Ally Bank 2014 Annual Report Download - page 135

Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10-K
123
2014 2013
December 31, ($ in millions) Unsecured Secured Total Unsecured Secured Total
Long-term debt
Due within one year $ 4,809 $ 12,629 $ 17,438 $ 5,321 $ 11,851 $ 17,172
Due after one year 17,154 31,514 48,668 21,425 30,423 51,848
Fair value adjustment 452 — 452 445 — 445
Total long-term debt $ 22,415 $ 44,143 $ 66,558 $ 27,191 $ 42,274 $ 69,465
The following table presents the scheduled remaining maturity of long-term debt, assuming no early redemptions will occur. The actual
payment of secured debt may vary based on the payment activity of the related pledged assets.
Year ended December 31,
($ in millions) 2015 2016 2017 2018 2019
2020 and
thereafter
Fair value
adjustment Total
Unsecured
Long-term debt $ 4,867 $ 1,934 $ 4,399 $ 1,278 $ 1,625 $ 9,275 $ 452 $ 23,830
Original issue discount (58) (69) (80) (93) (32) (1,083) — (1,415)
Total unsecured 4,809 1,865 4,319 1,185 1,593 8,192 452 22,415
Secured
Long-term debt 12,629 11,576 11,225 4,274 2,514 1,925 — 44,143
Total long-term debt $ 17,438 $ 13,441 $ 15,544 $ 5,459 $ 4,107 $ 10,117 $ 452 $ 66,558
To achieve the desired balance between fixed- and variable-rate debt, we utilize interest rate swap agreements. The use of these
derivative financial instruments had the effect of synthetically converting $7.4 billion of our fixed-rate debt into variable-rate obligations and
$2.4 billion of our variable-rate debt into fixed-rate obligations at December 31, 2014.
The following summarizes assets restricted as collateral for the payment of the related debt obligation primarily arising from
securitization transactions accounted for as secured borrowings and repurchase agreements.
2014 2013
December 31, ($ in millions) Total Ally Bank (a) Total Ally Bank (a)
Investment securities $ 786 $ 786 $ 2,864 $ 2,864
Mortgage assets held-for-investment and lending receivables 7,541 7,541 8,524 8,524
Consumer automotive finance receivables 33,438 11,263 32,947 12,332
Commercial automotive finance receivables 20,605 20,083 21,249 21,249
Investment in operating leases, net 6,820 4,672 5,810 3,190
Other assets —— 563 —
Total assets restricted as collateral (b) (c) $ 69,190 $ 44,345 $ 71,957 $ 48,159
Secured debt (d) $ 47,867 $ 27,134 $ 47,594 $ 27,818
(a) Ally Bank is a component of the total column.
(b) Ally Bank has an advance agreement with the Federal Home Loan Bank of Pittsburgh (FHLB), and had assets pledged to secure borrowings that were
restricted as collateral to the FHLB totaling $10.7 billion and $12.7 billion at December 31, 2014, and 2013, respectively. These assets were composed
primarily of consumer mortgage finance receivables and loans, net. Ally Bank has access to the Federal Reserve Bank Discount Window. Ally Bank had
assets pledged and restricted as collateral to the Federal Reserve Bank totaling $3.2 billion and $3.2 billion at December 31, 2014, and 2013, respectively.
These assets were composed of consumer automotive finance receivables and loans, net and investment in operating leases, net. Availability under these
programs is only for the operations of Ally Bank and cannot be used to fund the operations or liabilities of Ally or its subsidiaries.
(c) Excludes restricted cash and cash reserves for securitization trusts recorded within other assets on the Consolidated Balance Sheet. Refer to Note 13 for
additional information.
(d) Includes $3.7 billion and $5.3 billion of short-term borrowings at December 31, 2014, and 2013, respectively.
Covenants and Other Requirements
In secured funding transactions, there are trigger events that could cause the debt to be prepaid at an accelerated rate or could cause our
usage of the credit facility to be discontinued. The triggers are generally based on the financial health and performance of the servicer as well
as performance criteria for the pool of receivables, such as delinquency ratios, loss ratios, and commercial payment rates. During 2014, there
were no trigger events that resulted in the repayment of debt at an accelerated rate or impacted the usage of our credit facilities.