Originally Posted by ginntonic

Companies can use their losses against taxable income. Also, the company can roll these losses forward as needed, and the potential offset is counted as an asset.

A valuation allowance occurs when the company doesn't think (50% or more probability) they'll see that benefit.

Put another way, F9 isn't seeing sufficient future income to warrant a $37M reduction in taxable income.

Put negative $30+M against our 4Q and you have a loss.