Ally Bank 2014 Annual Report Download - page 59

Table of Contents
Management's Discussion and Analysis
Ally Financial Inc. • Form 10-K
47
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 Corporate Finance, 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 new debt issuances and bond exchanges, and the residual impacts of our corporate FTP and
treasury ALM activities. Corporate and Other also includes 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. Corporate Finance provides senior secured commercial-lending products to primarily U.S.-based middle market companies.
Effective May 1, 2014, Corporate Finance was aligned under Ally Bank, allowing this business to have a more stable and competitive source
of funding.
Year ended December 31, ($ in millions) 2014 2013 2012
Favorable/
(unfavorable)
2014-2013
% change
Favorable/
(unfavorable)
2013-2012
% change
Net financing loss
Total financing revenue and other interest income $ 361 $ 298 $ 157 21 90
Interest expense
Original issue discount amortization 189 262 349 28 25
Other interest expense 217 549 957 60 43
Total interest expense 406 811 1,306 50 38
Net financing loss (a) (45) (513) (1,149) 91 55
Other (expense) revenue
Loss on extinguishment of debt (202) (59) (148) n/m 60
Other gain on investments, net 38 369
n/m (96)
Other income, net of losses 30 76 22 (61) n/m
Total other (expense) revenue (134) 20 (57) n/m 135
Total net loss (179) (493) (1,206) 64 59
Provision for loan losses (16) (6) (10) n/m (40)
Total noninterest expense (b) 375 423 434 11 3
Loss from continuing operations before income tax (benefit)
expense $ (538) $ (910) $ (1,630) 41 44
Total assets $ 23,566 $ 26,563 $ 30,753 (11) (14)
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 $685 million, $739 million, and $814 million for the years ended December 31, 2014, 2013, and 2012, respectively, 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.