## Note F 

Net investment income for 2012 declined compared to 2011 as a result of a decrease in our investment balances, as well as a shift from higher yielding securities in our investment portfolio to lower yielding investments. The net investment income for 2011 compared to 2010 reflects a full year of income earned on the reinvested proceeds received from our issuance of common stock in May 2010 and the issuance of our convertible debt in November 2010. 

The net gains on investments for 2012 and 201 1 reflect gains from the sale of securities in our portfolio. Net gains on investments for 2010 reflected unrealized market gains relating to our unconsolidated CPS, substantially all of which were purchased by the Parent Company during 2010. 

The net gains on other financial instruments for 2012 reflect gains on the repurchase of our 2013 Notes of fset by unrealized losses on structured settlements. 

The interest expense for 2012 and 2011 reflects the amortization of the debt discount relating to the 2017 convertible debt, which is not allocated to our subsidiaries. 

