Income Taxes

5 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Note 6. Income Taxes

For U.K. tax purposes, the entity is treated as a private limited company. The statutory corporate income tax rate in the U.K. is 20%. The net loss reported by the Company on any U.K. income tax return for a period ending prior to the merger is not expected to be utilized. Therefore, ARRIS management has recorded a full valuation allowance against the deferred tax assets otherwise created by the U.K. net loss.

For U.S. income tax purposes, the Company is a single member limited liability company wholly-owned by ARRIS. The Company is treated as a disregarded entity. As such, the Company’s net losses will be included in ARRIS’s U.S. consolidated corporate income tax return. On a separate return basis, any deferred tax assets recorded by the Company require a full valuation allowance because management does not believe that tax losses can be utilized on a more-likely-than-not basis.