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Operating assets and liabilities (Tables)
 12 Months Ended
Dec. 31, 2019
Subclassifications of assets, liabilities and equities [abstract]  
Intangible Assets
Intangible assets
DKK million
 
2019

 
2018

 
 
 
 
 
Patents and licences
 
4,627

 
3,858

Software
 
1,208

 
1,287

 
 
 
 
 
Total intangible assets
 
5,835

 
5,145

 
 
 
 
 
Amortisation and Impairment Losses
Amortisation and impairment losses
DKK million
 
2019

 
2018

 
 
 
 
 
Cost of goods sold
 
916

 
208

Sales and distribution costs
 
24

 
15

Research and development costs
 
522

 
769

Administrative costs
 
3

 
2

Other operating income, net
 
4

 
6

 
 
 
 
 
Total amortisation and impairment losses
 
1,469

 
1,000

 
 
 
 
 
Total amortisation
 
487

 
1,000

 
 
 
 
 
Total impairment losses
 
982

 
—

 
 
 
 
 
Deprecation and Impairment Losses
Depreciation and impairment losses
DKK million
 
2019

 
2018

 
 
 
 
 
Cost of goods sold
 
2,656

 
2,312

Sales and distribution costs
 
354

 
69

Research and development costs
 
783

 
468

Administrative costs
 
376

 
70

Other operating income, net
 
23

 
6

 
 
 
 
 
Total depreciation and impairment losses
 
4,192

 
2,925

 
 
 
 
 
Property, Plant and Equipment
Property, plant and equipment
 
 
 
 
 
 
 
 
DKK million
Land and buildings

Plant and machinery

Other equipment

 
Assets under construction

 
Total

 
 
 
 
 
 
 
 
 
 
2019
 
 
 
 
 
 
 
 
Cost at the beginning of the year
25,401

25,412

4,779

 
16,846

 
72,438

 
Change in accounting policy, leases
3,291

—

487

 
—

 
3,778

 
Additions during the year
555

350

498

 
7,580

 
8,983

 
Disposals during the year
(407
)
(504
)
(244
)
 
(74
)
 
(1,229
)
 
Transfer from assets under construction
1,277

2,248

665

 
(4,190
)
 
—

 
Effect of exchange rate adjustment
143

88

30

 
189

 
450

 
 
 
 
 
 
 
 
 
 
Cost at the end of the year
30,260

27,594

6,215

 
20,351

 
84,420

 
 
 
 
 
 
 
 
 
 
Depreciation and impairment losses at the beginning of the year
9,770

17,871

2,906

 
—

 
30,547

 
Depreciation for the year
1,818

1,410

743

 
—

 
3,971

 
Impairment losses for the year
57

70

20

 
74

 
221

 
Depreciation and impairment losses reversed on disposals during the year
(160
)
(504
)
(229
)
 
(74
)
 
(967
)
 
Effect of exchange rate adjustment
43

41

13

 
—

 
97

 
 
 
 
 
 
 
 
 
 
Depreciation and impairment losses at the end of the year
11,528

18,888

3,453

 
—

 
33,869

 
 
 
 
 
 
 
 
 
 
Carrying amount at the end of the year
18,732

8,706

2,762

 
20,351

 
50,551

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
Cost at the beginning of the year
22,032

23,799

4,469

 
14,361

 
64,661

 
Additions during the year
222

365

175

 
8,775

 
9,537

 
Disposals during the year
(267
)
(1,422
)
(178
)
 
—

 
(1,867
)
 
Transfer from assets under construction
3,448

2,667

295

 
(6,410
)
 
—

 
Effect of exchange rate adjustment
(34
)
3

18

 
120

 
107

 
 
 
 
 
 
 
 
 
 
Cost at the end of the year
25,401

25,412

4,779

 
16,846

 
72,438

 
 
 
 
 
 
 
 
 
 
Depreciation and impairment losses at the beginning of the year
8,934

17,808

2,672

 
—

 
29,414

 
Depreciation for the year
1,047

1,377

385

 
—

 
2,809

 
Impairment losses for the year
49

63

4

 
—

 
116

 
Depreciation and impairment losses reversed on disposals during the year
(235
)
(1,346
)
(163
)
 
—

 
(1,744
)
 
Effect of exchange rate adjustment
(25
)
(31
)
8

 
—

 
(48
)
 
 
 
 
 
 
 
 
 
 
Depreciation and impairment losses at the end of the year
9,770

17,871

2,906

 
—

 
30,547

 
 
 
 
 
 
 
 
 
 
Carrying amount at the end of the year
15,631

7,541

1,873

 
16,846

 
41,891

 
 
 
 
 
 
 
 
 
 
Right-of-Use Assets
Property, plant and equipment presented in the balance sheet includes the following right-of-use assets.

Right-of-use assets in the balance sheet
DKK million
Land and buildings

Other equipment

 
Total

 
 
 
 
 
 
 
2019
 
 
 
 
 
Balance at 1 January
3,291

487

 
3,778

 
Additions during the year
333

307

 
640

 
Depreciation for the year
(564
)
(288
)
 
(852
)
 
Other movements
(31
)
(3
)
 
(34
)
 
 
 
 
 
 
 
Balance at 31 December
3,029

503

 
3,532

 
 
 
 
 
 
 
Leases
Amounts recognised in the income statement
DKK million
 
2019

 
 
 
 
 
Depreciation
 
852

 
Interest on lease liabilities
 
108

 
Variable lease expenses
 
113

 
Short-term leases
 
201

 
Lease of low value assets
 
63

 
 
 
 
 
Total amounts recognised in the income statement
 
1,337

 
 
 
 
 

The lease costs for 2018 were DKK 1,299 million.

Amounts recognised in the cash flow statement
DKK million
 
 
 
 
 
 
 
Total cash outflow for leases
 
1,295

 
 
 
 
 
Inventories
Inventories
DKK million
 
2019

 
2018

 
 
 
 
 
Raw materials
 
2,842

 
2,464

Work in progress
 
11,375

 
11,753

Finished goods
 
4,850

 
4,078

 
 
 
 
 
Total inventories (gross)
 
19,067

 
18,295

Write-downs at year-end
 
(1,426
)
 
(1,959
)
 
 
 
 
 
Total inventories (net)
 
17,641

 
16,336

 
 
 
 
 
Indirect production costs included in work in progress and finished goods
 
9,216

 
8,533

Share of total inventories (net)
 
52
%
 
52
%
 
 
 
 
 
Movements in inventory write-downs
 
 
 
 
Write-downs at the beginning of the year
 
1,959

 
2,219

Write-downs during the year
 
414

 
509

Utilisation of write-downs
 
(68
)
 
(409
)
Reversal of write-downs
 
(879
)
 
(360
)
 
 
 
 
 
Write-downs at the end of the year
 
1,426

 
1,959

 
 
 
 
 
Trade Receivables
Trade receivables
DKK million
2019
Gross carrying amount

Loss allowance

 
Net carrying amount

 




 


 
Not yet due
24,359

(763
)
 
23,596

 
1-90 days
1,204

(127
)
 
1,077

 
91-180 days
261

(69
)
 
192

 
181-270 days
96

(49
)
 
47

 
271-360 days
79

(79
)
 
—

 
More than 360 days past due
397

(397
)
 
—

 
 
 
 
 
 
 
Trade receivables
26,396

(1,484
)
 
24,912

 





 


 
 
 
 
 
 
 
DKK million
2018
Gross carrying amount

Loss allowance

 
Net carrying amount

 





 


 
Not yet due
22,359

(692
)
 
21,667

 
1-90 days
1,055

(111
)
 
944

 
91-180 days
235

(79
)
 
156

 
181-270 days
60

(41
)
 
19

 
271-360 days
76

(76
)
 
—

 
More than 360 days past due
371

(371
)
 
—

 
 
 
 
 
 
 
Trade receivables
24,156

(1,370
)
 
22,786

 
 
 
 
 
 
 
 
 
 
 
 
 
Movements in allowance for doubtful trade receivables
 
2019

 
2018

 
 
 
 
 
 
 
Carrying amount at the beginning of the year
 
1,370

 
1,294

 
Reversal of allowance on realised losses
 
(45
)
 
(25
)
 
Net movement recognised in income statement
 
158

 
164

 
Effect of exchange rate adjustment
 
1

 
(63
)
 
 
 
 
 
 
 
Allowance at the end of the year
 
1,484

 
1,370

 
 
 
 
 
 
 
Retirement Benefit Obligations and Fair Value of Plan Assets
The net obligation recognised in the balance sheet is reported as non-current liabilities.
Net retirement benefit obligations
DKK million
2019


 
2018


 
 
 
 
Retirement benefit obligations
2,508

 
2,488

Fair value of plan assets
1,174

 
1,232

 
 
 
 
Net retirement benefit obligations at the end of the year
1,334

 
1,256

 
 
 
 
Sensitivity Analysis
Key assumptions used for valuation and sensitivity analysis
DKK million
Key assumptions

1 %-point increase

1 %-point decrease

 
 
 
 
 
 
2019
 
 
 
 
Discount rate (decrease)/increase
1.3
%
(366
)
465

 
Future remuneration growth (decrease)/increase
2.4
%
105

(94
)
 
 
 
 
 
 
2018
 
 
 
 
Discount rate (decrease)/increase
2.1
%
(369
)
458

 
Future remuneration growth (decrease)/increase
2.5
%
99

(89
)
 
 
 
 
 
 
Provisions
Provisions for sales rebates
DKK million
 
2019

 
2018

2017

 
 
 
 
 
 
At the beginning of the year
 
25,760

 
20,374

20,063

Additional provisions, including increases to existing provisions
 
102,782

 
82,631

63,880

Amount paid during the year
 
(98,655
)
 
(78,647
)
(61,059
)
Adjustments, including unused amounts reversed during the year
 
381

 
386

(117
)
Effect of exchange rate adjustment
 
610

 
1,016

(2,393
)
 
 
 
 
 
 
At the end of the year
 
30,878

 
25,760

20,374

 
 
 
 
 
 
Provisions
DKK million
Provisions
for sales
rebates

Provisions
for legal
disputes

Provisions
for product
returns

Other
provisions1

 
2019
total

 
2018
total

 
 
 
 
 
 
 
 
 
At the beginning of the year
25,760

1,860

869

1,064

 
29,553

 
24,057

Additional provisions, including increases to existing provisions
102,782

650

679

510

 
104,621

 
83,337

Amount used during the year
(98,655
)
(4
)
(424
)
(161
)
 
(99,244
)
 
(79,243
)
Adjustments, including unused amounts reversed during the year
381

(156
)
(48
)
(29
)
 
148

 
314

Effect of exchange rate adjustment
610

25

6

14

 
655

 
1,088

 
 
 
 
 
 
 
 
 
At the end of the year
30,878

2,375

1,082

1,398

 
35,733

 
29,553

 
 
 
 
 
 
 
 
 
Non-current liabilities2
551

2,375

300

1,387

 
4,613

 
3,392

Current liabilities
30,327

—

782

11

 
31,120

 
26,161

 
 
 
 
 
 
 
 
 

1.
Other provisions consists of various types of provision, including obligations in relation to employee benefits such as jubilee benefits, company-owned life insurance, etc.
2.
For non-current liabilities, provision for sales rebates is expected to be settled after one year, provisions for product returns will be utilised in 2021 and 2022. In the case of provisions for legal disputes, the timing of settlement cannot be determined.