Segment And Geographic Information

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Segment and Geographic Information

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 five operating segments - North American Automotive Finance operations, International Automotive Finance operations, Insurance operations, Mortgage - Origination and Servicing operations, and Mortgage - Legacy Portfolio and Other operations, with the remaining activity reported in Corporate and Other. The operating segments are determined based on the products and services offered and geographic considerations, 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.

North American Automotive Finance operations— Provides automotive financing services to consumers and automotive dealers in the United States and Canada and includes the automotive activities of Ally Bank and ResMor Trust. 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.

International Automotive Finance operations— Provides automotive financing and full-service leasing to consumers and dealers outside of the United States and Canada. Our International Automotive Finance operations will focus the majority of new originations in five core international markets: Germany, the United Kingdom, Brazil, Mexico, and China through our joint venture.

Insurance operations — Offers consumer finance and insurance products, and commercial insurance products sold primarily through the dealer channel including vehicle service contracts, commercial insurance coverage in the United States (primarily covering dealers' wholesale vehicle inventory), and personal automobile insurance in certain countries outside the United States.

Mortgage — Origination and Servicing operations —The principal activities include originating, purchasing, selling, and securitizing conforming and government-insured residential mortgage loans in the United States; servicing residential mortgage loans for ourselves and others; and providing collateralized lines of credit to other mortgage originators, which we refer to as warehouse lending. We also originate high-quality prime jumbo mortgage loans in the United States. We finance our mortgage loan originations primarily in Ally Bank in the United States.

Mortgage — Legacy Portfolio and Other operations — Primarily consists of loans originated prior to January 1, 2009, and includes noncore business activities including discontinued operations, portfolios in runoff, our mortgage reinsurance business, and cash held in the ResCap legal entity. These activities, all of which we have discontinued, included, among other things: lending to real estate developers and homebuilders in the United States and United Kingdom; and purchasing, selling, and securitizing nonconforming residential mortgage loans (with the exception of U.S. prime jumbo mortgage loans originated subsequent to January 1, 2009, which are included in our Origination and Servicing operations) in both the United States and internationally.

Corporate and Other primarily consists of our centralized corporate treasury and deposit gathering 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 new debt issuances and bond exchanges, most notably from the December 2008 bond exchange, and the residual impacts of our corporate funds-transfer pricing (FTP) and treasury asset liability management (ALM) activities. Corporate and Other also includes our Commercial Finance Group, certain equity investments, 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.

Change in Reportable Segment Information

Beginning in the fourth quarter of 2011, we began presenting our Canadian mortgage operations of ResMor Trust with Legacy Portfolio and Other operations. Previously these operations were included with Originations and Servicing operations. The change was made because the mortgage operations of ResMor Trust were classified as discontinued and held-for-sale.

Financial information for our reportable operating segments is summarized as follows.

	Global Automotive Services						Mortgage (a)
Three months ended March 31, ($ in millions)	North American Automotive Finance operations		International Automotive Finance operations (b)		Insurance operations		Origination and Servicing operations			Legacy Portfolio and Other operations			Corporate and Other (c)			Consolidated (d)
2012
Net financing revenue (loss)	$	775	$	164	$	20	$	7		$	50		$	(347	)	$	669
Other revenue	79		66		448		547			—			47			1,187
Total net revenue (loss)	854		230		468		554			50			(300		)	1,856
Provision for loan losses	78		47		—		1			26			(12		)	140
Total noninterest expense	334		138		344		336			50			148			1,350
Income (loss) from continuing operations before income tax expense	$	442	$	45	$	124	$	217		$	(26	)	$	(436	)	$	366
Total assets	$	102,894	$	16,054	$	8,394	$	19,556		$	10,523		$	28,929		$	186,350
2011
Net financing revenue (loss)	$	818	$	166	$	22	$	(17	)	$	77		$	(522	)	$	544
Other revenue	109		58		463		340			13			25			1,008
Total net revenue (loss)	927		224		485		323			90			(497		)	1,552
Provision for loan losses	46		37		—		2			45			(17		)	113
Total noninterest expense	363		156		354		236			87			144			1,340
Income (loss) from continuing operations before income tax expense	$	518	$	31	$	131	$	85		$	(42	)	$	(624	)	$	99
Total assets	$	87,662	$	16,295	$	9,024	$	18,714		$	12,259		$	29,750		$	173,704

(a) Represents the ResCap legal entity and the mortgage activities of Ally Bank.

(b) Amounts include intrasegment eliminations between our North American Automotive Finance operations, International Automotive Finance operations, and Insurance operations.

(c) Total assets for the Commercial Finance Group were $1.2 billion and $1.4 billion at March 31, 2012 and 2011, respectively.

(d) Net financing revenue (loss) after the provision for loan losses totaled $529 million and $431 million for the three months endedMarch 31, 2012 and 2011, respectively.

Information concerning principal geographic areas was as follows.

Three months ended March 31, ($ in millions)	Revenue (a)(b)		Income (loss) from continuing operations before income tax expense (a)(c)			Net income (loss) (a)(c)
2012
Canada	$	190	$	114		$	85
Europe (d)	88		31			22
Latin America	247		51			43
Asia-Pacific	28		27			27
Total foreign	553		223			177
Total domestic (e)	1,303		143			133
Total	$	1,856	$	366		$	310
2011
Canada	$	190	$	85		$	176
Europe (d)	111		51			50
Latin America	237		73			32
Asia-Pacific	21		21			20
Total foreign	559		230			278
Total domestic (e)	993		(131		)	(132		)
	$	1,552	$	99		$	146

(a) The 2011 balances for Asia-Pacific and domestic were reclassified to conform with the 2012 presentation. These reclassifications have no impact to our condensed consolidated results of operations.

(b) Revenue consists of net financing revenue and total other revenue as presented in our Condensed Consolidated Statement of Comprehensive Income.

(c) The domestic amounts include original discount amortization of $111 million and $299 million for the three months endedMarch 31, 2012 and 2011 respectively.

(d) Amounts include eliminations between our foreign operations.

(e) Amounts include eliminations between our domestic and foreign operations.