9. Income Taxes

The following summarizes our income tax benefit on income from continuing operations (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Total current income tax benefit	$	12,561	$	53,378	$	18,861	$	54,009
Total deferred income tax provision		(4,972)		(16,762)		(16,257)		(14,852)
Income tax benefit	$	7,589	$	36,616	$	2,604	$	39,157

Loral requested a tax refund in its income tax returns filed for 2012 and is projecting a tax loss for 2013 which will be available as a carryback benefit against taxes previously paid. As of September 30, 2013, income taxes receivable of $19.9 million have been recorded on the condensed consolidated balance sheet for these benefits. Subsequent to the Sale, to the extent that Loral’s profitability from operations is not sufficient to realize the benefit from our remaining net deferred tax assets, the Company would generate sufficient taxable income from the appreciated value of its Telesat investment, which currently has a nominal tax basis, in order to prevent its federal net operating losses from expiring and realize the benefit of all remaining deferred tax assets.

The following summarizes amounts for uncertain tax positions (“UTPs”) included in our income tax benefit (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Current benefit for UTPs	$	1,751	$	53,083	$	1,080	$	53,713
Deferred provision for UTPs		(309)		(6,122)		(68)		(6,110)
Tax benefit for UTPs	$	1,442	$	46,961	$	1,012	$	47,603

As of September 30, 2013, we had UTBs relating to UTPs of $80.9 million. Pursuant to the Purchase Agreement for the Sale, we are obligated to indemnify SS/L from liabilities with respect to certain taxes related to periods prior to the closing of the transaction. The Company recognizes potential accrued interest and penalties related to UTPs in income tax expense on a quarterly basis. As of September 30, 2013, we have accrued approximately $3.5 million and $9.2 million for the payment of potential tax-related interest and penalties, respectively.

With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years prior to 2007. Earlier years related to certain foreign jurisdictions remain subject to examination. Various state and foreign income tax returns are currently under examination. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses were generated and carried forward, and make adjustments up to the amount of the net operating loss carryforward. While we intend to contest any future tax assessments for UTPs, no assurance can be provided that we would ultimately prevail. During the next 12 months, the statute of limitations for assessment of additional tax will expire with regard to UTPs related to our federal income tax return filed for 2010 and certain state income tax returns filed for 2007 through 2010 potentially resulting in a $1.0 million reduction to our UTBs.

The following summarizes the changes to our liabilities for UTPs included in long-term liabilities in the condensed consolidated balance sheets (in thousands):


	Nine Months Ended September 30,
	2013		2012
Liabilities for UTPs:
Opening balance — January 1	$	80,732	$	139,916
Current provision (benefit) for:
Unrecognized tax benefits		(636)		(587)
Potential additional interest		1,164		4,632
Potential penalty adjustment		(249)		(374)
Statute expirations		(1,361)		(54,690)
Ending balance — September 30	$	79,650	$	88,897

As of September 30, 2013, if our positions are sustained by the taxing authorities, approximately $36.9 million of the benefits will increase the Company’s income tax benefit from continuing operations. Other than as described above, there were no significant changes to our UTPs during the nine months ended September 30, 2013 and 2012, and we do not anticipate any other significant changes to our UTBs during the next twelve months.