Ally Bank 2011 Annual Report Download - page 207

Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10−K
Nonrecurring Fair Value
We may be required to measure certain assets and liabilities at fair value from time to time. These periodic fair value measures typically result from
the application of lower−of−cost or fair value accounting or certain impairment measures. These items would constitute nonrecurring fair value measures.
The following tables display the assets and liabilities measured at fair value on a nonrecurring basis.
Nonrecurring
fair value measurements Lower−of−cost or
fair value
or valuation
reserve
allowance
Total losses
included in
earnings for
the year ended
December 31, 2011 ($ in millions) Level 1 Level 2 Level 3 Total
Assets
Mortgage loans held−for−sale, net (a) $ — $ — $ 479 $ 479 $ (60) n/m (b)
Commercial finance receivables and loans, net (c)
Automobile — — 310 310 (30) n/m (b)
Mortgage — 1 14 15 (10) n/m (b)
Other — — 20 20 (10) n/m (b)
Total commercial finance receivables and loans, net — 1 344 345 (50) n/m (b)
Other assets
Property and equipment — 13 — 13 n/m (d) $ (8)
Repossessed and foreclosed assets (e) — 32 27 59 (15) n/m (b)
Total assets $ — $ 46 $ 850 $ 896 $ (125) $ (8)
n/m = not meaningful
(a) Represents loans held−for−sale that are required to be measured at the lower−of−cost or fair value. The table above includes only loans with fair values below cost during 2011. The
related valuation allowance represents the cumulative adjustment to fair value of those specific assets.
(b) We consider the applicable valuation or loan loss allowance to be the most relevant indicator of the impact on earnings caused by the fair value measurement. Accordingly, the table
above excludes total gains and losses included in earnings for these items. The carrying values are inclusive of the respective valuation or loan loss allowance.
(c) Represents the portion of the portfolio specifically impaired during 2011. The related valuation allowance represents the cumulative adjustment to fair value of those specific
receivables.
(d) The total gain (loss) included in earnings is the most relevant indicator of the impact on earnings.
(e) The allowance provided for repossessed and foreclosed assets represents any cumulative valuation adjustment recognized to adjust the assets to fair value.
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