Ally Bank 2011 Annual Report Download - page 29

Table of Contents
Ally Financial Inc. • Form 10−K
Recently, the FASB has proposed new financial accounting standards, and has many active projects underway, that could materially affect our
reported revenues, profitability, or financial condition. These proposed standards or projects include the potential for significant changes in the accounting
for financial instruments (including loans, deposits, and debt) and the accounting for leases, among others. It is possible that any changes, if enacted, could
adversely affect our reported revenues, profitability, or financial condition.
The soundness of other financial institutions could adversely affect us.
Financial services institutions are interrelated as a result of trading, clearing, counterparty, or other relationships. We have exposure to different
counterparties, and we routinely execute transactions with counterparties in the financial services industry, including brokers and dealers, commercial
banks, investment banks, and other institutions. Many of these transactions expose us to credit risk in the event of default of our counterparty.
Our inability to maintain relationships with dealers could have an adverse effect on our business, results of operations, and financial condition.
Our business depends on the continuation of our relationships with our customers, particularly the automotive dealers with whom we do business. If
we are not able to maintain existing relationships with key automotive dealers or if we are not able to develop new relationships for any reason, including if
we are not able to provide services on a timely basis or offer products that meet the needs of the dealers, our business, results of operations, and financial
condition could be adversely affected.
Adverse economic conditions or changes in laws in states in which we have customer concentrations may negatively affect our operating results and
financial condition.
We are exposed to consumer loan portfolio concentration in California and Texas and consumer mortgage loan concentration in California, Florida,
and Michigan. Factors adversely affecting the economies and applicable laws in these states could have an adverse effect on our business, results of
operations and financial position.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
Our principal corporate offices are located in Detroit, Michigan; New York, New York; and Charlotte, North Carolina. In Detroit, we lease
approximately 247,000 square feet from GM pursuant to a lease agreement expiring in November 2016. In New York, we lease approximately
35,000 square feet of office space under a lease that expires in July 2015. In Charlotte, we lease approximately 133,000 square feet of office space under a
lease expiring in December 2015.
The primary offices for our Global Automotive Services operations are located in Detroit, Michigan, and Southfield, Michigan. The primary office for
our North American Automotive Finance operations is located in Detroit, Michigan, and is included in the totals referenced above. Our International
Automotive Finance operations leased space in 22 countries totaling approximately 375,000 square feet. The largest location is in the United Kingdom with
office space under lease of approximately 76,000 square feet. The primary office for our U.S. Insurance operations is located in Southfield, Michigan, where
we lease approximately 71,000 square feet of office space under leases expiring in April 2016. Our Insurance operations also have significant leased offices
in Mexico.
The primary offices for our Mortgage operations are located in Fort Washington, Pennsylvania, and Minneapolis, Minnesota. In Fort Washington, we
lease approximately 450,000 square feet of office space pursuant to a lease that expires in November 2019. In Minneapolis, we lease approximately
60,000 square feet of office space expiring in March 2014. Our Mortgage operations also have significant leased offices in Texas and California.
In addition to the properties described above, we lease additional space throughout the United States and in other countries in which we have
significant operations, including Canada, Germany, and Brazil. We believe our facilities are adequate for us to conduct our present business activities.
Item 3. Legal Proceedings
Refer to Note 31 to the Consolidated Financial Statements for a discussion related to our legal proceedings.
Item 4. Mine Safety Disclosures
Not applicable.
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