Ally Bank 2012 Annual Report Download - page 190

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includes our Commercial Finance Group, certain equity investments, overhead that was previously allocated to operations that have since
been sold or classified as discontinued operations, and reclassifications and eliminations between the reportable operating segments.
We utilize an FTP methodology for the majority of our business operations. The FTP methodology assigns charge rates and credit rates
to classes of assets and liabilities based on expected duration and the LIBOR swap curve plus an assumed credit spread. Matching duration
allocates interest income and interest expense to these reportable segments so their respective results are insulated from interest rate risk. This
methodology is consistent with our ALM practices, which includes managing interest rate risk centrally at a corporate level. The net residual
impact of the FTP methodology is included within the results of Corporate and Other.
The information presented in our reportable operating segments and geographic areas tables that follow are based in part on internal
allocations, which involve management judgment.
Change in Reportable Segment Information
As a result of a change in management's view of our operations, we have changed the presentation of our reportable operating segments
during the year ended December 31, 2012. These changes include the following:
• During the fourth quarter of 2012, we announced that we had reached agreements to sell substantially all of our International
operations. As a result, beginning in the fourth quarter of 2012, we are presenting our continuing Automotive Finance activities
under one reportable operating segment, Automotive Finance operations. Previously our Automotive Finance operations were
presented as two reportable operating segments, North American Automotive Finance operations and International Automotive
Finance operations.
• During the fourth quarter of 2012, we began to allocate certain expenses associated with deposit gathering activities and other
additional costs of holding liquidity to our Automotive Finance and Mortgage operations. These expenses were previously included
within our Corporate and Other activities. Additionally, we began to include overhead that was previously allocated to operations
that have since been sold or moved into discontinued operations within our Corporate and Other activities.
• On May 14, 2012, the Debtors filed for relief under Chapter 11 of the Bankruptcy Code in the United States. As a result of the
bankruptcy filing, ResCap was deconsolidated from our financial statements; and beginning in the second quarter of 2012, we
began presenting our mortgage business activities under one reportable operating segment, Mortgage operations. Previously our
Mortgage operations had been presented as two reportable operating segments, Origination and Servicing operations and Legacy
Portfolio and Other operations. The new presentation is consistent with the organizational alignment of the business and
management's current view of the mortgage business.
Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10-K