17. Inventories

Inventories comprise raw materials, consumables and supplies, merchandise, works in progress and finished goods. Inventories are initially recognized at cost, calculated on the basis of average prices, or at production cost. Production cost includes all direct production costs as well as an appropriate share of indirect production costs and is determined on the basis of normal capacity utilization. Financing costs are not taken into account.

The measurement at the end of the reporting period takes place at the lower of cost or net realizable value less costs due and, where appropriate, other incurred costs of completion. The net realizable value of the final product is generally taken as a basis.

Inventories are not pledged as collateral for liabilities. The inventories recognized as expenses in the reporting year amounted to EUR 50,277 thousand (previous year: EUR 59,050 thousand).