In June 2011, the FASB issued an update to the accounting standard regarding comprehensive income.  This update  eliminates the prior presentation options related to comprehensive income and provides an entity with the option to present the  components of net income, other comprehensive income and total comprehensive income, either in a single continuous  statement of comprehensive income or in two separate but consecutive statements.  We adopted this update effective January 1,  2012, and elected to present the components of net income, other comprehensive income and total comprehensive income in  two separate but consecutive statements. Regardless of which option an entity chooses, the entity will be required to present, on  the face of the consolidated financial statements, reclassification adjustments for items that are reclassified from other  comprehensive income to net income in the statements where the components of net income and the components of other  comprehensive income are presented. In December 2011, the FASB deferred the effective date for the requirement to present  reclassification adjustments on the face of the consolidated financial statements for the reclassification of items out of  comprehensive income to net income. Our mortgage insurance and financial guaranty segments are strategic business units that are managed separately on an  operating basis. We allocate corporate income and expenses to our mortgage insurance and financial guaranty segments based  on either an allocated percentage of time spent or internally allocated capital, which is based on GAAP  equity. We allocate  corporate cash and investments to our segments based on internally allocated capital, which is based on relative GAAP  equity  of each segment. The results for each segment for each reporting period can cause significant volatility in internally allocated  capital based on GAAP equity. Prior to January 1, 2011, we also had a third segment—financial services. 3. Segment Reporting 187 Radian Group Inc. Notes to Consolidated Financial Statements - (Continued)