Segment and Geographic Information

12 Months Ended

Dec. 31, 2019

SEGMENT AND GEOGRAPHIC 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

We review our business performance by segment on a managed basis. Receivables are presented on a managed basis, as it closely approximates the customer’s outstanding balance on the receivables, which is the basis for earning revenue. Our managed receivables equal net finance receivables, net investment in operating leases, and held-for-sale receivables, excluding unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation).

We measure the performance of our segments primarily on an income before income taxes basis, after excluding market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, which are reflected in Unallocated Other. These adjustments are excluded when assessing our segment performance because they are carried out at the corporate level. We also adjust segment performance to reallocate interest expense among the segments reflecting debt and equity levels proportionate to their product risk.

NOTE 16. SEGMENT AND GEOGRAPHIC INFORMATION (Continued)

Key operating data for our business segments for the years ended or at December 31 was as follows (in millions):



	Americas		Europe		Asia Pacific			Total Segments		Unallocated Other (a)			Total
2017
Total revenue	$	9,928	$	981	$	468		$	11,377	$	—		$	11,377
Income before income taxes	1,795		329		85			2,209		101			2,310
Other disclosures:
Depreciation on vehicles subject to operating leases	4,210		44		—			4,254		—			4,254
Interest expense	2,641		257		277			3,175		—			3,175
Provision for credit losses	423		28		18			469		—			469
Net finance receivables and net investment in operating leases	118,392		24,957		7,152			150,501		(7,837		)	142,664
Total assets	124,645		28,204		7,594			160,443		—			160,443

2018
Total revenue	$	10,706	$	1,160	$	516		$	12,382	$	—		$	12,382
Income before income taxes	2,208		391		102			2,701		(74		)	2,627
Other disclosures:
Depreciation on vehicles subject to operating leases	3,934		39		—			3,973		—			3,973
Interest expense	3,331		283		322			3,936		(6		)	3,930
Provision for credit losses	391		20		15			426		—			426
Net finance receivables and net investment in operating leases	123,403		26,029		5,444			154,876		(8,613		)	146,263
Total assets	128,498		27,804		5,907			162,209		—			162,209

2019
Total revenue	$	11,109	$	1,183	$	331		$	12,623	$	—		$	12,623
Income before income taxes	2,422		363		75			2,860		138			2,998
Other disclosures:
Depreciation on vehicles subject to operating leases	3,592		43		—			3,635		—			3,635
Interest expense	3,840		340		191			4,371		18			4,389
Provision for credit losses	277		25		(6		)	296		—			296
Net finance receivables and net investment in operating leases (b)	120,976		25,629		3,585			150,190		(8,214		)	141,976
Total assets	127,533		30,050		3,843			161,426		—			161,426

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(a)	Finance receivables, net and Net investment in operating leases include unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation).


(b)	Excludes held-for-sale receivables.

NOTE 16. SEGMENT AND GEOGRAPHIC INFORMATION (Continued)

Geographic Information

Key data, split geographically into the United States (which is our country of domicile), Canada, and All other, for the years ended or at December 31 were as follows (in millions):



	2017		2018		2019
Total revenue
United States	$	8,378	$	9,043	$	9,472
Canada	1,193		1,315		1,323
All other	1,806		2,024		1,828
Total revenue	$	11,377	$	12,382	$	12,623

Net property and net investment in operating leases
United States	$	23,162	$	24,057	$	24,123
Canada	3,302		3,155		3,328
All other	374		429		420
Net property and net investment in operating leases	$	26,838	$	27,641	$	27,871