Ally Bank 2012 Annual Report Download - page 188

186
The following table provides the aggregate fair value and the aggregate unpaid principal balance for the fair value option-elected loans
and long-term debt instruments.
2012 2011
December 31, ($ in millions)
Unpaid
principal
balance Fair value (a)
Unpaid
principal
balance Fair value (a)
Assets
Mortgage loans held-for-sale, net
Total loans $ 2,416 $ 2,490 $ 3,766 $ 3,919
Nonaccrual loans 47 25 54 27
Loans 90+ days past due (b) 36 19 53 27
Consumer mortgage finance receivables and loans, net
Total loans — — 2,436 835
Nonaccrual loans (c) — — 506 209
Loans 90+ days past due (b) (c) — — 362 163
Liabilities
Long-term debt
On-balance sheet securitization debt $ — $ — $ (2,559) $ (830)
Accrued expenses and other liabilities
Loan repurchase liabilities — — (57) (29)
(a) Excludes accrued interest receivable.
(b) Loans 90+ days past due are also presented within the nonaccrual loan balance and the total loan balance; however, excludes government-insured loans
that are still accruing interest.
(c) The fair value of consumer mortgage finance receivables and loans is calculated on a pooled basis; therefore, we allocated the fair value of nonaccrual
loans and loans 90+ days past due to individual loans based on the unpaid principal balances. For further discussion regarding the pooled basis, refer to
the previous section of this note titled Consumer mortgage finance receivables and loans, net.
Fair Value of Financial Instruments
The following table presents the carrying and estimated fair value of financial instruments, except for those recorded at fair value on a
recurring basis presented in the previous section of this note titled Recurring Fair Value. When possible, we use quoted market prices to
determine fair value. Where quoted market prices are not available, the fair value is internally derived based on appropriate valuation
methodologies with respect to the amount and timing of future cash flows and estimated discount rates. However, considerable judgment is
required in interpreting market data to develop estimates of fair value, so the estimates are not necessarily indicative of the amounts that could
be realized or would be paid in a current market exchange. The effect of using different market assumptions or estimation methodologies
could be material to the estimated fair values. Fair value information presented herein was based on information available at December 31,
2012 and 2011.
2012 2011
Estimated fair value
December 31, ($ in millions) Carrying
value Level 1 Level 2 Level 3 Total Carrying
value Estimated fair value
Financial assets
Loans held-for-sale, net (a) $ 2,576 $ — $ 2,490 $ 86 $ 2,576 $ 8,557 $ 8,674
Finance receivables and loans, net (a) 97,885 — — 98,907 98,907 113,252 113,576
Nonmarketable equity investments 303 — 272 34 306 419 423
Financial liabilities
Deposit liabilities $ 47,915 $ — $ — $ 48,752 $ 48,752 $ 45,050 $ 45,696
Short-term borrowings 7,461 6 — 7,454 7,460 7,680 7,622
Long-term debt (a)(b) 74,882 — 36,018 42,533 78,551 93,525 92,142
(a) Includes financial instruments carried at fair value due to fair value option elections. Refer to the previous section of this note titled Fair Value Option for
Financial Assets and Liabilities for further information about the fair value elections.
(b) The carrying value includes deferred interest for zero-coupon bonds of $321 million and $640 million at December 31, 2012, and 2011, respectively.
The following describes the methodologies and assumptions used to determine fair value for the significant classes of financial
instruments. In addition to the valuation methods discussed below, we also followed guidelines for determining whether a market was not
Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10-K