Notes (IFRS)

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7. Functional Costs

Inventories recognised as an expense during the period amount to €25,259 million (2006: €26,267 million; 2005: €20,800 million).

Cost of sales include the amortisation expenses of fair value adjustments of fixed assets and inventories in the amount of €49 million (2006: €57 million; 2005: €136 million); these are related to the EADS merger, the Airbus Combination and the formation of MBDA.

Personnel expenses are:

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(in €m)

2007

2006

2005

 

 

 

 

Wages, salaries and social contributions

8,696

8,397

8,108

Net periodic pension cost (see Note 22 b)

385

334

377

Total

9,081

8,731

8,485

The decrease in theEADS gross margin from €4,712 million to €4,321 million reflects among others charges for A350 and A400M programmes and for GlossaryPower8 restructuring.


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