Reebok 2014 Annual Report Download - page 239

adidas Group
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2014 Annual Report
Consolidated Financial Statements
235
2014
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04.8
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Notes
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Notes to the Consolidated Income Statement
Expenses are presented by function according to the ‘cost of sales method’ in the income statement. Supplementary
information on the expenses by nature is detailed below.
Cost of materials
The total cost of materials (continuing operations) relating to the amount of inventories recognised as an expense
during the period was € 7.478 billion and € 7.060 billion for the years ending December 31, 2014 and 2013,
respectively.
Personnel expenses
Personnel expenses were as follows:
Personnel expenses (continuing operations)
(€ in millions) Year ending
Dec. 31, 2014
Year ending
Dec. 31, 2013
Wages and salaries 1,593 1,590
Social security contributions 178 173
Pension expenses 71 70
Personnel expenses 1,842 1,833
Personnel expenses are primarily included within other operating expenses. Personnel expenses which are
directly attributable to the production costs of goods are included within the cost of sales.
Financial result consists of the following:
Financial income
(€ in millions) Year ending
Dec. 31, 2014
Year ending
Dec. 31, 2013
Interest income from financial instruments measured at amortised cost 4 8
Interest income from financial instruments at fair value through profit or loss 13 17
Interest income from non-financial assets 0 0
Other 3 1
Financial income 19 26
Financial expenses
(€ in millions) Year ending
Dec. 31, 2014
Year ending
Dec. 31, 2013
Interest expense on financial instruments measured at amortised cost 59 73
Interest expense on financial instruments at fair value through profit or loss 0 0
Interest expense on other provisions and non-financial liabilities 3 0
Net foreign exchange losses 3 18
Other 2 3
Financial expenses 67 94
Interest income from financial instruments, measured at amortised cost, mainly consists of interest income from
bank deposits and loans.
Interest income/expense from financial instruments at fair value through profit or loss mainly includes
interest payments from investment funds as well as net interest payments from interest derivatives not being
part of a hedging relationship. Unrealised gains/losses from fair value measurement of such financial assets are
shown in other financial income or expenses.
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Cost by nature
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Financial income/
financial expenses