
2.2 PAYROLL EXPENSES
Jotun A/S has a system of annual bonuses that applies to senior management and is limited to a maximum of 20
per cent of annual basic salary. Further, all members of the management, including the President & CEO, are part
of an annual profit-dependent bonus system limited upwards to 50 per cent of annual basic salary.
The company’s pension plans are primarily defined contribution plans. For further information, see Note 5.2.
For remuneration of President & CEO and Board of Directors, see Note 5.3.
Wages and other social costs
(NOK million) 2020 2019
Wages including bonuses 903 799
Social costs 127 124
Pension costs, ref. Note 5.2 94 92
Other personnel costs -17 -23
Total 1 108 991
Average full-time equivalents employees 973 954
2.3 OTHER OPERATING EXPENSES
(NOK million) 2020 2019
Manufacturing 70 69
Warehouse 18 23
Transportation 47 42
Sales and marketing 84 129
Technical service 30 38
Research and Development 260 236
General and administrative 81 99
Royalty 36 30
Other* 67 184
Total 692 850
* Other consists mainly of product liability claims and losses on accounts receivable.
Back to contents >
3.1 INTANGIBLE ASSETS
Intangible assets are non-physical assets that have either been capitalised through internal development of
products (development cost), customisation of IT applications or separate acquisitions. See Note 3.2 to the
consolidated financial statements for further information.
IT Applications and
other intangibles Total
(NOK million) Development cost
Cost
Balance as of 1 January 2019 323 402 725
Additions 77 289 366
Disposals - - -
Reclassifications -6 -34 -39
Balance as of 31 December 2019 395 657 1 052
Additions 50 56 106
Disposals - -238 -238
Balance as of 31 December 2020 445 475 920
Amortisation and impairment
Balance as of 1 January 2019 -69 -170 -240
Amortisation -18 -38 -56
Disposals - - -
Balance as of 31 December 2019 -87 -209 -296
Amortisation -19 -43 -63
Disposals - 1 1
Balance as of 31 December 2020 -107 -251 -358
Net book value
Balance as of 31 December 2020 338 224 563
Balance as of 31 December 2019 308 448 756
Estimated useful life 8-10 years 3-10 years
Jotun A/S
Jotun Annual Report 2020 I 57