13. Quarterly Data (unaudited)

The following quarterly financial data, in the opinion of management, reflects all adjustments, consisting of normal recurring adjustments necessary, for a fair presentation of results for the periods presented (in thousands, except per share amounts):

	Year Ended December 31, 2016 (1)
	First Quarter (2)(3)			Second Quarter (4)		Third Quarter		Fourth Quarter (3)(5)
Revenue	$	215,104		$	236,210	$	239,649	$	271,109
Gross profit		160,878			176,465		180,453		204,183
Consolidated net (loss) income		(3,825	)		29,790		3,495		5,966
Net (loss) income attributable to NuVasive, Inc.		(3,368	)		30,213		3,926		6,376
Basic net (loss) income per common share attributable to NuVasive, Inc.		(0.07	)		0.60	0.08		0.13
Diluted net (loss) income per common share attributable to NuVasive, Inc.		(0.07	)		0.57	0.07		0.11

	Year Ended December 31, 2015
	First Quarter (6)		Second Quarter		Third Quarter		Fourth Quarter
Revenue	$	192,383	$	202,910	$	200,538	$	215,282
Gross profit		146,719		154,495		151,371		164,049
Consolidated net income		31,397		10,040		12,750		11,103
Net income attributable to NuVasive, Inc.		31,560		10,268		12,960		11,503
Basic net income per common share attributable to NuVasive, Inc.		0.66		0.21	0.26			0.23
Diluted net income per common share attributable to NuVasive, Inc.		0.61		0.20	0.24			0.22

(1)

The unaudited quarterly financial data set forth for the year ended December 31, 2016 includes the operations and results of Ellipse Technologies, BNN Holdings and the Company’s other acquisitions from their respective dates of acquisition. See Note 5 to the Consolidated Financial Statements included in this Annual Report for further discussion.

(2)

The Company elected to early adopt ASU 2016-09 in the second quarter of 2016. As a result, the Company recorded a retrospective adjustment to the previously reported first quarter 2016 provision for income taxes of approximately $5.5 million for the recognition of excess tax benefits in the provision for income taxes rather than additional paid-in capital and a decrease in net loss per share of $0.11 for the three months ended March 31, 2016. See Note 1 to the Consolidated Financial Statements included in this Annual Report for further discussion.

(3)	Consolidated financial results include losses from repurchases of Senior Convertible Notes due 2017 of $17.4 million and $1.7 million in the first and fourth quarters of fiscal year 2016, respectively.

(4)	Consolidated financial results include a litigation liability gain of $43.3 million in connection with the settlement of all outstanding litigation matters with Medtronic.

(5)	Consolidated financial results include a purchase order for $4.8 million from an organization established by certain former stockholders of Ellipse Technologies. See Note 4 to the Consolidated Financial Statements included in this Annual Report for further discussion on the purchase order.

(6)	Consolidated financial results include a litigation liability gain of $56.4 million stemming from a favorable appeal in the first phase of the Medtronic litigation, and a litigation liability loss of $13.8 million in connection with the OIG investigation.