2.2 MATERIALS CONSUMED AND OTHER OPERATING EXPENSES

“Materials Consumed” includes mainly the raw materials used and the changes in inventories in 2017.

“Other Operating Expenses” includes mainly services rendered by third parties under subcontracting arrangements and independent professional services.

(Millions of euros)

2017

2016

CHANGE 17/16

Total materials consumed

1,345

1,267

78

Work performed by other companies

3,464

3,065

400

Leases

523

412

111

Repair and upkeep

209

192

16

Independent professional services

364

360

3

Changes in provisions and allowances (Note 6.3)

-111

-117

6

Other operating expenses

839

824

25

Total other operating expenses

5,288

4,736

552

Total materials consumed and other operating expenses

6,633

6,003

630

The sum of these headings increased by EUR 630 million from EUR 6,003 million at 31 December 2016 to EUR 6,633 million at 31 December 2017. This increase is explained basically by services rendered by third parties under subcontracting arrangements in the Construction Division and lease expenses on machinery and vehicles in the Construction and Services Divisions.

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