Note 25. Summary Quarterly Consolidated Financial Information (unaudited)

The following table summarizes ARRIS’s quarterly consolidated financial information (in thousands, except per share data):


	Quarters in 2017 Ended,
	March 31,			June 30,		September 30		December 31,^(1)(2)(3)(4)
Net sales	$	1,483,105		$	1,664,170	$	1,728,524	$	1,738,593
Gross margin		337,257			403,357		431,155		494,470
Operating (loss) income		(4,084	)		55,636		84,157		(12,698	)
Net (loss) income attributable to ARRIS International plc.	$	(39,098	)	$	30,336	$	88,320	$	12,469
Net (loss) income per basic share	$	(0.21	)	$	0.16	$	0.47	$	0.07
Net (loss) income per diluted share	$	(0.21	)	$	0.16	$	0.47	$	0.07

	Quarters in 2016 Ended
	March 31,			June 30,		September 30		December 31,⁽⁵⁾⁽⁶⁾
Net sales	$	1,614,706		$	1,730,044	$	1,725,145	$	1,759,223
Gross margin		384,032			444,734		442,850		436,001
Operating (loss) income		(86,490	)		33,388		91,313		72,506
Net (loss) income attributable to ARRIS International plc	$	(202,573	)	$	84,228	$	48,162	$	88,283
Net (loss) income per diluted share	$	(1.06	)	$	0.44	$	0.25	$	0.46
Net (loss) income per basic share	$	(1.06	)	$	0.44	$	0.25	$	0.46

Year 2017

(1)	For the quarter ended December 31, 2017, the Company recorded an increase to net sales of $8.1 million, to reverse previous quarters reduction in net sales in connection with Warrants.

(2)

In the fourth quarter of 2017, the Company recorded partial impairments of goodwill and indefinite-lived tradenames of $51.2 million and $3.8 million, respectively, acquired in our ActiveVideo acquisition and included as part of our Cloud TV reporting unit, of which $19.3 million is attributable to noncontrolling interest.

(3)	In the fourth quarter of 2017, the Company recorded acquisition costs of $61.5 million related to the cash settlement of stock-based awards held by transferring employees.

(4)

During 2017, the Company recorded a foreign currency remeasurement loss of $10.5 million related primarily to a deferred income tax liability, in the United Kingdom. This deferred income tax liability is denominated in GBP. The foreign currency remeasurement gain derives from the remeasurement of the GBP deferred income tax liability to the USD, since the date of the acquisition.

Year 2016

(5)	For the quarter ended December 31, 2016, the Company recorded $16.4 million as a reduction to net sales in connection with Warrants.

(6)

In the fourth quarter of 2016, the Company recorded foreign currency remeasurement gains of approximately $16 million related to the remeasurement of net deferred income tax liabilities in the U.K. where the functional currency is the U.S. dollar. Approximately $8 million resulted from changes in exchange rates prior to the 4^th quarter in 2016 and was considered the correction of an immaterial misstatement of interim financial statements in 2016. In accordance with ASC Topic 250, Accounting Changes and Error Corrections, the Company evaluated the impact of the 4^th quarter adjustment on its previously issued interim financial statements in 2016 and concluded that the results of operations for these periods were not materially misstated and accordingly the correction was recorded in the 4^th quarter.