	Quarter ended
	March 31		June 30			Sept. 30			Dec. 31
	(In millions, except per share data)
Year ended December 31, 2014
Net sales	$	462.4	$	491.7		$	476.5		$	432.0
Gross margin		85.8		104.2			115.8			97.0
Operating income		22.8		46.7			60.2			40.5
Net income	$	4.6	$	23.7		$	37.5		$	13.7
Amounts attributable to Valhi stockholders:
Net income (1)	$	.8	$	15.5		$	28.7		$	8.8
Basic and diluted income per share	$	—	$	.05		$	.08		$	.03
Year ended December 31, 2015
Net sales	$	416.1	$	408.8		$	383.2		$	324.8
Gross margin		89.3		56.3			49.8			27.5
Operating income (loss)		34.6		(10.1	)		(5.0	)		(24.9	)
Net income (loss)	$	17.3	$	(139.4	)	$	(13.3	)	$	(35.7	)
Amounts attributable to Valhi stockholders:
Net income (loss) (2)	$	11.9	$	(103.9	)	$	(11.7	)	$	(29.9	)
Basic and diluted income (loss) per share	$	.04	$	(.30	)	$	(.03	)	$	(.10	)

(1)	We recognized the following amounts during 2014:

—

a $3.2 million net of noncontrolling interest non-cash income tax benefit in the second quarter of 2014 related to the release of a portion of our reserve for uncertain tax positions related to the completion of a Canadian income tax audit and to the release of a portion of our reserve for uncertain tax positions in conjunction with the completion of an audit of our U.S. income tax return for 2009; see Note 12;

—

a $1.2 million net of noncontrolling interest cash tax benefit associated with certain U.S. income tax credits, which we elected to claim on our 2013 amended U.S. federal tax return in the third quarter of 2014; and

—

aggregate insurance recoveries of $7.3 million, after-tax and noncontrolling interest in the third quarter of 2014.

(2)	We recognized the following amounts during 2015:

—

pre-tax charges of $21.1 million, $.4 million and $.2 million in the second, third and fourth quarters, respectively, in workforce reduction charges in our Chemicals Segment (see Note 19);

—

aggregate insurance recoveries of $3.0 million, after-tax and noncontrolling interest primarily in the first quarter;

—

non-cash deferred income tax expense of $150.3 million, $2.3 million and $6.4 million in the second, third and fourth quarters, respectively, related to the recognition of a deferred income tax asset valuation allowance related to our Chemicals Segment’s German and Belgium operations (see Note 12); and

—

related to the non-cash deferred income tax expense noted above we recognized non-cash income tax benefit of $29.3 million, in the second quarter of 2015 for the reduction in the deferred income taxes required to be recognized with respect to the excess of the financial reporting carrying amount over the income tax basis of our direct investment in Kronos common stock, (see Note 12).