Cost of sales includes the cost of manufactured products as well as goods purchased for resale. In accordance with IAS 2, the cost comprises overheads directly attributable to the production process, including depreciation charges on production facilities, in addition to directly attributable costs, such as the cost of materials, personnel and energy. We also disclose write-downs of inventories as part of cost of sales. The Millipore inventories from the acquisition were stepped up by EUR 85.8 million to fair values as of the first-time consolidation. This amount was fully expensed in cost of sales in the second half of 2010 and had a one-time negative impact on gross margin.
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