Novo-Nordisk-AR-2012-en

106 FINANCIAL STATEMENTS OF THE PARENT COMPANY
Notes
1 Accounting policies
The fi nancial statements of the parent company have been prepared in
accordance with the Danish Financial Statements Act (Class D) and
other accounting regulations for companies listed on NASDAQ OMX
Copenhagen.
The accounting policies for the fi nancial statements of the parent company
are unchanged from the last fi nancial year and are the same as for the
consolid ated fi nancial statements with the following additions. For a
description of the accounting policies of the Group, please refer to the
Consolidated fi nancial statements, pp 60–62.
Supplementary accounting policies for the parent company
Financial assets
In the fi nancial statements of the parent company, investments in
sub sidiaries and associated companies are recorded under the
equity method, which is at the respective share of the net asset values in
subsidiaries and associated companies. Any cost in excess of net assets in
the acquired company is capitalised in the parent company under Financial
assets as part of investments in subsidiaries (‘Goodwill’). Amortisation
of goodwill is provided under the straight-line method over a period not
exceeding 20 years based on estimated useful life.
Net profi t of subsidiaries less unrealised intra-Group profi ts is recorded in
the Income statement of the parent company.
To the extent it exceeds declared dividends from such companies, net
revaluation of investments in subsidiaries is transferred to Net revaluation
reserve under Equity according to the equity method.
Fair value adjustments of fi nancial assets categorised as ‘Available for sale’
in the parent company are recognised in the Income statement.
Profi ts in subsidiaries are disclosed as profi t after tax.
Tax
For Danish tax purposes, the parent company is assessed jointly with its
Danish subsidiaries. The Danish jointly taxed companies are included in a
Danish on-account tax payment scheme for Danish corporate income tax.
All current taxes under the scheme are recorded in the individual
com panies.
Statement of cash fl ows
No separate statement of cash fl ows has been prepared for the parent
company; please refer to the Consolidated Statement of cash fl ows on p 58.
2 Sales
DKK million 2012 2011
Sales by business segment 1
Diabetes care 49,479 39,978
Biopharmaceuticals 355 474
Total sales 49,834 40,452
Sales by geographical segment 1
North America 20,463 14,018
Europe 13,201 12,308
International Operations 7,986 6,796
Japan & Korea 3,992 3,699
Region China 4,192 3,631
Total sales 49,834 40,452
Sales are attributed to geographical segment based on location of the
customer.
1. For defi nitions of the segments, please refer to note 2.2 in the Consolidated fi nancial
statements.
NOVO NORDISK ANNUAL REPORT 2012
3 Employee costs
DKK million 2012 2011
Wages and salaries 7,076 6,725
Share-based payment costs 167 126
Pensions 663 620
Other social security contributions 183 177
Other employee costs 264 257
Total employee costs 8,353 7,905
Included in the Balance sheet as change
in employee costs included in Inventories (7) (91)
For information regarding remuneration to the Board of Directors and
Executive Management, please refer to ‘Remuneration’ pp 49–51 and note
2.3 in the Consolidated fi nancial statements.
2012 2011
Average number of full-time
employees in Novo Nordisk A/S 12,003 11,559
4 Financial income and fi nancial expenses
DKK million 2012 2011
Interest income relating to subsidiaries 31 17
Other fi nancial income 108 420
Total fi nancial income 139 437
Interest expenses relating to subsidiaries 70 163
Foreign exchange loss (net) 148 337
Other fi nancial expenses 1,574 382
Total fi nancial expenses 1,792 882
5 Income taxes
According to the Danish joint taxation regime, all Danish group companies
are automatically taxed on a joint basis. Hence Novo Nordisk A/S and its
Danish subsidiaries are included in the joint taxation scheme of the parent
company, Novo A/S. Novo Nordisk A/S and its Danish subsidiaries’ tax
contribution to the joint taxation in 2012 amounts to DKK 3,527 million
(DKK 2,330 million in 2011).
In 2012, Novo Nordisk A/S paid (cash) income taxes of DKK 4,235 million
related to the current year (DKK 3,075 million in 2011) and DKK 3,620
million in taxes regarding prior years (a refund of DKK 269 million in 2011).
Furthermore, DKK 40 million has been paid in income taxes by Danish
subsidiaries (a payment of DKK 19 million in 2011).
6 Deferred income tax assets/(liabilities)
DKK million 2012 2011
The deferred tax assets/liabilities are allocated
to the various balance sheet items as follows:
Property, plant and equipment (912) (1,018)
Indirect production costs (810) (874)
Unrealised profi t on intra-Group sales 2,024 1,945
Other (354) 169
Total income tax assets/(liabilities) (52) 222
The deferred income tax has been calculated using a tax rate of 25%.