Notes

header icon

2 Cost of sales

Cost of sales includes interest expenses of €1,984 million (previous year: €2,303 million) attributable to the financial services business.

This item also includes impairment losses on intangible assets (primarily development costs), property, plant and equipment (primarily other equipment, operating and office equipment), and lease assets in the amount of €805 million (previous year: €1,180 million). The impairment losses totaling €344 million (previous year: €356 million) recognized during the reporting period on intangible assets and items of property, plant and equipment result primarily from lower values in use of various products in the Passenger Cars segment, due to market and exchange rate risks, and in particular from expected declines in volumes. The impairment losses on lease assets in the amount of €461 million (previous year: €824 million) are predominantly attributable to the Financial Services segment. They are based on constantly updated internal and external information that is factored into the forecast residual values of the vehicles. €27 million (previous year: €60 million) of this figure is reported in current lease assets.

Government grants related to income amounted to €985 million in the fiscal year (previous year: €1,001 million) and were generally allocated to the functional areas.