		2018 Quarter
$ in millions, except per share data	First		Second		Third		Fourth^2,3
Total non-interest revenues¹	$	10,102	$	9,704	$	8,936	$	7,559
Net interest		975		906		936		989
Net revenues		11,077		10,610		9,872		8,548
Total non-interest expenses¹		7,657		7,501		7,021		6,691
Income from continuing operations
before income taxes		3,420		3,109		2,851		1,857
Provision for income taxes		714		640		696		300
Income from continuing
operations		2,706		2,469		2,155		1,557
Income (loss) from
discontinued operations		(2)		(2)		(1)		1
Net income		2,704		2,467		2,154		1,558
Net income applicable to
noncontrolling interests		36		30		42		27
Net income applicable to
Morgan Stanley	$	2,668	$	2,437	$	2,112	$	1,531
Preferred stock dividends
and other		93		170		93		170
Earnings applicable to
Morgan Stanley
common shareholders	$	2,575	$	2,267	$	2,019	$	1,361
Earnings (loss) per basic common share⁴:
Income from
continuing operations	$	1.48	$	1.32	$	1.19	$	0.81
Income (loss) from
discontinued operations		—		—		—		—
Earnings per basic
common share	$	1.48	$	1.32	$	1.19	$	0.81
Earnings (loss) per diluted common share⁴:
Income from
continuing operations	$	1.46	$	1.30	$	1.17	$	0.80
Income (loss) from
discontinued operations		(0.01)		—		—		—
Earnings per diluted
common share	$	1.45	$	1.30	$	1.17	$	0.80
Dividends declared
per common share	$	0.25	$	0.25	$	0.30	$	0.30
Book value per common share	$	39.19	$	40.34	$	40.67	$	42.20

		2017 Quarter
$ in millions, except per share data	First		Second		Third		Fourth^{2, 3}
Total non-interest revenues	$	8,974	$	8,752	$	8,414	$	8,505
Net interest		771		751		783		995
Net revenues		9,745		9,503		9,197		9,500
Total non-interest expenses		6,937		6,861		6,715		7,029
Income from continuing operations
before income taxes		2,808		2,642		2,482		2,471
Provision for income taxes		815		846		697		1,810
Income from continuing
operations		1,993		1,796		1,785		661
Income (loss) from
discontinued operations		(22)		(5)		6		2
Net income		1,971		1,791		1,791		663
Net income applicable to
noncontrolling interests		41		34		10		20
Net income applicable
to Morgan Stanley	$	1,930	$	1,757	$	1,781	$	643
Preferred stock dividends
and other		90		170		93		170
Earnings applicable
to Morgan Stanley
common shareholders	$	1,840	$	1,587	$	1,688	$	473
Earnings (loss) per basic common share⁴:
Income from
continuing operations	$	1.03	$	0.89	$	0.95	$	0.27
Income (loss) from
discontinued operations		(0.01)		—		—		—
Earnings per basic
common share	$	1.02	$	0.89	$	0.95	$	0.27
Earnings (loss) per diluted common share⁴:
Income from
continuing operations	$	1.01	$	0.87	$	0.93	$	0.26
Income (loss) from
discontinued operations		(0.01)		—		—		—
Earnings per diluted
common share	$	1.00	$	0.87	$	0.93	$	0.26
Dividends declared
per common share	$	0.20	$	0.20	$	0.25	$	0.25
Book value per common share	$	37.48	$	38.22	$	38.87	$	38.52

Effective January 1, 2018, the Firm adopted new accounting guidance related to Revenue from Contracts with Customers, which among other things, requires a gross presentation of certain costs that were previously netted against net revenues. Prior periods have not been restated pursuant to this guidance. For further information on the full impact of adoption of this new accounting guidance, see the following table and Note 21.
The fourth quarter of 2018 included net intermittent discrete tax benefits of $111 million, primarily associated with the remeasurement of reserves and related interest due to the resolution of multi-jurisdiction tax examinations. The fourth quarter of 2017 included net intermittent discrete tax benefits of $168 million, primarily related to the remeasurement of reserves and related interest due to new information regarding the status of multi-year IRS tax examinations. The fourth quarter of 2017 also included an intermittent net discrete tax provision of approximately $1.2 billion, primarily related to the remeasurement of certain net deferred tax assets using the lower corporate tax rate as a result of the enactment of the Tax Act. Income tax consequences arising from conversion of employee share-based awards are excluded from intermittent net discrete tax provisions (benefits), as we anticipate conversion activity each year (see Notes 2 and 20).
Total non-interest revenues includes impairments of the Investment Management business segment’s interest in a third-party asset manager of $46 million in 2018 and $53 million in 2017.
The sum 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.

Quarterly Change in Revenue and Expense as a Result of
Application of the New Revenue Recognition Standard

		2018 Quarter
$ in millions		First		Second		Third		Fourth
Non-interest revenues
Gross presentation impact¹	$	79	$	108	$	93	$	70
Timing impact		4		—		(12)		38
Non-interest expenses
Gross presentation impact¹		79		108		93		70
Net change in revenue
and expense	$	4	$	—	$	(12)	$	38