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 segment our business based on geographic regions: the Americas, Europe, and Asia Pacific. Items excluded in assessing segment performance because they are managed at the corporate level, including market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, are reflected in Unallocated Other. The following is a brief description of our segments:

•Americas Segment -- United States, Canada, Mexico, Brazil, and Argentina

•Europe Segment -- European region and South Africa

•Asia Pacific Segment -- China and India

We review our business performance by segment on a managed basis. Receivables 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 segments primarily on an income before income taxes basis, after excluding market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, which are reflected in Unallocated Other. These adjustments are excluded when assessing our segment performance because they are carried out at the corporate level. We also adjust segment performance to reallocate interest expense among the segments reflecting debt and equity levels proportionate to their product risk.

NOTE 17. SEGMENT AND GEOGRAPHIC INFORMATION (Continued)

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

	Americas		Europe		Asia Pacific		Total Segments		Unallocated Other (a)			Total
2014
Total revenue (b)	$	7,657	$	1,071	$	274	$	9,002	$	(6	)	$	8,996
Income before income taxes	1,509		338		13		1,860		(6		)	1,854
Other disclosures:
Depreciation on vehicles subject to operating leases	3,045		43		—		3,088		—			3,088
Interest expense	2,119		356		181		2,656		—			2,656
Provision for credit losses	176		15		6		197		—			197
Net finance receivables and net investment in operating leases	92,484		17,036		3,263		112,783		(4,350		)	108,433
Total assets	98,093		20,439		3,576		122,108		—			122,108
2015
Total revenue (b)	$	8,386	$	982	$	330	$	9,698	$	(1	)	$	9,697
Income before income taxes	1,763		297		27		2,087		(1		)	2,086
Other disclosures:
Depreciation on vehicles subject to operating leases	3,603		37		—		3,640		—			3,640
Interest expense	1,931		294		191		2,416		—			2,416
Provision for credit losses	309		16		22		347		—			347
Net finance receivables and net investment in operating leases	104,497		18,947		3,788		127,232		(5,330		)	121,902
Total assets	111,147		22,085		4,216		137,448		—			137,448
2016
Total revenue (b)	$	9,505	$	984	$	351	$	10,840	$	69		$	10,909
Income before income taxes	1,511		238		61		1,810		69			1,879
Other disclosures:
Depreciation on vehicles subject to operating leases	4,291		38		—		4,329		—			4,329
Interest expense	2,301		278		176		2,755		—			2,755
Provision for credit losses	494		29		24		547		—			547
Net finance receivables and net investment in operating leases	113,335		18,846		4,684		136,865		(6,675		)	130,190
Total assets	119,012		21,755		5,322		146,089		—			146,089

__________

(a) Net finance receivables and Net investment in operating leases 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), Canada, and All other, 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
All other	1,621		1,646		1,665
Total revenue	$	8,996	$	9,697	$	10,909
Income before income taxes
United States	$	1,199	$	1,298	$	1,070
Canada	148		247		304
All other	507		541		505
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
All other	21,406		23,628		24,768
Total finance receivables, net and net investment in operating leases	$	108,433	$	121,902	$	130,190

__________

(a) Represents Total financing revenue and Other revenue.