Financial Reporting - Rexel

8. | NET FINANCIAL EXPENSES
For the year ended December 31,
(in millions of euros) 2011 2010
Expected return on employee benefit plan assets ………………… " " 50.2 46.7
Interest income on cash and cash equivalents …………………….. " " 2.0 0.9
Interest income on receivables and loans ……………………………… " " 2.3 1.7
Financial income ……………………………………………………… " " 54.5 49.3
Interest expense on financial debt (stated at amortized costs)…………" " (156.0) (151.0)
Gains and losses on derivative instruments previously deferred in
equity and recycled in the income statement (1) ………………….... " " (24.3) (33.8)
Foreign exchange gain (loss)………………………………………..…… " " 11.0 (10.2)
Change in fair value of exchange rate derivatives through profit and
loss ...…………………………………………………………………… " " (5.9) 10.7
Change in fair value of interest rate derivatives through profit and
loss ...…………………………………………………………………… " " (8.1) (5.5)
Interest expense on borrowings …………………………………… " " (183.2) (189.8)
Interest cost of employee benefit obligation and other long-term
" "
liabilities ……...…...................................................................
(55.2) (54.7)
Financial expenses (other) ………………………...………………………" " (7.2) (7.9)
Other financial expenses ………………………………………………" " (62.4) (62.6)
Financial expenses (net) " " (191.1) (203.1)
(1) of which a €13.1 million expense related to the reclassification of losses previously deferred through equity relating to the fair value of
swaps designated as a hedge of variable interest rate cash-flows on the US dollar for €12.1 million, Canadian dollar for €0.4 million and
Swiss franc for €0.7 million, following the partial repayment of the underlying senior credit facilities during the 2 nd and 3 rd quarter of 2011
(see note 20).
9. | INCOME TAX
Rexel and its French subsidiaries have formed a tax group from January 1, 2005. Rexel uses tax
consolidation in other countries where similar options exist.
9.1 | Income tax expense
For the year ended December 31
(in millions of euros) 2011 2010
Current tax ……….……………………………………………" " (104.5) (47.4)
Prior year adjustments on current income tax………………" " 1.5 (1.5)
Deferred tax ………………………………………………… " " 13.4 (8.9)
Total income tax expense ………………………………" " (89.6) (57.8)
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