INCOME TAXES

6 Months Ended

Jun. 30, 2012

INCOME TAXES

INCOME TAXES

14.INCOME TAXES

Income tax expense for the three months ended June 30, 2012 was $3.7 million compared to income tax expense of $0.5 million during the two months ended June 30, 2011 and an income tax recovery of $0.6 million during the one month ended April 30, 2011.  Income tax expense for the six months ended June 30, 2012 was $6.44 million compared to income tax expense of $0.5 million during the two months ended June 30, 2011 and income tax expense of $0.3 million during the four months ended April 30, 2011. The tax expense for the three months and six months ended June 30, 2012 is primarily due to higher income from operations in the U.S and other foreign jurisdictions.

The effective tax rate for the current period differs from the statutory Canadian tax rate of 25% primarily due to valuation allowances on net operating losses in certain jurisdictions, tax rate differences in foreign jurisdictions, and permanent differences not subject to tax.