16. Consolidating Financial Information

The following schedules present the Company’s consolidating balance sheet information at September 30, 2014 and December 31, 2013, and consolidating statements of income information for the three and nine months ended September 30, 2014 and 2013. These schedules present the individual subsidiaries of the Company and their contribution to the Consolidated Condensed Financial Statements. Amounts presented will not necessarily be the same as those in the individual financial statements of the Company’s subsidiaries due to adjustments for purchase accounting, income taxes and noncontrolling interests. In addition, many of the Company’s subsidiaries use a classified balance sheet which also leads to differences in amounts reported for certain line items.

The Corporate and Other column primarily reflects the parent company’s investment in its subsidiaries, invested cash portfolio, corporate long term debt and assets and liabilities of discontinued operations of HighMount. The elimination adjustments are for intercompany assets and liabilities, interest and dividends, the parent company’s investment in capital stocks of subsidiaries, and various reclasses of debit or credit balances to the amounts in consolidation. Purchase accounting adjustments have been pushed down to the appropriate subsidiary.

Loews Corporation

Consolidating Balance Sheet Information

CNA

Diamond

Boardwalk

Loews

Corporate

September 30, 2014

Financial

Offshore

Pipeline

Hotels

and Other

Eliminations

Total

(In millions)

Assets:

Investments

46,320

1,043

5,205

52,644

Cash

247

350

637

Receivables

7,313

543

294

(88)

8,185

Property, plant and equipment

271

6,076

7,391

611

14,411

Deferred income taxes

278

(281)

Goodwill

118

215

353

Investments in capital stocks of subsidiaries

16,779

(16,779)

Other assets

783

329

326

202

1,672

Deferred acquisition costs of insurance subsidiaries

627

Total assets

55,679

8,037

8,023

938

22,986

(17,134)

78,529

Liabilities and Equity:

Insurance reserves

36,095

Payable to brokers

135

524

663

Short term debt

549

250

850

Long term debt

2,559

1,981

3,410

422

1,679

10,051

Deferred income taxes

504

691

(241)

1,030

Other liabilities

3,300

803

418

285

(114)

4,724

Total liabilities

42,676

3,542

4,519

543

2,488

(355)

53,413

Total shareholders’ equity

11,673

2,309

1,561

395

20,498

(16,779)

19,657

Noncontrolling interests

1,330

2,186

1,943

5,459

Total equity

13,003

4,495

3,504

395

20,498

(16,779)

25,116

Total liabilities and equity

55,679

8,037

8,023

938

22,986

(17,134)

78,529

Loews Corporation

Consolidating Balance Sheet Information


	CNA		Diamond		Boardwalk		Loews		Corporate
December 31, 2013	Financial		Offshore		Pipeline		Hotels		and Other		Eliminations		Total

(In millions)

Assets:

Investments	$	46,107	$	2,061			$	43	$	4,734			$	52,945
Cash		195		36	$	29		10		24				294
Receivables		8,666		498		97		28		74	$	(25)		9,338
Property, plant and equipment		282		5,472		7,296		430		44				13,524
Deferred income taxes		244						3				(247)		-
Goodwill		119		20		215		3						357
Assets of discontinued operations										1,678		(637)		1,041
Investments in capital stocks of subsidiaries										17,264		(17,264)		-
Other assets		741		305		360		183		7		39		1,635
Deferred acquisition costs of insurance subsidiaries		624												624
Separate account business		181												181

Total assets	$	57,159	$	8,392	$	7,997	$	700	$	23,825	$	(18,134)	$	79,939


Liabilities and Equity:

Insurance reserves	$	38,394											$	38,394
Payable to brokers		85	$	1					$	48				134
Short term debt		549		250			$	20						819
Long term debt		2,011		2,230	$	3,424		182		1,678				9,525
Deferred income taxes				516		689		41		195	$	(725)		716
Liabilities of discontinued operations										632				632
Other liabilities		3,323		734		427		23		690		(565)		4,632
Separate account business		181												181

Total liabilities		44,543		3,731		4,540		266		3,243		(1,290)		55,033

Total shareholders’ equity		11,354		2,362		1,570		434		20,582		(16,844)		19,458
Noncontrolling interests		1,262		2,299		1,887								5,448

Total equity		12,616		4,661		3,457		434		20,582		(16,844)		24,906

Total liabilities and equity	$	57,159	$	8,392	$	7,997	$	700	$	23,825	$	(18,134)	$	79,939

Loews Corporation

Consolidating Statement of Income Information

CNA

Diamond

Boardwalk

Loews

Corporate

Nine Months Ended September 30, 2014

Financial

Offshore

Pipeline

Hotels

and Other

Eliminations

Total

(In millions)

Revenues:

Insurance premiums

5,427

Net investment income

1,556

1,625

Intercompany interest and dividends

647

(647)

Investment gains

Contract drilling revenues

2,063

Other revenues

266

931

343

1,624

Total

7,314

2,148

931

343

715

(647)

10,804

Expenses:

Insurance claims and policyholders’ benefits

4,241

Amortization of deferred acquisition costs

996

Contract drilling expenses

1,165

Other operating expenses

978

575

705

320

2,634

Interest

138

121

369

Total

6,353

1,786

826

329

111

9,405

Income before income tax

961

362

105

604

(647)

1,399

Income tax (expense) benefit

(268)

(84)

(5)

(6)

(347)

Income from continuing operations

693

278

100

620

(647)

1,052

Discontinued operations, net

(197)

(187)

(384)

Net income

496

278

100

433

(647)

668

Amounts attributable to noncontrolling interests

(50)

(142)

(93)

(285)

Net income attributable to Loews Corporation

446

136

433

$ (647)

383

Loews Corporation

Consolidating Statement of Income Information


	CNA		Diamond		Boardwalk		Loews		Corporate
Nine Months Ended September 30, 2013	Financial		Offshore		Pipeline		Hotels		and Other		Eliminations		Total

(In millions)

Revenues:

Insurance premiums	$	5,389											$	5,389
Net investment income		1,680	$	1					$	58				1,739
Intercompany interest and dividends										547	$	(547)		-
Investment gains		7												7
Contract drilling revenues				2,136										2,136
Other revenues		287		61	$	921	$	290		1				1,560

Total		7,363		2,198		921		290		606		(547)		10,831


Expenses:

Insurance claims and policyholders’ benefits		4,259												4,259
Amortization of deferred acquisition costs		1,004												1,004
Contract drilling expenses				1,164										1,164
Other operating expenses		979		423		573		282		52				2,309
Interest		125		18		122		8		43				316

Total		6,367		1,605		695		290		95		-		9,052

Income before income tax		996		593		226		-		511		(547)		1,779
Income tax (expense) benefit		(290)		(154)		(49)		2		13				(478)

Income from continuing operations		706		439		177		2		524		(547)		1,301
Discontinued operations, net		14								(121)				(107)

Net income		720		439		177		2		403		(547)		1,194
Amounts attributable to noncontrolling interests		(72)		(226)		(103)								(401)

Net income attributable to Loews Corporation	$	648	$	213	$	74	$	2	$	403	$	(547)	$	793