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):
## Table 0 ##
As of December 31, 2004, there are no significant assets or liabilities remaining on our balance sheet related to discontinued operations.
Financial Services Sector 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):
## Table 1 ##
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
Consolidated Statement Of Stockholders?
Equity Ford Motor Company and Subsidiaries For the Years Ended December 31, 2005, 2004 and 2003 (in millions)
## Table 2 ##
The accompanying notes are part of the financial statements.
For securities that are quoted in active markets, the trustee/ custodian determines fair value by applying securities’ prices obtained from its pricing vendors.
For commingled funds that are not actively traded, the trustee applies pricing information provided by investment management firms to the unit quantities of such funds.
Investment management firms employ their own pricing vendors to value the securities underlying each commingled fund.
Underlying securities that are not actively traded derive their prices from investment managers, which in turn, employ vendors that use pricing models (e. g. , discounted cash flow, comparables).
The domestic defined benefit plans have no investment in our stock, except through the S&P 500 commingled trust index fund.
The trustee obtains estimated prices from vendors for securities that are not easily quotable and they are categorized accordingly as Level 3.
The following table details further information on our plan assets where we have used significant unobservable inputs (Level 3):
## Table 3 ##
PENSION TRUSTS’ ASSET ALLOCATIONS There are two pension trusts, one in the U. S.  and one in the U. K.  The U. S.  pension trust had assets of $1,739?
million and $1,632?million as of December?31, 2017 and 2016 respectively, and the target allocations in 2017 include 68% fixed income, 27% domestic equities and 5% international equities.
The U. K.  pension trust had assets of $480?
million and $441?
million as of December?31, 2017 and 2016, respectively, and the target allocations in 2017 include 40% fixed income, 30% diversified growth funds, 20% equities and 10% real estate.
The pension assets are invested with the goal of producing a combination of capital growth, income and a liability hedge.
The mix of assets is established after consideration of the longterm performance and risk characteristics of asset classes.
Investments are selected based on their potential to enhance returns, preserve capital and reduce overall volatility.
Holdings are diversified within each asset class.
The portfolios employ a mix of index and actively managed equity strategies by market capitalization, style, geographic regions and economic sectors.
The fixed income strategies include U. S.  long duration securities, opportunistic fixed income securities and U. K.  debt instruments.
The short-term portfolio, whose primary goal is capital preservation for liquidity purposes, is composed of government and government-agency securities, uninvested cash, receivables and payables.
The portfolios do not employ any financial leverage.
U. S.  DEFINED CONTRIBUTION PLANS Assets of the defined contribution plans in the U. S.  consist primarily of investment options which include actively managed equity, indexed equity, actively managed equity/bond funds, target date funds, S&P Global Inc.  common stock, stable value and money market strategies.
There is also a self-directed mutual fund investment option.
The plans purchased 228,248 shares and sold 297,750 shares of S&P Global Inc.  common stock in 2017 and purchased 216,035 shares and sold 437,283 shares of S&P Global Inc.  common stock in 2016.
The plans held approximately 1.5?million shares of S&P Global Inc.  common stock as of December?31, 2017 and 1.6?million shares as of December?31, 2016, with market values of $255?million and $171?million, respectively.
The plans received dividends on S&P Global Inc.  common stock of $3?million and $2?million during the years ended December?31, 2017 and December?31, 2016 respectively.8.
Stock-Based Compensation We issue stock-based incentive awards to our eligible employees and Directors under the 2002 Employee Stock Incentive Plan and a Director Deferred Stock Ownership Plan.2002 EMPLOYEE STOCK INCENTIVE PLAN (THE “2002 PLAN”)—The 2002 Plan permits the granting of nonqualified stock options, stock appreciation rights, performance stock, restricted stock and other stock-based awards.
DIRECTOR DEFERRED STOCK OWNERSHIP PLAN— Under this plan, common stock reserved may be credited to deferred stock accounts for eligible Directors.
In general, the plan requires that 50% of eligible Directors’ annual compensation plus dividend equivalents be credited to deferred stock accounts.
Each Director may also elect to defer all or a portion of the remaining compensation and have an equivalent number of shares credited to the deferred stock account.
Recipients under this plan are not required to provide consideration to us other than rendering service.
Shares will be delivered as of the date a recipient ceases to be a member of the Board of Directors or within five years thereafter, if so elected.
The plan will remain in effect until terminated by the Board of Directors or until no shares of stock remain available under the plan.

<table><tr><td></td><td>2004</td><td>2003</td><td>2002</td></tr><tr><td>Sales</td><td>$186</td><td>$396</td><td>$665</td></tr><tr><td>Operating income/(loss) from discontinued operations</td><td>$-185</td><td>$-64</td><td>$-247</td></tr><tr><td>Gain/(loss) on discontinued operations</td><td>-165</td><td>-105</td><td>-168</td></tr><tr><td>(Provision for)/benefit from income taxes</td><td>122</td><td>29</td><td>89</td></tr><tr><td>Income/(loss) from discontinued operations</td><td>$-228</td><td>$-140</td><td>$-326</td></tr></table>
<table><tr><td></td><td>2004</td><td>2003</td><td>2002</td></tr><tr><td>Revenues</td><td>$395</td><td>$446</td><td>$665</td></tr><tr><td>Operating income/(loss) from discontinued operations</td><td>$138</td><td>$83</td><td>$27</td></tr><tr><td>Gain/(loss) on discontinued operations</td><td>—</td><td>-50</td><td>-31</td></tr><tr><td>(Provision for)/benefit from income taxes</td><td>-57</td><td>-36</td><td>-3</td></tr><tr><td>Income/(loss) from discontinued operations</td><td>$81</td><td>$-3</td><td>$-7</td></tr></table>
<table><tr><td></td><td></td><td>Capital in Excess</td><td></td><td colspan="3">Accumulated Other Comprehensive Income/(Loss)</td><td></td><td></td></tr><tr><td></td><td></td><td>of Par</td><td></td><td>Foreign</td><td>Minimum</td><td>Derivative</td><td></td><td></td></tr><tr><td></td><td>Capital</td><td>Value of</td><td>Retained</td><td>Currency</td><td>Pension</td><td>Instruments</td><td></td><td></td></tr><tr><td></td><td>Stock</td><td>Stock</td><td>Earnings</td><td>Translation</td><td>Liability</td><td>and Other</td><td>Other</td><td>Total</td></tr><tr><td>YEAR ENDED DECEMBER 31, 2003</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Balance at beginning of year</td><td>$19</td><td>$5,420</td><td>$8,659</td><td>$-1,291</td><td>$-5,776</td><td>$536</td><td>$-1,977</td><td>$5,590</td></tr><tr><td>Comprehensive income/(loss)</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net income</td><td></td><td></td><td>495</td><td></td><td></td><td></td><td></td><td>495</td></tr><tr><td>Foreign currency translation</td><td></td><td></td><td></td><td>3,075</td><td></td><td></td><td></td><td>3,075</td></tr><tr><td>Net gain /(loss) on derivative instruments (net of tax of $430)</td><td></td><td></td><td></td><td>-191</td><td></td><td>989</td><td></td><td>798</td></tr><tr><td>Minimum pension liability (net of tax of $1,208)</td><td></td><td></td><td></td><td></td><td>2,243</td><td></td><td></td><td>2,243</td></tr><tr><td>Net holding gain/(loss) (net of tax of $1)</td><td></td><td></td><td></td><td></td><td></td><td>1</td><td></td><td>1</td></tr><tr><td>Comprehensive income/(loss)</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>6,612</td></tr><tr><td>Common Stock issued for employee benefit plans and other</td><td></td><td>-46</td><td></td><td></td><td></td><td></td><td></td><td>-46</td></tr><tr><td>ESOP loan and treasury stock</td><td></td><td></td><td></td><td></td><td></td><td></td><td>228</td><td>228</td></tr><tr><td>Cash dividends</td><td></td><td></td><td>-733</td><td></td><td></td><td></td><td></td><td>-733</td></tr><tr><td>Balance at end of year</td><td>$19</td><td>$5,374</td><td>$8,421</td><td>$1,593</td><td>$-3,533</td><td>$1,526</td><td>$-1,749</td><td>$11,651</td></tr><tr><td>YEAR ENDED DECEMBER 31, 2004</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Balance at beginning of year</td><td>$19</td><td>$5,374</td><td>$8,421</td><td>$1,593</td><td>$-3,533</td><td>$1,526</td><td>$-1,749</td><td>$11,651</td></tr><tr><td>Comprehensive income/(loss)</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net income</td><td></td><td></td><td>3,487</td><td></td><td></td><td></td><td></td><td>3,487</td></tr><tr><td>Foreign currency translation</td><td></td><td></td><td></td><td>2,352</td><td></td><td></td><td></td><td>2,352</td></tr><tr><td>Net gain/(loss) on derivative instruments (net of tax of $98)</td><td></td><td></td><td></td><td>-121</td><td></td><td>-62</td><td></td><td>-183</td></tr><tr><td>Minimum pension liability (net of tax of $255)</td><td></td><td></td><td></td><td></td><td>-473</td><td></td><td></td><td>-473</td></tr><tr><td>Net holding gain/(loss) (net of tax of $13)</td><td></td><td></td><td></td><td></td><td></td><td>-24</td><td></td><td>-24</td></tr><tr><td>Comprehensive income/(loss)</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>5,159</td></tr><tr><td>Common Stock issued for employee benefit plans and other</td><td></td><td>-53</td><td></td><td></td><td></td><td></td><td></td><td>-53</td></tr><tr><td>ESOP loan and Treasury stock</td><td></td><td></td><td></td><td></td><td></td><td></td><td>21</td><td>21</td></tr><tr><td>Cash dividends</td><td></td><td></td><td>-733</td><td></td><td></td><td></td><td></td><td>-733</td></tr><tr><td>Balance at end of year</td><td>$19</td><td>$5,321</td><td>$11,175</td><td>$3,824</td><td>$-4,006</td><td>$1,440</td><td>$-1,728</td><td>$16,045</td></tr><tr><td>YEAR ENDED DECEMBER 31, 2005</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Balance at beginning of year</td><td>$19</td><td>$5,321</td><td>$11,175</td><td>$3,824</td><td>$-4,006</td><td>$1,440</td><td>$-1,728</td><td>$16,045</td></tr><tr><td>Comprehensive income/(loss)</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net income</td><td></td><td></td><td>2,024</td><td></td><td></td><td></td><td></td><td>2,024</td></tr><tr><td>Foreign currency translation (Note 2)</td><td></td><td></td><td></td><td>-3,446</td><td></td><td></td><td></td><td>-3,446</td></tr><tr><td>Net gain/(loss) on derivative instruments (net of tax of $501)</td><td></td><td></td><td></td><td>284</td><td></td><td>-1,214</td><td></td><td>-930</td></tr><tr><td>Minimum pension liability (net of tax of $210)</td><td></td><td></td><td></td><td></td><td>-390</td><td></td><td></td><td>-390</td></tr><tr><td>Net holding gain/(loss) (net of tax of $29)</td><td></td><td></td><td></td><td></td><td></td><td>-54</td><td></td><td>-54</td></tr><tr><td>Comprehensive income/(loss)</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>-2,796</td></tr><tr><td>Common Stock issued for employee benefit plans and other</td><td></td><td>-449</td><td></td><td></td><td></td><td></td><td></td><td>-449</td></tr><tr><td>ESOP loan and treasury stock</td><td></td><td></td><td></td><td></td><td></td><td></td><td>895</td><td>895</td></tr><tr><td>Cash dividends</td><td></td><td></td><td>-738</td><td></td><td></td><td></td><td></td><td>-738</td></tr><tr><td>Balance at end of year</td><td>$19</td><td>$4,872</td><td>$12,461</td><td>$662</td><td>$-4,396</td><td>$172</td><td>$-833</td><td>$12,957</td></tr></table>
<table><tr><td>(in millions)</td><td>Level 3</td></tr><tr><td>Balance as of December 31, 2016</td><td>$11</td></tr><tr><td>Purchases</td><td>28</td></tr><tr><td>Distributions</td><td>-1</td></tr><tr><td>Gain (loss)</td><td>1</td></tr><tr><td>Balance as of December 31, 2017</td><td>$39</td></tr></table>

Question: Balance at beginning of which year ENDED DECEMBER 31 in terms of Retained Earnings is the highest?
Answer: 2005