Segment Information

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Segment 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: Automotive Finance operations, Insurance operations, Mortgage Finance operations, and Corporate Finance operations, with the remaining activity reported in Corporate and Other. The operating segments are determined based on the products and services offered, 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.

Automotive Finance operations— Provides U.S.-based automotive financing services to consumers and automotive dealers, and automotive and equipment financing services to companies and municipalities. Our automotive finance services include providing retail installment sales contracts, loans and leases, offering term loans to dealers, financing dealer floorplans and other lines of credit to dealers, warehouse lines to companies, fleet financing, providing financing to companies and municipalities for the purchase or lease of vehicles and equipment, and vehicle remarketing services.

Insurance operations — Offers both consumer finance protection and insurance products sold primarily through the automotive dealer channel, and commercial insurance products sold directly to dealers. As part of our focus on offering dealers a broad range of consumer financial and insurance products, we provide vehicle service contracts, vehicle maintenance contracts, and guaranteed asset protection products. We also underwrite select commercial insurance coverages, which primarily insure dealers' wholesale vehicle inventory.

Mortgage Finance operations — Primarily consists of the management of a held-for-investment consumer mortgage finance loan portfolio, which includes bulk purchases of high-quality jumbo and low-to-moderate income (LMI) mortgage loans originated by third parties.In late 2016, we introduced our direct mortgage offering, named Ally Home, consisting of a variety of jumbo and conforming fixed- and adjustable-rate mortgage products through a third-party fulfillment partner. Under our current arrangement, conforming mortgages are originated as held-for-sale and sold, while jumbo mortgages are originated as held-for-investment. Servicing is performed by a third party and no mortgage servicing rights are created.

Corporate Finance operations — Primarily provides senior secured leveraged cash flow and asset-based loans to mostly U.S.-based middle market companies. Our primary focus is on businesses owned by private equity sponsors with loans typically used for leveraged buyouts, mergers and acquisitions, debt refinancing, restructurings, and working capital.

Corporate and Other primarily consists of activity related to centralized corporate treasury activities such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, the amortization of the discount associated with debt issuances, and the residual impacts of our corporate funds-transfer pricing (FTP) and treasury asset liability management (ALM) activities. Corporate and Other also includes certain equity investments, which primarily consist of FHLB and FRB stock, the management of our legacy mortgage portfolio, which primarily consists of loans originated prior to January 1, 2009, and reclassifications and eliminations between the reportable operating segments. Additionally, financial results related to Ally Invest are currently included within Corporate and Other.

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 benchmark rate 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 is based in part on internal allocations, which involve management judgment.

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

Three months ended June 30, ($ in millions)	Automotive Finance operations		Insurance operations			Mortgage Finance operations		Corporate Finance operations		Corporate and Other			Consolidated (a)
2017
Net financing revenue and other interest income	$	932	$	14		$	32	$	48	$	41		$	1,067
Other revenue	107		245			1		10		25			388
Total net revenue	1,039		259			33		58		66			1,455
Provision for loan losses	266		—			1		6		(4		)	269
Total noninterest expense	426		280			25		17		62			810
Income (loss) from continuing operations before income tax expense	$	347	$	(21	)	$	7	$	35	$	8		$	376
Total assets	$	115,447	$	7,308		$	8,902	$	3,552	$	29,136		$	164,345
2016
Net financing revenue and other interest income (loss)	$	929	$	16		$	26	$	29	$	(16	)	$	984
Other revenue	77		259			—		4		34			374
Total net revenue	1,006		275			26		33		18			1,358
Provision for loan losses	170		—			—		3		(1		)	172
Total noninterest expense	410		293			17		16		37			773
Income (loss) from continuing operations before income tax expense	$	426	$	(18	)	$	9	$	14	$	(18	)	$	413
Total assets	$	112,356	$	7,193		$	8,014	$	2,989	$	27,379		$	157,931

(a) Net financing revenue and other interest income after the provision for loan losses totaled $798 million and $812 million for the three months endedJune 30, 2017, and 2016, respectively.

Six months ended June 30, ($ in millions)	Automotive Finance operations		Insurance operations		Mortgage Finance operations		Corporate Finance operations		Corporate and Other			Consolidated (a)
2017
Net financing revenue and other interest income	$	1,824	$	29	$	66	$	82	$	45		$	2,046
Other revenue	208		509		1		28		38			784
Total net revenue	2,032		538		67		110		83			2,830
Provision for loan losses	534		—		2		12		(8		)	540
Total noninterest expense	863		519		49		38		119			1,588
Income (loss) from continuing operations before income tax expense	$	635	$	19	$	16	$	60	$	(28	)	$	702
Total assets	$	115,447	$	7,308	$	8,902	$	3,552	$	29,136		$	164,345
2016
Net financing revenue and other interest income (loss)	$	1,825	$	30	$	46	$	57	$	(23	)	$	1,935
Other revenue	154		513		—		10		73			750
Total net revenue	1,979		543		46		67		50			2,685
Provision for loan losses	379		—		3		9		1			392
Total noninterest expense	837		511		32		33		70			1,483
Income (loss) from continuing operations before income tax expense	$	763	$	32	$	11	$	25	$	(21	)	$	810
Total assets	$	112,356	$	7,193	$	8,014	$	2,989	$	27,379		$	157,931

(a) Net financing revenue and other interest income after the provision for loan losses totaled $1,506 million and $1,543 million for the six months endedJune 30, 2017, and 2016, respectively.