Ally Bank 2012 Annual Report Download - page 182

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The following tables present the reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis. We often
economically hedge the fair value change of our assets or liabilities with derivatives and other financial instruments. The Level 3 items
presented below may be hedged by derivatives and other financial instruments that are classified as Level 1 or Level 2. Thus, the following
tables do not fully reflect the impact of our risk management activities.
Level 3 recurring fair value measurements
Net realized/unrealized
gains (losses)
Fair value
at Dec. 31,
2012
Net
unrealized
gains (losses)
included in
earnings still
held at
Dec. 31,
2012
($ in millions)
Fair value
at Jan. 1,
2012
included
in
earnings included in OCI Purchases Sales Issuances Settlements
Transfers out
due to
deconsolidation
or
discontinued
operations (a)
Assets
Trading assets
(excluding
derivatives)
Mortgage-backed
residential
securities $ 33 $ 2 (b) $ — $ — $ — $ — $ (4) $ (31) $ — $ 4 (b)
Investment securities
Available-for-sale
debt securities
Asset-backed 62 19 (12) — (69) — — — — —
Mortgage loans held-
for-sale, net (c) 30 — — 12 — — (11)(31) — —
Consumer mortgage
finance receivables
and loans, net (c) 835 121 (c) — — (245) (d) — (124)(587) — 51 (c)
Mortgage servicing
rights 2,519 (677) (e) — — — 240 — (1,130) 952 (677) (e)
Other assets
Interests retained in
financial asset
sales 231 46 (f) — — — — (123) — 154 —
Derivative contracts,
net (g)
Interest rate 71 (78) (h) — — — — 53 1 47 1 (h)
Foreign currency 16 (32) (h) — — — — — 14 (2)(50) (h)
Total derivative
contracts in a
receivable
position, net 87 (110) — — — — 53 15 45 (49)
Total assets $ 3,797 $ (599) $ (12) $ 12 $ (314) $ 240 $ (209) $ (1,764) $ 1,151 $ (671)
Liabilities
Long-term debt
On-balance sheet
securitization
debt (c) $ (830) $ (115) (c) $ — $ — $ — $ — $ 389 $ 556 $ — $ (62) (c)
Accrued expenses and
other liabilities
Loan repurchase
liabilities (c) (29) — — (11) — — 10 30 — —
Total liabilities $ (859) $ (115) $ — $ (11) $ — $ — $ 399 $ 586 $ — $ (62)
(a) Represents the amounts transferred out of Level 3 due to the deconsolidation of ResCap or discontinued operations. Refer to Note 1 for additional information related to
ResCap. Refer to Note 2 for additional information related to discontinued operations.
(b) The fair value adjustment was reported as other income, net of losses, and the related interest was reported as interest on trading assets in the Consolidated Statement of Income.
(c) Carried at fair value due to fair value option elections. Refer to the next section of this note titled Fair Value Option for Financial Assets and Liabilities for the location of the
gains and losses in the Consolidated Statement of Income.
(d) Represents the sale of consumer mortgage finance receivable and loans sold as part of the sale of a business line during 2012.
(e) Fair value adjustment was reported as servicing-asset valuation and hedge activities, net, in the Consolidated Statement of Income.
(f) Reported as other income, net of losses, in the Consolidated Statement of Income.
(g) Includes derivatives classified as trading.
(h) Refer to Note 22 for information related to the location of the gains and losses on derivative instruments in the Consolidated Statement of Income.
Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10-K