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 Operations. 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 19:
| | | | | | | | | | | | | | | | | |
Year Ended December 31 | 2025 | | 2024 | | 2023 |
| (In millions) | | | | | |
| | | | | | |
| Non-insurance warranty – CNA Financial | $ | 1,577 | | | $ | 1,609 | | | $ | 1,624 | |
| | | | | | |
| Transportation and storage of natural gas and NGLs and ethane supply and transportation services – Boardwalk Pipelines | $ | 2,263 | | | $ | 1,987 | | | $ | 1,582 | |
| Lodging and related services – Loews Hotels & Co | 911 | | | 906 | | | 778 | |
| | | | | |
| Total revenues from contracts with customers | 3,174 | | | 2,893 | | | 2,360 | |
| Other revenues | 105 | | | 98 | | | 95 | |
| Operating revenues and other | $ | 3,279 | | | $ | 2,991 | | | $ | 2,455 | |
Receivables from contracts with customers – As of December 31, 2025 and 2024, receivables from contracts with customers were approximately $252 million and $240 million and are included within Receivables on the Consolidated Balance Sheets.
Deferred revenue – As of December 31, 2025 and 2024, deferred revenue resulting from contracts with customers was approximately $4.2 billion and $4.6 billion and is reported as Deferred non-insurance warranty revenue and within Other liabilities on the Consolidated Balance Sheets. The decrease in the deferred revenue balance for the year ended December 31, 2025 was primarily driven by recognized revenue from prior periods outpacing new growth in CNA’s non-insurance warranty business. Approximately $1.4 billion and $1.5 billion of revenues recognized during each of the years ended December 31, 2025 and 2024 were included in deferred revenue as of January 1, 2025 and 2024.
Contract costs – As of December 31, 2025 and 2024, the Company had approximately $3.2 billion and $3.5 billion of costs to obtain contracts with customers 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 years ended December 31, 2025 and 2024, amortization expense of $1.2 billion is reported as Non-insurance warranty expense on the Consolidated Statement of Operations. There were no adjustments to deferred costs recorded for the years ended December 31, 2025 and 2024.
Performance obligations – As of December 31, 2025, approximately $23.6 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 services for natural gas and natural gas liquids, olefins and other hydrocarbons (“NGLs”) and certain ethane supply contracts at Boardwalk Pipelines and non-insurance warranty revenue at CNA. Included in the balance are $9.9 billion of revenues that are anticipated under executed precedent or long-term firm transportation agreements associated with Boardwalk Pipelines’ growth projects. Approximately $2.9 billion is expected to be recognized during 2026, $2.3 billion in 2027 and the remainder in following years. The actual timing of recognition may vary due to factors outside of the Company’s control.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.