QUARTERLY FINANCIAL PERFORMANCE 2013 2012 FOR THE THREE MONTHS ENDED (MILLIONS EXCEPT PER SHARE AMOUNTS) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Total revenues and other gains  $ 5,537 $ 5,176 $ 5,166 $ 4,951 $ 5,641 $ 4,661 $ 4,425 $ 4,039 Direct costs  (3,672) (3,230) (3,606) (3,420) (4,393) (3,420) (3,284) (2,864) Other income  — 525 — — — — — — Equity accounted income  75 194 224 266 338 254 257 388 Expenses Interest  (613) (617) (668) (655) (638) (593) (614) (655) Corporate costs  (36) (36) (36) (44) (40) (41) (35) (42) Fair value changes  33 104 465 61 415 495 (100) 343 Depreciation and amortization  (360) (357) (373) (365) (352) (327) (287) (297) Income taxes  (114) (264) (370) (97) (192) (154) 17 (190) Net income  $ 850 $ 1,495 $ 802 $ 697 $ 779 $ 875 $ 379 $ 722 Net income for shareholders  $ 717 $ 813 $ 230 $ 360 $ 492 $ 334 $ 138 $ 416 Per share  - diluted  $ 1.08 $ 1.23 $ 0.31 $ 0.51 $ 0.72 $ 0.48 $ 0.17 $ 0.60 - basic  $ 1.11 $ 1.26 $ 0.31 $ 0.52 $ 0.74 $ 0.49 $ 0.17 $ 0.63 Our condensed statement of operations for the eight most recent quarters are as follows: Summary of Quarterly Results The company’s quarterly results vary primarily due to the impact of seasonality on our operations, fair value changes recognized  on our consolidated assets as well as fair value changes recorded within equity accounted income, the impact of acquisitions or  dispositions of assets or businesses, and fluctuations in foreign currency exchange rates on non-U.S. operations. The timing and  amount of realized disposition gains and losses also impacts our consolidated results. Fee revenues generated within our asset management operations are contractual in nature and have increased over the past eight  quarters due to higher amounts of fee bearing capital. In the fourth quarter of 2013 we earned a carried interest distribution of  $558 million on the reorganization of the consortium that acquired our U.S. shopping mall business.  Our property operations generate consistent results on a quarterly basis due to the long-term nature of contractual lease  arrangements subject to the intermittent recognition of disposition and lease termination gains. Water flows and pricing within our renewable energy operations are seasonal in nature. During the fall rainy season and spring  thaw, water inflows tend to be the highest leading to higher generation; however prices tend not to be as strong as they are in the  summer and winter seasons due to the more moderate weather conditions during the fall and spring and associated reductions in  demand for electricity. Our infrastructure operations are generally stable in nature, as a result of the long-term sales and volumes contracts with our  clients. Our private equity operations tend to fluctuate on a quarterly basis as a result of certain of the underlying investments having  seasonal operations as well as the timing of acquisitions and dispositions of operations. We disposed of a pulp and paper business  within our private equity operations during the third quarter of 2013 and recognized $664 million of revenue on disposition.  Our residential development operations include our North American and Brazilian residential developers, which tend to be  seasonal in nature, with the fourth quarter typically the strongest as most of the construction is completed and homes are  delivered.  Our construction business line is seasonal in nature and revenues are typically higher in the third and fourth quarters compared  to the first half of the year, as weather conditions are more favourable in the latter half of the year. The third quarter of 2013 includes other income of $525 million on the settlement of a swap agreement which more than offset  the seasonal reduction in renewable energy revenues.  We generally finance our operations with long-dated fixed-rate borrowings which results in interest expense being relatively  consistent on a quarterly basis. The amount and timing of fair value changes vary on a quarterly basis depending on changes in the fair value of our assets  which are recorded at fair value in net income. Most of these relate to our commercial office portfolios, which have benefitted  2013 ANNUAL REPORT 31