NOTES TO THE FINANCIAL STATEMENTS  NOTE 12. SALES OF RECEIVABLES – FINANCIAL SERVICES SECTOR  Servicing Portfolio Retained Interest Investment and Other Income We retain servicing rights for receivables sold in off-balance sheet securitization and whole-loan sale transactions. The servicing portfolio is summarized in the following table (in millions): Components of retained interest in securitized assets at December 31 include (in millions): Most of the retained interest in sold wholesale receivables ($5.5 billion and $8 billion at December 31, 2004 and December 31, 2003, respectively) represents our undivided interest in wholesale receivables that are available to support the  issuance of additional securities by a securitization SPE; the balance represents credit enhancements.  Retained interests are recorded at fair value. For wholesale receivables, book value approximates fair value because of their  short-term maturities. The fair value of subordinated and senior securities is estimated based on market prices. In determining  the fair value of residual interest in securitization transactions, we discount the present value of the projected cash flows  retained at various discount rates based on economic factors in individual countries. Investments in subordinated securities  and restricted cash are senior to the residual interest in securitization transactions. The following table summarizes the activity related to off-balance sheet sales of receivables reported in  Revenues  for the years ended December 31 (in millions): Retail & Wholesale  Receivables Servicing portfolio at December 31, 2002 $  75,071 Receivables sales 19,296 Collections (40,197) Servicing portfolio at December 31, 2003 $  54,170 Receivables sales 6,933 Collections (21,530) Servicing portfolio at December 31, 2004 $  39,573 2004 2003 Interest in sold wholesale receivables $ 6,904  $  9,249 Subordinated securities 875 1,455 Residual interest in securitization transactions 756 834 Restricted cash held for benefit of securitization SPEs 503 511 Senior securities 128 520 Retained interest in securitized assets $ 9,166  $  12,569 2004 2003 2002 Net gain on sales of receivables $ 155 $  373 $  489 Income on interest in sold wholesale receivables and retained securities 588 679 606 Servicing fees 372 618 689 Income on residual interest and other  815 941 775 Investment and other income related to sales of receivables $ 1,930 $  2,611 $  2,559 7 2