Segment Information

9 Months Ended

Sep. 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 with first quarter 2022 reporting, we eliminated the use of non-GAAP measures and now present receivables on a net basis. Beginning in the third quarter of 2022, consistent with how our Chief Operating Decision Maker assesses performance of the segments and makes decisions about resource allocations, we changed the measurements used in allocating interest and governance expenses among the operating segments. Prior period amounts have been adjusted retrospectively to reflect the foregoing changes.

NOTE 12. SEGMENT INFORMATION (Continued)

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

	United States and Canada		Europe		All Other		Total Segments		Unallocated Other (a)		Total
Third Quarter 2021
Total revenue	$	2,129	$	208	$	136	$	2,473	$	—	$	2,473
Income before income taxes	960		61		57		1,078		(1)		1,077
Depreciation on vehicles subject to operating leases	439		2		—		441		—		441
Interest expense	584		57		44		685		(17)		668
Provision for credit losses	(67)		1		7		(59)		—		(59)
Third Quarter 2022
Total revenue	$	2,015	$	188	$	100	$	2,303	$	—	$	2,303
Income before income taxes	394		74		24		492		97		589
Depreciation on vehicles subject to operating leases	588		(9)		—		579		—		579
Interest expense	792		52		47		891		(40)		851
Provision for credit losses	42		(12)		9		39		—		39
First Nine Months 2021
Total revenue	$	6,808	$	687	$	336	$	7,831	$	—	$	7,831
Income before income taxes	3,383		220		89		3,692		(30)		3,662
Depreciation on vehicles subject to operating leases	1,185		15		—		1,200		—		1,200
Interest expense	1,857		195		129		2,181		(29)		2,152
Provision for credit losses	(284)		(6)		25		(265)		—		(265)
Net finance receivables and net investment in operating leases (a)	92,955		18,396		5,112		116,463		—		116,463
Total assets	108,917		21,163		5,988		136,068		—		136,068
First Nine Months 2022
Total revenue	$	6,073	$	604	$	300	$	6,977	$	—	$	6,977
Income before income taxes	1,840		256		(148)		1,948		298		2,246
Depreciation on vehicles subject to operating leases	1,673		(30)		—		1,643		—		1,643
Interest expense	1,998		148		141		2,287		(168)		2,119
Provision for credit losses	(82)		(17)		18		(81)		—		(81)
Net finance receivables and net investment in operating leases (a)	93,930		16,454		5,088		115,472		—		115,472
Total assets	102,916		19,282		5,720		127,918		—		127,918

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