Summary of Significant Accounting Policies (Tables)

12 Months Ended

Oct. 31, 2015

Property, Plant and Equipment [Table Text Block]

The ranges of estimated useful lives are as follows:



	Years
Buildings	20 - 50
Leasehold improvements	3 - 20
Machinery and equipment	3 - 12
Furniture, fixtures, and equipment	3 - 15
Equipment leased to others	1 - 10

Schedule intangibles amortization periods [Table Text Block]



	Years
Customer base and relationships	3 - 15
Trademarks	20
Other	3 - 18

Schedule of Product Warranty Liability [Table Text Block]

Product Warranty Liability

The following table presents accrued product warranty and deferred warranty revenue activity:



(in millions)	2015			2014			2013
Balance at beginning of period	$	1,197		$	1,349		$	1,118
Costs accrued and revenues deferred	190			302			469
Divestitures	—			—			(3		)
Currency translation adjustment	(9		)	(4		)	(2		)
Adjustments to pre-existing warranties^(A)(B)	1			55			404
Payments and revenues recognized	(385		)	(505		)	(637		)
Balance at end of period	994			1,197			1,349
Less: Current portion	429			535			601
Noncurrent accrued product warranty and deferred warranty revenue	$	565		$	662		$	748

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(A)

Adjustments to pre-existing warranties 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. Our warranty liability is generally affected by component failure rates, repair costs, and the timing of failures. Future events and circumstances related to these factors could materially change our estimates and require adjustments to our liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available.

In the first quarter of 2015, we recognized a benefit for adjustments to pre-existing warranties of $57 million or a benefit of $0.70 per diluted share. In the fourth quarter of 2015, we recognized a charge for adjustments to pre-existing warranties from continuing operations of $40 million or a charge of $0.49 per diluted share. The impact of income taxes on the 2015 adjustments are not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. Adjustments to pre-existing warranties in 2015 includes a benefit of $3 million related to our Workhorse Custom Chassis ("WCC") operations, which are reported in Discontinued Operations in the Consolidated Statements of Operations.

In the first quarter of 2014, we recorded adjustments for changes in estimates of $52 million or charges of $0.64 per diluted share. In the second quarter of 2014, we recorded adjustments for changes in estimates of $42 million, or charges of $0.52 per diluted share. In the third quarter of 2014, we recognized a benefit for adjustments to pre-existing warranties of $29 million, or a benefit of $0.36 per diluted share. Included in the 2014 adjustments is a $36 million correction of prior-period errors, primarily related to pre-existing warranties. For more information on the errors identified, see 2014 Out-of-Period Adjustments.

In the first quarter of 2013, we recorded adjustments for changes in estimates of $40 million, or $0.50 per diluted share. In the second quarter of 2013, we recorded adjustments for changes in estimates of $164 million, or $2.04 per diluted share. In the third quarter of 2013, we recorded adjustments for changes in estimates of $48 million, or $0.60 per diluted share. In the fourth quarter of 2013, we recorded adjustments for changes in estimates of $152 million, or $1.89 per diluted share.

(B)

In the first quarter of 2013, we recognized $13 million of charges for adjustments to pre-existing warranties for a specific warranty issue related to component parts from a supplier. Also during the first quarter of 2013, we reached an agreement for reimbursement from this supplier for this amount and other costs previously accrued. As a result of this agreement, we recognized a recovery of $27 million within Costs of products sold and recorded a receivable within Other current assets. In the second quarter of 2013, we recognized a warranty recovery of $13 million within Income (loss) from discontinued operations, net of tax and recorded a receivable within Other current assets.