33
JOTUN GROUP
OTHER OPERATING EXPENSES AND
5 NET FINANCIAL ITEMS
The Jotun Group presents its income statement based on the nature of the item of income and expense.
Other operating expenses comprise all operating expenses that are not related to cost of goods sold, employee payrolls and capital cost
in the form of depreciation. The main items of other operating expenses have been grouped in the table below.
“Research and development” consists of costs from projects in a research phase and development costs related to cancelled projects.
Salaries and social costs are not included. Total gross R&D costs are NOK 423 mill. (2016: NOK 390 mill.) Development costs which meet
the recognition criteria for intangible assets are capitalised. Further details on development cost are disclosed in note 7.
The item “Other” consists mainly of product liability claims and loss on receivables.
OTHER OPERATING EXPENSES
(NOK THOUSAND) 2017 2016
Manufacturing costs 362 690 379 954
Warehouse costs 148 713 142 060
Transport costs 466 406 431 792
Sales costs 1 058 180 1 146 419
Technical service 130 184 141 616
Research and development 215 171 191 775
General and administrative 628 088 642 992
Other 287 678 344 799
Total 3 297 110 3 421 406
The Group has net finance items mainly comprising of net interest expenses, foreign exchange gains and losses and fair value changes of
the Group’s financial instruments related to hedging.
FINANCE INCOME
(NOK THOUSAND) 2017 2016
Fair value changes financial instruments 20 909 21 768
Interest income 19 857 55 183
Dividend 2 438 4 341
Net foreign exchange gain 47 737 3 757
Other financial income 25 483 13 307
Total 116 424 98 356
FINANCE COSTS
(NOK THOUSAND) 2017 2016
Interest costs –176 097 –106 503
Net foreign exchange loss –34 137 –139 512
Other financial costs –24 275 –21 326
Total –234 509 –267 341
Net financial items –118 085 –168 985
Gain and loss related to derivatives are classified as finance income and finance cost, respectively, with the following effects.
(NOK THOUSAND) 2017 2016
Unrealised gain/loss (-) 6 284 –14 625
Realised effect 7 907 –743