Shareholders' Equity

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Shareholders' Equity

Note 12. Shareholders’ Equity

Accumulated other comprehensive income

The tables below display the changes in Accumulated other comprehensive income (“AOCI”) by component for the years ended December 31, 2013, 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, January 1, 2013		$	18			$	1,233			$	20			$	(4	)		$	(732	)		$	143			$	678
Other comprehensive income (loss) before reclassifications, after tax of $(3), $354, $3, $4, $(165) and $0			6				(658	)			(6	)			(6	)			307				(11	)			(368	)
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $10, $10, $(2), $(12) and $0							(21	)			(17	)			6				22								(10	)
Other comprehensive income (loss)			6				(679	)			(23	)			-				329				(11	)			(378	)
Issuance of equity securities by subsidiary																			2								2
Amounts attributable to noncontrolling interests			(1	)			68												(31	)			1				37
Balance, December 31, 2013			23				622				(3	)			(4	)			(432	)			133				339
Sale of subsidiaries			(5	)			(15	)			20																-
Other comprehensive income (loss) before reclassifications, after tax of $(8), $(132), $(3), $1, $132 and $0			15				295				2				(2	)			(244	)			(94	)			(28	)
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $10, $16, $0, $(7) and $0							(28	)			(21	)			(1	)			9								(41	)
Other comprehensive income (loss)			15				267				(19	)			(3	)			(235	)			(94	)			(69	)
Amounts attributable to noncontrolling interests			(1	)			(28	)			2				1				26				10				10
Balance, December 31, 2014			32				846				-				(6	)			(641	)			49				280
Other comprehensive loss before reclassifications, after tax of $13, $313, $0, $1, $16 and $0			(23	)			(600	)							(2	)			(31	)			(139	)			(795	)
Reclassification of losses from accumulated other comprehensive income, after tax of $(8), $(31), $0, $(2), $(11) and $0			14				43								7				13								77
Other comprehensive income (loss)			(9	)			(557	)			-				5				(18	)			(139	)			(718	)
Issuance of equity securities by subsidiary																			1								1
Amounts attributable to noncontrolling interests			1				58								(2	)			9				14				80
Balance, December 31, 2015		$	24			$	347			$	-			$	(3	)		$	(649	)		$	(76	)		$	(357	)

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

Common Stock Dividends

Dividends of $0.25 per share on the Company’s common stock were declared and paid in 2015, 2014 and 2013.

There are no restrictions on the Company’s retained earnings or net income with regard to payment of dividends. However, as a holding company, Loews relies upon invested cash balances and distributions from its subsidiaries to generate the funds necessary to declare and pay any dividends to holders of its common stock. The ability of the Company’s subsidiaries to pay dividends is subject to, among other things, the availability of sufficient earnings and funds in such subsidiaries, compliance with covenants in their respective loan agreements and applicable state laws, including in the case of the insurance subsidiaries of CNA, laws and rules governing the payment of dividends by regulated insurance companies. See Note 13 for a discussion of the regulatory restrictions on CNA’s availability to pay dividends.

Subsidiary Equity Transactions

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

Boardwalk Pipeline sold 7.1 million common units under an equity distribution agreement with certain broker-dealers during 2015 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 33.3 million, 14.6 million and 4.9 million shares of its common stock at aggregate costs of $1.3 billion, $622 million and $218 million during the years ended December 31, 2015, 2014 and 2013. As of December 31, 2015 all outstanding treasury stock was retired. Upon retirement, treasury stock was eliminated through a reduction to common stock, APIC and retained earnings.