ANNUAL REPORT 2021
LUNDBECK
ANNUAL REPORT 2021
= CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS
NOTES 12-13
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12 EQUITY - CONTINUED
Before tax
DKKm
Tax
DKKm
After tax
DKKm
2020
Other comprehensive income recognized under foreign currency
translation reserve in the statement of changes in equity
Exchange rate gains/losses on investments in foreign subsidiaries
Exchange rate gains/losses on additions to net investments in foreign
subsidiaries
(1,007)
(1,007)
(21)
3
Hedging of net investments in foreign subsidiaries
356
(79)
(18)
277
Total
(672)
(76)
(748)
Other comprehensive income recognized under hedging reserve in the
statement of changes in equity
Deferred exchange gains/losses, hedging
313
(69)
244
13 RETIREMENT BENEFIT OBLIGATIONS AND SIMILAR OBLIGATIONS
Defined contribution plans
The major defined contribution plans cover employees in Australia, Canada, Denmark, Finland, South Korea,
Sweden, the UK and the U.S. The cost of defined contribution plans, representing contributions to the plans,
amounted to DKK 246 million in 2021 (DKK 234 million in 2020).
Defined benefit plans
The Group has defined benefit plans in a few countries. The most important plans comprise current and
former employees in Germany and the UK.
The defined benefit plan in Germany is unfunded and administered by Lundbeck Germany. The defined
benefit plan in the UK is funded and constituted under a trust, whose assets are legally separated from the
Group. Both plans entitle the employees to an annual pension on retirement based on the service and salary
level until retirement.
Deferred fair value of interest rate swaps
(90)
20
(70)
Exchange gains/losses, hedging (transferred to revenue)
(5)
1
(4)
Total
218
(48)
Retirement benefit obligations and similar obligations
170
Present value of defined benefit plans
Other comprehensive income recognized under retained
earnings in the statement of changes in equity
Fair value of plan assets
Defined benefit plans at 31 December
Actuarial gains/losses
Total
(1)
(1)
1
Other obligations of a retirement benefit nature
1
Retirement benefit obligations and similar obligations at 31 December
2021
DKKm
2020
DKKm
539
530
(285)
(275)
254
255
35
35
289
290
Recognized in other comprehensive income
(455)
(123)
(578)
Retirement benefit obligations and similar obligations break down as follows:
Non-current obligations
288
288
Exchange rate gains/losses on investments in foreign subsidiaries, a gain of DKK 960 million (a loss of DKK
1,007 million in 2020), and exchange rate gains/losses on additions to net investments in foreign subsidiaries,
a loss of DKK 157 million (DKK 21 million in 2020), are primarily driven by developments in USD/DKK and
GBP/DKK exchange rates.
Current obligations
1
2
Retirement benefit obligations and similar obligations at 31 December
289
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