Notes to Consolidated Financial Statements
Note 22. Segment and Geographic Information
Operating segments are defined as components of an enterprise that engage in business activity from which revenues are earned and expenses incurred for which discrete financial information is available that is evaluated regularly by the chief operating decision makers in deciding how to allocate resources and in assessing performance. Financial information for our reportable operating segments is summarized as follows:
Automotive Finance Operations(a) |
||||||||||||||||||
Year ended December 31, ($ in millions) |
North American Operations |
Inter- national Operations |
(b) |
ResCap |
Insurance |
Other |
(c) |
Consoli- dated |
||||||||||
2006 |
||||||||||||||||||
Net financing revenue before provision for credit losses |
$ |
4,402 |
$ |
1,613 |
$ |
958 |
$ |
– |
$ |
570 |
$ |
7,543 |
||||||
Provision for credit losses |
(425 |
) |
(86 |
) |
(1,334 |
) |
– |
(155 |
) |
(2,000 |
) |
|||||||
Other revenue |
3,065 |
564 |
3,360 |
5,616 |
15 |
12,620 |
||||||||||||
Total net financing revenue and other income |
7,042 |
2,091 |
2,984 |
5,616 |
430 |
18,163 |
||||||||||||
Impairment of goodwill and other intangible assets |
– |
– |
– |
– |
840 |
840 |
||||||||||||
Other noninterest expense |
6,405 |
1,671 |
2,568 |
3,990 |
461 |
15,095 |
||||||||||||
Income (loss) before income tax expense |
637 |
420 |
416 |
1,626 |
(871 |
) |
2,228 |
|||||||||||
Income tax (benefit) expense |
(229 |
) |
112 |
(289 |
) |
499 |
10 |
103 |
||||||||||
Net income (loss) |
$ |
866 |
$ |
308 |
$ |
705 |
$ |
1,127 |
$ |
(881 |
) |
$ |
2,125 |
|||||
Total assets |
$ |
127,822 |
$ |
25,588 |
$ |
130,569 |
$ |
13,424 |
$ |
(9,964 |
$ |
287,439 |
||||||
2005 |
||||||||||||||||||
Net financing revenue before provision for credit losses |
$ |
4,216 |
$ |
1,563 |
$ |
1,352 |
$ |
– |
$ |
1,075 |
$ |
8,206 |
||||||
Provision for credit losses |
(313 |
) |
(102 |
) |
(626 |
) |
– |
(33 |
) |
(1,074 |
) |
|||||||
Other revenue |
2,815 |
709 |
3,508 |
4,259 |
664 |
11,955 |
||||||||||||
Total net financing revenue and other income |
6,718 |
2,170 |
4,234 |
4,259 |
1,706 |
19,087 |
||||||||||||
Impairment of goodwill and other intangible assets |
– |
– |
– |
– |
712 |
712 |
||||||||||||
Other noninterest expense |
5,987 |
1,604 |
2,607 |
3,627 |
1,071 |
14,896 |
||||||||||||
Income before income tax expense |
731 |
566 |
1,627 |
632 |
(77 |
) |
3,479 |
|||||||||||
Income tax expense (benefit) |
259 |
158 |
606 |
215 |
(41 |
) |
1,197 |
|||||||||||
Net income (loss) |
$ |
472 |
$ |
408 |
$ |
1,021 |
$ |
417 |
$ |
(36 |
) |
$ |
2,282 |
|||||
Total assets |
$ |
165,139 |
$ |
27,285 |
$ |
118,608 |
$ |
12,624 |
$ |
(3,099 |
) |
$ |
320,557 |
|||||
2004 |
||||||||||||||||||
Net financing revenue before provision for credit losses |
$ |
5,838 |
$ |
1,602 |
$ |
2,429 |
$ |
– |
$ |
797 |
$ |
10,666 |
||||||
Provision for credit losses |
(814 |
) |
(145 |
) |
(978 |
) |
– |
(16 |
) |
(1,953 |
) |
|||||||
Other revenue |
2,239 |
601 |
2,427 |
3,983 |
618 |
9,868 |
||||||||||||
Total net financing revenue and other income |
7,263 |
2,058 |
3,878 |
3,983 |
1,399 |
18,581 |
||||||||||||
Noninterest expense |
5,972 |
1,491 |
2,371 |
3,497 |
994 |
14,325 |
||||||||||||
Income before income tax expense |
1,291 |
567 |
1,507 |
486 |
405 |
4,256 |
||||||||||||
Income tax expense |
365 |
152 |
603 |
157 |
85 |
1,362 |
||||||||||||
Net income |
$ |
926 |
$ |
415 |
$ |
904 |
$ |
329 |
$ |
320 |
$ |
2,894 |
||||||
Total assets |
$ |
192,250 |
$ |
31,291 |
$ |
93,941 |
$ |
11,744 |
$ |
(5,184 |
) |
$ |
324,042 |
|||||
(a) North American Operations consist of automotive financing in the U.S. and Canada and corporate activities. International Operations consist of automotive financing and full service leasing in all other countries and Puerto Rico through March 31, 2006. Beginning April 1, 2006, Puerto Rico is included in North American Operations. |
(b) Amounts includes intra-segment eliminations between the North American Operations and International Operations. |
(c) Represents our Commercial Finance business, Capmark, certain corporate activities and reclassifications and elimination between the reporting segments. The financial results for 2006 reflect our approximately 21% equity interest in Capmark commencing March 23, 2006, while the 2005 financial results represent Capmark as wholly owned. At December 31, 2006, total assets were $5.4 billion for the Commercial Finance business, and ($15.4) billion in reclassifications and eliminations. |
Information concerning principal geographic areas was as follows:
Year ended December 31, ($ in millions) |
Revenue |
(a) |
Long-lived assets |
(b) |
||
2006 |
||||||
Canada |
$ |
2,304 |
$ |
8,447 |
||
Europe |
2,213 |
2,357 |
||||
Latin America |
957 |
138 |
||||
Asia-Pacific |
194 |
201 |
||||
Total foreign |
5,668 |
11,143 |
||||
Total domestic |
12,495 |
13,620 |
||||
Total |
$ |
18,163 |
$ |
24,763 |
||
2005 |
||||||
Canada |
$ |
1,881 |
$ |
7,784 |
||
Europe |
2,285 |
2,740 |
||||
Latin America |
947 |
121 |
||||
Asia-Pacific |
302 |
201 |
||||
Total foreign |
5,415 |
10,846 |
||||
Total domestic |
13,672 |
22,119 |
||||
Total |
$ |
19,087 |
$ |
32,965 |
||
2004 |
||||||
Canada |
$ |
1,552 |
$ |
5,908 |
||
Europe |
2,127 |
2,193 |
||||
Latin America |
768 |
86 |
||||
Asia-Pacific |
309 |
265 |
||||
Total foreign |
4,756 |
8,452 |
||||
Total domestic |
13,825 |
19,475 |
||||
Total |
$ |
18,581 |
$ |
27,927 |
||
(a) Revenue consists of total net financing revenue and other income as presented in our Consolidated Statement of Income. |
(b) Consists of net operating leases assets and net property and equipment. |