Ally Bank 2012 Annual Report Download - page 27

25
Item 6. Selected Financial Data
The selected historical financial information set forth below should be read in conjunction with Management’s Discussion and Analysis
(MD&A) of Financial Condition and Results of Operations, our Consolidated Financial Statements, and the Notes to Consolidated Financial
Statements. The historical financial information presented may not be indicative of our future performance.
The following table presents selected statement of income data.
Year ended December 31, ($ in millions)2012 2011 2010 2009 2008
Total financing revenue and other interest income $ 7,468 $ 7,061 $ 8,017 $ 8,887 $ 12,143
Interest expense 4,200 5,039 5,460 5,502 7,548
Depreciation expense on operating lease assets 1,399 941 1,251 2,256 3,159
Impairment of investment in operating leases —— — — 1,082
Net financing revenue 1,869 1,081 1,306 1,129 354
Total other revenue (a) 3,029 2,897 4,416 3,432 14,212
Total net revenue 4,898 3,978 5,722 4,561 14,566
Provision for loan losses 329 188 357 5,174 2,857
Total noninterest expense 5,324 4,741 4,973 6,425 6,789
(Loss) income from continuing operations before income tax
(benefit) expense (755) (951) 392 (7,038) 4,920
Income tax (benefit) expense from continuing operations (b) (1,284) 51 104 29 (108)
Net income (loss) from continuing operations 529 (1,002) 288 (7,067) 5,028
Income (loss) from discontinued operations, net of tax 667 845 741 (3,276) (3,160)
Net income (loss) $ 1,196 $ (157) $ 1,029 $ (10,343) $ 1,868
Basic and diluted earnings per common share:
Net (loss) income from continuing operations $ (205) $ (1,326) $ (1,965) $ (15,662) $ 46,172
Net income (loss) 296 (691) (1,039) (21,850) 17,152
Non-GAAP financial measures (c):
Net income (loss) $ 1,196 $ (157) $ 1,029 $ (10,343) $ 1,868
Add: Original issue discount amortization expense (d) 336 962 1,300 1,143 70
Add: Income tax (benefit) expense from continuing operations (1,284) 51 104 29 (108)
Less: Gain on extinguishment of debt related to the 2008 bond
exchange —— — — 11,460
Less: Income (loss) from discontinued operations, net of tax 667 845 741 (3,276) (3,160)
Core pretax (loss) income (c) $ (419) $ 11 $ 1,692 $ (5,895) $ (6,470)
(a) Total other revenue for 2008 includes $12.6 billion of gains on the extinguishment of debt, primarily related to private exchange and cash tender offers
settled during the fourth quarter.
(b) Effective June 30, 2009, we converted from a limited liability company into a corporation and, as a result, became subject to corporate U.S. federal, state,
and local taxes. Our conversion to a corporation resulted in a change in tax status and a net deferred tax liability of $1.2 billion was established through
income tax expense.
(c) Core pretax (loss) income is not a financial measure defined by accounting principles generally accepted in the United States of America (GAAP). We
define core pretax income as earnings from continuing operations before income taxes, original issue discount amortization expense primarily associated
with our 2008 bond exchange, and the gain on extinguishment of debt related to the 2008 bond exchange. We believe that the presentation of core pretax
(loss) income is useful information for the users of our financial statements in understanding the earnings from our core businesses. In addition, core
pretax (loss) income is the primary measure that management uses to assess the performance of our operations. We believe that core pretax (loss) income
is a useful alternative measure of our ongoing profitability and performance, when viewed in conjunction with GAAP measures. The presentation of this
additional information is not a substitute for net income (loss) determined in accordance with GAAP.
(d) Primarily represents original issue discount amortization expense associated with the 2008 bond exchange that was reported as a loss on extinguishment
of debt in the Consolidated Statement of Income.
Table of Contents Ally Financial Inc. • Form 10-K