Glanbia plcAnnual Report 2011Financial statementswww.glanbia.com5.2 (c): Segment assets are reconciled to reported assets as follows:2010?'000Segment assets1,386,818Unallocated assets240,027Reported assets 1,626,845Unallocated assets primarily include tax, cash and cash equivalents, available for sale financial assets and derivatives.5.2 (d): Segment liabilities are reconciled to reported liabilities as follows:Unallocated liabilities primarily include items such as tax, borrowings and derivatives.2011?'0002010?'000Ireland 799,489 725,834UK 162,028 137,874Rest of Europe 254,991 189,308USA 1,119,417 901,717Other 335,226 211,962 2,671,151 2,166,695Revenue of approximately ?320.0 million (2010: ?249.6 million) is derived from a single external customer. The breakdownof revenue by geographical destination for 2010 has been updated to reflect the current year classification.The total of non-current assets, other than financial instruments and deferred income tax assets, located in Ireland is ?267.8million (2010: ?271.5 million) and located in other countries, mainly the USA is ?690.4 million (2010: ?562.6 million).5.3 Entity wide disclosuresRevenue from external customers for each group of similar product in the US Cheese & Global Nutritionals, Dairy Ireland,Joint Ventures & Associates and Other Business segments are outlined in section 5.1 and 5.2 above.Geographical informationRevenue by geographical destination is reviewed by the Chief Operating Decision Maker. The breakdown of revenue bygeographical destination is as follows:5.2 (e): Segment capital expenditure and acquisitions are reconciled to reported capital expenditure and acquisitions as follows:2010?'000Segment liabilities490,041Unallocated liabilities712,400Reported liabilities 1,202,4412010?'000Segment capital expenditure and acquisitions48,632Joint Ventures & Associates capital expenditure(11,901)466Reported capital expenditure and acquisitions 37,197

Glanbia plcAnnual Report 2011Financial statementswww.glanbia.com6. Operating expensesThe following items have been included in arriving at operating profit:Notes2011?'0002010?'000Depreciation of property, plant and equipment- Owned assets 14 32,771 31,177- Leased assets under finance leases 14 1,369 1,392Loss on disposal of property, plant and equipment35 363957Repairs and maintenance expenditure on property, plant and equipment 28,101 27,207Exceptional items (pre tax)- Rationalisation costs 7 8,723-- Irish defined benefit pension schemes 7-(10,238)Net foreign exchange (gain)/loss(1,108) 3,430Amortisation of intangible assets- Software costs 15 4,854 4,924- Other intangible assets 15 13,618 10,187Increase in inventories 32,974 102,304Raw materials and consumables used 1,954,496 1,448,569Energy costs 32,835 28,324Sales and marketing costs 68,169 56,390Impairment charge for bad and doubtful debts 6,173 1,357Amortisation of capital grants 30(1,440)(1,419)Operating lease rentals- Plant and machinery14 4,493 8,376- Other14 8,618 3,345Employee benefit expense - pre exceptional8 201,070 190,172Auditors' remuneration*- Statutory audit of Group companies566 546- Other assurance services697 834- Tax advisory services 986 930- Other non-audit services 270 2Research and development costs 8,397 8,037Other expenses 111,853 103,147Total operating expenses 2,518,848 2,019,9502011?'0002010?'000Reconciliation of total operating expenses to the income statementCost of sales 2,236,515 1,784,263Distribution expenses 140,940 115,896Administration expenses 141,393 130,029Other gains and losses-(10,238)Total operating expenses 2,518,848 2,019,950* Auditors' remuneration for the Company in respect of its statutory audit amounted to ?35,000 (2010: ?35,000)