NOTES TO THE FINANCIAL STATEMENTS The charges for employee separation actions were recognized in  Cost of sales . The table below summarizes the pre-tax charges  incurred in 2004 for the employees separation actions described above, the related liability at December 31, 2004 and the  estimated total charges related to these actions (in millions): Additionally, in 2002, we recognized a pre-tax charge of $173 million related to the transfer of Transit vehicle production to  Turkey, die-casting rationalization and other manufacturing actions in our Ford Europe and PAG segment. We also recognized  a pre-tax charge of $157 million in 2002 related to line speed reduction at our Halewood facilities and other efficiency actions  in our Ford Europe and PAG segment. Dispositions. In 2002, we completed the sale of our interest in Kwik-Fit Holdings Ltd. (“Kwik-Fit”), a European all-makes vehicle  repair business, to an acquisition company formed by CVC Capital Partners. The sales price of £330 million (equivalent  to about $500 million) consisted of a combination of approximately $300 million in cash and a note with a face value of  approximately $200 million. We recognized a pre-tax loss of $519 million in cost of sales in 2002. Additionally, in 2002,  we acquired a 19% equity stake in the acquisition company. Our disposal of our interest in Kwik-Fit was not reflected as  a discontinued operation due to our continued involvement as an equity investor in the acquisition company. In 2003, we  recognized pre-tax income of $49 million related to the acceleration of payments received on the note. During 2004, Ford Credit announced a sales branch integration plan, which includes the consolidation of regional sales offices  and an integration of branch locations. The sales branch integration plan will be completed during 2006. The costs associated  with this restructuring action are reported in  Operating and other expenses.  The table below summarizes the pre-tax charge  incurred, the related liability at December 31, 2004 and the estimated total charges related to these actions (in millions):  We have two principal qualified defined benefit retirement plans in the U.S. The Ford-UAW Retirement Plan covers hourly  employees represented by the UAW, and the General Retirement Plan covers substantially all other Ford employees in the U.S  hired on or before December 31, 2003. The hourly plan provides noncontributory benefits related to employee service. The  salaried plan provides similar noncontributory benefits and contributory benefits related to pay and service. Other U.S. and  non-U.S. subsidiaries have separate plans that generally provide similar types of benefits for their employees. We established,  effective January 1, 2004, a defined contribution plan generally covering new salaried U.S. employees hired on or after that  date. Ford-UAW Retirement Plan expense accruals for UAW-represented Ford employees assigned to Visteon Corporation  (“Visteon Hourly Employees”) are charged to Visteon Corporation (“Visteon”), our largest supplier. For our plans that provide benefits based on salary, we project employee future salary growth for such salary-related benefits.  Certain of our defined benefit pension plans provide benefits that are not based on salary (e.g., U.S. Ford-UAW Retirement  Plan, noncontributory portion of the U.S. General Retirement Plan, and Canada Ford-UAW Retirement Plan). The salary growth  assumption is not applicable to these benefits. Plan obligations and costs are based on existing retirement plan provisions. No assumption is made regarding any potential  future changes to benefit provisions beyond those to which we are presently committed (e.g., in labor contracts). In general, our plans are funded, with the main exceptions of certain plans in Germany and the U.S. defined benefit plans for  senior management. In such cases, an unfunded liability is recorded. 8 3 NOTE 22. RETIREMENT BENEFITS Employee Retirement and Savings Plans Financial Services Sector Liability  at December  31, 2003 Liability  at December  31, 2004 Segment Accrued  in 2004 Paid in 2004 Other* Estimated  Total Costs Ford Europe and PAG $  354  $  186 $  (273) $  8 $  275 $  774 The Americas - 40 (40) - - 40 Total $  354  $  226 $  (313) $  8 $  275 $  814 * Includes foreign currency translation adjustments. Segment Liability at December  31, 2003 Accrued  in 2004 Paid in 2004 Other Liability at December  31, 2004 Estimated  Total Costs Ford Credit $  - $  11 $  (1) $  - $  10 $  66