Financial Statements

22. Inventories

Inventories comprised:

	Dec. 31, 2006	Dec. 31, 2007
€ million
Raw materials and supplies	1,004	1,012
Work in process, finished goods and goods purchased for resale	5,145	5,197
Advance payments	4	8
Total	6,153	6,217

Of the inventories totaling €6,217 million as of December 31, 2007 (2006: €6,153 million), €691 million (2006: €910 million) were carried at fair value less costs to sell.

The changes in the inventory reserve, which are reflected in the cost of goods sold, were as follows:

	2006	2007
€ million
January 1	(340)	(311)
Changes in the scope of consolidation	-	(3)
Additions expensed	(180)	(149)
Deductions due to reversal or utilization	151	130
Reclassifications to current assets	46	-
Exchange differences	12	15
December 31	(311)	(318)

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