The tax effect of temporary diff e rences and carry forw a rds that give rise to deferred tax assets and liabilities are as follows: December 31, 2 0 0 0 1 9 9 9 (in thousands) D e f e rred tax assets: F o reign tax loss carry forw a rd s $ 1 4 , 3 2 5 . $ 1 1 , 5 26. Stock compensation expense 1 , 1 3 0. 1 , 1 30. U n realized exchange rate diff e re n c e s 4 , 6 1 4. 2 , 5 59. I n t e rest expense 7 , 1 6 4. 4 , 3 27. A c c rued expenses 1 , 5 4 8. 2 , 9 36. Billings in excess of earn i n g s 1 , 1 0 8. 1 , 0 36. O t h e r 2 , 1 4 5. 16. Total deferred tax assets 3 2 , 0 3 4. 2 3 , 5 30. Valuation allowance ( 3 0 , 6 8 9 ) ( 1 9 , 7 4 1 ) Total deferred tax assets 1 , 3 4 5. 3 , 7 89. D e f e rred tax liabilities: P ro p e rty and equipment 2 6 . 6 60. Non-goodwill intangible assets —. 2 , 3 33. Capitalized re s e a rch and development costs 5 1 5. 1 09. E a rnings in excess of billings 3 8 0. 2 27. Total deferred tax liabilities 9 2 1. 3 , 3 29. Net deferred tax assets $ 4 2 4. $ 4 60. The valuation allowance for deferred tax assets as of January 1, 2000, 1999 and 1998 was $19.7 million, $14.3 million and $4.8 million, re s p e c t i v e l y. The net change in the total valuation allowance for the years ended December 31, 2000, 1999, and 1998 were increases of $10.9 million, $5.4 million and $9.5 million, re s p e c t i v e l y.  The valuation allowance relates primarily to deferred tax assets established under SFAS No. 109 for loss carry f o rw a rds at December 31, 2000, 1999 and 1998 of $46.9 million, $45.0 million and $32.9 million, re s p e c t i v e l y. The tax operating loss carry f o rw a rds will expire t h rough 2004 for EFT-Uslage d o.o., The tax operating loss carry f o rw a rds will expire through 2005 for Euronet Adminisztracios Szolgaltato Kft., Euronet Banktechnikai Szolgaltato Kft.,Bankomat 24/Euronet Sp. z o.o., Euronet SRL, and 2007 for Euronet Services spol. sro. The tax operating losses for Euronet Services Inc. and Euronet USA can be carried back two years and forw a rd twenty years. The tax operating losses for Euronet Services Inc. and Euronet USA can be carried back two years and forw a rd twenty years. The tax operating losses for E u ronet GmbH and Euronet Services Ltd. can be carried forw a rd indefinitely.  In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the d e f e rred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary diff e rences become deductible. Management considers the scheduled reversal of deferre d tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods which the deferred tax assets are deductible, management believes it is more likely than not the Company will realize the benefits of these deductible diff e rences, net of the existing valuation allowances at December 31, 2000. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of f u t u re taxable income during the carry f o rw a rd period are reduced.  At December 31, 2000 the Company has net operating loss carry forw a rds of approximately $46.9 million which will expire as follows:  Year ending December 31, (in thousands) 2 0 0 1 $ 1 , 4 7 9 2 0 0 2 4 , 1 0 8 2 0 0 3 7 , 8 6 0 2 0 0 4 8 , 7 7 1 2 0 0 5 7 , 5 4 1 2 0 0 6 1 , 0 1 4 2007 and there a f t e r 1 6 , 1 6 2 To t a l $ 4 6 , 9 3 5 3 8