FORM 20-F/A Brookfield Property Partners L.P. - Brookfield Asset ...

NOTE 14: OTHER NON-CURRENT LIABILITIESThe components of the company’s other non-current liabilities are as follows:(US$ Millions) Dec. 31, 2011 Dec. 31, 2010Other secured debt $ 150 $ 754Deferred gain - 172Other non-current financial liabilities 343 181$ 493 $ 1,107Other secured debt represent obligations of the company’s real estate finance funds which are secured by loansand notes receivable having a carrying value of $0.7 billion (2010 - $1.0 billion). The liabilities are recourse onlyto the assets of the finance subsidiary. The other secured debt is at variable rates with basis in the one-month orthree-month LIBOR averages. As of December 31, 2011, the average weighted rate was 1.3% (2010 – 1.8%).A deferred gain of $172 million was recorded in connection with the reorganization of the U.S. Office Fund inthe second quarter of 2009 and relates to the initial value of the U.S. Office Fund Option assumed by theBusiness at the date of the reorganization as such value was determined pursuant to a valuation methodologyusing unobservable inputs. The gain was recognized in earnings within fair value gains (losses) upon thederecognition of the U.S. Office Fund Option (See Note 20).NOTE 15: INCOME TAXESThe sources of deferred income tax balances are as follows:(US$ Millions) Dec. 31, 2011 Dec. 31, 2010Non-capital losses (Canada) $ 73 $ 35Capital losses (Canada) 120 132Net operating losses (U.S.) 26 37Difference in basis (947) (759)Total net deferred tax (liability) $ (728) $ (555)The deferred tax balance movements are as follows:(US$ Millions) Recognized in ReclassifiedDec. 31, 2010 Income Equity Other OCI Dec. 31, 2011Deferred tax assets related to non-capital $ 204 $ (8) $ (7) $ - $ 30 $ - $ 219losses and capital lossesDeferred tax liabilities related to(759) (267) 9 16 70 (16) (947)difference in tax and book basis, netNet deferred tax liabilities $ (555) $ (275) $ 2 $ 16 $ 100 $ (16) $ (728)(US$ Millions) Recognized in ReclassifiedDec. 31, 2009 Income Equity Other OCI Dec. 31, 2010Deferred tax assets related to non-capital $ 130 $ 85 $ (19) $ - $ 8 $ - $ 204losses and capital lossesDeferred tax liabilities related to(824) (47) 74 (1) (6) 45 (759)difference in tax and book basis, netNet deferred tax liabilities $ (694) $ 38 $ 55 $ (1) $ 2 $ 45 $ (555)The Business has net operating losses with no expiry of $169 million at December 31, 2011 (2010 - $163million), the benefit of which has not been recognized in these financial statements.F-27