Restructuring and Impairments	12 Months Ended
Oct. 31, 2020
Restructuring and Related Activities [Abstract]
Restructurings and Impairments	Restructuring, Impairments and Divestitures Restructuring charges are recorded based on restructuring plans that have been committed to by management and are, in part, based upon management's best estimates of future events. Changes to the estimates may require future adjustments to the restructuring liabilities. Manufacturing Restructuring Activities We continue to focus on our core Truck and Parts businesses and evaluate our portfolio of assets to validate their strategic and financial fit. This allows us to close or divest non-strategic businesses and identify opportunities to restructure our business and rationalize our Manufacturing operations in an effort to optimize our cost structure. For those areas that fall outside our strategic businesses, we are evaluating alternatives which could result in additional restructuring and other related charges in the future, including but not limited to: (i) impairments, (ii) accelerated depreciation, (iii) costs for employee and contractor termination and other related benefits, and (iv) charges for pension and other postretirement contractual benefits and curtailments. These charges could be significant. During 2020, we recorded net restructuring charges of $2 million. This includes $7 million of charges due to restructuring activity throughout the organization partially offset by $5 million of benefit related to adjustments on the previously recorded charges in our Global Operations segment. Global Operations restructuring activities During 2019, we ceased production at our MWM Motores engine facility in Jesus Maria, Argentina and initiated structural cost reductions in Brazil. As a result, we recognized charges of $3 million of inventory reserves and other related charges in Costs of products sold and $11 million in Restructuring charges in our Consolidated Statements of Operations in our Global Operations segment. During 2018, we recognized a benefit of $1 million upon the completion of cost-reduction actions impacting our workforce in Brazil. These impacts were recorded in our Global Operations segment within Restructuring charges in our Consolidated Statements of Operations. Asset Impairments During 2020, we identified a triggering event related to our operations in Brazil due to the impacts of the COVID-19 pandemic, which resulted in declines in actual and forecasted results. We performed an impairment test as of April 30, 2020 on the long-lived assets of the Brazilian asset group. As a result, we recorded charges of $12 million in our Global Operations segment. During 2020, 2019 and 2018, we concluded that we had triggering events primarily related to certain trucks under operating leases, due to declines in expected residual values. As a result, we recorded charges of $10 million, $6 million, and $5 million, respectively, in our Truck segment. During 2020, 2019 and 2018, we concluded that we had triggering events related to certain long-lived assets. As a result, we recorded charges of $6 million and $1 million in our Truck Segment in 2020 and 2019, respectively, and charges of $6 million and $1 million in our Truck segment and Financial Services segment, respectively, in 2018. During 2018, we concluded that we had triggering events related to the sale of our railcar business in Cherokee, Alabama requiring the impairment of certain long-lived assets. As a result, we recorded a charge of $2 million in our Truck segment. In February 2018, we completed the sale of the business. These charges were recorded in Asset impairment charges in our Consolidated Statements of Operations. See Note 14, Fair Value Measurements, for information on the valuation of impaired operating leases and other assets. Navistar Defense Divestiture In December 2018, we completed the sale of a 70% equity interest in Navistar Defense to an affiliate of Cerberus Capital Management, L.P. In connection with the closing of the transaction, we entered into an exclusive long-term agreement to supply military and commercial parts and chassis to Navistar Defense. We also entered into an intellectual property agreement and a transition services agreement concurrent with the sale. The Navistar Defense purchase price, adjusted for certain calendar year 2018 chargeouts, was approximately $140 million, which was subject to additional adjustments for working capital, transfers of certain liabilities and commitments, and other items. The transaction also included an immaterial amount of additional consideration, not included in the gain on the sale, based on cash proceeds from certain contracts which exceed defined thresholds. During 2019, we recognized a gain on the sale in our Truck segment of $51 million in Other expense, net in our Consolidated Statements of Operations.

Restructuring charges are recorded based on restructuring plans that have been committed to by management and are, in part, based upon management's best estimates of future events. Changes to the estimates may require future adjustments to the restructuring liabilities.

We continue to focus on our core Truck and Parts businesses and evaluate our portfolio of assets to validate their strategic and financial fit. This allows us to close or divest non-strategic businesses and identify opportunities to restructure our business and rationalize our Manufacturing operations in an effort to optimize our cost structure.

For those areas that fall outside our strategic businesses, we are evaluating alternatives which could result in additional restructuring and other related charges in the future, including but not limited to: (i) impairments, (ii) accelerated depreciation, (iii) costs for employee and contractor termination and other related benefits, and (iv) charges for pension and other postretirement contractual benefits and curtailments. These charges could be significant.

During 2020, we recorded net restructuring charges of $2 million. This includes $7 million of charges due to restructuring activity throughout the organization partially offset by $5 million of benefit related to adjustments on the previously recorded charges in our Global Operations segment.

During 2019, we ceased production at our MWM Motores engine facility in Jesus Maria, Argentina and initiated structural cost reductions in Brazil. As a result, we recognized charges of $3 million of inventory reserves and other related charges in Costs of products sold and $11 million in Restructuring charges in our Consolidated Statements of Operations in our Global Operations segment.

During 2018, we recognized a benefit of $1 million upon the completion of cost-reduction actions impacting our workforce in Brazil. These impacts were recorded in our Global Operations segment within Restructuring charges in our Consolidated Statements of Operations.

During 2020, we identified a triggering event related to our operations in Brazil due to the impacts of the COVID-19 pandemic, which resulted in declines in actual and forecasted results. We performed an impairment test as of April 30, 2020 on the long-lived assets of the Brazilian asset group. As a result, we recorded charges of $12 million in our Global Operations segment.

During 2020, 2019 and 2018, we concluded that we had triggering events primarily related to certain trucks under operating leases, due to declines in expected residual values. As a result, we recorded charges of $10 million, $6 million, and $5 million, respectively, in our Truck segment.

During 2020, 2019 and 2018, we concluded that we had triggering events related to certain long-lived assets. As a result, we recorded charges of $6 million and $1 million in our Truck Segment in 2020 and 2019, respectively, and charges of $6 million and $1 million in our Truck segment and Financial Services segment, respectively, in 2018.

During 2018, we concluded that we had triggering events related to the sale of our railcar business in Cherokee, Alabama requiring the impairment of certain long-lived assets. As a result, we recorded a charge of $2 million in our Truck segment. In February 2018, we completed the sale of the business.

These charges were recorded in Asset impairment charges in our Consolidated Statements of Operations.

See Note 14, Fair Value Measurements, for information on the valuation of impaired operating leases and other assets.

In December 2018, we completed the sale of a 70% equity interest in Navistar Defense to an affiliate of Cerberus Capital Management, L.P. In connection with the closing of the transaction, we entered into an exclusive long-term agreement to supply military and commercial parts and chassis to Navistar Defense. We also entered into an intellectual property agreement and a transition services agreement concurrent with the sale.

The Navistar Defense purchase price, adjusted for certain calendar year 2018 chargeouts, was approximately $140 million, which was subject to additional adjustments for working capital, transfers of certain liabilities and commitments, and other items. The transaction also included an immaterial amount of additional consideration, not included in the gain on the sale, based on cash proceeds from certain contracts which exceed defined thresholds.

During 2019, we recognized a gain on the sale in our Truck segment of $51 million in Other expense, net in our Consolidated Statements of Operations.