Ally Bank 2014 Annual Report Download - page 170

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Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10-K
158
If nonperformance by a customer occurs for letters of credit, we can be liable for payment of the letter of credit to the beneficiary with
our likely recourse being a charge back to the customer or liquidation of the collateral.
Commitments
Financing Commitments
The contractual commitments were as follows.
December 31, ($ in millions) 2014 2013
Commitments to
Provide capital to investees (a) $66
$63
Construction-lending commitments (b) 110 187
Home equity lines of credit (c) 371 388
Unused revolving credit line commitments and other (d) 1,284 1,062
(a) We are committed to contribute capital to certain investees. The fair value of these commitments is considered in the overall valuation of the underlying
assets with which they are associated.
(b) The fair value of these commitments is considered in the overall valuation of the related assets.
(c) We are committed to fund the remaining unused balances on home equity lines of credit.
(d) The unused portion of revolving lines of credit reset at prevailing market rates and, as such, approximate market value.
Revolving credit line commitments contain an element of credit risk. Management reduces its credit risk for unused revolving credit line
commitments by applying the same credit policies in making commitments as it does for extending loans. We typically require collateral as
these commitments are drawn.
Lease Commitments
Future minimum rental payments required under operating leases, primarily for real property, with noncancelable lease terms expiring
after December 31, 2014, are as follows.
Year ended December 31, ($ in millions)
2015 $43
2016 35
2017 21
2018 16
2019 15
2020 and thereafter 26
Total minimum payment required $ 156
Certain of the leases contain escalation clauses and renewal or purchase options. Rental expenses under operating leases were $50
million, $47 million, and $63 million in 2014, 2013, and 2012, respectively.
Contractual Commitments
We have entered into multiple agreements for information technology, voice and communication technology, and related maintenance.
Many of the agreements are subject to variable price provisions, fixed or minimum price provisions, and termination or renewal provisions.
Year ended December 31, ($ in millions)
2015 $38
2016 and 2017 31
Total future payment obligations $69
30. Contingencies and Other Risks
In the normal course of business, we enter into transactions that expose us to varying degrees of risk.
Concentration with GM and Chrysler
The profitability and financial condition of our operations are heavily dependent upon the performance, operations, and prospects of
General Motors Company (GM), Fiat Chrysler Automobiles US LLC (Chrysler), and their dealers. We were previously party to agreements
with each of GM and Chrysler that provided for certain exclusivity privileges related to subvention programs that they offered. Our agreement
with Chrysler expired in April 2013. In addition, our agreement with GM expired effective February 28, 2014. These agreements provided