Shareholders' Equity

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Shareholders' Equity

7. Shareholders’ Equity

Accumulated other comprehensive income

The tables below display the changes in Accumulated other comprehensive income (“AOCI”) by component for the three and nine months ended September 30, 2014 and 2015:

	OTTI     Gains     (Losses)		Unrealized Gains (Losses) on Investments		Discontinued Operations		Cash Flow   Hedges		Pension   Liability		Foreign   Currency   Translation		Total Accumulated Other Comprehensive Income (Loss)
(In millions)
Balance, July 1, 2014	$	30	$	1,062	$	30	$	(3)	$	(478)	$	166	$	807
Other comprehensive income (loss) before reclassifications, after tax of $(1), $52, $2, $2, $1 and $0		1		(59)		(3)		(4)		(2)		(73)		(140)
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $12, $21, $0, $(2) and $0				(24)		(31)				4				(51)
Other comprehensive income (loss)		1		(83)		(34)		(4)		2		(73)		(191)
Amounts attributable to noncontrolling interests		1		8		4		2				7		22
Balance, September 30, 2014	$	32	$	987	$	-	$	(5)	$	(476)	$	100	$	638
Balance, July 1, 2015	$	28	$	619	$	-	$	(3)	$	(598)	$	7	$	53
Other comprehensive income (loss) before reclassifications, after tax of $(1), $38, $0, $0, $(1) and $0		2		(70)						(1)		(53)		(122)
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $(17), $0, $0, $(2) and $0				31				1		5				37
Other comprehensive income (loss)		2		(39)		-		1		4		(53)		(85)
Amounts attributable to noncontrolling interests				4				(1)		1		5		9
Balance, September 30, 2015	$	30	$	584	$	-	$	(3)	$	(593)	$	(41)	$	(23)

	OTTI     Gains     (Losses)		Unrealized Gains (Losses) on Investments		Discontinued Operations		Cash Flow   Hedges		Pension     Liability		Foreign   Currency   Translation		Total Accumulated Other Comprehensive Income (Loss)
(In millions)
Balance, January 1, 2014	$	23	$	622	$	(3)	$	(4)	$	(432)	$	133	$	339
Transfer to net assets of discontinued operations		(5)		(15)		20								-
Other comprehensive income (loss) before reclassifications, after tax of $(8), $(229), $(3), $(1), $1 and $0		15		462		2		1		(2)		(37)		441
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $20, $16, $1, $24 and $0				(38)		(21)		(2)		(50)				(111)
Other comprehensive income (loss)		15		424		(19)		(1)		(52)		(37)		330
Amounts attributable to noncontrolling interests		(1)		(44)		2				8		4		(31)
Balance, September 30, 2014	$	32	$	987	$	-	$	(5)	$	(476)	$	100	$	638
Balance, January 1, 2015	$	32	$	846	$	-	$	(6)	$	(641)	$	49	$	280
Other comprehensive income (loss) before reclassifications, after tax of $1, $162, $0, $1, $(19) and $0		(3)		(321)				(2)		36		(100)		(390)
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $(22), $0, $(2), $(9) and $0				29				7		15				51
Other comprehensive income (loss)		(3)		(292)		-		5		51		(100)		(339)
Issuance of equity securities by subsidiary										1				1
Amounts attributable to noncontrolling interests		1		30				(2)		(4)		10		35
Balance, September 30, 2015	$	30	$	584	$	-	$	(3)	$	(593)	$	(41)	$	(23)

Amounts reclassified from AOCI shown above are reported in Net income as follows:

Major Category of AOCI	Affected Line Item
OTTI gains (losses)	Investment gains (losses)
Unrealized gains (losses) on investments	Investment gains (losses)
Unrealized gains (losses) and cash flow hedges related to discontinued operations	Discontinued operations, net
Cash flow hedges	Other revenues and Contract drilling expenses
Pension liability	Other operating expenses

Subsidiary Equity Transactions

Loews purchased 1.1 million shares of Diamond Offshore common stock at an aggregate cost of $29 million during the nine months ended September 30, 2015. The Company’s percentage ownership interest in Diamond Offshore increased as a result of these transactions, from 52% to 53%. The Company’s carrying value exceeded the purchase price of the shares, resulting in an increase to Additional paid-in capital (“APIC”) of $5 million.

During the nine months ended September 30, 2015, Boardwalk Pipeline sold 7.1 million common units under an equity distribution agreement with certain broker-dealers and received net proceeds of $115 million, including a $2 million contribution from the Company to maintain its 2% general partner interest. The Company’s percentage ownership interest in Boardwalk Pipeline declined as a result of this transaction, from 53% to 51%. The Company’s carrying value exceeded the issuance price of the common units, resulting in a decrease to APIC of $2 million and an increase to AOCI of $1 million.

Treasury Stock

The Company repurchased 16.3 million and 9.6 million shares of Loews common stock at aggregate costs of $633 million and $415 million during the nine months ended September 30, 2015 and 2014.