Ally Bank 2012 Annual Report Download - page 179

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credit losses, and discount rates. Fair value option-elected financing securitization debt was classified as Level 3 as a result of the
reliance on significant assumptions and estimates for model inputs. Refer to the section within this note titled Fair Value Option for
Financial Assets and Financial Liabilities for further information about the election. The debt that was not elected under the fair
value option is reported on the balance sheet at cost, net of premiums or discounts and issuance costs.
Recurring Fair Value
The following tables display the assets and liabilities measured at fair value on a recurring basis including financial instruments elected
for the fair value option. We often economically hedge the fair value change of our assets or liabilities with derivatives and other financial
instruments. The tables below display the hedges separately from the hedged items; therefore, they do not directly display the impact of our
risk management activities.
Recurring fair value measurements
December 31, 2012 ($ in millions) Level 1 Level 2 Level 3 Total
Assets
Investment securities
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies $ 697 $ 1,517 $ — $ 2,214
Foreign government 3 300 — 303
Mortgage-backed residential — 6,906 — 6,906
Asset-backed — 2,340 — 2,340
Corporate debt securities — 1,263 — 1,263
Total debt securities 700 12,326 — 13,026
Equity securities (a) 1,152 — — 1,152
Total available-for-sale securities 1,852 12,326 — 14,178
Mortgage loans held-for-sale, net (b) — 2,490 — 2,490
Mortgage servicing rights — — 952 952
Other assets
Interests retained in financial asset sales — — 154 154
Derivative contracts in a receivable position
Interest rate 40 2,170 48 2,258
Foreign currency — 40 — 40
Total derivative contracts in a receivable position 40 2,210 48 2,298
Collateral placed with counterparties (c) 103 99 — 202
Total assets $ 1,995 $ 17,125 $ 1,154 $ 20,274
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position
Interest rate $ (13) $ (2,374) $ (1) $ (2,388)
Foreign currency — (78) (2) (80)
Total derivative contracts in a payable position (13) (2,452) (3) (2,468)
Total liabilities $ (13) $ (2,452) $ (3) $ (2,468)
(a) Our investment in any one industry did not exceed 21%.
(b) Carried at fair value due to fair value option elections.
(c) Represents collateral in the form of investment securities. Cash collateral was excluded.
Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10-K