Summary of Significant Accounting Policies (Tables)

12 Months Ended

Oct. 31, 2020

Property, Plant And Equipment, Useful Life

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

Intangible Assets, Useful Life

The ranges for the amortization periods are generally as follows:



	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:



	For the Years Ended October 31,
(in millions)	2020			2019			2018
Balance at beginning of period	$	510		$	529		$	629
Costs accrued and revenues deferred	162			249			211
Adjustments to pre-existing warranties^(A)	40			3			(9		)
Payments and revenues recognized	(263		)	(283		)	(303		)
Other adjustments^(B)	—			12			1
Balance at end of period	449			510			529
Less: Current portion	209			233			255
Noncurrent accrued product warranty and deferred warranty revenue	$	240		$	277		$	274

________________________

(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 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.