2 Cost of sales

Cost of sales includes interest expenses of €1,955 million (previous year: €1,948 million) attributable to the financial services business. This item also includes impairment losses on intangible assets, property, plant and equipment, and lease assets in the amount of €377 million (previous year: €346 million). Impairment losses are based on updated impairment tests and reflect market and exchange rate risks in particular, as well as amended sales forecasts and reduced product life cycles.

Government grants related to income amounted to €883 million in the fiscal year (previous year: €307 million) and were generally allocated to the functions.