Finally, in order to allow more callers to ask questions, I ask each caller in the Q&A to limit their questions to one initial question and one follow-up question.
I will start my comments with some brief remarks on the operating results, but this will be much briefer than normal, as I will defer more to Bernard. I will then focus the majority of my comments on the restatement of our previously issued results due to additional adjustments to our income taxes.
In the second quarter 2012, we generated -- before income taxes, we generated earnings before income taxes of $205 million or $276 million on a non-GAAP basis compared to non-GAAP earnings before income taxes for the first quarter of 2012 of $296 million, as detailed in the non-GAAP reconciliation table in our earnings release.
Second quarter earnings before income taxes was unfavorably impacted by certain excluded items highlighted in our press release, totaling $71 million on a pre-tax basis. The excluded items for the second quarter were primarily composed of a $100 million accrual for the potential settlement of the sanctioned countries' investigation, $24 million for severance exit and other charges and $53 million gain associated with the sale of our subsea controls business.Second quarter revenues of $3.8 billion were 5% higher sequentially and 24% higher than the same period last year. North America revenue was up 25% versus the second quarter of 2011 and down 4% sequentially. International revenues were up 23% versus the same quarter of 2011 and up 14% sequentially. Segment operating income of $539 million improved 29% over second quarter 2011, while declining $15 million or 3% sequentially. Segment operating income margins of 14% were flat compared to second quarter 2011, while declining one point sequentially. North America operating margins for the quarter declined 430 basis points sequentially to 16%, primarily due to the impact of the extended Canadian spring breakup. International operating margins improved 210 basis points sequentially to 13%.