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INCOME TAXES
 3 Months Ended
Mar. 31, 2013
INCOME TAXES

(5) INCOME TAXES

Income tax benefit from operations was as follows (in thousands):

 

 

 

 

 

Three Months Ended

March 31,

 

 

 

2013

2012

 

 

 

Income tax benefit

$              (47,180)

$              (27,843)             

Effective tax rate             

              38.4%

              40.0              %

We compute our quarterly taxes under the effective tax rate method based on applying an anticipated annual effective rate to our year-to-date income, except for discrete items. Income taxes for discrete items are computed and recorded in the period that the specific transaction occurs. For the first three months ended March 31, 2013 and 2012, our overall effective tax rate on pre-tax loss from operations was different than the federal statutory rate of 35% due primarily to state income taxes, valuation allowances and other permanent differences.