Ally Bank 2012 Annual Report Download - page 228

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Item 12. Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
The following table sets forth information with respect to beneficial ownership of Ally common stock by each person known by us to be
the beneficial owner of more than five percent of our outstanding common stock. The number of shares reported below are as reflected in our
stock register at February 28, 2013, and the percentages provided are based on 1,330,970 shares of common stock outstanding at February 28,
2013.
Name and address of beneficial owner
Amount and nature
of beneficial
ownership (a) Percent of class
U.S. Department of Treasury
1500 Pennsylvania Avenue
Washington, D.C. 20220
981,971 73.78%
GMAC Common Equity Trust I
c/o Hillel Bennett
Stroock & Stroock & Lavan
180 Maiden Lane
New York, New York 10038-4982
132,280 9.94%
Persons affiliated with Cerberus Capital Management, L.P.
c/o Cerberus Capital Management, L.P.
299 Park Avenue, 22nd Floor
New York, New York 10171
115,434 8.67%
(a) All ownership is direct.
For details with respect to equity incentive plans, refer to Item 11, Executive Compensation.
Item 13. Certain Relationships and Related Transactions, and Director Independence
Certain relationships and related transactions are described below.
Relationship with General Motors
Products and Services Provided to GM
We provide various products and services to GM on terms comparable to those we provide to third parties. Except as described below,
we currently expect to continue to provide these services to GM on an ongoing basis. These products and services include the following:
• We provide wholesale and term-loan financing to dealerships that are either wholly owned by GM or in which GM has a controlling
interest. The majority of these dealerships are located in the United States. At December 31, 2012, finance receivables and loans to
dealerships owned or majority-owned by GM totaled $260 million.
• We provide operating leases to GM-affiliated entities for buildings with a net book value of $61 million at December 31, 2012. The
income statement effect of lease revenues was $8 million during the year ended December 31, 2012.
• The income statement effect for interest on notes receivable from GM was $7 million during the year ended December 31, 2012.
• We have other lease arrangements whereby we lease facilities to GM whereby we have advanced $3 million. The income statement
effect for leasing revenues under these arrangements was $1 million for the year ended December 31, 2012.
• In certain states, we provide insurance to GM for vehicle service contracts and for which we have recognized insurance premiums
of $101 million for the year ended December 31, 2012.
• GM may elect to sponsor financing incentive programs for wholesale dealer financing, which is known as wholesale subvention.
The income statement effect of wholesale subvention and service fees was $177 million for the year ended December 31, 2012.
Support Services Provided by GM
GM historically has provided a variety of support services for our business, and we reimburse GM for the costs of providing these
services to us. In addition, GM supports us by reimbursing us for certain programs it has with its customers or for expenses we may
experience due to their business operations. The services GM provides us, including reimbursement arrangements, include:
• GM may elect to sponsor incentive programs (on both retail contracts and leases) by supporting financing rates below standard rates
at which we purchase retail contracts. In addition, under residual support programs, GM may upwardly adjust residual values above
the standard lease rates. The subvention related receivables were $172 million at December 31, 2012.
• GM provides lease residual value support as a marketing incentive to encourage consumers to lease vehicles. For certain specific
contracts at termination of the lease, GM reimburses us to the extent the remarketing sales proceeds are less than the residual value
Table of Contents Ally Financial Inc. • Form 10-K