Segment and Geographic Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT AND GEOGRAPHIC 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 equal 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. 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.

NOTE 16. SEGMENT AND GEOGRAPHIC INFORMATION (Continued)

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

					Unallocated/Eliminations
	North America Segment		International Segment		Unallocated Risk Management			Adjustment to Receivables (a)			Total Unallocated/Eliminations			Total
2015
Total revenue (b)	$	8,048	$	1,650	$	(1	)	$	—		$	(1	)	$	9,697
Income before income taxes	1,629		458		(1		)	—			(1		)	2,086
Other disclosures:
Depreciation on vehicles subject to operating leases	3,603		37		—			—			—			3,640
Interest expense	1,811		605		—			—			—			2,416
Provision for credit losses	294		53		—			—			—			347
Net finance receivables and net investment in operating leases	103,268		23,964		—			(5,330		)	(5,330		)	121,902
Total assets	109,339		28,109		—			—			—			137,448
2014
Total revenue (b)	$	7,351	$	1,651	$	(6	)	$	—		$	(6	)	$	8,996
Income before income taxes	1,399		461		(6		)	—			(6		)	1,854
Other disclosures:
Depreciation on vehicles subject to operating leases	3,045		43		—			—			—			3,088
Interest expense	2,010		646		—			—			—			2,656
Provision for credit losses	157		40		—			—			—			197
Net finance receivables and net investment in operating leases	91,021		21,762		—			(4,350		)	(4,350		)	108,433
Total assets	96,016		26,092		—			—			—			122,108
2013
Total revenue (b)	$	6,708	$	1,527	$	(53	)	$	—		$	(53	)	$	8,182
Income before income taxes	1,438		371		(53		)	—			(53		)	1,756
Other disclosures:
Depreciation on vehicles subject to operating leases	2,369		28		—			—			—			2,397
Interest expense	2,088		642		—			—			—			2,730
Provision for credit losses	114		32		—			—			—			146
Net finance receivables and net investment in operating leases	83,722		19,688		—			(3,497		)	(3,497		)	99,913
Total assets	90,720		24,888		—			—			—			115,608

__________

(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.

NOTE 16. SEGMENT AND GEOGRAPHIC INFORMATION (Continued)

Geographic Information

Key data for our geographic operations in the United States, Canada, Europe, and other foreign operations were as follows for the years ended or at December 31 (in millions):

	2015		2014		2013
Total revenue (a)
United States	$	7,070	$	6,377	$	5,739
Canada	981		998		909
Europe	979		1,041		1,132
All other	667		580		402
Total revenue	$	9,697	$	8,996	$	8,182
Income before income taxes
United States	$	1,298	$	1,199	$	1,160
Canada	247		148		127
Europe	316		332		319
All other	225		175		150
Total income before income taxes	$	2,086	$	1,854	$	1,756
Finance receivables, net and net investment in operating leases
United States	$	88,237	$	76,578	$	70,513
Canada	10,037		10,449		10,085
Europe	18,657		16,708		15,674
All other	4,971		4,698		3,641
Total finance receivables, net and net investment in operating leases	$	121,902	$	108,433	$	99,913

__________

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