Segment Information Segment Information

3 Months Ended

Mar. 31, 2015

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: North America (“North America Segment”) and International (“International Segment”). The North America Segment includes our operations in the United States and Canada. The International Segment includes our operations in all other countries in which we do business directly and indirectly.

We review our business performance on a managed basis. Receivables for the North America and International Segments are presented on a managed basis, as it closely approximates the customer’s outstanding balance on the receivables, which is the basis for earning revenue. Our managed receivables include 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).

We measure the performance of our North America and International 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.

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 2015
Total revenue (b)	$	1,897	$	410	$	(25	)	$	—		$	(25	)	$	2,282
Income before income taxes	379		129		(25		)	—			(25		)	483
Other disclosures
Depreciation on vehicles subject to operating leases	811		5		—			—			—			816
Interest expense	482		156		—			—			—			638
Provision for credit losses	55		12		—			—			—			67
Net finance receivables and net investment in operating leases	91,203		21,658		—			(4,379		)	(4,379		)	108,482
Total assets	100,692		25,683		—			—			—			126,375
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

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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.