Net operating loss carryforwards subject to valuation allowance (as a percent)

  
[Table of Contents](#i1d117440a79147f69db4408bc4f22334_10)Part IV

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IRON MOUNTAIN INCORPORATEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)DECEMBER 31, 2021(In thousands, except share and per share data)10. INCOME TAXES (CONTINUED)The significant components of our deferred tax assets and deferred tax liabilities as of December 31, 2021 and 2020 are presented below:

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|   | DECEMBER 31, |
|   | 2021 |  | 2020 |
| Deferred Tax Assets: |   |  |   |
| Accrued liabilities and other adjustments | $ | 54,859  |  |  | $ | 52,527  |  |
| Net operating loss carryforwards | 90,996  |  |  | 96,710  |  |
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| Valuation allowance | (51,744) |  |  | (46,938) |  |
|  | 94,111  |  |  | 102,299  |  |
| Deferred Tax Liabilities: |   |  |   |
| Other assets, principally due to differences in amortization | (178,657) |  |  | (186,682) |  |
| Plant and equipment, principally due to differences in depreciation | (76,204) |  |  | (59,711) |  |
| Other | (46,281) |  |  | (29,265) |  |
|  | (301,142) |  |  | (275,658) |  |
| Net deferred tax liability | $ | (207,031) |  |  | $ | (173,359) |  |

The deferred tax assets and deferred tax liabilities as of December 31, 2021 and 2020 are presented below:

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|   | DECEMBER 31, |
|   | 2021 |  | 2020 |
| Noncurrent deferred tax assets (Included in Other, a component of Other assets, net) | $ | 16,903  |  |  | $ | 25,018  |  |
| Deferred income taxes | (223,934) |  |  | (198,377) |  |

At December 31, 2021, we have federal and state net operating loss carryforwards of which we are expecting an insignificant tax benefit to be realized. We have assets for foreign net operating losses of $85,466, with various expiration dates (and in some cases no expiration date), subject to a valuation allowance of approximately 47%.Rollforward of the valuation allowance is as follows:

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| YEAR ENDED DECEMBER 31, |  | BALANCE AT BEGINNING OF THE YEAR |  | CHARGED(CREDITED) TOEXPENSE |  | OTHERINCREASES/(DECREASES)(1) |  | BALANCEAT END OFTHE YEAR |
| 2021 |  | $ | 46,938  |  |  | $ | 8,406  |  |  | $ | (3,600) |  |  | $ | 51,744  |  |
| 2020 |  | 60,003  |  |  | (8,337) |  |  | (4,728) |  |  | 46,938  |  |
| 2019 |  | 55,666  |  |  | 6,211  |  |  | (1,874) |  |  | 60,003  |  |

(1)Other increases and decreases in valuation allowances are primarily related to changes in foreign currency exchange rates.

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| 113 | IRON MOUNTAIN 2021 FORM 10-K |  |


