| 18. | The Nature of Expenses and Others |
The classification of expenses by nature for the years ended December 31, 2015, 2016 and 2017 are as follows:
| (In millions of won) | ||||||||||||
| 2015 | 2016 | 2017 | ||||||||||
|
Changes in inventories |
402,429 | 63,884 | (62,299 | ) | ||||||||
|
Purchases of raw materials, merchandise and others |
14,705,757 | 14,244,942 | 13,548,848 | |||||||||
|
Depreciation and amortization |
3,375,856 | 3,021,571 | 3,214,576 | |||||||||
|
Outsourcing fees |
1,011,084 | 819,742 | 771,697 | |||||||||
|
Labor cost |
3,104,043 | 3,022,607 | 3,258,427 | |||||||||
|
Supplies and others |
1,062,820 | 1,053,245 | 1,239,915 | |||||||||
|
Utility |
836,600 | 840,664 | 865,347 | |||||||||
|
Fees and commissions |
580,235 | 638,732 | 692,125 | |||||||||
|
Shipping costs |
231,830 | 224,742 | 249,820 | |||||||||
|
Advertising |
265,755 | 67,636 | 236,440 | |||||||||
|
Warranty expenses |
146,829 | 166,691 | 251,131 | |||||||||
|
Travel |
71,457 | 73,807 | 92,976 | |||||||||
|
Taxes and dues |
76,640 | 74,506 | 91,806 | |||||||||
|
Others |
1,036,131 | 927,218 | 919,051 | |||||||||
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| 26,907,466 | 25,239,987 | 25,369,860 | ||||||||||
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Total expenses consist of cost of sales, selling, administrative, research and development expenses and other non-operating expenses, excluding foreign exchange differences.