25 Other operating expenses

Operating expenses include expenses for sales, marketing, research and development, as well as for logistics and central finance and administration. In addition, they include depreciation on tangible assets and amortisation on intangible assets, with the exception of goodwill amortisation and other depreciation and amortisation which is included in the cost of sales.

Marketing working budget is the largest component of operating expenses. The marketing working budget consists of promotion and communication spending such as promotion contracts, advertising, retail support, events and other communication activities. However, it does not include marketing overhead expenses. In 2008, marketing working budget accounted for approximately 33% (2007: 33%) of the total operating expenses.

Total depreciation and amortisation expense for tangible and intangible assets (excluding goodwill) was € 234 million and € 211 million for the years ending December 31, 2008 and 2007, respectively. Thereof, € 6 million and € 7 million were recorded within the cost of sales as they are directly attributable to the production costs of goods sold.