As of December 31, 2009, we had consolidated the assets and liabilities of  two of the CPS trusts with which we were  involved as we had acquired a majority of the securities issued by these two trusts at that date.  We purchased substantially all of  the securities issued by the remaining CPS trust in 2010 and we consolidated the assets and liabilities of that trust during 2010.  We recognized a loss of $13.9 million within net (losses) gains on other financial instruments upon consolidation in 2010,  based on the difference between the consideration paid for the CPS trust securities and the net amount of the trust’ s identifiable  assets and liabilities recognized and measured at fair value at the date of consolidation. Based on our involvement in these trusts, combined with the put options Radian  Asset Assurance held on these trusts  (which together were considered in the determination of the primary beneficiary), we concluded that we were the party that  directed the activities that most significantly influenced the economic performance of these  VIEs and had the right to receive  benefits that would be significant to these  VIEs. Therefore, given that we had a variable interest in each of these  VIEs, we  concluded that we were the primary beneficiary . As such, the assets and liabilities of these trusts were consolidated at their  respective fair values, net of liabilities to us.  The assets of the consolidated trusts were reported in short-term investments. During the first quarter of 2012, Radian Group and its subsidiaries converted the custodial trusts to corporations that are  wholly-owned consolidated subsidiaries of Radian Group and are no longer considered  VIEs. The amount of income and  expense, as well as cash flows associated with these trusts, was immaterial during 2012 and 201 1.  The following tables provide a summary as of and for the periods indicated of our maximum exposure to losses and the  financial impact on our consolidated balance sheets, our consolidated statements of operations and our consolidated statements  of cash flows related to our consolidated and unconsolidated CPS  VIEs: (1)  The maximum exposure is based on our carrying amounts of the investments. 213 Consolidated Unconsolidated Year Ended December 31, Year Ended December 31, (In thousands) 2010 2010 Statement of Operations: Change in fair value of derivative instruments—gain (loss) . . . . . . . . . . $ 141 $ (6,281 ) Net loss on other financial instruments . . . . . . . . . . . . . . . . . . . . (25,699) — Other operating expenses . . . . . . . . . 400 — Net Cash Outflow . . . . . . . . . . . . . . . . . . . (83,391) (878 ) Consolidated (In thousands) December 31, 2011 Balance Sheet: Short-term investments . . . . . . . $ 149,981 Other assets . . . . . . . . . . . . . . . 19 Maximum exposure (1) . . . . . . . . . . 150,000 Radian Group Inc. Notes to Consolidated Financial Statements - (Continued)