Ally Bank 2014 Annual Report Download - page 80

Table of Contents
Management's Discussion and Analysis
Ally Financial Inc. • Form 10-K
68
Funding Sources
The following table summarizes debt and other sources of funding and the amount outstanding under each category for the periods
shown.
December 31, ($ in millions) Bank Nonbank Total %
2014
Secured financings $ 27,135 $ 20,732 $ 47,867 36
Institutional term debt — 21,628 21,628 17
Retail debt programs (a) — 3,673 3,673 3
Total debt (b) 27,135 46,033 73,168 56
Deposits (c) 57,903 319 58,222 44
Total on-balance sheet funding $ 85,038 $ 46,352 $ 131,390 100
2013
Secured financings $ 27,818 $ 19,776 $ 47,594 36
Institutional term debt — 24,936 24,936 19
Retail debt programs (a) — 5,035 5,035 4
Total debt (b) 27,818 49,747 77,565 59
Deposits (c) 52,910 440 53,350 41
Total on-balance sheet funding $ 80,728 $ 50,187 $ 130,915 100
(a) Includes $335 million and $1.8 billion of Retail Term Notes at December 31, 2014 and December 31, 2013, respectively.
(b) Excludes fair value adjustment as described in Note 25 to the Consolidated Financial Statements.
(c) Bank deposits include retail, brokered, mortgage escrow, and other deposits. Nonbank deposits include dealer deposits. Intercompany deposits are not
included.
As a result of our funding strategy to shift originations to Ally Bank and grow the retail deposit base, the proportion of funding provided
by retail deposits and Ally Bank has increased in 2014 from 2013 levels. Refer to Note 16 to the Consolidated Financial Statements for a
summary of the scheduled maturity of long-term debt at December 31, 2014.
Committed Funding Facilities
Outstanding Unused capacity (a) Total capacity
December 31, ($ in millions) 2014 2013 2014 2013 2014 2013
Bank funding
Secured $ 3,250 $ 2,750 $ 250 $ 250 $ 3,500 $ 3,000
Parent funding
Secured (b) 15,030 15,159 3,425 6,497 18,455 21,656
Total committed facilities $ 18,280 $ 17,909 $ 3,675 $ 6,747 $ 21,955 $ 24,656
(a) Funding from committed secured facilities is available on request in the event excess collateral resides in certain facilities or is available to the extent
incremental collateral is available and contributed to the facilities.
(b) Includes the secured facility of Corporate Finance at December 31, 2013.
Cash Flows
Net cash provided by operating activities was $3.4 billion for the year ended December 31, 2014, compared to $2.5 billion for the year
ended December 31, 2013. The increase was primarily due to lower cash outflow to settle derivatives and higher levels of operating income.
The increase was partially offset by a net decrease in cash flows related to activity within our mortgage and automotive loans held-for-sale
portfolios.
Net cash used in investing activities was $3.2 billion for the year ended December 31, 2014, compared to $3.5 billion for the same period
in 2013. The decrease was primarily due to a $4.7 billion increase in net cash provided by sales, maturities, and repayments of available-for-
sale securities, net of purchases, and a $2.2 billion increase in net cash inflows from operating lease activity, primarily due to an increase in
cash received from lease disposals, as well as a $1.7 billion net increase in restricted cash. The increase was partially offset by a $7.4 billion
decrease in cash proceeds from the sale of international businesses and a decrease of $911 million from the sale of MSRs, both of which
occurred in 2013.
Net cash used in financing activities for the year ended December 31, 2014 totaled $145 million, compared to $3.1 billion for the same
period in 2013. The decrease was primarily due to a $5.9 billion cash outflow to redeem mandatorily convertible preferred stock held by
Treasury during 2013. In addition, cash used to repay long-term debt exceeded cash generated from long-term debt issuances by $3.3 billion