8. Income Taxes

The following summarizes our income tax provision on the loss from continuing operations (in thousands):


	Three Months				Six Months
	Ended June 30,				Ended June 30,
	2016		2015		2016		2015
Total current income tax provision	$	(742)	$	(617)	$	(1,343)	$	(1,830)
Total deferred income tax provision		(7,738)		(1,662)		(20,812)		(4,203)
Income tax provision	$	(8,480)	$	(2,279)	$	(22,155)	$	(6,033)

Subsequent to the Sale, to the extent that profitability from operations is not sufficient to realize the benefit from our remaining net deferred tax assets, we would generate sufficient taxable income from the appreciated value of our Telesat investment, which currently has a nominal tax basis, in order to prevent federal net operating losses from expiring and realize the benefit of all remaining deferred tax assets.

Subsequent to the filing of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016, we identified a $6.9 million overstatement of our deferred income tax provision. As a result, our net income and earnings per share (basic and diluted) on the condensed consolidated statement of operations for the three months ended March 31, 2016 were understated by $6.9 million and $0.22 per share, respectively, and long-term deferred tax assets on the condensed consolidated balance sheet were understated by $6.9 million at March 31, 2016. This overstatement of our deferred income tax provision was attributable primarily to the utilization of an incorrect forecast of equity in net income of Telesat for the full year which was used in the calculation of the expected annual effective income tax rate to determine our interim income tax provision for the three months ended March 31, 2016. The condensed consolidated financial statements for the six months ended June 30, 2016 reflect the correction of this item.

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


	Three Months				Six Months
	Ended June 30,				Ended June 30,
	2016		2015		2016		2015
Current provision for UTPs	$	(627)	$	(544)	$	(1,138)	$	(277)
Deferred benefit for UTPs		320		203		512		57
Tax provision for UTPs	$	(307)	$	(341)	$	(626)	$	(220)

As of June 30, 2016, we had unrecognized tax benefits relating to UTPs of $72 million. The Company recognizes interest and penalties related to income taxes in income tax expense on a quarterly basis. As of June 30, 2016, we have accrued approximately $6.8 million and $6.4 million for the payment of potential tax-related interest and penalties, respectively.

Subject to certain limited exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years prior to 2011. Earlier years related to certain foreign jurisdictions remain subject to examination. Various federal, 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 twelve months, the statute of limitations for assessment of additional tax will expire with regard to certain UTPs related to our state income tax returns filed for 2011, potentially resulting in a $4.0 million reduction to our unrecognized tax benefits. Pursuant to the Purchase Agreement for the Sale, we are obligated to indemnify SS/L for taxes related to periods prior to the closing of the transaction.

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


	Six Months
	Ended June 30,
	2016		2015
Liabilities for UTPs:
Opening balance — January 1	$	69,511	$	77,133
Current provision (benefit) for:
Potential additional interest		1,138		1,175
Statute expirations		—		(161)
Tax settlements		—		(737)
Ending balance	$	70,649	$	77,410

As of June 30, 2016, if our positions are sustained by the taxing authorities, the Company’s income tax provision from continuing operations would be reduced by approximately $30.9 million. Other than as described above, there were no significant changes to our UTPs during the six months ended June 30, 2016 and 2015, and we do not anticipate any other significant changes to our unrecognized tax benefits during the next twelve months.