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## Reconciliation of Consolidated Net (Loss) Income to Cash Used in Operations 

The following table reconciles consolidated net (loss) income to cash used in operations for the years ended December 31, 2012, 2011 and 2010: 

<img src='content_image/147086.jpg'>

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## (1) Cash item. 

 Cash flows used in operating activities decreased for 2012 compared to 2011, primarily as a result of a reduction in mortgage insurance claims paid partially of fset by increased payments for commutations, terminations and recaptures in 2012. During 2010, we received net cash from these transactions due to the termination of several captive arrangements. 

## Stockholders’ Equity 

Stockholders’ equity was $0.7 billion at December 31, 2012, compared to $1.2 billion at December 31, 2011. The decrease in stockholders’ equity resulted primarily from our net loss of $451.5 million for 2012. 

