Ally Bank 2011 Annual Report Download - page 31

Table of Contents
Ally Financial Inc. • Form 10−K
Item 6. Selected Financial Data
The selected historical financial information set forth below should be read in conjunction with Management's Discussion and Analysis of Financial
Condition and Results of Operations, our Consolidated Financial Statements, and the Notes to Consolidated Financial Statements. The historical financial
information presented may not be indicative of our future performance.
The following table presents selected statement of income data.
Year ended December 31, ($ in millions) 2011 2010 2009 2008 2007
Total financing revenue and other interest income $ 9,736 $ 11,183 $ 12,772 $ 17,691 $ 21,459
Interest expense 6,223 6,666 7,091 10,266 13,421
Depreciation expense on operating lease assets 1,038 1,903 3,519 5,261 4,371
Impairment of investment in operating leases — — — 1,192 —
Net financing revenue 2,475 2,614 2,162 972 3,667
Total other revenue (a) 3,596 5,028 4,040 14,826 5,779
Total net revenue 6,071 7,642 6,202 15,798 9,446
Provision for loan losses 219 442 5,603 3,102 3,038
Total noninterest expense 5,785 6,061 7,508 7,983 7,881
Income (loss) from continuing operations before income tax expense
(benefit) 67 1,139 (6,909) 4,713 (1,473)
Income tax expense (benefit) from continuing operations (b) 179 153 74 (150) 477
Net (loss) income from continuing operations (112) 986 (6,983) 4,863 (1,950)
(Loss) income from discontinued operations, net of tax (45) 89 (3,315) (2,995) (382)
Net (loss) income $ (157) $ 1,075 $ (10,298) $ 1,868 $ (2,332)
Basic and diluted earnings per common share:
Net (loss) income from continuing operations $ (658) $ (1,092) $ (15,503) $ 44,661 $ (21,143)
Net (loss) income (691) (981) (21,765) 17,152 (24,911)
Non−GAAP financial measures (c):
Net (loss) income $ (157) $ 1,075 $ (10,298) $ 1,868 $ (2,332)
Add: Original issue discount amortization expense (d) 962 1,300 1,143 70 —
Add: Income tax expense (benefit) from continuing operations 179 153 74 (150) 477
Less: Gain on extinguishment of debt related to the 2008 bond
exchange — — — 11,460 —
Less: (Loss) income from discontinued operations, net of tax (45) 89 (3,315) (2,995) (382)
Core pretax income (loss) (c) $ 1,029 $ 2,439 $ (5,766) $ (6,677) $ (1,473)
(a) Total other revenue for 2008 includes $12.6 billion of gains on the extinguishment of debt, primarily related to private exchange and cash tender offers settled during the fourth
quarter.
(b) Effective June 30, 2009, we converted from a limited liability company into a corporation and, as a result, became subject to corporate U.S. federal, state, and local taxes. Our
conversion to a corporation resulted in a change in tax status and a net deferred tax liability of $1.2 billion was established through income tax expense. Refer to Note 25 to the
Consolidated Financial Statements for additional information regarding our change in tax status.
(c) Core pretax income (loss) is not a financial measure defined by accounting principles generally accepted in the United States of America (GAAP). We define core pretax income as
earnings from continuing operations before income taxes, original issue discount amortization expense primarily associated with our 2008 bond exchange, and the gain on
extinguishment of debt related to the 2008 bond exchange. We believe that the presentation of core pretax income (loss) is useful information for the users of our financial
statements in understanding the earnings from our core businesses. In addition, core pretax income (loss) is the primary measure that management uses to assess the performance of
our operations. We believe that core pretax income (loss) is a useful alternative measure of our ongoing profitability and performance, when viewed in conjunction with GAAP
measures. The presentation of this additional information is not a substitute for net income (loss) determined in accordance with GAAP.
(d) Primarily represents original issue discount amortization expense associated with the 2008 bond exchange, including accelerated amortization of $50 million and $101 million for
the years ended December 31, 2011 and December 31, 2010, that was reported as a loss on extinguishment of debt in the Consolidated Statement of Income.
28