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 consisted of the following:



	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2014			2013		2014		2013
Income before provision for income taxes	$	19,132		$	23,528	$	25,603	$	21,512
Income tax expense using estimated annual effective income tax rate	6,279			9,575		8,404		8,755
Changes in effective tax rates	(178		)	321		—		—
Impact of discrete items, net	—			121		639		927
Income tax expense	$	6,101		$	10,017	$	9,043	$	9,682

The discrete item for the six months ended June 30, 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 six months ended June 30, 2013 is related to the impact of the Company's loss on the extinguishment of the 11% Senior Secured Notes due to the differences in the Company's marginal tax rate and its anticipated effective annual income tax rate at June 30, 2013 and the accrual of an unrecognized tax benefit.