Analyzing and Interpreting Tax Footnote (Financial Statement Effects Template) Under Armour, Inc. reports total tax expense of $154,112 thousands on its income statement for year ended December 31, 2015, and paid cash of $99,708 thousand for taxes. The tax footnote in the company's 10-K filing, reports the following deferred tax assets and liabilities information. December 31 ($ thousands) 2015 2014 Deferred tax assets Stock-based compensation $40,406 $35,161 Allowance for doubtful accounts and other reserves 33,821 24.774 Accrued expenses 19,999 11,398 Foreign net operating loss carryforward 19,600 16,302 Deferred rent 13,991 11,005 Inventory obsolescence reserves 11,956 8,198 Tax basis inventory adjustment 10,019 5,845 U.S. net operating loss carryforward 9,217 4.733 Foreign tax credits 6,151 5,131 State tax credits, net of foreign impact 4,966 4,245 Deferred compensation 2,080 1,858 Other 6,346 4,592 Total deferred tax assets 178,552 133,242 Less: valuation allowance (24,043) (15,550) Total net deferred tax assets 154,509 117,692 Deferred tax liability Property, plant and equipment (31,069) (17,638) Intangible asset (22,820) (7,010) Prepaid expenses (8,766) (6,424) Other (627) (612) Total deferred tax liabilities (63,282) (31,684) Total deferred tax assets, net $91,227 $86,008 (c) The company recorded a valuation allowance during the year. This allowance relates to foreign net operating tax losses. Which of the following statements appears to be false regarding the foreign net operating tax losses and the valuation allowance. The company's tax returns have reported losses in foreign jurisdictions. As of the end of 2015, there were insufficient profits and the tax losses could not be used in the current period. As of December 31, 2015, the company believed some of the deferred tax assets associated with foreign tax loss carryforwards would expire unused. Therefore, a valuation allowance was recorded against the company's net deferred tax assets. An increase to a valuation allowance will decrease current year income. An increase to a valuation allowance will increase current year income. What proportion of the foreign net operating losses does the company believe will likely expire unused? Round your answer to the nearest percent. Analyzing and Interpreting Tax Footnote (Financial Statement Effects Template) Under Armour, Inc. reports total tax expense of $154,112 thousands on its income statement for year ended December 31, 2015, and paid cash of $99,708 thousand for taxes. The tax footnote in the company's 10-K filing, reports the following deferred tax assets and liabilities information. December 31 ($ thousands) 2015 2014 Deferred tax assets Stock-based compensation $40,406 $35,161 Allowance for doubtful accounts and other reserves 33,821 24.774 Accrued expenses 19,999 11,398 Foreign net operating loss carryforward 19,600 16,302 Deferred rent 13,991 11,005 Inventory obsolescence reserves 11,956 8,198 Tax basis inventory adjustment 10,019 5,845 U.S. net operating loss carryforward 9,217 4.733 Foreign tax credits 6,151 5,131 State tax credits, net of foreign impact 4,966 4,245 Deferred compensation 2,080 1,858 Other 6,346 4,592 Total deferred tax assets 178,552 133,242 Less: valuation allowance (24,043) (15,550) Total net deferred tax assets 154,509 117,692 Deferred tax liability Property, plant and equipment (31,069) (17,638) Intangible asset (22,820) (7,010) Prepaid expenses (8,766) (6,424) Other (627) (612) Total deferred tax liabilities (63,282) (31,684) Total deferred tax assets, net $91,227 $86,008 (c) The company recorded a valuation allowance during the year. This allowance relates to foreign net operating tax losses. Which of the following statements appears to be false regarding the foreign net operating tax losses and the valuation allowance. The company's tax returns have reported losses in foreign jurisdictions. As of the end of 2015, there were insufficient profits and the tax losses could not be used in the current period. As of December 31, 2015, the company believed some of the deferred tax assets associated with foreign tax loss carryforwards would expire unused. Therefore, a valuation allowance was recorded against the company's net deferred tax assets. An increase to a valuation allowance will decrease current year income. An increase to a valuation allowance will increase current year income. What proportion of the foreign net operating losses does the company believe will likely expire unused? Round your answer to the nearest percent