Segment and Geographic Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

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. As of January 1, 2020, we updated our reportable segments in our consolidated financial statements to align with our new management reporting structure and reflect the manner in which our Chief Operating Decision Maker manages our business, including resource allocation and performance assessment. These segments are: the United States and Canada, Europe, and All Other. Our All Other segment includes China, India, Mexico, Brazil, Argentina, and our joint venture in South Africa. 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.

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 15. 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):

	United States and Canada		Europe		All Other		Total Segments		Unallocated Other (a)		Total
2019
Total revenue	$	10,795	$	1,183	$	645	$	12,623	$	—	$	12,623
Income before income taxes	2,365		352		143		2,860		138		2,998
Other disclosures:
Depreciation on vehicles subject to operating leases	3,592		43		—		3,635		—		3,635
Interest expense	3,685		340		346		4,371		18		4,389
Provision for/(Benefit from) credit losses	260		25		11		296		—		296
Net finance receivables and net investment in operating leases	119,498		25,630		5,062		150,190		(8,214)		141,976
Total assets (c)	125,624		30,050		5,729		161,403		—		161,403
2020
Total revenue	$	10,020	$	1,012	$	430	$	11,462	$	—	$	11,462
Income before income taxes	2,241		196		38		2,475		133		2,608
Other disclosures:
Depreciation on vehicles subject to operating leases	3,237		(2)		—		3,235		—		3,235
Interest expense	2,892		347		223		3,462		(60)		3,402
Provision for/(Benefit from) credit losses	716		63		49		828		—		828
Net finance receivables and net investment in operating leases (b)	112,208		23,517		4,778		140,503		(8,778)		131,725
Total assets (c)	125,074		27,620		5,435		158,129		—		158,129
2021
Total revenue	$	8,911	$	878	$	461	$	10,250	$	—	$	10,250
Income before income taxes	4,393		254		98		4,745		(14)		4,731
Other disclosures:
Depreciation on vehicles subject to operating leases	1,615		11		—		1,626		—		1,626
Interest expense	2,348		275		221		2,844		(54)		2,790
Provision for/(Benefit from) credit losses	(333)		(10)		33		(310)		—		(310)
Net finance receivables and net investment in operating leases (b)	99,468		18,098		5,864		123,430		(5,913)		117,517
Total assets	107,409		20,837		6,699		134,945		—		134,945

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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.

(c)Amounts have been updated as a result of our adoption of ASU 2019-12, Simplifying the Accounting for Income Taxes. See Note 2 for additional information.

NOTE 15. SEGMENT AND GEOGRAPHIC INFORMATION (Continued)

Geographic Information

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

	2019		2020		2021
Total revenue
United States	$	9,472	$	8,780	$	7,622
Canada	1,323		1,240		1,289
Rest of world	1,828		1,442		1,339
Total revenue	$	12,623	$	11,462	$	10,250
Net property and net investment in operating leases
United States	$	24,123	$	22,891	$	20,886
Canada	3,328		3,588		4,246
Rest of world	420		395		259
Net property and net investment in operating leases	$	27,871	$	26,874	$	25,391