NOTE 4. Discontinued and Held-for-Sale Operations (Continued) Discontinued Operations. The Automotive sector completed the disposition of several of its non-core businesses initiated in  2002 and 2003, including our former automotive recycling businesses in the United States and Canada, our electric vehicle  business in Norway, and our insurance-related products and services business in the U.K. Associated with the disposition of  the entities, we recorded pre-tax charges of $9 million, $105 million, and $168 million in 2004, 2003, and 2002 respectively,  reflected in gain/(loss) on discontinued operations. In 2004, management committed to sell our Formula One racing operations, as these operations were not consistent with our  Premier Automotive Group (“PAG”) Improvement Plan nor our goals to build on the basics and focus on our core business. We  recorded a pre-tax charge of $69 million related to the anticipated loss on the sale of the net assets and a pre-tax impairment  of goodwill of $204 million. We reclassified $45 million of pre-tax operating losses for the first nine months of 2004 and  recorded a pre-tax charge of $23 million related to the write-down of inventory to  Operating income/(loss) from discontinued  operations . During the fourth quarter of 2004, we completed the sale of our Formula One racing operations and recorded  additional pre-tax losses of $8 million. The results of all discontinued Automotive sector operations are as follows (in millions): 2004 2003 2002 Sales $ 186 $  396 $  665 Operating income/(loss) from discontinued operations $ (185) $  (64) $ (247) Gain/(loss) on discontinued operations (165) (105) (168) (Provision for)/benefit from income taxes 122 29 89 Income/(loss) from discontinued operations $ (228) $ (140) $ (326) As of December 31, 2004, there are no significant assets or liabilities remaining on our balance sheet related to discontinued operations. Discontinued Operations. Consistent with our strategy to focus on our core business, we expect to either complete the sale  during 2005 or have already completed the disposition of the operations referenced below. During 2003, we completed the sale of Axus, our all-makes vehicle fleet leasing operations in Europe, New Zealand and  Australia. In 2002, we recognized a pre-tax charge of $31 million, reflected in loss on discontinued operations. This amount  represented the difference between the selling price of these assets, less costs to sell them, and their recorded book value. During 2004, we completed the sale of AMI Leasing and Fleet Management Services, our operation in the United States  that offered full service car and truck leasing. In 2003, we recognized a pre-tax charge of $50 million, reflected in loss on  discontinued operations. This amount represented the difference between the selling price of these assets, less costs to sell them,  and their recorded book value. During the fourth quarter of 2004, management committed to a plan to sell Triad Financial Corporation, our operation in  the U.S. that specializes in automobile retail installment sales contracts with borrowers who generally would not be expected  to qualify, based on their credit worthiness, for traditional financing sources such as those provided by commercial banks or  automobile manufacturers’ affiliated finance companies. We expect to complete the sale of this business during 2005 for an  amount approximately equal to book value. The results of all discontinued Financial Services sector discontinued operations are as follows (in millions): 2004 2003 2002 Revenues $ 395 $  446 $  665 Operating income/(loss) from discontinued operations $ 138 $  83 $  27 Gain/(loss) on discontinued operations - (50) (31)  (Provision for)/benefit from income taxes (57) (36) (3) Income/(loss) from discontinued operations $ 81 $  (3) $  (7) At December 31, 2004 and December 31, 2003, assets of our discontinued operations totaled approximately $2.2 billion  and $1.8 billion, respectively, and consisted primarily of net finance receivables of about $1.7 billion and $850 million,  respectively; net investment in operating leases of about $300 million at December 31, 2003; and retained interest in  securitized assets of about $350 million and $450 million, respectively. 6 6 Financial Services Sector NOTES TO THE FINANCIAL STATEMENTS