Segment Information

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

We have three reportable segments in our consolidated financial statements that align with our management reporting structure and reflect the manner in which our Chief Operating Decision Maker manages our business, including resource allocation and performance assessment. These segments are: 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 conduct our financing operations directly and indirectly through our subsidiaries and affiliates.

NOTE 14. SEGMENT INFORMATION (Continued)

Key operating data for our business segments for the periods ended or at June 30 were as follows (in millions):

	Americas		Europe		Asia Pacific		Total Segments		Unallocated Other (a)			Total
Second Quarter 2016
Total revenue (b)	$	2,365	$	266	$	85	$	2,716	$	(28	)	$	2,688
Income before income taxes	322		97		9		428		(28		)	400
Other disclosures:
Depreciation on vehicles subject to operating leases	1,068		7		—		1,075		—			1,075
Interest expense	568		74		45		687		—			687
Provision for credit losses	128		5		4		137		—			137
Second Quarter 2017
Total revenue (b)	$	2,461	$	233	108		$	2,802	$	—		$	2,802
Income before income taxes	465		74		18		557		62			619
Other disclosures:
Depreciation on vehicles subject to operating leases	1,027		10		—		1,037		—			1,037
Interest expense	643		62		64		769		—			769
Provision for credit losses	86		8		5		99		—			99
First Half 2016
Total revenue (b)	$	4,644	$	517	$	170	$	5,331	$	(35	)	$	5,296
Income before income taxes	745		178		26		949		(35		)	914
Other disclosures:
Depreciation on vehicles subject to operating leases	2,076		13		—		2,089		—			2,089
Interest expense	1,101		144		88		1,333		—			1,333
Provision for credit losses	241		15		9		265		—			265
Net finance receivables and net investment in operating leases	109,823		20,654		3,727		134,204		(6,107		)	128,097
Total assets	117,966		23,503		4,098		145,567		—			145,567
First Half 2017
Total revenue (b)	$	4,866	$	461	$	206	$	5,533	$	—		$	5,533
Income before income taxes	823		151		46		1,020		80			1,100
Other disclosures:
Depreciation on vehicles subject to operating leases	2,080		21		—		2,101		—			2,101
Interest expense	1,260		123		115		1,498		—			1,498
Provision for credit losses	230		14		7		251		—			251
Net finance receivables and net investment in operating leases	115,033		21,740		5,427		142,200		(7,207		)	134,993
Total assets	120,704		23,819		5,971		150,494		—			150,494

__________

(a) Net finance receivables and Net investment in operating leases include unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation).

(b) Total revenue for 2016 includes Total financing revenue, Insurance premiums earned, and Other income, net. For 2017, Total revenue includes Total financing revenue, Insurance premiums earned, and Fee based revenue and other. The change in the definition of Total revenue is the result of our adoption of the new revenue recognition accounting standard as of January 1, 2017 (see Note 2 for additional information).