79 AGL Energy Limited Annual Report 2011 2011 2010 $m $m Note 7 – Net fi nancing costs Finance income Interest income  Associates  10.7 10.1  Other  entities  37.2 28.0 47.9 38.1 Finance costs Interest expense  Other  entities  75.1 67.8 Finance costs capitalised  (15.4) (18.3) Unwinding of discounts on provisions  11.4 11.9 Other finance costs  2.3 12.5 73.4 73.9 Net fi nancing costs 25.5 35.8 The weighted average capitalisation rate on funds borrowed for finance costs capitalised is 6.54% (2010: 7.48%). Note 8 – Profit before income tax Profit before income tax has been arrived at after charging the following expenses. Depreciation and amortisation Property, plant and equipment  104.2 92.6 Oil and gas assets  17.0 17.7  Intangible assets  21.0 21.4  Other  5.8 5.8 148.0 137.5 Employee benefits expense Wages and salaries  277.5 268.5 Defined benefit superannuation plans  2.1 4.4 Defined contribution superannuation plans  14.4 12.3 Share-based payment plans  2.0 5.1 Other employee benefits  34.6 27.8 330.6 318.1 Significant (expense)/income items Profit before tax includes the following significant expense items: Impairment of exploration and evaluation assets  – (13.9) Impairment of property, plant and equipment  – (7.8) Merger and acquisition related costs  (17.3) (5.1) Redundancy, termination and restructure costs  (27.0) (11.1) Phoenix change program costs  – (11.7) (44.3) (49.6) Income tax income applicable: Impairment of exploration and evaluation assets  – 4.2 Impairment of property, plant and equipment  – 2.3 Merger and acquisition related costs  4.2 0.7 Redundancy, termination and restructure costs  7.3 3.3 Phoenix change program costs  – 3.5 11.5 14.0 Effect of retrospective changes to Tax Consolidation Legislation  5.5 85.5 17.0 99.5 Significant (expense)/income items after income tax (27.3) 49.9