Segment Information

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT 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

Key financial information for our business segments for the periods ended or at March 31 were as follows (in millions):

	Americas		Europe		Asia Pacific			Total Segments		Unallocated Other (a)			Total
First Quarter 2018
Total revenue	$	2,581	$	295	$	144		$	3,020	$	—		$	3,020
Income before income taxes	515		111		46			672		(31		)	641
Other disclosures:
Depreciation on vehicles subject to operating leases	1,048		5		—			1,053		—			1,053
Interest expense	752		72		91			915		(3		)	912
Provision for credit losses	86		5		3			94		—			94
Net finance receivables and net investment in operating leases	120,392		27,702		7,574			155,668		(8,017		)	147,651
Total assets	127,013		30,109		7,961			165,083		—			165,083
First Quarter 2019
Total revenue	$	2,793	$	303	$	98		$	3,194	$	—		$	3,194
Income before income taxes	644		116		34			794		7			801
Other disclosures:
Depreciation on vehicles subject to operating leases	912		12		—			924		—			924
Interest expense	972		80		61			1,113		8			1,121
Provision for credit losses	38		5		(10		)	33		—			33
Net finance receivables and net investment in operating leases	123,323		27,066		4,885			155,274		(8,418		)	146,856
Total assets	130,603		29,459		5,353			165,415		—			165,415

__________

(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).

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