Date of report:
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October 31, 2011
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(Date of earliest event reported):
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October 31, 2011
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LOEWS CORPORATION
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Delaware
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1-6541
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13-2646102
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(State or other jurisdiction of
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(Commission
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(I.R.S. Employer
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incorporation or organization)
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File Number)
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Identification No.)
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667 Madison Avenue, New York, N.Y.
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10065-8068
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code:
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(212) 521-2000
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NOT APPLICABLE
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(Former name or former address, if changed since last report.)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition.
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Item 9.01
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Financial Statements and Exhibits.
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(a)
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Not applicable.
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(b)
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Not applicable.
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(c)
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Exhibit:
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Exhibit Reference
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Number
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Exhibit Description
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99.1
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Loews Corporation press release, issued October 31, 2011, providing information on its results of operations for the third quarter of 2011.
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LOEWS CORPORATION
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(Registrant)
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Dated: October 31, 2011
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By:
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/s/ Gary W. Garson
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Gary W. Garson
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Senior Vice President
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General Counsel
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and Secretary
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Contact:
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Peter W. Keegan
Chief Financial Officer
(212) 521-2950
Darren Daugherty
Investor Relations
(212) 521-2788
Candace Leeds
Public Affairs
(212) 521-2416
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September 30, | ||||||||||||||||
Three Months
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Nine Months
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(In millions, except per share data)
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2011
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2010
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2011
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2010
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Net income attributable to Loews Corporation:
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Income before net investment gains (losses) (a)
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$ | 177 | $ | 19 | $ | 787 | $ | 792 | ||||||||
Net investment gains (losses)
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(15 | ) | 37 | 9 | 49 | |||||||||||
Income from continuing operations
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162 | 56 | 796 | 841 | ||||||||||||
Discontinued operations, net (a)
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(20 | ) | (19 | ) | ||||||||||||
Net income attributable to Loews Corporation
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$ | 162 | $ | 36 | $ | 796 | $ | 822 | ||||||||
Net income per share:
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Income from continuing operations
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$ | 0.40 | $ | 0.13 | $ | 1.95 | $ | 2.00 | ||||||||
Discontinued operations, net
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(0.04 | ) | (0.04 | ) | ||||||||||||
Net income per share
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$ | 0.40 | $ | 0.09 | $ | 1.95 | $ | 1.96 | ||||||||
Book value per share at:
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September 30, 2011
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$ | 47.75 | ||||||||||||||
December 31, 2010
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$ | 44.51 |
(a)
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Includes losses of $309 million (after tax and noncontrolling interests) in continuing operations and $19 million (after tax and noncontrolling interests) in discontinued operations for the three and nine months ended September 30, 2010 related to CNA’s Loss Portfolio Transfer transaction.
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September 30,
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Three Months
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Nine Months
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2011
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2010
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2011
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2010
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(In millions, except per share data)
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Revenues:
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Insurance premiums
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$ | 1,732 | $ | 1,645 | $ | 4,942 | $ | 4,868 | ||||||||
Net investment income
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333 | 654 | 1,513 | 1,797 | ||||||||||||
Investment gains (losses)
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(27 | ) | 62 | 15 | 94 | |||||||||||
Contract drilling revenues
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861 | 749 | 2,520 | 2,405 | ||||||||||||
Other
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539 | 591 | 1,658 | 1,736 | ||||||||||||
Total
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3,438 | 3,701 | 10,648 | 10,900 | ||||||||||||
Expenses:
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Insurance claims & policyholders’ benefits
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1,400 | 1,343 | 4,131 | 3,798 | ||||||||||||
Contract drilling expenses
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392 | 351 | 1,142 | 1,009 | ||||||||||||
Other (a)
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1,207 | 1,749 | 3,624 | 4,136 | ||||||||||||
Total
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2,999 | 3,443 | 8,897 | 8,943 | ||||||||||||
Income before income tax
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439 | 258 | 1,751 | 1,957 | ||||||||||||
Income tax expense
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(124 | ) | (84 | ) | (464 | ) | (619 | ) | ||||||||
Income from continuing operations
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315 | 174 | 1,287 | 1,338 | ||||||||||||
Discontinued operations, net
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(22 | ) | (21 | ) | ||||||||||||
Net income
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315 | 152 | 1,287 | 1,317 | ||||||||||||
Amounts attributable to noncontrolling interests
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(153 | ) | (116 | ) | (491 | ) | (495 | ) | ||||||||
Net income attributable to Loews Corporation
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162 | 36 | 796 | 822 | ||||||||||||
Net income attributable to Loews Corporation:
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Income from continuing operations
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$ | 162 | $ | 56 | $ | 796 | $ | 841 | ||||||||
Discontinued operations, net (a)
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(20 | ) | (19 | ) | ||||||||||||
Net income attributable to Loews Corporation
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$ | 162 | $ | 36 | $ | 796 | $ | 822 | ||||||||
Income per share attributable to Loews Corporation:
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Income from continuing operations
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$ | 0.40 | $ | 0.13 | $ | 1.95 | $ | 2.00 | ||||||||
Discontinued operations, net
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(0.04 | ) | (0.04 | ) | ||||||||||||
Diluted income per share attributable to Loews Corporation
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$ | 0.40 | $ | 0.09 | $ | 1.95 | $ | 1.96 | ||||||||
Weighted diluted number of shares
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401.73 | 418.47 | 408.05 | 420.47 |
(a)
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Includes a loss of $529 million ($309 million after tax and noncontrolling interests) and a $19 million loss from discontinued operations for the three and nine months ended September 30, 2010 related to CNA’s transfer of legacy asbestos and environmental pollution liabilities to National Indemnity Company (“NICO”).
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September 30,
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Three Months
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Nine Months
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2011
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2010
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2011
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2010
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(In millions)
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Revenues:
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CNA Financial
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$ | 2,203 | $ | 2,301 | $ | 6,688 | $ | 6,786 | ||||||||
Diamond Offshore
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881 | 833 | 2,582 | 2,518 | ||||||||||||
HighMount
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95 | 98 | 297 | 351 | ||||||||||||
Boardwalk Pipeline
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269 | 264 | 843 | 821 | ||||||||||||
Loews Hotels
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82 | 74 | 251 | 230 | ||||||||||||
Investment income (loss) and other
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(65 | ) | 69 | (28 | ) | 100 | ||||||||||
3,465 | 3,639 | 10,633 | 10,806 | |||||||||||||
Investment gains (losses):
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CNA Financial
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(27 | ) | 62 | 14 | 125 | |||||||||||
Corporate and other
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1 | (31 | ) | |||||||||||||
(27 | ) | 62 | 15 | 94 | ||||||||||||
Total
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$ | 3,438 | $ | 3,701 | $ | 10,648 | $ | 10,900 | ||||||||
Income (Loss) Before Income Tax:
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CNA Financial (a)
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$ | 154 | $ | (228 | ) | $ | 631 | $ | 518 | |||||||
Diamond Offshore
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335 | 298 | 974 | 1,023 | ||||||||||||
HighMount
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25 | 30 | 78 | 105 | ||||||||||||
Boardwalk Pipeline (b)
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46 | 55 | 141 | 196 | ||||||||||||
Loews Hotels
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(1 | ) | (1 | ) | 13 | 4 | ||||||||||
Investment income (loss), net
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(64 | ) | 72 | (23 | ) | 102 | ||||||||||
Other (d)
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(29 | ) | (30 | ) | (78 | ) | (85 | ) | ||||||||
466 | 196 | 1,736 | 1,863 | |||||||||||||
Investment gains (losses):
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CNA Financial
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(27 | ) | 62 | 14 | 125 | |||||||||||
Corporate and other
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1 | (31 | ) | |||||||||||||
(27 | ) | 62 | 15 | 94 | ||||||||||||
Total
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$ | 439 | $ | 258 | $ | 1,751 | $ | 1,957 | ||||||||
Net Income (Loss) Attributable to Loews Corporation:
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CNA Financial (a)
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$ | 84 | $ | (140 | ) | $ | 377 | $ | 312 | |||||||
Diamond Offshore
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121 | 93 | 363 | 333 | ||||||||||||
HighMount
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16 | 19 | 50 | 56 | ||||||||||||
Boardwalk Pipeline (b) (c)
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18 | 21 | 56 | 80 | ||||||||||||
Loews Hotels
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(2 | ) | 8 | 1 | ||||||||||||
Investment income (loss), net
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(41 | ) | 47 | (13 | ) | 67 | ||||||||||
Other (d)
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(21 | ) | (19 | ) | (54 | ) | (57 | ) | ||||||||
177 | 19 | 787 | 792 | |||||||||||||
Investment gains (losses):
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CNA Financial
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(15 | ) | 37 | 9 | 68 | |||||||||||
Corporate and other
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(19 | ) | ||||||||||||||
(15 | ) | 37 | 9 | 49 | ||||||||||||
Income from continuing operations
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162 | 56 | 796 | 841 | ||||||||||||
Discontinued operations, net (a)
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(20 | ) | (19 | ) | ||||||||||||
Net income attributable to Loews Corporation
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$ | 162 | $ | 36 | $ | 796 | $ | 822 |
(a)
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Includes a loss of $529 million ($309 million after tax and noncontrolling interests) and a $19 million loss from discontinued operations for the three and nine months ended September 30, 2010 related to CNA's transfer of legacy asbestos and environmental pollution liabilities to NICO.
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(b)
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Includes an impairment charge of $29 million ($11 million after tax and noncontrolling interests) for the nine months ended September 30, 2011 related to the carrying value of certain steel pipe materials.
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(c)
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Represents a 64.0%, 65.9%, 65.0% and 67.0% ownership interest in Boardwalk Pipeline for the respective periods.
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(d)
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Consists primarily of corporate interest expense and other unallocated expenses.
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