Ally Bank 2012 Annual Report Download - page 125

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prepared in accordance with U.S. GAAP and International Financial Reporting Standards (IFRS). The ASU must be applied prospectively.
The adoption did not have a material impact to our consolidated financial condition or results of operations.
Intangibles-Goodwill and Other - Testing Goodwill for Impairment (ASU 2011-08)
As of January 1, 2012, we adopted ASU 2011-08, which amends ASC 350, Intangibles-Goodwill and Other. This ASU permits the
option of performing a qualitative assessment before calculating the fair value of a reporting unit in step 1 of the goodwill impairment test. If
it is determined, on the basis of qualitative factors, that the fair value of a reporting unit is more likely than not more than the carrying
amount, the two-step impairment test would not be required. Otherwise, further evaluation under the existing two-step framework would be
required. The adoption did not have a material impact to our consolidated financial condition or results of operations.
Recently Issued Accounting Standards
Balance Sheet - Disclosures about Offsetting Assets and Liabilities (ASU 2011-11 and ASU 2013-01)
In December 2011, the Financial Accounting Standards Board (FASB) issued ASU 2011-11, which amends ASC 210, Balance Sheet.
This ASU contains new disclosure requirements regarding the nature of an entity's rights of setoff and related arrangements associated with its
financial instruments and derivative instruments. In addition, in January 2013, the FASB issued ASU 2013-01, which simply clarified the
scope of ASU 2011-11. The new disclosures will give financial statement users information about both gross and net exposures. ASU 2011-11
and ASU 2013-01 are effective for us on January 1, 2013, and retrospective application is required. Since the guidance relates only to
disclosures, adoption is not expected to have a material effect on our consolidated financial condition or results of operations.
Comprehensive Income - Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU
2013-02)
In February, 2013 the FASB issued ASU 2013-02, which amends ASC 220, Comprehensive Income. The ASU contains new
requirements related to the presentation and disclosure of items that are reclassified out of other comprehensive income. The new
requirements will give financial statement users a more comprehensive view of items that are reclassified out of other comprehensive income.
ASU 2013-02 is effective for us on January 1, 2013, and is to be applied prospectively. Since the guidance relates only to presentation and
disclosure of information, adoption is not expected to have a material effect on our consolidated financial condition or results of operations.
2. Discontinued and Held-for-sale Operations
Discontinued Operations
We classify operations as discontinued when operations and cash flows will be eliminated from our ongoing operations and we do not
expect to retain any significant continuing involvement in their operations after the respective sale transactions. For all periods presented, all
of the operating results for these discontinued operations have been removed from continuing operations and presented separately as
discontinued operations, net of tax, in the Consolidated Statement of Income. The Notes to the Consolidated Financial Statements have been
adjusted to exclude discontinued operations unless otherwise noted.
Select Mortgage Operations
During the second quarter of 2012, we sold the Canadian mortgage operations of ResMor Trust. During 2010, we sold certain
international operations. These operations included residential mortgage loan origination, acquisition, servicing, asset management, sale, and
securitizations in the United Kingdom and continental Europe.
Select Insurance Operations
During the fourth quarter of 2011, we committed to sell our U.K.-based operations that provide vehicle service contracts and insurance
products in Europe and Latin America. On February 28, 2013, we sold our U.K.-based operations to a wholly owned subsidiary of AmTrust
Financial Services, Inc. Additionally, during the fourth quarter of 2012, we committed to sell our Mexican insurance business, ABA Seguros,
to the ACE Group. In connection with the classification of these Insurance operations as held-for-sale we recognized a pretax loss of $55
million during the year ended December 31, 2012. The loss represents the impairment recognized to present the operations at the lower-of-
cost or fair value. The fair value was determined using sales agreements with third-party purchasers (a Level 2 fair value input). We expect to
complete the ABA Seguros sale during the first half of 2013.
During the second quarter of 2011, we completed the sale of our U.K. consumer property and casualty insurance business. During 2010,
we completed the sale of our U.S. consumer property and casualty insurance business.
Select Automotive Finance Operations
During the fourth quarter of 2012, we committed to sell our Canadian automotive finance operations, Ally Credit Canada Limited, and
ResMor Trust (Ally Canada) to Royal Bank of Canada. On February 1, 2013, we completed the sale of Ally Canada. Refer to Note 31 for
more information regarding the sale. Additionally, during the fourth quarter of 2012, we committed to sell our automotive finance operations
in Europe and Latin America to General Motors Financial Company, Inc. (GM Financial). On the same date, we entered into an agreement
with GM Financial to acquire our 40% interest in a motor vehicle finance joint venture in China. No impairment was recognized to present
the operations at the lower-of-cost or fair value. We expect to complete the sales by region during 2013.
Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10-K