Nobel Biocare benefits from a positive result of a mutual agreement procedure among two tax authorities

Nobel Biocare obtained a favorable answer from a mutual agreement procedure among two tax authorities which will allow for an immediate release of a tax provision in the amount of approximately EUR 9.6 million. While this amount will be fully recognized in the tax line of the profit and loss statement in the third quarter 2014, it will have no cash impact.

Nobel Biocare has been included in a mutual agreement procedure with regards to its filed level of taxable profits for the fiscal years spanning 2009 to 2013. The original assessment of one of the authorities would have led to a significantly increased taxable profit level which would have resulted in additional income taxes. Based on the above mentioned assessment and applying best estimate, the company had recognized an income tax provision.

The Company has now received notification that the tax authorities have followed Nobel Biocare’s position and confirmed that no adjustment of the taxable profit for the fiscal years spanning 2009 to 2013 will be made. As a result, the tax provision of approximately EUR 9.6 million will be immediately released.