NOTES TO THE FINANCIAL STATEMENTS NOTE 9. GOODWILL AND OTHER INTANGIBLES We perform our annual goodwill and intangible asset impairment test in the second quarter. The goodwill test is conducted on  a reporting unit level that is aligned with our current senior management structure. To test for impairment, the carrying value  of each reporting unit, including goodwill is compared with its fair value. Fair value is estimated using the present value of free  cash flows method. No impairment resulted from our annual test in the second quarter of 2004. We impaired $64 million of goodwill related to dealerships in the Asia Pacific region that were classified as held for sale  during the fourth quarter of 2004. In measuring the impairment, the carrying value of these dealerships, including goodwill,  was compared against offers received from third parties. Changes in the carrying amount of goodwill are as follows (in millions):  * Beginning balance has been adjusted to reflect the reclassification of goodwill to assets of  Discontinued/held-for-sale operations  for entities classified as held for  sale during the year. In addition, included within  Equity in net assets of affiliated companies  was goodwill of $166 million at December 31, 2004.  The components of identifiable intangible assets are as follows as of December 31, 2004 (in millions): Pre-tax amortization expense related to these intangible assets for the years ended December 31, 2004 and 2003 was $36 million and $35 million, respectively. Intangible asset amortization is forecasted to range from $30 million to $40 million  per year for the next five years. In 2002 we adopted SFAS No. 142,  Goodwill and Other Intangible Assets.  As a result we recognized transition charges of  $1,002 million. The charges primarily relate to the impairment of goodwill in Kwik-Fit, our former all-makes European vehicle  repair business and the impairment of goodwill in Hertz’ industrial and construction equipment rental business.  Net finance receivables at December 31 were as follows (in millions): 2004 2003 Retail $ 84,843 $  80,017 Wholesale 22,666 22,910 Other finance receivables 8,409 9,083 Total finance receivables 115,918 112,010 Allowance for credit losses (2,166) (2,338) Other 72 331 Net finance and other receivables $ 113,824 $ 110,003 Automotive Sector Financial Services Sector Amortizable Non-amortizable Amortizable Non-amortizable Gross carrying amount $ 604 $ 484 $  94 $ 189 Less: accumulated amortization (150) - (54) - Net intangible assets $ 454 $ 484 $  40 $ 189 Automotive Sector Financial Services Sector The Americas Ford  Europe/PAG Ford Asia  Pacific and  Africa/Mazda Ford Credit Hertz Beginning balance, December 31, 2003* $  154 $  4,951 $  72 $  68 $  640 Goodwill acquired 34 11 - - - Goodwill impairment - - (64) Exchange translation/other  286 (8) (48) 8 Ending balance, December 31, 2004 $  188 $  5,248 $  - $  20 $  648 NOTE 10. FINANCE RECEIVABLES – FINANCIAL SERVICES SECTOR  7 0