The loss on short term investments is a result of mark to market valuation of these investments.
Share-based compensation expense for the quarter and year-to-date decreased by $4 million and $24 million respectively, as a result of a decrease in the fair value per stock option granted as a result of lower stock price during the quarter as compared to the prior year's quarter and period and the reversal of share-based compensation expense due to forfeitures of stock options.
The Indian rupee weakened against the US dollar during the quarter and year to date. As a result, there was a small unrealized foreign exchange loss during the quarter mainly because the loss arising due to revaluing Indian rupee based income tax receivable was offset by the gains arising due to revaluing Indian rupee based income tax payable.
There was a deferred tax recovery for the quarter of $6 million compared to a deferred tax expense in the prior year's quarter of $7 million. The primary reason for the change is a deferred tax recovery relating to the issuance of convertible notes in December 2012. The year-to-date deferred tax recovery was also a result of a reduction in deferred tax liabilities resulting from a reduction in exploration and evaluation assets related to proceeds from a farm out and from a former partner in exchange for assuming the partner's obligation for future drilling commitments.
In the prior year to date period, the change in accounting estimate is related to deferred income tax as a result of estimating the amount of taxable temporary differences reversing during the tax holiday period.
Capital Expenditures, net of Proceeds of Farm-outs and Other Arrangements
The following table sets forth the capital additions and exploration and evaluation costs expensed directly to income, net of proceeds of farm-outs and other arrangements, for the nine months ended December 31, 2012.
---------------------------------------------------------------------------- Nine months ended December 31, 2012---------------------------------------------------------------------------- Additions Directly Proceeds to expensed from explor- explor- Additions farm ation Additions ation to outs and related and property, and(thousands evaluation to evaluation plant and other of U.S. assets future costs equipment arrange- dollars) (1)(2) drilling (1) (1) ments Total----------------------------------------------------------------------------Indonesia 86,424 25,160 20,552 4,234 (45,203) 91,167Trinidad 34,175 11,042 21,137 2,400 - 68,754All other 568 - 11,253 2,077 - 13,898----------------------------------------------------------------------------Total 121,167 36,202 52,942 8,711 (45,203) 173,819----------------------------------------------------------------------------(1) Share-based compensation and other non-cash items are excluded.(2) Includes additions in the year that were subsequently written off.
Indonesia
Additions to exploration and evaluation assets for Indonesia for the nine months ended December 31, 2012 include costs related to three wells in the Lhokseumawe block, one well in the North Ganal block and one well in the Kofiau block, along with acquisition costs of the Lhokseumawe block. The additions to future drilling in Indonesia relate to the costs of drilling inventory and other activities incurred to prepare for the current drilling campaign. These costs will be allocated when wells are drilled. Exploration and evaluation costs expensed directly to income include costs related to seismic and other exploration projects and branch office costs. In the second quarter of fiscal 2013, the Company recorded proceeds of a farm-out of $9 million and received $36 million from a former partner in exchange for assuming the partner's obligation for future drilling commitments.
