Segment Information

3 Months Ended

Mar. 31, 2014

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 they 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. Receivables for the North America and International Segments are presented on a managed basis. Management believes that managed receivables is the appropriate measurement of business growth, as it closely approximates the customers’ outstanding balance on the receivables, which is the basis for earning revenue. As a result, managed receivables equals total net finance receivables and net investment in operating leases, excluding unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation).

Key operating data for our business segments for the periods ended or at March 31 were as follows (in millions):

					Unallocated/Eliminations
	North America Segment		International Segment		Unallocated Risk Management			Adjustment to Receivables (a)			Total Unallocated/Eliminations			Total
First Quarter 2014
Total revenue (b)	$	1,769	$	401	$	(11	)	$	—		$	(11	)	$	2,159
Income before income taxes	378		132		(11		)	—			(11		)	499
Other disclosures
Depreciation on vehicles subject to operating leases	695		10		—			—			—			705
Interest expense	512		154		—			—			—			666
Provision for credit losses	29		2		—			—			—			31
Net finance receivables and net investment in operating leases	85,130		21,335		—			(3,587		)	(3,587		)	102,878
Total assets	92,566		25,798		—			—			—			118,364
First Quarter 2013
Total revenue (b)	$	1,582	$	369	$	9		$	—		$	9		$	1,960
Income before income taxes	407		91		9			—			9			507
Other disclosures
Depreciation on vehicles subject to operating leases	476		5		—			—			—			481
Interest expense	517		166		—			—			—			683
Provision for credit losses	22		7		—			—			—			29
Net finance receivables and net investment in operating leases	76,829		17,496		—			(2,999		)	(2,999		)	91,326
Total assets	83,523		22,413		—			—			—			105,936

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(a) Includes unearned interest supplements and residual support, allowances for credit losses, and other (primarily accumulated supplemental depreciation).

(b) Represents Total financing revenue, Insurance premiums earned, and Other income, net.