Selected quarterly financial data (Unaudited)

12 Months Ended

Oct. 31, 2011

Selected Quarterly Financial Information [Abstract]

Selected quarterly financial data (Unaudited)

Quarterly Condensed Consolidated Statements of Operations and Financial Data



	1^stQuarter Ended January 31,					2^ndQuarter 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



	3^rdQuarter Ended July 31,				4^thQuarter 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.

The following table sets forth the effects of the revision on our Quarterly Condensed Consolidated Statements of Operations and Financial Data for the fourth quarter ended October 31, 2010:



	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

The following table sets forth the effects of the change on our Quarterly Condensed Consolidated Statements of Operations and Financial Data for the fourth quarter ended October 31, 2011:



	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.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

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