The table below provides selected financial data and other operating information as of and for the five fiscal years ended December 31, 2012. We derived the selected financial data presented below for the three fiscal years ended December 31, 2012 from our audited financial statements. In connection with the Part D Transaction, the Medicare Part D Business of Old Universal American was reclassified to discontinued operations in our consolidated financial statements as well as for all periods in the selected financial data stated below-see Note 1-Organization and Company Background and Note 23-Discontinued Operations in the Notes to consolidated financial statements. In addition, we adjusted our consolidated financial statements and the financial data presented below for 2008 to 2011 for the items discussed in footnote 1 below-see Note 2-Basis of Presentation-Adjustments to Financial Statements in the Notes to consolidated financial statements. We have prepared the following data, other than statutory data, in conformity with U.S. generally accepted accounting principles. You should read this selected financial data together with our Consolidated Financial Statements and the Notes to consolidated financial statements as well as the discussion under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations."
(2)2010 and prior periods include capital and surplus for Pennsylvania Life Insurance Company which was transferred to CVS Caremark in April 2011 in connection with the Part D Transaction. At the time of the transfer on April 29, 2011, Pennsylvania Life had capital and surplus of $231.4 million of which $184.4 million was included in the amount distributed to Universal American shareholders in connection with the Part D Transaction.
•Engage the people we serve to help them make smart and economic choices about their healthcare.
CMS established the Shared Savings Program to facilitate coordination and cooperation among providers to improve the quality of care for Medicare Fee-For-Service (FFS) beneficiaries and reduce unnecessary costs. Eligible providers, hospitals, and suppliers may participate in the Shared Savings Program by creating or participating in an Accountable Care Organization (ACO).
Change in deferred acquisition costs. The net change in deferred acquisition costs decreased $0.9 million compared to 2010. This was primarily caused by lower amortization in Senior Market due to better persistency in 2011 compared with 2010.
On September 29, 2010, the FASB issued , ASU 2010-26, which amended FASB ASC Topic 944, Financial Services-Insurance and clarified the definition of acquisition costs that are eligible for deferral. Acquisition costs are to include only those costs that are directly related to the successful acquisition or renewal of insurance contracts; incremental direct costs of contract acquisition that are incurred in transactions with either independent third parties or employees; and advertising costs meeting the capitalization criteria for direct-response advertising. The determination of deferability must be made on a contract-level basis. For further discussion of our adoption of ASU 2010-26, see Note 4-Recent and Pending Accounting Pronouncements in the Notes to consolidated financial statements.
Goodwill. Goodwill represents the amount of the purchase price in excess of the fair values assigned to the underlying identifiable net assets of acquired businesses. Goodwill is not amortized, but is subject to an annual impairment test. ASC 350, Goodwill and Other Intangible Assets, requires that goodwill balances be reviewed for impairment at the reporting unit level at least annually or more frequently if events occur or circumstances change that would indicate that a triggering event, as defined in ASC 350, has occurred. A reporting unit is defined as an operating segment or one level below an operating segment. Our reporting units are equivalent to our operating segments. We have goodwill assigned to our Senior Managed Care-Medicare Advantage and APS Healthcare reporting units. The goodwill related to the acquisition of APS Healthcare is included in our Corporate and Other segment.
The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between knowledgeable, unrelated willing parties using inputs, including assumptions and estimates, a market participant would utilize. However, under certain conditions, the estimated fair value of a financial instrument may differ significantly from the amount that could be realized if the security was sold immediately.