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## 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): 

<img src='content_image/100888.jpg'>

* 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): 

<img src='content_image/100887.jpg'>

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. 

## NOTE 10. FINANCE RECEIVABLES – FINANCIAL SERVICES SECTOR 

Net finance receivables at December 31 were as follows (in millions): 

<img src='content_image/100886.jpg'>

