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## 1.3.3 Operating expenses 

Total operating expenses grew by 1%, im- pacted by BSP1-related costs of approxi- mately DKK 350m. 

Marketing, sales and distribution expenses declined by DKK -195m compared to last year mainly due to last years activation of EURO 2012. 

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Marketing expenses consist of expenses for brand marketing and trade marketing. 

Brand marketing is an investment in our brands and consists of brand-specific invest- ments in the development of communication vehicles and the use of these to drive the sale of branded products and services. 

Trade marketing is promotional activities directed towards customers, such as the sup- ply of point-of-sale materials, promotional material and trade offers. 

## 1.3.3 ACCOUNTING POLICIES 

Brand and trade marketing expenses comprise sales campaigns, sponsorships, advertising and in-store display expenses. 

Sales and distribution expenses comprise costs relating to general sales activities, sales staff as well as depreciation and impairment of sales equipment and costs incurred in distributing goods sold during the year. 

Administrative expenses comprise expenses incurred during the year for management and administration, including expenses for administra- tive staff, office premises and office expenses, and depreciation and write-downs for bad debt losses. 

## 1.3.4 Other operating activities, net 

Other operating activities are secondary to the principal activities of the entities, and include income and expenses relating to rental properties and hotels, on-trade loans, research activities, and gains and losses on the disposal of intangible assets and prop- erty, plant and equipment. 

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On-trade loan activities are described in section 1.6. 

## 1.3.4 ACCOUNTING POLICIES 

Gains and losses on the disposal of intangible assets and property, plant and equipment are determined as the sales price less selling costs and the carrying amount at the disposal date. On-trade loans, net comprise the effective interest rate on on-trade loans calculated on the basis of amortised cost less impairment of on-trade loans. 

Expenses relating to research activities comprise research in Denmark and France less funding received from the Carlsberg Foundation for the operation of the Carlsberg Laboratory and grants received to fund research. The funding and grants are recognised in the income statement in the same period as the activities to which they relate. Development costs are included in cost of sales. 

