Quarterly Financial Data (Unaudited)

The following tables present select quarterly financial data for 2016 and 2015:



As adjusted for impact of change to FIFO	2016												2015
(in millions, except per share data)	First			Second			Third			Fourth			First			Second			Third			Fourth
Statements of operations:
Net sales	$	427.4		$	457.7		$	349.8		$	378.2		$	406.7		$	477.7		$	438.2		$	543.1
Cost of sales	347.7			370.4			309.0			332.7			329.3			379.9			369.4			454.9
Gross profit	79.7			87.3			40.8			45.5			77.4			97.8			68.8			88.2
Operating income (loss)	0.8			3.9			(134.2		)	(23.8		)	(6.3		)	17.1			(9.3		)	(13.9		)
(Loss) income from continuing operations before taxes	(85.0		)	(4.3		)	(144.2		)	(34.6		)	(30.9		)	(5.1		)	(36.8		)	(38.2		)
Provision (benefit) for taxes on income	107.7			0.7			(5.3		)	(2.6		)	(8.7		)	(0.7		)	(6.4		)	(25.3		)
Loss from continuing operations	(192.7		)	(5.0		)	(138.9		)	(32.0		)	(22.2		)	(4.4		)	(30.4		)	(12.9		)
(Loss) income from discontinued operations, net of income taxes	(3.2		)	(0.8		)	(1.8		)	(1.4		)	15.0			29.6			34.4			56.4
Net (loss) income	(195.9		)	(5.8		)	(140.7		)	(33.4		)	(7.2		)	25.2			4.0			43.5
Basic (loss) income per share:
Loss from continuing operations	$	(1.41	)	$	(0.04	)	$	(1.00	)	$	(0.23	)	$	(0.16	)	$	(0.03	)	$	(0.22	)	$	(0.09	)
(Loss) income from discontinued operations	(0.02		)	(0.01		)	(0.01		)	(0.01		)	0.11			0.22			0.25			0.41
(Loss) income per share	$	(1.43	)	$	(0.04	)	$	(1.02	)	$	(0.24	)	$	(0.05	)	$	0.19		$	0.03		$	0.32
Diluted (loss) income per share:
Loss from continuing operations	$	(1.41	)	$	(0.04	)	$	(1.00	)	$	(0.23	)	$	(0.16	)	$	(0.03	)	$	(0.22	)	$	(0.09	)
(Loss) income from discontinued operations	(0.02		)	(0.01		)	(0.01		)	(0.01		)	0.11			0.22			0.25			0.41
(Loss) income per share	$	(1.43	)	$	(0.04	)	$	(1.02	)	$	(0.24	)	$	(0.05	)	$	0.19		$	0.03		$	0.32
Dividends per common share	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	0.08

Cash flows from operations:
Net (loss) income	$	(195.9	)	$	(5.8	)	$	(140.7	)	$	(33.4	)	$	(7.2	)	$	25.2		$	4.0		$	43.5
Deferred income taxes	110.3			1.1			2.6			(12.6		)	33.9			0.7			0.7			(39.7		)
Change in inventories, net	(33.7		)	(6.2		)	7.5			85.1			(54.3		)	(46.2		)	(6.7		)	100.0



Historical	2016												2015
(in millions, except per share data)	First			Second			Third			Fourth			First			Second			Third			Fourth
Statements of operations:
Net sales	$	427.4		$	457.7		$	349.8		$	378.2		$	406.7		$	477.7		$	438.2		$	543.1
Cost of sales	345.5			369.5			308.3			332.7			331.3			382.8			368.3			454.6
Gross profit	81.9			88.2			41.5			45.5			75.4			94.9			69.9			88.5
Operating income (loss)	3.0			4.8			(133.5		)	(23.8		)	(8.3		)	14.2			(8.2		)	(13.6		)
(Loss) income from continuing operations before taxes	(82.8		)	(3.4		)	(143.5		)	(34.6		)	(32.9		)	(8.0		)	(35.7		)	(37.9		)
Provision (benefit) for taxes on income	121.5			0.7			(5.3		)	(2.6		)	(9.5		)	(1.7		)	(6.1		)	(25.3		)
Loss from continuing operations	(204.3		)	(4.1		)	(138.2		)	(32.0		)	(23.4		)	(6.3		)	(29.6		)	(12.6		)
(Loss) income from discontinued operations, net of income taxes	(3.2		)	(0.8		)	(1.8		)	(1.4		)	15.0			29.6			34.4			56.4
Net (loss) income	(207.5		)	(4.9		)	(140.0		)	(33.4		)	(8.4		)	23.3			4.8			43.8
Basic (loss) income per share:	-195.9			-5.8			-140.7			-21.4			-7.2			25.2			4			43.6
Loss from continuing operations	$	(1.50	)	$	(0.03	)	$	(1.00	)	$	(0.23	)	$	(0.17	)	$	(0.05	)	$	(0.22	)	$	(0.09	)
(Loss) income from discontinued operations	(0.02		)	(0.01		)	(0.01		)	(0.01		)	0.11			0.22			0.25			0.41
(Loss) income per share	$	(1.52	)	$	(0.04	)	$	(1.01	)	$	(0.24	)	$	(0.06	)	$	0.17		$	0.04		$	0.32
Diluted (loss) income per share:
(Loss) income from continuing operations	$	(1.50	)	$	(0.03	)	$	(1.00	)	$	(0.23	)	$	(0.17	)	$	(0.05	)	$	(0.22	)	$	(0.09	)
(Loss) income from discontinued operations	(0.02		)	(0.01		)	(0.01		)	(0.01		)	0.11			0.22			0.25			0.41
(Loss) income per share	$	(1.52	)	$	(0.04	)	$	(1.01	)	$	(0.24	)	$	(0.06	)	$	0.17		$	0.04		$	0.32
Dividends per common share	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	0.08

Cash flows from operations:
Net (loss) income	$	(207.5	)	$	(4.9	)	$	(140.0	)	$	(33.4	)	$	(8.4	)	$	23.3		$	4.8		$	43.8
Deferred income taxes	124.1			1.1			2.6			(12.6		)	33.1			(0.3		)	1.0			(39.7		)
Change in inventories, net	(35.9		)	(7.1		)	6.8			85.1			(52.3		)	(43.3		)	(7.8		)	99.7

As discussed in Note 6, “Inventories,” in the fourth quarter of 2016, the Company changed its method of inventory costing for certain inventory to the FIFO method from the LIFO method. The Company applied this change in method of inventory costing by retrospectively adjusting the prior period financial statements. The tables above present selected financial information “as adjusted for impact of change to FIFO” and “historical.” Historical represents the results of operations prior to the change to FIFO, but after the classification of MFS to discontinued operations and adjustments to the annual periods discussed in Note 1 and adjustments to quarterly periods discussed in the paragraph below.

During the second quarter of 2016, the Company identified two adjustments to the previously issued financial statements for the three months ended March 31, 2016. In evaluating whether the Company’s previously issued consolidated financial statements were materially misstated, the Company considered the guidance in Accounting Standards Codification (“ASC”) Topic 250, “Accounting Changes and Error Corrections” and ASC Topic 250-10-S99-1, “Assessing Materiality.” The Company determined that these errors were not material to the Company's prior interim period consolidated financial statements and therefore, amending the previously filed report was not required. However, the Company determined that the impact of the corrections would be too significant to record within the second quarter of 2016. As such, the revision for the corrections is reflected in the financial information of the first quarter of 2016 and 2015, as applicable. The adjustments are as follows:

•

Adjustment related to accumulated other comprehensive loss (“AOCL”), whereby the Company had understated loss on debt extinguishment by $4.3 million, overstated income tax expense by $0.8 million, and understated loss from continuing operations by $3.5 million in the first quarter of 2016. The adjustment also resulted in an overstatement of AOCL and understatement of retained earnings by $2.6 million as of March 31, 2016.


•	Adjustment related to the classification of income tax expense between continuing operations and discontinued operations in the three months ended March 31, 2015, whereby the Company had understated the benefit for taxes on continuing operations and understated the income tax provision on discontinued operations by $2.1 million.

During the fourth quarter of 2016, the Company identified an adjustment to the previously issued financial statements for the three months ended March 31, 2016, six months ended June 30, 2016, and nine months ended September 30, 2016, related to a non-cash reclassification between continuing and discontinued operations with the operating section of the Statement of Cash Flows in the three months ended March 31, 2016, whereby the change in accrued expenses and other liabilities and net cash used for operating activities of continuing operations was understated by $16.2 million, and the net cash used for operating activities of discontinued operating activities was overstated by $16.2 million. In evaluating whether the Company’s previously issued consolidated financial statements were materially misstated, the Company considered the guidance in Accounting Standards Codification (“ASC”) Topic 250, “Accounting Changes and Error Corrections” and ASC Topic 250-10-S99-1, “Assessing Materiality.” The Company determined that these errors were not material to the Company's prior interim period consolidated financial statements and therefore, amending the previously filed reports was not required.