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OPERATING ASSETS AND LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2017
Subclassifications of assets, liabilities and equities [abstract]  
Intangible Assets
INTANGIBLE ASSETS
DKK million
2017

2016

 
 
 
Patents and licences
2,095

1,591

Ongoing and developed software
1,230

1,123

 
 
 
Total
3,325

2,714
Amortisation and Impairment Losses
AMORTISATION AND IMPAIRMENT LOSSES
DKK million
2017

2016

 
 
 
Cost of goods sold
193

186

Sales and distribution costs
15

11

Research and development costs
211

427

Administrative expenses
3

3

Other operating income, net
5

8

 
 
 
Total amortisation and impairment losses
427

635
Property, Plant and Equipment
PROPERTY, PLANT AND EQUIPMENT
DKK million
Land and buildings

Plant and machinery

Other equipment

Assets under construction

Total

 
 
 
 
 
 
2017
 
 
 
 
 
Cost at the beginning of the year
20,190

23,165

4,130

10,539

58,024

Additions during the year1
895

502

263

7,028

8,688

Disposals during the year
(133
)
(367
)
(186
)
—

(686
)
Transfer from assets under construction
1,516

964

401

(2,881
)
—

Effect of exchange rate adjustment
(436
)
(465
)
(139
)
(325
)
(1,365
)
 
 
 
 
 
 
Cost at the end of the year
22,032

23,799

4,469

14,361

64,661

 
 
 
 
 
 
Depreciation and impairment losses at the beginning of the year
8,182

17,079

2,584

—

27,845

Depreciation for the year
964

1,340

334

—

2,638

Impairment losses for the year
54

47

16

—

117

Depreciation and impairment losses reversed on disposals during the year
(100
)
(343
)
(178
)
—

(621
)
Effect of exchange rate adjustment
(166
)
(315
)
(84
)
—

(565
)
 
 
 
 
 
 
Depreciation and impairment losses at the end of the year
8,934

17,808

2,672

—

29,414

Carrying amount at the end of the year
13,098

5,991

1,797

14,361

35,247

2016
 
 
 
 
 
Cost at the beginning of the year
18,003

22,035

3,516

7,616

51,170

Additions during the year
1,434

280

433

4,921

7,068

Disposals during the year
(196
)
(429
)
(111
)
—

(736
)
Transfer from assets under construction
738

1,069

243

(2,050
)
—

Effect of exchange rate adjustment
211

210

49

52

522

 
 
 
 
 
 
Cost at the end of the year
20,190

23,165

4,130

10,539

58,024

 
 
 
 
 
 
Depreciation and impairment losses at the beginning of the year
7,448

15,900

2,277

—

25,625

Depreciation for the year
786

1,342

304

—

2,432

Impairment losses for the year
11

37

78

—

126

Depreciation and impairment losses reversed on disposals during the year
(174
)
(392
)
(104
)
—

(670
)
Effect of exchange rate adjustment
111

192

29

—

332

 
 
 
 
 
 
Depreciation and impairment losses at the end of the year
8,182

17,079

2,584

—

27,845

Carrying amount at the end of the year
12,008

6,086

1,546

10,539

30,179

 
 
 
 
 
 
1. The cash flow statement excludes additions of DKK 1,062 million for property, plant and equipment that has not yet been paid.
Deprecation and Impairment Losses
DEPRECIATION AND IMPAIRMENT LOSSES
DKK million
2017

2016

 
 
 
Cost of goods sold
2,091

1,952

Sales and distribution costs
76

51

Research and development costs
525

493

Administrative costs
57

57

Other operating income, net
6

5

 
 
 
Total depreciation and impairment losses
2,755

2,558
Inventories
INVENTORIES
DKK million
2017

2016

 
 
 
Raw materials
2,420

2,285

Work in progress
10,992

9,379

Finished goods
4,180

4,035

 
 
 
Total inventories (gross)
17,592

15,699

Write-downs at year-end
2,219

1,358

Total inventories (net)
15,373

14,341

 
 
 
Indirect production costs included in work in progress and finished goods
7,768

7,103

Share of total inventories (net)
51
%
50
%
 
 
 
MOVEMENTS IN INVENTORY
WRITE-DOWNS
 
 
Write-downs at the beginning of the year
1,358

1,419

Write-downs during the year
1,556

861

Utilisation of write-downs
(438
)
(672
)
Reversal of write-downs
(257
)
(250
)
 
 
 
Write-downs at the end of the year
2,219

1,358
Trade Receivables
TRADE RECEIVABLES
DKK million
2017

2016

 
 
 
Trade receivables (gross)
21,459

21,457

Allowance for doubtful trade receivables
1,294

1,223

 
 
 
Trade receivables (net)
20,165

20,234

Trade receivables (net) equals a credit period of 66 days (66 days in 2016).
 
 
Age analysis of trade receivables
 
 
- Not yet due
19,034

18,980

- Overdue by between 1 and 179 days
1,095

1,079

- Overdue by between 180 and 360 days
36

175

 
 
 
Trade receivables with credit risk exposure
20,165

20,234

MOVEMENTS IN ALLOWANCE FOR DOUBTFUL TRADE RECEIVABLES
 
 
Carrying amount at the beginning of the year
1,223

1,166

Reversal of allowance on realised losses
(27
)
(9
)
Allowance for possible losses during the year
196

104

Effect of exchange rate adjustment
(98
)
(38
)
 
 
 
Allowance at the end of the year
1,294

1,223
Retirement Benefit Obligations and Fair Value of Plan Assets

RETIREMENT BENEFIT OBLIGATIONS
DKK million
US

Germany

Switzerland

Japan

Other

2017
total

 
2016
total

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At the beginning of the year
478

945

350

420

418

2,611

 
2,268

Current service costs
17

32

24

28

40

141

 
157

Past service costs and settlements
—

—

(43
)
—

(2
)
(45
)
 
(49
)
Interest costs
16

15

1

2

6

40

 
51

Remeasurement (gains)/losses1
8

(62
)
(14
)
(1
)
(10
)
(79
)
 
200

Plan participant contributions etc
—

—

8

—

4

12

 
16

Benefits paid to employees
(14
)
(6
)
(14
)
(20
)
(12
)
(66
)
 
(67
)
Effect of exchange rate adjustment
(57
)
2

(29
)
(36
)
(16
)
(136
)
 
35

 
 
 
 
 
 
 
 
 
At the end of the year
448

926

283

393

428

2,478

2 
2,611


FAIR VALUE OF PLAN ASSETS
At the beginning of the year
—

497

246

319

98

1,160

 
1,082

Interest income
—

8

—

1

3

12

 
20

Settlements
—

—

(43
)
—

—

(43
)
 
(6
)
Remeasurement gains/(losses)1
—

4

1

19

—

24

 
(5
)
Employer contributions
14

21

19

24

18

96

 
102

Plan participant contributions etc
—

—

8

—

6

14

 
16

Benefits paid to employees
(14
)
(6
)
(14
)
(20
)
(12
)
(66
)
 
(67
)
Effect of exchange rate adjustment
—

1

(20
)
(27
)
(9
)
(55
)
 
18

 
 
 
 
 
 
 
 
 
At the end of the year
—

525

197

316

104

1,142

 
1,160


Net retirement benefit obligations
at the end of the year
448

401

86

77

324

1,336

 
1,451

 
 
 
 
 
 
 
 
 
1.
Net remeasurement is a gain of DKK 103 million (loss of DKK 205 million in 2016), primarily related to changes in financial assumptions, is included in Other comprehensive income.
2.
The present value of partly funded retirement benefit obligations amounts to DKK 1,778 million (DKK 1,887 million in 2016). The present value of unfunded retirement benefit obligations amounts to DKK 700 million (DKK 724 million in 2016).
Sensitivity Analysis
The sensitivity analysis below has been determined based on reasonably likely changes in the assumptions occurring at the end of the period.
DKK million
1 %-point increase

1 %-point decrease

 
 
 
 
 
 
Discount rate (decrease)/increase
(375
)
463

Future remuneration growth (decrease)/increase
105

(95
)
 
 
 
 
 
 
Provisions
 
 
 
 
DKK million
2017

2016

2015

 
 
 
 
At the beginning of the year
19,971

16,508

11,002

Additional provisions, including increases to existing provisions
63,772

56,954

45,190

Amount used during the year
(61,017
)
(53,217
)
(40,958
)
Adjustments, including unused amounts reversed during the year
(117
)
(822
)
—

Effect of exchange rate adjustment
(2,393
)
548

1,274

 
 
 
 
At the end of the year
20,216

19,971

16,508

PROVISIONS
DKK million
Provisions
for sales
rebates

Provisions
for legal
disputes

Provisions
for product
returns

Other
provisions1

2017
total

2016
total

 
 
 
 
 
 
 
 
 
 
 
 
 
 
At the beginning of the year
19,971

1,915

767

1,178

23,831

19,824

Additional provisions, including increases to existing provisions
63,772

743

314

384

65,213

58,688

Amount used during the year
(61,017
)
(455
)
(274
)
(230
)
(61,976
)
(53,991
)
Adjustments, including unused amounts reversed during the year
(117
)
(287
)
54

(56
)
(406
)
(1,291
)
Effect of exchange rate adjustment
(2,393
)
(135
)
(14
)
(63
)
(2,605
)
601

 
 
 
 
 
 
 
At the end of the year
20,216

1,781

847

1,213

24,057

23,831

 
 
 
 
 
 
 
Non-current liabilities
—

1,781

508

1,013

3,302

3,370

Current liabilities
20,216

—

339

200

20,755

20,461

 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.
Other provisions consist of various types of provision, including obligations in relation to employee benefits such as jubilee benefits, company-owned life insurance etc. Assets offsetting obligations related to company-owned life insurance are presented as part of Other financial assets.
Other Liabilities
OTHER LIABILITIES
DKK million
2017

2016

 
 
 
Employee costs payable
5,617

6,069

Sales rebates payable
1,528

2,071

Healthcare fees payable
990

1,193

VAT and duties payable
1,182

1,088

Payables regarding clinical trials
402

359

Payables regarding promotion activities
325

203

Rent and leases payable
300

200

Legal and consultancy costs payable
164

127

Amount owed to associated company
223

245

Payables related to non-current assets
1,143

—

Other payables
2,572

2,626

 
 
 
Total other liabilities
14,446

14,181