Foreign affiliate prepayment

[T](#ic6799676e16f4a73b9fbe61f891b870d_7)[able of Contents](#ic6799676e16f4a73b9fbe61f891b870d_7)Deferred tax assets (liabilities) are comprised of the following at December 31 (in thousands):

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |  | 2020 |
| Deferred tax assets: |  |  |  |
| Lease liabilities | $ | 60,846  |  |  | $ | 82,982  |  |
| Compensation | 71,770  |  |  | 60,160  |  |
| Accrued expenses | 92,936  |  |  | 39,987  |  |
|  |  |  |  |
|  |  |  |  |
| Foreign affiliate prepayment | 88,399  |  |  | —  |  |
| Other | 22,925  |  |  | 26,848  |  |
| Deferred tax liabilities: |  |  |  |
| Right-of-use assets | (56,044) |  |  | (77,513) |  |
| Intangible assets | (79,198) |  |  | (81,210) |  |
| Accrued revenue | (47,255) |  |  | (18,978) |  |
| Prepaid assets | (14,021) |  |  | (5,732) |  |
| Long-lived assets | (10,387) |  |  | (12,722) |  |
| Foreign withholding tax | (11,917) |  |  | (10,222) |  |
| Other | (9,267) |  |  | (7,142) |  |
| Net deferred tax assets (liabilities) | $ | 108,787  |  |  | $ | (3,542) |  |

  
We had foreign net operating loss carryforwards with a tax effect of $8.6 million as of December 31, 2021, and $11.0 million as of December 31, 2020. The net operating loss carryforwards will expire at various dates from 2022 to 2028, with certain jurisdictions having indefinite carryforward terms. We continually monitor and review the foreign net operating loss carryforwards to determine the ability to realize the deferred tax assets associated with the foreign net operating loss carryforwards. As of December 31, 2021 and 2020, we have recorded a valuation allowance of $2.5 million and $7.6 million, respectively, against the deferred tax asset related to the foreign operating loss carryforwards.  
NOTE 6: CAPITAL STOCK AND STOCK AWARD PLANSPREFERRED STOCK. Our Certificate of Incorporation authorizes the issuance of 20,000,000 shares of preferred stock, par value $0.10 per share. There are no shares of preferred stock outstanding. The preferred stock may be issued by resolution of our Board of Directors at any time without any action of the stockholders. The Board of Directors may issue the preferred stock in one or more series and fix the designation and relative powers. These include voting powers, preferences, rights, qualifications, limitations, and restrictions of each series. The issuance of any such series may have an adverse effect on the rights of holders of common stock and may impede the completion of a merger, tender offer, or other takeover attempt.COMMON STOCK. Our Certificate of Incorporation authorizes 480,000,000 shares of common stock, par value $0.10 per share. Subject to the rights of preferred stock, which may from time to time be outstanding, holders of common stock are entitled to receive dividends out of funds legally available, when and if declared by the Board of Directors, and to receive their share of the net assets of the company legally available for distribution upon liquidation or dissolution.For each share of common stock held, stockholders are entitled to one vote on each matter to be voted on by the stockholders, including the election of directors. Holders of common stock are not entitled to cumulative voting. The stockholders do not have preemptive rights. All outstanding shares of common stock are fully paid and nonassessable.54
