24. Quarterly Results (unaudited).
| 2013 Quarter | 2012 Quarter | ||||||||||||||||||
| First | Second | Third | Fourth(1) | First | Second(2) | Third(3) | Fourth(3) | ||||||||||||
| (dollars in millions, except per share data) | |||||||||||||||||||
| Total non-interest revenues | $ | 7,972 | $ | 8,297 | $ | 7,822 | $ | 7,548 | $ | 6,981 | $ | 7,100 | $ | 5,436 | $ | 6,790 | |||
| Net interest | 182 | 204 | 110 | 282 | (59) | (161) | (158) | 173 | |||||||||||
| Net revenues | 8,154 | 8,501 | 7,932 | 7,830 | 6,922 | 6,939 | 5,278 | 6,963 | |||||||||||
| Total non-interest expenses | 6,572 | 6,725 | 6,591 | 8,047 | 6,719 | 6,001 | 6,760 | 6,102 | |||||||||||
| Income (loss) from continuing operations before | |||||||||||||||||||
| income taxes | 1,582 | 1,776 | 1,341 | (217) | 203 | 938 | (1,482) | 861 | |||||||||||
| Provision for (benefit from) income taxes | 332 | 556 | 339 | (401) | 54 | 225 | (525) | 9 | |||||||||||
| Income (loss) from continuing operations | 1,250 | 1,220 | 1,002 | 184 | 149 | 713 | (957) | 852 | |||||||||||
| Discontinued operations(4): | |||||||||||||||||||
| Gain (loss) from discontinued operations | (30) | (42) | 14 | (14) | 27 | 51 | (13) | (113) | |||||||||||
| Provision for (benefit from) income taxes | (11) | (13) | (2) | (3) | 42 | 14 | (14) | (49) | |||||||||||
| Net gain (loss) from discontinued operations | (19) | (29) | 16 | (11) | (15) | 37 | 1 | (64) | |||||||||||
| Net income (loss) | 1,231 | 1,191 | 1,018 | 173 | 134 | 750 | (956) | 788 | |||||||||||
| Net income applicable to redeemable noncontrolling | |||||||||||||||||||
| interests | 122 | 100 | — | — | — | — | 8 | 116 | |||||||||||
| Net income applicable to nonredeemable noncontrolling | |||||||||||||||||||
| interests | 147 | 111 | 112 | 89 | 228 | 159 | 59 | 78 | |||||||||||
| Net income (loss) applicable to Morgan Stanley | $ | 962 | $ | 980 | $ | 906 | $ | 84 | $ | (94) | $ | 591 | $ | (1,023) | $ | 594 | |||
| Preferred stock dividends | 26 | 177 | 26 | 48 | 25 | 27 | 24 | 26 | |||||||||||
| Earnings (loss) applicable to Morgan Stanley common | |||||||||||||||||||
| shareholders | $ | 936 | $ | 803 | $ | 880 | $ | 36 | $ | (119) | $ | 564 | $ | (1,047) | $ | 568 | |||
| Earnings (loss) per basic common share(5): | |||||||||||||||||||
| Income (loss) from continuing operations | $ | 0.50 | $ | 0.44 | $ | 0.45 | $ | 0.02 | $ | (0.05) | $ | 0.28 | $ | (0.55) | $ | 0.34 | |||
| Net gain (loss) from discontinued operations | (0.01) | (0.02) | 0.01 | — | (0.01) | 0.02 | — | (0.04) | |||||||||||
| Earnings (loss) per basic common share | $ | 0.49 | $ | 0.42 | $ | 0.46 | $ | 0.02 | $ | (0.06) | $ | 0.30 | $ | (0.55) | $ | 0.30 | |||
| Earnings (loss) per diluted common share(5): | |||||||||||||||||||
| Income (loss) from continuing operations | $ | 0.49 | $ | 0.43 | $ | 0.44 | $ | 0.02 | $ | (0.05) | $ | 0.28 | $ | (0.55) | $ | 0.33 | |||
| Net gain (loss) from discontinued operations | (0.01) | (0.02) | 0.01 | — | (0.01) | 0.01 | — | (0.04) | |||||||||||
| Earnings (loss) per diluted common share | $ | 0.48 | $ | 0.41 | $ | 0.45 | $ | 0.02 | $ | (0.06) | $ | 0.29 | $ | (0.55) | $ | 0.29 | |||
| Dividends declared per common share | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | |||
| Book value per common share | $ | 31.21 | $ | 31.48 | $ | 32.13 | $ | 32.24 | $ | 30.74 | $ | 31.02 | $ | 30.53 | $ | 30.70 | |||
(1) The fourth quarter of 2013 included a discrete tax benefit of $192 million, consisting of $100 million related to remeasurement of reserves and related interest and $92 million related to the establishment of a previously unrecognized deferred tax asset associated with the reorganization of certain non-U.S. legal entities (see Note 20). The fourth quarter of 2013 included litigation expenses of $1.4 billion related to settlements and reserve additions (see Note 13).
(2) The second quarter of 2012 included an out-of-period pre-tax gain of approximately $300 million related to the reversal of amounts recorded in cumulative other comprehensive income due to the incorrect application of hedge accounting on certain derivative contracts previously designated as net investment hedges of certain foreign, non-U.S. dollar denominated subsidiaries. This amount included a pre-tax gain of approximately $191 million related to the first quarter of 2012, with the remainder impacting prior periods (see Note 12).
(3) The third quarter of 2012 included an out-of-period net tax provision of $82 million primarily related to the overstatement of tax benefits associated with repatriated earnings of a foreign subsidiary in prior periods, while the fourth quarter of 2012 included an out-of-period net tax provision of $75 million primarily related to the overstatement of deferred tax assets associated with partnership investments in prior periods (see Note 20).
(4) See Note 1 for more information on discontinued operations.
(5) Summation of the quarters' earnings per common share may not equal the annual amounts due to the averaging effect of the number of shares and share equivalents throughout the year.