SPECIAL ITEMS (Tables)

9 Months Ended

Jul. 31, 2022

SPECIAL ITEMS

Schedule of Special Items

A summary of the reserves, impairments, voluntary-separation costs, and contingent liabilities recorded in the first nine months of 2022 follows in millions of dollars:

	Nine Months Ended July 31, 2022
	PPA		SAT		CF		FS		Total
2022 Expense:
Inventory reserve – Cost of sales	$	8			$	4			$	12
Fixed asset impairment – Cost of sales		30				11				41
Intangible asset impairment – Cost of sales						28				28
Allowance for credit losses – Financing receivables – SA&G expenses							$	32		32
Voluntary-separation program – Cost of sales		1								1
Voluntary-separation program – SA&G expenses		3				4		1		8
Contingent liabilities – Other operating expenses		3	$	1		1				5
Total Russia/Ukraine events pretax expense	$	45	$	1	$	48	$	33		127
Net tax impact										(8)
Total Russia/Ukraine events after-tax expense									$	119

The following table summarizes the operating profit impact, in millions of dollars, of the special items recorded for the three months and nine months ended July 31, 2022 and August 1, 2021:

	Three Months										Nine Months
	PPA		SAT		CF		FS		Total		PPA		SAT		CF		FS		Total
2022 Expense (benefit):
Gain on remeasurement of equity investment – Other income (see Note 19)															$	(326)			$	(326)
Total Russia/Ukraine events pretax expense	$	(1)			$	1	$	7	$	7	$	45	$	1		48	$	33		127
UAW ratification bonus – Cost of sales												53		9		28				90
Total expense (benefit)		(1)				1		7		7		98		10		(250)		33		(109)
2021 Expense (benefit):
Gain on sale – Other income			$	(27)						(27)				(27)						(27)
Long-lived asset impairments – Cost of sales												5		3		42				50
Brazil indirect tax – Cost of sales												(53)				(5)				(58)
Total expense (benefit)				(27)						(27)		(48)		(24)		37				(35)
Period over period change	$	(1)	$	27	$	1	$	7	$	34	$	146	$	34	$	(287)	$	33	$	(74)