	Quarter ended
	March 31			June 30			Sept. 30			Dec. 31
	(In millions, except per share data)
Year ended December 31, 2016
Net sales	$	348.3		$	387.5		$	393.1		$	390.5
Gross margin		48.4			64.7			85.7			101.4
Operating income		.5			16.9			34.8			55.2
Net income (loss) from continuing operations	$	(14.0	)	$	(2.4	)	$	13.3		$	24.1
Amounts attributable to Valhi stockholders:
Income (loss) from continuing operations(2)	$	(11.5	)	$	(3.2	)	$	7.3		$	15.5
Loss from discontinued operations (2)		(7.9	)		(5.5	)		(4.3	)		(6.3	)
Net income (loss)	$	(19.4	)	$	(8.7	)	$	3.0		$	9.2
Earnings per share:
Income (loss) from continuing operations	$	(.04	)	$	(.01	)	$	.02		$	.05
Loss from discontinued operations		(.02	)		(.01	)		(.01	)		(.02	)
Basic and diluted income (loss) per share	$	(.06	)	$	(.02	)	$	.01		$	.03
Year ended December 31, 2017
Net sales	$	405.3		$	481.7		$	496.5		$	495.9
Gross margin		114.0			141.2			161.5			185.3
Operating income		60.1			78.8			98.6			125.4
Net income from continuing operations	$	23.5		$	163.3		$	62.2		$	162.8
Amounts attributable to Valhi stockholders:
Income from continuing operations(2)	$	14.4		$	117.0		$	44.2		$	141.1
Income (loss) from discontinued operations (2)		(1.7	)		(108.2	)		1.7			(1.0	)
Net income	$	12.7		$	8.8		$	45.9		$	140.1
Earnings per share:
Income from continuing operations	$	.04		$	.34		$	.13		$	.41
Loss from discontinued operations		—			(.31	)		—			—
Basic and diluted income per share	$	.04		$	.03		$	.13		$	.41

(1)	We recognized the following amounts during 2016:

•

a pre-tax charge of $5.1 million in the first quarter related to the contract related intangible asset impairment (see Note 7);

•

pre-tax insurance settlement gains of $2.0 million, $1.4 million and $.9 million in the first, second and fourth quarters, respectively, (see Note 14);

•

a current income tax benefit of $5.6 million in the third quarter and a current income tax expense of $2.2 million in the fourth quarter related to the execution and finalization of an Advance Pricing Agreement between the U.S. and Canada (see Note 14);

•

non-cash deferred income tax expense (benefit) of $2.9 million and $(.8) million and $(4.3) million in the second, third and fourth quarters, respectively, as the result of a net decrease in our deferred income tax asset valuation allowance related to Kronos’ German and Belgian operations (see Note 14);

•

non-cash income tax expense of $7.2 million related to an increase in our reserve for uncertain tax positions, mostly in the fourth quarter; and

•

net income in the fourth quarter includes an immaterial out of period adjustment of $4.3 million ($2.7 million net of income tax) to correct for transaction costs related to the proposed sale of our Waste Management Segment incurred in earlier periods.

(2)	We recognized the following amounts during 2017:

•

non-cash deferred income tax benefit of $5.0 million, $157.6 million, $7.8 million and $16.3 million in the first, second, third and fourth quarters, respectively, as a result of the reversal of our deferred income tax asset valuation allowances associated with our Chemicals Segment’s German and Belgian operations, (see Note 14);

•

a pre-tax charge of $7.1 million in the third quarter related to the loss on prepayment of debt (see Note 9);

•

aggregate income tax benefit of $11.8 million related to the execution and finalization of an Advance Pricing Agreement between Canada and Germany, mostly in the third quarter;

•

provisional current income tax expense of $76.2 million in the fourth quarter as a result of the 2017 Tax Act for the one-time repatriation tax imposed on the post-1986 undistributed earnings of our non-U.S. subsidiaries (see Note 14);

•

non-cash deferred income tax benefit of $77.1 million in the fourth quarter related to the revaluation of our net deferred income tax liability resulting from the reduction in the U.S. federal corporate income

•

non-cash deferred income tax benefit of $18.7 million in the fourth quarter as a result of the reversal of our deferred income tax asset valuation allowance related to certain U.S. deferred income tax assets of one of our non-U.S. subsidiaries (which subsidiary is treated as a dual resident for U.S. income tax purposes) (see Note 14); and

•

aggregate provisional non-cash deferred income tax expense of $5.3 million in the fourth quarter related to a change in our conclusions regarding our permanent reinvestment assertion with respect to the post-1986 undistributed earnings of our European subsidiaries (see Note 14).

The sum of the quarterly per share amounts may not equal the annual per share amounts due to relative changes in the weighted average number of shares used in the per share computations.