Novo-Nordisk-AR-2012-en

74 CONSOLIDATED FINANCIAL STATEMENTS
3.7 Retirement benefi t obligations (continued)
Net retirement benefi t obligations
DKK million 2012 2011
At the beginning of the year 439 569
Costs recognised in the Income statement 1 150 (25)
Remeasurements recognised in
Other comprehensive income 2 281 –
Exchange rate adjustment recognised in
Other comprehensive income 3 (17) 23
Employer contributions (93) (128)
At the end of the year 760 439
1. Costs in Income statement include service costs, net interests, curtailments and
other.
2. Remeasurements charged to Other comprehensive income including effect of
change in accounting policy in 2012 amounting to DKK 65 million.
3. Recognised in Other comprehensive income as part of Exchange rate adjustments
of investments in subsidiaries.
Please refer to note 5.4 for maturity analysis of net retirement benefi t
obligation.
Novo Nordisk does not expect the contributions over the next fi ve years to
differ signifi cantly from current contributions.
Weighted average asset allocation of funded
retirement obligations
NOVO NORDISK ANNUAL REPORT 2012
2012 2011
DKK DKK
million % million %
Coverage insurance 1 607 67% 575 67%
Equities 67 7% 49 5%
Bonds 214 24% 152 18%
Cash at bank 9 1% 75 9%
Property 7 1% 8 1%
Total 904 100% 859 100%
1. Novo Nordisk’s defi ned benefi t plans in Germany and Switzerland are reimbursed
by the international insurer Allianz regardless of the value of the plan assets. The
risk related to the funding in these countries is therefore counterparty risk against
Allianz.
Assumptions used for valuation
2012 2011
Discount rate 3% 4%
Projected future remuneration increases 2% 2%
Medical cost trend rate 3% 3%
Infl ation rate 2% 2%
Actuarial valuations are performed annually for all major defi ned benefi t
plans. Assumptions regarding future mortality are based on actuarial advice
in accordance with published statistics and experience in each country.
Signifi cant actuarial assumptions for the determination of the retirement
benefi t obligation are discount rate and expected future remuneration
increases. The sensitivity analyses below have been determined based on
reasonably likely changes in the assumptions occurring at the end of the
period.
1%-point 1%-point
DKK million increase decrease
Discount rate (237) 309
Future remuneration 77 (57)
3.8 Other liabilities
Other liabilities
DKK million 2012 2011
Employee costs payable 3,748 3,369
Accruals 3,697 2,992 1
VAT and duties payable 703 537
R&D clinical trials 229 211
Other payables 2 605 1,425
Total other liabilities 8,982 8,534
1. Including reclassifi cation to deferred income tax liabilities of DKK 739 million in 2012
(note 2.4).
2. Other payables primarily relates to royalty payments and deferred income.