Ally Bank 2014 Annual Report Download - page 83

Table of Contents
Management's Discussion and Analysis
Ally Financial Inc. • Form 10-K
71
Aggregate Contractual Obligations
The following table provides aggregated information about our outstanding contractual obligations disclosed elsewhere in our
Consolidated Financial Statements.
December 31, 2014 ($ in millions) Total
Less than
1 year 1-3 years 3-5 years
More than
5 years
Contractually obligated payments due by period
Long-term debt
Total (a) $ 67,521 $ 17,496 $ 29,134 $ 9,691 $ 11,200
Scheduled interest payments for fixed-rate long-term debt 24,477 2,016 3,248 2,624 16,589
Estimated interest payments for variable-rate long-term debt (b) 542 196 257 76 13
Estimated net payments under interest rate swap agreements (b) 21——21—
Lease commitments 156 43 56 31 26
Purchase obligations 69 38 31 — —
Bank certificates of deposit 31,070 17,143 12,349 1,578 —
Total contractually obligated payments due by period $ 123,856 $ 36,932 $ 45,075 $ 14,021 $ 27,828
Total other commitments by expiration period
Lending commitments $ 1,831 $ 543 $ 317 $ 551 $ 420
(a) Total long-term debt amount reflects the remaining principal obligation and excludes original issue discount of $1.4 billion and fair value adjustments of
$452 million related to fixed-rate debt designated as a hedged item.
(b) Estimate utilized a forecasted variable interest model, when available, or the applicable variable interest rate as of the most recent reset date prior to
December 31, 2014. For additional information on derivative instruments and hedging activities, refer to Note 22.
The foregoing table does not include our reserves for insurance losses and loss adjustment expenses, which total $208 million at
December 31, 2014. While payments due on insurance losses are considered contractual obligations because they related to insurance policies
issued by us, the ultimate amount to be paid and the timing of payment for an insurance loss is an estimate subject to significant uncertainty.
Furthermore, the timing on payment is also uncertain; however, the majority of the balance is expected to be paid out in less than five years.
The following provides a description of the items summarized in the preceding table of contractual obligations.
Long-term Debt
Amounts represent the scheduled maturity of long-term debt at December 31, 2014, assuming that no early redemptions occur. The
maturity of secured debt may vary based on the payment activity of the related secured assets. The amounts presented are before the effect of
any unamortized discount or fair value adjustment. Refer to Note 16 to the Consolidated Financial Statements for additional information on
our debt obligations.
Derivatives
We primarily use interest rate swaps to manage interest rate risk associated with our secured and unsecured long term debt portfolio.
These derivatives are recorded on the balance sheet at fair value. For additional information on derivatives, refer to Note 22 to the
Consolidated Financial Statements.
Lease Commitments
We have obligations under various operating lease arrangements (primarily for real property) with noncancelable lease terms that expire
after December 31, 2014. Refer to Note 29 to the Consolidated Financial Statements for additional information.
Purchase Obligations
We enter into multiple contractual arrangements for various services. The arrangements represent fixed payment obligations under our
most significant contracts and primarily relate to contracts with information technology providers. Refer to Note 29 to the Consolidated
Financial Statements for additional information.
Bank Certificates of Deposit
Refer to Note 14 to the Consolidated Financial Statements for additional information.
Lending Commitments
We have outstanding lending commitments with customers. The amounts presented represent the unused portion of those commitments
at December 31, 2014. Refer to Note 29 to the Consolidated Financial Statements for additional information.