Glanbia plcAnnual Report 2011Financial statementswww.glanbia.com27. Deferred income taxesThe following amounts, determined after appropriate offsetting (note 2 (l)) are shown in the consolidated statement offinancial position:2011?'0002010?'000Deferred income tax assets(11,255)(7,388)Deferred income tax liabilities 93,459 75,966Net deferred income tax liability 82,204 68,578The gross movement on the deferred income tax account is as follows:Notes2011?'0002010?'000At the beginning of the year 68,578 54,315Income statement - pre exceptional charge 11 11,007 10,994Income statement - exceptional charge- 558Deferred income tax (credit) to other comprehensive income 22(1,214)(2,267)Deferred income tax (credit)/charge on actuarial loss/gain 24(2,615) 1,250Deferred income tax on acquisition of intellectual property36 4,590-Exchange differences 1,858 3,728At the end of the year 82,204 68,578The movement in deferred income tax liabilities and assets during the year, without taking into consideration theoffsetting of balances within the same tax jurisdiction, is as follows:Deferred income tax liabilitiesNotesAcceleratedtaxdepreciation?'000Fairvaluegain/(loss)?'000IP anddeferreddevelopment costs?'000Other?'000Total?'000At 2 January 201034,1703,47222,184 6,511 66,337Charged/(credited) to income statement 2,163-(1,336) 7,172 7,999(Credited) to other comprehensive income22-(2,267)--(2,267)Exchange differences 1,822- 1,657 418 3,897At 1 January 2011 38,155 1,205 22,50514,101 75,966Charged/(credited) to income statement 2,690-(964) 4,252 5,978(Credited) to other comprehensive income22-(1,214)--(1,214)Acquisition of intellectual property36-- 4,590- 4,590Exchange differences 1,130- 794(47) 1,877Reclassification to deferred income tax assets- 9- 6,253 6,262At 31 December 2011 41,975- 26,925 24,559 93,459

Glanbia plcAnnual Report 2011Financial statementswww.glanbia.comThe deferred income tax credited to other comprehensive income during the year is as follows:Notes2011?'0002010?'000Available for sale financial asset reserve22(286)(1,345)Hedging reserve 22(928)(922)Impact of (increase)/decrease in retirement benefit obligations due to actuarial loss/gain24(2,615) 1,250(3,829)(1,017)A deferred income tax asset has been recognised on the basis that the realisation of the related tax benefit through futuretaxable profits is probable.Deferred income tax assets are recognised for tax losses carried forward to the extentthat realisation of the related taxbenefit through future taxable profits is probable. The Group has tax losses of ?100.8 million (2010: ?72.6 million) to carryforward against future taxable income on which a deferred income tax asset has not been recognised. Deferred income taxliabilities have not been recognised for withholding tax and other taxes that would be payable on the unremitted earnings ofcertain subsidiaries, associates and joint ventures.Deferred income tax assetsNotesRetirementobligations?'000Fairvalueloss?'000Taxlosses?'000Other?'000Total?'000At 2 January 2010(6,087)-(5,935)-(12,022)Charged to income statement 1,300- 2,253- 3,553Charged to other comprehensive income24 1,250--- 1,250Exchange differences 2-(171)-(169)At 1 January 2011(3,535)-(3,853)-(7,388)Charged to income statement 2,582- 2,447- 5,029(Credited) to other comprehensive income24(2,615)---(2,615)Exchange differences(1)-(18)-(19)Reclassification from deferred income tax liabilities-(9)-(6,253)(6,262)At 31 December 2011(3,569)(9)(1,424)(6,253)(11,255)