Ally Bank 2014 Annual Report Download - page 145

Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10-K
133
Balance Sheet Presentation
The following table summarizes the fair value amounts of derivative instruments reported on our Consolidated Balance Sheet. The fair
value amounts are presented on a gross basis, are segregated by derivatives that are designated and qualifying as hedging instruments or those
that are not, and are further segregated by type of contract within those two categories. The notional amount is not recorded on the balance
sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments.
2014 2013
Derivative contracts in a
Notional
amount
Derivative contracts in a
Notional
amountDecember 31, ($ in millions)
receivable
position (a)
payable
position (b)
receivable
position (a)
payable
position (b)
Derivatives qualifying for hedge accounting
Interest rate contracts
Swaps (c) $ 118 $ 7 $ 18,554 $ 204 $ 169 $ 21,606
Foreign exchange contracts
Forwards — — 210 3 — 326
Total derivatives qualifying for hedge accounting 118 7 18,764 207 169 21,932
Economic hedges
Interest rate contracts
Swaps 40 65 11,979 36 44 13,613
Futures and forwards 4 2 18,886 11 3 29,836
Written options — 94 14,823 — 94 11,132
Purchased options 94 — 15,159 95 — 22,962
Total interest rate risk 138 161 60,847 142 141 77,543
Foreign exchange contracts
Swaps — 74 1,210 12 1 1,379
Futures and forwards 5 4 304 1 1 330
Written options —————17
Purchased options —————17
Total foreign exchange risk 5 78 1,514 13 2 1,743
Equity contracts
Forwards —374 ———
Written options —31 —53
Purchased options 2—————
Total equity risk 2675 —53
Total economic hedges 145 245 62,436 155 148 79,289
Total derivatives $ 263 $ 252 $ 81,200 $ 362 $ 317 $ 101,221
(a) Derivative contracts in a receivable position are classified as other assets on the Consolidated Balance Sheet, and includes accrued interest of $50 million
and $120 million at December 31, 2014 and 2013, respectively.
(b) Derivative contracts in a liability position are classified as accrued expenses and other liabilities on the Consolidated Balance sheet, and includes accrued
interest of $17 million and $12 million at December 31, 2014 and 2013, respectively.
(c) Includes fair value hedges consisting of receive-fixed swaps on fixed-rate debt obligations with $97 million and $196 million in a receivable position, $1
million and $163 million in a payable position, and of a $4.7 billion and $8.5 billion notional amount at December 31, 2014 and December 31, 2013,
respectively. Of the hedge notional amount at December 31, 2014, $2.7 billion is associated with debt maturing in five or more years. Other fair value
hedges include pay-fixed swaps on portfolios of held-for-investment automotive loan assets with $21 million and $9 million in a receivable position, $6
million and $5 million in a payable position, and of a $13.9 billion and $12.6 billion notional amount at December 31, 2014 and December 31, 2013,
respectively. Also includes cash flow hedges consisting of pay-fixed swaps on floating rate debt obligations with $1 million in a payable position, and of a
$495 million notional amount at December 31, 2013.