Summary of Significant Accounting Policies (Tables)

3 Months Ended

Jan. 31, 2020

Product Warranty Liability [Line Items]

Schedule of Product Warranty Liability [Table Text Block]

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

	Three Months Ended January 31,
(in millions)	2020			2019
Balance at beginning of period	$	510		$	529
Costs accrued and revenues deferred	35			52
Adjustments to pre-existing warranties(A)	4			(7		)
Payments and revenues recognized	(67		)	(68		)
Other adjustments(B)	—			12
Balance at end of period	482			518
Less: Current portion	201			257
Noncurrent accrued product warranty and deferred warranty revenue	$	281		$	261

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(A) Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior fiscal 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.

(B)

Other adjustments in the three months ended January 31, 2019 include a $14 million increase in revenues deferred in connection with the adoption of the new revenue standard (as defined below regarding Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 606), partially offset by a $2 million reduction in liability related to the sale of a majority interest in our defense business, Navistar Defense.