and used to discontinued operations for all periods presented. ● In the third quarter of 2004, the protective packaging business was reclassified to discontinued operations. A $16 after-tax impairment charge was recorded to reflect the current estimated fair value of the business. The results of the Packaging and Consumer segment have been reclassified to reflect the movement of this business into discontinued operations. ● In the fourth quarter of 2004, the telecommunications business and a small casting business in the U.K. were reclassified to discontinued operations. Impairment charges of $63 (after tax and minority interests) for the telecommunications business and$10(aftertaxandminorityinterests)forthecasting business were recorded to reflect the current estimated fair values of these businesses. The results of the Other group have been reclassified to reflect the movement of these businesses into discontinued operations. The following table details selected financial information for the businesses included within discontinued operations in the Statement of Consolidated Income. Thelossof$92indiscontinuedoperationsin2004was comprised of impairment losses of $89 to reflect the current estimated fair values on businesses to be divested as described above, $8 of net operating losses of these businesses, and a net gain of $5 on businesses sold in 2004. The loss of $70 in discontinued operations in 2003 was comprised of an impairment loss of $45 related to the reduction in the estimated fair value of the automotive fasteners business and $25 of operating losses. The loss of $132 in discontinued operations in 2002 was comprised of an impairment loss of $59 to reduce the carrying values of certain businesses to be divested to their estimated fair values less costs to sell, $53 of operating losses, and $20 for the impairment of goodwill in the telecom- munications business. The major classes of assets and liabilities of operations held for sale in the Consolidated Balance Sheet are as follows: For all of the businesses to be divested, the fair values were estimated utilizing accepted valuation techniques. The fair values that are ultimately realized upon the sale of the businesses to 48 *Reversals of prior year layoff and other costs resulted from changes in facts and circumstances that led to changes in estimated costs. Restructuring and other charges for each of the three years in the period ended December 31, 2004, were comprised of: D. Restructuring and Other Charges In addition to the AROs discussed above, Alcoa may have other obligations in the event of a permanent plant shutdown. However, these plant assets have indeterminate lives and, therefore, the associated AROs are not reasonably estimable and liabilities cannot be established. The changes in the carrying amount of AROs for the years ended December 31, 2004 and 2003 follow. The cumulative effect adjustment recognized upon adoption of this standard was $47, consisting primarily of costs to estab- lish assets and liabilities related to spent pot lining disposal for pots currently in operation. Net income for the full year of 2002 would not have been materially different if this standard had been adopted effective January 1, 2002. Effective January 1, 2003, Alcoa adopted SFAS No. 143, ‘‘Accounting for Asset Retirement Obligations.’’ Under this standard, Alcoa recognized additional liabilities, at fair value, of approximately $136 at January 1, 2003, for asset retirement obligations ( AROs), consisting primarily of costs associated with spent pot lining disposal, bauxite residue disposal, mine reclamation, and landfills. These costs reflect the legal obliga- tions associated with the normal operation of Alcoa’s bauxite mining, alumina refining, and aluminum smelting facilities. Alcoa had previously recorded liabilities for certain of these costs. Additionally, Alcoa capitalized asset retirement costs by increasing the carrying amount of related long-lived assets, primarily machinery and equipment, and recorded associated accumulated depreciation from the time the original assets were placed into service. At January 1, 2003, Alcoa increased the following: net properties, plants, and equipment by $74; net deferred tax assets by $22; liabilities by $136 as noted above; and minority interests by $7. be divested may differ from the estimated fair values reflected in the financial statements. C. Asset Retirement Obligations December 31 2004 2003 Assets: Receivables $9 8 $181 Inventories 44 161 Properties, plants, and equipment, net 42 371 Other assets 26 79 Total assets held for sale $210 $792 Liabilities: Accounts payable and accrued expenses $5 4 $5 Other liabilities 15 46 Total liabilities of operations held for sale $6 9 $9 December 31 2004 2003 2002 Asset write-downs $ 6 $ — $292 Layoff costs 41 44 104 Other costs — — 25 Sale of specialty chemicals business (53) — — Net additions to/(reversals) of prior year layoff and other costs * (15) (38) ( 7) Net additions to/(reversals) of prior year gains/losses on assets held for sale — (33) — Restructuring and other charges $(21) $(27) $414 December 31 2004 2003 Balance at beginning of year $217 $224 Accretion expense 15 16 Payments (25) (27) Liabilities incurred 30 8 Translation and other (4) (4) Balance at end of year $233 $217 2004 2003 2002 Sales $ 482 $ 636 $ 685 Loss from operations (14) (47) (153 ) Gain on sale of businesses 8 — — Loss from impairment (153) (69) (91) Pre-tax loss (159) (116) (244 ) Benefit for taxes 24 39 75 Minority interests 43 7 37 Loss from discontinued operations $ (92) $ (70) $(132 )