3.5 OTHER CURRENT LIABILITIES
(NOK million) 31.12.2021 31.12.2020
Public charges and holiday pay 174 169
Prepaid dividend from Jotun entities 357 328
Other liabilities to Jotun entities 448 614
Other accrued expenses 122 144
Total current provisions, see Note 3.6 157 115
Total 1 259 1 369
Received interim dividend from associates or joint ventures are recognised as current liability until the final
approval by the General Assembly subsequent year. Other liabilities to Jotun entities consist of NOK 442 million
related to subsidiaries share of cash pool. Other accrued expenses are related to commissions, bonuses to
employees and other accrued expenses.
3.6 PROVISIONS
2021
(NOK million) Claims Environmental Other Total
Balance sheet 1 January 284 70 37 390
Provisions arising during the year 1 - - 1
Utilised -79 - -11 -90
Unused amounts reversed -3 - -3 -6
Balance as of 31 December 203 70 22 295
Current, ref. Note 3.5 145 - 12 157
Non-current 58 70 10 138
Total 203 70 22 295
2020
(NOK million) Claims Environmental Other Total
Balance sheet 1 January 463 23 22 509
Provisions arising during the year 60 48 27 134
Utilised -240 -1 -1 -242
Unused amounts reversed - - -11 -11
Balance as of 31 December 284 70 37 390
Current, ref. Note 3.5 88 - 27 115
Non-current 196 70 10 276
Total 284 70 37 390
3.7 CONTINGENT LIABILITIES
Jotun A/S
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Product liability claims and disputes
Product liability claims consist of several separate and specific guarantee claims arising from products sold.
Assumptions used to calculate provisions for claims are based on technical assessments of product failures and
the expected repair cost for each specific case.
In accordance with Jotun policies, claims should in principle be covered by customer-owner company. When a
claim is caused by product or specification failure, costs will be reimbursed by Jotun A/S based on the prevailing
royalty agreements and cost contribution arrangement.
Environmental matters
Jotun A/S is through its operation exposed to environmental and pollution risk. Production facilities and
product warehouse sites have been inspected regarding environmental conditions in the soil. For sites where
clean-up costs are probable and reliable estimates of the costs have been made, provisions are recorded
accordingly. Due to uncertainties inherent in the estimation process, it is possible that such estimates could
be revised in the near term. In addition, further expenditures may arise as the full scope of conditions at
some sites has yet to be determined. The related amount of potential, future costs is not determinable
due to the unknown timing and extent of corrective actions which may be required. Jotun’s activities are
carried out in accordance with local laws and regulations, and the Group’s HSE requirements. Changes in
laws and regulations may require Jotun A/S to make investments and incur costs to meet future compliance
requirements.
3.8 CONTRACTUAL OBLIGATIONS AND GUARANTEES
Purchase obligations
Jotun A/S contractual purchase obligations are mainly related to completion of upgrade of the factory, and
reconstruction of the Binder factory. Out of the total ongoing investment programme, NOK 49,9 million is
contractual committed capital expenditures (CAPEX) at year end. For purchase of raw materials there are
no actual commitments for the company. In general, these contracts can be terminated without significant
penalties.
Other obligations
Jotun A/S has guarantees mainly covering tax withholding and other guarantees for subsidiaries. These
amounted to approximatellyy NNOOKK 440033 million in 2021 (2020: NOK 398 million).
Jotun Annual Report 2021 I 59