Segment Information

9 Months Ended

Sep. 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 September 30 was as follows (in millions):

	United States and Canada		Europe		All Other		Total Segments		Unallocated Other		Total
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/(Benefit from) credit losses	42		(12)		9		39		—		39
Third Quarter 2023
Total revenue	$	2,366	$	346	$	116	$	2,828	$	—	$	2,828
Income before income taxes	257		78		21		356		2		358
Depreciation on vehicles subject to operating leases	568		8		—		576		—		576
Interest expense	1,354		185		65		1,604		49		1,653
Provision for/(Benefit from) credit losses	71		4		(1)		74		—		74
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/(Benefit from) credit losses	(82)		(17)		18		(81)		—		(81)
Net finance receivables and net investment in operating leases	93,930		16,454		5,088		115,472		—		115,472
Total assets	102,916		19,282		5,720		127,918		—		127,918
First Nine Months 2023
Total revenue	$	6,841	$	974	$	324	$	8,139	$	—	$	8,139
Income before income taxes	801		269		70		1,140		(98)		1,042
Depreciation on vehicles subject to operating leases	1,676		14		—		1,690		—		1,690
Interest expense	3,807		477		173		4,457		118		4,575
Provision for/(Benefit from) credit losses	170		6		15		191		—		191
Net finance receivables and net investment in operating leases	101,885		19,330		5,112		126,327		—		126,327
Total assets	114,585		23,301		5,665		143,551		—		143,551