Ally Bank 2012 Annual Report Download - page 172

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The following table summarizes derivative instruments used in cash flow and net investment hedge accounting relationships.
Year ended December 31, ($ in millions)2012 2011 2010
Cash flow hedges
Interest rate contracts
Gain reclassified from accumulated other comprehensive income to interest on long-term
debt $ 1 $ — $ —
(Loss) gain recorded directly to interest on long-term debt (7) 5 —
Total interest on long-term debt $ (6) $ 5 $ —
(Loss) gain recognized in other comprehensive income $ (7) $ (1) $ 4
Net investment hedges
Foreign exchange contracts
(Loss) gain reclassified from accumulated other comprehensive income to other income,
net of losses $ (1) $ (8) $ 12
Loss recorded directly to other income, net of losses (a) —(3) (18)
Total other income, net of losses $ (1) $ (11) $ (6)
(Loss) gain recognized in other comprehensive income (b) $ (270) $ 173 $ (183)
(a) The amounts represent the forward points excluded from the assessment of hedge effectiveness.
(b) The amounts represent the effective portion of net investment hedges. There are offsetting amounts recognized in accumulated other comprehensive
income related to the revaluation of the related net investment in foreign operations. There were gains of $285 million, losses of $237 million, and gains
of $187 million for the years ended December 31, 2012, 2011, and 2010, respectively.
23. Income Taxes
The following table summarizes income (loss) from continuing operations before income tax expense.
Year ended December 31, ($ in millions) 2012 2011 2010
U.S. (loss) income $ (773) $ (834) $ 443
Non-U.S. income (loss) 18 (117) (51)
(Loss) income from continuing operations before income tax expense $ (755) $ (951) $ 392
The significant components of income tax expense from continuing operations were as follows.
Year ended December 31, ($ in millions) 2012 2011 2010
Current income tax (benefit) expense
U.S. federal $ — $ 18 $ 23
Foreign (24) 26 36
State and local 10 12 58
Total current (benefit) expense (14) 56 117
Deferred income tax (benefit) expense
U.S. federal (1,058) — (6)
Foreign 25 (5) —
State and local (237) — (7)
Total deferred benefit (1,270) (5) (13)
Total income tax (benefit) expense from continuing operations $ (1,284) $ 51 $ 104
Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10-K