Segment Information

6 Months Ended

Jun. 30, 2018

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

Key financial information 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 2017
Total revenue	$	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

Second Quarter 2018
Total revenue	$	2,661	$	298	$	140	$	3,099	$	—		$	3,099
Income before income taxes	548		103		27		678		(33		)	645
Other disclosures:
Depreciation on vehicles subject to operating leases	960		3		—		963		—			963
Interest expense	830		76		90		996		1			997
Provision for credit losses	84		8		—		92		—			92

First Half 2017
Total revenue	$	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

First Half 2018
Total revenue	$	5,241	$	594	$	284	$	6,119	$	—		$	6,119
Income before income taxes	1,063		214		73		1,350		(64		)	1,286
Other disclosures:
Depreciation on vehicles subject to operating leases	1,983		8		—		1,991		—			1,991
Interest expense	1,582		148		181		1,911		(2		)	1,909
Provision for credit losses	195		13		3		211		—			211
Net finance receivables and net investment in operating leases	119,611		25,437		6,405		151,453		(8,246		)	143,207
Total assets	125,436		27,391		6,784		159,611		—			159,611

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(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).