Exhibit 12
Ally Financial Inc.
Ratio of Earnings to Fixed Charges
Three months ended March 31, | Year ended December 31, | ||||||||||||||||||
($ in millions) | 2017 (a) | 2016 (a) | 2015 (a) | 2014 (a) | 2013 (a) | 2012 (a) | |||||||||||||
Earnings | |||||||||||||||||||
Consolidated net income from continuing operations | $ | 213 | $ | 1,111 | $ | 897 | $ | 925 | $ | 416 | $ | 1,370 | |||||||
Income tax expense (benefit) from continuing operations | 113 | 470 | 496 | 321 | (59 | ) | (856 | ) | |||||||||||
Equity-method investee earnings | — | (18 | ) | (52 | ) | (18 | ) | (15 | ) | (6 | ) | ||||||||
Minority interest expense | — | — | — | — | — | 1 | |||||||||||||
Consolidated income from continuing operations before income taxes, minority interest, and income from equity investees | 326 | 1,563 | 1,341 | 1,228 | 342 | 509 | |||||||||||||
Fixed charges | 686 | 2,641 | 2,460 | 2,826 | 3,344 | 4,031 | |||||||||||||
Earnings available for fixed charges | $ | 1,012 | $ | 4,204 | $ | 3,801 | $ | 4,054 | $ | 3,686 | $ | 4,540 | |||||||
Fixed charges | |||||||||||||||||||
Interest, discount, and issuance expense on debt | $ | 682 | $ | 2,624 | $ | 2,443 | $ | 2,810 | $ | 3,330 | $ | 4,014 | |||||||
Portion of rentals representative of the interest factor | 4 | 17 | 17 | 16 | 15 | 17 | |||||||||||||
Total fixed charges | $ | 686 | $ | 2,641 | $ | 2,460 | $ | 2,826 | $ | 3,345 | $ | 4,031 | |||||||
Ratio of earnings to fixed charges | 1.48 | 1.59 | 1.55 | 1.43 | 1.10 | 1.13 |
(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. Refer to Note 3 to the Condensed Consolidated Financial Statements for further discussion of our discontinued operations. All reported periods of the calculation of the ratio of earnings to fixed charges exclude discontinued operations. |