NOTE 6 — INCOME TAXES

Income before income taxes attributable to U.S. (including its foreign branches) and foreign operations, tax provision, and effective tax rate for the three and six months ended June 30, 2013 and 2012 are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Pre-tax (loss) income - U.S.	$	(1,472)		$	7,942		$	(1,888)		$	8,829
Pre-tax (loss) income - Foreign		110			(2,386)			8,753			5,914
Total	$	(1,362)		$	5,556		$	6,865		$	14,743
Tax (benefit) provision	$	(1,117)		$	483		$	1,248		$	1,917
Effective tax rate		82	%		9	%		18	%		13	%

The Corporation’s income tax provision decreased $1.6 million and $0.7 million for the three and six months ended June 30, 2013, respectively, compared to the three and six months ended June 30, 2012, respectively, primarily as a result of pre-tax losses in the U.S. and the recognition of increased foreign tax credits as deferred tax assets. The effective tax rate for the three months ended June 30, 2013 was impacted by a change in the expected 2013 annual effective tax rate since March 31, 2013.

The pre-tax losses in the U.S. increased primarily due to increased interest incurred in the three and six months ended June 30, 2013, related to the 2012 Credit Agreement.