QUARTERLY FINANCIAL DATA (unaudited):

The following table sets forth the Company's quarterly results for the years ended December 31, 2016 and 2015 (dollars in thousands, except per share data):



	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
2016
Operating revenues	$	482,616	$	501,375	$	501,002	$	516,534
Operating income	$	56,996	$	87,194	$	91,851	$	53,571
Net income attributable to G&W	$	27,019	$	48,399	$	56,785	$	8,934
Basic earnings per common share attributable to G&W	$	0.47	$	0.85	$	0.99	$	0.15
Diluted earnings per common share attributable to G&W	$	0.47	$	0.83	$	0.98	$	0.15

2015
Operating revenues	$	397,030	$	542,219	$	546,299	$	514,853
Operating income	$	72,620	$	99,451	$	117,559	$	94,631
Net income attributable to G&W	$	23,904	$	52,837	$	63,362	$	84,934
Basic earnings per common share attributable to G&W	$	0.43	$	0.94	$	1.12	$	1.49
Diluted earnings per common share attributable to G&W	$	0.42	$	0.92	$	1.10	$	1.47

In addition to the Company's changes in operations as described in Note 3, Changes in Operations, the quarters shown were affected by the items below:

The first quarter of 2016 included (i) $16.8 million after-tax impairment and related costs associated with an Australia iron ore customer entering into voluntary administration following significant financial hardship, (ii) $6.3 million income tax benefit associated with the United States Short Line Tax Credit, (iii) $0.8 million after-tax restructuring costs, (iv) $0.3 million after-tax corporate development and related costs and (v) $0.1 million after-tax gain on sale of assets.

The second quarter of 2016 included (i) $7.2 million income tax benefit associated with the United States Short Line Tax Credit, (ii) $4.0 million after-tax restructuring costs, primarily associated with U.K./European Operations, (iii) $1.8 million after-tax corporate development and related costs and (iv) $0.2 million after-tax gain on sale of assets.

The third quarter of 2016 included (i) $7.8 million income tax benefit associated with the United States Short Line Tax Credit, (ii) $4.3 million income tax benefit associated with a reduction in the U.K. income tax rate, (iii) $3.1 million after-tax corporate development and related costs, (iv) $0.4 million after-tax gain on sale of assets and (v) $0.2 million after-tax restructuring costs.

The fourth quarter of 2016 included (i) $21.5 million after-tax impairment and related charges related to ERS operations in Continental Europe, (ii) $16.2 million after-tax corporate development and related costs, primarily related to the P&W and GRail acquisitions, (iii) $8.6 million after-tax impairment charges related to the leases of idle excess U.K. coal railcars, (iv) $7.5 million income tax benefit associated with the United States Short Line Tax Credit, (v) $1.4 million after-tax restructuring costs, (vi) $0.8 million after-tax net loss on sale and impairment of assets and (vii) $0.5 million after-tax write-off of debt issuance costs related to the entry into a new Australian credit facility in conjunction with the GRail acquisition.

The first quarter of 2015 included (i) $11.6 million after-tax loss on the settlement of foreign currency forward purchase contracts, (ii) $9.5 million after-tax corporate development and related costs, (iii) $1.3 million after-tax non-cash write-off of deferred financing fees associated with the refinancing of the credit facility, (iv) $1.2 million after-tax Australian severance costs and (v) $0.2 million after-tax gain on sale of assets.

The second quarter of 2015 included (i) $0.5 million after-tax corporate development and related costs and (ii) $0.3 million after-tax gain on sale of assets.

The third quarter of 2015 included (i) $1.3 million after-tax corporate development and related costs, (ii) $0.9 million after-tax gain on sale of assets and (iii) $0.4 million adjustment for income tax returns from previous fiscal year.

The fourth quarter of 2015 included (i) $27.4 million income tax benefit associated with the United States Short Line Tax Credit for 2015, (ii) $9.7 million income tax benefit due to a U.K. tax rate adjustment, (iii) $1.6 million after-tax out of period impact of the final allocation of fair value to Freightliner's assets and liabilities, (iv) $1.3 million tax expense due to the application of the full year 2015 effective income tax rate to the results of the first three quarters of 2015, (v) $0.9 million after-tax Freightliner acquisition/integration related costs, (vi) $0.8 million after-tax corporate development and related costs and (vii) $0.2 million after-tax gain on sale of assets.