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JOTUN A/S
8 INVENTORIES
Inventories consist of the company’s stock of raw materials and finished goods. Inventories are valued at the lower of cost or net
realisable value. Cost of inventories is assigned by using weighted average cost formula.
(NOK THOUSAND) 31.12.2017 31.12.2016
Raw materials at cost 178 891 164 522
Finished goods at cost 263 686 254 824
Goods in transit 4 307 4 057
Allowance for obsolescence –10 600 –10 600
Total 436 284 412 802
9 PROVISIONS
PROVISIONS 2017
(NOK THOUSAND) CLAIMS RESTRUCTURING ENVIRONMENTAL OTHER TOTAL
Balance as of 1 January 2017 159 828 – 31 851 – 191 679
Provisions arising during the year 102 089 – 4 000 15 000 121 089
Utilised –72 252 – –4 481 – –76 733
Unused amounts reversed –1 666 – – – –1 666
Balance as of 31 December 2017 187 998 – 31 370 15 000 234 368
Current 178 920 – 4 870 15 000 198 790
Non–current 9 078 – 26 500 – 35 578
Total 187 998 – 31 370 15 000 234 368
PROVISIONS 2016
(NOK THOUSAND) CLAIMS RESTRUCTURING ENVIRONMENTAL OTHER TOTAL
Balance as of 1 January 2016 7 939 147 34 979 – 43 065
Provisions arising during the year 171 889 – 12 500 – 184 389
Utilised –20 000 –147 –10 255 – –30 402
Unused amounts reversed – – –5 373 – –5 373
Balance as of 31 December 2016 159 828 – 31 851 – 191 679
Current 150 750 – 7 251 – 158 001
Non–current 9 078 – 24 600 – 33 678
Total 159 828 – 31 851 – 191 679
PRODUCT LIABILITY CLAIMS
A provision is recognised for expected warranty claims on
products sold, based on past experience of the level of repairs
and returns. It is expected that most of these costs will be
payable in the next financial year. Assumptions used to calculate
the provision for claims were based on current information
available about claim cases and the expected claims based on the
warranty period for specific products sold.
ENVIRONMENTAL PROVISIONS
Jotun A/S has recorded provisions for environmental liabilities at
some currently owned sites. Pre-studies and analysis of relevant
areas have been undertaken to reliably estimate the provisions
that have been recognised. The majority of the non-current
liability amount will be realised within 2019. These provisions are
estimates of amounts payable or expected to become payable.