Investments in and advances to non-consolidated affiliates

6 Months Ended

Apr. 30, 2012

Equity Method Investments and Joint Ventures [Abstract]

Investments in and advances to non-consolidated affiliates

Investments in and Advances to 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% to 50%. 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.

Prior to the termination of our NC² Global, LLC ("NC^2") joint venture agreement with Caterpillar, our 50% interest in NC² was included in Investments in and Advances to Non-consolidated Affiliates. In September 2011, the Company acquired all of Caterpillar's ownership interest in NC², thereby increasing our equity interest in NC² from 50% to 100%. We have consolidated the operating results of NC² within our Truck segment since September 30, 2011.

Presented below is summarized financial information representing 100% of NC², which was considered a significant non-consolidated affiliate during the three and six months ended April 30, 2011, prior to the increase of our equity interest in September 2011. Balance sheet information for NC² was insignificant to our Consolidated Balance Sheet as of April 30, 2011.



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

- Definition

The entire disclosure for equity investment, 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 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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