Quarterly Financial Information (Unaudited)

The following table summarizes quarterly financial results for 2018 and 2017. In management’s opinion, all material adjustments necessary for a fair statement of the information for such quarters have been reflected.



	1st Quarter				2nd Quarter				3rd Quarter				4th Quarter
In thousands except per share data	2018		2017		2018		2017		2018		2017		2018		2017
Net sales	$	191,660	$	165,487	$	186,413	$	174,879	$	197,886	$	180,041	$	209,938	$	178,030
Gross profit	$	39,507	$	40,498	$	36,127	$	43,327	$	35,139	$	40,054	$	41,872	$	39,480
Net income	$	11,054	$	11,669	$	10,450	$	13,125	$	6,256	$	10,675	$	7,184	$	13,848
Earnings per common share:
Basic	$	0.64	$	0.69	$	0.61	$	0.77	$	0.36	$	0.63	$	0.42	$	0.81
Diluted	$	0.64	$	0.68	$	0.60	$	0.76	$	0.36	$	0.62	$	0.42	$	0.80

The table above includes the quarterly results of Interface since the acquisition date of August 31, 2018.

The following components are included gross profit and net income for 2018 and 2017 and impact the comparability of each year:



	1st Quarter				2nd Quarter				3rd Quarter					4th Quarter
In thousands except per share data	2018		2017		2018		2017		2018		2017			2018		2017
Gross profit impact:
Inventory step-up purchase accounting adjustments	$	—	$	481	$	—	$	543	$	1,390	$	83		$	585	$	—
Restructuring, severance and segment consolidation expenses	449		441		876		92		400		287			169		155
Net income impact:
Inventory step-up purchase accounting adjustments	$	—	$	350	$	—	$	394	$	1,077	$	59		$	438	$	—
Restructuring, severance and segment consolidation expenses	494		702		711		216		409		910			527		488
Long-lived asset impairment charge	—		490		—		—		—		—			—		—
Strategic initiatives expenses	87		125		923		—		1,730		219			493		205
Discrete tax items	—		—		—		—		—		(1,380		)	320		(2,867		)

During the quarter ended December 31, 2017, the Company recorded an out of period adjustment reducing net income by $0.8 million to correct a foreign tax error in prior periods. This error resulted in the overstatement of net income by less than $0.1 million in each of the first, second, and third quarters of 2017. This error also impacted each quarter in 2016, 2015 and 2014 by less than $0.1 million. The Company evaluated the impact of these errors and determined them to be immaterial to all quarters and years.