Domestic and foreign components of income (loss) before income taxes for the years ended December 31, 2012, 2011 and 2010, are as follows (in  thousands):  The annual tax provision (benefit) is different from the amount that would be provided by applying the statutory federal income tax rate to our  pretax income (loss). The reasons for the difference are (in thousands): We evaluated the positive and negative evidence available to determine the amount of valuation allowance required on our deferred tax assets. At  December 31, 2012 and 2011, the balances of our valuation allowances were $23 million, primarily for foreign net operating loss carryforwards. For the  year ended December 31, 2012, deferred tax assets remained constant, on a net basis, with utilization matching additions. The individual components  of our net deferred tax assets are reflected in the table below. For the year ended December 31, 2011, the U.S. federal and state deferred tax assets for  tax loss carryforwards were reduced by utilization of approximately $71 million. Also, during the fourth quarter of 2010, due to increased gross profits  and a favorable outlook for metal prices supporting future taxable income and our assessment that our deferred tax assets were more likely than not  recoverable, we recorded a reduction in valuation allowance on U.S. deferred assets of $88 million. The amount of the deferred tax asset considered  recoverable, however, could be reduced in the near term if estimates of future taxable income are reduced.  The components of the net deferred tax asset were as follows (in thousands): We plan to permanently reinvest earnings from foreign subsidiaries. For the years 2012, 2011 and 2010, we had no unremitted foreign earnings.  Foreign net operating losses carried forward are shown above as a deferred tax asset, with a corresponding valuation allowance as discussed below. We recorded a valuation allowance to reflect the estimated amount of deferred tax assets, which may not be realized principally due to the  expiration of foreign net operating losses and foreign tax credit carryforwards. The changes in the valuation allowance for the years ended December  31, 2012, 2011 and 2010, are as follows (in thousands): F-14 [ HL:10-K ]  2012 2011 2010 Domestic $ 37,025 $ 244,833 $ (66,348) Foreign (13,192)  (11,691)  (8,201) Total  $ 23,833  $ 233,142 $ (74,549) 2012 2011 2010 Computed “statutory” (benefit) provision  $  8,342  35%  $  81,600  35%  $  (26,092)  (35)% Percentage depletion (5,575) (24) (13,751) (6) (8,858) (12) Net increase (utilization) of U.S. and foreign tax loss carryforwards  3,837  16  3,822  2  2,713  3  Change in valuation allowance other than utilization  —  —  —  —  (88,069)  (118) State taxes, net of federal taxes  1,110  5  10,890  5  (4,717)  (6) Effect of U.S. AMT, foreign taxes other  1,165  5  (583)  (1)  1,491  2  $ 8,879  37%  $ 81,978  35%  $ (123,532)  (13)% 2012 2011 Deferred tax assets:  Accrued reclamation costs $ 45,653 $ 62,225 Deferred exploration 32,396 18,585 Foreign net operating losses  20,247 20,234 Federal net operating losses  44,146 47,875 State net operating losses 668 2,445 AMT credit carryforwards 24,603 15,210 Pension and benefit obligation 12,488 9,940 Miscellaneous 17,437  16,002  Total deferred tax assets 197,638 192,516 Valuation allowance (23,030)  (22,895) Total deferred tax assets 174,608  169,621  Deferred tax liabilities:  Unrealized gain on derivatives contracts  (1,262)  (13,293) Properties, plants and equipment  (57,583)  (40,490) Total deferred tax liabilities  (58,845)  (53,783) Net deferred tax asset $ 115,763  $ 115,838  2012 2011 2010 Balance at beginning of year $ (22,895) $ (19,073) $ (104,429) Increase related to non-utilization of net operating loss carryforwards and non-recognition of deferred tax assets due to uncertainty of recovery  (3,837)  (3,822)  (2,713) Decrease related to net recognition of deferred tax assets  —  —  88,069  Decrease related to utilization and expiration of deferred tax assets, other  3,702  —  —  Balance at end of year  $ (23,030)  $ (22,895)  $ (19,073) December 31,