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Segment Reporting
 3 Months Ended
Jan. 31, 2016
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting
The following is a description of our four reporting segments:
•
Our Truck segment manufactures and distributes Class 4 through 8 trucks, buses, and military vehicles under the International and IC Bus ("IC") brands, and produces engines under our proprietary brand name and parts required to support the military truck lines. This segment sells its products in markets that include the U.S., Canada, Mexico, and within our export truck business. In an effort to strengthen and maintain our dealer network, this segment occasionally acquires and operates dealer locations for the purpose of transitioning ownership.
•
Our Parts segment provides customers with proprietary products needed to support the International commercial truck, IC Bus, proprietary engine lines, and export parts business, as well as our other product lines. Our Parts segment also provides a wide selection of other standard truck, trailer, and engine aftermarket parts. Also included in the Parts segment are the operating results of BDP, which manages the sourcing, merchandising, and distribution of certain service parts we sell to Ford in North America.
•
Our Global Operations segment primarily consists of the IIAA (formerly MWM International Industria De Motores Da America Do Sul Ltda. ("MWM")) engine and truck operations in Brazil. The IIAA engine operations produce diesel engines, primarily under contract manufacturing arrangements, as well as under the MWM brand, for sale to OEMs in South America. In addition, our Global Operations segment includes the operating results of our joint venture in China with Anhui Jianghuai Automobile Co ("JAC").
•
Our Financial Services segment provides retail, wholesale, and lease financing of products sold by the Truck and Parts segments and their dealers within the U.S. and Mexico, as well as financing for wholesale accounts and selected retail accounts receivable.
Corporate contains those items that are not included in our four segments.
Segment Profit (Loss)
We define segment profit (loss) as Net income (loss) from continuing operations attributable to Navistar International Corporation excluding Income tax benefit (expense). Selected financial information is as follows:
(in millions)
Truck

Parts

Global Operations

Financial
Services(A)

Corporate
and
Eliminations

Total
Three Months Ended January 31, 2016











External sales and revenues, net
$
1,081

 
$
562

 
$
84

 
$
35

 
$
3

 
$
1,765

Intersegment sales and revenues
51

 
8

 
8

 
24

 
(91
)
 
—

Total sales and revenues, net
$
1,132

 
$
570

 
$
92

 
$
59

 
$
(88
)
 
$
1,765

Income (loss) from continuing operations attributable to NIC, net of tax
$
(51
)
 
$
150

 
$
(13
)
 
$
26

 
$
(145
)
 
$
(33
)
Income tax benefit
—

 
—

 
—

 
—

 
5

 
5

Segment profit (loss)
$
(51
)
 
$
150

 
$
(13
)
 
$
26

 
$
(150
)
 
$
(38
)
Depreciation and amortization
$
34

 
$
3

 
$
5

 
$
12

 
$
4

 
$
58

Interest expense
—

 
—

 
—

 
19

 
62

 
81

Equity in income (loss) of non-consolidated affiliates
1

 
1

 
(3
)
 
—

 
—

 
(1
)
Capital expenditures(B)
25

 
1

 
1

 
—

 
2

 
29

(in millions)
Truck
 
Parts
 
Global Operations
 
Financial
Services(A)
 
Corporate
and
Eliminations
 
Total
Three Months Ended January 31, 2015
 
 
 
 
 
 
 
 
 
 
 
External sales and revenues, net
$
1,631

 
$
614

 
$
138

 
$
36

 
$
2

 
$
2,421

Intersegment sales and revenues
74

 
12

 
14

 
24

 
(124
)
 
—

Total sales and revenues, net
$
1,705

 
$
626

 
$
152

 
$
60

 
$
(122
)
 
$
2,421

Income (loss) from continuing operations attributable to NIC, net of tax
$
(18
)
 
$
145

 
$
(15
)
 
$
24

 
$
(178
)
 
$
(42
)
Income tax expense
—

 
—

 
—

 
—

 
(7
)
 
(7
)
Segment profit (loss)
$
(18
)
 
$
145

 
$
(15
)
 
$
24

 
$
(171
)
 
$
(35
)
Depreciation and amortization
$
52

 
$
3

 
$
7

 
$
12

 
$
5

 
$
79

Interest expense
—

 
—

 
—

 
20

 
57

 
77

Equity in income (loss) of non-consolidated affiliates
2

 
1

 
(1
)
 
—

 
—

 
2

       Capital expenditures(B)
14

 
—

 
2

 
—

 
1

 
17


(in millions)
Truck
 
Parts
 
Global Operations
 
Financial
Services
 
Corporate
and
Eliminations
 
Total
Segment assets, as of:
 
 
 
 
 
 
 
 
 
 
 
January 31, 2016
$
1,934

 
$
623

 
$
349

 
$
2,094

 
$
980

 
$
5,980

October 31, 2015
1,876

 
641

 
409

 
2,455

 
1,311

 
6,692

_________________________
(A)
Total sales and revenues in the Financial Services segment include interest revenues of $42 million and $45 million for the three months ended January 31, 2016 and 2015, respectively.
(B)
Exclusive of purchases of equipment leased to others.