5 TAXATION

The effective tax rate for the first half was 25.9% compared to 28.9% in 2017. The tax rate is calculated by dividing the tax charge by pre-tax profit excluding the contribution of joint ventures and associates.

Tax effects of components of other comprehensive income were as follows:


	First Half 2018									First Half 2017
€ million	Before tax			Tax (charge)/ credit			After tax			Before tax			Tax (charge)/ credit			After tax
Gains/(losses) on^(a):
Equity instruments at fair value through other comprehensive income		(4	)		–			(4	)		–			–			–
Cash flow hedges		32			4			36			74			(11	)		63
Other financial instruments		–			–			–			(11	)		(1	)		(12	)
Remeasurements of defined benefit pension plans		206			(64	)		142			751			(110	)		641
Currency retranslation gains/(losses)		(768	)		1			(767	)		(723	)		29			(694	)


Other comprehensive income		(534	)		(59	)		(593	)		91			(93	)		(2	)

(a)	Classification has changed following adoption of IFRS 9. See note 1 for further details.