(212) 231-1000

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Cautionary Note Regarding Forward-Looking Statements

In addition to historical information, this quarterly report on Form 10-Q (Quarterly Report) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act. Forward-looking statements may appear throughout this Quarterly Report, including without limitation, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section. We use words such as “believe”, “intend”, “expect”, “anticipate”, “plan”, “may”, “will”, “should”, “estimate”, “potential”, “project”, and similar expressions to identify forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, statements regarding potential transactions related to the pursuit of strategic alternatives and the anticipated uses of any proceeds therefrom, statements regarding the anticipated specific and overall impacts of COVID-19 and any related recovery, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results to differ materially from those anticipated in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risks identified in our Annual Report on the Form 10-K for the year ended December 31, 2016,2019, this Quarterly Report on Form 10-Q, and in other reports we file from time to time with the Securities and Exchange Commission (SEC).

Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. Many of these factors are beyond our ability to control or predict. Our forward-looking statements speak only as of the date of this Quarterly Report. Other than as required by law, we undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of the financial condition and results of operations of Macquarie Infrastructure Corporation (MIC) should be read in conjunction with the consolidated condensed financial statements and the notes to those statements included elsewhere herein.

MIC is a Delaware corporation formed on May 21, 2015. MIC’s predecessor, Macquarie Infrastructure Company LLC, was formed on April 13, 2004. Except as otherwise specified, all references in this Form 10-Q to “MIC”, “we”, “us”, and “our” refer to Macquarie Infrastructure Corporation and its subsidiaries.

MIC is externally managed by Macquarie Infrastructure Management (USA) Inc. (our Manager), pursuant to the terms of a Management Services Agreement, that is subject to the oversight and supervision of our BoardBoard. Six of Directors. The majority of the eight members of our Board, and all members of Directorseach of our Audit, Compensation, and Nominating and Governance Committees, are independent and have no affiliation with Macquarie. Our Manager is a member of the Macquarie Group of companies comprising the Macquarie Group Limited and its subsidiaries and affiliates worldwide. Macquarie Group Limited is headquartered in Australia and is listed on the Australian StockSecurities Exchange.

We currently own and operate a diversified portfolio of infrastructure and infrastructure-like businesses that provide services to other businesses,corporations, government agencies, and individualsindividual customers primarily in the U.S. TheUnited States (U.S.). Our ongoing businesses we own and operate are organized into fourthree segments:

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International-Matex Tank Terminals (IMTT):  a terminalling business providing bulk liquid storage, handling and other services to third parties at seventeen terminals in the U.S. and two in Canada;

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Atlantic Aviation:  a provider of fuel, terminal, aircraft hangaring and other services primarily to owners and operators of general aviation (GA) jet aircraft at 70 airports throughout the U.S.

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Contracted Power (CP) •Atlantic Aviation:  a provider of jet fuel, terminal, aircraft hangaring, and other services primarily to operators of general aviation (GA) jet aircraft at 70 airports throughout the U.S.; •MIC Hawaii:  comprising a gas-fired facility and controlling interests in wind and solar facilities in the U.S.; and

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MIC Hawaii:  comprising an energy company that processes and distributes gas and provides related services (Hawaii Gas), and several smaller businesses collectively engaged in efforts to reduce the cost and improve the reliability and sustainability of energy, all based in Hawaii.

Our businesses generally operatecollectively engaged in sectors with barriersefforts to entry including high initial developmentreduce the cost and construction costs, long-term contracts orimprove the requirement to obtain government approvalsreliability and sustainability of energy in Hawaii; and

During the quarter ended September 30, 2020, IMTT was classified as a discontinued operation and eliminated as a reportable segment. Any contribution from IMTT to our consolidated results for the quarter and year to date periods ending September 30, 2020 are reflected in Discontinued Operations. All prior periods have been adjusted to reflect the treatment of immediate cost-effective alternativesIMTT as a discontinued operation. On November 8, 2020, we entered into an agreement pursuant to which we will sell our IMTT business.

Effective October 1, 2018, the services provided. Overall they tend to generate sustainable, stableBayonne Energy Center (BEC) and growing cash flows oversubstantially all of our portfolio of solar and wind power generation businesses were classified as discontinued operations and our Contracted Power segment was eliminated. All periods reflect this change. In September 2019, we completed the long term.

last of the sales of our solar and wind power generation businesses included in discontinued operations including our majority interest in a renewable power development business. A relationship with a third-party developer of renewable power facilities was reported as a component of Corporate and Other through the expiration of the relationship in July 2019.

Overview

Use of Non-GAAP measures

In addition to our results under U.S. GAAP, we use certainthe non-GAAP measures EBITDA excluding non-cash items and Free Cash Flow to assess the performance and prospects of our businesses. In particular, we use EBITDA excluding non-cash items, Free Cash Flow and certain proportionately combined financial metrics. Proportionately combined financial metrics reflect our proportionate interest in our wind and solar facilities.

We measure EBITDA excluding non-cash items as it reflects our businesses’ ability to effectively manage the volumeamount of products sold or services provided, the operating margin earned on those transactions, and the management of operating expenses independent of the capitalization and tax attributes of those businesses.

Dividends

Since January 1, 2016,2019, MIC has paid or declared the following dividends:

Our Board regularly reviews our dividend to our shareholders. The MIC Board has authorized a quarterly cash dividend of $1.42 per share for the quarter ended September 30, 2017, or a 10.1% increase over the dividend for the quarter ended September 30, 2016.policy. In determining whether to adjustpay dividends in the amount of our quarterly dividend,future, our Board will take into account such matters as the ability of our businesses to generate Free Cash Flow, the state of the capital markets and general business and economic conditions, the short and long term impacts of, and disruptions in our businesses, and/or in the business or economic environment due to COVID-19, or other non-economic events, the impact of any acquisitions, or dispositions related to our pursuit of strategic alternatives, the Company’s financial condition, results of operations, indebtedness levels, capital requirements, capital opportunities and any contractual, legal and regulatory restrictions on the payment of dividends by the Company to its stockholders or by its subsidiaries to the Company, and any other factors that it deems relevant, subject to maintaining a prudent level of reserves and without creating undue volatility in the amount of such dividends where possible.reserves. Moreover, the Company’s senior secured credit facility and the debt commitments at our operating businesses contain restrictions that may limit the Company’s ability to pay dividends. Although historically

On October 31, 2019, we announced our intention to pursue strategic alternatives for our Company and have since been engaged in processes that could result in the modificationsale of our dividend policy,Company or the reduction, modificationone or eliminationmore of our dividendremaining operating businesses. We continue to believe that these processes will maximize value for stockholders, although recent volatility in the future.

capital markets, ongoing disruption in business and economic conditions and the limitations on travel and other restrictions on interactions imposed by responses to COVID-19 have slowed our progress. We anticipate that the proposed use of proceeds from the sale of IMTT will provide us additional financial flexibility to move forward with processes for Atlantic Aviation and MIC Hawaii in a manner and at a time consistent with maximizing value for our shareholders. We have not set a timetable for completing any additional transaction(s) and there can be no assurance that any transaction(s) will occur on favorable terms or at all.

We continue to closely monitor the effects of COVID-19 and are actively managing our response placing a priority on the health and safety of our employees, contractors, their families, customers, and the broader communities in which we announced that James Hooke, our Chief Executive Officer, intends to step down in early 2018. On September 8, 2017,operate. Both Atlantic Aviation and the MIC boardHawaii businesses are classified as essential services businesses and remain fully operational. The businesses have implemented pandemic response plans and are following guidance from the Centers for Disease Control and Prevention (CDC) as well as federal, state, and local governments with respect to conducting operations safely.

In addition to standard operating procedures designed to maintain safe operations, the businesses have implemented additional measures including: (i) a work from home policy for all employees that are able to do so; (ii) enhancing cleaning and disinfecting of directors was expanded from sixfacilities; (iii) limiting interactions between employees and customers through social distancing; (iv) mandating the use of personal protective equipment by employees; (v) modifying shift schedules to seven membersreduce exposure between shifts; and Mr. Hooke was elected(vi) educating customers on alternative payment and customer care options as a means of limiting interactions with employees at MIC Hawaii. Both Atlantic Aviation and MIC Hawaii are engaged in ongoing communications with employees, customers, vendors, lenders, and other stakeholders to fillkeep them apprised of their response to the vacancy.

Christopher Frost has been appointed Presidentpandemic. Consistent with recommendations of federal, state, and Chief Operating Officerlocal authorities, our businesses have developed protocols and plans that we believe will allow staff and customers to access their facilities safely and effectively. We are implementing these as local conditions permit.

COVID-19 continues to negatively affect the performance of MIC, effective October 26, 2017. Mr. Frost has been employed by Macquarie Groupour ongoing operations. Limitations on travel have reduced demand for the past 20 years. We anticipate Mr. Frostproducts and services provided by our Atlantic Aviation and MIC Hawaii businesses. While GA flight activity recovered significantly in the third quarter from the low levels recorded in late March and April, the near absence of tourism in Hawaii throughout the period continued to limit gas sales. In general, the travel and tourism industries, and the businesses reliant on them, have been negatively affected during the pandemic.

The decline in GA flight activity reduced Atlantic Aviation’s cash flow generation in the third quarter versus the prior comparable period. Cash flow generation increased sequentially as flight activity was generally stable throughout the third quarter at improved levels compared with the average in the second quarter. Assuming flight activity remains stable at current levels, we believe that the combination of Atlantic Aviation's existing liquidity and cash generated from operations, will be appointedsufficient to fund operations and growth capital projects to which the positionbusiness has committed.

On August 8, 2017, IMTT completedOctober 15, 2020, the acquisition of Epic Midstream LLC (Epic), a portfolio of seven bulk liquid terminals comprising approximately 3.1 million barrels of storage capacity and related handling capability. The acquisition increases IMTT’s system-wide capacity by approximately 7% and extends its operations into both the Port of Savannahquarantine requirements were modified such that visitors having tested negative for COVID-19 within 72 hours prior to arriving in Georgia and several inland locations.

On September 27, 2017, Atlantic Aviation completed the acquisition of Orion Jet Center (Orion). Orion is a fixed base operator located at Opa Locka-Miami Executive Airport approximately 11 miles north of downtown Miami, Florida. Orion features over 200,000 square feet of newly constructed hangar space and also includes 36,000 square feet of office and maintenance space.

Shared Services Initiative

We have implemented a shared services initiative to consolidate common back-office functions across our businesses, including Accounting, Human Resources, Tax, Information Technology, Procurement and Risk Management support. We have incurred, and expect to continue to incur, implementation costs in 2017, principally in relation to severance and consulting services, and we expect to realize full year savings from this initiative in 2018. The expected savings willHawaii would not be spread evenly or proportionally across our businesses.

required to quarantine. Not all hotels opened on October 15th and the expected recovery in gas consumption is likely to materialize gradually. In addition to reduced consumption associated with

To ensure Hawaii Gas is prudently managing its liquidity and to mitigate the Quarter:

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Consolidated revenues decreased for the quarter and nine months ended September 30, 2020 compared with the quarter and nine months ended September 30, 20162019 primarily as a result of an increase(i) a decrease in the amount of jet fuel and gas sold by Atlantic Aviation and MIC Hawaii, respectively, due to the impact of COVID-19; and (ii) a lower wholesale cost of jet fuel and an increase in the volumegas.

Cost of Services and Cost of Product Sales

Selling, General and Administrative Expenses

Selling, general and administrative expenses increaseddecreased for the quarter ended September 30, 2020 and increased for the nine months ended September 30, 2017 compared with2020 versus the prior comparable periods. The decrease in the quarter was primarily due to a reduction in salaries and benefits at Atlantic Aviation and a reduction in professional service fees. These were partially offset by higher expenses incurred in connection with our pursuit of strategic alternatives and costs incurred with our COVID-19 response.

The increase in selling, general and administrative expenses for the nine months ended September 30, 2016 primarily due to (i) $3.0 million and $7.9 million, respectively, of costs2020 also reflects expenses incurred in connection with our pursuit of strategic alternatives, the evaluationmajority of various investment and acquisition opportunities; (ii) $1.4 million and $6.8 million, respectively, of costswhich were incurred in connection with the implementationfirst quarter of our shared services initiative;2020, and (iii) incrementala $7 million provision of estimated costs associated with acquired businesses.

(in excess of insurance recoveries) for remediating certain environmental matters at Atlantic Aviation.

Fees to Manager

The decrease in servicedepreciation and contributions from acquisitions.

Amortization of Intangibles

Amortization of intangibles increasedamortization expense for the quarter and nine months ended September 30, 20172020 compared with the quarter and nine months ended September 30, 20162019 primarily due to contributions from acquisitions.

reflects the full amortization of certain airport contract rights at Atlantic Aviation, partially offset by assets placed in service.

Interest Expense, net, and Gains (Losses)Losses on Derivative Instruments

Interest expense, net, includes non-cash losses on derivative instruments of $162,000an insignificant amount for the quarter ended September 30, 2020 and $6.9$4 million for the nine months ended September 30, 2020, compared with $1 million and $8 million for the quarter and nine months ended September 30, 2017, respectively, compared with gains on derivative instruments of $3.7 million and losses on derivative instruments of $43.0 million for the quarter and nine months ended September 30, 2016,2019, respectively. Gains and losses(losses) on derivatives recorded in interest expense are attributable to the change in fair value of interest rate hedging instruments. For the nine months ended September 30, 2016, interest expense also included the non-cash write-off of deferred financing costs at Hawaii Gas related to the February 2016 refinancing of its $80.0 million term loan debt and its $60.0 million revolving credit facility. Excluding the derivative adjustments, and deferred financing cost write-offs, interest expense decreased for the quarter and nine months ended September 30, 2017 compared with the quarter and nine months ended September 30, 2016 primarily due to a reduction in the weighted average interest rate, partially offset by a higher average debt balance. Cashcash interest expense was $27.1$16 million and $79.4$55 million for the quarter and nine months ended September 30, 2017,2020, respectively, compared with $27.4$18 million and $82.0$57 million for the quarter and nine months ended September 30, 2016,2019, respectively.

The decrease in cash interest expense primarily reflects a decrease in the weighted average interest rate of debt facilities, partially offset by lower interest income earned during the quarter and nine months ended September 30, 2020. See discussions of interest expense for each of our operating businesses below.

Other (expense) income, net, decreasedreflects the write-offs of fixed assets no longer viable recorded during for the quarter and nine months ended September 30, 2017 compared2020. For the nine months ended September 30, 2019, other (expense) income, net, includes fee income from a third-party developer of renewable power facilities, partially offset by losses on disposal of assets. The relationship with the developer concluded during July 2019.

Revenue increased for the quarter primarily reflecting higher utilization, partially offset by lower storage rates on new and renewing contracts versus the prior comparable period. Revenue decreased for the nine month period primarily due to the absence of a contract termination payment received during the quarter ended March 31, 2019 and the impact of contracts renewed at lower storage rates, partially offset by the increase in fees earned on tank cleaning obligations and the increase in utilization. Utilization averaged 95.8% and 91.9% for the quarter and nine months ended September 30, 20162020, respectively. On September 30, 2020, firm commitments had a revenue weighted average remaining contract life of 1.7 years.

As part of classifying IMTT as 2016 included insurance recoveries associated with damage docks to IMTT’sheld for sale, the Company recognized an impairment of the IMTT disposal group of $750 million, which includes a goodwill impairment of $725 million, during the quarter ended September 30, 2020.

Results for discontinued operations for the quarter and nine months ended September 30, 2019 also reflects the gain on sale of our wind and solar power generating facilities and escrow proceeds related to the acquisitiongain on sale of BEC. This decrease was partially offset by financing income fromour majority interest in a revolving credit facility provided by CP to a third party developer of renewable projects and the associatedpower development profit for the periods in 2017.

business.

Income Taxes

We file a consolidated federal income tax return that includes the financial results for IMTT,of our ongoing businesses, Atlantic Aviation BEC,and MIC Hawaii, and our allocable sharediscontinued operations, IMTT, through the date of the taxable income (loss) from our wind and solar facilities. The wind and solar facilities are held by limited liability companies treated as partnerships for tax purposes.sale. Pursuant to a tax sharing agreement, thethese businesses included in our consolidated federal income tax return, pay MIC an amount equal to the federal income tax each would have paidpay on a standalone basis as if they were not part of the consolidated group. If the IMTT sale is not concluded before December 31, 2020, we expect to incur a federal taxable loss for the year ended December 31, 2020. Under the U.S. Coronavirus Aid, Relief and Economic Security (CARES) Act, any net operating losses (NOL) generated in 2020 may be carried back five years.

In addition, our businesses file income tax return.

Forreturns and may pay taxes in the state and local jurisdictions in which they operate. We expect the total current year ending December 31, 2017, we expect any consolidated federalstate income tax liability ourof ongoing businesses may generate to be fully offset by net operating loss (NOL) carryforwards. Our federal NOL balance at December 31, 2016 was $398.1 million. We believe that we will be able to utilize all of our federal prior year NOLs and together with planned tax strategies, we do not expect to make regular federal income tax payments any earlier than the second half of 2019.

For the year ending December 31, 2017, we expect current year taxable incomeIMTT to be approximately $33.0 million. The reduction in anticipated current year taxable income from the previously disclosed $95.0 million is primarily attributable to additional tax depreciation related to acquisitions and tax strategies. For the year ending December 31, 2017, we expect that our available investment tax credits will offset any Alternative Minimum Tax liability.

For the year ending December 31, 2017, we expect our businesses collectively to pay state income taxes of approximately $11.5$7 million. In calculating our consolidated state income tax provision, we have provided a valuation allowance for certain state income tax NOLs,NOL carryforwards, the use of which is uncertain.

Protecting Americans from Tax Hikes Act (PATH Act)

During the quarter ended September 30, 2020, we increased our deferred tax liability by $158 million as it became probable that IMTT would be sold in a taxable transaction. The PATH Act retroactively extends severalincrease represents the deferred tax provisions applicable to corporations, includingexpense on the extensiondifference between our book and tax basis in our investment in IMTT.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding non-cash items and Free Cash Flow and Proportionately Combined Metrics

In addition to our results under U.S. GAAP, we use certainthe non-GAAP measures EBITDA excluding non-cash items and Free Cash Flow to assess the performance and prospects of our businesses. In particular, we use EBITDA excluding non-cash items, Free Cash Flow and certain proportionately combined financial metrics. Proportionately combined financial metrics reflect our proportionate interest in our wind and solar facilities.

Our businesses are characteristically owners of high-value, long-lived assets capable of generating substantial Free Cash Flow. We define Free Cash Flow as cash from operating activities — the most comparable GAAP measure — which includesreflects cash paid for interest, taxestax payments, and pension contributions, less maintenance capital expenditures, which includes principal repayments on capital lease obligations used to fund maintenance capital expenditures, and excludingexcludes changes in working capital.

We use Free Cash Flow as a measure of our ability to provide investors with an attractive risk-adjustedfund acquisitions, invest in growth projects, reduce or repay indebtedness, and/or return by sustaining and potentially increasing our quarterly cash dividend and funding a portion of our growth.capital to shareholders. GAAP metrics such as net income (loss) do not provide us with the same level of visibility into theour performance and prospects of the business as a result of: (i) the capital intensive nature of our businesses and the generation of non-cash depreciation and amortization; (ii) shares issued to our external Manager under the Management Services Agreement; (iii) our ability to defer all or a portion of current federal income taxes; (iv) non-cash unrealized gains or losses onmark-to-market adjustment of the value of derivative instruments; (v) amortizationgains (losses) related to the write-off or disposal of tollingassets or liabilities; (vi) gains (losses) on disposalnon-cash compensation expense incurred in relation to the incentive plans for senior management of assets;our operating businesses; and (vii) pension expenses. Pension expenses primarily consist of interest cost, expected return on plan assets, and amortization of actuarial and performance gains and losses. Any cash contributions to pension plans are reflected as a reduction to Free Cash Flow.Flow and are not included in pension expense. We believe that external consumers of our financial statements, including investors and research analysts, use Free Cash Flow both to assess MIC’s performance and as an indicator of its success in generating an attractive risk-adjusted return.

In this Quarterly Report on Form 10-Q, we have disclosed Free Cash Flow on a consolidated basis and for each of our operating segments and MIC Corporate.Corporate and Other. We believe that both EBITDA excluding non-cash items and Free Cash Flow support a more complete and accurate understanding of the financial and operating performance of our businesses than would otherwise be achieved using GAAP results alone.

Free Cash Flow does not take into consideration required payments on indebtedness and other fixed obligations or other cash items that are excluded from our definition of Free Cash Flow. We note that Free Cash Flow may be calculated differently by other companies thereby limiting its usefulness as a comparative measure. Free Cash Flow should be used as a supplemental measure and not in lieu of our financial results reported under GAAP.

We categorize capital expenditures as either maintenance capital expenditures or growth capital expenditures. As neither maintenance capital expenditure nor growth capital expenditure is a GAAP term, we have adopted a framework to categorize specific capital expenditures. In broad terms, maintenance capital expenditures primarily maintain our businesses at current levels of operations, capability, profitability or cash flow, while growth capital expenditures primarily provide new or enhanced levels of operations, capability, profitability or cash flow. We consider a number ofvarious factors in determining whether a specific capital expenditure will be classified as maintenance or growth.

In some cases, specific capital expenditures contain characteristics of both maintenance and growth capital expenditures.

We do not bifurcate specific capital expenditures into maintenance and growth components. Each discrete capital expenditure is considered within the above framework and the entire capital expenditure is classified as either maintenance or growth.

A reconciliation of net (loss) income from continuing operations to EBITDA excluding non-cash items from continuing operations and a reconciliation from cash provided by operating activities from continuing operations to Free Cash Flow from continuing operations, on a consolidated basis, is provided below. Similar reconciliations for each of our operating businesses and MIC Corporate and Other follow.

(1)

Interest expense, net, includes adjustments to derivative instruments, non-cash amortization of deferred financing fees and non-cash amortization of debt discount related to the 2.00% Convertible Senior Notes due October 2023. For the nine months ended September 30, 2016, interest expense also included a non-cash write-off of deferred financing fees related to the February 2016 refinancing at Hawaii Gas.

Based on data reported by lower revenue from spill response activitythe FAA, the total number of GA flight movements at airports on which Atlantic Aviation operates decreased by 19% and lower utilization. For the nine months ended September 30, 2017, revenue also increased due to the recognition of deferred revenue resulting from termination of a construction project by a biodiesel customer.

Capacity utilization was 92.7% and 94.3% for the quarter and nine months ended September 30, 2017, respectively, compared with 96.7% and 96.4% for the quarter and nine months ended September 30, 2016, respectively. The decrease in utilization primarily reflects the transition of customers and tanks coming out of service for repairs and inspections. We expect utilization levels to be approximately 94% over the long term, as they have been historically.

Costs of Services and Selling, General and Administrative Expenses

Cost of services and selling, general and administrative expenses combined decreased for the quarter and nine months ended September 30, 2017 compared with the quarter and nine months ended September 30, 2016. The decrease was primarily the result of lower labor, healthcare and repair and maintenance expenses, partially offset by incremental costs from an acquisition and higher franchise taxes.

Depreciation and Amortization

Depreciation and amortization expense decreased for the quarter and nine months ended September 30, 2017 compared with the quarter and nine months ended September 30, 2016 primarily due to the write-off of tanks and docks in 2016.

Interest Expense, Net

Interest expense includes gains on derivative instruments of $124,000 and losses on derivative instruments of $1.5 million for the quarter and nine months ended September 30, 2017, respectively, compared with gains on derivative instruments of $1.4 million and losses on derivative instruments of $14.0 million for the quarter and nine months ended September 30, 2016, respectively.

In response to the downturn in flight activity that commenced in March of this year, Atlantic Aviation engaged in a thorough review of its operational and capital expenditures to ensure it operates. For the year ending December 31, 2017,was prudently managing its liquidity. Staffing levels were reduced to reflect lower levels of demand for services provided. Non-payroll discretionary expenses were cut or deferred and capital expenditures were reviewed resulting in certain uncommitted or non-essential items being deferred as well. As a result of these efforts, the business expects to pay state income taxeshas realized savings of approximately $4.0 million. TheProvision for income taxes, net of changes in deferred taxes of $3.1$15 million forthrough the nine months ended September 30, 2017 in2020 versus the above table includes $2.4 millionprior comparable period.

Atlantic Aviation seeks to extend FBO leases prior to their maturity to maintain visibility into the cash generating capacity of state income tax expense and $626,000 of federal income tax expense. Any current federal income tax payable is expected to be offset in consolidation withthese assets over the application of NOLs at the MIC holding company level.

The majority of the difference between IMTT’s book and federal taxable income relates to depreciation of terminal fixed assets. For book purposes, these fixed assets are depreciated primarily over 5 to 30 years using the straight-line method of depreciation. For federal income tax purposes, these fixed assets are depreciated primarily over 5 to 15 years using accelerated methods. In addition, most terminal fixed assets placed in service between 2012 through 2017 qualify for the federal 50% bonus tax depreciation. A significant portion of Louisiana terminal fixed assets constructed in the period after Hurricane Katrina were financed with Gulf Opportunity Zone Bonds (GO Zone Bonds). GO Zone Bond financed assets are depreciated, for tax purposes, primarily over 9 to 20 years using the straight-line depreciation method. Most of the states in which the business operates do not allow the use of 50% bonus tax depreciation. However, Louisiana allows the use of 50% bonus depreciation except for assets financed with GO Zone Bonds.

EBITDA Excluding Non-Cash Items

For the quarter and nine months ended September 30, 2016,long-term. Based on EBITDA excluding non-cash items included $13.0 millionin the prior calendar year adjusted for the impact of acquisitions, dispositions, and $15.5 million, respectively,lease extensions, the weighted average remaining life of insurancethe leases in the Atlantic Aviation portfolio was 19.9 years and 19.2 years on September 30, 2020 and 2019, respectively. During the quarter, Atlantic Aviation was notified that it was unsuccessful in its bid to renew its lease at John Wayne airport in Orange County, CA, and will cease FBO operations there on December 31, 2020. The absence of any contribution to Atlantic Aviation’s results from the Orange County FBO will not have a material impact on its financial performance in 2021.