Income Taxes Income Taxes (Tables)

12 Months Ended

Oct. 31, 2018

Schedule of Income before Income Tax, Domestic and Foreign

The following table presents the domestic and foreign components of Income (loss) from continuing operations before income taxes in our Consolidated Statements of Operations:



	For the Years Ended October 31,
(in millions)	2018		2017			2016
Domestic	$	246	$	(74	)	$	(95	)
Foreign	174		138			63
Income (loss) from continuing operations before income taxes	$	420	$	64		$	(32	)

Schedule of Components of Income Tax Expense (Benefit)

The following table presents the components of Income tax expense in our Consolidated Statements of Operations:



	For the Years Ended October 31,
(in millions)	2018			2017			2016
Current:
Federal	$	—		$	4		$	(1	)
State and local	(1		)	10			(4		)
Foreign	(47		)	(30		)	(36		)
Total current expense	$	(48	)	$	(16	)	$	(41	)
Deferred:
Federal	$	2		$	19		$	13
State and local	(1		)	4			(1		)
Foreign	(5		)	(17		)	(4		)
Total deferred benefit (expense)	$	(4	)	$	6		$	8
Total income tax expense	$	(52	)	$	(10	)	$	(33	)

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation of statutory federal income tax benefit (expense) recorded in Income tax expense in our Consolidated Statements of Operations:



	For the Years Ended October 31,
(in millions)	2018			2017			2016
Federal income tax benefit (expense)^(A)	$	(98	)	$	(22	)	$	11
State income taxes, net of federal benefit	(3		)	(3		)	(3		)
Credits and incentives	(50		)	8			3
Adjustments to valuation allowances	1,120			(57		)	(132		)
Foreign operations	(2		)	4			53
Unremitted foreign earnings	—			—			37
Adjustments to uncertain tax positions	(1		)	15			(10		)
Intraperiod tax allocation offset to equity components	—			28			—
Non-controlling interest adjustment	6			9			11
Tax Act Mandatory Repatriation	(34		)	—			—
Tax Act US Deferred Remeasurement	(983		)	—			—
Other	(7		)	8			(3		)
Recorded income tax expense	$	(52	)	$	(10	)	$	(33	)

Schedule of Deferred Tax Assets and Liabilities

The following table presents the components of the deferred tax asset (liability):



	As of October 31,
(in millions)	2018			2017
Deferred tax assets attributable to:
Employee benefits liabilities	$	615		$	1,073
Net operating loss ("NOL") carryforwards	979			1,383
Product liability and warranty accruals	172			290
Research and development	114			209
Tax credit carryforwards	212			262
Other	238			277
Gross deferred tax assets	2,330			3,494
Less: Valuation allowances	2,182			3,326
Net deferred tax assets	$	148		$	168
Deferred tax liabilities attributable to:
Other	$	(27	)	$	(39	)
Total deferred tax liabilities	$	(27	)	$	(39	)

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible

Changes in the liability for uncertain tax positions are summarized as follows:



	For the years ended October 31,
(in millions)	2018			2017
Liability for uncertain tax positions at November 1	$	34		$	50
Additions as a result of positions taken in prior periods	2			—
Decrease as a result of positions taken in prior periods	(7		)	(15		)
Settlements	(2		)	(1		)
Liability for uncertain tax positions at October 31	$	27		$	34