	Quarter ended
	March 31		June 30		Sept. 30		Dec. 31
	(In millions, except per share data)
*Year ended December 31, 2011*
Net sales	$	440.9	$	558.9	$	568.6	$	456.7
Gross margin		146.3		197.3		210.2		192.9
Operating income		96.4		139.1		149.4		136.5
Net income	$	53.2	$	72.9	$	93.1	$	75.8
Amounts attributable to Valhi stockholders:
Income from continuing operations	$	35.9	$	52.2	$	71.1	$	55.3
Income from discontinued operations		2.1		.2		.4		.3

Net income⁽¹⁾	$	38.0	$	52.4	$	71.5	$	55.6

Earnings per share:
Income from continuing operations	$	.10	$	.15	$	.21	$	.16
Income from discontinued operations		.01		—		—		—

Net income	$	.11	$	.15	$	.21	$	.16

*Year ended December 31, 2012*
Net sales	$	582.8	$	568.4	$	508.7	$	427.4
Gross margin		260.4		162.1		97.4		55.3
Operating income (loss)		203.3		103.2		41.1		(2.2	)
Net income	$	119.6	$	61.5	$	31.8	$	9.2
Amounts attributable to Valhi stockholders:
Income (loss) from continuing operations	$	88.5	$	43.7	$	21.8	$	(12.6	)
Income from discontinued operations		.5		.6		1.2		16.1

Net income⁽²⁾	$	89.0	$	44.3	$	23.0	$	3.5

Earnings per share:
Income (loss) from continuing Operations	$	.26	$	.13	$	.06	$	(.04	)
Income from discontinued operations		—		—		.01		.05

Net income	$	.26	$	.13	$	.07	$	.01

⁽¹⁾	We recognized the following amounts during 2011:

•

a $1.7 million after-tax and noncontrolling interest loss on the prepayment of debt in the first quarter, see Note 9;

•

a $8.7 million after-tax and noncontrolling interest gain in the third quarter for insurance settlement, see Note 15;

•

a $.9 million after-tax and noncontrolling interest charge in the third quarter as a result of an asset held for sale write-down, see Note 7; and

•

$8.4 million benefit in the third quarter to our tax provision related to a net decrease in our reserves for uncertain tax positions.

⁽²⁾	We recognized the following amounts during 2012:

•

a $3.7 million after-tax and noncontrolling interest loss on the prepayment of debt in the second quarter, see Note 9;

•

a $7.8 million after-tax and noncontrolling interest real-estate related litigation settlement gain in the second quarter, see Note 15; and

•

a $13.2 million after-tax and noncontrolling interest securities transaction gain in the fourth quarter, see Note 4; and

•

a $5.3 million net of noncontrolling interest charge in the fourth quarter for a goodwill impairment, see Note 8;

•

$.8 million after-tax and noncontrolling interest charge in the primarily in the fourth quarter as a result of an asset held for sale write-down, see Note 7;

•

$1.7 million after-tax and noncontrolling interest gain on sale of excess property in the fourth quarter, see Note 15; and

•

an incremental tax charge of $6.1 million (net of noncontrolling interest) in the fourth quarter as a result of a change in circumstances related to our sale of TIMET common stock, which sale provided an opportunity for us to elect to claim foreign tax credits, we determined that we could tax-efficiently remit non-cash dividends from our non-U.S. jurisdictions before the end of the year that absent the TIMET sale would not have been considered. Our provision for income taxes recognized in the fourth quarter also includes a $2.1 million expense (net of noncontrolling interest) related to an increase in our reserve for uncertain tax positions. In addition, an aggregate $2.7 million (net on noncontrolling interest) of such fourth quarter 2012 provision for income taxes is a correction of amounts that should have been recognized in the third quarter of 2011 and is not material to any current or prior periods.