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 four operating segments - North American Automotive Finance operations, International 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 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 operations —The principal ongoing activities include originating, purchasing, selling, and securitizing conforming and government-insured residential mortgage loans in the United States through Ally Bank; and servicing residential mortgage loans for ourselves and others. We also originate high-quality prime jumbo mortgage loans in the United States. Our Mortgage operations also include noncore business activities that are winding down or were business activities of ResCap, which was deconsolidated on May 14, 2012, including, among other things: portfolios in runoff; our mortgage reinsurance business; and providing collateralized lines of credit to other mortgage originators, which we refer to as warehouse lending.

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

On May 14, 2012, the Debtors filed for relief under Chapter 11 of the Bankruptcy Code in the United States. As a result of the bankruptcy filing, ResCap was deconsolidated from our financial statements; and beginning in the second quarter of 2012, we are presenting our mortgage business activities under one reportable operating segment, Mortgage operations. Previously our Mortgage operations were presented as two reportable operating segments, Origination and Servicing operations and Legacy Portfolio and Other operations. The new presentation is consistent with the organizational alignment of the business and management's current view of the mortgage business.

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



	Global Automotive Services
Three months ended June 30, ($ in millions)	North American Automotive Finance operations		International Automotive Finance operations (a)		Insurance operations		Mortgage operations (b)			Corporate and Other (c)			Consolidated (d)
2012
Net financing revenue (loss)	$	837	$	171	$	23	$	33		$	(282	)	$	782
Other revenue (loss)	114		59		408		368			(21		)	928
Total net revenue (loss)	951		230		431		401			(303		)	1,710
Provision for loan losses	16		15		—		21			(23		)	29
Total noninterest expense	304		143		388		356			1,339			2,530
Income (loss) from continuing operations before income tax expense	$	631	$	72	$	43	$	24		$	(1,619	)	$	(849	)
Total assets	$	104,927	$	15,467	$	8,237	$	17,146		$	32,783		$	178,560
2011
Net financing revenue (loss)	$	878	$	172	$	25	$	69		$	(426	)	$	718
Other revenue	114		56		458		322			107			1,057
Total net revenue (loss)	992		228		483		391			(319		)	1,775
Provision for loan losses	55		7		—		37			(49		)	50
Total noninterest expense	378		152		411		479			114			1,534
Income (loss) from continuing operations before income tax expense	$	559	$	69	$	72	$	(125	)	$	(384	)	$	191
Total assets	$	90,943	$	16,582	$	8,533	$	31,323		$	31,508		$	178,889


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


(b)	Represents the ResCap legal entity (prior to its deconsolidation from Ally as of May 14, 2012) and the mortgage activities of Ally Bank.


(c)	Total assets for the Commercial Finance Group were $1.2 billion and $1.3 billion at June 30, 2012 and 2011, respectively.


(d)	Net financing revenue (loss) after the provision for loan losses totaled $753 million and $668 million for the three months ended June 30, 2012 and 2011, respectively.



	Global Automotive Services
Six months ended June 30, ($ in millions)	North American Automotive Finance operations		International Automotive Finance operations (a)		Insurance operations		Mortgage operations (b)			Corporate and Other (c)			Consolidated (d)
2012
Net financing revenue (loss)	$	1,612	$	335	$	43	$	90		$	(629	)	$	1,451
Other revenue	193		125		856		915			26			2,115
Total net revenue (loss)	1,805		460		899		1,005			(603		)	3,566
Provision for loan losses	94		62		—		48			(35		)	169
Total noninterest expense	638		281		732		742			1,487			3,880
Income (loss) from continuing operations before income tax expense	$	1,073	$	117	$	167	$	215		$	(2,055	)	$	(483	)
Total assets	$	104,927	$	15,467	$	8,237	$	17,146		$	32,783		$	178,560
2011
Net financing revenue (loss)	$	1,696	$	338	$	47	$	129		$	(948	)	$	1,262
Other revenue	223		114		921		675			132			2,065
Total net revenue (loss)	1,919		452		968		804			(816		)	3,327
Provision for loan losses	101		44		—		84			(66		)	163
Total noninterest expense	741		308		765		802			258			2,874
Income (loss) from continuing operations before income tax expense	$	1,077	$	100	$	203	$	(82	)	$	(1,008	)	$	290
Total assets	$	90,943	$	16,582	$	8,533	$	31,323		$	31,508		$	178,889


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


(b)	Represents the ResCap legal entity (prior to its deconsolidation from Ally as of May 14, 2012) and the mortgage activities of Ally Bank.


(c)	Total assets for the Commercial Finance Group were $1.2 billion and $1.3 billion at June 30, 2012 and 2011, respectively.


(d)	Net financing revenue (loss) after the provision for loan losses totaled $1.3 billion and $1.1 billion for the six months ended June 30, 2012 and 2011, respectively.

Information concerning principal geographic areas were as follows.



Three months ended June 30, ($ in millions)	Revenue (a)(b)		Income (loss) from continuing operations before income tax expense (a)(c)			Net income (loss) (a)(c)
2012
Canada	$	179	$	102		$	80
Europe (d)	145		111			92
Latin America	262		82			66
Asia-Pacific	23		23			23
Total foreign	609		318			261
Total domestic (e)	1,101		(1,167		)	(1,159		)
Total	$	1,710	$	(849	)	$	(898	)
2011
Canada	$	245	$	136		$	98
Europe (d)	103		56			49
Latin America	251		73			62
Asia-Pacific	18		18			18
Total foreign	617		283			227
Total domestic (e)	1,158		(92		)	(114		)
Total	$	1,775	$	191		$	113


(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 $100 million and $257 million for the three months ended June 30, 2012 and 2011, respectively.


(d)	Amounts include eliminations between our foreign operations.


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



Six months ended June 30, ($ in millions)	Revenue (a)(b)		Income (loss) from continuing operations before income tax expense (a)(c)			Net income (loss) (a)(c)
2012
Canada	$	369	$	215		$	165
Europe (d)	233		142			115
Latin America	508		134			108
Asia-Pacific	2		1			1
Total foreign	1,112		492			389
Total domestic (e)	2,454		(975		)	(977		)
Total	$	3,566	$	(483	)	$	(588	)
2011
Canada	$	434	$	222		$	275
Europe (d)	214		107			98
Latin America	488		146			94
Asia-Pacific	1		(1		)	(1		)
Total foreign	1,137		474			466
Total domestic (e)	2,190		(184		)	(207		)
Total	$	3,327	$	290		$	259


(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 $211 million and $556 million for the six months ended June 30, 2012 and 2011, respectively.


(d)	Amounts include eliminations between our foreign operations.


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