Segment Information

9 Months Ended

Sep. 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 September 30 were as follows (in millions):

	Americas		Europe		Asia Pacific		Total Segments		Unallocated Other (a)			Total
Third Quarter 2016
Total revenue (b)	$	2,419	$	244	$	88	$	2,751	$	45		$	2,796
Income before income taxes	423		79		20		522		45			567
Other disclosures:
Depreciation on vehicles subject to operating leases	1,072		13		—		1,085		—			1,085
Interest expense	586		69		42		697		—			697
Provision for credit losses	128		6		4		138		—			138
Third Quarter 2017
Total revenue (b)	$	2,493	$	247	123		$	2,863	$	—		$	2,863
Income before income taxes	485		72		23		580		20			600
Other disclosures:
Depreciation on vehicles subject to operating leases	975		14		—		989		—			989
Interest expense	669		65		76		810		—			810
Provision for credit losses	159		7		3		169		—			169
First Nine Months 2016
Total revenue (b)	$	7,063	$	761	$	258	$	8,082	$	10		$	8,092
Income before income taxes	1,168		257		46		1,471		10			1,481
Other disclosures:
Depreciation on vehicles subject to operating leases	3,149		25		—		3,174		—			3,174
Interest expense	1,687		213		130		2,030		—			2,030
Provision for credit losses	369		21		13		403		—			403
Net finance receivables and net investment in operating leases	111,110		19,266		4,049		134,425		(6,573		)	127,852
Total assets	116,462		22,150		4,380		142,992		—			142,992
First Nine Months 2017
Total revenue (b)	$	7,359	$	709	$	328	$	8,396	$	—		$	8,396
Income before income taxes	1,308		223		69		1,600		100			1,700
Other disclosures:
Depreciation on vehicles subject to operating leases	3,055		35		—		3,090		—			3,090
Interest expense	1,930		187		191		2,308		—			2,308
Provision for credit losses	389		21		10		420		—			420
Net finance receivables and net investment in operating leases	115,331		23,855		5,921		145,107		(7,579		)	137,528
Total assets	120,398		27,323		6,757		154,478		—			154,478

__________

(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).