Segment Information

9 Months Ended

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



	Americas		Europe		Asia Pacific			Total Segments		Unallocated Other (a)			Total
Third Quarter 2018
Total revenue	$	2,677	$	284	$	120		$	3,081	$	—		$	3,081
Income before income taxes	556		89		13			658		20			678
Other disclosures:
Depreciation on vehicles subject to operating leases	924		12		—			936		—			936
Interest expense	848		68		75			991		(2		)	989
Provision for credit losses	116		1		10			127		—			127

Third Quarter 2019
Total revenue	$	2,764	$	286	$	77		$	3,127	$	—		$	3,127
Income before income taxes	584		82		15			681		55			736
Other disclosures:
Depreciation on vehicles subject to operating leases	884		10		—			894		—			894
Interest expense	951		86		43			1,080		1			1,081
Provision for credit losses	86		6		1			93		—			93

First Nine Months 2018
Total revenue	$	7,918	$	878	$	404		$	9,200	$	—		$	9,200
Income before income taxes	1,619		303		86			2,008		(44		)	1,964
Other disclosures:
Depreciation on vehicles subject to operating leases	2,955		20		—			2,975		—			2,975
Interest expense	2,430		216		256			2,902		(4		)	2,898
Provision for credit losses	263		14		13			290		—			290
Net finance receivables and net investment in operating leases	120,425		25,995		5,720			152,140		(8,526		)	143,614
Total assets	128,103		27,120		6,023			161,246		—			161,246

First Nine Months 2019
Total revenue	$	8,349	$	896	$	264		$	9,509	$	—		$	9,509
Income before income taxes	1,836		314		64			2,214		154			2,368
Other disclosures:
Depreciation on vehicles subject to operating leases	2,681		31		—			2,712		—			2,712
Interest expense	2,902		252		155			3,309		7			3,316
Provision for credit losses	178		18		(7		)	189		—			189
Net finance receivables and net investment in operating leases	119,463		25,518		3,737			148,718		(8,417		)	140,301
Total assets	128,603		28,185		4,095			160,883		—			160,883

__________

(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).