Investments in non-consolidated affiliates

6 Months Ended

Apr. 30, 2011

Equity Method Investment, Summarized Financial Information [Abstract]

Investments in non-consolidated affiliates

Investments in non-consolidated affiliates is comprised of our interests in partially-owned affiliates of which our ownership percentages range from 10 percent to 50 percent. We do not control these affiliates, but have the ability to exercise significant influence over their operating and financial policies. Our investment in these affiliates is an integral part of our operations, and we account for them using the equity method of accounting.

Presented below is summarized financial information for NC² Global, LLC (“NC²”), which is considered a significant non-consolidated affiliate. NC² was established in September 2009 as a joint venture with Caterpillar Inc. to develop, manufacture, and distribute conventional and cab-over truck designs to serve the global commercial truck market. Balance sheet information for NC² was insignificant to our Consolidated Balance Sheets as of April 30, 2011 and October 31, 2010.




	Three Months Ended April 30,						Six Months Ended April 30,
	2011			2010			2011			2010
(in millions)
Net revenue	$	30		$	13		$	79		$	13
Net expenses	46			29			113			39
Loss before tax expense	(16		)	(16		)	(34		)	(26		)
Net loss	(16		)	(16		)	(34		)	(26		)

- Definition

Equity investment disclosure, or group of investments for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20% of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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