Note 20. Segments

The Company has five reportable segments comprised of its four individual operating subsidiaries, CNA, Diamond Offshore, Boardwalk Pipeline and Loews Hotels; and the Corporate segment. Each of the operating subsidiaries are headed by a chief executive officer who is responsible for the operation of its business and has the duties and authority commensurate with that position.

CNA’s core business is the sale of property and casualty insurance coverage primarily through a network of independent agents, brokers and managing general underwriters. CNA’s operations also include its long term care business that is in run-off, certain corporate expenses, including interest on CNA’s corporate debt, and certain property and casualty businesses in run-off, including CNA Re and A&EP.

Diamond Offshore owns and operates offshore drilling rigs that are chartered on a contract basis for fixed terms by companies engaged in exploration and production of hydrocarbons. Offshore rigs are mobile units that can be relocated based on market demand. Diamond Offshore’s fleet consists of 24 drilling rigs, which consist of four drillships, 19 semisubmersible rigs, and one jack-up rig. On December 31, 2016, Diamond Offshore’s drilling rigs were located offshore of five countries in addition to the United States.

Boardwalk Pipeline is engaged in the interstate transportation and storage of natural gas and NGLs. This segment consists of interstate natural gas pipeline systems originating in the Gulf Coast region, Oklahoma and Arkansas, and extending north and east through the midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio, natural gas storage facilities in four states and NGL pipelines and storage facilities in Louisiana and Texas, with approximately 14,365 miles of pipeline.

Loews Hotels operates a chain of 25 hotels, 24 of which are in the United States and one of which is in Canada.

The Corporate segment consists of investment income from the Parent Company’s cash and investments, interest expense and other unallocated expenses. Purchase accounting adjustments have been pushed down to the appropriate subsidiary.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1.

In the following tables certain financial measures are presented to provide information used by management to monitor the Company’s operating performance. These schedules present the reportable segments of the Company and their contribution to the consolidated financial statements. Amounts presented will not necessarily be the same as those in the individual financial statements of the Company’s subsidiaries due to adjustments for purchase accounting, income taxes and noncontrolling interests.

Statements of Income and Total assets by segment are presented in the following tables.

Year Ended December 31, 2016

CNA
Financial

Diamond
Offshore

Boardwalk
Pipeline

Loews
Hotels

Corporate

Total

(In millions)

Revenues:

Insurance premiums

6,924

Net investment income

1,988

146

2,135

Investment gains (losses)

(12)

Contract drilling revenues

1,525

Other revenues

410

1,316

667

2,471

Total

9,384

1,589

1,316

667

149

13,105

Expenses:

Insurance claims and policyholders’ benefits

5,283

Amortization of deferred acquisition costs

1,235

Contract drilling expenses

772

Other operating expenses

1,558

1,198

835

621

131

4,343

Interest

167

183

536

Total

8,243

2,060

1,018

645

203

12,169

Income (loss) before income tax

1,141

(471

)

298

(54)

936

Income tax (expense) benefit

(279)

111

(61)

(10

)

(220)

Net income (loss)

862

(360

)

237

(35)

716

Amounts attributable to noncontrolling interests

(88)

174

(148)

(62)

Net income (loss) attributable to Loews Corporation

774

(186

)

(35)

654

December 31, 2016

(In millions)

Total assets

55,207

6,371

8,706

1,498

4,812

76,594


Year Ended December 31, 2015	CNA Financial		Diamond Offshore			Boardwalk Pipeline		Loews Hotels			Corporate		Total
(In millions)

Revenues:

Insurance premiums	$	6,921											$	6,921
Net investment income		1,840	$	3		$	1				$	22		1,866
Investment losses		(71)												(71)
Contract drilling revenues				2,360										2,360
Other revenues		411		65			1,253	$	604			6		2,339
Total		9,101		2,428			1,254		604			28		13,415

Expenses:

Insurance claims and policyholders’ benefits		5,384												5,384
Amortization of deferred acquisition costs		1,540												1,540
Contract drilling expenses				1,228										1,228
Other operating expenses		1,469		1,508			851		555			116		4,499
Interest		155		94			176		21			74		520
Total		8,548		2,830			1,027		576			190		13,171
Income (loss) before income tax		553		(402	)		227		28			(162)		244
Income tax (expense) benefit		(71)		117			(46)		(16	)		59		43
Net income (loss)		482		(285	)		181		12			(103)		287
Amounts attributable to noncontrolling interests		(49)		129			(107)							(27)
Net income (loss) attributable to Loews Corporation	$	433	$	(156	)	$	74	$	12		$	(103)	$	260


December 31, 2015
(In millions)

Total assets	$	55,025	$	7,154		$	8,365	$	1,416		$	4,046	$	76,006


Year Ended December 31, 2014	CNA Financial		Diamond Offshore			Boardwalk Pipeline		Loews Hotels			Corporate		Total
(In millions)

Revenues:

Insurance premiums	$	7,212											$	7,212
Net investment income		2,067	$	1		$	1				$	94		2,163
Investment gains		54												54
Contract drilling revenues				2,737										2,737
Other revenues		359		87			1,235	$	475			3		2,159
Total		9,692		2,825			1,236		475			97		14,325

Expenses:

Insurance claims and policyholders’ benefits		5,591												5,591
Amortization of deferred acquisition costs		1,317												1,317
Contract drilling expenses				1,524										1,524
Other operating expenses		1,386		725			931		440			103		3,585
Interest		183		62			165		14			74		498
Total		8,477		2,311			1,096		454			177		12,515
Income (loss) before income tax		1,215		514			140		21			(80)		1,810
Income tax (expense) benefit		(322)		(142	)		(11)		(10	)		28		(457)
Income (loss) from continuing operations		893		372			129		11			(52)		1,353
Discontinued operations, net		(197)										(194)		(391)
Net income (loss)		696		372			129		11			(246)		962
Amounts attributable to noncontrolling interests		(71)		(189	)		(111)							(371)
Net income (loss) attributable to Loews Corporation	$	625	$	183		$	18	$	11		$	(246)	$	591