Parent and Guarantor Consolidating Financial Statements

Certain of our senior notes are guaranteed by a group of subsidiaries (the Guarantors). The Guarantors, each of which is a 100% directly owned subsidiary of Ally Financial Inc, are Ally US LLC, IB Finance Holding Company, LLC, GMAC Latin America Holdings LLC, GMAC International Holdings B.V., and GMAC Continental Corporation. The Guarantors fully and unconditionally guarantee the senior notes on a joint and several basis.

The following financial statements present condensed consolidating financial data for (i) Ally Financial Inc. (on a parent company-only basis), (ii) the Guarantors, (iii) the nonguarantor subsidiaries (all other subsidiaries), and (iv) an elimination column for adjustments to arrive at (v) the information for the parent company, Guarantors, and nonguarantors on a consolidated basis.

Investments in subsidiaries are accounted for by the parent company and the Guarantors using the equity method for this presentation. Results of operations of subsidiaries are therefore classified in the parent company’s and Guarantors’ investment in subsidiaries accounts. The elimination entries set forth in the following condensed consolidating financial statements eliminate distributed and undistributed income of subsidiaries, investments in subsidiaries, and intercompany balances and transactions between the parent, Guarantors, and nonguarantors.

Condensed Consolidating Statement of Income



Three months ended March 31, 2012 ($ in millions)	Parent			Guarantors		Nonguarantors		Consolidating Adjustments			Ally consolidated
Financing revenue and other interest income
Interest and fees on finance receivables and loans	$	253		$	8	$	1,421	$	(4	)	$	1,678
Interest and fees on finance receivables and loans — intercompany	41			5		8		(54		)	—
Interest on loans held-for-sale	5			—		68		—			73
Interest on trading securities	—			—		11		—			11
Interest and dividends on available-for-sale investment securities	—			—		84		—			84
Interest-bearing cash	1			—		13		—			14
Operating leases	52			—		488		—			540
Total financing revenue and other interest income	352			13		2,093		(58		)	2,400
Interest expense
Interest on deposits	17			—		169		—			186
Interest on short-term borrowings	16			1		58		—			75
Interest on long-term debt	726			2		449		—			1,177
Interest on intercompany debt	(1		)	7		52		(58		)	—
Total interest expense	758			10		728		(58		)	1,438
Depreciation expense on operating lease assets	13			—		280		—			293
Net financing (loss) revenue	(419		)	3		1,085		—			669
Dividends from subsidiaries
Nonbank subsidiaries	141			5		—		(146		)	—
Other revenue
Servicing fees	52			—		258		—			310
Servicing asset valuation and hedge activities, net	—			—		9		—			9
Total servicing income, net	52			—		267		—			319
Insurance premiums and service revenue earned	—			—		375		—			375
(Loss) gain on mortgage and automotive loans, net	(1		)	—		127		—			126
Other gain on investments, net	—			—		90		—			90
Other income, net of losses	59			145		387		(314		)	277
Total other revenue	110			145		1,246		(314		)	1,187
Total net (loss) revenue	(168		)	153		2,331		(460		)	1,856
Provision for loan losses	75			2		63		—			140
Noninterest expense
Compensation and benefits expense	216			147		256		(144		)	475
Insurance losses and loss adjustment expenses	—			—		159		—			159
Other operating expenses	93			1		792		(170		)	716
Total noninterest expense	309			148		1,207		(314		)	1,350
(Loss) income from continuing operations before income tax (benefit) expense and undistributed income of subsidiaries	(552		)	3		1,061		(146		)	366
Income tax (benefit) expense from continuing operations	(254		)	—		318		—			64
Net (loss) income from continuing operations	(298		)	3		743		(146		)	302
Income from discontinued operations, net of tax	7			—		1		—			8
Undistributed income of subsidiaries
Bank subsidiary	223			223		—		(446		)	—
Nonbank subsidiaries	378			85		—		(463		)	—
Net income	$	310		$	311	$	744	$	(1,055	)	$	310



Three months ended March 31, 2011 ($ in millions)	Parent			Guarantors			Nonguarantors			Consolidating Adjustments			Ally consolidated
Financing revenue and other interest income
Interest and fees on finance receivables and loans	$	252		$	7		$	1,362		$	—		$	1,621
Interest and fees on finance receivables and loans — intercompany	91			5			7			(103		)	—
Interest on loans held-for-sale	—			—			84			—			84
Interest on trading securities	—			—			3			—			3
Interest and dividends on available-for-sale investment securities	3			—			100			—			103
Interest and dividends on available-for-sale investment securities — intercompany	—			—			2			(2		)	—
Interest-bearing cash	3			—			9			—			12
Operating leases	308			—			347			—			655
Total financing revenue and other interest income	657			12			1,914			(105		)	2,478
Interest expense
Interest on deposits	15			—			151			—			166
Interest on short-term borrowings	13			—			79			—			92
Interest on long-term debt	988			2			416			—			1,406
Interest on intercompany debt	(4		)	7			102			(105		)	—
Total interest expense	1,012			9			748			(105		)	1,664
Depreciation expense on operating lease assets	131			—			139			—			270
Net financing (loss) revenue	(486		)	3			1,027			—			544
Dividends from subsidiaries
Nonbank subsidiaries	501			—			—			(501		)	—
Other revenue
Servicing fees	80			—			277			—			357
Servicing asset valuation and hedge activities, net	—			—			(87		)	—			(87		)
Total servicing income, net	80			—			190			—			270
Insurance premiums and service revenue earned	—			—			399			—			399
Gain on mortgage and automotive loans, net	—			—			90			—			90
Loss on extinguishment of debt	(39		)	—			—			—			(39		)
Other gain on investments, net	9			—			75			—			84
Other income, net of losses	15			—			337			(148		)	204
Total other revenue	65			—			1,091			(148		)	1,008
Total net revenue	80			3			2,118			(649		)	1,552
Provision for loan losses	83			(1		)	31			—			113
Noninterest expense
Compensation and benefits expense	198			2			224			—			424
Insurance losses and loss adjustment expenses	—			—			170			—			170
Other operating expenses	118			1			775			(148		)	746
Total noninterest expense	316			3			1,169			(148		)	1,340
(Loss) income from continuing operations before income tax (benefit) expense and undistributed income of subsidiaries	(319		)	1			918			(501		)	99
Income tax (benefit) expense from continuing operations	(133		)	—			63			—			(70		)
Net (loss) income from continuing operations	(186		)	1			855			(501		)	169
Loss from discontinued operations, net of tax	(5		)	—			(18		)	—			(23		)
Undistributed income of subsidiaries
Bank subsidiary	251			251			—			(502		)	—
Nonbank subsidiaries	86			197			—			(283		)	—
Net income	$	146		$	449		$	837		$	(1,286	)	$	146

Condensed Consolidating Balance Sheet



March 31, 2012 ($ in millions)	Parent			Guarantors			Nonguarantors			Consolidating adjustments			Ally consolidated
Assets
Cash and cash equivalents
Noninterest-bearing	$	1,087		$	—		$	1,192		$	—		$	2,279
Interest-bearing	3,901			32			6,867			—			10,800
Interest-bearing — intercompany	—			—			930			(930		)	—
Total cash and cash equivalents	4,988			32			8,989			(930		)	13,079
Trading assets	—			—			895			—			895
Investment securities	—			—			14,942			—			14,942
Loans held-for-sale, net	623			—			6,047			—			6,670
Finance receivables and loans, net
Finance receivables and loans, net	19,585			450			99,783			—			119,818
Intercompany loans to
Bank subsidiary	2,950			—			—			(2,950		)	—
Nonbank subsidiaries	5,521			366			518			(6,405		)	—
Allowance for loan losses	(304		)	(4		)	(1,238		)	—			(1,546		)
Total finance receivables and loans, net	27,752			812			99,063			(9,355		)	118,272
Investment in operating leases, net	512			—			9,536			—			10,048
Intercompany receivables from
Bank subsidiary	206			—			—			(206		)	—
Nonbank subsidiaries	491			556			154			(1,201		)	—
Investment in subsidiaries
Bank subsidiary	13,336			13,336			—			(26,672		)	—
Nonbank subsidiaries	17,281			4,017			—			(21,298		)	—
Mortgage servicing rights	—			—			2,595			—			2,595
Premiums receivable and other insurance assets	—			—			1,876			—			1,876
Other assets	2,414			3			15,016			(468		)	16,965
Assets of operations held-for-sale	(34		)	—			1,042			—			1,008
Total assets	$	67,569		$	18,756		$	160,155		$	(60,130	)	$	186,350
Liabilities
Deposit liabilities
Noninterest-bearing	$	—		$	—		$	2,314		$	—		$	2,314
Interest-bearing	1,861			—			43,031			—			44,892
Total deposit liabilities	1,861			—			45,345			—			47,206
Short-term borrowings	2,987			139			4,077			—			7,203
Long-term debt	39,820			219			53,951			—			93,990
Intercompany debt to
Nonbank subsidiaries	965			484			8,836			(10,285		)	—
Intercompany payables to
Bank subsidiary	213			—			—			(213		)	—
Nonbank subsidiaries	627			272			294			(1,193		)	—
Interest payable	1,126			4			545			—			1,675
Unearned insurance premiums and service revenue	—			—			2,632			—			2,632
Reserves for insurance losses and loss adjustment expenses	—			—			565			—			565
Accrued expenses and other liabilities	303			289			12,965			(468		)	13,089
Liabilities of operations held-for-sale	—			—			323			—			323
Total liabilities	47,902			1,407			129,533			(12,159		)	166,683
Total equity	19,667			17,349			30,622			(47,971		)	19,667
Total liabilities and equity	$	67,569		$	18,756		$	160,155		$	(60,130	)	$	186,350



December 31, 2011 ($ in millions)	Parent			Guarantors			Nonguarantors			Consolidating adjustments			Ally consolidated
Assets
Cash and cash equivalents
Noninterest-bearing	$	1,413		$	—		$	1,062		$	—		$	2,475
Interest-bearing	4,848			14			5,698			—			10,560
Interest-bearing — intercompany	—			—			516			(516		)	—
Total cash and cash equivalents	6,261			14			7,276			(516		)	13,035
Trading assets	—			—			622			—			622
Investment securities	—			—			15,135			—			15,135
Loans held-for-sale, net	425			—			8,132			—			8,557
Finance receivables and loans, net
Finance receivables and loans, net	15,151			476			99,128			—			114,755
Intercompany loans to
Bank subsidiary	4,920			—			—			(4,920		)	—
Nonbank subsidiaries	5,448			356			550			(6,354		)	—
Allowance for loan losses	(245		)	(2		)	(1,256		)	—			(1,503		)
Total finance receivables and loans, net	25,274			830			98,422			(11,274		)	113,252
Investment in operating leases, net	928			—			8,347			—			9,275
Intercompany receivables from
Bank subsidiary	82			—			—			(82		)	—
Nonbank subsidiaries	1,070			327			577			(1,974		)	—
Investment in subsidiaries
Bank subsidiary	13,061			13,061			—			(26,122		)	—
Nonbank subsidiaries	17,433			3,809			—			(21,242		)	—
Mortgage servicing rights	—			—			2,519			—			2,519
Premiums receivable and other insurance assets	—			—			1,853			—			1,853
Other assets	2,664			3			16,712			(638		)	18,741
Assets of operations held-for-sale	(174		)	—			1,244			—			1,070
Total assets	$	67,024		$	18,044		$	160,839		$	(61,848	)	$	184,059
Liabilities
Deposit liabilities
Noninterest-bearing	$	—		$	—		$	2,029		$	—		$	2,029
Interest-bearing	1,768			—			41,253			—			43,021
Total deposit liabilities	1,768			—			43,282			—			45,050
Short-term borrowings	2,756			136			4,788			—			7,680
Long-term debt	39,524			214			53,056			—			92,794
Intercompany debt to
Nonbank subsidiaries	574			492			10,724			(11,790		)	—
Intercompany payables to
Bank subsidiary	39			—			—			(39		)	—
Nonbank subsidiaries	1,266			1			750			(2,017		)	—
Interest payable	1,167			3			417			—			1,587
Unearned insurance premiums and service revenue	—			—			2,576			—			2,576
Reserves for insurance losses and loss adjustment expenses	—			—			580			—			580
Accrued expenses and other liabilities	559			323			13,839			(637		)	14,084
Liabilities of operations held-for-sale	—			—			337			—			337
Total liabilities	47,653			1,169			130,349			(14,483		)	164,688
Total equity	19,371			16,875			30,490			(47,365		)	19,371
Total liabilities and equity	$	67,024		$	18,044		$	160,839		$	(61,848	)	$	184,059

Condensed Consolidating Statement of Cash Flows



Three months ended March 31, 2012 ($ in millions)	Parent			Guarantors			Nonguarantors			Consolidating adjustments			Ally consolidated
Operating activities
Net cash (used in) provided by operating activities	$	(412	)	$	12		$	2,688		$	(146	)	$	2,142
Investing activities
Purchases of available-for-sale securities	—			—			(3,172		)	—			(3,172		)
Proceeds from sales of available-for-sale securities	—			—			2,940			—			2,940
Proceeds from maturities of available-for-sale securities	—			—			1,222			—			1,222
Net (increase) decrease in finance receivables and loans	(3,691		)	26			(744		)	—			(4,409		)
Net decrease (increase) in loans — intercompany	1,649			(9		)	32			(1,672		)	—
Net decrease (increase) in operating lease assets	216			—			(1,219		)	—			(1,003		)
Capital contributions to subsidiaries	(44		)	—			—			44			—
Returns of contributed capital	366			—			—			(366		)	—
Proceeds from sale of business units, net	29			—			—			—			29
Other, net	(48		)	—			371			—			323
Net cash (used in) provided by investing activities	(1,523		)	17			(570		)	(1,994		)	(4,070		)
Financing activities
Net change in short-term borrowings — third party	231			3			(780		)	—			(546		)
Net increase in bank deposits	—			—			1,737			—			1,737
Proceeds from issuance of long-term debt — third party	859			5			9,885			—			10,749
Repayments of long-term debt — third party	(574		)	—			(9,450		)	—			(10,024		)
Net change in debt — intercompany	390			(8		)	(1,640		)	1,258			—
Dividends paid — third party	(200		)	—			—			—			(200		)
Dividends paid and returns of contributed capital — intercompany	—			(11		)	(501		)	512			—
Capital contributions from parent	—			—			44			(44		)	—
Other, net	92			—			260			—			352
Net cash provided by (used in) financing activities	798			(11		)	(445		)	1,726			2,068
Effect of exchange-rate changes on cash and cash equivalents	(136		)	—			(5		)	—			(141		)
Net (decrease) increase in cash and cash equivalents	(1,273		)	18			1,668			(414		)	(1		)
Adjustment for change in cash and cash equivalents of operations held-for-sale	—			—			45			—			45
Cash and cash equivalents at beginning of year	6,261			14			7,276			(516		)	13,035
Cash and cash equivalents at March 31	$	4,988		$	32		$	8,989		$	(930	)	$	13,079



Three months ended March 31, 2011 ($ in millions)	Parent			Guarantors			Nonguarantors			Consolidating adjustments			Ally consolidated
Operating activities
Net cash provided by (used in) operating activities	$	7,381		$	5		$	(3,843	)	$	(501	)	$	3,042
Investing activities
Purchases of available-for-sale securities	—			—			(5,529		)	—			(5,529		)
Proceeds from sales of available-for-sale securities	1,494			—			2,981			—			4,475
Proceeds from maturities of available-for-sale securities	1			—			1,102			—			1,103
Net (increase) decrease in finance receivables and loans	(7,669		)	35			3,385			—			(4,249		)
Net decrease (increase) in loans — intercompany	1,578			(22		)	2			(1,558		)	—
Net (increase) decrease in operating lease assets	(1,293		)	—			1,242			—			(51		)
Capital contributions to subsidiaries	(50		)	(50		)	—			100			—
Proceeds from sale of business units, net	—			—			46			—			46
Other, net	(229		)	2			818			—			591
Net cash (used in) provided by investing activities	(6,168		)	(35		)	4,047			(1,458		)	(3,614		)
Financing activities
Net change in short-term borrowings — third party	312			(39		)	(186		)	—			87
Net increase in bank deposits	—			—			1,670			—			1,670
Proceeds from issuance of long-term debt — third party	2,088			28			11,688			—			13,804
Repayments of long-term debt — third party	(2,131		)	(7		)	(11,073		)	—			(13,211		)
Net change in debt — intercompany	(110		)	(2		)	(1,556		)	1,668			—
Dividends paid — third party	(228		)	—			—			—			(228		)
Dividends paid and returns of contributed capital — intercompany	—			—			(501		)	501			—
Capital contributions from parent	—			50			50			(100		)	—
Other, net	131			—			(48		)	—			83
Net cash provided by financing activities	62			30			44			2,069			2,205
Effect of exchange-rate changes on cash and cash equivalents	—			—			(266		)	—			(266		)
Net increase (decrease) in cash and cash equivalents	1,275			—			(18		)	110			1,367
Adjustment for change in cash and cash equivalents of operations held-for-sale	—			—			(91		)	—			(91		)
Cash and cash equivalents at beginning of year	4,665			2			7,507			(504		)	11,670
Cash and cash equivalents at March 31	$	5,940		$	2		$	7,398		$	(394	)	$	12,946