FINANCIAL AND ACCOUNTING INFORMATION 10. Net financial expenses FOR THE YEAR ENDED DECEMBER 31, (in millions of euros) 2017 2016 Interest income on cash and cash equivalents 0.0 0.4 Interest income on receivables and loans 2.3 1.6 Financial income 2.3 2.0 Interest expense on financial debt (stated at amortized cost) (94.7) (110.0) Interest gain / (expense) on interest rate derivatives 5.1 0.2 Change in fair value of interest rate derivatives through profit and loss (2.3) 5.5 Financial expense on borrowings (91.9) (104.3) Non-recurring redemption costs (18.8) (1) (16.3)(2) Foreign exchange gain (loss) (2.0) 4.4 Change in fair value of exchange rate derivatives through profit and loss 3.2 (2.8) Net foreign exchange gain (loss) 1.2 1.6 Net financial expense on employee benefit obligations (9.8) (10.6) Others (29.0)(3) (18.7) Other financial expenses (37.6) (27.7) Net financial expenses (145.9) (146.3) (1)Relating to the early repayment of (i) the €500 million senior notes due 2022 for €12.5 million and (ii) the remaining US$330 million out of the US$500 million senior notes due 2020 for €6.3 million (see note 22.1.2). (2) Relating to the early repayment of (i) the €650 million senior notes due 2020 for €10.0 million and (ii) the US$170 million partial redemption of the US$500 million senior notes due 2020 for €6.3 million. (3) I ncluding €10.9 million associated with the discounting impact of letters of credit due from overseas financial institutions (€3.6 million in 2016). 11. Income tax 11.2 Deferred tax assets and liabilities Rexel and its French subsidiaries have formed a Changes in net deferred tax assets / (liabilities) are tax group from January 1, 2005. Rexel uses tax as follows: consol idation in other countries where simi lar options exist. (in millions of euros) 2017 2016 Net deferred tax at the 11.1 Income tax expense beginning of the year (111.6) (52.1) FOR THE YEAR ENDED Deferred tax income (expense) (4.0) (29.8) DECEMBER 31, Other comprenhensive income 19.5 (10.1) (in millions of euros) 2017 2016 Change in consolidation scope 0.7 (7.1) Current tax (66.5) (82.9) Currency translation adjustment 16.7 (12.4) Deferred tax (7.1) (31.9) Other changes 0.9 (0.2) Prior year adjustments Net deferred tax at the end on income tax 2.2 (1.6) of the year (77.8) (111.6) Total income tax expense (71.5) (116.4) REXEL 2017 – REGISTRATION DOCUMENT 232