Year Ended December 31, (In thousands) 2012 2011 2010 Net (loss) income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (451,468) $ 302,150 $ (1,805,867) Adjustments to reconcile net (loss) income to net cash used in  operating activities: Net losses (gains) on investments and other financial  instruments, change in fair value of derivatives and net  impairment losses recognized in earnings. . . . . . . . . . . . . . . . . . . 41,409 (1,022,699) 630,539 Net payments related to derivative contracts and VIE debt (1). . . (8,213) (119,888) (291,936) Equity in loss (earnings) of af filiates . . . . . . . . . . . . . . . . . . . . . . . 13 (65) (14,668) Distributions from affiliate (1). . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 — 29,498 Gain on sale of affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,708) — (34,815) Net cash (paid) received for commutations, terminations, and recaptures (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (240,110) (92,599) 85,657 Commutation-related charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,500 — — Deferred tax provision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000 6,758 381,408 Depreciation and amortization, net. . . . . . . . . . . . . . . . . . . . . . . . . 72,389 63,120 39,789 Change in: Unearned premiums. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,910 (46,665) (136,291) Deferred policy acquisition costs . . . . . . . . . . . . . . . . . . . . . . 25,504 8,420 11,949 Reinsurance recoverables . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,385 86,047 58,266 Reserve for losses and LAE . . . . . . . . . . . . . . . . . . . . . . . . . . (161,114) (194,486) 252,908 PDR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 (7,092) (14,621) Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,706 65,388 (34,405) Accounts payable and accrued expenses. . . . . . . . . . . . . . . . . 19,164 53,836 (20,014) Cash flows used in operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (510,500) $ (897,775) $ (862,603) The following table reconciles consolidated net (loss) income to cash used in operations for the years ended  December 31, 2012, 2011 and 2010: Reconciliation of Consolidated Net (Loss) Income to Cash Used in Operations  _____________ (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 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.  Stockholders’ Equity 142