Income Taxes	3 Months Ended
Jan. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For interim income tax reporting we estimate our annual effective tax rate and apply it to our year to date ordinary income (loss). Tax jurisdictions with a projected year to date loss for which a tax benefit cannot be realized are excluded. Our annual effective tax rate is primarily impacted by jurisdictions that continue to be in a valuation allowance. The tax effects of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are reported in the interim period in which they occur. In the first quarter of 2020, we recognized an income tax benefit of $5 million compared to an income tax benefit of $19 million in the prior year period. The change in tax is largely the result of a $38 million benefit associated with a group annuity contract purchase for certain retired pension plan participants, recorded in the first quarter of 2019. Other differences for the first quarter of 2020 include the impact of earnings, the sale of a majority interest of Navistar Defense in the first quarter of 2019, geographical mix, and certain discrete items.

Income Taxes

3 Months Ended

Jan. 31, 2020

For interim income tax reporting we estimate our annual effective tax rate and apply it to our year to date ordinary income (loss). Tax jurisdictions with a projected year to date loss for which a tax benefit cannot be realized are excluded. Our annual effective tax rate is primarily impacted by jurisdictions that continue to be in a valuation allowance. The tax effects of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are reported in the interim period in which they occur.

In the first quarter of 2020, we recognized an income tax benefit of $5 million compared to an income tax benefit of $19 million in the prior year period. The change in tax is largely the result of a $38 million benefit associated with a group annuity contract purchase for certain retired pension plan participants, recorded in the first quarter of 2019. Other differences for the first quarter of 2020 include the impact of earnings, the sale of a majority interest of Navistar Defense in the first quarter of 2019, geographical mix, and certain discrete items.