33 » Cost by Nature

Supplementary information on the expenses by nature is detailed below.

Cost of materials represents the amount of inventories recognized as an expense during the period.

Depreciation of tangible and right-of-use assets, amortization of intangible assets as well as impairment losses and reversals of impairment losses on those assets are primarily included within other operating expenses unless they are directly attributable to the production costs, in which case the expenses are included within the cost of sales. Impairment losses and reversals of impairment losses on goodwill (if applicable) are presented as a separate line item in the consolidated income statement.

Personnel expenses are primarily included within other operating expenses unless they are directly attributable to the production costs, in which case the expenses are included within the cost of sales.

Expenses relating to leases of low-value assets exclude short-term leases of low-value assets.

Expenses by nature € in millions

 

 

Year ending Dec. 31, 2020

 

Year ending Dec. 31, 2019

Cost of materials

 

9,945

 

11,296

Depreciation and amortization

 

1,245

 

1,162

Thereof: included within the cost of sales

 

45

 

31

Thereof: included within personnel expenses

 

12

 

11

Impairment losses

 

125

 

24

Reversals of impairment losses

 

(6)

 

(8)

Wages and salaries

 

2,147

 

2,382

Social security contributions

 

217

 

228

Pension expenses

 

119

 

109

Personnel expenses

 

2,483

 

2,720

Expense relating to short-term leases

 

19

 

38

Expense relating to leases of low-value assets

 

1

 

1

Expense relating to variable lease payments

 

133

 

140

Further information on expenses by function is provided in these Notes. See Note 32