JOTUN GROUP
38
9 Property, plant and equipment
Property, plant and equipment comprise various types of tangible fixed assets needed for the type of business conducted by the Group.
(NOK THOUSAND) Machinery,
Electrical vehicles and Construction
Land Buildings installations equipment in progress Total
Cost
Balance as of 1 January 2017 309 898 3 208 936 312 134 3 534 315 835 965 8 201 247
Additions 50 472 428 872 96 109 389 285 –125 727 839 011
Disposals –4 849 –12 107 –174 –69 004 –2 590 –88 724
Reclassifications 55 118 110 897 8 607 –23 445 –135 448 15 729
Foreign currency translation effect –7 438 –54 266 –6 934 –42 059 –144 833 –255 531
Balance as of 31 December 2017 403 200 3 682 333 409 743 3 789 091 427 367 8 711 733
Additions 49 290 29 367 9 232 264 073 559 473 911 435
Disposals –502 –86 822 –46 –109 928 –11 945 –209 243
Reclassifications – –5 449 – 12 355 7 225 14 132
Foreign currency translation effect –2 519 –26 571 –10 173 –20 971 –275 –60 509
Balance as of 31 December 2018 449 470 3 592 857 408 755 3 934 621 981 844 9 367 548
Depreciation and impairment
Balance as of 1 January 2017 –12 826 –1 296 827 –125 264 –2 223 755 – –3 658 672
Depreciation –1 824 –132 046 –28 252 –271 677 – –433 798
Depreciation on disposals 4 849 10 445 277 63 765 – 79 336
Reclassifications –3 706 –57 475 –5 038 74 176 – 7 957
Foreign currency translation effect 161 68 497 16 470 100 709 – 185 837
Balance as of 31 December 2017 –13 345 –1 407 405 –141 807 –2 256 782 – –3 819 339
Depreciation –1 660 –135 365 –38 048 –291 883 – –466 957
Depreciation on disposals 287 81 382 69 106 800 – 188 538
Reclassifications – 1 794 5 677 –5 307 – 2 163
Foreign currency translation effect –317 9 103 2 091 5 422 – 16 299
Balance as of 31 December 2018 –15 036 –1 450 492 –172 018 –2 441 750 – –4 079 296
Net book value
Balance as of 31 December 2018 434 435 2 142 365 236 738 1 492 870 981 844 5 288 252
Balance as of 31 December 2017 389 855 2 274 927 267 936 1 532 309 427 367 4 892 394
Property, plant and equipment are depreciated over the following useful life:
Land infinite
Buildings 25–33 years
Electrical Installations 10–14 years
Machinery 7–10 years
Office equipment and furniture 5–10 years
Vehicles 4–5 years
IT equipment 3–5 years
The period of depreciation is reviewed each year and if there are changes in useful life, depreciation is adjusted. Depreciation is stopped
if residual value is considered to be higher that the carrying value.
Construction in progress
A major part of the amount under Construction in progress relates to the new headquarters and research centre project in Norway. It is
also related to production and warehouse facility projects in Indonesia, Egypt and Vietnam, and a new regional centre in Dubai, the UAE.