[15] Other income statement disclosures

In the year under review, the cost of materials rose by €234,391 thousand to €1,713,907 thousand (2009: €1,479,516 thousand).

Personnel expenses increased by €43,324 thousand in 2010 to €968,210 thousand (2009: €924,886 thousand). Personnel expenses include wages and salaries of €755,923 thousand (2009: €705,902 thousand) together with social security contributions and expenses for pensions and other benefits of €212,287 thousand (2009: €218,984 thousand). The accretion of interest cost related to the discount on estimated pension obligations is not recognised under personnel expenses but is instead reported under financial expenses as a component of interest cost of the defined benefit obligation. The pension expense of €25,774 thousand (2009: €28,009 thousand) essentially comprise pension entitlements of €14,315 thousand (2009: €14,121 thousand) earned in 2010 and the unrecognised past service cost of €79 thousand (2009: €2,984 thousand).

In the year under review, impairment losses and depreciation expense on property, plant and equipment, together with impairment losses and the amortisation expense of intangible assets amounted to €347,117 thousand (2009: €364,927 thousand). Inventories were written down by €6,311 thousand (2009: €27,778 thousand).

The breakdown of lease payments expensed in the period and arising in connection with operating leases in which KION Group companies are the lessee is as follows:

The expenses in connection with subleases relate to leases in which KION Group companies are both the lessor and lessee. In 2010, the income from these subleases amounted to €52,806 thousand (2009: €50,550 thousand).