Notes (IFRS)

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7. Functional Costs

Included in cost of sales and other functional costs are Cost of materials (including changes in inventories) of 26,267 M € (2005: 20,800 M €; 2004: 19,734 M €).

Cost of sales include the amortisation expenses of fair value adjustments of fixed assets and inventories in the amount of 57 M € (2005: 136 M €; 2004: 217 M €); these are relating to the EADS merger, the Airbus Combination and the formation of MBDA.

Personnel expenses are:

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(in €m)

2006

2005

2004

 

 

 

 

Wages, salaries and social contributions

8,397

8,108

7,617

Net periodic pension cost (see Note 21 b)

334

377

327

Total

8,731

8,485

7,944

The decrease in the EADS gross margin from 6,676 M € to 4,712 M € reflects among others charges for A380 / A350 programs.


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