Discontinued Operations

6 Months Ended

Jun. 30, 2014

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

14. Discontinued Operations

As discussed in Note 2, HighMount and the CAC business are classified and presented as discontinued operations.

The Consolidated Condensed Statements of Income include discontinued operations of HighMount for the three and six months ended June 30, 2014 and 2013, as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
(In millions)
Revenues:
Other revenue, primarily operating	$	46	$	66	$	101	$	134
Total		46		66		101		134
Expenses:
Other operating expenses
Impairment of natural gas and oil properties						29		145
Operating		56		53		111		110
Interest		3		4		5		9
Total		59		57		145		264
Income (loss) before income tax		(13)		9		(44)		(130)
Income tax (expense) benefit		(12)		(4)		(1)		47
Results of discontinued operations, net of income tax		(25)		5		(45)		(83)
Impairment loss, net of tax benefit of $92		(167)				(167)
Income (loss) from discontinued operations	$	(192)	$	5	$	(212)	$	(83)

The Consolidated Condensed Statements of Income include discontinued operations of the CAC business for the three and six months ended June 30, 2014 and 2013, as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
(In millions)
Revenues:
Net investment income	$	39	$	44	$	80	$	86
Investment gains		1				2		5
Other				(1)
Total revenues	$	40	$	43	$	82	$	91
Expenses:
Insurance claims and policyholders’ benefits		32		36		63		69
Other operating expenses		1		1		2		2
Total		33		37		65		71
Income before income tax		7		6		17		20
Income tax expense		(1)		(2)		(4)		(7)
Results of discontinued operations, net of income tax		6		4		13		13
Impairment loss, net of tax benefit of $41						(214)
Amounts attributable to noncontrolling interests		(1)		(1)		20		(2)
Income (loss) from discontinued operations	$	5	$	3	$	(181)	$	11

The following table presents the assets and liabilities reported as discontinued operations as of June 30, 2014:

	CNA		HighMount		Eliminations		Total
(In millions)
Assets:
Investments, including cash	$	2,845	$	25			$	2,870
Receivables		811		38	$	(16)		833
Property, plant and equipment				1,014				1,014
Deferred income taxes				552		(552)		-
Other assets		46		11				57
Separate account business		146						146
Assets of discontinued operations		3,848		1,640		(568)		4,920
Less: Impairment of carrying value		(255)		(259)				(514)
Total assets of discontinued operations	$	3,593	$	1,381	$	(568)	$	4,406
Liabilities:
Insurance reserves	$	3,109					$	3,109
Short term debt			$	480				480
Other liabilities		88		123				211
Separate account business		146						146
Total liabilities of discontinued operations	$	3,343	$	603	$	-	$	3,946

The following table presents the assets and liabilities of HighMount reported as discontinued operations as of December 31, 2013:

	HighMount		Eliminations		Total
(In millions)
Assets:
Investments, including cash	$	29			$	29
Receivables		143	$	(120)		23
Property, plant and equipment		974				974
Deferred income taxes		517		(517)		-
Other assets		15				15
Total assets of discontinued operations	$	1,678	$	(637)	$	1,041
Liabilities:
Short term debt	$	21			$	21
Long term debt		481				481
Other liabilities		130				130
Total liabilities of discontinued operations	$	632	$	-	$	632