. the determination of the realization of the state and foreign net operating loss carryforwards is dependent on our subsidiaries 2019 taxable income or loss , appor- tionment percentages , and state and foreign laws that can change from year to year and impact the amount of such carryforwards . we recognize a valuation allowance if we determine it is more likely than not that some portion , or all , of a deferred tax asset will not be realized