Segment Information

6 Months Ended

Jun. 30, 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.

NOTE 11. SEGMENT INFORMATION (Continued)

Key operating data 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 2024
Total revenue	$	2,785	$	381		$	117	$	3,283	$	—	$	3,283
Total revenue less:
Depreciation on vehicles subject to operating leases	606		7			—		613		—		613
Interest expense	1,519		216			66		1,801		96		1,897
Provision for credit losses	70		5			20		95		—		95
Other segment items (a)	292		65			21		378		(43)		335
Income before income taxes	$	298	$	88		$	10	$	396	$	(53)	$	343
Second Quarter 2025
Total revenue	$	3,014	$	378		$	94	$	3,486	$	—	$	3,486
Total revenue less:
Depreciation on vehicles subject to operating leases	593		10			—		603		—		603
Interest expense	1,476		195			51		1,722		37		1,759
Provision for credit losses	88		15			11		114		—		114
Other segment items (a)	313		163			15		491		(126)		365
Income before income taxes	$	544	$	(5)	(b)	$	17	$	556	$	89	$	645
First Half 2024
Total revenue	$	5,401	$	752		$	236	$	6,389	$	—	$	6,389
Total revenue less:
Depreciation on vehicles subject to operating leases	1,209		14			—		1,223		—		1,223
Interest expense	2,979		437			135		3,551		194		3,745
Provision for credit losses	140		12			31		183		—		183
Other segment items (a)	512		129			40		681		(112)		569
Income before income taxes	$	561	$	160		$	30	$	751	$	(82)	$	669
Other segment disclosures:
Net finance receivables and net investment in operating leases	$	113,727	$	19,425		$	4,569	$	137,721	$	—	$	137,721
Total assets	122,702		22,784			5,141		150,627		—		150,627
First Half 2025
Total revenue	$	5,963	$	750		$	193	$	6,906	$	—	$	6,906
Total revenue less:
Depreciation on vehicles subject to operating leases	1,191		17			—		1,208		—		1,208
Interest expense	2,957		390			104		3,451		98		3,549
Provision for credit losses	200		24			30		254		—		254
Other segment items (a)	600		238			39		877		(207)		670
Income before income taxes	$	1,015	$	81	(b)	$	20	$	1,116	$	109	$	1,225
Other segment disclosures:
Net finance receivables and net investment in operating leases	$	117,578	$	22,473		$	3,672	$	143,723	$	—	$	143,723
Total assets	128,747		25,879			4,116		158,742		—		158,742

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(a)Other items consists of Operating expenses, Insurance expenses, and Other income/(loss), net.

(b)Includes an accrual of $88 million related to an industrywide review of historical U.K. discretionary dealer commissions.