Balance Sheet Disclosures

29. INVENTORIES

Breakdown of Inventories
in million €31 Dec. 201831 Dec. 2017
Finished goods and merchandise3,518.33,426.0
Prepayments275.2202.4
Work in progress156.9144.9
Raw materials, consumables and supplies61.762.6
Total4,012.13,835.9

The change in inventories is primarily attributable to the increase in finished goods and merchandise as well as prepayments.

The increase in finished goods and merchandise was due mainly to the Retail International, Other, and Retail Germany business segments. The increase in the inventory of the Retail International business segment was due in part to the first-time consolidation of UAB Palink (see note 4 "Acquisitions"). The inventory increase in the Retail Germany business segment was attributable mainly to the expansion of the warehouse locations.

The increase in prepayments resulted primarily in the Travel and Tourism business segment: in particular in the Central Europe division, prepayment to service providers rose by 34.9 million euros, due mainly to this higher volume of bookings in these destinations.

Allowances for slow-moving merchandise and for individual risks amounted to 253.3 million euros as at the balance sheet date (previous year: 237.5 million euros). Reversals of impairment losses on inventories amounted to 7.1 million euros in the Travel and Tourism business segment (previous year: 4.1 million euros); they were recognised as a reduction in material expenses. The reversal of impairment losses was due to the new assessment of the country risks, in particular in Tunisia, Morocco and Turkey on the basis of the order volume.

As in the previous year no inventories were pledged as collateral for financial liabilities during the financial year.