Amendment #4 Page 531 of 868 shin iif wo The branch income une item represents pee-tax intone or loss generated in foreign pass-though entees inclose?e of permanent differences, me plied by the U S statutory rate. Teis Ire item reflects me dale taxation of foreign income a loss which will occur as a resat of such ncorre or loss being street to tax bota in the foreign tunsilcton to which the entry relates as well as the U.S The U S statutory rate, rather elan me local foreign rate is tipped to this income or loss so that tre impact or tie rate referential between t e U.S statutory rate and tee virgin foreign rates can be separately shown in the line tern 'Foreign rate cheerersel' The foreign taxes me tern represent the future U S. tax ompacations associated with foreign tax expense or benefit generated in each foreign turisaction To ire extent a faegi Jurisdiction generates tax expense, that expense 4 OilersIN expeeled to result in U S. tax deductions in the future To tre extent a fixegn tirsdchon recognizes a tax benefit, that benefit is generally expected to result in en tierces* to U S taxable Income in the have Deferred tarn Tre tax effects of the major item recorded as deterred tax assets and baba« are (n assans) As of ~Amber 31, 2011 2013 Deferred tax assets Net operating loss canyforwards 5 38,901 $ 359 9,332 Asset ref cement odgations 644 Deterred foreign taxes 940 1,320 Mark to market hedging 5452 — Urreataed currency pertness 164 Total deferred tax assets 44 101 121 638 1327 Deferred tax to Or ties Roperty and equipment (36 (1:3184 36: (12,W8) Mari to market hedging Urretzed currency garvess (5,110) — Taal deferred tax towh (37,520) ee (17,888) Valuation ~wane* (9,265) (2.431) Net deferred tax hates $ (2,684) S ( Net operating loss canyforwards represent tax benefits measured assuming that the Company had teen a stand alone operating company site January 1. 2012(7,511) 3 below halts more bidy ran not that w