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 Group 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) 2021 2020
Wages including bonuses 867 903
Social costs 139 127
Pension costs, ref. Note 5.2 98 94
Other personnel costs -12 -17
Total 1 092 1 108
Average full-time equivalents employees 975 973
2.3 OTHER OPERATING EXPENSES
(NOK million) 2021 2020
Manufacturing 99 70
Warehouse 28 18
Transportation 54 47
Sales and marketing 78 84
Technical service 19 30
Research and Development 309 260
General and administrative 102 81
Royalty 30 36
Other* -8 67
Total 710 692
* Other consists mainly of product liability claims and losses on accounts receivable.
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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 2020 395 657 1 052
Additions 50 56 106
Disposals - -238 -238
Reclassifications - - -
Balance as of 31 December 2020 445 475 920
Additions 37 61 98
Disposals - -107 -107
Balance as of 31 December 2021 482 430 912
Amortisation and impairment
Balance as of 1 January 2020 -87 -209 -296
Amortisation -19 -43 -63
Disposals - 1 1
Balance as of 31 December 2020 -107 -251 -358
Amortisation -20 -48 -68
Disposals - 104 104
Balance as of 31 December 2021 -127 -195 -322
Net book value
Balance as of 31 December 2021 355 235 590
Balance as of 31 December 2020 338 224 563
Estimated useful life 8-10 years 3-10 years
Jotun A/S
Jotun Annual Report 2021 I 57