Quarterly Financial Data (unaudited)

Quarterly results of operations for the years ended December 31, 2017 and 2016 are summarized below:



(in millions, except per share amounts)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
2017
Net sales	$	722.1	$	659.3	$	724.8	$	648.2
Gross profit	286.6		268.6		312.2		273.3
Operating income	59.5		56.6		94.6		77.7
Net income	33.9		24.5		44.6		48.4
Basic earnings per common share	$	0.63	$	0.45	$	0.83	$	0.89
Diluted earnings per common share	$	0.62	$	0.45	$	0.81	$	0.88

2016
Net sales	$	721.0	$	804.4	$	832.4	$	771.1
Gross profit	291.0		336.9		362.1		317.5
Operating income	76.7		100.2		131.1		102.4
Net income	39.6		21.3		77.8		51.9
Basic earnings per common share	$	0.64	$	0.35	$	1.34	$	0.93
Diluted earnings per common share	$	0.63	$	0.35	$	1.32	$	0.92

In the second quarter of 2016, the Company recognized a $47.2 million loss on extinguishment of debt. As described in Note 13, "Income Taxes," during the fourth quarter of 2015, the Company recorded a change in estimate of its uncertain tax positions related to the Danish Tax Matter of approximately $60.7 million. In addition, in the third quarter of 2015 the Company recognized $9.5 million of other income from certain other non-recurring items, including the partial settlement of a legal dispute. In the first quarter of 2017, the Company recorded $25.9 million of net charges related to the termination of the relationship with Mattress Firm. As previously disclosed, in the third quarter of 2017, the Company recorded $11.7 million of charges related to a Latin American subsidiary. In the fourth quarter of 2017, the Company recorded $14.0 million of charges associated with this subsidiary. The Company has revised its financial statements for the fourth quarter of 2016 to record $11.5 million of charges associated with this subsidiary.

The sum of the quarterly earnings per common share amounts may not equal the annual amount reported because per share amounts are computed independently for each quarter and for the full year based on respective weighted-average common shares outstanding and other dilutive potential common shares. The Company’s quarterly operating results fluctuate as a result of seasonal variations in the Company’s business.