Segment Information

6 Months Ended

Jun. 30, 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.

NOTE 12. SEGMENT INFORMATION (Continued)

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		Total
Second Quarter 2022
Total revenue	$	2,029	$	221	$	98	$	2,348	$	—	$	2,348
Income before income taxes	680		106		(8)		778		125		903
Depreciation on vehicles subject to operating leases	559		(10)		—		549		—		549
Interest expense	648		48		46		742		(85)		657
Provision for/(Benefit from) credit losses	(57)		(2)		3		(56)		—		(56)
Second Quarter 2023
Total revenue	$	2,305	$	344	$	106	$	2,755	$	—	$	2,755
Income before income taxes	271		113		27		411		(30)		381
Depreciation on vehicles subject to operating leases	551		4		—		555		—		555
Interest expense	1,258		162		57		1,477		53		1,530
Provision for/(Benefit from) credit losses	36		(2)		6		40		—		40
First Half 2022
Total revenue	$	4,058	$	416	$	200	$	4,674	$	—	$	4,674
Income before income taxes	1,446		182		(172)		1,456		201		1,657
Depreciation on vehicles subject to operating leases	1,085		(21)		—		1,064		—		1,064
Interest expense	1,206		96		94		1,396		(128)		1,268
Provision for/(Benefit from) credit losses	(124)		(5)		9		(120)		—		(120)
Net finance receivables and net investment in operating leases	94,291		16,212		5,124		115,627		—		115,627
Total assets	103,289		19,158		5,803		128,250		—		128,250
First Half 2023
Total revenue	$	4,475	$	628	$	208	$	5,311	$	—	$	5,311
Income before income taxes	544		191		49		784		(100)		684
Depreciation on vehicles subject to operating leases	1,108		6		—		1,114		—		1,114
Interest expense	2,453		292		108		2,853		69		2,922
Provision for/(Benefit from) credit losses	99		2		16		117		—		117
Net finance receivables and net investment in operating leases	100,626		20,546		4,902		126,074		—		126,074
Total assets	114,114		24,245		5,431		143,790		—		143,790