Ally Bank 2014 Annual Report Download - page 159

Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10-K
147
Gross
Amounts of
Recognized
Assets/
(Liabilities)
Gross
Amounts
Offset in the
Consolidated
Balance
Sheet
Net Amounts
of Assets/
(Liabilities)
Presented in
the
Consolidated
Balance Sheet
Gross Amounts Not Offset in
the Consolidated Balance
Sheet
December 31, 2013 ($ in millions)
Financial
Instruments Collateral (a)
Net
Amount
Assets
Derivative assets in net asset positions $ 319 $ — $ 319 $ (65) $ (120) $ 134
Derivative assets in net liability positions 43 — 43 (43) — —
Total assets (b) $ 362 $ — $ 362 $ (108) $ (120) $ 134
Liabilities
Derivative liabilities in net liability
positions $ (252) $ — $ (252) $ 43 $ 137 $ (72)
Derivative liabilities in net asset positions (65) — (65) 65 — —
Total derivative liabilities (b) (317) — (317) 108 137 (72)
Securities sold under agreements to
repurchase (c) (1,500) — (1,500) — 1,500 —
Total liabilities $ (1,817) $ — $ (1,817) $ 108 $ 1,637 $ (72)
(a) Financial collateral received/pledged shown as a balance based on the sum of all net asset and liability positions between Ally and each individual
derivative counterparty.
(b) For additional information on derivative instruments and hedging activities, refer to Note 22.
(c) For additional information on securities sold under agreements to repurchase, refer to Note 15.
27. Segment and Geographic Information
Operating segments are defined as components of an enterprise that engage in business activity from which revenues are earned and
expenses incurred for which discrete financial information is available that is evaluated regularly by our chief operating decision maker in
deciding how to allocate resources and in assessing performance.
We report our results of operations on a line-of-business basis through three operating segments: Automotive Finance operations,
Insurance operations, and Mortgage operations, with the remaining activity reported in Corporate and Other. The operating segments are
determined based on the products and services offered, and reflect the manner in which financial information is currently evaluated by
management. The following is a description of each of our reportable operating segments.
Automotive Finance operations — Provides automotive financing services to consumers and automotive dealers. For consumers,
we offer retail automotive financing and leasing for new and used vehicles, and through our commercial automotive financing
operations, we fund dealer purchases of new and used vehicles through wholesale or floorplan financing.
Insurance operations — Offers both consumer financial and insurance products sold primarily through the automotive dealer
channel, and commercial insurance products sold to dealers. As part of our focus on offering dealers a broad range of consumer
financial and insurance products, we provide vehicle service contracts, maintenance coverage, and guaranteed automobile
protection (GAP) products. We also underwrite selected commercial insurance coverages, which primarily insure dealers' vehicle
inventories.
Mortgage operations — Our ongoing Mortgage operations include the management of our held-for-investment and held-for-sale
mortgage portfolios.
Corporate and Other primarily consists of Corporate Finance, centralized corporate treasury activities, such as management of the cash
and corporate investment securities portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, the
amortization of the discount associated with debt issuances and bond exchanges, and the residual impacts of our corporate funds-transfer
pricing (FTP) and treasury asset liability management (ALM) activities. Corporate and Other also includes 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.