MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Ford Credit’s finance receivables, net of allowance for credit losses, and net investment in operating leases for its on-balance sheet, securitized off-balance sheet, managed and serviced portfolios are shown below (in billions): * At December 31, 2004 and 2003, Ford Credit’s retained interests in sold receivables were $9.2 billion and $12.6 billion, respectively. For more information  regarding these retained interests, see “Off-Balance Sheet Arrangements” below. On-Balance Sheet Receivables. At December 31, 2004 and 2003, about $16.9 billion and $14.3 billion, respectively,  of finance receivables have been sold for legal purposes to consolidated securitization special purpose entities (“SPEs”).  In addition, at December 31, 2004, interests in operating leases and the related vehicles of about $2.5 billion have been  transferred for legal purposes to consolidated securitization SPEs. These receivables and interests in operating leases and the  related vehicles are available only for repayment of debt issued by those entities, and to pay other securitization investors and  other participants; they are not available to pay Ford Credit’s other obligations or the claims of Ford Credit’s other creditors. Securitized Off-Balance Sheet Receivables. Total securitized off-balance sheet receivables decreased $11.3 billion from a year ago. Managed Receivables. Total managed receivables decreased $7.1 billion from a year ago. The decrease primarily reflected  lower retail and operating lease contract placement volumes. The lower level of managed receivables reflected Ford Credit’s  continued focus on financing Ford brand vehicles.  3 1 December 31, 2004 2003 On-Balance Sheet (including on-balance sheet securitizations) Finance receivables Retail installment $ 81.7 $ 77.0 Wholesale 23.8 22.4 Other 5.3 5.9 Total finance receivables, net 110.8 105.3 Net investment in operating leases 21.9 23.2 Total on-balance sheet $  132.7 $ 128.5 Memo: Allowance for credit losses included above $ 2.4 $  2.9 Securitized Off-Balance Sheet Finance receivables Retail installment $ 16.7 $ 26.6 Wholesale 18.9 20.3 Other - - Total finance receivables 35.6 46.9 Net investment in operating leases  - - Total securitized off-balance sheet $ 35.6 $  46.9 Managed  Finance receivables Retail installment $ 98.4 $ 103.6 Wholesale 42.7 42.7 Other 5.3 5.9 Total finance receivables, net 146.4 152.2 Net investment in operating leases 21.9 23.2 Total managed* $  168.3 $ 175.4 Serviced $  172.3 $ 182.7