Segment Information

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

We report segment information consistent with the way our chief operating decision maker (”CODM”), our President and Chief Executive Officer, evaluates the operating results and performance of the Company. 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 reportable segments are: the United States and Canada, Europe, and All Other. Our All Other reportable segment includes our operations in China, Mexico, and our joint venture in South Africa, as well as wind down activities in Brazil, Argentina, and India.

We report segment earnings 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. Our CODM reviews segment earnings on an income before income taxes basis to evaluate performance and allocate resources, predominately in the budgeting, planning, and forecasting processes.

Key operating data 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		Total
First Quarter 2024
Total revenue	$	2,616	$	371	$	119	$	3,106	$	—	$	3,106
Total revenue less:
Depreciation on vehicles subject to operating leases	603		7		—		610		—		610
Interest expense	1,460		221		69		1,750		98		1,848
Provision for credit losses	70		7		11		88		—		88
Other segment items (a)	220		64		19		303		(69)		234
Income before income taxes	$	263	$	72	$	20	$	355	$	(29)	$	326
Other segment disclosures:
Net finance receivables and net investment in operating leases	$	110,674	$	19,981	$	4,819	$	135,474	$	—	$	135,474
Total assets	120,368		23,991		5,350		149,709		—		149,709
First Quarter 2025
Total revenue	$	2,949	$	372	$	99	$	3,420	$	—	$	3,420
Total revenue less:
Depreciation on vehicles subject to operating leases	598		7		—		605		—		605
Interest expense	1,481		195		53		1,729		61		1,790
Provision for credit losses	112		9		19		140		—		140
Other segment items (a)	287		75		24		386		(81)		305
Income before income taxes	$	471	$	86	$	3	$	560	$	20	$	580
Other segment disclosures:
Net finance receivables and net investment in operating leases	$	117,362	$	20,472	$	3,721	$	141,555	$	—	$	141,555
Total assets	127,299		23,478		4,146		154,923		—		154,923