Cost of sales primarily 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 and, if necessary, inventory write-downs, 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. In 2010, this item included a one-time charge of € 85.8 million, which is attributable to the fair value measurement of the inventories acquired from Millipore. This amount was fully expensed in 2010 and consequently lowered the gross margin.
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