Note 22. Consolidating Financial Information

The following schedules present the Company’s consolidating balance sheet information at December 31, 2014 and 2013, and consolidating statements of income information for the years ended December 31, 2014, 2013 and 2012. These schedules present the individual subsidiaries of the Company and their contribution to the consolidated 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 and 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

December 31, 2014

CNA
Financial

Diamond
Offshore

Boardwalk
Pipeline

Loews
Hotels

Corporate
and Other

Eliminations

Total

(In millions)

Assets:

Investments

46,262

234

5,461

52,032

Cash

190

141

364

Receivables

7,097

490

128

(56)

7,770

Property, plant and equipment

280

6,949

7,649

671

15,611

Deferred income taxes

222

374

(598)

Goodwill

117

237

374

Investments in capital stocks of subsidiaries

15,974

(15,974)

Other assets

778

307

304

206

1,616

Deferred acquisition costs of insurance subsidiaries

600

Total assets

55,546

8,016

8,326

992

22,101

(16,614)

78,367

Liabilities and Equity:

Insurance reserves

36,380

Payable to brokers

117

551

673

Short term debt

250

335

Long term debt

2,561

1,981

3,690

421

1,680

10,333

Deferred income taxes

514

732

(400)

893

Other liabilities

3,713

792

400

421

(240)

5,103

Total liabilities

42,782

3,542

4,822

559

2,652

(640)

53,717

Total shareholders’ equity

11,457

2,359

1,558

431

19,449

(15,974)

19,280

Noncontrolling interests

1,307

2,115

1,946

5,370

Total equity

12,764

4,474

3,504

433

19,449

(15,974)

24,650

Total liabilities and equity

55,546

8,016

8,326

992

22,101

(16,614)

78,367

Loews Corporation

Consolidating Balance Sheet Information


December 31, 2013	CNA Financial		Diamond Offshore		Boardwalk Pipeline		Loews Hotels		Corporate 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

Year Ended December 31, 2014

CNA
Financial

Diamond
Offshore

Boardwalk
Pipeline

Loews
Hotels

Corporate
and Other

Eliminations

Total

(In millions)

Revenues:

Insurance premiums

7,212

Net investment income

2,067

2,163

Intercompany interest and dividends

782

(782)

Investment gains

Contract drilling revenues

2,737

Other revenues

359

1,235

475

2,159

Total

9,692

2,825

1,236

475

879

(782)

14,325

Expenses:

Insurance claims and policyholders’ benefits

5,591

Amortization of deferred acquisition costs

1,317

Contract drilling expenses

1,524

Other operating expenses

1,386

725

931

440

103

3,585

Interest

183

165

498

Total

8,477

2,311

1,096

454

177

12,515

Income before income tax

1,215

514

140

702

(782)

1,810

Income tax (expense) benefit

(322)

(142

)

(11)

(10

)

(457)

Income from continuing operations

893

372

129

730

(782)

1,353

Discontinued operations, net

(197)

(194)

(391)

Net income

696

372

129

536

(782)

962

Amounts attributable to noncontrolling interests

(71)

(189

)

(111)

(371)

Net income attributable to Loews Corporation

625

183

536

(782)

591

Loews Corporation

Consolidating Statement of Income Information


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

(In millions)

Revenues:

Insurance premiums	$	7,271													$	7,271
Net investment income		2,282	$	1	$	1				$	141					2,425
Intercompany interest and dividends											736		$	(736)		-
Investment gains		16														16
Contract drilling revenues				2,844												2,844
Other revenues		363		81		1,231	$	380			2					2,057

Total		9,932		2,926		1,232		380			879			(736)		14,613


Expenses:

Insurance claims and policyholders’ benefits		5,806														5,806
Amortization of deferred acquisition costs		1,362														1,362
Contract drilling expenses				1,573												1,573
Other operating expenses		1,315		554		828		375			98					3,170
Interest		166		25		163		9			62					425

Total		8,649		2,152		991		384			160			-		12,336

Income (loss) before income tax		1,283		774		241		(4	)		719			(736)		2,277
Income tax (expense) benefit		(363)		(245)		(56)		1			7					(656)

Income (loss) from continuing operations		920		529		185		(3	)		726			(736)		1,621
Discontinued operations, net		22									(574	)				(552)

Net income (loss)		942		529		185		(3	)		152			(736)		1,069
Amounts attributable to noncontrolling interests		(95)		(272)		(107)										(474)

Net income (loss) attributable to Loews Corporation	$	847	$	257	$	78	$	(3	)	$	152		$	(736)	$	595

Loews Corporation

Consolidating Statement of Income Information


Year Ended December 31, 2012	CNA Financial			Diamond Offshore		Boardwalk Pipeline			Loews Hotels			Corporate and Other			Eliminations		Total

(In millions)

Revenues:

Insurance premiums	$	6,881															$	6,881
Net investment income		2,110		$	5				$	1		$	61					2,177
Intercompany interest and dividends													683		$	(683)		-
Investment gains (losses)		51				$	(3)											48
Contract drilling revenues					2,936													2,936
Other revenues		322			131		1,187			396			1			(7)		2,030

Total		9,364			3,072		1,184			397			745			(690)		14,072


Expenses:

Insurance claims and policyholders’ benefits		5,729																5,729
Amortization of deferred acquisition costs		1,274																1,274
Contract drilling expenses					1,537													1,537
Other operating expenses		1,324			572		717			372			106			(7)		3,084
Interest		170			46		166			11			40			(7)		426

Total		8,497			2,155		883			383			146			(14)		12,050

Income before income tax		867			917		301			14			599			(676)		2,022
Income tax (expense) benefit		(242	)		(223)		(70	)		(7	)		29					(513)

Income from continuing operations		625			694		231			7			628			(676)		1,509
Discontinued operations, net		8											(407	)				(399)

Net income		633			694		231			7			221			(676)		1,110
Amounts attributable to noncontrolling interests		(63)			(357)		(122	)										(542)

Net income attributable to Loews Corporation	$	570		$	337	$	109		$	7		$	221		$	(676)	$	568