NOTES TO THE FINANCIAL STATEMENTS NOTE 13. ALLOWANCE FOR CREDIT LOSSES – FINANCIAL SERVICES SECTOR The allowance for credit losses is our estimate of the credit losses related to impaired receivables and operating leases as of the  date of the financial statements. This allowance is based on factors including historical credit loss trends, the credit quality of  our present portfolio, trends in historical and projected used vehicle values and general economic measures. Additions to the  allowance for credit losses are made by recording charges to the provision for credit losses on our income statement. Finance  receivables and lease investments are charged to the allowance for credit losses at the earlier of when an account is deemed to  be uncollectible or when an account is 120 days delinquent, taking into consideration the financial condition of the borrower  or lessee, the value of the collateral, recourse to guarantors and other factors. Recoveries on finance receivables and lease  investments previously charged off as uncollectible are credited to the allowance for credit losses. Changes in the allowance for credit losses for finance receivables, investment in direct financing leases and investment in  operating leases were as follows (in millions): 2004 2003 2002 Beginning balance $ 2,962 $  3,054 $  2,610 Provision for credit losses 923 1,928 2,778 Total charge-offs and recoveries: Charge-offs (1,843) (2,409) (2,613) Recoveries 477 475 469 Net charge-offs (1,366) (1,934) (2,144) Other changes, principally amounts related to finance receivables sold and translation adjustments (48) (86) (190) Ending balance $ 2,471 $  2,962 $  3,054 NOTE 14. LIABILITIES – AUTOMOTIVE SECTOR (IN MILLIONS)  Accrued Liabilities (Current) 2004 2003 Dealer and customer allowances and claims $ 16,356 $  16,098 Deferred revenue 3,502 2,587 Deferred income taxes 2,514 2,996 Employee benefit plans 1,990 1,732 Postretirement benefits other than pensions 1,572 1,397 Accrued interest 1,538 1,814 Other 6,101 5,519 Total accrued liabilities $ 33,573 $  32,143 Other Liabilities (Non-current) Postretirement benefits other than pensions $ 15,306 $  17,136 Dealer and customer allowances and claims 8,557 9,097 Employee benefit plans 5,010 5,189 Pension liability 3,735 4,382 Other  3,091 4,085 Total other liabilities $ 35,699 $  39,889 7 4