QUARTERLY FINANCIAL DATA (unaudited):

The following table sets forth the Company's quarterly results for the years ended December 31, 2018 and 2017 (dollars in thousands, except per share data):



	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
2018
Operating revenues	$	574,661	$	594,990	$	603,304	$	575,595
Operating income	$	86,913	$	103,125	$	127,820	$	105,654
Net income attributable to G&W	$	75,098	$	44,168	$	69,590	$	55,562
Basic earnings per common share attributable to G&W	$	1.21	$	0.74	$	1.18	$	0.96
Diluted earnings per common share attributable to G&W	$	1.19	$	0.73	$	1.16	$	0.94

2017
Operating revenues	$	519,108	$	540,433	$	576,927	$	571,576
Operating income	$	75,900	$	99,733	$	109,842	$	106,506
Net income attributable to G&W	$	26,238	$	46,007	$	50,240	$	426,566
Basic earnings per common share attributable to G&W	$	0.43	$	0.75	$	0.82	$	6.90
Diluted earnings per common share attributable to G&W	$	0.42	$	0.74	$	0.80	$	6.81

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 2018 included (i) $31.6 million income tax benefit associated with the U.S. Short Line Tax Credit for fiscal year 2017 that was enacted in February 2018, (ii) $0.2 million after-tax restructuring and related costs and (iii) $0.1 million after-tax corporate development and related costs.

The second quarter of 2018 included (i) $7.6 million after-tax restructuring and related costs, primarily driven by the optimization activities in the U.K., (ii) $4.1 million income tax expense associated with uncertain tax deductions on intercompany financing arrangements in the U.K. previously recorded from March 25, 2015, the date of the Freightliner acquisition when the arrangements were established, through March 31, 2018, (iii) $2.3 million after-tax gain on settlement from the recovery of pre-petition claims associated with Arrium's voluntary administration (bankruptcy), (iv) $2.0 million after-tax credit facility refinancing-related costs, (v) $1.4 million loss on sale of ERS and (vi) $0.3 million after-tax corporate development and related costs.

The third quarter of 2018 included (i) $2.7 million after-tax restructuring and related costs, primarily driven by the optimization activities in the U.K., (ii) $1.6 million measurement period adjustment to the one-time transition (toll) tax on earnings of certain foreign subsidiaries, (iii) $0.3 million after-tax corporate development and related costs and (iv) $0.3 million after-tax gain on a settlement in Australia from the recovery of pre-petition claims associated with Arrium's voluntary administration.

The fourth quarter of 2018 included (i) $1.7 million after-tax restructuring and related costs, primarily in the U.K., (ii) $1.5 million after-tax lease return costs associated with two railroad leases in Canada that expired in the fourth quarter of 2018, (iii) $1.4 million of tax adjustments associated with prior periods and (iv) $1.0 million gain on sale of an investment.

The first quarter of 2017 included (i) $3.5 million after-tax restructuring costs and (ii) $3.2 million after-tax corporate development and related costs.

The second quarter of 2017 included (i) $2.7 million after-tax corporate development and related costs, (ii) $2.2 million after-tax restructuring costs, primarily associated with U.K./European Operations and (iii) $1.0 million after-tax gain on the sale of an investment in the United States.

The third quarter of 2017 included (i) $3.3 million of previously unrecognized tax benefits resulting from the lapse of the statute of limitations on acquired liabilities for uncertain tax positions, (ii) $2.2 million after-tax restructuring costs, primarily associated with U.K./European Operations and (iii) $1.8 million after-tax corporate development and related costs.

The fourth quarter of 2017 included (i) $372 million estimated income tax benefit primarily as a result of reducing the value of the Company's net deferred tax liabilities from a 35% U.S. federal tax rate to the newly enacted rate of 21% associated with the TCJA signed into law in December 2017, (ii) $8.9 million reduction to other expenses as a result of the buyout of the Freightliner deferred consideration agreements with former Freightliner management holders, (iii) $1.8 million after-tax Australia impairment and related charges, primarily related to the write-down of track assets on idle branch lines in South Australia, (iv) $1.2 million after-tax restructuring costs, primarily associated with U.K./European Operations, (v) $0.9 million reduction to expense associated with a prior year accrual established for the restructuring of the U.K. coal business and (vi) $0.7 million after-tax corporate development and related costs.