Subsequent Event

3 Months Ended

Mar. 31, 2020

Subsequent Event [Abstract]

Subsequent Event

13.  Subsequent Event

On April, 26, 2020 (“Filing Date”), Diamond Offshore and certain of its direct and indirect subsidiaries filed voluntary petitions in the United States Bankruptcy Court for the Southern District of Texas seeking relief under Chapter 11 of the United States Bankruptcy Code. As a result of Diamond Offshore’s filing and applicable U.S. generally accepted accounting principles, Loews Corporation has concluded that it will no longer control Diamond Offshore for accounting purposes, and therefore, Diamond Offshore will be deconsolidated from its consolidated financial statements effective as of the Filing Date.

Through the Filing Date, Diamond Offshore’s results will continue to be consolidated into Loews Corporation’s consolidated financial statements and Loews Corporation will recognize in its earnings its proportionate share of Diamond Offshore’s losses. Following deconsolidation, Loews Corporation will account for its interest in Diamond Offshore using the cost method of accounting and initially record its investment at the estimated fair value on the Filing Date. In connection with the deconsolidation, Loews Corporation expects to record a significant non-cash loss in the second quarter of 2020 to recognize the difference between the carrying value and estimated fair value of its interest in Diamond Offshore as of the Filing Date. The carrying value of Diamond Offshore as of March 31, 2020 is $1.0 billion, net of tax.