Other expenses

33. Other expenses

“Other expenses” include the following:

(in thousands of Euros)

2007

2006

Selling expenses

307,408

270,367

Purchases of merchandise for resale

221,819

194,480

Utilities and power

185,763

157,153

Maintenance

158,055

94,032

Consulting fees

140,480

116,422

Advertising expenses

127,480

144,780

Commissioned work by third parties

93,680

53,317

Contract work expenses

83,500

39,858

Rent and hires

78,464

61,568

Cleaning expenses

54,487

42,905

Traveling expenses

48,582

42,654

Outside work on construction contracts

43,712

11,085

Software and information services expenses

40,252

37,036

Other accruals

35,952

32,137

Insurance

28,919

28,912

Revenues stamps, duties and local taxes

25,369

21,148

Receivables impairment

15,373

13,620

Operating lease payments

9,610

7,494

Other

349,752

314,976

2,048,657

1,683,944

The balance in 2006 included Euros 13,200 thousand (0.8 percent of the total) of the costs incurred for the Pirelli Tyre S.p.A. IPO, which qualifies as a nonrecurring event, included under “consulting fees”, “advertising expenses” and “other”.

Research expenses went from Euros 171 million in 2006 (3.5 percent of sales) to Euros 173 million in 2007 (3.3 percent of sales) and are entirely expensed to income. There are no development expenditures which meet the conditions for capitalization under IFRS.