Segment and Geographic Information

12 Months Ended

Dec. 31, 2016

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 17. 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
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
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
2016
Total revenue (b)	$	9,190	$	1,650	$	69		$	—		$	69		$	10,909
Income before income taxes	1,408		402		69			—			69			1,879
Other disclosures:
Depreciation on vehicles subject to operating leases	4,291		38		—			—			—			4,329
Interest expense	2,171		584		—			—			—			2,755
Provision for credit losses	476		71		—			—			—			547
Net finance receivables and net investment in operating leases	111,663		25,202		—			(6,675		)	(6,675		)	130,190
Total assets	116,776		29,313		—			—			—			146,089

__________

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

(b) Represents Total financing revenue and Other revenue.

NOTE 17. SEGMENT AND GEOGRAPHIC INFORMATION (Continued)

Geographic Information

Key data, split geographically into the United States (which is our country of domicile) and other countries or regions where our major subsidiaries are domiciled, for the years ended or at December 31 were as follows (in millions):

	2014		2015		2016
Total revenue (a)
United States	$	6,377	$	7,070	$	8,151
Canada	998		981		1,093
Europe	1,041		979		985
All other	580		667		680
Total revenue	$	8,996	$	9,697	$	10,909
Income before income taxes
United States	$	1,199	$	1,298	$	1,070
Canada	148		247		304
Europe	332		316		259
All other	175		225		246
Total income before income taxes	$	1,854	$	2,086	$	1,879
Finance receivables, net and net investment in operating leases
United States	$	76,578	$	88,237	$	93,254
Canada	10,449		10,037		12,168
Europe	16,708		18,657		18,485
All other	4,698		4,971		6,283
Total finance receivables, net and net investment in operating leases	$	108,433	$	121,902	$	130,190

__________

(a) Represents Total financing revenue and Other revenue.