Exhibit 12
ALLY FINANCIAL INC.
RATIO OF EARNINGS TO FIXED CHARGES
| Nine months ended September 30, | Year ended December 31, | |||||||||||||||||||||||
| ($ in millions) | 2010 (a) | 2009 (a) | 2008 (a) | 2007 (a) | 2006 (a) | 2005 (a) | ||||||||||||||||||
Earnings | ||||||||||||||||||||||||
Consolidated net income (loss) from continuing operations | $ | 836 | $ | (7,006 | ) | $ | 4,902 | $ | (1,879 | ) | $ | 1,863 | $ | 2,057 | ||||||||||
Income tax expense (benefit) from continuing operations | 117 | 77 | (131 | ) | 514 | 31 | 1,084 | |||||||||||||||||
Equity-method investee distribution | — | — | 111 | 65 | 651 | 283 | ||||||||||||||||||
Equity-method investee (losses) earnings | (41 | ) | (10 | ) | 533 | 5 | (512 | ) | (142 | ) | ||||||||||||||
Minority interest expense | 1 | 1 | 1 | 2 | 9 | (57 | ) | |||||||||||||||||
Consolidated income (loss) from continuing operations before income taxes, minority interest, and income (loss) from equity investees | 913 | (6,938 | ) | 5,416 | (1,293 | ) | 2,042 | 3,225 | ||||||||||||||||
Fixed charges | 5,198 | 7,253 | 10,351 | 13,798 | 14,752 | 12,035 | ||||||||||||||||||
Earnings available for fixed charges | $ | 6,111 | $ | 315 | $ | 15,767 | $ | 12,505 | $ | 16,794 | $ | 15,260 | ||||||||||||
Fixed charges | ||||||||||||||||||||||||
Interest, discount, and issuance expense on debt | $ | 5,170 | $ | 7,217 | $ | 10,298 | $ | 13,738 | $ | 14,686 | $ | 11,976 | ||||||||||||
Portion of rentals representative of the interest factor | 28 | 36 | 53 | 60 | 66 | 59 | ||||||||||||||||||
Total fixed charges | 5,198 | 7,253 | 10,351 | 13,798 | 14,752 | 12,035 | ||||||||||||||||||
Preferred dividend requirements | 975 | 1,224 | — | 192 | 22 | — | ||||||||||||||||||
Total fixed charges and preferred dividend requirements | $ | 6,173 | $ | 8,477 | $ | 10,351 | $ | 13,990 | $ | 14,774 | $ | 12,035 | ||||||||||||
Ratio of earnings to fixed charges (b) | 1.18 | 0.04 | 1.52 | 0.91 | 1.14 | 1.27 | ||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred dividend requirements (c) | 0.99 | 0.04 | 1.52 | 0.89 | 1.14 | 1.27 | ||||||||||||||||||
| (a) | During 2009, we committed to sell certain operations of our International Automotive Finance operations, Insurance operations, Mortgage operations, and Commercial Finance Group. We report these businesses separately as discontinued operations in the Condensed Consolidated Financial Statements. Refer to Note 2 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. |
| (b) | The ratio indicates a less than one-to-one coverage for the years ended December 31, 2009 and 2007. Earnings available for fixed charges for the years ended December 31, 2009 and 2007, were inadequate to cover total fixed charges. The deficit amounts for the ratio were $6,938 million and $1,293 million for the years ended December 31, 2009 and 2007, respectively. |
| (c) | The ratio indicates a less than one-to-one coverage for the nine months ended September 30, 2010, and the years ended December 31, 2009 and 2007. Earnings available for fixed charges and preferred dividend requirements for the nine months ended September 30, 2010, and the years ended December 31, 2009 and 2007, were inadequate to cover total fixed charges and preferred dividend requirements. The deficit amounts for the ratio were $62 million for the nine months ended September 30, 2010, and $8,162 million and $1,485 million for the years ended December 31, 2009 and 2007, respectively. |