Chapters
Annual Report 2018

15. Inventories

Accounting Policy
Inventories are stated at the lower of cost and net realizable value. Cost is determined by the weighted average cost method. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. Costs of inventories include the transfer from equity of any gains and losses on qualifying cash flow hedges on purchases of inventories.

The composition of the inventories is as follows:

in thousands of EUR

31 December 2018

31 December 2017

Finished goods

348,141

368,515

Provision for obsolete inventory

- 17,639

- 18,779

330,502

349,736

An amount of €10,960 (2017: €9,773) has been recognized in the consolidated Income Statement relating to obsolete inventories in ’Cost of sales and directly related costs’.