Radian Group Inc. CONSOLIDATED STATEMENTS OF CHANGES IN COMMON STOCKHOLDERS’ EQUITY (In thousands) Common Stock  Treasury Stock  Additional Paid- in Capital Retained Earnings/(Deficit)  Foreign Currency Translation Adjustment Unrealized Holding Gains (Losses) Other Total BALANCE, JANUARY 1, 2010 . . . . . . . . . . . . . . . $ 100 $ (889,496) $ 1,363,255 $ 1,602,143 $ 18,285 $ (72,802) $ (16,491) $ 2,004,994 Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — (1,805,867) — — — (1,805,867) Net foreign currency translation adjustment, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 2,809 — — 2,809 Net unrealized gain on investments, net of tax . . . . . — — — — — 44,945 — 44,945 Sherman unrealized loss included in net loss . . . . . . — — — — — — 16,761 16,761 Repurchases of common stock under incentive plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (2,516) 108 — — — — (2,408) Issuance of common stock - stock offering . . . . . . . 50 — 525,837 — — — — 525,887 Issuance of common stock under benefit plans . . . . — — 3,977 — — — — 3,977 Amortization of restricted stock . . . . . . . . . . . . . . . . — — 3,309 — — — — 3,309 Issuance of convertible debt (See Note 13) . . . . . . . — — 65,701 — — — — 65,701 Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — — — (31) (31) Stock-based compensation expense . . . . . . . . . . . . . — — 905 — — — — 905 Dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . — — — (1,202) — — — (1,202) BALANCE, DECEMBER 31, 2010 . . . . . . . . . . . . . $ 150 $ (892,012) $ 1,963,092 $ (204,926) $ 21,094 $ (27,857) $ 239 $ 859,780 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 302,150 — — — 302,150 Net foreign currency translation adjustment, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — (21,040) — — (21,040) Net unrealized gain on investments, net of tax . . . . . — — — — — 39,328 — 39,328 Repurchases of common stock under incentive plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (40) — — — — (40) Issuance of common stock under benefit plans . . . . 1 — 741 — — — — 742 Amortization of restricted stock . . . . . . . . . . . . . . . . — — 1,837 — — — — 1,837 Additional convertible debt issuance costs, net . . . . — — (22) — — — — (22) Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — — — (364) (364) Stock-based compensation expense . . . . . . . . . . . . . — — 1,250 — — — — 1,250 Dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . — — (333) (997) — — — (1,330) BALANCE, DECEMBER 31, 2011 . . . . . . . . . . . . . $ 151 $ (892,052) $ 1,966,565 $ 96,227 $ 54 $ 11,471 $ (125) $ 1,182,291 Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — (451,468) — — — (451,468) Net foreign currency translation adjustment, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — (7) — — (7) Net unrealized gain on investments, net of tax . . . . . — — — — — 4,860 — 4,860 Repurchases of common stock under incentive plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (42) — — — — (42) Issuance of common stock under benefit plans . . . . — — 489 — — — — 489 Amortization of restricted stock . . . . . . . . . . . . . . . . — — 1,523 — — — — 1,523 Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — — — (158) (158) Stock-based compensation expense . . . . . . . . . . . . . — — 172 — — — — 172 Dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . — — (1,335) — — — — (1,335) BALANCE, DECEMBER 31, 2012 . . . . . . . . . . . . . $ 151 $ (892,094) $ 1,967,414 $ (355,241) $ 47 $ 16,331 $ (283) $ 736,325 See Notes to Consolidated Financial Statements. 165