Annual Report 2003 - Nobel Biocare Corporate

NOBEL BIOCARE ANNUAL REPORT 200345NOTESNOTE 7 Income tax expenseNOTE 9Intangible assetsRecognized in the income statement:in EUR'000 2003 2002Current tax expenseIncome taxes relating to the current period 16 404 13 944Income taxes relating to past periods, net 352 232Current income tax expense 16 756 14 176Deferred income tax expenseDue to temporary differences 2 351 3 008Creation/use of recognized tax loss carry-forwards -441 5 695Deferred income tax expense 1 910 8 703Total income tax expense in income statement 18 666 22 879Income tax expense can be analyzed as follows:in EUR'000 2003 2002Profit before tax 91 341 61 124Income tax expense at the averageapplicable rate of 21% (37%) 19 182 22 616Items that affect income tax expenseIncome taxes relating to past periods, net 352 232Tax losses not included in the basisfor deferred tax assets -840 640Other items -28 -609Effective income tax expense 18 666 22 879As a result of the new holding structure, the tax rate was 20.4 percentof profit before tax for the full year 2003, compared with 37.5 percentin 2002.NOTE 8 Property, plant and equipmentin EUR'000 Land and EquipbuildingsMachinery ment TotalCostBalance at 1 January 2003 3 444 29 559 38 494 71 497Investments for the year - 6 995 5 756 12 751Disposals - -1 173 -1 675 -2 848Effect of changes inexchange rates 41 2 236 -2 730 -453Balance at31 December 2003 3 485 37 617 39 845 80 947Accumulated depreciationand impairment lossesBalance at 1 January 2003 1 836 16 456 25 940 44 232Depreciation charge forthe year 139 3 860 5 417 9 416Disposals - -1 024 -1 078 -2 102Effect of changes inexchange rates 22 2 852 -1 542 1 332Balance at31 December 2003 1 997 22 144 28 737 52 878Carrying amountAt 31 December 2003 1 488 15 473 11 108 28 069At 31 December 2002 1 608 13 103 12 554 27 265The fire insurance value amounts to EUR 45.3 M (EUR 44.7 M) as per31 December 2003.in EUR'000Capitalizedexpendituresfor computerGoodwill Patents programs TotalCostBalance at 1 January 2003 176 789 2 397 9 615 188 801Investments for the year 23 1 104 1 127Effect of changes inexchange rates -8 510 -129 -53 -8 692Balance at31 December 2003 168 279 2 291 10 666 181 236Accumulated amortizationand impairment lossesBalance at 1 January 2003 34 377 2 115 7 389 43 881Amortization charge forthe year 9 315 115 1 190 10 620Effect of changes inexchange rates 1 641 -90 -89 1 462Balance at31 December 2003 45 333 2 140 8 490 55 963Carrying amountAt 31 December 2003 122 946 151 2 176 125 273At 31 December 2002 142 412 282 2 226 144 920NOTE 10 Investment in associatein EUR'000 2003 2002Balance at 1 January 2 259 1 648New share issue - 574Translation differences 27 37Balance at 31 December 2 286 2 259The associate is:2003 2002% of % ofCountry of interest interestincorporation held heldEntific Medical Systems AB Sweden 38.40 39.80NOTE 11 Receivablesin EUR'000 2003 2002Long-term trade receivable 575 1 010Rent deposits 726 944Other items 1 2Total non-current receivables 1 302 1 956NOTE 12 Inventoriesin EUR'000 2003 2002Raw materials and consumables 5 046 7 235Work in progress 2 249 3 700Finished products and goods for resale 15 104 17 120Total inventories 22 399 28 055Included in cost of sales are costs for obsolescence EUR 4 383 K(EUR 3 265 K).