Ally Bank 2012 Annual Report Download - page 82

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Nonbank Funding Facilities
Facilities for Automotive Finance Operations — Unsecured
We maintain $144 million in revolving committed unsecured bank facilities in our international operations, most of which mature in
March 2013.
Facilities for Automotive Finance Operations — Secured
The parent company's largest facility is a $7.5 billion revolving syndicated credit facility secured by automotive receivables. During the
first quarter of 2012, we renewed this facility with half of this facility maturing in March 2013, and the remainder maturing in March 2014. In
the event this facility is not renewed at maturity, the outstanding debt will be repaid over time as the underlying collateral amortizes. At
December 31, 2012, there was $7.5 billion outstanding under this facility.
In addition to our syndicated revolving credit facility, we also maintain various bilateral and multilateral secured credit facilities in
multiple countries that fund our Automotive Finance operations. These are primarily private securitization facilities that fund a specific pool
of automotive assets. Many of the facilities have revolving commitments and allow for the funding of additional assets during the
commitment period. At December 31, 2012, the parent company maintained exclusive access to $30.3 billion of committed secured credit
facilities and forward purchase commitments to fund automotive assets, and also had access to a $4.1 billion committed facility that is shared
with Ally Bank.
Cash Flows
Net cash provided by operating activities was $5.0 billion for the year ended December 31, 2012, compared to $5.5 billion for the same
period in 2011. During the year ended December 31, 2012, the net cash inflow from sales and repayment of mortgage and automotive loans
held-for-sale exceeded cash outflow from new originations and purchases of such loans by $1.0 billion. During the year ended December 31,
2011, this activity resulted in a net cash inflow of $0.9 billion.
Net cash used in investing activities was $16.6 billion for the year ended December 31, 2012, compared to $14.1 billion for the same
period in 2011. The net cash outflow from finance receivables and loans decreased $4.5 billion for the year ended December 31, 2012,
compared to 2011. The cash outflow to purchase operating lease assets exceeded cash inflows from disposals of such assets by $5.7 billion for
the year ended December 31, 2012, compared to a net cash outflow of $1.0 billion for the year ended December 31, 2011. The increase in net
cash outflows associated with leasing activities compared to the prior year was primarily due to a decrease in cash received on lease
dispositions. Cash received from sales, maturities, and repayments of available-for-sale investment securities, net of purchases, increased $0.7
billion during the year ended December 31, 2012, compared to 2011.
Net cash provided by financing activities for the year ended December 31, 2012, totaled $8.0 billion, compared to $10.1 billion in the
same period in 2011. Cash provided by short-term debt increased $2.2 billion in the year ended December 31, 2012, compared to 2011, while
cash provided by bank deposits increased by $1.7 billion. Cash used to repay long-term debt exceeded cash generated from long-term debt
issuances by $0.5 billion for the year ended December 31, 2012. In 2011, cash from issuances of long-term debt exceed repayments by $4.3
billion.
Capital Planning and Stress Tests
As a bank holding company with $50 billion or more of consolidated assets, Ally is required to conduct periodic stress tests and submit a
proposed capital action plan to the FRB every January, which the FRB must take action on by the following March. The proposed capital
action plan must include a description of all planned capital actions over a nine-quarter planning horizon, including any issuance of a debt or
equity capital instrument, any capital distribution, and any similar action that the FRB determines could have an impact on Ally's consolidated
capital. The proposed capital action plan must also include a discussion of how Ally will maintain capital above the minimum regulatory
capital ratios and above a Tier 1 common equity-to-total risk-weighted assets ratio of 5 percent, and serve as a source of strength to Ally
Bank. The FRB must approve Ally's proposed capital action plan before Ally may take any proposed capital action covered by the new
regime. Ally submitted its annual capital plan in January 2012, and then submitted a revised capital plan in June of 2012. In connection with
its reviews, the FRB provided notice of non-objection to Ally's planned preferred dividends and interest on the trust preferred securities and
subordinated debt. We continue to have active, frequent and constructive dialogue with the FRB, and have submitted the required 2013 capital
plan on January 7, 2013.
Regulatory Capital
Refer to Note 21 to the Consolidated Financial Statements.
Credit Ratings
The cost and availability of unsecured financing are influenced by credit ratings, which are intended to be an indicator of the
creditworthiness of a particular company, security, or obligation. Lower ratings result in higher borrowing costs and reduced access to capital
markets. This is particularly true for certain institutional investors whose investment guidelines require investment-grade ratings on term debt
and the two highest rating categories for short-term debt (particularly money market investors).
Table of Contents
Management's Discussion and Analysis
Ally Financial Inc. • Form 10-K