December 2017,

“2017

2017

Company, most notably a reduction of the U.S. corporate income tax rate from to for tax years beginning after The Tax Act also provides the acceleration of depreciation for certain assets placed into service after

2017

an immediate deduction of of the costs incurred to acquire qualified property placed in service during the period from to The amount of accelerated depreciation will begin to phase down by per year beginning and will be completely phased out as of

Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. The tax rate change, along with changes in tax basis resulting from the Tax Act, resulted in a million decrease in income tax expense for the year ended and a corresponding million decrease in net deferred tax liabilities as of

 

Company recognized the income tax effects of the Tax Act in its financial statements in accordance with Staff Accounting Bulletin which provides SEC staff guidance for the application of ASC – , in the reporting period in which the Tax Act was signed into law. As such, the Company’s financial results reflect the income tax effects of the Tax Act for which the accounting under ASC is complete as well as provisional amounts for those specific income tax effects of the Tax Act for which the accounting under ASC is incomplete but a reasonable estimate could be determined. The Company has recognized the provisional tax impacts related to acceleration of depreciation and the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated financial statements for the year ended The ultimate impact differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that be issued and actions the Company take as a result of the Tax Act. The accounting is expected to be complete when the Company’s U.S. corporate income tax return is filed in

 

income tax provision (benefit) consisted of the following (in thousands):

income tax provision (benefit) is different than the amount of income tax determined by applying the U.S. Federal statutory rate of to income before income taxes as a result of the following (in thousands):

eferred income tax liability consisted of the following (in thousands):

not

l or state deferred tax assets.

$2.7

-effected U.S. Federal tax net operating losses available for carryforward at which were generated by NewWave prior to the acquisition and have expiration dates through The use of pre-acquisition operating losses is subject to limitations imposed by the Internal Revenue Code of as amended. The Company does anticipate that these limitations will affect utilization of the carryforwards prior to their expiration. The Company had million of tax-effected state tax net operating loss carryforwards at with varying expiration dates through

 The statute of limitations has expired on all GHC consolidated U.S. Federal corporate income tax returns filed through with the exception of an issue that does involve the Company. The Internal Revenue Service (“IRS”) completed its examination of tax year and GHC received a refund check; however, the statute of limitations for tax year was extended through

’s interpretation of all relevant tax laws and regulations will prevail and that all tax benefits recorded in the consolidated financial statements will ultimately be recognized in full. The Company has taken reasonable efforts to address uncertain tax positions and has determined that there are material transactions and material tax positions taken by the Company that would fail to meet the more-likely-than- threshold for recognizing transactions or tax positions in the consolidated financial statements. Accordingly, the Company has recorded a reserve for uncertain tax positions in the consolidated financial statements, and the Company does expect any significant tax increase or decrease to occur within the next months with respect to any transactions or tax positions taken and reflected in the consolidated financial statements. In making these determinations, the Company presumes that taxing authorities pursuing examinations of the Company’s compliance with tax law filing requirements will have full knowledge of all relevant information, and, if necessary, the Company will pursue resolution of disputed tax positions by appeals or litigation. The Company classifies interest and penalties, if applicable, associated with any uncertain tax positions as a component of Interest expense in its Consolidated Statements of Operations and Comprehensive Income.

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