Ally Bank 2012 Annual Report Download - page 53

51
Corporate and Other
The following table summarizes the activities of Corporate and Other excluding discontinued operations for the periods shown.
Corporate and Other primarily consists of our centralized corporate treasury 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, overhead that was previously allocated to operations that have since
been sold or classified as discontinued operations, and reclassifications and eliminations between the reportable operating segments. Our
Commercial Finance Group provides senior secured commercial-lending products to primarily U.S.-based middle market companies.
Year ended December 31, ($ in millions) 2012 2011 2010
Favorable/
(unfavorable)
2012-2011
% change
Favorable/
(unfavorable)
2011-2010
% change
Net financing loss
Total financing revenue and other interest income $ 157 $ 196 $ 206 (20) (5)
Interest expense
Original issue discount amortization 349 925 1,204 62 23
Other interest expense 981 992 1,055 16
Total interest expense 1,330 1,917 2,259 31 15
Net financing loss (a) (1,173) (1,721) (2,053) 32 16
Other (expense) revenue
Loss on extinguishment of debt (148) (64) (124) (131) 48
Other gain on investments, net 69 84 146 (18) (42)
Other income, net of losses 19 158 (56) (88) n/m
Total other (expense) revenue (60) 178 (34) (134) n/m
Total net loss (1,233) (1,543) (2,087) 20 26
Provision for loan losses (10) (51) (47) (80) 9
Noninterest expense
Compensation and benefits expense 636 472 610 (35) 23
Other operating expense (b)
Accrual related to ResCap Bankruptcy and deconsolidation (c) 750 — — n/m —
Impairment of investment in ResCap (c) 442 — — n/m —
Other (58) 14 44 n/m 68
Total other operating expense 1,134 14 44 n/m 68
Total noninterest expense 1,770 486 654 n/m 26
Loss from continuing operations before income tax expense $ (2,993) $ (1,978) $ (2,694) (51) 27
Total assets $ 30,753 $ 29,526 $ 28,472 44
n/m = not meaningful
(a) Refer to the table that follows for further details on the components of net financing loss.
(b) Includes a reduction of $814 million for the year ended December 31, 2012, and $757 million for each of the years ended December 31, 2011, and 2010,
related to the allocation of corporate overhead expenses to other segments. The receiving segments record their allocation of corporate overhead expense
within other operating expense.
(c) Refer to Note 1 to the Consolidated Financial Statements for further information regarding the deconsolidation of ResCap.
Table of Contents
Management's Discussion and Analysis
Ally Financial Inc. • Form 10-K