Note 21—Quarterly results of operations (unaudited):

	Quarter ended
	March 31			June 30			Sept. 30			Dec. 31
	(In millions, except per share data)
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	)
Year ended December 31, 2016
Net sales	$	353.5		$	398.6		$	406.8		$	407.9
Gross margin		42.0			62.2			85.3			102.6
Operating income (loss)		(10.3	)		9.8			29.7			52.0
Net income (loss)	$	(22.0	)	$	(7.7	)	$	9.0		$	17.7
Amounts attributable to Valhi stockholders:
Net income (loss) (2)	$	(19.5	)	$	(8.5	)	$	3.0		$	9.1
Basic and diluted income (loss) per share	$	(.06	)	$	(.02	)	$	.01		$	.03

(1)	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 13);

•

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 14); 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 14).

(2)	We recognized the following amounts during 2016:

•

a pre-tax charge of $5.1 million in the first quarter related to the contract related intangible asset impairment (see Note 7);

•

pre-tax insurance settlement gains of $2.0 million, $1.4 million and $.9 million in the first, second and fourth quarters, respectively, (see Note 14);

•

a current income tax benefit of $5.6 million in the third quarter and a current income tax expense of $2.2 million in the fourth quarter related to the execution and finalization of an Advance Pricing Agreement between the U.S. and Canada (see Note 14);

•

non-cash deferred income tax expense (benefit) of $2.9 million and $(.8) million and $(4.3) million in the second, third and fourth quarters, respectively, as the result of a net decrease in our deferred income tax asset valuation allowance related to Kronos’ German and Belgian operations (see Note 14);

•

non-cash income tax expense of $7.2 million related to an increase in our reserve for uncertain tax positions, mostly in the fourth quarter; and

•

net income in the fourth quarter includes an immaterial out of period adjustment of $4.3 million ($2.7 million net of income tax) to correct for transaction costs related to the proposed sale of our Waste Management Segment incurred in earlier periods.

The sum of the quarterly per share amounts may not equal the annual per share amounts due to relative changes in the weighted average number of shares used in the per share computations.