Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Note 13. Revenue from Contracts with Customers

Disaggregation of revenues – Revenue from contracts with customers, other than insurance premiums, is reported as Non-insurance warranty revenue and within Operating revenues and other on the Consolidated Statements of Income. The following table presents revenues from contracts with customers disaggregated by revenue type along with the reportable segment and a reconciliation to Operating revenues and other as reported in Note 20:

Year Ended December 31	2019		2018		2017 (a)
(In millions)
Non-insurance warranty – CNA Financial	$	1,161	$	1,007	$	390
Contract drilling – Diamond Offshore	$	981	$	1,083	$	1,486
Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines		1,266		1,206		1,298
Lodging and related services – Loews Hotels & Co		691		730		682
Rigid plastic packaging and recycled resin – Corporate		932		867		498
Total revenues from contracts with customers		3,870		3,886		3,964
Other revenues		68		101		89
Operating revenues and other	$	3,938	$	3,987	$	4,053

(a) Prior period amounts have not been adjusted under the modified retrospective method of adoption for ASU 2014-09.

Receivables from contracts with customers – As of December 31, 2019 and 2018, receivables from contracts with customers were approximately $458 million and $434 million and are included within Receivables on the Consolidated Balance Sheets.

Deferred revenue – As of December 31, 2019 and 2018, deferred revenue resulting from contracts with customers was approximately $3.9 billion and $3.5 billion and is reported as Deferred non-insurance warranty revenue and within Other liabilities on the Consolidated Balance Sheets. The increase in deferred revenue for the year ended December 31, 2019 was primarily due to deferrals outpacing revenue recognized in the period, specifically reflecting growth in CNA’s business. Approximately $1.0 billion and $886 million of revenues recognized during the year ended December 31, 2019 and 2018 were included in deferred revenue as of January 1, 2019 and 2018.

Contract costs – As of December 31, 2019 and 2018, the Company had approximately $2.9 billion and $2.6 billion of costs to obtain contracts with customers, primarily related to CNA for amounts paid to dealers and other agents to obtain non-insurance warranty contracts, which are reported as Deferred non-insurance warranty acquisition expenses on the Consolidated Balance Sheets. For the year ended December 31, 2019 and 2018, amortization expense totaled $912 million and $744 million is included in Non-insurance warranty expense and Operating expenses and other in the Consolidated Statement of Income. There were no adjustments to deferred costs recorded for the year ended December 31, 2019 and 2018.

Performance obligations – As of December 31, 2019, approximately $13.0 billion of estimated operating revenues is expected to be recognized in the future related to outstanding performance obligations. The balance relates primarily to revenues for transportation and storage of natural gas and NGLs at Boardwalk Pipelines and non-insurance warranty services at CNA. Approximately $2.2 billion will be recognized during 2020, $1.9 billion in 2021 and the remainder in following years. The actual timing of recognition may vary due to factors outside of the Company’s control. The Company has elected to exclude variable consideration related entirely to wholly unsatisfied performance obligations and contracts where revenue is recognized based upon the right to invoice the customer. Therefore, the estimated operating revenues exclude contract drilling dayrate revenue at Diamond Offshore and interruptible service contract revenue at Boardwalk Pipelines.