Ally Bank 2011 Annual Report Download - page 115

Table of Contents
Management's Discussion and Analysis
Ally Financial Inc. • Form 10−K
Allowance for Loan Losses
The following table presents an analysis of the activity in the allowance for loan losses on finance receivables and loans.
($ in millions) 2011 2010 2009 2008 2007
Balance at January 1, $ 1,873 $ 2,445 $ 3,433 $ 2,755 $ 3,576
Cumulative effect of change in accounting principles (a) — 222 — (616) (1,540)
Charge−offs
Domestic (667) (1,297) (3,380) (2,192) (2,398)
Foreign (213) (349) (633) (347) (293)
Write−downs related to transfers to held−for−sale — — (3,438) — —
Total charge−offs (880) (1,646) (7,451) (2,539) (2,691)
Recoveries
Domestic 227 363 276 219 224
Foreign 100 85 76 71 74
Total recoveries 327 448 352 290 298
Net charge−offs (553) (1,198) (7,099) (2,249) (2,393)
Provision for loan losses 219 442 5,603 3,102 3,038
Discontinued operations — (4) 567 308 29
Other (36) (34) (59) 133 45
Balance at December 31, $ 1,503 $ 1,873 $ 2,445 $ 3,433 $ 2,755
(a) Effect of change in accounting principle due to adoption of ASU 2009−17, Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities.
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