22. Quarterly Financial Data (unaudited)

Summarized quarterly financial data was as follows:

	Fiscal
	2016									2015
	First Quarter		Second Quarter(1)			Third Quarter(2)		Fourth Quarter(3)		First Quarter(4)		Second Quarter		Third Quarter			Fourth Quarter(5)
	(in millions, except per share data)
Net sales	$	2,833	$	2,952		$	3,121	$	3,332	$	3,049	$	3,082	$	3,118		$	2,984
Gross margin		945		962			1,022		1,104		1,020		1,051		1,048			968
Acquisition and integration costs		5		3			11		3		24		14		8			9
Restructuring and other charges (credits), net		40		(99	)		31		30		25		38		19			70
Income from continuing operations		324		389			791		437		435		316		351			136
Income (loss) from discontinued operations, net of income taxes		29		(9	)		48		—		37		283		(42	)		904
Net income	$	353	$	380		$	839	$	437	$	472	$	599	$	309		$	1,040
Basic earnings per share:
Income from continuing operations	$	0.84	$	1.07		$	2.22	$	1.23	$	1.07	$	0.78	$	0.86		$	0.34
Net income		0.92		1.04			2.35		1.23		1.16		1.47		0.76			2.60
Diluted earnings per share:
Income from continuing operations	$	0.83	$	1.06		$	2.19	$	1.22	$	1.05	$	0.77	$	0.85		$	0.34
Net income		0.91		1.03			2.32		1.22		1.14		1.45		0.75			2.57


(1)	Results for the second quarter of fiscal 2016 included a pre-tax gain of $146 million on the sale of our CPD business.
(2)	Results for the third quarter of fiscal 2016 included a $1,135 million income tax benefit associated with the effective settlement of tax matters for the years 1997 through 2000 which resolved all aspects of the disputed debt matter with the IRS through the year 2007 and the related impact of $604 million to other expense pursuant to the Tax Sharing Agreement with Tyco International and Covidien. In addition, results for the third quarter of fiscal 2016 included a $91 million income tax charge related to an increase to the valuation allowance for certain U.S. deferred tax assets, and an $83 million net income tax benefit related to tax settlements in certain other tax jurisdictions and the related impact of $46 million to other expense pursuant to the Tax Sharing Agreement with Tyco International and Covidien.
(3)	Results for the fourth quarter of fiscal 2016 included an additional week. See Note 1 for additional information regarding our fiscal year end.
(4)	Results for the first quarter of fiscal 2015 included $27 million of charges from the amortization of acquisition-related fair value adjustments to acquired inventories and customer order backlog associated primarily with Measurement Specialties. Results for the first quarter of fiscal 2015 also included a $189 million income tax benefit associated with the effective settlement of all undisputed tax matters for the years 2001 through 2007 and the related impact of $83 million to other expense pursuant to the Tax Sharing Agreement with Tyco International and Covidien.
(5)	Results for the fourth quarter of fiscal 2015 included a $216 million income tax charge associated with the tax impacts of certain intercompany legal entity restructurings made in connection with our integration of Measurement Specialties and a $63 million income tax benefit associated with the effective settlement of all undisputed tax matters for the years 2008 through 2010. In addition, in the fourth quarter of fiscal 2015, income (loss) from discontinued operations, net of income taxes included the gain on the sale of our BNS business.