Offsetting Assets and Liabilities

Our derivative contracts and repurchase/reverse repurchase transactions are supported by qualifying master netting and master repurchase agreements. These agreements are legally enforceable bilateral agreements that (1) create a single legal obligation for all individual transactions covered by the agreement to the non-defaulting entity upon an event of default of the counterparty, including bankruptcy, insolvency, or similar proceeding, and (2) provide the non-defaulting entity the right to accelerate, terminate, and close-out on a net basis all transactions under the agreement and to liquidate or set off collateral promptly upon an event of default of the counterparty.

To further mitigate the risk of counterparty default related to derivative instruments, we maintain collateral agreements with certain counterparties. The agreements require both parties to maintain collateral in the event the fair values of the derivative financial instruments meet established thresholds. In the event that either party defaults on the obligation, the secured party may seize the collateral. Generally, our collateral arrangements are bilateral such that we and the counterparty post collateral for the value of our total obligation to each other. Contractual terms provide for standard and customary exchange of collateral based on changes in the market value of the outstanding derivatives. The securing party posts additional collateral when their obligation rises or removes collateral when it falls, such that the net replacement cost of the non-defaulting party is covered in the event of counterparty default.

In certain instances as it relates to our derivative instruments, we have the option to report derivative assets and liabilities as well as assets and liabilities associated with cash collateral received or delivered that is governed by a master netting agreement on a net basis as long as certain qualifying criteria are met. Similarly, for our repurchase/reverse repurchase transactions, we have the option to report recognized assets and liabilities subject to a master netting agreement on a net basis. At June 30, 2015, these instruments are reported as gross assets and gross liabilities on the Condensed Consolidated Balance Sheet.

The composition of offsetting derivative instruments, financial assets, and financial liabilities was as follows.



	Gross Amounts of Recognized Assets/(Liabilities)			Gross Amounts Offset in the Condensed Consolidated Balance Sheet		Net Amounts of Assets/(Liabilities) Presented in the Condensed Consolidated Balance Sheet
									Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet
June 30, 2015 ($ in millions)									Financial Instruments			Collateral (a) (b) (c)			Net Amount
Assets
Derivative assets in net asset positions	$	190		$	—	$	190		$	(76	)	$	(29	)	$	85
Derivative assets in net liability positions	24			—		24			(24		)	—			—
Total assets (d)	$	214		$	—	$	214		$	(100	)	$	(29	)	$	85
Liabilities
Derivative liabilities in net liability positions	$	(100	)	$	—	$	(100	)	$	24		$	14		$	(62	)
Derivative liabilities in net asset positions	(76		)	—		(76		)	76			—			—
Derivative liabilities with no offsetting arrangements	(5		)	—		(5		)	—			—			(5		)
Total derivative liabilities (d)	(181		)	—		(181		)	100			14			(67		)
Securities sold under agreements to repurchase (e)	(2,004		)	—		(2,004		)	—			2,004			—
Total liabilities	$	(2,185	)	$	—	$	(2,185	)	$	100		$	2,018		$	(67	)


(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)	Amounts disclosed are limited to the financial asset or liability balance and, accordingly, exclude excess collateral received or pledged and non-cash collateral received. $12 million of non-cash derivative collateral pledged to us was excluded at June 30, 2015. We do not record such collateral received on our Condensed Consolidated Balance Sheet unless certain conditions are met.


(c)	Certain agreements grant us the right to sell or pledge the non-cash assets we receive as collateral. Non-cash collateral pledged to us where the agreement grants us the right to sell or pledge the underlying assets had a fair value of $12 million at June 30, 2015. We have not sold or pledged any of the non-cash collateral received under these agreements as of June 30, 2015.


(d)	For additional information on derivative instruments and hedging activities, refer to Note 20.


(e)	For additional information on securities sold under agreements to repurchase, refer to Note 13.



	Gross Amounts of Recognized Assets/(Liabilities)			Gross Amounts Offset in the Condensed Consolidated Balance Sheet		Net Amounts of Assets/(Liabilities) Presented in the Condensed Consolidated Balance Sheet
									Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet
December 31, 2014 ($ in millions)									Financial Instruments			Collateral (a)			Net Amount
Assets
Derivative assets in net asset positions	$	216		$	—	$	216		$	(60	)	$	(68	)	$	88
Derivative assets in net liability positions	47			—		47			(47		)	—			—
Total assets (b)	$	263		$	—	$	263		$	(107	)	$	(68	)	$	88
Liabilities
Derivative liabilities in net liability positions	$	(188	)	$	—	$	(188	)	$	47		$	54		$	(87	)
Derivative liabilities in net asset positions	(60		)	—		(60		)	60			—			—
Derivative liabilities with no offsetting arrangements	(4		)	—		(4		)	—			—			(4		)
Total derivative liabilities (b)	(252		)	—		(252		)	107			54			(91		)
Securities sold under agreements to repurchase (c)	(774		)	—		(774		)	—			774			—
Total liabilities	$	(1,026	)	$	—	$	(1,026	)	$	107		$	828		$	(91	)


(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 20.


(c)	For additional information on securities sold under agreements to repurchase, refer to Note 13.