Parent And Guarantor Consolidating Financial Statements

9 Months Ended

Sep. 30, 2011

Parent And Guarantor Consolidating Financial Statements [Abstract]

Parent And Guarantor Consolidating Financial Statements

23. 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 combined Guarantors, (iii) the combined nonguarantor subsidiaries (all other subsidiaries), (iv) an elimination column for adjustments to arrive at the information for the parent company, Guarantors, and nonguarantors on a consolidated basis, and (v) the parent company and our subsidiaries 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 September 30, 2011 ($ in millions)	Parent			Guarantors			Nonguarantors			Consolidating adjustments			Ally consolidated
Financing revenue and other interest income
Interest and fees on finance receivables and loans	$	297		$	7		$	1,381		$	(3	)	$	1,682
Interest and fees on finance receivables and loans — intercompany		61			6			7			(74	)		—
Interest on loans held-for-sale		—			—			113			—			113
Interest on trading securities		—			—			4			—			4
Interest and dividends on available-for-sale investment securities		—			—			103			—			103
Interest-bearing cash		1			—			13			—			14
Operating leases		48			—			501			—			549
Total financing revenue and other interest income		407			13			2,122			(77	)		2,465
Interest expense
Interest on deposits		17			—			167			—			184
Interest on short-term borrowings		15			1			82			—			98
Interest on long-term debt		843			3			451			—			1,297
Interest on intercompany debt		(4	)		7			74			(77	)		—
Total interest expense		871			11			774			(77	)		1,579
Depreciation expense on operating lease assets		18			—			278			—			296
Net financing (loss) revenue		(482	)		2			1,070			—			590
Dividends from subsidiary
Nonbank subsidiaries		696			—			—			(696	)		—
Other revenue
Servicing fees		69			—			282			—			351
Servicing asset valuation and hedge activities, net		—			—			(471	)		—			(471	)
Total servicing income, net		69			—			(189	)		—			(120	)
Insurance premiums and service revenue earned		—			—			422			—			422
Gain on mortgage and automotive loans, net		—			—			83			—			83
Other gain on investments, net		—			—			75			—			75
Other income, net of losses		(79	)		—			380			(160	)		141
Total other revenue		(10	)		—			771			(160	)		601
Total net revenue		204			2			1,841			(856	)		1,191
Provision for loan losses		40			—			9			—			49
Noninterest expense
Compensation and benefits expense		95			3			205			—			303
Insurance losses and loss adjustment expenses		—			—			190			—			190
Other operating expenses		141			1			789			(159	)		772
Total noninterest expense		236			4			1,184			(159	)		1,265
(Loss) income from continuing operations before income tax (benefit) expense and undistributed income (loss) of subsidiaries		(72	)		(2	)		648			(697	)		(123	)
Income tax (benefit) expense from continuing operations		(146	)		(2	)		235			—			87
Net (loss) income from continuing operations		74			—			413			(697	)		(210	)
(Loss) income from discontinued operations, net of tax		(2	)		—			2			—			—
Undistributed income (loss) of subsidiaries
Bank subsidiary		366			366			—			(732	)		—
Nonbank subsidiaries		(648	)		78			—			570			—
Net (loss) income	$	(210	)	$	444		$	415		$	(859	)	$	(210	)

Three months ended September 30, 2010 ($ in millions)	Parent			Guarantors			Nonguarantors			Consolidating adjustments			Ally consolidated
Financing revenue and other interest income
Interest and fees on finance receivables and loans	$	211		$	6		$	1,439		$	—		$	1,656
Interest and fees on finance receivables and loans — intercompany		107			1			1			(109	)		—
Interest on loans held-for-sale		7			—			146			—			153
Interest on trading securities		—			—			5			—			5
Interest and dividends on available-for-sale investment securities		—			—			86			—			86
Interest and dividends on available-for-sale investment securities — intercompany		75			—			3			(78	)		—
Interest-bearing cash		6			—			16			—			22
Operating leases		297			—			558			—			855
Total financing revenue and other interest income		703			7			2,254			(187	)		2,777
Interest expense
Interest on deposits		14			—			158			—			172
Interest on short-term borrowings		12			—			98			—			110
Interest on long-term debt		977			3			471			—			1,451
Interest on intercompany debt		(5	)		1			109			(105	)		—
Total interest expense		998			4			836			(105	)		1,733
Depreciation expense on operating lease assets		143			—			311			—			454
Net financing (loss) revenue		(438	)		3			1,107			(82	)		590
Dividends from subsidiaries
Nonbank subsidiaries		129			—			—			(129	)		—
Other revenue
Servicing fees		104			—			301			(1	)		404
Servicing asset valuation and hedge activities, net		—			—			(27	)		—			(27	)
Total servicing income, net		104			—			274			(1	)		377
Insurance premiums and service revenue earned		—			—			470			—			470
Gain on mortgage and automotive loans, net		17			—			309			—			326
Loss on extinguishment of debt		—			—			(2	)		—			(2	)
Other gain on investments, net		—			—			100			—			100
Other income, net of losses		(2	)		—			327			(139	)		186
Total other revenue		119			—			1,478			(140	)		1,457
Total net revenue		(190	)		3			2,585			(351	)		2,047
Provision for loan losses		(165	)		—			174			—			9
Noninterest expense
Compensation and benefits expense		190			1			201			—			392
Insurance losses and loss adjustment expenses		—			—			229			—			229
Other operating expenses		160			7			1,100			(175	)		1,092
Total noninterest expense		350			8			1,530			(175	)		1,713
(Loss) income from continuing operations before income tax (benefit) expense and undistributed income of subsidiaries		(375	)		(5	)		881			(176	)		325
Income tax (benefit) expense from continuing operations		(98	)		—			146			—			48
Net (loss) income from continuing operations		(277	)		(5	)		735			(176	)		277
Income (loss) from discontinued operations, net of tax		34			—			(42	)		—			(8	)
Undistributed income of subsidiaries
Bank subsidiary		253			253			—			(506	)		—
Nonbank subsidiaries		259			97			—			(356	)		—
Net income (loss)	$	269		$	345		$	693		$	(1,038	)	$	269

Nine months ended September 30, 2011 ($ in millions)	Parent			Guarantors			Nonguarantors			Consolidating adjustments			Ally consolidated
Financing revenue and other interest income
Interest and fees on finance receivables and loans	$	818		$	21		$	4,149		$	(7	)	$	4,981
Interest and fees on finance receivables and loans — intercompany		235			17			19			(271	)		—
Interest on loans held-for-sale		—			—			319			—			319
Interest on trading securities		—			—			10			—			10
Interest and dividends on available-for-sale investment securities		3			—			312			—			315
Interest-bearing cash		5			—			36			—			41
Operating leases		663			—			1,186			—			1,849
Total financing revenue and other interest income		1,724			38			6,031			(278	)		7,515
Interest expense
Interest on deposits		48			—			483			—			531
Interest on short-term borrowings		41			2			289			—			332
Interest on long-term debt		2,746			8			1,287			—			4,041
Interest on intercompany debt		(12	)		20			270			(278	)		—
Total interest expense		2,823			30			2,329			(278	)		4,904
Depreciation expense on operating lease assets		218			—			555			—			773
Net financing (loss) revenue		(1,317	)		8			3,147			—			1,838
Dividends from subsidiary
Nonbank subsidiaries		1,207			—			—			(1,207	)		—
Other revenue
Servicing fees		208			—			867			—			1,075
Servicing asset valuation and hedge activities, net		—			—			(663	)		—			(663	)
Total servicing income, net		208			—			204			—			412
Insurance premiums and service revenue earned		—			—			1,288			—			1,288
Gain on mortgage and automotive loans, net		20			—			270			—			290
Loss on extinguishment of debt		(64	)		—			—			—			(64	)
Other gain on investments, net		9			—			242			—			251
Other income, net of losses		(124	)		1			1,196			(463	)		610
Total other revenue		49			1			3,200			(463	)		2,787
Total net revenue		(61	)		9			6,347			(1,670	)		4,625
Provision for loan losses		118			—			95			—			213
Noninterest expense
Compensation and benefits expense		485			8			668			—			1,161
Insurance losses and loss adjustment expenses		—			—			620			—			620
Other operating expenses		376			3			2,543			(462	)		2,460
Total noninterest expense		861			11			3,831			(462	)		4,241
(Loss) income from continuing operations before income tax (benefit) expense and undistributed income (loss) of subsidiaries		(1,040	)		(2	)		2,421			(1,208	)		171
Income tax (benefit) expense from continuing operations		(435	)		3			533			—			101
Net (loss) income from continuing operations		(605	)		(5	)		1,888			(1,208	)		70
Loss from discontinued operations, net of tax		(12	)		—			(9	)		—			(21	)
Undistributed income (loss) of subsidiaries
Bank subsidiary		862			862			—			(1,724	)		—
Nonbank subsidiaries		(196	)		391			—			(195	)		—
Net income (loss)	$	49		$	1,248		$	1,879		$	(3,127	)	$	49

Nine months ended September 30, 2010 ($ in millions)	Parent			Guarantors			Nonguarantors			Consolidating adjustments			Ally consolidated
Financing revenue and other interest income
Interest and fees on finance receivables and loans	$	702		$	20		$	4,169		$	—		$	4,891
Interest and fees on finance receivables and loans — intercompany		421			2			1			(424	)		—
Interest on loans held-for-sale		74			—			450			—			524
Interest on trading securities		—			—			12			—			12
Interest and dividends on available-for-sale investment securities		—			—			277			(2	)		275
Interest and dividends on available-for-sale investment securities — intercompany		115			—			5			(120	)		—
Interest-bearing cash		11			—			43			—			54
Operating leases		780			—			2,249			—			3,029
Total financing revenue and other interest income		2,103			22			7,206			(546	)		8,785
Interest expense
Interest on deposits		36			—			449			—			485
Interest on short-term borrowings		31			—			289			—			320
Interest on long-term debt		2,806			12			1,475			—			4,293
Interest on intercompany debt		(16	)		2			447			(433	)		—
Total interest expense		2,857			14			2,660			(433	)		5,098
Depreciation expense on operating lease assets		292			—			1,344			—			1,636
Net financing (loss) revenue		(1,046	)		8			3,202			(113	)		2,051
Dividends from subsidiaries
Nonbank subsidiaries		145			1			—			(146	)		—
Other revenue
Servicing fees		347			—			827			(1	)		1,173
Servicing asset valuation and hedge activities, net		—			—			(181	)		—			(181	)
Total servicing income, net		347			—			646			(1	)		992
Insurance premiums and service revenue earned		—			—			1,415			—			1,415
Gain on mortgage and automotive loans, net		6			—			857			—			863
Loss on extinguishment of debt		(116	)		—			(7	)		—			(123	)
Other gain on investments, net		—			—			356			(1	)		355
Other income, net of losses		(66	)		1			922			(416	)		441
Total other revenue		171			1			4,189			(418	)		3,943
Total net revenue		(730	)		10			7,391			(677	)		5,994
Provision for loan losses		(213	)		(1	)		585			—			371
Noninterest expense
Compensation and benefits expense		569			8			629			—			1,206
Insurance losses and loss adjustment expenses		—			—			664			—			664
Other operating expenses		483			20			2,755			(452	)		2,806
Total noninterest expense		1,052			28			4,048			(452	)		4,676
(Loss) income from continuing operations before income tax (benefit) expense and undistributed income of subsidiaries		(1,569	)		(17	)		2,758			(225	)		947
Income tax (benefit) expense from continuing operations		(411	)		—			528			—			117
Net (loss) income from continuing operations		(1,158	)		(17	)		2,230			(225	)		830
Income from discontinued operations, net of tax		114			—			52			—			166
Undistributed income of subsidiaries
Bank subsidiary		602			602			—			(1,204	)		—
Nonbank subsidiaries		1,438			234			—			(1,672	)		—
Net income (loss)	$	996		$	819		$	2,282		$	(3,101	)	$	996

Condensed Consolidating Balance Sheet

September 30, 2011 ($ in millions)	Parent			Guarantors			Nonguarantors			Consolidating adjustments			Ally consolidated
Assets
Cash and cash equivalents
Noninterest-bearing	$	1,221		$	—		$	296		$	—		$	1,517
Interest-bearing		7,703			12			7,170			—			14,885
Interest-bearing — intercompany		—			—			763			(763	)		—
Total cash and cash equivalents		8,924			12			8,229			(763	)		16,402
Trading securities		—			—			503			—			503
Investment securities		—			—			13,981			—			13,981
Loans held-for-sale, net		464			—			8,281			—			8,745
Finance receivables and loans, net
Finance receivables and loans, net		16,661			368			91,683			—			108,712
Intercompany loans to
Bank subsidiary		2,200			—			—			(2,200	)		—
Nonbank subsidiaries		6,686			374			438			(7,498	)		—
Allowance for loan losses		(324	)		(1	)		(1,296	)		—			(1,621	)
Total finance receivables and loans, net		25,223			741			90,825			(9,698	)		107,091
Investment in operating leases, net		834			—			8,218			—			9,052
Intercompany receivables from
Bank subsidiary		237			—			—			(237	)		—
Nonbank subsidiaries		1,070			2			1,235			(2,307	)		—
Investment in subsidiaries
Bank subsidiary		12,725			12,725			—			(25,450	)		—
Nonbank subsidiaries		16,112			3,635			—			(19,747	)		—
Mortgage servicing rights		—			—			2,663			—			2,663
Premiums receivable and other insurance assets		(7	)		—			2,036			(3	)		2,026
Other assets		2,702			2			19,459			(670	)		21,493
Total assets	$	68,284		$	17,117		$	155,430		$	(58,875	)	$	181,956
Liabilities
Deposit liabilities
Noninterest-bearing	$	—		$	—		$	2,704		$	—		$	2,704
Interest-bearing		1,824			—			39,798			—			41,622
Total deposit liabilities		1,824			—			42,502			—			44,326
Short-term borrowings		2,649			124			3,160			—			5,933
Long-term debt		40,399			177			49,970			—			90,546
Intercompany debt to
Nonbank subsidiaries		763			438			9,260			(10,461	)		—
Intercompany payables to
Bank subsidiaries		7			—			—			(7	)		—
Nonbank subsidiaries		1,064			1			1,472			(2,537	)		—
Interest payable		1,103			3			606			—			1,712
Unearned insurance premiums and service revenue		—			—			2,757			—			2,757
Reserves for insurance losses and loss adjustment expenses		—			—			690			—			690
Accrued expenses and other liabilities		743			10			16,180			(673	)		16,260
Total liabilities		48,552			753			126,597			(13,678	)		162,224
Total equity		19,732			16,364			28,833			(45,197	)		19,732
Total liabilities and equity	$	68,284		$	17,117		$	155,430		$	(58,875	)	$	181,956

December 31, 2010 ($ in millions)	Parent			Guarantors			Nonguarantors			Consolidating adjustments			Ally consolidated
Assets
Cash and cash equivalents
Noninterest-bearing	$	1,251		$	—		$	463		$	—		$	1,714
Interest-bearing		3,414			1			6,541			—			9,956
Interest-bearing — intercompany		—			—			504			(504	)		—
Total cash and cash equivalents		4,665			1			7,508			(504	)		11,670
Trading securities		—			—			240			—			240
Investment securities		1,488			—			13,358			—			14,846
Investment securities — intercompany		2			—			—			(2	)		—
Loans held-for-sale, net		—			—			11,411			—			11,411
Finance receivables and loans, net
Finance receivables and loans, net		10,047			425			91,941			—			102,413
Intercompany loans to
Bank subsidiary		3,650			—			—			(3,650	)		—
Nonbank subsidiaries		9,461			367			463			(10,291	)		—
Allowance for loan losses		(266	)		(1	)		(1,606	)		—			(1,873	)
Total finance receivables and loans, net		22,892			791			90,798			(13,941	)		100,540
Investment in operating leases, net		3,864			—			5,264			—			9,128
Intercompany receivables from
Bank subsidiary		5,930			—			—			(5,930	)		—
Nonbank subsidiaries		—			213			—			(213	)		—
Investment in subsidiaries
Bank subsidiary		10,886			10,886			—			(21,772	)		—
Nonbank subsidiaries		23,632			3,123			—			(26,755	)		—
Mortgage servicing rights		—			—			3,738			—			3,738
Premiums receivable and other insurance assets		—			—			2,190			(9	)		2,181
Other assets		2,752			3			16,389			(890	)		18,254
Total assets	$	76,111		$	15,017		$	150,896		$	(70,016	)	$	172,008
Liabilities
Deposit liabilities
Noninterest-bearing	$	—		$	—		$	2,131		$	—		$	2,131
Interest-bearing		1,459			—			35,458			—			36,917
Total deposit liabilities		1,459			—			37,589			—			39,048
Short-term borrowings		2,519			89			4,900			—			7,508
Long-term debt		43,897			239			42,476			—			86,612
Intercompany debt to
Nonbank subsidiaries		504			462			13,481			(14,447	)		—
Intercompany payables to
Nonbank subsidiaries		4,466			—			1,716			(6,182	)		—
Interest payable		1,229			3			597			—			1,829
Unearned insurance premiums and service revenue		—			—			2,854			—			2,854
Reserves for insurance losses and loss adjustment expenses		—			—			862			—			862
Accrued expenses and other liabilities		1,548			1			12,117			(860	)		12,806
Total liabilities		55,622			794			116,592			(21,489	)		151,519
Total equity		20,489			14,223			34,304			(48,527	)		20,489
Total liabilities and equity	$	76,111		$	15,017		$	150,896		$	(70,016	)	$	172,008

Condensed Consolidating Statement of Cash Flows

Nine months ended September 30, 2011 ($ in millions)	Parent			Guarantors			Nonguarantors			Consolidating adjustments			Ally consolidated
Operating activities
Net cash provided by (used in) operating activities	$	2,767		$	220		$	4,002		$	(1,208	)	$	5,781
Investing activities
Purchases of available-for-sale securities		—			—			(15,020	)		—			(15,020	)
Proceeds from sales of available-for-sale securities		1,494			—			10,599			—			12,093
Proceeds from maturities of available-for-sale securities		1			—			3,724			—			3,725
Net (increase) decrease in finance receivables and loans		(3,030	)		57			(7,732	)		—			(10,705	)
Proceeds from sales of finance receivables and loans		1,346			—			1,522			—			2,868
Net decrease (increase) in loans — intercompany		4,225			(7	)		25			(4,243	)		—
Net decrease (increase) in operating lease assets		3,028			—			(3,498	)		—			(470	)
Capital contributions to subsidiaries		(1,339	)		(855	)		—			2,194			—
Returns of contributed capital		1,072			—			—			(1,072	)		—
Proceeds from sale of business units, net		—			—			50			—			50
Other, net		(251	)		—			884			—			633
Net cash provided by (used in) investing activities		6,546			(805	)		(9,446	)		(3,121	)		(6,826	)
Financing activities
Net change in short-term borrowings — third party		129			36			(1,428	)		—			(1,263	)
Net increase in bank deposits		—			—			4,454			—			4,454
Proceeds from issuance of long-term debt — third party		3,228			70			33,602			—			36,900
Repayments of long-term debt — third party		(8,415	)		(133	)		(26,028	)		—			(34,576	)
Net change in debt — intercompany		260			(25	)		(4,218	)		3,983			—
Dividends paid — third party		(619	)		—			—			—			(619	)
Dividends paid and returns of contributed capital — intercompany		—			(207	)		(2,073	)		2,280			—
Capital contributions from parent		—			855			1,339			(2,194	)		—
Other, net		363			—			599			—			962
Net cash (used in) provided by financing activities		(5,054	)		596			6,247			4,069			5,858
Effect of exchange-rate changes on cash and cash equivalents		—			—			(45	)		—			(45	)
Net increase (decrease) in cash and cash equivalents		4,259			11			758			(260	)		4,768
Adjustment for change in cash and cash equivalents of operations held-for-sale		—			—			(36	)		—			(36	)
Cash and cash equivalents at beginning of year		4,665			1			7,508			(504	)		11,670
Cash and cash equivalents at September 30	$	8,924		$	12		$	8,230		$	(764	)	$	16,402

Nine months ended September 30, 2010 ($ in millions)	Parent			Guarantors			Nonguarantors			Consolidating adjustments			Ally consolidated
Operating activities
Net cash provided by (used in) operating activities	$	3,661		$	22		$	8,004		$	(147	)	$	11,540
Investing activities
Purchases of available-for-sale securities		—			—			(15,902	)		—			(15,902	)
Proceeds from sales of available-for-sale securities		41			—			13,380			(41	)		13,380
Proceeds from maturities of available-for-sale securities		—			—			3,646			—			3,646
Net decrease (increase) in investment securities — intercompany		309			—			(156	)		(153	)		—
Net (increase) decrease in finance receivables and loans		(3,934	)		171			(8,659	)		—			(12,422	)
Proceeds from sales of finance receivables and loans		5			—			2,549			—			2,554
Net decrease in loans — intercompany		6,087			49			81			(6,217	)		—
Net (increase) decrease in operating lease assets		(2,575	)		—			6,889			—			4,314
Capital contributions to subsidiaries		(737	)		(612	)		—			1,349			—
Returns of contributed capital		518			—			—			(518	)		—
Proceeds from sale of business units, net		59			—			(390	)		—			(331	)
Other, net		144			—			1,014			—			1,158
Net cash (used in) provided by investing activities		(83	)		(392	)		2,452			(5,580	)		(3,603	)
Financing activities
Net change in short-term borrowings — third party		501			(15	)		(5,342	)		—			(4,856	)
Net increase in bank deposits		—			—			4,776			—			4,776
Proceeds from issuance of long-term debt — third party		5,043			152			26,999			41			32,235
Repayments of long-term debt — third party		(4,245	)		(280	)		(39,302	)		—			(43,827	)
Net change in debt — intercompany		163			(82	)		(6,445	)		6,364			—
Dividends paid — third party		(862	)		—			—			—			(862	)
Dividends paid and returns of contributed capital — intercompany		—			—			(665	)		665			—
Capital contributions from parent		—			600			749			(1,349	)		—
Other, net		380			—			875			—			1,255
Net cash provided by (used in) financing activities		980			375			(18,355	)		5,721			(11,279	)
Effect of exchange-rate changes on cash and cash equivalents		—			—			501			—			501
Net increase (decrease) in cash and cash equivalents		4,558			5			(7,398	)		(6	)		(2,841	)
Adjustment for change in cash and cash equivalents of operations held-for-sale		—			—			642			—			642
Cash and cash equivalents at beginning of year		757			5			14,026			—			14,788
Cash and cash equivalents at September 30	$	5,315		$	10		$	7,270		$	(6	)	$	12,589