the principal components of eog's rollforward of valuation allowances for deferred income tax assets for the years indicated below were as follows ( in thousands ) : .

Table:
 | 2018 | 2017 | 2016
beginning balance | $ 466421 | $ 383221 | $ 506127
increase ( 1 ) | 23062 | 67333 | 37221
decrease ( 2 ) | -26219 ( 26219 ) | -13687 ( 13687 ) | -12667 ( 12667 )
other ( 3 ) | -296122 ( 296122 ) | 29554 | -147460 ( 147460 )
ending balance | $ 167142 | $ 466421 | $ 383221
( 1 ) increase in valuation allowance related to the generation of tax nols and other deferred tax assets .
( 2 ) decrease in valuation allowance associated with adjustments to certain deferred tax assets and their related allowance .
( 3 ) represents dispositions , revisions and/or foreign exchange rate variances and the effect of statutory income tax rate changes .
the united kingdom operations were sold in the fourth quarter of 2018 .
the argentina operations were sold in the third quarter of 2016 .
as of december 31 , 2018 , eog had state income tax nols being carried forward of approximately $ 1.8 billion , which , if unused , expire between 2019 and 2037 .
eog also has canadian nols of $ 183 million which can be carried forward 20 years .
as described above , these nols as well as other less significant future tax benefits , have been evaluated for the likelihood of utilization , and valuation allowances have been established for the portion of these deferred income tax assets that do not meet the 201cmore likely than not 201d threshold .
the balance of unrecognized tax benefits at december 31 , 2018 , was $ 29 million , resulting from the tax treatment of its research and experimental expenditures related to certain innovations in its horizontal drilling and completion projects , of which $ 12 million may potentially have an earnings impact .
eog records interest and penalties related to unrecognized tax benefits to its income tax provision .
currently $ 2 million of interest has been recognized in the consolidated statements of income ( loss ) and comprehensive income ( loss ) .
eog does not anticipate that the amount of the unrecognized tax benefits will change materially during the next twelve months .
eog and its subsidiaries file income tax returns and are subject to tax audits in the u.s .
and various state , local and foreign jurisdictions .
eog's earliest open tax years in its principal jurisdictions are as follows : u.s .
federal ( 2016 ) , canada ( 2014 ) , trinidad ( 2013 ) and china ( 2008 ) .
eog's foreign subsidiaries' undistributed earnings are not considered to be permanently reinvested outside of the u.s .
accordingly , eog may be required to accrue certain u.s .
federal , state , and foreign deferred income taxes on these undistributed earnings as well as on any other outside basis differences related to its investments in these subsidiaries .
as of december 31 , 2018 , eog has cumulatively recorded $ 23 million of deferred foreign income taxes for withholdings on its undistributed foreign earnings .
additionally , for tax years beginning in 2018 and later , eog's foreign earnings may be subject to the u.s .
federal "global intangible low-taxed income" ( gilti ) inclusion .
eog records any gilti tax as a period expense .
7 .
employee benefit plans stock-based compensation during 2018 , eog maintained various stock-based compensation plans as discussed below .
eog recognizes compensation expense on grants of stock options , sars , restricted stock and restricted stock units , performance units and grants made under the eog resources , inc .
employee stock purchase plan ( espp ) .
stock-based compensation expense is calculated based upon the grant date estimated fair value of the awards , net of forfeitures , based upon eog's historical employee turnover rate .
compensation expense is amortized over the shorter of the vesting period or the period from date of grant until the date the employee becomes eligible to retire without company approval. .

Question: considering the year 2018 , what is the percentage of unrecognized tax benefits that may have an earnings impact?
Answer: 41.38%
Calculation: divide(12, 29)