Segment Information

6 Months Ended

Jun. 30, 2022

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. In our consolidated financial statements, we have three reportable segments based on geographic regions: 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. Effective for the first quarter of 2022, we have eliminated the use of non-GAAP measures and now present receivables on a net basis.

Key financial information for our business segments for the periods ended or at June 30 was as follows (in millions):

	United States and Canada		Europe		All Other		Total Segments		Unallocated Other (a)		Total
Second Quarter 2021
Total revenue	$	2,295	$	238	$	108	$	2,641	$	—	$	2,641
Income before income taxes	1,466		81		22		1,569		54		1,623
Depreciation on vehicles subject to operating leases	184		7		—		191		—		191
Interest expense	600		72		51		723		(43)		680
Provision for credit losses	(165)		(6)		5		(166)		—		(166)
Second Quarter 2022
Total revenue	$	2,029	$	221	$	98	$	2,348	$	—	$	2,348
Income before income taxes	698		97		(17)		778		125		903
Depreciation on vehicles subject to operating leases	559		(10)		—		549		—		549
Interest expense	632		57		53		742		(85)		657
Provision for credit losses	(57)		(2)		3		(56)		—		(56)
First Half 2021
Total revenue	$	4,679	$	479	$	200	$	5,358	$	—	$	5,358
Income before income taxes	2,462		147		7		2,616		(31)		2,585
Depreciation on vehicles subject to operating leases	746		13		—		759		—		759
Interest expense	1,238		152		107		1,497		(13)		1,484
Provision for credit losses	(217)		(7)		18		(206)		—		(206)
Net finance receivables and net investment in operating leases (a) (b)	93,783		19,305		4,672		117,760		—		117,760
Total assets	111,149		22,226		5,436		138,811		—		138,811
First Half 2022
Total revenue	$	4,058	$	416	$	200	$	4,674	$	—	$	4,674
Income before income taxes	1,481		166		(191)		1,456		201		1,657
Depreciation on vehicles subject to operating leases	1,085		(21)		—		1,064		—		1,064
Interest expense	1,174		112		111		1,397		(129)		1,268
Provision for credit losses	(124)		(5)		9		(120)		—		(120)
Net finance receivables and net investment in operating leases (a) (b)	94,291		16,212		5,124		115,627		—		115,627
Total assets	103,289		19,158		5,803		128,250		—		128,250

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(a)Excludes held-for-sale finance receivables.

(b)Prior periods have been restated to display net receivables in lieu of the non-GAAP measure of managed receivables.