | (5,806 | ) | 9,741 | |||||||||||||
Restructuring charges | — | (13 | ) | (2 | ) | — | (15 | ) | ||||||||||||
All other operating expenses (income) | 61 | 1,349 | 763 | (94 | ) | 2,079 | ||||||||||||||
Total costs and expenses | 60 | 7,639 | 10,006 | (5,900 | ) | 11,805 | ||||||||||||||
Equity in income (loss) of affiliates | 283 | 895 | (17 | ) | (1,211 | ) | (50 | ) | ||||||||||||
Income (loss) before income tax | 223 | 7 | 1,255 | (1,195 | ) | 290 | ||||||||||||||
Income tax benefit (expense) | — | 55 | (78 | ) | — | (23 | ) | |||||||||||||
Net income (loss) | 223 | 62 | 1,177 | (1,195 | ) | 267 | ||||||||||||||
Less: Net income attributable to non-controlling interest | — | — | 44 | — | 44 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | 223 | $ | 62 | $ | 1,133 | $ | (1,195 | ) | $ | 223 |
NIC | Navistar, Inc. | Non-Guarantor Subsidiaries | Eliminations and Other | Consolidated | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Condensed Consolidating Balance Sheet as of October 31, 2010 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 239 | $ | 22 | $ | 324 | $ | — | $ | 585 | ||||||||||
Marketable securities | 375 | — | 211 | — | 586 | |||||||||||||||
Restricted cash and cash equivalents | 20 | 9 | 151 | — | 180 | |||||||||||||||
Finance and other receivables, net | 9 | 222 | 3,730 | (15 | ) | 3,946 | ||||||||||||||
Inventories | — | 644 | 974 | (50 | ) | 1,568 | ||||||||||||||
Goodwill | — | — | 324 | — | 324 | |||||||||||||||
Property and equipment, net | — | 443 | 1,003 | (4 | ) | 1,442 | ||||||||||||||
Investments in non-consolidated affiliates | (3,006 | ) | 5,290 | 60 | (2,241 | ) | 103 | |||||||||||||
Deferred taxes, net | 1 | 1 | 146 | (2 | ) | 146 | ||||||||||||||
Other | 266 | 118 | 467 | (1 | ) | 850 | ||||||||||||||
Total Assets | $ | (2,096 | ) | $ | 6,749 | $ | 7,390 | $ | (2,313 | ) | $ | 9,730 | ||||||||
Liabilities and Stockholders’ Equity (Deficit) | ||||||||||||||||||||
Debt | $ | 1,666 | $ | 213 | $ | 3,220 | $ | (229 | ) | $ | 4,870 | |||||||||
Postretirement benefits liabilities | — | 1,907 | 272 | — | 2,179 | |||||||||||||||
Amounts due to (from) affiliates | (5,058 | ) | 8,111 | (3,140 | ) | 87 | — | |||||||||||||
Other liabilities | 2,269 | 112 | 1,369 | (145 | ) | 3,605 | ||||||||||||||
Total Liabilities | (1,123 | ) | 10,343 | 1,721 | (287 | ) | 10,654 | |||||||||||||
Redeemable equity securities | 8 | — | — | — | 8 | |||||||||||||||
Stockholders’ equity attributable to non-controlling interest | — | — | 49 | — | 49 | |||||||||||||||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (981 | ) | (3,594 | ) | 5,620 | (2,026 | ) | (981 | ) | |||||||||||
Total Liabilities and Stockholders’ Equity (Deficit) | $ | (2,096 | ) | $ | 6,749 | $ | 7,390 | $ | (2,313 | ) | $ | 9,730 |
NIC | Navistar, Inc. | Non-Guarantor Subsidiaries | Eliminations and Other | Consolidated | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows for the Year Ended October 31, 2010 | ||||||||||||||||||||
Net cash provided by (used in) operations | $ | (174 | ) | $ | (421 | ) | $ | 1,041 | $ | 661 | $ | 1,107 | ||||||||
Cash flow from investment activities | ||||||||||||||||||||
Net change in restricted cash and cash equivalents | — | — | 515 | — | 515 | |||||||||||||||
Net purchases in marketable securities | (374 | ) | — | (212 | ) | — | (586 | ) | ||||||||||||
Capital expenditures | — | (107 | ) | (172 | ) | — | (279 | ) | ||||||||||||
Other investing activities | (20 | ) | (84 | ) | (13 | ) | 33 | (84 | ) | |||||||||||
Net cash provided by (used in) investment activities | (394 | ) | (191 | ) | 118 | 33 | (434 | ) | ||||||||||||
Cash flow from financing activities | ||||||||||||||||||||
Net borrowings (repayments) of debt | (20 | ) | 598 | (1,195 | ) | (661 | ) | (1,278 | ) | |||||||||||
Other financing activities | 35 | — | (24 | ) | (33 | ) | (22 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 15 | 598 | (1,219 | ) | (694 | ) | (1,300 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | — | — | |||||||||||||||
Decrease in cash and cash equivalents | (553 | ) | (14 | ) | (60 | ) | — | (627 | ) | |||||||||||
Cash and cash equivalents at beginning of the year | 792 | 36 | 384 | — | 1,212 | |||||||||||||||
Cash and cash equivalents at end of the year | $ | 239 | $ | 22 | $ | 324 | $ | — | $ | 585 |
NIC | Navistar, Inc. | Non-Guarantor Subsidiaries | Eliminations and Other | Consolidated | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Condensed Consolidating Statement of Operations for the Year Ended October 31, 2009 | ||||||||||||||||||||
Sales and revenues, net | $ | — | $ | 6,210 | $ | 11,013 | $ | (5,654 | ) | $ | 11,569 | |||||||||
Costs of products sold | 6 | 5,859 | 9,139 | (5,638 | ) | 9,366 | ||||||||||||||
Impairment of property and equipment | — | (1 | ) | 32 | — | 31 | ||||||||||||||
Restructuring charges | — | 59 | — | — | 59 | |||||||||||||||
All other operating expenses (income) | (7 | ) | 1,139 | 778 | (110 | ) | 1,800 | |||||||||||||
Total costs and expenses | (1 | ) | 7,056 | 9,949 | (5,748 | ) | 11,256 | |||||||||||||
Equity in income (loss) of affiliates | 320 | 983 | 51 | (1,308 | ) | 46 | ||||||||||||||
Income (loss) before income tax and extraordinary gain | 321 | 137 | 1,115 | (1,214 | ) | 359 | ||||||||||||||
Income tax benefit (expense) | (1 | ) | 48 | (84 | ) | — | (37 | ) | ||||||||||||
Income (loss) before extraordinary gain | 320 | 185 | 1,031 | (1,214 | ) | 322 | ||||||||||||||
Extraordinary gain, net of tax | — | — | 23 | — | 23 | |||||||||||||||
Net income (loss) | 320 | 185 | 1,054 | (1,214 | ) | 345 | ||||||||||||||
Less: Net income attributable to non-controlling interests | — | — | 25 | — | 25 | |||||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | 320 | $ | 185 | $ | 1,029 | $ | (1,214 | ) | $ | 320 |
NIC | Navistar, Inc. | Non-Guarantor Subsidiaries | Eliminations and Other | Consolidated | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows for the Year Ended October 31, 2009 | ||||||||||||||||||||
Net cash provided by (used in) operations | $ | 165 | $ | (55 | ) | $ | 894 | $ | 234 | $ | 1,238 | |||||||||
Cash flow from investment activities | ||||||||||||||||||||
Net change in restricted cash and cash equivalents | (19 | ) | (4 | ) | 94 | — | 71 | |||||||||||||
Net sales of marketable securities | 1 | — | 1 | — | 2 | |||||||||||||||
Capital expenditures | — | (46 | ) | (151 | ) | — | (197 | ) | ||||||||||||
Other investing activities | — | (71 | ) | (78 | ) | 61 | (88 | ) | ||||||||||||
Net cash provided by (used in) investment activities | (18 | ) | (121 | ) | (134 | ) | 61 | (212 | ) | |||||||||||
Cash flow from financing activities | ||||||||||||||||||||
Net borrowings (repayments) of debt | 166 | 185 | (807 | ) | (234 | ) | (690 | ) | ||||||||||||
Other financing activities | (53 | ) | — | 40 | (61 | ) | (74 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 113 | 185 | (767 | ) | (295 | ) | (764 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 9 | — | 9 | |||||||||||||||
Increase in cash and cash equivalents | 260 | 9 | 2 | — | 271 | |||||||||||||||
Increase in cash and cash equivalents upon consolidation of BDP and BDT | — | — | 80 | — | 80 | |||||||||||||||
Cash and cash equivalents at beginning of the year | 532 | 27 | 302 | — | 861 | |||||||||||||||
Cash and cash equivalents at end of the year | $ | 792 | $ | 36 | $ | 384 | $ | — | $ | 1,212 |
1st Quarter Ended January 31, | 2nd Quarter Ended April 30, | |||||||||||||||
2011 | 2010(A) | 2011 | 2010(A) | |||||||||||||
(in millions, except for per share data and percentages) | ||||||||||||||||
Sales and revenues, net | $ | 2,743 | $ | 2,809 | $ | 3,355 | $ | 2,743 | ||||||||
Manufacturing gross margin(B)(C) | 494 | 496 | 597 | 501 | ||||||||||||
Net income | 6 | 32 | 88 | 56 | ||||||||||||
Less: Net income attributable to non-controlling interests | 12 | 13 | 14 | 13 | ||||||||||||
Net income attributable to Navistar International Corporation(C) | $ | (6 | ) | $ | 19 | $ | 74 | $ | 43 | |||||||
Basic earnings per share attributable to Navistar International Corporation | $ | (0.08 | ) | $ | 0.27 | $ | 1.01 | $ | 0.61 | |||||||
Diluted earnings per share attributable to Navistar International Corporation | (0.08 | ) | 0.26 | 0.93 | 0.60 | |||||||||||
Market price range-common stock: | ||||||||||||||||
High | 66.39 | 41.52 | 71.49 | 52.43 | ||||||||||||
Low | 48.32 | 31.53 | 58.49 | 36.79 |
3rd Quarter Ended July 31, | 4th Quarter Ended October 31, | |||||||||||||||
2011(D) | 2010(A) | 2011(A)(D) | 2010(A)(E) | |||||||||||||
(in millions, except for per share data and percentages) | ||||||||||||||||
Sales and revenues, net | $ | 3,537 | $ | 3,221 | $ | 4,323 | $ | 3,372 | ||||||||
Manufacturing gross margin(B)(C) | 560 | 637 | 845 | 551 | ||||||||||||
Impairment of property and equipment | 64 | — | — | — | ||||||||||||
Net income | 1,409 | 129 | 275 | 50 | ||||||||||||
Less: Net income attributable to non-controlling interests | 9 | 12 | 20 | 6 | ||||||||||||
Net income attributable to Navistar International Corporation(C) | $ | 1,400 | $ | 117 | $ | 255 | $ | 44 | ||||||||
Basic earnings per share attributable to Navistar International Corporation | $ | 19.10 | $ | 1.61 | $ | 3.52 | $ | 0.62 | ||||||||
Diluted earnings per share attributable to Navistar International Corporation | 18.24 | 1.56 | 3.48 | 0.61 | ||||||||||||
Market price range-common stock: | ||||||||||||||||
High | 70.40 | 58.00 | 52.36 | 53.83 | ||||||||||||
Low | 50.05 | 44.00 | 30.01 | 40.58 |
(A) | Starting with the first quarter of 2011, the Company changed its method of accruing for certain incentive compensation, specifically relating to cash bonuses, for interim reporting purposes from a ratable method to a performance-based method. The Company believes that the performance-based method is preferable because it links the accrual of incentive compensation with the achievement of performance. This change did not have an impact on our annual financial results. We have revised our previously reported Quarterly Condensed Consolidated Statements of Operations and Financial Data on a retrospective basis to reflect this change in principle based on information that would have been available as of our previous filing. |
As Previously Reported | Revisions for Change in Accounting Principle | As Revised | ||||||||||
(in millions, except per share data) | ||||||||||||
Net income | $ | 45 | $ | 5 | $ | 50 | ||||||
Net income attributable to Navistar International Corporation | 39 | 5 | 44 | |||||||||
Basic earnings per share attributable to Navistar International Corporation | 0.55 | 0.07 | 0.62 | |||||||||
Diluted earnings per share attributable to Navistar International Corporation | 0.54 | 0.07 | 0.61 |
As Computed Under the Ratable Method | As Reported Under the Performance-Based Method | Effect of Change | ||||||||||
(in millions, except per share data) | ||||||||||||
Net income | $ | 297 | $ | 275 | $ | 22 | ||||||
Net income attributable to Navistar International Corporation | 277 | 255 | 22 | |||||||||
Basic earnings per share attributable to Navistar International Corporation | 3.82 | 3.52 | 0.30 | |||||||||
Diluted earnings per share attributable to Navistar International Corporation | 3.78 | 3.48 | 0.30 |
(B) | Manufacturing gross margin is calculated by subtracting Costs of products sold from Sales of manufactured products, net. |
(C) | We record adjustments to our product warranty accrual to reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. |
(D) | In the fourth quarter of 2011, certain out-of-period adjustments were recorded related to the partial release of the Company's income tax valuation allowance. The adjustments of approximately $61 million primarily related to the classification of a deferred tax item and resulted in the Company recognizing an additional income tax benefit. The Company should have recognized the income tax benefit for this amount in the third quarter of 2011 with the release of a portion of the Company's income tax valuation allowance. Correcting the error was not material to any of the related periods. |
(E) | In the fourth quarter of 2010, we recorded out-of-period adjustments of $10 million. See Note 1, Summary of significant accounting policies. |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
• | Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the Company. |
• | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP and that receipts and expenditures of the Company are being made in accordance with authorization of our management and our Board of Directors. |
• | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our consolidated financial statements. |
Item 9B. | Other Information |
Item 10. | Directors, Executive Officers, and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal Accounting Fees and Services |
Exhibit: | Page | |||
(3) | E-1 | |||
(4) | E-3 | |||
(10) | E-4 | |||
(11) | Computation of Earnings per Share (incorporated by reference from Note 18, Earnings per share attributable to Navistar International Corporation, to the accompanying consolidated financial statements) | |||
(12) | E-10 | |||
(18) | E-11 | |||
(21) | E-12 | |||
(23.1) | E-13 | |||
(24) | E-14 | |||
(31.1) | E-15 | |||
(31.2) | E-16 | |||
(32.1) | E-17 | |||
(32.2) | E-18 | |||
(99.1) | E-19 | |||
(99.2) | E-27 | |||
(101.ING)* | XBRL Instance Document | N/A | ||
(101.SCH)* | XBRL Taxonomy Extension Schema Document | N/A | ||
(101.CAL)* | XBRL Taxonomy Extension Calculation Linkbase Document | N/A | ||
(101.LAB)* | XBRL Taxonomy Extension Label Linkbase Document | N/A | ||
(101.PRE)* | XBRL Taxonomy Extension Presentation Linkbase Document | N/A | ||
(101.DEF)* | XBRL Taxonomy Extension Definition Linkbase Document | N/A |
* | Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Exchange Act and otherwise are not subject to liability under those sections. |
NAVISTAR INTERNATIONAL CORPORATION | |
(Registrant) | |
/s/ RICHARD C. TARAPCHAK | |
Richard C. Tarapchak | |
Vice President and Controller | |
(Principal Accounting Officer) |
Signature | Title | Date | ||
/s/ DANIEL C. USTIAN | Chairman, President and Chief Executive Officer and Director (Principal Executive Officer) | December 20, 2011 | ||
Daniel C. Ustian | ||||
/s/ ANDREW J. CEDEROTH | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | December 20, 2011 | ||
Andrew J. Cederoth | ||||
/s/ RICHARD C. TARAPCHAK | Vice President and Controller (Principal Accounting Officer) | December 20, 2011 | ||
Richard Tarapchak | ||||
/s/ EUGENIO CLARIOND | Director | December 20, 2011 | ||
Eugenio Clariond | ||||
/s/ JOHN D. CORRENTI | Director | December 20, 2011 | ||
John D. Correnti | ||||
/s/ DIANE H. GULYAS | Director | December 20, 2011 | ||
Diane H. Gulyas | ||||
/s/ MICHAEL N. HAMMES | Director | December 20, 2011 | ||
Michael N. Hammes | ||||
/s/ DAVID D. HARRISON | Director | December 20, 2011 | ||
David D. Harrison | ||||
/s/ JAMES H. KEYES | Director | December 20, 2011 | ||
James H. Keyes | ||||
/s/ STEVEN J. KLINGER | Director | December 20, 2011 | ||
Steven J. Klinger | ||||
/s/ STANLEY A. MCCHRYSTAL | Director | December 20, 2011 | ||
Stanley A. McChrystal | ||||
/s/ DENNIS D. WILLIAMS | Director | December 20, 2011 | ||
Dennis D. Williams |
3.1 | Restated Certificate of Incorporation of Navistar International Corporation effective July 1, 1993. Filed as Exhibit 3.2 to Annual Report on Form 10-K for the period ended October 31, 1993, which was dated and filed on January 27, 1994. Commission File No. 001-9618, and amended as of May 4, 1998. | |
3.2 | Certificate of Amendment to Restated Certificate of Incorporation, filed with the Secretary of State of the State of Delaware effective February 17, 2011. Filed as Exhibit 3.1 to Current Report on Form 8-K, which was dated and filed on February 17, 2011. Commission File No. 001-09618. | |
3.3 | Certificate of Retirement of Stock filed with the Secretary of State for the State of Delaware effective July 30, 2003 retiring the Class B common stock of Navistar International Corporation in accordance with the Restated Certificate of Incorporation of Navistar International Corporation. Filed as Exhibit 3.2 to Quarterly Report on Form 10-Q for the period ended July 31, 2003, which was dated and filed on September 12, 2003. Commission File No. 001-09618. | |
3.4 | The Amended and Restated By-Laws of Navistar International Corporation effective December 14, 2010 (marked to indicate all changes from the August 26, 2008 version). Filed as Exhibit 3.1 to Current Report on Form 8-K, which was dated and filed on December 16, 2010. Commission File No. 001-09618. | |
3.5 | Certificate of Designation, Preferences and Rights of Junior Participating Preferred Stock, Series A filed with the Secretary of State for the State of Delaware effective July 23, 2007 establishing the Series A Preferred Stock of Navistar International Corporation in accordance with the Restated Certificate of Incorporation of Navistar International Corporation. Filed as Exhibit 3.1 to Current Report on Form 8-K which was dated and filed on July 23, 2007. Commission File No. 001-09618. |
3.6 | One Time Waiver by the Board of Directors of the Company, as disclosed in the Current Report on Form 8-K dated and filed on October 17, 2011, which extended the deadline for stockholders to nominate directors to the board for consideration at the 2012 annual meeting from October 18, 2011 to November 15, 2011. Document filed herewith. |
4.1 | Navistar International Corporation Restated Stock Certificate filed as Exhibit 4.20 to Form 10-Q for the period ended January 31, 2002, which was dated and filed March 11, 2002. Commission File No. 001-9618. |
4.2 | Indenture, dated as of October 28, 2009, by and among Navistar International Corporation, as Issuer, Navistar, Inc., as Guarantor, and The Bank of New York Mellon Trust Company, as Trustee, for Navistar International Corporation's 8.25% Senior Notes due 2021. Filed as Exhibit 4.1 to Current Report on Form 8-K dated and filed October 28, 2009. Commission File No. 001-09618. |
4.3 | Indenture, dated as of October 28, 2009, by and between Navistar International Corporation, as Issuer, and The Bank of New York Mellon Trust Company, as Trustee, for Navistar International Corporation's 3.00% Senior Subordinated Convertible Notes due 2014. Filed as Exhibit 4.2 to Current Report on Form 8-K dated and filed October 28, 2009. Commission File No. 001-09618. |
10.1 | Pooling and Servicing Agreement dated as of June 8, 1995, among Navistar Financial Corporation, as Servicer, Navistar Financial Securities Corporation, as Seller, Chemical Bank, as 1990 Trust Trustee, and The Bank of New York, as Master Trust Trustee. Filed as Exhibit 4.1 to Navistar Financial Securities Corporation's Form 8-K dated and filed December 12, 2003. Commission File No. 033-87374. | ||
10.2 | First Amendment to the Pooling and Servicing Agreement dated as of September 12, 1995, among Navistar Financial Corporation, as Servicer, Navistar Financial Securities Corporation, as Seller and The Bank of New York, as Master Trust Trustee. Filed as Exhibit 10.103 to Navistar Financial Corporation's Form 10-K dated and filed December 10, 2007. Commission File No. 001-04146. | ||
10.3 | Second Amendment to the Pooling and Servicing Agreement dated as of March 27, 1996, among Navistar Financial Corporation, as Servicer, Navistar Financial Securities Corporation, as Seller and The Bank of New York, as Master Trust Trustee. Filed as Exhibit 10.104 to Navistar Financial Corporation's Form 10-K dated and filed December 10, 2007. Commission File No. 001-04146. | ||
10.4 | Third Amendment to the Pooling and Servicing Agreement dated as of July 17, 1998, among Navistar Financial Corporation, as Servicer, Navistar Financial Securities Corporation, as Seller and The Bank of New York, as Master Trust Trustee. Filed as Exhibit 10.105 to Navistar Financial Corporation's Form 10-K dated and filed December 10, 2007. Commission File No. 001-04146. | ||
10.5 | Fourth Amendment to the Pooling and Servicing Agreement dated as of June 2, 2000, among Navistar Financial Corporation, as Servicer, Navistar Financial Securities Corporation, as Seller and The Bank of New York, as Master Trust Trustee. Filed as Exhibit 4.7 to Navistar Financial Securities Corporation's Form S-3/A dated and filed June 12, 2000. Commission File No. 333-32960. | ||
10.6 | Fifth Amendment to the Pooling and Servicing Agreement dated as of July 13, 2000, among Navistar Financial Corporation, as Servicer, Navistar Financial Securities Corporation, as Seller and The Bank of New York, as Master Trust Trustee. Filed as Exhibit 4.2 to Navistar Financial Dealer Note Master Trust's Form 8-K dated July 13, 2000 and filed July 14, 2000. Commission File No. 033-36767-03. | ||
10.7 | Sixth Amendment to the Pooling and Servicing Agreement dated as of October 31, 2003, among Navistar Financial Corporation, as Servicer, Navistar Financial Securities Corporation, as Seller and The Bank of New York, as Master Trust Trustee. Filed as Exhibit 4.7 to Navistar Financial Dealer Note Master Owner Trust's Form S-3/A dated and filed December 23, 2003. Commission File No. 333-104639-01. | ||
10.8 | Seventh Amendment to the Pooling and Servicing Agreement dated as of June 10, 2004, among Navistar Financial Corporation, as Servicer, Navistar Financial Securities Corporation, as Seller and The Bank of New York, as Master Trust Trustee. Filed as Exhibit 4.6 to Navistar Financial Dealer Note Master Owner Trust's Form 8-K dated June 10, 2004 and filed June 14, 2004. Commission File No. 333-104639-01. | ||
10.9 | Eighth Amendment to the Pooling and Servicing Agreement dated as of November 10, 2009, among Navistar Financial Corporation, as Servicer, Navistar Financial Securities Corporation, as Seller and The Bank of New York Mellon, as Master Trust Trustee. Filed as Exhibit 10.2 to Navistar Financial Corporation Form 8-K dated and filed November 17, 2009. Commission File No. 001-04146. | ||
10.10 | Ninth Amendment to the Pooling and Servicing Agreement, dated July 31, 2010, among Navistar Financial Securities Corporation, as Seller, Navistar Financial Corporation, as Servicer and The Bank of New York Mellon, as Master Trust Trustee. Filed as Exhibit 10.1 to Form 8-K dated and filed August 3, 2010. Commission File No. 001-09618. | ||
10.11 | Pooling and Servicing Agreement, dated November 2, 2011, by and among Navistar Financial Corporation, as Servicer, Navistar Financial Securities Corporation, as Depositor, and Navistar Financial Dealer Note Master Owner Trust II, as Issuing Entity. Filed as Exhibit 10.6 to the Form 8-K dated and filed on November 7. 2011. Commission File No. 001-09618. | ||
10.12 | Series 2004-1 Supplement to the Pooling and Servicing Agreement, dated as of June 10, 2004, by and among Navistar Financial Corporation, as Servicer, Navistar Financial Securities Corporation, as Seller, and the Bank of New York, as Master Trust Trustee on behalf of the Series 2004-1 Certificateholders. Filed as Exhibit 4.1 to Navistar Financial Dealer Note Master Owner Trust's Form 8-K on June 14, 2004. Commission File No. 333-104639-01. | ||
10.13 | Amendment No. 1 to the Series 2004-1 Supplement to the Pooling and Servicing Agreement, dated as of November 10, 2009, by and among Navistar Financial Corporation, as Servicer, Navistar Financial Securities Corporation, as Seller, and the Bank of New York, as Master Trust Trustee on behalf of the Series 2004-1 Certificateholders. Filed as Exhibit 10.3 to Navistar Financial Corporation's Form 8-K dated and filed November 17, 2009. Commission File No. 001-04146. | ||
10.14 | Series 2011-1 Supplement to the Pooling and Servicing Agreement, dated November 2, 2011, by and among Navistar Financial Corporation, as Servicer, Navistar Financial Securities Corporation, as Seller, and The Bank of New York Mellon, as Master Trust Trustee. Filed as Exhibit 10.1 to the Form 8-K dated and filed on November 7. 2011. Commission File No. 001-09618. | ||
10.15 | Note Purchase Agreement, dated as of April 16, 2010, among Navistar Financial Services Corporation, Navistar Financial Corporation, Kitty Hawk Funding Corporation, as a Conduit Purchaser, Liberty Street Funding LLC, as a Conduit Purchaser, The Bank of Nova Scotia, as a Managing Agent and a Committed Purchaser, and Bank of America, National Association, as a Managing Agent, the Administrative Agent and a Committed Purchaser. Filed as Exhibit 10.2 to Navistar Financial Corporation's Form 8-K dated and filed on April 21, 2010. Commission File No. 001-04146. | ||
10.16 | First Amendment dated as of June 21, 2010 to the Note Purchase Agreement among Navistar Financial Securities Corporation, as Seller, Navistar Financial Corporation, as Servicer, Kitty Hawk Funding Corporation, as a Conduit Purchaser, Liberty Street Funding LLC, as a Conduit Purchaser, The Bank of Nova Scotia, as a Managing Agent and a Committed Purchaser, and Bank of America, National Association, as a Managing Agent. Filed as Exhibit 10.113 to Quarterly Report on Form 10-Q dated September 7, 2010 and filed September 8, 2010. Commission File No. 001-09618. | ||
10.17 | Second Amendment dated August 4, 2010 to the Note Purchase Agreement among Navistar Financial Securities Corporation, as Seller, Navistar Financial Corporation, as Servicer, Kitty Hawk Funding Corporation, as a Conduit Purchaser, Liberty Street Funding LLC, as a Conduit Purchaser, The Bank of Nova Scotia, as a Managing Agent and a Committed Purchaser, and Bank of America, National Association, as a Managing Agent. Filed as Exhibit 10.1 to Form 8-K dated and filed August 5, 2010. Commission File No. 001-09618. | ||
10.18 | Third Amendment to the Note Purchase Agreement dated July 19, 2011, among Navistar Financial Securities Corporation, as Seller, Navistar Financial Corporation, as Servicer, Liberty Street Funding LLC, as a Conduit Purchaser, The Bank of Nova Scotia, as a Managing Agent and a Committed Purchaser, and Bank of America, National Association, as a Managing Agent. Filed as Exhibit 10.1 to the Form 8-K dated and filed on July 20. 2011. Commission File No. 001-09618. | ||
10.19 | Master Owner Trust Agreement dated as of June 10, 2004, between Navistar Financial Securities Corporation, as Seller and Chase Manhattan Bank USA, N.A. as Master Owner Trust Trustee. Filed as Exhibit 4.5 to Navistar Financial Dealer Note Master Owner Trust's Form 8-K dated June 10, 2004 and filed June 14, 2004. Commission File No. 333-104639-01. | ||
10.20 | Amendment No. 1 dated November 10, 2009 to the Master Owner Trust Agreement dated as of June 10, 2004, between Navistar Financial Securities Corporation, as Seller and Deutsche Bank Trust Company Delaware (as successor-in-interest to Chase Manhattan Bank USA, N.A.) as Master Owner Trust Trustee. Filed as Exhibit 10.4 to Navistar Financial Corporation's Form 8-K dated and filed November 17, 2009. Commission File No. 001-04146. | ||
10.21 | Trust Agreement, dated November 2, 2011, between Navistar Financial Securities Corporation, as Depositor, and Deutsche Bank Trust Company Delaware, as Owner Trustee. Filed as Exhibit 10.2 to the Form 8-K dated and filed on November 7. 2011. Commission File No. 001-09618. | ||
10.22 | Indenture, dated as of June 10, 2004, between Navistar Financial Dealer Notes Master Owner Trust, as Issuer and the Bank of New York, as Indenture Trustee. Filed as Exhibit 4.2 to Navistar Financial Dealer Note Master Owner Trust's Form 8-K dated June 10, 2004 and filed June 14, 2004. Commission File No. 333-104639-01. | ||
10.23 | Indenture, dated November 2, 2011, between Navistar Financial Dealer Note Master Owner Trust II, as Issuing Entity, and The Bank of New York Mellon, as Indenture Trustee. Filed as Exhibit 10.3 to the Form 8-K dated and filed on November 7. 2011. Commission File No. 001-09618. | ||
10.24 | Series 2009-1 Indenture Supplement dated November 10, 2009, to the Indenture dated June 10, 2004, between Navistar Financial Dealer Note Master Owner Trust, as Issuer, and The Bank of New York Mellon, as Indenture Trustee. Filed as Exhibit 10.1 to Navistar Financial Corporation's Form 8-K dated and filed November 17, 2009. Commission File No. 001-04146. | ||
10.25 | Series 2010-1 Indenture Supplement dated February 12, 2010 to the Indenture dated June 10, 2004, between Navistar Financial Dealer Note Master Owner Trust, as Issuer, and the Bank of New York Mellon, as Indenture Trustee. Filed as Exhibit 10.1 to Navistar Financial Corporation's Form 8-K dated and filed February 16, 2010. Commission File No. 001-04146. | ||
10.26 | Series 2010-VFN Indenture Supplement, dated April 16, 2010, to the Indenture, dated as of June 10, 2004, between Navistar Financial Dealer Note Master Owner Trust, as Issuer, and The Bank of New York Mellon, as Indenture Trustee. Filed as Exhibit 10.1 to Navistar Financial Corporation's Form 8-K dated and filed on April 21, 2010. Commission File No. 001-04146. | ||
10.27 | Amendment No. 1 to the Series 2010-VFN Indenture Supplement dated July 19, 2011, between Navistar Financial Dealer Note Master Owner Trust, as Issuer, and The Bank of New York Mellon, as Indenture Trustee. Filed as Exhibit 10.2 to the Form 8-K dated and filed on July 20, 2011. Commission File No. 001-09618. | ||
10.28 | Series 2011-1 Indenture Supplement to the Indenture dated November 2, 2011, between Navistar Financial Dealer Note Master Owner Trust II, as Issuing Entity, and The Bank of New York Mellon, a New York banking corporation, as Indenture Trustee. Filed as Exhibit 10.4 to the Form 8-K dated and filed on November 7. 2011. Commission File No. 001-09618. | ||
10.29 | Omnibus Transfer and Termination Agreement, dated November 2, 2011, by and among Navistar Financial Corporation, Navistar Financial Securities Corporation, Navistar, Inc. The Bank of New York Mellon, as 1995 Trust Trustee and Indenture Trustee, Wells Fargo Bank, National Association, as backup servicer, and Navistar Financial Dealer Note Master Owner Trust II. Filed as Exhibit 10.5 to the Form 8-K dated and filed on November 7. 2011. Commission File No. 001-09618. | ||
*10.30 | Navistar International Corporation 1994 Performance Incentive Plan, as amended. Filed as Exhibit 10.31 to Form 10-Q for the period ended January 31, 2002, which was dated and filed March 11, 2002. Commission File No. 001-09618. | ||
*10.31 | Navistar International Corporation 1998 Supplemental Stock Plan, as amended and supplemented by the Restoration Stock Option Program. Filed as Exhibit 10.32 to Form 10-Q for the period ended January 31, 2002, which was dated and filed March 11, 2002 Commission File No. 001-09618. | ||
*10.32 | Board of Directors resolution amending the 1994 Performance Incentive Plan, the 1998 Supplemental Stock Plan and the 1998 Non-Employee Director Stock Option Plan to prohibit the repricing and discounting of options. Filed as Exhibit 10.36 to Form 10-K for the period ended October 31, 2003, which was dated December 18, 2003 and filed December 19, 2003. Commission File No. 001-09618. | ||
*10.33 | Navistar International Corporation 1998 Non-Employee Director Stock Option Plan, as amended. Filed as Exhibit 10.1 to Form S-8 dated April 19, 2002 and filed April 23, 2002. Registration No. 333-86754. | ||
*10.34 | Board of Directors resolution terminating the 1998 Non-Employee Directors Plan. Filed as Exhibit 10.39 to Form 10-Q for the period ended April 30, 2004, which was dated and filed June 9, 2004. Commission File No. 001-09618. | ||
*10.35 &10.36 | Compensation Committee and Board of Directors resolutions approving certain technical amendments to Navistar's 1994 Performance Incentive Plan, 1998 Supplemental Stock Plan, 1998 Interim Stock Plan, 1998 Non-Employee Directors Stock Option Plan and 2004 Performance Incentive Plan. Filed as Exhibits 10.69 and 10.70 to Form 8-K dated and filed April 20, 2007. Commission File No. 001-09618. | ||
*10.37 &10.38 | Compensation Committee and Board of Directors resolutions approving certain change of control amendments to Navistar's 2004 Performance Incentive Plan, 1998 Non-Employee Directors Stock Option Plan, 1988 Non-Employee Directors Stock Option Plan, 1994 Performance Incentive Plan, 1998 Supplemental Stock Plan and 1998 Interim Stock Plan. Filed as Exhibits 10.72 and 10.73 to Form 8-K dated and filed June 22, 2007. Commission File No. 001-09618. | ||
*10.39 | Form of Indemnification Agreement which is executed with all non-employee directors dated December 11, 2007. Filed as Exhibit 10.93 to Form 10-K for the period ended October 31, 2007, which was dated and filed May 29, 2008. Commission File No. 001-09618. | ||
*10.40 | Board of Directors resolution approving an additional retainer for the lead director of the Board of Directors. Filed as Exhibit 10.94 to Form 10-K for the period ended October 31, 2007, which was dated and filed May 29, 2008. Commission File No. 001-09618. | ||
*10.41 | Navistar, Inc. Supplemental Executive Retirement Plan, as amended and restated effective as of January 1, 2005 (including amendment through July 31, 2008). Filed as Exhibit 10.82 to Quarterly Report on Form 10-Q for the period ended July 31, 2008, which was dated and filed on September 3, 2008. Commission File No. 001-09618. | ||
*10.42 | Navistar, Inc. Managerial Retirement Objective Plan, as amended and restated effective as of January 1, 2005 (including amendments through July 31, 2008). Filed as Exhibit 10.83 to Quarterly Report on Form 10-Q for the period ended July 31, 2008, which was dated and filed on September 3, 2008. Commission File No. 001-09618. In December 2008, the Navistar Financial Corporation Managerial Retirement Objective Plan was merged with and into the Navistar, Inc. Managerial Retirement Objective Plan without requiring material modifications to the Navistar, Inc. Managerial Retirement Objective Plan as the plans were substantially identical. | ||
*10.43 | Navistar, Inc. Supplemental Retirement Accumulation Plan, effective as of January 31, 2008 (including amendments through July 31, 2008). Filed as Exhibit 10.85 to Quarterly Report on Form 10-Q for the period ended July 31, 2008, which was dated and filed on September 3, 2008. Commission File No. 001-09618. | ||
*10.44 | Form of Incentive Stock Option Award Agreement. Filed as Exhibit 10.87 to Quarterly Report on Form 10-Q for the period ended July 31, 2008, which was dated and filed on September 3, 2008. Commission File No. 001-09618. | ||
*10.45 | Form of Supplement to Incentive Stock Option Award Agreement. Filed as Exhibit 10.79 to Annual Report on Form 10-K for the period ended October 31, 2010, which was dated and filed on December 22, 2010. Commission File No. 001-09618. | ||
*10.46 | Form of Non-Qualified Stock Option Award Agreement. Filed as Exhibit 10.89 to Quarterly Report on Form 10-Q for the period ended July 31, 2008, which was dated and filed on September 3, 2008. Commission File No. 001-09618. | ||
*10.47 | Form of Supplement to Non-Qualified Stock Option Award Agreement. Filed as Exhibit 10.80 to Annual Report on Form 10-K for the period ended October 31, 2010, which was dated and filed on December 22, 2010. Commission File No. 001-09618. | ||
*10.48 | Form of Restoration Stock Option Award Agreement. Filed as Exhibit 10.91 to Quarterly Report on Form 10-Q for the period ended July 31, 2008, which was dated and filed on September 3, 2008. Commission File No. 001-09618. | ||
*10.49 | Form of Supplement to Restoration Stock Option Award Agreement. Filed as Exhibit 10.81 to Annual Report on Form 10-K for the period ended October 31, 2010, which was dated and filed on December 22, 2010. Commission File No. 001-09618. | ||
*10.50 | Form of Non-Employee Director Stock Option Award Agreement. Filed as Exhibit 10.93 to Quarterly Report on Form 10-Q for the period ended July 31, 2008, which was dated and filed on September 3, 2008. Commission File No. 001-09618. | ||
*10.51 | Form of Supplement to Non-Employee Director Stock Option Award Agreement. Filed as Exhibit 10.82 to Annual Report on Form 10-K for the period ended October 31, 2010, which was dated and filed on December 22, 2010. Commission File No. 001-09618. | ||
*10.52 | Form of Restricted Stock Award Agreement. Filed as Exhibit 10.95 to Quarterly Report on Form 10-Q for the period ended July 31, 2008, which was dated and filed on September 3, 2008. Commission File No. 001-09618. | ||
*10.53 | Form of Deferred Share Unit Certificate. Filed as Exhibit 10.97 to Quarterly Report on Form 10-Q for the period ended July 31, 2008, which was dated and filed on September 3, 2008. Commission File No. 001-09618. | ||
*10.54 | Board of Directors resolution amending the 1998 Non-Employee Director Stock Option Plan to permit net settlement of shares. Filed as Exhibit 10.98 to Quarterly Report on Form 10-Q for the period ended July 31, 2008, which was dated and filed on September 3, 2008. Commission File No. 001-09618. | ||
*10.55 | Compensation Committee resolutions amending the Navistar's 1994 Performance Incentive Plan, 1998 Interim Stock Plan, 1998 Supplemental Stock Plan, 2004 Performance Incentive Plan and the 1998 Non-Employee Director Stock Option Plan, to permit net settlement of shares. Filed as Exhibit 10.99 to Quarterly Report on Form 10-Q for the period ended July 31, 2008, which was dated and filed on September 3, 2008. Commission File No. 001-09618. | ||
*10.56 | Form of Restricted Stock Unit Award Notice and Agreement. Filed as Exhibit 10.101 to Quarterly Report on Form 10-Q for the period ended July 31, 2008, which was dated and filed on September 3, 2008. Commission File No. 001-09618. | ||
*10.57 | Form of Premium Share Unit Certificate, as amended. Filed as Exhibit 10.80 to Annual Report on Form 10-K for the period ended October 31, 2008, which was dated and filed on December 30, 2008. Commission File No. 001-09618. | ||
*10.58 | Form of Premium Share Deferral Election Form. Filed as Exhibit 10.81 to Annual Report on Form 10-K for the period ended October 31, 2008, which was dated and filed on December 30, 2008. Commission File No. 001-09618. | ||
*10.59 | Navistar International Corporation Non-Employee Directors' Deferred Fee Plan, as amended and restated December 16, 2008. Filed as Exhibit 10.83 to Annual Report on Form 10-K for the period ended October 31, 2008, which was dated and filed on December 30, 2008. Commission File No. 001-09618. | ||
*10.60 | Compensation Committee and Board of Directors approval of 2009 long term incentive equity grant awards to non-employee directors and named executive officers. Filed as Exhibit 10.85 to Annual Report on Form 10-K for the period ended October 31, 2008, which was dated and filed on December 30, 2008. Commission File No. 001-09618. | ||
*10.61 | First Amendment to the Navistar, Inc. Supplemental Retirement Accumulation Plan. Filed as Exhibit 10.86 to Annual Report on Form 10-K for the period ended October 31, 2008, which was dated and filed on December 30, 2008. Commission File No. 001-09618. | ||
*10.62 | Navistar International Corporation Amended and Restated Executive Stock Ownership Program dated January 9, 2009. Filed as Exhibit 10.98 to Quarterly Report on Form 10-Q for the period ended January 31, 2009, which was dated and filed on March 11, 2009. Commission File No. 001-09618. | ||
*10.63 | Compensation Committee and Board of Director resolutions amending the Navistar 1998 Non-Employee Director Stock Option Plan, the Navistar 1988 Non-Employee Director Stock Option Plan, the Navistar 1994 Performance Incentive Plan, the Navistar 1998 Interim Stock Plan and the Navistar 1998 Supplemental Stock Plan. Filed as Exhibit 10.99 to Quarterly Report on Form 10-Q for the period ended January 31, 2009, which was dated and filed on March 11, 2009. Commission File No. 001-09618. | ||
10.64 | Identical Forms of a (1) Base Call Option Transaction Confirmation, (2) Side Letter Agreement to the Base Call Option Transaction Confirmation, (3) Base Warrants Confirmation and (4) Side Letter Agreement to Base Warrants Confirmation, all dated October 22, 2009, were entered into between Navistar International Corporation and each of JPMorgan Chase Bank, National Association, Credit Suisse International, Deutsche Bank AG and Bank of America, N.A. in connection with certain convertible note hedge transactions. Copies of these agreements were filed as Exhibit 10.1(a) - 10.1(h) and 10.2(a) - 10.2(h) to Current Report on Form 8-K dated and filed October 28, 2009. Commission File No. 001-09618. On October 28, 2009, Navistar International Corporation entered into additional (1) Base Call Option Transaction Confirmation, (2) Side Letter Agreement to the Base Call Option Transaction Confirmation, (3) Base Warrants Confirmation and (4) Side Letter Agreement to Base Warrants Confirmation with Credit Suisse International in respect of the issuance of an additional $20,000,000 of convertible notes. Navistar International Corporation has not filed these additional agreements in reliance upon Instruction 2 to Item 601 of Regulation S-K in that each is substantially identical in all material respects to those agreements previously filed. | ||
*10.65 | Navistar International Corporation 2004 Performance Incentive Plan, Amended and Restated as of April 19, 2010 (marked to indicate all changes from the December 15, 2009 version). Filed as Exhibit 10.109 to Quarterly Report on Form 10-Q dated June 8, 2010 and filed June 9, 2010. Commission File No. 001-09618. | ||
*10.66 | Form of Amended and Restated CEO Executive Severance Agreement dated January 1, 2010. Filed as Exhibit 10.9 to Form 8-K dated and filed December 18, 2009. Commission File No. 001-09618. | ||
*10.67 | Form of Amended and Restated Executive Severance Agreement with all executive officers other than the CEO dated January 1, 2010. Filed as Exhibit 10.10 to Form 8-K dated and filed December 18, 2009. Commission File No. 001-09618. | ||
10.68 | Second Amended and Restated Credit Agreement, dated as of December 2, 2011, by and among Navistar Financial Corporation, a Delaware corporation, and Navistar Financial, S.A. de C.V., Sociedad Financiera De Objeto Multiple, Entidad No Regulada, a Mexican corporation, as borrowers, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, and Citibank, N.A., as documentation agent. Filed as Exhibit 10.1 to Form 8-K dated and filed December 7, 2011. Commission File No. 001-09618. | ||
10.69 | Third Amended and Restated Parents' Side Agreement, dated as of December 2, 2011, by and between Navistar International Corporation, a Delaware corporation, and Navistar, Inc. (formerly known as International Truck and Engine Corporation), a Delaware corporation, for the benefit of the lenders from time to time party to the Second Amended and Restated Credit Agreement. Filed as Exhibit 10.3 to Form 8-K dated and filed December 7, 2011. Commission File No. 001-09618. | ||
10.70 | Third Amended and Restated Parent Guarantee, dated as of December 2, 2011, by Navistar International Corporation, a Delaware corporation, in favor of JPMorgan Chase Bank, N.A., as administrative agent for the lenders party to the Second Amended and Restated Credit Agreement. Filed as Exhibit 10.2 to Form 8-K dated and filed December 7, 2011. Commission File No. 001-09618. | ||
10.71 | Amended and Restated Security, Pledge and Trust Agreement dated as of July 1, 2005, between Navistar Financial Corporation and Deutsche Bank Trust Company Americas, as Trustee, pursuant to the terms of the Credit Agreement. Filed as Exhibit 10.02 to Navistar Financial Corporation's Form 8-K dated and filed July 1, 2005. Commission File No. 001-04146. | ||
10.72 | First Amendment, dated as of December 16, 2009, to the Amended and Restated Security, Pledge and Trust Agreement, dated as of July 1, 2005, between Navistar Financial Corporation, a Delaware corporation, and Deutsche Bank Trust Company Americas, a corporation duly organized and existing under the laws of the State of New York, acting individually and as trustee for the holders of the secured obligations under the Amended and Restated Credit Agreement. Filed as Exhibit 10.4 to Navistar Financial Corporation's Form 8-K dated and filed December 18, 2009. Commission File No. 001-04146. | ||
10.73 | Second Amendment, dated as of December 2, 2011, to the Amended and Restated Security, Pledge and Trust Agreement, dated as of July 1, 2005, between Navistar Financial Corporation, a Delaware corporation, and Deutsche Bank Trust Company Americas, a corporation duly organized and existing under the laws of the State of New York, acting individually and as trustee for the holders of the secured obligations under the Second Amended and Restated Credit Agreement. Filed as Exhibit 10.4 to Form 8-K dated and filed December 7, 2011. Commission File No. 001-09618. | ||
10.74 | Amended and Restated Intercreditor Agreement, dated as of December 2, 2011, by and among Navistar Financial Corporation, a Delaware corporation, Wells Fargo Equipment Finance, Inc., a Minnesota corporation, Deutsche Bank Trust Company Americas, a corporation duly organized and existing under the laws of the State of New York, acting individually and as trustee for the holders of the secured obligations under the Second Amended and Restated Credit Agreement, and JPMorgan Chase Bank, N.A., as administrative agent for the lenders party to the Second Amended and Restated Credit Agreement. Filed as Exhibit 10.5 to Form 8-K dated and filed December 7, 2011. Commission File No. 001-09618. | ||
*10.75 | Compensation Committee and Board of Directors approval of 2010 long term incentive equity grant awards to non-employee directors and named executive officers. Filed as Exhibit 10.104 to Form 10-K dated and filed December 21, 2009. Commission File No. 001-09618. | ||
*10.76 | Form of Cash Settled Restricted Stock Unit Award Notice and Agreement. Filed as Exhibit 10.106 to Quarterly Report on Form 10-Q dated and filed March 9, 2010. Commission File No. 001-09618. | ||
*10.77 | Nominating and Governance Committee and Board of Directors approval of changes to non-employee director compensation. Filed as Exhibit 10.112 to Quarterly Report on Form 10-Q dated September 7, 2010 and filed September 8, 2010. Commission File No. 001-09618. | ||
*10.78 | Nominating and Governance Committee and Board of Directors approval of changes to non-employee director compensation. Filed as Exhibit 10.81 to Quarterly Report on Form 10-Q dated and filed September 7, 2011. Commission File No. 001-09618. | ||
10.79 | Loan Agreement for the IFA Bonds dated as of October 1, 2010 between Navistar International Corporation and the Illinois Finance Authority (“IFA”) (including as an exhibit thereto, a copy of the Indenture relating to the IFA Bonds dated October 1, 2010 between the IFA and Citibank, N.A., as the Trustee, in order to provide all of the defined terms and other applicable provisions used in the Loan Agreement that are otherwise contained in the Indenture). Filed as Exhibit 10.1(a) to Form 8-K dated and filed October 27, 2010. Commission File No. 001-09618. | ||
10.80 | Loan Agreement for the Cook County Bonds dated as of October 1, 2010 by and between Navistar International Corporation and The County of Cook, Illinois (including as an exhibit thereto a copy of the Indenture relating to the Cook County Bonds dated October 1, 2010 by and between The County of Cook, Illinois and Citibank, N.A., as the Trustee, in order to provide all of the defined terms and other applicable provisions used in the Loan Agreement that are otherwise contained in the Indenture). Filed as Exhibit 10.1(b) to Form 8-K dated and filed October 27, 2010. Commission File No. 001-09618. | ||
10.81 | Bond Guarantee in respect of the IFA Bonds dated as of October 1, 2010 from Navistar, Inc. to Citibank, N.A., as the Trustee. Filed as Exhibit 10.2(a) to Form 8-K dated and filed October 27, 2010. Commission File No. 001-09618. | ||
10.82 | Bond Guarantee in respect of the Cook County Bonds dated as of October 1, 2010 from Navistar, Inc. to Citibank, N.A., as the Trustee. Filed as Exhibit 10.2(b) to Form 8-K dated and filed October 27, 2010. Commission File No. 001-09618. | ||
10.83 | Definitive Loan Agreement dated October 18, 2011, Relating to Our Five-Year Senior Inventory Secured, Asset-Based Revolving Credit Facility. Filed as Exhibit 10.1 to Form 8-K/A dated and filed October 26, 2011. Commission File No. 001-09618. | ||
10.84 | Agreement, dated November 14, 2011, by and among Navistar International Corporation, Icahn Partners LP, Icahn Partners Master Fund LP, Icahn Partners Master Fund II L.P., Icahn Partners Master Fund III L.P., High River Limited Partnership, Carl C. Icahn and certain other entities signatory thereto. Filed as Exhibit 10.1 to Form 8-K dated and filed November 15, 2011. Commission File No. 001-09618. | ||
*10.85 | Annual Incentive Award Plan Criteria for fiscal year 2011 for named executive officers. Filed as Exhibit 10.1 to Current Report on Form 8-K dated and filed December 16, 2010. Commission File No. 001-09618. | ||
*10.86 | Fiscal Year 2011 Long-Term Equity Grant award description to non-employee directors and named executive officers. Filed as Exhibit 10.2 to Current Report on Form 8-K dated and filed on December 16, 2010. Commission File No. 001-09618. | ||
*10.87 | Form of Cash Settled Performance-Based Stock Unit Award Notice and Agreement. Filed as Exhibit 10.3 to Current Report on Form 8-K dated and filed December 16, 2010. Commission File No. 001-09618. | ||
*10.88 | Annual Incentive Award Plan Criteria for fiscal year 2012 for named executive officers. Filed as Exhibit 10.1 to Current Report on Form 8-K dated and filed December 19, 2011. Commission File No. 001-09618. | ||
*10.89 | Non-Employee Director Stock Option Grants. Filed as Exhibit 10.2 to Current Report on Form 8-K dated and filed on December 19, 2011. Commission File No. 001-09618. |
* | Indicates a management contract or compensatory plan or arrangement required to be filed or incorporated by reference as an exhibit to this report. |
2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
(in millions) | |||||||||||||||||||
Income (loss) before income tax benefit (expense)(A) | $ | 388 | $ | 340 | $ | 313 | $ | 120 | $ | (147 | ) | ||||||||
Less: Net income attributable to non-controlling interests | (55 | ) | (44 | ) | (25 | ) | — | — | |||||||||||
Dividends from non-consolidated affiliates | 4 | 5 | 59 | 85 | 111 | ||||||||||||||
Interest expense(B) | 203 | 215 | 235 | 456 | 493 | ||||||||||||||
Debt amortization expense | 44 | 38 | 16 | 13 | 9 | ||||||||||||||
Interest portion of rent expense(C) | 18 | 19 | 18 | 17 | 17 | ||||||||||||||
Total earnings | 602 | 573 | 616 | 691 | 483 | ||||||||||||||
Capitalized interest | 18 | 4 | 1 | 5 | 7 | ||||||||||||||
Interest expense(B) | 221 | 234 | 253 | 473 | 510 | ||||||||||||||
Debt amortization expense | 44 | 38 | 16 | 13 | 9 | ||||||||||||||
Total fixed charges | 283 | 276 | 270 | 491 | 526 | ||||||||||||||
Ratio of earnings to fixed charges | 2.13 | 2.08 | 2.28 | 1.41 | — | ||||||||||||||
Earnings shortfall | — | — | — | — | (43 | ) |
(B) | Excludes interest expense on income tax contingencies. |
(C) | Represents an estimated amount of rental expense (33%) that is deemed to be representative of the interest factor. |
STATE OR COUNTRY IN WHICH SUBSIDIARY ORGANIZED | |
Subsidiaries that are 100% owned: | |
Navistar, Inc. | Delaware |
International of Mexico Holding Corporation | Delaware |
Subsidiaries that are 100% owned by Navistar, Inc.: | |
Navistar Canada, Inc. | Canada |
Navistar Financial Corporation | Delaware |
IC Bus, LLC | Arkansas |
SST Truck Company, LLC | Delaware |
Navistar Defense, LLC | Delaware |
Subsidiaries that are 100% owned by International of Mexico Holding Corporation: | |
International Truck and Engine Corporation Cayman Islands Holding Company | Cayman Islands |
Navistar Mexico, S. de R.L. de C.V. (f/k/a Camiones y Motores International de Mexico, S.A. de C.V.) | Mexico |
Subsidiaries that are 100% owned by Navistar Canada, Inc.: | |
International Industria Automotiva da America do Sul Ltda. (merged with MWM International Industria De Motores Da America Do Sul Ltda. effective 1/1/2011) | Brazil |
Subsidiaries less than 100% owned by Navistar, Inc., but considered to be a significant subsidiary: | |
Blue Diamond Parts LLC | Delaware |
Signature | Title | Date | ||
/s/ DANIEL C. USTIAN | Chairman, President and Chief Executive Officer and Director (Principal Executive Officer) | December 20, 2011 | ||
Daniel C. Ustian | ||||
/s/ ANDREW J. CEDEROTH | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | December 20, 2011 | ||
Andrew J. Cederoth | ||||
/s/ RICHARD C. TARAPCHAK | Vice President and Controller (Principal Accounting Officer) | December 20, 2011 | ||
Richard Tarapchak | ||||
/s/ EUGENIO CLARIOND | Director | December 20, 2011 | ||
Eugenio Clariond | ||||
/s/ JOHN D. CORRENTI | Director | December 20, 2011 | ||
John D. Correnti | ||||
/s/ DIANE H. GULYAS | Director | December 20, 2011 | ||
Diane H. Gulyas | ||||
/s/ MICHAEL N. HAMMES | Director | December 20, 2011 | ||
Michael N. Hammes | ||||
/s/ DAVID D. HARRISON | Director | December 20, 2011 | ||
David D. Harrison | ||||
/s/ JAMES H. KEYES | Director | December 20, 2011 | ||
James H. Keyes | ||||
/s/ STEVEN J. KLINGER | Director | December 20, 2011 | ||
Steven J. Klinger | ||||
/s/ STANLEY A. MCCHRYSTAL | Director | December 20, 2011 | ||
Stanley A. McChrystal | ||||
/s/ DENNIS D. WILLIAMS | Director | December 20, 2011 | ||
Dennis D. Williams |
1. | I have reviewed this annual report on Form 10-K of Navistar International Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ DANIEL C. USTIAN |
Daniel C. Ustian Chairman, President and Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this annual report on Form 10-K of Navistar International Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ ANDREW J. CEDEROTH |
Andrew J. Cederoth Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ DANIEL C. USTIAN |
Daniel C. Ustian Chairman, President and Chief Executive Officer (Principal Executive Officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ ANDREW J. CEDEROTH |
Andrew J. Cederoth Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
For the Year Ended Ended October 31, 2011 | ||||||||||||||||
Manufacturing Operations | Financial Services Operations | Adjustments | Consolidated Statement of Operations | |||||||||||||
(in millions) | ||||||||||||||||
Sales of manufactured products | $ | 13,758 | $ | — | $ | — | $ | 13,758 | ||||||||
Finance revenues | — | 290 | (90 | ) | 200 | |||||||||||
Sales and revenues, net | 13,758 | 290 | (90 | ) | 13,958 | |||||||||||
Costs of products sold | 11,262 | — | — | 11,262 | ||||||||||||
Restructuring charges | 91 | 1 | — | 92 | ||||||||||||
Impairment of property and equipment and intangible assets | 64 | — | — | 64 | ||||||||||||
Selling, general and administrative expenses | 1,360 | 78 | (4 | ) | 1,434 | |||||||||||
Engineering and product development costs | 532 | — | — | 532 | ||||||||||||
Interest expense | 148 | 109 | (10 | ) | 247 | |||||||||||
Other expenses (income), net | 38 | (26 | ) | (76 | ) | (64 | ) | |||||||||
Total costs and expenses | 13,495 | 162 | (90 | ) | 13,567 | |||||||||||
Equity in loss of non-consolidated affiliates | (71 | ) | — | — | (71 | ) | ||||||||||
Income before income taxes and equity income from financial services operations | 192 | 128 | — | 320 | ||||||||||||
Equity income from financial services operations | 80 | — | (80 | ) | — | |||||||||||
Income before income taxes | 272 | 128 | (80 | ) | 320 | |||||||||||
Income tax benefit (expense) | 1,506 | (48 | ) | — | 1,458 | |||||||||||
Net income | 1,778 | 80 | (80 | ) | 1,778 | |||||||||||
Less: Income attributable to non-controlling interests | 55 | — | — | 55 | ||||||||||||
Net income attributable to Navistar International Corporation | $ | 1,723 | $ | 80 | $ | (80 | ) | $ | 1,723 |
Condensed Statement of Revenues and Expenses Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis) | ||||||||||||||||
For the Year Ended October 31, 2010 (Revised)(A) | ||||||||||||||||
Manufacturing Operations | Financial Services Operations | Adjustments | Consolidated Statement of Operations | |||||||||||||
(in millions) | ||||||||||||||||
Sales of manufactured products | $ | 11,926 | $ | — | $ | — | $ | 11,926 | ||||||||
Finance revenues | — | 309 | (90 | ) | 219 | |||||||||||
Sales and revenues, net | 11,926 | 309 | (90 | ) | 12,145 | |||||||||||
Costs of products sold | 9,741 | — | — | 9,741 | ||||||||||||
Restructuring charges (benefit) | (19 | ) | 4 | — | (15 | ) | ||||||||||
Impairment of property and equipment and intangible assets | — | — | — | — | ||||||||||||
Selling, general and administrative expenses | 1,293 | 119 | (6 | ) | 1,406 | |||||||||||
Engineering and product development costs | 464 | — | — | 464 | ||||||||||||
Interest expense | 154 | 113 | (14 | ) | 253 | |||||||||||
Other expenses (income), net | 48 | (22 | ) | (70 | ) | (44 | ) | |||||||||
Total costs and expenses | 11,681 | 214 | (90 | ) | 11,805 | |||||||||||
Equity in loss of non-consolidated affiliates | (50 | ) | — | — | (50 | ) | ||||||||||
Income before income taxes and equity income from financial services operations | 195 | 95 | — | 290 | ||||||||||||
Equity income from financial services operations | 64 | — | (64 | ) | — | |||||||||||
Income before income taxes | 259 | 95 | (64 | ) | 290 | |||||||||||
Income tax benefit (expense) | 8 | (31 | ) | — | (23 | ) | ||||||||||
Net income | 267 | 64 | (64 | ) | 267 | |||||||||||
Less: Income attributable to non-controlling interests | 44 | — | — | 44 | ||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | 223 | $ | 64 | $ | (64 | ) | $ | 223 |
(A) | Effective with the fourth quarter of 2011, the Company presents manufacturing operations with financial services operations on an after-tax equity basis. Previously, financial services was presented on a pre-tax equity basis. Prior year amounts have been reclassified to conform to the 2011 presentation. |
Condensed Statement of Revenues and Expenses Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis) | ||||||||||||||||
For the Year Ended October 31, 2009 (Revised)(A) | ||||||||||||||||
Manufacturing Operations | Financial Services Operations | Adjustments | Consolidated Statement of Operations | |||||||||||||
(in millions) | ||||||||||||||||
Sales of manufactured products | $ | 11,300 | $ | — | $ | — | $ | 11,300 | ||||||||
Finance revenues | — | 348 | (79 | ) | 269 | |||||||||||
Sales and revenues, net | 11,300 | 348 | (79 | ) | 11,569 | |||||||||||
Costs of products sold | 9,366 | — | — | 9,366 | ||||||||||||
Restructuring charges | 59 | — | — | 59 | ||||||||||||
Impairment of property and equipment | 31 | — | — | 31 | ||||||||||||
Selling, general and administrative expenses | 1,218 | 130 | (4 | ) | 1,344 | |||||||||||
Engineering and product development costs | 433 | — | — | 433 | ||||||||||||
Interest expense | 99 | 162 | (10 | ) | 251 | |||||||||||
Other expenses (income), net | (179 | ) | 16 | (65 | ) | (228 | ) | |||||||||
Total costs and expenses | 11,027 | 308 | (79 | ) | 11,256 | |||||||||||
Equity in income of non-consolidated affiliates | 46 | — | — | 46 | ||||||||||||
Income before income taxes, extraordinary gain and equity income from financial services operations | 319 | 40 | — | 359 | ||||||||||||
Equity income from financial services operations | 25 | — | (25 | ) | — | |||||||||||
Income before income taxes and extraordinary gain | 344 | 40 | (25 | ) | 359 | |||||||||||
Income tax benefit (expense) | (22 | ) | (15 | ) | — | (37 | ) | |||||||||
Income before extraordinary gain | 322 | 25 | (25 | ) | 322 | |||||||||||
Extraordinary gain, net of tax | 23 | — | — | 23 | ||||||||||||
Net income | 345 | 25 | (25 | ) | 345 | |||||||||||
Less: Income attributable to non-controlling interests | 25 | — | — | 25 | ||||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | 320 | $ | 25 | $ | (25 | ) | $ | 320 |
(A) | Effective with the fourth quarter of 2011, the Company presents manufacturing operations with financial services operations on an after-tax equity basis. Previously, financial services was presented on a pre-tax equity basis. Prior year amounts have been reclassified to conform to the 2011 presentation. |
Condensed Statements of Assets, Liabilities, and Stockholders' Deficit Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis) | ||||||||||||||||
As of October 31, 2011 | ||||||||||||||||
Manufacturing Operations | Financial Services Operations | Adjustments | Consolidated Balance Sheet | |||||||||||||
(in millions) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 488 | $ | 51 | $ | — | $ | 539 | ||||||||
Marketable securities | 698 | 20 | — | 718 | ||||||||||||
Restricted cash and cash equivalents | 29 | 298 | — | 327 | ||||||||||||
Finance and other receivables, net | 1,341 | 3,007 | (94 | ) | 4,254 | |||||||||||
Inventories | 1,704 | 10 | — | 1,714 | ||||||||||||
Goodwill | 319 | — | — | 319 | ||||||||||||
Property and equipment, net | 1,433 | 137 | — | 1,570 | ||||||||||||
Investments in and advances to financial services operations | 564 | — | (564 | ) | — | |||||||||||
Investments in non-consolidated affiliates | 60 | — | — | 60 | ||||||||||||
Deferred taxes, net | 2,031 | 26 | — | 2,057 | ||||||||||||
Other assets | 705 | 28 | — | 733 | ||||||||||||
Total Assets | $ | 9,372 | $ | 3,577 | $ | (658 | ) | $ | 12,291 | |||||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||||||||||
Accounts payable | $ | 2,194 | $ | 22 | $ | (94 | ) | $ | 2,122 | |||||||
Debt | 1,980 | 2,876 | — | 4,856 | ||||||||||||
Postretirement benefits liabilities | 3,262 | 54 | — | 3,316 | ||||||||||||
Other liabilities | 1,908 | 61 | — | 1,969 | ||||||||||||
Total Liabilities | 9,344 | 3,013 | (94 | ) | 12,263 | |||||||||||
Redeemable equity securities | 5 | — | — | 5 | ||||||||||||
Stockholders' equity attributable to non-controlling interest | 50 | — | — | 50 | ||||||||||||
Stockholders' equity (deficit) attributable to controlling interest | (27 | ) | 564 | (564 | ) | (27 | ) | |||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 9,372 | $ | 3,577 | $ | (658 | ) | $ | 12,291 |
Condensed Statements of Assets, Liabilities, and Stockholders' Deficit Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis) | ||||||||||||||||
As of October 31, 2010 (Revised)(A) | ||||||||||||||||
Manufacturing Operations | Financial Services Operations | Adjustments | Consolidated Balance Sheet | |||||||||||||
(in millions) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 534 | $ | 51 | $ | — | $ | 585 | ||||||||
Marketable securities | 566 | 20 | — | 586 | ||||||||||||
Restricted cash and cash equivalents | 29 | 151 | — | 180 | ||||||||||||
Finance and other receivables, net | 1,030 | 3,084 | (168 | ) | 3,946 | |||||||||||
Inventories | 1,556 | 12 | — | 1,568 | ||||||||||||
Goodwill | 324 | — | — | 324 | ||||||||||||
Property and equipment, net | 1,329 | 113 | — | 1,442 | ||||||||||||
Investments in and advances to financial services operations | 502 | — | (502 | ) | — | |||||||||||
Investments in non-consolidated affiliates | 103 | — | — | 103 | ||||||||||||
Deferred taxes, net | 109 | 37 | — | 146 | ||||||||||||
Other assets | 821 | 29 | — | 850 | ||||||||||||
Total Assets | $ | 6,903 | $ | 3,497 | $ | (670 | ) | $ | 9,730 | |||||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||||||||||
Accounts payable | $ | 1,974 | $ | 21 | $ | (168 | ) | $ | 1,827 | |||||||
Debt | 1,985 | 2,885 | — | 4,870 | ||||||||||||
Postretirement benefits liabilities | 2,145 | 34 | — | 2,179 | ||||||||||||
Other liabilities | 1,723 | 55 | — | 1,778 | ||||||||||||
Total Liabilities | 7,827 | 2,995 | (168 | ) | 10,654 | |||||||||||
Redeemable equity securities | 8 | — | — | 8 | ||||||||||||
Stockholders' equity attributable to non-controlling interest | 49 | — | — | 49 | ||||||||||||
Stockholders' equity (deficit) attributable to controlling interest | (981 | ) | 502 | (502 | ) | (981 | ) | |||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 6,903 | $ | 3,497 | $ | (670 | ) | $ | 9,730 |
(A) | Effective with the fourth quarter of 2011, the Company presents manufacturing operations with financial services operations on an after-tax equity basis. Previously, financial services was presented on a pre-tax equity basis. Prior year amounts have been reclassified to conform to the 2011 presentation. |
Condensed Statement of Cash Activity Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis) | ||||||||||||||||
For the Year Ended October 31, 2011 | ||||||||||||||||
Manufacturing Operations | Financial Services Operations | Adjustments | Condensed Consolidated Statement of Cash Flows | |||||||||||||
(in millions) | ||||||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net income | $ | 1,778 | $ | 80 | $ | (80 | ) | $ | 1,778 | |||||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 286 | 4 | — | 290 | ||||||||||||
Depreciation of equipment leased to others | 14 | 24 | — | 38 | ||||||||||||
Amortization of debt issuance costs and discount | 28 | 16 | — | 44 | ||||||||||||
Deferred income taxes | (1,524 | ) | 11 | — | (1,513 | ) | ||||||||||
Impairment of property and equipment and intangible assets | 75 | — | — | 75 | ||||||||||||
Equity in loss of non-consolidated affiliates | 71 | — | — | 71 | ||||||||||||
Equity in income of financial services affiliates | (80 | ) | — | 80 | — | |||||||||||
Dividends from non-consolidated affiliates | 4 | — | — | 4 | ||||||||||||
Change in intercompany receivables and payables | (73 | ) | 73 | — | — | |||||||||||
Other, net | 101 | (8 | ) | — | 93 | |||||||||||
Net cash provided by (used in) operating activities | 680 | 200 | — | 880 | ||||||||||||
Cash flows from investing activities | ||||||||||||||||
Purchases of marketable securities | (1,562 | ) | — | — | (1,562 | ) | ||||||||||
Sales or maturities of marketable securities | 1,430 | — | — | 1,430 | ||||||||||||
Net change in restricted cash and cash equivalents | — | (147 | ) | — | (147 | ) | ||||||||||
Capital expenditures | (427 | ) | (2 | ) | — | (429 | ) | |||||||||
Purchase of equipment leased to others | (4 | ) | (67 | ) | — | (71 | ) | |||||||||
Acquisition of intangibles | (26 | ) | — | — | (26 | ) | ||||||||||
Business acquisitions | 12 | — | — | 12 | ||||||||||||
Other investing activities | (40 | ) | 10 | — | (30 | ) | ||||||||||
Net cash used in investing activities | (617 | ) | (206 | ) | — | (823 | ) | |||||||||
Net cash provided by (used in) financing activities | (106 | ) | 6 | — | (100 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | (3 | ) | — | — | (3 | ) | ||||||||||
Increase (decrease) in cash and cash equivalents | (46 | ) | — | — | (46 | ) | ||||||||||
Cash and cash equivalents at beginning of the year | 534 | 51 | — | 585 | ||||||||||||
Cash and cash equivalents at end of the year | $ | 488 | $ | 51 | $ | — | $ | 539 |
Condensed Statement of Cash Activity Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis) | ||||||||||||||||
For the Year Ended October 31, 2010 (Revised)(A) | ||||||||||||||||
Manufacturing Operations | Financial Services Operations | Adjustments | Condensed Consolidated Statement of Cash Flows | |||||||||||||
(in millions) | ||||||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net income | $ | 267 | $ | 64 | $ | (64 | ) | $ | 267 | |||||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 261 | 4 | — | 265 | ||||||||||||
Depreciation of equipment leased to others | 27 | 24 | — | 51 | ||||||||||||
Amortization of debt issuance costs and discount | 26 | 12 | — | 38 | ||||||||||||
Deferred income taxes | (3 | ) | 20 | — | 17 | |||||||||||
Equity in loss of non-consolidated affiliates | 50 | — | — | 50 | ||||||||||||
Equity in income of financial services affiliates | (64 | ) | — | 64 | — | |||||||||||
Dividends from non-consolidated affiliates | 5 | — | — | 5 | ||||||||||||
Change in intercompany receivables and payables | 11 | (11 | ) | — | — | |||||||||||
Other, net | (171 | ) | 585 | — | 414 | |||||||||||
Net cash provided by operating activities | 409 | 698 | — | 1,107 | ||||||||||||
Cash flows from investing activities | ||||||||||||||||
Purchases of marketable securities | (1,856 | ) | (20 | ) | — | (1,876 | ) | |||||||||
Sales or maturities of marketable securities | 1,290 | — | — | 1,290 | ||||||||||||
Net change in restricted cash and cash equivalents | 1 | 514 | — | 515 | ||||||||||||
Capital expenditures | (232 | ) | (2 | ) | — | (234 | ) | |||||||||
Purchase of equipment leased to others | (16 | ) | (29 | ) | — | (45 | ) | |||||||||
Acquisition of intangibles | (15 | ) | — | — | (15 | ) | ||||||||||
Business acquisitions | (2 | ) | — | — | (2 | ) | ||||||||||
Other investing activities | (86 | ) | 9 | 10 | (67 | ) | ||||||||||
Net cash provided by (used in) investing activities | (916 | ) | 472 | 10 | (434 | ) | ||||||||||
Net cash used in financing activities | (110 | ) | (1,180 | ) | (10 | ) | (1,300 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (1 | ) | 1 | — | — | |||||||||||
Decrease in cash and cash equivalents | (618 | ) | (9 | ) | — | (627 | ) | |||||||||
Cash and cash equivalents at beginning of the year | 1,152 | 60 | — | 1,212 | ||||||||||||
Cash and cash equivalents at end of the year | $ | 534 | $ | 51 | $ | — | $ | 585 |
(A) | Effective with the fourth quarter of 2011, the Company presents manufacturing operations with financial services operations on an after-tax equity basis. Previously, financial services was presented on a pre-tax equity basis. Prior year amounts have been reclassified to conform to the 2011 presentation. |
For the Year Ended October 31, 2009 (Revised)(A) | ||||||||||||||||
Manufacturing Operations | Financial Services Operations | Adjustments | Condensed Consolidated Statement of Cash Flows | |||||||||||||
(in millions) | ||||||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net income | $ | 345 | $ | 25 | $ | (25 | ) | $ | 345 | |||||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 284 | 4 | — | 288 | ||||||||||||
Depreciation of equipment leased to others | 35 | 21 | — | 56 | ||||||||||||
Amortization of debt issuance costs and discount | 6 | 10 | — | 16 | ||||||||||||
Deferred income taxes | (14 | ) | (4 | ) | — | (18 | ) | |||||||||
Impairment of property and equipment, goodwill and intangibles | 41 | — | — | 41 | ||||||||||||
Extraordinary gain on acquisition of subsidiary | (23 | ) | — | — | (23 | ) | ||||||||||
Gain on increased equity interest in subsidiary | (23 | ) | — | — | (23 | ) | ||||||||||
Equity in income of non-consolidated affiliates | (46 | ) | — | — | (46 | ) | ||||||||||
Equity in income of financial services affiliates | (25 | ) | — | 25 | — | |||||||||||
Dividends from non-consolidated affiliates | 59 | — | — | 59 | ||||||||||||
Change in intercompany receivables and payables | (82 | ) | 82 | — | — | |||||||||||
Other, net | (23 | ) | 566 | — | 543 | |||||||||||
Net cash provided by operating activities | 534 | 704 | — | 1,238 | ||||||||||||
Cash flows from investing activities | ||||||||||||||||
Purchases of marketable securities | (382 | ) | — | — | (382 | ) | ||||||||||
Sales or maturities of marketable securities | 384 | — | — | 384 | ||||||||||||
Net change in restricted cash and cash equivalents | (23 | ) | 94 | — | 71 | |||||||||||
Capital expenditures | (148 | ) | (3 | ) | — | (151 | ) | |||||||||
Purchase of equipment leased to others | (2 | ) | (44 | ) | — | (46 | ) | |||||||||
Business acquisitions, net of escrow receipt | (60 | ) | — | — | (60 | ) | ||||||||||
Other investing activities | (51 | ) | 3 | 20 | (28 | ) | ||||||||||
Net cash provided by (used in) investing activities | (282 | ) | 50 | 20 | (212 | ) | ||||||||||
Net cash provided by (used in) financing activities | 36 | (780 | ) | (20 | ) | (764 | ) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 9 | — | — | 9 | ||||||||||||
Increase (decrease) in cash and cash equivalents | 297 | (26 | ) | — | 271 | |||||||||||
Increase in cash and cash equivalents upon consolidation of BDP and BDT | 80 | — | — | 80 | ||||||||||||
Cash and cash equivalents at beginning of the year | 775 | 86 | — | 861 | ||||||||||||
Cash and cash equivalents at end of the year | $ | 1,152 | $ | 60 | $ | — | $ | 1,212 |
(A) | Effective with the fourth quarter of 2011, the Company presents manufacturing operations with financial services operations on an after-tax equity basis. Previously, financial services was presented on a pre-tax equity basis. Prior year amounts have been reclassified to conform to the 2011 presentation. |
Page | |
Balance Sheet as of May 31, 2009 | E-29 |
Statements of Operations for the seven months ended May 31, 2009 | E-30 |
Statements of Cash Flows for the seven months ended May 31, 2009 | E-31 |
Statement of Members' Equity for the seven months ended May 31, 2009 | E-32 |
Notes to Financial Statements | E-33 |
May 31, 2009 | |||
Assets | |||
Cash and cash equivalents | $ | 1,301,006 | |
Accounts receivable from Ford | 44,599,703 | ||
Accounts receivable from Navistar | 3,906,722 | ||
Prepaid assets | 73,062 | ||
Total assets | $ | 49,880,493 | |
Liabilities | |||
Accounts payable to Navistar | $ | 31,767,722 | |
Accounts payable to Ford | 11,926 | ||
Accrued income taxes | 2,709,006 | ||
Accrued liabilities | 2,754,468 | ||
Total liabilities | 37,243,122 | ||
Members' equity | |||
Retained earnings | 10,672,954 | ||
Member contributions | 1,964,417 | ||
Total Members' equity | 12,637,371 | ||
Total liabilities and Members' equity | $ | 49,880,493 |
Seven Months Ended May 31, 2009 | ||||
Revenues: | ||||
Net service revenue | $ | 117,069,819 | ||
Other income | 465,537 | |||
117,535,356 | ||||
Expenses: | ||||
Hired services | 4,065,246 | |||
Salary and employee benefits | 2,362,902 | |||
Distribution costs | 2,700,773 | |||
Marketing and promotional expenses | 3,207,393 | |||
Finance charges | 2,253,795 | |||
Systems expense | 160,058 | |||
Depreciation expense | — | |||
Other costs | 989,508 | |||
Total expenses | 15,739,675 | |||
Income before income taxes | 101,795,681 | |||
Income tax expense (benefit) | (620,674 | ) | ||
Net income | $ | 102,416,355 |
Seven Months Ended May 31, 2009 | ||||
Beginning cash and cash equivalents | $ | 5,869,876 | ||
Cash flows provided by operating activities: | ||||
Net income | 102,416,355 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation expense | — | |||
Changes in assets and liabilities: | ||||
Accounts receivable | 9,248,344 | |||
Prepaid assets | 99,219 | |||
Accounts payable | (9,166,410 | ) | ||
Accrued income taxes | 433,385 | |||
Accrued liabilities | (1,124,491 | ) | ||
Net cash provided by operating activities | 101,906,402 | |||
Cash flows used in financing activities: | ||||
Cash distributions to members | (106,475,272 | ) | ||
Net cash used in financing activities | (106,475,272 | ) | ||
Net decrease in cash and cash equivalents | (4,568,870 | ) | ||
Ending cash and cash equivalents | $ | 1,301,006 |
Member Contributions | Retained Earnings | Total | |||||||||
Balance at October 31, 2008 | $ | 1,964,417 | $ | 14,731,871 | $ | 16,696,288 | |||||
Net income | — | 102,416,355 | 102,416,355 | ||||||||
Dividends declared | — | (106,475,272 | ) | (106,475,272 | ) | ||||||
Balance at May 31, 2009 | $ | 1,964,417 | $ | 10,672,954 | $ | 12,637,371 |
Investments in Non-Consolidated Affiliates (Tables)
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Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments, Summarized Financial Information, Balance Sheet [Table Text Block] | The following table summarizes 100% of the combined assets, liabilities, and equity of our equity method affiliates as of October 31:
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Schedule of Equity Method Investment, Summarized Financial Information, Income Statement [Table Text Block] | The following table summarizes 100% of the combined results of operations of our equity method affiliates for the years ended October 31:
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Schedule of transactions with affiliates [Table Text Block] | Amounts due to and due from our affiliates arising from the sale and purchase of products and services as of October 31 are as follows:
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NC2 Global LLC [Member]
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Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized financial information for NC2 Global, LLC | Presented below is summarized information for NC2, which was considered a significant non-consolidated affiliate in 2011 and 2010, prior to increasing the equity interest in September 2011. Balance sheet information for NC2 was insignificant to our Consolidated Balance Sheets as of October 31, 2010.
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Blue Diamond Parts [Member]
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Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized financial information for NC2 Global, LLC | Presented below is summarized information for BDP, which was considered a significant non-consolidated affiliate in 2009, prior to increasing the equity interest in June 2009.
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Summary of Significant Accounting Policies Property and Equipment (Details)
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Buildings [Member]
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Useful Life, Minimum | 20 |
Useful Life, Maximum | 50 |
Leasehold improvements [Member]
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Property, Plant and Equipment [Line Items] | |
Useful Life, Minimum | 3 |
Useful Life, Maximum | 20 |
Machinery and equipment [Member]
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Property, Plant and Equipment [Line Items] | |
Useful Life, Minimum | 3 |
Useful Life, Maximum | 12 |
Furniture, fixtures, and equipment [Member]
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Property, Plant and Equipment [Line Items] | |
Useful Life, Minimum | 3 |
Useful Life, Maximum | 15 |
Equipment leased to others [Member]
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Property, Plant and Equipment [Line Items] | |
Useful Life, Minimum | 1 |
Useful Life, Maximum | 10 |
Stock-based compensation plans (Tables)
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following summarizes stock option activity for the years ended October 31:
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Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table summarizes information about stock options outstanding at October 31, 2011:
The following table summarizes information about stock options exercisable at October 31, 2011:
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of each option grant was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions:
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Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Restricted stock unit and cash-settled restricted stock unit activity for the year ended October 31, 2011 was as follows:
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Summary of Significant Accounting Policies Goodwill and Other Intangible Assets (Details)
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12 Months Ended |
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Customer base and relationships [Member] | Minimum [Member]
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Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 3 |
Customer base and relationships [Member] | Maximum [Member]
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Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 15 |
Trademarks [Member]
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Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 20 |
Supply agreements [Member]
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Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 3 |
Other [Member] | Minimum [Member]
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Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 3 |
Other [Member] | Maximum [Member]
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Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Useful Life | 18 |
Postretirement Benefits Fair Value of Pension and Other Post Retirement Benefit Plan Assets by Category (Details) (USD $)
In Millions, unless otherwise specified |
Oct. 31, 2011
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Oct. 31, 2010
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Oct. 31, 2009
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | $ 463 | $ 509 | $ 473 | ||||||
Totals | 462 | [1] | 508 | [1] | |||||
Pension [Member]
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Defined Benefit Plan, Fair Value of Plan Assets | 2,392 | 2,479 | 2,317 | ||||||
Totals | 2,437 | [2] | 2,542 | [2] | |||||
Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans [Member]
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Totals | 277 | [1] | 307 | [1] | |||||
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Totals | 1,237 | [2] | 1,377 | [2] | |||||
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Totals | 141 | [1] | 162 | [1] | |||||
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Totals | 1,025 | [2] | 885 | [2] | |||||
Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans [Member]
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Totals | 44 | [1] | 39 | [1] | |||||
Fair Value, Inputs, Level 3 [Member] | Pension [Member]
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Totals | 175 | [2] | 280 | [2] | |||||
Accounts Receivable [Member] | Fair Value, Inputs, Level 3 [Member]
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Defined Benefit Plan, Fair Value of Plan Assets | 6 | ||||||||
Accounts Receivable [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | [2] | 1 | ||||||
Accounts Receivable [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
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Defined Benefit Plan, Fair Value of Plan Assets | 8 | [2] | 6 | [2] | |||||
Cash and Cash Equivalents [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 24 | 43 | |||||||
Cash and Cash Equivalents [Member] | Pension [Member]
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Defined Benefit Plan, Fair Value of Plan Assets | 82 | 190 | |||||||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plan, Fair Value of Plan Assets | 24 | 43 | |||||||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
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Defined Benefit Plan, Fair Value of Plan Assets | 82 | 190 | |||||||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
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Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
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Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
US Large Cap [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 100 | 93 | |||||||
US Large Cap [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 492 | 482 | |||||||
US Large Cap [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plan, Fair Value of Plan Assets | 100 | 93 | |||||||
US Large Cap [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
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Defined Benefit Plan, Fair Value of Plan Assets | 492 | 482 | |||||||
US Large Cap [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
US Large Cap [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
US Large Cap [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
US Large Cap [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
US SMid Cap [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plan, Fair Value of Plan Assets | 59 | 46 | |||||||
US SMid Cap [Member] | Pension [Member]
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Defined Benefit Plan, Fair Value of Plan Assets | 242 | 193 | |||||||
US SMid Cap [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 59 | 46 | |||||||
US SMid Cap [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 242 | 193 | |||||||
US SMid Cap [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
US SMid Cap [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
US SMid Cap [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
US SMid Cap [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Canadian Equity [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 103 | 113 | |||||||
Canadian Equity [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 103 | 113 | |||||||
Canadian Equity [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Canadian Equity [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
International Equity [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plan, Fair Value of Plan Assets | 68 | 85 | |||||||
International Equity [Member] | Pension [Member]
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Defined Benefit Plan, Fair Value of Plan Assets | 179 | 202 | |||||||
International Equity [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 68 | 85 | |||||||
International Equity [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 179 | 202 | |||||||
International Equity [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
International Equity [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
International Equity [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
International Equity [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Emerging Markets Equity [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plan, Fair Value of Plan Assets | 0 | 28 | |||||||
Emerging Markets Equity [Member] | Pension [Member]
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Defined Benefit Plan, Fair Value of Plan Assets | 105 | 112 | |||||||
Emerging Markets Equity [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 28 | |||||||
Emerging Markets Equity [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 105 | 112 | |||||||
Emerging Markets Equity [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Emerging Markets Equity [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Emerging Markets Equity [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Emerging Markets Equity [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Common Stock [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 26 | 12 | |||||||
Common Stock [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 50 | |||||||
Common Stock [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 26 | 12 | |||||||
Common Stock [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 50 | |||||||
Common Stock [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Common Stock [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Corporate Bond Securities [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 77 | 88 | |||||||
Corporate Bond Securities [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 466 | 189 | |||||||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 77 | 88 | |||||||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 466 | 189 | |||||||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
US Treasury and Government [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 42 | 48 | |||||||
US Treasury and Government [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 225 | 309 | |||||||
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 42 | 48 | |||||||
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 225 | 309 | |||||||
US Treasury and Government [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
US Treasury and Government [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Asset-backed Securities [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 4 | 6 | |||||||
Asset-backed Securities [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 19 | 24 | |||||||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 4 | 6 | |||||||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 19 | 24 | |||||||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Collateralized Mortgage Backed Securities [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 4 | |||||||
Collateralized Mortgage Backed Securities [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 8 | 9 | |||||||
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 4 | |||||||
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 8 | 9 | |||||||
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Common And Preferred Stock [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 231 | 284 | |||||||
Common And Preferred Stock [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Common And Preferred Stock [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 231 | 284 | |||||||
Common And Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Commodities Investment [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 17 | 16 | |||||||
Commodities Investment [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 76 | 70 | |||||||
Commodities Investment [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Commodities Investment [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Commodities Investment [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 17 | 16 | |||||||
Commodities Investment [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 76 | 70 | |||||||
Commodities Investment [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Commodities Investment [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Hedge Funds [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 25 | 25 | |||||||
Hedge Funds [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 99 | 102 | |||||||
Hedge Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Hedge Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Hedge Funds [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Hedge Funds [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Hedge Funds [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 25 | 25 | 33 | ||||||
Hedge Funds [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 99 | 102 | 140 | ||||||
Private Equity Funds [Member] | Other Postretirement Benefit Plans [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 19 | 14 | |||||||
Private Equity Funds [Member] | Pension [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 75 | 57 | |||||||
Private Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Private Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Private Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Private Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Private Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 19 | 14 | 9 | ||||||
Private Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 75 | 57 | 35 | ||||||
Mutual Funds [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 34 | 32 | |||||||
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 34 | 32 | |||||||
Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Mutual Funds [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Real Estate [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 1 | |||||||
Real Estate [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Real Estate [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 1 | 1 | ||||||
Unallocated Insurance Contract [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 120 | |||||||
Unallocated Insurance Contract [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Unallocated Insurance Contract [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Unallocated Insurance Contract [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 120 | 110 | ||||||
Other Plan Assets [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 3 | |||||||
Other Plan Assets [Member] | Fair Value, Inputs, Level 1 [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 3 | ||||||||
Other Plan Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||||||
Other Plan Assets [Member] | Fair Value, Inputs, Level 3 [Member] | Pension [Member]
|
|||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 0 | |||||||
|
Stockholders' deficit (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2011
|
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive loss consists of the following as of October 31:
|
Acquisition and disposals of business (Tables) (Blue Diamond Parts [Member])
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2011
|
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Blue Diamond Parts [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | The unaudited pro forma financial information in the table below summarizes the combined results of operations of Navistar and BDP as though BDP had been combined as of the beginning of the periods presented. The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the periods, or that may result in the future.
______________________
|
Postretirement Benefits Changes In Level 3 Plan Assets (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2011
Pension [Member]
|
Oct. 31, 2010
Pension [Member]
|
Oct. 31, 2009
Pension [Member]
|
Oct. 31, 2011
Other Postretirement Benefit Plans [Member]
|
Oct. 31, 2010
Other Postretirement Benefit Plans [Member]
|
Oct. 31, 2009
Other Postretirement Benefit Plans [Member]
|
Oct. 31, 2011
Hedge Funds [Member]
Pension [Member]
|
Oct. 31, 2010
Hedge Funds [Member]
Pension [Member]
|
Oct. 31, 2011
Hedge Funds [Member]
Other Postretirement Benefit Plans [Member]
|
Oct. 31, 2010
Hedge Funds [Member]
Other Postretirement Benefit Plans [Member]
|
Oct. 31, 2011
Private Equity Funds [Member]
Pension [Member]
|
Oct. 31, 2010
Private Equity Funds [Member]
Pension [Member]
|
Oct. 31, 2011
Private Equity Funds [Member]
Other Postretirement Benefit Plans [Member]
|
Oct. 31, 2010
Private Equity Funds [Member]
Other Postretirement Benefit Plans [Member]
|
Oct. 31, 2011
Real Estate [Member]
Pension [Member]
|
Oct. 31, 2010
Real Estate [Member]
Pension [Member]
|
Oct. 31, 2011
Unallocated Insurance Contract [Member]
Pension [Member]
|
Oct. 31, 2010
Unallocated Insurance Contract [Member]
Pension [Member]
|
Oct. 31, 2011
Fair Value, Inputs, Level 3 [Member]
Hedge Funds [Member]
Pension [Member]
|
Oct. 31, 2010
Fair Value, Inputs, Level 3 [Member]
Hedge Funds [Member]
Pension [Member]
|
Oct. 31, 2011
Fair Value, Inputs, Level 3 [Member]
Hedge Funds [Member]
Other Postretirement Benefit Plans [Member]
|
Oct. 31, 2010
Fair Value, Inputs, Level 3 [Member]
Hedge Funds [Member]
Other Postretirement Benefit Plans [Member]
|
Oct. 31, 2011
Fair Value, Inputs, Level 3 [Member]
Private Equity Funds [Member]
Pension [Member]
|
Oct. 31, 2010
Fair Value, Inputs, Level 3 [Member]
Private Equity Funds [Member]
Pension [Member]
|
Oct. 31, 2011
Fair Value, Inputs, Level 3 [Member]
Private Equity Funds [Member]
Other Postretirement Benefit Plans [Member]
|
Oct. 31, 2010
Fair Value, Inputs, Level 3 [Member]
Private Equity Funds [Member]
Other Postretirement Benefit Plans [Member]
|
Oct. 31, 2011
Fair Value, Inputs, Level 3 [Member]
Real Estate [Member]
Pension [Member]
|
Oct. 31, 2010
Fair Value, Inputs, Level 3 [Member]
Real Estate [Member]
Pension [Member]
|
Oct. 31, 2011
Fair Value, Inputs, Level 3 [Member]
Unallocated Insurance Contract [Member]
Pension [Member]
|
Oct. 31, 2010
Fair Value, Inputs, Level 3 [Member]
Unallocated Insurance Contract [Member]
Pension [Member]
|
|
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ 2,392 | $ 2,479 | $ 2,317 | $ 463 | $ 509 | $ 473 | $ 99 | $ 102 | $ 25 | $ 25 | $ 75 | $ 57 | $ 19 | $ 14 | $ 1 | $ 1 | $ 0 | $ 120 | $ 102 | $ 140 | $ 25 | $ 33 | $ 57 | $ 35 | $ 14 | $ 9 | $ 1 | $ 1 | $ 120 | $ 110 |
Unrealized gains | (21) | 10 | (4) | 2 | 15 | 11 | 4 | 2 | 0 | 0 | 0 | 10 | ||||||||||||||||||
Realized gains (losses) | 19 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | ||||||||||||||||||||||
Purchases, issuances, and settlements | (1) | (49) | 4 | (10) | 3 | 11 | 1 | 3 | 0 | 0 | (121) | 0 | ||||||||||||||||||
Fair value of plan assets at end of year | $ 2,392 | $ 2,479 | $ 2,317 | $ 463 | $ 509 | $ 473 | $ 99 | $ 102 | $ 25 | $ 25 | $ 75 | $ 57 | $ 19 | $ 14 | $ 1 | $ 1 | $ 0 | $ 120 | $ 99 | $ 102 | $ 25 | $ 25 | $ 75 | $ 57 | $ 19 | $ 14 | $ 1 | $ 1 | $ 0 | $ 120 |
Debt Narrative (Details) (USD $)
|
12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 2 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2011
|
Oct. 31, 2010
|
Oct. 31, 2009
|
Oct. 31, 2011
Minimum [Member]
|
Oct. 31, 2011
Maximum [Member]
|
Oct. 31, 2011
Notes Payable to Banks [Member]
|
Oct. 31, 2009
Manufacturing Operations [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
|
Oct. 31, 2009
Manufacturing Operations [Member]
|
Oct. 31, 2010
Manufacturing Operations [Member]
|
Jun. 30, 2007
Manufacturing Operations [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Purchased Call Option [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Base Rate [Member]
Minimum [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Base Rate [Member]
Maximum [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
LIBOR [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
LIBOR [Member]
Minimum [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
LIBOR [Member]
Maximum [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Asset-based revolving senior credit facility due 2016 [Member]
|
Nov. 04, 2011
Manufacturing Operations [Member]
Asset Based Revolving Senior Credit Facility Due 2017 [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Various dealership Debt Instruments [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Financing Arrangements [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Capital Lease Obligations [Member]
|
Oct. 31, 2010
Manufacturing Operations [Member]
Capital Lease Obligations [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Convertible Debt [Member]
Days
|
Oct. 31, 2009
Manufacturing Operations [Member]
Convertible Debt [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Convertible Debt [Member]
Minimum [Member]
Days
|
Oct. 31, 2011
Manufacturing Operations [Member]
Convertible Debt [Member]
Maximum [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Convertible Subordinated Debt [Member]
|
Oct. 31, 2010
Manufacturing Operations [Member]
Convertible Subordinated Debt [Member]
|
Oct. 31, 2009
Manufacturing Operations [Member]
Term loan facility and synthetic revolving facility [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Notes Payable to Banks [Member]
|
Oct. 31, 2009
Manufacturing Operations [Member]
Notes Payable to Banks [Member]
|
Nov. 02, 2011
Manufacturing Operations [Member]
Notes Payable to Banks [Member]
|
Oct. 31, 2010
Manufacturing Operations [Member]
Notes Payable to Banks [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Notes Payable to Banks [Member]
Prior to November 1, 2012 [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Notes Payable to Banks [Member]
November 1, 2014 [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Notes Payable to Banks [Member]
November 1, 2015 [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Notes Payable to Banks [Member]
November 1, 2016 [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Notes Payable to Banks [Member]
November 1, 2017 [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Notes Payable to Banks [Member]
Maximum [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Illinois Finance Authority Recovery Zone Facility Revenue Bond [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
County of Cook Recovery Zone Facility Revenue Bonds [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Tax Exempt Bond [Member]
|
Oct. 31, 2011
Manufacturing Operations [Member]
Tax Exempt Bond [Member]
|
Oct. 31, 2010
Manufacturing Operations [Member]
Tax Exempt Bond [Member]
|
Oct. 31, 2011
Financial Services Operations [Member]
|
Oct. 31, 2010
Financial Services Operations [Member]
|
Jul. 31, 2010
Financial Services Operations [Member]
|
Oct. 31, 2011
Financial Services Operations [Member]
United States Dollars and Mexican Pesos [Member]
|
Oct. 31, 2010
Financial Services Operations [Member]
United States Dollars and Mexican Pesos [Member]
|
Oct. 31, 2011
Financial Services Operations [Member]
United States of America, Dollars
|
Oct. 31, 2010
Financial Services Operations [Member]
United States of America, Dollars
|
Oct. 31, 2011
Financial Services Operations [Member]
Mexico, Pesos
|
Oct. 31, 2010
Financial Services Operations [Member]
Mexico, Pesos
|
Dec. 31, 2011
Financial Services Operations [Member]
Bank Facility [Member]
|
Nov. 30, 2009
Financial Services Operations [Member]
Retail securization debt [Member]
|
Oct. 31, 2011
Financial Services Operations [Member]
Borrowings Secured By Operating and Finance Leases [Member]
|
Oct. 31, 2010
Financial Services Operations [Member]
Borrowings Secured By Operating and Finance Leases [Member]
|
Oct. 31, 2011
Financial Services Operations [Member]
Borrowings Secured By Operating and Finance Leases [Member]
Trac Funding Facility [Member]
|
Oct. 31, 2011
Financial Services Operations [Member]
Secured Debt [Member]
|
Oct. 31, 2010
Financial Services Operations [Member]
Secured Debt [Member]
|
Oct. 31, 2011
Navistar Financial Retail Receivables Corporation [Member]
Financial Services Operations [Member]
|
May 31, 2010
Navistar Financial Retail Receivables Corporation [Member]
Financial Services Operations [Member]
|
Oct. 31, 2011
Navistar Financial Corporation [Member]
Maximum [Member]
|
Oct. 31, 2011
Navistar Financial Corporation [Member]
Revolving Credit Agreement [Member]
LIBOR [Member]
|
Dec. 31, 2009
Navistar Financial Corporation [Member]
Financial Services Operations [Member]
|
Dec. 31, 2009
Navistar Financial Corporation [Member]
Financial Services Operations [Member]
Minimum [Member]
|
Dec. 31, 2009
Navistar Financial Corporation [Member]
Financial Services Operations [Member]
Maximum [Member]
|
Dec. 31, 2009
Navistar Financial Corporation [Member]
Financial Services Operations [Member]
Revolving Credit Agreement [Member]
|
Dec. 31, 2009
Navistar Financial Corporation [Member]
Financial Services Operations [Member]
Revolving loan [Member]
|
Dec. 31, 2009
Navistar Financial Corporation [Member]
Financial Services Operations [Member]
Mexican sub-revolver [Member]
|
Dec. 31, 2009
Navistar Financial Corporation [Member]
Financial Services Operations [Member]
Term Loan [Member]
|
Oct. 31, 2011
International Truck Leasing Corporation [Member]
Financial Services Operations [Member]
|
Oct. 31, 2010
International Truck Leasing Corporation [Member]
Financial Services Operations [Member]
|
Jul. 15, 2010
Truck Retail Installment Paper Corporation [Member]
Financial Services Operations [Member]
|
May 30, 2010
Truck Retail Installment Paper Corporation [Member]
Financial Services Operations [Member]
|
Oct. 31, 2011
Navistar Leasing Company [Member]
Financial Services Operations [Member]
|
Oct. 31, 2010
Navistar Leasing Company [Member]
Financial Services Operations [Member]
|
Oct. 31, 2011
Special Purpose Entity [Member]
Financial Services Operations [Member]
|
Oct. 31, 2010
Special Purpose Entity [Member]
Financial Services Operations [Member]
|
Oct. 31, 2011
NC2 Global, LLC [Member]
Manufacturing Operations [Member]
Promissory Note [Member]
Installments
|
Sep. 30, 2011
NC2 Global, LLC [Member]
Manufacturing Operations [Member]
Promissory Note [Member]
|
Oct. 31, 2010
NC2 Global, LLC [Member]
Manufacturing Operations [Member]
Promissory Note [Member]
|
Nov. 04, 2011
Borrowings Under Credit Facility [Member]
Manufacturing Operations [Member]
Asset Based Revolving Senior Credit Facility Due 2017 [Member]
|
Dec. 31, 2011
Refinancing of Debt [Member]
Financial Services Operations [Member]
Bank Facility [Member]
|
Dec. 31, 2011
Refinancing of Debt [Member]
Financial Services Operations [Member]
Term Loan [Member]
|
Dec. 31, 2011
Refinancing of Debt [Member]
Financial Services Operations [Member]
Revolving Line Of Credit [Member]
|
Dec. 31, 2011
Refinancing of Debt [Member]
Installment Payments Set One [Member]
Financial Services Operations [Member]
Term Loan [Member]
Installments
|
Dec. 31, 2011
Refinancing of Debt [Member]
Installment Payments Set Two [Member]
Financial Services Operations [Member]
Term Loan [Member]
Installments
|
|||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000,000 | $ 355,000,000 | $ 1,500,000,000 | $ 815,000,000 | $ 500,000,000 | $ 840,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit Facility Term | 5 years | 5 years | 5 years | 3 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum | 3.20% | 6.70% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Maximum | 4.00% | 8.60% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Amount Outstanding | 100,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 4,856,000,000 | 1,980,000,000 | [1] | 1,986,000,000 | 118,000,000 | 221,000,000 | 497,000,000 | 476,000,000 | 967,000,000 | 965,000,000 | 225,000,000 | 225,000,000 | 225,000,000 | 2,876,000,000 | [2] | 2,884,000,000 | 348,000,000 | 295,000,000 | 70,000,000 | 112,000,000 | 1,664,000,000 | 1,731,000,000 | 1,700,000,000 | 1,700,000,000 | 40,000,000 | 40,000,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, principal repayment term (years) | 4 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Number Of Installment Payments | 16 | 8 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | 1.00% | 1.75% | 1.50% | 2.00% | 4.25% | 275.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Face amount | 570,000,000 | 1 | 135,000,000 | 90,000,000 | 225,000,000 | 225,000,000 | 100,000,000 | 450,000,000 | 100,000,000 | 500,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated interest rate | 3.00% | 8.25% | 6.50% | 6.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percent of redemption price equal to principal amount | 100.00% | 108.25% | 104.125% | 102.75% | 101.375% | 100.00% | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Long-term Debt | 91,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Senior Long-term Debt | 947,000,000 | 290,000,000 | 919,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unamortized discount | 106,000,000 | 106,000,000 | [1] | 73,000,000 | 94,000,000 | 33,000,000 | 37,000,000 | 35,000,000 | 0 | [2] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Related Commitment Fees and Debt Issuance Costs | 16,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.96% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instruments, percent of aggregate principal amount redeemable | 35.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percent of early redemption price equal to principal amount | 103.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument early redemption amount | 100,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percent of principal for applicable premium | 1.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Convertible Debt | 553,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments of Debt Issuance Costs | 11,000,000 | 35,000,000 | 40,000,000 | 17,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 11,337,870 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative, Price Risk Option Strike Price | $ 50.27 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments for Derivative Instrument, Investing Activities | 125,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 60.14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price, per share of common stock (dollars per share) | $ 50.27 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Warrants | 87,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Threshold percentage of last reported sale price of common stock | 98.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument redemption period | 12 months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term loan | 365,000,000 | 340,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Lines of Credit | 500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pledged Assets, Other, Not Separately Reported on Statement of Financial Position | 1,900,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extinguishment of Debt, Amount | 67,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 4.90% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 6.80% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Present Value of Future Minimum Lease Payments, Sale Leaseback Transactions | 113,000,000 | 203,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term of financing arrangements | 8 months | 3 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Lease Obligations | 5,000,000 | 18,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of trading days | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Paper | 70,000,000 | 67,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment, Principal | 4,000,000 | 9,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateral coverage ratio | 120.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
collateral coverage ratio year 2 | 135.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateral coverage ration year 3 | 150.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Debt | 600,000,000 | 225,000,000 | 64,000,000 | 105,000,000 | 6,000,000 | 7,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Pledged as Collateral | 70,000,000 | 107,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Secured Debt | 79,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt, Weighted Average Interest Rate | 5.70% | 5.90% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Terms of conversion | (i) during any fiscal quarter commencing after January 31, 2010, if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price on each such trading day; (ii) during the five business day period after any five consecutive trading day period (the “Measurement Period”) in which the trading price per $1,000 principal amount of notes for each trading day of that Measurement Period was less than 98% of the product of the last reported sale price of the common stock and the applicable conversion rate on each such trading day; or (iii) upon the occurrence of specified corporate events, as more fully described in the Convertible Indenture. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of consecutive trading days | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, borrowings denominated in pesos percentage | 21.00% | 17.00% | 79.00% | 83.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Lease Covenants [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed charge coverage ratio | 125.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to subsidiary to meet convenant requirement | 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Early conversion price, percent | 130.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion ratio basis, amount | $ 1,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading day observation period length (days) | 40 | 40 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion price, percent | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion ratio, shares of common stock (in shares) | 19.8910 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Segment Reporting (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2011
segments
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Jul. 31, 2011
|
Apr. 30, 2011
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Jan. 31, 2011
|
Oct. 31, 2010
|
Jul. 31, 2010
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Apr. 30, 2010
|
Jan. 31, 2010
|
Oct. 31, 2011
segments
|
Oct. 31, 2010
|
Oct. 31, 2009
|
||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||||||||||
Number Of Segments | 4 | 4 | ||||||||||||||||||||||||||||||||||||
External sales and revenues, net | $ 13,958 | $ 12,145 | $ 11,569 | |||||||||||||||||||||||||||||||||||
Intersegment sales and revenues | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Sales and revenues, net | 4,323 | [1],[2] | 3,537 | [2] | 3,355 | 2,743 | 3,372 | [1],[3] | 3,221 | [1] | 2,743 | [1] | 2,809 | [1] | 13,958 | 12,145 | 11,569 | |||||||||||||||||||||
Net income attributable to NIC | 255 | [1],[2],[4] | 1,400 | [2],[4] | 74 | [4] | (6) | [4] | 44 | [1],[3],[4] | 117 | [1],[4] | 43 | [1],[4] | 19 | [1],[4] | 1,723 | 223 | 320 | |||||||||||||||||||
Income tax benefit (expense) | 1,458 | (23) | (37) | |||||||||||||||||||||||||||||||||||
Segment profit (loss) | 265 | 246 | 357 | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 328 | 316 | 344 | |||||||||||||||||||||||||||||||||||
Interest expense | 247 | 253 | 251 | |||||||||||||||||||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | (71) | (50) | 46 | |||||||||||||||||||||||||||||||||||
Segment assets | 12,291 | 9,730 | 12,291 | 9,730 | 10,028 | |||||||||||||||||||||||||||||||||
Capital expenditures | 429 | [5] | 234 | 151 | [5] | |||||||||||||||||||||||||||||||||
Truck [Member]
|
||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||||||||||
External sales and revenues, net | 9,690 | [6] | 8,205 | [6] | 7,294 | |||||||||||||||||||||||||||||||||
Intersegment sales and revenues | 48 | [6] | 2 | [6] | 3 | |||||||||||||||||||||||||||||||||
Sales and revenues, net | 9,738 | [6] | 8,207 | [6] | 7,297 | |||||||||||||||||||||||||||||||||
Net income attributable to NIC | 336 | [6] | 424 | [6] | 147 | |||||||||||||||||||||||||||||||||
Income tax benefit (expense) | 0 | [6] | 0 | [6] | 0 | |||||||||||||||||||||||||||||||||
Segment profit (loss) | 336 | [6] | 424 | [6] | 147 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 151 | [6] | 160 | [6] | 178 | |||||||||||||||||||||||||||||||||
Interest expense | 0 | [6] | 0 | [6] | 0 | |||||||||||||||||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | (73) | [6] | (51) | [6] | (5) | |||||||||||||||||||||||||||||||||
Segment assets | 2,771 | [6] | 2,457 | [6] | 2,771 | [6] | 2,457 | [6] | 2,660 | |||||||||||||||||||||||||||||
Capital expenditures | 83 | [5],[6] | 82 | [6] | 65 | [5] | ||||||||||||||||||||||||||||||||
Engine [Member]
|
||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||||||||||
External sales and revenues, net | 2,101 | [6],[7] | 2,031 | [6] | 2,031 | |||||||||||||||||||||||||||||||||
Intersegment sales and revenues | 1,690 | [6],[7] | 955 | [6] | 659 | |||||||||||||||||||||||||||||||||
Sales and revenues, net | 3,791 | [6],[7] | 2,986 | [6] | 2,690 | |||||||||||||||||||||||||||||||||
Net income attributable to NIC | 84 | [6],[7] | 51 | [6] | 253 | |||||||||||||||||||||||||||||||||
Income tax benefit (expense) | 0 | [6],[7] | 0 | [6] | 0 | |||||||||||||||||||||||||||||||||
Segment profit (loss) | 84 | [6],[7] | 51 | [6] | 253 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 120 | [6],[7] | 106 | [6] | 118 | |||||||||||||||||||||||||||||||||
Interest expense | 0 | [6],[7] | 0 | [6] | 0 | |||||||||||||||||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | (4) | [6],[7] | (2) | [6] | 45 | |||||||||||||||||||||||||||||||||
Segment assets | 1,849 | [6],[7] | 1,715 | [6] | 1,849 | [6],[7] | 1,715 | [6] | 1,517 | |||||||||||||||||||||||||||||
Capital expenditures | 172 | [5],[6],[7] | 116 | [6] | 56 | [5] | ||||||||||||||||||||||||||||||||
Gain On Extinguishment of Liability Related to Asset Previously Held Under Capital Lease | 10 | |||||||||||||||||||||||||||||||||||||
Parts [Member]
|
||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||||||||||
Number Of Regional Parts Distribution Centers | 11 | 11 | ||||||||||||||||||||||||||||||||||||
External sales and revenues, net | 1,967 | 1,690 | 1,975 | |||||||||||||||||||||||||||||||||||
Intersegment sales and revenues | 188 | 195 | 198 | |||||||||||||||||||||||||||||||||||
Sales and revenues, net | 2,155 | 1,885 | 2,173 | |||||||||||||||||||||||||||||||||||
Net income attributable to NIC | 287 | 266 | 436 | |||||||||||||||||||||||||||||||||||
Income tax benefit (expense) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Segment profit (loss) | 287 | 266 | 436 | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 9 | 7 | 7 | |||||||||||||||||||||||||||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 6 | 3 | 6 | |||||||||||||||||||||||||||||||||||
Segment assets | 700 | 811 | 700 | 811 | 664 | |||||||||||||||||||||||||||||||||
Capital expenditures | 19 | [5] | 8 | 13 | [5] | |||||||||||||||||||||||||||||||||
Financial Services [Member]
|
||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||||||||||
Financing Fees And Revenue Reimbursement | 11 | |||||||||||||||||||||||||||||||||||||
External sales and revenues, net | 200 | [8] | 219 | [8] | 269 | [8] | ||||||||||||||||||||||||||||||||
Intersegment sales and revenues | 91 | [8] | 90 | [8] | 79 | [8] | ||||||||||||||||||||||||||||||||
Sales and revenues, net | 291 | [8] | 309 | [8] | 348 | [8] | ||||||||||||||||||||||||||||||||
Net income attributable to NIC | 129 | [8] | 95 | [8] | 40 | [8] | ||||||||||||||||||||||||||||||||
Income tax benefit (expense) | 0 | [8] | 0 | [8] | 0 | [8] | ||||||||||||||||||||||||||||||||
Segment profit (loss) | 129 | [8] | 95 | [8] | 40 | [8] | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 28 | [8] | 28 | [8] | 25 | [8] | ||||||||||||||||||||||||||||||||
Interest expense | 109 | [8] | 113 | [8] | 161 | [8] | ||||||||||||||||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 0 | [8] | 0 | [8] | 0 | [8] | ||||||||||||||||||||||||||||||||
Segment assets | 3,580 | [8] | 3,497 | [8] | 3,580 | [8] | 3,497 | [8] | 4,136 | [8] | ||||||||||||||||||||||||||||
Capital expenditures | 2 | [5],[8] | 2 | [8] | 3 | [5],[8] | ||||||||||||||||||||||||||||||||
Interest revenues | 285 | 270 | 304 | |||||||||||||||||||||||||||||||||||
Corporate and Eliminations [Member]
|
||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||||||||||
External sales and revenues, net | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Intersegment sales and revenues | (2,017) | (1,242) | (939) | |||||||||||||||||||||||||||||||||||
Sales and revenues, net | (2,017) | (1,242) | (939) | |||||||||||||||||||||||||||||||||||
Net income attributable to NIC | 887 | (613) | (556) | |||||||||||||||||||||||||||||||||||
Income tax benefit (expense) | 1,458 | (23) | (37) | |||||||||||||||||||||||||||||||||||
Segment profit (loss) | (571) | (590) | (519) | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 20 | 15 | 16 | |||||||||||||||||||||||||||||||||||
Interest expense | 138 | 140 | 90 | |||||||||||||||||||||||||||||||||||
Equity in income (loss) of non-consolidated affiliates | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Segment assets | 3,391 | 1,250 | 3,391 | 1,250 | 1,051 | |||||||||||||||||||||||||||||||||
Capital expenditures | $ 153 | [5] | $ 26 | $ 14 | [5] | |||||||||||||||||||||||||||||||||
|
Restructuring (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2011
|
Oct. 31, 2010
|
Oct. 31, 2009
|
Jan. 31, 2009
Ford [Member]
|
Oct. 31, 2009
Continental Diesel Systems US LLC [Member]
|
Oct. 31, 2009
Engine [Member]
|
Oct. 31, 2011
Fort Wayne, Springfield, Chatham and Custom Products [Member]
|
Oct. 31, 2011
Fort Wayne And Springfield [Member]
Truck [Member]
|
Oct. 31, 2010
Location Fort Wayne [Member]
Truck [Member]
|
Jul. 31, 2011
Chatham [Member]
Truck [Member]
|
Oct. 31, 2009
Chatham [Member]
Truck [Member]
|
Oct. 31, 2011
Chatham [Member]
Truck [Member]
Minimum [Member]
|
Oct. 31, 2011
Chatham [Member]
Truck [Member]
Maximum [Member]
|
Jul. 31, 2011
Custom Products [Member]
Truck [Member]
|
Oct. 31, 2011
Custom Products [Member]
Truck [Member]
|
Oct. 31, 2011
Custom Products [Member]
Truck [Member]
Minimum [Member]
|
Oct. 31, 2011
Custom Products [Member]
Truck [Member]
Maximum [Member]
|
Jan. 31, 2010
IEP And ICC [Member]
Ford [Member]
|
Oct. 31, 2010
IEP And ICC [Member]
Ford [Member]
|
Jul. 31, 2010
Location ICC [Member]
Engine [Member]
|
Oct. 31, 2011
Facility Relocation, Expansion and Development [Member]
|
Oct. 31, 2011
Facility Relocation, Expansion and Development [Member]
Minimum [Member]
|
Oct. 31, 2011
Facility Relocation, Expansion and Development [Member]
Maximum [Member]
|
Oct. 31, 2011
Employee Termination Charges [Member]
Fort Wayne, Springfield, Chatham and Custom Products [Member]
|
Oct. 31, 2011
Employee Termination Charges [Member]
Fort Wayne And Springfield [Member]
Truck [Member]
|
Oct. 31, 2010
Employee Termination Charges [Member]
Location Fort Wayne [Member]
Truck [Member]
|
Oct. 31, 2011
Employee Termination Charges [Member]
Chatham [Member]
Truck [Member]
|
Oct. 31, 2011
Employee Termination Charges [Member]
Custom Products [Member]
Truck [Member]
|
Oct. 31, 2010
Employee Termination Charges [Member]
IEP And ICC [Member]
Ford [Member]
|
Oct. 31, 2009
Employee Termination Charges [Member]
IEP And ICC [Member]
Engine [Member]
|
Jan. 31, 2009
Employee Termination Charges [Member]
IEP And ICC [Member]
Engine [Member]
|
Oct. 31, 2011
Pension and Other Postretirement Contractual Termination Benefits [Member]
Fort Wayne And Springfield [Member]
Truck [Member]
|
Oct. 31, 2010
Pension and Other Postretirement Contractual Termination Benefits [Member]
Location Fort Wayne [Member]
Truck [Member]
|
Oct. 31, 2011
Pension and Other Postretirement Contractual Termination Benefits [Member]
Chatham [Member]
Truck [Member]
|
Oct. 31, 2011
Pension and Other Postretirement Contractual Termination Benefits [Member]
Custom Products [Member]
Truck [Member]
|
Jan. 31, 2009
Pension and Other Postretirement Contractual Termination Benefits [Member]
IEP And ICC [Member]
Engine [Member]
|
Jul. 31, 2010
Pension and Other Postretirement Contractual Termination Benefits [Member]
Location ICC [Member]
Engine [Member]
|
Oct. 31, 2011
Employee Relocation Costs [Member]
Fort Wayne, Springfield, Chatham and Custom Products [Member]
|
Oct. 31, 2011
Employee Relocation Costs [Member]
Fort Wayne And Springfield [Member]
Truck [Member]
|
Oct. 31, 2011
Facility Closing [Member]
Chatham [Member]
Truck [Member]
|
Oct. 31, 2011
Facility Closing [Member]
Custom Products [Member]
Truck [Member]
|
Jan. 31, 2009
Facility Closing [Member]
IEP And ICC [Member]
Engine [Member]
|
Oct. 31, 2009
Facility Closing [Member]
IEP And ICC [Member]
Engine [Member]
|
Oct. 31, 2011
Other Contractual Costs [Member]
Fort Wayne, Springfield, Chatham and Custom Products [Member]
|
Oct. 31, 2011
Other Contractual Costs [Member]
Chatham [Member]
Truck [Member]
|
Jan. 31, 2010
Other Contractual Costs [Member]
IEP And ICC [Member]
Ford [Member]
|
Oct. 31, 2010
Other Contractual Costs [Member]
IEP And ICC [Member]
Ford [Member]
|
Jan. 31, 2009
Other Contractual Costs [Member]
IEP And ICC [Member]
Engine [Member]
|
Jul. 31, 2009
Blue Diamond Parts [Member]
Engine [Member]
|
Jun. 01, 2009
Blue Diamond Parts [Member]
|
Jun. 01, 2009
Blue Diamond Truck [Member]
|
Oct. 31, 2009
Cost of Goods, Segment [Member]
Engine [Member]
|
Oct. 31, 2009
Other Income Expense Net [Member]
Engine [Member]
|
Oct. 31, 2009
Inventory Valuation Reserve [Member]
Engine [Member]
|
Oct. 31, 2009
Inventory Valuation Reserve [Member]
Cost of Goods, Segment [Member]
Engine [Member]
|
Oct. 31, 2009
Inventory Valuation Reserve [Member]
Other Income Expense Net [Member]
Engine [Member]
|
||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring charges (benefit) | $ 92 | $ (15) | $ 59 | $ 59 | $ 29 | $ 9 | $ (17) | $ 29 | $ 13 | $ 5 | $ 7 | $ 6 | $ 4 | $ 21 | $ 7 | $ 4 | $ 33 | $ 4 | $ 16 | $ (4) | $ 9 | $ 48 | $ 10 | $ 58 | $ 59 | $ 8 | $ (16) | $ 21 | |||||||||||||||||||||||||||||||||
Other related restructuring charges | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected restructuring and related charges | 30 | 70 | 10 | 20 | 70 | 90 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Length of payment period (years) | 2 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of Long-Lived Assets Held-for-use | 8 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of Intangible Assets (Excluding Goodwill) | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Legal Settlements | 200 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty liability reversed | 0 | [1] | 0 | [1] | 75 | [1] | 75 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 75.00% | 75.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Preexisting Relationship, Gain (Loss) Recognized | 23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation Allowances and Reserves, Charged to Cost and Expense | 105 | 81 | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty Recoveries | 29 | 29 | 3 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation Allowances and Reserves, Adjustments | 27 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments for Legal Settlements | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) Related to Litigation Settlement | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring liability, balance at beginning of period | 5 | 41 | 41 | 5 | 20 | 0 | 0 | 21 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Additions | 48 | 0 | 31 | 0 | 9 | 8 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | (14) | (17) | (5) | (12) | (9) | 0 | (5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments | 0 | (24) | (6) | 0 | (8) | 3 | 0 | 0 | (16) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring liability, balance at end of period | $ 39 | $ 0 | $ 31 | $ 0 | $ 0 | $ 8 | $ 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Postretirement Benefits Components of Net Periodic Benefit Expense (Income) and Other Amounts Recognized in Other Comprehensive Loss (Income) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Oct. 31, 2011
|
Jul. 31, 2011
|
Oct. 31, 2011
|
Oct. 31, 2010
|
Oct. 31, 2009
|
|
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Net postretirement benefits expense | $ 169 | $ 179 | $ 233 | ||
Defined Benefit Plan, Amounts Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) [Abstract] | |||||
Prior service cost (benefit) | 302 | ||||
Pension [Member]
|
|||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Service cost for benefits earned during the period | 17 | 18 | 15 | ||
Interest on obligations | 189 | 209 | 234 | ||
Amortization of net cumulative loss (gain) | 97 | 98 | 72 | ||
Amortization of prior service cost (benefit) | 1 | 1 | 1 | ||
Curtailments | 2 | 1 | 6 | ||
Contractual termination benefits | 3 | 35 | 38 | 1 | 9 |
Premiums on pension insurance | 6 | 7 | 6 | ||
Expected return on assets | 211 | 193 | 189 | ||
Net postretirement benefits expense | 139 | 142 | 154 | ||
Defined Benefit Plan, Amounts Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) [Abstract] | |||||
Actuarial net loss (gain) | 374 | 77 | 713 | ||
Amortization of cumulative gain (loss) | (97) | (98) | (72) | ||
Prior service cost (benefit) | 0 | 4 | 4 | ||
Amortization of prior service benefit (cost) | (1) | (1) | (1) | ||
Curtailments | (13) | (3) | 0 | ||
Currency translation | 4 | 4 | |||
Total recognized in other comprehensive loss (income) | 267 | (17) | 644 | ||
Total net postretirement benefits expense (income) and other comprehensive loss (income) | 406 | 125 | 798 | ||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |||||
Amortization of prior service cost (benefit) | 1 | ||||
Amortization of cumulative losses | 109 | ||||
Other Postretirement Benefit Plans, Defined Benefit [Member]
|
|||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Service cost for benefits earned during the period | 8 | 8 | 6 | ||
Interest on obligations | 56 | 81 | 117 | ||
Amortization of net cumulative loss (gain) | 4 | 8 | (2) | ||
Amortization of prior service cost (benefit) | (29) | (20) | (5) | ||
Curtailments | 11 | 2 | 0 | ||
Contractual termination benefits | 6 | (2) | 3 | ||
Retrospective payments to retirees | (15) | ||||
Premiums on pension insurance | 0 | 0 | 0 | ||
Expected return on assets | 41 | 40 | 40 | ||
Net postretirement benefits expense | 30 | 37 | 79 | ||
Defined Benefit Plan, Amounts Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) [Abstract] | |||||
Actuarial net loss (gain) | 566 | (127) | 180 | ||
Amortization of cumulative gain (loss) | (4) | (8) | 2 | ||
Prior service cost (benefit) | 302 | (341) | 0 | ||
Amortization of prior service benefit (cost) | 29 | 20 | 5 | ||
Curtailments | 0 | 0 | 0 | ||
Total recognized in other comprehensive loss (income) | 893 | (456) | 187 | ||
Total net postretirement benefits expense (income) and other comprehensive loss (income) | 923 | (419) | 266 | ||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |||||
Amortization of prior service cost (benefit) | (5) | ||||
Amortization of cumulative losses | $ 37 |
Financial Instruments and Commodity Contracts Income Statement Location (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Oct. 31, 2011
|
Oct. 31, 2010
|
Oct. 31, 2009
|
|
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized | $ 10 | $ 4 | $ (44) |
Interest Rate Swap [Member] | Interest Expense [Member]
|
|||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized | 0 | (5) | (44) |
Interest Rate Cap Purchased [Member] | Interest Expense [Member]
|
|||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized | 0 | (3) | 2 |
Interest Rate Cap Sold [Member] | Interest Expense [Member]
|
|||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized | 0 | 3 | (1) |
Cross Currency Swaps [Member] | Interest Expense [Member]
|
|||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized | (8) | 0 | 0 |
Foreign Currency Contract [Member] | Other Income, Net [Member]
|
|||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized | 4 | 8 | 5 |
Commodity Contract [Member] | Cost of Products Sold [Member] | Forward contract [Member]
|
|||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized | $ 14 | $ 1 | $ (6) |
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Oct. 31, 2011
|
Oct. 31, 2010
|
Oct. 31, 2009
|
|
Domestic and foreign components of Income before income tax and extraordinary gain: | |||
Domestic | $ 247 | $ 166 | $ 441 |
Foreign | 73 | 124 | (82) |
Income before income tax benefit (expense) and extraordinary gain | 320 | 290 | 359 |
Current: | |||
Federal | (3) | 30 | (3) |
State and local | 1 | (4) | (6) |
Foreign | (47) | (33) | (14) |
Total current expense | (49) | (7) | (23) |
Deferred: | |||
Federal | 1,423 | 0 | 0 |
State and local | 106 | 0 | 0 |
Foreign | (22) | (16) | (14) |
Total deferred benefit (expense) | 1,507 | (16) | (14) |
Total income tax benefit (expense) | 1,458 | (23) | (37) |
Reconciliation of statutory federal income tax expense to recorded income tax expense | |||
Statutory federal income tax expense | (112) | (101) | (126) |
State income taxes, net of federal benefit | (6) | (3) | (4) |
Alternative minimum taxes | 0 | 29 | (10) |
Credits and incentives | 27 | 2 | 8 |
Adjustments to valuation allowances | 1,499 | 56 | 105 |
Medicare subsidies | 0 | 6 | 11 |
Foreign operations | (19) | (11) | (13) |
Adjustments to uncertain tax positions | 42 | 5 | (1) |
Subpart F income | (1) | (17) | (1) |
Non-controlling interest adjustment | 19 | 16 | 9 |
Other | 9 | (5) | (15) |
Tax Adjustments, Settlements, and Unusual Provisions | 42 | ||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 527 | ||
Deferred tax assets attributable to: | |||
Employee benefits liabilities | 1,369 | 840 | |
Net operating loss (NOL) carry forwards | 273 | 306 | |
Product liability and warranty accruals | 262 | 232 | |
Research and development | 74 | 98 | |
Tax credit carry forwards | 208 | 115 | |
Other | 294 | 335 | |
Gross deferred tax assets | 2,480 | 1,926 | |
Less: Valuation allowances | (344) | (1,777) | |
Net deferred tax assets | 2,136 | 149 | |
Deferred tax liabilities attributable to: | |||
Goodwill and intangible assets | (107) | (104) | |
Other | (39) | (59) | |
Total deferred tax liabilities | (146) | (163) | |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 126 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 79 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 102 | ||
Valuation Allowance, Deferred Tax Asset, Change in Amount | 1,500 | ||
Estimated Adjustments To Additional Paid In Capital If Valuation Allowance Released | 4 | ||
Unrecognized Tax Benefits | 19 | 91 | |
Unrecognized Tax Benefits that Would Not Impact Effective Tax Rate | 4 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Liability for uncertain tax positions, beginning of period | 91 | ||
Increase as a result of positions taken in prior periods | 79 | ||
Decreases as a result of positions taken in prior periods | (150) | ||
Increase as a result of positions taken in the current period | 1 | ||
Settlements | (2) | ||
Liability for uncertain tax positions, end of period | 19 | 91 | |
Minimum [Member]
|
|||
Deferred tax liabilities attributable to: | |||
Net Operating Loss Carried Forward Period | 5 years | ||
Maximum [Member]
|
|||
Deferred tax liabilities attributable to: | |||
Net Operating Loss Carried Forward Period | 20 years | ||
Stock Option Tax Benefits [Member]
|
|||
Deferred tax assets attributable to: | |||
Net operating loss (NOL) carry forwards | 34 | ||
Domestic Country [Member]
|
|||
Reconciliation of statutory federal income tax expense to recorded income tax expense | |||
Adjustments to valuation allowances | $ 1,537 | ||
Domestic Country [Member] | Research [Member]
|
|||
Deferred tax liabilities attributable to: | |||
Tax Credits Carried Forward, Period | 20 years | ||
State and Local Jurisdiction [Member] | Research [Member]
|
|||
Deferred tax liabilities attributable to: | |||
Tax Credits Carried Forward, Period | 20 years |
Financial Instruments and Commodity Contracts Narrative (Details)
In Millions, unless otherwise specified |
12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2011
USD ($)
|
Oct. 31, 2010
USD ($)
|
Oct. 31, 2011
Purchased Call Option [Member]
Manufacturing Operations [Member]
USD ($)
|
Oct. 31, 2011
Foreign Exchange Contract [Member]
CAD
|
Oct. 31, 2011
Foreign Exchange Contract [Member]
EUR (€)
|
Oct. 31, 2010
Foreign Exchange Contract [Member]
CAD
|
Oct. 31, 2010
Foreign Exchange Contract [Member]
EUR (€)
|
Oct. 31, 2011
Commodity Contract [Member]
Steel Forward Contracts [Member]
USD ($)
|
Oct. 31, 2010
Commodity Contract [Member]
Steel Forward Contracts [Member]
USD ($)
|
Oct. 31, 2011
Commodity Contract [Member]
Natural Rubber Forward Contracts [Member]
USD ($)
|
Oct. 31, 2011
Commodity Contract [Member]
Diesel Fuel Forward Contracts [Member]
USD ($)
|
Oct. 31, 2010
Commodity Contract [Member]
Diesel Fuel Forward Contracts [Member]
USD ($)
|
Oct. 31, 2011
Commodity Contract [Member]
Lead Forward Contracts [Member]
USD ($)
|
Oct. 31, 2010
Commodity Contract [Member]
Lead Forward Contracts [Member]
USD ($)
|
Oct. 31, 2010
Interest Rate Contract [Member]
USD ($)
|
|
Derivative [Line Items] | |||||||||||||||
Payments for Derivative Instrument, Investing Activities | $ 125 | ||||||||||||||
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | |||||||||||||
Exposure to credit risk | 4 | 10 | |||||||||||||
Derivative, Notional Amount | 6 | € 54 | 24 | € 49 | $ 41 | $ 80 | $ 14 | $ 19 | $ 21 | $ 1 | $ 1 | $ 50 |
Postretirement Benefits Assumptions (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 5 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2011
|
Oct. 31, 2011
Pension [Member]
|
Jan. 31, 2009
Pension [Member]
|
Jan. 31, 2009
Pension [Member]
|
Oct. 31, 2010
Pension [Member]
|
Oct. 31, 2009
Pension [Member]
|
Oct. 31, 2011
Other Postretirement Benefit Plans, Defined Benefit [Member]
|
Mar. 31, 2010
Other Postretirement Benefit Plans, Defined Benefit [Member]
|
Mar. 31, 2010
Other Postretirement Benefit Plans, Defined Benefit [Member]
|
Oct. 31, 2010
Other Postretirement Benefit Plans, Defined Benefit [Member]
|
Oct. 31, 2009
Other Postretirement Benefit Plans, Defined Benefit [Member]
|
Oct. 31, 2009
Effect Of Remeasurement On Plan [Member]
Pension [Member]
|
|||||||||
Weighted Average Assumptions Used in Determining Benefit Obligation [Abstract] | ||||||||||||||||||||
Discount rate used to determine present value of benefit obligation at end of year | 4.20% | 4.80% | 4.20% | 4.60% | ||||||||||||||||
Expected rate of increase in future compensation levels | 3.50% | 3.50% | 0.00% | 0.00% | ||||||||||||||||
Weighted Average Assumptions Used in Determining Net Postretirement Benefits Expense [Abstract] | ||||||||||||||||||||
Discount rate | 4.80% | [1] | 6.50% | 8.30% | 5.40% | [1] | 7.60% | [1] | 4.60% | [1] | 5.60% | 5.50% | 5.60% | [1] | 8.40% | [1] | 7.60% | |||
Expected long-term rate of return on plan assets | 8.50% | 8.50% | 9.00% | 8.50% | 8.50% | 9.00% | ||||||||||||||
Expected rate of increase in future compensation levels | 3.50% | 3.50% | 3.50% | 0.00% | 0.00% | 0.00% | ||||||||||||||
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | ||||||||||||||||||||
Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 5 | |||||||||||||||||||
Effect of One Percentage Point Decrease on Service and Interest Cost Components | (8) | |||||||||||||||||||
Effect of One Percentage Point Increase on Postretirement Benefit Obligation | 192 | |||||||||||||||||||
Effect of One Percentage Point Decrease on Postretirement Benefit Obligation | $ (201) | |||||||||||||||||||
|
Debt (Details) (USD $)
In Millions, unless otherwise specified |
Oct. 31, 2011
|
Oct. 31, 2010
|
Oct. 31, 2011
Manufacturing [Member]
|
Oct. 31, 2010
Manufacturing [Member]
|
Oct. 31, 2011
Financial Services [Member]
|
Oct. 31, 2010
Financial Services [Member]
|
Oct. 31, 2011
Senior Notes [Member]
Manufacturing [Member]
|
Oct. 31, 2010
Senior Notes [Member]
Manufacturing [Member]
|
Oct. 31, 2009
Senior Notes [Member]
Manufacturing [Member]
|
Oct. 31, 2011
Senior Subordinated Convertible Notes [Member]
Manufacturing [Member]
|
Oct. 31, 2010
Senior Subordinated Convertible Notes [Member]
Manufacturing [Member]
|
Oct. 31, 2011
Debt Of Majority-Owned Dealerships [Member]
Manufacturing [Member]
|
Oct. 31, 2010
Debt Of Majority-Owned Dealerships [Member]
Manufacturing [Member]
|
Oct. 31, 2011
Financing Arrangements and Capital Lease Obligations [Member]
Manufacturing [Member]
|
Oct. 31, 2010
Financing Arrangements and Capital Lease Obligations [Member]
Manufacturing [Member]
|
Oct. 31, 2011
Other [Member]
Manufacturing [Member]
|
Oct. 31, 2010
Other [Member]
Manufacturing [Member]
|
Oct. 31, 2011
Asset-Backed Debt [Member]
Financial Services [Member]
|
Oct. 31, 2010
Asset-Backed Debt [Member]
Financial Services [Member]
|
Oct. 31, 2011
Tax Exempt Bond [Member]
Manufacturing [Member]
|
Oct. 31, 2010
Tax Exempt Bond [Member]
Manufacturing [Member]
|
Oct. 31, 2011
Bank Revolvers [Member]
Financial Services [Member]
|
Oct. 31, 2010
Bank Revolvers [Member]
Financial Services [Member]
|
Oct. 31, 2011
Commercial Paper [Member]
Financial Services [Member]
|
Oct. 31, 2010
Commercial Paper [Member]
Financial Services [Member]
|
Oct. 31, 2011
Borrowings Secured By Operating and Finance Leases [Member]
Financial Services [Member]
|
Oct. 31, 2010
Borrowings Secured By Operating and Finance Leases [Member]
Financial Services [Member]
|
Oct. 31, 2011
NC2 Global, LLC [Member]
Promissory Note [Member]
Manufacturing [Member]
|
Sep. 30, 2011
NC2 Global, LLC [Member]
Promissory Note [Member]
Manufacturing [Member]
|
Oct. 31, 2010
NC2 Global, LLC [Member]
Promissory Note [Member]
Manufacturing [Member]
|
||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||||||||||||||||||||||||||||||||
Long-term debt | $ 4,856 | $ 1,980 | [1] | $ 1,986 | $ 2,876 | [2] | $ 2,884 | $ 967 | $ 965 | $ 497 | $ 476 | $ 94 | $ 66 | $ 118 | $ 221 | $ 39 | $ 33 | $ 1,664 | $ 1,731 | $ 225 | $ 225 | $ 1,072 | $ 974 | $ 70 | $ 67 | $ 70 | $ 112 | $ 40 | $ 40 | $ 0 | ||||||
Stated interest rate | 8.25% | 3.00% | 6.50% | |||||||||||||||||||||||||||||||||
Unamortized discount | 106 | 106 | [1] | 0 | [2] | 33 | 35 | 37 | 73 | 94 | ||||||||||||||||||||||||||
Less: Current portion | (1,379) | (632) | 99 | 145 | 1,280 | 487 | ||||||||||||||||||||||||||||||
Net long-term debt | $ 3,477 | $ 4,238 | $ 1,881 | $ 1,841 | $ 1,596 | $ 2,397 | ||||||||||||||||||||||||||||||
|
Earnings Per Share Attributable to Navistar International Corporation
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 31, 2011
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share attributable to Navistar International Corporation | Earnings per share attributable to Navistar International Corporation The following table shows the information used in the calculation of our basic and diluted earnings per share attributable to Navistar International Corporation as of October 31:
The conversion rate on our Convertible Notes is 19.891 shares of common stock per $1,000 principal amount of Convertible Notes, equivalent to an initial conversion price of $50.27 per share of common stock. In connection with the sale of the Convertible Notes, we sold warrants to various counterparties to purchase shares of our common stock from us at an exercise price of $60.14 per share. The Convertible Notes and warrants are anti-dilutive when calculating diluted earnings per share when our average stock price is less than $50.27 and $60.14, respectively. We also purchased call options in connection with the sale of the Convertible Notes, covering 11.3 million shares at an exercise price of $50.27 per share, which are intended to minimize share dilution associated with the Convertible Notes; however under accounting guidance, these call options cannot be utilized to offset the dilution of the Convertible Notes for determining diluted earnings per share as they are anti-dilutive. 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 in the periods presented. The aggregate shares not included in the computation of earnings per share, as they would be anti-dilutive, were 0.9 million, 11.5 million and 22.9 million for the years ended October 31, 2011, 2010 and 2009, respectively. In addition, the computation of earnings per share for the year ended October 31, 2011 did not include any impact of the forward contract related to the ASR program as it would have been anti-dilutive. The 11.5 million shares not included in the 2010 computation include 11.3 million shares related to warrants which were anti-dilutive as our average stock price was less than the exercise price on the warrants for the year ended October 31, 2010. The 22.9 million shares not included in the 2009 computation include 11.3 million shares related to our Convertible Notes and 11.3 million shares related to warrants which were both anti-dilutive as our average stock price was less than both the conversion price of the Convertible Notes and the exercise price of the warrants for the year ended October 31, 2009. |
Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 31, 2011
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statement of Operations [Table Text Block] |
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Condensed Consolidating Balance Sheet [Table Text Block] |
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Condensed Consolidating Statement of Cash Flows [Table Text Block] |
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