7. Income Taxes

The following summarizes our income tax (provision) benefit (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Current income tax provision	$	(316)	$	(834)	$	(918)	$	(1,388)
Deferred income tax (provision) benefit		(1,844)		5,902		(3,308)		7,043
Income tax (provision) benefit	$	(2,160)	$	5,068	$	(4,226)	$	5,655

For the six month periods ended June 30, 2019 and 2018, our income tax (provision) benefit is computed by applying an expected effective annual tax rate against the pre-tax results for each period (after adjusting for certain tax items that are discrete to each period). For the three month periods ended June 30, 2019 and 2018, this amount is then reduced by the tax recorded for the three months ended March 31, 2019 and 2018. After utilization of our net operating loss carryforward and foreign tax credits, there was no federal income tax on GILTI from Telesat for the three and six month periods ended June 30, 2019 and 2018. The deferred income tax (provision) benefit for each period includes the impact of equity in net income (loss) of affiliates from our condensed consolidated statement of operations.

Subsequent to the sale of SSL to MDA Communications Holdings, Inc., a subsidiary of Maxar Technologies Ltd. (formerly known as MacDonald, Dettwiler and Associates Ltd.) (“MDA”) in 2012 (the “SSL 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 in order to prevent federal net operating losses from expiring and realize the benefit of all remaining deferred tax assets.

The following summarizes amounts for UTPs included in our income tax (provision) benefit (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Current provision for UTPs	$	(277)	$	(747)	$	(737)	$	(1,227)
Deferred benefit for UTPs		60		157		153		258
Tax provision for UTPs	$	(217)	$	(590)	$	(584)	$	(969)

As of June 30, 2019, we had unrecognized tax benefits relating to UTPs of $43 million. The Company recognizes interest and penalties related to income taxes in income tax expense on a quarterly basis. As of June 30, 2019, we have accrued no penalties and approximately $1.2 million for the potential payment of tax-related interest.

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 2014. Earlier years related to certain foreign jurisdictions remain subject to examination. 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 uncertain tax positions, no assurance can be provided that we would ultimately prevail. Pursuant to the purchase agreement for the SSL Sale, we are obligated to indemnify SSL for certain taxes related to periods prior to the closing of the transaction.

The following summarizes the changes to our liabilities for UTPs included in other liabilities in the condensed consolidated balance sheet (in thousands):


	Six Months Ended
	June 30, 2019
Liabilities for UTPs:
Opening balance — January 1	$	13,315
Current provision for potential additional interest		737
Ending balance	$	14,052

As of June 30, 2019, if our positions are sustained by the taxing authorities, the Company’s income tax provision would be reduced by approximately $6.6 million. Other than as described above, there were no significant changes to our UTPs during the six months ended June 30, 2019 and 2018, and we do not anticipate any other significant changes to our unrecognized tax benefits during the next twelve months.