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Segment Reporting (Tables)
 9 Months Ended
Jul. 31, 2011
Segment Reporting [Abstract]  
Schedule of selected financial information, by segment
ion. Previously, such gains were not material and were recorded within Corporate.
(C)Total sales and revenues in the Financial Services segment include interest revenues of $72 million and $225 million for the three and nine months
ended July 31, 2011, respectively, and $67 million and $197 million for the three and nine months ended July 31, 2010, respectively.
(D)Beginning in the second quarter of 2011, certain purchases from the Engine segment by the Parts segment are recorded at market-based pricing. All
other intersegment purchases from the Truck and Engine segments by the Parts segment continue to be recorded at standard production cost. The effect of this change did not have a material impact on our segment reporting.
(E)In the first quarter of 2011, we began allocating 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 within Corporate.
(F)Exclusive of purchase of equipment leased to others.
(G)Certain amounts have been revised to reflect a retrospective change in accounting principle. See Note 1, Summary of significant accounting policies.
Our results for interim periods are not necessarily indicative of results for a full year. Selected financial information is as follows:
 
 
Truck(A)
 
Engine(B)
 
Parts
 
Financial
Services(C)
 
Corporate
and
Eliminations
 
Total
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended July 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
External sales and revenues, net
 
$
2,457


 
$
546


 
$
487


 
$
47


 
$
—


 
$
3,537


Intersegment sales and revenues(D)
 
—


 
422


 
29


 
26


 
(477
)
 
—


Total sales and revenues, net
 
$
2,457


 
$
968


 
$
516


 
$
73


 
$
(477
)
 
$
3,537


Net income (loss) attributable to NIC
 
$
(75
)
 
$
32


 
$
70


 
$
30


 
$
1,343


 
$
1,400


Income tax benefit
 
—


 
—


 
—


 
—


 
1,463


 
1,463


Segment profit (loss)(D)(E)
 
$
(75
)
 
$
32


 
$
70


 
$
30


 
$
(120
)
 
$
(63
)
Depreciation and amortization
 
$
37


 
$
32


 
$
2


 
$
8


 
$
5


 
$
84


Interest expense
 
—


 
—


 
—


 
28


 
34


 
62


Equity in income (loss) of non-consolidated affiliates
 
(22
)
 
(1
)
 
1


 
—


 
—


 
(22
)
Capital expenditures(F)
 
15


 
47


 
7


 
1


 
36


 
106


 
 
Truck
 
Engine
 
Parts
 
Financial
Services(C)
 
Corporate
and
Eliminations
 
Total
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended July 31, 2010 (Revised)(G)
 
 
 
 
 
 
 
 
 
 
 
 
External sales and revenues, net
 
$
2,311


 
$
456


 
$
395


 
$
59


 
$
—


 
$
3,221


Intersegment sales and revenues
 
—


 
216


 
45


 
23


 
(284
)
 
—


Total sales and revenues, net
 
$
2,311


 
$
672


 
$
440


 
$
82


 
$
(284
)
 
$
3,221


Net income (loss) attributable to NIC
 
$
227


 
$
(1
)
 
$
52


 
$
33


 
$
(194
)
 
$
117


Income tax expense
 
—


 
—


 
—


 
—


 
(19
)
 
(19
)
Segment profit (loss)(E)
 
$
227


 
$
(1
)
 
$
52


 
$
33


 
$
(175
)
 
$
136


Depreciation and amortization
 
$
40


 
$
26


 
$
2


 
$
6


 
$
4


 
$
78


Interest expense
 
—


 
—


 
—


 
24


 
34


 
58


Equity in income (loss) of non-consolidated affiliates
 
(15
)
 
1


 
1


 
—


 
—


 
(13
)
Capital expenditures(F)
 
22


 
47


 
3


 
—


 
12


 
84


 
 
Truck(A)
 
Engine(B)
 
Parts
 
Financial
Services(C)
 
Corporate
and
Eliminations
 
Total
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended July 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
External sales and revenues, net
 
$
6,510


 
$
1,526


 
$
1,445


 
$
154


 
$
—


 
$
9,635


Intersegment sales and revenues(D)
 
18


 
1,180


 
128


 
75


 
(1,401
)
 
—


Total sales and revenues, net
 
$
6,528


 
$
2,706


 
$
1,573


 
$
229


 
$
(1,401
)
 
$
9,635


Net income attributable to NIC
 
$
49


 
$
26


 
$
200


 
$
102


 
$
1,091


 
$
1,468


Income tax benefit
 
—


 
—


 
—


 
—


 
1,458


 
1,458


Segment profit(D)(E)
 
$
49


 
$
26


 
$
200


 
$
102


 
$
(367
)
 
$
10


Depreciation and amortization
 
$
112


 
$
91


 
$
7


 
$
21


 
$
14


 
$
245


Interest expense
 
—


 
—


 
—


 
84


 
103


 
187


Equity in income (loss) of non-consolidated affiliates
 
(57
)
 
(3
)
 
5


 
—


 
—


 
(55
)
Capital expenditures(F)
 
53


 
131


 
11


 
1


 
95


 
291


 
 
Truck
 
Engine
 
Parts
 
Financial
Services(C)
 
Corporate
and
Eliminations
 
Total
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended July 31, 2010 (Revised)(G)
 
 
 
 
 
 
 
 
 
 
 
 
External sales and revenues, net
 
$
5,874


 
$
1,525


 
$
1,211


 
$
163


 
$
—


 
$
8,773


Intersegment sales and revenues(D)
 
1


 
645


 
143


 
70


 
(859
)
 
—


Total sales and revenues, net
 
$
5,875


 
$
2,170


 
$
1,354


 
$
233


 
$
(859
)
 
$
8,773


Net income attributable to NIC
 
$
338


 
$
68


 
$
189


 
$
61


 
$
(477
)
 
$
179


Income tax expense
 
—


 
—


 
—


 
—


 
(17
)
 
(17
)
Segment profit(E)
 
$
338


 
$
68


 
$
189


 
$
61


 
$
(460
)
 
$
196


Depreciation and amortization
 
$
120


 
$
79


 
$
5


 
$
21


 
$
11


 
$
236


Interest expense
 
—


 
—


 
—


 
85


 
104


 
189


Equity in income (loss) of non-consolidated affiliates
 
(33
)
 
(1
)
 
2


 
—


 
—


 
(32
)
Capital expenditures(F)
 
56


 
81


 
7


 
1


 
17


 
162
Schedule of segment assets
As of July 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
Segment assets
 
$
2,551


 
$
1,876


 
$
721


 
$
3,318


 
$
2,712


 
$
11,178


As of October 31, 2010
 
 
 
 
 
 
 
 
 
 
 
 
Segment assets
 
2,457


 
1,715


 
811


 
3,497


 
1,250


 
9,730


_______________ 
(A)Includes impairments of property and equipment and intangible assets. See Note 2, Restructurings and impairments.
(B)In the third quarter of 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 within Corporate.
(C)Total sales and revenues in the Financial Services segment include interest revenues of $72 million and $225 million for the three and nine months
ended July 31, 2011, respectively, and $67 million and $197 million for the three and nine months ended July 31, 2010, respectively.
(D)Beginning in the second quarter of 2011, certain purchases from the Engine segment by the Parts segment are recorded at market-based pricing. All
other intersegment purchases from the Truck and Engine segments by the Parts segment continue to be recorded at standard production cost. The effect of this change did not have a material impact on our segment reporting.
(E)In the first quarter of 2011, we began allocating 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 within Corporate.
(F)Exclusive of purchase of equipment leased to others.
(G)Certain amounts have been revised to reflect a retrospective change in accounting principle. See Note 1, Summary of significant accounting policies.