b'KOSMOS ENERGY LTD.Notes to Consolidated Financial Statements (Continued)13. Income Taxes (Continued)we expect to recover from insurance proceeds. Any such insurance recoveries would not be subject toincome tax.Our operations in other foreign jurisdictions have a 0% effective tax rate because they reside incountries with a 0% statutory rate or we have incurred losses in those countries and have full valuationallowances against the corresponding net deferred tax assets.Deferred tax assets and liabilities, which are computed on the estimated income tax effect oftemporary differences between financial and tax bases in assets and liabilities, are determined using thetax rates expected to be in effect when taxes are actually paid or recovered. In assessing therealizability of deferred tax assets, management considers whether it is more likely than not that someportion or all of the deferred tax assets will not be realized. The ultimate realization of deferred taxassets is dependent upon the generation of future taxable income during the periods in which thosetemporary differences become deductible. The tax effects of significant temporary differences givingrise to deferred tax assets and liabilities are as follows:December 31,2018 2017(In thousands)Deferred tax assets:Foreign capitalized operating expenses . . . . . . . . . . . . . . . $ 128,809 $ 68,218Foreign net operating losses . . . . . . . . . . . . . . . . . . . . . . . 28,050 25,307United States net operating losses . . . . . . . . . . . . . . . . . . 59,336 Equity compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,408 20,783Unrealized derivative losses . . . . . . . . . . . . . . . . . . . . . . .33,963Asset retirement obligation and other . . . . . . . . . . . . . . . . 29,450 24,784Total deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . 257,053 173,055Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . (156,860) (93,525)Total deferred tax assets, net . . . . . . . . . . . . . . . . . . . . . . . . 100,193 79,530Deferred tax liabilities:Depletion, depreciation and amortization related toproperty and equipment . . . . . . . . . . . . . . . . . . . . . . . . (547,389) (533,561)Unrealized derivative gains . . . . . . . . . . . . . . . . . . . . . . . (15,979) Total deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . (563,368) (533,561)Net deferred tax liability . . . . . . . . . . . . . . . . . . . . . . . . . . . $(463,175) $(454,031)The Company has recorded a full valuation allowance against the net deferred tax assets incountries where we only have exploration operations.The Company has foreign net operating loss carryforwards of $103.0 million. Of these losses, weexpect $0.9 million, $0.5 million, $0.5 million, $0.6 million, $0.7 million, $15.0 million and $0.1 millionto expire in 2019, 2020, 2021, 2022, 2023, 2029 and 2030, respectively, and $84.7 million do not expire.All of these losses currently have offsetting valuation allowances. The Company has $282.5 million ofUnited States net operating loss that will not expire.143'