Legal Proceedings
−Removed: In 2008 and 2012, as part of routine audits, the Brazilian taxing authorities disallowed deductions relating to the amortization of certain goodwill recognized in connection with a reorganization of our Brazilian operations and the related transfer of certain assets to our Brazilian subsidiaries.
−Removed: The amount of the tax disallowance through December 31, 2022, not including interest and penalties, was approximately 131.5 million Brazilian reais (or approximately $24.9 million).
−Removed: The amount ultimately in dispute will be significantly greater because of interest and penalties that will continue to increase as time progresses.
−Removed: We have been advised by our legal and tax advisors that our position with respect to the deductions is allowable under the tax laws of Brazil.
−Removed: We are contesting the disallowance and believe that it is not likely that the assessment, interest or penalties will be required to be paid.
−Removed: However, the ultimate outcome will not be determined until the Brazilian tax appeal process is complete, which could take several years.
−Removed: On January 12, 2023, the Brazilian government issued a “Litigation Zero” tax amnesty program, whereby cases being disputed at the administrative court level of review for a period of more than ten years can be considered for amnesty.
−Removed: If companies choose to enroll in the amnesty program, it would not be considered an admission of guilt with respect to outstanding cases.
−Removed: We are considering whether or not to apply to enroll in the program by March 2023.
−Removed: The ultimate outcome of our consideration with respect to our participation in the amnesty program cannot currently be determined.
−Removed: During 2017, we purchased Precision Planting, which provides precision agricultural technology solutions.
+Added: During 2017, the Company purchased Precision Planting, which provides precision agricultural technology solutions.
In 2018, Deere & Company (“Deere”) filed separate complaints in the U.S.
−Removed: District Court of Delaware against us and Precision Planting alleging that certain products of those entities infringed certain patents of Deere.
+Added: District Court of Delaware against the Company and Precision Planting alleging that certain products of those entities infringed certain patents of Deere.
The two complaints subsequently were consolidated into a single case, Case No.
1:18-cv-00827-CFC.
−Removed: In July 2022, the case was tried before a jury, which determined that we and Precision Planting had not infringed the Deere patents.
−Removed: The case currently is subject to customary post-trial procedures, including the right of the parties to appeal.
−Removed: We have an indemnity right under the purchase agreement related to the acquisition of Precision Planting from its previous owner.
+Added: In July 2022, the case was tried before a jury, which determined that the Company and Precision Planting had not infringed the Deere patents.
+Added: Following customary post-trial procedures, the Court entered a judgement in the Company’s favor, and Deere appealed the judgment to the U.S.
+Added: Court of Appeals for the Federal Circuit.
+Added: The appeal is fully briefed and is awaiting oral arguments before the court.
+Added: The Company has an indemnity right under the purchase agreement related to the acquisition of Precision Planting from its previous owner.
Pursuant to that right, the previous owner of Precision Planting currently is responsible for the litigation costs associated with the complaint and is obligated to reimburse AGCO for some or all of the damages in the event of an adverse outcome in the litigation.
4 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.