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COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
F-47
calculated at the termination date. As of December 31, 2013, the Company did not have an early
termination shortfall relating to any of these contracts.
The Company monitors the financial institutions that are counterparties to its equity derivative contracts
and it diversifies its equity derivative contracts among various counterparties to mitigate exposure to any
single financial institution. All of the counterparties to such transactions carry investment grade credit
ratings as of December 31, 2013.
The following represents the location of the assets and liabilities associated with the Company's
derivative instruments within the consolidated balance sheets at December 31, 2013 and December 31,
2012:
Derivatives Not Asset Derivatives Liability Derivatives
Designated as
Hedging
Instruments
Balance
Sheet
Location
Fair Value at
December 31,
2013
Fair Value at
December 31,
2012
Fair Value at
December 31,
2013
Fair Value at
December 31,
2012
Prepaid forward
contracts .............
Current derivative
contracts $ -
$ -
$ 99,577 $134,524
Prepaid forward
contracts .............
Long-term
derivative
contracts
3,385
3,143
47,370 13,739
Total derivative contracts.......................
.
$3,385
$3,143
$146,947 $148,263
The following represents the impact and location of the Company's derivative instruments within the
consolidated statements of income for the years ended December 31, 2013, 2012 and 2011:
Derivatives Not Location of Amount of Gain (Loss) Recognized
Designated as Hedging Gain (Loss) Years Ended December 31,
Instruments Recognized 2013
2012
2011
Interest rate swap
contracts ........................
Loss on interest rate
swap contracts, net $ -
$ (1,828)
$(7,973)
Prepaid forward
contracts ........................
Gain (loss) on equity
derivative contracts,
net (198,688)
(211,335)
1,454
Total derivative contracts ..........................................
.
$(198,688)
$(213,163)
$(6,519)
For the years ended December 31, 2013, 2012 and 2011, the Company recorded a gain on investments of
$313,251, $293,599 and $37,370 respectively, representing the net increase in the fair values of all
investment securities pledged as collateral for the period.