Note 4. Securities Lending:

Securities borrowed and securities loaned are recorded based upon the amount of cash advanced or received. Securities borrowed transactions facilitate the settlement process and require the Company to deposit cash or other collateral with the lender. With respect to securities loaned, the Company receives collateral in the form of cash. The amount of collateral required to be deposited for securities borrowed, or received for securities loaned, is an amount generally in excess of the market value of the applicable securities borrowed or loaned. The Company monitors the market value of the securities borrowed and loaned on a daily basis, with additional collateral obtained, or excess collateral recalled, when deemed appropriate.

The following tables present the contractual gross and net securities borrowing and lending balances and the related offsetting amount as of December 31, 2015 and 2014:

	Gross amounts recognized		Gross amounts offset in the consolidated balance sheets⁽¹⁾		Net amounts included in the consolidated balance sheets		Amounts not offset in the balance sheet but eligible for offsetting upon counterparty default⁽²⁾		Net amounts
As of December 31, 2015
Securities borrowed	$	685,037	$	—	$	685,037	$	685,037	$	—
Securities loaned	$	687,443	$	—	$	687,443	$	687,443	$	—
As of December 31, 2014
Securities borrowed	$	594,674	$	—	$	594,674	$	594,674	$	—
Securities loaned	$	595,717	$	—	$	595,717	$	595,717	$	—

(1)	Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.

(2)	Includes the amount of cash collateral held/posted.