Date of Report (Date of earliest event reported)
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February 9, 2015
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LOEWS CORPORATION
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Delaware
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1-6541
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13-2646102
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(State or other jurisdiction
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(Commission
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(I.R.S. Employer
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of incorporation)
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File Number)
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Identification No.)
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667 Madison Avenue, New York, N.Y.
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10065-8087
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code:
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(212) 521-2000
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NOT APPLICABLE
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(Former name or former address, if changed since last report.)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition.
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Item 9.01
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Financial Statements and Exhibits.
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(a)
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Not applicable.
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(b)
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Not applicable.
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(c)
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Exhibit:
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Exhibit Reference
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Number
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Exhibit Description
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99.1
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Loews Corporation press release, issued February 9, 2015, providing information on its results of operations for the fourth quarter and year ended December 31, 2014.
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LOEWS CORPORATION
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(Registrant)
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Dated: February 9, 2015
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By:
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/s/ Gary W. Garson
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Gary W. Garson
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Senior Vice President
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General Counsel
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and Secretary
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Contact:
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David B. Edelson
Chief Financial Officer
(212) 521-2439
Mary Skafidas
Investor and Public Relations
(212) 521-2788
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December 31,
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Three Months
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Years Ended
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(In millions, except per share data)
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2014
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2013
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2014
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2013
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Income before net investment gains (losses)
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$ | 222 | $ | 243 | $ | 930 | $ | 1,139 | ||||||||
Net investment gains (losses)
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(7 | ) | 5 | 32 | 10 | |||||||||||
Income from continuing operations
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215 | 248 | 962 | 1,149 | ||||||||||||
Discontinued operations, net
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(7 | ) | (446 | ) | (371 | ) | (554 | ) | ||||||||
Net income (loss) attributable to Loews Corporation
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$ | 208 | $ | (198 | ) | $ | 591 | $ | 595 | |||||||
Net income (loss) per share:
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Income from continuing operations
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$ | 0.57 | $ | 0.64 | $ | 2.52 | $ | 2.95 | ||||||||
Discontinued operations, net
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(0.02 | ) | (1.15 | ) | (0.97 | ) | (1.42 | ) | ||||||||
Net income (loss) per share
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$ | 0.55 | $ | (0.51 | ) | $ | 1.55 | $ | 1.53 |
December 31,
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2014
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2013
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Book value per share
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$ | 51.70 | $ | 50.25 | ||||
Book value per share excluding AOCI
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50.95 | 49.38 |
December 31,
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(In millions)
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Three Months
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Years Ended
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2014
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2013
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2014
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2013
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Revenues:
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CNA Financial
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$ | 2,389 | $ | 2,560 | $ | 9,638 | $ | 9,916 | ||||||||
Diamond Offshore
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677 | 728 | 2,825 | 2,926 | ||||||||||||
Boardwalk Pipeline
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305 | 311 | 1,236 | 1,232 | ||||||||||||
Loews Hotels
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132 | 90 | 475 | 380 | ||||||||||||
Investment income and other
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29 | 84 | 97 | 143 | ||||||||||||
3,532 | 3,773 | 14,271 | 14,597 | |||||||||||||
Investment gains (losses) – CNA Financial
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(11 | ) | 9 | 54 | 16 | |||||||||||
Total
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$ | 3,521 | $ | 3,782 | $ | 14,325 | $ | 14,613 | ||||||||
Income (Loss) Before Income Tax:
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CNA Financial (a) (b)
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$ | 265 | $ | 278 | $ | 1,161 | $ | 1,267 | ||||||||
Diamond Offshore (c)
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152 | 181 | 514 | 774 | ||||||||||||
Boardwalk Pipeline (d) (e)
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35 | 15 | 140 | 241 | ||||||||||||
Loews Hotels
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7 | (4 | ) | 21 | (4 | ) | ||||||||||
Investment income, net
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26 | 83 | 94 | 141 | ||||||||||||
Other (f)
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(63 | ) | (64 | ) | (174 | ) | (158 | ) | ||||||||
422 | 489 | 1,756 | 2,261 | |||||||||||||
Investment gains (losses) – CNA Financial
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(11 | ) | 9 | 54 | 16 | |||||||||||
Total
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$ | 411 | $ | 498 | $ | 1,810 | $ | 2,277 | ||||||||
Net Income (Loss) Attributable to Loews Corporation:
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CNA Financial (a) (b)
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$ | 186 | $ | 187 | $ | 770 | $ | 817 | ||||||||
Diamond Offshore (c)
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47 | 44 | 183 | 257 | ||||||||||||
Boardwalk Pipeline (d) (e)
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11 | 4 | 18 | 78 | ||||||||||||
Loews Hotels
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3 | (5 | ) | 11 | (3 | ) | ||||||||||
Investment income, net
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17 | 54 | 63 | 93 | ||||||||||||
Other (f)
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(42 | ) | (41 | ) | (115 | ) | (103 | ) | ||||||||
222 | 243 | 930 | 1,139 | |||||||||||||
Investment gains (losses) – CNA Financial
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(7 | ) | 5 | 32 | 10 | |||||||||||
Income from continuing operations
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215 | 248 | 962 | 1,149 | ||||||||||||
Discontinued operations, net (g)
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(7 | ) | (446 | ) | (371 | ) | (554 | ) | ||||||||
Net income (loss) attributable to Loews Corporation
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$ | 208 | $ | (198 | ) | $ | 591 | $ | 595 |
(a)
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Includes a charge of $84 million ($49 million after tax and noncontrolling interests) for the three months and year ended December 31, 2014 related to a lump sum pension plan settlement and for the year ended December 31, 2014, an $86 million curtailment gain ($50 million after tax and noncontrolling interests) related to a negative plan amendment and the re-measurement of postretirement benefit obligations.
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(b)
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Includes a charge of $189 million ($111 million after tax and noncontrolling interests) for the three months and year ended December 31, 2013, related to retroactive reinsurance accounting for the Loss Portfolio Transfer.
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(c)
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Includes an impairment charge of $109 million ($55 million after tax and noncontrolling interests) for the year ended December 31, 2014 related to the carrying value of six semisubmersible rigs.
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(d)
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Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the year ended December 31, 2014 to write off all previously capitalized costs incurred related to the Bluegrass project.
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(e)
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Includes a goodwill impairment charge of $52 million ($16 million after tax and noncontrolling interests) for the three months and year ended December 31, 2013.
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(f)
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Consists primarily of corporate interest expense and other unallocated expenses.
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(g)
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See table on page seven for a summary of items comprising discontinued operations for the respective periods.
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December 31,
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(In millions, except per share data)
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Three Months
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Years Ended
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2014
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2013
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2014
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2013
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Revenues:
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Insurance premiums
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$ | 1,785 | $ | 1,882 | $ | 7,212 | $ | 7,271 | ||||||||
Net investment income
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538 | 686 | 2,163 | 2,425 | ||||||||||||
Investment gains (losses)
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(11 | ) | 9 | 54 | 16 | |||||||||||
Contract drilling revenues
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674 | 708 | 2,737 | 2,844 | ||||||||||||
Other
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535 | 497 | 2,159 | 2,057 | ||||||||||||
Total
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3,521 | 3,782 | 14,325 | 14,613 | ||||||||||||
Expenses:
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Insurance claims and policyholders’ benefits (a)
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1,350 | 1,547 | 5,591 | 5,806 | ||||||||||||
Contract drilling expenses
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359 | 409 | 1,524 | 1,573 | ||||||||||||
Other (b) (c) (d) (e)
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1,401 | 1,328 | 5,400 | 4,957 | ||||||||||||
Total
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3,110 | 3,284 | 12,515 | 12,336 | ||||||||||||
Income before income tax
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411 | 498 | 1,810 | 2,277 | ||||||||||||
Income tax expense
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(110 | ) | (178 | ) | (457 | ) | (656 | ) | ||||||||
Income from continuing operations
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301 | 320 | 1,353 | 1,621 | ||||||||||||
Discontinued operations, net of income tax
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(7 | ) | (445 | ) | (391 | ) | (552 | ) | ||||||||
Net income (loss)
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294 | (125 | ) | 962 | 1,069 | |||||||||||
Amounts attributable to noncontrolling interests
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(86 | ) | (73 | ) | (371 | ) | (474 | ) | ||||||||
Net income (loss) attributable to Loews Corporation
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$ | 208 | $ | (198 | ) | $ | 591 | $ | 595 | |||||||
Net income (loss) attributable to Loews Corporation:
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Income from continuing operations
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$ | 215 | $ | 248 | $ | 962 | $ | 1,149 | ||||||||
Discontinued operations, net (f)
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(7 | ) | (446 | ) | (371 | ) | (554 | ) | ||||||||
Net income (loss)
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$ | 208 | $ | (198 | ) | $ | 591 | $ | 595 | |||||||
Diluted income per share:
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Income from continuing operations
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$ | 0.57 | $ | 0.64 | $ | 2.52 | $ | 2.95 | ||||||||
Discontinued operations, net
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(0.02 | ) | (1.15 | ) | (0.97 | ) | (1.42 | ) | ||||||||
Diluted income (loss) per share attributable to Loews
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Corporation
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$ | 0.55 | $ | (0.51 | ) | $ | 1.55 | $ | 1.53 | |||||||
Weighted diluted number of shares
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374.71 | 387.19 | 382.55 | 389.51 |
(a)
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Includes a charge of $189 million ($111 million after tax and noncontrolling interests) for the three months and year ended December 31, 2013, related to retroactive reinsurance accounting for the Loss Portfolio Transfer.
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(b)
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Includes a charge of $84 million ($49 million after tax and noncontrolling interests) for the three months and year ended December 31, 2014 related to a lump sum pension plan settlement and for the year ended December 31, 2014, an $86 million curtailment gain ($50 million after tax and noncontrolling interests) related to a negative plan amendment and the re-measurement of postretirement benefit obligations.
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(c)
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Includes an impairment charge of $109 million ($55 million after tax and noncontrolling interests) for the year ended December 31, 2014 related to the carrying value of six semisubmersible rigs.
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(d)
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Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the year ended December 31, 2014 to write off all previously capitalized costs incurred related to the Bluegrass project.
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(e)
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Includes a goodwill impairment charge of $52 million ($16 million after tax and noncontrolling interests) for the three months and year ended December 31, 2013.
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(f)
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See table on page seven for a summary of items comprising discontinued operations for the respective periods.
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December 31,
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||||||||||||||||
(In millions)
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Three Months
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Years Ended
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2014
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2013
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2014
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2013
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CNA Financial
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Continental Assurance Company (“CAC”) operations
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$ | 7 | $ | 12 | $ | 20 | ||||||||||
Impairment loss on sale of CAC
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(189 | ) | ||||||||||||||
CNA Financial – Discontinued operations, net
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7 | (177 | ) | 20 | ||||||||||||
HighMount
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Operations
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$ | (6 | ) | 3 | (37 | ) | 16 | |||||||||
Goodwill impairment
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(382 | ) | (382 | ) | ||||||||||||
Ceiling test impairment
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(52 | ) | (19 | ) | (186 | ) | ||||||||||
Impairment loss on gathering pipelines
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(22 | ) | (22 | ) | ||||||||||||
Loss from operations
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(6 | ) | (453 | ) | (56 | ) | (574 | ) | ||||||||
Impairment loss on sale
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(1 | ) | (138 | ) | ||||||||||||
HighMount – Discontinued operations, net
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(7 | ) | (453 | ) | (194 | ) | (574 | ) | ||||||||
Discontinued operations, net
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$ | (7 | ) | $ | (446 | ) | $ | (371 | ) | $ | (554 | ) |
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