INCOME TAXES

On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Reform”), was enacted, which, among numerous provisions reduced the federal statutory corporate tax rate from 35% to 21%. Based on the provisions of the Tax Reform, the Company remeasured its deferred tax assets and liabilities and adjusted its estimated annual federal income tax rate to incorporate the lower corporate tax rate into the tax provision for the quarter ended December 31, 2017.

During the three and nine months ended March 31, 2018, the Company applied the newly enacted corporate federal income tax rate, resulting in a reduction of approximately $0.3 million and $1.6 million, respectively, of the income tax provision, which is reflected in the Company’s consolidated statements of income. The final impact of the Tax Reform may differ due to changes in interpretations, assumptions made by the Company and the issuance of additional guidance.