Quarterly Financial Summary (Unaudited):



	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
	(In thousands, except per share amounts)
2016
Net sales	$	657,211		$	669,327		$	654,010		$	696,655
Gross profit	$	242,534		$	248,104		$	238,972		$	240,966
Gain on sales of businesses, net^(a)	$	(121,324	)	$	(974	)	$	—		$	—
Acquisition and integration related costs^(b)	$	18,558		$	19,030		$	6,749		$	13,047
Net income from continuing operations	$	218,236		$	95,586		$	114,512		$	50,304
Income (loss) from discontinued operations (net of tax)^(c)	17,312			(398,340		)	23,185			559,974
Net income attributable to noncontrolling interests	(7,362		)	(12,067		)	(9,477		)	(8,188		)
Net income (loss) attributable to Albemarle Corporation	$	228,186		$	(314,821	)	$	128,220		$	602,090
Basic earnings (loss) per share:
Continuing operations	$	1.88		$	0.74		$	0.93		$	0.37
Discontinued operations	0.15			(3.54		)	0.21			4.98
	$	2.03		$	(2.80	)	$	1.14		$	5.35

Shares used to compute basic earnings per share	112,260			112,339			112,429			112,487
Diluted earnings (loss) per share:
Continuing operations	$	1.87		$	0.74		$	0.93		$	0.37
Discontinued operations	0.15			(3.52		)	0.20			4.93
	$	2.02		$	(2.78	)	$	1.13		$	5.30

Shares used to compute diluted earnings per share	112,770			113,175			113,448			113,563



	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
	(In thousands, except per share amounts)
2015
Net sales	$	692,313		$	718,290		$	693,216		$	722,610
Gross profit	$	191,384		$	212,031		$	219,045		$	237,773
Restructuring and other, net^(d)	$	—		$	—		$	(6,804	)	$	—
Acquisition and integration related costs^(b)	$	57,825		$	22,832		$	36,514		$	15,128
Net income from continuing operations^(e)	$	49,253		$	49,218		$	59,842		$	169,275
(Loss) income from discontinued operations (net of tax)	(2,104		)	10,148			11,030			13,402
Net income attributable to noncontrolling interests	(4,034		)	(7,219		)	(5,480		)	(8,425		)
Net income attributable to Albemarle Corporation	$	43,115		$	52,147		$	65,392		$	174,252
Basic earnings (loss) per share:
Continuing operations^(e)	$	0.42		$	0.37		$	0.48		$	1.43
Discontinued operations	(0.02		)	0.09			0.10			0.12
	$	0.40		$	0.46		$	0.58		$	1.55

Shares used to compute basic earnings per share	108,130			112,189			112,202			112,207
Diluted earnings (loss) per share:
Continuing operations^(e)	$	0.42		$	0.37		$	0.48		$	1.43
Discontinued operations	(0.02		)	0.09			0.10			0.12
	$	0.40		$	0.46		$	0.58		$	1.55

Shares used to compute diluted earnings per share	108,464			112,607			112,544			112,608

(a)

Included in Gain on sales of businesses, net for the year ended December 31, 2016 is $11.5 million and $112.3 million related to the sales of the metal sulfides business and the minerals-based flame retardants and specialty chemicals business, respectively, both of which closed in the first quarter of 2016. In addition, Gain on sales of businesses, net for the year ended December 31, 2016 includes a loss of $1.5 million on the sale of our wafer reclaim business. See Note 3, “Divestitures,” for additional information.


(b)	See Note 2, “Acquisitions,” for additional information.

(c)

Included in Income (loss) from discontinued operations (net of tax) for the second quarter of 2016 is a nonrecurring, non-cash tax charge of $416.7 million related to the change in the Company’s assertion over book and tax basis differences for certain entities included in the sale of the Chemetall Surface Treatment business. In the fourth quarter of 2016, this non-cash tax charge was reversed as a result of the completion of the sale. In addition, the fourth quarter of 2016 includes an after-tax gain of $135.0 million as a result of the sale of the Chemetall Surface Treatment business.


(d)	See Note 21, “Restructuring and Other.”


(e)	The fourth quarter of 2015 includes an income tax benefit of $43.1 million primarily related to the release of certain tax reserves associated with lapses in statutes of limitations and audit closures.

As discussed in Note 1, “Summary of Significant Accounting Policies,” actuarial gains and losses related to our defined benefit pension and OPEB plan obligations are recognized annually in our consolidated statements of income in the fourth quarter and whenever a plan is determined to qualify for a remeasurement during a fiscal year. During the year ended December 31, 2016, actuarial losses were recognized as follows: fourth quarter—$26.7 million ($18.3 million after income taxes) as a result of the annual remeasurement process. During the year ended December 31, 2015, actuarial gains were recognized as follows: fourth quarter—$30.1 million ($21.4 million after income taxes) as a result of the annual remeasurement process.