XML 66 R53.htm IDEA: XBRL DOCUMENT v2.4.0.6
Summary of Significant Accounting Policies - Product Warranty Liability (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 31, 2012
Apr. 30, 2012
Jan. 31, 2012
Jul. 31, 2011
Apr. 30, 2011
Jul. 31, 2010
Oct. 31, 2012
Oct. 31, 2011
Oct. 31, 2010
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward:                  
Accrued product warranty and deferred warranty revenue, at beginning of period     $ 598       $ 598 $ 506 $ 492
Cost accrued and revenues deferred             571 [1] 407 [1] 269 [1]
Product Warranty Accrual, Acquisitions               5  
Adjustments to pre-existing warranties 149 [1] 104 [1] 123 [1] 30 [1] 27 [1] 25 [1] 404 [2] 79 [2] 51 [2]
Payments and revenues recognized             (455) (399) (306)
Accrued product warranty and deferred warranty revenue, at end of period 1,118           1,118 598 506
Less: Current portion 551           551 263 252
Noncurrent accrued product warranty and deferred warranty revenue 567           567 335 254
Product Warranty Accrual, Increase (Decrease) 28 [1]                
Product Warranty Accrual, Increase (Decrease), per share $ 0.41 [1]                
Product Warranty Accrual, Preexisting Increase Decrease Per Share, Net of Tax $ 2.16 $ 1.51 $ 1.76 $ 0.39 $ 0.34 $ 0.34      
Truck [Domain]
                 
Extended Warranty Program:                  
Product Warranty Expense             66    
Extended Warranty Programs [Member]
                 
Extended Warranty Program:                  
Deferred Revenue 364           364 257 167
Revenue recognized under extended warranty programs             63 53 46
Warranty contracts sold in current year [Member] | Truck [Domain]
                 
Extended Warranty Program:                  
Product Warranty Expense             19    
Product Warranty Accrual [Member] | Truck [Domain]
                 
Extended Warranty Program:                  
Product Warranty Expense             47    
Field Campaign to address issues in products sold [Member] | Truck [Domain]
                 
Extended Warranty Program:                  
Product Warranty Expense             $ 130 $ 23  
[1] The warranty estimation for engines sold in 2012 includes a factor for improvements to the design and manufacturing process that was based on historical experience. In the fourth quarter of 2012 we identified a deviation from historic experience and we recorded an adjustment for a change in estimate to increase in the costs accrued for warranty of $28 million, or $0.41 per diluted share for products sold in the first three quarters of 2012.
[2] In the first quarter of 2012, we recorded significant adjustments for changes in estimates of $123 million, or $1.76 per diluted share. In the second quarter of 2012, we recorded significant adjustments for changes in estimates of $104 million, or $1.51 per diluted share. In the fourth quarter of 2012, we recorded significant adjustments for changes in estimates of $149 million, or $2.16 per diluted share. In the third quarter of 2011, we recorded significant adjustments for changes in estimates of $30 million, or $0.39 per diluted share. In the second quarter of 2011, we recorded significant adjustments for changes in estimates of $27 million, or $0.34 per diluted share. In the third quarter of 2010, we recorded significant adjustments for changes in estimates of $25 million, or $0.34 diluted share.