EX-12 2 ally201863010-qexhibit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12
Ally Financial Inc.

Ratio of Earnings to Fixed Charges
 
Six months ended June 30,
 
Year ended December 31,
($ in millions)
2018 (a)
 
2017 (a)
2016 (a)
2015 (a)
2014 (a)
2013 (a)
Earnings
 
 
 
 
 
 
 
Consolidated net income from continuing operations
$
599

 
$
926

$
1,111

$
897

$
925

$
416

Income tax expense (benefit) from continuing operations
189

 
581

470

496

321

(59
)
Equity-method investee earnings
(13
)
 
(14
)
(18
)
(52
)
(18
)
(15
)
Consolidated income from continuing operations before income taxes, minority interest, and income from equity investees
775

 
1,493

1,563

1,341

1,228

342

Fixed charges
1,675

 
2,878

2,641

2,460

2,826

3,344

Earnings available for fixed charges
$
2,450

 
$
4,371

$
4,204

$
3,801

$
4,054

$
3,686

Fixed charges
 
 
 
 
 
 
 
Interest, discount, and issuance expense on debt
$
1,668

 
$
2,862

$
2,624

$
2,443

$
2,810

$
3,330

Portion of rentals representative of the interest factor
7

 
16

17

17

16

15

Total fixed charges
$
1,675

 
$
2,878

$
2,641

$
2,460

$
2,826

$
3,345

Ratio of earnings to fixed charges
1.46


1.52

1.59

1.55

1.43

1.10

(a)
For all periods presented, the operating results of our discontinued operations have been removed from continuing operations. We report these businesses separately as discontinued operations in the Condensed Consolidated Financial Statements. Our discontinued operations relate to previous discontinued operations in our Automotive Finance operations, Insurance operations, and Corporate Finance operating segments, and other operations for which we continue to have wind-down, legal, and minimal operational costs. All reported periods of the calculation of the ratio of earnings to fixed charges exclude discontinued operations.