Glanbia plcAnnual Report 2011Financial statementswww.glanbia.com10. Finance income and costs2011?'0002010?'000Finance incomeInterest income 2,874 3,008Interest income on deferred consideration 182 282Total finance income 3,056 3,290Finance costsBank borrowings repayable within five years(14,092)(13,001)Interest cost on deferred consideration(106)(80)UK pension provision(113)(121)Finance lease costs(188)(256)Interest rate swaps, transfer from equity(4,876)(7,613)Interest rate swaps, fair value hedges 2,308 2,733Fair value adjustment to borrowings attributable to interest rate risk(2,308)(2,733)Finance cost of private debt placement(7,273)-Finance cost of preference shares(4,349)(4,349)Total finance costs(30,997)(25,420)Net finance costs(27,941)(22,130)9. Directors' remunerationThe Directors' remuneration information is shown on pages 60 to 65 in the Governance section of this report.Net finance costs exclude borrowing costs attributable to the acquisition, construction or production of a qualifying asset.

Glanbia plcAnnual Report 2011Financial statementswww.glanbia.com11. Income taxesNotes2011?'0002010?'000Current taxIrish current tax 8,641 11,620Adjustments in respect of prior years(435)(422)Irish current tax on income for the year 8,206 11,198Foreign current tax6,223 2,285Adjustments in respect of prior years 1,539 1,050Foreign current tax on income for the year 7,762 3,335Total current tax 15,968 14,533Deferred tax27 11,007 10,994Pre exceptional tax charge 26,975 25,527Exceptional tax (credit)/chargeCurrent tax(a)(1,090)-Deferred tax(b)- 558Total tax charge 25,885 26,085(a) The rationalisation cost charged during the year resulted in an exceptional current tax credit of ?1.1 million.(b) The curtailment gains and negative past service costs recognised in the defined benefit pension schemes in 2010 resulted in an exceptional deferred tax charge of ?0.6 million.The exceptional net tax credit and charge in 2011 and 2010, relating to costs and income which have been presented asexceptional, have been separately disclosed above.The tax on the Group's profit before tax differs from the theoretical amount that would arise applying the corporation tax ratein Ireland, as follows:2011?'0002010?'000Profit before tax 138,693 134,718Income tax calculated at Irish rate of 12.5% (2010: 12.5%) 17,337 16,840Earnings at higher/(reduced) Irish rates 836(902)Difference due to overseas tax rates 7,496 6,999Adjustment to tax charge in respect of previous periods(1,170)(1,811)Tax on post tax profits of Joint Ventures & Associates included in profit before tax(1,791)(1,263)Expenses not deductible for tax purposes and other differences 3,177 6,222Total tax charge 25,885 26,085Details of deferred income tax charged or credited directly to other comprehensive income during the year are outlined innote 27.Factors that may affect future tax charges and other disclosure requirementsThe total tax charge in future periods will be affected by any changes to the applicable tax rates in force in jurisdictions inwhich the Group operates and other relevant changes in tax legislation, including amendments impacting on the excess oftax depreciation over accounting depreciation. The total tax charge of the Group may also be influenced by the effects ofcorporate development activity.