JOTUN GROUP
27
respective countries. Further details about the assumptions used
are given in note 5.
Environmental provisions
A number of factories have been inspected regarding
environmental conditions in the ground. Actions have either
been taken on own initiative or implemented on the order
of local authorities. Inspections and measurements are made
by independent specialists in the field. For clean-up projects
where implementation is considered to be probable, and for
which reliable estimates have been done, provisions are made
accordingly. Provisions for remediation costs are made based on
the following;
• Laws and regulations presently or virtually certain to be
enacted
• Conducted inspections, either taken on own initiative or
implemented on the order of local authorities
• Inspections and measurements made by independent
specialists in the field
• Prior experience in remediation of contaminated sites
Future expenditures for remediation work depend on a number
of uncertain factors which include, but are not limited to, the
extent and type of remediation required. Environmental laws
and regulations may change, and such changes may require
the Group to make investments and/or increase costs. Due to
uncertainties inherent in the estimation process, it is possible
that such estimates could be revised in the near term. Further
reference is made to note 11.
2 Operating revenue
Deferred tax
Deferred tax assets are recognised for all unused tax losses
and temporary differences to the extent that it is probable that
taxable profit will be available against which the losses and
temporary differences can be utilised. Uncertainties exist with
respect to determining the Group’s deferred tax assets and
deferred tax liabilities. Significant management judgement is
required to determine the amount of deferred tax assets that can
be recognised, based upon the likely timing and level of future
taxable profits, together with future tax planning strategies.
Non-consolidation of entity in which the Jotun Group
holds the majority of ownership interest
Jotun Group considers that it does not control Jotun Abu
Dhabi Ltd. even though it holds 51.6 per cent of the ownership
interest. The Group directly controls 35 per cent. However, the
remaining 16.6 per cent is an indirect ownership through a
non-controlling entity. As Jotun Group does not de facto control
the majority of the voting rights of Jotun Abu Dhabi Ltd., the
investment is classified as an associated company. Further details
are given in note 3.
Non-consolidation of entity in which the Jotun Group
holds a significant ownership interest
Jotun Group has a 50 per cent joint investment with China Ocean
Shipping Company (COSCO) and Chokwang Paint in China
and South Korea, respectively. The companies are considered as
jointly controlled, as the shareholders jointly direct the operational
activities of the companies. These investments are therefore
accounted for using the equity method (refer note 3).
(NOK THOUSAND) 2018 2017
Revenue from contracts with customers 16 332 596 14 978 011
Revenue from contracts with customers – associated companies and joint ventures 972 747 1 085 600
Other revenue 110 678 90 622
Other revenue from associated companies and joint ventures 243 842 246 765
Total 17 659 863 16 400 998
Other revenue includes rental income, licence revenue and profit from sale of fixed assets.
Revenue from contracts with customers by segments
(NOK THOUSAND) 2018 2017
Decorative Paints 6 559 542 6 036 227
Protective Coatings 5 101 379 4 387 979
Marine Coatings 3 969 072 3 991 339
Powder Coatings 1 675 350 1 648 066
Total 17 305 343 16 063 611