3.3 Property, plant and
equipment
Property, plant and equipment (PP&E) comprise
various types of tangible fixed assets needed for
the type of business conducted by the Group.
A major part of the amount under Construction
in progress relates to the new headquarters
and R&D centre in Norway and production and
warehouse facilities in Egypt and Vietnam.
Impairment for 2019 is related to the ongoing
restructuring of Jotun Paints Inc. in the US. Due
to the close down of the factory, the fixed assets
have been written down to estimated net sales
price.
The accounting standard IFRS 16 Leases was
implemented 1 January 2019. This has impacted
accounting for leases as it requires lease
contracts to be recognised in the balance sheet.
As of December 2019, the Group has recognised
leased assets (Right-of-Use assets) amounting
to NOK 593 million and a total lease liability
amounting to NOK 445 million.
See Note 5.4 for further information.
(NOK THOUSAND) Land Buildings
Electrical
installations
Machinery,
vehicles and
equipment
Construction
in progress
Right of Use
Back to Notes for the Group
assets Total
Cost
Balance as of 1 January 2018 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 / Terminations -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
Recognition of Right of Use assets -115 225 - - - - 632 000 516 775
Balance as of 1 January 2019 334 245 3 592 857 408 755 3 934 621 981 844 632 000 9 884 323
Additions -1 180 371 169 102 865 322 555 380 527 97 301 1 273 238
Disposals / Terminations - -56 164 -1 437 -32 137 1 541 -12 988 -101 185
Reclassifications - -29 657 34 754 -7 322 27 089 - 24 863
Foreign currency translation effect 16 013 71 583 -5 970 84 171 9 342 6 936 182 075
Balance as of 31 December 2019 349 078 3 949 788 538 967 4 301 888 1 400 343 723 250 11 263 315
Depreciation and impairment
Balance as of 1 January 2018 -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
Depreciation -1 065 -141 987 -42 250 -329 041 - -127 062 -641 404
Depreciation on disposals - 37 729 1 386 47 231 - - 86 347
Impairment - -77 636 -5 014 -9 126 - -4 894 -96 671
Reclassifications 4 911 3 874 -3 874 3 907 - - 8 817
Foreign currency translation effect -279 -6 911 -7 120 -38 957 - 1 241 -52 025
Balance as of 31 December 2019 -11 467 -1 635 423 -228 890 -2 767 736 - -130 714 -4 774 232
Net book value
Balance as of 31 December 2019 337 611 2 314 365 310 077 1 534 152 1 400 343 592 535 6 489 083
Balance as of 31 December 2018 434 435 2 142 365 236 738 1 492 870 981 844 - 5 288 252
Estimated useful life unlimited 25-33 years 10-14 years 3-10 years
JOTUN GROUP
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