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Jotun - Annual Report 2015

30 JOTUN GROUP 7 INTANGIBLE ASSETS (NOK THOUSAND) DEVELOPMENT COST OTHER INTANGIBLES TOTAL COST Balance at 1 January 2014 106 046 354 877 460 923 Additions 24 981 43 345 68 326 Disposals –1 833 –106 805 –108 638 Foreign currency translation effect 4 21 315 21 320 Balance at 31 December 2014 129 198 312 733 441 931 Additions 27 129 38 164 65 293 Disposals –4 368 –4 452 –8 819 Foreign currency translation effect – 13 175 13 175 Balance at 31 December 2015 151 959 359 620 511 579 AMORTISATION/IMPAIRMENT Balance at 1 January 2014 –12 239 –216 816 –229 055 Amortisation –8 567 –21 117 –29 684 Disposals 1 404 106 188 107 591 Foreign currency translation effect –494 –8 783 –9 276 Balance at 31 December 2014 –19 895 –140 528 –160 423 Amortisation –9 656 –23 583 –33 239 Disposals 530 75 604 Foreign currency translation effect – –6 521 –6 521 Balance at 31 December 2015 –29 022 –170 557 –199 579 NET BOOK VALUE Balance at 31 December 2015 122 937 189 063 312 000 Balance at 31 December 2014 109 303 172 205 281 508 Amortisable intangible assets are amortised over the following useful lifetimes: ASSET CATEGORY USEFUL LIFE Development cost 8–10 years Other intangible assets up to 10 years Intangible assets are non–physical assets that have either been capitalised in connection with acquisition of businesses or through internal development of products (product development) or customisation of IT applications (other intangible assets). DEVELOPMENT COST Development costs are capitalised if the costs can be measured reliably, the related product or process is technically and commercially feasible, sufficient future economic benefits will be generated and sufficient resources are available to complete the development. The expenditures capitalised include the cost of materials and direct labour. Capitalised development costs are amortised on a straight–line basis. Research and development (R&D) costs that are not eligible for capitalisation have been expensed and are recognised in administrative expenses (refer note 5). Product development in the Jotun Group is carried out both in the Jotun R&D Centre in Norway, as well as in the regional R&D laboratories in Dubai, Malaysia, India, Korea, China and US. The combination of a central and regional R&D set–up is a success factor ensuring both a solid technology platform and necessary local product adaptations. Sustainability is a main driver for new developments in all segments (Decorative Paints, Protective Coatings, Marine Coatings and Powder Coatings). The main focus areas are: – Reduced energy consumption and carbon footprint during the lifecycle of products and the objects they are applied on. This is achieved by developing highly efficient antifouling concepts and highly durable coatings with the need for less maintenance, optimizing TiO2 usage, and launching low temperature curing powder coatings. – Reducing VOC emissions by the development of high solid and water borne alternatives to traditional solvent borne paints. – Continuously substituting hazardous raw materials with less hazardous. A recent example is the global phase out of lead chromate during 2015. Within all segments the Jotun Group is committed to serve the markets with high quality products. This is a common denominator for new developments.


Jotun - Annual Report 2015
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