Segment Information

6 Months Ended

Jun. 30, 2019

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

NOTE 14. SEGMENT INFORMATION (Continued)

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 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	983		3		—			986		—			986
Interest expense	830		76		90			996		1			997
Provision for credit losses	61		8		—			69		—			69

Second Quarter 2019
Total revenue	$	2,792	$	307	$	89		$	3,188	$	—		$	3,188
Income before income taxes	608		116		15			739		92			831
Other disclosures:
Depreciation on vehicles subject to operating leases	885		9		—			894		—			894
Interest expense	979		86		51			1,116		(2		)	1,114
Provision for credit losses	54		7		2			63		—			63

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	2,031		8		—			2,039		—			2,039
Interest expense	1,582		148		181			1,911		(2		)	1,909
Provision for credit losses	147		13		3			163		—			163
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

First Half 2019
Total revenue	$	5,585	$	610	$	187		$	6,382	$	—		$	6,382
Income before income taxes	1,252		232		49			1,533		99			1,632
Other disclosures:
Depreciation on vehicles subject to operating leases	1,797		21		—			1,818		—			1,818
Interest expense	1,951		166		112			2,229		6			2,235
Provision for credit losses	92		12		(8		)	96		—			96
Net finance receivables and net investment in operating leases	120,486		27,224		4,212			151,922		(8,443		)	143,479
Total assets	130,735		28,745		4,538			164,018		—			164,018

__________

(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).