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Income Taxes
 6 Months Ended
Jun. 30, 2013
Income Taxes

(5) INCOME TAXES

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

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

2013

 

 

2012

 

 

2013

 

 

2012

 

Income tax expense

$

  97,494

 

 

$

  39,007

 

 

$

  50,314

 

 

$

  11,164

 

Effective tax rate

 

  40.4

%

 

 

  41.2

%

 

 

  42.4

%

 

 

  44.6

%

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 second quarter and the six months ended June 30, 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.