Ally Bank 2014 Annual Report Download - page 155

Download and view the complete annual report

Please find page 155 of the 2014 Ally Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 188

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188

Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10-K
143
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
Fair value at
December 31,
2014
Net unrealized
gains included
in earnings still
held at
December 31,
2014
($ in millions)
Fair value
at
January 1,
2014
included
in
earnings
included
in OCI Purchases Sales Issuances Settlements
Transfers
into level 3
Transfers
out of
level 3
Assets
Loans held-for-sale $ —$—$—$—$—$—$ —$ 3$—$ 3$ 1
Other assets
Interests retained in
financial asset sales 100 13 (a) — — — — (66)—— 47 —
Interest rate derivative
contracts, net (1) — — — — — (2)— 3 — —
Total assets $ 99$13$—$—$—$—$ (68)$ 3$ 3$ 50$ 1
(a) Reported as other income, net of losses, in the Consolidated Statement of Income.
Level 3 recurring fair value measurements
Fair value at
January 1,
2013
Net realized/unrealized
gains (losses)
Purchases Sales Issuances Settlements
Transfers out of
level 3
Fair value at
December 31,
2013
Net unrealized
gains included
in earnings
still held at
December 31,
2013
($ in millions)
included
in
earnings
included
in OCI
Assets
Mortgage servicing rights $ 952 $ (101) (a) $ — $ — $ (911)$ 60 $ — $ — $ — $ —
Other assets
Interests retained in financial
asset sales 154 23 (b) — — — — (77) — 100 —
Derivative contracts, net (c)
Interest rate 47 (52) (c) — — — — 4 — (1)—
Foreign currency (2) 11 (c) — — — — 2 (11) — 11 (c)
Total derivative contracts in a
receivable position, net 45 (41) — — — — 6 (11)(1)11
Total assets $ 1,151 $ (119) $ — $ — $ (911) $ 60 $ (71)$ (11) $ 99 $ 11
(a) Fair value adjustment was reported as servicing-asset valuation and hedge activities, net, in the Consolidated Statement of Income.
(b) Reported as other income, net of losses, in the Consolidated Statement of Income.
(c) Refer to Note 22 for information related to the location of the gains and losses on derivative instruments in the Consolidated Statement of Income.
Nonrecurring Fair Value
We may be required to measure certain assets and liabilities at fair value from time to time. These periodic fair value measures typically
result from the application of lower-of-cost or fair value accounting or certain impairment measures. These items would constitute
nonrecurring fair value measures.