Unaudited Quarterly Results

12 Months Ended

Dec. 31, 2019

19 Unaudited Quarterly Results

The Company’s unaudited quarterly results are summarized below (in thousands, except per share data):


	First			Second			Third			Fourth
2019	Quarter			Quarter			Quarter			Quarter			Total
Net sales	$	513,862		$	599,162		$	577,278		$	716,294		$	2,406,596
Costs and operating expenses:
Cost of sales		221,031			249,546			241,055			299,068			1,010,700
Selling and administrative expenses		134,339			133,208			126,036			141,208			534,791
Research and development expenses		35,060			36,490			34,333			37,072			142,955
Purchased intangibles amortization		2,281			2,264			2,619			2,529			9,693

Total costs and operating expenses		392,711			421,508			404,043			479,877			1,698,139

Operating income		121,151			177,654			173,235			236,417			708,457
Other expense		(525	)		(342	)		(496	)		(2,223	)		(3,586	)
Interest expense		(11,563	)		(11,448	)		(11,456	)		(14,223	)		(48,690	)
Interest income		8,315			5,871			3,455			4,417			22,058

Income before income taxes		117,378			171,735			164,738			224,388			678,239
Provision for income taxes		8,392			27,325			26,605			23,719			86,041

Net income	$	108,986		$	144,410		$	138,133		$	200,669		$	592,198

Net income per basic common share		1.52			2.09			2.09			3.15			8.76
Weighted-average number of basic common shares		71,704			68,989			66,226			63,795			67,627
Net income per diluted common share		1.51			2.08			2.07			3.12			8.69
Weighted-average number of diluted common shares and equivalents		72,415			69,494			66,768			64,348			68,166


	First			Second			Third			Fourth
2018	Quarter			Quarter			Quarter			Quarter			Total
Net sales	$	530,670		$	596,219		$	578,021		$	715,019		$	2,419,929
Costs and operating expenses:
Cost of sales		221,421			243,135			241,139			286,869			992,564
Selling and administrative expenses		130,407			136,645			126,997			142,853			536,902
Research and development expenses		34,480			35,644			35,173			38,106			143,403
Purchased intangibles amortization		1,659			1,602			2,114			2,337			7,712
Litigation provisions		(1,672	)		—			924			322			(426	)

Total costs and operating expenses		386,295			417,026			406,347			470,487			1,680,155

Operating income		144,375			179,193			171,674			244,532			739,774
Other income (expense)		346			(1,828	)		(811	)		(45,501	)		(47,794	)
Interest expense		(13,838	)		(11,692	)		(11,435	)		(11,676	)		(48,641	)
Interest income		9,666			8,888			9,802			10,451			38,807

Income before income taxes		140,549			174,561			169,230			197,806			682,146
Provision for income taxes		28,598			18,884			28,216			12,654			88,352

Net income	$	111,951		$	155,677		$	141,014		$	185,152		$	593,794

Net income per basic common share		1.42			2.00			1.84			2.48			7.71
Weighted-average number of basic common shares		78,883			77,833			76,575			74,802			76,992
Net income per diluted common share		1.40			1.98			1.83			2.46			7.65
Weighted-average number of diluted common shares and equivalents		79,715			78,438			77,136			75,345			77,618

The Company typically experiences an increase in sales in the fourth quarter, as a result of purchasing habits for capital goods of customers that tend to exhaust their spending budgets by calendar year end. Selling and administrative expenses are typically higher after the first quarter in each year as the Company’s annual payroll merit increases take effect. Selling and administrative expenses will vary in the fourth quarter in relation to performance in the quarter and for the year.

In the first quarter of 2018, the Company resolved the case with a final settlement that resulted in a gain of $2 million (see Note 1

). In the fourth quarter of 2018, the Company settled a pension plan obligation and recorded a $46 million charge, which consisted of a $6 million cash contribution to the plan and a $40 million

non-cash

charge related to the reversal of unrecognized actuarial losses recorded in accumulated other comprehensive income in the stockholders’ equity (see Note 1