Date of Report (Date of earliest event reported)
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February 10, 2014
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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
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(Commission
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(I.R.S. Employer
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of incorporation)
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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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10065-8087
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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 February 10, 2014, providing information on its results of operations for the fourth quarter and year ended December 31, 2013.
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LOEWS CORPORATION
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(Registrant)
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Dated: February 10, 2014
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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
Mary Skafidas
Investor and Public Relations
(212) 521-2788
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December 31,
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Three Months
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Years Ended
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(In millions, except per share data)
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2013
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2012
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2013
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2012
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Income before ceiling test and goodwill impairment charges, impact
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of LPT charge and net investment gains (losses)
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$ | 356 | $ | 67 | $ | 1,275 | $ | 968 | ||||||||
Ceiling test impairment charges
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(52 | ) | (97 | ) | (186 | ) | (433 | ) | ||||||||
Goodwill impairment charges
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(398 | ) | (398 | ) | ||||||||||||
Impact of LPT charge
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(111 | ) | (111 | ) | ||||||||||||
Net investment gains (losses)
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7 | (2 | ) | 15 | 33 | |||||||||||
Net income (loss) attributable to Loews Corporation
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$ | (198 | ) | $ | (32 | ) | $ | 595 | $ | 568 | ||||||
Net income (loss) per share
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$ | (0.51 | ) | $ | (0.08 | ) | $ | 1.53 | $ | 1.43 |
December 31,
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2013
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2012
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Book value per share
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$ | 50.25 | $ | 49.67 | ||||
Book value per share (excluding AOCI)
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49.38 | 47.94 |
December 31,
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(In millions)
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Three Months
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Years Ended
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2013
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2012
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2013
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2012
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Revenues:
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CNA Financial
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$ | 2,601 | $ | 2,437 | $ | 10,086 | $ | 9,487 | ||||||||
Diamond Offshore (a)
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728 | 753 | 2,926 | 3,072 | ||||||||||||
Boardwalk Pipeline
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311 | 325 | 1,232 | 1,187 | ||||||||||||
HighMount
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64 | 78 | 260 | 297 | ||||||||||||
Loews Hotels
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90 | 125 | 380 | 397 | ||||||||||||
Investment income (loss) and other
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84 | (11 | ) | 143 | 55 | |||||||||||
3,878 | 3,707 | 15,027 | 14,495 | |||||||||||||
Investment gains (losses):
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CNA Financial
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12 | (2 | ) | 27 | 60 | |||||||||||
Corporate and other
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(1 | ) | (3 | ) | ||||||||||||
12 | (2 | ) | 26 | 57 | ||||||||||||
Total
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$ | 3,890 | $ | 3,705 | $ | 15,053 | $ | 14,552 | ||||||||
Income (Loss) Before Income Tax:
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CNA Financial (b) (c)
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$ | 288 | $ | (31 | ) | $ | 1,293 | $ | 820 | |||||||
Diamond Offshore (a)
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181 | 185 | 774 | 917 | ||||||||||||
Boardwalk Pipeline
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Operations
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67 | 88 | 293 | 304 | ||||||||||||
Goodwill impairment charge
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(52 | ) | (52 | ) | ||||||||||||
HighMount
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Operations (d)
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(30 | ) | 16 | (9 | ) | 44 | ||||||||||
Goodwill impairment charge
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(584 | ) | (584 | ) | ||||||||||||
Ceiling test impairment charge
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(81 | ) | (153 | ) | (291 | ) | (680 | ) | ||||||||
Loews Hotels
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(4 | ) | (3 | ) | (4 | ) | 14 | |||||||||
Investment income (loss), net
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83 | (9 | ) | 141 | 61 | |||||||||||
Other (e)
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(64 | ) | (56 | ) | (158 | ) | (138 | ) | ||||||||
(196 | ) | 37 | 1,403 | 1,342 | ||||||||||||
Investment gains (losses):
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CNA Financial
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12 | (2 | ) | 27 | 60 | |||||||||||
Corporate and other
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(1 | ) | (3 | ) | ||||||||||||
12 | (2 | ) | 26 | 57 | ||||||||||||
Total
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$ | (184 | ) | $ | 35 | $ | 1,429 | $ | 1,399 | |||||||
Net Income (Loss) Attributable to Loews Corporation:
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CNA Financial (b) (c)
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$ | 192 | $ | (5 | ) | $ | 831 | $ | 535 | |||||||
Diamond Offshore (a) (f)
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44 | 73 | 257 | 337 | ||||||||||||
Boardwalk Pipeline (g)
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Operations
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20 | 31 | 94 | 111 | ||||||||||||
Goodwill impairment charge
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(16 | ) | (16 | ) | ||||||||||||
HighMount
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Operations (d)
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(19 | ) | 9 | (5 | ) | 26 | ||||||||||
Goodwill impairment charge
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(382 | ) | (382 | ) | ||||||||||||
Ceiling test impairment charge
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(52 | ) | (97 | ) | (186 | ) | (433 | ) | ||||||||
Loews Hotels
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(5 | ) | (2 | ) | (3 | ) | 7 | |||||||||
Investment income (loss), net
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54 | (6 | ) | 93 | 41 | |||||||||||
Other (e)
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(41 | ) | (33 | ) | (103 | ) | (89 | ) | ||||||||
(205 | ) | (30 | ) | 580 | 535 | |||||||||||
Investment gains (losses):
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CNA Financial
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7 | (2 | ) | 16 | 35 | |||||||||||
Corporate and other
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(1 | ) | (2 | ) | ||||||||||||
7 | (2 | ) | 15 | 33 | ||||||||||||
Net income (loss) attributable to Loews Corporation
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$ | (198 | ) | $ | (32 | ) | $ | 595 | $ | 568 |
(a)
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Includes a $76 million gain ($32 million after tax and noncontrolling interests) for the year ended December 31, 2012 related to the sale of jack-up rigs.
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(b)
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Includes catastrophe losses of $23 million, $268 million, $169 million and $391 million ($14 million, $171 million, $100 million and $243 million after tax and noncontrolling interests) for the three months and years ended December 31, 2013 and 2012.
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(c)
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Includes a charge of $189 million ($111 million after tax and noncontrolling interests) for the three months and year ended December 31, 2013 related to retroactive reinsurance accounting for the Loss Portfolio Transfer.
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(d)
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Includes a $34 million impairment charge ($22 million after tax) for the three months and year ended December 31, 2013 related to gathering pipelines as a result of low natural gas and NGL prices and decreased production.
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(e)
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Consists primarily of corporate interest expense and other unallocated expenses.
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(f)
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Includes a $27 million charge (after noncontrolling interests) for the three months and year ended December 31, 2013 related to an uncertain tax position for Egyptian operations.
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(g)
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Represents a 52.6%, 55.5%, 53.7% and 59.3% ownership interest in Boardwalk Pipeline for the respective periods.
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December 31,
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(In millions, except per share data)
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Three Months
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Years Ended
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2013
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2012
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2013
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2012
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Revenues:
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Insurance premiums
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$ | 1,882 | $ | 1,784 | $ | 7,271 | $ | 6,882 | ||||||||
Net investment income
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726 | 555 | 2,593 | 2,349 | ||||||||||||
Investment gains (losses)
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12 | (2 | ) | 26 | 57 | |||||||||||
Contract drilling revenues
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708 | 741 | 2,844 | 2,936 | ||||||||||||
Other
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562 | 627 | 2,319 | 2,328 | ||||||||||||
Total
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3,890 | 3,705 | 15,053 | 14,552 | ||||||||||||
Expenses:
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Insurance claims & policyholders’ benefits (a)
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1,583 | 1,732 | 5,947 | 5,896 | ||||||||||||
Contract drilling expenses
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408 | 377 | 1,573 | 1,537 | ||||||||||||
Impairment of goodwill (b)
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636 | 636 | ||||||||||||||
Other (c)
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1,447 | 1,561 | 5,468 | 5,720 | ||||||||||||
Total
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4,074 | 3,670 | 13,624 | 13,153 | ||||||||||||
Income (loss) before income tax
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(184 | ) | 35 | 1,429 | 1,399 | |||||||||||
Income tax (expense) benefit
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59 | 48 | (360 | ) | (289 | ) | ||||||||||
Net income (loss)
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(125 | ) | 83 | 1,069 | 1,110 | |||||||||||
Amounts attributable to noncontrolling interests
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(73 | ) | (115 | ) | (474 | ) | (542 | ) | ||||||||
Net income (loss) attributable to Loews Corporation
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$ | (198 | ) | $ | (32 | ) | $ | 595 | $ | 568 | ||||||
Diluted income (loss) per share attributable to Loews
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Corporation
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$ | (0.51 | ) | $ | (0.08 | ) | 1.53 | $ | 1.43 | |||||||
Weighted diluted number of shares
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387.19 | 392.85 | 389.51 | 395.87 |
(a)
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Includes a charge of $189 million ($111 million after tax and noncontrolling interests) at CNA related to retroactive reinsurance accounting for the Loss Portfolio Transfer.
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(b)
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Includes goodwill impairment charges of $584 million ($382 million after tax) at HighMount and $52 million ($16 million after tax and noncontrolling interests) at Boardwalk Pipeline for the three months and year ended December 31, 2013.
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(c)
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Includes ceiling test impairment charges of $81 million and $153 million ($52 million and $97 million after tax) for the three months ended December 31, 2013 and 2012 and $291 million and $680 million ($186 million and $433 million after tax) for the years ended December 31, 2013 and 2012 related to the carrying value of HighMount’s natural gas and oil properties.
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