JOTUN A/S
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Pension plan assets
Pension plan assets are mainly in bonds and shares. The expected return will vary depending on the composition of the various classes of
assets. The expected return and breakdown of pension plan assets may be seen in the tables below.
Breakdown of pension plan assets (fair value) as of 31 December
2018 2017
Cash and cash equivalents in % 2.9 2.6
Bonds in % 67.4 70.6
Shares in % 16.0 12.7
Property in % 13.7 14.1
Total pension plan assets 100.0 100.0
Assumptions relating to the defined benefit plans
The discount rate related to the defined benefit plans is based on the market yields on 10-year government bonds adjusted for actual
lifetime of the pension liabilities. As a rule, parameters such as wage growth, growth in G and inflation are set in accordance with
recommendations in Norway.
The mortality estimate is based on an up-to-date mortality table (K2013BE).
Actuarial assumptions 2018 2017
Discount rate in % 2.0 1.9
Expected return in % 2.0 1.9
Wage adjustment in % 2.75 2.5
Inflation / increase in social security basic amount (G), in % 2.5 2.5
Pension adjustment in % 0.8–2.75 0.5–2.5
4 Other operating expenses and net financial items
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.
Other operating expenses
(NOK THOUSAND) 2018 2017
Manufacturing 64 013 57 473
Warehouse 15 504 13 925
Transport 44 050 46 978
Sales 130 448 139 405
Research and development 215 824 215 171
General and administrative 82 185 108 516
Royalty 30 621 46 077
Other * 279 812 151 365
Total 862 457 778 910
*) Other consists mainly of product liability claims.