204 (1)  Includes unrealized gains relating to assets and liabilities still held as of  December 31, 2011 as follows: $12.0 million  for investments, $9.4 million for other assets, $579.1 million for derivative liabilities and $158.5 million for VIE debt. (2)  Transfers are recognized at the end of the period as the availability of market observed inputs change from period to  period.  At December 31, 2011, our total Level III assets approximated 4.9% of total assets measured at fair value and our total  Level III liabilities accounted for 100% of total liabilities measured at fair value. Realized and unrealized gains and losses on  Level III assets and liabilities in the rollforward represent gains and losses for the periods in which they were classified as  Level III.  Realized and unrealized gains and losses on investments and  VIE debt included in Level III are generally recorded in net  gains (losses) on other financial instruments. Realized and unrealized gains and losses on Level III derivative instruments are  recorded in the change in fair value of derivative instruments.  There were no investment transfers between Level I and Level II for the years ended  December 31, 2012 or 2011. Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) The following is a rollforward of Level III assets and liabilities measured at fair value for the year ended  December 31,  2011: (In millions) Beginning Balance at January 1,  2011 Realized  and Unrealized Gains (Losses) Recorded in Earnings  (1) Purchases Sales Issuances Settlements Transfers  Into (Out of) Level III  (2) Ending Balance at December 31,  2011 Investments: State and municipal  obligations . . . . . . . $ 23.2 $ 1.2 $ 39.1 $ 0.6 $ — $ 0.4 $ — $ 62.5 RMBS . . . . . . . . . . 52.5 (3.1) — — — 3.9 — 45.5 CMBS . . . . . . . . . . 23.0 12.4 — — — — — 35.4 CDO . . . . . . . . . . . . 2.4 2.7 — — — (0.4) — 5.5 Other ABS . . . . . . . 3.3 (0.4) — — — — — 2.9 Hybrid securities . . — (0.1) 0.7 — — — 4.2 4.8 Equity securities. . . 2.9 (1.2) 3.7 1.0 — — (3.6) 0.8 Other investments . 4.6 3.2 — 0.7 — 0.3 — 6.8 Total Level III Investments. . . . . . . . 111.9 14.7 43.5 2.3 — 4.2 0.6 164.2 NIMS derivative assets. . . . . . . . . . . . . 11.7 (2.2) 0.3 — — 7.7 (0.5) 1.6 Other assets . . . . . . . 109.7 21.5 — — — 27.2 — 104.0 Total Level III Assets . . . . . . . . . . . . $ 233.3 $ 34.0 $ 43.8 $ 2.3 $ — $ 39.1 $ 0.1 $ 269.8 Derivative liabilities, net. . . . . . . . . . . . . . . $ 709.1 $ 629.0 $ — $ — $ — $ (30.5) $ — $ 110.6 VIE debt . . . . . . . . . . 520.1 138.5 — — — 153.4 — 228.2 Total Level III Liabilities, net. . . . . . $ 1,229.2 $ 767.5 $ — $ — $ — $ 122.9 $ — $ 338.8