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Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with CustomersOur primary revenue sources, which include financing revenue and other interest income, are addressed by other GAAP and are not in the scope of ASC Topic 606, Revenue from Contracts with Customers. As part of our Insurance operations, we recognize revenue from insurance contracts, which are addressed by other GAAP and are not included in the scope of this standard. Certain noninsurance contracts within our Insurance operations, including VSCs, GAP contracts, and VMCs, are included in the scope of this standard. All revenue associated with noninsurance contracts is recognized over the contract term on a basis proportionate to the anticipated cost emergence. Further, commissions and sales expense incurred to obtain these contracts are amortized over the terms of the related policies and service contracts on the same basis as premiums and service revenue are earned, and all advertising costs are recognized as expense when incurred.
The following tables present a disaggregated view of our revenue from contracts with customers. For further information regarding our revenue recognition policies and details about the nature of our respective revenue streams, refer to Note 1 and Note 3 to the Consolidated Financial Statements in our 2021 Annual Report on Form 10-K.
Three months ended June 30, ($ in millions)
Automotive Finance operationsInsurance operationsMortgage Finance operationsCorporate Finance operationsCorporate and OtherConsolidated
2022
Revenue from contracts with customers
Noninsurance contracts (a) (b) (c)$— $163 $— $— $— $163 
Remarketing fee income29 — — — — 29 
Brokerage commissions and other revenue— — — — 13 13 
Banking fees and interchange income (d) (e)— — — — 10 10 
Brokered/agent commissions— 4 — — — 4 
Other6 — — — 1 7 
Total revenue from contracts with customers
35 167 — — 24 226 
All other revenue
37 (9)4 19 35 86 
Total other revenue (f)$72 $158 $4 $19 $59 $312 
2021
Revenue from contracts with customers
Noninsurance contracts (a) (b) (c)$— $158 $— $— $— $158 
Remarketing fee income27 — — — — 27 
Brokerage commissions and other revenue— — — — 13 13 
Banking fees and interchange income (d)— — — — 5 5 
Brokered/agent commissions— 4 — — — 4 
Other6 — — — 2 8 
Total revenue from contracts with customers
33 162 — — 20 215 
All other revenue28 182 22 33 58 323 
Total other revenue (f)$61 $344 $22 $33 $78 $538 
(a)We had opening balances of $3.0 billion in unearned revenue associated with outstanding contracts at both April 1, 2022, and 2021, and $234 million and $228 million of these balances were recognized as insurance premiums and service revenue earned in our Condensed Consolidated Statement of Comprehensive Income during the three months ended June 30, 2022, and 2021, respectively.
(b)At June 30, 2022, we had unearned revenue of $3.0 billion associated with outstanding contracts, and with respect to this balance we expect to recognize revenue of $443 million during the remainder of 2022, $825 million in 2023, $681 million in 2024, $488 million in 2025, and $580 million thereafter. At June 30, 2021, we had unearned revenue of $3.1 billion associated with outstanding contracts.
(c)We had deferred insurance assets of $1.8 billion at both April 1, 2022, and June 30, 2022, and recognized $140 million of expense during the three months ended June 30, 2022. We had deferred insurance assets of $1.8 billion and $1.9 billion at April 1, 2021, and June 30, 2021, respectively, and recognized $133 million of expense during the three months ended June 30, 2021.
(d)Effective May 25, 2021, we eliminated all overdraft fees for Ally Bank deposit accounts.
(e)Interchange income is reported net of customer rewards. Customer rewards expense was $3 million for the three months ended June 30, 2022.
(f)Represents a component of total net revenue. Refer to Note 23 for further information on our reportable operating segments.
Six months ended June 30, ($ in millions)
Automotive Finance operationsInsurance operationsMortgage Finance operationsCorporate Finance operationsCorporate and OtherConsolidated
2022
Revenue from contracts with customers
Noninsurance contracts (a) (b)$— $325 $— $— $— $325 
Remarketing fee income56 — — — — 56 
Brokerage commissions and other revenue— — — — 24 24 
Banking fees and interchange income (c) (d)— — — — 21 21 
Brokered/agent commissions— 8 — — — 8 
Other11 — — — 2 13 
Total revenue from contracts with customers
67 333 — — 47 447 
All other revenue
73 95 18 43 78 307 
Total other revenue (e)$140 $428 $18 $43 $125 $754 
2021
Revenue from contracts with customers
Noninsurance contracts (a) (b)$— $313 $— $— $— $313 
Remarketing fee income54 — — — — 54 
Brokerage commissions and other revenue— — — — 33 33 
Banking fees and interchange income (c)— — — — 11 11 
Brokered/agent commissions— 8 — — — 8 
Other12 — — — 2 14 
Total revenue from contracts with customers
66 321 — — 46 433 
All other revenue57 402 62 59 90 670 
Total other revenue (e)$123 $723 $62 $59 $136 $1,103 
(a)We had opening balances of $3.1 billion and $3.0 billion in unearned revenue associated with outstanding contracts at January 1, 2022, and 2021, respectively, and $465 million and $453 million of these balances were recognized as insurance premiums and service revenue earned in our Condensed Consolidated Statement of Comprehensive Income during the six months ended June 30, 2022, and 2021, respectively.
(b)We had deferred insurance assets of $1.9 billion and $1.8 billion at January 1, 2022, and June 30, 2022, respectively, and recognized $277 million of expense during the six months ended June 30, 2022. We had deferred insurance assets of $1.8 billion and $1.9 billion at January 1, 2021, and June 30, 2021, respectively, and recognized $265 million of expense during the six months ended June 30, 2021.
(c)Effective May 25, 2021, we eliminated all overdraft fees for Ally Bank deposit accounts.
(d)Interchange income is reported net of customer rewards. Customer rewards expense was $6 million for the six months ended June 30, 2022.
(e)Represents a component of total net revenue. Refer to Note 23 for further information on our reportable operating segments.
In addition to the components of other revenue presented above, as part of our Automotive Finance operations, we recognized net remarketing gains of $50 million and $100 million for the three months and six months ended June 30, 2022, respectively, compared to $128 million and $192 million for the same periods in 2021, on the sale of off-lease vehicles. These gains are included in depreciation expense on operating lease assets in our Condensed Consolidated Statement of Comprehensive Income.