61
JOTUN A/S
4 OTHER OPERATING EXPENSES AND FINANCE INCOME/COSTS
Jotun A/S 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.
The item “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, ref. note 7.
The item “Other” consists mainly of product liability claims.
OTHER OPERATING EXPENSES
(NOK THOUSAND) 2017 2016
Manufacturing costs 57 473 63 653
Warehouse costs 13 925 17 975
Transport costs 46 978 41 659
Sales costs 139 405 165 097
Research and development 215 171 191 775
General and administrative 108 516 113 010
Royalty costs 46 077 41 132
Other 151 365 218 229
Total 778 910 852 530
(NOK THOUSAND) 2017 2016
FINANCE INCOME
Interest income 4 342 5 090
Interest income on loans to Group companies 146 959 98 416
Net unrealised foreign currency gain 75 725 –
Other financial income 24 815 15 702
Total 251 841 119 208
FINANCE COST
Interest costs –64 069 –50 271
Net realised foreign currency loss –25 510 –15 155
Net unrealised foreign currency loss – –6 331
Write down of financial fixed assets, see note 16 –387 065 –376 000
Other financial costs –2 518 –2 958
Total –479 162 –450 715
Net financial items –227 321 –331 507
Gain and losses 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