XML 58 R36.htm IDEA: XBRL DOCUMENT v3.2.0.727
Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Tables)
 9 Months Ended
Jul. 31, 2015
Condensed Consolidating Guarantor and Non-Guarantor [Abstract]  
Schedule of Condensed Income Statement [Table Text Block]
Condensed Consolidating Statement of Operations for the Three Months Ended July 31, 2015
(in millions)
NIC
 
Navistar,
Inc.
 
Non-Guarantor
Subsidiaries
 
Eliminations
and Other
 
Consolidated
Sales and revenues, net
$
—

 
$
1,892

 
$
1,875

 
$
(1,229
)
 
$
2,538

Costs of products sold
—

 
1,752

 
1,627

 
(1,207
)
 
2,172

Restructuring charges
—

 
5

 
8

 
—

 
13

Asset impairment charges
—

 
—

 
7

 
—

 
7

All other operating expenses (income)
12

 
262

 
102

 
(16
)
 
360

Total costs and expenses
12

 
2,019

 
1,744

 
(1,223
)
 
2,552

Equity in income (loss) of affiliates
(16
)
 
76

 
2

 
(59
)
 
3

Income (loss) before income taxes
(28
)
 
(51
)
 
133

 
(65
)
 
(11
)
Income tax expense
—

 
(1
)
 
(11
)
 
—

 
(12
)
Earnings (loss) from continuing operations
(28
)
 
(52
)
 
122

 
(65
)
 
(23
)
Income from discontinued operations, net of tax
—

 
—

 
2

 
—

 
2

Net income (loss)
(28
)
 
(52
)
 
124

 
(65
)
 
(21
)
Less: Net income attributable to non-controlling interests
—

 
—

 
7

 
—

 
7

Net income (loss) attributable to Navistar International Corporation
$
(28
)
 
$
(52
)
 
$
117

 
$
(65
)
 
$
(28
)
Condensed Consolidating Statement of Operations for the Nine Months Ended July 31, 2015
(in millions)
NIC
 
Navistar,
Inc.
 
Non-Guarantor
Subsidiaries
 
Eliminations
and Other
 
Consolidated
Sales and revenues, net
$
—

 
$
5,511

 
$
5,586

 
$
(3,445
)
 
$
7,652

Costs of products sold
—

 
5,025

 
4,932

 
(3,380
)
 
6,577

Restructuring charges
—

 
8

 
14

 
—

 
22

Asset impairment charges
—

 
8

 
7

 
—

 
15

All other operating expenses (income)
62

 
808

 
306

 
(56
)
 
1,120

Total costs and expenses
62

 
5,849

 
5,259

 
(3,436
)
 
7,734

Equity in income (loss) of affiliates
(72
)
 
155

 
3

 
(80
)
 
6

Income (loss) before income taxes
(134
)
 
(183
)
 
330

 
(89
)
 
(76
)
Income tax expense
—

 
(3
)
 
(34
)
 
—

 
(37
)
Earnings (loss) from continuing operations
(134
)
 
(186
)
 
296

 
(89
)
 
(113
)
Income from discontinued operations, net of tax
—

 
—

 
2

 
—

 
2

Net income (loss)
(134
)
 
(186
)
 
298

 
(89
)
 
(111
)
Less: Net income attributable to non-controlling interests
—

 
—

 
23

 
—

 
23

Net income (loss) attributable to Navistar International Corporation
$
(134
)
 
$
(186
)
 
$
275

 
$
(89
)
 
$
(134
)
Condensed Consolidating Statement of Operations for the Three Months Ended July 31, 2014
(in millions)
NIC

Navistar, Inc.

Non-Guarantor Subsidiaries

Eliminations and Other

Consolidated
Sales and revenues, net
$
—


$
1,962


$
2,181


$
(1,299
)

$
2,844

Costs of products sold
—


1,761


1,938


(1,282
)

2,417

Restructuring charges
—


(1
)

17


—


16

Asset impairment charges
—


13


(11
)

2


4

All other operating expenses (income)
17


246


141


(16
)

388

Total costs and expenses
17


2,019


2,085


(1,296
)

2,825

Equity in income (loss) of affiliates
15


17


1


(31
)

2

Income (loss) before income taxes
(2
)

(40
)

97


(34
)

21

Income tax expense
—


(2
)

(12
)

—


(14
)
Earnings (loss) from continuing operations
(2
)

(42
)

85


(34
)

7

Income from discontinued operations, net of tax
—


—


1


—


1

Net income (loss)
(2
)

(42
)

86


(34
)

8

Less: Net income attributable to non-controlling interests
—


—


10


—


10

Net income (loss) attributable to Navistar International Corporation
$
(2
)

$
(42
)

$
76


$
(34
)

$
(2
)
Condensed Consolidating Statement of Operations for the Nine Months Ended July 31, 2014
(in millions)
NIC
 
Navistar, Inc.
 
Non-Guarantor Subsidiaries
 
Eliminations and Other
 
Consolidated
Sales and revenues, net
$
—

 
$
5,279

 
$
5,971

 
$
(3,452
)
 
$
7,798

Costs of products sold
—

 
4,983

 
5,331

 
(3,415
)
 
6,899

Restructuring charges
—

 
9

 
18

 
—

 
27

Asset impairment charges
—

 
13

 
160

 
—

 
173

All other operating expenses (income)
94

 
760

 
389

 
(44
)
 
1,199

Total costs and expenses
94

 
5,765

 
5,898

 
(3,459
)
 
8,298

Equity in income (loss) of affiliates
(466
)
 
(135
)
 
2

 
604

 
5

Income (loss) before income taxes
(560
)
 
(621
)
 
75

 
611

 
(495
)
Income tax benefit (expense)
13

 
(3
)
 
(35
)
 
—

 
(25
)
Earnings (loss) from continuing operations
(547
)
 
(624
)
 
40

 
611

 
(520
)
Income from discontinued operations, net of tax
—

 
—

 
3

 
—

 
3

Net income (loss)
(547
)
 
(624
)
 
43

 
611

 
(517
)
Less: Net income attributable to non-controlling interests
—

 
—

 
30

 
—

 
30

Net income (loss) attributable to Navistar International Corporation
$
(547
)
 
$
(624
)
 
$
13

 
$
611

 
$
(547
)
Schedule of Condensed Statement of Comprehensive Income [Table Text Block]
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Nine Months Ended July 31, 2015
(in millions)
NIC
 
Navistar,
Inc.
 
Non-Guarantor
Subsidiaries
 
Eliminations
and Other
 
Consolidated
Net income (loss) attributable to Navistar International Corporation
$
(134
)
 
$
(186
)
 
$
275

 
$
(89
)
 
$
(134
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
(133
)
 
—

 
(133
)
 
133

 
(133
)
Defined benefit plans (net of tax of $(1), $14, $(15), $1, and $(1), respectively)
98

 
70

 
28

 
(98
)
 
98

Total other comprehensive income (loss)
(35
)
 
70

 
(105
)
 
35

 
(35
)
Total comprehensive income (loss) attributable to Navistar International Corporation
$
(169
)
 
$
(116
)
 
$
170

 
$
(54
)
 
$
(169
)
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Nine Months Ended July 31, 2014
(in millions)
NIC
 
Navistar, Inc.
 
Non-Guarantor Subsidiaries
 
Eliminations and Other
 
Consolidated
Net income (loss) attributable to Navistar International Corporation
$
(547
)
 
$
(624
)
 
$
13

 
$
611

 
$
(547
)
Other comprehensive income (loss):


 


 


 


 

Foreign currency translation adjustment
(17
)
 
—

 
(17
)
 
17

 
(17
)
Defined benefit plans (net of tax of $(4) $0, $(4), $4, and $(4), respectively)
83

 
73

 
10

 
(83
)
 
83

Total other comprehensive income (loss)
66

 
73

 
(7
)
 
(66
)
 
66

Total comprehensive income (loss) attributable to Navistar International Corporation
$
(481
)
 
$
(551
)
 
$
6

 
$
545

 
$
(481
)
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended July 31, 2015
(in millions)
NIC

Navistar,
Inc.

Non-Guarantor
Subsidiaries

Eliminations
and Other

Consolidated
Net income (loss) attributable to Navistar International Corporation
$
(28
)

$
(52
)

$
117


$
(65
)

$
(28
)
Other comprehensive income (loss):













Foreign currency translation adjustment
(47
)

—


(47
)

47


(47
)
Defined benefit plans (net of tax of $0, for all entities)
33


8


25


(33
)

33

Total other comprehensive income (loss)
(14
)

8


(22
)

14


(14
)
Total comprehensive income (loss) attributable to Navistar International Corporation
$
(42
)

$
(44
)

$
95


$
(51
)

$
(42
)
Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended July 31, 2014
(in millions)
NIC

Navistar, Inc.

Non-Guarantor Subsidiaries

Eliminations and Other

Consolidated
Net income (loss) attributable to Navistar International Corporation
$
(2
)

$
(42
)

$
76


$
(34
)

$
(2
)
Other comprehensive income (loss):













Foreign currency translation adjustment
(3
)

—


(3
)

3


(3
)
Defined benefit plans (net of tax of $(3), $0, $(3), $3, and $(3), respectively)
33


23


10


(33
)

33

Total other comprehensive income (loss)
30


23


7


(30
)

30

Total comprehensive income (loss) attributable to Navistar International Corporation
$
28


$
(19
)

$
83


$
(64
)

$
28
Schedule of Condensed Balance Sheet [Table Text Block]
Condensed Consolidating Balance Sheet as of October 31, 2014
(in millions)
NIC
 
Navistar,
Inc.
 
Non-Guarantor
Subsidiaries
 
Eliminations
and Other
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
101

 
$
53

 
$
343

 
$
—

 
$
497

Marketable securities
379

 
—

 
226

 
—

 
605

Restricted cash
19

 
4

 
148

 
—

 
171

Finance and other receivables, net
—

 
124

 
2,504

 
(12
)
 
2,616

Inventories
—

 
792

 
539

 
(12
)
 
1,319

Investments in non-consolidated affiliates
(7,245
)
 
6,410

 
71

 
837

 
73

Property and equipment, net
—

 
827

 
740

 
(5
)
 
1,562

Goodwill
—

 
—

 
38

 
—

 
38

Deferred taxes, net (A)
5

 
25

 
169

 
1

 
200

Other
34

 
137

 
194

 
(3
)
 
362

Total assets
$
(6,707
)
 
$
8,372

 
$
4,972

 
$
806

 
$
7,443

Liabilities and stockholders’ equity (deficit)
 
 
 
 
 
 
 
 
 
Debt
$
1,958

 
$
937

 
$
2,336

 
$
(7
)
 
$
5,224

Postretirement benefits liabilities (A)
—

 
2,752

 
203

 
—

 
2,955

Amounts due to (from) affiliates
(7,618
)
 
11,739

 
(4,267
)
 
146

 
—

Other liabilities
3,605

 
370

 
(22
)
 
(71
)
 
3,882

Total liabilities
(2,055
)
 
15,798

 
(1,750
)
 
68

 
12,061

Redeemable equity securities
2

 
—

 
—

 
—

 
2

Stockholders’ equity attributable to non-controlling interest
—

 
—

 
34

 
—

 
34

Stockholders’ equity (deficit) attributable to Navistar International Corporation (A)
(4,654
)
 
(7,426
)
 
6,688

 
738

 
(4,654
)
Total liabilities and stockholders’ equity (deficit)
$
(6,707
)
 
$
8,372

 
$
4,972

 
$
806

 
$
7,443

_________________________
(A)
During the third quarter of 2015, it was determined that multiemployer plan accounting should have been applied in recording postretirement benefits related to our Financial Services segment, which provides that assets and liabilities of a plan are recorded only on the parent company and that periodic contributions to the plan made by the participating subsidiary are charged to expense for the purposes of the subsidiary's financial statements. As a result, we have reclassified $40 million of postretirement benefits, and related deferred taxes and Accumulated Other Comprehensive Income impact, between NIC and Non-Guarantor Subsidiaries. This reclassification did not impact the consolidated financial position for the year-ended October 31, 2014.

Condensed Consolidating Balance Sheet as of July 31, 2015
(in millions)
NIC
 
Navistar,
Inc.
 
Non-Guarantor
Subsidiaries
 
Eliminations
and Other
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
226

 
$
44

 
$
277

 
$
—

 
$
547

Marketable securities
149

 
—

 
144

 
—

 
293

Restricted cash
17

 
3

 
337

 
—

 
357

Finance and other receivables, net
3

 
142

 
2,271

 
(22
)
 
2,394

Inventories
—

 
731

 
481

 
(13
)
 
1,199

Investments in non-consolidated affiliates
(7,352
)
 
6,570

 
67

 
786

 
71

Property and equipment, net
—

 
751

 
633

 
(9
)
 
1,375

Goodwill
—

 
—

 
38

 
—

 
38

Deferred taxes, net (A)
5

 
9

 
149

 
—

 
163

Other
35

 
133

 
166

 
(2
)
 
332

Total assets
$
(6,917
)
 
$
8,383

 
$
4,563

 
$
740

 
$
6,769

Liabilities and stockholders’ equity (deficit)
 
 
 
 
 
 
 
 
 
Debt
$
1,968

 
$
872

 
$
2,449

 
$
(3
)
 
$
5,286

Postretirement benefits liabilities (A)
—

 
2,651

 
189

 
—

 
2,840

Amounts due to (from) affiliates
(7,669
)
 
12,082

 
(4,590
)
 
177

 
—

Other liabilities
3,600

 
202

 
(275
)
 
(75
)
 
3,452

Total liabilities
(2,101
)
 
15,807

 
(2,227
)
 
99

 
11,578

Redeemable equity securities
1

 
—

 
—

 
—

 
1

Stockholders’ equity attributable to non-controlling interest
—

 
—

 
7

 
—

 
7

Stockholders’ equity (deficit) attributable to Navistar International Corporation (A)
(4,817
)
 
(7,424
)
 
6,783

 
641

 
(4,817
)
Total liabilities and stockholders’ equity (deficit)
$
(6,917
)
 
$
8,383

 
$
4,563

 
$
740

 
$
6,769
Schedule of Condensed Cash Flow Statement [Table Text Block]
Condensed Consolidating Statement of Cash Flows for the Nine Months Ended July 31, 2014
(in millions)
NIC
 
Navistar,
Inc.
 
Non-Guarantor
Subsidiaries
 
Eliminations
and Other
 
Consolidated
Net cash provided by (used in) operations
$
(528
)
 
$
(1,078
)
 
$
156

 
$
1,106

 
$
(344
)
Cash flows from investment activities
 
 
 
 
 
 
 
 
 
Net change in restricted cash and cash equivalents
6

 
—

 
(36
)
 
—

 
(30
)
Net sales of marketable securities
315

 
—

 
(103
)
 
—

 
212

Capital expenditures and purchase of equipment leased to others
—

 
(89
)
 
(125
)
 
—

 
(214
)
Other investing activities
—

 
22

 
24

 
—

 
46

Net cash provided by (used in) investment activities
321

 
(67
)
 
(240
)
 
—

 
14

Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Net borrowings (repayments) of debt
(11
)
 
1,067

 
192

 
(1,136
)
 
112

Other financing activities
18

 
44

 
(70
)
 
30

 
22

Net cash provided by (used in) financing activities
7

 
1,111

 
122

 
(1,106
)
 
134

Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
(12
)
 
—

 
(12
)
Increase (decrease) in cash and cash equivalents
(200
)
 
(34
)
 
26

 
—

 
(208
)
Cash and cash equivalents at beginning of the period
336

 
72

 
347

 
—

 
755

Cash and cash equivalents at end of the period
$
136

 
$
38

 
$
373

 
$
—

 
$
547

Condensed Consolidating Statement of Cash Flows for the Nine Months Ended July 31, 2015
(in millions)
NIC
 
Navistar,
Inc.
 
Non-Guarantor
Subsidiaries
 
Eliminations
and Other
 
Consolidated
Net cash provided by (used in) operations
$
(106
)
 
$
282

 
$
62

 
$
(252
)
 
$
(14
)
Cash flows from investment activities
 
 
 
 
 
 
 
 
 
Net change in restricted cash and cash equivalents
1

 
1

 
(194
)
 
—

 
(192
)
Net sales of marketable securities
230

 
—

 
82

 
—

 
312

Capital expenditures and purchase of equipment leased to others
—

 
(52
)
 
(78
)
 
—

 
(130
)
Other investing activities
—

 
3

 
12

 
—

 
15

Net cash provided by (used in) investment activities
231

 
(48
)
 
(178
)
 
—

 
5

Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Net borrowings (repayments) of debt
—

 
(189
)
 
176

 
126

 
113

Other financing activities
—

 
(54
)
 
(99
)
 
126

 
(27
)
Net cash provided by (used in) financing activities
—

 
(243
)
 
77

 
252

 
86

Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
(27
)
 
—

 
(27
)
Increase (decrease) in cash and cash equivalents
125

 
(9
)
 
(66
)
 
—

 
50

Cash and cash equivalents at beginning of the period
101

 
53

 
343

 
—

 
497

Cash and cash equivalents at end of the period
$
226

 
$
44

 
$
277

 
$
—

 
$
547