INCOME TAXES

The Company's provision for income taxes in interim periods is based on an estimated annual effective income tax rate derived, in part, from estimated annual pre-tax results from ordinary operations. The annual effective income tax rate is reviewed and, if necessary, adjusted on a quarterly basis.

The Company's income tax expense (benefit) consisted of the following:



	Three Months Ended
	March 31,
	2014		2013
Income (loss) before provision for income taxes	$	6,471	$	(2,016	)
Income tax expense (benefit) using estimated annual effective income tax rate	2,303		(788		)
Impact of discrete items, net	639		453
Income tax expense (benefit)	$	2,942	$	(335	)

The discrete item for the three months ended March 31, 2014 is primarily related to an increase in the blended state tax rate that resulted in the Company's revaluation of its deferred taxes and the results of a recent state income tax audit. The discrete item for the three months ended March 31, 2013 is related to the the loss on the extinguishment of the 11% Senior Secured Notes.