INCOME TAXES

9 Months Ended

Sep. 30, 2012

INCOME TAXES

(6) INCOME TAXES

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Income tax (benefit) expense	$	(29,074	)	$	22,540		$	(17,910	)	$	35,346
Effective tax rate		35.1	%		40.4	%		30.9	%		43.7	%

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 third quarter and nine months ended September 30, 2012 and 2011, our overall effective tax rate on pre-tax income from continuing operations was different than the statutory rate of 35% due primarily to state income taxes, valuation allowances and other permanent differences.