Segment Information

3 Months Ended

Mar. 31, 2023

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. Our 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.

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.

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.

Key financial information for our business segments for the periods ended or at March 31 was as follows (in millions):

	United States and Canada		Europe		All Other		Total Segments		Unallocated Other (a)		Total
First Quarter 2022
Total revenue	$	2,029	$	195	$	102	$	2,326	$	—	$	2,326
Income before income taxes	766		76		(164)		678		76		754
Depreciation on vehicles subject to operating leases	526		(11)		—		515		—		515
Interest expense	558		48		48		654		(43)		611
Provision for/(Benefit from) credit losses	(67)		(3)		6		(64)		—		(64)
Net finance receivables and net investment in operating leases	93,955		17,991		5,449		117,395		—		117,395
Total assets	106,762		20,633		6,182		133,577		—		133,577
First Quarter 2023
Total revenue	$	2,170	$	284	$	102	$	2,556	$	—	$	2,556
Income before income taxes	273		78		22		373		(70)		303
Depreciation on vehicles subject to operating leases	557		2		—		559		—		559
Interest expense	1,195		130		51		1,376		16		1,392
Provision for/(Benefit from) credit losses	63		4		10		77		—		77
Net finance receivables and net investment in operating leases	98,659		20,225		4,943		123,827		—		123,827
Total assets	109,955		23,355		5,622		138,932		—		138,932