Net Realized Losses
Total net realized losses for the three months and year ended December 31, 2012 were $15.7 million and $89.1 million, respectively, compared to $7.5 million and $49.9 million for the three months and year ended December 31, 2011. Net realized losses for the year ended December 31, 2012 was the result of $87.9 million in net losses realized from the sales, repayments and other exits of our investments and $1.2 million in net losses realized on foreign currency transactions. Net realized loss on investments resulted primarily from the disposition of our debt and equity investments in Big Dumpster Acquisition, Inc. et al and American SportWorks LLC et al, and the restructuring of our equity investment in WBS Group Holdings, LLC. Nearly the entire net realized loss on investments represents amounts that had been reflected in net unrealized depreciation on investments in prior periods. Foreign currency losses mainly represent net losses on forward currency contracts used to mitigate the impact that changes in foreign exchange rates would have on our investments denominated in foreign currencies.
Net Unrealized Appreciation or Depreciation
For the three months and year ended December 31, 2012, the change in net unrealized appreciation on investments and foreign currency translation was an increase in net unrealized appreciation of $9.1 million and $72.8 million, respectively, versus $3.2 million and $53.9 million for the three months and year ended December 31, 2011. Net unrealized appreciation (depreciation) was $20.8 million at December 31, 2012 and ($52.0) million at December 31, 2011. For the three months ended December 31, 2012, while certain of our portfolio companies had strong performance, there was underperformance in certain others, but a modestly improved overall health of our investment portfolio. Removing the effects of reversals due to dispositions during the quarter, unrealized appreciation for the three months ended December 31, 2012 was relatively flat as compared to the prior quarter.