Annual Report 2013

Notes to the consolidated statement of income

(23) Cost of sales

The cost of sales decreased from 8,778 million euros to 8,546 million euros.

Cost of sales comprises the cost of products and services sold and the purchase cost of merchandise sold. It consists of the directly attributable cost of materials and primary production cost, as well as indirect production overheads including the production-related amortization/depreciation and impairmentimpairment
Impairments of assets are recorded when the recoverable amount is lower than the carrying amount at which the asset is recognized in the statement of financial position. The recoverable amount is calculated as the higher of fair value less costs to sell (net realizable value) and value in use.
of intangible assets and property, plant and equipment.