Segment Information

6 Months Ended

Jun. 30, 2011

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

We conduct our financing operations directly and indirectly through our subsidiaries and affiliates. We offer substantially similar products and services throughout many different regions, subject to local legal restrictions and market conditions. We divide our business segments based on geographic regions: the North America Segment (includes operations in the United States and Canada) and the International Segment (includes operations in all other countries).

We measure the performance of our segments primarily on an income before income taxes basis, after excluding the impact to earnings from gains and losses related to market valuation adjustments to derivatives primarily related to movements in interest rates. These adjustments are included in Unallocated Risk Management and are excluded in assessing our North America and International segment performance, because our risk management activities are carried out on a centralized basis at the corporate level, with only certain elements allocated to these segments. We also adjust segment performance to re-allocate interest expense between the North America and International segments reflecting debt and equity levels proportionate to their product risk. The North America and International segments are presented on a managed basis. Managed basis includes Finance receivables, net and Net investment in operating leases included in our consolidated balance sheet, excluding unearned interest supplements related to finance receivables.

Key operating data for our business segments for the periods ended June 30 were as follows (in millions):

						Unallocated/Eliminations
	North America Segment			International Segment		Unallocated Risk Management			Effect of Sales of Receivables			Effect of Unearned  Interest Supplements		Total			Total
Second Quarter of 2011
Revenue (a)	$	1,639		$	564	$	(50	)	$	—		$	—	$	(50	)	$	2,153
Income
Income/(Loss) before income taxes	607			45		(48		)	—			—		(48		)	604
Provision for/(Benefit from) income taxes	220			18		(17		)	—			—		(17		)	221
Net income/(loss)	387			27		(31		)	—			—		(31		)	383
Other disclosures
Depreciation on vehicles subject to operating leases	297			64		—			—			—		—			361
Interest expense	563			334		(2		)	—			—		(2		)	895
Provision for credit losses	(30		)	5		—			—			—		—			(25		)
Second Quarter of 2010
Revenue (a)	$	2,109		$	521	$	(20	)	$	(4	)	$	—	$	(24	)	$	2,606
Income
Income before income taxes	831			77		(20		)	—			—		(20		)	888
Provision for/(Benefit from) income taxes	312			26		(6		)	—			—		(6		)	332
Net income/(loss)	519			51		(14		)	—			—		(14		)	556
Other disclosures
Depreciation on vehicles subject to operating leases	435			40		—			—			—		—			475
Interest expense	800			286		—			0			—		0			1,086
Provision for credit losses	(158		)	7		—			—			—		—			(151		)

(a) Total Revenue represents Total financing revenue, Insurance premiums earned, net and Other income, net.

NOTE 14. SEGMENT INFORMATION (Continued)

						Unallocated/Eliminations
	North America Segment			International Segment		Unallocated Risk Management			Effect of Sales of Receivables			Effect of Unearned  Interest Supplements			Total			Total
First Half 2011
Revenue (a)	$	3,398		$	1,092	$	(110	)	$	—		$	—		$	(110	)	$	4,380
Income
Income/(Loss) before income taxes	1,258			167		(108		)	—			—			(108		)	1,317
Provision for/(Benefit from) income taxes	461			60		(38		)	—			—			(38		)	483
Net income/(loss)	797			107		(70		)	—			—			(70		)	834
Other disclosures
Depreciation on vehicles subject to operating leases	661			111		—			—			—			—			772
Interest expense	1,184			606		(2		)	—			—			(2		)	1,788
Provision for credit losses	(91		)	2		—			—			—			—			(89		)
Net finance receivables and investment in operating leases (b)	64,250			21,593		—			—			(1,857		)	(1,857		)	83,986
Total assets (b)	75,821			26,371		—			—			(1,857		)	(1,857		)	100,335
First Half 2010
Revenue (a)	$	4,369		$	1,084	$	10		$	(11	)	$	—		$	(1	)	$	5,452
Income												—
Income before income taxes	1,533			173		10			—			—			10			1,716
Provision for income taxes	568			60		4			—			—			4			632
Net income	965			113		6			—			—			6			1,084
Other disclosures
Depreciation on vehicles subject to operating leases	1,042			74		—			—			—			—			1,116
Interest expense	1,598			616		—			(1		)	—			(1		)	2,213
Provision for credit losses	(212		)	10		—			—			—			—			(202		)
Net finance receivables and investment in operating leases (c)	66,460			20,062		—			(1		)	(2,013		)	(2,014		)	84,508
Total assets (c)	84,277			25,822		—			2			(2,013		)	(2,011		)	108,088

(a) Total Revenue represents Total financing revenue, Insurance premiums earned, net and Other income, net.

(b) Reflects balance at June 30, 2011.

(c) Reflects balance at June 30, 2010.