85 AGL Energy Limited Annual Report 2012 2012  $m 2011  $m Note 8 – Net financing costs Finance income Interest income Associates and jointly controlled entities 14.0  10.7  Other entities 31.4  37.2  45.4  47.9  Finance costs Interest expense Other entities 94.2  75.1  Finance costs capitalised (26.8) (15.4) Unwinding of discounts on provisions 10.7  11.4  Unwinding of discount on contingent consideration 0.2  –  Other finance costs 5.6  2.3  83.9  73.4  Net financing costs 38.5  25.5  The weighted average capitalisation rate on funds borrowed for finance costs capitalised is 7.25% (2011: 6.54%). Note 9 – Profit before income tax Profit before income tax has been arrived at after charging the following expenses.  Depreciation and amortisation Property, plant and equipment 118.2  104.2  Oil and gas assets 15.8  17.0  Intangible assets 34.1  21.0  Other 5.8  5.8  173.9  148.0  Employee benefits expense Wages and salaries 300.6  277.5  Defined benefit superannuation plans 1.6  2.1  Defined contribution superannuation plans 15.8  14.4  Share-based payment plans 6.4  2.0  Other employee benefits 32.0  34.6  356.4  330.6  Significant expense/(income) items before income tax Impairment loss on exploration and evaluation assets 35.8  –  Loss on remeasurement to fair value of pre-existing equity interest in an acquired entity 120.7  –  Cumulative loss reclassified from equity of pre-existing equity interest in an acquired entity 36.3  –  Merger and acquisition related costs 12.9  17.3  Redundancy, termination, integration and restructure costs 8.9  27.0  Gain on purchase of financial instruments (2.9) –  211.7  44.3  Income tax (income)/expense applicable: Impairment loss on exploration and evaluation assets (9.2) –  Loss on remeasurement to fair value of pre-existing equity interest in an acquired entity –  –  Cumulative loss reclassified from equity of pre-existing equity interest in an acquired entity –  –  Merger and acquisition related costs –  (4.2) Redundancy, termination, integration and restructure costs (2.5) (7.3) Gain on purchase of financial instruments 0.9  –  (10.8) (11.5) Recognition of a deferred tax asset due to the changes to the Petroleum Resource Rent Tax Legislation to cover onshore  oil and gas projects (53.4) –  Effect of change in income tax treatment for surrender obligations under various green product schemes 7.6  –  Effect of retrospective changes to Tax Consolidation Legislation –  (5.5) (56.6) (17.0) Significant expense items after income tax 155.1  27.3