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2,300 | the baton trials include baton-rcc , a phase 2 exploratory biomarker study in patients with advanced rcc , which completed enrollment in early 2012. the second baton study underway is baton-crc , a phase 2 clinical trial evaluating tivozanib in combination with modified folfox6 ( mfolfox6 ) compared to avastin ยฎ ( bevacizumab ) in combination with mfolfox6 as first-line therapy in patients with advanced metastatic colorectal cancer , or crc . additionally , we expect to initiate further clinical evaluation of tivozanib in breast cancer in 2012 as part of our baton program . 79 we expect that the results of all of our phase 1 and phase 2 trials will help to inform our clinical development plans for tivozanib as a monotherapy and in combination with other anti-cancer therapies in multiple cancer indications . we acquired exclusive rights to develop and commercialize tivozanib worldwide outside of asia pursuant to a license agreement we entered into with kirin brewery co. ltd. ( now kyowa hakko kirin ) , or khk , in 2006. under the license agreement , we obtained an exclusive license to research , develop , manufacture and commercialize tivozanib , pharmaceutical compositions thereof and associated biomarkers for the diagnosis , prevention and treatment of any and all human diseases and conditions outside of asia . khk has retained all rights to tivozanib in asia . we have obligations to make milestone and royalty payments to khk . the royalty rates range from the low to mid-teens as a percentage of our net sales of tivozanib . we are also obligated to pay a specified percentage of certain amounts we receive from any third party sublicensees , including astellas . as discussed below under the heading ยstrategic partnerships , ย we entered into a strategic collaboration with astellas in which we have agreed to share responsibility , including all profits and losses , with astellas for continued development and commercialization of tivozanib in north america and europe . throughout the rest of the world , outside of north america , europe and asia , we granted astellas an exclusive , royalty-bearing license to develop and commercialize tivozanib . in addition to tivozanib , we have a pipeline of monoclonal antibodies derived from our proprietary human response platform . ficlatuzumab , our next most advanced product candidate , is an antibody which binds to hepatocyte growth factor , or hgf , thereby blocking its function . we have completed two phase 1 clinical trials of ficlatuzumab demonstrating the ability to combine ficlatuzumab with epidermal growth factor receptor , or egfr , inhibitors tarceva ยฎ and iressa ยฎ . in may 2010 , we initiated a phase 2 clinical trial evaluating ficlatuzumab in patients with non-small cell lung cancer . this is a first-line study comparing ficlatuzumab in combination with iressa versus iressa monotherapy . we anticipate announcing data from the ficlatuzumab phase 2 trial in the second half of 2012. we have also identified a number of other promising targets for the development of novel cancer therapeutics using our human response platform . we have preclinical and discovery antibody programs underway focused on targets that appear to be important drivers of tumor growth , including our third clinical candidate av-203 , which targets the erbb3 receptor ( partnered with biogen idec , inc. , or biogen idec ) , as well as programs directed toward the ron receptor ( recepteur d'origine nantais ) ( partnered with centocor ortho biotech inc. , or centocor ) . we expect to initiate clinical development with av-203 in the first half of 2012. our proprietary human response platform was designed to overcome many of the limitations of traditional approaches to modeling human cancer . the traditional method of modeling human cancer uses a model referred to as a xenograft . a xenograft model is created by adapting cells from a human tumor to grow in a petri dish , and then injecting these cells in a mouse , where they grow into tumors . however , the resulting tumors differ from the original tumor in important respects , and , accordingly , xenograft models are often poor predictors of the success of cancer drugs in human clinical trials . in our human response platform , we use patented genetic engineering techniques to grow populations of spontaneous tumors in animals containing human-relevant , cancer-causing mutations and tumor variation akin to what is seen in populations of human tumors . because we believe that these populations of tumors better replicate what is seen in human cancer , we believe that our human response platform provides us with unique insights into cancer biology and mechanisms of drug response and resistance , and represents a significant improvement over traditional approaches . we are utilizing this human response platform alone and with our strategic partners to ( i ) identify and validate target genes which drive tumor growth , ( ii ) evaluate drugs which can block the function of these targets and ( iii ) identify biomarkers , which are indicators of drug response and resistance in patients , in an effort to evaluate which patients are most likely to respond favorably to treatment with such drugs . the potential identification and development of relevant biomarkers through our human response platform is a core component of our oncology drug development efforts . our goal is to utilize the biomarker data from baton-crc and other baton clinical trials to further inform our clinical development strategy . 80 we have devoted substantially all of our resources to our drug discovery efforts comprising research and development , conducting clinical trials for our product candidates , protecting our intellectual property and the general and administrative support of these operations . story_separator_special_tag we allocated $ 120.2 million of the up-front consideration from astellas to the co-exclusive license in north america and europe and $ 4.8 million of the up-front consideration from astellas to the combined deliverable representing a royalty-bearing license to develop and commercialize tivozanib in the royalty-bearing territory along with our obligation to provide access to clinical and regulatory information resulting from the activities in north america and europe to astellas for its use in the royalty-bearing territory . the relative selling price for our obligation to supply clinical material to astellas for development in the royalty-bearing territory had de minimus value . we recorded the $ 120.2 million relative selling price of the co-exclusive license granted in north america and europe as collaboration revenue during the three months ended march 31 , 2011 upon delivery of the license , and deferred approximately $ 4.8 million of revenue representing the relative selling price of the royalty-bearing license to develop and commercialize tivozanib in the royalty-bearing territory along with our obligation to 84 provide access to clinical and regulatory information resulting from the activities in north america and europe to astellas for its use in the royalty-bearing territory . we are recording the $ 4.8 million ratably over our period of performance through april 2022 , the remaining patent life of tivozanib . we estimated the period of performance considering that we plan to develop tivozanib with astellas in several indications outside of rcc , including in breast cancer and colorectal cancer and potentially in other cancer indications . the clinical development of tivozanib in these indications is in earlier stages of development and , as a result , the clinical development timeline is uncertain and is expected to change as we obtain additional clinical data in these indications . as a result , we estimated the period of performance as the remaining patent life of tivozanib as it represents the longest period over which development of tivozanib could occur . we reassess the period of performance at each reporting period . we recorded approximately $ 376,000 of revenue during the year ended december 31 , 2011 associated with the royalty territory deliverable . centocor ortho biotech in may 2011 , we entered into an exclusive license agreement with centocor for the worldwide development and commercialization of our internally-discovered antibodies targeting the ron receptor , including the grant to centocor of an exclusive , worldwide license to our proprietary ron-driven tumor models . we also granted centocor a nonexclusive , non-sublicensable , worldwide license to our proprietary list of human genes intended to predict correlation of response to ron-targeted antibodies , or our ron index . centocor is responsible for all clinical development , manufacturing and commercialization activities and costs . subject to an agreed-upon research plan and budget , centocor will also fund certain research for a three-year term to be conducted by us , including translational research studies using our proprietary human response platform to identify biomarkers for patients most likely to benefit from treatment with ron targeted antibodies . in connection with the centocor license agreement , we received a one-time cash payment in the amount of $ 7.5 million and a separate equity investment in the amount of approximately $ 7.5 million through the purchase by johnson & johnson development corporation , an affiliate of centocor , of 438,340 newly issued shares of our common stock at a purchase price of $ 17.11 per share . centocor also agreed to fund certain research and development activities . milestone payments for the successful development and commercialization of a ron-targeted antibody , if all approvals in multiple indications and all sales milestones are achieved , could total , in the aggregate , $ 540 million , comprised of ( i ) up to $ 40 million in substantive milestone payments upon achievement of specified clinical and development milestone events , ( ii ) up to $ 165 million in substantive milestone payments upon achievement of specified regulatory milestone events in connection with specified regulatory filings , and receipt of marketing approvals , and ( iii ) up to $ 335 million in milestone payments upon the achievement of specified sales events . we could earn the first clinical and development milestone of $ 2.0 million under the centocor license agreement upon the selection of a lead antibody for entry into pre-clinical studies , with respect to the first licensed product under the agreement . we expect to achieve this milestone during the year ending december 31 , 2012. upon commercialization , we are eligible to receive tiered double-digit royalty payments on centocor 's net sales of any ron-targeted antibody , as a percentage of net sales . centocor 's royalty obligations in a particular country begin on the date of first commercial sale of a product in that country , and end on the later of 10 years after the date of first commercial sale of the product in that country or the date of the last to expire of the issued patents covering the product in that country . all milestone payments and royalties will be reduced by a specified percentage if centocor develops or commercializes a ron-targeted antibody which has incorporated significant , meaningful improvements made after a specified period by centocor to the antibodies delivered by us . the royalties will also be reduced by a specified percentage on a country-by-country basis upon the entry of a generic competitor . the centocor license agreement will remain in effect until the expiration of all of centocor 's royalty obligations to us , determined on a product-by-product and country-by-country basis . prior to the filing of an investigational new drug application with the fda , or a similar application filed with another regulatory authority outside of the united states ( which we refer to as ind submission ) , centocor has the right to terminate the centocor license agreement at will upon 90 days written notice to us .
| liquidity and capital resources we have funded our operations principally through the sale of equity securities sold in connection with our public offerings , private placements of equity securities , revenue and expense reimbursements from strategic partnerships , debt financing and interest income . as of december 31 , 2011 , we have received gross proceeds of $ 89.7 million from the sale of common stock in our initial public offering , $ 60.8 million from our private placement of shares of our common stock to a group of institutional and accredited investors , $ 111.2 million from our follow-on offering of shares of our common stock , $ 169.6 million from the sale of convertible preferred stock prior to becoming a public company , and $ 7.5 million from the sale of common stock to johnson & johnson development corporation in connection with the centocor license agreement . as of december 31 , 2011 , we had received an aggregate of $ 311.2 million in cash from each of our three agreements with merck and our agreements with osi pharmaceuticals , biogen idec , astellas , centocor and eli lilly , and $ 25.0 million in funding from our debt financing with hercules technology growth and certain of its affiliates . as of december 31 , 2011 , we had cash , cash equivalents and marketable securities of approximately $ 275.4 million . currently , our funds are invested in a money market fund , u.s. government agency securities , a foreign government bond , an asset-backed security , and corporate debt securities , including commercial paper . the following table sets forth the primary sources and uses of cash for each of the periods set forth below : replace_table_token_13_th during the years ended december 31 , 2011 , 2010 and 2009 , our operating activities provided ( used ) cash of $ 26.5 million , $ ( 51.8 ) million and $ ( 10.0 ) million , respectively .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources we have funded our operations principally through the sale of equity securities sold in connection with our public offerings , private placements of equity securities , revenue and expense reimbursements from strategic partnerships , debt financing and interest income . as of december 31 , 2011 , we have received gross proceeds of $ 89.7 million from the sale of common stock in our initial public offering , $ 60.8 million from our private placement of shares of our common stock to a group of institutional and accredited investors , $ 111.2 million from our follow-on offering of shares of our common stock , $ 169.6 million from the sale of convertible preferred stock prior to becoming a public company , and $ 7.5 million from the sale of common stock to johnson & johnson development corporation in connection with the centocor license agreement . as of december 31 , 2011 , we had received an aggregate of $ 311.2 million in cash from each of our three agreements with merck and our agreements with osi pharmaceuticals , biogen idec , astellas , centocor and eli lilly , and $ 25.0 million in funding from our debt financing with hercules technology growth and certain of its affiliates . as of december 31 , 2011 , we had cash , cash equivalents and marketable securities of approximately $ 275.4 million . currently , our funds are invested in a money market fund , u.s. government agency securities , a foreign government bond , an asset-backed security , and corporate debt securities , including commercial paper . the following table sets forth the primary sources and uses of cash for each of the periods set forth below : replace_table_token_13_th during the years ended december 31 , 2011 , 2010 and 2009 , our operating activities provided ( used ) cash of $ 26.5 million , $ ( 51.8 ) million and $ ( 10.0 ) million , respectively .
```
Suspicious Activity Report : the baton trials include baton-rcc , a phase 2 exploratory biomarker study in patients with advanced rcc , which completed enrollment in early 2012. the second baton study underway is baton-crc , a phase 2 clinical trial evaluating tivozanib in combination with modified folfox6 ( mfolfox6 ) compared to avastin ยฎ ( bevacizumab ) in combination with mfolfox6 as first-line therapy in patients with advanced metastatic colorectal cancer , or crc . additionally , we expect to initiate further clinical evaluation of tivozanib in breast cancer in 2012 as part of our baton program . 79 we expect that the results of all of our phase 1 and phase 2 trials will help to inform our clinical development plans for tivozanib as a monotherapy and in combination with other anti-cancer therapies in multiple cancer indications . we acquired exclusive rights to develop and commercialize tivozanib worldwide outside of asia pursuant to a license agreement we entered into with kirin brewery co. ltd. ( now kyowa hakko kirin ) , or khk , in 2006. under the license agreement , we obtained an exclusive license to research , develop , manufacture and commercialize tivozanib , pharmaceutical compositions thereof and associated biomarkers for the diagnosis , prevention and treatment of any and all human diseases and conditions outside of asia . khk has retained all rights to tivozanib in asia . we have obligations to make milestone and royalty payments to khk . the royalty rates range from the low to mid-teens as a percentage of our net sales of tivozanib . we are also obligated to pay a specified percentage of certain amounts we receive from any third party sublicensees , including astellas . as discussed below under the heading ยstrategic partnerships , ย we entered into a strategic collaboration with astellas in which we have agreed to share responsibility , including all profits and losses , with astellas for continued development and commercialization of tivozanib in north america and europe . throughout the rest of the world , outside of north america , europe and asia , we granted astellas an exclusive , royalty-bearing license to develop and commercialize tivozanib . in addition to tivozanib , we have a pipeline of monoclonal antibodies derived from our proprietary human response platform . ficlatuzumab , our next most advanced product candidate , is an antibody which binds to hepatocyte growth factor , or hgf , thereby blocking its function . we have completed two phase 1 clinical trials of ficlatuzumab demonstrating the ability to combine ficlatuzumab with epidermal growth factor receptor , or egfr , inhibitors tarceva ยฎ and iressa ยฎ . in may 2010 , we initiated a phase 2 clinical trial evaluating ficlatuzumab in patients with non-small cell lung cancer . this is a first-line study comparing ficlatuzumab in combination with iressa versus iressa monotherapy . we anticipate announcing data from the ficlatuzumab phase 2 trial in the second half of 2012. we have also identified a number of other promising targets for the development of novel cancer therapeutics using our human response platform . we have preclinical and discovery antibody programs underway focused on targets that appear to be important drivers of tumor growth , including our third clinical candidate av-203 , which targets the erbb3 receptor ( partnered with biogen idec , inc. , or biogen idec ) , as well as programs directed toward the ron receptor ( recepteur d'origine nantais ) ( partnered with centocor ortho biotech inc. , or centocor ) . we expect to initiate clinical development with av-203 in the first half of 2012. our proprietary human response platform was designed to overcome many of the limitations of traditional approaches to modeling human cancer . the traditional method of modeling human cancer uses a model referred to as a xenograft . a xenograft model is created by adapting cells from a human tumor to grow in a petri dish , and then injecting these cells in a mouse , where they grow into tumors . however , the resulting tumors differ from the original tumor in important respects , and , accordingly , xenograft models are often poor predictors of the success of cancer drugs in human clinical trials . in our human response platform , we use patented genetic engineering techniques to grow populations of spontaneous tumors in animals containing human-relevant , cancer-causing mutations and tumor variation akin to what is seen in populations of human tumors . because we believe that these populations of tumors better replicate what is seen in human cancer , we believe that our human response platform provides us with unique insights into cancer biology and mechanisms of drug response and resistance , and represents a significant improvement over traditional approaches . we are utilizing this human response platform alone and with our strategic partners to ( i ) identify and validate target genes which drive tumor growth , ( ii ) evaluate drugs which can block the function of these targets and ( iii ) identify biomarkers , which are indicators of drug response and resistance in patients , in an effort to evaluate which patients are most likely to respond favorably to treatment with such drugs . the potential identification and development of relevant biomarkers through our human response platform is a core component of our oncology drug development efforts . our goal is to utilize the biomarker data from baton-crc and other baton clinical trials to further inform our clinical development strategy . 80 we have devoted substantially all of our resources to our drug discovery efforts comprising research and development , conducting clinical trials for our product candidates , protecting our intellectual property and the general and administrative support of these operations . story_separator_special_tag we allocated $ 120.2 million of the up-front consideration from astellas to the co-exclusive license in north america and europe and $ 4.8 million of the up-front consideration from astellas to the combined deliverable representing a royalty-bearing license to develop and commercialize tivozanib in the royalty-bearing territory along with our obligation to provide access to clinical and regulatory information resulting from the activities in north america and europe to astellas for its use in the royalty-bearing territory . the relative selling price for our obligation to supply clinical material to astellas for development in the royalty-bearing territory had de minimus value . we recorded the $ 120.2 million relative selling price of the co-exclusive license granted in north america and europe as collaboration revenue during the three months ended march 31 , 2011 upon delivery of the license , and deferred approximately $ 4.8 million of revenue representing the relative selling price of the royalty-bearing license to develop and commercialize tivozanib in the royalty-bearing territory along with our obligation to 84 provide access to clinical and regulatory information resulting from the activities in north america and europe to astellas for its use in the royalty-bearing territory . we are recording the $ 4.8 million ratably over our period of performance through april 2022 , the remaining patent life of tivozanib . we estimated the period of performance considering that we plan to develop tivozanib with astellas in several indications outside of rcc , including in breast cancer and colorectal cancer and potentially in other cancer indications . the clinical development of tivozanib in these indications is in earlier stages of development and , as a result , the clinical development timeline is uncertain and is expected to change as we obtain additional clinical data in these indications . as a result , we estimated the period of performance as the remaining patent life of tivozanib as it represents the longest period over which development of tivozanib could occur . we reassess the period of performance at each reporting period . we recorded approximately $ 376,000 of revenue during the year ended december 31 , 2011 associated with the royalty territory deliverable . centocor ortho biotech in may 2011 , we entered into an exclusive license agreement with centocor for the worldwide development and commercialization of our internally-discovered antibodies targeting the ron receptor , including the grant to centocor of an exclusive , worldwide license to our proprietary ron-driven tumor models . we also granted centocor a nonexclusive , non-sublicensable , worldwide license to our proprietary list of human genes intended to predict correlation of response to ron-targeted antibodies , or our ron index . centocor is responsible for all clinical development , manufacturing and commercialization activities and costs . subject to an agreed-upon research plan and budget , centocor will also fund certain research for a three-year term to be conducted by us , including translational research studies using our proprietary human response platform to identify biomarkers for patients most likely to benefit from treatment with ron targeted antibodies . in connection with the centocor license agreement , we received a one-time cash payment in the amount of $ 7.5 million and a separate equity investment in the amount of approximately $ 7.5 million through the purchase by johnson & johnson development corporation , an affiliate of centocor , of 438,340 newly issued shares of our common stock at a purchase price of $ 17.11 per share . centocor also agreed to fund certain research and development activities . milestone payments for the successful development and commercialization of a ron-targeted antibody , if all approvals in multiple indications and all sales milestones are achieved , could total , in the aggregate , $ 540 million , comprised of ( i ) up to $ 40 million in substantive milestone payments upon achievement of specified clinical and development milestone events , ( ii ) up to $ 165 million in substantive milestone payments upon achievement of specified regulatory milestone events in connection with specified regulatory filings , and receipt of marketing approvals , and ( iii ) up to $ 335 million in milestone payments upon the achievement of specified sales events . we could earn the first clinical and development milestone of $ 2.0 million under the centocor license agreement upon the selection of a lead antibody for entry into pre-clinical studies , with respect to the first licensed product under the agreement . we expect to achieve this milestone during the year ending december 31 , 2012. upon commercialization , we are eligible to receive tiered double-digit royalty payments on centocor 's net sales of any ron-targeted antibody , as a percentage of net sales . centocor 's royalty obligations in a particular country begin on the date of first commercial sale of a product in that country , and end on the later of 10 years after the date of first commercial sale of the product in that country or the date of the last to expire of the issued patents covering the product in that country . all milestone payments and royalties will be reduced by a specified percentage if centocor develops or commercializes a ron-targeted antibody which has incorporated significant , meaningful improvements made after a specified period by centocor to the antibodies delivered by us . the royalties will also be reduced by a specified percentage on a country-by-country basis upon the entry of a generic competitor . the centocor license agreement will remain in effect until the expiration of all of centocor 's royalty obligations to us , determined on a product-by-product and country-by-country basis . prior to the filing of an investigational new drug application with the fda , or a similar application filed with another regulatory authority outside of the united states ( which we refer to as ind submission ) , centocor has the right to terminate the centocor license agreement at will upon 90 days written notice to us .
|
2,301 | this was primarily due to higher atm transaction volume and fees , including an increase in transaction volume from atm portfolios acquired in late 2015 . 46 costs and expenses games cost of revenues ( exclusive of depreciation and amortization ) increased by $ 3.3 million , or 7 % , to $ 50.3 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily due to higher costs associated with the increased unit sales volume . payments cost of revenues ( exclusive of depreciation and amortization ) increased by $ 35.3 million , or 8 % , to $ 498.7 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily due to the atm portfolio acquisitions and higher commission expense on atm revenues . operating expenses increased by $ 17.5 million , or 17 % , to $ 118.7 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily due to the impact of a $ 14.4 million gain contingency settlement during the prior year and a $ 4.3 million write-down of a note receivable and warrant associated with bee cave games , inc. goodwill impairment increased by $ 71.3 million , or 95 % , to $ 146.3 million for the year ended december 31 , 2016 , as compared to the prior year period . this non-cash charge was a result of our october 1 , 2016 annual goodwill assessment and attributable to our games reporting unit . depreciation increased by $ 4.4 million , or 10 % , to $ 50.0 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily related to increased fixed assets being placed in service . amortization increased by $ 9.2 million , or 11 % , to $ 94.6 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily related to an increase in intangible assets being placed in service related to developed technology and software . primarily as a result of the factors described above , operating loss increased by $ 108.8 million , or 1,118 % , to an operating loss of $ 118.6 million for the year ended december 31 , 2016 , as compared to the prior year period . the operating loss margin increased to 14 % for the year ended december 31 , 2016 , as compared to 1 % for the prior year period . excluding the goodwill impairment charge in 2016 and 2015 , the operating margin would have been approximately 3 % and 8 % , respectively . interest expense , net of interest income , decreased by $ 1.1 million , or 1 % , to $ 99.2 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily related to lower outstanding debt balances , the write-off of debt issuance costs related to our refinanced secured notes , partially offset by a higher interest rate under the contract cash solutions agreement with wells fargo . there was no loss on extinguishment of debt for the year ended december 31 , 2016 , as compared to a loss on extinguishment of debt of $ 13.1 million in the prior year period . income tax provision was $ 31.7 million for the year ended december 31 , 2016 , as compared to an income tax benefit in the prior year period . this was primarily due to an increase in our valuation allowance for deferred tax assets . the income tax provision reflected a negative effective income tax rate of 14.6 % for the year ended december 31 , 2016 , which was less than the statutory federal rate of 35.0 % primarily due to an increase in our valuation allowance for deferred tax assets and the impairment of goodwill , for which no tax benefit is provided for book purposes . the income tax benefit reflected an effective income tax rate of 14.7 % for the prior year , which was greater than the statutory federal rate of 35.0 % , primarily due to the impairment of goodwill for which no tax benefit is provided for book purposes . primarily as a result of the foregoing , net loss increased by $ 144.5 million , or 138 % , to $ 249.5 million for the year ended december 31 , 2016 , as compared to the prior year period . 47 year ended december 31 , 2015 compared to year ended december 31 , 2014 : the following table presents our consolidated results of operations ( in thousands ) * : replace_table_token_6_th * rounding may cause variances . total revenues total revenues increased by $ 233.9 million , or 39 % , to $ 827.0 million for the year ended december 31 , 2015 , as compared to the prior year period . games revenues increased to $ 207.0 million , or 2,795 % , to $ 214.4 million for the year ended december 31 , 2015 , as a result of a full year of operations related to the acquired games business in december 2014. payments revenues increased by $ 26.9 million , or 5 % , to $ 612.6 million for the year ended december 31 , 2015 , as compared to the prior year period . this was primarily due to higher dollar and transaction volumes and sales of compliance related solutions . story_separator_special_tag player terminals and related components and equipment are included in our rental pool . the rental pool can be further delineated as โ rental pool โ deployed , โ which consists of assets deployed at customer sites under participation arrangements , and โ rental pool โ undeployed , โ which consists of assets held by us that are available for customer use . rental pool โ undeployed consists of both new units awaiting deployment to a customer site and previously deployed units currently back with us to be refurbished awaiting re-deployment . routine maintenance of property , equipment and leased gaming equipment is expensed in the period incurred , while major component upgrades are capitalized and depreciated over the estimated remaining useful life of the component . sales and retirements of depreciable property are recorded by removing the related cost and accumulated depreciation from the accounts . gains or losses on sales and retirements of property are reflected in our consolidated statements of ( loss ) income and comprehensive ( loss ) income . property , equipment and leased assets are reviewed for impairment whenever events or circumstances indicate that their carrying amounts may not be recoverable . impairment is indicated when undiscounted future cash flows do not exceed the asset 's carrying value . goodwill . we had approximately $ 640.5 million of goodwill on our consolidated balance sheets at december 31 , 2016 resulting from acquisitions of other businesses . all of our goodwill was subject to our annual goodwill impairment testing . we test for impairment annually on a reporting unit basis , at the beginning of our fourth fiscal quarter , or more often under certain circumstances . the annual impairment test is completed using either : a qualitative step 0 assessment based on reviewing relevant events and circumstances ; or a quantitative step 1 assessment , which determines the fair value of the reporting unit , using an income approach that discounts future cash flows based on the estimated future results of our reporting units and a market approach that compares market multiples of comparable companies to determine whether or not any impairment exists . if the fair value of a reporting unit is less than its carrying amount , we use the step 2 assessment to determine the impairment . in connection with our annual goodwill impairment testing process for 2016 and 2015 , we determined that our games reporting unit did not pass the step one test , and therefore , we were required to conduct a step two analysis to determine the amount of impairment , which was approximately $ 146.3 million and $ 75.0 million for the years ended december 31 , 2016 and 2015 , respectively . the fair value substantially exceeded the carrying value for each of the cash access , kiosk sales and services , central credit and everi compliance reporting units as of december 31 , 2016 and 2015 , respectively . the company 's aggregate goodwill impairment balance was $ 221.3 million and $ 75.0 million , as of december 31 , 2016 and 2015 , respectively . the impairment analysis was primarily based upon limited growth and capital expenditure constraints in the gaming industry , consolidation and increased competition in the gaming manufacturing space , stock market volatility , global and domestic economic uncertainty and lower than forecasted operating profits and cash flows in 2016 and 2015. based on these indicators , we revised our estimates and assumptions for the games reporting unit . 51 management performs its annual forecasting process , which , among other factors , includes reviewing recent historical results , company-specific variables and industry trends . this process is generally completed in the fourth quarter and considered in conjunction with the annual goodwill impairment evaluation . โ the annual evaluation of goodwill and other nonโamortizing intangible assets requires the use of estimates about future operating results of each reporting unit to determine its estimated fair value . changes in forecasted operations can materially affect these estimates , which could materially affect our results of operations . the estimate of fair value requires significant judgment and we base our fair value estimates on assumptions that we believe to be reasonable ; but that are unpredictable and inherently uncertain , including : estimates of future growth rates , operating margins and assumptions about the overall economic climate as well as the competitive environment for our reporting units . there can be no assurance that our estimates and assumptions made for purposes of our goodwill testing as of the time of testing will prove to be accurate predictions of the future . if our assumptions regarding business plans , competitive environments or anticipated growth rates are not correct , we may be required to record goodwill impairment charges in future periods , whether in connection with our next annual impairment testing , or earlier , if an indicator of an impairment is present prior to our next annual evaluation . our reporting units are identified as operating segments or one level below . reporting units must : ( a ) engage in business activities from which they earn revenues and incur expenses ; ( b ) have operating results that are regularly reviewed by our chief operating decision makers to ascertain the resources to be allocated to the segment and assess its performance ; and ( c ) have discrete financial information available . as of december 31 , 2016 , our reporting units included : games , cash access , kiosk sales and services , central credit , and everi compliance . during the year ended december 31 , 2016 , the company combined its cash advance , atm and check services reporting units into a single cash access reporting unit to be consistent with the current corporate structure and segment management . the use of different assumptions , estimates or judgments in either step of the goodwill impairment testing process , such
| cash flows the following table summarizes our cash flows for the years ended december 31 , 2016 , 2015 and 2014 ( in thousands ) : replace_table_token_9_th cash flows provided by operating activities were $ 131.7 million , $ 124.6 million , and $ 24.5 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . cash flows provided by operating activities increased by $ 7.1 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily due to the timing of the settlement of cash access transactions . cash flows provided by operating activities increased by $ 100.1 million for the year ended december 31 , 2015 , as compared to the prior year period . this was primarily due to increased operations from the acquisition of our games business in december 2014. cash flows used in investing activities were $ 88.1 million , $ 85.5 million , and $ 1.1 billion for the years ended december 31 , 2016 , 2015 and 2014 , respectively . cash flows used in investing activities increased by $ 2.5 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily due to an increase in capital expenditures in our games segment related to our installed base of leased gaming assets and placement fee arrangements , partially offset by a reduction in capital expenditures in our payments segment . cash flows used in investing activities increased by $ 1.0 billion for the year ended december 31 , 2015 , as compared to the prior year period . this was primarily due to the use of proceeds raised to fund the merger in 2014 , partially offset by an increase in capital expenditures in 2015. cash flows used in financing activities were relatively consistent for the years ended december 31 , 2016 and 2015. this was primarily associated with the repayments of debt .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the following table summarizes our cash flows for the years ended december 31 , 2016 , 2015 and 2014 ( in thousands ) : replace_table_token_9_th cash flows provided by operating activities were $ 131.7 million , $ 124.6 million , and $ 24.5 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . cash flows provided by operating activities increased by $ 7.1 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily due to the timing of the settlement of cash access transactions . cash flows provided by operating activities increased by $ 100.1 million for the year ended december 31 , 2015 , as compared to the prior year period . this was primarily due to increased operations from the acquisition of our games business in december 2014. cash flows used in investing activities were $ 88.1 million , $ 85.5 million , and $ 1.1 billion for the years ended december 31 , 2016 , 2015 and 2014 , respectively . cash flows used in investing activities increased by $ 2.5 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily due to an increase in capital expenditures in our games segment related to our installed base of leased gaming assets and placement fee arrangements , partially offset by a reduction in capital expenditures in our payments segment . cash flows used in investing activities increased by $ 1.0 billion for the year ended december 31 , 2015 , as compared to the prior year period . this was primarily due to the use of proceeds raised to fund the merger in 2014 , partially offset by an increase in capital expenditures in 2015. cash flows used in financing activities were relatively consistent for the years ended december 31 , 2016 and 2015. this was primarily associated with the repayments of debt .
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Suspicious Activity Report : this was primarily due to higher atm transaction volume and fees , including an increase in transaction volume from atm portfolios acquired in late 2015 . 46 costs and expenses games cost of revenues ( exclusive of depreciation and amortization ) increased by $ 3.3 million , or 7 % , to $ 50.3 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily due to higher costs associated with the increased unit sales volume . payments cost of revenues ( exclusive of depreciation and amortization ) increased by $ 35.3 million , or 8 % , to $ 498.7 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily due to the atm portfolio acquisitions and higher commission expense on atm revenues . operating expenses increased by $ 17.5 million , or 17 % , to $ 118.7 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily due to the impact of a $ 14.4 million gain contingency settlement during the prior year and a $ 4.3 million write-down of a note receivable and warrant associated with bee cave games , inc. goodwill impairment increased by $ 71.3 million , or 95 % , to $ 146.3 million for the year ended december 31 , 2016 , as compared to the prior year period . this non-cash charge was a result of our october 1 , 2016 annual goodwill assessment and attributable to our games reporting unit . depreciation increased by $ 4.4 million , or 10 % , to $ 50.0 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily related to increased fixed assets being placed in service . amortization increased by $ 9.2 million , or 11 % , to $ 94.6 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily related to an increase in intangible assets being placed in service related to developed technology and software . primarily as a result of the factors described above , operating loss increased by $ 108.8 million , or 1,118 % , to an operating loss of $ 118.6 million for the year ended december 31 , 2016 , as compared to the prior year period . the operating loss margin increased to 14 % for the year ended december 31 , 2016 , as compared to 1 % for the prior year period . excluding the goodwill impairment charge in 2016 and 2015 , the operating margin would have been approximately 3 % and 8 % , respectively . interest expense , net of interest income , decreased by $ 1.1 million , or 1 % , to $ 99.2 million for the year ended december 31 , 2016 , as compared to the prior year period . this was primarily related to lower outstanding debt balances , the write-off of debt issuance costs related to our refinanced secured notes , partially offset by a higher interest rate under the contract cash solutions agreement with wells fargo . there was no loss on extinguishment of debt for the year ended december 31 , 2016 , as compared to a loss on extinguishment of debt of $ 13.1 million in the prior year period . income tax provision was $ 31.7 million for the year ended december 31 , 2016 , as compared to an income tax benefit in the prior year period . this was primarily due to an increase in our valuation allowance for deferred tax assets . the income tax provision reflected a negative effective income tax rate of 14.6 % for the year ended december 31 , 2016 , which was less than the statutory federal rate of 35.0 % primarily due to an increase in our valuation allowance for deferred tax assets and the impairment of goodwill , for which no tax benefit is provided for book purposes . the income tax benefit reflected an effective income tax rate of 14.7 % for the prior year , which was greater than the statutory federal rate of 35.0 % , primarily due to the impairment of goodwill for which no tax benefit is provided for book purposes . primarily as a result of the foregoing , net loss increased by $ 144.5 million , or 138 % , to $ 249.5 million for the year ended december 31 , 2016 , as compared to the prior year period . 47 year ended december 31 , 2015 compared to year ended december 31 , 2014 : the following table presents our consolidated results of operations ( in thousands ) * : replace_table_token_6_th * rounding may cause variances . total revenues total revenues increased by $ 233.9 million , or 39 % , to $ 827.0 million for the year ended december 31 , 2015 , as compared to the prior year period . games revenues increased to $ 207.0 million , or 2,795 % , to $ 214.4 million for the year ended december 31 , 2015 , as a result of a full year of operations related to the acquired games business in december 2014. payments revenues increased by $ 26.9 million , or 5 % , to $ 612.6 million for the year ended december 31 , 2015 , as compared to the prior year period . this was primarily due to higher dollar and transaction volumes and sales of compliance related solutions . story_separator_special_tag player terminals and related components and equipment are included in our rental pool . the rental pool can be further delineated as โ rental pool โ deployed , โ which consists of assets deployed at customer sites under participation arrangements , and โ rental pool โ undeployed , โ which consists of assets held by us that are available for customer use . rental pool โ undeployed consists of both new units awaiting deployment to a customer site and previously deployed units currently back with us to be refurbished awaiting re-deployment . routine maintenance of property , equipment and leased gaming equipment is expensed in the period incurred , while major component upgrades are capitalized and depreciated over the estimated remaining useful life of the component . sales and retirements of depreciable property are recorded by removing the related cost and accumulated depreciation from the accounts . gains or losses on sales and retirements of property are reflected in our consolidated statements of ( loss ) income and comprehensive ( loss ) income . property , equipment and leased assets are reviewed for impairment whenever events or circumstances indicate that their carrying amounts may not be recoverable . impairment is indicated when undiscounted future cash flows do not exceed the asset 's carrying value . goodwill . we had approximately $ 640.5 million of goodwill on our consolidated balance sheets at december 31 , 2016 resulting from acquisitions of other businesses . all of our goodwill was subject to our annual goodwill impairment testing . we test for impairment annually on a reporting unit basis , at the beginning of our fourth fiscal quarter , or more often under certain circumstances . the annual impairment test is completed using either : a qualitative step 0 assessment based on reviewing relevant events and circumstances ; or a quantitative step 1 assessment , which determines the fair value of the reporting unit , using an income approach that discounts future cash flows based on the estimated future results of our reporting units and a market approach that compares market multiples of comparable companies to determine whether or not any impairment exists . if the fair value of a reporting unit is less than its carrying amount , we use the step 2 assessment to determine the impairment . in connection with our annual goodwill impairment testing process for 2016 and 2015 , we determined that our games reporting unit did not pass the step one test , and therefore , we were required to conduct a step two analysis to determine the amount of impairment , which was approximately $ 146.3 million and $ 75.0 million for the years ended december 31 , 2016 and 2015 , respectively . the fair value substantially exceeded the carrying value for each of the cash access , kiosk sales and services , central credit and everi compliance reporting units as of december 31 , 2016 and 2015 , respectively . the company 's aggregate goodwill impairment balance was $ 221.3 million and $ 75.0 million , as of december 31 , 2016 and 2015 , respectively . the impairment analysis was primarily based upon limited growth and capital expenditure constraints in the gaming industry , consolidation and increased competition in the gaming manufacturing space , stock market volatility , global and domestic economic uncertainty and lower than forecasted operating profits and cash flows in 2016 and 2015. based on these indicators , we revised our estimates and assumptions for the games reporting unit . 51 management performs its annual forecasting process , which , among other factors , includes reviewing recent historical results , company-specific variables and industry trends . this process is generally completed in the fourth quarter and considered in conjunction with the annual goodwill impairment evaluation . โ the annual evaluation of goodwill and other nonโamortizing intangible assets requires the use of estimates about future operating results of each reporting unit to determine its estimated fair value . changes in forecasted operations can materially affect these estimates , which could materially affect our results of operations . the estimate of fair value requires significant judgment and we base our fair value estimates on assumptions that we believe to be reasonable ; but that are unpredictable and inherently uncertain , including : estimates of future growth rates , operating margins and assumptions about the overall economic climate as well as the competitive environment for our reporting units . there can be no assurance that our estimates and assumptions made for purposes of our goodwill testing as of the time of testing will prove to be accurate predictions of the future . if our assumptions regarding business plans , competitive environments or anticipated growth rates are not correct , we may be required to record goodwill impairment charges in future periods , whether in connection with our next annual impairment testing , or earlier , if an indicator of an impairment is present prior to our next annual evaluation . our reporting units are identified as operating segments or one level below . reporting units must : ( a ) engage in business activities from which they earn revenues and incur expenses ; ( b ) have operating results that are regularly reviewed by our chief operating decision makers to ascertain the resources to be allocated to the segment and assess its performance ; and ( c ) have discrete financial information available . as of december 31 , 2016 , our reporting units included : games , cash access , kiosk sales and services , central credit , and everi compliance . during the year ended december 31 , 2016 , the company combined its cash advance , atm and check services reporting units into a single cash access reporting unit to be consistent with the current corporate structure and segment management . the use of different assumptions , estimates or judgments in either step of the goodwill impairment testing process , such
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2,302 | factors that could cause or contribute to these differences include those discussed below and elsewhere in this annual report , particularly in the โ risk factors โ section . for more information regarding key factors affecting our performance , see โ key factors affecting our performance โ below . overview business etsy operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers . our mission is to โ keep commerce human , โ and we 're committed to using the power of business and technology to strengthen communities and empower people around the world . our primary marketplace , etsy.com , is the global destination for unique and creative goods . the etsy marketplaceconnects creative entrepreneurs with thoughtful consumers looking for items that are intended to be special , reflect their sense of style , or represent a meaningful occasion.our sellers are the heart and soul of etsy , and our technology platform allows our sellers to turn their creative passions into economic opportunity . we have a seller-aligned business model : we make money when our sellers make money . we offer etsy sellers a marketplace with millions of buyers along with a range of seller tools and services that are specifically designed to help our creative entrepreneurs generate more sales and scale their businesses . we are focused on attracting potential buyers to the etsy marketplace for those โ special โ purchaseoccasions that happen throughout the year , and for everyday items that have meaning . we are deepening engagement with our existing buyers by inspiring purchases across our many retail categories and special occasions . special purchases for use in the every day include handmade or vintage unique clothing , accessories , household items , or furniture that the buyer wants to reflect her sense of style . special purchase occasions can occur many times throughout the year and include shopping for special occasions that reflects an individual 's unique style ; gifting that demonstrates thought and care ; and celebrations that express creativity and fun . buyers tell us that they come to etsy because etsy sellers offer items that they ca n't find anywhere else . on august 15 , 2019 , we acquired all of the outstanding capital stock of reverb holdings , inc. ( โ reverb โ ) for $ 270.4 million , net of cash acquired . the reverb marketplace is a leading global online marketplace dedicated to buying and selling new , used , and vintage musical instruments , with a vibrant community of buyers and sellers all over the world . reverb , now a wholly-owned subsidiary of etsy , inc. , is included in all financial and other metrics from august 15 , 2019 ( the date of acquisition ) , unless otherwise noted . our revenue is diversified , generated from a mix of marketplace activities and other optional services we provide to sellers to help them generate more sales and scale their businesses . marketplace revenue is comprised of the fees a seller pays us for marketplace activities . marketplace activities include listing an item for sale , completing transactions between a buyer and a seller , and using our payments services to process payments , including foreign currency transactions . marketplace revenue also includes revenue generated through our commercial partnerships , which was recorded in its own other revenue line prior to the fourth quarter of 2019. services revenue is comprised of the fees a seller pays us for our optional other services ( โ services โ ) . services primarily include advertising services , which allows sellers to pay for prominent placement of their listings in search results ; and shipping labels , which allows sellers in the united states , canada , united kingdom , and australia to purchase discounted shipping labels . our strategy is focused on growing the etsy marketplace in our six core geographies and building a sustainable competitive advantage around four elements of our business that we believe differentiate us from our competitors , or what we call our โ right to win . โ the foundation of etsy 's competitive advantage is our collection of our seller 's unique items , which , we believe , when combined with best-in-class search and discovery , human connections , and a trusted brand , will enable us to continue to stand out among other e-commerce platforms and marketplaces . our investments in product , marketing , and talent will be focused on capitalizing on these four elements of our business . ultimately , the goal of our long-term strategy is to drive 54 more new buyers to the website , give existing buyers reasons to come back more often , encourage buyers to spend more per order , and fuel success for our sellers . we see a number of similarities between the levers of growth for the etsy and reverb marketplaces , including improving search and discovery , making selling and buying easier , and building a global brand and user community . year highlights total revenue was $ 818.4 million in the year ended december 31 , 2019 , driven by growth in both marketplace and services revenue . in the year ended december 31 , 2019 , we recorded net income of $ 95.9 million , and non-gaap adjusted ebitda of $ 186.3 million . see โ non-gaap financial measures โ for more information and for a reconciliation of adjusted ebitda to net income , the most directly comparable financial measure calculated in accordance with gaap . as of december 31 , 2019 , our marketplaces connected 2.7 million active sellers and 46.4 million active buyers , in nearly every country in the world . in the year ended december 31 , 2019 , sellers generated gms of $ 5.0 billion of which approximately 58 % came from purchases made on mobile devices . story_separator_special_tag for the year s ended december 31 , 2019 , 2018 , and 2017 those amounts are as follows : replace_table_token_16_th ( 2 ) $ 2.7 million of restructuring-related stock-based compensation expense has been excluded from the year ended december 31 , 2017 and is included in the restructuring and other exit costs ( income ) line . see footnote ( 5 ) below . total stock-based compensation expense included in the consolidated statements of operations is as follows : replace_table_token_17_th ( 3 ) see โ results of operations โ other expense , net โ for more information on the fluctuation in foreign exchange ( gain ) loss in the years ended december 31 , 2019 , 2018 , and 2017 . ( 4 ) acquisition-related expenses are expenses related to our acquisition of reverb . for further information , see โ note 5โbusiness combinations โ in the notes to consolidated financial statements . 60 ( 5 ) see โ note 17โrestructuring and other exit costs ( income ) โ in the notes to consolidated financial statements for a description of the matters related to these events . total restructuring and other exit costs ( income ) included in the consolidated statements of operations are as follows : replace_table_token_18_th ( 6 ) in the fourth quarter of 2017 , we made the decision to discontinue certain product offerings , including etsy studio and etsy manufacturing , which resulted in the recognition of a $ 3.2 million impairment charge to write the related capitalized web development and internal-use software assets down to zero . this decision was based on our strategy to focus on the growth of the etsy.com marketplace . 61 key factors affecting our performance we believe that our performance and future success depend on a number of factors that present significant opportunities for us but also pose risks and challenges , including those discussed in the section titled โ risk factors . โ our primary marketplace , etsy.com , is the largest driver of our business and thus the following key factors affecting our performance most significantly relate to the etsy marketplace . growth and retention of active buyers and active sellers on the etsy marketplace our success depends in part on the growth and retention of our active buyers and active sellers . our revenue is driven by the number of active buyers , buyer engagement , active sellers , seller engagement , and our ability to maintain a trusted marketplace . we believe two of our most significant opportunities to drive growth in our primary marketplace are to bring new buyers to etsy.com and encourage existing etsy buyers to purchase more frequently . we are particularly focused on increasing our number of habitual buyers , or buyers who have spent $ 200 or more and made purchases on six or more purchase days in the year . we are also focused on keeping our best sellers on the platform and helping them grow their businesses by enhancing the seller tools and services that help drive buyer demand . during 2019 , the etsy marketplace had 19 million new etsy buyers , or buyers who made their first-ever purchase on etsy . gms from new buyers was up 11 % year-over-year and represented approximately 16 % of overall etsy.com gms , a decrease compared to last year . etsy.com gms from existing buyers grew 24 % year-over-year in 2019 and represented approximately 84 % of overall etsy.com gms , an increase compared to last year . repeat purchases demonstrate the loyalty of etsy buyers . in 2019 , on the etsy marketplace , approximately 41.4 % of our active buyers made purchases on two or more days in the previous 12 months , up from 40.1 % in 2018 . habitual buyers represented approximately 5.5 % of etsy.com 's active buyers as of december 31 , 2019 . habitual buyers grew to 2.5 million as of december 31 , 2019 , an increase of 22.9 % compared to 2018 . we aim to increase repeat purchases and habitual buyers by inspiring purchases in additional categories and on additional occasions , building trust in the etsy brand , and removing friction from the buying experience to improve conversion rates . to analyze our retention rates on the etsy marketplace , we measure repeat activity by active buyers and active sellers . 62 active buyer cohorts on the etsy marketplace we refer to active buyers as of december 31 , 2016 as โ 2016 active buyers , โ as of december 31 , 2015 as โ 2015 active buyers , โ as of december 31 , 2014 as โ 2014 active buyers , โ as of december 31 , 2013 as โ 2013 active buyers , โ and as of december 31 , 2012 as โ 2012 active buyers . โ of total 2016 active buyers , 37.9 % remained active buyers through their fourth year on the platform , compared to 37.5 % for 2015 active buyers , 38.7 % for 2014 active buyers , 41.1 % for 2013 active buyers , and 42.5 % for 2012 active buyers . the average annual gms per 2016 active buyer during their fourth year on the platform was 85 % higher than their first year , compared to 78 % for 2015 active buyers , 70 % for 2014 active buyers , 81 % for 2013 active buyers , and 88 % for 2012 active buyers . we note that 2013 was the first year we started to significantly invest in our paid acquisition marketing efforts to grow our buyer base . replace_table_token_19_th etsy cohort of 2016 , 2015 , 2014 , 2013 , and 2012 active buyers these cohort data demonstrate our ability to consistently retain buyers over a multi-year period and reflects the loyalty of our buyer base . we have identified our ability to increase purchase frequency among these long-term and habitual buyers as one of our
| cash net income of $ 139.6 million as a result of increased revenue generated on our platform , and changes in our operating assets and liabilities that provided $ 59.3 million in cash , largely driven by timing of collections of accounts receivable due to the launch of our redesigned payment account in the fourth quarter of 2018 , which now automatically deducts our fees and applicable taxes from the seller 's funds earned through sales using etsy payments prior to settlement of those funds to the seller 's bank account and payment timing of payables . net cash provided by operating activities was $ 69.1 million in the year ended december 31 , 2017 , primarily driven by cash net income of $ 68.8 million as a result of increased revenue generated on our platform and changes in our operating assets and liabilities that provided $ 0.3 million in cash . net cash ( used in ) provided by investing activities our primary investing activities consist of cash paid in the acquisition of reverb , sales and purchases of short- and long-term marketable securities , cash paid to purchase intangible assets and capital expenditures , including investments in capitalized website development and internal-use software and purchases of property and equipment to support our overall business growth . net cash used in investing activities was $ 488.4 million in the year ended december 31 , 2019 . this was primarily attributable to $ 270.4 million in cash paid to acquire reverb , net purchases of marketable securities of $ 200.7 million , and $ 15.3 million in capital expenditures , including $ 7.8 million for website development and internal-use software as we continued to invest in projects adding new features and functionality to the etsy platform and focused on growth investments , such as our migration to google cloud . net cash used in investing activities was $ 285.4 million in the year ended december 31 , 2018 .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash net income of $ 139.6 million as a result of increased revenue generated on our platform , and changes in our operating assets and liabilities that provided $ 59.3 million in cash , largely driven by timing of collections of accounts receivable due to the launch of our redesigned payment account in the fourth quarter of 2018 , which now automatically deducts our fees and applicable taxes from the seller 's funds earned through sales using etsy payments prior to settlement of those funds to the seller 's bank account and payment timing of payables . net cash provided by operating activities was $ 69.1 million in the year ended december 31 , 2017 , primarily driven by cash net income of $ 68.8 million as a result of increased revenue generated on our platform and changes in our operating assets and liabilities that provided $ 0.3 million in cash . net cash ( used in ) provided by investing activities our primary investing activities consist of cash paid in the acquisition of reverb , sales and purchases of short- and long-term marketable securities , cash paid to purchase intangible assets and capital expenditures , including investments in capitalized website development and internal-use software and purchases of property and equipment to support our overall business growth . net cash used in investing activities was $ 488.4 million in the year ended december 31 , 2019 . this was primarily attributable to $ 270.4 million in cash paid to acquire reverb , net purchases of marketable securities of $ 200.7 million , and $ 15.3 million in capital expenditures , including $ 7.8 million for website development and internal-use software as we continued to invest in projects adding new features and functionality to the etsy platform and focused on growth investments , such as our migration to google cloud . net cash used in investing activities was $ 285.4 million in the year ended december 31 , 2018 .
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Suspicious Activity Report : factors that could cause or contribute to these differences include those discussed below and elsewhere in this annual report , particularly in the โ risk factors โ section . for more information regarding key factors affecting our performance , see โ key factors affecting our performance โ below . overview business etsy operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers . our mission is to โ keep commerce human , โ and we 're committed to using the power of business and technology to strengthen communities and empower people around the world . our primary marketplace , etsy.com , is the global destination for unique and creative goods . the etsy marketplaceconnects creative entrepreneurs with thoughtful consumers looking for items that are intended to be special , reflect their sense of style , or represent a meaningful occasion.our sellers are the heart and soul of etsy , and our technology platform allows our sellers to turn their creative passions into economic opportunity . we have a seller-aligned business model : we make money when our sellers make money . we offer etsy sellers a marketplace with millions of buyers along with a range of seller tools and services that are specifically designed to help our creative entrepreneurs generate more sales and scale their businesses . we are focused on attracting potential buyers to the etsy marketplace for those โ special โ purchaseoccasions that happen throughout the year , and for everyday items that have meaning . we are deepening engagement with our existing buyers by inspiring purchases across our many retail categories and special occasions . special purchases for use in the every day include handmade or vintage unique clothing , accessories , household items , or furniture that the buyer wants to reflect her sense of style . special purchase occasions can occur many times throughout the year and include shopping for special occasions that reflects an individual 's unique style ; gifting that demonstrates thought and care ; and celebrations that express creativity and fun . buyers tell us that they come to etsy because etsy sellers offer items that they ca n't find anywhere else . on august 15 , 2019 , we acquired all of the outstanding capital stock of reverb holdings , inc. ( โ reverb โ ) for $ 270.4 million , net of cash acquired . the reverb marketplace is a leading global online marketplace dedicated to buying and selling new , used , and vintage musical instruments , with a vibrant community of buyers and sellers all over the world . reverb , now a wholly-owned subsidiary of etsy , inc. , is included in all financial and other metrics from august 15 , 2019 ( the date of acquisition ) , unless otherwise noted . our revenue is diversified , generated from a mix of marketplace activities and other optional services we provide to sellers to help them generate more sales and scale their businesses . marketplace revenue is comprised of the fees a seller pays us for marketplace activities . marketplace activities include listing an item for sale , completing transactions between a buyer and a seller , and using our payments services to process payments , including foreign currency transactions . marketplace revenue also includes revenue generated through our commercial partnerships , which was recorded in its own other revenue line prior to the fourth quarter of 2019. services revenue is comprised of the fees a seller pays us for our optional other services ( โ services โ ) . services primarily include advertising services , which allows sellers to pay for prominent placement of their listings in search results ; and shipping labels , which allows sellers in the united states , canada , united kingdom , and australia to purchase discounted shipping labels . our strategy is focused on growing the etsy marketplace in our six core geographies and building a sustainable competitive advantage around four elements of our business that we believe differentiate us from our competitors , or what we call our โ right to win . โ the foundation of etsy 's competitive advantage is our collection of our seller 's unique items , which , we believe , when combined with best-in-class search and discovery , human connections , and a trusted brand , will enable us to continue to stand out among other e-commerce platforms and marketplaces . our investments in product , marketing , and talent will be focused on capitalizing on these four elements of our business . ultimately , the goal of our long-term strategy is to drive 54 more new buyers to the website , give existing buyers reasons to come back more often , encourage buyers to spend more per order , and fuel success for our sellers . we see a number of similarities between the levers of growth for the etsy and reverb marketplaces , including improving search and discovery , making selling and buying easier , and building a global brand and user community . year highlights total revenue was $ 818.4 million in the year ended december 31 , 2019 , driven by growth in both marketplace and services revenue . in the year ended december 31 , 2019 , we recorded net income of $ 95.9 million , and non-gaap adjusted ebitda of $ 186.3 million . see โ non-gaap financial measures โ for more information and for a reconciliation of adjusted ebitda to net income , the most directly comparable financial measure calculated in accordance with gaap . as of december 31 , 2019 , our marketplaces connected 2.7 million active sellers and 46.4 million active buyers , in nearly every country in the world . in the year ended december 31 , 2019 , sellers generated gms of $ 5.0 billion of which approximately 58 % came from purchases made on mobile devices . story_separator_special_tag for the year s ended december 31 , 2019 , 2018 , and 2017 those amounts are as follows : replace_table_token_16_th ( 2 ) $ 2.7 million of restructuring-related stock-based compensation expense has been excluded from the year ended december 31 , 2017 and is included in the restructuring and other exit costs ( income ) line . see footnote ( 5 ) below . total stock-based compensation expense included in the consolidated statements of operations is as follows : replace_table_token_17_th ( 3 ) see โ results of operations โ other expense , net โ for more information on the fluctuation in foreign exchange ( gain ) loss in the years ended december 31 , 2019 , 2018 , and 2017 . ( 4 ) acquisition-related expenses are expenses related to our acquisition of reverb . for further information , see โ note 5โbusiness combinations โ in the notes to consolidated financial statements . 60 ( 5 ) see โ note 17โrestructuring and other exit costs ( income ) โ in the notes to consolidated financial statements for a description of the matters related to these events . total restructuring and other exit costs ( income ) included in the consolidated statements of operations are as follows : replace_table_token_18_th ( 6 ) in the fourth quarter of 2017 , we made the decision to discontinue certain product offerings , including etsy studio and etsy manufacturing , which resulted in the recognition of a $ 3.2 million impairment charge to write the related capitalized web development and internal-use software assets down to zero . this decision was based on our strategy to focus on the growth of the etsy.com marketplace . 61 key factors affecting our performance we believe that our performance and future success depend on a number of factors that present significant opportunities for us but also pose risks and challenges , including those discussed in the section titled โ risk factors . โ our primary marketplace , etsy.com , is the largest driver of our business and thus the following key factors affecting our performance most significantly relate to the etsy marketplace . growth and retention of active buyers and active sellers on the etsy marketplace our success depends in part on the growth and retention of our active buyers and active sellers . our revenue is driven by the number of active buyers , buyer engagement , active sellers , seller engagement , and our ability to maintain a trusted marketplace . we believe two of our most significant opportunities to drive growth in our primary marketplace are to bring new buyers to etsy.com and encourage existing etsy buyers to purchase more frequently . we are particularly focused on increasing our number of habitual buyers , or buyers who have spent $ 200 or more and made purchases on six or more purchase days in the year . we are also focused on keeping our best sellers on the platform and helping them grow their businesses by enhancing the seller tools and services that help drive buyer demand . during 2019 , the etsy marketplace had 19 million new etsy buyers , or buyers who made their first-ever purchase on etsy . gms from new buyers was up 11 % year-over-year and represented approximately 16 % of overall etsy.com gms , a decrease compared to last year . etsy.com gms from existing buyers grew 24 % year-over-year in 2019 and represented approximately 84 % of overall etsy.com gms , an increase compared to last year . repeat purchases demonstrate the loyalty of etsy buyers . in 2019 , on the etsy marketplace , approximately 41.4 % of our active buyers made purchases on two or more days in the previous 12 months , up from 40.1 % in 2018 . habitual buyers represented approximately 5.5 % of etsy.com 's active buyers as of december 31 , 2019 . habitual buyers grew to 2.5 million as of december 31 , 2019 , an increase of 22.9 % compared to 2018 . we aim to increase repeat purchases and habitual buyers by inspiring purchases in additional categories and on additional occasions , building trust in the etsy brand , and removing friction from the buying experience to improve conversion rates . to analyze our retention rates on the etsy marketplace , we measure repeat activity by active buyers and active sellers . 62 active buyer cohorts on the etsy marketplace we refer to active buyers as of december 31 , 2016 as โ 2016 active buyers , โ as of december 31 , 2015 as โ 2015 active buyers , โ as of december 31 , 2014 as โ 2014 active buyers , โ as of december 31 , 2013 as โ 2013 active buyers , โ and as of december 31 , 2012 as โ 2012 active buyers . โ of total 2016 active buyers , 37.9 % remained active buyers through their fourth year on the platform , compared to 37.5 % for 2015 active buyers , 38.7 % for 2014 active buyers , 41.1 % for 2013 active buyers , and 42.5 % for 2012 active buyers . the average annual gms per 2016 active buyer during their fourth year on the platform was 85 % higher than their first year , compared to 78 % for 2015 active buyers , 70 % for 2014 active buyers , 81 % for 2013 active buyers , and 88 % for 2012 active buyers . we note that 2013 was the first year we started to significantly invest in our paid acquisition marketing efforts to grow our buyer base . replace_table_token_19_th etsy cohort of 2016 , 2015 , 2014 , 2013 , and 2012 active buyers these cohort data demonstrate our ability to consistently retain buyers over a multi-year period and reflects the loyalty of our buyer base . we have identified our ability to increase purchase frequency among these long-term and habitual buyers as one of our
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2,303 | these estimates , assumptions , and judgments are based on information available as of the date of the consolidated financial statements ; accordingly , as this information changes , the consolidated financial statements could reflect different estimates , assumptions , and judgments . certain policies inherently have a greater reliance on the use of estimates , assumptions , and judgments and , as such , have a greater possibility of producing results that could be materially different than originally reported . estimates , assumptions , and judgments are necessary when assets and liabilities are required to be recorded at fair value , when a decline in the value of an asset not carried on the consolidated financial statements at fair value warrants an impairment write-down or valuation reserve to be established , or when an asset or liability needs to be recorded contingent upon a future event . carrying assets and liabilities at fair value inherently results in more financial statement volatility . when applying accounting policies in such areas that are subjective in nature , management must use its best judgment to arrive at the carrying value of certain assets and liabilities . below is a discussion of our critical accounting policies . securities we designate securities into one of three categories at the time of purchase . debt securities that we have the intent and ability to hold to maturity are classified as held to maturity ( โ htm โ ) and recorded at amortized cost . debt and equity securities are classified as trading if bought and held principally for the purpose of sale in the near term . trading securities are reported at estimated fair value , with unrealized gains and losses included in earnings . debt securities not classified as htm and debt and equity securities not classified as trading securities are considered available for sale ( โ afs โ ) and are reported at estimated fair value , with unrealized gains and losses reported as a separate component of stockholders ' equity , net of tax effects , in accumulated other comprehensive loss . afs and htm securities are evaluated periodically to determine whether a decline in their value is other than temporary . the term โ other than temporary โ is not intended to indicate a permanent decline in value . rather , it means that the prospects for near-term recovery of value are not necessarily favorable , or that there is a lack of evidence to support fair values equal to , or greater than , the carrying value of the security . 23 the initial indications of other-than-temporary impairment ( โ otti โ ) for both debt and equity securities are a decline in the market value below the amount recorded for a security and the severity and duration of the decline . in determining whether an impairment is other than temporary , we consider the length of time and the extent to which the market value has been below cost , recent events specific to the issuer , including investment downgrades by rating agencies and economic conditions of its industry , our intent to sell the security , and if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis . we also consider the cause of the price decline ( general level of interest rates and industry- and issuer-specific factors ) , the issuer 's financial condition , near-term prospects and current ability to make future payments in a timely manner , the issuer 's ability to service debt , and any change in agencies ' ratings at evaluation date from acquisition date and any likely imminent action . once a decline in value is determined to be other than temporary , the security is segmented into credit- and noncredit-related components . any impairment adjustment due to identified credit-related components is recorded as an adjustment to current period earnings , while noncredit-related fair value adjustments are recorded through accumulated other comprehensive loss . in situations where we intend to sell or it is more likely than not that we will be required to sell the security , the entire otti loss is recognized in earnings . allowance for loan losses the allowance is maintained at an amount that management believes will be adequate to absorb losses on existing loans that may become uncollectible , based on evaluations of the collectability of loans and prior loan loss experience . the evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio , overall portfolio quality , review of specific problem loans , and current economic conditions that may affect the borrowers ' ability to pay . determining the amount of the allowance requires the use of estimates and assumptions . actual results could differ significantly from those estimates . future additions or reductions in the allowance may be necessary based on changes in economic conditions , particularly in anne arundel county and the state of maryland . in addition , various regulatory agencies , as an integral part of their examination process , periodically review the bank 's allowance . such agencies may require the bank to recognize additions to the allowance based on their judgment about information available to them at the time of their examination . the allowance consists of specific and general components . the specific component relates to loans that are classified as impaired . when a real estate secured loan becomes impaired , a decision is made as to whether an updated appraisal of the real estate is necessary . this decision is based on various considerations , including the age of the most recent appraisal , the ltv ratio based on the original appraisal , and the condition of the property . story_separator_special_tag lhfs decreased $ 5.8 million , or 56.0 % , to $ 4.5 million at december 31 , 2017 compared to $ 10.3 million at december 31 , 2016. this decrease was due to the timing of loans pending sale as well as a decreased volume of originations . loans increased $ 57.9 million , or 9.5 % , to $ 668.2 million at december 31 , 2017 compared to $ 610.3 million at december 31 , 2016 due to increased origination activity in 2017. real estate acquired through foreclosure decreased $ 570,000 , or 58.6 % , to $ 403,000 at december 31 , 2017 compared to $ 973,000 at december 31 , 2016. this decrease was due to the sale of several properties . total deposits increased $ 30.3 million , or 5.3 % , to $ 602.2 million at december 31 , 2017 compared to $ 571.9 million at december 31 , 2016. long-term borrowings decreased by $ 15.0 million , or 14.5 % , to $ 88.5 million at december 31 , 2017 compared to $ 103.5 million at december 31 , 2016. these borrowings began to mature in february , 2017 . 29 securities we utilize the securities portfolio as part of our overall asset/liability management practices to enhance interest revenue while providing necessary liquidity for the funding of loan growth or deposit withdrawals . we continually monitor the credit risk associated with investments and diversify the risk in the securities portfolios . we held $ 10.1 million in securities classified as afs as of december 31 , 2017. we did not hold any afs securities as of december 31 , 2016. we held $ 54.3 million and $ 62.8 million in securities classified as htm as of december 31 , 2017 and december 31 , 2016 , respectively . changes in current market conditions , such as interest rates and the economic uncertainties in the mortgage , housing , and banking industries impact the securities market . quarterly , we review each security in our afs portfolio to determine the nature of any decline in value and evaluate if any impairment should be classified as otti . such evaluations resulted in the determination that no otti charges were required during 2017. all of the afs and htm securities that were impaired as of december 31 , 2017 were so due to declines in fair values resulting from changes in interest rates or increased credit/liquidity spreads compared to the time they were purchased . we have the intent to hold these securities to maturity and it is more likely than not that we will not be required to sell the securities before recovery of value . as such , management considers the impairments to be temporary . our afs securities portfolio consists of u.s. government agency notes in the amount of $ 10.1 million at december 31 , 2017. we did not hold any afs securities prior to 2017. our htm securities portfolio composition is as follows at december 31 : replace_table_token_4_th the amortized cost , estimated fair values , and weighted average yields of debt securities at december 31 , 2017 , by contractual maturity , are shown below . actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations . replace_table_token_5_th weighted yields are based on amortized cost . mortgage-backed securities are assigned to maturity categories based on their final maturity . we did not hold any securities with an aggregate book value and market value in excess of 10 % of stockholders ' equity . 30 lhfs we originate residential mortgage loans for sale on the secondary market . at december 31 , 2017 , such lhfs , which are carried at fair value , amounted to $ 4.5 million , the majority of which are subject to purchase commitments from investors . the lhfs balance at december 31 , 2016 was $ 10.3 million and was recorded at lower-of-cost or market value ( โ lcm โ ) . lhfs decreased by $ 5.8 million , or 56.0 % , from december 31 , 2016 to december 31 , 2017 , due to the timing of loans pending sale on the secondary market and decreased originations resulting from the transition from the purchased lead model to an internally-generated lead model . when we sell mortgage loans we make certain representations to the purchaser related to loan ownership , loan compliance and legality , and accurate documentation , among other things . if a loan is found to be out of compliance with any of the representations subsequent to the date of purchase , we may be required to repurchase the loan or indemnify the purchaser for losses related to the loan , depending on the agreement with the purchaser . in addition other factors may cause us to be required to repurchase or โ make-whole โ a loan previously sold . the most common reason for a loan repurchase is due to a documentation error or disagreement with an investor , or on rare occasions for fraud . repurchase requests are negotiated with each investor at the time we are notified of the demand and an appropriate reserve is taken at that time . repurchases amounted to $ 469,000 and $ 343,000 during 2017 and 2016 , respectively . our reserve for potential repurchase losses was $ 63,000 and $ 48,000 as of december 31 , 2017 and 2016 , respectively . we do not expect increases in repurchases or related losses to be a growing trend nor do we see it having a significant impact on our financial results . loans our loan portfolio is expected to produce higher yields than investment securities and other interest-earning assets ; the absolute volume and mix of loans and the volume and mix of loans as a percentage of total earning assets is an important determinant of our net interest margin . the following table sets forth
| capital resources total stockholders ' equity increased $ 3.2 million to $ 91.1 million at december 31 , 2017 compared to $ 87.9 million at december 31 , 2016. the increase was principally a result of 2017 net income and the common stock issued for the acquisition of mid-md . series a preferred stock on november 15 , 2008 , the company completed a private placement offering consisting of a total of 70 units , at an offering price of $ 100,000 per unit , for gross proceeds of $ 7.0 million . each unit consists of 6,250 shares of the company 's series a 8.0 % non-cumulative convertible preferred stock . on march 13 , 2018 the company notified holders of its series a preferred stock that the company has exercised its option to convert all 437,500 outstanding shares of series a preferred stock into shares of the company 's common stock . the company intends to convert the series a preferred stock on or before april 2 , 2018. as of the conversion date , the series a preferred stock will no longer be deemed outstanding , and all rights with respect to such stock will cease and terminate , except the right of holders to receive shares of common stock in exchange for their shares of series a preferred stock . series b preferred stock on november 21 , 2008 , we entered into an agreement with the u.s. department of the treasury ( โ treasury โ ) , pursuant to which we issued and sold ( i ) shares of our series b fixed rate cumulative perpetual preferred stock ( โ preferred stock โ ) and ( ii ) a warrant ( the โ warrant โ ) to purchase 556,976 shares of the company 's common stock , par value $ 0.01 per share . as of december 31 , 2016 , the company had redeemed all outstanding shares of the preferred stock and during 2017 , the company repurchased the warrant from the treasury . capital adequacy the bank is subject to various regulatory capital requirements administered by the federal banking agencies .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```capital resources total stockholders ' equity increased $ 3.2 million to $ 91.1 million at december 31 , 2017 compared to $ 87.9 million at december 31 , 2016. the increase was principally a result of 2017 net income and the common stock issued for the acquisition of mid-md . series a preferred stock on november 15 , 2008 , the company completed a private placement offering consisting of a total of 70 units , at an offering price of $ 100,000 per unit , for gross proceeds of $ 7.0 million . each unit consists of 6,250 shares of the company 's series a 8.0 % non-cumulative convertible preferred stock . on march 13 , 2018 the company notified holders of its series a preferred stock that the company has exercised its option to convert all 437,500 outstanding shares of series a preferred stock into shares of the company 's common stock . the company intends to convert the series a preferred stock on or before april 2 , 2018. as of the conversion date , the series a preferred stock will no longer be deemed outstanding , and all rights with respect to such stock will cease and terminate , except the right of holders to receive shares of common stock in exchange for their shares of series a preferred stock . series b preferred stock on november 21 , 2008 , we entered into an agreement with the u.s. department of the treasury ( โ treasury โ ) , pursuant to which we issued and sold ( i ) shares of our series b fixed rate cumulative perpetual preferred stock ( โ preferred stock โ ) and ( ii ) a warrant ( the โ warrant โ ) to purchase 556,976 shares of the company 's common stock , par value $ 0.01 per share . as of december 31 , 2016 , the company had redeemed all outstanding shares of the preferred stock and during 2017 , the company repurchased the warrant from the treasury . capital adequacy the bank is subject to various regulatory capital requirements administered by the federal banking agencies .
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Suspicious Activity Report : these estimates , assumptions , and judgments are based on information available as of the date of the consolidated financial statements ; accordingly , as this information changes , the consolidated financial statements could reflect different estimates , assumptions , and judgments . certain policies inherently have a greater reliance on the use of estimates , assumptions , and judgments and , as such , have a greater possibility of producing results that could be materially different than originally reported . estimates , assumptions , and judgments are necessary when assets and liabilities are required to be recorded at fair value , when a decline in the value of an asset not carried on the consolidated financial statements at fair value warrants an impairment write-down or valuation reserve to be established , or when an asset or liability needs to be recorded contingent upon a future event . carrying assets and liabilities at fair value inherently results in more financial statement volatility . when applying accounting policies in such areas that are subjective in nature , management must use its best judgment to arrive at the carrying value of certain assets and liabilities . below is a discussion of our critical accounting policies . securities we designate securities into one of three categories at the time of purchase . debt securities that we have the intent and ability to hold to maturity are classified as held to maturity ( โ htm โ ) and recorded at amortized cost . debt and equity securities are classified as trading if bought and held principally for the purpose of sale in the near term . trading securities are reported at estimated fair value , with unrealized gains and losses included in earnings . debt securities not classified as htm and debt and equity securities not classified as trading securities are considered available for sale ( โ afs โ ) and are reported at estimated fair value , with unrealized gains and losses reported as a separate component of stockholders ' equity , net of tax effects , in accumulated other comprehensive loss . afs and htm securities are evaluated periodically to determine whether a decline in their value is other than temporary . the term โ other than temporary โ is not intended to indicate a permanent decline in value . rather , it means that the prospects for near-term recovery of value are not necessarily favorable , or that there is a lack of evidence to support fair values equal to , or greater than , the carrying value of the security . 23 the initial indications of other-than-temporary impairment ( โ otti โ ) for both debt and equity securities are a decline in the market value below the amount recorded for a security and the severity and duration of the decline . in determining whether an impairment is other than temporary , we consider the length of time and the extent to which the market value has been below cost , recent events specific to the issuer , including investment downgrades by rating agencies and economic conditions of its industry , our intent to sell the security , and if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis . we also consider the cause of the price decline ( general level of interest rates and industry- and issuer-specific factors ) , the issuer 's financial condition , near-term prospects and current ability to make future payments in a timely manner , the issuer 's ability to service debt , and any change in agencies ' ratings at evaluation date from acquisition date and any likely imminent action . once a decline in value is determined to be other than temporary , the security is segmented into credit- and noncredit-related components . any impairment adjustment due to identified credit-related components is recorded as an adjustment to current period earnings , while noncredit-related fair value adjustments are recorded through accumulated other comprehensive loss . in situations where we intend to sell or it is more likely than not that we will be required to sell the security , the entire otti loss is recognized in earnings . allowance for loan losses the allowance is maintained at an amount that management believes will be adequate to absorb losses on existing loans that may become uncollectible , based on evaluations of the collectability of loans and prior loan loss experience . the evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio , overall portfolio quality , review of specific problem loans , and current economic conditions that may affect the borrowers ' ability to pay . determining the amount of the allowance requires the use of estimates and assumptions . actual results could differ significantly from those estimates . future additions or reductions in the allowance may be necessary based on changes in economic conditions , particularly in anne arundel county and the state of maryland . in addition , various regulatory agencies , as an integral part of their examination process , periodically review the bank 's allowance . such agencies may require the bank to recognize additions to the allowance based on their judgment about information available to them at the time of their examination . the allowance consists of specific and general components . the specific component relates to loans that are classified as impaired . when a real estate secured loan becomes impaired , a decision is made as to whether an updated appraisal of the real estate is necessary . this decision is based on various considerations , including the age of the most recent appraisal , the ltv ratio based on the original appraisal , and the condition of the property . story_separator_special_tag lhfs decreased $ 5.8 million , or 56.0 % , to $ 4.5 million at december 31 , 2017 compared to $ 10.3 million at december 31 , 2016. this decrease was due to the timing of loans pending sale as well as a decreased volume of originations . loans increased $ 57.9 million , or 9.5 % , to $ 668.2 million at december 31 , 2017 compared to $ 610.3 million at december 31 , 2016 due to increased origination activity in 2017. real estate acquired through foreclosure decreased $ 570,000 , or 58.6 % , to $ 403,000 at december 31 , 2017 compared to $ 973,000 at december 31 , 2016. this decrease was due to the sale of several properties . total deposits increased $ 30.3 million , or 5.3 % , to $ 602.2 million at december 31 , 2017 compared to $ 571.9 million at december 31 , 2016. long-term borrowings decreased by $ 15.0 million , or 14.5 % , to $ 88.5 million at december 31 , 2017 compared to $ 103.5 million at december 31 , 2016. these borrowings began to mature in february , 2017 . 29 securities we utilize the securities portfolio as part of our overall asset/liability management practices to enhance interest revenue while providing necessary liquidity for the funding of loan growth or deposit withdrawals . we continually monitor the credit risk associated with investments and diversify the risk in the securities portfolios . we held $ 10.1 million in securities classified as afs as of december 31 , 2017. we did not hold any afs securities as of december 31 , 2016. we held $ 54.3 million and $ 62.8 million in securities classified as htm as of december 31 , 2017 and december 31 , 2016 , respectively . changes in current market conditions , such as interest rates and the economic uncertainties in the mortgage , housing , and banking industries impact the securities market . quarterly , we review each security in our afs portfolio to determine the nature of any decline in value and evaluate if any impairment should be classified as otti . such evaluations resulted in the determination that no otti charges were required during 2017. all of the afs and htm securities that were impaired as of december 31 , 2017 were so due to declines in fair values resulting from changes in interest rates or increased credit/liquidity spreads compared to the time they were purchased . we have the intent to hold these securities to maturity and it is more likely than not that we will not be required to sell the securities before recovery of value . as such , management considers the impairments to be temporary . our afs securities portfolio consists of u.s. government agency notes in the amount of $ 10.1 million at december 31 , 2017. we did not hold any afs securities prior to 2017. our htm securities portfolio composition is as follows at december 31 : replace_table_token_4_th the amortized cost , estimated fair values , and weighted average yields of debt securities at december 31 , 2017 , by contractual maturity , are shown below . actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations . replace_table_token_5_th weighted yields are based on amortized cost . mortgage-backed securities are assigned to maturity categories based on their final maturity . we did not hold any securities with an aggregate book value and market value in excess of 10 % of stockholders ' equity . 30 lhfs we originate residential mortgage loans for sale on the secondary market . at december 31 , 2017 , such lhfs , which are carried at fair value , amounted to $ 4.5 million , the majority of which are subject to purchase commitments from investors . the lhfs balance at december 31 , 2016 was $ 10.3 million and was recorded at lower-of-cost or market value ( โ lcm โ ) . lhfs decreased by $ 5.8 million , or 56.0 % , from december 31 , 2016 to december 31 , 2017 , due to the timing of loans pending sale on the secondary market and decreased originations resulting from the transition from the purchased lead model to an internally-generated lead model . when we sell mortgage loans we make certain representations to the purchaser related to loan ownership , loan compliance and legality , and accurate documentation , among other things . if a loan is found to be out of compliance with any of the representations subsequent to the date of purchase , we may be required to repurchase the loan or indemnify the purchaser for losses related to the loan , depending on the agreement with the purchaser . in addition other factors may cause us to be required to repurchase or โ make-whole โ a loan previously sold . the most common reason for a loan repurchase is due to a documentation error or disagreement with an investor , or on rare occasions for fraud . repurchase requests are negotiated with each investor at the time we are notified of the demand and an appropriate reserve is taken at that time . repurchases amounted to $ 469,000 and $ 343,000 during 2017 and 2016 , respectively . our reserve for potential repurchase losses was $ 63,000 and $ 48,000 as of december 31 , 2017 and 2016 , respectively . we do not expect increases in repurchases or related losses to be a growing trend nor do we see it having a significant impact on our financial results . loans our loan portfolio is expected to produce higher yields than investment securities and other interest-earning assets ; the absolute volume and mix of loans and the volume and mix of loans as a percentage of total earning assets is an important determinant of our net interest margin . the following table sets forth
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2,304 | 29 results of operations the following table sets forth income statement data for the periods indicated as a percentage of revenue : replace_table_token_5_th fiscal year 2013 compared with fiscal year 2012 sales sales for fiscal year 2013 increased $ 40.6 million , or 10.1 % to $ 444.0 million from $ 403.4 million for fiscal year 2012. the increase in sales during the fiscal year 2013 was due primarily to our acquisition of ait in july 2012 which resulted in the inclusion of sales of $ 122.4 million from ait , compared to $ 63.8 million of sales from ait for fiscal year 2012. sales for uct when excluding sales from ait were lower during the twelve months ended december 27 , 2013 when compared to fiscal year 2012 due to factors including the termination of our arrangement with fei at the end of the first quarter of 2012 , the determination by one of our larger semiconductor equipment customers to in-source a portion of their gas panel business , as well as an overall downturn in the semiconductor industry beginning in the third quarter of 2012 which did not impact ait until the beginning of the fourth quarter of 2012. we expect sales to increase modestly in the first quarter of 2014 as compared to the fourth quarter of 2013. cost of goods sold consists primarily of purchased materials , inventory reserves and labor and overhead , including depreciation , associated with the design and manufacture of products sold . gross profit for fiscal year 2013 increased to $ 67.3 million or 15.2 % of sales , from $ 55.8 million , or 13.8 % of sales , for fiscal year 2012. our gross margin increased in fiscal 2013 from the comparable period in 2012 due primarily to a sales mix which included higher margin products , certain improvements in operational efficiencies at our manufacturing locations , favorable work order variances and a reduction in floor stock costs , partially offset by in an increase in inventory reserves . we expect gross profit to be slightly higher in the first quarter of 2014 , as compared to the fourth quarter of fiscal 2013 , primarily as a result of modestly higher expected sales in the first quarter of 2014. research and development expense research and development expense consists primarily of activities related to new component testing and evaluation , test equipment and fixture development , product design , and other product development activities . research and development expense for fiscal year 2013 was $ 5.5 million or 1.2 % of sales , compared to 30 $ 5.1 million , or 1.3 % of sales , for fiscal year 2012. the increase in research and development expense in absolute dollars was primarily attributable to an increase in headcount and related payroll expenses . sales and marketing expense sales and marketing expense consists primarily of salaries and commissions paid to our sales and service employees , salaries paid to our engineers who work with the sales and service employees to help determine the components and configuration requirements for new products and other costs related to the sales of our products . sales and marketing expense increased $ 2.8 million , or 39.8 % , to $ 9.8 million , or 2.2 % of sales , compared to $ 7.0 million , or 1.7 % of sales , in the comparable period of 2012. the increase in the sales and marketing expense was primarily due to the inclusion of sales and marketing expenses generated from ait for the full twelve months ended december 27 , 2013 compared to six months in the previous year ended december 28 , 2012. the company also incurred additional costs during the year ended december 27 , 2013 related to an increase in headcount and headcount related costs , including salaries , commissions and bonuses due to increased revenues and operating income in the fiscal year 2013 compared to the fiscal year 2012. general and administrative expense general and administrative expense consists primarily of salaries and overhead associated with our administrative staff and professional fees . general and administrative expense increased $ 3.2 million , or 9.7 % , to $ 36.0 million , or 8.1 % of sales , for fiscal year 2013 compared to $ 32.9 million , or 8.1 % of sales , for fiscal year 2012. the increase is primarily due to amortization of finite-lived intangibles associated with the ait acquisition and incremental costs associated with the ait acquisition for a full year in fiscal year 2013 compared to a six month period in fiscal year 2012 which include headcount related costs , including salaries , bonuses and stock compensation . acquisition costs there were no acquisition costs in fiscal 2013 compared to approximately $ 2.4 million in fiscal 2012. these costs were associated with our purchase of ait and consisted primarily of professional fees and services in connection with the acquisition . interest and other income ( expense ) , net interest and other income ( expense ) , net for fiscal year 2013 was $ ( 3.3 ) million compared to $ ( 1.6 ) million for fiscal year 2012. the increase in net expense was primarily due to the increase in outstanding debt beginning in the third quarter of 2012 resulting from the acquisition of ait . income tax provision our effective tax rate for fiscal year 2013 was 17.3 % compared to 23.1 % for fiscal year 2012. the change in respective rates reflects , primarily , a change in the geographic mix of worldwide earnings and financial results for fiscal year 2013 compared to fiscal year 2012 as well as changes in our deferred tax assets and our accrual for uncertain tax positions . our effective tax rate was lower than the statutory rates for fiscal years 2013 and 2012 primarily due to the geographic distribution of our world-wide earnings in foreign jurisdictions with lower tax rates . story_separator_special_tag it is possible that changes in such circumstances , or in the variables associated with the judgments , assumptions and estimates used in assessing fair value , would require us to record a non-cash impairment charge . equity incentives to employees we issue stock options and restricted stock units to our employees and outside directors and provide our employees the right to purchase common stock under our employee stock purchase plan . under current accounting guidance , stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the service ( vesting ) period . the black-scholes option-pricing model that we use was developed for use in estimating the fair value of short-lived exchange traded options that have no vesting restrictions and are fully transferable . in addition , option-pricing models require the input of highly subjective assumptions , including the option 's expected life and the price volatility of underlying stock . our expected stock price volatility assumption was determined using the historical volatility of our common stock . we determined that historical volatility reflects market conditions and is a good indicator of future volatility . our expected term represents the period that our stock-based awards are expected to be outstanding and was determined based on our historical experience with similar awards , giving consideration to the contractual terms of the stock-based awards and vesting schedules . see note 8 of notes to consolidated financial statements for a detailed description unaudited quarterly financial results the following table sets forth statement of operations data for the periods indicated . the information for each of these periods is unaudited and has been prepared on the same basis as our audited consolidated financial statements included herein and includes all adjustments , consisting only of normal recurring adjustments that we consider necessary for a fair presentation of our unaudited operations data for the periods presented . historical results are not necessarily indicative of the results to be expected in the future ( in thousands , except per share data ) : replace_table_token_6_th 36 ( 1 ) earnings per share is calculated independently each quarter and for the full year based upon their respective weighted average shares outstanding . therefore , the sum of the quarterly earnings per share may not equal the annual earnings per share reported . ( 2 ) results from our acquisition of ait are included from the date of acquisition on july 1 , 2012 and for all periods in 2013 . ( 3 ) see note 12 to the notes to consolidated financial statements in our annual report on form 10-k for the fiscal year ended december 28 , 2012 filed with the sec on march 3 , 2013 for a reconciliation of these amounts ( if any ) to the amounts in the respective quarterly reports on form 10-q in which they were originally reported . story_separator_special_tag revolving credit facility ( subject to certain limitations ) bear interest at either a base rate or at the london interbank offered rate ( ยliborย ) ( with the libor being adjusted for certain eurocurrency reserve requirements , if any , as described in the credit agreement ) , plus , in each case , an applicable margin based on our consolidated leverage ratio . all loans 38 described above made on july 3 , 2012 were initially base rate loans , carrying interest of 3.75 % . as of december 27 , 2013 , the interest rates on the term loan and revolving credit facility were 3.67 % and 3.75 % , respectively . the effective interest rates are slightly higher due to the incurrence of certain loan-related costs of approximately $ 1.9 million that are treated as deferred interest and are being amortized over the life of the loans . the credit agreement requires us to maintain certain financial covenants including a minimum consolidated fixed charge coverage ratio , a maximum consolidated leverage ratio and minimum domestic cash balances . on february 15 , 2013 , we and the lenders amended the credit agreement in order to modify the financial covenants contained in the credit agreement , effective january 30 , 2013. the credit agreement , as amended , requires us to comply with the following financial covenants : a minimum consolidated fixed charge coverage ratio ( as defined in the credit agreement , as amended ) , measured over the preceding four fiscal quarters , beginning as of the end of the third quarter of fiscal 2014 , of 1.10 to 1.00 , stepping up to 1.25 to 1.00 as of the end of each fiscal quarter beginning with the first quarter of fiscal 2015 and thereafter ; a maximum consolidated leverage ratio ( as defined in the credit agreement , as amended ) measured over the preceding four fiscal quarters , beginning , as of the end of the third quarter of fiscal 2014 , of 4.00 to 1.00 , stepping down to 3.75 to 1.00 as of the end of the fourth quarter of fiscal 2014 and thereafter to and including the third quarter of 2015 , and 3.25 to 1.00 as of the end of each fiscal quarter beginning with the fourth quarter of 2015 and thereafter ; minimum domestic cash of $ 15.0 million as of the last day of any fiscal quarter and $ 10.0 million as of the last day of any other fiscal month from january 25 , 2013 and thereafter ; a minimum consolidated quick ratio ( as defined in the credit agreement , as amended ) of 1.10 to 1.00 as of the end of each fiscal month from january 25 , 2013 and thereafter ; minimum consolidated adjusted ebitda ( as defined in the credit agreement , as amended ) , measured over the preceding two quarters , of $ 3.5 million as of the end of the fourth quarter of 2012 , $ 2.5
| liquidity and capital resources we have required capital principally to fund our acquisitions and working capital needs , satisfy our debt obligations , maintain our equipment and purchase new capital equipment . as of december 27 , 2013 , we had cash of $ 60.4 million compared to $ 54.3 million as of december 28 , 2012. our cash and cash equivalents , as well as cash generated from operations , was our principal source of liquidity as of december 27 , 2013. for the twelve months ended december 27 , 2013 , we generated cash from operating activities of $ 29.9 million , an increase of $ 2.6 million when compared to $ 27.3 million for fiscal 2012. cash generated from operating activities for fiscal 2012 represented an increase of $ 3.6 million when compared to $ 23.7 million for fiscal 2011. operating cash flows generated in the twelve months ended december 27 , 2013 , were from $ 10.4 million of net income ; net non-cash activity , including depreciation of equipment and leasehold improvements and amortization of intangibles and debt issuance costs of a total $ 9.6 million and stock-based compensation of $ 4.7 million ; and decreases in accounts receivable and inventory of $ 17.3 million and $ 9.1 million , respectively . the decrease in inventory reflects the substantial improvement in inventory management over the previous year . these were offset by a net increase in accounts payable and other current liabilities of $ 31.0 million , and an increase in accrued compensation and related benefits of $ 1.1 million . our cash flows from operations in any given period are largely driven by the timing of sales , the collection of accounts receivable and the payment of accounts payable . net cash used in investing activities for the twelve months ended december 27 , 2013 , was $ 2.9 million , consisting mainly of $ 1.4 million capital equipment expenditures in asia similar to the capital expenditures in 2012 which reflects our continued investment in our asian subsidiaries as well as $ 1.6 million capital expenditures in our domestic operating units .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources we have required capital principally to fund our acquisitions and working capital needs , satisfy our debt obligations , maintain our equipment and purchase new capital equipment . as of december 27 , 2013 , we had cash of $ 60.4 million compared to $ 54.3 million as of december 28 , 2012. our cash and cash equivalents , as well as cash generated from operations , was our principal source of liquidity as of december 27 , 2013. for the twelve months ended december 27 , 2013 , we generated cash from operating activities of $ 29.9 million , an increase of $ 2.6 million when compared to $ 27.3 million for fiscal 2012. cash generated from operating activities for fiscal 2012 represented an increase of $ 3.6 million when compared to $ 23.7 million for fiscal 2011. operating cash flows generated in the twelve months ended december 27 , 2013 , were from $ 10.4 million of net income ; net non-cash activity , including depreciation of equipment and leasehold improvements and amortization of intangibles and debt issuance costs of a total $ 9.6 million and stock-based compensation of $ 4.7 million ; and decreases in accounts receivable and inventory of $ 17.3 million and $ 9.1 million , respectively . the decrease in inventory reflects the substantial improvement in inventory management over the previous year . these were offset by a net increase in accounts payable and other current liabilities of $ 31.0 million , and an increase in accrued compensation and related benefits of $ 1.1 million . our cash flows from operations in any given period are largely driven by the timing of sales , the collection of accounts receivable and the payment of accounts payable . net cash used in investing activities for the twelve months ended december 27 , 2013 , was $ 2.9 million , consisting mainly of $ 1.4 million capital equipment expenditures in asia similar to the capital expenditures in 2012 which reflects our continued investment in our asian subsidiaries as well as $ 1.6 million capital expenditures in our domestic operating units .
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Suspicious Activity Report : 29 results of operations the following table sets forth income statement data for the periods indicated as a percentage of revenue : replace_table_token_5_th fiscal year 2013 compared with fiscal year 2012 sales sales for fiscal year 2013 increased $ 40.6 million , or 10.1 % to $ 444.0 million from $ 403.4 million for fiscal year 2012. the increase in sales during the fiscal year 2013 was due primarily to our acquisition of ait in july 2012 which resulted in the inclusion of sales of $ 122.4 million from ait , compared to $ 63.8 million of sales from ait for fiscal year 2012. sales for uct when excluding sales from ait were lower during the twelve months ended december 27 , 2013 when compared to fiscal year 2012 due to factors including the termination of our arrangement with fei at the end of the first quarter of 2012 , the determination by one of our larger semiconductor equipment customers to in-source a portion of their gas panel business , as well as an overall downturn in the semiconductor industry beginning in the third quarter of 2012 which did not impact ait until the beginning of the fourth quarter of 2012. we expect sales to increase modestly in the first quarter of 2014 as compared to the fourth quarter of 2013. cost of goods sold consists primarily of purchased materials , inventory reserves and labor and overhead , including depreciation , associated with the design and manufacture of products sold . gross profit for fiscal year 2013 increased to $ 67.3 million or 15.2 % of sales , from $ 55.8 million , or 13.8 % of sales , for fiscal year 2012. our gross margin increased in fiscal 2013 from the comparable period in 2012 due primarily to a sales mix which included higher margin products , certain improvements in operational efficiencies at our manufacturing locations , favorable work order variances and a reduction in floor stock costs , partially offset by in an increase in inventory reserves . we expect gross profit to be slightly higher in the first quarter of 2014 , as compared to the fourth quarter of fiscal 2013 , primarily as a result of modestly higher expected sales in the first quarter of 2014. research and development expense research and development expense consists primarily of activities related to new component testing and evaluation , test equipment and fixture development , product design , and other product development activities . research and development expense for fiscal year 2013 was $ 5.5 million or 1.2 % of sales , compared to 30 $ 5.1 million , or 1.3 % of sales , for fiscal year 2012. the increase in research and development expense in absolute dollars was primarily attributable to an increase in headcount and related payroll expenses . sales and marketing expense sales and marketing expense consists primarily of salaries and commissions paid to our sales and service employees , salaries paid to our engineers who work with the sales and service employees to help determine the components and configuration requirements for new products and other costs related to the sales of our products . sales and marketing expense increased $ 2.8 million , or 39.8 % , to $ 9.8 million , or 2.2 % of sales , compared to $ 7.0 million , or 1.7 % of sales , in the comparable period of 2012. the increase in the sales and marketing expense was primarily due to the inclusion of sales and marketing expenses generated from ait for the full twelve months ended december 27 , 2013 compared to six months in the previous year ended december 28 , 2012. the company also incurred additional costs during the year ended december 27 , 2013 related to an increase in headcount and headcount related costs , including salaries , commissions and bonuses due to increased revenues and operating income in the fiscal year 2013 compared to the fiscal year 2012. general and administrative expense general and administrative expense consists primarily of salaries and overhead associated with our administrative staff and professional fees . general and administrative expense increased $ 3.2 million , or 9.7 % , to $ 36.0 million , or 8.1 % of sales , for fiscal year 2013 compared to $ 32.9 million , or 8.1 % of sales , for fiscal year 2012. the increase is primarily due to amortization of finite-lived intangibles associated with the ait acquisition and incremental costs associated with the ait acquisition for a full year in fiscal year 2013 compared to a six month period in fiscal year 2012 which include headcount related costs , including salaries , bonuses and stock compensation . acquisition costs there were no acquisition costs in fiscal 2013 compared to approximately $ 2.4 million in fiscal 2012. these costs were associated with our purchase of ait and consisted primarily of professional fees and services in connection with the acquisition . interest and other income ( expense ) , net interest and other income ( expense ) , net for fiscal year 2013 was $ ( 3.3 ) million compared to $ ( 1.6 ) million for fiscal year 2012. the increase in net expense was primarily due to the increase in outstanding debt beginning in the third quarter of 2012 resulting from the acquisition of ait . income tax provision our effective tax rate for fiscal year 2013 was 17.3 % compared to 23.1 % for fiscal year 2012. the change in respective rates reflects , primarily , a change in the geographic mix of worldwide earnings and financial results for fiscal year 2013 compared to fiscal year 2012 as well as changes in our deferred tax assets and our accrual for uncertain tax positions . our effective tax rate was lower than the statutory rates for fiscal years 2013 and 2012 primarily due to the geographic distribution of our world-wide earnings in foreign jurisdictions with lower tax rates . story_separator_special_tag it is possible that changes in such circumstances , or in the variables associated with the judgments , assumptions and estimates used in assessing fair value , would require us to record a non-cash impairment charge . equity incentives to employees we issue stock options and restricted stock units to our employees and outside directors and provide our employees the right to purchase common stock under our employee stock purchase plan . under current accounting guidance , stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the service ( vesting ) period . the black-scholes option-pricing model that we use was developed for use in estimating the fair value of short-lived exchange traded options that have no vesting restrictions and are fully transferable . in addition , option-pricing models require the input of highly subjective assumptions , including the option 's expected life and the price volatility of underlying stock . our expected stock price volatility assumption was determined using the historical volatility of our common stock . we determined that historical volatility reflects market conditions and is a good indicator of future volatility . our expected term represents the period that our stock-based awards are expected to be outstanding and was determined based on our historical experience with similar awards , giving consideration to the contractual terms of the stock-based awards and vesting schedules . see note 8 of notes to consolidated financial statements for a detailed description unaudited quarterly financial results the following table sets forth statement of operations data for the periods indicated . the information for each of these periods is unaudited and has been prepared on the same basis as our audited consolidated financial statements included herein and includes all adjustments , consisting only of normal recurring adjustments that we consider necessary for a fair presentation of our unaudited operations data for the periods presented . historical results are not necessarily indicative of the results to be expected in the future ( in thousands , except per share data ) : replace_table_token_6_th 36 ( 1 ) earnings per share is calculated independently each quarter and for the full year based upon their respective weighted average shares outstanding . therefore , the sum of the quarterly earnings per share may not equal the annual earnings per share reported . ( 2 ) results from our acquisition of ait are included from the date of acquisition on july 1 , 2012 and for all periods in 2013 . ( 3 ) see note 12 to the notes to consolidated financial statements in our annual report on form 10-k for the fiscal year ended december 28 , 2012 filed with the sec on march 3 , 2013 for a reconciliation of these amounts ( if any ) to the amounts in the respective quarterly reports on form 10-q in which they were originally reported . story_separator_special_tag revolving credit facility ( subject to certain limitations ) bear interest at either a base rate or at the london interbank offered rate ( ยliborย ) ( with the libor being adjusted for certain eurocurrency reserve requirements , if any , as described in the credit agreement ) , plus , in each case , an applicable margin based on our consolidated leverage ratio . all loans 38 described above made on july 3 , 2012 were initially base rate loans , carrying interest of 3.75 % . as of december 27 , 2013 , the interest rates on the term loan and revolving credit facility were 3.67 % and 3.75 % , respectively . the effective interest rates are slightly higher due to the incurrence of certain loan-related costs of approximately $ 1.9 million that are treated as deferred interest and are being amortized over the life of the loans . the credit agreement requires us to maintain certain financial covenants including a minimum consolidated fixed charge coverage ratio , a maximum consolidated leverage ratio and minimum domestic cash balances . on february 15 , 2013 , we and the lenders amended the credit agreement in order to modify the financial covenants contained in the credit agreement , effective january 30 , 2013. the credit agreement , as amended , requires us to comply with the following financial covenants : a minimum consolidated fixed charge coverage ratio ( as defined in the credit agreement , as amended ) , measured over the preceding four fiscal quarters , beginning as of the end of the third quarter of fiscal 2014 , of 1.10 to 1.00 , stepping up to 1.25 to 1.00 as of the end of each fiscal quarter beginning with the first quarter of fiscal 2015 and thereafter ; a maximum consolidated leverage ratio ( as defined in the credit agreement , as amended ) measured over the preceding four fiscal quarters , beginning , as of the end of the third quarter of fiscal 2014 , of 4.00 to 1.00 , stepping down to 3.75 to 1.00 as of the end of the fourth quarter of fiscal 2014 and thereafter to and including the third quarter of 2015 , and 3.25 to 1.00 as of the end of each fiscal quarter beginning with the fourth quarter of 2015 and thereafter ; minimum domestic cash of $ 15.0 million as of the last day of any fiscal quarter and $ 10.0 million as of the last day of any other fiscal month from january 25 , 2013 and thereafter ; a minimum consolidated quick ratio ( as defined in the credit agreement , as amended ) of 1.10 to 1.00 as of the end of each fiscal month from january 25 , 2013 and thereafter ; minimum consolidated adjusted ebitda ( as defined in the credit agreement , as amended ) , measured over the preceding two quarters , of $ 3.5 million as of the end of the fourth quarter of 2012 , $ 2.5
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2,305 | we are continuing to manage our marketing communications to balance growth in customer traffic and the average customer expenditure . we plan to open one additional good times restaurant in fiscal 2016. bad daddy 's restaurants : we currently operate twelve company-owned and joint venture bad daddy 's restaurantsโfive in colorado and seven in north carolina . we also license one restaurant in north carolina and have a franchise restaurant in south carolina and a franchise restaurant in tennessee . the north carolina restaurants were all acquired in the acquisition of bdi in may 2015 , as described below . subsequent to fiscal year end , we opened two additional bad daddy 's restaurants in the denver metropolitan area , and we expect to open several more during fiscal 2016. acquisition of bad daddy 's international , llc in may 2015 , we completed our acquisition of all of the membership interests in bad daddy 's international , llc from five sellers . as of the date of the acquisition , bdi owned all of the member interests in four limited liability companies , each of which owned and operated a bad daddy 's burger bar restaurant in north carolina . in addition , bdi owned a portion of the member interests in three other limited liability companies , each of which also owned a bad daddy 's burger bar restaurant in north carolina . bdi owns the intellectual property associated with the bad daddy 's burger bar concept and owns 52 % of the member interests in bad daddy 's franchise development , llc ( โ bdfd โ ) , which has granted franchises for the ownership and operation of bad daddy 's burger bar restaurants in south carolina and tennessee . prior to the acquisition , the company owned the other 48 % of bdfd . the aggregate price paid by the company for the purchase of bdi was $ 21,402,000 , comprised of $ 18,988,000 payable in cash and a one-year secured promissory note bearing interest at 3.25 % in the amount of $ 2,414,000. to finance the acquisition in may 2015 , we issued an additional 2,783,810 shares of our common stock at a price to the public of $ 8.15 per shares . the table below presents the proforma revenue and net income for the fiscal years ended september 30 , 2015 and 2014 , assuming the acquisition had occurred on october 1 , 2013. this proforma information does not purport to represent what the actual results of operations of the company would have been had the acquisition occurred on this date nor does it purport to predict the results of operations for future periods . replace_table_token_6_th ( 1 ) net income during the fiscal year ended september 30 , 2014 includes acquisition related costs of $ 648,000. for additional information , see note 2 to the consolidated statements of operations for the years ended september 30 , 2015 and 2014 included elsewhere in this annual report on form 10-k. results of operations for fiscal 2015 compared to fiscal 2014 net revenues : net revenues for fiscal 2015 increased $ 16,314,000 ( +58.8 % ) to $ 44,057,000 from $ 27,743,000 for fiscal 2014 , of which $ 2,961,000 came from the good times restaurants and $ 13,353,000 from the bad daddy 's restaurants . 27 good times restaurant sales increased $ 2,956,000 to $ 28,521,000 from $ 25,566,000 in fiscal 2014. same store restaurant sales increased 6.9 % during fiscal 2015 compared to fiscal 2014. restaurants are included in same store sales after they have been open a full fifteen months . restaurant sales increased from the prior year due to the same store sales increase and the opening of two new restaurants during fiscal 2015. the total menu price increases taken during fiscal 2014 were 4.4 % and we took an additional 1 % menu price increase in october 2014. between january and may 2015 we took additional menu price increases of 2.35 % . franchise revenues increased $ 5,000 in fiscal 2015 due to an increase in good times franchise royalties and fees . average good times restaurant sales for company-operated restaurants open the entire fiscal year for fiscal 2014 and 2015 were as follows : fiscal 2015 fiscal 2014 company-operated $ 1,091,000 $ 1,035,000 during fiscal 2015 , company-operated good times restaurants ' sales ranged from a low of $ 802,000 to a high of $ 1,896,000. bad daddy 's restaurant sales for fiscal 2015 were $ 14,996,000 , which includes sales of $ 7,518,000 for two bad daddy 's restaurants open the entire fiscal year and one new bad daddy 's restaurant that opened in january 2015 , it also includes sales of $ 7,478,000 for the seven bad daddy 's restaurants acquired from bdi in may 2015. additionally , net revenues increased $ 160,000 compared to fiscal 2014 due to bad daddy 's franchise royalties and license fees which are all associated with the bdi acquisition . for factors which may affect future results of operations , please refer to a discussion of planned product and system changes discussed in the section entitled โ our growth strategies โ in item 1 of this annual report on form 10-k. food and packaging costs : for fiscal 2015 , food and packaging costs increased $ 5,294,000 from $ 9,273,000 ( 33.5 % of restaurant sales ) in fiscal 2014 to $ 14,567,000 ( 33.9 % of restaurant sales ) . story_separator_special_tag advertising costs : for fiscal 2015 , advertising costs increased $ 276,000 from $ 988,000 ( 3.6 % of restaurant sales ) in fiscal 2014 to $ 1,264,000 ( 2.9 % of restaurant sales ) . good times advertising costs increased $ 241,000 from $ 947,000 ( 3.7 % of restaurant sales ) in fiscal 2014 to $ 1,188,000 ( 4.1 % of restaurant sales ) in fiscal 2015. good times advertising costs consists primarily of contributions made to the advertising materials fund and a regional advertising cooperative based on a percentage of restaurant sales . we anticipate that in fiscal 2016 good times advertising costs will remain consistent with fiscal 2015 as a percentage of restaurant sales and will consist primarily of cable television advertising , social media and on-site and point-of-purchase merchandising totaling approximately 4 % of restaurant sales . bad daddy 's advertising costs were $ 76,000 ( 0.5 % of restaurant sales ) in fiscal 2015 compared to $ 40,000 ( 2.3 % of restaurant sales ) in fiscal 2014. the north carolina bdi restaurants acquired in may 2015 accounted for $ 29,000 of the increase . bad daddy 's advertising costs consist primarily of menu development , printing costs and local store marketing . acquisition costs : for fiscal 2015 , acquisition costs were $ 648,000. all acquisition costs are related to the acquisition of bdi , as discussed under โ acquisition of bad daddy 's international , llc , โ and include legal , accounting , other non-recurring integration costs and other professional services related to the transaction . franchise costs : for fiscal 2015 , franchise costs increased $ 15,000 from $ 96,000 in fiscal 2014 to $ 111,000. the costs are primarily related to the good times franchised restaurants . gain or loss on restaurant asset disposals : for fiscal 2015 , the loss on restaurant asset disposals was $ 9,000 compared to a gain of $ 16,000 in fiscal 2014. the loss in fiscal 2015 is comprised of a $ 26,000 deferred gain on a previous sale lease-back transaction offset by $ 35,000 of losses to write off abandoned equipment and site costs for the good times locations . 29 loss from operations : the loss from operations was $ 239,000 in fiscal 2015 compared to a loss from operations of $ 219,000 in fiscal 2014. the increase in loss from operations for the fiscal year is due primarily to matters discussed in the `` restaurant operating costs `` , `` general and administrative costs `` , โ franchise costs โ and โ gain on restaurant asset sales โ sections above . net loss : the net loss was $ 300,000 for fiscal 2015 compared to a net loss of $ 370,000 in fiscal 2014. the change from fiscal 2014 to fiscal 2015 was primarily attributable to the matters discussed in the `` net revenues `` , `` restaurant operating costs `` , `` general and administrative costs `` and `` franchise costs `` sections above , as well as 1 ) an increase in net interest expense of $ 54,000 compared to the same prior year period ; and 2 ) a decrease in our affiliate investment loss of $ 140,000 in fiscal 2015 compared to fiscal 2014. income attributable to non-controlling interests : for fiscal 2015 , the income attributable to non-controlling interests was $ 491,000 compared to $ 320,000 in fiscal 2014. the non-controlling interest represents the limited partner 's share of income in the good times and bad daddy 's joint venture restaurants . the increase is attributable to the increased sales and profitability of the good times joint venture restaurants and the acquisition of the bdi joint venture restaurants in may 2015. net loss attributable to common shareholders : for fiscal 2015 , the net loss attributable to common shareholders includes dividends of $ 0 compared to dividends on preferred stock of $ 59,000 in fiscal 2014. liquidity and capital resources cash and working capital : as of september 30 , 2015 , we had a working capital excess of $ 7,470,000. because restaurant sales are collected in cash and accounts payable for food and paper products are paid two to four weeks later , restaurant companies often operate with working capital deficits . we anticipate that working capital deficits may be incurred in the future and possibly increase when new bad daddy 's and good times restaurants are opened . we believe that we will have sufficient capital to meet our working capital , long term debt obligations and recurring capital expenditure needs in fiscal 2016 and beyond . financing : public offering : on may 4 , 2015 we completed a public offering of 2,783,810 shares of common stock , par value $ 0.001 per share . the price to the public was $ 8.15 per share with an underwriter 's agreement at a price of $ 7.58 per share . the public offering resulted in net proceeds of approximately $ 20.6 million that we primarily used for the acquisition of bad daddy 's international and development of additional bad daddy 's burger bar restaurants . we intend to use the remaining net proceeds from the offering after the acquisition of bdi for the remodeling and reimaging of existing good times burgers & frozen custard restaurants , for the development of new bad daddy 's burger bar restaurants , as working capital reserves and for future investment at the discretion of our board of directors . bad daddy 's international note payable : in may 2015 , in connection with the bdi purchase , the company entered into a one-year secured promissory note bearing interest at 3.25 % in the amount of $ 2,414,000 , as discussed under โ acquisition of bad daddy 's international , llc . โ united capital loan : on july 30 , 2014 drive thru entered into a development line loan and security agreement with united capital business lending
| cash flows : net cash provided by operating activities was $ 3,168,000 for fiscal 2015 compared to net cash provided by operating activities of $ 1,438,000 in fiscal 2014. the increase in net cash provided by operating activities for fiscal 2015 was the result of a net loss of $ 300,000 and non-cash reconciling items totaling $ 3,468,000 ( comprised principally of 1 ) depreciation and amortization of $ 1,332,000 ; 2 ) $ 478,000 of stock option compensation expense ; 3 ) an increase in our accretion for deferred rent of $ 234,000 ; 4 ) a $ 1,442,000 increase in accounts payable ; and 5 ) net decreases in operating assets and liabilities totaling $ 18,000 ) . net cash used in investing activities in fiscal 2015 was $ 23,715,000 compared to net cash used in investing activities of $ 3,849,000 in fiscal 2014. fiscal 2015 primarily reflects the acquisition of bdi of $ 17,612,000 ( net of cash acquired in the transaction ) and $ 1,521,000 in sale leaseback proceeds and purchases of property and equipment . purchases of property and equipment were $ 7,633,000 , comprised of the following : ยท $ 3,389,000 in costs for the development of bad daddy 's locations in colorado ยท $ 160,000 for miscellaneous capital expenditures related to our bad daddy 's restaurants ยท $ 1,270,000 in costs related to our existing good times locations , for reimaging and remodeling ยท $ 2,415,000 for the development of two good times locations , including the purchase of land for a new location that opened on may 5 , 2015 ยท $ 321,000 for miscellaneous capital expenditures related to our good times restaurants ยท $ 78,000 for miscellaneous capital expenditures related to our corporate office net cash provided by financing activities in fiscal 2015 was $ 24,462,000 compared to $ 6,162,000 in fiscal 2014. the fiscal 2015 activity includes net proceeds of $ 20,618,000 from our public stock offering , principal payments on notes payable and long term debt of $ 139,000 , borrowings on notes payable and long-term debt of $ 1,118,000 , net proceeds from warrant and option exercises of $ 3,296,000 , and distributions to non-controlling
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows : net cash provided by operating activities was $ 3,168,000 for fiscal 2015 compared to net cash provided by operating activities of $ 1,438,000 in fiscal 2014. the increase in net cash provided by operating activities for fiscal 2015 was the result of a net loss of $ 300,000 and non-cash reconciling items totaling $ 3,468,000 ( comprised principally of 1 ) depreciation and amortization of $ 1,332,000 ; 2 ) $ 478,000 of stock option compensation expense ; 3 ) an increase in our accretion for deferred rent of $ 234,000 ; 4 ) a $ 1,442,000 increase in accounts payable ; and 5 ) net decreases in operating assets and liabilities totaling $ 18,000 ) . net cash used in investing activities in fiscal 2015 was $ 23,715,000 compared to net cash used in investing activities of $ 3,849,000 in fiscal 2014. fiscal 2015 primarily reflects the acquisition of bdi of $ 17,612,000 ( net of cash acquired in the transaction ) and $ 1,521,000 in sale leaseback proceeds and purchases of property and equipment . purchases of property and equipment were $ 7,633,000 , comprised of the following : ยท $ 3,389,000 in costs for the development of bad daddy 's locations in colorado ยท $ 160,000 for miscellaneous capital expenditures related to our bad daddy 's restaurants ยท $ 1,270,000 in costs related to our existing good times locations , for reimaging and remodeling ยท $ 2,415,000 for the development of two good times locations , including the purchase of land for a new location that opened on may 5 , 2015 ยท $ 321,000 for miscellaneous capital expenditures related to our good times restaurants ยท $ 78,000 for miscellaneous capital expenditures related to our corporate office net cash provided by financing activities in fiscal 2015 was $ 24,462,000 compared to $ 6,162,000 in fiscal 2014. the fiscal 2015 activity includes net proceeds of $ 20,618,000 from our public stock offering , principal payments on notes payable and long term debt of $ 139,000 , borrowings on notes payable and long-term debt of $ 1,118,000 , net proceeds from warrant and option exercises of $ 3,296,000 , and distributions to non-controlling
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Suspicious Activity Report : we are continuing to manage our marketing communications to balance growth in customer traffic and the average customer expenditure . we plan to open one additional good times restaurant in fiscal 2016. bad daddy 's restaurants : we currently operate twelve company-owned and joint venture bad daddy 's restaurantsโfive in colorado and seven in north carolina . we also license one restaurant in north carolina and have a franchise restaurant in south carolina and a franchise restaurant in tennessee . the north carolina restaurants were all acquired in the acquisition of bdi in may 2015 , as described below . subsequent to fiscal year end , we opened two additional bad daddy 's restaurants in the denver metropolitan area , and we expect to open several more during fiscal 2016. acquisition of bad daddy 's international , llc in may 2015 , we completed our acquisition of all of the membership interests in bad daddy 's international , llc from five sellers . as of the date of the acquisition , bdi owned all of the member interests in four limited liability companies , each of which owned and operated a bad daddy 's burger bar restaurant in north carolina . in addition , bdi owned a portion of the member interests in three other limited liability companies , each of which also owned a bad daddy 's burger bar restaurant in north carolina . bdi owns the intellectual property associated with the bad daddy 's burger bar concept and owns 52 % of the member interests in bad daddy 's franchise development , llc ( โ bdfd โ ) , which has granted franchises for the ownership and operation of bad daddy 's burger bar restaurants in south carolina and tennessee . prior to the acquisition , the company owned the other 48 % of bdfd . the aggregate price paid by the company for the purchase of bdi was $ 21,402,000 , comprised of $ 18,988,000 payable in cash and a one-year secured promissory note bearing interest at 3.25 % in the amount of $ 2,414,000. to finance the acquisition in may 2015 , we issued an additional 2,783,810 shares of our common stock at a price to the public of $ 8.15 per shares . the table below presents the proforma revenue and net income for the fiscal years ended september 30 , 2015 and 2014 , assuming the acquisition had occurred on october 1 , 2013. this proforma information does not purport to represent what the actual results of operations of the company would have been had the acquisition occurred on this date nor does it purport to predict the results of operations for future periods . replace_table_token_6_th ( 1 ) net income during the fiscal year ended september 30 , 2014 includes acquisition related costs of $ 648,000. for additional information , see note 2 to the consolidated statements of operations for the years ended september 30 , 2015 and 2014 included elsewhere in this annual report on form 10-k. results of operations for fiscal 2015 compared to fiscal 2014 net revenues : net revenues for fiscal 2015 increased $ 16,314,000 ( +58.8 % ) to $ 44,057,000 from $ 27,743,000 for fiscal 2014 , of which $ 2,961,000 came from the good times restaurants and $ 13,353,000 from the bad daddy 's restaurants . 27 good times restaurant sales increased $ 2,956,000 to $ 28,521,000 from $ 25,566,000 in fiscal 2014. same store restaurant sales increased 6.9 % during fiscal 2015 compared to fiscal 2014. restaurants are included in same store sales after they have been open a full fifteen months . restaurant sales increased from the prior year due to the same store sales increase and the opening of two new restaurants during fiscal 2015. the total menu price increases taken during fiscal 2014 were 4.4 % and we took an additional 1 % menu price increase in october 2014. between january and may 2015 we took additional menu price increases of 2.35 % . franchise revenues increased $ 5,000 in fiscal 2015 due to an increase in good times franchise royalties and fees . average good times restaurant sales for company-operated restaurants open the entire fiscal year for fiscal 2014 and 2015 were as follows : fiscal 2015 fiscal 2014 company-operated $ 1,091,000 $ 1,035,000 during fiscal 2015 , company-operated good times restaurants ' sales ranged from a low of $ 802,000 to a high of $ 1,896,000. bad daddy 's restaurant sales for fiscal 2015 were $ 14,996,000 , which includes sales of $ 7,518,000 for two bad daddy 's restaurants open the entire fiscal year and one new bad daddy 's restaurant that opened in january 2015 , it also includes sales of $ 7,478,000 for the seven bad daddy 's restaurants acquired from bdi in may 2015. additionally , net revenues increased $ 160,000 compared to fiscal 2014 due to bad daddy 's franchise royalties and license fees which are all associated with the bdi acquisition . for factors which may affect future results of operations , please refer to a discussion of planned product and system changes discussed in the section entitled โ our growth strategies โ in item 1 of this annual report on form 10-k. food and packaging costs : for fiscal 2015 , food and packaging costs increased $ 5,294,000 from $ 9,273,000 ( 33.5 % of restaurant sales ) in fiscal 2014 to $ 14,567,000 ( 33.9 % of restaurant sales ) . story_separator_special_tag advertising costs : for fiscal 2015 , advertising costs increased $ 276,000 from $ 988,000 ( 3.6 % of restaurant sales ) in fiscal 2014 to $ 1,264,000 ( 2.9 % of restaurant sales ) . good times advertising costs increased $ 241,000 from $ 947,000 ( 3.7 % of restaurant sales ) in fiscal 2014 to $ 1,188,000 ( 4.1 % of restaurant sales ) in fiscal 2015. good times advertising costs consists primarily of contributions made to the advertising materials fund and a regional advertising cooperative based on a percentage of restaurant sales . we anticipate that in fiscal 2016 good times advertising costs will remain consistent with fiscal 2015 as a percentage of restaurant sales and will consist primarily of cable television advertising , social media and on-site and point-of-purchase merchandising totaling approximately 4 % of restaurant sales . bad daddy 's advertising costs were $ 76,000 ( 0.5 % of restaurant sales ) in fiscal 2015 compared to $ 40,000 ( 2.3 % of restaurant sales ) in fiscal 2014. the north carolina bdi restaurants acquired in may 2015 accounted for $ 29,000 of the increase . bad daddy 's advertising costs consist primarily of menu development , printing costs and local store marketing . acquisition costs : for fiscal 2015 , acquisition costs were $ 648,000. all acquisition costs are related to the acquisition of bdi , as discussed under โ acquisition of bad daddy 's international , llc , โ and include legal , accounting , other non-recurring integration costs and other professional services related to the transaction . franchise costs : for fiscal 2015 , franchise costs increased $ 15,000 from $ 96,000 in fiscal 2014 to $ 111,000. the costs are primarily related to the good times franchised restaurants . gain or loss on restaurant asset disposals : for fiscal 2015 , the loss on restaurant asset disposals was $ 9,000 compared to a gain of $ 16,000 in fiscal 2014. the loss in fiscal 2015 is comprised of a $ 26,000 deferred gain on a previous sale lease-back transaction offset by $ 35,000 of losses to write off abandoned equipment and site costs for the good times locations . 29 loss from operations : the loss from operations was $ 239,000 in fiscal 2015 compared to a loss from operations of $ 219,000 in fiscal 2014. the increase in loss from operations for the fiscal year is due primarily to matters discussed in the `` restaurant operating costs `` , `` general and administrative costs `` , โ franchise costs โ and โ gain on restaurant asset sales โ sections above . net loss : the net loss was $ 300,000 for fiscal 2015 compared to a net loss of $ 370,000 in fiscal 2014. the change from fiscal 2014 to fiscal 2015 was primarily attributable to the matters discussed in the `` net revenues `` , `` restaurant operating costs `` , `` general and administrative costs `` and `` franchise costs `` sections above , as well as 1 ) an increase in net interest expense of $ 54,000 compared to the same prior year period ; and 2 ) a decrease in our affiliate investment loss of $ 140,000 in fiscal 2015 compared to fiscal 2014. income attributable to non-controlling interests : for fiscal 2015 , the income attributable to non-controlling interests was $ 491,000 compared to $ 320,000 in fiscal 2014. the non-controlling interest represents the limited partner 's share of income in the good times and bad daddy 's joint venture restaurants . the increase is attributable to the increased sales and profitability of the good times joint venture restaurants and the acquisition of the bdi joint venture restaurants in may 2015. net loss attributable to common shareholders : for fiscal 2015 , the net loss attributable to common shareholders includes dividends of $ 0 compared to dividends on preferred stock of $ 59,000 in fiscal 2014. liquidity and capital resources cash and working capital : as of september 30 , 2015 , we had a working capital excess of $ 7,470,000. because restaurant sales are collected in cash and accounts payable for food and paper products are paid two to four weeks later , restaurant companies often operate with working capital deficits . we anticipate that working capital deficits may be incurred in the future and possibly increase when new bad daddy 's and good times restaurants are opened . we believe that we will have sufficient capital to meet our working capital , long term debt obligations and recurring capital expenditure needs in fiscal 2016 and beyond . financing : public offering : on may 4 , 2015 we completed a public offering of 2,783,810 shares of common stock , par value $ 0.001 per share . the price to the public was $ 8.15 per share with an underwriter 's agreement at a price of $ 7.58 per share . the public offering resulted in net proceeds of approximately $ 20.6 million that we primarily used for the acquisition of bad daddy 's international and development of additional bad daddy 's burger bar restaurants . we intend to use the remaining net proceeds from the offering after the acquisition of bdi for the remodeling and reimaging of existing good times burgers & frozen custard restaurants , for the development of new bad daddy 's burger bar restaurants , as working capital reserves and for future investment at the discretion of our board of directors . bad daddy 's international note payable : in may 2015 , in connection with the bdi purchase , the company entered into a one-year secured promissory note bearing interest at 3.25 % in the amount of $ 2,414,000 , as discussed under โ acquisition of bad daddy 's international , llc . โ united capital loan : on july 30 , 2014 drive thru entered into a development line loan and security agreement with united capital business lending
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2,306 | we generate revenue by providing professional services for both our saas solutions and perpetual and term license products ( primarily related to implementation services ) to the extent requested by our customers . the vast majority of our professional services revenue is recognized on a time and materials basis as the work is delivered to our customers . our customers may also choose to obtain implementation services through our network of third-party si partners who provide implementation and other related services to our customers . our partnerships with leading sis allow us to grow our business more efficiently by giving us scale to service our growing customer base . we continue to grow our services organization , including increasing the number of qualified consultants we employ and investing time and resources to develop relationships with new si partners in existing and new markets . we sell our products and services to a wide variety of carriers , including many of the largest and most recognizable brands in the p & c insurance industry , as well as smaller national and regional carriers . our direct sales team focuses on obtaining new customers , which includes carriers that currently operate internally developed or competing systems , as well as selling into our existing customer base , which includes marketing our saas solutions to our term and perpetual license customers to drive adoption of our saas solutions and cross-selling additional applications . we are committed to continued training and development in order to increase the productivity of our sales team , with regional sales centers in north america , europe and australia . our sales team is complemented by our partnerships with third-party partners , including leading sis and solution partners . these partners provide additional market validation to our offerings , enhance our sales force through co-marketing efforts and offer greater speed and efficiency of implementation capabilities and related services to our customers . we also engage in a variety of traditional and online marketing activities designed to provide sales support and build brand recognition and enhance our reputation as an industry leader . we believe our strong customer relationships are a result of our ability to develop innovative technology and incorporate our deep domain expertise into products that serve mission critical functions in our customers ' day-to-day operations . we have over 150 insurance customers , of which over 60 have purchased one or more of our saas solutions . for customer concentration purposes , customers are assessed two ways : individual entities ( customers ) and combining customers that are under common control ( consolidated entities ) . we had no single customer that accounted for over 10 % of our total revenue in fiscal 2020 but one consolidated entity that represented approximately 11 % of our total revenue for fiscal 2020. this consolidated entity is a large multinational corporation that does business with us through multiple subsidiaries . in fiscal 2019 , a single customer , state farm , accounted for 10 % of our total revenue and the same multinational corporation was the one consolidated entity that represented approximately 13 % of our total revenue in fiscal 2019. key factors and trends affecting our results of operations increased focus on the sale of our saas solutions and resulting changing revenue mix . a central part of our strategy is to continue to grow our subscription revenue by signing new saas customers and increasing sales to our existing saas customers . additionally , over time we also expect to migrate existing term and perpetual license customers to our saas solutions . as a result , our software revenue mix will continue to change over time as the portion of license revenue ( primarily recognized up-front ) decreases and the portion of subscription revenue ( recognized monthly ) increases , which may make our results in any one period difficult to compare to any other period . for the fiscal years ended august 31 , 2020 , 2019 and 2018 , subscription revenue was 71 % , 60 % and 47 % of software revenue , respectively . continued and increased adoption of our solutions by customers . strong customer relationships are a key driver of our success given the importance of customer references for new sales . our long-term relationships with existing customers provide us with significant opportunities to reach customer decision-makers and sell our product offerings that address the specific customer 's needs , allowing us to recognize incremental sales with lower sales and marketing spend than for a new customer . with the continued launch of new functionality for the duck creek suite , we have the opportunity to realize incremental value by selling additional functionality to customers that do not currently utilize our full product portfolio and by encouraging existing term and perpetual license customers to adopt our saas solutions . as we demonstrate our value to customers , we believe we will have the opportunity to sell them additional solutions . moreover , because our products are priced on the basis of the amount of dwp generated by our customers , we expect our revenue will grow as our customers grow their businesses . 56 timing of license revenue recognition and changing contract terms . because our offerings are typically priced based on a customer 's dwp , and our business relies on a relatively small number of high-value contracts , the license revenues recognized in any fiscal period in which we sign a term license with a large global carrier may be disproportionally higher than revenues recognized in a period in which we only sign term licenses with smaller carriers . we generally experience lengthy sales cycles because potential customers typically undertake a rigorous pre-purchase decision-making and evaluation process . additionally , our license revenue may significantly increase in any given period in which a new license contract is signed . story_separator_special_tag results of operations comparison of fiscal years ended august 31 , 2020 , 2019 and 2018 the following table sets forth our consolidated results of operations for the periods indicated , expressed in total dollar terms and as a percentage of total revenue : replace_table_token_2_th 61 revenue subscription fiscal 2020 compared to fiscal 2019. subscription revenue increased $ 28.1 million , or 50 % , in fiscal 2020 versus fiscal 2019 due to a combination of sales to new customers and increased revenue generated from existing customers , which includes full year impact of prior year sales , sales of new services to existing customers and contractual growth . fiscal 2019 compared to fiscal 2018. subscription revenue increased $ 13.5 million , or 32 % , in fiscal 2019 versus fiscal 2018 due to a combination of sales to new customers and increased revenue generated from existing customers , which includes full year impact of prior year sales , sales of new services to existing customers and contractual growth . license fiscal 2020 compared to fiscal 2019 . license revenue decreased $ 3.9 million , or ( 28 % ) , in fiscal 2020 versus fiscal 2019 primarily due to a decrease in multi-year license deals and fees related to growth in dwp for license customers as a result of our shift to selling our saas solutions to new customers . fiscal 2019 compared to fiscal 2018 . license revenue decreased $ 7.2 million , or ( 34 % ) , in fiscal 2019 versus fiscal 2018 primarily due to our focus on selling our saas solutions to new customers and the revisions to contracting practices in fiscal 2018 to sell our term licenses with an initial two-year committed term and optional annual renewals instead of our historical three to six year committed terms . these decreases were partially offset by the conversion of a large perpetual license contract to an enterprise-wide term license contract , which shifted the revenue mix away from maintenance revenue and into license revenue . maintenance and support fiscal 2020 compared to fiscal 2019 . maintenance and support revenue decreased $ 0.2 million , or ( 1 % ) , in fiscal 2020 versus fiscal 2019 primarily due to the conversion of license contract customers to saas customers in the previous fiscal year . fiscal 2019 compared to fiscal 2018 . maintenance and support revenue decreased $ 2.1 million , or ( 8 % ) , in fiscal 2019 versus fiscal 2018 primarily due to the conversion of a large perpetual license contract to an enterprise-wide term license contract , which shifted the revenue mix away from maintenance revenue and into license revenue , and the conversion of two license contract customers to saas customers . professional services fiscal 2020 compared to fiscal 2019 . professional services revenue increased $ 16.4 million , or 21 % in fiscal 2020 versus fiscal 2019 primarily due to growth of our existing software customer base and new customer implementations . fiscal 2019 compared to fiscal 2018 . professional services revenue increased $ 7.5 million , or 11 % , in fiscal 2019 versus fiscal 2018 primarily due to growth of our existing software customer base and new customer implementations . cost of revenue fiscal 2020 compared to fiscal 2019 . cost of revenue increased $ 25.0 million , or 35 % , in fiscal 2020 versus fiscal 2019. fiscal 2019 compared to fiscal 2018 . cost of revenue increased $ 7.8 million , or 12 % , in fiscal 2019 versus fiscal 2018 . 62 cost of subscriptions fiscal 2020 compared to fiscal 2019 . cost of subscription revenue increased $ 10.7 million , or 44 % , in fiscal 2020 versus fiscal 2019 primarily due to an increase in saas customers , and is primarily comprised of a $ 5.1 million increase in hosting costs , a $ 3.9 million increase in payroll and related costs as we added employees to build out the saas operations team , a $ 0.7 million increase in computer hardware and software costs and a $ 0.1 million increase in professional service fees . share-based compensation increased $ 0.4 million in fiscal 2020 versus fiscal 2019 due to incremental charges related to employee stock options and phantom unit settlements as part of the reorganization transactions in conjunction with the ipo . beginning in fiscal 2020 , the company recorded $ 0.7 million of amortization expense associated with capitalized internal-use software costs . these increases were offset by a $ 0.2 million decrease in travel and entertainment expenses . fiscal 2019 compared to fiscal 2018 . cost of subscription revenue increased $ 1.9 million , or 9 % , in fiscal 2019 versus fiscal 2018 primarily due to an increase in saas customers , and is comprised of a $ 0.8 million increase in payroll and related costs as we added employees to build out the saas operations team , a $ 0.6 million increase in third-party software costs , a $ 0.5 million increase in consulting costs and a $ 0.1 million increase in royalties paid related to subscription arrangements . the increases were offset by a $ 0.4 million decrease due to eliminating redundancies in our external data hosting costs . cost of license fiscal 2020 compared to fiscal 2019 . cost of license revenue decreased $ 0.1 million , or ( 6 % ) in fiscal 2020 versus fiscal 2019 primarily due to a decrease in royalties paid to third parties resulting from the decrease in license revenue . fiscal 2019 compared to fiscal 2018 . cost of license revenue decreased $ 0.2 million , or ( 7 % ) , in fiscal 2019 versus fiscal 2018 primarily due to a decrease in royalties paid to third-parties resulting from the decrease in license revenue . cost of maintenance and support fiscal 2020 compared to fiscal 2019 . cost of maintenance and support revenue increased $ 0.6 million , or
| liquidity and capital resources to date , we have financed our operations primarily through cash provided by operating activities and our revolving credit facility . as of august 31 , 2020 , we had $ 389.9 million in cash ( including net proceeds received from the ipo ) no outstanding borrowings under our revolving credit facility and $ 1.0 million of outstanding letters of credit . we also had $ 29.0 million principal amount of additional availability under our revolving credit facility . while we believe our existing cash , together with cash provided by operating activities and amounts available under our revolving credit facility , will be sufficient to meet our operating working capital and capital expenditure requirements over at least the next twelve months , the extent to which covid-19 could impact our business , financial condition , results of operations and cash flows in the short- and medium-term can not be predicted with certainty , but such impact could be material . although we did not experience significant disruptions to our business in 2020 from covid-19 , we and our industry as a whole may experience a greater impact going forward . to the extent covid-19 has resulted in any increase to our cash and cash equivalents , including as a result of any 65 decreases in sales and market expenses described above , such increase could be temporary .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources to date , we have financed our operations primarily through cash provided by operating activities and our revolving credit facility . as of august 31 , 2020 , we had $ 389.9 million in cash ( including net proceeds received from the ipo ) no outstanding borrowings under our revolving credit facility and $ 1.0 million of outstanding letters of credit . we also had $ 29.0 million principal amount of additional availability under our revolving credit facility . while we believe our existing cash , together with cash provided by operating activities and amounts available under our revolving credit facility , will be sufficient to meet our operating working capital and capital expenditure requirements over at least the next twelve months , the extent to which covid-19 could impact our business , financial condition , results of operations and cash flows in the short- and medium-term can not be predicted with certainty , but such impact could be material . although we did not experience significant disruptions to our business in 2020 from covid-19 , we and our industry as a whole may experience a greater impact going forward . to the extent covid-19 has resulted in any increase to our cash and cash equivalents , including as a result of any 65 decreases in sales and market expenses described above , such increase could be temporary .
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Suspicious Activity Report : we generate revenue by providing professional services for both our saas solutions and perpetual and term license products ( primarily related to implementation services ) to the extent requested by our customers . the vast majority of our professional services revenue is recognized on a time and materials basis as the work is delivered to our customers . our customers may also choose to obtain implementation services through our network of third-party si partners who provide implementation and other related services to our customers . our partnerships with leading sis allow us to grow our business more efficiently by giving us scale to service our growing customer base . we continue to grow our services organization , including increasing the number of qualified consultants we employ and investing time and resources to develop relationships with new si partners in existing and new markets . we sell our products and services to a wide variety of carriers , including many of the largest and most recognizable brands in the p & c insurance industry , as well as smaller national and regional carriers . our direct sales team focuses on obtaining new customers , which includes carriers that currently operate internally developed or competing systems , as well as selling into our existing customer base , which includes marketing our saas solutions to our term and perpetual license customers to drive adoption of our saas solutions and cross-selling additional applications . we are committed to continued training and development in order to increase the productivity of our sales team , with regional sales centers in north america , europe and australia . our sales team is complemented by our partnerships with third-party partners , including leading sis and solution partners . these partners provide additional market validation to our offerings , enhance our sales force through co-marketing efforts and offer greater speed and efficiency of implementation capabilities and related services to our customers . we also engage in a variety of traditional and online marketing activities designed to provide sales support and build brand recognition and enhance our reputation as an industry leader . we believe our strong customer relationships are a result of our ability to develop innovative technology and incorporate our deep domain expertise into products that serve mission critical functions in our customers ' day-to-day operations . we have over 150 insurance customers , of which over 60 have purchased one or more of our saas solutions . for customer concentration purposes , customers are assessed two ways : individual entities ( customers ) and combining customers that are under common control ( consolidated entities ) . we had no single customer that accounted for over 10 % of our total revenue in fiscal 2020 but one consolidated entity that represented approximately 11 % of our total revenue for fiscal 2020. this consolidated entity is a large multinational corporation that does business with us through multiple subsidiaries . in fiscal 2019 , a single customer , state farm , accounted for 10 % of our total revenue and the same multinational corporation was the one consolidated entity that represented approximately 13 % of our total revenue in fiscal 2019. key factors and trends affecting our results of operations increased focus on the sale of our saas solutions and resulting changing revenue mix . a central part of our strategy is to continue to grow our subscription revenue by signing new saas customers and increasing sales to our existing saas customers . additionally , over time we also expect to migrate existing term and perpetual license customers to our saas solutions . as a result , our software revenue mix will continue to change over time as the portion of license revenue ( primarily recognized up-front ) decreases and the portion of subscription revenue ( recognized monthly ) increases , which may make our results in any one period difficult to compare to any other period . for the fiscal years ended august 31 , 2020 , 2019 and 2018 , subscription revenue was 71 % , 60 % and 47 % of software revenue , respectively . continued and increased adoption of our solutions by customers . strong customer relationships are a key driver of our success given the importance of customer references for new sales . our long-term relationships with existing customers provide us with significant opportunities to reach customer decision-makers and sell our product offerings that address the specific customer 's needs , allowing us to recognize incremental sales with lower sales and marketing spend than for a new customer . with the continued launch of new functionality for the duck creek suite , we have the opportunity to realize incremental value by selling additional functionality to customers that do not currently utilize our full product portfolio and by encouraging existing term and perpetual license customers to adopt our saas solutions . as we demonstrate our value to customers , we believe we will have the opportunity to sell them additional solutions . moreover , because our products are priced on the basis of the amount of dwp generated by our customers , we expect our revenue will grow as our customers grow their businesses . 56 timing of license revenue recognition and changing contract terms . because our offerings are typically priced based on a customer 's dwp , and our business relies on a relatively small number of high-value contracts , the license revenues recognized in any fiscal period in which we sign a term license with a large global carrier may be disproportionally higher than revenues recognized in a period in which we only sign term licenses with smaller carriers . we generally experience lengthy sales cycles because potential customers typically undertake a rigorous pre-purchase decision-making and evaluation process . additionally , our license revenue may significantly increase in any given period in which a new license contract is signed . story_separator_special_tag results of operations comparison of fiscal years ended august 31 , 2020 , 2019 and 2018 the following table sets forth our consolidated results of operations for the periods indicated , expressed in total dollar terms and as a percentage of total revenue : replace_table_token_2_th 61 revenue subscription fiscal 2020 compared to fiscal 2019. subscription revenue increased $ 28.1 million , or 50 % , in fiscal 2020 versus fiscal 2019 due to a combination of sales to new customers and increased revenue generated from existing customers , which includes full year impact of prior year sales , sales of new services to existing customers and contractual growth . fiscal 2019 compared to fiscal 2018. subscription revenue increased $ 13.5 million , or 32 % , in fiscal 2019 versus fiscal 2018 due to a combination of sales to new customers and increased revenue generated from existing customers , which includes full year impact of prior year sales , sales of new services to existing customers and contractual growth . license fiscal 2020 compared to fiscal 2019 . license revenue decreased $ 3.9 million , or ( 28 % ) , in fiscal 2020 versus fiscal 2019 primarily due to a decrease in multi-year license deals and fees related to growth in dwp for license customers as a result of our shift to selling our saas solutions to new customers . fiscal 2019 compared to fiscal 2018 . license revenue decreased $ 7.2 million , or ( 34 % ) , in fiscal 2019 versus fiscal 2018 primarily due to our focus on selling our saas solutions to new customers and the revisions to contracting practices in fiscal 2018 to sell our term licenses with an initial two-year committed term and optional annual renewals instead of our historical three to six year committed terms . these decreases were partially offset by the conversion of a large perpetual license contract to an enterprise-wide term license contract , which shifted the revenue mix away from maintenance revenue and into license revenue . maintenance and support fiscal 2020 compared to fiscal 2019 . maintenance and support revenue decreased $ 0.2 million , or ( 1 % ) , in fiscal 2020 versus fiscal 2019 primarily due to the conversion of license contract customers to saas customers in the previous fiscal year . fiscal 2019 compared to fiscal 2018 . maintenance and support revenue decreased $ 2.1 million , or ( 8 % ) , in fiscal 2019 versus fiscal 2018 primarily due to the conversion of a large perpetual license contract to an enterprise-wide term license contract , which shifted the revenue mix away from maintenance revenue and into license revenue , and the conversion of two license contract customers to saas customers . professional services fiscal 2020 compared to fiscal 2019 . professional services revenue increased $ 16.4 million , or 21 % in fiscal 2020 versus fiscal 2019 primarily due to growth of our existing software customer base and new customer implementations . fiscal 2019 compared to fiscal 2018 . professional services revenue increased $ 7.5 million , or 11 % , in fiscal 2019 versus fiscal 2018 primarily due to growth of our existing software customer base and new customer implementations . cost of revenue fiscal 2020 compared to fiscal 2019 . cost of revenue increased $ 25.0 million , or 35 % , in fiscal 2020 versus fiscal 2019. fiscal 2019 compared to fiscal 2018 . cost of revenue increased $ 7.8 million , or 12 % , in fiscal 2019 versus fiscal 2018 . 62 cost of subscriptions fiscal 2020 compared to fiscal 2019 . cost of subscription revenue increased $ 10.7 million , or 44 % , in fiscal 2020 versus fiscal 2019 primarily due to an increase in saas customers , and is primarily comprised of a $ 5.1 million increase in hosting costs , a $ 3.9 million increase in payroll and related costs as we added employees to build out the saas operations team , a $ 0.7 million increase in computer hardware and software costs and a $ 0.1 million increase in professional service fees . share-based compensation increased $ 0.4 million in fiscal 2020 versus fiscal 2019 due to incremental charges related to employee stock options and phantom unit settlements as part of the reorganization transactions in conjunction with the ipo . beginning in fiscal 2020 , the company recorded $ 0.7 million of amortization expense associated with capitalized internal-use software costs . these increases were offset by a $ 0.2 million decrease in travel and entertainment expenses . fiscal 2019 compared to fiscal 2018 . cost of subscription revenue increased $ 1.9 million , or 9 % , in fiscal 2019 versus fiscal 2018 primarily due to an increase in saas customers , and is comprised of a $ 0.8 million increase in payroll and related costs as we added employees to build out the saas operations team , a $ 0.6 million increase in third-party software costs , a $ 0.5 million increase in consulting costs and a $ 0.1 million increase in royalties paid related to subscription arrangements . the increases were offset by a $ 0.4 million decrease due to eliminating redundancies in our external data hosting costs . cost of license fiscal 2020 compared to fiscal 2019 . cost of license revenue decreased $ 0.1 million , or ( 6 % ) in fiscal 2020 versus fiscal 2019 primarily due to a decrease in royalties paid to third parties resulting from the decrease in license revenue . fiscal 2019 compared to fiscal 2018 . cost of license revenue decreased $ 0.2 million , or ( 7 % ) , in fiscal 2019 versus fiscal 2018 primarily due to a decrease in royalties paid to third-parties resulting from the decrease in license revenue . cost of maintenance and support fiscal 2020 compared to fiscal 2019 . cost of maintenance and support revenue increased $ 0.6 million , or
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2,307 | please refer to the critical accounting policies in the notes to the consolidated financial statements for additional detail regarding the gaap recognition policies associated with the captions described below . revenues management and leasing fees - management and leasing fees are primarily comprised of base asset management fees and performance based fees generated by our investment management division , property management fees generated by our property services division , leasing fees generated by our brokerage and auction divisions , and consulting fees generated by meyers . commissions - commission revenue consists of acquisition fees generated by our investment management division and sales commissions generated by our brokerage division . related party - related party revenue are management and leasing fees as well as commissions earned from our equity partners and relate to assets in which we have an ownership interest . rental and other income - rental and other income is comprised of rental income earned by our consolidated real estate investments . sale of real estate - sales of real estate consists of gross sales proceeds received on the sale of consolidated real estate that is not defined as a business by generally accepted accounting principles . this typically includes the sale of condominium units . expenses commission and marketing expenses - commission and marketing expenses includes fees paid to third party sales and leasing agents as well as business development costs necessary to generate revenues . rental operating expenses - rental and operating expenses consists of operating expenses of our consolidated real estate investments , including items such as property taxes , insurance , maintenance and repairs , utilities , supplies , salaries and management fees . compensation and related expenses - compensation and related expenses include : ( a ) employee compensation , comprising of salary , bonus , employer payroll taxes and benefits paid on behalf of employees and ( b ) share-based compensation associated with the grants of share-based awards . general and administrative - general and administrative expenses represent administrative costs necessary to run our business and include things such as occupancy and equipment expenses , professional fees , public company costs , travel and related expenses , and communications and information services . depreciation and amortization - depreciation and amortization is comprised of depreciation expense which is recognized ratably over the useful life of an asset and amortization expense which primarily consist of the amortization of assets allocated to the value of in-place leases upon acquisition of a consolidated real estate asset or the amortization of loan fees . 26 equity in joint venture income - equity in joint venture income consists of the company 's share of income or loss earned on investments in which the company can exercise significant influence but does not have control . as of december 31 , 2013 , approximately 66 % of the company 's investment account is invested through joint ventures investments . see the investment in joint venture footnote of the attached notes to the consolidated financial statements for summarized financial data , including balance sheet and income statement information of the underlying joint ventures . interest income from loan pool participations and notes receivable - interest income from loan pool participations is comprised of interest income earned on the company 's loan originations and investments in loans and discounted loan purchases . additionally , interest income from loan pool participations and note receivable are recognized on a level yield basis , where a level yield model is utilized to determine a yield rate which , based upon projected future cash flows , accretes interest income over the estimated holding period . acquisition-related gains - acquisition-related gains consist of gains recognized by the company upon a gaap required fair value measurement due to a business combination . these gains are typically recognized when the company converts a loan into consolidated real estate owned and the fair value of the underlying real estate exceeds the basis in the previously held loan . these gains also arise when there is a change of control of an investment . the gain amount is based upon the fair value of the company 's equity in the investment in excess of the carrying amount of the equity directly preceding the change of control . acquisition-related expenses - acquisition-related expenses consists of the costs incurred to acquire assets , such as stamp duty taxes on foreign transactions , as well as the write off of any costs associated with acquisitions which did not materialize . interest expense - corporate debt - interest expense - corporate debt represents interest costs associated with our senior notes payable , junior subordinated debentures and line of credit facility . this debt is unsecured and we typically use the funds generated from corporate borrowings to fund new investments . interest expense - mortgage debt - interest expense - mortgage debt represents interest costs associated with mortgages on our consolidated real estate . these mortgages are typically secured by the underlying real estate collateral . realized foreign currency exchange income or loss - realized foreign currency exchange income or loss relates to the settlement of foreign transactions during the year and arise due to changes in currency exchange rates . income taxes - the company 's services business operates globally as corporate entities subject to federal , state , and local income taxes and the investment business operates through various partnership structures to participate in multifamily , office and residential property acquisitions as well as originate loans and purchases loan pools . the company 's distributive share of income from its partnership investments will be subject to federal , state , and local taxes at the entity level and the related tax provision attributable to the company 's share of the income tax is reflected in the consolidated financial statements . noncontrolling interests - noncontrolling interests represents income or loss attributable to equity partners for their ownership in investments which the company controls . story_separator_special_tag 32 foreign currency translation loss was $ 2.8 million during the year end december 31 , 2013 compared to no comparable activity in the prior period due to the recognition of foreign currency loss on the u.k. loan pool as the investment was substantially liquidated at the end of 2013. provision for income taxes was $ 2.9 million in 2013 as compared to a benefit from income taxes of $ 0.2 million in 2012 due to higher taxable income in the united states . the company had $ 114.4 million and $ 73.2 million of federal and state net operating losses as of december 31 , 2013. we had net income of $ 20.3 million attributable to a non-controlling interests in 2013 compared to $ 2.5 million in 2012 . the increase is due to $ 22.6 million of the ritz carlton , lake tahoe acquisition-related gain described above being allocated to the company 's non-controlling equity partner . this was offset by interest and depreciation expense associated with fund ii being allocated to noncontrolling interest holders . during 2012 the net income attributable to non-controlling interest holders was primarily due to a gain from the sale of a multifamily property . our consolidated financial results and comparison of the years ended december 31 , 2012 and 2011 our revenues for the year ended december 31 , 2012 and 2011 were $ 64.1 million and $ 62.6 million . total operating expenses for the same periods were $ 91.5 million and $ 66.1 million , respectively . net loss attributable to our common shareholders was $ 3.9 million and $ 2.4 million in 2012 and 2011 , respectively . ebitda was $ 92.1 million and $ 66.2 million in 2012 and 2011 , respectively . adjusted ebitda was $ 100.2 million and $ 71.3 million in 2012 and 2011 , respectively . the company achieved a 39 % increase in ebitda and a 41 % increase in adjusted ebitda for the year ended december 31 , 2012 as compared to the same period in 2011. revenues investments segment revenues rental and other income increased to $ 8.5 million in 2012 from $ 5.1 million in 2011. the $ 3.4 million increase is primarily due to the acquisition of three apartment buildings and one office building in the western united states during 2012. additionally , we acquired an approximately 200,000 square foot office portfolio in oakland , california in the latter half of 2011 which contributed to the increase in rental and other income in 2012. during the year ended december 31 , 2012 , we sold five condominium units generating $ 2.3 million of proceeds from the sale of real estate . during the year ended december 31 , 2011 , we sold a land parcel in kent , washington , generating $ 0.4 million of proceeds in sale of real estate . services segment revenues third party services - these are management and leasing fees as well as commissions earned from third parties and relate to assets in which we do not have an ownership interest . our third party management and leasing services increased to $ 15.8 million during the year ended december 31 , 2012 as compared to approximately $ 12.6 million for the same period in 2011. the $ 3.2 million or 26 % increase primarily relates to our acquisitions of the real estate investment management division of the bank of ireland in the latter half of 2011 which provided asset management fees of $ 3.2 million during the year ended december 31 , 2012 as compared to approximately $ 1.4 million for the same period in 2011. in addition , in march 2012 , we acquired a real estate consultancy firm specializing in capital sourcing and real estate research for the single family homebuilding and multifamily apartment industries which generated $ 1.2 million in management fees . our third party commission revenues was at $ 5.0 million in 2012 as compared to approximately $ 5.8 million in 2011. during 2012 , we had a decrease in auction sales as compared to 2011. our auction services business has historically been countercyclical and improvements in general economic conditions caused auction service revenues to decrease . related party services - these are management and leasing fees as well as commissions earned from our equity partners and relate to assets in which we have an ownership interest . our related party management and leasing services generated revenues of $ 24.5 million in 2012 compared to approximately $ 14.5 million in 2011. the $ 10.0 million , or 68 % , increase primarily relates to our acquisition of the u.k.-based loan pool in the latter half of 2011 , which provided additional asset management fees of $ 8.4 million in 2012. in addition , as a result of our acquisition activity in the latter half of 2011 , and during 2012 , we have generated an additional $ 1.6 million in management and leasing fees . in 2012 , our related party commission revenues were $ 8.0 million compared to approximately $ 24.2 million in 2011. our commission revenues are primarily driven by fees related to the acquisition of the $ 2.1 billion u.k.-based loan portfolio . 33 during 2012 , we recognized $ 4.4 million of acquisition fees related to certain debt hurdles achieved in the u.k.-based loan portfolio as compared to $ 13.3 million in 2011. during 2011 , we received $ 8.3 million of fees related to the $ 1.5 billion recapitalization of the bank of ireland . we did not receive such fees in 2012. operating expenses investments segment operating expenses operating expenses for the year ended december 31 , 2012 increased to $ 41.3 million compared to $ 21.7 million for the same period in 2011. the increase is attributable to the following : compensation and related expenses increased by $ 10.8 million and general and administrative expenses increased by $ 3.7 million due to
| net cash provided by financing activities totaled $ 388.4 million for the year ended december 31 , 2012. this was primarily due to proceeds of $ 106.2 million received from the issuance of 8.6 million shares of common stock primarily to institutional investors , the issuance of $ 155.0 million of senior notes which generated $ 160.3 million in proceeds , $ 157.7 million of proceeds from mortgage loans to finance consolidated property acquisitions . these were offset by payments of cash dividends of $ 21.9 million to our common and preferred shareholders and a $ 4.9 million distribution to noncontrolling interest holders as a result of the sale of a 180-unit apartment building . since our common stock became listed on the nyse in november 2009 , cumulative preferred and common dividends declared were $ 32.6 million and $ 39.2 million , respectively , and are included as a component of retained earnings in the accompanying consolidated balance sheet and consolidated statement of equity . contractual obligations and commercial commitments at december 31 , 2013 , our contractual cash obligations , including debt , lines of credit , and operating leases included the following : 39 replace_table_token_16_th โ ( 1 ) see notes 10-13 of our notes to consolidated financial statements . figures do not include scheduled interest payments . assuming each debt obligation is held until maturity , we estimate that we will make the following interest payments : less than 1 year- $ 55.5 million ; 1-3 years- $ 153.8 million ; 4-5 years- $ 79.5 million ; after 5 years : $ 143.6 million . the interest payments on variable rate debt have been calculated at the interest rate in effect as of december 31 , 2013 . ( 2 ) excludes $ 5.3 million of unamortized debt premiums on mortgage loan payables . ( 3 ) excludes $ 4.0 million of net unamortized debt premium on senior notes . indebtedness and related covenants the following describes our corporate indebtedness and related covenants . junior subordinated debentures in 2007 , kennedy wilson issued junior subordinated debentures in the amount of $ 40.0 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash provided by financing activities totaled $ 388.4 million for the year ended december 31 , 2012. this was primarily due to proceeds of $ 106.2 million received from the issuance of 8.6 million shares of common stock primarily to institutional investors , the issuance of $ 155.0 million of senior notes which generated $ 160.3 million in proceeds , $ 157.7 million of proceeds from mortgage loans to finance consolidated property acquisitions . these were offset by payments of cash dividends of $ 21.9 million to our common and preferred shareholders and a $ 4.9 million distribution to noncontrolling interest holders as a result of the sale of a 180-unit apartment building . since our common stock became listed on the nyse in november 2009 , cumulative preferred and common dividends declared were $ 32.6 million and $ 39.2 million , respectively , and are included as a component of retained earnings in the accompanying consolidated balance sheet and consolidated statement of equity . contractual obligations and commercial commitments at december 31 , 2013 , our contractual cash obligations , including debt , lines of credit , and operating leases included the following : 39 replace_table_token_16_th โ ( 1 ) see notes 10-13 of our notes to consolidated financial statements . figures do not include scheduled interest payments . assuming each debt obligation is held until maturity , we estimate that we will make the following interest payments : less than 1 year- $ 55.5 million ; 1-3 years- $ 153.8 million ; 4-5 years- $ 79.5 million ; after 5 years : $ 143.6 million . the interest payments on variable rate debt have been calculated at the interest rate in effect as of december 31 , 2013 . ( 2 ) excludes $ 5.3 million of unamortized debt premiums on mortgage loan payables . ( 3 ) excludes $ 4.0 million of net unamortized debt premium on senior notes . indebtedness and related covenants the following describes our corporate indebtedness and related covenants . junior subordinated debentures in 2007 , kennedy wilson issued junior subordinated debentures in the amount of $ 40.0 million .
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Suspicious Activity Report : please refer to the critical accounting policies in the notes to the consolidated financial statements for additional detail regarding the gaap recognition policies associated with the captions described below . revenues management and leasing fees - management and leasing fees are primarily comprised of base asset management fees and performance based fees generated by our investment management division , property management fees generated by our property services division , leasing fees generated by our brokerage and auction divisions , and consulting fees generated by meyers . commissions - commission revenue consists of acquisition fees generated by our investment management division and sales commissions generated by our brokerage division . related party - related party revenue are management and leasing fees as well as commissions earned from our equity partners and relate to assets in which we have an ownership interest . rental and other income - rental and other income is comprised of rental income earned by our consolidated real estate investments . sale of real estate - sales of real estate consists of gross sales proceeds received on the sale of consolidated real estate that is not defined as a business by generally accepted accounting principles . this typically includes the sale of condominium units . expenses commission and marketing expenses - commission and marketing expenses includes fees paid to third party sales and leasing agents as well as business development costs necessary to generate revenues . rental operating expenses - rental and operating expenses consists of operating expenses of our consolidated real estate investments , including items such as property taxes , insurance , maintenance and repairs , utilities , supplies , salaries and management fees . compensation and related expenses - compensation and related expenses include : ( a ) employee compensation , comprising of salary , bonus , employer payroll taxes and benefits paid on behalf of employees and ( b ) share-based compensation associated with the grants of share-based awards . general and administrative - general and administrative expenses represent administrative costs necessary to run our business and include things such as occupancy and equipment expenses , professional fees , public company costs , travel and related expenses , and communications and information services . depreciation and amortization - depreciation and amortization is comprised of depreciation expense which is recognized ratably over the useful life of an asset and amortization expense which primarily consist of the amortization of assets allocated to the value of in-place leases upon acquisition of a consolidated real estate asset or the amortization of loan fees . 26 equity in joint venture income - equity in joint venture income consists of the company 's share of income or loss earned on investments in which the company can exercise significant influence but does not have control . as of december 31 , 2013 , approximately 66 % of the company 's investment account is invested through joint ventures investments . see the investment in joint venture footnote of the attached notes to the consolidated financial statements for summarized financial data , including balance sheet and income statement information of the underlying joint ventures . interest income from loan pool participations and notes receivable - interest income from loan pool participations is comprised of interest income earned on the company 's loan originations and investments in loans and discounted loan purchases . additionally , interest income from loan pool participations and note receivable are recognized on a level yield basis , where a level yield model is utilized to determine a yield rate which , based upon projected future cash flows , accretes interest income over the estimated holding period . acquisition-related gains - acquisition-related gains consist of gains recognized by the company upon a gaap required fair value measurement due to a business combination . these gains are typically recognized when the company converts a loan into consolidated real estate owned and the fair value of the underlying real estate exceeds the basis in the previously held loan . these gains also arise when there is a change of control of an investment . the gain amount is based upon the fair value of the company 's equity in the investment in excess of the carrying amount of the equity directly preceding the change of control . acquisition-related expenses - acquisition-related expenses consists of the costs incurred to acquire assets , such as stamp duty taxes on foreign transactions , as well as the write off of any costs associated with acquisitions which did not materialize . interest expense - corporate debt - interest expense - corporate debt represents interest costs associated with our senior notes payable , junior subordinated debentures and line of credit facility . this debt is unsecured and we typically use the funds generated from corporate borrowings to fund new investments . interest expense - mortgage debt - interest expense - mortgage debt represents interest costs associated with mortgages on our consolidated real estate . these mortgages are typically secured by the underlying real estate collateral . realized foreign currency exchange income or loss - realized foreign currency exchange income or loss relates to the settlement of foreign transactions during the year and arise due to changes in currency exchange rates . income taxes - the company 's services business operates globally as corporate entities subject to federal , state , and local income taxes and the investment business operates through various partnership structures to participate in multifamily , office and residential property acquisitions as well as originate loans and purchases loan pools . the company 's distributive share of income from its partnership investments will be subject to federal , state , and local taxes at the entity level and the related tax provision attributable to the company 's share of the income tax is reflected in the consolidated financial statements . noncontrolling interests - noncontrolling interests represents income or loss attributable to equity partners for their ownership in investments which the company controls . story_separator_special_tag 32 foreign currency translation loss was $ 2.8 million during the year end december 31 , 2013 compared to no comparable activity in the prior period due to the recognition of foreign currency loss on the u.k. loan pool as the investment was substantially liquidated at the end of 2013. provision for income taxes was $ 2.9 million in 2013 as compared to a benefit from income taxes of $ 0.2 million in 2012 due to higher taxable income in the united states . the company had $ 114.4 million and $ 73.2 million of federal and state net operating losses as of december 31 , 2013. we had net income of $ 20.3 million attributable to a non-controlling interests in 2013 compared to $ 2.5 million in 2012 . the increase is due to $ 22.6 million of the ritz carlton , lake tahoe acquisition-related gain described above being allocated to the company 's non-controlling equity partner . this was offset by interest and depreciation expense associated with fund ii being allocated to noncontrolling interest holders . during 2012 the net income attributable to non-controlling interest holders was primarily due to a gain from the sale of a multifamily property . our consolidated financial results and comparison of the years ended december 31 , 2012 and 2011 our revenues for the year ended december 31 , 2012 and 2011 were $ 64.1 million and $ 62.6 million . total operating expenses for the same periods were $ 91.5 million and $ 66.1 million , respectively . net loss attributable to our common shareholders was $ 3.9 million and $ 2.4 million in 2012 and 2011 , respectively . ebitda was $ 92.1 million and $ 66.2 million in 2012 and 2011 , respectively . adjusted ebitda was $ 100.2 million and $ 71.3 million in 2012 and 2011 , respectively . the company achieved a 39 % increase in ebitda and a 41 % increase in adjusted ebitda for the year ended december 31 , 2012 as compared to the same period in 2011. revenues investments segment revenues rental and other income increased to $ 8.5 million in 2012 from $ 5.1 million in 2011. the $ 3.4 million increase is primarily due to the acquisition of three apartment buildings and one office building in the western united states during 2012. additionally , we acquired an approximately 200,000 square foot office portfolio in oakland , california in the latter half of 2011 which contributed to the increase in rental and other income in 2012. during the year ended december 31 , 2012 , we sold five condominium units generating $ 2.3 million of proceeds from the sale of real estate . during the year ended december 31 , 2011 , we sold a land parcel in kent , washington , generating $ 0.4 million of proceeds in sale of real estate . services segment revenues third party services - these are management and leasing fees as well as commissions earned from third parties and relate to assets in which we do not have an ownership interest . our third party management and leasing services increased to $ 15.8 million during the year ended december 31 , 2012 as compared to approximately $ 12.6 million for the same period in 2011. the $ 3.2 million or 26 % increase primarily relates to our acquisitions of the real estate investment management division of the bank of ireland in the latter half of 2011 which provided asset management fees of $ 3.2 million during the year ended december 31 , 2012 as compared to approximately $ 1.4 million for the same period in 2011. in addition , in march 2012 , we acquired a real estate consultancy firm specializing in capital sourcing and real estate research for the single family homebuilding and multifamily apartment industries which generated $ 1.2 million in management fees . our third party commission revenues was at $ 5.0 million in 2012 as compared to approximately $ 5.8 million in 2011. during 2012 , we had a decrease in auction sales as compared to 2011. our auction services business has historically been countercyclical and improvements in general economic conditions caused auction service revenues to decrease . related party services - these are management and leasing fees as well as commissions earned from our equity partners and relate to assets in which we have an ownership interest . our related party management and leasing services generated revenues of $ 24.5 million in 2012 compared to approximately $ 14.5 million in 2011. the $ 10.0 million , or 68 % , increase primarily relates to our acquisition of the u.k.-based loan pool in the latter half of 2011 , which provided additional asset management fees of $ 8.4 million in 2012. in addition , as a result of our acquisition activity in the latter half of 2011 , and during 2012 , we have generated an additional $ 1.6 million in management and leasing fees . in 2012 , our related party commission revenues were $ 8.0 million compared to approximately $ 24.2 million in 2011. our commission revenues are primarily driven by fees related to the acquisition of the $ 2.1 billion u.k.-based loan portfolio . 33 during 2012 , we recognized $ 4.4 million of acquisition fees related to certain debt hurdles achieved in the u.k.-based loan portfolio as compared to $ 13.3 million in 2011. during 2011 , we received $ 8.3 million of fees related to the $ 1.5 billion recapitalization of the bank of ireland . we did not receive such fees in 2012. operating expenses investments segment operating expenses operating expenses for the year ended december 31 , 2012 increased to $ 41.3 million compared to $ 21.7 million for the same period in 2011. the increase is attributable to the following : compensation and related expenses increased by $ 10.8 million and general and administrative expenses increased by $ 3.7 million due to
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2,308 | the following is a summary of key performance information and events : results of operations are summarized as follows for the periods indicated ( in thousands ) : replace_table_token_5_th ยท income from continuing operations of $ 1.27 per share , diluted , for the year ended december 31 , 2016 compared to $ 1.58 per share , diluted , for the same period in 2015. o net income for the year ended december 31 , 2015 includes a $ 6.7 million gain , net of tax , resulting from the deconsolidation of a subsidiary and corresponding joint venture transaction . see discussion on gain on sale of subsidiary to joint venture . o net income for the year ended december 31 , 2015 includes a gain of $ 3.3 million , net of tax , on the sale of the infrastructure associated with the administration of substantially all of our individual life and annuity policies ceded . see discussion on other income . ยท consolidated investment yield ( on an annualized basis ) of 2.7 % in 2016 compared to 2.8 % in 2015 ; and ยท book value of $ 25.53 per common share at december 31 , 2016 compared to $ 18.73 at december 31 , 2015. the following is a summary of key performance information by segment : ยท the medical stop-loss segment reported income before taxes of $ 16.7 million for the year ended december 31 , 2016. income from the medical stop-loss segment in 2016 is principally due to ceding commissions on coinsurance due to the sale of risk solutions and exit from the medical stop-loss business . premiums earned and amounts recorded for benefits , claims and reserves in the medical stop-loss segment during 2016 represent the activity of the remaining blocks of medical stop-loss business in run-off . in 2015 , the medical stop-loss segment reported income before taxes of $ 18.8 million . ยท the company has renamed its ยfully insuredย segment ยspecialty healthย . specialty health more accurately reflects the niche nature of the products that ihc markets in this segment and continues to expand into since its exit from the major medical market . the specialty health segment reported $ 7.2 million of income before taxes for the year ended december 31 , 2016 compared to $ 6.5 million for the comparable period in 2015. the increase was primarily the result of increases from broader marketing of our short-term medical , scheduled benefit and gap plans , and growth in the pet insurance line of business , partially offset by poor underwriting results in our occupational accident business . o underwriting experience , as indicated by its u.s. gaap combined ratios , for the specialty health segment are as follows for the years indicated ( in thousands ) : replace_table_token_6_th ( a ) loss ratio represents insurance benefits claims and reserves divided by premiums earned . ( b ) expense ratio represents net commissions , administrative fees , premium taxes and other underwriting expenses divided by premiums earned . ( c ) the combined ratio is equal to the sum of the loss ratio and the expenses ratio . o although the loss ratio for the year ended december 31 , 2016 was slightly lower than the same period in 2015 , the loss ratio would have been significantly lower ( 48.0 % ) excluding the occupational accident line of business . poor performance of the business underwritten by its occupational accident agency led to the company 's decision to sell such company and exit business produced by it . expense ratios are higher for the year ended december 31 , 2016 because of a change in the mix of business from major medical to specialty health products and a reallocation of certain fixed costs from the medical stop loss line to the specialty health segment . ยท income before taxes from the group disability , life and dbl segment increased $ 2.1 million in 2016 compared to prior year results . the overall increase is primarily due to increased volume ; ยท loss before income taxes from the individual life , annuities and other segment increased $ 2.4 million for the year ended december 31 , 2016 , primarily due to the ceding of substantially all of the life and annuity blocks in the third quarter of 2015. current year activity primarily consists of the amortization of the related reinsurance costs whereas prior year activity includes a $ 5.1 million pre-tax gain recorded in connection with the sale of the infrastructure associated with the administration of the individual life and annuity policies ceded in 2015 ; ยท loss before tax from the corporate segment for the year ended december 31 , 2016 increased $ 0.6 million over the same period in 2015 primarily due to compensation costs and increased audit and consulting fees ; and ยท premiums by principal product for the years indicated are as follows ( in thousands ) : replace_table_token_7_th replace_table_token_8_th information pertaining to the company 's business segments is provided in note 18 of notes to consolidated financial statements included in item 8. critical accounting policies the accounting and reporting policies of the company conform to u.s. gaap . the preparation of the consolidated financial statements in conformity with u.s. gaap requires the company 's management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . actual results could differ from those estimates . a summary of the company 's significant accounting policies and practices is provided in note 1 of the notes to the consolidated financial statements included in item 8 of this report . management has identified the accounting policies described below as those that , due to the judgments , estimates and assumptions inherent in those policies , are critical to an understanding of the company 's consolidated financial statements and this management 's discussion and analysis . story_separator_special_tag other policyholders ' funds other policyholders ' funds represent interest-bearing liabilities arising from the sales of products , such as universal life , interest-sensitive life and annuities . policyholder funds are primarily comprised of deposits received and interest credited to the benefit of the policyholder less surrenders and withdrawals , mortality charges and administrative expenses . interest credited to policyholder funds represents interest accrued or paid on interest-sensitive life policies and investment policies . these amounts are reported in insurance benefits , claims and reserves on the consolidated statements of income . credit rates for certain annuities and interest-sensitive life policies are adjusted periodically by the company to reflect current market conditions , subject to contractually guaranteed minimum rates . investments the company has classified all of its investments as either available-for-sale or trading securities . these investments are carried at fair value with unrealized gains and losses reported through other comprehensive income ( loss ) for available-for-sale securities or as unrealized gains or losses in the consolidated statements of income for trading securities . available-for-sale securities totaled $ 454.8 million and $ 437.0 million at december 31 , 2016 and 2015 , respectively . premiums and discounts on debt securities purchased at other than par value are amortized and accreted , respectively , to interest income in the consolidated statements of income , using the constant yield method over the period to maturity . net realized gains and losses on investments are computed using the specific identification method and are reported in the consolidated statements of income on the trade date . fair value is determined using quoted market prices when available . in some cases , we use quoted market prices for similar instruments in active markets and or model-derived valuations where inputs are observable in active markets . when there are limited or inactive trading markets , we use industry-standard pricing methodologies , including discounted cash flow models , whose inputs are based on management assumptions and available current market information . further , we retain independent pricing vendors to assist in valuing certain instruments . most of the securities in our portfolio are classified in either level 1 or level 2 of the fair value hierarchy . the company periodically reviews and assesses the vendor 's qualifications and the design and appropriateness of its pricing methodologies . management will on occasion challenge pricing information on certain individual securities and , through communications with the vendor , obtain information about the assumptions , inputs and methodologies used in pricing those securities , and corroborate it against documented pricing methodologies . validation procedures are in place to determine completeness and accuracy of pricing information , including , but not limited to : ( i ) review of exception reports that ( a ) identify any zero or un-priced securities ; ( b ) identify securities with no price change ; and ( c ) identify securities with significant price changes ; ( ii ) performance of trend analyses ; ( iii ) periodic comparison of pricing to alternative pricing sources ; and ( iv ) comparison of pricing changes to expectations based on rating changes , benchmarks or control groups . in certain circumstances , pricing is unavailable from the vendor and broker pricing information is used to determine fair value . in these instances , management will assess the quality of the data sources , the underlying assumptions and the reasonableness of the broker quotes based on the current market information available . to determine if an exception represents an error , management will often have to exercise judgment . procedures to resolve an exception vary depending on the significance of the security and its related class , the frequency of the exception , the risk of material misstatement , and the availability of information for the security . these procedures include , but are not limited to : ( i ) a price challenge process with the vendor ; ( ii ) pricing from a different vendor ; ( iii ) a reasonableness review ; and ( iv ) a change in price based on better information , such as an actual market trade , among other things . management considers all facts and relevant information obtained during the above procedures to determine the proper classification of each security in the fair value hierarchy . declines in value of securities available-for-sale that are judged to be other-than-temporary are determined based on the specific identification method . the company reviews its investment securities regularly and determines whether other-than-temporary impairments have occurred . the factors considered by management in its regular review to identify and recognize other-than-temporary impairment losses on fixed maturities include , but are not limited to : the length of time and extent to which the fair value has been less than cost ; the company 's intent to sell , or be required to sell , the debt security before the anticipated recovery of its remaining amortized cost basis ; the financial condition and near-term prospects of the issuer ; adverse changes in ratings announced by one or more rating agencies ; subordinated credit support ; whether the issuer of a debt security has remained current on principal and interest payments ; current expected cash flows ; whether the decline in fair value appears to be issuer specific or , alternatively , a reflection of general market or industry conditions including the effect of changes in market interest rates . if the company intends to sell a debt security , or it is more likely than not that it would be required to sell a debt security before the recovery of its amortized cost basis , the entire difference between the security 's amortized cost basis and its fair value at the balance sheet date would be recognized by a charge to total other-than-temporary impairment losses in the consolidated statement of income . if a decline in fair value of a debt security is
| cash flows cash and cash equivalents , including discontinued operations , as of december 30 , 2016 and december 31 , 2015 was $ 22.0 million and $ 19.2 million , respectively . for year ended december 31 , 2016 , operating activities of the company utilized $ 31.0 million of cash , $ 98.9 million was provided by investment activities and $ 65.0 million of cash was utilized for financing activities . the increase in cash from investing is primarily related to the proceeds from the sale of risk solutions net of amounts subsequently invested in short-term and available-for-sale securities . financing activities include $ 18.1 million for the acquisition of amic shares in connection with taking amic private , $ 42.9 million utilized for the repayment of debt , $ 1.6 million for the payment of dividends and $ 3.5 million for treasury share purchases . the company has $ 438.6 million of liabilities for future policy benefits and policy benefits and claims that it expects to ultimately pay out of current assets and cash flows from future business and from reinsurance . if the timing of claim payments associated with the company 's insurance resources does not coincide with future cash flows , the company could utilize the cash received from maturities and repayments of its fixed maturity investments .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows cash and cash equivalents , including discontinued operations , as of december 30 , 2016 and december 31 , 2015 was $ 22.0 million and $ 19.2 million , respectively . for year ended december 31 , 2016 , operating activities of the company utilized $ 31.0 million of cash , $ 98.9 million was provided by investment activities and $ 65.0 million of cash was utilized for financing activities . the increase in cash from investing is primarily related to the proceeds from the sale of risk solutions net of amounts subsequently invested in short-term and available-for-sale securities . financing activities include $ 18.1 million for the acquisition of amic shares in connection with taking amic private , $ 42.9 million utilized for the repayment of debt , $ 1.6 million for the payment of dividends and $ 3.5 million for treasury share purchases . the company has $ 438.6 million of liabilities for future policy benefits and policy benefits and claims that it expects to ultimately pay out of current assets and cash flows from future business and from reinsurance . if the timing of claim payments associated with the company 's insurance resources does not coincide with future cash flows , the company could utilize the cash received from maturities and repayments of its fixed maturity investments .
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Suspicious Activity Report : the following is a summary of key performance information and events : results of operations are summarized as follows for the periods indicated ( in thousands ) : replace_table_token_5_th ยท income from continuing operations of $ 1.27 per share , diluted , for the year ended december 31 , 2016 compared to $ 1.58 per share , diluted , for the same period in 2015. o net income for the year ended december 31 , 2015 includes a $ 6.7 million gain , net of tax , resulting from the deconsolidation of a subsidiary and corresponding joint venture transaction . see discussion on gain on sale of subsidiary to joint venture . o net income for the year ended december 31 , 2015 includes a gain of $ 3.3 million , net of tax , on the sale of the infrastructure associated with the administration of substantially all of our individual life and annuity policies ceded . see discussion on other income . ยท consolidated investment yield ( on an annualized basis ) of 2.7 % in 2016 compared to 2.8 % in 2015 ; and ยท book value of $ 25.53 per common share at december 31 , 2016 compared to $ 18.73 at december 31 , 2015. the following is a summary of key performance information by segment : ยท the medical stop-loss segment reported income before taxes of $ 16.7 million for the year ended december 31 , 2016. income from the medical stop-loss segment in 2016 is principally due to ceding commissions on coinsurance due to the sale of risk solutions and exit from the medical stop-loss business . premiums earned and amounts recorded for benefits , claims and reserves in the medical stop-loss segment during 2016 represent the activity of the remaining blocks of medical stop-loss business in run-off . in 2015 , the medical stop-loss segment reported income before taxes of $ 18.8 million . ยท the company has renamed its ยfully insuredย segment ยspecialty healthย . specialty health more accurately reflects the niche nature of the products that ihc markets in this segment and continues to expand into since its exit from the major medical market . the specialty health segment reported $ 7.2 million of income before taxes for the year ended december 31 , 2016 compared to $ 6.5 million for the comparable period in 2015. the increase was primarily the result of increases from broader marketing of our short-term medical , scheduled benefit and gap plans , and growth in the pet insurance line of business , partially offset by poor underwriting results in our occupational accident business . o underwriting experience , as indicated by its u.s. gaap combined ratios , for the specialty health segment are as follows for the years indicated ( in thousands ) : replace_table_token_6_th ( a ) loss ratio represents insurance benefits claims and reserves divided by premiums earned . ( b ) expense ratio represents net commissions , administrative fees , premium taxes and other underwriting expenses divided by premiums earned . ( c ) the combined ratio is equal to the sum of the loss ratio and the expenses ratio . o although the loss ratio for the year ended december 31 , 2016 was slightly lower than the same period in 2015 , the loss ratio would have been significantly lower ( 48.0 % ) excluding the occupational accident line of business . poor performance of the business underwritten by its occupational accident agency led to the company 's decision to sell such company and exit business produced by it . expense ratios are higher for the year ended december 31 , 2016 because of a change in the mix of business from major medical to specialty health products and a reallocation of certain fixed costs from the medical stop loss line to the specialty health segment . ยท income before taxes from the group disability , life and dbl segment increased $ 2.1 million in 2016 compared to prior year results . the overall increase is primarily due to increased volume ; ยท loss before income taxes from the individual life , annuities and other segment increased $ 2.4 million for the year ended december 31 , 2016 , primarily due to the ceding of substantially all of the life and annuity blocks in the third quarter of 2015. current year activity primarily consists of the amortization of the related reinsurance costs whereas prior year activity includes a $ 5.1 million pre-tax gain recorded in connection with the sale of the infrastructure associated with the administration of the individual life and annuity policies ceded in 2015 ; ยท loss before tax from the corporate segment for the year ended december 31 , 2016 increased $ 0.6 million over the same period in 2015 primarily due to compensation costs and increased audit and consulting fees ; and ยท premiums by principal product for the years indicated are as follows ( in thousands ) : replace_table_token_7_th replace_table_token_8_th information pertaining to the company 's business segments is provided in note 18 of notes to consolidated financial statements included in item 8. critical accounting policies the accounting and reporting policies of the company conform to u.s. gaap . the preparation of the consolidated financial statements in conformity with u.s. gaap requires the company 's management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . actual results could differ from those estimates . a summary of the company 's significant accounting policies and practices is provided in note 1 of the notes to the consolidated financial statements included in item 8 of this report . management has identified the accounting policies described below as those that , due to the judgments , estimates and assumptions inherent in those policies , are critical to an understanding of the company 's consolidated financial statements and this management 's discussion and analysis . story_separator_special_tag other policyholders ' funds other policyholders ' funds represent interest-bearing liabilities arising from the sales of products , such as universal life , interest-sensitive life and annuities . policyholder funds are primarily comprised of deposits received and interest credited to the benefit of the policyholder less surrenders and withdrawals , mortality charges and administrative expenses . interest credited to policyholder funds represents interest accrued or paid on interest-sensitive life policies and investment policies . these amounts are reported in insurance benefits , claims and reserves on the consolidated statements of income . credit rates for certain annuities and interest-sensitive life policies are adjusted periodically by the company to reflect current market conditions , subject to contractually guaranteed minimum rates . investments the company has classified all of its investments as either available-for-sale or trading securities . these investments are carried at fair value with unrealized gains and losses reported through other comprehensive income ( loss ) for available-for-sale securities or as unrealized gains or losses in the consolidated statements of income for trading securities . available-for-sale securities totaled $ 454.8 million and $ 437.0 million at december 31 , 2016 and 2015 , respectively . premiums and discounts on debt securities purchased at other than par value are amortized and accreted , respectively , to interest income in the consolidated statements of income , using the constant yield method over the period to maturity . net realized gains and losses on investments are computed using the specific identification method and are reported in the consolidated statements of income on the trade date . fair value is determined using quoted market prices when available . in some cases , we use quoted market prices for similar instruments in active markets and or model-derived valuations where inputs are observable in active markets . when there are limited or inactive trading markets , we use industry-standard pricing methodologies , including discounted cash flow models , whose inputs are based on management assumptions and available current market information . further , we retain independent pricing vendors to assist in valuing certain instruments . most of the securities in our portfolio are classified in either level 1 or level 2 of the fair value hierarchy . the company periodically reviews and assesses the vendor 's qualifications and the design and appropriateness of its pricing methodologies . management will on occasion challenge pricing information on certain individual securities and , through communications with the vendor , obtain information about the assumptions , inputs and methodologies used in pricing those securities , and corroborate it against documented pricing methodologies . validation procedures are in place to determine completeness and accuracy of pricing information , including , but not limited to : ( i ) review of exception reports that ( a ) identify any zero or un-priced securities ; ( b ) identify securities with no price change ; and ( c ) identify securities with significant price changes ; ( ii ) performance of trend analyses ; ( iii ) periodic comparison of pricing to alternative pricing sources ; and ( iv ) comparison of pricing changes to expectations based on rating changes , benchmarks or control groups . in certain circumstances , pricing is unavailable from the vendor and broker pricing information is used to determine fair value . in these instances , management will assess the quality of the data sources , the underlying assumptions and the reasonableness of the broker quotes based on the current market information available . to determine if an exception represents an error , management will often have to exercise judgment . procedures to resolve an exception vary depending on the significance of the security and its related class , the frequency of the exception , the risk of material misstatement , and the availability of information for the security . these procedures include , but are not limited to : ( i ) a price challenge process with the vendor ; ( ii ) pricing from a different vendor ; ( iii ) a reasonableness review ; and ( iv ) a change in price based on better information , such as an actual market trade , among other things . management considers all facts and relevant information obtained during the above procedures to determine the proper classification of each security in the fair value hierarchy . declines in value of securities available-for-sale that are judged to be other-than-temporary are determined based on the specific identification method . the company reviews its investment securities regularly and determines whether other-than-temporary impairments have occurred . the factors considered by management in its regular review to identify and recognize other-than-temporary impairment losses on fixed maturities include , but are not limited to : the length of time and extent to which the fair value has been less than cost ; the company 's intent to sell , or be required to sell , the debt security before the anticipated recovery of its remaining amortized cost basis ; the financial condition and near-term prospects of the issuer ; adverse changes in ratings announced by one or more rating agencies ; subordinated credit support ; whether the issuer of a debt security has remained current on principal and interest payments ; current expected cash flows ; whether the decline in fair value appears to be issuer specific or , alternatively , a reflection of general market or industry conditions including the effect of changes in market interest rates . if the company intends to sell a debt security , or it is more likely than not that it would be required to sell a debt security before the recovery of its amortized cost basis , the entire difference between the security 's amortized cost basis and its fair value at the balance sheet date would be recognized by a charge to total other-than-temporary impairment losses in the consolidated statement of income . if a decline in fair value of a debt security is
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2,309 | the corporation 's consolidated financial condition and results of operations are comprised primarily of the bank 's financial condition and results of operations . current performance does not guarantee , and may not be indicative of , similar performance in the future . for more information on the factors that could affect performance , see โ special cautionary notice regarding forward looking statements โ immediately following the index at the beginning of this document . the geographic information required by item 101 ( d ) of regulation s-k promulgated under the securities exchange act of 1934 , as amended , is impracticable for the corporation to calculate ; however , the corporation does not believe that a material amount of revenue in any of the last three years was attributable to customers outside of the united states , nor does it believe that a material amount of its long-lived assets , in any of the past three years , was located outside of the united states . 30 critical accounting policies , judgments and estimates the accounting and reporting policies of the corporation and its subsidiaries conform to u.s. generally accepted accounting principles ( โ gaap โ ) . all inter-company transactions are eliminated in consolidation and certain reclassifications are made when necessary in order to conform the previous years ' consolidated financial statements to the current year 's presentation . in preparing the consolidated financial statements , management is required to make estimates and assumptions that affect the reported amount of assets and liabilities as of the dates of the balance sheets and revenues and expenditures for the periods presented . therefore , actual results could differ from these estimates . the allowance for loan and lease losses ( the โ allowance โ ) the allowance involves a higher degree of judgment and complexity than other significant accounting policies . the allowance is estimated with the objective of maintaining a reserve level believed by management to be sufficient to absorb estimated credit losses present in the loan portfolio as of the reporting date . management 's determination of the adequacy of the allowance is based on frequent evaluations of the loan and lease portfolio and other relevant factors . consideration is given to a variety of factors in establishing the estimate . quantitative factors in the form of historical charge-off rates by portfolio segment are considered . in connection with these quantitative factors , management establishes what it deems to be an adequate look-back period ( โ lbp โ ) for the charge-off history . as of december 31 , 2018 , management utilized a five-year lbp , which it believes adequately captures the trends in charge-offs . in addition , management develops an estimate of a loss emergence period ( โ lep โ ) for each segment of the loan portfolio . the lep estimates the time between the occurrence of a loss event for a borrower and an actual charge-off of a loan . as of december 31 , 2018 , management utilized a two-year lep for its commercial loan segments and a one-year lep for its consumer loan segments based on analyses of actual charge-offs tracked back in time to the triggering event for the eventual loss . in addition , various qualitative factors are considered , including specific terms and conditions of loans and leases , underwriting standards , delinquency statistics , industry concentration , overall exposure to a single customer , adequacy of collateral , the dependence on collateral , and results of internal loan review , including a borrower 's perceived financial and management strengths , the amounts and timing of the present value of future cash flows , and the access to additional funds . it should be noted that this evaluation is inherently subjective as it requires material estimates , including , among others , expected default probabilities , the amounts and timing of expected cash flows on impaired loans and leases , the value of collateral , estimated losses on consumer loans and residential mortgages and the relevance of historical loss experience . the process also considers economic conditions and inherent risks in the loan and lease portfolio . all of these factors may be susceptible to significant change . to the extent actual outcomes differ from management 's estimates , additional provision for loan and lease losses ( the โ provision โ ) may be required that would adversely impact earnings in future periods . see the section of this document titled asset quality and analysis of credit risk beginning at page 43 for additional information . fair value measurement of investment securities available-for-sale and assessment for impairment of certain investment securities management may designate its investment securities as held-to-maturity , available-for-sale or trading . each of these designations affords different treatment for changes in the fair market values of investment securities in the corporation 's consolidated financial statements that are otherwise identical . should evidence emerge which indicates that management 's intent or ability to maintain the securities as originally designated is not supported , reclassifications among the three designations may be necessary and , as a result , may require adjustments to the corporation 's consolidated financial statements . as of december 31 , 2018 , the corporation 's investment portfolio was primarily comprised of investment securities classified as available for sale . valuation of goodwill and intangible assets goodwill and intangible assets have been recorded on the books of the corporation in connection with its acquisitions . management completes a goodwill impairment analysis at least on an annual basis , or more often if events and circumstances indicate that there may be impairment . management also reviews other intangible assets with finite lives for impairment if events and circumstances indicate that the carrying value may not be recoverable . there was no goodwill or intangible asset impairment recorded during the years ended december 31 , 2018 , 2017 or 2016 . story_separator_special_tag average loans and leases for the year ended december 31 , 2018 increased $ 691.3 million from the same period in 2017 and experienced a 48 basis point increase in tax-equivalent yield . the increase in average loans and leases was primarily related to the loans and leases acquired in the rbpi merger which initially increased loans and leases by $ 566.2 million , as well as organic loan growth between the periods . tax-equivalent interest income on available for sale investment securities of $ 12.0 million for the year ended december 31 , 2018 increased $ 3.3 million as compared to $ 8.7 million for the year ended december 31 , 2017 . average available for sale investment securities for the year ended december 31 , 2018 increased $ 93.2 million from the same period in 2017 and experienced a 26 basis point increase in tax-equivalent yield . partially offsetting the effect on net interest income associated with the increase in average balances and yields in loans and leases and available for sale investment securities were increases in interest expense on deposits and borrowings . interest expense on interest-bearing deposits of $ 20.6 million for the year ended december 31 , 2018 increased $ 11.9 million as compared to $ 8.7 million for the year ended december 31 , 2017 . average interest-bearing deposits for the year ended december 31 , 2018 increased $ 604.0 million from the same period in 2017 and experienced a 36 basis point increase in rates paid . the increase in average interest-bearing deposits was primarily related to the interest-bearing deposits assumed in the rbpi merger , which initially totaled $ 494.8 million . interest expense on borrowings of $ 11.0 million for the year ended december 31 , 2018 increased $ 5.3 million as compared to $ 5.7 million for the year ended december 31 , 2017 . the increase related to increases in interest expense on subordinated notes , short-term borrowings , and junior subordinated debt of $ 2.9 million , $ 2.0 million , and $ 1.2 million , respectively , partially offset by a decrease in interest expense on long-term fhlb advances of $ 843 thousand . average subordinated notes for the year ended december 31 , 2018 increased $ 65.3 million from the same period in 2017 and experienced a 26 basis point decrease in rates paid . the volume increase in subordinated notes was the result of the december 13 , 2017 issuance of $ 70 million ten-year , 4.25 % fixed-to-floating subordinated notes . average short-term borrowings and junior subordinated notes for the year ended december 31 , 2018 increased $ 50.6 million and $ 20.5 million , respectively , from the same period in 2017 and experienced an 81 and 138 basis point increase , respectively , in rates paid . the volume increase in junior subordinated debt was related to the $ 21.4 million of floating rate junior subordinated debentures assumed in the rbpi merger . tax-equivalent net interest income and margin โ 2017 compared to 2016 tax-equivalent net interest income of $ 115.9 million for the year ended december 31 , 2017 increased $ 9.0 million as compared to $ 106.9 million for the year ended december 31 , 2016 . tax-equivalent net interest margin of 3.69 % for the year ended december 31 , 2017 decreased seven basis points as compared to 3.76 % for the year ended december 31 , 2016 . tax-equivalent interest and fees on loans and leases of $ 121.4 million for the year ended december 31 , 2017 increased $ 10.5 million as compared to $ 110.9 million for the year ended december 31 , 2016 . average loans and leases for the year ended december 31 , 2017 increased $ 235.5 million from the same period in 2016 with yields remaining relatively flat . tax-equivalent interest income on available for sale investment securities of $ 8.7 million for the year ended december 31 , 2017 increased $ 2.2 million as compared to $ 6.5 million for the year ended december 31 , 2016 . average available for sale investment securities for the year ended december 31 , 2017 increased $ 69.5 million from the same period in 2017 and experienced a 22 basis point increase in tax-equivalent yield . partially offsetting the effect on net interest income associated with the increase in average balances and yields in loans and leases and available for sale investment securities were increases in interest expense on deposits and borrowings . 37 interest expense on interest-bearing deposits of $ 8.7 million for the year ended december 31 , 2017 increased $ 2.9 million as compared to $ 5.8 million for the year ended december 31 , 2016 . average interest-bearing deposits for the year ended december 31 , 2017 increased $ 179.8 million from the same period in 2016 and experienced a 12 basis point increase in rates paid . interest expense on borrowings of $ 5.7 million for the year ended december 31 , 2017 increased $ 762 thousand as compared to $ 4.9 million for the year ended december 31 , 2016 . the increase primarily related to increases in interest expense on short-term borrowings and subordinated notes of $ 1.3 million and $ 152 thousand , respectively , partially offset by a decrease in interest expense on long-term fhlb advances of $ 733 thousand . average borrowings for the year ended december 31 , 2017 increased $ 30.8 million from the same period in 2016 and experienced an 8 basis point increase in rates paid . tax-equivalent net interest margin โ quarterly comparison the tax-equivalent net interest margin and related components for the past five quarters are shown in the table below : replace_table_token_7_th interest rate sensitivity management actively manages the corporation 's interest rate sensitivity position . the objectives of interest rate risk management are to control exposure of net interest income changes associated with interest rate movements
| liquidity the corporation has significant sources of liquidity as of december 31 , 2018 . the liquidity position is managed on a daily basis as part of the daily settlement function , and on a monthly basis as part of the asset liability management process . the corporation 's primary liquidity is maintained by managing its deposits , along with the utilization of borrowings from the fhlb , purchased federal funds , and utilization of other wholesale funding sources . secondary sources of liquidity include the sale of certain investment securities and certain loans in the secondary market . other wholesale funding sources include certificates of deposit from brokers , generally available in blocks of $ 1.0 million or more . funds obtained through these programs totaled $ 325.3 million as of december 31 , 2018 . as of december 31 , 2018 , the maximum borrowing capacity with the fhlb was $ 1.53 billion , with an unused borrowing availability of $ 1.25 billion . borrowing availability at the federal reserve discount window was $ 140.4 million , and overnight fed funds lines , consisting of lines from seven banks , totaled $ 79.0 million . on a monthly basis , the alco reviews the corporation 's liquidity needs .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity the corporation has significant sources of liquidity as of december 31 , 2018 . the liquidity position is managed on a daily basis as part of the daily settlement function , and on a monthly basis as part of the asset liability management process . the corporation 's primary liquidity is maintained by managing its deposits , along with the utilization of borrowings from the fhlb , purchased federal funds , and utilization of other wholesale funding sources . secondary sources of liquidity include the sale of certain investment securities and certain loans in the secondary market . other wholesale funding sources include certificates of deposit from brokers , generally available in blocks of $ 1.0 million or more . funds obtained through these programs totaled $ 325.3 million as of december 31 , 2018 . as of december 31 , 2018 , the maximum borrowing capacity with the fhlb was $ 1.53 billion , with an unused borrowing availability of $ 1.25 billion . borrowing availability at the federal reserve discount window was $ 140.4 million , and overnight fed funds lines , consisting of lines from seven banks , totaled $ 79.0 million . on a monthly basis , the alco reviews the corporation 's liquidity needs .
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Suspicious Activity Report : the corporation 's consolidated financial condition and results of operations are comprised primarily of the bank 's financial condition and results of operations . current performance does not guarantee , and may not be indicative of , similar performance in the future . for more information on the factors that could affect performance , see โ special cautionary notice regarding forward looking statements โ immediately following the index at the beginning of this document . the geographic information required by item 101 ( d ) of regulation s-k promulgated under the securities exchange act of 1934 , as amended , is impracticable for the corporation to calculate ; however , the corporation does not believe that a material amount of revenue in any of the last three years was attributable to customers outside of the united states , nor does it believe that a material amount of its long-lived assets , in any of the past three years , was located outside of the united states . 30 critical accounting policies , judgments and estimates the accounting and reporting policies of the corporation and its subsidiaries conform to u.s. generally accepted accounting principles ( โ gaap โ ) . all inter-company transactions are eliminated in consolidation and certain reclassifications are made when necessary in order to conform the previous years ' consolidated financial statements to the current year 's presentation . in preparing the consolidated financial statements , management is required to make estimates and assumptions that affect the reported amount of assets and liabilities as of the dates of the balance sheets and revenues and expenditures for the periods presented . therefore , actual results could differ from these estimates . the allowance for loan and lease losses ( the โ allowance โ ) the allowance involves a higher degree of judgment and complexity than other significant accounting policies . the allowance is estimated with the objective of maintaining a reserve level believed by management to be sufficient to absorb estimated credit losses present in the loan portfolio as of the reporting date . management 's determination of the adequacy of the allowance is based on frequent evaluations of the loan and lease portfolio and other relevant factors . consideration is given to a variety of factors in establishing the estimate . quantitative factors in the form of historical charge-off rates by portfolio segment are considered . in connection with these quantitative factors , management establishes what it deems to be an adequate look-back period ( โ lbp โ ) for the charge-off history . as of december 31 , 2018 , management utilized a five-year lbp , which it believes adequately captures the trends in charge-offs . in addition , management develops an estimate of a loss emergence period ( โ lep โ ) for each segment of the loan portfolio . the lep estimates the time between the occurrence of a loss event for a borrower and an actual charge-off of a loan . as of december 31 , 2018 , management utilized a two-year lep for its commercial loan segments and a one-year lep for its consumer loan segments based on analyses of actual charge-offs tracked back in time to the triggering event for the eventual loss . in addition , various qualitative factors are considered , including specific terms and conditions of loans and leases , underwriting standards , delinquency statistics , industry concentration , overall exposure to a single customer , adequacy of collateral , the dependence on collateral , and results of internal loan review , including a borrower 's perceived financial and management strengths , the amounts and timing of the present value of future cash flows , and the access to additional funds . it should be noted that this evaluation is inherently subjective as it requires material estimates , including , among others , expected default probabilities , the amounts and timing of expected cash flows on impaired loans and leases , the value of collateral , estimated losses on consumer loans and residential mortgages and the relevance of historical loss experience . the process also considers economic conditions and inherent risks in the loan and lease portfolio . all of these factors may be susceptible to significant change . to the extent actual outcomes differ from management 's estimates , additional provision for loan and lease losses ( the โ provision โ ) may be required that would adversely impact earnings in future periods . see the section of this document titled asset quality and analysis of credit risk beginning at page 43 for additional information . fair value measurement of investment securities available-for-sale and assessment for impairment of certain investment securities management may designate its investment securities as held-to-maturity , available-for-sale or trading . each of these designations affords different treatment for changes in the fair market values of investment securities in the corporation 's consolidated financial statements that are otherwise identical . should evidence emerge which indicates that management 's intent or ability to maintain the securities as originally designated is not supported , reclassifications among the three designations may be necessary and , as a result , may require adjustments to the corporation 's consolidated financial statements . as of december 31 , 2018 , the corporation 's investment portfolio was primarily comprised of investment securities classified as available for sale . valuation of goodwill and intangible assets goodwill and intangible assets have been recorded on the books of the corporation in connection with its acquisitions . management completes a goodwill impairment analysis at least on an annual basis , or more often if events and circumstances indicate that there may be impairment . management also reviews other intangible assets with finite lives for impairment if events and circumstances indicate that the carrying value may not be recoverable . there was no goodwill or intangible asset impairment recorded during the years ended december 31 , 2018 , 2017 or 2016 . story_separator_special_tag average loans and leases for the year ended december 31 , 2018 increased $ 691.3 million from the same period in 2017 and experienced a 48 basis point increase in tax-equivalent yield . the increase in average loans and leases was primarily related to the loans and leases acquired in the rbpi merger which initially increased loans and leases by $ 566.2 million , as well as organic loan growth between the periods . tax-equivalent interest income on available for sale investment securities of $ 12.0 million for the year ended december 31 , 2018 increased $ 3.3 million as compared to $ 8.7 million for the year ended december 31 , 2017 . average available for sale investment securities for the year ended december 31 , 2018 increased $ 93.2 million from the same period in 2017 and experienced a 26 basis point increase in tax-equivalent yield . partially offsetting the effect on net interest income associated with the increase in average balances and yields in loans and leases and available for sale investment securities were increases in interest expense on deposits and borrowings . interest expense on interest-bearing deposits of $ 20.6 million for the year ended december 31 , 2018 increased $ 11.9 million as compared to $ 8.7 million for the year ended december 31 , 2017 . average interest-bearing deposits for the year ended december 31 , 2018 increased $ 604.0 million from the same period in 2017 and experienced a 36 basis point increase in rates paid . the increase in average interest-bearing deposits was primarily related to the interest-bearing deposits assumed in the rbpi merger , which initially totaled $ 494.8 million . interest expense on borrowings of $ 11.0 million for the year ended december 31 , 2018 increased $ 5.3 million as compared to $ 5.7 million for the year ended december 31 , 2017 . the increase related to increases in interest expense on subordinated notes , short-term borrowings , and junior subordinated debt of $ 2.9 million , $ 2.0 million , and $ 1.2 million , respectively , partially offset by a decrease in interest expense on long-term fhlb advances of $ 843 thousand . average subordinated notes for the year ended december 31 , 2018 increased $ 65.3 million from the same period in 2017 and experienced a 26 basis point decrease in rates paid . the volume increase in subordinated notes was the result of the december 13 , 2017 issuance of $ 70 million ten-year , 4.25 % fixed-to-floating subordinated notes . average short-term borrowings and junior subordinated notes for the year ended december 31 , 2018 increased $ 50.6 million and $ 20.5 million , respectively , from the same period in 2017 and experienced an 81 and 138 basis point increase , respectively , in rates paid . the volume increase in junior subordinated debt was related to the $ 21.4 million of floating rate junior subordinated debentures assumed in the rbpi merger . tax-equivalent net interest income and margin โ 2017 compared to 2016 tax-equivalent net interest income of $ 115.9 million for the year ended december 31 , 2017 increased $ 9.0 million as compared to $ 106.9 million for the year ended december 31 , 2016 . tax-equivalent net interest margin of 3.69 % for the year ended december 31 , 2017 decreased seven basis points as compared to 3.76 % for the year ended december 31 , 2016 . tax-equivalent interest and fees on loans and leases of $ 121.4 million for the year ended december 31 , 2017 increased $ 10.5 million as compared to $ 110.9 million for the year ended december 31 , 2016 . average loans and leases for the year ended december 31 , 2017 increased $ 235.5 million from the same period in 2016 with yields remaining relatively flat . tax-equivalent interest income on available for sale investment securities of $ 8.7 million for the year ended december 31 , 2017 increased $ 2.2 million as compared to $ 6.5 million for the year ended december 31 , 2016 . average available for sale investment securities for the year ended december 31 , 2017 increased $ 69.5 million from the same period in 2017 and experienced a 22 basis point increase in tax-equivalent yield . partially offsetting the effect on net interest income associated with the increase in average balances and yields in loans and leases and available for sale investment securities were increases in interest expense on deposits and borrowings . 37 interest expense on interest-bearing deposits of $ 8.7 million for the year ended december 31 , 2017 increased $ 2.9 million as compared to $ 5.8 million for the year ended december 31 , 2016 . average interest-bearing deposits for the year ended december 31 , 2017 increased $ 179.8 million from the same period in 2016 and experienced a 12 basis point increase in rates paid . interest expense on borrowings of $ 5.7 million for the year ended december 31 , 2017 increased $ 762 thousand as compared to $ 4.9 million for the year ended december 31 , 2016 . the increase primarily related to increases in interest expense on short-term borrowings and subordinated notes of $ 1.3 million and $ 152 thousand , respectively , partially offset by a decrease in interest expense on long-term fhlb advances of $ 733 thousand . average borrowings for the year ended december 31 , 2017 increased $ 30.8 million from the same period in 2016 and experienced an 8 basis point increase in rates paid . tax-equivalent net interest margin โ quarterly comparison the tax-equivalent net interest margin and related components for the past five quarters are shown in the table below : replace_table_token_7_th interest rate sensitivity management actively manages the corporation 's interest rate sensitivity position . the objectives of interest rate risk management are to control exposure of net interest income changes associated with interest rate movements
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2,310 | a condensed review of operations for the fourth quarter of 2013 is included in the section titled `` fourth quarter 2013 vs. fourth quarter 2012 `` of this item 7. the summary provides an analysis of the quarterly earnings performance for the fourth quarter of 2013 compared to the same period in 2012. unless otherwise stated , all earnings per common share data included in this section and throughout the remainder of this discussion are presented on a fully diluted basis . 37 cautionary statement regarding forward-looking statements this report , as well as our other filings with the sec or our communications with stockholders , may contain forward-looking statements within the safe harbor provisions of the private securities litigation reform act of 1995 ( `` pslra `` ) . these statements involve known and unknown risks , uncertainties , and other factors that may cause actual results to be materially different from any results , levels of activity , performance , or achievements expressed or implied by any forward-looking statement . these factors include , among other things , the factors listed below . in some cases , we identified forward-looking statements by such words or phrases as `` will likely result , `` `` is confident that , `` `` remains optimistic about , `` `` expects , `` `` should , `` `` could , `` `` seeks , `` `` may , `` `` will continue to , `` `` believes , `` `` anticipates , `` `` predicts , `` `` forecasts , `` `` estimates , `` `` projects , `` `` potential , `` `` intends , `` or similar expressions identifying forward-looking statements within the meaning of the pslra , including the negative of those words and phrases . these forward-looking statements are not historical facts , but instead are based on management 's current views and assumptions regarding future events , future business conditions , outcomes , and our outlook for the company based on currently available information . we wish to caution readers not to place undue reliance on any such forward-looking statements as we do not undertake any obligation to update them to reflect circumstances or events that occur after the date on which the forward-looking statement is made . in connection with the safe harbor provisions of the pslra , we are hereby identifying important factors that could affect our financial performance and could cause our actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any forward-looking statements . among the factors that could have an impact on our ability to achieve operating results , growth plan goals , and the beliefs expressed or implied in forward-looking statements are : management 's ability to reduce and effectively manage interest rate risk and the impact of interest rates in general on the volatility of our net interest income . asset and liability matching risks and liquidity risks . fluctuations in the value of our investment securities . the ability to attract and retain senior management experienced in banking and financial services . the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in the existing loan portfolio . the models and assumptions underlying the establishment of the allowance for credit losses and estimation of values of collateral and various financial assets and liabilities may be inadequate . credit risks and risks from concentrations ( by geographic area and by industry ) within our loan portfolio . the effects of competition from other commercial banks , thrifts , mortgage banking firms , consumer finance companies , credit unions , securities brokerage firms , insurance companies , money market and other mutual funds , and other financial institutions operating in our markets or elsewhere providing similar services . changes in the economic environment , competition , or other factors that may influence the anticipated growth rate of loans and deposits , the quality of the loan portfolio , and loan and deposit pricing . changes in general economic or industry conditions , nationally or in the communities in which we conduct business . volatility of rate sensitive deposits . our ability to adapt successfully to technological changes to compete effectively in the marketplace . operational risks , including data processing system failures , fraud , or breaches . our ability to successfully pursue acquisition and expansion strategies and integrate any acquired companies . the impact of liabilities arising from legal or administrative proceedings , enforcement of bank regulations , and enactment or application of laws or regulations . governmental monetary and fiscal policies and legislative and regulatory changes ( including those implementing provisions of the dodd frank act ) that may result in the imposition of costs and constraints through higher fdic insurance premiums , significant fluctuations in market interest rates , increases in capital or liquidity requirements , operational limitations , or compliance costs . changes in federal and state tax laws or interpretations , including changes affecting tax rates , income not subject to tax under existing law and interpretations , income sourcing , or consolidation/combination rules . 38 changes in accounting principles , policies , or guidelines affecting the businesses we conduct . acts of war or terrorism . other economic , competitive , governmental , regulatory , and technological factors affecting our operations , products , services , and prices . the foregoing list of important factors may not be all-inclusive , and we specifically decline to undertake any obligation to publicly revise any forward-looking statements that were made to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events . story_separator_special_tag the lower yields on interest-earning assets were partially offset by a decline in the rates paid for interest-bearing liabilities , including a 2 basis point decline on interest-bearing transactional deposits , a 28 basis point decline on time deposits , and a 3 basis point decline on senior and subordinated debt . 2012 compared to 2011 average interest-earning assets were $ 7.2 billion for 2012 , a decrease of $ 78.0 million from 2011 , driven substantially by a decline in other interest-earning assets , which was partially offset by an increase in securities . average interest-earning liabilities were $ 5.3 billion for 2012 , a decrease of $ 165.3 million from 2011 due primarily to a decline in time deposits . the growth in senior and subordinated debt for 2012 compared to 2011 is attributed to the issuance of $ 115.0 million of senior debt during the fourth quarter of 2011 , which was used to redeem the preferred stock issued to the treasury in combination with excess cash . interest paid on the senior debt reduced our net interest margin by 10 basis points . this increase was offset , in part , by the repurchase and retirement of $ 25.4 million of junior subordinated debentures and $ 12.0 million of subordinated notes during 2012. tax-equivalent net interest income was $ 278.9 million for 2012 compared to $ 295.4 million for 2011. the $ 21.5 million reduction in interest income was due primarily to a decrease in the yield on investment securities and loans . interest expense declined $ 5.0 million due to the continued reduction of higher-costing time deposits and borrowed funds . tax-equivalent net interest margin declined 18 basis points to 3.86 % for 2012 from 4.04 % for 2011. the reduction in margin reflected a 25 basis point decrease in the average yield on interest-earning assets driven primarily by a lower yield earned on new and renewing loans and the reinvestment of cash flows from the investment portfolio into lower yielding securities due to the low interest rate environment . these lower yields were partially offset by a decline in the rates paid for interest-bearing liabilities , including a 6 basis point decline on interest-bearing transactional deposits , a 27 basis point decline on time deposits , and a 16 basis point decline on senior and subordinated debt . 46 table 3 changes in net interest income applicable to volumes and interest rates ( 1 ) ( dollar amounts in thousands ) replace_table_token_10_th ( 1 ) for purposes of this table , changes which are not due solely to volume changes or rate changes are allocated to each category on the basis of the percentage relationship of each to the sum of the two . ( 2 ) interest income is presented on a tax-equivalent basis , assuming a federal income tax rate of 35 % . ( 3 ) this item includes covered interest-earning assets consisting of loans acquired through the company 's fdic-assisted transactions with loss share agreements and the related fdic indemnification asset . for additional discussion , please refer to note 5 of `` notes to the consolidated financial statements `` in item 8 of this form 10-k. 47 noninterest income a summary of noninterest income for the three years ended december 31 , 2013 is presented in the following table . table 4 noninterest income analysis ( dollar amounts in thousands ) replace_table_token_11_th n/m ย not meaningful . ( 1 ) card-based fees consist of debit and credit card interchange fees for pro cessing transactions , as well as various fees on both customer and non-customer automated teller machine ( `` atm `` ) and point-of-sale transactions processed through the atm and point-of-sale networks . ( 2 ) for a discussion of these items , see the section titled `` investment portfolio management `` of this item 7 . ( 3 ) net trading gains ( losses ) result from changes in the fair value of diversified investment securities held in a grantor trust under deferred compensation arrangements and are substantially offset by nonqualified plan expense for each period presented . ( 4 ) other income consists of various items , including safe deposit box rentals , miscellaneous recoveries , and gains on the sales of various assets . ( 5 ) for a discussion of the 2012 gain on an fdic-assisted transaction , refer to note 2 of `` notes to the consolidated financial statements `` in item 8 of this form 10-k. ( 6 ) these items are included in other income in the consolidated statements of income . 2013 compared to 2012 total noninterest income of $ 140.9 million for 2013 rose 28.1 % compared to 2012 driven primarily by the $ 34.0 million gain on the sale of our investment in textura . in addition , the $ 7.8 million gain on the termination of two fhlb forward commitments contributed to the positive variance . these gains were partially offset by the 48 modification of approximately $ 100 million of certain lower-yielding boli policies , which resulted in a $ 13.3 million write-down of the csv . fee-based revenues increased 9.2 % from 2012 , resulting from growth in core business activities , specifically wealth management fees , mortgage banking income , and sales of capital market products to commercial clients . the 11.0 % increase in wealth management fees compared to 2012 was driven by new customer relationships and improved market performance . average trust assets under management increased 17.0 % during 2013. the significant rise in mortgage banking income compared to 2012 resulted from recognizing a full year of mortgage sales activity . during 2013 , $ 147.4 million of mortgage loans were sold compared to $ 50.3 million in 2012. compared to 2012 , sales of capital market products to commercial clients drove the rise in other service charges , commissions , and fees . during the fourth quarter of 2013 , we
| senior and subordinated debt average senior and subordinated debt decreased $ 18.4 million , or 7.9 % , in 2013 compared to 2012 as a result of the repurchase and retirement of $ 24.0 million of junior subordinated debentures . refer to note 11 of `` notes to the consolidated financial statements '' in item 8 of this form 10-k for additional discussion regarding this transaction . the $ 81.0 million increase in average senior and subordinated debt from 2011 to 2012 was driven by the senior debt issuance of $ 115.0 million in the fourth quarter of 2011 , which was used , in combination with existing liquid assets , to fund the redemption of the series b preferred stock issued to the treasury . this increase was partially offset by the repurchase and retirement of $ 25.4 million of junior subordinated debentures and $ 12.0 million of subordinated notes during 2012 . 74 contractual obligations , commitments , off-balance sheet risk , and contingent liabilities through our normal course of operations , we enter into certain contractual obligations and other commitments . these obligations generally relate to the funding of operations through deposits or debt issuances , as well as leases for premises and equipment . as a financial services provider , we routinely enter into commitments to extend credit . while contractual obligations represent our future cash requirements , a significant portion of commitments to extend credit may expire without being drawn . these commitments are subject to the same credit policies and approval process used for our loans .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```senior and subordinated debt average senior and subordinated debt decreased $ 18.4 million , or 7.9 % , in 2013 compared to 2012 as a result of the repurchase and retirement of $ 24.0 million of junior subordinated debentures . refer to note 11 of `` notes to the consolidated financial statements '' in item 8 of this form 10-k for additional discussion regarding this transaction . the $ 81.0 million increase in average senior and subordinated debt from 2011 to 2012 was driven by the senior debt issuance of $ 115.0 million in the fourth quarter of 2011 , which was used , in combination with existing liquid assets , to fund the redemption of the series b preferred stock issued to the treasury . this increase was partially offset by the repurchase and retirement of $ 25.4 million of junior subordinated debentures and $ 12.0 million of subordinated notes during 2012 . 74 contractual obligations , commitments , off-balance sheet risk , and contingent liabilities through our normal course of operations , we enter into certain contractual obligations and other commitments . these obligations generally relate to the funding of operations through deposits or debt issuances , as well as leases for premises and equipment . as a financial services provider , we routinely enter into commitments to extend credit . while contractual obligations represent our future cash requirements , a significant portion of commitments to extend credit may expire without being drawn . these commitments are subject to the same credit policies and approval process used for our loans .
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Suspicious Activity Report : a condensed review of operations for the fourth quarter of 2013 is included in the section titled `` fourth quarter 2013 vs. fourth quarter 2012 `` of this item 7. the summary provides an analysis of the quarterly earnings performance for the fourth quarter of 2013 compared to the same period in 2012. unless otherwise stated , all earnings per common share data included in this section and throughout the remainder of this discussion are presented on a fully diluted basis . 37 cautionary statement regarding forward-looking statements this report , as well as our other filings with the sec or our communications with stockholders , may contain forward-looking statements within the safe harbor provisions of the private securities litigation reform act of 1995 ( `` pslra `` ) . these statements involve known and unknown risks , uncertainties , and other factors that may cause actual results to be materially different from any results , levels of activity , performance , or achievements expressed or implied by any forward-looking statement . these factors include , among other things , the factors listed below . in some cases , we identified forward-looking statements by such words or phrases as `` will likely result , `` `` is confident that , `` `` remains optimistic about , `` `` expects , `` `` should , `` `` could , `` `` seeks , `` `` may , `` `` will continue to , `` `` believes , `` `` anticipates , `` `` predicts , `` `` forecasts , `` `` estimates , `` `` projects , `` `` potential , `` `` intends , `` or similar expressions identifying forward-looking statements within the meaning of the pslra , including the negative of those words and phrases . these forward-looking statements are not historical facts , but instead are based on management 's current views and assumptions regarding future events , future business conditions , outcomes , and our outlook for the company based on currently available information . we wish to caution readers not to place undue reliance on any such forward-looking statements as we do not undertake any obligation to update them to reflect circumstances or events that occur after the date on which the forward-looking statement is made . in connection with the safe harbor provisions of the pslra , we are hereby identifying important factors that could affect our financial performance and could cause our actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any forward-looking statements . among the factors that could have an impact on our ability to achieve operating results , growth plan goals , and the beliefs expressed or implied in forward-looking statements are : management 's ability to reduce and effectively manage interest rate risk and the impact of interest rates in general on the volatility of our net interest income . asset and liability matching risks and liquidity risks . fluctuations in the value of our investment securities . the ability to attract and retain senior management experienced in banking and financial services . the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in the existing loan portfolio . the models and assumptions underlying the establishment of the allowance for credit losses and estimation of values of collateral and various financial assets and liabilities may be inadequate . credit risks and risks from concentrations ( by geographic area and by industry ) within our loan portfolio . the effects of competition from other commercial banks , thrifts , mortgage banking firms , consumer finance companies , credit unions , securities brokerage firms , insurance companies , money market and other mutual funds , and other financial institutions operating in our markets or elsewhere providing similar services . changes in the economic environment , competition , or other factors that may influence the anticipated growth rate of loans and deposits , the quality of the loan portfolio , and loan and deposit pricing . changes in general economic or industry conditions , nationally or in the communities in which we conduct business . volatility of rate sensitive deposits . our ability to adapt successfully to technological changes to compete effectively in the marketplace . operational risks , including data processing system failures , fraud , or breaches . our ability to successfully pursue acquisition and expansion strategies and integrate any acquired companies . the impact of liabilities arising from legal or administrative proceedings , enforcement of bank regulations , and enactment or application of laws or regulations . governmental monetary and fiscal policies and legislative and regulatory changes ( including those implementing provisions of the dodd frank act ) that may result in the imposition of costs and constraints through higher fdic insurance premiums , significant fluctuations in market interest rates , increases in capital or liquidity requirements , operational limitations , or compliance costs . changes in federal and state tax laws or interpretations , including changes affecting tax rates , income not subject to tax under existing law and interpretations , income sourcing , or consolidation/combination rules . 38 changes in accounting principles , policies , or guidelines affecting the businesses we conduct . acts of war or terrorism . other economic , competitive , governmental , regulatory , and technological factors affecting our operations , products , services , and prices . the foregoing list of important factors may not be all-inclusive , and we specifically decline to undertake any obligation to publicly revise any forward-looking statements that were made to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events . story_separator_special_tag the lower yields on interest-earning assets were partially offset by a decline in the rates paid for interest-bearing liabilities , including a 2 basis point decline on interest-bearing transactional deposits , a 28 basis point decline on time deposits , and a 3 basis point decline on senior and subordinated debt . 2012 compared to 2011 average interest-earning assets were $ 7.2 billion for 2012 , a decrease of $ 78.0 million from 2011 , driven substantially by a decline in other interest-earning assets , which was partially offset by an increase in securities . average interest-earning liabilities were $ 5.3 billion for 2012 , a decrease of $ 165.3 million from 2011 due primarily to a decline in time deposits . the growth in senior and subordinated debt for 2012 compared to 2011 is attributed to the issuance of $ 115.0 million of senior debt during the fourth quarter of 2011 , which was used to redeem the preferred stock issued to the treasury in combination with excess cash . interest paid on the senior debt reduced our net interest margin by 10 basis points . this increase was offset , in part , by the repurchase and retirement of $ 25.4 million of junior subordinated debentures and $ 12.0 million of subordinated notes during 2012. tax-equivalent net interest income was $ 278.9 million for 2012 compared to $ 295.4 million for 2011. the $ 21.5 million reduction in interest income was due primarily to a decrease in the yield on investment securities and loans . interest expense declined $ 5.0 million due to the continued reduction of higher-costing time deposits and borrowed funds . tax-equivalent net interest margin declined 18 basis points to 3.86 % for 2012 from 4.04 % for 2011. the reduction in margin reflected a 25 basis point decrease in the average yield on interest-earning assets driven primarily by a lower yield earned on new and renewing loans and the reinvestment of cash flows from the investment portfolio into lower yielding securities due to the low interest rate environment . these lower yields were partially offset by a decline in the rates paid for interest-bearing liabilities , including a 6 basis point decline on interest-bearing transactional deposits , a 27 basis point decline on time deposits , and a 16 basis point decline on senior and subordinated debt . 46 table 3 changes in net interest income applicable to volumes and interest rates ( 1 ) ( dollar amounts in thousands ) replace_table_token_10_th ( 1 ) for purposes of this table , changes which are not due solely to volume changes or rate changes are allocated to each category on the basis of the percentage relationship of each to the sum of the two . ( 2 ) interest income is presented on a tax-equivalent basis , assuming a federal income tax rate of 35 % . ( 3 ) this item includes covered interest-earning assets consisting of loans acquired through the company 's fdic-assisted transactions with loss share agreements and the related fdic indemnification asset . for additional discussion , please refer to note 5 of `` notes to the consolidated financial statements `` in item 8 of this form 10-k. 47 noninterest income a summary of noninterest income for the three years ended december 31 , 2013 is presented in the following table . table 4 noninterest income analysis ( dollar amounts in thousands ) replace_table_token_11_th n/m ย not meaningful . ( 1 ) card-based fees consist of debit and credit card interchange fees for pro cessing transactions , as well as various fees on both customer and non-customer automated teller machine ( `` atm `` ) and point-of-sale transactions processed through the atm and point-of-sale networks . ( 2 ) for a discussion of these items , see the section titled `` investment portfolio management `` of this item 7 . ( 3 ) net trading gains ( losses ) result from changes in the fair value of diversified investment securities held in a grantor trust under deferred compensation arrangements and are substantially offset by nonqualified plan expense for each period presented . ( 4 ) other income consists of various items , including safe deposit box rentals , miscellaneous recoveries , and gains on the sales of various assets . ( 5 ) for a discussion of the 2012 gain on an fdic-assisted transaction , refer to note 2 of `` notes to the consolidated financial statements `` in item 8 of this form 10-k. ( 6 ) these items are included in other income in the consolidated statements of income . 2013 compared to 2012 total noninterest income of $ 140.9 million for 2013 rose 28.1 % compared to 2012 driven primarily by the $ 34.0 million gain on the sale of our investment in textura . in addition , the $ 7.8 million gain on the termination of two fhlb forward commitments contributed to the positive variance . these gains were partially offset by the 48 modification of approximately $ 100 million of certain lower-yielding boli policies , which resulted in a $ 13.3 million write-down of the csv . fee-based revenues increased 9.2 % from 2012 , resulting from growth in core business activities , specifically wealth management fees , mortgage banking income , and sales of capital market products to commercial clients . the 11.0 % increase in wealth management fees compared to 2012 was driven by new customer relationships and improved market performance . average trust assets under management increased 17.0 % during 2013. the significant rise in mortgage banking income compared to 2012 resulted from recognizing a full year of mortgage sales activity . during 2013 , $ 147.4 million of mortgage loans were sold compared to $ 50.3 million in 2012. compared to 2012 , sales of capital market products to commercial clients drove the rise in other service charges , commissions , and fees . during the fourth quarter of 2013 , we
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2,311 | delinquent receivables are written off based on individual credit evaluations and specific circumstances of the customer . inventory reserves the company establishes a reserve for estimated obsolescence or unmarketable inventory in an amount equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and current market conditions . as of december 31 , 2011 , the company has $ 2,699,000 accrued for inventory obsolescence and market reserves . if actual market conditions are less favorable than those estimated by management , additional inventory reserves may be required . environmental reserves as noted in note 5 to the consolidated financial statements included in item 8 of this form 10-k , the company has accrued $ 640,000 as of december 31 , 2011 , in environmental remediation costs which , in management 's best estimate , are sufficient to satisfy anticipated costs of known remediation requirements as outlined in note 5. expenditures related to costs currently accrued are not discounted to their present values and are expected to be made over the next three to four years . however , as a result of the evolving nature of the environmental regulations , the difficulty in estimating the extent and necessary remediation of environmental contamination , and the availability and application of technology , the estimated costs for future environmental compliance and remediation are subject to uncertainties and it is not possible to predict the amount or timing of future costs of environmental matters which may subsequently be determined . changes in information known to management or in applicable regulations may require the company to record additional remediation reserves . impairment of long-lived assets the company continually reviews the recoverability of the carrying value of long-lived assets . long-lived assets are reviewed for impairment when events or changes in circumstances , also referred to as โ triggering events โ , indicate that the carrying value of a long-lived asset or group of assets ( the โ assets โ ) may no longer be recoverable . triggering events include : a significant decline in the market price of the assets ; a significant adverse change in the operating use or physical condition of the assets ; a significant adverse change in legal factors or in the business climate impacting the assets ' value , including regulatory issues such as environmental actions ; the generation by the assets of historical cash flow losses combined with projected future cash flow losses ; or the expectation that the assets will be sold or disposed of significantly before the end of the useful life of the assets . the company concluded that there were no indications of impairment requiring further testing during the year ended december 31 , 2011 . 15 if the company concluded that , based on its review of current facts and circumstances , there were indications of impairment , testing of the applicable assets would be performed . the recoverability of the assets to be held and used is tested by comparing the carrying amount of the assets at the date of the test to the sum of the estimated future undiscounted cash flows expected to be generated by those assets over the remaining useful life of the assets . in estimating the future undiscounted cash flows , the company uses projections of cash flows directly associated with , and which are expected to arise as a direct result of , the use and eventual disposition of the assets . this approach requires significant judgments including the company 's projected net cash flows , which are derived using the most recent available estimate for the reporting unit containing the assets tested . several key assumptions would include periods of operation , projections of product pricing , production levels , product costs , market supply and demand , and inflation . if it is determined that the carrying amount of the assets are not recoverable , an impairment loss would be calculated equal to the excess of the carrying amount of the assets over their fair value . assets classified as held for sale are recorded at the lower of their carrying amount or fair value less cost to sell . assets to be disposed of other than by sale are classified as held and used until the assets are disposed or use has ceased . goodwill the company has goodwill of $ 1,355,000 recorded as part of its 1996 acquisition of manufacturers soap and chemical company , operating within the chemicals segment , and $ 1,000,000 recorded as part of its 2009 acquisition of ram-fab , inc. , operating within the metals segment . goodwill , which represents the excess of purchase price over fair value of net assets acquired , is tested for impairment at least on an annual basis . the initial step of the goodwill impairment test involves a comparison of the fair value of the reporting unit in which the goodwill is recorded , with its carrying amount . if the reporting unit 's fair value exceeds its carrying value , no impairment loss is recognized and the second step , which is a calculation of the impairment , is not performed . however , if the reporting unit 's carrying value exceeds its fair value , an impairment charge equal to the difference in the carrying value of the goodwill and the implied fair value of the goodwill is recorded . implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination . story_separator_special_tag selling , general and administrative expense increased $ 808,000 or 29 percent in 2011 when compared to 2010 , and increased to eight percent of sales in 2011 compared to seven percent in 2010. for the fourth quarter , selling , general and administrative expense was $ 1,433,000 in 2011 , an increase of $ 809,000 when compared to the same period of 2010. the increase in the reserve for potential uncollectable receivables in december , 2011 , as explained in the prior paragraph , resulted in the entire increase . comparison of 2010 to 2009 โ specialty chemicals segment the specialty chemicals segment sales increased 30 percent for the year ended 2010 compared to 2009. gross profit for the year ended 2010 increased 28 percent to $ 6,739,000 , or 16 percent of sales , compared to a gross profit of $ 5,311,000 , or 16 percent of sales , for 2009. operating income increased 46 percent to $ 3,960,000 for the year ended 2010 compared to $ 2,722,000 earned in 2009. sales increased 17 percent to $ 10,066,000 for the fourth quarter of 2010 compared to $ 8,571,000 for the fourth quarter of 2009. gross profit for the fourth quarter of 2010 was $ 1,400,000 or 14 percent of sales , which approximated the fourth quarter of 2009 's total of $ 1,406,000 , or 16 percent of sales . operating income declined one percent to $ 777,000 for the fourth quarter of 2010 compared to $ 783,000 for the fourth quarter of 2009. the sales gain came from increases in the sulfated product line and additives for dust control and agricultural chemicals . contract manufacturing also contributed to the sales growth . the declines in gross profit and operating income for the fourth quarter of 2010 , when compared to the same period in 2009 , were caused primarily by our inability to pass on all of the increases in raw material costs , especially from naturally occurring fats and oils and petroleum derivatives . selling , general and administrative expense increased $ 190,000 or seven percent in 2010 compared to the 2009 amount , and decreased to seven percent of sales in 2010 from eight percent of sales in 2009. the increase resulted primarily from increased selling commissions from the increase in sales in 2010 compared to 2009 plus higher performance based bonuses for the current year . unallocated income and expense reference should be made to note 13 to the consolidated financial statements , included in item 8 of this form 10-k , for the schedule that includes these items . comparison of 2011 to 2010 โ corporate corporate expenses for 2011 were $ 2,668,000 or two percent of sales , compared to $ 1,541,000 or one percent of sales , for 2010. this represents an increase of $ 1,127,000 or 73 percent . the most significant contributor to the increase was higher performance based bonuses for select corporate employees which increased $ 622,000 during 2011 compared to 2010. the company also experienced higher stock option compensation costs and consulting fees , partially offset by lower professional fees . during the second quarter of 2011 , the company relocated its corporate office and the company was no longer able to provide administrative services to the spartanburg manufacturing facility which the company sold in 2009. this resulted in the loss of reimbursement for the costs of providing these functions to the buyer of this facility during 2011 along with higher office rent expense . comparison of 2010 to 2009 โ corporate corporate expense decreased $ 467,000 , or 23 percent , to $ 1,541,000 , or one percent of sales , for 2010 , compared to $ 2,008,000 , or two percent of sales , in 2009. the decrease resulted primarily from a decrease in environmental expenses that were eliminated by the sale of the spartanburg manufacturing facility at the end of the third quarter of 2009. there was no environmental expense during 2010 , compared to $ 343,000 in 2009. the remainder of the decrease resulted from lower performance based bonuses for 2010. higher bonuses were awarded in 2009 due to the ram-fab acquisition and manufacturing facility dispositions ( see note 16 and note 17 ) . interest expense in 2010 decreased $ 165,000 from 2009 as a result of lower outstanding debt balances 21 during 2010 compared to 2009. other expense for the prior year reflects a $ 150,000 medical settlement with a former employee of the company 's augusta , georgia chemical operation which was closed in 2001. no similar charge occurred in the current year . contractual obligations and other commitments as of december 31 , 2011 , the company 's contractual obligations and other commitments were as follows : ( amounts in thousands ) payment obligations for the year ended total 2012 2013 2014 2015 2016 thereafter obligations : revolving credit facility $ 8,650 $ - $ - $ 8,650 $ - $ - $ - interest payments 385 154 154 77 - - - operating leases 645 153 148 146 144 54 - purchase obligations - - - - - - - deferred compensation ( 1 ) 478 72 71 71 21 21 222 total $ 10,158 $ 379 $ 373 $ 8,944 $ 165 $ 75 $ 222 ( 1 ) for a description of the deferred compensation obligation , see note 6 to the consolidated financial statements included in item 8 of this form 10-k. current conditions and outlook the metals segment 's business is highly dependent on its customers ' capital expenditures which have begun to show some improvement . excess capacity in the pipe manufacturing industry continues to present a difficult operating environment . stainless steel surcharges , which affect the cost of raw materials and selling prices declined in may 2011 through january 2012 but have been increasing for february and march of 2012. these recent increases should generate customer interest to purchase inventory in
| liquidity and capital resources cash flows used in operating activities during 2011 and 2010 totaled $ 3,858,000 and $ 6,048,000 , an improvement in cash flows of $ 2,190,000. cash flows in 2011 were generated from net income totaling 16 $ 8,456,000 before depreciation and amortization expense of $ 2,659,000. cash flows were adversely affected by an $ 8,710,000 increase in inventories in 2011 , as year-end balances increased , net of reserves , from $ 34,353,000 at the end of 2010 to $ 43,063,000 at the end of 2011. substantially all of the increase occurred in the metals segment to support higher 2012 sales projections , a sales mix shift to higher cost special alloy products along with the company deciding to begin stocking select special alloy finished goods products to be responsive to projected customer demands . accounts receivable increased by $ 6,609,000 in 2011 , net of reserves , as a result of the higher metals segment sales activity during the fourth quarter of 2011 compared to the same period of 2010 , combined with an increased number of days sales outstanding for fabrication sales . higher priced special alloy inventory purchases made during the fourth quarter of 2011 increased the accounts payable balance at the end of 2011 by $ 2,369,000 when compared to the 2010 year-end balance .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources cash flows used in operating activities during 2011 and 2010 totaled $ 3,858,000 and $ 6,048,000 , an improvement in cash flows of $ 2,190,000. cash flows in 2011 were generated from net income totaling 16 $ 8,456,000 before depreciation and amortization expense of $ 2,659,000. cash flows were adversely affected by an $ 8,710,000 increase in inventories in 2011 , as year-end balances increased , net of reserves , from $ 34,353,000 at the end of 2010 to $ 43,063,000 at the end of 2011. substantially all of the increase occurred in the metals segment to support higher 2012 sales projections , a sales mix shift to higher cost special alloy products along with the company deciding to begin stocking select special alloy finished goods products to be responsive to projected customer demands . accounts receivable increased by $ 6,609,000 in 2011 , net of reserves , as a result of the higher metals segment sales activity during the fourth quarter of 2011 compared to the same period of 2010 , combined with an increased number of days sales outstanding for fabrication sales . higher priced special alloy inventory purchases made during the fourth quarter of 2011 increased the accounts payable balance at the end of 2011 by $ 2,369,000 when compared to the 2010 year-end balance .
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Suspicious Activity Report : delinquent receivables are written off based on individual credit evaluations and specific circumstances of the customer . inventory reserves the company establishes a reserve for estimated obsolescence or unmarketable inventory in an amount equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and current market conditions . as of december 31 , 2011 , the company has $ 2,699,000 accrued for inventory obsolescence and market reserves . if actual market conditions are less favorable than those estimated by management , additional inventory reserves may be required . environmental reserves as noted in note 5 to the consolidated financial statements included in item 8 of this form 10-k , the company has accrued $ 640,000 as of december 31 , 2011 , in environmental remediation costs which , in management 's best estimate , are sufficient to satisfy anticipated costs of known remediation requirements as outlined in note 5. expenditures related to costs currently accrued are not discounted to their present values and are expected to be made over the next three to four years . however , as a result of the evolving nature of the environmental regulations , the difficulty in estimating the extent and necessary remediation of environmental contamination , and the availability and application of technology , the estimated costs for future environmental compliance and remediation are subject to uncertainties and it is not possible to predict the amount or timing of future costs of environmental matters which may subsequently be determined . changes in information known to management or in applicable regulations may require the company to record additional remediation reserves . impairment of long-lived assets the company continually reviews the recoverability of the carrying value of long-lived assets . long-lived assets are reviewed for impairment when events or changes in circumstances , also referred to as โ triggering events โ , indicate that the carrying value of a long-lived asset or group of assets ( the โ assets โ ) may no longer be recoverable . triggering events include : a significant decline in the market price of the assets ; a significant adverse change in the operating use or physical condition of the assets ; a significant adverse change in legal factors or in the business climate impacting the assets ' value , including regulatory issues such as environmental actions ; the generation by the assets of historical cash flow losses combined with projected future cash flow losses ; or the expectation that the assets will be sold or disposed of significantly before the end of the useful life of the assets . the company concluded that there were no indications of impairment requiring further testing during the year ended december 31 , 2011 . 15 if the company concluded that , based on its review of current facts and circumstances , there were indications of impairment , testing of the applicable assets would be performed . the recoverability of the assets to be held and used is tested by comparing the carrying amount of the assets at the date of the test to the sum of the estimated future undiscounted cash flows expected to be generated by those assets over the remaining useful life of the assets . in estimating the future undiscounted cash flows , the company uses projections of cash flows directly associated with , and which are expected to arise as a direct result of , the use and eventual disposition of the assets . this approach requires significant judgments including the company 's projected net cash flows , which are derived using the most recent available estimate for the reporting unit containing the assets tested . several key assumptions would include periods of operation , projections of product pricing , production levels , product costs , market supply and demand , and inflation . if it is determined that the carrying amount of the assets are not recoverable , an impairment loss would be calculated equal to the excess of the carrying amount of the assets over their fair value . assets classified as held for sale are recorded at the lower of their carrying amount or fair value less cost to sell . assets to be disposed of other than by sale are classified as held and used until the assets are disposed or use has ceased . goodwill the company has goodwill of $ 1,355,000 recorded as part of its 1996 acquisition of manufacturers soap and chemical company , operating within the chemicals segment , and $ 1,000,000 recorded as part of its 2009 acquisition of ram-fab , inc. , operating within the metals segment . goodwill , which represents the excess of purchase price over fair value of net assets acquired , is tested for impairment at least on an annual basis . the initial step of the goodwill impairment test involves a comparison of the fair value of the reporting unit in which the goodwill is recorded , with its carrying amount . if the reporting unit 's fair value exceeds its carrying value , no impairment loss is recognized and the second step , which is a calculation of the impairment , is not performed . however , if the reporting unit 's carrying value exceeds its fair value , an impairment charge equal to the difference in the carrying value of the goodwill and the implied fair value of the goodwill is recorded . implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination . story_separator_special_tag selling , general and administrative expense increased $ 808,000 or 29 percent in 2011 when compared to 2010 , and increased to eight percent of sales in 2011 compared to seven percent in 2010. for the fourth quarter , selling , general and administrative expense was $ 1,433,000 in 2011 , an increase of $ 809,000 when compared to the same period of 2010. the increase in the reserve for potential uncollectable receivables in december , 2011 , as explained in the prior paragraph , resulted in the entire increase . comparison of 2010 to 2009 โ specialty chemicals segment the specialty chemicals segment sales increased 30 percent for the year ended 2010 compared to 2009. gross profit for the year ended 2010 increased 28 percent to $ 6,739,000 , or 16 percent of sales , compared to a gross profit of $ 5,311,000 , or 16 percent of sales , for 2009. operating income increased 46 percent to $ 3,960,000 for the year ended 2010 compared to $ 2,722,000 earned in 2009. sales increased 17 percent to $ 10,066,000 for the fourth quarter of 2010 compared to $ 8,571,000 for the fourth quarter of 2009. gross profit for the fourth quarter of 2010 was $ 1,400,000 or 14 percent of sales , which approximated the fourth quarter of 2009 's total of $ 1,406,000 , or 16 percent of sales . operating income declined one percent to $ 777,000 for the fourth quarter of 2010 compared to $ 783,000 for the fourth quarter of 2009. the sales gain came from increases in the sulfated product line and additives for dust control and agricultural chemicals . contract manufacturing also contributed to the sales growth . the declines in gross profit and operating income for the fourth quarter of 2010 , when compared to the same period in 2009 , were caused primarily by our inability to pass on all of the increases in raw material costs , especially from naturally occurring fats and oils and petroleum derivatives . selling , general and administrative expense increased $ 190,000 or seven percent in 2010 compared to the 2009 amount , and decreased to seven percent of sales in 2010 from eight percent of sales in 2009. the increase resulted primarily from increased selling commissions from the increase in sales in 2010 compared to 2009 plus higher performance based bonuses for the current year . unallocated income and expense reference should be made to note 13 to the consolidated financial statements , included in item 8 of this form 10-k , for the schedule that includes these items . comparison of 2011 to 2010 โ corporate corporate expenses for 2011 were $ 2,668,000 or two percent of sales , compared to $ 1,541,000 or one percent of sales , for 2010. this represents an increase of $ 1,127,000 or 73 percent . the most significant contributor to the increase was higher performance based bonuses for select corporate employees which increased $ 622,000 during 2011 compared to 2010. the company also experienced higher stock option compensation costs and consulting fees , partially offset by lower professional fees . during the second quarter of 2011 , the company relocated its corporate office and the company was no longer able to provide administrative services to the spartanburg manufacturing facility which the company sold in 2009. this resulted in the loss of reimbursement for the costs of providing these functions to the buyer of this facility during 2011 along with higher office rent expense . comparison of 2010 to 2009 โ corporate corporate expense decreased $ 467,000 , or 23 percent , to $ 1,541,000 , or one percent of sales , for 2010 , compared to $ 2,008,000 , or two percent of sales , in 2009. the decrease resulted primarily from a decrease in environmental expenses that were eliminated by the sale of the spartanburg manufacturing facility at the end of the third quarter of 2009. there was no environmental expense during 2010 , compared to $ 343,000 in 2009. the remainder of the decrease resulted from lower performance based bonuses for 2010. higher bonuses were awarded in 2009 due to the ram-fab acquisition and manufacturing facility dispositions ( see note 16 and note 17 ) . interest expense in 2010 decreased $ 165,000 from 2009 as a result of lower outstanding debt balances 21 during 2010 compared to 2009. other expense for the prior year reflects a $ 150,000 medical settlement with a former employee of the company 's augusta , georgia chemical operation which was closed in 2001. no similar charge occurred in the current year . contractual obligations and other commitments as of december 31 , 2011 , the company 's contractual obligations and other commitments were as follows : ( amounts in thousands ) payment obligations for the year ended total 2012 2013 2014 2015 2016 thereafter obligations : revolving credit facility $ 8,650 $ - $ - $ 8,650 $ - $ - $ - interest payments 385 154 154 77 - - - operating leases 645 153 148 146 144 54 - purchase obligations - - - - - - - deferred compensation ( 1 ) 478 72 71 71 21 21 222 total $ 10,158 $ 379 $ 373 $ 8,944 $ 165 $ 75 $ 222 ( 1 ) for a description of the deferred compensation obligation , see note 6 to the consolidated financial statements included in item 8 of this form 10-k. current conditions and outlook the metals segment 's business is highly dependent on its customers ' capital expenditures which have begun to show some improvement . excess capacity in the pipe manufacturing industry continues to present a difficult operating environment . stainless steel surcharges , which affect the cost of raw materials and selling prices declined in may 2011 through january 2012 but have been increasing for february and march of 2012. these recent increases should generate customer interest to purchase inventory in
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2,312 | echostar 's product demand forecast with the company extended through august 2016 , and the products covered by this forecast were substantially all shipped prior to august 31 , 2016. in light of the fact that echostar accounted for essentially all of the revenues of the satellite segment , the company 's satellite business was shut down effective august 31 , 2016. critical accounting policies the company 's discussion and analysis of its financial condition and results of operations are based upon the company 's consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting periods . areas where significant judgments are made include , but are not limited to , the allowance for doubtful accounts , inventory valuation , product warranties , the deferred tax assets valuation allowance , and the valuation of long-lived assets . actual results could differ materially and adversely from these estimates . business combinations the company applies the provisions of asc 805 , business combinations , in the accounting for its acquisitions , which requires recognition of the assets acquired and the liabilities assumed at their acquisition date fair values , separately from goodwill . goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the tangible and identifiable intangible assets acquired and liabilities assumed . while the company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration , where applicable , its estimates are inherently uncertain and subject to refinement . as a result , during the measurement period that exists up to 12 months from the acquisition date , the company may record adjustments to the fair values of tangible and specifically identifiable intangible assets acquired and liabilities assumed with a corresponding adjustment to goodwill . upon the conclusion of the measurement period or final determination of the values of assets acquired and liabilities assumed , whichever comes first , the impact of any subsequent adjustments to the fair values of assets acquired and liabilities assumed is included in the consolidated statements of operations . allowance for doubtful accounts the company establishes an allowance for estimated bad debts based upon a review and evaluation of specific customer accounts identified as known and expected collection problems , based on historical experience , or due to insolvency or other collection issues . if there is a deterioration of a major customer 's financial condition , if the company becomes aware of additional information related to the credit-worthiness of a major customer , or if future actual default rates on trade receivables in general differ from those currently anticipated , the company may have to adjust its allowance for doubtful accounts , which would affect earnings in the period the adjustments were made . 22 inventories the company evaluates the carrying value of inventory on a quarterly basis to determine if the carrying value is recoverable at estimated selling prices . to the extent that estimated selling prices do not exceed the associated carrying values , inventory carrying amounts are written down . in addition , the company generally treats inventory on hand or committed with suppliers , that is not expected to be sold within the next 12 months , as excess and thus appropriate write-downs of the inventory carrying amounts are established through a charge to cost of revenues . estimated usage in the next 12 months is based on firm demand represented by orders in backlog at the end of the quarter and management 's estimate of sales beyond existing backlog , giving consideration to customers ' forecasted demand , ordering patterns and product life cycles . significant reductions in product pricing or changes in technology and or demand may necessitate additional write-downs of inventory carrying value in the future . warranty the company initially provides for the estimated cost of product warranties at the time revenue is recognized . while it engages in extensive product quality programs and processes , the company 's warranty obligation is affected by product failure rates and material usage and service delivery costs incurred in correcting a product failure . should actual product failure rates , material usage or service delivery costs differ from management 's estimates , revisions to the estimated warranty liability would be required . deferred income tax and uncertain tax positions deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and for income tax purposes . a deferred income tax asset is recognized if realization of such asset is more likely than not , based upon the weight of available evidence that includes historical operating performance and the company 's forecast of future operating performance . the company evaluates the realizability of its deferred income tax assets and a valuation allowance is provided , as necessary . during this evaluation , the company reviews its forecasts of income in conjunction with the positive and negative evidence surrounding the realizability of its deferred income tax assets to determine if a valuation allowance is needed . the company follows asc topic 740 , ยincome taxesย framework for determining the appropriate level of tax reserves to maintain for ยuncertain tax positionsย . asc topic 740 uses a two-step approach in which a tax benefit is recognized if a position is more likely than not to be sustained . story_separator_special_tag operating expenses consolidated research and development ( ยr & dย ) expense increased to $ 22.0 million in fiscal 2017 from $ 19.8 million last year due primarily to lojack r & d expense . consolidated selling expenses increased by $ 25.7 million to $ 49.0 million in fiscal 2017 from $ 23.4 million in fiscal 2016 due primarily to the lojack acquisition , which accounted for $ 23.8 million of the increase . the remaining increase was due to higher payroll expense as a result of additional sales and marketing personnel and stock compensation expenses . consolidated general and administrative expenses ( ยg & aย ) increased by $ 32.0 million to $ 57.1 million in fiscal 2017 compared to $ 25.1 million in fiscal 2016 due primarily to the g & a expenses of lojack , which accounted for $ 20.7 million of the increase . also , transaction and integration expenses for the lojack acquisition were $ 4.5 million and $ 2.0 million in fiscal years 2017 and 2016 , respectively . the remaining increase in g & a expenses for fiscal 2017 was due to higher legal expenses related to two patent infringement lawsuits and a litigation provision of $ 7.2 million recorded in fiscal 2017 related to the omega patents llc patent infringement case . in fiscal 2016 , a litigation provision of $ 2.9 million was recorded for this lawsuit . higher stock compensation expenses in fiscal 2017 also contributed to the increase in g & a expenses . amortization of intangibles increased from $ 6.6 million in fiscal 2016 to $ 15.1 million in fiscal 2017 due to the amortization of new intangibles associated with the acquisition of lojack in the fiscal 2017 first quarter . 26 non-operating expense , net investment income was $ 1.7 million in fiscal 2017 compared to investment income of $ 1.9 million last year . in fiscal 2017 , there was investment income on cash equivalents and marketable securities of $ 0.6 million , investment income of $ 0.9 million on deferred compensation plan rabbi trust assets and other investment income of $ 0.2 million . in fiscal 2016 , there was investment income on cash equivalents and marketable securities of $ 0.8 million and a gain of $ 1.4 million on 850,100 shares of lojack common stock purchased in the open market in november and december 2015. offsetting the fiscal 2016 income from these investments was a loss on deferred compensation plan rabbi trust assets of $ 0.4 million . the company is informally funding its deferred compensation plan obligations by making cash deposits to a rabbi trust that are invested in various equity , bond and money market mutual funds in generally the same proportion as investment elections made by the participants for their compensation deferrals . interest expense increased to $ 9.9 million in fiscal 2017 compared to $ 7.6 million last year due to a full year of interest expense in fiscal 2017 on the convertible notes issued in may 2015 versus 9.5 months of interest expense in fiscal 2016. income tax provision the company had an income tax benefit of $ 1.6 million and an effective tax rate of 19.1 % in fiscal 2017. the income tax benefit was impacted by the geographic mix of earnings ( losses ) as a result of the acquisition of lojack in fiscal 2017 and a $ 1.4 million increase in the deferred tax assets valuation allowance as a result of the company 's assessment of the future realizability of its deferred tax assets . in fiscal 2016 , the company recorded an income tax provision of $ 4.6 million and an effective tax rate of 20.5 % . the effective tax rate was lower than the u.s. statutory rate due primarily to a $ 2.5 million reduction in the deferred tax assets valuation allowance as a result of the company 's assessment of the future realizability of its deferred tax assets . fiscal year 2016 compared to fiscal year 2015 revenue wireless datacom revenue increased by $ 28.3 million , or 13 % , to $ 241.4 million in fiscal 2016 compared to $ 213.1 million in fiscal 2015. these increases were due primarily to increased sales of mrm products into the fleet management and non-vehicle asset tracking markets , as well as the revenue generated from a major original equipment manufacturer in the heavy equipment industry . satellite revenue increased by $ 1.8 million , or 5 % , to $ 39.3 million in fiscal 2016 compared to $ 37.5 million in fiscal 2015 due primarily to the introduction of a new product that we began shipping in the second half of fiscal 2015. gross profit and gross margins wireless datacom gross profit increased by $ 14.1 million to $ 92.0 million in fiscal 2016 from $ 77.9 million in fiscal 2015 due to higher revenue , as described above . wireless datacom gross margin increased to 38.1 % in fiscal 2016 from 36.6 % in the prior year due to revenue mix changes and increased absorption of fixed manufacturing costs on higher revenue . satellite gross profit increased by $ 1.5 million to $ 11.0 million in fiscal 2016 compared to $ 9.5 million in fiscal 2015. satellite 's gross margin increased to 27.9 % in fiscal 2016 from 25.4 % in the prior year which was attributable to changes in product mix due to the new product introduced in the second half of fiscal 2015. operating expenses consolidated r & d expense decreased slightly to $ 19.8 million in fiscal 2016 from $ 19.9 million in the prior year due primarily to staff reductions from ongoing operational integration . consolidated selling expenses increased by $ 3.0 million to $ 23.4 million in fiscal 2016 from $ 20.4 million in fiscal 2015 due primarily to higher marketing-related expenses and stock compensation expenses . 27 consolidated g & a increased by $ 9.5 million
| liquidity and capital resources in june 2016 , the company 's board of directors authorized a $ 25 million stock repurchase program , under which the company repurchased 1.8 million of its outstanding common stock shares during the period from june 2016 to january 2017 at an average cost of $ 14.20 per share . the company financed the purchases with existing cash balances , and all of the stock repurchases were paid for as of february 28 , 2017. all common stock shares repurchased were retired prior to february 28 , 2017. as described in note 2 to the accompanying consolidated financial statements , in march 2016 the company acquired lojack , which was funded from the company 's cash on hand . the total purchase price was $ 131.7 million , which included the $ 5.5 million fair value of 850,100 shares of lojack common stock that were purchased by calamp in the open market in november and december 2015 , prior to entering into a definitive acquisition agreement with lojack . in may 2015 , the company issued $ 172.5 million aggregate principal amount of 1.625 % convertible senior unsecured notes due may 15 , 2020. the company has used some of the net proceeds from the offering of the convertible notes for general corporate purposes including the lojack acquisition and repurchases of the company 's common stock .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources in june 2016 , the company 's board of directors authorized a $ 25 million stock repurchase program , under which the company repurchased 1.8 million of its outstanding common stock shares during the period from june 2016 to january 2017 at an average cost of $ 14.20 per share . the company financed the purchases with existing cash balances , and all of the stock repurchases were paid for as of february 28 , 2017. all common stock shares repurchased were retired prior to february 28 , 2017. as described in note 2 to the accompanying consolidated financial statements , in march 2016 the company acquired lojack , which was funded from the company 's cash on hand . the total purchase price was $ 131.7 million , which included the $ 5.5 million fair value of 850,100 shares of lojack common stock that were purchased by calamp in the open market in november and december 2015 , prior to entering into a definitive acquisition agreement with lojack . in may 2015 , the company issued $ 172.5 million aggregate principal amount of 1.625 % convertible senior unsecured notes due may 15 , 2020. the company has used some of the net proceeds from the offering of the convertible notes for general corporate purposes including the lojack acquisition and repurchases of the company 's common stock .
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Suspicious Activity Report : echostar 's product demand forecast with the company extended through august 2016 , and the products covered by this forecast were substantially all shipped prior to august 31 , 2016. in light of the fact that echostar accounted for essentially all of the revenues of the satellite segment , the company 's satellite business was shut down effective august 31 , 2016. critical accounting policies the company 's discussion and analysis of its financial condition and results of operations are based upon the company 's consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting periods . areas where significant judgments are made include , but are not limited to , the allowance for doubtful accounts , inventory valuation , product warranties , the deferred tax assets valuation allowance , and the valuation of long-lived assets . actual results could differ materially and adversely from these estimates . business combinations the company applies the provisions of asc 805 , business combinations , in the accounting for its acquisitions , which requires recognition of the assets acquired and the liabilities assumed at their acquisition date fair values , separately from goodwill . goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the tangible and identifiable intangible assets acquired and liabilities assumed . while the company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration , where applicable , its estimates are inherently uncertain and subject to refinement . as a result , during the measurement period that exists up to 12 months from the acquisition date , the company may record adjustments to the fair values of tangible and specifically identifiable intangible assets acquired and liabilities assumed with a corresponding adjustment to goodwill . upon the conclusion of the measurement period or final determination of the values of assets acquired and liabilities assumed , whichever comes first , the impact of any subsequent adjustments to the fair values of assets acquired and liabilities assumed is included in the consolidated statements of operations . allowance for doubtful accounts the company establishes an allowance for estimated bad debts based upon a review and evaluation of specific customer accounts identified as known and expected collection problems , based on historical experience , or due to insolvency or other collection issues . if there is a deterioration of a major customer 's financial condition , if the company becomes aware of additional information related to the credit-worthiness of a major customer , or if future actual default rates on trade receivables in general differ from those currently anticipated , the company may have to adjust its allowance for doubtful accounts , which would affect earnings in the period the adjustments were made . 22 inventories the company evaluates the carrying value of inventory on a quarterly basis to determine if the carrying value is recoverable at estimated selling prices . to the extent that estimated selling prices do not exceed the associated carrying values , inventory carrying amounts are written down . in addition , the company generally treats inventory on hand or committed with suppliers , that is not expected to be sold within the next 12 months , as excess and thus appropriate write-downs of the inventory carrying amounts are established through a charge to cost of revenues . estimated usage in the next 12 months is based on firm demand represented by orders in backlog at the end of the quarter and management 's estimate of sales beyond existing backlog , giving consideration to customers ' forecasted demand , ordering patterns and product life cycles . significant reductions in product pricing or changes in technology and or demand may necessitate additional write-downs of inventory carrying value in the future . warranty the company initially provides for the estimated cost of product warranties at the time revenue is recognized . while it engages in extensive product quality programs and processes , the company 's warranty obligation is affected by product failure rates and material usage and service delivery costs incurred in correcting a product failure . should actual product failure rates , material usage or service delivery costs differ from management 's estimates , revisions to the estimated warranty liability would be required . deferred income tax and uncertain tax positions deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and for income tax purposes . a deferred income tax asset is recognized if realization of such asset is more likely than not , based upon the weight of available evidence that includes historical operating performance and the company 's forecast of future operating performance . the company evaluates the realizability of its deferred income tax assets and a valuation allowance is provided , as necessary . during this evaluation , the company reviews its forecasts of income in conjunction with the positive and negative evidence surrounding the realizability of its deferred income tax assets to determine if a valuation allowance is needed . the company follows asc topic 740 , ยincome taxesย framework for determining the appropriate level of tax reserves to maintain for ยuncertain tax positionsย . asc topic 740 uses a two-step approach in which a tax benefit is recognized if a position is more likely than not to be sustained . story_separator_special_tag operating expenses consolidated research and development ( ยr & dย ) expense increased to $ 22.0 million in fiscal 2017 from $ 19.8 million last year due primarily to lojack r & d expense . consolidated selling expenses increased by $ 25.7 million to $ 49.0 million in fiscal 2017 from $ 23.4 million in fiscal 2016 due primarily to the lojack acquisition , which accounted for $ 23.8 million of the increase . the remaining increase was due to higher payroll expense as a result of additional sales and marketing personnel and stock compensation expenses . consolidated general and administrative expenses ( ยg & aย ) increased by $ 32.0 million to $ 57.1 million in fiscal 2017 compared to $ 25.1 million in fiscal 2016 due primarily to the g & a expenses of lojack , which accounted for $ 20.7 million of the increase . also , transaction and integration expenses for the lojack acquisition were $ 4.5 million and $ 2.0 million in fiscal years 2017 and 2016 , respectively . the remaining increase in g & a expenses for fiscal 2017 was due to higher legal expenses related to two patent infringement lawsuits and a litigation provision of $ 7.2 million recorded in fiscal 2017 related to the omega patents llc patent infringement case . in fiscal 2016 , a litigation provision of $ 2.9 million was recorded for this lawsuit . higher stock compensation expenses in fiscal 2017 also contributed to the increase in g & a expenses . amortization of intangibles increased from $ 6.6 million in fiscal 2016 to $ 15.1 million in fiscal 2017 due to the amortization of new intangibles associated with the acquisition of lojack in the fiscal 2017 first quarter . 26 non-operating expense , net investment income was $ 1.7 million in fiscal 2017 compared to investment income of $ 1.9 million last year . in fiscal 2017 , there was investment income on cash equivalents and marketable securities of $ 0.6 million , investment income of $ 0.9 million on deferred compensation plan rabbi trust assets and other investment income of $ 0.2 million . in fiscal 2016 , there was investment income on cash equivalents and marketable securities of $ 0.8 million and a gain of $ 1.4 million on 850,100 shares of lojack common stock purchased in the open market in november and december 2015. offsetting the fiscal 2016 income from these investments was a loss on deferred compensation plan rabbi trust assets of $ 0.4 million . the company is informally funding its deferred compensation plan obligations by making cash deposits to a rabbi trust that are invested in various equity , bond and money market mutual funds in generally the same proportion as investment elections made by the participants for their compensation deferrals . interest expense increased to $ 9.9 million in fiscal 2017 compared to $ 7.6 million last year due to a full year of interest expense in fiscal 2017 on the convertible notes issued in may 2015 versus 9.5 months of interest expense in fiscal 2016. income tax provision the company had an income tax benefit of $ 1.6 million and an effective tax rate of 19.1 % in fiscal 2017. the income tax benefit was impacted by the geographic mix of earnings ( losses ) as a result of the acquisition of lojack in fiscal 2017 and a $ 1.4 million increase in the deferred tax assets valuation allowance as a result of the company 's assessment of the future realizability of its deferred tax assets . in fiscal 2016 , the company recorded an income tax provision of $ 4.6 million and an effective tax rate of 20.5 % . the effective tax rate was lower than the u.s. statutory rate due primarily to a $ 2.5 million reduction in the deferred tax assets valuation allowance as a result of the company 's assessment of the future realizability of its deferred tax assets . fiscal year 2016 compared to fiscal year 2015 revenue wireless datacom revenue increased by $ 28.3 million , or 13 % , to $ 241.4 million in fiscal 2016 compared to $ 213.1 million in fiscal 2015. these increases were due primarily to increased sales of mrm products into the fleet management and non-vehicle asset tracking markets , as well as the revenue generated from a major original equipment manufacturer in the heavy equipment industry . satellite revenue increased by $ 1.8 million , or 5 % , to $ 39.3 million in fiscal 2016 compared to $ 37.5 million in fiscal 2015 due primarily to the introduction of a new product that we began shipping in the second half of fiscal 2015. gross profit and gross margins wireless datacom gross profit increased by $ 14.1 million to $ 92.0 million in fiscal 2016 from $ 77.9 million in fiscal 2015 due to higher revenue , as described above . wireless datacom gross margin increased to 38.1 % in fiscal 2016 from 36.6 % in the prior year due to revenue mix changes and increased absorption of fixed manufacturing costs on higher revenue . satellite gross profit increased by $ 1.5 million to $ 11.0 million in fiscal 2016 compared to $ 9.5 million in fiscal 2015. satellite 's gross margin increased to 27.9 % in fiscal 2016 from 25.4 % in the prior year which was attributable to changes in product mix due to the new product introduced in the second half of fiscal 2015. operating expenses consolidated r & d expense decreased slightly to $ 19.8 million in fiscal 2016 from $ 19.9 million in the prior year due primarily to staff reductions from ongoing operational integration . consolidated selling expenses increased by $ 3.0 million to $ 23.4 million in fiscal 2016 from $ 20.4 million in fiscal 2015 due primarily to higher marketing-related expenses and stock compensation expenses . 27 consolidated g & a increased by $ 9.5 million
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2,313 | seattle acquisition on july 31 , 2013 , the company acquired a 848,001 square-foot office portfolio in seattle , washington from spear street capital for approximately $ 368.4 million ( net of certain credits and before closing costs and prorations ) . the purchase price was paid from a combination of cash-on-hand ( including funds from the 1031 exchange of city plaza ) , borrowings under the company 's corporate unsecured credit facility , and the asset-level financing described below . the seattle portfolio consists of the following : a two-building , 484,463 square-foot waterfront property located in the pioneer square submarket of downtown seattle , referred to as the first & king property . this property is 88.2 % leased to tenants such as capital one/ing direct , emc corporation and nuance communications ; a 189,762 square-foot class-a office building located in the south lake union submarket of downtown seattle , referred to as the met park north property . this building is 94.6 % leased , with 72.4 % of the building to be occupied by amazon.com , inc. under a ten-year lease that commenced in november 2013 ; and a 173,776 square-foot building located in the edmonds/lynnwood submarket of seattle 's northend , referred to as the northview property . this building is 88.6 % leased to tenants such as automatic data processing , inc. and the federal emergency management agency . 1861 bundy acquisition on september 27 , 2013 , the company acquired 1861 bundy drive in los angeles , california for $ 11.5 million ( before closing costs and prorations ) . 1861 bundy drive is expected to consist of approximately 36,474 square feet of creative office space and be part of the company 's element la property . dispositions . we disposed of one property in 2013. city plaza disposition 38 on july 12 , 2013 , the company sold its city plaza property for approximately $ 56.0 million ( before certain credits , prorations , and closing costs ) . proceeds from the disposition were used toward the acquisition of the seattle portfolio pursuant to a like-kind exchange under internal revenue code section 1031. city plaza is a nineteen-story , 333,922 rentable square-foot class-a office building located in orange , california that was acquired by the company 's predecessor in august of 2008 and contributed to the company in connection with its june 29 , 2010 initial public offering . repositionings . we generally select a property for repositioning at the time we purchase it . we often strategically purchase properties with large vacancies or expected near-term lease roll-over and use our knowledge of the property and submarket to determine the optimal use and tenant mix . a repositioning can consist of a range of improvements to a property , and may involve a complete structural renovation of a building to significantly upgrade the character of the property , or it may involve targeted remodeling of common areas and tenant spaces to make the property more attractive to certain identified tenants . because each repositioning effort is unique and determined based on the property , tenants and overall trends in the general market and specific submarket , the results are varying degrees of depressed rental revenue and occupancy levels for the affected property , which impacts our results and , accordingly , comparisons of our performance from period to period . the repositioning process generally occurs over the course of months or even years . although usually associated with newly-acquired properties , repositioning efforts can also occur at properties we already own ; repositioning properties discussed in the context of this paragraph exclude acquisition properties where the plan for improvement is implemented as part of the acquisition . during 2013 , we acquired 3401 exposition blvd . and 1861 bundy drive for purposes of repositioning . financings . 3401 exposition boulevard as part of the acquisition of 3401 exposition blvd . on may 22 , 2013 , the company assumed a loan with an outstanding principal balance of approximately $ 13.2 million . the loan bears interest at a rate equal to one-month libor plus 380 basis points and is scheduled to mature on may 31 , 2014. pinnacle ii as part of the contribution of the pinnacle ii building on june 14 , 2013 , the company 's joint venture with mdp/worthe assumed a loan with an outstanding principal balance of approximately $ 89.1 million . the loan bears interest at a fixed annual rate of 6.313 % and is scheduled to mature on september 6 , 2016. seattle portfolio ( met park north and first & king properties ) in connection with the acquisition of the seattle portfolio , on july 31 , 2013 , the company closed a seven-year loan totaling $ 64.5 million with union bank , n.a . , secured by the company 's met park north property . the loan bears interest at a rate equal to one-month libor plus 155 basis points . the full loan is subject to an interest rate contract that swapped one-month libor to a fixed rate of 2.1644 % through the loan 's maturity on august 1 , 2020. proceeds from the loan were used toward the purchase the seattle portfolio . on august 14 , 2013 , the company closed a five-year loan totaling $ 95.0 million with wells fargo bank , n.a . , secured by the company 's first & king property . the loan bears interest at a rate equal to one-month libor plus 160 basis points and is scheduled to mature on august 31 , 2018. proceeds from the loan were used toward the repayment of amounts drawn on our unsecured credit facility in connection with the seattle portfolio acquisition . story_separator_special_tag gains on properties sold are recognized using the full accrual method when ( i ) the collectability of the sales price is reasonably assured , ( ii ) we are not obligated to perform significant activities after the sale , ( iii ) the initial investment from the buyer is sufficient and ( iv ) other profit recognition criteria have been satisfied . gains on sales of properties may be deferred in whole or in part until the requirements for gain recognition have been met . stock-based compensation asc topic 718 , compensationโstock compensation ( referred to as asc topic 718 and formerly known as fasb 123r ) , requires us to recognize an expense for the fair value of equity-based compensation awards . grants of stock options , restricted stock , restricted stock units and performance units under our equity incentive award plans are accounted for under asc topic 718. our compensation committee will regularly consider the accounting implications of significant compensation decisions , especially in connection with decisions that relate to our equity incentive award plans and programs . income taxes our taxable income prior to the completion of our initial public offering is reportable by the members of the limited liability companies that comprise our predecessor . our property-owning subsidiaries are limited liability companies and are treated as pass-through entities for income tax purposes . accordingly , no provision has been made for federal income taxes in the accompanying consolidated financial statements for the activities of these entities . we have elected to be taxed as a reit under the internal revenue code of 1986 , as amended ( the โ code โ ) commencing with our taxable year ended december 31 , 2010. we believe that we have operated in a manner that has allowed us to qualify as a reit for federal income tax purposes commencing with such taxable year , and we intend to continue operating in such manner . to qualify as a reit , we are required to distribute at least 90 % of our net taxable income to our stockholders , excluding net capital gains , and meet the various other requirements imposed by the code relating to such matters as operating results , asset holdings , distribution levels and diversity of stock ownership . provided that we continue to qualify for taxation as a reit , we are generally not subject to corporate level income tax on the earnings distributed currently to our stockholders . if we fail to qualify as a reit in any taxable year , and are unable to avail ourselves of certain savings provisions set forth in the code , all of our taxable income would be subject to federal income tax at regular corporate rates , including any applicable alternative minimum tax . unless entitled to relief under specific statutory provisions , we would be ineligible to elect to be treated as a reit for the four taxable years following the year for which we lose our qualification . it is not possible to state whether in all circumstances we would be entitled to this statutory relief . we have elected to treat one of our subsidiaries as a taxable reit subsidiary . certain activities that we may undertake , such as non-customary services for our tenants and holding assets that we can not hold directly , will be conducted by a taxable reit subsidiary . a taxable reit subsidiary is subject to federal and , where applicable , state income taxes on its net income . we are subject to the statutory requirements of the states in which we conduct business . the company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years , as defined by the statute of limitations , based on their technical merits . as of december 31 , 2013 , the company has not established a liability for uncertain tax positions . 43 results of operations the following table identifies each of the properties in our portfolio acquired through december 31 , 2013 and their date of acquisition . replace_table_token_14_th ( 1 ) these properties are owned by our joint venture with mdp/worthe . as of december 31 , 2012 , we owned a 98.25 % interest in the joint venture , which owned pinnacle i as of that date . on june 14 , 2013 , mdp/worthe contributed its interest in pinnacle ii to the joint venture , which reduced our interest in the joint venture to 65.0 % . all amounts and percentages used in this discussion of our results of operations are calculated using the numbers presented in the financial statements contained in this report rather than the rounded numbers appearing in this discussion . 44 comparison of the year ended december 31 , 2013 to the year ended december 31 , 2012 revenue total office revenue . total office revenue consists of rental revenue , tenant recoveries , and parking and other revenue . total office revenues increased $ 45.1 million , or 37.5 % , to $ 165.4 million for the twelve months ended december 31 , 2013 compared to $ 120.3 million for the twelve months ended december 31 , 2012 . the period-over-period changes in the items that comprise total revenue are attributable primarily to the factors discussed below . during the twelve months ended december 31 , 2013 , the company entered into an agreement to sell its city plaza property in orange , california . accordingly , the city plaza property was reclassified as held for sale and its financial results are accounted for as discontinued operations for the twelve months ended december 31 , 2013 and december 31 , 2012 . office rental revenue . office rental revenue includes rental revenues from our office properties and percentage rent on retail space contained within those properties . total
| analysis of liquidity and capital resources we had approximately $ 30.4 million of cash and cash equivalents at december 31 , 2013 . in addition , the lead arrangers for our unsecured revolving credit facility have secured commitments that will allow borrowings of up to $ 250.0 million . as of december 31 , 2013 , we had total borrowing capacity of approximately $ 250.0 million under our unsecured revolving credit facility , $ 155.0 million of which had been drawn . on january 28 , 2014 , we closed the public offering of 9,487,500 shares of our common stock . we used $ 155.0 million of proceeds from that stock offering to fully pay down the $ 155.0 million outstanding balance on our unsecured credit facility . on february 10 , 2014 we drew $ 15.0 million in connection with our acquisition of the merrill place property . on february 27 , 2014 we drew $ 20.0 million in connection with our acquisition of the 3402 pico boulevard property . as a result , we have total borrowing capacity of approximately $ 250.0 million under our unsecured revolving credit facility , $ 35.0 million of which has been drawn . we have an at-the-market , or atm , program which allows us to sell up to $ 125.0 million of common stock , $ 12.6 million of which has been sold as of december 31 , 2013 . we intend to use the unsecured revolving credit facility and atm program , among other things , to finance the acquisition of other properties , to provide funds for tenant improvements and capital expenditures and to provide for working capital and other corporate purposes . based on the closing price of our common stock of $ 21.87 as of december 31 , 2013 , our ratio of debt to total market capitalization was approximately 39.2 % ( counting series a preferred units as debt ) as of december 31 , 2013 .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```analysis of liquidity and capital resources we had approximately $ 30.4 million of cash and cash equivalents at december 31 , 2013 . in addition , the lead arrangers for our unsecured revolving credit facility have secured commitments that will allow borrowings of up to $ 250.0 million . as of december 31 , 2013 , we had total borrowing capacity of approximately $ 250.0 million under our unsecured revolving credit facility , $ 155.0 million of which had been drawn . on january 28 , 2014 , we closed the public offering of 9,487,500 shares of our common stock . we used $ 155.0 million of proceeds from that stock offering to fully pay down the $ 155.0 million outstanding balance on our unsecured credit facility . on february 10 , 2014 we drew $ 15.0 million in connection with our acquisition of the merrill place property . on february 27 , 2014 we drew $ 20.0 million in connection with our acquisition of the 3402 pico boulevard property . as a result , we have total borrowing capacity of approximately $ 250.0 million under our unsecured revolving credit facility , $ 35.0 million of which has been drawn . we have an at-the-market , or atm , program which allows us to sell up to $ 125.0 million of common stock , $ 12.6 million of which has been sold as of december 31 , 2013 . we intend to use the unsecured revolving credit facility and atm program , among other things , to finance the acquisition of other properties , to provide funds for tenant improvements and capital expenditures and to provide for working capital and other corporate purposes . based on the closing price of our common stock of $ 21.87 as of december 31 , 2013 , our ratio of debt to total market capitalization was approximately 39.2 % ( counting series a preferred units as debt ) as of december 31 , 2013 .
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Suspicious Activity Report : seattle acquisition on july 31 , 2013 , the company acquired a 848,001 square-foot office portfolio in seattle , washington from spear street capital for approximately $ 368.4 million ( net of certain credits and before closing costs and prorations ) . the purchase price was paid from a combination of cash-on-hand ( including funds from the 1031 exchange of city plaza ) , borrowings under the company 's corporate unsecured credit facility , and the asset-level financing described below . the seattle portfolio consists of the following : a two-building , 484,463 square-foot waterfront property located in the pioneer square submarket of downtown seattle , referred to as the first & king property . this property is 88.2 % leased to tenants such as capital one/ing direct , emc corporation and nuance communications ; a 189,762 square-foot class-a office building located in the south lake union submarket of downtown seattle , referred to as the met park north property . this building is 94.6 % leased , with 72.4 % of the building to be occupied by amazon.com , inc. under a ten-year lease that commenced in november 2013 ; and a 173,776 square-foot building located in the edmonds/lynnwood submarket of seattle 's northend , referred to as the northview property . this building is 88.6 % leased to tenants such as automatic data processing , inc. and the federal emergency management agency . 1861 bundy acquisition on september 27 , 2013 , the company acquired 1861 bundy drive in los angeles , california for $ 11.5 million ( before closing costs and prorations ) . 1861 bundy drive is expected to consist of approximately 36,474 square feet of creative office space and be part of the company 's element la property . dispositions . we disposed of one property in 2013. city plaza disposition 38 on july 12 , 2013 , the company sold its city plaza property for approximately $ 56.0 million ( before certain credits , prorations , and closing costs ) . proceeds from the disposition were used toward the acquisition of the seattle portfolio pursuant to a like-kind exchange under internal revenue code section 1031. city plaza is a nineteen-story , 333,922 rentable square-foot class-a office building located in orange , california that was acquired by the company 's predecessor in august of 2008 and contributed to the company in connection with its june 29 , 2010 initial public offering . repositionings . we generally select a property for repositioning at the time we purchase it . we often strategically purchase properties with large vacancies or expected near-term lease roll-over and use our knowledge of the property and submarket to determine the optimal use and tenant mix . a repositioning can consist of a range of improvements to a property , and may involve a complete structural renovation of a building to significantly upgrade the character of the property , or it may involve targeted remodeling of common areas and tenant spaces to make the property more attractive to certain identified tenants . because each repositioning effort is unique and determined based on the property , tenants and overall trends in the general market and specific submarket , the results are varying degrees of depressed rental revenue and occupancy levels for the affected property , which impacts our results and , accordingly , comparisons of our performance from period to period . the repositioning process generally occurs over the course of months or even years . although usually associated with newly-acquired properties , repositioning efforts can also occur at properties we already own ; repositioning properties discussed in the context of this paragraph exclude acquisition properties where the plan for improvement is implemented as part of the acquisition . during 2013 , we acquired 3401 exposition blvd . and 1861 bundy drive for purposes of repositioning . financings . 3401 exposition boulevard as part of the acquisition of 3401 exposition blvd . on may 22 , 2013 , the company assumed a loan with an outstanding principal balance of approximately $ 13.2 million . the loan bears interest at a rate equal to one-month libor plus 380 basis points and is scheduled to mature on may 31 , 2014. pinnacle ii as part of the contribution of the pinnacle ii building on june 14 , 2013 , the company 's joint venture with mdp/worthe assumed a loan with an outstanding principal balance of approximately $ 89.1 million . the loan bears interest at a fixed annual rate of 6.313 % and is scheduled to mature on september 6 , 2016. seattle portfolio ( met park north and first & king properties ) in connection with the acquisition of the seattle portfolio , on july 31 , 2013 , the company closed a seven-year loan totaling $ 64.5 million with union bank , n.a . , secured by the company 's met park north property . the loan bears interest at a rate equal to one-month libor plus 155 basis points . the full loan is subject to an interest rate contract that swapped one-month libor to a fixed rate of 2.1644 % through the loan 's maturity on august 1 , 2020. proceeds from the loan were used toward the purchase the seattle portfolio . on august 14 , 2013 , the company closed a five-year loan totaling $ 95.0 million with wells fargo bank , n.a . , secured by the company 's first & king property . the loan bears interest at a rate equal to one-month libor plus 160 basis points and is scheduled to mature on august 31 , 2018. proceeds from the loan were used toward the repayment of amounts drawn on our unsecured credit facility in connection with the seattle portfolio acquisition . story_separator_special_tag gains on properties sold are recognized using the full accrual method when ( i ) the collectability of the sales price is reasonably assured , ( ii ) we are not obligated to perform significant activities after the sale , ( iii ) the initial investment from the buyer is sufficient and ( iv ) other profit recognition criteria have been satisfied . gains on sales of properties may be deferred in whole or in part until the requirements for gain recognition have been met . stock-based compensation asc topic 718 , compensationโstock compensation ( referred to as asc topic 718 and formerly known as fasb 123r ) , requires us to recognize an expense for the fair value of equity-based compensation awards . grants of stock options , restricted stock , restricted stock units and performance units under our equity incentive award plans are accounted for under asc topic 718. our compensation committee will regularly consider the accounting implications of significant compensation decisions , especially in connection with decisions that relate to our equity incentive award plans and programs . income taxes our taxable income prior to the completion of our initial public offering is reportable by the members of the limited liability companies that comprise our predecessor . our property-owning subsidiaries are limited liability companies and are treated as pass-through entities for income tax purposes . accordingly , no provision has been made for federal income taxes in the accompanying consolidated financial statements for the activities of these entities . we have elected to be taxed as a reit under the internal revenue code of 1986 , as amended ( the โ code โ ) commencing with our taxable year ended december 31 , 2010. we believe that we have operated in a manner that has allowed us to qualify as a reit for federal income tax purposes commencing with such taxable year , and we intend to continue operating in such manner . to qualify as a reit , we are required to distribute at least 90 % of our net taxable income to our stockholders , excluding net capital gains , and meet the various other requirements imposed by the code relating to such matters as operating results , asset holdings , distribution levels and diversity of stock ownership . provided that we continue to qualify for taxation as a reit , we are generally not subject to corporate level income tax on the earnings distributed currently to our stockholders . if we fail to qualify as a reit in any taxable year , and are unable to avail ourselves of certain savings provisions set forth in the code , all of our taxable income would be subject to federal income tax at regular corporate rates , including any applicable alternative minimum tax . unless entitled to relief under specific statutory provisions , we would be ineligible to elect to be treated as a reit for the four taxable years following the year for which we lose our qualification . it is not possible to state whether in all circumstances we would be entitled to this statutory relief . we have elected to treat one of our subsidiaries as a taxable reit subsidiary . certain activities that we may undertake , such as non-customary services for our tenants and holding assets that we can not hold directly , will be conducted by a taxable reit subsidiary . a taxable reit subsidiary is subject to federal and , where applicable , state income taxes on its net income . we are subject to the statutory requirements of the states in which we conduct business . the company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years , as defined by the statute of limitations , based on their technical merits . as of december 31 , 2013 , the company has not established a liability for uncertain tax positions . 43 results of operations the following table identifies each of the properties in our portfolio acquired through december 31 , 2013 and their date of acquisition . replace_table_token_14_th ( 1 ) these properties are owned by our joint venture with mdp/worthe . as of december 31 , 2012 , we owned a 98.25 % interest in the joint venture , which owned pinnacle i as of that date . on june 14 , 2013 , mdp/worthe contributed its interest in pinnacle ii to the joint venture , which reduced our interest in the joint venture to 65.0 % . all amounts and percentages used in this discussion of our results of operations are calculated using the numbers presented in the financial statements contained in this report rather than the rounded numbers appearing in this discussion . 44 comparison of the year ended december 31 , 2013 to the year ended december 31 , 2012 revenue total office revenue . total office revenue consists of rental revenue , tenant recoveries , and parking and other revenue . total office revenues increased $ 45.1 million , or 37.5 % , to $ 165.4 million for the twelve months ended december 31 , 2013 compared to $ 120.3 million for the twelve months ended december 31 , 2012 . the period-over-period changes in the items that comprise total revenue are attributable primarily to the factors discussed below . during the twelve months ended december 31 , 2013 , the company entered into an agreement to sell its city plaza property in orange , california . accordingly , the city plaza property was reclassified as held for sale and its financial results are accounted for as discontinued operations for the twelve months ended december 31 , 2013 and december 31 , 2012 . office rental revenue . office rental revenue includes rental revenues from our office properties and percentage rent on retail space contained within those properties . total
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2,314 | 19 based on this rigorous evaluation , itw determined that solid and consistent above-market organic growth must be the core growth engine to deliver world-class financial performance and compelling long-term returns for its shareholders . to shift its primary growth engine to organic , the company began executing a multi-step approach . the first step was to narrow the focus and improve the quality of itw 's business portfolio . as part of the portfolio management initiative , itw exited businesses that were operating in commoditized market spaces and prioritized sustainable differentiation as a must-have requirement for all itw businesses . this process included both divesting entire businesses and exiting commoditized product lines and customers inside otherwise highly differentiated itw divisions . as a result of this work , itw 's business portfolio now has significantly higher organic growth potential . itw segments and divisions now possess attractive and differentiated product lines and end markets as they continue to improve operating margins and generate price/cost increases . the company achieved this through product line simplification , or eliminating the complexity and overhead costs associated with smaller product lines and customers , while supporting and growing the businesses ' largest / most profitable customers and product lines . step two , business structure simplification , was implemented to simplify and scale-up itw 's operating structure to support increased engineering , marketing , and sales resources , and , at the same time , improve global reach and competitiveness , all of which were critical to driving accelerated organic growth . itw now has 87 scaled-up divisions with significantly enhanced focus on growth investments , core customers and products , and customer-back innovation . the strategic sourcing initiative established sourcing as a core strategic and operational capability at itw . the company 's 80/20-enabled sourcing organization has delivered an average of one percent reduction in spend each year from 2013 through 2018 and is on track to do the same in 2019. with the initial portfolio realignment and scale-up work largely complete , the company has shifted its focus to preparing for and accelerating organic growth , reapplying the 80/20 front-to-back process to optimize its newly scaled-up divisions for growth , first , to build a foundation of operational excellence , and second , to identify the best opportunities to drive organic growth . itw has clearly demonstrated superior 80/20 management , resulting in meaningful incremental improvement in margins and returns as evidenced by the company 's operating margin and after-tax return on invested capital . at the same time , these 80/20 initiatives can also result in restructuring initiatives that reduce costs and improve profitability and returns . path to full potential - finishing the job since the launch of the enterprise strategy , the company has made considerable progress to position itself to reach full potential . the itw business model and unique set of capabilities are a source of strong and enduring competitive advantage , but for the company to truly reach its full potential over the next five years , every one of its divisions must also be operating at its full potential . to do so , the company remains focused on three key areas to finish the job of positioning itw to perform to its full potential : portfolio discipline 80/20 front-to-back practice excellence full-potential organic growth portfolio discipline the company only operates in industries where it can generate significant , long-term competitive advantage from the itw business model . itw businesses have the right โ raw material โ in terms of market and business attributes that best fit the itw business model and have significant potential to drive above-market organic growth over the long-term . the company focuses on high-quality businesses , ensuring it operates in markets with positive long-term macro fundamentals and with customers that have critical needs and value itw 's differentiated products , services and solutions . itw 's portfolio operates in diverse end markets and geographies which makes the company more resilient in the face of uncertain or volatile market environments . 20 80/20 front-to-back practice excellence the 80/20 front-to-back process is a rigorous , iterative and highly data-driven approach to identify where the company has true differentiation and the ability to drive sustainable , high-quality organic growth . the company simplifies and eliminates complexity and redesigns every aspect of its business to ensure focused execution on key opportunities , markets , customers , and products . itw will continue its efforts to drive 80/20 front-to-back practice excellence in every division in the company , every day . full-potential organic growth reaching full potential means that every division is positioned for sustainable , high-quality organic growth . the company has clearly defined action plans aimed at leveraging the performance power of the itw business model to achieve full-potential organic growth in every division . at the same time , the company consistently reviews its portfolio , assesses businesses that are growth-challenged and evaluates if further portfolio refinements may be needed . the company is currently exploring options , including potential divestitures , for certain businesses with revenues totaling up to $ 1 billion . if a decision is made to divest any of these businesses , the company expects that earnings per share dilution would be offset by incremental share repurchases . terms used by itw management uses the following terms to describe the financial results of operations of the company : organic business - acquired businesses that have been included in the company 's results of operations for more than 12 months on a constant currency basis . operating leverage - the estimated effect of the organic revenue volume changes on organic operating income , assuming variable margins remain the same as the prior period . price/cost - represents the estimated net impact of increases or decreases in the cost of materials used in the company 's products versus changes in the selling price to the company 's customers . story_separator_special_tag this segment primarily serves the electronics , general industrial , industrial capital goods , automotive original equipment manufacturers and tiers , and consumer durables markets . products in this segment include : equipment , consumables , and related software for testing and measuring of materials , structures , gases and fluids ; electronic assembly equipment and related consumable solder materials ; electronic components and component packaging ; static control equipment and consumables used for contamination control in clean room environments ; and pressure sensitive adhesives and components for electronics , medical , transportation and telecommunications applications . the results of operations for the test & measurement and electronics segment for 2018 , 2017 and 2016 were as follows : 2018 compared to 2017 replace_table_token_13_th operating revenue increased due to higher organic revenue and the favorable effect of foreign currency translation . organic revenue increased 3.5 % in 2018 . โฆ organic revenue for the test and measurement businesses increased 5.5 % with growth in all major regions primarily due to higher semi-conductor end market demand . instron , where demand is more closely tied to the capital spending environment , had organic revenue growth of 7.1 % . โฆ electronics organic revenue grew 1.2 % . the electronics assembly businesses declined 4.3 % due to lower demand across north america and europe . the other electronics businesses , which include the contamination control , static control and pressure sensitive adhesives businesses , grew 5.0 % primarily due to higher semi-conductor end market demand in north america . operating margin was 24.1 % in 2018. the increase of 170 basis points was primarily driven by positive operating leverage of 90 basis points and benefits from the company 's enterprise initiatives . 2017 compared to 2016 replace_table_token_14_th operating revenue increased due to organic revenue growth . organic revenue increased 4.8 % . 27 โฆ organic revenue for the test and measurement businesses increased 7.2 % primarily due to higher semi-conductor end market demand in north america and asia . instron , where demand is more closely tied to the capital spending environment , had organic revenue growth of 5.1 % . โฆ electronics organic revenue , which had a challenging comparable in the prior year period of 4.9 % growth , increased 2.2 % . the electronics assembly businesses declined 1.1 % primarily due to a decrease in north america . the other electronics businesses , which include the contamination control , static control and pressure sensitive adhesives businesses , grew 4.7 % primarily due to higher semi-conductor end market demand in north america . operating margin of 22.4 % increased 350 basis points primarily driven by the net benefits resulting from the company 's enterprise initiatives and cost management of 130 basis points , positive operating leverage of 130 basis points and favorable price/cost of 30 basis points . welding this segment is a branded value-added equipment and specialty consumable manufacturer with innovative and leading technology . businesses in this segment produce arc welding equipment , consumables and accessories for a wide array of industrial and commercial applications . this segment primarily serves the general industrial market , which includes fabrication , shipbuilding and other general industrial markets , and energy , construction , mro , automotive original equipment manufacturers and tiers , and industrial capital goods markets . products in this segment include : arc welding equipment ; metal arc welding consumables and related accessories ; and metal jacketing and other insulation products . the results of operations for the welding segment for 2018 , 2017 and 2016 were as follows : 2018 compared to 2017 replace_table_token_15_th operating revenue increased primarily due to higher organic revenue . organic revenue grew 9.7 % driven by growth in equipment of 11.0 % and consumables of 7.9 % . organic revenue grew primarily due to increased demand in the industrial end markets related to heavy equipment for agriculture , infrastructure and mining , in the commercial end markets related to construction , light fabrication and farm and ranch customers , and in the oil and gas end markets . โฆ north american organic revenue increased 10.6 % primarily due to 14.7 % and 5.8 % growth in the industrial and commercial end markets , respectively . โฆ international organic revenue increased 5.7 % primarily due to higher demand in the oil and gas end markets . operating margin was 28.0 % in 2018. the increase of 100 basis points was primarily due to positive operating leverage of 150 basis points and benefits from the company 's enterprise initiatives , partially offset by higher freight and employee-related expenses . 28 2017 compared to 2016 replace_table_token_16_th operating revenue increased due to higher organic revenue and the favorable effect of foreign currency translation . organic revenue grew 3.2 % as equipment grew 6.5 % , partially offset by a decrease of 1.0 % in consumables . organic revenue grew primarily due to increased demand in the industrial end markets related to heavy equipment for agriculture , infrastructure and mining and in the commercial end markets related to construction , light fabrication and farm and ranch customers . โฆ north american organic revenue grew 6.2 % primarily driven by 7.2 % growth in the industrial end markets and 4.8 % growth in the commercial end markets . โฆ international organic revenue decreased 8.0 % primarily due to weaker end market demand in the european and asian oil and gas end markets . operating margin of 27.0 % increased 210 basis points primarily due to the net benefits of the company 's enterprise initiatives and cost management of 150 basis points , positive operating leverage of 70 basis points and lower restructuring expenses of 30 basis points , partially offset by unfavorable price/cost of 60 basis points . in addition , the prior year period was negatively impacted by an intangible asset impairment charge of 20 basis points . polymers & fluids this segment is a branded supplier
| liquidity and capital resources the company 's primary sources of liquidity are free cash flow and short-term credit facilities . in addition , the company had $ 1.5 billion of cash and equivalents on hand at december 31 , 2018 and also maintains strong access to public debt markets . management believes that these sources are sufficient to service debt and to finance the company 's capital allocation priorities , which include : internal investments to support organic growth and sustain core businesses ; payment of an attractive dividend to shareholders ; and external investments in selective strategic acquisitions that support the company 's organic growth focus and an active share repurchase program . the company believes that , based on its operating revenue , operating margin , free cash flow , and credit ratings , it could readily obtain additional financing if necessary . 34 cash flow the company uses free cash flow to measure cash flow generated by operations that is available for dividends , share repurchases , acquisitions and debt repayment . the company believes this non-gaap financial measure is useful to investors in evaluating the company 's financial performance and measures the company 's ability to generate cash internally to fund company initiatives . free cash flow represents net cash provided by operating activities less additions to plant and equipment . free cash flow is a measurement that is not the same as net cash flow from operating activities per the statement of cash flows and may not be consistent with similarly titled measures used by other companies .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources the company 's primary sources of liquidity are free cash flow and short-term credit facilities . in addition , the company had $ 1.5 billion of cash and equivalents on hand at december 31 , 2018 and also maintains strong access to public debt markets . management believes that these sources are sufficient to service debt and to finance the company 's capital allocation priorities , which include : internal investments to support organic growth and sustain core businesses ; payment of an attractive dividend to shareholders ; and external investments in selective strategic acquisitions that support the company 's organic growth focus and an active share repurchase program . the company believes that , based on its operating revenue , operating margin , free cash flow , and credit ratings , it could readily obtain additional financing if necessary . 34 cash flow the company uses free cash flow to measure cash flow generated by operations that is available for dividends , share repurchases , acquisitions and debt repayment . the company believes this non-gaap financial measure is useful to investors in evaluating the company 's financial performance and measures the company 's ability to generate cash internally to fund company initiatives . free cash flow represents net cash provided by operating activities less additions to plant and equipment . free cash flow is a measurement that is not the same as net cash flow from operating activities per the statement of cash flows and may not be consistent with similarly titled measures used by other companies .
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Suspicious Activity Report : 19 based on this rigorous evaluation , itw determined that solid and consistent above-market organic growth must be the core growth engine to deliver world-class financial performance and compelling long-term returns for its shareholders . to shift its primary growth engine to organic , the company began executing a multi-step approach . the first step was to narrow the focus and improve the quality of itw 's business portfolio . as part of the portfolio management initiative , itw exited businesses that were operating in commoditized market spaces and prioritized sustainable differentiation as a must-have requirement for all itw businesses . this process included both divesting entire businesses and exiting commoditized product lines and customers inside otherwise highly differentiated itw divisions . as a result of this work , itw 's business portfolio now has significantly higher organic growth potential . itw segments and divisions now possess attractive and differentiated product lines and end markets as they continue to improve operating margins and generate price/cost increases . the company achieved this through product line simplification , or eliminating the complexity and overhead costs associated with smaller product lines and customers , while supporting and growing the businesses ' largest / most profitable customers and product lines . step two , business structure simplification , was implemented to simplify and scale-up itw 's operating structure to support increased engineering , marketing , and sales resources , and , at the same time , improve global reach and competitiveness , all of which were critical to driving accelerated organic growth . itw now has 87 scaled-up divisions with significantly enhanced focus on growth investments , core customers and products , and customer-back innovation . the strategic sourcing initiative established sourcing as a core strategic and operational capability at itw . the company 's 80/20-enabled sourcing organization has delivered an average of one percent reduction in spend each year from 2013 through 2018 and is on track to do the same in 2019. with the initial portfolio realignment and scale-up work largely complete , the company has shifted its focus to preparing for and accelerating organic growth , reapplying the 80/20 front-to-back process to optimize its newly scaled-up divisions for growth , first , to build a foundation of operational excellence , and second , to identify the best opportunities to drive organic growth . itw has clearly demonstrated superior 80/20 management , resulting in meaningful incremental improvement in margins and returns as evidenced by the company 's operating margin and after-tax return on invested capital . at the same time , these 80/20 initiatives can also result in restructuring initiatives that reduce costs and improve profitability and returns . path to full potential - finishing the job since the launch of the enterprise strategy , the company has made considerable progress to position itself to reach full potential . the itw business model and unique set of capabilities are a source of strong and enduring competitive advantage , but for the company to truly reach its full potential over the next five years , every one of its divisions must also be operating at its full potential . to do so , the company remains focused on three key areas to finish the job of positioning itw to perform to its full potential : portfolio discipline 80/20 front-to-back practice excellence full-potential organic growth portfolio discipline the company only operates in industries where it can generate significant , long-term competitive advantage from the itw business model . itw businesses have the right โ raw material โ in terms of market and business attributes that best fit the itw business model and have significant potential to drive above-market organic growth over the long-term . the company focuses on high-quality businesses , ensuring it operates in markets with positive long-term macro fundamentals and with customers that have critical needs and value itw 's differentiated products , services and solutions . itw 's portfolio operates in diverse end markets and geographies which makes the company more resilient in the face of uncertain or volatile market environments . 20 80/20 front-to-back practice excellence the 80/20 front-to-back process is a rigorous , iterative and highly data-driven approach to identify where the company has true differentiation and the ability to drive sustainable , high-quality organic growth . the company simplifies and eliminates complexity and redesigns every aspect of its business to ensure focused execution on key opportunities , markets , customers , and products . itw will continue its efforts to drive 80/20 front-to-back practice excellence in every division in the company , every day . full-potential organic growth reaching full potential means that every division is positioned for sustainable , high-quality organic growth . the company has clearly defined action plans aimed at leveraging the performance power of the itw business model to achieve full-potential organic growth in every division . at the same time , the company consistently reviews its portfolio , assesses businesses that are growth-challenged and evaluates if further portfolio refinements may be needed . the company is currently exploring options , including potential divestitures , for certain businesses with revenues totaling up to $ 1 billion . if a decision is made to divest any of these businesses , the company expects that earnings per share dilution would be offset by incremental share repurchases . terms used by itw management uses the following terms to describe the financial results of operations of the company : organic business - acquired businesses that have been included in the company 's results of operations for more than 12 months on a constant currency basis . operating leverage - the estimated effect of the organic revenue volume changes on organic operating income , assuming variable margins remain the same as the prior period . price/cost - represents the estimated net impact of increases or decreases in the cost of materials used in the company 's products versus changes in the selling price to the company 's customers . story_separator_special_tag this segment primarily serves the electronics , general industrial , industrial capital goods , automotive original equipment manufacturers and tiers , and consumer durables markets . products in this segment include : equipment , consumables , and related software for testing and measuring of materials , structures , gases and fluids ; electronic assembly equipment and related consumable solder materials ; electronic components and component packaging ; static control equipment and consumables used for contamination control in clean room environments ; and pressure sensitive adhesives and components for electronics , medical , transportation and telecommunications applications . the results of operations for the test & measurement and electronics segment for 2018 , 2017 and 2016 were as follows : 2018 compared to 2017 replace_table_token_13_th operating revenue increased due to higher organic revenue and the favorable effect of foreign currency translation . organic revenue increased 3.5 % in 2018 . โฆ organic revenue for the test and measurement businesses increased 5.5 % with growth in all major regions primarily due to higher semi-conductor end market demand . instron , where demand is more closely tied to the capital spending environment , had organic revenue growth of 7.1 % . โฆ electronics organic revenue grew 1.2 % . the electronics assembly businesses declined 4.3 % due to lower demand across north america and europe . the other electronics businesses , which include the contamination control , static control and pressure sensitive adhesives businesses , grew 5.0 % primarily due to higher semi-conductor end market demand in north america . operating margin was 24.1 % in 2018. the increase of 170 basis points was primarily driven by positive operating leverage of 90 basis points and benefits from the company 's enterprise initiatives . 2017 compared to 2016 replace_table_token_14_th operating revenue increased due to organic revenue growth . organic revenue increased 4.8 % . 27 โฆ organic revenue for the test and measurement businesses increased 7.2 % primarily due to higher semi-conductor end market demand in north america and asia . instron , where demand is more closely tied to the capital spending environment , had organic revenue growth of 5.1 % . โฆ electronics organic revenue , which had a challenging comparable in the prior year period of 4.9 % growth , increased 2.2 % . the electronics assembly businesses declined 1.1 % primarily due to a decrease in north america . the other electronics businesses , which include the contamination control , static control and pressure sensitive adhesives businesses , grew 4.7 % primarily due to higher semi-conductor end market demand in north america . operating margin of 22.4 % increased 350 basis points primarily driven by the net benefits resulting from the company 's enterprise initiatives and cost management of 130 basis points , positive operating leverage of 130 basis points and favorable price/cost of 30 basis points . welding this segment is a branded value-added equipment and specialty consumable manufacturer with innovative and leading technology . businesses in this segment produce arc welding equipment , consumables and accessories for a wide array of industrial and commercial applications . this segment primarily serves the general industrial market , which includes fabrication , shipbuilding and other general industrial markets , and energy , construction , mro , automotive original equipment manufacturers and tiers , and industrial capital goods markets . products in this segment include : arc welding equipment ; metal arc welding consumables and related accessories ; and metal jacketing and other insulation products . the results of operations for the welding segment for 2018 , 2017 and 2016 were as follows : 2018 compared to 2017 replace_table_token_15_th operating revenue increased primarily due to higher organic revenue . organic revenue grew 9.7 % driven by growth in equipment of 11.0 % and consumables of 7.9 % . organic revenue grew primarily due to increased demand in the industrial end markets related to heavy equipment for agriculture , infrastructure and mining , in the commercial end markets related to construction , light fabrication and farm and ranch customers , and in the oil and gas end markets . โฆ north american organic revenue increased 10.6 % primarily due to 14.7 % and 5.8 % growth in the industrial and commercial end markets , respectively . โฆ international organic revenue increased 5.7 % primarily due to higher demand in the oil and gas end markets . operating margin was 28.0 % in 2018. the increase of 100 basis points was primarily due to positive operating leverage of 150 basis points and benefits from the company 's enterprise initiatives , partially offset by higher freight and employee-related expenses . 28 2017 compared to 2016 replace_table_token_16_th operating revenue increased due to higher organic revenue and the favorable effect of foreign currency translation . organic revenue grew 3.2 % as equipment grew 6.5 % , partially offset by a decrease of 1.0 % in consumables . organic revenue grew primarily due to increased demand in the industrial end markets related to heavy equipment for agriculture , infrastructure and mining and in the commercial end markets related to construction , light fabrication and farm and ranch customers . โฆ north american organic revenue grew 6.2 % primarily driven by 7.2 % growth in the industrial end markets and 4.8 % growth in the commercial end markets . โฆ international organic revenue decreased 8.0 % primarily due to weaker end market demand in the european and asian oil and gas end markets . operating margin of 27.0 % increased 210 basis points primarily due to the net benefits of the company 's enterprise initiatives and cost management of 150 basis points , positive operating leverage of 70 basis points and lower restructuring expenses of 30 basis points , partially offset by unfavorable price/cost of 60 basis points . in addition , the prior year period was negatively impacted by an intangible asset impairment charge of 20 basis points . polymers & fluids this segment is a branded supplier
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2,315 | facility lease expense as a percentage of revenues is also affected by the number of theatres under operating leases , the number of theatres under capital and finance leases and the number of owned theatres . 25 utilities and other costs include both fixed and variable costs and primarily consist of utilities , expenses for projection and sound equipment maintenance and monitoring , property taxes , janitorial costs , repairs , maintenance and security services . general and administrative expenses are primarily fixed in nature and consist of the costs to support the overall management of the company , including salaries and wages , incentive compensation and benefit costs for our corporate office personnel , facility expenses for our corporate offices , consulting fees , legal fees , audit fees , supplies and other costs that are not specifically associated with the operations of our theatres . critical accounting policies we prepare our consolidated financial statements in conformity with generally accepted accounting principles in the u.s. , or u.s. gaap . as such , we are required to make certain estimates and assumptions that we believe are reasonable based upon the information available . these estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented . the significant accounting policies , which we believe are the most critical to aid in fully understanding and evaluating our reported consolidated financial results , include the following : revenue and expense recognition our patrons often have the option to purchase movie tickets well in advance of a movie showtime or right before the movie showtime , or at any point in between those two timeframes depending on seat availability . we recognize such admissions revenues when the showtime for a purchased movie ticket has passed . concession revenues are recognized when sales are made at the registers . other revenues primarily consist of screen advertising and other revenue streams , such as transactional fees , vendor marketing promotions , studio trailer placements , meeting rentals and electronic video games located in some of our theatres . screen advertising revenues are recognized over the period that the related advertising is delivered on-screen or in-theatre . we sell gift cards and discount ticket vouchers , the proceeds from which are recorded as current liabilities . revenues for gift cards and discount ticket vouchers are recognized when they are redeemed for movie tickets or concession items . we offer a subscription program in the u.s. whereby patrons can pay a monthly fee to receive a monthly credit for use towards a future movie ticket purchase . we record the monthly subscription program fees as current liabilities and record admissions revenues as the credits are redeemed for movie tickets . we also have loyalty programs in many of our locations that either have a prepaid annual membership fee or award points to customers as purchases are made . for those loyalty programs that have an annual membership fee , we recognize the fee collected as other revenues over the term of the membership . for those loyalty programs that award points to customers based on their purchases , we record a portion of the original transaction proceeds as liabilities based on the number of reward points issued to the customer and recognize revenues when the customer redeems such points . in may 2014 , the financial accounting standards board ( โ fasb โ ) issued accounting standards update ( โ asu โ ) 2014-09 , revenue from contracts with customers ( topic 606 ) , ( โ asc topic 606 โ ) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers . asc topic 606 replaces most existing revenue recognition guidance in u.s. generally accepted accounting principles . in addition , the standard requires disclosure of the nature , amount , timing , and uncertainty of revenue and cash flows arising from the contracts with customers . we adopted asc topic 606 effective january 1 , 2018 under the modified retrospective method . 26 changes to the way in which we recognize revenue resulted in the following impacts to our consolidated statements of income : a ) recording of incremental other revenue and interest expense related to the significant financing component of our exhibitor services agreement ( โ esa โ ) with ncm , llc ( โ ncm โ ) . see further discussion at note 3 to the consolidated financial statements . b ) deferral of a portion of admissions and concession revenues for transactions that include the issuance of loyalty points to customers . to determine the amount of revenues to defer upon issuance of points to customers under our points-based loyalty programs , we estimated the values of the rewards expected to be redeemed by our customers for those points . the estimates are based on the rewards that have historically been offered under the loyalty programs , which we believe is representative of the rewards to be offered in the future . c ) increase in other revenues and an increase in utilities and other costs due to the presentation of transactional fees on a gross versus net basis . d ) increase in other revenues due to the change in amortization methodology for deferred revenue โ ncm that is now amortized on a straight-line basis and effective for the entire term of the esa . the deferred revenue โ ncm is related to our esa and common unit adjustment agreement with ncm , under which our performance obligation is to provide ncm with exclusive access to its domestic theatres for purposes of in-theatre advertising over the term of the esa . such exclusivity , and therefore the satisfaction of our performance obligation , is provided to ncm evenly over time . story_separator_special_tag 30 impact of recent accounting developments impact of new revenue recognition standard in may 2014 , the fasb issued asu 2014-09 , revenue from contracts with customers ( topic 606 ) , ( โ asc topic 606 โ ) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers . asc topic 606 replaces most existing revenue recognition guidance in u.s. generally accepted accounting principles . in addition , the standard requires disclosure of the nature , amount , timing , and uncertainty of revenue and cash flows arising from the contracts with customers . impact of new lease accounting standard in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) , ( โ asu 2016-02 โ ) . the purpose of asu 2016-02 is to provide financial statement users a better understanding of the amount , timing , and uncertainty of cash flows arising from leases . the adoption of asu 2016-02 will result in the recognition of a right-of-use asset and a lease liability for most operating leases . new disclosure requirements include qualitative and quantitative information about the amounts recorded in the financial statements related to leases . asu 2016-02 is effective for fiscal years beginning after december 15 , 2018. asu 2016-02 requires a modified retrospective transition by means of a cumulative-effect adjustment to retained earnings as of the earliest period presented with the option to elect certain practical expedients . in july 2018 , the fasb issued asu 2018-10 , codification improvements to topic 842 , leases ( โ asu 2018-10 โ ) . in july 2018 , the fasb issued asu 2018-11 , leases ( topic 842 ) , targeted improvements ( โ asu 2018-11 โ ) . asu 2018-11 provides an additional transition method to adopt asu 2016-02. under this new transition method , an entity initially applies asu 2016-02 at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption . this additional transition method changes only when an entity is required to initially apply the transition requirements outlined in asu 2016-02 ; it does not change how those requirements are applied . we used the transition method outlined in asu 2018-11 upon adoption . we adopted asc topic 842 and the related amendments in asu 2016-02 and asu 2018-11 ( collectively referred to herein as โ the new leasing standard โ ) effective january 1 , 2019. we are finalizing its evaluation of the impact of the new leasing standard on our consolidated financial statements , and expect the most significant impacts to be as follows : 1. we will recognize liabilities representing the present value of the remaining future minimum lease payments for all of our operating leases as of january 1 , 2019. we estimate these liabilities will be between $ 1.4 billion and $ 1.7 billion . 2. we will recognize right of use assets for all of our operating leases equal to the liabilities calculated in ( 1 ) above , adjusted for the balances of long-term prepaid rent , favorable lease intangible assets , deferred lease expense , unfavorable lease liabilities and deferred lease incentive liabilities as of january 1 , 2019 . 3. we have theatre leases in which we were involved in construction that failed sale-leaseback accounting at the end of the construction period . these leases , which were accounted for as capital leases , will be derecognized upon adoption of the new leasing standard and evaluated to determine classification upon adoption . some of these leases will be classified as operating leases upon adoption and , beginning in 2019 , lease payments for these leases will be recorded as facility lease expense on the consolidated income statement . previously , as capital leases , lease payments were classified as interest expense and reductions of the capital lease obligations . 4. for the capital leases derecognized as discussed in ( 3 ) above , we will write-off the net book value of the capital lease asset and capital lease liability , with the difference between those amounts resulting in an adjustment to beginning retained earnings as of january 1 , 2019. recent developments on february 22 , 2019 , our board of directors approved a cash dividend for the fourth quarter of 2018 of $ 0.34 per share of common stock is payable to stockholders of record on march 8 , 2019 , and will be paid on march 22 , 2019 . 31 results of operations the following table sets forth , for the periods indicated , the amounts for certain items reflected in our consolidated statements of income along with each of those items as a percentage of revenues . replace_table_token_8_th ( 1 ) all costs are expressed as a percentage of total revenues , except film rentals and advertising , which are expressed as a percentage of admissions revenues and concession supplies , which are expressed as a percentage of concession revenues . 32 comparis on of years ended december 31 , 2018 and december 31 , 2017 revenues . total revenues increased $ 230.2 million to $ 3,221.8 million for 2018 from $ 2,991.6 million for 2017 , representing a 7.7 % increase . the table below , presented by reportable operating segment , summarizes our year-over-year revenue performance and certain key performance indicators that impact our revenues . replace_table_token_9_th ( 1 ) revenue and attendance amounts in millions . average ticket price is calculated as admissions revenues divided by attendance . concession revenues per patron is calculated as concession revenues divided by attendance . ( 2 ) u.s. operating segment revenues include eliminations of intercompany transactions with the international operating segment . see note 19 of our consolidated financial statements . ( 3 ) constant currency revenue amounts , which are non-gaap measurements , were
| liquidity and capital resources operating activities we primarily collect our revenues in cash , mainly through box office receipts and the sale of concessions . in addition , our theatres provide the patron a choice of using a credit card or debit card . since our revenues are received 38 in cash prior to the payment of related expenses , we have an operating โ float โ and historically have not required traditional working capital financing . cash provided by operating activities amounted to $ 462.9 million , $ 529.0 million and $ 556.9 million for the years ended december 31 , 2016 , 2017 and 2018 , respectively . the increase in cash flows from operating activities for the years ended december 31 , 2017 and 2018 was primarily due to the increase in revenues and the a mount and timing of vendor payments for movies released during december of those years . investing activities our investing activities have been principally related to the development , remodel and acquisition of theatres . new theatre openings , remodels and acquisitions historically have been financed with internally generated cash and by debt financing , including borrowings under our senior secured credit facility . cash used for investing activities amounted to $ 327.8 million , $ 410.5 million and $ 451.4 million for the years ended december 31 , 2016 , 2017 and 2018 , respectively . the increase in cash used for investing activities during 2017 was primarily due to increases in capital expenditures and acquisitions .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources operating activities we primarily collect our revenues in cash , mainly through box office receipts and the sale of concessions . in addition , our theatres provide the patron a choice of using a credit card or debit card . since our revenues are received 38 in cash prior to the payment of related expenses , we have an operating โ float โ and historically have not required traditional working capital financing . cash provided by operating activities amounted to $ 462.9 million , $ 529.0 million and $ 556.9 million for the years ended december 31 , 2016 , 2017 and 2018 , respectively . the increase in cash flows from operating activities for the years ended december 31 , 2017 and 2018 was primarily due to the increase in revenues and the a mount and timing of vendor payments for movies released during december of those years . investing activities our investing activities have been principally related to the development , remodel and acquisition of theatres . new theatre openings , remodels and acquisitions historically have been financed with internally generated cash and by debt financing , including borrowings under our senior secured credit facility . cash used for investing activities amounted to $ 327.8 million , $ 410.5 million and $ 451.4 million for the years ended december 31 , 2016 , 2017 and 2018 , respectively . the increase in cash used for investing activities during 2017 was primarily due to increases in capital expenditures and acquisitions .
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Suspicious Activity Report : facility lease expense as a percentage of revenues is also affected by the number of theatres under operating leases , the number of theatres under capital and finance leases and the number of owned theatres . 25 utilities and other costs include both fixed and variable costs and primarily consist of utilities , expenses for projection and sound equipment maintenance and monitoring , property taxes , janitorial costs , repairs , maintenance and security services . general and administrative expenses are primarily fixed in nature and consist of the costs to support the overall management of the company , including salaries and wages , incentive compensation and benefit costs for our corporate office personnel , facility expenses for our corporate offices , consulting fees , legal fees , audit fees , supplies and other costs that are not specifically associated with the operations of our theatres . critical accounting policies we prepare our consolidated financial statements in conformity with generally accepted accounting principles in the u.s. , or u.s. gaap . as such , we are required to make certain estimates and assumptions that we believe are reasonable based upon the information available . these estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented . the significant accounting policies , which we believe are the most critical to aid in fully understanding and evaluating our reported consolidated financial results , include the following : revenue and expense recognition our patrons often have the option to purchase movie tickets well in advance of a movie showtime or right before the movie showtime , or at any point in between those two timeframes depending on seat availability . we recognize such admissions revenues when the showtime for a purchased movie ticket has passed . concession revenues are recognized when sales are made at the registers . other revenues primarily consist of screen advertising and other revenue streams , such as transactional fees , vendor marketing promotions , studio trailer placements , meeting rentals and electronic video games located in some of our theatres . screen advertising revenues are recognized over the period that the related advertising is delivered on-screen or in-theatre . we sell gift cards and discount ticket vouchers , the proceeds from which are recorded as current liabilities . revenues for gift cards and discount ticket vouchers are recognized when they are redeemed for movie tickets or concession items . we offer a subscription program in the u.s. whereby patrons can pay a monthly fee to receive a monthly credit for use towards a future movie ticket purchase . we record the monthly subscription program fees as current liabilities and record admissions revenues as the credits are redeemed for movie tickets . we also have loyalty programs in many of our locations that either have a prepaid annual membership fee or award points to customers as purchases are made . for those loyalty programs that have an annual membership fee , we recognize the fee collected as other revenues over the term of the membership . for those loyalty programs that award points to customers based on their purchases , we record a portion of the original transaction proceeds as liabilities based on the number of reward points issued to the customer and recognize revenues when the customer redeems such points . in may 2014 , the financial accounting standards board ( โ fasb โ ) issued accounting standards update ( โ asu โ ) 2014-09 , revenue from contracts with customers ( topic 606 ) , ( โ asc topic 606 โ ) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers . asc topic 606 replaces most existing revenue recognition guidance in u.s. generally accepted accounting principles . in addition , the standard requires disclosure of the nature , amount , timing , and uncertainty of revenue and cash flows arising from the contracts with customers . we adopted asc topic 606 effective january 1 , 2018 under the modified retrospective method . 26 changes to the way in which we recognize revenue resulted in the following impacts to our consolidated statements of income : a ) recording of incremental other revenue and interest expense related to the significant financing component of our exhibitor services agreement ( โ esa โ ) with ncm , llc ( โ ncm โ ) . see further discussion at note 3 to the consolidated financial statements . b ) deferral of a portion of admissions and concession revenues for transactions that include the issuance of loyalty points to customers . to determine the amount of revenues to defer upon issuance of points to customers under our points-based loyalty programs , we estimated the values of the rewards expected to be redeemed by our customers for those points . the estimates are based on the rewards that have historically been offered under the loyalty programs , which we believe is representative of the rewards to be offered in the future . c ) increase in other revenues and an increase in utilities and other costs due to the presentation of transactional fees on a gross versus net basis . d ) increase in other revenues due to the change in amortization methodology for deferred revenue โ ncm that is now amortized on a straight-line basis and effective for the entire term of the esa . the deferred revenue โ ncm is related to our esa and common unit adjustment agreement with ncm , under which our performance obligation is to provide ncm with exclusive access to its domestic theatres for purposes of in-theatre advertising over the term of the esa . such exclusivity , and therefore the satisfaction of our performance obligation , is provided to ncm evenly over time . story_separator_special_tag 30 impact of recent accounting developments impact of new revenue recognition standard in may 2014 , the fasb issued asu 2014-09 , revenue from contracts with customers ( topic 606 ) , ( โ asc topic 606 โ ) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers . asc topic 606 replaces most existing revenue recognition guidance in u.s. generally accepted accounting principles . in addition , the standard requires disclosure of the nature , amount , timing , and uncertainty of revenue and cash flows arising from the contracts with customers . impact of new lease accounting standard in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) , ( โ asu 2016-02 โ ) . the purpose of asu 2016-02 is to provide financial statement users a better understanding of the amount , timing , and uncertainty of cash flows arising from leases . the adoption of asu 2016-02 will result in the recognition of a right-of-use asset and a lease liability for most operating leases . new disclosure requirements include qualitative and quantitative information about the amounts recorded in the financial statements related to leases . asu 2016-02 is effective for fiscal years beginning after december 15 , 2018. asu 2016-02 requires a modified retrospective transition by means of a cumulative-effect adjustment to retained earnings as of the earliest period presented with the option to elect certain practical expedients . in july 2018 , the fasb issued asu 2018-10 , codification improvements to topic 842 , leases ( โ asu 2018-10 โ ) . in july 2018 , the fasb issued asu 2018-11 , leases ( topic 842 ) , targeted improvements ( โ asu 2018-11 โ ) . asu 2018-11 provides an additional transition method to adopt asu 2016-02. under this new transition method , an entity initially applies asu 2016-02 at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption . this additional transition method changes only when an entity is required to initially apply the transition requirements outlined in asu 2016-02 ; it does not change how those requirements are applied . we used the transition method outlined in asu 2018-11 upon adoption . we adopted asc topic 842 and the related amendments in asu 2016-02 and asu 2018-11 ( collectively referred to herein as โ the new leasing standard โ ) effective january 1 , 2019. we are finalizing its evaluation of the impact of the new leasing standard on our consolidated financial statements , and expect the most significant impacts to be as follows : 1. we will recognize liabilities representing the present value of the remaining future minimum lease payments for all of our operating leases as of january 1 , 2019. we estimate these liabilities will be between $ 1.4 billion and $ 1.7 billion . 2. we will recognize right of use assets for all of our operating leases equal to the liabilities calculated in ( 1 ) above , adjusted for the balances of long-term prepaid rent , favorable lease intangible assets , deferred lease expense , unfavorable lease liabilities and deferred lease incentive liabilities as of january 1 , 2019 . 3. we have theatre leases in which we were involved in construction that failed sale-leaseback accounting at the end of the construction period . these leases , which were accounted for as capital leases , will be derecognized upon adoption of the new leasing standard and evaluated to determine classification upon adoption . some of these leases will be classified as operating leases upon adoption and , beginning in 2019 , lease payments for these leases will be recorded as facility lease expense on the consolidated income statement . previously , as capital leases , lease payments were classified as interest expense and reductions of the capital lease obligations . 4. for the capital leases derecognized as discussed in ( 3 ) above , we will write-off the net book value of the capital lease asset and capital lease liability , with the difference between those amounts resulting in an adjustment to beginning retained earnings as of january 1 , 2019. recent developments on february 22 , 2019 , our board of directors approved a cash dividend for the fourth quarter of 2018 of $ 0.34 per share of common stock is payable to stockholders of record on march 8 , 2019 , and will be paid on march 22 , 2019 . 31 results of operations the following table sets forth , for the periods indicated , the amounts for certain items reflected in our consolidated statements of income along with each of those items as a percentage of revenues . replace_table_token_8_th ( 1 ) all costs are expressed as a percentage of total revenues , except film rentals and advertising , which are expressed as a percentage of admissions revenues and concession supplies , which are expressed as a percentage of concession revenues . 32 comparis on of years ended december 31 , 2018 and december 31 , 2017 revenues . total revenues increased $ 230.2 million to $ 3,221.8 million for 2018 from $ 2,991.6 million for 2017 , representing a 7.7 % increase . the table below , presented by reportable operating segment , summarizes our year-over-year revenue performance and certain key performance indicators that impact our revenues . replace_table_token_9_th ( 1 ) revenue and attendance amounts in millions . average ticket price is calculated as admissions revenues divided by attendance . concession revenues per patron is calculated as concession revenues divided by attendance . ( 2 ) u.s. operating segment revenues include eliminations of intercompany transactions with the international operating segment . see note 19 of our consolidated financial statements . ( 3 ) constant currency revenue amounts , which are non-gaap measurements , were
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2,316 | the fda has granted a standard review for the nda and has set a target review date under the prescription drug user fee act , or pdufa , of october 24 , 2017. the pdufa date is the goal date for the fda to complete its review of the nda , however , such date is not binding on the agency and there can be no assurance that the fda will complete its review of our nda by the pdufa goal date . filing over protest is a procedural path permitted by fda regulations that allows a company to have its nda filed and reviewed when there is a disagreement with regulators over the acceptability of the nda submission . the nda , which seeks approval of translarna for the treatment of nmdmd in the united states , was initially submitted by us in december 2015. in february 2016 , following our initial submission , we received a refuse to file letter from the fda stating that our nda was not sufficiently complete to permit a substantive review . specifically , we were notified in the letter that , in the view of the fda , both the phase 2b and phase 3 act dmd trials were negative and do not provide substantial evidence of effectiveness and that our nda did not contain adequate information regarding the abuse potential of translarna . additionally , the fda stated that we had proposed a post-hoc adjustment of act dmd that eliminates data from a majority of enrolled patients . during july 2016 , we appealed the refuse to file decision via the fda 's formal dispute resolution process , however , this appeal was denied by the fda 's office of drug evaluation i in october 2016. there is significant risk that , notwithstanding any dialogue we have had or any further dialogue we may be able to initiate with the fda , pursuant to the file over protest process or otherwise , the agency will continue to disagree with our interpretation of the results of act dmd and the totality of clinical data from our trials , and will not grant marketing approval for translarna for the treatment of nmdmd . in march 2016 , following receipt of the refuse to file letter , we commenced implementation of a reorganization of our operations intended to improve efficiency and better align our costs and employment structure with our strategic plans . we completed the reorganization in june 2016 and recorded a one-time charge of $ 2.5 million for the year ended december 31 , 2016 for severance and related workforce reduction expenses . 84 on march 2 , 2017 , we announced that the primary and secondary endpoints were not achieved in act cf , our phase 3 double-blind , placebo-controlled , 48-week clinical trial comparing translarna to placebo in nmcf patients six years of age or older not receiving chronic inhaled aminoglycosides . the safety profile of translarna in the act cf study was consistent with previous studies and no new safety signals were identified . based on the results of act cf , we plan to discontinue our current clinical development of translarna for nmcf and close ongoing extension studies of translarna for the treatment of nmcf . we have withdrawn our type ii variation submission with the ema , which sought approval of translarna for the treatment of nmcf in the eea . based on its understood mechanism of action , we believe that translarna may have benefit in the treatment of patients with genetic disorders that arise as a result of a nonsense mutation . we are pursuing studies for translarna in additional indications : mucopolysaccharidosis type i caused by nonsense mutation , or nmmps i , nonsense mutation aniridia , and nonsense mutation dravet syndrome/cdkl5 . we continue to advance the development of our spinal muscular atrophy , or sma , collaboration with f. hoffman-la roche ltd and hoffman-la roche inc. , which we refer to collectively as roche , and the spinal muscular atrophy foundation , or sma foundation . sunfish , a two-part clinical study in pediatric and adult type 2 and type 3 sma patients initiated in the fourth quarter of 2016 , followed by the initiation of firefish , a two-part clinical study in infants with type 1 sma . both sunfish and firefish are investigating the safety , tolerability and efficacy of the compound rg7916 in the applicable patient populations . part one of each study is a dose-finding study with the primary objectives of evaluating the safety , pharmacokinetics , or pk , and pharmacodynamics of rg7916 in patients and to select the dose for part two of the applicable study . part one of each study is expected to be followed by a pivotal part two with the primary objective of evaluating the efficacy of rg7916 . commencement of the pivotal part two portion of either sunfish or firefish will trigger a single $ 20 million milestone payment to us from roche . we anticipate that both sunfish and firefish will move into the pivotal second part of the respective study during 2017. in addition , we have a pipeline of product candidates that are in early clinical and preclinical development . a phase 1 first-in-human , dose-escalation safety and pk open-label clinical study for our product candidate , ptc596 , in advanced cancer patients with solid tumors recently completed . data from this study is expected during 2017. on march 16 , 2017 , we announced that we have entered into an asset purchase agreement with marathon pharmaceuticals , llc , under which we have agreed to acquire all rights to emflaza tm ( deflazacort ) , subject to the satisfaction or waiver of certain conditions . emflaza received approval from the fda on february 9 , 2017 as a treatment of duchenne muscular dystrophy in patients five years of age and older . story_separator_special_tag if not substantive , the contingent consideration is allocated to the existing units of accounting based on relative selling price and recognized following the same basis previously established for the associated unit of accounting . we recognize reimbursements for research and development costs under collaboration agreements as revenue as the services are performed . we record these reimbursements as revenue and not as a reduction of research and development expenses as we have the risks and rewards as the principal in the research and development activities . our principal obligation under our grant agreements is to conduct the internal or external research in the specific field funded by the grant . we determine , through the grant 's normal research process , which research and development projects to pursue . we recognize grant revenues as the research activities are performed . if the grant includes an upfront payment , we defer the amount and recognize it as revenue as the expenditures are incurred . inventories and cost of product revenues in 2014 , we were notified that the european commission granted marketing authorization for translarna for the treatment of nmdmd in ambulatory patients aged five years and older . the conditional marketing authorization allows us to market translarna for the treatment of nmdmd in the 31 member states of the eea . our launch in these countries is on a country by country basis . this marketing authorization is subject to annual review and renewal by the european commission following reassessment by the ema of the benefit-risk balance of the authorization , as well as our satisfaction of any specific obligation or other requirement placed upon the marketing authorization , including conducting and reporting results from study 041 , as described below . in january 2016 , we submitted the final clinical study report from act dmd to the ema in fulfillment of the initial specific obligation placed on our marketing authorization . the primary efficacy endpoint of act dmd was not achieved with statistical significance . we made our submission to the ema as a type ii variation request that sought to have this initial specific obligation to our marketing authorization removed and a full marketing authorization granted . in february 2016 , we also submitted a marketing authorization renewal request with the ema . in january 2017 , the european commission renewed our marketing authorization , subject to the specific obligation to conduct study 041. because the ema did not grant our request for full marketing authorization , the authorization remains subject to annual ema reassessment . the last granted marketing authorization renewal is effective , unless extended , through august 5 , 2017. we submitted a marketing authorization renewal request to the ema in february 2017. we plan to seek to renew the marketing authorization on an annual basis until a marketing authorization that is not subject to any specific obligation is granted , if ever . if , in any annual renewal cycle , the ema determines that the balance of benefits and risks of using translarna for the treatment of nmdmd has changed materially or that we have not or are unable to comply with any specific obligation or other requirement that has been or may be placed on the marketing authorization , the european commission could , at the ema 's recommendation , vary , suspend , withdraw or refuse to renew the marketing authorization for translarna or impose other specific obligations or restrictions on the marketing authorization . although there continues to be substantial risk that regulators could , in the future , suspend or not renew our marketing authorization in the eea for translarna for the treatment of nmdmd , we have determined that we will capitalize inventory with respect to the translarna finished product for commercial use effective january 1 , 2017 and commence the expensing of 89 cost of goods sold based on the marketing authorization renewal granted by the ec . had we capitalized as inventory all of our translarna product that is available for commercial sale on hand as of december 31 , 2016 , the value of that inventory would have been approximately $ 1.7 million . in addition , had we expensed the cost of translarna product sold as a cost of sales , the gross profit margin would have been greater than 90 % , which we believe is consistent with the cost of producing small molecule therapeutics for orphan drug diseases in the pharmaceutical industry . accrued expenses as part of the process of preparing our financial statements , we are required to estimate accrued expenses . this process involves communicating with our applicable personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual cost . the majority of our service providers invoice us monthly in arrears for services performed . we make estimates of our accrued expenses as of each balance sheet date in our financial statements based on facts and circumstances known to us . examples of estimated accrued expenses include : fees paid to contract research organizations in connection with preclinical and toxicology studies and clinical trials ; fees paid to investigative sites in connection with clinical trials ; fees paid to contract manufacturers in connection with the production of clinical trial materials ; and professional service fees . share-based compensation we expect to grant additional stock options that will result in additional share-based compensation expense . we measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award . for service type awards , share-based compensation expense is recognized on a straight-line basis over the period during which the employee is required to provide service in exchange for the entire award . for awards that vest or begin
| sources of liquidity since inception , we have incurred significant operating losses . as a growing commercial-stage biopharmaceutical company , we are engaging in significant commercialization efforts for translarna for nmdmd while also devoting a substantial portion of our efforts on research and development programs related to translarna and our other product candidates . to date , all of our product revenue has been attributable to sales of translarna for the treatment of nmdmd in territories outside of the united states . our ongoing ability to generate revenue from sales of translarna for the treatment of nmdmd is dependent upon our ability to maintain our marketing authorization in the eea and secure market access through commercial programs following the conclusion of pricing and reimbursement terms at sustainable levels in the member states of the eea or through eap programs in the eea and other territories . the marketing authorization requires annual review and renewal by the european commission following reassessment by the ema of the benefit-risk balance of the authorization and is subject to the specific obligation to conduct study 041. we have historically financed our operations primarily through the issuance and sale of our common stock in public offerings , the private placements of our preferred stock , collaborations , bank debt , convertible debt financings and grants and clinical trial support from governmental and philanthropic organizations and patient advocacy groups in the disease areas addressed by our product candidates . we expect to continue to incur significant expenses and operating losses for at least the next several years . the net losses we incur may fluctuate significantly from quarter to quarter .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```sources of liquidity since inception , we have incurred significant operating losses . as a growing commercial-stage biopharmaceutical company , we are engaging in significant commercialization efforts for translarna for nmdmd while also devoting a substantial portion of our efforts on research and development programs related to translarna and our other product candidates . to date , all of our product revenue has been attributable to sales of translarna for the treatment of nmdmd in territories outside of the united states . our ongoing ability to generate revenue from sales of translarna for the treatment of nmdmd is dependent upon our ability to maintain our marketing authorization in the eea and secure market access through commercial programs following the conclusion of pricing and reimbursement terms at sustainable levels in the member states of the eea or through eap programs in the eea and other territories . the marketing authorization requires annual review and renewal by the european commission following reassessment by the ema of the benefit-risk balance of the authorization and is subject to the specific obligation to conduct study 041. we have historically financed our operations primarily through the issuance and sale of our common stock in public offerings , the private placements of our preferred stock , collaborations , bank debt , convertible debt financings and grants and clinical trial support from governmental and philanthropic organizations and patient advocacy groups in the disease areas addressed by our product candidates . we expect to continue to incur significant expenses and operating losses for at least the next several years . the net losses we incur may fluctuate significantly from quarter to quarter .
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Suspicious Activity Report : the fda has granted a standard review for the nda and has set a target review date under the prescription drug user fee act , or pdufa , of october 24 , 2017. the pdufa date is the goal date for the fda to complete its review of the nda , however , such date is not binding on the agency and there can be no assurance that the fda will complete its review of our nda by the pdufa goal date . filing over protest is a procedural path permitted by fda regulations that allows a company to have its nda filed and reviewed when there is a disagreement with regulators over the acceptability of the nda submission . the nda , which seeks approval of translarna for the treatment of nmdmd in the united states , was initially submitted by us in december 2015. in february 2016 , following our initial submission , we received a refuse to file letter from the fda stating that our nda was not sufficiently complete to permit a substantive review . specifically , we were notified in the letter that , in the view of the fda , both the phase 2b and phase 3 act dmd trials were negative and do not provide substantial evidence of effectiveness and that our nda did not contain adequate information regarding the abuse potential of translarna . additionally , the fda stated that we had proposed a post-hoc adjustment of act dmd that eliminates data from a majority of enrolled patients . during july 2016 , we appealed the refuse to file decision via the fda 's formal dispute resolution process , however , this appeal was denied by the fda 's office of drug evaluation i in october 2016. there is significant risk that , notwithstanding any dialogue we have had or any further dialogue we may be able to initiate with the fda , pursuant to the file over protest process or otherwise , the agency will continue to disagree with our interpretation of the results of act dmd and the totality of clinical data from our trials , and will not grant marketing approval for translarna for the treatment of nmdmd . in march 2016 , following receipt of the refuse to file letter , we commenced implementation of a reorganization of our operations intended to improve efficiency and better align our costs and employment structure with our strategic plans . we completed the reorganization in june 2016 and recorded a one-time charge of $ 2.5 million for the year ended december 31 , 2016 for severance and related workforce reduction expenses . 84 on march 2 , 2017 , we announced that the primary and secondary endpoints were not achieved in act cf , our phase 3 double-blind , placebo-controlled , 48-week clinical trial comparing translarna to placebo in nmcf patients six years of age or older not receiving chronic inhaled aminoglycosides . the safety profile of translarna in the act cf study was consistent with previous studies and no new safety signals were identified . based on the results of act cf , we plan to discontinue our current clinical development of translarna for nmcf and close ongoing extension studies of translarna for the treatment of nmcf . we have withdrawn our type ii variation submission with the ema , which sought approval of translarna for the treatment of nmcf in the eea . based on its understood mechanism of action , we believe that translarna may have benefit in the treatment of patients with genetic disorders that arise as a result of a nonsense mutation . we are pursuing studies for translarna in additional indications : mucopolysaccharidosis type i caused by nonsense mutation , or nmmps i , nonsense mutation aniridia , and nonsense mutation dravet syndrome/cdkl5 . we continue to advance the development of our spinal muscular atrophy , or sma , collaboration with f. hoffman-la roche ltd and hoffman-la roche inc. , which we refer to collectively as roche , and the spinal muscular atrophy foundation , or sma foundation . sunfish , a two-part clinical study in pediatric and adult type 2 and type 3 sma patients initiated in the fourth quarter of 2016 , followed by the initiation of firefish , a two-part clinical study in infants with type 1 sma . both sunfish and firefish are investigating the safety , tolerability and efficacy of the compound rg7916 in the applicable patient populations . part one of each study is a dose-finding study with the primary objectives of evaluating the safety , pharmacokinetics , or pk , and pharmacodynamics of rg7916 in patients and to select the dose for part two of the applicable study . part one of each study is expected to be followed by a pivotal part two with the primary objective of evaluating the efficacy of rg7916 . commencement of the pivotal part two portion of either sunfish or firefish will trigger a single $ 20 million milestone payment to us from roche . we anticipate that both sunfish and firefish will move into the pivotal second part of the respective study during 2017. in addition , we have a pipeline of product candidates that are in early clinical and preclinical development . a phase 1 first-in-human , dose-escalation safety and pk open-label clinical study for our product candidate , ptc596 , in advanced cancer patients with solid tumors recently completed . data from this study is expected during 2017. on march 16 , 2017 , we announced that we have entered into an asset purchase agreement with marathon pharmaceuticals , llc , under which we have agreed to acquire all rights to emflaza tm ( deflazacort ) , subject to the satisfaction or waiver of certain conditions . emflaza received approval from the fda on february 9 , 2017 as a treatment of duchenne muscular dystrophy in patients five years of age and older . story_separator_special_tag if not substantive , the contingent consideration is allocated to the existing units of accounting based on relative selling price and recognized following the same basis previously established for the associated unit of accounting . we recognize reimbursements for research and development costs under collaboration agreements as revenue as the services are performed . we record these reimbursements as revenue and not as a reduction of research and development expenses as we have the risks and rewards as the principal in the research and development activities . our principal obligation under our grant agreements is to conduct the internal or external research in the specific field funded by the grant . we determine , through the grant 's normal research process , which research and development projects to pursue . we recognize grant revenues as the research activities are performed . if the grant includes an upfront payment , we defer the amount and recognize it as revenue as the expenditures are incurred . inventories and cost of product revenues in 2014 , we were notified that the european commission granted marketing authorization for translarna for the treatment of nmdmd in ambulatory patients aged five years and older . the conditional marketing authorization allows us to market translarna for the treatment of nmdmd in the 31 member states of the eea . our launch in these countries is on a country by country basis . this marketing authorization is subject to annual review and renewal by the european commission following reassessment by the ema of the benefit-risk balance of the authorization , as well as our satisfaction of any specific obligation or other requirement placed upon the marketing authorization , including conducting and reporting results from study 041 , as described below . in january 2016 , we submitted the final clinical study report from act dmd to the ema in fulfillment of the initial specific obligation placed on our marketing authorization . the primary efficacy endpoint of act dmd was not achieved with statistical significance . we made our submission to the ema as a type ii variation request that sought to have this initial specific obligation to our marketing authorization removed and a full marketing authorization granted . in february 2016 , we also submitted a marketing authorization renewal request with the ema . in january 2017 , the european commission renewed our marketing authorization , subject to the specific obligation to conduct study 041. because the ema did not grant our request for full marketing authorization , the authorization remains subject to annual ema reassessment . the last granted marketing authorization renewal is effective , unless extended , through august 5 , 2017. we submitted a marketing authorization renewal request to the ema in february 2017. we plan to seek to renew the marketing authorization on an annual basis until a marketing authorization that is not subject to any specific obligation is granted , if ever . if , in any annual renewal cycle , the ema determines that the balance of benefits and risks of using translarna for the treatment of nmdmd has changed materially or that we have not or are unable to comply with any specific obligation or other requirement that has been or may be placed on the marketing authorization , the european commission could , at the ema 's recommendation , vary , suspend , withdraw or refuse to renew the marketing authorization for translarna or impose other specific obligations or restrictions on the marketing authorization . although there continues to be substantial risk that regulators could , in the future , suspend or not renew our marketing authorization in the eea for translarna for the treatment of nmdmd , we have determined that we will capitalize inventory with respect to the translarna finished product for commercial use effective january 1 , 2017 and commence the expensing of 89 cost of goods sold based on the marketing authorization renewal granted by the ec . had we capitalized as inventory all of our translarna product that is available for commercial sale on hand as of december 31 , 2016 , the value of that inventory would have been approximately $ 1.7 million . in addition , had we expensed the cost of translarna product sold as a cost of sales , the gross profit margin would have been greater than 90 % , which we believe is consistent with the cost of producing small molecule therapeutics for orphan drug diseases in the pharmaceutical industry . accrued expenses as part of the process of preparing our financial statements , we are required to estimate accrued expenses . this process involves communicating with our applicable personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual cost . the majority of our service providers invoice us monthly in arrears for services performed . we make estimates of our accrued expenses as of each balance sheet date in our financial statements based on facts and circumstances known to us . examples of estimated accrued expenses include : fees paid to contract research organizations in connection with preclinical and toxicology studies and clinical trials ; fees paid to investigative sites in connection with clinical trials ; fees paid to contract manufacturers in connection with the production of clinical trial materials ; and professional service fees . share-based compensation we expect to grant additional stock options that will result in additional share-based compensation expense . we measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award . for service type awards , share-based compensation expense is recognized on a straight-line basis over the period during which the employee is required to provide service in exchange for the entire award . for awards that vest or begin
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2,317 | we continuously monitor our market share in the 18 to 33 foot sterndrive category as one indicator of the success of our strategies and the market 's acceptance of our products . for the nine months ended september 30 , 2016 ( latest data available to us ) , chaparral 's market share in the 18 to 33 foot sterndrive category was 14.7 percent compared to 13.9 percent during the same period in 2015 ; the highest market share in this category . chaparral 's market share in the 18 to 20 foot category was 10.1 percent during this period in 2016 , and its market share in the 21 to 33 foot category was 17.4 percent . chaparral 's market share concentrations within these size ranges has remained relatively consistent during the past several years . for the nine months ended september 30 , 2016 , robalo 's share of the 16 to 30 foot outboard sport fishing boat market was 4.6 percent . for the same period , chaparral 's share of the 20 to 24 foot jet boat market was approximately 8.9 percent . we will continue to monitor our market share and believe it to be important , but we believe that maximizing profitability takes precedence over growing our market share . furthermore , as we continue to expand the breadth of our product offerings within our core category and new categories , we consider our overall market share across the various powerboat categories to be of greater importance to the long-term health of our company than our market share within any specific type of recreational boat . 20 outlook we believe that recreational boating retail demand in many segments of the industry is improving . attendance and sales during the 2017 winter boat shows have been moderately higher than the 2016 winter boat show season , residential real estate markets have improved , consumer confidence has stabilized , and fuel prices have declined . we also believe that there is improved demand from consumers who have delayed purchasing a boat over the past few years due to economic uncertainty . although industry wide retail boat sales remain lower than they were prior to the 2008 financial crisis , retail boat sales have increased each year since 2011. we believe that continued improvements in retail boat sales will be modest due to the lack of strong economic improvement , which tends to discourage consumers from purchasing large discretionary goods such as pleasure boats . fluctuations in fuel prices can impact our sales , and during 2015 and 2016 fuel prices decreased significantly , and have declined to some of the lowest inflation-adjusted levels recorded during the past 10 years . in general , however , the overall cost of boat ownership has increased , especially in the sterndrive recreational boat market segment , which comprises approximately 42 percent of the company 's sales . the higher cost of boat ownership discourages consumers from purchasing recreational boats . for a number of years , marine products as well as other boat manufacturers have been improving their customer service capabilities , marketing strategies and sales promotions in order to attract more consumers to recreational boating as well as improve consumers ' boating experiences . the company provides financial incentives to its dealers for receiving favorable customer satisfaction surveys . in addition , the recreational boating industry conducts a promotional program which involves advertising and consumer targeting efforts , as well as other activities designed to increase the potential consumer market for pleasure boats . many manufacturers , including marine products , participate in this program . management believes that these efforts have incrementally benefited the industry and marine products . as in past years , marine products enhanced its selection of models for the 2017 model year which began on july 1 , 2016. we continue to emphasize the value-priced chaparral and robalo models , as well as the surf series , a new line of chaparral models first introduced for the 2017 model year . in addition , we continue to experience a favorable consumer reception to our chaparral vortex jet boats and chaparral suncoast outboard boats . we believe that these boat models will expand our customer base , and leverage our strong dealer network and reputation for quality and styling . during 2016 we also expanded our nationally advertised fixed retail pricing to include more of our models . we plan to continue to develop and produce additional new products for subsequent model years . our financial results for 2017 will depend on a number of factors , including interest rates , consumer confidence , the availability of credit to our dealers and consumers , fuel costs , the continued acceptance of our new products in the recreational boating market , our ability to compete in the competitive pleasure boating industry , and the costs of labor and certain of our raw materials and key components . 21 results of operations replace_table_token_4_th year ended december 31 , 2016 compared to year ended december 31 , 2015 net sales . marine products ' net sales increased by $ 34.3 million or 16.6 percent in 2016 compared to 2015. the increase was primarily due to a 17.8 percent increase in the number of boats sold , as well as an increase in parts and accessories sales , partially offset by a 3.0 percent decrease in the average gross selling price per boat . unit sales increased due to higher sales of our robalo outboard sport fishing boats , as well as increased unit sales of our chaparral h20 models and suncoast outboards . average selling prices decreased primarily due to a model mix which included higher sales of our value priced h2o models . domestic net sales were $ 220.1 million , an increase of 19.2 percent compared to the prior year . story_separator_special_tag income taxes - the effective income tax rate was 28.5 percent in 2016 , 31.8 percent in 2015 , and 28.8 percent in 2014. the effective tax rates vary due to changes in estimates of future taxable income , fluctuations in the tax jurisdictions in which the earnings and deductions are realized , variations in the relationship of tax-exempt income or losses to income before taxes and favorable or unfavorable adjustments to estimated tax liabilities related to proposed or probable assessments . as a result , the effective tax rate may fluctuate significantly on a quarterly or annual basis . the company establishes a valuation allowance against the carrying value of deferred tax assets when it is determined that it is more likely than not that the asset will not be realized through future taxable income . such amounts are charged to earnings in the period the determination is made . likewise , if it is later determined that it is more likely than not that the net deferred tax assets would be realized , the applicable portion of the previously provided valuation allowance is reversed . the company considers future market growth , forecasted earnings , future taxable income , the mix of earnings in the jurisdictions in which the company operates , and prudent and feasible tax planning strategies in determining the need for a valuation allowance . the company calculates the current and deferred tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed during the subsequent year . adjustments based on filed tax returns are recorded when identified , which is generally in the third quarter of the subsequent year for u.s. federal and state provisions . deferred tax liabilities and assets are determined based on the differences between the financial and tax bases of assets and liabilities using enacted tax rates in effect in the year the differences are expected to reverse . 26 the amount of income taxes the company pays is subject to ongoing audits by federal and state tax authorities , which often result in proposed assessments . our estimate for the potential outcome for any uncertain tax issue is highly judgmental . the company believes it has adequately provided for any reasonably foreseeable outcome related to these matters . however , future results may include favorable or unfavorable adjustments to estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire . additionally , the jurisdictions in which earnings or deductions are realized may differ from current estimates . impact of recent accounting pronouncements : during the year ended december 31 , 2016 , the financial accounting standards board ( fasb ) issued the following accounting standards updates ( asus ) : recently adopted accounting pronouncements : ยท accounting standards update ( asu ) no . 2015-16 , business combinations ( topic 805 ) : simplifying the accounting for measurement-period adjustments . the amendments eliminate the requirement to retrospectively account for adjustments made to provisional amounts recognized in a business combination . a djustments to provisional amounts that are identified during the measurement period are required to be recognized in the reporting period in which the adjustments are determined and calculated as if the accounting had been completed at the acquisition date and either disclosed on the face of the income statement or in the notes by each category . the company adopted these provisions in the first quarter of 2016 and plans to apply the provisions for all future business combinations . t he adoption did not have a material impact on the company 's consolidated financial statements . ยท asu no . 2015-07 , fair value measurement ( topic 820 ) : disclosures for investments in certain entities that calculate net asset value per share ( or its equivalent ) . the amendments remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share ( or its equivalent ) practical expedient . in addition , there is no requirement to make certain disclosures for such investments . the company adopted these provisions in the first quarter of 2016 applied retrospectively and has excluded the pension assets that are measured using the net asset value per share from the fair value hierarchy disclosure . t he adoption did not have a material impact on the company 's consolidated financial statements . ยท asu no . 2014-15 , presentation of financial statements โgoing concern ( subtopic 205-40 ) : disclosure of uncertainties about an entity 's ability to continue as a going concern . f inancial statements are generally prepared under the presumption that the reporting organization will continue to operate as a going concern , except in limited circumstances . this asu provides guidance on management 's responsibility to include footnote disclosures when there is substantial doubt about the organization 's ability to continue as a going concern . the company adopted these provisions in the first quarter of 2016 and will provide such disclosures as required if there are conditions and events that raise substantial doubt about its ability to continue as a going concern . the adoption did not have a material impact on the company 's consolidated financial statements . recently issued accounting pronouncements not yet adopted : to be adopted in 2017 : ยท asu no . 2015-11 , inventory ( topic 330 ) : simplifying the measurement of inventory . current requirements are to measure inventory at the lower of cost or market . market could be replacement cost , net realizable value , or net realizable value less an approximated normal profit margin . these amendments allow inventory to be measured at lower of cost or net realizable value and eliminates the market requirement . net realizable value is the estimated selling price in the ordinary course of business ,
| liquidity and capital resources cash and cash flows the company 's cash and cash equivalents were $ 2.6 million at december 31 , 2016 , $ 8.0 million at december 31 , 2015 and $ 4.1 million at december 31 , 2014. in addition , the aggregate of short-term and long-term marketable securities was $ 9.3 million at december 31 , 2016 , $ 35.0 million at december 31 , 2015 and $ 37.5 million at december 31 , 2014. the decline in marketable securities in 2016 was due to the liquidation of a portion of the portfolio during the fourth quarter to fund the tender offer as discussed in item 5 on page 17. the following table sets forth the historical cash flows for the twelve months ended december 31 : replace_table_token_5_th 2016 cash provided by operating activities decreased by $ 0.2 million in 2016 compared to 2015. this decrease was primarily due to a net unfavorable change in working capital , partially offset by an increase in net income . the major components of the net unfavorable change in working capital were as follows : a favorable change in accounts payable of $ 1.4 million due to the timing of payments ; an unfavorable change of $ 6.0 million in inventories to support higher production levels in the current year ; and a $ 1.8 million favorable change in other accrued expenses largely attributable to the timing of payments related to retail incentives and warranty claims .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources cash and cash flows the company 's cash and cash equivalents were $ 2.6 million at december 31 , 2016 , $ 8.0 million at december 31 , 2015 and $ 4.1 million at december 31 , 2014. in addition , the aggregate of short-term and long-term marketable securities was $ 9.3 million at december 31 , 2016 , $ 35.0 million at december 31 , 2015 and $ 37.5 million at december 31 , 2014. the decline in marketable securities in 2016 was due to the liquidation of a portion of the portfolio during the fourth quarter to fund the tender offer as discussed in item 5 on page 17. the following table sets forth the historical cash flows for the twelve months ended december 31 : replace_table_token_5_th 2016 cash provided by operating activities decreased by $ 0.2 million in 2016 compared to 2015. this decrease was primarily due to a net unfavorable change in working capital , partially offset by an increase in net income . the major components of the net unfavorable change in working capital were as follows : a favorable change in accounts payable of $ 1.4 million due to the timing of payments ; an unfavorable change of $ 6.0 million in inventories to support higher production levels in the current year ; and a $ 1.8 million favorable change in other accrued expenses largely attributable to the timing of payments related to retail incentives and warranty claims .
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Suspicious Activity Report : we continuously monitor our market share in the 18 to 33 foot sterndrive category as one indicator of the success of our strategies and the market 's acceptance of our products . for the nine months ended september 30 , 2016 ( latest data available to us ) , chaparral 's market share in the 18 to 33 foot sterndrive category was 14.7 percent compared to 13.9 percent during the same period in 2015 ; the highest market share in this category . chaparral 's market share in the 18 to 20 foot category was 10.1 percent during this period in 2016 , and its market share in the 21 to 33 foot category was 17.4 percent . chaparral 's market share concentrations within these size ranges has remained relatively consistent during the past several years . for the nine months ended september 30 , 2016 , robalo 's share of the 16 to 30 foot outboard sport fishing boat market was 4.6 percent . for the same period , chaparral 's share of the 20 to 24 foot jet boat market was approximately 8.9 percent . we will continue to monitor our market share and believe it to be important , but we believe that maximizing profitability takes precedence over growing our market share . furthermore , as we continue to expand the breadth of our product offerings within our core category and new categories , we consider our overall market share across the various powerboat categories to be of greater importance to the long-term health of our company than our market share within any specific type of recreational boat . 20 outlook we believe that recreational boating retail demand in many segments of the industry is improving . attendance and sales during the 2017 winter boat shows have been moderately higher than the 2016 winter boat show season , residential real estate markets have improved , consumer confidence has stabilized , and fuel prices have declined . we also believe that there is improved demand from consumers who have delayed purchasing a boat over the past few years due to economic uncertainty . although industry wide retail boat sales remain lower than they were prior to the 2008 financial crisis , retail boat sales have increased each year since 2011. we believe that continued improvements in retail boat sales will be modest due to the lack of strong economic improvement , which tends to discourage consumers from purchasing large discretionary goods such as pleasure boats . fluctuations in fuel prices can impact our sales , and during 2015 and 2016 fuel prices decreased significantly , and have declined to some of the lowest inflation-adjusted levels recorded during the past 10 years . in general , however , the overall cost of boat ownership has increased , especially in the sterndrive recreational boat market segment , which comprises approximately 42 percent of the company 's sales . the higher cost of boat ownership discourages consumers from purchasing recreational boats . for a number of years , marine products as well as other boat manufacturers have been improving their customer service capabilities , marketing strategies and sales promotions in order to attract more consumers to recreational boating as well as improve consumers ' boating experiences . the company provides financial incentives to its dealers for receiving favorable customer satisfaction surveys . in addition , the recreational boating industry conducts a promotional program which involves advertising and consumer targeting efforts , as well as other activities designed to increase the potential consumer market for pleasure boats . many manufacturers , including marine products , participate in this program . management believes that these efforts have incrementally benefited the industry and marine products . as in past years , marine products enhanced its selection of models for the 2017 model year which began on july 1 , 2016. we continue to emphasize the value-priced chaparral and robalo models , as well as the surf series , a new line of chaparral models first introduced for the 2017 model year . in addition , we continue to experience a favorable consumer reception to our chaparral vortex jet boats and chaparral suncoast outboard boats . we believe that these boat models will expand our customer base , and leverage our strong dealer network and reputation for quality and styling . during 2016 we also expanded our nationally advertised fixed retail pricing to include more of our models . we plan to continue to develop and produce additional new products for subsequent model years . our financial results for 2017 will depend on a number of factors , including interest rates , consumer confidence , the availability of credit to our dealers and consumers , fuel costs , the continued acceptance of our new products in the recreational boating market , our ability to compete in the competitive pleasure boating industry , and the costs of labor and certain of our raw materials and key components . 21 results of operations replace_table_token_4_th year ended december 31 , 2016 compared to year ended december 31 , 2015 net sales . marine products ' net sales increased by $ 34.3 million or 16.6 percent in 2016 compared to 2015. the increase was primarily due to a 17.8 percent increase in the number of boats sold , as well as an increase in parts and accessories sales , partially offset by a 3.0 percent decrease in the average gross selling price per boat . unit sales increased due to higher sales of our robalo outboard sport fishing boats , as well as increased unit sales of our chaparral h20 models and suncoast outboards . average selling prices decreased primarily due to a model mix which included higher sales of our value priced h2o models . domestic net sales were $ 220.1 million , an increase of 19.2 percent compared to the prior year . story_separator_special_tag income taxes - the effective income tax rate was 28.5 percent in 2016 , 31.8 percent in 2015 , and 28.8 percent in 2014. the effective tax rates vary due to changes in estimates of future taxable income , fluctuations in the tax jurisdictions in which the earnings and deductions are realized , variations in the relationship of tax-exempt income or losses to income before taxes and favorable or unfavorable adjustments to estimated tax liabilities related to proposed or probable assessments . as a result , the effective tax rate may fluctuate significantly on a quarterly or annual basis . the company establishes a valuation allowance against the carrying value of deferred tax assets when it is determined that it is more likely than not that the asset will not be realized through future taxable income . such amounts are charged to earnings in the period the determination is made . likewise , if it is later determined that it is more likely than not that the net deferred tax assets would be realized , the applicable portion of the previously provided valuation allowance is reversed . the company considers future market growth , forecasted earnings , future taxable income , the mix of earnings in the jurisdictions in which the company operates , and prudent and feasible tax planning strategies in determining the need for a valuation allowance . the company calculates the current and deferred tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed during the subsequent year . adjustments based on filed tax returns are recorded when identified , which is generally in the third quarter of the subsequent year for u.s. federal and state provisions . deferred tax liabilities and assets are determined based on the differences between the financial and tax bases of assets and liabilities using enacted tax rates in effect in the year the differences are expected to reverse . 26 the amount of income taxes the company pays is subject to ongoing audits by federal and state tax authorities , which often result in proposed assessments . our estimate for the potential outcome for any uncertain tax issue is highly judgmental . the company believes it has adequately provided for any reasonably foreseeable outcome related to these matters . however , future results may include favorable or unfavorable adjustments to estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire . additionally , the jurisdictions in which earnings or deductions are realized may differ from current estimates . impact of recent accounting pronouncements : during the year ended december 31 , 2016 , the financial accounting standards board ( fasb ) issued the following accounting standards updates ( asus ) : recently adopted accounting pronouncements : ยท accounting standards update ( asu ) no . 2015-16 , business combinations ( topic 805 ) : simplifying the accounting for measurement-period adjustments . the amendments eliminate the requirement to retrospectively account for adjustments made to provisional amounts recognized in a business combination . a djustments to provisional amounts that are identified during the measurement period are required to be recognized in the reporting period in which the adjustments are determined and calculated as if the accounting had been completed at the acquisition date and either disclosed on the face of the income statement or in the notes by each category . the company adopted these provisions in the first quarter of 2016 and plans to apply the provisions for all future business combinations . t he adoption did not have a material impact on the company 's consolidated financial statements . ยท asu no . 2015-07 , fair value measurement ( topic 820 ) : disclosures for investments in certain entities that calculate net asset value per share ( or its equivalent ) . the amendments remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share ( or its equivalent ) practical expedient . in addition , there is no requirement to make certain disclosures for such investments . the company adopted these provisions in the first quarter of 2016 applied retrospectively and has excluded the pension assets that are measured using the net asset value per share from the fair value hierarchy disclosure . t he adoption did not have a material impact on the company 's consolidated financial statements . ยท asu no . 2014-15 , presentation of financial statements โgoing concern ( subtopic 205-40 ) : disclosure of uncertainties about an entity 's ability to continue as a going concern . f inancial statements are generally prepared under the presumption that the reporting organization will continue to operate as a going concern , except in limited circumstances . this asu provides guidance on management 's responsibility to include footnote disclosures when there is substantial doubt about the organization 's ability to continue as a going concern . the company adopted these provisions in the first quarter of 2016 and will provide such disclosures as required if there are conditions and events that raise substantial doubt about its ability to continue as a going concern . the adoption did not have a material impact on the company 's consolidated financial statements . recently issued accounting pronouncements not yet adopted : to be adopted in 2017 : ยท asu no . 2015-11 , inventory ( topic 330 ) : simplifying the measurement of inventory . current requirements are to measure inventory at the lower of cost or market . market could be replacement cost , net realizable value , or net realizable value less an approximated normal profit margin . these amendments allow inventory to be measured at lower of cost or net realizable value and eliminates the market requirement . net realizable value is the estimated selling price in the ordinary course of business ,
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2,318 | in assessing the reliability of deferred tax assets , management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized . the ultimate realization of deferred tax assets is entirely dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible . management considers the scheduled reversals of deferred tax liabilities , projected future taxable income , and tax planning strategies in making this assessment . revenue recognition revenue is recognized when risk of ownership and title pass to the buyer , generally upon the shipment of the product . all sales are made to authorized dealers whose application for dealer status has been approved and who have been informed of general sales policies . any changes in company terms are documented in the most recently published price lists . pricing is fixed and determinable according to the company 's published equipment and parts price lists . title to all equipment and parts sold shall pass to the buyer upon delivery to the carrier and is not subject to a customer acceptance provision . proof of the passing of title is documented by the signing of the delivery receipt by a representative of the carrier . post shipment obligations are limited to any claim with respect to the condition of the equipment or parts . a provision for warranty expenses , based on sales volume , is included in the financial statements . our returns policy allows for new and saleable parts to be returned , subject to inspection and a restocking charge which is included in net sales . whole goods are not returnable . shipping costs charged to customers are included in net sales . freight costs incurred are included in cost of goods sold . 12 in certain circumstances , upon the customer 's written request , we may recognize revenue when production is complete and the good is ready for shipment . at the buyer 's request , we will bill the buyer upon completing all performance obligations , but before shipment . the buyer dictates that we ship the goods per their direction from our manufacturing facility , as is customary with this type of agreement , in order to minimize shipping costs . the written agreement with the customer specifies that the goods will be delivered on a schedule to be determined by the customer , with a final specified delivery date , and that we will segregate the goods from our inventory , such that they are not available to fill other orders . this agreement also specifies that the buyer is required to purchase all goods manufactured under this agreement . title of the goods will pass to the buyer when the goods are complete and ready for shipment , per the customer agreement . at the transfer of title , all risks of ownership have passed to the buyer , and the buyer agrees to maintain insurance on the manufactured items that have not yet been shipped . we have operated using bill and hold agreements with certain customers for many years , with consistent satisfactory results for both buyer and seller . the credit terms on this agreement are consistent with the credit terms on all other sales . all risks of loss are shouldered by the buyer , and there are no exceptions to the buyer 's commitment to accept and pay for these manufactured goods . revenues recognized at the completion of production in 2012 and 2011 were approximately $ 937,000 and $ 532,000 , respectively . our modular buildings segment is in the construction industry , and , as such , accounts for long-term contracts on the percentage-of-completion method . revenue and gross profit are recognized as work is performed based on the relationship between actual costs incurred and total estimated costs at completion . contract losses are recognized when current estimates of total contract revenue and contract cost indicate a loss . estimated contract costs include any and all costs appropriately allocable to the contract . the provision for these contract losses will be the excess of estimated contract costs over estimated contract revenues . costs and profit in excess of amounts billed are classified as current assets and billings in excess of cost and profit are classified as current liabilities . stock-based compensation stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant vesting period . we estimate the fair value of each stock-based award on the measurement date using the black-scholes option valuation model which incorporates assumptions as to stock price volatility , the expected life of the options , risk-free interest rate and dividend yield . restricted stock awards are valued at market value at day of grant . results of operations fiscal year ended november 30 , 2012 compared to fiscal year ended november 30 , 2011 our consolidated net sales totaled $ 36,457,000 for the fiscal year ended november 30 , 2012 , which represents a 32.0 % increase from our consolidated net sales of $ 27,620,000 in 2011. our consolidated gross profit increased from 25.4 % in 2011 to 27.5 % in 2012 or from $ 7,007,000 to $ 10,032,000 , respectively . our consolidated expenses increased by 12.4 % , from $ 5,077,000 in 2011 to $ 5,704,000 in 2012. because the majority of our corporate general and administrative expenses are borne by our agricultural products segment , that segment represented $ 4,572,000 of our total consolidated operating expenses , while our pressurized vessels and modular buildings segments represented $ 273,000 and $ 859,000 of the total , respectively . our consolidated operating income for the 2012 fiscal year was $ 4,328,000 , which represents a 124 % increase from our consolidated operating income of $ 1,930,000 for the 2011 fiscal year . story_separator_special_tag our agricultural products and modular buildings segments provided operating income of $ 2,373,000 and $ 2,082,000 , respectively , in 2012. our pressurized vessels segment had an operating loss of $ ( 127,000 ) . consolidated net income for the 2012 fiscal year was $ 2,665,000 , compared to $ 1,249,000 in the 2011 fiscal year , an increase of $ 1,416,000 , or 113.4 % . this increase is primarily a result of the increase in net sales and operating income in the agricultural products and modular buildings segments , as discussed below . our effective tax rates for the years ending november 30 , 2012 and 2011 were 33.2 % and 21.0 % , respectively , an increase of 12.2 % . the 12.2 % increase was due to reduction of r & d tax credits and effect of prior year adjustments recognized in fiscal year 2011 . 13 agricultural products . our agricultural products segment 's sales revenue for the fiscal year ended november 30 , 2012 was $ 24,720,000 , compared to $ 22,614,000 during the same period of 2011 , an increase of $ 2,106,000 , or 9.3 % . the increase in sales was due to the acquisition of universal harvester co. , inc. and the associated product lines . total sales revenue from the new brand , uhc by art's-way , starting at our purchase date of may 10 , 2012 to november 30 , 2012 was $ 3,087,000. offsetting this increase was a $ 986,000 decrease in revenue in our potato harvesting line . gross profit for the fiscal year ended november 30 , 2012 was 28.1 % , compared to 28.7 % for the same period in 2011. this decrease in margin was due to changes in product mix . our agricultural products segment 's operating expenses for the fiscal year ended november 30 , 2012 were $ 4,572,000 , compared to $ 4,052,000 for the same period in 2011 , an increase of $ 520,000 or 12.8 % . this segment 's operating expenses for the fiscal year ended november 30 , 2012 were 18.5 % of sales , compared to 17.9 % of sales for the same period in 2011. the increases in operating expenses are due to an increase in accrued bonuses , as well as increased operating expenses due to the addition of uhc by art's-way . total income from operations for our agricultural products segment during the fiscal year ended november 30 , 2012 was $ 2,373,000 , compared to $ 2,428,000 for the same period in 2011 , a decrease of $ 55,000 or 2.3 % . pressurized vessels . our pressurized vessels segment 's net sales for the fiscal year ended november 30 , 2012 were $ 2,091,000 , compared to $ 1,797,000 for the same period in 2011 , an increase of $ 294,000 , or 16.3 % . this increase is attributable to higher sales volume . we have been working diligently to improve the consistency of our quality of goods and delivery of product . these improvements have helped us to capture additional sales as well as retain repeat customers . fiscal year 2012 gross margin was 7.0 % compared to ( 6.2 % ) as of november 30 , 2011. the production manager hired during the first quarter of 2011 has improved our ability to track cost and revenue on a per-job basis . modular buildings . our modular buildings segment 's net sales for the fiscal year ended november 30 , 2012 were $ 9,645,000 , compared to $ 3,209,000 for the same period in 2011 , an increase of $ 6,436,000 , or 200.6 % . late in 2011 we secured a large job with whiting turner to produce a facility for stanford university for approximately $ 9,000,000. that project significantly increased our sales in 2012. it is unlikely that we will be able to maintain 2012 sales levels going forward . gross profit for the fiscal year ended november 30 , 2012 was $ 2,941,000 compared to $ 638,000 during the same period of 2011 , an increase of $ 2,303,000 , or 361.0 % . the increase was primarily attributable to revenue from an approximately $ 7 million installation fabrication and delivery contract executed in january 2012 related to the job with whiting turner and an approximately $ 1.7 million installation contract executed in april 2012 for the same job . scientific was hired to design , fabricate , and install twenty-four modular units over the course of approximately one year for one of the world 's leading research and teaching institutions . operating expenses for the fiscal year ended november 30 , 2012 were $ 859,000 compared to $ 689,000 for the same period in 2011 , an increase of $ 170,000 , or 24.7 % . this increase is primarily attributable to the increase production activity . as a percentage of sales our operating expenses were 8.9 % in 2012 compared to 21.4 % in 2011. income from operations for the fiscal year ended november 30 , 2012 was $ 2,082,000 compared to net operating loss of $ ( 50,000 ) for the same period in 2011 , an increase of $ 2,132,000 , which is a result of the fabrication and delivery contract and installation contract mentioned above . trends and uncertainties we are subject to a number of trends and uncertainties that may affect our short-term or long-term liquidity , sales revenues and operations . similar to other farm equipment manufacturers , we are affected by items unique to the farm industry , including fluctuations in farm income resulting from the change in commodity prices , crop damage caused by weather and insects , government farm programs , interest rate fluctuations , and other unpredictable variables . management believes that our business is dependent on the farming industry for the bulk of our sales revenues . as such , our business tends
| liquidity and capital resources our main source of funds during fiscal 2012 was cash from operating activities , which totaled $ 5,004,000 for the fiscal year ending november 30 , 2012. approximately $ 748,000 of cash used by operations resulted from the increase of accounts receivable , and $ 131,000 resulted from the increase of inventories . accounts payable and accrued liabilities increased by $ 2,388,000. art's-way used $ 800,000 of cash to update facilities , equipment , and invest in assets for leases . art's-way also used $ 2,663,000 in cash to pay down the line of credit , notes payable , and to pay dividends to its shareholders . we have a $ 6,000,000 revolving line of credit with west bank , pursuant to which we had borrowed $ 0 and $ 1,389,000 as of november 30 , 2012 and november 30 , 2011 , respectively . in addition , we have four term loans from west bank , which had outstanding principal balances of $ 2,435,000 , $ 1,027,000 , $ 1,168,000 and $ 1,875,000 as of november 30 , 2012. we have also received funds pursuant to three promissory notes from the iowa department of economic development . these notes had outstanding principal balances of $ 42,000 , $ 15,000 , and $ 49,000 as of november 30 , 2012. we have obtained two loans relating to our production facility in west union , iowa . the iowa finance authority loan balance was $ 1,027,000 as of november 30 , 2012.
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources our main source of funds during fiscal 2012 was cash from operating activities , which totaled $ 5,004,000 for the fiscal year ending november 30 , 2012. approximately $ 748,000 of cash used by operations resulted from the increase of accounts receivable , and $ 131,000 resulted from the increase of inventories . accounts payable and accrued liabilities increased by $ 2,388,000. art's-way used $ 800,000 of cash to update facilities , equipment , and invest in assets for leases . art's-way also used $ 2,663,000 in cash to pay down the line of credit , notes payable , and to pay dividends to its shareholders . we have a $ 6,000,000 revolving line of credit with west bank , pursuant to which we had borrowed $ 0 and $ 1,389,000 as of november 30 , 2012 and november 30 , 2011 , respectively . in addition , we have four term loans from west bank , which had outstanding principal balances of $ 2,435,000 , $ 1,027,000 , $ 1,168,000 and $ 1,875,000 as of november 30 , 2012. we have also received funds pursuant to three promissory notes from the iowa department of economic development . these notes had outstanding principal balances of $ 42,000 , $ 15,000 , and $ 49,000 as of november 30 , 2012. we have obtained two loans relating to our production facility in west union , iowa . the iowa finance authority loan balance was $ 1,027,000 as of november 30 , 2012.
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Suspicious Activity Report : in assessing the reliability of deferred tax assets , management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized . the ultimate realization of deferred tax assets is entirely dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible . management considers the scheduled reversals of deferred tax liabilities , projected future taxable income , and tax planning strategies in making this assessment . revenue recognition revenue is recognized when risk of ownership and title pass to the buyer , generally upon the shipment of the product . all sales are made to authorized dealers whose application for dealer status has been approved and who have been informed of general sales policies . any changes in company terms are documented in the most recently published price lists . pricing is fixed and determinable according to the company 's published equipment and parts price lists . title to all equipment and parts sold shall pass to the buyer upon delivery to the carrier and is not subject to a customer acceptance provision . proof of the passing of title is documented by the signing of the delivery receipt by a representative of the carrier . post shipment obligations are limited to any claim with respect to the condition of the equipment or parts . a provision for warranty expenses , based on sales volume , is included in the financial statements . our returns policy allows for new and saleable parts to be returned , subject to inspection and a restocking charge which is included in net sales . whole goods are not returnable . shipping costs charged to customers are included in net sales . freight costs incurred are included in cost of goods sold . 12 in certain circumstances , upon the customer 's written request , we may recognize revenue when production is complete and the good is ready for shipment . at the buyer 's request , we will bill the buyer upon completing all performance obligations , but before shipment . the buyer dictates that we ship the goods per their direction from our manufacturing facility , as is customary with this type of agreement , in order to minimize shipping costs . the written agreement with the customer specifies that the goods will be delivered on a schedule to be determined by the customer , with a final specified delivery date , and that we will segregate the goods from our inventory , such that they are not available to fill other orders . this agreement also specifies that the buyer is required to purchase all goods manufactured under this agreement . title of the goods will pass to the buyer when the goods are complete and ready for shipment , per the customer agreement . at the transfer of title , all risks of ownership have passed to the buyer , and the buyer agrees to maintain insurance on the manufactured items that have not yet been shipped . we have operated using bill and hold agreements with certain customers for many years , with consistent satisfactory results for both buyer and seller . the credit terms on this agreement are consistent with the credit terms on all other sales . all risks of loss are shouldered by the buyer , and there are no exceptions to the buyer 's commitment to accept and pay for these manufactured goods . revenues recognized at the completion of production in 2012 and 2011 were approximately $ 937,000 and $ 532,000 , respectively . our modular buildings segment is in the construction industry , and , as such , accounts for long-term contracts on the percentage-of-completion method . revenue and gross profit are recognized as work is performed based on the relationship between actual costs incurred and total estimated costs at completion . contract losses are recognized when current estimates of total contract revenue and contract cost indicate a loss . estimated contract costs include any and all costs appropriately allocable to the contract . the provision for these contract losses will be the excess of estimated contract costs over estimated contract revenues . costs and profit in excess of amounts billed are classified as current assets and billings in excess of cost and profit are classified as current liabilities . stock-based compensation stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant vesting period . we estimate the fair value of each stock-based award on the measurement date using the black-scholes option valuation model which incorporates assumptions as to stock price volatility , the expected life of the options , risk-free interest rate and dividend yield . restricted stock awards are valued at market value at day of grant . results of operations fiscal year ended november 30 , 2012 compared to fiscal year ended november 30 , 2011 our consolidated net sales totaled $ 36,457,000 for the fiscal year ended november 30 , 2012 , which represents a 32.0 % increase from our consolidated net sales of $ 27,620,000 in 2011. our consolidated gross profit increased from 25.4 % in 2011 to 27.5 % in 2012 or from $ 7,007,000 to $ 10,032,000 , respectively . our consolidated expenses increased by 12.4 % , from $ 5,077,000 in 2011 to $ 5,704,000 in 2012. because the majority of our corporate general and administrative expenses are borne by our agricultural products segment , that segment represented $ 4,572,000 of our total consolidated operating expenses , while our pressurized vessels and modular buildings segments represented $ 273,000 and $ 859,000 of the total , respectively . our consolidated operating income for the 2012 fiscal year was $ 4,328,000 , which represents a 124 % increase from our consolidated operating income of $ 1,930,000 for the 2011 fiscal year . story_separator_special_tag our agricultural products and modular buildings segments provided operating income of $ 2,373,000 and $ 2,082,000 , respectively , in 2012. our pressurized vessels segment had an operating loss of $ ( 127,000 ) . consolidated net income for the 2012 fiscal year was $ 2,665,000 , compared to $ 1,249,000 in the 2011 fiscal year , an increase of $ 1,416,000 , or 113.4 % . this increase is primarily a result of the increase in net sales and operating income in the agricultural products and modular buildings segments , as discussed below . our effective tax rates for the years ending november 30 , 2012 and 2011 were 33.2 % and 21.0 % , respectively , an increase of 12.2 % . the 12.2 % increase was due to reduction of r & d tax credits and effect of prior year adjustments recognized in fiscal year 2011 . 13 agricultural products . our agricultural products segment 's sales revenue for the fiscal year ended november 30 , 2012 was $ 24,720,000 , compared to $ 22,614,000 during the same period of 2011 , an increase of $ 2,106,000 , or 9.3 % . the increase in sales was due to the acquisition of universal harvester co. , inc. and the associated product lines . total sales revenue from the new brand , uhc by art's-way , starting at our purchase date of may 10 , 2012 to november 30 , 2012 was $ 3,087,000. offsetting this increase was a $ 986,000 decrease in revenue in our potato harvesting line . gross profit for the fiscal year ended november 30 , 2012 was 28.1 % , compared to 28.7 % for the same period in 2011. this decrease in margin was due to changes in product mix . our agricultural products segment 's operating expenses for the fiscal year ended november 30 , 2012 were $ 4,572,000 , compared to $ 4,052,000 for the same period in 2011 , an increase of $ 520,000 or 12.8 % . this segment 's operating expenses for the fiscal year ended november 30 , 2012 were 18.5 % of sales , compared to 17.9 % of sales for the same period in 2011. the increases in operating expenses are due to an increase in accrued bonuses , as well as increased operating expenses due to the addition of uhc by art's-way . total income from operations for our agricultural products segment during the fiscal year ended november 30 , 2012 was $ 2,373,000 , compared to $ 2,428,000 for the same period in 2011 , a decrease of $ 55,000 or 2.3 % . pressurized vessels . our pressurized vessels segment 's net sales for the fiscal year ended november 30 , 2012 were $ 2,091,000 , compared to $ 1,797,000 for the same period in 2011 , an increase of $ 294,000 , or 16.3 % . this increase is attributable to higher sales volume . we have been working diligently to improve the consistency of our quality of goods and delivery of product . these improvements have helped us to capture additional sales as well as retain repeat customers . fiscal year 2012 gross margin was 7.0 % compared to ( 6.2 % ) as of november 30 , 2011. the production manager hired during the first quarter of 2011 has improved our ability to track cost and revenue on a per-job basis . modular buildings . our modular buildings segment 's net sales for the fiscal year ended november 30 , 2012 were $ 9,645,000 , compared to $ 3,209,000 for the same period in 2011 , an increase of $ 6,436,000 , or 200.6 % . late in 2011 we secured a large job with whiting turner to produce a facility for stanford university for approximately $ 9,000,000. that project significantly increased our sales in 2012. it is unlikely that we will be able to maintain 2012 sales levels going forward . gross profit for the fiscal year ended november 30 , 2012 was $ 2,941,000 compared to $ 638,000 during the same period of 2011 , an increase of $ 2,303,000 , or 361.0 % . the increase was primarily attributable to revenue from an approximately $ 7 million installation fabrication and delivery contract executed in january 2012 related to the job with whiting turner and an approximately $ 1.7 million installation contract executed in april 2012 for the same job . scientific was hired to design , fabricate , and install twenty-four modular units over the course of approximately one year for one of the world 's leading research and teaching institutions . operating expenses for the fiscal year ended november 30 , 2012 were $ 859,000 compared to $ 689,000 for the same period in 2011 , an increase of $ 170,000 , or 24.7 % . this increase is primarily attributable to the increase production activity . as a percentage of sales our operating expenses were 8.9 % in 2012 compared to 21.4 % in 2011. income from operations for the fiscal year ended november 30 , 2012 was $ 2,082,000 compared to net operating loss of $ ( 50,000 ) for the same period in 2011 , an increase of $ 2,132,000 , which is a result of the fabrication and delivery contract and installation contract mentioned above . trends and uncertainties we are subject to a number of trends and uncertainties that may affect our short-term or long-term liquidity , sales revenues and operations . similar to other farm equipment manufacturers , we are affected by items unique to the farm industry , including fluctuations in farm income resulting from the change in commodity prices , crop damage caused by weather and insects , government farm programs , interest rate fluctuations , and other unpredictable variables . management believes that our business is dependent on the farming industry for the bulk of our sales revenues . as such , our business tends
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2,319 | such stock option terminated by its terms before becoming exercisable following a december story_separator_special_tag forward-looking statement warning certain statements included by reference in this filing containing the words ยcould , ย ยmay , ย ยbelieves , ย ยanticipates , ย ยintends , ย ยexpects , ย and similar such words constitute forward-looking statements within the meaning of the private securities litigation reform act . any forward-looking statements involve known and unknown risks , uncertainties , and other factors that may cause our actual results , performance , or achievements to be materially different from any future results , performance , or achievements expressed or implied by such forward-looking statements . such factors include , among others , our ability to maintain liquidity , our maintenance of patent protection , the impact of current and future court decisions regarding current litigation , our ability to maintain favorable third party manufacturing and supplier arrangements and relationships , foreign trade risk , our ability to quickly increase capacity in response to an increase in demand , our ability to access the market , our ability to maintain or lower production costs , our ability to continue to finance research and development as well as operations and expansion of production , the impact of larger market players , specifically bd , in providing devices to the safety market , and other factors referenced in item 1a . risk factors . given these uncertainties , undue reliance should not be placed on forward-looking statements . overview we have been manufacturing and marketing our products since 1997. safety syringes comprised 89.9 % of our sales in 2017. we also manufacture and market the easypoint ยฎ , blood collection tube holder , iv safety catheter , and vanishpoint ยฎ blood collection set . we currently provide other safety medical products in addition to safety products utilizing retractable technology . one such product is the patient safe ยฎ syringe , which is uniquely designed to reduce the risk of bloodstream infections associated with catheter hub contamination . in the second quarter of 2016 , we began selling the easypoint ยฎ needle . easypoint ยฎ needles made up 6.0 % of revenues in 2017. the easypoint ยฎ is a retractable needle that can be used with luer lock syringes , luer slip syringes , and prefilled syringes to give injections . the easypoint ยฎ needle can also be used to aspirate fluids and collect blood . based on industry-wide trends , we anticipate that demand may increase for the easypoint ยฎ needle . historically , unit sales have increased in the latter part of the year due , in part , to the demand for syringes during the flu season . our products have been and continue to be distributed nationally and internationally through numerous distributors . although we have made limited progress in some areas , such as the alternate care market , our volumes are not as high as they should be given the nature and quality of our products and the federal and state legislation requiring the use of safe needle devices . the alternate care market is composed of facilities that provide long-term nursing and out-patient surgery , emergency care , physician services , health clinics , and retail pharmacies . 11 we continue to pursue various strategies to have better access to the hospital market , as well as other markets , including attempting to gain access to the market through our sales efforts , our innovative technology , introduction of new products , and , when necessary , litigation . we have reported in the past that our progress is limited principally due to the practices engaged in by bd , the dominant maker and seller of disposable syringes . we initiated an antitrust and false advertising lawsuit in 2007 against bd . although a district court judgment in 2015 awarded us $ 340 million in antitrust damages from bd and the fifth circuit affirmed a finding of false advertising liability against bd , we were ultimately awarded a take nothing judgment in august 2017 and the case was dismissed . we have filed for appeal . our litigation expenses were significantly less in 2017 than previous years and we have expanded our sales and marketing staff in an effort to gain market share . costs related to additional compensation , bonuses to ms. larios and mr. cowan , and stock option expense related to options granted in 2016 affected 2017 results . in january 2018 , congress imposed another two-year moratorium on the 2.3 % medical device excise tax imposed by internal revenue code section 4191. thus , the medical device excise tax will not go into effect until january 1 , 2020. in 2016 , we granted a right to three of our executive officers to purchase shares directly from the company . thomas j. shaw exercised such right on january 12 , 2017 , buying two million shares at market price for an aggregate purchase price of $ 1.78 million and purchased one million shares at market price on august 23 , 2017 for an aggregate purchase price of $ 570,100. we received approximately $ 1 million from our insurance carrier in the second quarter of 2017 and used these funds to repair our buildings from earlier storm damage . product purchases from our chinese manufacturers have enabled us to increase manufacturing capacity with little capital outlay and have provided a competitive manufacturing cost . in 2017 , our primary chinese manufacturer produced approximately 90.4 % of our vanishpoint ยฎ syringes . story_separator_special_tag in the event that we become unable to purchase products from our chinese manufacturers , we would need to find an alternate manufacturer for the blood collection set , iv catheter , patient safe ยฎ syringe , 0.5ml insulin syringe , 0.5ml autodisable syringe , and 2ml , 5ml , and 10ml syringes and we would increase domestic production for the 1ml and 3ml syringes . in 1995 , we entered into a license agreement with thomas j. shaw for the exclusive right to manufacture , market , and distribute products utilizing automated retraction technology . this technology is the subject of various patents and patent applications owned by mr. shaw . the license agreement generally provides for quarterly payments of a 5 % royalty fee on gross sales . with increased volumes , our manufacturing unit costs have generally tended to decline . factors that could affect our unit costs include increases in costs by third party manufacturers , changing production volumes , costs of petroleum products , and transportation costs . increases in such costs may not be recoverable through price increases of our products . results of operations the following discussion contains trend information and other forward-looking statements that involve a number of risks and uncertainties . our actual future results could differ materially from our historical results of operations and those discussed in the forward-looking statements . all period references are to our fiscal years ended december 2017 , 2016 , or 2015. dollar amounts have been rounded for ease of reading . comparison of year ended december 31 , 2017 and year ended december 31 , 2016 domestic sales accounted for 78.3 % and 88.2 % of the revenues in 2017 and 2016 , respectively . domestic revenues increased 2.7 % principally due to increased sales of easypoint ยฎ and the blood collection set . domestic unit 12 sales increased 7.1 % . domestic unit sales were 69.5 % of total unit sales for 2017. international revenues increased from $ 3.5 million in 2016 to $ 7.5 million in 2017 , primarily due to increased volumes mitigated by lower average prices . overall unit sales increased 28.3 % . our international orders may be subject to significant fluctuation over time . such orders may fluctuate due to health initiatives at various times as well as economic conditions . cost of manufactured product increased $ 4.7 million principally due to higher volumes . royalty expense increased $ 337 thousand due to increased gross sales . gross profit margins decreased from 34.7 % in 2016 to 28.9 % in 2017 principally due to a larger portion of international sales which bear a lower average sales price . operating expenses decreased 0.7 % from the prior year due to decreased legal expenses and no impairment costs incurred in 2017 , offset by increased staffing in sales and marketing , stock option expense , and bonuses paid in 2017. the loss from operations was $ 3.8 million in 2017 compared to $ 3.5 million in 2016. we recorded $ 188 thousand in tax benefits in connection with the enactment of the tax cut and jobs act ( the ยactย ) on december 22 , 2017. the act establishes new tax provisions that affect us including the elimination of the corporate alternative minimum tax and changing rules related to uses and limitations of net operating loss carry forwards created after december 31 , 2017. carry forward credits from alternative minimum taxes paid in prior years are now refundable in tax years beginning january 1 , 2018. cash flow from operations was a negative $ 2.9 million for 2017 due to our net loss , increased accounts receivable and other current assets , mitigated by noncash expenses of depreciation and stock option expense , lower inventory levels , increased liabilities , and insurance proceeds . comparison of year ended december 31 , 2016 and year ended december 31 , 2015 domestic sales accounted for 88.2 % and 77.9 % of the revenues in 2016 and 2015 , respectively . domestic revenues increased 14.2 % principally due to sales of our 1 ml syringe and easypoint ยฎ needles . domestic unit sales increased 15.6 % . domestic unit sales were 83.3 % of total unit sales for 2016. international revenues decreased from $ 6.5 million in 2015 to $ 3.5 million in 2016 , primarily due to fluctuation in the timing of orders . overall unit sales decreased 7.0 % . our international orders may be subject to significant fluctuation over time . such orders may fluctuate due to health initiatives at various times as well as economic conditions . cost of manufactured product increased $ 448 thousand principally due to higher manufacturing costs . royalty expense increased $ 50 thousand due to increased gross sales . gross profit margins decreased from 35.8 % in 2015 to 34.7 % in 2016. operating expenses increased 0.6 % from the prior year due to an impairment charge of $ 456 thousand , stock option expense , consulting costs , and 401 ( k ) plan matching expense . the impairment charge of $ 456 thousand was related to patient safe ยฎ assembly equipment . these expenses were largely offset by decreases in the medical device excise tax of $ 360 thousand , severance pay , professional fees , and bonus pay . a non-recurring recognition of $ 7.7 million received from bd in the second quarter of 2015 pursuant to a patent infringement case had a significant impact on 2015 income . recognizing this payment also significantly decreased 2015 current liabilities on the balance sheets . in 2015 , earnings per share was positively affected by our acquisition of 200,000 shares of iv class b convertible preferred stock . under the guidelines of asc 260-10-s99-2 , effect on the calculation of earnings per share for the redemption or induced conversion of preferred stock , we reflected the gain on extinguishment of this preferred stock
| liquidity and capital resources at the present time , management does not intend to publicly raise equity capital . due to the funds received from prior litigation , we have sufficient cash reserves and intend to rely on operations , cash reserves , and debt financing , when available , as the primary ongoing sources of cash . our ability to obtain additional funds through loans is uncertain . historical sources of liquidity we have historically funded operations primarily from the proceeds from revenues , private placements , litigation settlements , and loans . internal sources of liquidity margins and market access to routinely achieve positive or break even quarters , we need increased access to hospital markets which has been difficult to obtain . we will continue to attempt to gain access to the market through our sales efforts , innovative technology , the introduction of new products , and , when necessary , litigation . we continue to focus on methods of upgrading our manufacturing capability and efficiency in order to reduce costs . fluctuations in the cost and availability of raw materials and inventory and our ability to maintain favorable manufacturing arrangements and relationships could result in the need to manufacture all ( as opposed to 17.1 % ) of our products in the u.s. this could temporarily increase unit costs as we ramp up domestic production .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources at the present time , management does not intend to publicly raise equity capital . due to the funds received from prior litigation , we have sufficient cash reserves and intend to rely on operations , cash reserves , and debt financing , when available , as the primary ongoing sources of cash . our ability to obtain additional funds through loans is uncertain . historical sources of liquidity we have historically funded operations primarily from the proceeds from revenues , private placements , litigation settlements , and loans . internal sources of liquidity margins and market access to routinely achieve positive or break even quarters , we need increased access to hospital markets which has been difficult to obtain . we will continue to attempt to gain access to the market through our sales efforts , innovative technology , the introduction of new products , and , when necessary , litigation . we continue to focus on methods of upgrading our manufacturing capability and efficiency in order to reduce costs . fluctuations in the cost and availability of raw materials and inventory and our ability to maintain favorable manufacturing arrangements and relationships could result in the need to manufacture all ( as opposed to 17.1 % ) of our products in the u.s. this could temporarily increase unit costs as we ramp up domestic production .
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Suspicious Activity Report : such stock option terminated by its terms before becoming exercisable following a december story_separator_special_tag forward-looking statement warning certain statements included by reference in this filing containing the words ยcould , ย ยmay , ย ยbelieves , ย ยanticipates , ย ยintends , ย ยexpects , ย and similar such words constitute forward-looking statements within the meaning of the private securities litigation reform act . any forward-looking statements involve known and unknown risks , uncertainties , and other factors that may cause our actual results , performance , or achievements to be materially different from any future results , performance , or achievements expressed or implied by such forward-looking statements . such factors include , among others , our ability to maintain liquidity , our maintenance of patent protection , the impact of current and future court decisions regarding current litigation , our ability to maintain favorable third party manufacturing and supplier arrangements and relationships , foreign trade risk , our ability to quickly increase capacity in response to an increase in demand , our ability to access the market , our ability to maintain or lower production costs , our ability to continue to finance research and development as well as operations and expansion of production , the impact of larger market players , specifically bd , in providing devices to the safety market , and other factors referenced in item 1a . risk factors . given these uncertainties , undue reliance should not be placed on forward-looking statements . overview we have been manufacturing and marketing our products since 1997. safety syringes comprised 89.9 % of our sales in 2017. we also manufacture and market the easypoint ยฎ , blood collection tube holder , iv safety catheter , and vanishpoint ยฎ blood collection set . we currently provide other safety medical products in addition to safety products utilizing retractable technology . one such product is the patient safe ยฎ syringe , which is uniquely designed to reduce the risk of bloodstream infections associated with catheter hub contamination . in the second quarter of 2016 , we began selling the easypoint ยฎ needle . easypoint ยฎ needles made up 6.0 % of revenues in 2017. the easypoint ยฎ is a retractable needle that can be used with luer lock syringes , luer slip syringes , and prefilled syringes to give injections . the easypoint ยฎ needle can also be used to aspirate fluids and collect blood . based on industry-wide trends , we anticipate that demand may increase for the easypoint ยฎ needle . historically , unit sales have increased in the latter part of the year due , in part , to the demand for syringes during the flu season . our products have been and continue to be distributed nationally and internationally through numerous distributors . although we have made limited progress in some areas , such as the alternate care market , our volumes are not as high as they should be given the nature and quality of our products and the federal and state legislation requiring the use of safe needle devices . the alternate care market is composed of facilities that provide long-term nursing and out-patient surgery , emergency care , physician services , health clinics , and retail pharmacies . 11 we continue to pursue various strategies to have better access to the hospital market , as well as other markets , including attempting to gain access to the market through our sales efforts , our innovative technology , introduction of new products , and , when necessary , litigation . we have reported in the past that our progress is limited principally due to the practices engaged in by bd , the dominant maker and seller of disposable syringes . we initiated an antitrust and false advertising lawsuit in 2007 against bd . although a district court judgment in 2015 awarded us $ 340 million in antitrust damages from bd and the fifth circuit affirmed a finding of false advertising liability against bd , we were ultimately awarded a take nothing judgment in august 2017 and the case was dismissed . we have filed for appeal . our litigation expenses were significantly less in 2017 than previous years and we have expanded our sales and marketing staff in an effort to gain market share . costs related to additional compensation , bonuses to ms. larios and mr. cowan , and stock option expense related to options granted in 2016 affected 2017 results . in january 2018 , congress imposed another two-year moratorium on the 2.3 % medical device excise tax imposed by internal revenue code section 4191. thus , the medical device excise tax will not go into effect until january 1 , 2020. in 2016 , we granted a right to three of our executive officers to purchase shares directly from the company . thomas j. shaw exercised such right on january 12 , 2017 , buying two million shares at market price for an aggregate purchase price of $ 1.78 million and purchased one million shares at market price on august 23 , 2017 for an aggregate purchase price of $ 570,100. we received approximately $ 1 million from our insurance carrier in the second quarter of 2017 and used these funds to repair our buildings from earlier storm damage . product purchases from our chinese manufacturers have enabled us to increase manufacturing capacity with little capital outlay and have provided a competitive manufacturing cost . in 2017 , our primary chinese manufacturer produced approximately 90.4 % of our vanishpoint ยฎ syringes . story_separator_special_tag in the event that we become unable to purchase products from our chinese manufacturers , we would need to find an alternate manufacturer for the blood collection set , iv catheter , patient safe ยฎ syringe , 0.5ml insulin syringe , 0.5ml autodisable syringe , and 2ml , 5ml , and 10ml syringes and we would increase domestic production for the 1ml and 3ml syringes . in 1995 , we entered into a license agreement with thomas j. shaw for the exclusive right to manufacture , market , and distribute products utilizing automated retraction technology . this technology is the subject of various patents and patent applications owned by mr. shaw . the license agreement generally provides for quarterly payments of a 5 % royalty fee on gross sales . with increased volumes , our manufacturing unit costs have generally tended to decline . factors that could affect our unit costs include increases in costs by third party manufacturers , changing production volumes , costs of petroleum products , and transportation costs . increases in such costs may not be recoverable through price increases of our products . results of operations the following discussion contains trend information and other forward-looking statements that involve a number of risks and uncertainties . our actual future results could differ materially from our historical results of operations and those discussed in the forward-looking statements . all period references are to our fiscal years ended december 2017 , 2016 , or 2015. dollar amounts have been rounded for ease of reading . comparison of year ended december 31 , 2017 and year ended december 31 , 2016 domestic sales accounted for 78.3 % and 88.2 % of the revenues in 2017 and 2016 , respectively . domestic revenues increased 2.7 % principally due to increased sales of easypoint ยฎ and the blood collection set . domestic unit 12 sales increased 7.1 % . domestic unit sales were 69.5 % of total unit sales for 2017. international revenues increased from $ 3.5 million in 2016 to $ 7.5 million in 2017 , primarily due to increased volumes mitigated by lower average prices . overall unit sales increased 28.3 % . our international orders may be subject to significant fluctuation over time . such orders may fluctuate due to health initiatives at various times as well as economic conditions . cost of manufactured product increased $ 4.7 million principally due to higher volumes . royalty expense increased $ 337 thousand due to increased gross sales . gross profit margins decreased from 34.7 % in 2016 to 28.9 % in 2017 principally due to a larger portion of international sales which bear a lower average sales price . operating expenses decreased 0.7 % from the prior year due to decreased legal expenses and no impairment costs incurred in 2017 , offset by increased staffing in sales and marketing , stock option expense , and bonuses paid in 2017. the loss from operations was $ 3.8 million in 2017 compared to $ 3.5 million in 2016. we recorded $ 188 thousand in tax benefits in connection with the enactment of the tax cut and jobs act ( the ยactย ) on december 22 , 2017. the act establishes new tax provisions that affect us including the elimination of the corporate alternative minimum tax and changing rules related to uses and limitations of net operating loss carry forwards created after december 31 , 2017. carry forward credits from alternative minimum taxes paid in prior years are now refundable in tax years beginning january 1 , 2018. cash flow from operations was a negative $ 2.9 million for 2017 due to our net loss , increased accounts receivable and other current assets , mitigated by noncash expenses of depreciation and stock option expense , lower inventory levels , increased liabilities , and insurance proceeds . comparison of year ended december 31 , 2016 and year ended december 31 , 2015 domestic sales accounted for 88.2 % and 77.9 % of the revenues in 2016 and 2015 , respectively . domestic revenues increased 14.2 % principally due to sales of our 1 ml syringe and easypoint ยฎ needles . domestic unit sales increased 15.6 % . domestic unit sales were 83.3 % of total unit sales for 2016. international revenues decreased from $ 6.5 million in 2015 to $ 3.5 million in 2016 , primarily due to fluctuation in the timing of orders . overall unit sales decreased 7.0 % . our international orders may be subject to significant fluctuation over time . such orders may fluctuate due to health initiatives at various times as well as economic conditions . cost of manufactured product increased $ 448 thousand principally due to higher manufacturing costs . royalty expense increased $ 50 thousand due to increased gross sales . gross profit margins decreased from 35.8 % in 2015 to 34.7 % in 2016. operating expenses increased 0.6 % from the prior year due to an impairment charge of $ 456 thousand , stock option expense , consulting costs , and 401 ( k ) plan matching expense . the impairment charge of $ 456 thousand was related to patient safe ยฎ assembly equipment . these expenses were largely offset by decreases in the medical device excise tax of $ 360 thousand , severance pay , professional fees , and bonus pay . a non-recurring recognition of $ 7.7 million received from bd in the second quarter of 2015 pursuant to a patent infringement case had a significant impact on 2015 income . recognizing this payment also significantly decreased 2015 current liabilities on the balance sheets . in 2015 , earnings per share was positively affected by our acquisition of 200,000 shares of iv class b convertible preferred stock . under the guidelines of asc 260-10-s99-2 , effect on the calculation of earnings per share for the redemption or induced conversion of preferred stock , we reflected the gain on extinguishment of this preferred stock
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2,320 | 33 during the fourth quarter of 2018 , we saw credit spreads and spreads on agency mbs widened coupled with interest rate volatility . we were prepared for the move in interest rates as we actively limited our duration gap . our net `` duration gap `` on agency rmbs , agency cmbs , which is a measure of the risk due to mismatches that can occur between the interest rate sensitivity of our assets and liabilities , inclusive of hedges , was a negative 0.25 years as of december 31 , 2018. although there was a modest benefit from declining interest rates , the spread widening on our agency cmbs portfolio overshadowed this benefit resulting in a negative economic return ( the change in book value plus dividends ) for the fourth quarter of 3.3 % , and a decline in our book value of 6.1 % . we believed the agency rmbs sector was at risk for further spread widening in the longer term due to the federal reserve 's balance sheet normalization plan . in response , during the fourth quarter , we continued to reduce our agency rmbs portfolio and redeploy the proceeds into credit sensitive investments such as residential whole loans , residential bridge loans and commercial loans . the combination of overall higher interest rates coupled with higher costs associated with financing our credit sensitive investments , increased our average effective borrowing costs , excluding the consolidated vies , by 47 basis points , to 2.65 % for the year ended december 31 , 2018 from 2.18 % as of december 31 , 2017. our average effective borrowing costs , includes the cost of our repurchase agreements and the net interest paid or received on our interest rate swap hedges . our manager 's 2019 outlook is for u.s. growth and inflation to moderate and central bank policy normalization to slow to a crawl . our manager believes trade policy poses substantial risks , global growth has downshifted but should remain steady , emerging markets , though volatile , should outperform and spread products should recover relative to u.s. treasuries . with the federal reserve taking a more dovish stance signaling that there will be fewer rate hikes than originally forecasted or possibly none , our manager 's view is there will be no rate hikes in 2019. with our current view that interest rates will be range-bound , we continue to operate with significant interest rate risk protection for our interest rate positions . this interest rate protection is intended to minimize the impact of the increase in long-term rates on our portfolio and mitigate interest rate risk to changes in short-term funding costs . the degree of interest rate protection and the duration gap will vary over time given market conditions and our manager 's outlook . against this backdrop , the fundamentals in the u.s. housing market remain strong and spreads for most mortgages remained supported . credit sensitive mortgage sectors have performed relatively well and are expected to continue to offer attractive returns . critical accounting policies the consolidated financial statements include our accounts , those of our consolidated wholly-owned trs and certain variable interest entities ( โ vies โ ) in which we are the primary beneficiary . all intercompany amounts have been eliminated in consolidation . in accordance with gaap , our consolidated financial statements require the use of estimates and assumptions that involve the exercise of judgment and use of assumptions as to future uncertainties . in accordance with sec guidance , the following discussion addresses the accounting policies that we currently apply . our most critical accounting policies will involve decisions and assessments that could affect our reported assets and liabilities , as well as our reported revenues and expenses . we believe that all of the decisions and assessments upon which our consolidated financial statements have been based were reasonable at the time made and based upon information available to us at that time . for a review of recent accounting pronouncements that may impact our results of operations , refer note 2 - โ summary of significant accounting policies โ contained in this annual report on form 10-k. valuation of financial instruments we disclose the fair value of our financial instruments according to a fair value hierarchy ( levels i , ii , and iii , as defined below ) . asc 820 `` fair value measurements and disclosures `` establishes a framework for measuring fair value and expands financial statement disclosure requirements for fair value measurements . asc 820 further specifies a hierarchy of valuation techniques , which is based on whether the inputs into the valuation technique are observable or unobservable . the hierarchy is as follows : level i โ quoted prices in active markets for identical assets or liabilities . level ii โ quoted prices for similar assets and liabilities in active markets ; quoted prices for identical or similar instruments in markets that are not active ; and model-derived valuations whose inputs are observable or whose significant value drivers are observable . 34 level iii โ prices are determined using significant unobservable inputs . in situations where quoted prices or observable inputs are unavailable , for example , when there is little or no market activity for an investment at the end of the period , unobservable inputs may be used . the level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety . transfers between levels are determined by us at the end of the reporting period . mortgage-backed securities and other securities our mortgage-backed securities and other securities portfolio primarily consists of agency rmbs , non-agency rmbs , agency cmbs , non-agency cmbs , abs and other real estate related assets . story_separator_special_tag to assess whether we have the power to direct the activities of a vie that most significantly impact the vie 's economic performance , we consider all facts and circumstances , including our role in establishing the vie and our ongoing rights and responsibilities . this assessment includes first , identifying the activities that most significantly impact the vie 's economic performance ; and second , identifying which party , if any , has power over those activities . in general , the parties that make the most significant decisions affecting the vie or have the right to unilaterally remove those decision makers is deemed to have the power to direct the activities of a vie . to assess whether we have the obligation to absorb losses of the vie or the right to receive benefits from the vie that could potentially be significant to the vie , we consider all of our economic interests . this assessment requires that we apply judgment in determining whether these interests , in the aggregate , are considered potentially significant to the vie . factors considered in assessing significance include : the design of the vie , including its capitalization structure ; subordination of interests ; payment priority ; relative share of interests held across various classes within the vie 's capital structure ; and the reasons why the interests are held by us . in instances where the company and its related parties have variable interests in a vie , we consider whether there is a single party in the related party group that meets both the power and losses or benefits criteria on its own as though no related party relationship existed . if one party within the related party group meets both these criteria , such reporting entity is the primary beneficiary of the vie and no further analysis is needed . if no party within the related party group on its own meets both the power and losses or benefits criteria , but the related party group as a whole meets these two criteria , the determination of primary beneficiary within the related party group requires significant judgment . the analysis is based upon qualitative as well as quantitative factors , such as the relationship of the vie to each of the members of the related-party group , as well as the significance of the vie 's activities to those members , with the objective of determining which party is most closely associated with the vie . ongoing assessments of whether an enterprise is the primary beneficiary of a vie is required . derivatives and hedging activities subject to maintaining our qualification as a reit for u.s. federal income tax purposes , as part of our hedging strategy , we may enter into interest rate swaps , including forward starting swaps , interest rate swaptions , u.s. treasury options , futures contracts , tbas , agency and non-agency interest only strips total return swaps , credit default swaps and foreign current swaps and forwards . derivatives , subject to reit requirements , are used for hedging purposes rather than speculation . we determine the fair value of our derivative positions and obtain quotations from third parties , including the chicago mercantile exchange or cme , to facilitate the process of determining such fair values . if our hedging activities do not achieve the desired results , reported earnings may be adversely affected . gaap requires an entity to recognize all derivatives as either assets or liabilities on the balance sheet and to measure those instruments at fair value . the accounting for changes in the fair value of derivatives depends on the intended use of the derivative . the fair value adjustment will affect either other comprehensive income in stockholders ' equity until the hedged item is recognized in earnings or net income depending on whether the derivative instrument is designated and qualifies as a for hedge for accounting purposes and if so , the nature of the hedging activity . we have elected not to apply hedge accounting for our derivative instruments . accordingly , we record the change in fair value of our derivative instruments , which includes net interest rate swap payments/receipts ( including accrued amounts ) and net currency payments/receipts ( including accrued amounts ) related to interest rate swaps and currency swaps , respectively in `` gain ( loss ) on derivative instruments , net `` in our consolidated statements of operations . 38 in january 2017 , the cme amended its rulebooks to legally characterize variation margin payments and receipts for over-the-counter derivatives they clear as settlements of the derivatives ' exposure rather than collateral against exposure . as a result of the change in legal characterization , effective january 1 , 2017 , variation margin is no longer classified as collateral in the consolidated balance sheets in either `` due from counterparties `` or `` due to counterparties `` , but rather a component of the respective `` derivative asset , at fair value `` or `` derivative liability , at fair value `` in the consolidated balance sheets . the variation margin is now considered partial settlements of the derivative contract and will result in realized gains or losses which prior to january 1 , 2017 were classified as unrealized gains or losses on derivatives . prior to the cme rulebook change variation margin was included in financing activities in our consolidated statement of cash flows in either `` due from counterparties , net `` or `` due to counterparties , net `` . commencing in january 2017 , cash postings for variation margin are included in operating activities in the consolidated statements of cash flows . proceeds and payments on settlement of swaptions , mortgage put options , futures contracts credit default swaps and tbas are included in cash flows from investing activities . proceeds and payments on settlement of forward contracts are reflected in cash flows from financing activities
| securitized debt we acquired a variable interest in cmsc trust and retl trust and were required to consolidate the cmbs vies . refer to note 7 - `` financings '' for details . at december 31 , 2018 , the consolidated cmsc trust 's commercial mortgage pass-through certificate , which bears a fixed interest rate of 8.9 % and matures on july 6 , 2020 , had an outstanding balance of $ 10.8 million and a fair value of $ 10.8 million . the following table summarizes the consolidated retl trust 's commercial mortgage pass-through certificates at december 31 , 2018 which is classified in `` securitized debt '' in the consolidated balance sheets ( dollars in thousands ) : replace_table_token_15_th ( 1 ) class x-cp and class x-ext are interest-only classes with a notional balance of $ 91.4 million each . 45 the following table presents our average repurchase agreement borrowings , excluding unamortized debt issuance costs , by type of collateral pledged for the years ended december 31 , 2018 and december 31 , 2017 ( dollars in thousands ) : replace_table_token_16_th ( 1 ) amount represents the maximum borrowings at month-end during each of the respective periods . hedging activity in connection with our risk management activities , we enter into a variety of derivative and non-derivative instruments . our primary objective for acquiring these derivatives and non-derivative instruments is to mitigate our exposure to future events that are outside our control . our derivative instruments are designed to mitigate the effects market risk and cash flow volatility associated with interest rate risk , including associated prepayment risk .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```securitized debt we acquired a variable interest in cmsc trust and retl trust and were required to consolidate the cmbs vies . refer to note 7 - `` financings '' for details . at december 31 , 2018 , the consolidated cmsc trust 's commercial mortgage pass-through certificate , which bears a fixed interest rate of 8.9 % and matures on july 6 , 2020 , had an outstanding balance of $ 10.8 million and a fair value of $ 10.8 million . the following table summarizes the consolidated retl trust 's commercial mortgage pass-through certificates at december 31 , 2018 which is classified in `` securitized debt '' in the consolidated balance sheets ( dollars in thousands ) : replace_table_token_15_th ( 1 ) class x-cp and class x-ext are interest-only classes with a notional balance of $ 91.4 million each . 45 the following table presents our average repurchase agreement borrowings , excluding unamortized debt issuance costs , by type of collateral pledged for the years ended december 31 , 2018 and december 31 , 2017 ( dollars in thousands ) : replace_table_token_16_th ( 1 ) amount represents the maximum borrowings at month-end during each of the respective periods . hedging activity in connection with our risk management activities , we enter into a variety of derivative and non-derivative instruments . our primary objective for acquiring these derivatives and non-derivative instruments is to mitigate our exposure to future events that are outside our control . our derivative instruments are designed to mitigate the effects market risk and cash flow volatility associated with interest rate risk , including associated prepayment risk .
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Suspicious Activity Report : 33 during the fourth quarter of 2018 , we saw credit spreads and spreads on agency mbs widened coupled with interest rate volatility . we were prepared for the move in interest rates as we actively limited our duration gap . our net `` duration gap `` on agency rmbs , agency cmbs , which is a measure of the risk due to mismatches that can occur between the interest rate sensitivity of our assets and liabilities , inclusive of hedges , was a negative 0.25 years as of december 31 , 2018. although there was a modest benefit from declining interest rates , the spread widening on our agency cmbs portfolio overshadowed this benefit resulting in a negative economic return ( the change in book value plus dividends ) for the fourth quarter of 3.3 % , and a decline in our book value of 6.1 % . we believed the agency rmbs sector was at risk for further spread widening in the longer term due to the federal reserve 's balance sheet normalization plan . in response , during the fourth quarter , we continued to reduce our agency rmbs portfolio and redeploy the proceeds into credit sensitive investments such as residential whole loans , residential bridge loans and commercial loans . the combination of overall higher interest rates coupled with higher costs associated with financing our credit sensitive investments , increased our average effective borrowing costs , excluding the consolidated vies , by 47 basis points , to 2.65 % for the year ended december 31 , 2018 from 2.18 % as of december 31 , 2017. our average effective borrowing costs , includes the cost of our repurchase agreements and the net interest paid or received on our interest rate swap hedges . our manager 's 2019 outlook is for u.s. growth and inflation to moderate and central bank policy normalization to slow to a crawl . our manager believes trade policy poses substantial risks , global growth has downshifted but should remain steady , emerging markets , though volatile , should outperform and spread products should recover relative to u.s. treasuries . with the federal reserve taking a more dovish stance signaling that there will be fewer rate hikes than originally forecasted or possibly none , our manager 's view is there will be no rate hikes in 2019. with our current view that interest rates will be range-bound , we continue to operate with significant interest rate risk protection for our interest rate positions . this interest rate protection is intended to minimize the impact of the increase in long-term rates on our portfolio and mitigate interest rate risk to changes in short-term funding costs . the degree of interest rate protection and the duration gap will vary over time given market conditions and our manager 's outlook . against this backdrop , the fundamentals in the u.s. housing market remain strong and spreads for most mortgages remained supported . credit sensitive mortgage sectors have performed relatively well and are expected to continue to offer attractive returns . critical accounting policies the consolidated financial statements include our accounts , those of our consolidated wholly-owned trs and certain variable interest entities ( โ vies โ ) in which we are the primary beneficiary . all intercompany amounts have been eliminated in consolidation . in accordance with gaap , our consolidated financial statements require the use of estimates and assumptions that involve the exercise of judgment and use of assumptions as to future uncertainties . in accordance with sec guidance , the following discussion addresses the accounting policies that we currently apply . our most critical accounting policies will involve decisions and assessments that could affect our reported assets and liabilities , as well as our reported revenues and expenses . we believe that all of the decisions and assessments upon which our consolidated financial statements have been based were reasonable at the time made and based upon information available to us at that time . for a review of recent accounting pronouncements that may impact our results of operations , refer note 2 - โ summary of significant accounting policies โ contained in this annual report on form 10-k. valuation of financial instruments we disclose the fair value of our financial instruments according to a fair value hierarchy ( levels i , ii , and iii , as defined below ) . asc 820 `` fair value measurements and disclosures `` establishes a framework for measuring fair value and expands financial statement disclosure requirements for fair value measurements . asc 820 further specifies a hierarchy of valuation techniques , which is based on whether the inputs into the valuation technique are observable or unobservable . the hierarchy is as follows : level i โ quoted prices in active markets for identical assets or liabilities . level ii โ quoted prices for similar assets and liabilities in active markets ; quoted prices for identical or similar instruments in markets that are not active ; and model-derived valuations whose inputs are observable or whose significant value drivers are observable . 34 level iii โ prices are determined using significant unobservable inputs . in situations where quoted prices or observable inputs are unavailable , for example , when there is little or no market activity for an investment at the end of the period , unobservable inputs may be used . the level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety . transfers between levels are determined by us at the end of the reporting period . mortgage-backed securities and other securities our mortgage-backed securities and other securities portfolio primarily consists of agency rmbs , non-agency rmbs , agency cmbs , non-agency cmbs , abs and other real estate related assets . story_separator_special_tag to assess whether we have the power to direct the activities of a vie that most significantly impact the vie 's economic performance , we consider all facts and circumstances , including our role in establishing the vie and our ongoing rights and responsibilities . this assessment includes first , identifying the activities that most significantly impact the vie 's economic performance ; and second , identifying which party , if any , has power over those activities . in general , the parties that make the most significant decisions affecting the vie or have the right to unilaterally remove those decision makers is deemed to have the power to direct the activities of a vie . to assess whether we have the obligation to absorb losses of the vie or the right to receive benefits from the vie that could potentially be significant to the vie , we consider all of our economic interests . this assessment requires that we apply judgment in determining whether these interests , in the aggregate , are considered potentially significant to the vie . factors considered in assessing significance include : the design of the vie , including its capitalization structure ; subordination of interests ; payment priority ; relative share of interests held across various classes within the vie 's capital structure ; and the reasons why the interests are held by us . in instances where the company and its related parties have variable interests in a vie , we consider whether there is a single party in the related party group that meets both the power and losses or benefits criteria on its own as though no related party relationship existed . if one party within the related party group meets both these criteria , such reporting entity is the primary beneficiary of the vie and no further analysis is needed . if no party within the related party group on its own meets both the power and losses or benefits criteria , but the related party group as a whole meets these two criteria , the determination of primary beneficiary within the related party group requires significant judgment . the analysis is based upon qualitative as well as quantitative factors , such as the relationship of the vie to each of the members of the related-party group , as well as the significance of the vie 's activities to those members , with the objective of determining which party is most closely associated with the vie . ongoing assessments of whether an enterprise is the primary beneficiary of a vie is required . derivatives and hedging activities subject to maintaining our qualification as a reit for u.s. federal income tax purposes , as part of our hedging strategy , we may enter into interest rate swaps , including forward starting swaps , interest rate swaptions , u.s. treasury options , futures contracts , tbas , agency and non-agency interest only strips total return swaps , credit default swaps and foreign current swaps and forwards . derivatives , subject to reit requirements , are used for hedging purposes rather than speculation . we determine the fair value of our derivative positions and obtain quotations from third parties , including the chicago mercantile exchange or cme , to facilitate the process of determining such fair values . if our hedging activities do not achieve the desired results , reported earnings may be adversely affected . gaap requires an entity to recognize all derivatives as either assets or liabilities on the balance sheet and to measure those instruments at fair value . the accounting for changes in the fair value of derivatives depends on the intended use of the derivative . the fair value adjustment will affect either other comprehensive income in stockholders ' equity until the hedged item is recognized in earnings or net income depending on whether the derivative instrument is designated and qualifies as a for hedge for accounting purposes and if so , the nature of the hedging activity . we have elected not to apply hedge accounting for our derivative instruments . accordingly , we record the change in fair value of our derivative instruments , which includes net interest rate swap payments/receipts ( including accrued amounts ) and net currency payments/receipts ( including accrued amounts ) related to interest rate swaps and currency swaps , respectively in `` gain ( loss ) on derivative instruments , net `` in our consolidated statements of operations . 38 in january 2017 , the cme amended its rulebooks to legally characterize variation margin payments and receipts for over-the-counter derivatives they clear as settlements of the derivatives ' exposure rather than collateral against exposure . as a result of the change in legal characterization , effective january 1 , 2017 , variation margin is no longer classified as collateral in the consolidated balance sheets in either `` due from counterparties `` or `` due to counterparties `` , but rather a component of the respective `` derivative asset , at fair value `` or `` derivative liability , at fair value `` in the consolidated balance sheets . the variation margin is now considered partial settlements of the derivative contract and will result in realized gains or losses which prior to january 1 , 2017 were classified as unrealized gains or losses on derivatives . prior to the cme rulebook change variation margin was included in financing activities in our consolidated statement of cash flows in either `` due from counterparties , net `` or `` due to counterparties , net `` . commencing in january 2017 , cash postings for variation margin are included in operating activities in the consolidated statements of cash flows . proceeds and payments on settlement of swaptions , mortgage put options , futures contracts credit default swaps and tbas are included in cash flows from investing activities . proceeds and payments on settlement of forward contracts are reflected in cash flows from financing activities
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2,321 | on march 3 , 2017 , we entered into the vertex agreement with vertex , pursuant to which we agreed to sell and assign to vertex ctp-656 , now known as vx-561 , and other cystic fibrosis assets of ours for up to $ 250.0 million , subject to the satisfaction of certain closing conditions . on july 25 , 2017 , the transaction contemplated by the vertex agreement closed , and vertex paid us $ 160.0 million in cash consideration , with $ 16.0 million initially held in escrow , which was released to us in february 2019. additional information concerning the sale of ctp-656 is discussed in note 12 to the consolidated financial statements appearing elsewhere in this annual report on form 10-k. our operating results may fluctuate significantly from year to year , depending on the timing and magnitude of cash payments received pursuant to collaboration and licensing arrangements and other agreements and the timing and magnitude of clinical trial and other development activities under our current development programs . we generated net losses of $ 78.2 million and $ 56.0 million for the years ended december 31 , 2019 and 2018 , respectively . we expect to continue to incur significant expenses and operating losses for at least the next several years . we expect our expenses will increase substantially in connection with our ongoing activities as we continue research and development efforts and develop and conduct additional nonclinical studies and clinical trials with respect to our product candidates . 57 we do not expect to generate revenue from product sales unless and until we , or our collaborators , obtain marketing approval for one or more of our product candidates , which we expect will take a number of years and is subject to significant uncertainty . if we obtain , or believe that we are likely to obtain , marketing approval for any product candidates for which we retain commercialization rights , and intend to commercialize a product , we expect to incur significant commercialization expenses related to product sales , marketing , manufacturing and distribution . we expect to seek to fund our operations through a combination of equity offerings , debt financings , collaboration and licensing arrangements and other sources for at least the next several years . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all . our failure to raise capital or enter into such other arrangements as and when needed would force us to delay , limit , reduce or terminate our research and development programs and could have a material adverse effect on our financial condition and our ability to develop our products . we will need to generate significant revenues to achieve sustained profitability and we may never do so . collaborations we have entered into a number of collaborations for the research , development and commercialization of deuterated compounds . to date , our collaborations have provided us with significant funding for both our specific development programs and our dce platform . our collaborators also have applied their considerable scientific , development , regulatory and commercial capabilities to the development of our compounds . in addition , in some instances , where we develop and seek to collaborate with respect to deuterated analogs of marketed drugs or of drug candidates that are more advanced in clinical trials , our collaborators may be eligible for an expedited development or regulatory pathway by relying on previous clinical data regarding their corresponding non-deuterated compound . we believe that our collaborations have contributed to our ability to progress our product candidates and build our dce platform . our collaborations are discussed further in note 12 to the consolidated financial statements appearing elsewhere in this annual report on form 10-k. asset purchase agreement on march 3 , 2017 , we entered into the vertex agreement pursuant to which we sold and assigned to vertex ctp-656 , now known as vx-561 , and other cystic fibrosis assets of ours . on july 25 , 2017 , the transaction contemplated by the vertex agreement closed , and vertex paid us $ 160.0 million in cash consideration , with $ 16.0 million initially held in escrow , which was released to us in february 2019. additional information concerning the sale of ctp-656 is discussed in note 12 to the consolidated financial statements appearing elsewhere in this annual report on form 10-k. additionally , upon the achievement of certain milestone events , vertex has agreed to pay us an aggregate of up to $ 90.0 million . of this amount , $ 50.0 million will become payable to us upon receipt of fda marketing approval for a combination treatment regimen containing ctp-656 for patients with cystic fibrosis , and $ 40.0 million will become payable to us upon completion of a pricing and reimbursement agreement in the first of the united kingdom , germany or france with respect to a combination treatment regimen containing ctp-656 for patients with cystic fibrosis . financial operations overview revenue we have not generated any revenue from the sales of products . all of our revenue to date has been generated through collaboration , license and research arrangements with collaborators and nonprofit organizations for the development and commercialization of product candidates , a patent assignment agreement and an asset sale . on january 1 , 2018 , we adopted financial accounting standards board , or fasb , accounting standards update , or asu , 2014-09 , revenue from contracts with customers , which is also referred to as accounting standards codification , or asc , 606. we adopted asc 606 using the modified retrospective approach . story_separator_special_tag 62 replace_table_token_2_th license and research and development revenue license and research and development revenue was $ 1.1 million for the year ended december 31 , 2019. the revenue recognized in 2019 was primarily a result of the license agreement , or the cipla agreement , entered into in the first quarter of 2019 with cipla technologies llc , or cipla . we recognized $ 1.0 million in revenue associated with this arrangement for the year ended december 31 , 2019. for additional details related to the cipla agreement , see note 12 to the consolidated financial statements appearing elsewhere in this annual report on form 10-k. the decrease in license and research and development revenue compared to $ 10.5 million for the year ended december 31 , 2018 is due to the upfront consideration received from processa of 2,090,301 shares of its common stock with a fair value of $ 10.5 million on the date of the transaction , which was recorded in fiscal year 2018. for additional details related to the transaction with processa , see note 12 to the consolidated financial statements appearing elsewhere in this annual report on form 10-k. as of december 31 , 2019 , we had deferred revenue of : $ 7.8 million related to our collaboration with celgene corporation , or celgene , consisting of $ 1.3 million related to the r & d services performance obligation , $ 0.1 million related to the supply performance obligation and $ 6.4 million related to the first and second discount performance obligations ; and $ 2.8 million related to a payment received from glaxosmithkline , or gsk . research and development expenses the following table summarizes our external research and development expenses , by program , for the year ended december 31 , 2019 , with our internal research expenses separately classified by category . replace_table_token_3_th research and development expenses were $ 59.8 million for the year ended december 31 , 2019. ctp-543 expenses primarily related to clinical development , including multiple phase 2 clinical trials . ctp-692 expenses were attributable to the phase 1 clinical trials completed in 2019 and manufacturing costs to support the advancement of the ctp-692 program into a phase 2 63 clinical trial . employee-related expenses consisted primarily of cash and non-cash stock-based compensation expenses . facility-related expenses consisted primarily of rent and maintenance of our premises . external costs for other programs includes a $ 0.5 million payment to the nonprofit organization fast forward in the first quarter of 2019 under an existing agreement related to ctp-354 between us and fast forward , which was triggered by the upfront payment pursuant to the cipla agreement , and costs incurred to develop our research pipeline . the $ 16.7 million increase in research and development costs for the year ended december 31 , 2019 compared to the year ended december 31 , 2018 is due to multiple ctp-543 phase 2 clinical trials , multiple ctp-692 phase 1 clinical trials and manufacturing costs to support the continued development of ctp-692 . general and administrative expenses the following table summarizes our general and administrative expenses for the year ended december 31 , 2019. year ended december 31 , ( in thousands ) 2019 employee salaries and benefits $ 11,000 external professional service and legal expenses 5,173 facility , technology and other expenses 3,797 depreciation and amortization 306 total general and administrative expenses $ 20,276 general and administrative expenses for the year ended december 31 , 2019 consisted primarily of salaries and related costs for personnel , including non-cash stock-based compensation . other general and administrative expenses included accounting and legal services , office and facility-related costs . total general and administrative expenses for the year ended december 31 , 2019 decreased by $ 2.7 million compared to the year ended december 31 , 2018. salaries and benefits decreased $ 1.7 million and legal costs decreased $ 0.8 million compared to the year ended december 31 , 2018. these decreases are slightly offset by an increase of $ 0.2 million in audit and other professional fees compared to the year ended december 31 , 2018. investment income investment income was $ 3.0 million for the year ended december 31 , 2019 and consisted of interest income earned on cash equivalents and investments . unrealized loss on marketable equity securities we recorded an unrealized loss on marketable equity securities of $ 2.2 million during the year ended december 31 , 2019. unrealized loss on marketable equity securities consists of changes in the fair value of shares of common stock of processa held by us , as discussed further in note 12 to the consolidated financial statements appearing elsewhere in this annual report on form 10-k. discussion of the year ended december 31 , 2018 the following table summarizes our results of operations for the year ended december 31 , 2018 . 64 replace_table_token_4_th license and research and development revenue license and research and development revenue was $ 10.5 million for the year ended december 31 , 2018. in 2018 , we granted processa an exclusive , worldwide , royalty-bearing license to develop , manufacture and commercialize ctp-499 in exchange for upfront consideration of 2,090,301 shares of common stock of processa with a fair value of $ 10.5 million on the date of the transaction , which was recorded as license and research and development revenue during fiscal year 2018. for further details related to our transaction with processa , refer to note 12 to the consolidated financial statements appearing elsewhere in this annual report on form 10-k. research and development expenses the following table summarizes our external research and development expenses , by program , for the year ended december 31 , 2018 , with our internal research expenses separately classified by category . replace_table_token_5_th research and development expenses were $ 43.1 million for the year ended december 31 , 2018. ctp-543 expenses primarily related to ongoing phase 2 clinical study and manufacturing costs
| liquidity and capital resources we have incurred cumulative losses and negative cash flows from operations since our inception in april 2006 , and as of december 31 , 2019 , we had an accumulated deficit of $ 194.7 million . we anticipate that we will continue to incur losses for at least the next several years . we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need additional capital to fund our operations , which we may raise through a combination of equity offerings , debt financings , collaboration and licensing arrangements and other sources . we have financed our operations to date primarily through the public offering and private placement of our equity , debt financing and funding from collaborations and patent assignments . during february 2014 , we completed our initial public offering , or ipo , whereby we sold 6,649,690 shares of common stock at a price to the public of $ 14.00 per share , raising aggregate net proceeds of $ 83.1 million . during march 2015 , we sold 3,300,000 shares of common stock through an underwritten public offering at a price to the public of $ 15.15 per share , raising aggregate net proceeds of $ 46.7 million . during january 2020 , we completed an underwriting public offering pursuant to which we sold 5,735,283 shares of common stock at the public offering price of $ 9.92 per share .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources we have incurred cumulative losses and negative cash flows from operations since our inception in april 2006 , and as of december 31 , 2019 , we had an accumulated deficit of $ 194.7 million . we anticipate that we will continue to incur losses for at least the next several years . we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need additional capital to fund our operations , which we may raise through a combination of equity offerings , debt financings , collaboration and licensing arrangements and other sources . we have financed our operations to date primarily through the public offering and private placement of our equity , debt financing and funding from collaborations and patent assignments . during february 2014 , we completed our initial public offering , or ipo , whereby we sold 6,649,690 shares of common stock at a price to the public of $ 14.00 per share , raising aggregate net proceeds of $ 83.1 million . during march 2015 , we sold 3,300,000 shares of common stock through an underwritten public offering at a price to the public of $ 15.15 per share , raising aggregate net proceeds of $ 46.7 million . during january 2020 , we completed an underwriting public offering pursuant to which we sold 5,735,283 shares of common stock at the public offering price of $ 9.92 per share .
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Suspicious Activity Report : on march 3 , 2017 , we entered into the vertex agreement with vertex , pursuant to which we agreed to sell and assign to vertex ctp-656 , now known as vx-561 , and other cystic fibrosis assets of ours for up to $ 250.0 million , subject to the satisfaction of certain closing conditions . on july 25 , 2017 , the transaction contemplated by the vertex agreement closed , and vertex paid us $ 160.0 million in cash consideration , with $ 16.0 million initially held in escrow , which was released to us in february 2019. additional information concerning the sale of ctp-656 is discussed in note 12 to the consolidated financial statements appearing elsewhere in this annual report on form 10-k. our operating results may fluctuate significantly from year to year , depending on the timing and magnitude of cash payments received pursuant to collaboration and licensing arrangements and other agreements and the timing and magnitude of clinical trial and other development activities under our current development programs . we generated net losses of $ 78.2 million and $ 56.0 million for the years ended december 31 , 2019 and 2018 , respectively . we expect to continue to incur significant expenses and operating losses for at least the next several years . we expect our expenses will increase substantially in connection with our ongoing activities as we continue research and development efforts and develop and conduct additional nonclinical studies and clinical trials with respect to our product candidates . 57 we do not expect to generate revenue from product sales unless and until we , or our collaborators , obtain marketing approval for one or more of our product candidates , which we expect will take a number of years and is subject to significant uncertainty . if we obtain , or believe that we are likely to obtain , marketing approval for any product candidates for which we retain commercialization rights , and intend to commercialize a product , we expect to incur significant commercialization expenses related to product sales , marketing , manufacturing and distribution . we expect to seek to fund our operations through a combination of equity offerings , debt financings , collaboration and licensing arrangements and other sources for at least the next several years . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all . our failure to raise capital or enter into such other arrangements as and when needed would force us to delay , limit , reduce or terminate our research and development programs and could have a material adverse effect on our financial condition and our ability to develop our products . we will need to generate significant revenues to achieve sustained profitability and we may never do so . collaborations we have entered into a number of collaborations for the research , development and commercialization of deuterated compounds . to date , our collaborations have provided us with significant funding for both our specific development programs and our dce platform . our collaborators also have applied their considerable scientific , development , regulatory and commercial capabilities to the development of our compounds . in addition , in some instances , where we develop and seek to collaborate with respect to deuterated analogs of marketed drugs or of drug candidates that are more advanced in clinical trials , our collaborators may be eligible for an expedited development or regulatory pathway by relying on previous clinical data regarding their corresponding non-deuterated compound . we believe that our collaborations have contributed to our ability to progress our product candidates and build our dce platform . our collaborations are discussed further in note 12 to the consolidated financial statements appearing elsewhere in this annual report on form 10-k. asset purchase agreement on march 3 , 2017 , we entered into the vertex agreement pursuant to which we sold and assigned to vertex ctp-656 , now known as vx-561 , and other cystic fibrosis assets of ours . on july 25 , 2017 , the transaction contemplated by the vertex agreement closed , and vertex paid us $ 160.0 million in cash consideration , with $ 16.0 million initially held in escrow , which was released to us in february 2019. additional information concerning the sale of ctp-656 is discussed in note 12 to the consolidated financial statements appearing elsewhere in this annual report on form 10-k. additionally , upon the achievement of certain milestone events , vertex has agreed to pay us an aggregate of up to $ 90.0 million . of this amount , $ 50.0 million will become payable to us upon receipt of fda marketing approval for a combination treatment regimen containing ctp-656 for patients with cystic fibrosis , and $ 40.0 million will become payable to us upon completion of a pricing and reimbursement agreement in the first of the united kingdom , germany or france with respect to a combination treatment regimen containing ctp-656 for patients with cystic fibrosis . financial operations overview revenue we have not generated any revenue from the sales of products . all of our revenue to date has been generated through collaboration , license and research arrangements with collaborators and nonprofit organizations for the development and commercialization of product candidates , a patent assignment agreement and an asset sale . on january 1 , 2018 , we adopted financial accounting standards board , or fasb , accounting standards update , or asu , 2014-09 , revenue from contracts with customers , which is also referred to as accounting standards codification , or asc , 606. we adopted asc 606 using the modified retrospective approach . story_separator_special_tag 62 replace_table_token_2_th license and research and development revenue license and research and development revenue was $ 1.1 million for the year ended december 31 , 2019. the revenue recognized in 2019 was primarily a result of the license agreement , or the cipla agreement , entered into in the first quarter of 2019 with cipla technologies llc , or cipla . we recognized $ 1.0 million in revenue associated with this arrangement for the year ended december 31 , 2019. for additional details related to the cipla agreement , see note 12 to the consolidated financial statements appearing elsewhere in this annual report on form 10-k. the decrease in license and research and development revenue compared to $ 10.5 million for the year ended december 31 , 2018 is due to the upfront consideration received from processa of 2,090,301 shares of its common stock with a fair value of $ 10.5 million on the date of the transaction , which was recorded in fiscal year 2018. for additional details related to the transaction with processa , see note 12 to the consolidated financial statements appearing elsewhere in this annual report on form 10-k. as of december 31 , 2019 , we had deferred revenue of : $ 7.8 million related to our collaboration with celgene corporation , or celgene , consisting of $ 1.3 million related to the r & d services performance obligation , $ 0.1 million related to the supply performance obligation and $ 6.4 million related to the first and second discount performance obligations ; and $ 2.8 million related to a payment received from glaxosmithkline , or gsk . research and development expenses the following table summarizes our external research and development expenses , by program , for the year ended december 31 , 2019 , with our internal research expenses separately classified by category . replace_table_token_3_th research and development expenses were $ 59.8 million for the year ended december 31 , 2019. ctp-543 expenses primarily related to clinical development , including multiple phase 2 clinical trials . ctp-692 expenses were attributable to the phase 1 clinical trials completed in 2019 and manufacturing costs to support the advancement of the ctp-692 program into a phase 2 63 clinical trial . employee-related expenses consisted primarily of cash and non-cash stock-based compensation expenses . facility-related expenses consisted primarily of rent and maintenance of our premises . external costs for other programs includes a $ 0.5 million payment to the nonprofit organization fast forward in the first quarter of 2019 under an existing agreement related to ctp-354 between us and fast forward , which was triggered by the upfront payment pursuant to the cipla agreement , and costs incurred to develop our research pipeline . the $ 16.7 million increase in research and development costs for the year ended december 31 , 2019 compared to the year ended december 31 , 2018 is due to multiple ctp-543 phase 2 clinical trials , multiple ctp-692 phase 1 clinical trials and manufacturing costs to support the continued development of ctp-692 . general and administrative expenses the following table summarizes our general and administrative expenses for the year ended december 31 , 2019. year ended december 31 , ( in thousands ) 2019 employee salaries and benefits $ 11,000 external professional service and legal expenses 5,173 facility , technology and other expenses 3,797 depreciation and amortization 306 total general and administrative expenses $ 20,276 general and administrative expenses for the year ended december 31 , 2019 consisted primarily of salaries and related costs for personnel , including non-cash stock-based compensation . other general and administrative expenses included accounting and legal services , office and facility-related costs . total general and administrative expenses for the year ended december 31 , 2019 decreased by $ 2.7 million compared to the year ended december 31 , 2018. salaries and benefits decreased $ 1.7 million and legal costs decreased $ 0.8 million compared to the year ended december 31 , 2018. these decreases are slightly offset by an increase of $ 0.2 million in audit and other professional fees compared to the year ended december 31 , 2018. investment income investment income was $ 3.0 million for the year ended december 31 , 2019 and consisted of interest income earned on cash equivalents and investments . unrealized loss on marketable equity securities we recorded an unrealized loss on marketable equity securities of $ 2.2 million during the year ended december 31 , 2019. unrealized loss on marketable equity securities consists of changes in the fair value of shares of common stock of processa held by us , as discussed further in note 12 to the consolidated financial statements appearing elsewhere in this annual report on form 10-k. discussion of the year ended december 31 , 2018 the following table summarizes our results of operations for the year ended december 31 , 2018 . 64 replace_table_token_4_th license and research and development revenue license and research and development revenue was $ 10.5 million for the year ended december 31 , 2018. in 2018 , we granted processa an exclusive , worldwide , royalty-bearing license to develop , manufacture and commercialize ctp-499 in exchange for upfront consideration of 2,090,301 shares of common stock of processa with a fair value of $ 10.5 million on the date of the transaction , which was recorded as license and research and development revenue during fiscal year 2018. for further details related to our transaction with processa , refer to note 12 to the consolidated financial statements appearing elsewhere in this annual report on form 10-k. research and development expenses the following table summarizes our external research and development expenses , by program , for the year ended december 31 , 2018 , with our internal research expenses separately classified by category . replace_table_token_5_th research and development expenses were $ 43.1 million for the year ended december 31 , 2018. ctp-543 expenses primarily related to ongoing phase 2 clinical study and manufacturing costs
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2,322 | replace_table_token_32_th blackbaud , inc. 2. drive sales effectiveness we are making investments to increase the effectiveness of our sales organization , with a focus on enabling our expanding sales teams with the talent , processes and tools to accelerate our revenue growth and improve effectiveness . in 2017 , we created a new senior vice president of global sales position to lead sales effectiveness across the organization . we continued to make investments in our sales , marketing and customer success organizations and improved our market coverage by deploying these resources into key markets , while bifurcating sales to focus on either finding new customers or cultivating existing customers . in addition , we are continuing to optimize our go-to-market sales strategies such as offering solutions and services tailored to the needs of customers operating within vertical markets including k-12 private schools , foundations , higher education and healthcare institutions , among others . our sales teams are now fully running and managed on a common sales operating model . this includes common procedures , training , key operating metrics , compensation plans and reporting , which is driving increased productivity . 3. expand tam into near adjacencies with acquisitions and product investments we will continue to evaluate compelling opportunities to acquire companies and acquire or build technologies and services . we will be guided by our acquisition criteria for considering attractive assets that expand our total addressable market ( `` tam `` ) , provide entry into new and near adjacencies , accelerate our shift to the cloud , accelerate revenue growth , are accretive to margins and present synergistic opportunities . in 2017 , we launched blackbaud labs as a means to incubate new ideas and foster our strong culture of innovation and creativity , with the sole focus of bringing new capabilities to market organically . we also announced the promotion of our new senior vice president of corporate strategy and business development , who led the effort for many of our acquisitions , including our 2017 acquisitions , academicworks and justgiving . academicworks is the market leader in scholarship management for higher education and k-12 institutions , foundations , and grant-making institutions . their cloud platform enables students to apply for all awards at an institution using one intuitive and streamlined process , while offering schools and awarding institutions a common platform for improved awarding , reporting , compliance , communication and stewardship of those awards . justgiving is the united kingdom-based online fundraising services provider , whose online social giving platform has played a powerful role in the growth of peer-to-peer fundraising . the acquisition enhances our capability to serve both individual donors and nonprofits , expanding the peer-to-peer fundraising capabilities we currently offer today through teamraiser and everydayhero , which are used by leading nonprofit organizations to connect their causes to the individuals who support them . justgiving also adds personal crowdfunding to our portfolio , which is an offering we did not previously provide and a fast-growing segment of charitable giving . additional details regarding our acquisitions of academicworks and justgiving are provided in note 3 to our consolidated financial statements in this report . both academicworks and justgiving meet the acquisition criteria discussed above . we remain active in the evaluation of acquisition opportunities to broaden our portfolio , provide better integrated solutions for our customers , differentiate ourselves from the competition and improve our financial performance . 4. improve operating efficiency we have largely completed the installations of best-in-breed back-office solutions that consolidate and standardize our business operations utilizing scalable tools and systems . our focus is now shifting towards optimizing those systems , as well as operational excellence and quality initiatives focused on streamlining processes to gain efficiency and scalability . our organizational model , which we have evolved over the last few years , is largely complete and allows us to gain efficiency and consistency in how we execute . we have centralized our operations , including marketing , sustained engineering , product management , finance , customer support , customer success and professional services , which allows us to better manage the entire customer experience . during 2017 , in an effort to improve operating efficiency and further our organizational objectives , we also initiated a plan to relocate some of our existing offices to highly modern and more collaborative workspaces with short-term financial commitments . these workspaces are also more centrally located for our employees and closer to our customers . replace_table_token_33_th blackbaud , inc. replace_table_token_34_th total revenue increased by $ 57.5 million during 2017 , which was primarily driven by growth in subscriptions revenue as our business model continues to shift towards providing predominantly cloud-based subscription solutions . subscriptions revenue also grew as a result of increases in the number of customers and the volume of transactions for which we process payments . services and other revenue , as well as maintenance revenue , declined during 2017 from our continued shift in focus towards selling cloud-based subscription solutions . in general , our nxt and other cloud-based solutions require less implementation services , which we expect to continue to negatively impact services and other revenue over time . in addition , we have also used promotions and discounts for our consulting services as incentives to accelerate the migration of our existing customer base from on-premises solutions toward our cloud-based subscriptions . in the near-term , the transition to subscription-based solutions negatively impacts total revenue growth , as time-based license revenue from subscription arrangements is deferred and recognized ratably over the subscription period , typically three years at contract inception , whereas on-premises license revenue from arrangements that include perpetual licenses is recognized up-front . story_separator_special_tag operating expenses replace_table_token_45_th sales , marketing and customer success expense includes compensation costs , variable sales commissions , travel-related expenses , advertising and marketing materials , public relations costs and allocated depreciation , facilities and it support costs . 2017 vs. 2016 we continue to make investments to drive sales effectiveness , which is a component of our four-point growth strategy to accelerate revenue growth . we also continue investing in our customer success organization to drive customer loyalty , retention and referrals . the increases in sales , marketing and customer success expense in dollars and as a percentage of total revenue during 2017 , when compared to 2016 , was primarily due to an increase in compensation costs of $ 12.8 million . also contributing to the increase in sales , marketing and customer success expense was an increase in commissions expense of $ 2.0 million . compensation costs increased primarily due to incremental headcount associated with the increase in direct sales , marketing , and customer success efforts of our growing operations . the increase in commissions expense was primarily driven by an increase in commissionable sales . 2016 vs. 2015 the increases in sales , marketing and customer success expense in dollars and as a percentage of total revenue during 2016 , when compared to 2015 , was primarily due to increases in compensation costs of $ 21.5 million and commissions expense of $ 5.6 million . compensation costs increased primarily due to incremental headcount to support the increase in direct sales , marketing , and customer success efforts of our growing operations . the expansion of our customer success program is targeted to ensure our customers are fully realizing the value of our solutions , which we believe will drive customer loyalty and retention and will also result in increased customer referrals . the increases in commission expense were primarily driven by increases in commissionable revenue during 2016 when compared to 2015. the inclusion of smart tuition for the full year in 2016 also contributed to the increases in compensation costs and commissions expense . replace_table_token_46_th blackbaud , inc. replace_table_token_47_th ( 1 ) not included in research and development expense for 2017 , 2016 and 2015 were $ 28.0 million , $ 26.2 million , and $ 15.5 million , respectively , of qualifying costs associated with development activities that are required to be capitalized under the internal-use software accounting guidance such as those related to development of our next generation cloud-based solutions , as well as development costs associated with acquired companies . qualifying capitalized software development costs associated with our cloud-based solutions are subsequently amortized to cost of subscriptions revenue over the related asset 's estimated useful life , which generally range from three to seven years . research and development expense includes compensation costs for engineering and product management personnel , third-party contractor expenses , software development tools and other expenses related to researching and developing new solutions , upgrading and enhancing existing solutions , and allocated depreciation , facilities and it support costs . 2017 vs. 2016 we continue to make investments to deliver integrated and open solutions in the cloud , which is a component of our four-point growth strategy to accelerate revenue growth . research and development expense remained unchanged during 2017 , when compared to 2016. during 2017 , an increase in compensation costs of $ 1.3 million associated with our addition of specialized engineering resources to help drive our solution development efforts was offset primarily by an increase in the amount of software development costs that were capitalized of $ 1.9 million . as discussed above , the increases in the amounts capitalized were a result of incurring more qualifying costs associated with development activities that are required to be capitalized under the internal-use software guidance . we expect that the amount of software development costs capitalized will continue to increase modestly in the near-term as we make investments in innovation , quality and the integration of our solutions , which we believe will drive long-term revenue growth . research and development expense decreased as a percentage of total revenue during 2017 , when compared to 2016 , primarily due to productivity gains , which have allowed us to scale our business . the increases in the amounts of software development costs capitalized as discussed above also contributed to the decreases in research and development expense as a percentage of total revenue . 2016 vs. 2015 the increase in research and development expense during 2016 , when compared to 2015 , was primarily due to an increase in compensation costs of $ 13.0 million . we have added engineering headcount to drive our solution development efforts , and the inclusion of smart tuition added to the increases in compensation costs . also contributing to the increase in research and development expense during 2016 was an increase in third-party contractor expenses of $ 1.8 million , to assist in our solution development efforts . partially offsetting these increases during 2016 was an increase of $ 10.7 million in the amount of software development costs that were capitalized . as discussed above , the increase in the amount capitalized was a result of incurring more qualifying costs associated with development activities that are required to be capitalized under the internal-use software accounting guidance . research and development expense decreased as a percentage of total revenue during 2016 , when compared to 2015 , primarily due to the increase in the amount of software development costs capitalized as discussed above . replace_table_token_48_th blackbaud , inc. replace_table_token_49_th general and administrative expense consists primarily of compensation costs for general corporate functions , including senior management , finance , accounting , legal , human resources and corporate development , third-party professional fees , insurance , data security costs , allocated depreciation , facilities and it support costs , acquisition-related expense and other administrative expenses . 2017 vs. 2016 the increase in general and
| net cash used in investing activities of $ 184.9 million increased by $ 137.5 million during 2017 , when compared to 2016. during 2017 , we used net cash of $ 146.8 million for the acquisitions of academicworks and justgiving compared to $ 3.4 million spent on investments in acquired companies in 2016. we used $ 28.3 million of cash for software development costs , which was up modestly from cash spent during 2016 , as we continue to make investments in innovation , quality and the integration of our solutions cloud-based solutions . we also spent $ 10.2 million of cash for purchases of property and equipment during 2017 , which was down $ 7.5 million from cash spent in 2016. the decrease in cash outlays for property and equipment was primarily driven by a shift toward leasing certain equipment that we have historically purchased . cash outlays for operating leases are presented in operating cash flows . 2016 vs. 2015 net cash used in investing activities of $ 47.4 million decreased by $ 93.9 million during 2016 , when compared to 2015. during 2016 , we used $ 26.4 million of cash for software development costs , which was up $ 10.9 million from cash spent during 2015. the increase in cash outlays for software development costs was primarily driven by development activities related to our next generation nxt and luminate cloud-based solutions . we spent $ 17.7 million of cash for purchases of property and equipment during 2016 , which was relatively consistent with the amount spent in 2015 , as we continued to invest in our information technology platforms and infrastructure used in the delivery of our solutions to customers as well as various facilities upgrades .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash used in investing activities of $ 184.9 million increased by $ 137.5 million during 2017 , when compared to 2016. during 2017 , we used net cash of $ 146.8 million for the acquisitions of academicworks and justgiving compared to $ 3.4 million spent on investments in acquired companies in 2016. we used $ 28.3 million of cash for software development costs , which was up modestly from cash spent during 2016 , as we continue to make investments in innovation , quality and the integration of our solutions cloud-based solutions . we also spent $ 10.2 million of cash for purchases of property and equipment during 2017 , which was down $ 7.5 million from cash spent in 2016. the decrease in cash outlays for property and equipment was primarily driven by a shift toward leasing certain equipment that we have historically purchased . cash outlays for operating leases are presented in operating cash flows . 2016 vs. 2015 net cash used in investing activities of $ 47.4 million decreased by $ 93.9 million during 2016 , when compared to 2015. during 2016 , we used $ 26.4 million of cash for software development costs , which was up $ 10.9 million from cash spent during 2015. the increase in cash outlays for software development costs was primarily driven by development activities related to our next generation nxt and luminate cloud-based solutions . we spent $ 17.7 million of cash for purchases of property and equipment during 2016 , which was relatively consistent with the amount spent in 2015 , as we continued to invest in our information technology platforms and infrastructure used in the delivery of our solutions to customers as well as various facilities upgrades .
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Suspicious Activity Report : replace_table_token_32_th blackbaud , inc. 2. drive sales effectiveness we are making investments to increase the effectiveness of our sales organization , with a focus on enabling our expanding sales teams with the talent , processes and tools to accelerate our revenue growth and improve effectiveness . in 2017 , we created a new senior vice president of global sales position to lead sales effectiveness across the organization . we continued to make investments in our sales , marketing and customer success organizations and improved our market coverage by deploying these resources into key markets , while bifurcating sales to focus on either finding new customers or cultivating existing customers . in addition , we are continuing to optimize our go-to-market sales strategies such as offering solutions and services tailored to the needs of customers operating within vertical markets including k-12 private schools , foundations , higher education and healthcare institutions , among others . our sales teams are now fully running and managed on a common sales operating model . this includes common procedures , training , key operating metrics , compensation plans and reporting , which is driving increased productivity . 3. expand tam into near adjacencies with acquisitions and product investments we will continue to evaluate compelling opportunities to acquire companies and acquire or build technologies and services . we will be guided by our acquisition criteria for considering attractive assets that expand our total addressable market ( `` tam `` ) , provide entry into new and near adjacencies , accelerate our shift to the cloud , accelerate revenue growth , are accretive to margins and present synergistic opportunities . in 2017 , we launched blackbaud labs as a means to incubate new ideas and foster our strong culture of innovation and creativity , with the sole focus of bringing new capabilities to market organically . we also announced the promotion of our new senior vice president of corporate strategy and business development , who led the effort for many of our acquisitions , including our 2017 acquisitions , academicworks and justgiving . academicworks is the market leader in scholarship management for higher education and k-12 institutions , foundations , and grant-making institutions . their cloud platform enables students to apply for all awards at an institution using one intuitive and streamlined process , while offering schools and awarding institutions a common platform for improved awarding , reporting , compliance , communication and stewardship of those awards . justgiving is the united kingdom-based online fundraising services provider , whose online social giving platform has played a powerful role in the growth of peer-to-peer fundraising . the acquisition enhances our capability to serve both individual donors and nonprofits , expanding the peer-to-peer fundraising capabilities we currently offer today through teamraiser and everydayhero , which are used by leading nonprofit organizations to connect their causes to the individuals who support them . justgiving also adds personal crowdfunding to our portfolio , which is an offering we did not previously provide and a fast-growing segment of charitable giving . additional details regarding our acquisitions of academicworks and justgiving are provided in note 3 to our consolidated financial statements in this report . both academicworks and justgiving meet the acquisition criteria discussed above . we remain active in the evaluation of acquisition opportunities to broaden our portfolio , provide better integrated solutions for our customers , differentiate ourselves from the competition and improve our financial performance . 4. improve operating efficiency we have largely completed the installations of best-in-breed back-office solutions that consolidate and standardize our business operations utilizing scalable tools and systems . our focus is now shifting towards optimizing those systems , as well as operational excellence and quality initiatives focused on streamlining processes to gain efficiency and scalability . our organizational model , which we have evolved over the last few years , is largely complete and allows us to gain efficiency and consistency in how we execute . we have centralized our operations , including marketing , sustained engineering , product management , finance , customer support , customer success and professional services , which allows us to better manage the entire customer experience . during 2017 , in an effort to improve operating efficiency and further our organizational objectives , we also initiated a plan to relocate some of our existing offices to highly modern and more collaborative workspaces with short-term financial commitments . these workspaces are also more centrally located for our employees and closer to our customers . replace_table_token_33_th blackbaud , inc. replace_table_token_34_th total revenue increased by $ 57.5 million during 2017 , which was primarily driven by growth in subscriptions revenue as our business model continues to shift towards providing predominantly cloud-based subscription solutions . subscriptions revenue also grew as a result of increases in the number of customers and the volume of transactions for which we process payments . services and other revenue , as well as maintenance revenue , declined during 2017 from our continued shift in focus towards selling cloud-based subscription solutions . in general , our nxt and other cloud-based solutions require less implementation services , which we expect to continue to negatively impact services and other revenue over time . in addition , we have also used promotions and discounts for our consulting services as incentives to accelerate the migration of our existing customer base from on-premises solutions toward our cloud-based subscriptions . in the near-term , the transition to subscription-based solutions negatively impacts total revenue growth , as time-based license revenue from subscription arrangements is deferred and recognized ratably over the subscription period , typically three years at contract inception , whereas on-premises license revenue from arrangements that include perpetual licenses is recognized up-front . story_separator_special_tag operating expenses replace_table_token_45_th sales , marketing and customer success expense includes compensation costs , variable sales commissions , travel-related expenses , advertising and marketing materials , public relations costs and allocated depreciation , facilities and it support costs . 2017 vs. 2016 we continue to make investments to drive sales effectiveness , which is a component of our four-point growth strategy to accelerate revenue growth . we also continue investing in our customer success organization to drive customer loyalty , retention and referrals . the increases in sales , marketing and customer success expense in dollars and as a percentage of total revenue during 2017 , when compared to 2016 , was primarily due to an increase in compensation costs of $ 12.8 million . also contributing to the increase in sales , marketing and customer success expense was an increase in commissions expense of $ 2.0 million . compensation costs increased primarily due to incremental headcount associated with the increase in direct sales , marketing , and customer success efforts of our growing operations . the increase in commissions expense was primarily driven by an increase in commissionable sales . 2016 vs. 2015 the increases in sales , marketing and customer success expense in dollars and as a percentage of total revenue during 2016 , when compared to 2015 , was primarily due to increases in compensation costs of $ 21.5 million and commissions expense of $ 5.6 million . compensation costs increased primarily due to incremental headcount to support the increase in direct sales , marketing , and customer success efforts of our growing operations . the expansion of our customer success program is targeted to ensure our customers are fully realizing the value of our solutions , which we believe will drive customer loyalty and retention and will also result in increased customer referrals . the increases in commission expense were primarily driven by increases in commissionable revenue during 2016 when compared to 2015. the inclusion of smart tuition for the full year in 2016 also contributed to the increases in compensation costs and commissions expense . replace_table_token_46_th blackbaud , inc. replace_table_token_47_th ( 1 ) not included in research and development expense for 2017 , 2016 and 2015 were $ 28.0 million , $ 26.2 million , and $ 15.5 million , respectively , of qualifying costs associated with development activities that are required to be capitalized under the internal-use software accounting guidance such as those related to development of our next generation cloud-based solutions , as well as development costs associated with acquired companies . qualifying capitalized software development costs associated with our cloud-based solutions are subsequently amortized to cost of subscriptions revenue over the related asset 's estimated useful life , which generally range from three to seven years . research and development expense includes compensation costs for engineering and product management personnel , third-party contractor expenses , software development tools and other expenses related to researching and developing new solutions , upgrading and enhancing existing solutions , and allocated depreciation , facilities and it support costs . 2017 vs. 2016 we continue to make investments to deliver integrated and open solutions in the cloud , which is a component of our four-point growth strategy to accelerate revenue growth . research and development expense remained unchanged during 2017 , when compared to 2016. during 2017 , an increase in compensation costs of $ 1.3 million associated with our addition of specialized engineering resources to help drive our solution development efforts was offset primarily by an increase in the amount of software development costs that were capitalized of $ 1.9 million . as discussed above , the increases in the amounts capitalized were a result of incurring more qualifying costs associated with development activities that are required to be capitalized under the internal-use software guidance . we expect that the amount of software development costs capitalized will continue to increase modestly in the near-term as we make investments in innovation , quality and the integration of our solutions , which we believe will drive long-term revenue growth . research and development expense decreased as a percentage of total revenue during 2017 , when compared to 2016 , primarily due to productivity gains , which have allowed us to scale our business . the increases in the amounts of software development costs capitalized as discussed above also contributed to the decreases in research and development expense as a percentage of total revenue . 2016 vs. 2015 the increase in research and development expense during 2016 , when compared to 2015 , was primarily due to an increase in compensation costs of $ 13.0 million . we have added engineering headcount to drive our solution development efforts , and the inclusion of smart tuition added to the increases in compensation costs . also contributing to the increase in research and development expense during 2016 was an increase in third-party contractor expenses of $ 1.8 million , to assist in our solution development efforts . partially offsetting these increases during 2016 was an increase of $ 10.7 million in the amount of software development costs that were capitalized . as discussed above , the increase in the amount capitalized was a result of incurring more qualifying costs associated with development activities that are required to be capitalized under the internal-use software accounting guidance . research and development expense decreased as a percentage of total revenue during 2016 , when compared to 2015 , primarily due to the increase in the amount of software development costs capitalized as discussed above . replace_table_token_48_th blackbaud , inc. replace_table_token_49_th general and administrative expense consists primarily of compensation costs for general corporate functions , including senior management , finance , accounting , legal , human resources and corporate development , third-party professional fees , insurance , data security costs , allocated depreciation , facilities and it support costs , acquisition-related expense and other administrative expenses . 2017 vs. 2016 the increase in general and
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2,323 | โ on april 4 , 2016 , the company acquired 100 % of menber 's for $ 19.2 million , net of cash acquired and after settlement of a working capital adjustment . located in legnago , italy , menber 's specializes in the design , manufacturing , and selling of manual and electrical battery switches and trailer connectors for commercial vehicles . the acquisition expands the company 's commercial vehicle platform globally . โ on march 25 , 2016 , the company acquired polyswitch , the circuit protection business of te connectivity ltd. , for $ 348.3 million , net of cash acquired and after settlement of certain post-closing adjustments . polyswitch has operations in fremont , california and manufacturing facilities in shanghai and kunshan , china , and tsukuba , japan . the acquisition allows the company to strengthen its global circuit protection product portfolio , as well as strengthen its presence in the automotive electronics and battery end markets . the acquisition also significantly increases the company 's presence in japan . โ on october 1 , 2015 , the company acquired 100 % of sigmar . the total purchase price for sigmar was $ 6.5 million , net of cash acquired and including estimated additional net payments of up to $ 0.9 million , a portion of which is subject to the achievement of certain milestones . located in ozegna , italy , sigmar is a leading global manufacturer of water-in-fuel and scr quality sensors , as well as diesel fuel heaters , solenoid valves , and rotating oil filters for automotive and commercial vehicle applications . the acquisition further expands the company 's automotive sensor product line offerings . โ financing โ the company increased its already strong liquidity position during 2016. cash flow from operations was $ 180.1 million for 2016 , which was a 9 % increase compared to the prior year . in march 2016 , the company completed the refinancing of its credit facility , increasing capacity to $ 700 million with the potential for future increases of up to an additional $ 150 million and extending the maturity to march 2021. in december 2016 , the company completed a private placement of approximately $ 350 million of senior notes denominated in both u.s. dollars and euros , a portion of which was funded in december with the remaining funding occurring in february 2017. the senior notes range from five to twelve year maturities and have an average interest rate of approximately 2.25 % . โ asset impairment โ during 2016 , the potash mining industry experienced a continued decline in market pricing . due to this continuing decline in potash pricing , the custom products reporting unit recognized charges of $ 14.8 million to write down the reporting unit 's carrying value . the charges included a goodwill impairment loss of $ 8.8 million and intangible assets impairments aggregating $ 6.0 million , including a $ 3.8 million reduction of the custom products trade names to a $ 0.7 million remaining value and a $ 2.2 million reduction of the reporting unit 's customer relationships to zero value . โ outlook โ sales for the first quarter of 2017 are expected to be in the range of $ 277 to $ 287 million which represents 29 % revenue growth over the first quarter of 2016 , at the midpoint of the range . results of operations โ 2016 compared with 2015 the following table summarizes the company 's consolidated results of operations for periods presented . the fiscal year 2016 includes approximately $ 50 . 0 million of non-segment charges . these included $ 14.8 million of charges related to the impairment of the custom products reporting unit , $ 21.4 million of acquisition and integration costs associated with the company 's 2016 acquisitions , primarily polyswitch , $ 7.8 million of non-cash fair value step-up inventory charges relating to the company 's 2016 acquisitions , primarily polyswitch , as described in note 3 , acquisitions , of the notes to consolidated financial statements included in this annual report , $ 1.9 million in charges related to the closure of the company 's manufacturing facility in denmark , $ 1.6 million related to the company 's transfer of its reed sensor manufacturing operations from the u.s. and china to the philippines , and $ 2.5 million related to restructuring costs . 19 fiscal year 2015 includes approximately $ 45.2 million of other non-segment charges . these included $ 5.2 million related to the company 's transfer of its reed sensor manufacturing operations from the u.s. and china to the philippines , $ 3.6 million related to restructuring , $ 4.6 million related to acquisition costs and $ 31.9 million of expense related to the planned termination of the u.s. pension as described in note 10 , benefit plans , of the notes to consolidated financial statements included in this annual report . fiscal year 2016 also included approximately $ 0.5 million in foreign currency expenses primarily attributable to changes in the value of the euro , philippine peso and chinese renminbi against the u.s. dollar , while fiscal year 2015 also included $ 1.5 million in foreign currency gains primarily attributable to changes in the value of both the euro and philippine peso against the u.s. dollar . replace_table_token_5_th sales net sales for 2016 of $ 1,056.2 million increased $ 188.3 million , or 22 % , compared to the prior year , reflecting $ 170.2 million of incremental revenues from businesses acquired over the previous two years as well as organic growth in the electronics and automotive segments , partially offset by lower sales from the industrial segment due to weaker end markets . the company also experienced $ 7.3 million in unfavorable foreign currency effects in 2016 compared to 2015 primarily resulting from sales denominated in chinese renminbi . story_separator_special_tag million , or 7 % , in 2015 compared to 2014 primarily due to net unfavorable currency effects of $ 32.8 million primarily from sales denominated in the euro . excluding currency effects , european sales increased $ 21.5 million , or 13 % , reflecting strong demand across all segments . automotive sales decreased $ 6.9 million , or 7 % , in 2015 reflecting net unfavorable currency effects . excluding currency effects , automotive sales increased $ 14.2 million , or 13 % , reflecting strong demand for automotive sensor products . electronics sales decreased $ 3.7 million , or 7 % , reflecting the impact of net unfavorable currency effects . excluding currency effects , electronics sales increased $ 6.6 million , or 13 % , reflecting strong demand for semiconductor products . industrial sales decreased $ 0.7 million , or 10 % , in 2015 primarily from the impact of net unfavorable currency effects . excluding currency effects , industrial sales increased $ 0.7 million , or 10 % . 24 asia-pacific asia-pacific sales increased $ 3.6 million , or 1 % , in 2015 compared to 2014 primarily due to increased demand for automotive and industrial products offset by lower electronics sales . net unfavorable currency effects amounted to $ 2.5 million . excluding currency effects , asia-pacific sales increased $ 6.1 million , or 2 % . electronics sales decreased $ 4.1 million , or 2 % , reflecting weakness in the taiwan , japan , and korea markets . automotive sales increased $ 6.4 million , or 11 % , reflecting continued increased demand for passenger vehicles in china as well as gains in market share . industrial sales increased $ 1.4 million , or 19 % . liquidity and capital resources as of december 31 , 2016 , $ 266.7 million of the $ 275.1 million of the company 's cash and cash equivalents was held by foreign subsidiaries . of the $ 266.7 million held by foreign subsidiaries , at least $ 50 million can be repatriated with minimal tax consequences , considering both u.s. and foreign taxes . other than amounts which can be repatriated with minimal tax consequences , the company expects to maintain its foreign cash balances for local operating requirements , to provide funds for future capital expenditures and for potential acquisitions and does not expect to repatriate these funds to the u.s. the company has historically supported its liquidity needs through cash flows from operations . management expects that the company 's ( i ) current level of cash , cash equivalents , and marketable securities , ( ii ) current and forecasted cash flows from operations , ( iii ) availability under existing funding arrangements , and ( iv ) access to capital in the capital markets will provide sufficient funds to support the company 's operations , capital expenditures , investments , and debt obligations on both a short-term and long-term basis . revolving credit facility/term loan on march 4 , 2016 , the company entered into a new five-year credit agreement with a group of lenders for up to $ 700.0 million and terminated the company 's previous credit agreement . the new credit agreement consists of an unsecured revolving credit facility of $ 575.0 million and an unsecured term loan credit facility of up to $ 125.0 million . in addition , the company has the ability , from time to time , to increase the size of the revolving credit facility and the term loan facility by up to an additional $ 150.0 million , in the aggregate , in each case in minimum increments of $ 25.0 million , subject to certain conditions and the agreement of participating lenders . for the term loan credit facility , the company is required to make quarterly principal payments of $ 1.6 million through march 31 , 2018 and $ 3.1 million from june 30 , 2018 through december 31 , 2020 with the remaining balance due on march 4 , 2021. outstanding borrowings under the credit agreement bear interest , at the company 's option , at either libor , fixed for interest periods of one , two , three or six month periods , plus 1.00 % to 2.00 % , or at the bank 's base rate , as defined , plus 0.00 % to 1.00 % , based upon the company 's consolidated leverage ratio , as defined . the company is also required to pay commitment fees on unused portions of the credit agreement ranging from 0.15 % to 0.30 % , based on the consolidated leverage ratio , as defined . the effective interest rate on outstanding borrowings under the credit facility was 2.27 % at december 31 , 2016. as of december 31 , 2016 , the company had $ 0.1 million outstanding in letters of credit and had available $ 462.4 million of borrowing capacity under the revolving credit facility . further information regarding the company 's credit agreement is provided in note 8 , debt , of the notes to consolidated financial statements included in this annual report . senior notes on december 8 , 2016 , the company entered into a note purchase agreement , pursuant to which the company issued and sold 212 million aggregate principal amount of senior notes in two series . the funding date for the euro denominated senior notes occurred on december 8 , 2016 for 117 million in aggregate amount of 1.14 % senior notes , series a , due december 8 , 2023 , and 95 million in aggregate amount of 1.83 % senior notes , series b due december 8 , 2028 ( together , the โ euro senior notes โ ) . interest on the euro senior notes is payable semiannually on june 8 and december 8 , commencing june 8 , 2017. on december 8 , 2016 , the company entered into a
| debt , of the notes to consolidated financial statements included in this annual report . 25 cash flow overview replace_table_token_11_th cash flow from operating activities net cash provided by operating activities increased $ 14.3 million in 2016 compared to 2015. cash provided by operating activities in 2016 included $ 104.5 million in net income , $ 83.0 million in non-cash adjustments ( primarily $ 53.1 million in depreciation and amortization ) and $ 7.4 million of unfavorable changes in operating assets and liabilities . changes in operating assets and liabilities ( including short-term and long-term items ) that negatively impacted cash flows in 2016 consisted of changes in accounts receivable ( $ 25.2 million ) , accrued taxes ( $ 18.1 million ) and prepaid expenses and other ( $ 0.3 million ) . the increase in accounts receivable reflects increased sales in 2016 compared to the prior year . positively impacting cash flows were changes in inventory ( $ 8.5 million ) , accrued expenses including post-retirement ( $ 2.3 million ) , accounts payable ( $ 19.2 million ) and accrued payroll and severance ( $ 6.1 million ) . cash flow from investing activities net cash used in investing activities increased $ 467.1 million in 2016 compared to 2015 primarily due to the acquisitions of polyswitch ( $ 344.5 million , net of cash acquired ) , the on portfolio business ( $ 104.0 million ) , and menber 's ( $ 19.2 million ) . cash flow from financing activities net cash provided by financing activities increased $ 351.9 million in 2016 compared to 2015. the increase was primarily due to an increase in net proceeds from debt of $ 314.8 million in 2016 compared to 2015. in march the company replaced its credit agreement with a new agreement and in december the company received proceeds from the issuance of senior notes . also contributing to the increase in comparative periods was the use of cash for the share repurchase in 2015 of $ 31.3 million . information regarding the company 's debt is provided in note 8 , debt , of the notes to consolidated financial statements included in this annual report .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```debt , of the notes to consolidated financial statements included in this annual report . 25 cash flow overview replace_table_token_11_th cash flow from operating activities net cash provided by operating activities increased $ 14.3 million in 2016 compared to 2015. cash provided by operating activities in 2016 included $ 104.5 million in net income , $ 83.0 million in non-cash adjustments ( primarily $ 53.1 million in depreciation and amortization ) and $ 7.4 million of unfavorable changes in operating assets and liabilities . changes in operating assets and liabilities ( including short-term and long-term items ) that negatively impacted cash flows in 2016 consisted of changes in accounts receivable ( $ 25.2 million ) , accrued taxes ( $ 18.1 million ) and prepaid expenses and other ( $ 0.3 million ) . the increase in accounts receivable reflects increased sales in 2016 compared to the prior year . positively impacting cash flows were changes in inventory ( $ 8.5 million ) , accrued expenses including post-retirement ( $ 2.3 million ) , accounts payable ( $ 19.2 million ) and accrued payroll and severance ( $ 6.1 million ) . cash flow from investing activities net cash used in investing activities increased $ 467.1 million in 2016 compared to 2015 primarily due to the acquisitions of polyswitch ( $ 344.5 million , net of cash acquired ) , the on portfolio business ( $ 104.0 million ) , and menber 's ( $ 19.2 million ) . cash flow from financing activities net cash provided by financing activities increased $ 351.9 million in 2016 compared to 2015. the increase was primarily due to an increase in net proceeds from debt of $ 314.8 million in 2016 compared to 2015. in march the company replaced its credit agreement with a new agreement and in december the company received proceeds from the issuance of senior notes . also contributing to the increase in comparative periods was the use of cash for the share repurchase in 2015 of $ 31.3 million . information regarding the company 's debt is provided in note 8 , debt , of the notes to consolidated financial statements included in this annual report .
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Suspicious Activity Report : โ on april 4 , 2016 , the company acquired 100 % of menber 's for $ 19.2 million , net of cash acquired and after settlement of a working capital adjustment . located in legnago , italy , menber 's specializes in the design , manufacturing , and selling of manual and electrical battery switches and trailer connectors for commercial vehicles . the acquisition expands the company 's commercial vehicle platform globally . โ on march 25 , 2016 , the company acquired polyswitch , the circuit protection business of te connectivity ltd. , for $ 348.3 million , net of cash acquired and after settlement of certain post-closing adjustments . polyswitch has operations in fremont , california and manufacturing facilities in shanghai and kunshan , china , and tsukuba , japan . the acquisition allows the company to strengthen its global circuit protection product portfolio , as well as strengthen its presence in the automotive electronics and battery end markets . the acquisition also significantly increases the company 's presence in japan . โ on october 1 , 2015 , the company acquired 100 % of sigmar . the total purchase price for sigmar was $ 6.5 million , net of cash acquired and including estimated additional net payments of up to $ 0.9 million , a portion of which is subject to the achievement of certain milestones . located in ozegna , italy , sigmar is a leading global manufacturer of water-in-fuel and scr quality sensors , as well as diesel fuel heaters , solenoid valves , and rotating oil filters for automotive and commercial vehicle applications . the acquisition further expands the company 's automotive sensor product line offerings . โ financing โ the company increased its already strong liquidity position during 2016. cash flow from operations was $ 180.1 million for 2016 , which was a 9 % increase compared to the prior year . in march 2016 , the company completed the refinancing of its credit facility , increasing capacity to $ 700 million with the potential for future increases of up to an additional $ 150 million and extending the maturity to march 2021. in december 2016 , the company completed a private placement of approximately $ 350 million of senior notes denominated in both u.s. dollars and euros , a portion of which was funded in december with the remaining funding occurring in february 2017. the senior notes range from five to twelve year maturities and have an average interest rate of approximately 2.25 % . โ asset impairment โ during 2016 , the potash mining industry experienced a continued decline in market pricing . due to this continuing decline in potash pricing , the custom products reporting unit recognized charges of $ 14.8 million to write down the reporting unit 's carrying value . the charges included a goodwill impairment loss of $ 8.8 million and intangible assets impairments aggregating $ 6.0 million , including a $ 3.8 million reduction of the custom products trade names to a $ 0.7 million remaining value and a $ 2.2 million reduction of the reporting unit 's customer relationships to zero value . โ outlook โ sales for the first quarter of 2017 are expected to be in the range of $ 277 to $ 287 million which represents 29 % revenue growth over the first quarter of 2016 , at the midpoint of the range . results of operations โ 2016 compared with 2015 the following table summarizes the company 's consolidated results of operations for periods presented . the fiscal year 2016 includes approximately $ 50 . 0 million of non-segment charges . these included $ 14.8 million of charges related to the impairment of the custom products reporting unit , $ 21.4 million of acquisition and integration costs associated with the company 's 2016 acquisitions , primarily polyswitch , $ 7.8 million of non-cash fair value step-up inventory charges relating to the company 's 2016 acquisitions , primarily polyswitch , as described in note 3 , acquisitions , of the notes to consolidated financial statements included in this annual report , $ 1.9 million in charges related to the closure of the company 's manufacturing facility in denmark , $ 1.6 million related to the company 's transfer of its reed sensor manufacturing operations from the u.s. and china to the philippines , and $ 2.5 million related to restructuring costs . 19 fiscal year 2015 includes approximately $ 45.2 million of other non-segment charges . these included $ 5.2 million related to the company 's transfer of its reed sensor manufacturing operations from the u.s. and china to the philippines , $ 3.6 million related to restructuring , $ 4.6 million related to acquisition costs and $ 31.9 million of expense related to the planned termination of the u.s. pension as described in note 10 , benefit plans , of the notes to consolidated financial statements included in this annual report . fiscal year 2016 also included approximately $ 0.5 million in foreign currency expenses primarily attributable to changes in the value of the euro , philippine peso and chinese renminbi against the u.s. dollar , while fiscal year 2015 also included $ 1.5 million in foreign currency gains primarily attributable to changes in the value of both the euro and philippine peso against the u.s. dollar . replace_table_token_5_th sales net sales for 2016 of $ 1,056.2 million increased $ 188.3 million , or 22 % , compared to the prior year , reflecting $ 170.2 million of incremental revenues from businesses acquired over the previous two years as well as organic growth in the electronics and automotive segments , partially offset by lower sales from the industrial segment due to weaker end markets . the company also experienced $ 7.3 million in unfavorable foreign currency effects in 2016 compared to 2015 primarily resulting from sales denominated in chinese renminbi . story_separator_special_tag million , or 7 % , in 2015 compared to 2014 primarily due to net unfavorable currency effects of $ 32.8 million primarily from sales denominated in the euro . excluding currency effects , european sales increased $ 21.5 million , or 13 % , reflecting strong demand across all segments . automotive sales decreased $ 6.9 million , or 7 % , in 2015 reflecting net unfavorable currency effects . excluding currency effects , automotive sales increased $ 14.2 million , or 13 % , reflecting strong demand for automotive sensor products . electronics sales decreased $ 3.7 million , or 7 % , reflecting the impact of net unfavorable currency effects . excluding currency effects , electronics sales increased $ 6.6 million , or 13 % , reflecting strong demand for semiconductor products . industrial sales decreased $ 0.7 million , or 10 % , in 2015 primarily from the impact of net unfavorable currency effects . excluding currency effects , industrial sales increased $ 0.7 million , or 10 % . 24 asia-pacific asia-pacific sales increased $ 3.6 million , or 1 % , in 2015 compared to 2014 primarily due to increased demand for automotive and industrial products offset by lower electronics sales . net unfavorable currency effects amounted to $ 2.5 million . excluding currency effects , asia-pacific sales increased $ 6.1 million , or 2 % . electronics sales decreased $ 4.1 million , or 2 % , reflecting weakness in the taiwan , japan , and korea markets . automotive sales increased $ 6.4 million , or 11 % , reflecting continued increased demand for passenger vehicles in china as well as gains in market share . industrial sales increased $ 1.4 million , or 19 % . liquidity and capital resources as of december 31 , 2016 , $ 266.7 million of the $ 275.1 million of the company 's cash and cash equivalents was held by foreign subsidiaries . of the $ 266.7 million held by foreign subsidiaries , at least $ 50 million can be repatriated with minimal tax consequences , considering both u.s. and foreign taxes . other than amounts which can be repatriated with minimal tax consequences , the company expects to maintain its foreign cash balances for local operating requirements , to provide funds for future capital expenditures and for potential acquisitions and does not expect to repatriate these funds to the u.s. the company has historically supported its liquidity needs through cash flows from operations . management expects that the company 's ( i ) current level of cash , cash equivalents , and marketable securities , ( ii ) current and forecasted cash flows from operations , ( iii ) availability under existing funding arrangements , and ( iv ) access to capital in the capital markets will provide sufficient funds to support the company 's operations , capital expenditures , investments , and debt obligations on both a short-term and long-term basis . revolving credit facility/term loan on march 4 , 2016 , the company entered into a new five-year credit agreement with a group of lenders for up to $ 700.0 million and terminated the company 's previous credit agreement . the new credit agreement consists of an unsecured revolving credit facility of $ 575.0 million and an unsecured term loan credit facility of up to $ 125.0 million . in addition , the company has the ability , from time to time , to increase the size of the revolving credit facility and the term loan facility by up to an additional $ 150.0 million , in the aggregate , in each case in minimum increments of $ 25.0 million , subject to certain conditions and the agreement of participating lenders . for the term loan credit facility , the company is required to make quarterly principal payments of $ 1.6 million through march 31 , 2018 and $ 3.1 million from june 30 , 2018 through december 31 , 2020 with the remaining balance due on march 4 , 2021. outstanding borrowings under the credit agreement bear interest , at the company 's option , at either libor , fixed for interest periods of one , two , three or six month periods , plus 1.00 % to 2.00 % , or at the bank 's base rate , as defined , plus 0.00 % to 1.00 % , based upon the company 's consolidated leverage ratio , as defined . the company is also required to pay commitment fees on unused portions of the credit agreement ranging from 0.15 % to 0.30 % , based on the consolidated leverage ratio , as defined . the effective interest rate on outstanding borrowings under the credit facility was 2.27 % at december 31 , 2016. as of december 31 , 2016 , the company had $ 0.1 million outstanding in letters of credit and had available $ 462.4 million of borrowing capacity under the revolving credit facility . further information regarding the company 's credit agreement is provided in note 8 , debt , of the notes to consolidated financial statements included in this annual report . senior notes on december 8 , 2016 , the company entered into a note purchase agreement , pursuant to which the company issued and sold 212 million aggregate principal amount of senior notes in two series . the funding date for the euro denominated senior notes occurred on december 8 , 2016 for 117 million in aggregate amount of 1.14 % senior notes , series a , due december 8 , 2023 , and 95 million in aggregate amount of 1.83 % senior notes , series b due december 8 , 2028 ( together , the โ euro senior notes โ ) . interest on the euro senior notes is payable semiannually on june 8 and december 8 , commencing june 8 , 2017. on december 8 , 2016 , the company entered into a
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2,324 | accordingly , at the effective time of the merger , we issued 9,493,016 shares ( post reverse stock split ) of our common stock to dni as consideration in the merger , of which 949,302 shares ( post reverse stock split ) are being held in escrow as security for claims for indemnifiable losses in accordance with the merger agreement relating to the merger . as a result , immediately following the effective time of the merger , dni held 58 % of the outstanding shares of our common stock and the holders of our common stock immediately prior to the merger retained , in the aggregate , 42 % of the outstanding shares of our common stock . see note 2 to the consolidated financial statements set forth in part ii , item 8 of this report for additional information regarding the merger . common control transaction on december 31 , 2017 , dns ( a wholly owned subsidiary of ours ) acquired 100 % and 99.99 % of the common stock of d-mobile limited ( โ d-mobile โ ) and dasan india private limited ( dasan india ) , respectively , from dni . d-mobile and dasan india are resellers of our products in taiwan and india , respectively . the consideration payable by us to dni for the common stock is the net book value of d-mobile and dasan india at december 31 , 2017 , subject to final adjustments . the net book value of d-mobile and dasan india was an aggregate of $ 0.8 million . we accounted for these transactions as common control transactions , with the net assets transferred recorded at historical cost . the transactions did not result in a change in reporting entity and hence were accounted for prospectively . items affecting comparability of our financial results as discussed in note 2 to the consolidated financial statements set forth in part ii , item 8 of this report , the merger has been accounted for as a reverse acquisition under which dns was considered the accounting acquirer of legacy zhone . as such , our financial results presented in this annual report on form 10-k reflect the operating results of dns and its consolidated subsidiaries for the year-ended december 31 , 2015 and for the period from january 1 , 2016 through september 8 , 2016 and the operating results of both dns and legacy zhone and their respective consolidated subsidiaries for all periods from and after september 9 , 2016. our balance sheet as of december 31 , 2016 included the fair value of the assets and liabilities of legacy zhone as of the effective date of the merger . those assets include the fair value of acquired intangible assets and goodwill . the year ended december 31 , 2017 was the first fiscal year in which our financial results reflected a full year of operating results for both dns and legacy zhone and their respective consolidated subsidiaries . due to the foregoing , our financial results for the year ended december 31 , 2017 are not comparable to our financial results for prior years . critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements , which have been prepared in accordance with generally accepted accounting principles in the united states of america . the preparation of these consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets , liabilities , revenue and expenses , and related disclosure of contingent assets and liabilities . the policies discussed below are considered by management to be critical because changes in such estimates can materially affect the amount of our reported net income or loss . for all of these policies , management cautions that actual results may differ materially from these estimates under different assumptions or conditions . 28 revenue recognition we recognize revenue when the earnings process is complete . we recognize product revenue upon shipment of product under contractual terms which transfer title to customers upon shipment , under normal credit terms , net of estimated sales returns and allowances at the time of shipment . revenue is deferred if there are significant post-delivery obligations or if the fees are not fixed or determinable . when significant post-delivery obligations exist , revenue is deferred until such obligations are fulfilled . our arrangements generally do not have any significant post-delivery obligations . if our arrangements include customer acceptance provisions , revenue is recognized upon obtaining the signed acceptance certificate from the customer , unless we can objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement prior to obtaining the signed acceptance . in those instances where revenue is recognized prior to obtaining the signed acceptance certificate , we use successful completion of customer testing as the basis to objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement . we also consider historical acceptance experience with the customer , as well as the payment terms specified in the arrangement , when revenue is recognized prior to obtaining the signed acceptance certificate . when collectability is not reasonably assured , revenue is recognized when cash is collected . we make certain sales to product distributors . these customers are given certain privileges to return a portion of inventory . return privileges generally allow distributors to return inventory based on a percent of purchases made within a specific period of time . we recognize revenue on sales to distributors that have contractual return rights when the products have been sold by the distributors , unless there is sufficient customer specific sales and sales returns history to support revenue recognition upon shipment . story_separator_special_tag this increase was primarily related to an increase in our outstanding debt balance to $ 29.6 million at december 31 , 2017 from $ 24.4 million at december 31 , 2016. interest rates on our borrowings were relatively flat during 2017 and 2016. other expense , net other expense , net for 2017 was $ 0.7 million compared to $ 0.1 million in 2016. this includes $ 0.5 million of currency exchange loss in 2017 compared to currency exchange loss of $ 0.4 million in 2016. income tax provision ( benefit ) we recorded an income tax benefit of $ 2.1 million for the year ended 2017 compared to an income tax provision of $ 1.5 million for the year ended december 31 , 2016. the decrease during the fiscal year 2017 was mainly due to the release of valuation allowance against our net deferred tax assets in korea . management determined that it is more likely than not that the net deferred tax assets will be realized in this tax jurisdiction . on december 22 , 2017 , president trump signed the tax cuts and jobs act ( the โ act โ ) into law . the new legislation decreases the u.s. corporate federal income tax rate from 35 % to 21 % effective january 1 , 2018. the reduction in tax rate resulted in a $ 5.3 million reduction in net deferred tax assets . there was no impact on recorded deferred tax balances as the remeasurement of net deferred tax assets was offset by a change in valuation allowance . the act imposes a one-time deemed repatriation tax on undistributed foreign earnings . we did not have a deemed repatriation due to our foreign earnings deficits . the act also includes a number of other provisions including the elimination of loss carrybacks , limitations on the use of future losses , repeal of the alternative minimum tax regime , and the introduction of a base erosion and anti-abuse tax . these provisions are not expected to have immediate effect on us . 34 2016 compared with 2015 net revenue information about our net revenue for products and services for 2016 and 2015 is summarized below ( in millions ) : replace_table_token_8_th information about our net revenue for north america and international markets for 2016 and 2015 is summarized below ( in millions ) : replace_table_token_9_th net revenue increased 8 % or $ 11.1 million to $ 150.3 million for 2016 compared to $ 139.2 million for 2015 . the increase in net revenue was primarily due to the consummation of the merger in september 2016 , which resulted in the inclusion of net revenue from the legacy zhone business in 2016 for the period from and after the consummation of the merger . this increase was partially offset by a decrease in product revenue resulting from the decrease in sales to certain customers in korea . international net revenue decreased 3 % or $ 3.4 million to $ 131.4 million for 2016 compared to $ 134.8 million for 2015 , and represented 87 % of total net revenue compared with 97 % in 2015 . the decrease in international net revenue was primarily due to a decrease in sales to certain customers in korea , which resulted in a decrease in net revenue from korea of 32 % or $ 36.8 million compared to the prior year period . this decrease was partially offset by the consummation of the merger in september 2016 , which resulted in the inclusion of international net revenue from the legacy zhone business in 2016 for the period from and after the consummation of the merger , primarily relating to sales in latin america , europe and the middle east . net revenue from north america increased 330 % or $ 14.5 million to $ 18.9 million in 2016 compared to $ 4.4 million in 2015 . this increase was primarily due to the consummation of the merger in september 2016 , which resulted in the inclusion of net revenue related to the legacy zhone business in north america in 2016 for the period from and after the consummation of the merger . cost of revenue and gross profit total cost of revenue increased 6 % or $ 6.0 million to $ 109.4 million for 2016 , compared to $ 103.3 million for 2015 . the increase in cost of revenue was primarily due to the consummation of the merger in september 2016 , which resulted in the inclusion of cost of revenue related to the legacy zhone business in 2016 for the period from and after the consummation of the merger . this increase was partially offset by lower cost of revenue resulting from decreased sales in korea in 2016 compared to the prior year period . total cost of revenue was 73 % of net revenue for 2016 , compared to 74 % of net revenue for 2015 , which resulted in an increase in gross profit percentage from 26 % in 2015 to 27 % in 2016 . gross margin slightly increased in 2016 compared to 2015 , primarily due to the inclusion of legacy zhone 's higher margin business following the consummation of the merger in september 2016 . 35 research and product development expenses research and product development expenses increased 19 % or $ 4.1 million to $ 25.4 million for 2016 compared to $ 21.3 million for 2015 . the increase was primarily due to the consummation of the merger in september 2016 , which resulted in the inclusion of $ 5.1 million in research and product development expense relating to the legacy zhone business in 2016 for the period from and after the consummation of the merger . this increase was partially offset by a decrease during the period prior to the merger in research and product development expenses of $ 0.8 million resulting from lower personnel related expenses due to a lower headcount .
| cash management our primary source of liquidity comes from our cash and cash equivalents , which totaled $ 17.5 million at december 31 , 2017 , as well as our credit facilities , under which we had aggregate borrowing availability of $ 12.0 million as of december 31 , 2017. our cash and cash equivalents as of december 31 , 2017 included $ 12.1 million in cash balances held by our korean subsidiary . wells fargo bank facility as of december 31 , 2017 , we had a $ 25.0 million revolving line of credit and letter of credit facility with wfb . under the wfb facility , we have the option of borrowing funds at agreed upon interest rates . the amount that we are able to borrow under the wfb facility varies based on eligible accounts receivable and inventory , as defined in the wfb facility , as long as the aggregate amount outstanding does not exceed $ 25.0 million less the amount committed as security for letters of credit . to maintain availability of funds under the wfb facility , we pay a commitment fee on the unused portion . the commitment fee is 0.25 % per annum and is recorded as interest expense . as of december 31 , 2017 , we had no outstanding borrowings under our wfb facility . based on our eligible accounts receivable and inventory and $ 2.3 million committed as security for letters of credit , we had $ 9.2 million of borrowing availability under the wfb facility as of december 31 , 2017 .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash management our primary source of liquidity comes from our cash and cash equivalents , which totaled $ 17.5 million at december 31 , 2017 , as well as our credit facilities , under which we had aggregate borrowing availability of $ 12.0 million as of december 31 , 2017. our cash and cash equivalents as of december 31 , 2017 included $ 12.1 million in cash balances held by our korean subsidiary . wells fargo bank facility as of december 31 , 2017 , we had a $ 25.0 million revolving line of credit and letter of credit facility with wfb . under the wfb facility , we have the option of borrowing funds at agreed upon interest rates . the amount that we are able to borrow under the wfb facility varies based on eligible accounts receivable and inventory , as defined in the wfb facility , as long as the aggregate amount outstanding does not exceed $ 25.0 million less the amount committed as security for letters of credit . to maintain availability of funds under the wfb facility , we pay a commitment fee on the unused portion . the commitment fee is 0.25 % per annum and is recorded as interest expense . as of december 31 , 2017 , we had no outstanding borrowings under our wfb facility . based on our eligible accounts receivable and inventory and $ 2.3 million committed as security for letters of credit , we had $ 9.2 million of borrowing availability under the wfb facility as of december 31 , 2017 .
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Suspicious Activity Report : accordingly , at the effective time of the merger , we issued 9,493,016 shares ( post reverse stock split ) of our common stock to dni as consideration in the merger , of which 949,302 shares ( post reverse stock split ) are being held in escrow as security for claims for indemnifiable losses in accordance with the merger agreement relating to the merger . as a result , immediately following the effective time of the merger , dni held 58 % of the outstanding shares of our common stock and the holders of our common stock immediately prior to the merger retained , in the aggregate , 42 % of the outstanding shares of our common stock . see note 2 to the consolidated financial statements set forth in part ii , item 8 of this report for additional information regarding the merger . common control transaction on december 31 , 2017 , dns ( a wholly owned subsidiary of ours ) acquired 100 % and 99.99 % of the common stock of d-mobile limited ( โ d-mobile โ ) and dasan india private limited ( dasan india ) , respectively , from dni . d-mobile and dasan india are resellers of our products in taiwan and india , respectively . the consideration payable by us to dni for the common stock is the net book value of d-mobile and dasan india at december 31 , 2017 , subject to final adjustments . the net book value of d-mobile and dasan india was an aggregate of $ 0.8 million . we accounted for these transactions as common control transactions , with the net assets transferred recorded at historical cost . the transactions did not result in a change in reporting entity and hence were accounted for prospectively . items affecting comparability of our financial results as discussed in note 2 to the consolidated financial statements set forth in part ii , item 8 of this report , the merger has been accounted for as a reverse acquisition under which dns was considered the accounting acquirer of legacy zhone . as such , our financial results presented in this annual report on form 10-k reflect the operating results of dns and its consolidated subsidiaries for the year-ended december 31 , 2015 and for the period from january 1 , 2016 through september 8 , 2016 and the operating results of both dns and legacy zhone and their respective consolidated subsidiaries for all periods from and after september 9 , 2016. our balance sheet as of december 31 , 2016 included the fair value of the assets and liabilities of legacy zhone as of the effective date of the merger . those assets include the fair value of acquired intangible assets and goodwill . the year ended december 31 , 2017 was the first fiscal year in which our financial results reflected a full year of operating results for both dns and legacy zhone and their respective consolidated subsidiaries . due to the foregoing , our financial results for the year ended december 31 , 2017 are not comparable to our financial results for prior years . critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements , which have been prepared in accordance with generally accepted accounting principles in the united states of america . the preparation of these consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets , liabilities , revenue and expenses , and related disclosure of contingent assets and liabilities . the policies discussed below are considered by management to be critical because changes in such estimates can materially affect the amount of our reported net income or loss . for all of these policies , management cautions that actual results may differ materially from these estimates under different assumptions or conditions . 28 revenue recognition we recognize revenue when the earnings process is complete . we recognize product revenue upon shipment of product under contractual terms which transfer title to customers upon shipment , under normal credit terms , net of estimated sales returns and allowances at the time of shipment . revenue is deferred if there are significant post-delivery obligations or if the fees are not fixed or determinable . when significant post-delivery obligations exist , revenue is deferred until such obligations are fulfilled . our arrangements generally do not have any significant post-delivery obligations . if our arrangements include customer acceptance provisions , revenue is recognized upon obtaining the signed acceptance certificate from the customer , unless we can objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement prior to obtaining the signed acceptance . in those instances where revenue is recognized prior to obtaining the signed acceptance certificate , we use successful completion of customer testing as the basis to objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement . we also consider historical acceptance experience with the customer , as well as the payment terms specified in the arrangement , when revenue is recognized prior to obtaining the signed acceptance certificate . when collectability is not reasonably assured , revenue is recognized when cash is collected . we make certain sales to product distributors . these customers are given certain privileges to return a portion of inventory . return privileges generally allow distributors to return inventory based on a percent of purchases made within a specific period of time . we recognize revenue on sales to distributors that have contractual return rights when the products have been sold by the distributors , unless there is sufficient customer specific sales and sales returns history to support revenue recognition upon shipment . story_separator_special_tag this increase was primarily related to an increase in our outstanding debt balance to $ 29.6 million at december 31 , 2017 from $ 24.4 million at december 31 , 2016. interest rates on our borrowings were relatively flat during 2017 and 2016. other expense , net other expense , net for 2017 was $ 0.7 million compared to $ 0.1 million in 2016. this includes $ 0.5 million of currency exchange loss in 2017 compared to currency exchange loss of $ 0.4 million in 2016. income tax provision ( benefit ) we recorded an income tax benefit of $ 2.1 million for the year ended 2017 compared to an income tax provision of $ 1.5 million for the year ended december 31 , 2016. the decrease during the fiscal year 2017 was mainly due to the release of valuation allowance against our net deferred tax assets in korea . management determined that it is more likely than not that the net deferred tax assets will be realized in this tax jurisdiction . on december 22 , 2017 , president trump signed the tax cuts and jobs act ( the โ act โ ) into law . the new legislation decreases the u.s. corporate federal income tax rate from 35 % to 21 % effective january 1 , 2018. the reduction in tax rate resulted in a $ 5.3 million reduction in net deferred tax assets . there was no impact on recorded deferred tax balances as the remeasurement of net deferred tax assets was offset by a change in valuation allowance . the act imposes a one-time deemed repatriation tax on undistributed foreign earnings . we did not have a deemed repatriation due to our foreign earnings deficits . the act also includes a number of other provisions including the elimination of loss carrybacks , limitations on the use of future losses , repeal of the alternative minimum tax regime , and the introduction of a base erosion and anti-abuse tax . these provisions are not expected to have immediate effect on us . 34 2016 compared with 2015 net revenue information about our net revenue for products and services for 2016 and 2015 is summarized below ( in millions ) : replace_table_token_8_th information about our net revenue for north america and international markets for 2016 and 2015 is summarized below ( in millions ) : replace_table_token_9_th net revenue increased 8 % or $ 11.1 million to $ 150.3 million for 2016 compared to $ 139.2 million for 2015 . the increase in net revenue was primarily due to the consummation of the merger in september 2016 , which resulted in the inclusion of net revenue from the legacy zhone business in 2016 for the period from and after the consummation of the merger . this increase was partially offset by a decrease in product revenue resulting from the decrease in sales to certain customers in korea . international net revenue decreased 3 % or $ 3.4 million to $ 131.4 million for 2016 compared to $ 134.8 million for 2015 , and represented 87 % of total net revenue compared with 97 % in 2015 . the decrease in international net revenue was primarily due to a decrease in sales to certain customers in korea , which resulted in a decrease in net revenue from korea of 32 % or $ 36.8 million compared to the prior year period . this decrease was partially offset by the consummation of the merger in september 2016 , which resulted in the inclusion of international net revenue from the legacy zhone business in 2016 for the period from and after the consummation of the merger , primarily relating to sales in latin america , europe and the middle east . net revenue from north america increased 330 % or $ 14.5 million to $ 18.9 million in 2016 compared to $ 4.4 million in 2015 . this increase was primarily due to the consummation of the merger in september 2016 , which resulted in the inclusion of net revenue related to the legacy zhone business in north america in 2016 for the period from and after the consummation of the merger . cost of revenue and gross profit total cost of revenue increased 6 % or $ 6.0 million to $ 109.4 million for 2016 , compared to $ 103.3 million for 2015 . the increase in cost of revenue was primarily due to the consummation of the merger in september 2016 , which resulted in the inclusion of cost of revenue related to the legacy zhone business in 2016 for the period from and after the consummation of the merger . this increase was partially offset by lower cost of revenue resulting from decreased sales in korea in 2016 compared to the prior year period . total cost of revenue was 73 % of net revenue for 2016 , compared to 74 % of net revenue for 2015 , which resulted in an increase in gross profit percentage from 26 % in 2015 to 27 % in 2016 . gross margin slightly increased in 2016 compared to 2015 , primarily due to the inclusion of legacy zhone 's higher margin business following the consummation of the merger in september 2016 . 35 research and product development expenses research and product development expenses increased 19 % or $ 4.1 million to $ 25.4 million for 2016 compared to $ 21.3 million for 2015 . the increase was primarily due to the consummation of the merger in september 2016 , which resulted in the inclusion of $ 5.1 million in research and product development expense relating to the legacy zhone business in 2016 for the period from and after the consummation of the merger . this increase was partially offset by a decrease during the period prior to the merger in research and product development expenses of $ 0.8 million resulting from lower personnel related expenses due to a lower headcount .
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2,325 | the program includes , among other things , the elimination of full-time positions and facilities consolidation . we currently expect to record in the aggregate approximately $ 60.0 million to $ 100.0 million in pre-tax restructuring charges associated with this program . included in these pre-tax charges are approximately $ 55.0 million to $ 70.0 million related to employee severance arrangements and approximately $ 5.0 million to $ 30.0 million related to the consolidation of leased facilities and other charges associated with the program . on november 13 , 2017 , we announced that our board approved an increase of an additional $ 1.7 billion to our existing share repurchase program . additionally , on november 15 , 2017 , we issued $ 750.0 million of unsecured senior notes due 31 december 1 , 2027 ( the `` 2027 notes `` ) . the net proceeds from this offering were approximately $ 741.0 million , after deducting the underwriting discount and estimated offering expenses payable by us . net proceeds from this offering were used to repurchase $ 750.0 million of shares of our common stock through an asr program . on february 2 , 2018 , we entered into an asr transaction with goldman sachs & co. llc ( โ dealer โ ) to pay an aggregate of $ 750.0 million in exchange for the delivery of approximately 6.5 million shares of our common stock based on current market prices . the purchase price per share under the asr is subject to adjustment and is expected to equal the volume-weighted average price of our common stock during the term of the asr , less a discount . the exact number of shares repurchased pursuant to the asr will be determined based on such purchase price . the asr transaction is expected to be completed by the end of april 2018. the asr was entered into pursuant to our existing share repurchase program . after taking into account the additional $ 750.0 million shares repurchased pursuant to this asr , we will have approximately $ 500.0 million of remaining share repurchase authorization available . on february 6 , 2018 , we acquired all of the issued and outstanding securities of cedexis , inc. ( โ cedexis โ ) whose solution is a real-time data driven service for dynamically optimizing the flow of traffic across public clouds , data centers that provides a dynamic and reliable way to route and manage internet performance for customers moving towards hybrid and multi-cloud deployments . the total preliminary cash consideration for this transaction was approximately $ 66.5 million , net of $ 6.2 million cash acquired . during the year ended december 31 , 2017 , we accelerated our innovation in the cloud , with the introduction of new services , features and capabilities in our cloud solution to build out a comprehensive secure digital workspace . we are seeing an increasing shift in the way customers are purchasing our solutions , evolving towards a more subscription-based business model . we expect our transition to a subscription-based business model to provide financial and operational benefits to citrix , including by increasing customer life-time-value , expanding our customer use-cases and innovation opportunities , and extending the use of citrix services to securely deliver a broader array of applications , including web , saas apps and services . during the year ended december 31 , 2017 , we continued to report our revenues in four groupings : ( 1 ) product and license ; ( 2 ) license updates and maintenance ; ( 3 ) professional services ; and ( 4 ) software as a service . beginning in the first quarter of fiscal year 2018 , we plan to adjust our groupings for reporting revenue to align with our subscription-based business model transition as follows : ( 1 ) product and license revenue from perpetual product offerings ; ( 2 ) support and services revenue for perpetual product and license offerings ; and ( 3 ) subscription revenue , which will include revenue from our ratable cloud services offerings and on-premise subscriptions as well as revenue from our csp offerings . summary of results for the year ended december 31 , 2017 compared to the year ended december 31 , 2016 , we delivered the following financial performance : product and license revenue decreased 2.9 % to $ 857.3 million ; software as a service revenue increased 30.5 % to $ 175.8 million ; license updates and maintenance revenue increased 4.6 % to $ 1.7 billion ; professional services revenue increased 0.4 % to $ 131.7 million ; gross margin as a percentage of revenue decreased 0.8 % to 84.4 % ; operating income increased 1.9 % to $ 571.0 million ; and diluted earnings per share from continuing operations decreased 95.3 % to $ 0.14 . the decrease in our product and licenses revenue was primarily driven by lower overall sales of our networking products . our software as a service revenues increased due to increased sales of our content collaboration offerings and our workspace services offerings delivered via the cloud . the increase in license updates and maintenance revenue was primarily due to increased sales of software maintenance revenues across our workspace services and networking products , partially offset by a decrease in our subscription advantage product , which has reached end of sale , and our technical support as customers continue to migrate to our new software maintenance solutions . professional services revenue remained consistent when comparing 2017 to 2016 . we currently expect total revenue to increase when comparing the first quarter of 2018 to the first quarter of 2017. in addition , when comparing the 2018 fiscal year to the 2017 fiscal year , we currently expect total revenue to increase . gross margin remained consistent when comparing 2017 to 2016 . story_separator_special_tag critical estimates in valuing certain other intangible assets include but are not limited to future expected cash flows from customer contracts , customer retention rates , customer lists , distribution agreements , patents , brand awareness and market position , as well as discount rates . management 's estimates of fair value are based upon assumptions believed to be reasonable . unanticipated events and circumstances may occur which may affect the accuracy or validity of such assumptions , estimates or actual results . we monitor acquired intangible assets for impairment on a periodic basis by reviewing for indicators of impairment . if an indicator exists we compare the estimated net realizable value to the unamortized cost of the intangible asset . the recoverability of the intangible assets is primarily dependent upon our ability to commercialize solutions utilizing the acquired technologies , retain existing customers and customer contracts , and maintain brand awareness . the estimated net realizable value of the acquired intangible assets is based on the estimated undiscounted future cash flows derived from such intangible assets . our assumptions about future revenues and expenses require significant judgment associated with the forecast of the performance of our solutions , customer retention rates and ability to secure and maintain our market position . actual revenues and costs could vary significantly from these forecasted amounts . if these solutions are not ultimately accepted by our customers and distributors , and there is no alternative future use for the technology ; or if we fail to retain acquired customers or successfully market acquired brands , we could determine that some or all of the remaining $ 142.0 million carrying value of our acquired intangible assets is impaired . in the event of impairment , we would record an impairment charge to earnings that could have a material adverse effect on our results of operations . goodwill the excess of the fair value of purchase price over the fair values of the identifiable assets and liabilities from our acquisitions is recorded as goodwill . at december 31 , 2017 , we had $ 1.61 billion in goodwill related to our acquisition s. our revenues are derived from sales of our workspace services solutions , networking products , and related license updates and maintenance , and our content collaboration offerings . as part of our continued transformation , effective january 1 , 2016 , we reorganized a part of our business by creating a new content collaboration product grouping . in connection with this change , we performed an assessment of our goodwill reporting units and determined that the reorganization resulted in the identification of two goodwill reporting units ( excluding the goto business ) . additionally , on january 31 , 2017 , we completed the spin-off of the goto business and $ 380.9 million of the goodwill attributable to the goto business as of december 31 , 2016 was distributed to getgo . as a result of the spin-off , we performed an assessment of the two remaining goodwill reporting units and determined that they remain unchanged . see note 12 to our consolidated financial statements included in this annual report on form 10-k for the year ended december 31 , 2017 for additional information regarding our reportable segment . we account for goodwill in accordance with fasb 's authoritative guidance , which requires that goodwill and certain intangible assets are not amortized , but are subject to an annual impairment test . we complete our goodwill and certain intangible assets impairment tests on an annual basis , during the fourth quarter of our fiscal year , or more frequently , if changes in facts and circumstances indicate that an impairment in the value of goodwill and certain intangible assets recorded on our balance sheet may exist . in the fourth quarter of 2017 , we performed a qualitative assessment to determine whether further quantitative impairment testing for goodwill and certain intangible assets is necessary , and we refer to this assessment as the qualitative screen . in performing the qualitative screen , we are required to make assumptions and judgments including but not limited to the following : the evaluation of macroeconomic conditions as related to our business , industry and market trends , and the overall future financial performance of our reporting units and future opportunities in the markets in which they operate . if after performing the qualitative screen impairment indicators are present , we would perform a quantitative impairment test to estimate the fair value of goodwill and certain intangible assets . in doing so , we would estimate future revenue , consider market factors and estimate our future cash flows . based on these key assumptions , judgments and estimates , we determine whether we need to record an impairment charge to reduce the value of the goodwill and certain intangible assets carried on our balance sheet to its estimated fair value . assumptions , judgments and estimates about future values are complex and often subjective and can be affected by a variety of factors , including external factors such as industry and economic trends , and internal factors such as changes in our business strategy or our internal forecasts . although we believe the assumptions , judgments and estimates we have made have been reasonable and appropriate , different assumptions , judgments and estimates could materially affect our results of operations . as a result of the qualitative screen , no further quantitative impairment test was deemed necessary . there was no impairment of goodwill as a result of the annual impairment tests completed during the 36 fourth quarters of 2017 and 2016 . income taxes we are required to estimate our income taxes in each of the jurisdictions in which we operate as part of the process of preparing our consolidated financial statements . at december 31 , 2017 , we had $ 152.3 million in net deferred tax assets . the authoritative guidance requires a
| liquidity and capital resources during 2017 , we generated continuing operating cash flows of $ 964.3 million . these operating cash flows related primarily to net income from continuing operations of $ 22.0 million , adjusted for , among other things , non-cash charges , depreciation and amortization expenses of $ 170.0 million , stock-based compensation expense of $ 165.1 million , deferred income tax expense of $ 94.2 million , and amortization of debt discount and transaction costs of $ 38.3 million . also contributing to these cash inflows was a change in operating assets and liabilities of $ 470.5 million , net of effects of acquisitions . the change in our net operating assets and liabilities was primarily a result of changes in net income taxes of $ 318.8 million due to tax reform , and changes in deferred revenue of $ 174.4 million . our continuing operations investing activities used $ 60.0 million of cash consisting primarily of cash paid for net purchases of investments of $ 86.4 million , cash paid for the purchase of property and equipment of $ 80.9 million , cash paid for acquisitions of $ 60.4 million , and cash paid for licensing agreements and technology of $ 7.4 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources during 2017 , we generated continuing operating cash flows of $ 964.3 million . these operating cash flows related primarily to net income from continuing operations of $ 22.0 million , adjusted for , among other things , non-cash charges , depreciation and amortization expenses of $ 170.0 million , stock-based compensation expense of $ 165.1 million , deferred income tax expense of $ 94.2 million , and amortization of debt discount and transaction costs of $ 38.3 million . also contributing to these cash inflows was a change in operating assets and liabilities of $ 470.5 million , net of effects of acquisitions . the change in our net operating assets and liabilities was primarily a result of changes in net income taxes of $ 318.8 million due to tax reform , and changes in deferred revenue of $ 174.4 million . our continuing operations investing activities used $ 60.0 million of cash consisting primarily of cash paid for net purchases of investments of $ 86.4 million , cash paid for the purchase of property and equipment of $ 80.9 million , cash paid for acquisitions of $ 60.4 million , and cash paid for licensing agreements and technology of $ 7.4 million .
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Suspicious Activity Report : the program includes , among other things , the elimination of full-time positions and facilities consolidation . we currently expect to record in the aggregate approximately $ 60.0 million to $ 100.0 million in pre-tax restructuring charges associated with this program . included in these pre-tax charges are approximately $ 55.0 million to $ 70.0 million related to employee severance arrangements and approximately $ 5.0 million to $ 30.0 million related to the consolidation of leased facilities and other charges associated with the program . on november 13 , 2017 , we announced that our board approved an increase of an additional $ 1.7 billion to our existing share repurchase program . additionally , on november 15 , 2017 , we issued $ 750.0 million of unsecured senior notes due 31 december 1 , 2027 ( the `` 2027 notes `` ) . the net proceeds from this offering were approximately $ 741.0 million , after deducting the underwriting discount and estimated offering expenses payable by us . net proceeds from this offering were used to repurchase $ 750.0 million of shares of our common stock through an asr program . on february 2 , 2018 , we entered into an asr transaction with goldman sachs & co. llc ( โ dealer โ ) to pay an aggregate of $ 750.0 million in exchange for the delivery of approximately 6.5 million shares of our common stock based on current market prices . the purchase price per share under the asr is subject to adjustment and is expected to equal the volume-weighted average price of our common stock during the term of the asr , less a discount . the exact number of shares repurchased pursuant to the asr will be determined based on such purchase price . the asr transaction is expected to be completed by the end of april 2018. the asr was entered into pursuant to our existing share repurchase program . after taking into account the additional $ 750.0 million shares repurchased pursuant to this asr , we will have approximately $ 500.0 million of remaining share repurchase authorization available . on february 6 , 2018 , we acquired all of the issued and outstanding securities of cedexis , inc. ( โ cedexis โ ) whose solution is a real-time data driven service for dynamically optimizing the flow of traffic across public clouds , data centers that provides a dynamic and reliable way to route and manage internet performance for customers moving towards hybrid and multi-cloud deployments . the total preliminary cash consideration for this transaction was approximately $ 66.5 million , net of $ 6.2 million cash acquired . during the year ended december 31 , 2017 , we accelerated our innovation in the cloud , with the introduction of new services , features and capabilities in our cloud solution to build out a comprehensive secure digital workspace . we are seeing an increasing shift in the way customers are purchasing our solutions , evolving towards a more subscription-based business model . we expect our transition to a subscription-based business model to provide financial and operational benefits to citrix , including by increasing customer life-time-value , expanding our customer use-cases and innovation opportunities , and extending the use of citrix services to securely deliver a broader array of applications , including web , saas apps and services . during the year ended december 31 , 2017 , we continued to report our revenues in four groupings : ( 1 ) product and license ; ( 2 ) license updates and maintenance ; ( 3 ) professional services ; and ( 4 ) software as a service . beginning in the first quarter of fiscal year 2018 , we plan to adjust our groupings for reporting revenue to align with our subscription-based business model transition as follows : ( 1 ) product and license revenue from perpetual product offerings ; ( 2 ) support and services revenue for perpetual product and license offerings ; and ( 3 ) subscription revenue , which will include revenue from our ratable cloud services offerings and on-premise subscriptions as well as revenue from our csp offerings . summary of results for the year ended december 31 , 2017 compared to the year ended december 31 , 2016 , we delivered the following financial performance : product and license revenue decreased 2.9 % to $ 857.3 million ; software as a service revenue increased 30.5 % to $ 175.8 million ; license updates and maintenance revenue increased 4.6 % to $ 1.7 billion ; professional services revenue increased 0.4 % to $ 131.7 million ; gross margin as a percentage of revenue decreased 0.8 % to 84.4 % ; operating income increased 1.9 % to $ 571.0 million ; and diluted earnings per share from continuing operations decreased 95.3 % to $ 0.14 . the decrease in our product and licenses revenue was primarily driven by lower overall sales of our networking products . our software as a service revenues increased due to increased sales of our content collaboration offerings and our workspace services offerings delivered via the cloud . the increase in license updates and maintenance revenue was primarily due to increased sales of software maintenance revenues across our workspace services and networking products , partially offset by a decrease in our subscription advantage product , which has reached end of sale , and our technical support as customers continue to migrate to our new software maintenance solutions . professional services revenue remained consistent when comparing 2017 to 2016 . we currently expect total revenue to increase when comparing the first quarter of 2018 to the first quarter of 2017. in addition , when comparing the 2018 fiscal year to the 2017 fiscal year , we currently expect total revenue to increase . gross margin remained consistent when comparing 2017 to 2016 . story_separator_special_tag critical estimates in valuing certain other intangible assets include but are not limited to future expected cash flows from customer contracts , customer retention rates , customer lists , distribution agreements , patents , brand awareness and market position , as well as discount rates . management 's estimates of fair value are based upon assumptions believed to be reasonable . unanticipated events and circumstances may occur which may affect the accuracy or validity of such assumptions , estimates or actual results . we monitor acquired intangible assets for impairment on a periodic basis by reviewing for indicators of impairment . if an indicator exists we compare the estimated net realizable value to the unamortized cost of the intangible asset . the recoverability of the intangible assets is primarily dependent upon our ability to commercialize solutions utilizing the acquired technologies , retain existing customers and customer contracts , and maintain brand awareness . the estimated net realizable value of the acquired intangible assets is based on the estimated undiscounted future cash flows derived from such intangible assets . our assumptions about future revenues and expenses require significant judgment associated with the forecast of the performance of our solutions , customer retention rates and ability to secure and maintain our market position . actual revenues and costs could vary significantly from these forecasted amounts . if these solutions are not ultimately accepted by our customers and distributors , and there is no alternative future use for the technology ; or if we fail to retain acquired customers or successfully market acquired brands , we could determine that some or all of the remaining $ 142.0 million carrying value of our acquired intangible assets is impaired . in the event of impairment , we would record an impairment charge to earnings that could have a material adverse effect on our results of operations . goodwill the excess of the fair value of purchase price over the fair values of the identifiable assets and liabilities from our acquisitions is recorded as goodwill . at december 31 , 2017 , we had $ 1.61 billion in goodwill related to our acquisition s. our revenues are derived from sales of our workspace services solutions , networking products , and related license updates and maintenance , and our content collaboration offerings . as part of our continued transformation , effective january 1 , 2016 , we reorganized a part of our business by creating a new content collaboration product grouping . in connection with this change , we performed an assessment of our goodwill reporting units and determined that the reorganization resulted in the identification of two goodwill reporting units ( excluding the goto business ) . additionally , on january 31 , 2017 , we completed the spin-off of the goto business and $ 380.9 million of the goodwill attributable to the goto business as of december 31 , 2016 was distributed to getgo . as a result of the spin-off , we performed an assessment of the two remaining goodwill reporting units and determined that they remain unchanged . see note 12 to our consolidated financial statements included in this annual report on form 10-k for the year ended december 31 , 2017 for additional information regarding our reportable segment . we account for goodwill in accordance with fasb 's authoritative guidance , which requires that goodwill and certain intangible assets are not amortized , but are subject to an annual impairment test . we complete our goodwill and certain intangible assets impairment tests on an annual basis , during the fourth quarter of our fiscal year , or more frequently , if changes in facts and circumstances indicate that an impairment in the value of goodwill and certain intangible assets recorded on our balance sheet may exist . in the fourth quarter of 2017 , we performed a qualitative assessment to determine whether further quantitative impairment testing for goodwill and certain intangible assets is necessary , and we refer to this assessment as the qualitative screen . in performing the qualitative screen , we are required to make assumptions and judgments including but not limited to the following : the evaluation of macroeconomic conditions as related to our business , industry and market trends , and the overall future financial performance of our reporting units and future opportunities in the markets in which they operate . if after performing the qualitative screen impairment indicators are present , we would perform a quantitative impairment test to estimate the fair value of goodwill and certain intangible assets . in doing so , we would estimate future revenue , consider market factors and estimate our future cash flows . based on these key assumptions , judgments and estimates , we determine whether we need to record an impairment charge to reduce the value of the goodwill and certain intangible assets carried on our balance sheet to its estimated fair value . assumptions , judgments and estimates about future values are complex and often subjective and can be affected by a variety of factors , including external factors such as industry and economic trends , and internal factors such as changes in our business strategy or our internal forecasts . although we believe the assumptions , judgments and estimates we have made have been reasonable and appropriate , different assumptions , judgments and estimates could materially affect our results of operations . as a result of the qualitative screen , no further quantitative impairment test was deemed necessary . there was no impairment of goodwill as a result of the annual impairment tests completed during the 36 fourth quarters of 2017 and 2016 . income taxes we are required to estimate our income taxes in each of the jurisdictions in which we operate as part of the process of preparing our consolidated financial statements . at december 31 , 2017 , we had $ 152.3 million in net deferred tax assets . the authoritative guidance requires a
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2,326 | we also believe there is a continuing shift in consumer demand from traditional non-performance products to performance products , which are intended to provide better performance by wicking perspiration away from the skin , helping to regulate body temperature and 31 enhancing comfort . we plan to continue to grow our business over the long term through increased sales of our apparel , footwear and accessories , expansion of our wholesale distribution , growth in our direct-to-consumer sales channel and expansion in international markets . although we believe these trends will facilitate our growth , we also face potential challenges that could limit our ability to take advantage of these opportunities or negatively impact our financial results , including , among others , the risk of general economic or market conditions that could affect consumer spending and the financial health of our retail customers . for example , recent and ongoing developments regarding covid-19 may negatively impact our results of operations . additionally , we may not be able to successfully execute on our long-term strategies , or successfully manage the increasingly complex operations of our global business effectively . although we have implemented restructuring plans in the past and may implement additional plans in the future , we may not fully realize the expected benefits of these plans or other operating or cost-saving initiatives . in addition , we may not consistently be able to anticipate consumer preferences and develop new and innovative products that meet changing preferences in a timely manner . furthermore , our industry is very competitive , and competition pressures could cause us to reduce the prices of our products or otherwise affect our profitability . we also rely on third-party suppliers and manufacturers outside the u.s. to provide fabrics and to produce our products , and disruptions to our supply chain could harm our business . for a more complete discussion of the risks facing our business , refer to the โ risk factors โ section included in item 1a . covid-19 in march 2020 , a novel strain of coronavirus ( covid-19 ) was declared a global pandemic by the world health organization . this pandemic has negatively affected the u.s. and global economies , disrupted global supply chains and financial markets , and led to significant travel and transportation restrictions , including mandatory closures and orders to โ shelter-in-place โ . during the first quarter of fiscal 2020 , we took action to close substantially all of our brand and factory house stores based on regional conditions , a majority of which remained closed into the second quarter of fiscal 2020. by the end of the third quarter of fiscal 2020 , substantially all of our brand and factory house stores were re-opened . as pandemic conditions worsened globally during the fourth quarter of fiscal 2020 , we again closed certain stores based on regional conditions , particularly in emea and latin america . the following is a summary of our owned and operated store closures and their status throughout fiscal 2020 and as of the end of january 2021 : north america : beginning in mid-march we closed all of our stores in the north america operating segment , which remained closed through the end of april . we began a progressive re-opening of our stores in may and more than 85 % of our stores were open by the end of june . as of the end of september 2020 , all of our stores were open and approximately 95 % of our stores were open as of the end of january 2021. emea : beginning in mid-march we closed all of our stores in the emea operating segment , of which , over 65 % remained closed through the end of april . we continued the re-opening of our stores in may and more than 95 % of the stores were open at the end of june . as of the end of september 2020 , all of our stores were open , however , in the fourth quarter we had to close almost 60 % of our stores based on regional conditions . as of the end of january 2021 , only 25 % of our stores were open . asia-pacific : stores in china were closed from late-january through early-march , when a slowly progressive re-opening process started . stores in the remainder of the asia-pacific operating segment were also closed from time to time based on local conditions . more than 80 % of our stores were open by the end of april , and by the end of june 2020 more than 95 % of the stores were open and continued to be open until the end of september 2020. as of the end of january 2021 , approximately 90 % of our stores were open . latin america : beginning in mid-march , we closed all of our stores in the latin america operating segment , which remained closed in april and through the end of may . we began a progressive re-opening of stores in june , and more than 25 % of our stores were open by the end of june , and by the end of september 2020 approximately 85 % of our stores remained open . however , in the fourth quarter , we had to close certain stores based on regional conditions , and approximately 55 % of our stores were open as of the end of january 2021. the discussion above reflects the status of our owned and operated stores through the end of january 2021 , however , depending on the progression of covid-19 , stores in certain regions may close from time to time . additionally , throughout this time , many of our wholesale customers also closed their stores or operated them at limited capacity . story_separator_special_tag we consolidate our selling , general and administrative expenses into two primary categories : marketing and other . the other category is the sum of our selling , product innovation and supply chain , and corporate services categories . the marketing category consists primarily of sports and brand marketing , media , and retail presentation . sports and brand marketing includes professional , club , collegiate sponsorship , individual athlete and influencer agreements , and products provided directly to team equipment managers and to individual athletes . media includes digital , broadcast and print media outlets , including social and mobile media . retail presentation includes sales displays and concept shops and depreciation expense specific to our in-store fixture programs . our marketing costs are an important driver of our growth . other expense , net consists of unrealized and realized gains and losses on our foreign currency derivative financial instruments and unrealized and realized gains and losses on adjustments that arise from fluctuations in foreign currency exchange rates relating to transactions generated by our international subsidiaries . 36 results of operations the following table sets forth key components of our results of operations for the periods indicated , both in dollars and as a percentage of net revenues : replace_table_token_4_th replace_table_token_5_th 37 consolidated results of operations year ended december 31 , 2020 compared to year ended december 31 , 2019 net revenues decreased $ 792.5 million , or 15 % , to $ 4,474.7 million in fiscal 2020 from $ 5,267.1 million in fiscal 2019. net revenues by product category are summarized below : replace_table_token_6_th ( 1 ) corporate other revenues consist of foreign currency hedge gains and losses related to revenues generated by entities within our geographic operating segments , but managed through our central foreign exchange risk management program . the decrease in net sales was primarily driven by a unit sales decline in apparel , footwear and accessories across all categories due to decreased demand , primarily related to impacts of covid-19 including cancellations of orders by wholesale customers , closures of brand and factory house stores and lower traffic upon store re-openings , and a unit sales decrease of off-price sales within our wholesale channel . the decrease was partially offset by growth in the e-commerce business and sale of specialty products , such as sports masks , within our accessories category . license revenues decreased $ 33 million , or 23.8 % , to $ 105.8 million in fiscal 2020 from $ 138.8 million in fiscal 2019 driven primarily by lower contractual royalty minimums , decreased revenue from our licensing partners in north america due to softer demand as a result of impacts of covid-19 . further , fiscal 2019 included one-time settlements with two of our north american partners . connected fitness revenue decreased $ 0.6 million , or 0.4 % , to $ 135.8 million in fiscal 2020 from $ 136.4 million in fiscal 2019 primarily driven by a decrease in advertising revenue and one-time development fee from a partner in fiscal 2019. additionally , the decrease in revenue is due to the sale of the myfitnesspal platform during the fourth quarter of fiscal 2020. gross profit decreased $ 310.4 million to $ 2,160.1 million in fiscal 2020 from $ 2,470.5 million in fiscal 2019. gross profit as a percentage of net revenues , or gross margin , increased 140 basis points to 48.3 % in fiscal 2020 compared to 46.9 % in fiscal 2019. this increase in gross margin percentage was primarily driven by the following : an approximate 220 basis point increase driven by channel mix , primarily due to a lower percentage of off-price sales within our wholesale channel which carry a lower gross margin , and a higher percentage of direct-to-consumer sales , led by e-commerce ; and an approximate 70 basis point increase driven by supply chain initiatives primarily related to product cost improvements . the increase was partially offset by an approximate 130 basis point decrease driven by covid-19 related pricing and discounting impacts primarily within the direct-to-consumer business , as well as 30 basis points due to restructuring related expenses . selling , general and administrative expenses decreased $ 61.8 million to $ 2,171.9 million in fiscal 2020 from $ 2,233.8 million in fiscal 2019. as a percentage of net revenues , selling , general and administrative expenses increased to 48.5 % in fiscal 2020 from 42.4 % in fiscal 2019. selling , general and administrative expense was impacted by the following : marketing costs decreased $ 28.5 million to $ 550.4 million in fiscal 2020 from $ 578.9 million in fiscal 2019. this decrease was primarily driven by reduced rights fees for sports marketing assets and reductions in marketing within our wholesale channel . these decreases were primarily due to impacts of covid-19 , including event cancellations and store closures . these decreases were partially offset by 38 increased brand marketing and direct-to-consumer marketing investments . as a percentage of net revenues , marketing costs increased to 12.3 % in fiscal 2020 from 11.0 % in fiscal 2019. other costs decreased $ 33.3 million to $ 1,621.6 million in fiscal 2020 from $ 1,654.9 million in fiscal 2019. this decrease was driven primarily by lower incentive compensation , decreased travel and entertainment , and lower depreciation mostly due to reductions in capital expenditures . the decreases in incentive compensation and travel and entertainment were primarily due to impacts of covid-19 . these decreases were partially offset by higher legal expense , increased third party distribution costs to support e-commerce revenues , and an increase in allowance for doubtful account reserves due to negative developments regarding certain customer balances that represent a higher risk of credit default . as a percentage of net revenues , other costs increased to 36.2 % in fiscal 2020 from 31.4 % in fiscal 2019. restructuring and impairment charges w ere $ 602 million co mprised of $ 461 million
| cash provided by investing activities increas ed $ 213.5 million to $ 66.3 million in fis cal 2020 from cash used in investing activities of $ 147.1 million in fiscal 2019 primarily due to proceeds from the sale of myfitnesspal of $ 198.9 million in the fourth quarter of fiscal 2020 . 43 total capital expenditures in fiscal 2020 decreased by $ 53.5 million to $ 92.3 million compared to $ 145.8 million in fiscal 2019. financing activities cash provided by financing activities increased $ 573.9 million to $ 436.9 million in fiscal 2020 from cash used in financing activities of $ 137.1 million in fiscal 2019. this i ncrease was primarily due to the issuance of $ 500 million of 1.50 % convertible senior notes in fiscal 2020. capital resources credit facility on march 8 , 2019 , we entered into an amended and restated credit agreement by and among the company , as borrower , jpmorgan chase bank , n.a. , as administrative agent , and the other lenders and arrangers party thereto ( the โ credit agreement โ ) . the credit agreement has a term of five years , maturing in march 2024 , with permitted extensions under certain circumstances . in may 2020 , we entered into an amendment to the credit agreement ( the โ amendment โ and , the credit agreement as amended , the โ amended credit agreement โ or the โ revolving credit facility โ ) , pursuant to which the prior revolving credit commitments were reduced from $ 1.25 billion to $ 1.1 billion of borrowings . from time to time throughout fiscal 2020 , we borrowed funds under this facility as a precautionary measure in order to increase our cash position and preserve liquidity given the ongoing uncertainty in global markets resulting from the covid-19 pandemic .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash provided by investing activities increas ed $ 213.5 million to $ 66.3 million in fis cal 2020 from cash used in investing activities of $ 147.1 million in fiscal 2019 primarily due to proceeds from the sale of myfitnesspal of $ 198.9 million in the fourth quarter of fiscal 2020 . 43 total capital expenditures in fiscal 2020 decreased by $ 53.5 million to $ 92.3 million compared to $ 145.8 million in fiscal 2019. financing activities cash provided by financing activities increased $ 573.9 million to $ 436.9 million in fiscal 2020 from cash used in financing activities of $ 137.1 million in fiscal 2019. this i ncrease was primarily due to the issuance of $ 500 million of 1.50 % convertible senior notes in fiscal 2020. capital resources credit facility on march 8 , 2019 , we entered into an amended and restated credit agreement by and among the company , as borrower , jpmorgan chase bank , n.a. , as administrative agent , and the other lenders and arrangers party thereto ( the โ credit agreement โ ) . the credit agreement has a term of five years , maturing in march 2024 , with permitted extensions under certain circumstances . in may 2020 , we entered into an amendment to the credit agreement ( the โ amendment โ and , the credit agreement as amended , the โ amended credit agreement โ or the โ revolving credit facility โ ) , pursuant to which the prior revolving credit commitments were reduced from $ 1.25 billion to $ 1.1 billion of borrowings . from time to time throughout fiscal 2020 , we borrowed funds under this facility as a precautionary measure in order to increase our cash position and preserve liquidity given the ongoing uncertainty in global markets resulting from the covid-19 pandemic .
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Suspicious Activity Report : we also believe there is a continuing shift in consumer demand from traditional non-performance products to performance products , which are intended to provide better performance by wicking perspiration away from the skin , helping to regulate body temperature and 31 enhancing comfort . we plan to continue to grow our business over the long term through increased sales of our apparel , footwear and accessories , expansion of our wholesale distribution , growth in our direct-to-consumer sales channel and expansion in international markets . although we believe these trends will facilitate our growth , we also face potential challenges that could limit our ability to take advantage of these opportunities or negatively impact our financial results , including , among others , the risk of general economic or market conditions that could affect consumer spending and the financial health of our retail customers . for example , recent and ongoing developments regarding covid-19 may negatively impact our results of operations . additionally , we may not be able to successfully execute on our long-term strategies , or successfully manage the increasingly complex operations of our global business effectively . although we have implemented restructuring plans in the past and may implement additional plans in the future , we may not fully realize the expected benefits of these plans or other operating or cost-saving initiatives . in addition , we may not consistently be able to anticipate consumer preferences and develop new and innovative products that meet changing preferences in a timely manner . furthermore , our industry is very competitive , and competition pressures could cause us to reduce the prices of our products or otherwise affect our profitability . we also rely on third-party suppliers and manufacturers outside the u.s. to provide fabrics and to produce our products , and disruptions to our supply chain could harm our business . for a more complete discussion of the risks facing our business , refer to the โ risk factors โ section included in item 1a . covid-19 in march 2020 , a novel strain of coronavirus ( covid-19 ) was declared a global pandemic by the world health organization . this pandemic has negatively affected the u.s. and global economies , disrupted global supply chains and financial markets , and led to significant travel and transportation restrictions , including mandatory closures and orders to โ shelter-in-place โ . during the first quarter of fiscal 2020 , we took action to close substantially all of our brand and factory house stores based on regional conditions , a majority of which remained closed into the second quarter of fiscal 2020. by the end of the third quarter of fiscal 2020 , substantially all of our brand and factory house stores were re-opened . as pandemic conditions worsened globally during the fourth quarter of fiscal 2020 , we again closed certain stores based on regional conditions , particularly in emea and latin america . the following is a summary of our owned and operated store closures and their status throughout fiscal 2020 and as of the end of january 2021 : north america : beginning in mid-march we closed all of our stores in the north america operating segment , which remained closed through the end of april . we began a progressive re-opening of our stores in may and more than 85 % of our stores were open by the end of june . as of the end of september 2020 , all of our stores were open and approximately 95 % of our stores were open as of the end of january 2021. emea : beginning in mid-march we closed all of our stores in the emea operating segment , of which , over 65 % remained closed through the end of april . we continued the re-opening of our stores in may and more than 95 % of the stores were open at the end of june . as of the end of september 2020 , all of our stores were open , however , in the fourth quarter we had to close almost 60 % of our stores based on regional conditions . as of the end of january 2021 , only 25 % of our stores were open . asia-pacific : stores in china were closed from late-january through early-march , when a slowly progressive re-opening process started . stores in the remainder of the asia-pacific operating segment were also closed from time to time based on local conditions . more than 80 % of our stores were open by the end of april , and by the end of june 2020 more than 95 % of the stores were open and continued to be open until the end of september 2020. as of the end of january 2021 , approximately 90 % of our stores were open . latin america : beginning in mid-march , we closed all of our stores in the latin america operating segment , which remained closed in april and through the end of may . we began a progressive re-opening of stores in june , and more than 25 % of our stores were open by the end of june , and by the end of september 2020 approximately 85 % of our stores remained open . however , in the fourth quarter , we had to close certain stores based on regional conditions , and approximately 55 % of our stores were open as of the end of january 2021. the discussion above reflects the status of our owned and operated stores through the end of january 2021 , however , depending on the progression of covid-19 , stores in certain regions may close from time to time . additionally , throughout this time , many of our wholesale customers also closed their stores or operated them at limited capacity . story_separator_special_tag we consolidate our selling , general and administrative expenses into two primary categories : marketing and other . the other category is the sum of our selling , product innovation and supply chain , and corporate services categories . the marketing category consists primarily of sports and brand marketing , media , and retail presentation . sports and brand marketing includes professional , club , collegiate sponsorship , individual athlete and influencer agreements , and products provided directly to team equipment managers and to individual athletes . media includes digital , broadcast and print media outlets , including social and mobile media . retail presentation includes sales displays and concept shops and depreciation expense specific to our in-store fixture programs . our marketing costs are an important driver of our growth . other expense , net consists of unrealized and realized gains and losses on our foreign currency derivative financial instruments and unrealized and realized gains and losses on adjustments that arise from fluctuations in foreign currency exchange rates relating to transactions generated by our international subsidiaries . 36 results of operations the following table sets forth key components of our results of operations for the periods indicated , both in dollars and as a percentage of net revenues : replace_table_token_4_th replace_table_token_5_th 37 consolidated results of operations year ended december 31 , 2020 compared to year ended december 31 , 2019 net revenues decreased $ 792.5 million , or 15 % , to $ 4,474.7 million in fiscal 2020 from $ 5,267.1 million in fiscal 2019. net revenues by product category are summarized below : replace_table_token_6_th ( 1 ) corporate other revenues consist of foreign currency hedge gains and losses related to revenues generated by entities within our geographic operating segments , but managed through our central foreign exchange risk management program . the decrease in net sales was primarily driven by a unit sales decline in apparel , footwear and accessories across all categories due to decreased demand , primarily related to impacts of covid-19 including cancellations of orders by wholesale customers , closures of brand and factory house stores and lower traffic upon store re-openings , and a unit sales decrease of off-price sales within our wholesale channel . the decrease was partially offset by growth in the e-commerce business and sale of specialty products , such as sports masks , within our accessories category . license revenues decreased $ 33 million , or 23.8 % , to $ 105.8 million in fiscal 2020 from $ 138.8 million in fiscal 2019 driven primarily by lower contractual royalty minimums , decreased revenue from our licensing partners in north america due to softer demand as a result of impacts of covid-19 . further , fiscal 2019 included one-time settlements with two of our north american partners . connected fitness revenue decreased $ 0.6 million , or 0.4 % , to $ 135.8 million in fiscal 2020 from $ 136.4 million in fiscal 2019 primarily driven by a decrease in advertising revenue and one-time development fee from a partner in fiscal 2019. additionally , the decrease in revenue is due to the sale of the myfitnesspal platform during the fourth quarter of fiscal 2020. gross profit decreased $ 310.4 million to $ 2,160.1 million in fiscal 2020 from $ 2,470.5 million in fiscal 2019. gross profit as a percentage of net revenues , or gross margin , increased 140 basis points to 48.3 % in fiscal 2020 compared to 46.9 % in fiscal 2019. this increase in gross margin percentage was primarily driven by the following : an approximate 220 basis point increase driven by channel mix , primarily due to a lower percentage of off-price sales within our wholesale channel which carry a lower gross margin , and a higher percentage of direct-to-consumer sales , led by e-commerce ; and an approximate 70 basis point increase driven by supply chain initiatives primarily related to product cost improvements . the increase was partially offset by an approximate 130 basis point decrease driven by covid-19 related pricing and discounting impacts primarily within the direct-to-consumer business , as well as 30 basis points due to restructuring related expenses . selling , general and administrative expenses decreased $ 61.8 million to $ 2,171.9 million in fiscal 2020 from $ 2,233.8 million in fiscal 2019. as a percentage of net revenues , selling , general and administrative expenses increased to 48.5 % in fiscal 2020 from 42.4 % in fiscal 2019. selling , general and administrative expense was impacted by the following : marketing costs decreased $ 28.5 million to $ 550.4 million in fiscal 2020 from $ 578.9 million in fiscal 2019. this decrease was primarily driven by reduced rights fees for sports marketing assets and reductions in marketing within our wholesale channel . these decreases were primarily due to impacts of covid-19 , including event cancellations and store closures . these decreases were partially offset by 38 increased brand marketing and direct-to-consumer marketing investments . as a percentage of net revenues , marketing costs increased to 12.3 % in fiscal 2020 from 11.0 % in fiscal 2019. other costs decreased $ 33.3 million to $ 1,621.6 million in fiscal 2020 from $ 1,654.9 million in fiscal 2019. this decrease was driven primarily by lower incentive compensation , decreased travel and entertainment , and lower depreciation mostly due to reductions in capital expenditures . the decreases in incentive compensation and travel and entertainment were primarily due to impacts of covid-19 . these decreases were partially offset by higher legal expense , increased third party distribution costs to support e-commerce revenues , and an increase in allowance for doubtful account reserves due to negative developments regarding certain customer balances that represent a higher risk of credit default . as a percentage of net revenues , other costs increased to 36.2 % in fiscal 2020 from 31.4 % in fiscal 2019. restructuring and impairment charges w ere $ 602 million co mprised of $ 461 million
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2,327 | in addition , we license the betsey johnsonยฎ trademark for use in connection with the manufacture , marketing and sale of women 's and children 's apparel , hosiery , fragrance and beauty , sleepwear , swimwear , activewear , jewelry , hair accessories , watches , slippers , bedding and bath , luggage , umbrellas and medical scrubs . we also license the dolce vitaยฎ trademark for use in connection with the manufacture , marketing and sale of swimwear and the freebird by stevenยฎ trademark for operation of retail stores . dividends a quarterly cash dividend of $ 0.15 per share on our outstanding shares of common stock was paid on march 27 , 2020. at the end of march 2020 , in response to the covid-19 pandemic , as a precautionary measure our board of directors temporarily suspended the payments of dividends . the aggregate cash dividends paid for the twelve months ended december 31 , 2020 was $ 12,459. on february 24 , 2021 , our board of directors approved the reinstatement of a quarterly cash dividend . the quarterly dividend of $ 0.15 per share is payable on march 26 , 2021 to stockholders of record as of the close of business on march 16 , 2021. reclassifications certain reclassifications were made to prior years ' amounts to conform to the 2020 presentation . executive summary in december 2019 , covid-19 emerged and spread worldwide . the world health organization declared covid-19 a 26 pandemic in march 2020 , resulting in federal , state and local governments and private entities mandating various restrictions , including the closure of non-essential businesses , travel restrictions , restrictions on public gatherings , stay-at-home orders and advisories and quarantining of people who may have been exposed to the virus . after closely monitoring and taking into consideration the guidance from federal , state and local governments , in march 2020 , we temporarily closed all of our stores and our corporate offices in the u.s. and the vast majority of our stores and offices globally . as of august 2020 , the vast majority of our stores and corporate offices in the u.s. and globally reopened . these and other factors have had and may continue to have a material impact on our business , results of operations , financial position and cash flow . in response to the covid-19 pandemic , we took precautionary measures to maintain adequate liquidity and financial flexibility by temporarily suspending share repurchases and the quarterly cash dividend ; temporarily suspending salaries of our founder and creative and design chief , steve madden , our chairman and chief executive officer , edward rosenfeld , and our board of directors ( all of which were reinstated on october 1 ) ; temporarily reducing salaries by 30 % for our president , chief financial officer , chief operating officer and chief merchandising officer ( all of which were reinstated on august 1 ) ; temporarily reducing salaries by graduated amounts for all other employees earning over $ 100 per year ( all of which were reinstated on august 1 ) ; significantly scaling back on non-essential operating expenses , and capital expenditures and inventory purchases . the impact of covid-19 resulted in an unprecedented decline in our revenue and earnings during the year ended 2020 , including but not limited to , charges from adjustments to the carrying amount of certain trademarks , long-lived asset impairment charges and restructuring and other related charges . we expect the pandemic will continue to have a significant negative impact on our revenue and earnings during 2021. total revenue for 2020 decreased by 32.8 % to $ 1,201,814 from $ 1,787,157 in 2019 , with decreases in all segments as a result of the impact of the covid-19 pandemic . net loss attributable to steven madden , ltd. was $ 18,397 in 2020 compared to net income attributable to steven madden , ltd. of $ 141,311 in 2019. our effective tax rate for 2020 increased to 39.0 % compared to 21.8 % recorded in 2019. diluted loss per share in 2020 was $ 0.23 per share on 78,635 diluted weighted average shares outstanding compared to diluted earnings of $ 1.69 per share on 83,646 diluted weighted average shares outstanding in the prior year . we did not report same store sales or sales per square foot data in 2020 due to the covid-19 pandemic and the subsequent closure of our brick-and-mortar stores from the second half of march through at least the end of may and subsequent mandated closures . as of december 31 , 2020 , we had 218 stores in operation , compared to 227 stores as of december 31 , 2019. this decrease resulted from the closure of nine full-price stores , four outlet stores and one e-commerce website partially offset by the opening of three full-price stores and two outlet stores . our inventory turnover ( calculated on a trailing four quarter average ) for the years ended december 31 , 2020 and 2019 was 7.1 times and 8.1 times , respectively . our total company accounts receivable average collection days were 73 days in 2020 compared to 70 days in 2019. as of december 31 , 2020 , we had $ 287,166 in cash , cash equivalents and short-term investments , no debt and total stockholders ' equity of $ 790,369. working capital increased to $ 462,325 as of december 31 , 2020 , compared to $ 437,608 on december 31 , 2019. the increase in working capital was primarily due to actions taken as a result of the covid-19 pandemic . as we look ahead , we remain focused on delivering trend-right product , deepening connections with our consumers , enhancing our digital commerce business , and efficiently managing our inventory and expenses . story_separator_special_tag 31 first cost segment : commission fee income generated by the first cost segment accounted for $ 7,441 , or 0.4 % , and $ 11,226 , or 0.7 % of total revenue for the years ended december 31 , 2019 and 2018 , respectively , which represents a $ 3,785 , or 33.7 % , decrease . the decrease in commission fee income is primarily due to the payless shoesource bankruptcy that occurred in 2019. operating expenses slightly decreased to $ 15,618 in 2019 from $ 15,775 in 2018. loss from operations was $ 8,177 for the year ended december 31 , 2019 compared to $ 4,549 in 2018. licensing segment : licensing fee income generated by the licensing segment accounted for $ 11,581 , or 0.6 % , and $ 12,899 , or 0.8 % of total revenue for the years ended december 31 , 2019 and 2018 , respectively , which represents a $ 1,318 , or 10.2 % , decrease . the decrease in licensing fee income is primarily due to a decrease in royalties in connection with payless shoesource bankruptcy . operating expenses increased to $ 3,477 in 2019 from $ 2,933 in 2018. the increase in operating expenses was primarily due to higher marketing and payroll related expenses . during the year ended december 31 , 2019 , income for the licensing segment amounted to $ 8,104 as compared to the prior year income of $ 9,966. story_separator_special_tag transition tax of $ 14,847 was the result of the tax cuts and jobs act of 2017 ( the `` tax act `` ) . for further information , refer to note o to the consolidated financial statements included in this annual report on form 10-k. excluded from the contractual obligations table above are long-term taxes payable of $ 2,295 as of december 31 , 2020 primarily related to uncertain tax positions , for which we are unable to make a reasonably reliable estimate of the timing of payments in individual years beyond one year due to uncertainties in the timing of tax audit outcomes . dividends in february 2020 , our board of directors declared a quarterly cash dividend of $ 0.15 per share on our outstanding shares of common stock . the dividend was paid on march 27 , 2020 , to stockholders of record as of the close of business on march 17 , 2020. we paid total cash dividends for the three months ended march 31 , 2020 of $ 12,459. at the end of march 2020 , in response to the covid-19 pandemic , as a precautionary measure our board of directors temporarily suspended the payment of dividends and the repurchase of our common stock . on february 24 , 2021 , our board of directors approved the reinstatement of a quarterly cash dividend . the quarterly dividend of $ 0.15 per share is payable on march 26 , 2021 to stockholders of record as of the close of business on march 16 , 2021 . 33 future quarterly cash dividend payments are also subject to the discretion of our board of directors and contingent upon future earnings , our financial condition , capital requirements , general business conditions , and other factors . therefore , we can give no assurance that cash dividends will be paid to holders of our common stock in the future . inflation we do not believe that inflation and price changes have had a significant effect on our sales or profitability for the fiscal year ended december 31 , 2020 and the prior two fiscal years . historically , we have minimized the impact of product cost increases by increasing prices , changing suppliers and improving operating efficiencies . however , no assurance can be given that we will be able to offset any such inflationary cost increases in the future . off-balance sheet arrangements we have no off-balance sheet arrangements . critical accounting policies and the use of estimates this management 's discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements included in this annual report on form 10-k , which have been prepared in accordance with accounting principles generally accepted in the united states of america ( `` gaap `` ) . the preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets , liabilities , sales and expenses , and related disclosure of contingent assets and liabilities . estimates by their nature are based on judgments and available information . our estimates are made based upon historical factors , current circumstances and the experience and judgment of management . assumptions and estimates are evaluated on an ongoing basis , and we may employ outside experts to assist in evaluations . therefore , actual results could materially differ from those estimates under different assumptions and conditions . management believes the following critical accounting estimates are more significantly affected by judgments and estimates used in the preparation of our consolidated financial statements : allowance for bad debts ; customer returns , chargebacks and co-op advertising ; inventory valuation ; valuation of intangible assets ; litigation reserves ; and contingent payment liabilities . allowances for bad debts . accounts receivable are reduced by an allowance for amounts that may be uncollectible in the future . estimates are used in determining the allowance for doubtful accounts and are based on an analysis of the aging of accounts receivable , assessments of collectability based on historical trends , the financial condition of our customers and an evaluation of economic conditions . in general , the actual bad debt losses have historically been within our expectations and the allowances we have established . the reserve against our non-factored trade receivables also includes estimated losses that may result from customers ' inability to pay . customer returns , chargebacks and co-op advertising . we provide variable consideration to our customers for chargebacks
| liquidity and capital resources ( $ in thousands ) in response to the covid-19 pandemic , we took precautionary measures to maintain adequate liquidity and financial flexibility by temporarily suspending share repurchases and the quarterly cash dividend , furloughing a significant portion of our employees , significantly reducing our corporate workforce , temporarily suspending salaries of our founder and creative and design chief , steve madden , our chairman and chief executive officer , edward rosenfeld , and our board of directors ( which were all reinstated on october 1 ) ; temporarily reducing salaries by 30 % for our president , chief financial officer , chief operating officer and chief merchandising officer ( which were all reinstated on august 1 ) ; temporarily reducing salaries by graduated amounts for all other employees earning over $ 100 per year ( which were reinstated on august 1 ) ; significantly scaling back on non-essential operating expenses , capital expenditures and planned inventory purchases . cash , cash equivalents and short-term investments totaled $ 287,166 and $ 304,622 at december 31 , 2020 and december 31 , 2019 , respectively . at december 31 , 2020 , we held $ 158,610 , or approximately 56 % , of our total cash , cash equivalents and short-term investments in our foreign subsidiaries , and at december 31 , 2019 , we held $ 137,072 , or approximately 45 % , in our foreign subsidiaries .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources ( $ in thousands ) in response to the covid-19 pandemic , we took precautionary measures to maintain adequate liquidity and financial flexibility by temporarily suspending share repurchases and the quarterly cash dividend , furloughing a significant portion of our employees , significantly reducing our corporate workforce , temporarily suspending salaries of our founder and creative and design chief , steve madden , our chairman and chief executive officer , edward rosenfeld , and our board of directors ( which were all reinstated on october 1 ) ; temporarily reducing salaries by 30 % for our president , chief financial officer , chief operating officer and chief merchandising officer ( which were all reinstated on august 1 ) ; temporarily reducing salaries by graduated amounts for all other employees earning over $ 100 per year ( which were reinstated on august 1 ) ; significantly scaling back on non-essential operating expenses , capital expenditures and planned inventory purchases . cash , cash equivalents and short-term investments totaled $ 287,166 and $ 304,622 at december 31 , 2020 and december 31 , 2019 , respectively . at december 31 , 2020 , we held $ 158,610 , or approximately 56 % , of our total cash , cash equivalents and short-term investments in our foreign subsidiaries , and at december 31 , 2019 , we held $ 137,072 , or approximately 45 % , in our foreign subsidiaries .
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Suspicious Activity Report : in addition , we license the betsey johnsonยฎ trademark for use in connection with the manufacture , marketing and sale of women 's and children 's apparel , hosiery , fragrance and beauty , sleepwear , swimwear , activewear , jewelry , hair accessories , watches , slippers , bedding and bath , luggage , umbrellas and medical scrubs . we also license the dolce vitaยฎ trademark for use in connection with the manufacture , marketing and sale of swimwear and the freebird by stevenยฎ trademark for operation of retail stores . dividends a quarterly cash dividend of $ 0.15 per share on our outstanding shares of common stock was paid on march 27 , 2020. at the end of march 2020 , in response to the covid-19 pandemic , as a precautionary measure our board of directors temporarily suspended the payments of dividends . the aggregate cash dividends paid for the twelve months ended december 31 , 2020 was $ 12,459. on february 24 , 2021 , our board of directors approved the reinstatement of a quarterly cash dividend . the quarterly dividend of $ 0.15 per share is payable on march 26 , 2021 to stockholders of record as of the close of business on march 16 , 2021. reclassifications certain reclassifications were made to prior years ' amounts to conform to the 2020 presentation . executive summary in december 2019 , covid-19 emerged and spread worldwide . the world health organization declared covid-19 a 26 pandemic in march 2020 , resulting in federal , state and local governments and private entities mandating various restrictions , including the closure of non-essential businesses , travel restrictions , restrictions on public gatherings , stay-at-home orders and advisories and quarantining of people who may have been exposed to the virus . after closely monitoring and taking into consideration the guidance from federal , state and local governments , in march 2020 , we temporarily closed all of our stores and our corporate offices in the u.s. and the vast majority of our stores and offices globally . as of august 2020 , the vast majority of our stores and corporate offices in the u.s. and globally reopened . these and other factors have had and may continue to have a material impact on our business , results of operations , financial position and cash flow . in response to the covid-19 pandemic , we took precautionary measures to maintain adequate liquidity and financial flexibility by temporarily suspending share repurchases and the quarterly cash dividend ; temporarily suspending salaries of our founder and creative and design chief , steve madden , our chairman and chief executive officer , edward rosenfeld , and our board of directors ( all of which were reinstated on october 1 ) ; temporarily reducing salaries by 30 % for our president , chief financial officer , chief operating officer and chief merchandising officer ( all of which were reinstated on august 1 ) ; temporarily reducing salaries by graduated amounts for all other employees earning over $ 100 per year ( all of which were reinstated on august 1 ) ; significantly scaling back on non-essential operating expenses , and capital expenditures and inventory purchases . the impact of covid-19 resulted in an unprecedented decline in our revenue and earnings during the year ended 2020 , including but not limited to , charges from adjustments to the carrying amount of certain trademarks , long-lived asset impairment charges and restructuring and other related charges . we expect the pandemic will continue to have a significant negative impact on our revenue and earnings during 2021. total revenue for 2020 decreased by 32.8 % to $ 1,201,814 from $ 1,787,157 in 2019 , with decreases in all segments as a result of the impact of the covid-19 pandemic . net loss attributable to steven madden , ltd. was $ 18,397 in 2020 compared to net income attributable to steven madden , ltd. of $ 141,311 in 2019. our effective tax rate for 2020 increased to 39.0 % compared to 21.8 % recorded in 2019. diluted loss per share in 2020 was $ 0.23 per share on 78,635 diluted weighted average shares outstanding compared to diluted earnings of $ 1.69 per share on 83,646 diluted weighted average shares outstanding in the prior year . we did not report same store sales or sales per square foot data in 2020 due to the covid-19 pandemic and the subsequent closure of our brick-and-mortar stores from the second half of march through at least the end of may and subsequent mandated closures . as of december 31 , 2020 , we had 218 stores in operation , compared to 227 stores as of december 31 , 2019. this decrease resulted from the closure of nine full-price stores , four outlet stores and one e-commerce website partially offset by the opening of three full-price stores and two outlet stores . our inventory turnover ( calculated on a trailing four quarter average ) for the years ended december 31 , 2020 and 2019 was 7.1 times and 8.1 times , respectively . our total company accounts receivable average collection days were 73 days in 2020 compared to 70 days in 2019. as of december 31 , 2020 , we had $ 287,166 in cash , cash equivalents and short-term investments , no debt and total stockholders ' equity of $ 790,369. working capital increased to $ 462,325 as of december 31 , 2020 , compared to $ 437,608 on december 31 , 2019. the increase in working capital was primarily due to actions taken as a result of the covid-19 pandemic . as we look ahead , we remain focused on delivering trend-right product , deepening connections with our consumers , enhancing our digital commerce business , and efficiently managing our inventory and expenses . story_separator_special_tag 31 first cost segment : commission fee income generated by the first cost segment accounted for $ 7,441 , or 0.4 % , and $ 11,226 , or 0.7 % of total revenue for the years ended december 31 , 2019 and 2018 , respectively , which represents a $ 3,785 , or 33.7 % , decrease . the decrease in commission fee income is primarily due to the payless shoesource bankruptcy that occurred in 2019. operating expenses slightly decreased to $ 15,618 in 2019 from $ 15,775 in 2018. loss from operations was $ 8,177 for the year ended december 31 , 2019 compared to $ 4,549 in 2018. licensing segment : licensing fee income generated by the licensing segment accounted for $ 11,581 , or 0.6 % , and $ 12,899 , or 0.8 % of total revenue for the years ended december 31 , 2019 and 2018 , respectively , which represents a $ 1,318 , or 10.2 % , decrease . the decrease in licensing fee income is primarily due to a decrease in royalties in connection with payless shoesource bankruptcy . operating expenses increased to $ 3,477 in 2019 from $ 2,933 in 2018. the increase in operating expenses was primarily due to higher marketing and payroll related expenses . during the year ended december 31 , 2019 , income for the licensing segment amounted to $ 8,104 as compared to the prior year income of $ 9,966. story_separator_special_tag transition tax of $ 14,847 was the result of the tax cuts and jobs act of 2017 ( the `` tax act `` ) . for further information , refer to note o to the consolidated financial statements included in this annual report on form 10-k. excluded from the contractual obligations table above are long-term taxes payable of $ 2,295 as of december 31 , 2020 primarily related to uncertain tax positions , for which we are unable to make a reasonably reliable estimate of the timing of payments in individual years beyond one year due to uncertainties in the timing of tax audit outcomes . dividends in february 2020 , our board of directors declared a quarterly cash dividend of $ 0.15 per share on our outstanding shares of common stock . the dividend was paid on march 27 , 2020 , to stockholders of record as of the close of business on march 17 , 2020. we paid total cash dividends for the three months ended march 31 , 2020 of $ 12,459. at the end of march 2020 , in response to the covid-19 pandemic , as a precautionary measure our board of directors temporarily suspended the payment of dividends and the repurchase of our common stock . on february 24 , 2021 , our board of directors approved the reinstatement of a quarterly cash dividend . the quarterly dividend of $ 0.15 per share is payable on march 26 , 2021 to stockholders of record as of the close of business on march 16 , 2021 . 33 future quarterly cash dividend payments are also subject to the discretion of our board of directors and contingent upon future earnings , our financial condition , capital requirements , general business conditions , and other factors . therefore , we can give no assurance that cash dividends will be paid to holders of our common stock in the future . inflation we do not believe that inflation and price changes have had a significant effect on our sales or profitability for the fiscal year ended december 31 , 2020 and the prior two fiscal years . historically , we have minimized the impact of product cost increases by increasing prices , changing suppliers and improving operating efficiencies . however , no assurance can be given that we will be able to offset any such inflationary cost increases in the future . off-balance sheet arrangements we have no off-balance sheet arrangements . critical accounting policies and the use of estimates this management 's discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements included in this annual report on form 10-k , which have been prepared in accordance with accounting principles generally accepted in the united states of america ( `` gaap `` ) . the preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets , liabilities , sales and expenses , and related disclosure of contingent assets and liabilities . estimates by their nature are based on judgments and available information . our estimates are made based upon historical factors , current circumstances and the experience and judgment of management . assumptions and estimates are evaluated on an ongoing basis , and we may employ outside experts to assist in evaluations . therefore , actual results could materially differ from those estimates under different assumptions and conditions . management believes the following critical accounting estimates are more significantly affected by judgments and estimates used in the preparation of our consolidated financial statements : allowance for bad debts ; customer returns , chargebacks and co-op advertising ; inventory valuation ; valuation of intangible assets ; litigation reserves ; and contingent payment liabilities . allowances for bad debts . accounts receivable are reduced by an allowance for amounts that may be uncollectible in the future . estimates are used in determining the allowance for doubtful accounts and are based on an analysis of the aging of accounts receivable , assessments of collectability based on historical trends , the financial condition of our customers and an evaluation of economic conditions . in general , the actual bad debt losses have historically been within our expectations and the allowances we have established . the reserve against our non-factored trade receivables also includes estimated losses that may result from customers ' inability to pay . customer returns , chargebacks and co-op advertising . we provide variable consideration to our customers for chargebacks
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2,328 | due to our vertical integration strategy and ongoing investment in plant and machinery , we maintain a relatively high fixed manufacturing overhead . we may not adjust these fixed costs quickly enough to adapt to rapidly changing market conditions . our gross margin is therefore significantly affected by our sales volume and the corresponding utilization of capacity and absorption of fixed manufacturing overhead expenses . sales and marketing . our sales and marketing expense consists primarily of costs related to compensation , trade shows , professional and technical conferences , travel , facilities , depreciation of equipment used for demonstration purposes and other marketing costs . 34 research and development . our research and development expense consists primarily of compensation , development expenses related to the design of our products and certain components , the cost of materials and components to build prototype devices for testing and facilities costs . costs related to product development are recorded as research and development expenses in the period in which they are incurred . general and administrative . our general and administrative expense consists primarily of compensation and associated costs for executive management , finance , legal and other administrative personnel , outside legal and professional fees , insurance premiums and fees , allocated facilities costs and other corporate expenses such as charges and benefits related to the change in allowance for doubtful debt . factors and trends that affect our operations and financial results in reading our financial statements , you should be aware of the following factors and trends that our management believes are important in understanding our financial performance . net sales . our net sales grew from $ 299.3 million in 2010 to $ 769.8 million in 2014 , representing a compound annual growth rate of approximately 27 % . net sales growth was driven by ( i ) increasing demand for our products , fueled by their superior performance and decreasing average cost per watt of output power which has resulted in a substantial improvement in their cost competitiveness compared to traditional lasers , ( ii ) the introduction of new products , including our high-power lasers with higher output power levels , ( iii ) the growing market acceptance of fiber lasers and ( iv ) the development of new applications for our products and new oem customer relationships . our annual revenue growth rates have varied . net sales increased by 19 % , 15 % , 19 % , 59 % and 61 % in 2014 , 2013 , 2012 , 2011 and 2010 , respectively . our business depends substantially upon capital expenditures by our customers , particularly by manufacturers using our products for materials processing , which includes general manufacturing , automotive , aerospace , heavy industry , consumer , semiconductor and electronics . approximately 95 % of our revenues in 2014 were from customers using our products for materials processing . although applications within materials processing are broad , the capital equipment market in general is cyclical and historically has experienced sudden and severe downturns . for the foreseeable future , our operations will continue to depend upon capital expenditures by customers for materials processing and will be subject to the broader fluctuations of capital equipment spending . our net sales have historically fluctuated from quarter to quarter . the increase or decrease in sales from a prior quarter can be affected by the timing of orders received from customers , the shipment , installation and acceptance of products at our customers ' facilities , the mix of oem orders and one-time orders for products with large purchase prices , and seasonal factors such as the purchasing patterns and levels of activity throughout the year in the regions where we operate . historically , our net sales have been higher in the second half of the year than in the first half of the year . furthermore , net sales can be affected by the time taken to qualify our products for use in new applications in the end markets that we serve . the adoption of our products by a new customer or qualification in a new application can lead to an increase in net sales for a period , which may then slow until we penetrate new markets or obtain new customers . gross margin . our total gross margin in any period can be significantly affected by total net sales in any period , by product mix , that is , the percentage of our revenue in the period that is attributable to higher or lower-power products and the mix of sales between laser and amplifier sources and complete systems , by sales mix between oem customers who purchase devices from us in high unit volumes and other customers , by mix of sales in different geographies and by other factors , some of which are not under our control . our product mix affects our margins because the selling price per watt is generally higher for mid-power devices and certain specialty products than for high-power devices and certain pulsed lasers sold in large volumes . the overall cost of high-power lasers may be partially offset by improved absorption of fixed overhead costs associated with sales of larger volumes of higher-power products because they use a greater number of optical components and drive economies of scale in manufacturing . also , the profit margins on systems can be lower than margins for our laser and amplifier sources , depending on the configuration , volume and competitive forces , among other factors . the mix of sales between oem customers and other customers can affect gross margin because we provide sales price discounts on products based on the number of units ordered . as the number of oem customers increases and the number of units ordered increases , the average sales price per unit will be reduced . story_separator_special_tag sales and marketing expense increased by $ 4.0 million , or 14.8 % , to $ 30.6 million in 2014 from $ 26.7 million in 2013 , primarily as a result of an increase in personnel costs , premises and depreciation expense . as a percentage of sales , sales and marketing expense decreased to 4.0 % in 2014 from 4.1 % in 2013 . as we continue to expand our worldwide sales organization , we expect sales and marketing expenses to increase in the aggregate . research and development expense . research and development expense increased by $ 11.7 million , or 28.2 % , to $ 53.4 million in 2014 from $ 41.7 million in 2013 , primarily as a result of an increase in personnel and consultant costs , expenses related to research and development contracts to develop new laser systems and application processes as well as an increase in materials , premises and depreciation expense . research and development continues to focus on developing new products at different wavelengths including uv , developing end user systems , green and mid-infrared , new pulsed products , improving the electrical efficiency of high power products , enhancing the performance of our internally manufactured components , refining production processes to improve manufacturing yields , developing new accessories and achieving higher output powers . as a percentage of sales , research and development expense increased to 6.9 % in 2014 from 6.4 % in 2013 . we expect to continue to invest in research and development and that research and development expense will increase in the aggregate . general and administrative expense . general and administrative expense increased by $ 4.5 million , or 8.8 % , to $ 55.3 million in 2014 from $ 50.9 million in 2013 , primarily due to increased personnel costs , consultants , bad debt provisions and depreciation and premises expense . as a percentage of sales , general and administrative expense decreased to 7.2 % in 2014 from 7.8 % in 2013 . we expect general and administrative expenses to increase as we invest to support the expected growth in net sales . effect of exchange rates on sales , gross margin and operating expenses . we estimate that if exchange rates had been the same as one year ago , sales in 2014 would have been $ 8.5 million higher , gross margin would have been $ 6.3 million higher and operating expenses in total would have been $ 3.6 million higher . these estimates assume constant exchange rates between fiscal year 2014 and fiscal year 2013 and are calculated using the average exchange rates for the twelve-month period ended december 31 , 2013 for the respective currencies , which were us $ 1=euro 0.75 , us $ 1=japanese yen 97.58 , us $ 1=chinese yuan 6.19 and us $ 1=russian ruble 31.82 . ( gain ) loss on foreign exchange . we incurred a foreign exchange gain of $ 6.6 million in 2014 as compared to a loss of $ 2.5 million in 2013 . the change is primarily attributable to the appreciation of the u.s. dollar compared to the euro and russian ruble , partially off-set by the depreciation of the japanese yen compared to the u.s. dollar and euro . interest ( expense ) income , net . interest ( expense ) income , net was relatively flat at $ 0.1 million of expense in 2014 and 2013 . other income , net . other income , net increased to $ 0.8 million of income in 2014 compared to $ 0.2 million of income in 2013 . included in other income , net for 2014 included insurance rebates and government subsidies as well as a small reduction in contingent consideration related to prior year acquisitions . for 2013 , other expense included $ 2.7 million reduction in contingent consideration related to prior year acquisitions and $ 0.5 million gain on the sale of an investment from our russian subsidiary partially offset by a $ 2.9 million goodwill impairment charge . provision for income taxes . provision for income taxes was $ 84.0 million in 2014 compared to $ 62.5 million in 2013 , representing an effective tax rate of 29.5 % in 2014 and 28.6 % in 2013 . the increase in the provision for income taxes was primarily the result of increased income before provision for income taxes . the increase in effective rate was due primarily to the mix of income earned in various tax jurisdictions partially reduced by the reduced benefit of additional research and development credits claimed in 2014 as compared with 2013. the 2013 research and development credits included the effect of 2012 credits because the legislation authorizing the 2012 credits was not signed into law until 2013. net income . net income attributable to ipg photonics corporation increased by $ 44.7 million to $ 200.4 million in 2014 from $ 155.8 million in 2013 . net income attributable to ipg photonics corporation as a percentage of our net sales increased by 2.0 percentage points to 26.0 % in 2014 from 24.0 % in 2013 due to the factors described above . 40 comparison of year ended december 31 , 2013 to year ended december 31 , 2012 net sales . net sales increased by $ 85.5 million , or 15.2 % , to $ 648.0 million in 2013 from $ 562.5 million in 2012. the table below sets forth sales by application ( in thousands , except for percentages ) : replace_table_token_10_th sales for materials processing applications increased primarily due to higher sales of high-power , medium-power and qcw lasers used in cutting and welding applications , offset by decreased sales of pulsed lasers used in marking and engraving applications . we continue to see increased acceptance of the advantages of fiber laser technology . a growing number of oem customers have developed cutting systems that use our high-power lasers and sales of
| liquidity and capital resources our principal sources of liquidity as of december 31 , 2014 consisted of cash and cash equivalents of $ 522.2 million , unused credit lines and overdraft facilities of $ 66.9 million and working capital ( excluding cash and cash equivalents ) of $ 249.6 million . this compares to cash and cash equivalents of $ 448.8 million , unused credit lines and overdraft facilities of $ 61.8 million and working capital ( excluding cash and cash equivalents ) of $ 237.5 million as of december 31 , 2013 . the increase in cash and cash equivalents of $ 73.4 million from $ 448.8 million relates primarily to cash provided by operating activities in 2014 of $ 180.1 million and cash provided by financing activities of $ 11.5 million which was partially offset by cash used in investing activities of $ 90.1 million . cash used in investing activities primarily relates to investments in fixed assets in 2014 and a purchase of certain intellectual property rights including patent rights during the third quarter of 2014 . our long-term debt consists of a $ 11.3 million unsecured variable-rate note . of this amount , the entire balance of $ 11.3 million is the current portion because the note expires in june 2015 , at which time the outstanding debt balance would be$ 10.7 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources our principal sources of liquidity as of december 31 , 2014 consisted of cash and cash equivalents of $ 522.2 million , unused credit lines and overdraft facilities of $ 66.9 million and working capital ( excluding cash and cash equivalents ) of $ 249.6 million . this compares to cash and cash equivalents of $ 448.8 million , unused credit lines and overdraft facilities of $ 61.8 million and working capital ( excluding cash and cash equivalents ) of $ 237.5 million as of december 31 , 2013 . the increase in cash and cash equivalents of $ 73.4 million from $ 448.8 million relates primarily to cash provided by operating activities in 2014 of $ 180.1 million and cash provided by financing activities of $ 11.5 million which was partially offset by cash used in investing activities of $ 90.1 million . cash used in investing activities primarily relates to investments in fixed assets in 2014 and a purchase of certain intellectual property rights including patent rights during the third quarter of 2014 . our long-term debt consists of a $ 11.3 million unsecured variable-rate note . of this amount , the entire balance of $ 11.3 million is the current portion because the note expires in june 2015 , at which time the outstanding debt balance would be$ 10.7 million .
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Suspicious Activity Report : due to our vertical integration strategy and ongoing investment in plant and machinery , we maintain a relatively high fixed manufacturing overhead . we may not adjust these fixed costs quickly enough to adapt to rapidly changing market conditions . our gross margin is therefore significantly affected by our sales volume and the corresponding utilization of capacity and absorption of fixed manufacturing overhead expenses . sales and marketing . our sales and marketing expense consists primarily of costs related to compensation , trade shows , professional and technical conferences , travel , facilities , depreciation of equipment used for demonstration purposes and other marketing costs . 34 research and development . our research and development expense consists primarily of compensation , development expenses related to the design of our products and certain components , the cost of materials and components to build prototype devices for testing and facilities costs . costs related to product development are recorded as research and development expenses in the period in which they are incurred . general and administrative . our general and administrative expense consists primarily of compensation and associated costs for executive management , finance , legal and other administrative personnel , outside legal and professional fees , insurance premiums and fees , allocated facilities costs and other corporate expenses such as charges and benefits related to the change in allowance for doubtful debt . factors and trends that affect our operations and financial results in reading our financial statements , you should be aware of the following factors and trends that our management believes are important in understanding our financial performance . net sales . our net sales grew from $ 299.3 million in 2010 to $ 769.8 million in 2014 , representing a compound annual growth rate of approximately 27 % . net sales growth was driven by ( i ) increasing demand for our products , fueled by their superior performance and decreasing average cost per watt of output power which has resulted in a substantial improvement in their cost competitiveness compared to traditional lasers , ( ii ) the introduction of new products , including our high-power lasers with higher output power levels , ( iii ) the growing market acceptance of fiber lasers and ( iv ) the development of new applications for our products and new oem customer relationships . our annual revenue growth rates have varied . net sales increased by 19 % , 15 % , 19 % , 59 % and 61 % in 2014 , 2013 , 2012 , 2011 and 2010 , respectively . our business depends substantially upon capital expenditures by our customers , particularly by manufacturers using our products for materials processing , which includes general manufacturing , automotive , aerospace , heavy industry , consumer , semiconductor and electronics . approximately 95 % of our revenues in 2014 were from customers using our products for materials processing . although applications within materials processing are broad , the capital equipment market in general is cyclical and historically has experienced sudden and severe downturns . for the foreseeable future , our operations will continue to depend upon capital expenditures by customers for materials processing and will be subject to the broader fluctuations of capital equipment spending . our net sales have historically fluctuated from quarter to quarter . the increase or decrease in sales from a prior quarter can be affected by the timing of orders received from customers , the shipment , installation and acceptance of products at our customers ' facilities , the mix of oem orders and one-time orders for products with large purchase prices , and seasonal factors such as the purchasing patterns and levels of activity throughout the year in the regions where we operate . historically , our net sales have been higher in the second half of the year than in the first half of the year . furthermore , net sales can be affected by the time taken to qualify our products for use in new applications in the end markets that we serve . the adoption of our products by a new customer or qualification in a new application can lead to an increase in net sales for a period , which may then slow until we penetrate new markets or obtain new customers . gross margin . our total gross margin in any period can be significantly affected by total net sales in any period , by product mix , that is , the percentage of our revenue in the period that is attributable to higher or lower-power products and the mix of sales between laser and amplifier sources and complete systems , by sales mix between oem customers who purchase devices from us in high unit volumes and other customers , by mix of sales in different geographies and by other factors , some of which are not under our control . our product mix affects our margins because the selling price per watt is generally higher for mid-power devices and certain specialty products than for high-power devices and certain pulsed lasers sold in large volumes . the overall cost of high-power lasers may be partially offset by improved absorption of fixed overhead costs associated with sales of larger volumes of higher-power products because they use a greater number of optical components and drive economies of scale in manufacturing . also , the profit margins on systems can be lower than margins for our laser and amplifier sources , depending on the configuration , volume and competitive forces , among other factors . the mix of sales between oem customers and other customers can affect gross margin because we provide sales price discounts on products based on the number of units ordered . as the number of oem customers increases and the number of units ordered increases , the average sales price per unit will be reduced . story_separator_special_tag sales and marketing expense increased by $ 4.0 million , or 14.8 % , to $ 30.6 million in 2014 from $ 26.7 million in 2013 , primarily as a result of an increase in personnel costs , premises and depreciation expense . as a percentage of sales , sales and marketing expense decreased to 4.0 % in 2014 from 4.1 % in 2013 . as we continue to expand our worldwide sales organization , we expect sales and marketing expenses to increase in the aggregate . research and development expense . research and development expense increased by $ 11.7 million , or 28.2 % , to $ 53.4 million in 2014 from $ 41.7 million in 2013 , primarily as a result of an increase in personnel and consultant costs , expenses related to research and development contracts to develop new laser systems and application processes as well as an increase in materials , premises and depreciation expense . research and development continues to focus on developing new products at different wavelengths including uv , developing end user systems , green and mid-infrared , new pulsed products , improving the electrical efficiency of high power products , enhancing the performance of our internally manufactured components , refining production processes to improve manufacturing yields , developing new accessories and achieving higher output powers . as a percentage of sales , research and development expense increased to 6.9 % in 2014 from 6.4 % in 2013 . we expect to continue to invest in research and development and that research and development expense will increase in the aggregate . general and administrative expense . general and administrative expense increased by $ 4.5 million , or 8.8 % , to $ 55.3 million in 2014 from $ 50.9 million in 2013 , primarily due to increased personnel costs , consultants , bad debt provisions and depreciation and premises expense . as a percentage of sales , general and administrative expense decreased to 7.2 % in 2014 from 7.8 % in 2013 . we expect general and administrative expenses to increase as we invest to support the expected growth in net sales . effect of exchange rates on sales , gross margin and operating expenses . we estimate that if exchange rates had been the same as one year ago , sales in 2014 would have been $ 8.5 million higher , gross margin would have been $ 6.3 million higher and operating expenses in total would have been $ 3.6 million higher . these estimates assume constant exchange rates between fiscal year 2014 and fiscal year 2013 and are calculated using the average exchange rates for the twelve-month period ended december 31 , 2013 for the respective currencies , which were us $ 1=euro 0.75 , us $ 1=japanese yen 97.58 , us $ 1=chinese yuan 6.19 and us $ 1=russian ruble 31.82 . ( gain ) loss on foreign exchange . we incurred a foreign exchange gain of $ 6.6 million in 2014 as compared to a loss of $ 2.5 million in 2013 . the change is primarily attributable to the appreciation of the u.s. dollar compared to the euro and russian ruble , partially off-set by the depreciation of the japanese yen compared to the u.s. dollar and euro . interest ( expense ) income , net . interest ( expense ) income , net was relatively flat at $ 0.1 million of expense in 2014 and 2013 . other income , net . other income , net increased to $ 0.8 million of income in 2014 compared to $ 0.2 million of income in 2013 . included in other income , net for 2014 included insurance rebates and government subsidies as well as a small reduction in contingent consideration related to prior year acquisitions . for 2013 , other expense included $ 2.7 million reduction in contingent consideration related to prior year acquisitions and $ 0.5 million gain on the sale of an investment from our russian subsidiary partially offset by a $ 2.9 million goodwill impairment charge . provision for income taxes . provision for income taxes was $ 84.0 million in 2014 compared to $ 62.5 million in 2013 , representing an effective tax rate of 29.5 % in 2014 and 28.6 % in 2013 . the increase in the provision for income taxes was primarily the result of increased income before provision for income taxes . the increase in effective rate was due primarily to the mix of income earned in various tax jurisdictions partially reduced by the reduced benefit of additional research and development credits claimed in 2014 as compared with 2013. the 2013 research and development credits included the effect of 2012 credits because the legislation authorizing the 2012 credits was not signed into law until 2013. net income . net income attributable to ipg photonics corporation increased by $ 44.7 million to $ 200.4 million in 2014 from $ 155.8 million in 2013 . net income attributable to ipg photonics corporation as a percentage of our net sales increased by 2.0 percentage points to 26.0 % in 2014 from 24.0 % in 2013 due to the factors described above . 40 comparison of year ended december 31 , 2013 to year ended december 31 , 2012 net sales . net sales increased by $ 85.5 million , or 15.2 % , to $ 648.0 million in 2013 from $ 562.5 million in 2012. the table below sets forth sales by application ( in thousands , except for percentages ) : replace_table_token_10_th sales for materials processing applications increased primarily due to higher sales of high-power , medium-power and qcw lasers used in cutting and welding applications , offset by decreased sales of pulsed lasers used in marking and engraving applications . we continue to see increased acceptance of the advantages of fiber laser technology . a growing number of oem customers have developed cutting systems that use our high-power lasers and sales of
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2,329 | in addition , note 2 to the accompanying consolidated financial statements of twenty-first century fox summarizes the company 's significant accounting policies , including the critical accounting policy discussion found in this section . overview of the company 's business the company is a diversified global media and entertainment company , which manages and reports its businesses in the following segments : cable network programming , which principally consists of the production and licensing of programming distributed primarily through cable television systems , direct broadcast satellite operators , telecommunication companies and online video distributors in the united states ( โ u.s. โ ) and internationally . 37 television , which principally consists of the broadcasting of network programming in the u.s. and the operation of 28 full power broadcast television stations , including 11 duopolies , in the u.s. ( of these stations , 17 are affiliated with the fox broadcasting company ( โ fox โ ) , nine are affiliated with master distribution service , inc. ( โ mynetworktv โ ) , one is affiliated with both the cw television network and mynetworktv and one is an independent station ) . filmed entertainment , which principally consists of the production and acquisition of live-action and animated motion pictures for distribution and licensing in all formats in all entertainment media worldwide , and the production and licensing of television programming worldwide . direct broadcast satellite television , which consisted of the distribution of programming services via satellite , cable and broadband directly to subscribers in italy , germany and austria . the direct broadcast satellite television ( โ dbs โ ) segment consisted entirely of the operations of sky italia and sky deutschland ag ( โ sky deutschland โ ) ( collectively , the โ dbs businesses โ ) . on november 12 , 2014 , twenty-first century fox completed the sale of sky italia and its 57 % interest in sky deutschland to sky plc ( โ sky โ ) ( see note 3 โ acquisitions , disposals and other transactions to the accompanying consolidated financial statements of twenty-first century fox under the heading โ sky italia and sky deutschland โ ) . sky is a pan-european digital television provider , which operates in italy , germany , austria , the united kingdom ( โ u.k. โ ) and ireland . other , corporate and eliminations , which principally consists of corporate overhead and eliminations . following the sale of the dbs businesses , the company continues to report in five segments for comparative purposes , and there is no current activity in the dbs segment . cable network programming and television the company 's cable networks , which target various demographics , derive a majority of their revenues from monthly affiliate fees received from multi-channel video programming distributors ( โ mvpds โ ) based on the number of their subscribers . affiliate fee revenues are net of the amortization of cable distribution investments ( capitalized fees paid to u.s. mvpds to typically facilitate the carriage of a domestic cable network ) . the company defers the cable distribution investments and amortizes the amounts on a straight-line basis over the contract period . in the u.s. , cable television and direct broadcast satellite are currently the predominant means of distribution of the company 's program services . internationally , distribution technology varies region by region . the television operations derive revenues primarily from the sale of advertising , and to a lesser extent , affiliate fee revenue . adverse changes in general market conditions for advertising may affect revenues . u.s. law governing retransmission consent revenue , recognized as affiliate fees , provides a mechanism for the television stations owned by the company to seek and obtain payment from mvpds who carry the company 's broadcast signals . retransmission consent revenue consists of per subscriber-based compensatory fees paid to the company by mvpds that distribute the signals of the company 's owned and operated television stations . the company also receives compensation from independently-owned television stations that are affiliated with fox and receive retransmission consent fees from mvpds for their signals . the most significant operating expenses of the cable network programming segment and the television segment are the acquisition and production expenses related to programming , marketing and promotional expenses , and the expenses related to operating the technical facilities of the cable network or broadcaster . marketing and promotional expenses relate to improving the market visibility and awareness of the cable network or broadcaster and its programming . additional expenses include salaries , employee benefits , rent and other routine overhead expenses . the profitability of u.s. national sports contracts and certain international sports rights agreements is based on the company 's best estimates at june 30 , 2017 of attributable revenues and costs ; such estimates may change in the future and such changes may be significant . should revenues decline materially from estimates applied at june 30 , 2017 , additional amortization of rights may be recognized . should revenues improve as compared to estimated revenues , the company may have improved results related to the contract , which may be recognized over the remaining contract term . 38 filmed entertainment the filmed entertainment segment derives revenue from the production and distribution of live-action and animated motion pictures and television series . in general , motion pictures produced or acquired for distribution by the company are exhibited in u.s. and foreign theaters , followed by home entertainment , including sale and rental of dvds and blu-rays , licensing through digital distribution platforms , premium subscription television , network television and basic cable and syndicated television exploitation . television series initially produced for the networks and first-run syndication are generally licensed to domestic and international markets concurrently and subsequently made available via digital distribution platforms and released in seasonal dvd and blu-ray box sets . more successful series are later syndicated in domestic markets . story_separator_special_tag 44 fiscal 2017 versus fiscal 2016 the following table reconciles income from continuing operations before income tax expense to total segment oibda for fiscal 2017 , as compared to fiscal 2016 : replace_table_token_11_th the following table sets forth the computation of total segment oibda for fiscal 2017 , as compared to fiscal 2016 : replace_table_token_12_th the following tables set forth the company 's revenues and segment oibda for fiscal 2017 , as compared to fiscal 2016 : replace_table_token_13_th replace_table_token_14_th 45 cable network programming ( 57 % and 55 % of the company 's consolidated revenues in fiscal 2017 and 2016 , respectively ) for fiscal 2017 , revenues at the cable network programming segment increased $ 1.1 billion , or 7 % , as compared to fiscal 2016 , primarily due to higher affiliate fee , advertising and content and other revenues as shown below : replace_table_token_15_th these revenue increases are net of a decrease of approximately $ 155 million due to the strengthening of the u.s. dollar against local currencies , primarily in latin america and europe , for fiscal 2017 , as compared to fiscal 2016. for fiscal 2017 , cable network programming segment oibda increased $ 456 million , or 9 % , as compared to fiscal 2016 , primarily due to the revenue increases noted above partially offset by higher expenses of $ 645 million , or 7 % . for fiscal 2017 , the segment oibda increase is net of a decrease of approximately $ 60 million due to the strengthening of the u.s. dollar against local currencies as compared to fiscal 2016. the incremental revenues and expenses related to the ngs media business as a result of the acquisition were approximately $ 140 million for fiscal 2017 , as compared to fiscal 2016. domestic channels for fiscal 2017 , domestic affiliate fee revenue increased , as compared to fiscal 2016 , primarily due to higher average rates per subscriber led by fox news and the regional sports networks ( โ rsns โ ) partially offset by the impact of lower average subscribers . also contributing to the increase were fs1 and fs2 due to higher average rates per subscriber and higher average subscribers and fx networks due to higher average rates per subscriber . for fiscal 2017 , domestic advertising revenue increased , as compared to fiscal 2016 , primarily due to higher ratings and pricing at fox news and the broadcasts of the mlb postseason games at fs1 partially offset by the impact of lower ratings at fx networks . the increase in domestic content and other revenues for fiscal 2017 , as compared to fiscal 2016 , was primarily due to the acquisition of the ngs media business and higher svod revenue . for fiscal 2017 , domestic channels oibda increased 10 % , as compared to fiscal 2016 , primarily due to the revenue increases noted above partially offset by higher expenses . operating expenses increased approximately $ 485 million for fiscal 2017 , as compared to fiscal 2016 , principally due to higher sports rights amortization , including the mlb , national basketball association ( โ nba โ ) and national association of stock car auto racing ( โ nascar โ ) rights at the company 's sports channels , higher programming and marketing costs related to the launch of new programming at fx networks and national geographic and the acquisition of the ngs media business . international channels for fiscal 2017 , international affiliate fee revenue increased , as compared to fiscal 2016 , as a result of local currency growth of 11 % , led by additional subscribers and higher rates at fox networks group international ( โ fngi โ ) in latin america and europe and at star india ( โ star โ ) . partially offsetting the affiliate fee increase for fiscal 2017 was the adverse impact of the strengthening of the u.s. dollar against local currencies . for fiscal 2017 , international advertising revenues decreased , as compared to fiscal 2016 , as local currency growth at fngi in latin america and europe was more than offset by lower local currency advertising revenue at star due to the effect of the indian government 's demonetization initiatives on the general advertising market in india , a lower volume of cricket matches broadcast in the current year and a decrease in market share . the adverse impact of the strengthening of the u.s. dollar against local currencies also contributed to the decrease in international advertising 46 revenue . the increase in international content and other revenues for fiscal 2017 , as compared to fiscal 2016 , was primarily due to higher network and syndication revenues in latin america and asia at fngi partially offset by lower syndication revenues related to sports rights at star . for fiscal 2017 , international channels oibda increased 4 % , as compared to fiscal 2016 , primarily due to the revenue increases noted above partially offset by higher expenses . operating expenses increased approximately $ 150 million for fiscal 2017 , as compared to fiscal 2016 , primarily due to higher entertainment programming rights amortization at fngi in europe and latin america and at star partially offset by lower sports programming amortization at star , due to lower volume of cricket matches broadcast in the current year . television ( 20 % and 19 % of the company 's consolidated revenues in fiscal 2017 and 2016 , respectively ) for fiscal 2017 , revenues at the television segment increased $ 544 million , or 11 % , as compared to fiscal 2016 , primarily due to higher advertising , affiliate fee and content and other revenues . advertising revenue increased 8 % for fiscal 2017 , as compared to fiscal 2016 , primarily due to revenues resulting from the broadcast of super bowl li in february 2017 of approximately $ 425 million after agency commissions , the mlb world series which
| debt instruments the following table summarizes cash from borrowings and cash used in repayment of borrowings for fiscal 2017 , 2016 and 2015 : replace_table_token_21_th ( a ) see note 11 โ borrowings to the accompanying consolidated financial statements of twenty-first century fox for further discussion under the heading โ public debt - senior notes issued under august 2009 indenture โ . ( b ) the fiscal 2017 and 2016 activity includes $ 76 million and $ 373 million in borrowings , respectively , and $ 146 million and $ 379 million in repayments , respectively , under the yes network secured revolving credit facility . the balance of the repayments was related to the yes network term loan facility . the fiscal 2015 activity includes the effect of the amendment to the yes network credit agreement ( see note 11 โ borrowings to the accompanying consolidated financial statements of twenty-first century fox under the heading โ bank loans โ ) . ( c ) see note 11 โ borrowings to the accompanying consolidated financial statements of twenty-first century fox for further discussion under the heading โ public debt โ predecessor indentures โ . ratings of the public debt the following table summarizes the company 's credit ratings as of june 30 , 2017 : rating agency senior debt outlook moody 's baa1 stable standard & poor 's( a ) bbb+ watch negative ( a ) standard & poor 's changed the outlook of the company 's public debt from stable to watch negative in december 2016 following the company 's announcement of the sky acquisition ( see note 3 โ acquisitions , disposals and other transactions to the accompanying consolidated financial statements of twenty-first century fox under the heading โ sky โ ) .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```debt instruments the following table summarizes cash from borrowings and cash used in repayment of borrowings for fiscal 2017 , 2016 and 2015 : replace_table_token_21_th ( a ) see note 11 โ borrowings to the accompanying consolidated financial statements of twenty-first century fox for further discussion under the heading โ public debt - senior notes issued under august 2009 indenture โ . ( b ) the fiscal 2017 and 2016 activity includes $ 76 million and $ 373 million in borrowings , respectively , and $ 146 million and $ 379 million in repayments , respectively , under the yes network secured revolving credit facility . the balance of the repayments was related to the yes network term loan facility . the fiscal 2015 activity includes the effect of the amendment to the yes network credit agreement ( see note 11 โ borrowings to the accompanying consolidated financial statements of twenty-first century fox under the heading โ bank loans โ ) . ( c ) see note 11 โ borrowings to the accompanying consolidated financial statements of twenty-first century fox for further discussion under the heading โ public debt โ predecessor indentures โ . ratings of the public debt the following table summarizes the company 's credit ratings as of june 30 , 2017 : rating agency senior debt outlook moody 's baa1 stable standard & poor 's( a ) bbb+ watch negative ( a ) standard & poor 's changed the outlook of the company 's public debt from stable to watch negative in december 2016 following the company 's announcement of the sky acquisition ( see note 3 โ acquisitions , disposals and other transactions to the accompanying consolidated financial statements of twenty-first century fox under the heading โ sky โ ) .
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Suspicious Activity Report : in addition , note 2 to the accompanying consolidated financial statements of twenty-first century fox summarizes the company 's significant accounting policies , including the critical accounting policy discussion found in this section . overview of the company 's business the company is a diversified global media and entertainment company , which manages and reports its businesses in the following segments : cable network programming , which principally consists of the production and licensing of programming distributed primarily through cable television systems , direct broadcast satellite operators , telecommunication companies and online video distributors in the united states ( โ u.s. โ ) and internationally . 37 television , which principally consists of the broadcasting of network programming in the u.s. and the operation of 28 full power broadcast television stations , including 11 duopolies , in the u.s. ( of these stations , 17 are affiliated with the fox broadcasting company ( โ fox โ ) , nine are affiliated with master distribution service , inc. ( โ mynetworktv โ ) , one is affiliated with both the cw television network and mynetworktv and one is an independent station ) . filmed entertainment , which principally consists of the production and acquisition of live-action and animated motion pictures for distribution and licensing in all formats in all entertainment media worldwide , and the production and licensing of television programming worldwide . direct broadcast satellite television , which consisted of the distribution of programming services via satellite , cable and broadband directly to subscribers in italy , germany and austria . the direct broadcast satellite television ( โ dbs โ ) segment consisted entirely of the operations of sky italia and sky deutschland ag ( โ sky deutschland โ ) ( collectively , the โ dbs businesses โ ) . on november 12 , 2014 , twenty-first century fox completed the sale of sky italia and its 57 % interest in sky deutschland to sky plc ( โ sky โ ) ( see note 3 โ acquisitions , disposals and other transactions to the accompanying consolidated financial statements of twenty-first century fox under the heading โ sky italia and sky deutschland โ ) . sky is a pan-european digital television provider , which operates in italy , germany , austria , the united kingdom ( โ u.k. โ ) and ireland . other , corporate and eliminations , which principally consists of corporate overhead and eliminations . following the sale of the dbs businesses , the company continues to report in five segments for comparative purposes , and there is no current activity in the dbs segment . cable network programming and television the company 's cable networks , which target various demographics , derive a majority of their revenues from monthly affiliate fees received from multi-channel video programming distributors ( โ mvpds โ ) based on the number of their subscribers . affiliate fee revenues are net of the amortization of cable distribution investments ( capitalized fees paid to u.s. mvpds to typically facilitate the carriage of a domestic cable network ) . the company defers the cable distribution investments and amortizes the amounts on a straight-line basis over the contract period . in the u.s. , cable television and direct broadcast satellite are currently the predominant means of distribution of the company 's program services . internationally , distribution technology varies region by region . the television operations derive revenues primarily from the sale of advertising , and to a lesser extent , affiliate fee revenue . adverse changes in general market conditions for advertising may affect revenues . u.s. law governing retransmission consent revenue , recognized as affiliate fees , provides a mechanism for the television stations owned by the company to seek and obtain payment from mvpds who carry the company 's broadcast signals . retransmission consent revenue consists of per subscriber-based compensatory fees paid to the company by mvpds that distribute the signals of the company 's owned and operated television stations . the company also receives compensation from independently-owned television stations that are affiliated with fox and receive retransmission consent fees from mvpds for their signals . the most significant operating expenses of the cable network programming segment and the television segment are the acquisition and production expenses related to programming , marketing and promotional expenses , and the expenses related to operating the technical facilities of the cable network or broadcaster . marketing and promotional expenses relate to improving the market visibility and awareness of the cable network or broadcaster and its programming . additional expenses include salaries , employee benefits , rent and other routine overhead expenses . the profitability of u.s. national sports contracts and certain international sports rights agreements is based on the company 's best estimates at june 30 , 2017 of attributable revenues and costs ; such estimates may change in the future and such changes may be significant . should revenues decline materially from estimates applied at june 30 , 2017 , additional amortization of rights may be recognized . should revenues improve as compared to estimated revenues , the company may have improved results related to the contract , which may be recognized over the remaining contract term . 38 filmed entertainment the filmed entertainment segment derives revenue from the production and distribution of live-action and animated motion pictures and television series . in general , motion pictures produced or acquired for distribution by the company are exhibited in u.s. and foreign theaters , followed by home entertainment , including sale and rental of dvds and blu-rays , licensing through digital distribution platforms , premium subscription television , network television and basic cable and syndicated television exploitation . television series initially produced for the networks and first-run syndication are generally licensed to domestic and international markets concurrently and subsequently made available via digital distribution platforms and released in seasonal dvd and blu-ray box sets . more successful series are later syndicated in domestic markets . story_separator_special_tag 44 fiscal 2017 versus fiscal 2016 the following table reconciles income from continuing operations before income tax expense to total segment oibda for fiscal 2017 , as compared to fiscal 2016 : replace_table_token_11_th the following table sets forth the computation of total segment oibda for fiscal 2017 , as compared to fiscal 2016 : replace_table_token_12_th the following tables set forth the company 's revenues and segment oibda for fiscal 2017 , as compared to fiscal 2016 : replace_table_token_13_th replace_table_token_14_th 45 cable network programming ( 57 % and 55 % of the company 's consolidated revenues in fiscal 2017 and 2016 , respectively ) for fiscal 2017 , revenues at the cable network programming segment increased $ 1.1 billion , or 7 % , as compared to fiscal 2016 , primarily due to higher affiliate fee , advertising and content and other revenues as shown below : replace_table_token_15_th these revenue increases are net of a decrease of approximately $ 155 million due to the strengthening of the u.s. dollar against local currencies , primarily in latin america and europe , for fiscal 2017 , as compared to fiscal 2016. for fiscal 2017 , cable network programming segment oibda increased $ 456 million , or 9 % , as compared to fiscal 2016 , primarily due to the revenue increases noted above partially offset by higher expenses of $ 645 million , or 7 % . for fiscal 2017 , the segment oibda increase is net of a decrease of approximately $ 60 million due to the strengthening of the u.s. dollar against local currencies as compared to fiscal 2016. the incremental revenues and expenses related to the ngs media business as a result of the acquisition were approximately $ 140 million for fiscal 2017 , as compared to fiscal 2016. domestic channels for fiscal 2017 , domestic affiliate fee revenue increased , as compared to fiscal 2016 , primarily due to higher average rates per subscriber led by fox news and the regional sports networks ( โ rsns โ ) partially offset by the impact of lower average subscribers . also contributing to the increase were fs1 and fs2 due to higher average rates per subscriber and higher average subscribers and fx networks due to higher average rates per subscriber . for fiscal 2017 , domestic advertising revenue increased , as compared to fiscal 2016 , primarily due to higher ratings and pricing at fox news and the broadcasts of the mlb postseason games at fs1 partially offset by the impact of lower ratings at fx networks . the increase in domestic content and other revenues for fiscal 2017 , as compared to fiscal 2016 , was primarily due to the acquisition of the ngs media business and higher svod revenue . for fiscal 2017 , domestic channels oibda increased 10 % , as compared to fiscal 2016 , primarily due to the revenue increases noted above partially offset by higher expenses . operating expenses increased approximately $ 485 million for fiscal 2017 , as compared to fiscal 2016 , principally due to higher sports rights amortization , including the mlb , national basketball association ( โ nba โ ) and national association of stock car auto racing ( โ nascar โ ) rights at the company 's sports channels , higher programming and marketing costs related to the launch of new programming at fx networks and national geographic and the acquisition of the ngs media business . international channels for fiscal 2017 , international affiliate fee revenue increased , as compared to fiscal 2016 , as a result of local currency growth of 11 % , led by additional subscribers and higher rates at fox networks group international ( โ fngi โ ) in latin america and europe and at star india ( โ star โ ) . partially offsetting the affiliate fee increase for fiscal 2017 was the adverse impact of the strengthening of the u.s. dollar against local currencies . for fiscal 2017 , international advertising revenues decreased , as compared to fiscal 2016 , as local currency growth at fngi in latin america and europe was more than offset by lower local currency advertising revenue at star due to the effect of the indian government 's demonetization initiatives on the general advertising market in india , a lower volume of cricket matches broadcast in the current year and a decrease in market share . the adverse impact of the strengthening of the u.s. dollar against local currencies also contributed to the decrease in international advertising 46 revenue . the increase in international content and other revenues for fiscal 2017 , as compared to fiscal 2016 , was primarily due to higher network and syndication revenues in latin america and asia at fngi partially offset by lower syndication revenues related to sports rights at star . for fiscal 2017 , international channels oibda increased 4 % , as compared to fiscal 2016 , primarily due to the revenue increases noted above partially offset by higher expenses . operating expenses increased approximately $ 150 million for fiscal 2017 , as compared to fiscal 2016 , primarily due to higher entertainment programming rights amortization at fngi in europe and latin america and at star partially offset by lower sports programming amortization at star , due to lower volume of cricket matches broadcast in the current year . television ( 20 % and 19 % of the company 's consolidated revenues in fiscal 2017 and 2016 , respectively ) for fiscal 2017 , revenues at the television segment increased $ 544 million , or 11 % , as compared to fiscal 2016 , primarily due to higher advertising , affiliate fee and content and other revenues . advertising revenue increased 8 % for fiscal 2017 , as compared to fiscal 2016 , primarily due to revenues resulting from the broadcast of super bowl li in february 2017 of approximately $ 425 million after agency commissions , the mlb world series which
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2,330 | we now report results for two segments : products and services . we ship a majority of our products and provide most of our services to u.s. registered customers with locations both in and outside the u.s. in addition to u.s. manufacturing and service operations , we manufacture products and provide parts cleaning and other related services in our asian and european facilities to support local and u.s. based customers . over the long-term , we believe the semiconductor market we serve will continue to grow due to multi-year industry inflections creating demand from a broad range of drivers including mobile demand driven by 5g , new cpu architectures which are enabling higher performance servers , and cloud , ai and machine learnings . we also believe that semiconductor equipment oems are increasingly relying on partners like uct to fulfill their expanding capacity requirements . critical accounting estimates our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the united states , which require us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenue and expenses and related disclosure at the date of our consolidated financial statements . on an on-going basis , we evaluate our estimates and judgments , including those related to inventories , income taxes , business combinations and goodwill , intangible assets and long-lived assets . we base our estimates and judgments on historical experience and on various other factors that we believe to be reasonable under the circumstances , the results of which form the basis of our judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates . we consider certain accounting policies related to revenue recognition , inventory valuation , accounting for income taxes , business combinations , valuation of goodwill , intangible assets and long-lived assets to be critical policies due to the estimates and judgments involved in each . 31 revenue recognition our revenues for fiscal years 2020 , 2019 and 2018 were highly concentrated in a small number of oem customers in the semiconductor capital equipment industry . we recognize revenue when promised goods or services ( performance obligations ) are transferred to a customer in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services . we perform the following five steps to determine when to recognize revenue : 1. identification of the contract ( s ) with customers โ our standard arrangement for our customers includes a signed purchase order or contract , no right of return of delivered products and no customer acceptance provisions . we assess collectability based on the creditworthiness of the customer and past transaction history . we perform on-going credit evaluations of , and do not require collateral from , our customers . 2. identification of the performance obligations in the contract โ our performance obligations include delivery of promised goods or services . 3. determination of the transaction price โ the transaction price of our contracts with customers may include both fixed and variable consideration . we include variable consideration in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved . we generally invoice our customers upon shipment of goods and completion of services with payment due within 30 to 90 days after issuance . 4. allocation of the transaction price to the performance obligations in the contract โ for contracts that contain multiple performance obligations , we allocate the transaction price to the performance obligations on a relative standalone selling price basis . for contracts with multiple performance obligations , we allocate the contract 's transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract . 5. recognition of revenue when , or as , a performance obligation is satisfied โ we recognize revenue from products sold at a point in time when we have satisfied our performance obligation by transferring control of the goods to the customer , which typically occurs at shipment or delivery . revenue from service agreements is recognized upon completion of the services . inventory valuation we write down the carrying value of our inventory to net realizable value for estimated obsolescence or unmarketable inventory in an amount equal to the difference between the cost of inventory and its estimated realizable value based upon inventory age and assumptions about future demand and market conditions . we assess the valuation of all inventories , including raw materials , work-in-process , finished goods and spare parts on a periodic basis . obsolete inventory or inventory in excess of our estimated usage is written down to its estimated market value less costs to sell , if less than its cost . the inventory write-downs are recorded as an inventory valuation allowance established on the basis of obsolete inventory or specifically identified inventory in excess of established usage . inherent in our estimates of demand and market value in determining inventory valuation are estimates related to economic trends , future demand for our products and technological obsolescence of our products . if actual demand and market conditions are less favorable than our projections , additional inventory write-downs may be required . if the inventory value is written down to its net realizable value , and subsequently there is an increased demand for the inventory at a higher value , the increased value of the inventory is not realized until the inventory is sold either as a component of a subsystem or as separate inventory . story_separator_special_tag as of december 25 , 2020 , the total u.s. and foreign valuation allowances for deferred tax assets were $ 23.1 million and $ 2.5 million , respectively . our ability to realize deferred tax assets depends on our ability to generate sufficient future taxable income . in assessing our future taxable income , we have considered all sources of future taxable income available to realize our deferred tax assets , including the taxable income from future reversal of existing temporary differences , carry forwards , and tax-planning strategies . if changes occur in the assumptions underlying our tax planning strategies or in the scheduling of the reversal of our deferred tax liabilities , the valuation allowance may need to be adjusted in the future . the company remitted foreign earnings from its subsidiary in singapore in 2020. the company has no plans to remit foreign earnings other than possibly from its singapore subsidiary . we may change our intent to reinvest certain of our undistributed foreign earnings indefinitely , which could require us to accrue or pay taxes on some or all of these undistributed earnings . liquidity and capital resources cash and cash equivalents the following table summarizes our cash and cash equivalents : replace_table_token_13_th the increase in cash and cash equivalents in fiscal year 2020 compared to fiscal year 2019 was primarily due to the cash provided by operating activities of $ 97.3 million , partially offset by the $ 36.4 million used for purchases of property , plant and equipment and principal payments on bank borrowings and finance leases of $ 28.8 million . 37 story_separator_special_tag roman ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > 5 , 2020 . the letter of credit facility has an initial available commitment of $ 50.0 million and a maturity date of august 27 , 2023. we pay quarterly in arrears a fee equal to 2.5 % ( subject to certain adjustments as per the term loans ) of the dollar equivalent of all outstanding letters of credit , and a fronting fee equal to 0.125 % of the undrawn and unexpired amount of each letter of credit . as of december 25 , 2020 , we had $ 2.4 million outstanding letters of credit with beneficiaries such as landlords of certain facility leases and government agencies making up the majority of the outstanding balance . the remaining available commitments are $ 47.6 million on the letter of credit facility and $ 65.0 million on the revolving credit facility . in fiscal 2020 , cinos china amended its existing credit agreement and entered into two additional credit agreements with a local bank that provide revolving credit facilities for a total available commitment of $ 3.5 million with various maturity dates through september 23 , 2022 and interest rates ranging from 1.9 % to 4.1 % . as of december 25 , 2020 , cinos china had an outstanding amount of $ 1.9 million with an interest rates of 2.1 % to 4.1 % under these credit agreements . cinos korea has credit agreements with various banks that provide revolving credit facilities for a total available commitment of 1.6 billion korean won ( approximately $ 1.4 million ) with annual renewals beginning from april 2021 through june 2021 and interest rates ranging from 1.4 % - 5.4 % . during the fiscal year ended december 25 , 2020 , borrowings under these revolving facilities were insignificant and no amounts were outstanding as of december 25 , 2020 . fds has a credit agreement with a local bank in the czech republic that provides for a revolving credit facility in the aggregate of up to 6.0 million euros . as of december 25 , 2020 , fds had no outstanding amount under its revolving credit facility . as of december 25 , 2020 , our total bank debt was $ 269.0 million , net of unamortized debt issuance costs of $ 7.9 million . as of december 25 , 2020 , we had $ 65.0 million , $ 7.3 million ( 6.0 million euros ) and $ 1.6 million available to draw from our revolving credit facilities in the u.s. , czech republic and china , respectively . the fair value of our long-term debt was based on level 2 inputs , and fair value was determined using quoted prices for similar liabilities in inactive markets . the carrying value of our long-term debt approximates fair value . capital expenditures capital expenditures were $ 37.2 million for the year ended december 25 , 2020 , primarily attributable to the expansion of our south korea , singapore , czech republic and certain u.s. facilities . off-balance sheet arrangements during the periods presented , we do not have unconsolidated entities or financial partnerships , such as entities often referred to as structured finance or special purpose entities , which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . in conjunction with the sale of our products in the ordinary course of business , we provide standard indemnification against certain liabilities to our customers , which may include claims of losses by their own customers resulting out of property damages , bodily injuries or deaths , or infringement of intellectual property rights by our products . our potential liability arising out of intellectual property infringement claims by any third party is generally uncapped . as of december 25 , 2020 , we have not incurred any significant costs to defend lawsuits or settle claims related to these indemnification arrangements . as a result , we believe the estimated fair value of these arrangements is minimal . 40 contractual obligations other than operating leases for certain equipment and real estate and purchase order commitments primarily for inventory , we have no off-balance sheet transactions or similar instruments and , other than the arrangements described
| cash flows replace_table_token_14_th our primary cash inflows and outflows were as follows : we generated net cash from operating activities of $ 97.3 million in fiscal year 2020 , compared to $ 121.0 million in fiscal year 2019. the $ 23.7 million decrease was driven by a decrease of $ 120.2 million in the net change from operating assets and liabilities offset by an increase of $ 8.4 million in non-cash items and by an increase of $ 88.1 million in net income . the major contributors to the net change in operating assets and liabilities , net of effects of acquisition , in fiscal year 2020 were as follows : o accounts receivable increased $ 32.7 million primarily due to the increase in revenues in fiscal 2020 and the timing of collections . o inventories increased $ 8.0 million due primarily to the customer demand outlook in 2021. o accounts payable decreased $ 12.6 million , accrued compensation and related benefits increased $ 9.7 million , and other liabilities decreased $ 7.4 million , primarily due to the timing of payments . cash used in investing activities was $ 29.8 million in fiscal year 2020 compared to $ 49.2 million in fiscal year 2019. during fiscal year 2020 , net cash used for investing activities primarily consisted of $ 36.4 million for purchases of property , plant and equipment , offset by $ 6.6 million in proceeds from insurance related to the cinos korea fire in 2018. during fiscal year 2019 , net cash used for investing activities primarily consisted of $ 29.9 million , net of cash acquired , for the dms acquisition and $ 26.3 million for purchases of property , plant and equipment . cash used in financing activities was $ 31.1 million in fiscal year 2020 compared to cash used by financing activities of $ 53.4 million in fiscal year 2019. during fiscal year 2020 , net cash used in financing activities primarily consisted of $ 28.8 million net of debt repayments and $ 1.5 million of taxes paid upon the vesting of restricted stock units .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows replace_table_token_14_th our primary cash inflows and outflows were as follows : we generated net cash from operating activities of $ 97.3 million in fiscal year 2020 , compared to $ 121.0 million in fiscal year 2019. the $ 23.7 million decrease was driven by a decrease of $ 120.2 million in the net change from operating assets and liabilities offset by an increase of $ 8.4 million in non-cash items and by an increase of $ 88.1 million in net income . the major contributors to the net change in operating assets and liabilities , net of effects of acquisition , in fiscal year 2020 were as follows : o accounts receivable increased $ 32.7 million primarily due to the increase in revenues in fiscal 2020 and the timing of collections . o inventories increased $ 8.0 million due primarily to the customer demand outlook in 2021. o accounts payable decreased $ 12.6 million , accrued compensation and related benefits increased $ 9.7 million , and other liabilities decreased $ 7.4 million , primarily due to the timing of payments . cash used in investing activities was $ 29.8 million in fiscal year 2020 compared to $ 49.2 million in fiscal year 2019. during fiscal year 2020 , net cash used for investing activities primarily consisted of $ 36.4 million for purchases of property , plant and equipment , offset by $ 6.6 million in proceeds from insurance related to the cinos korea fire in 2018. during fiscal year 2019 , net cash used for investing activities primarily consisted of $ 29.9 million , net of cash acquired , for the dms acquisition and $ 26.3 million for purchases of property , plant and equipment . cash used in financing activities was $ 31.1 million in fiscal year 2020 compared to cash used by financing activities of $ 53.4 million in fiscal year 2019. during fiscal year 2020 , net cash used in financing activities primarily consisted of $ 28.8 million net of debt repayments and $ 1.5 million of taxes paid upon the vesting of restricted stock units .
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Suspicious Activity Report : we now report results for two segments : products and services . we ship a majority of our products and provide most of our services to u.s. registered customers with locations both in and outside the u.s. in addition to u.s. manufacturing and service operations , we manufacture products and provide parts cleaning and other related services in our asian and european facilities to support local and u.s. based customers . over the long-term , we believe the semiconductor market we serve will continue to grow due to multi-year industry inflections creating demand from a broad range of drivers including mobile demand driven by 5g , new cpu architectures which are enabling higher performance servers , and cloud , ai and machine learnings . we also believe that semiconductor equipment oems are increasingly relying on partners like uct to fulfill their expanding capacity requirements . critical accounting estimates our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the united states , which require us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenue and expenses and related disclosure at the date of our consolidated financial statements . on an on-going basis , we evaluate our estimates and judgments , including those related to inventories , income taxes , business combinations and goodwill , intangible assets and long-lived assets . we base our estimates and judgments on historical experience and on various other factors that we believe to be reasonable under the circumstances , the results of which form the basis of our judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates . we consider certain accounting policies related to revenue recognition , inventory valuation , accounting for income taxes , business combinations , valuation of goodwill , intangible assets and long-lived assets to be critical policies due to the estimates and judgments involved in each . 31 revenue recognition our revenues for fiscal years 2020 , 2019 and 2018 were highly concentrated in a small number of oem customers in the semiconductor capital equipment industry . we recognize revenue when promised goods or services ( performance obligations ) are transferred to a customer in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services . we perform the following five steps to determine when to recognize revenue : 1. identification of the contract ( s ) with customers โ our standard arrangement for our customers includes a signed purchase order or contract , no right of return of delivered products and no customer acceptance provisions . we assess collectability based on the creditworthiness of the customer and past transaction history . we perform on-going credit evaluations of , and do not require collateral from , our customers . 2. identification of the performance obligations in the contract โ our performance obligations include delivery of promised goods or services . 3. determination of the transaction price โ the transaction price of our contracts with customers may include both fixed and variable consideration . we include variable consideration in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved . we generally invoice our customers upon shipment of goods and completion of services with payment due within 30 to 90 days after issuance . 4. allocation of the transaction price to the performance obligations in the contract โ for contracts that contain multiple performance obligations , we allocate the transaction price to the performance obligations on a relative standalone selling price basis . for contracts with multiple performance obligations , we allocate the contract 's transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract . 5. recognition of revenue when , or as , a performance obligation is satisfied โ we recognize revenue from products sold at a point in time when we have satisfied our performance obligation by transferring control of the goods to the customer , which typically occurs at shipment or delivery . revenue from service agreements is recognized upon completion of the services . inventory valuation we write down the carrying value of our inventory to net realizable value for estimated obsolescence or unmarketable inventory in an amount equal to the difference between the cost of inventory and its estimated realizable value based upon inventory age and assumptions about future demand and market conditions . we assess the valuation of all inventories , including raw materials , work-in-process , finished goods and spare parts on a periodic basis . obsolete inventory or inventory in excess of our estimated usage is written down to its estimated market value less costs to sell , if less than its cost . the inventory write-downs are recorded as an inventory valuation allowance established on the basis of obsolete inventory or specifically identified inventory in excess of established usage . inherent in our estimates of demand and market value in determining inventory valuation are estimates related to economic trends , future demand for our products and technological obsolescence of our products . if actual demand and market conditions are less favorable than our projections , additional inventory write-downs may be required . if the inventory value is written down to its net realizable value , and subsequently there is an increased demand for the inventory at a higher value , the increased value of the inventory is not realized until the inventory is sold either as a component of a subsystem or as separate inventory . story_separator_special_tag as of december 25 , 2020 , the total u.s. and foreign valuation allowances for deferred tax assets were $ 23.1 million and $ 2.5 million , respectively . our ability to realize deferred tax assets depends on our ability to generate sufficient future taxable income . in assessing our future taxable income , we have considered all sources of future taxable income available to realize our deferred tax assets , including the taxable income from future reversal of existing temporary differences , carry forwards , and tax-planning strategies . if changes occur in the assumptions underlying our tax planning strategies or in the scheduling of the reversal of our deferred tax liabilities , the valuation allowance may need to be adjusted in the future . the company remitted foreign earnings from its subsidiary in singapore in 2020. the company has no plans to remit foreign earnings other than possibly from its singapore subsidiary . we may change our intent to reinvest certain of our undistributed foreign earnings indefinitely , which could require us to accrue or pay taxes on some or all of these undistributed earnings . liquidity and capital resources cash and cash equivalents the following table summarizes our cash and cash equivalents : replace_table_token_13_th the increase in cash and cash equivalents in fiscal year 2020 compared to fiscal year 2019 was primarily due to the cash provided by operating activities of $ 97.3 million , partially offset by the $ 36.4 million used for purchases of property , plant and equipment and principal payments on bank borrowings and finance leases of $ 28.8 million . 37 story_separator_special_tag roman ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > 5 , 2020 . the letter of credit facility has an initial available commitment of $ 50.0 million and a maturity date of august 27 , 2023. we pay quarterly in arrears a fee equal to 2.5 % ( subject to certain adjustments as per the term loans ) of the dollar equivalent of all outstanding letters of credit , and a fronting fee equal to 0.125 % of the undrawn and unexpired amount of each letter of credit . as of december 25 , 2020 , we had $ 2.4 million outstanding letters of credit with beneficiaries such as landlords of certain facility leases and government agencies making up the majority of the outstanding balance . the remaining available commitments are $ 47.6 million on the letter of credit facility and $ 65.0 million on the revolving credit facility . in fiscal 2020 , cinos china amended its existing credit agreement and entered into two additional credit agreements with a local bank that provide revolving credit facilities for a total available commitment of $ 3.5 million with various maturity dates through september 23 , 2022 and interest rates ranging from 1.9 % to 4.1 % . as of december 25 , 2020 , cinos china had an outstanding amount of $ 1.9 million with an interest rates of 2.1 % to 4.1 % under these credit agreements . cinos korea has credit agreements with various banks that provide revolving credit facilities for a total available commitment of 1.6 billion korean won ( approximately $ 1.4 million ) with annual renewals beginning from april 2021 through june 2021 and interest rates ranging from 1.4 % - 5.4 % . during the fiscal year ended december 25 , 2020 , borrowings under these revolving facilities were insignificant and no amounts were outstanding as of december 25 , 2020 . fds has a credit agreement with a local bank in the czech republic that provides for a revolving credit facility in the aggregate of up to 6.0 million euros . as of december 25 , 2020 , fds had no outstanding amount under its revolving credit facility . as of december 25 , 2020 , our total bank debt was $ 269.0 million , net of unamortized debt issuance costs of $ 7.9 million . as of december 25 , 2020 , we had $ 65.0 million , $ 7.3 million ( 6.0 million euros ) and $ 1.6 million available to draw from our revolving credit facilities in the u.s. , czech republic and china , respectively . the fair value of our long-term debt was based on level 2 inputs , and fair value was determined using quoted prices for similar liabilities in inactive markets . the carrying value of our long-term debt approximates fair value . capital expenditures capital expenditures were $ 37.2 million for the year ended december 25 , 2020 , primarily attributable to the expansion of our south korea , singapore , czech republic and certain u.s. facilities . off-balance sheet arrangements during the periods presented , we do not have unconsolidated entities or financial partnerships , such as entities often referred to as structured finance or special purpose entities , which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . in conjunction with the sale of our products in the ordinary course of business , we provide standard indemnification against certain liabilities to our customers , which may include claims of losses by their own customers resulting out of property damages , bodily injuries or deaths , or infringement of intellectual property rights by our products . our potential liability arising out of intellectual property infringement claims by any third party is generally uncapped . as of december 25 , 2020 , we have not incurred any significant costs to defend lawsuits or settle claims related to these indemnification arrangements . as a result , we believe the estimated fair value of these arrangements is minimal . 40 contractual obligations other than operating leases for certain equipment and real estate and purchase order commitments primarily for inventory , we have no off-balance sheet transactions or similar instruments and , other than the arrangements described
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2,331 | summary of the twelve months ended december 31 , 2019 revenue grew to a record $ 1.25 billion , an increase of 2.9 % over the $ 1.21 billion in 2018 ; gross profit was a record $ 465.8 million , a 7.0 % increase , compared to the $ 435.3 million in 2018 ; gross margin improved 140 basis points to a record 37.3 % from 35.9 % in 2018 ; operating income increased 29.9 % to a record $ 200.6 million , or 16.1 % of revenue , compared to $ 154.5 million , or 12.7 % , of revenue in 2018 ; net income was a record $ 153.3 million , or $ 2.96 per diluted share , compared to $ 104.0 million , or $ 2.04 per share , in 2018 ; and achieved $ 229.8 million cash flow from operations . we had $ 98.5 million of capital expenditures , or 7.9 % of revenue . net cash flow was a positive $ 17.7 million , which includes the net pay down of $ 117.3 million of long-term debt . summary of the twelve months ended december 31 , 2018 revenue grew to a record $ 1.2 billion , an increase of 15.2 % over the $ 1.05 billion in 2017 ; gross profit was a record $ 435.3 million , a 22.0 % increase , compared to the $ 356.8 million in 2017 ; gross margin improved 210 basis points to 35.9 % from 33.8 % in 2017 ; operating income increased to a record $ 154.5 , or 12.7 % of revenue , compared to 7.5 % , in 2017 ; net income was a record $ 104.0 million , or $ 2.04 per diluted share , compared to a net loss of ( $ 1.8 ) million , or ( $ 0.04 ) per share , in 2017 ; and achieved $ 185.6 million cash flow from operations . we had $ 87.5 million of capital expenditures , or 7.2 % of revenue . net cash flow was a positive $ 36.6 million , which includes the net pay down of $ 56.8 million of long-term debt . - 34 - business outlook and factors relevant to our results of operations we continue to pursue our previously announced goals of achieving revenue of $ 2.5 billion and gross margin of 40 % , representing gross profit of $ 1.0 billion , all by 2025. acquisitions will continue to be a key part of our growth strategy to reach our 2025 revenue goal . we have a solid pipeline of designs and expanded customer relationships across all regions and product lines . the success of our business depends on , among other factors , the strength of the global economy and the stability of the financial markets , our customers ' demand for our products , the ability of our customers to meet their payment obligations , the likelihood of customers not canceling or deferring existing orders , and the strength of consumers ' demand for items containing our products in the end-markets we serve . we believe the long-term outlook for our business remains generally favorable despite the uncertainties in the global economy as we continue to execute on the strategy that has proven successful for us over the years . in april 2019 , the company announced the completion of the acquisition of gfab . in the third quarter of 2019 we entered into a share swap agreement that provides for the acquisition of lsc by the company . at the effective date of the transaction , each share of lsc will be converted into the right to receive twd $ 42.50 per share in cash , or approximately us $ 1.42 per share based on december 31 , 2019 exchange rates . the aggregate consideration to be paid by the company , based on the december 31 , 2019 exchange rate , is approximately $ 437 million . this amount is subject to change , based on the taiwan dollar to united states dollar exchange rate at closing . the acquisition received lsc shareholder approval on october 25 , 2019 , and we anticipate completing the acquisition in the second half of 2020 , subject to customary closing conditions and regulatory approvals . we expect to fund the purchase price of the transaction primarily with proceeds from a new bank financing arrangement . see โ risk factors โ the success of our business depends on the strength of the global economy and the stability of the financial markets , and any weaknesses in these areas may have a material adverse effect on our net sales , operating results and financial condition . โ in part i , item 1a of this annual report for additional information . description of sales and expenses net sales the principal factors that have affected or could affect our net sales from period to period are : the condition of the economy in general and of the semiconductor industry in particular ; political tension , including the implementation of tariffs , among and between the countries in which we do business ; our customers ' adjustments in their order levels ; changes in our pricing policies or the pricing policies of our competitors or suppliers ; the addition or termination of key supplier relationships ; the rate of introduction and acceptance by our customers of new products ; our ability to compete effectively with our current and future competitors ; our ability to enter into and renew key corporate and strategic relationships with our customers , vendors and strategic alliances ; changes in foreign currency exchange rates ; a major disruption of our information technology infrastructure ; unforeseen catastrophic events , such as armed conflict , terrorism , fires , typhoons and earthquakes ; and any other disruptions , such as change in the political or governmental policies , story_separator_special_tag - 41 - contractual obligations the following table represents our contractual obligations as of december 31 , 2019 ( in thousands ) : replace_table_token_8_th ( 1 ) interest on long-term debt assumes there are no changes in current interest rates and no changes in long-term debt from the balance outstanding as of december 31 , 2019 , other than required principal payments . the revolver and term loan mature in october 2021. tax liabilities are not included in the above contractual obligations as we can not make reasonable estimates of the amount and period in which those tax liabilities would be paid . see โ accounting for income taxes โ below and note 12 of โ notes to consolidated financial statements โ of this annual report for additional information . in addition to these purchase commitments , we have equity investment obligations for our chengdu facilities of $ 25 million for 2020 , and capital investment obligations of $ 25 million for 2020 and $ 16 million for 2021. critical accounting policies and estimates the preparation of financial statements in conformity with generally accepted principles in the united states of american ( โ u.s . gaap โ ) requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period . on an ongoing basis , we evaluate our estimates , which are based upon historical experiences , market trends and financial forecasts and projections , and upon various assumptions that management believes to be reasonable under the circumstances at that certain point in time . actual results may differ , significantly at times , from these estimates under different assumptions or conditions . we believe the following critical accounting policies and estimates affect the significant estimates and judgments we use in the preparation of our consolidated financial statements , and may involve a higher degree of judgment and complexity than others . revenue recognition we generate revenue primarily through the sale of semiconductor products either directly to a customer or to a distributor . we typically have contracts with our direct customers and distributors and in determining whether a contract exists we evaluate the terms of the agreement , the relationship with the direct customer or distributor and their ability to pay . under revenue recognition guidance , a performance obligation is a promise in a contract to transfer a distinct good or service to the customer , and is considered the unit of account . a contract 's transaction price is allocated to each distinct performance obligation and recognized as revenue when , or as , the performance obligation is satisfied . generally speaking , our primary performance obligation is the delivery of a specific good through the purchase order submitted by our customer and revenue is recognized at the time of shipment or delivery , depending on the contract terms . we record allowances/reserves for the following items : ( i ) ship and debit , which arise when we , from time to time based on market conditions , issue credit to certain distributors upon their shipments to their end customers ; ( ii ) stock rotation , which are contractual obligations that permit certain distributors , up to four times a year , to return a portion of their inventory based on historical shipments to them in exchange for an equal and offsetting order ; and ( iii ) price protection , which arise when market conditions cause average selling prices to decrease and we issue credit to certain distributors on their inventory . ship and debit accruals comprise both claims in process and anticipated claims arising from the eventual sale of distribution inventory that is subject to claim activity . ship and debit reserves are recorded as a reduction to net sales with a corresponding reduction to accounts receivable . stock rotation reserves are recorded as a reduction to net sales with a corresponding reduction to cost of goods sold for the estimated cost of inventory that is expected to be returned . price protection reserves are recorded as a reduction to net sales with a corresponding increase in accrued liabilities . - 42 - we also assess our customer 's ability and intention to pay , which is based on a variety of factors including our customer 's historical payment experience , their financial condition and the condition of the global economy and financial markets . payment terms and conditions typically vary depending on negotiations with the customer . certain customers have limited rights of return or are entitled to price adjustments on products held in their inventory or upon sale to their end customers . we reduce net sales in the period of sale for estimates of product returns , distributor price adjustments and other allowances . our reserve estimates are based upon historical data as well as projections of sales , distributor inventories , price adjustments , average selling prices and market conditions . actual returns and adjustments could be significantly different from our estimates and provisions , resulting in an adjustment to net sales . inventories inventories are stated at the lower of cost or net realizable value . cost is determined principally by the first-in , first-out method . on an ongoing basis , we evaluate our inventory for obsolescence and slow-moving items . this evaluation includes analysis of sales levels , sales projections , and purchases by item , as well as raw material usage related to our manufacturing facilities . if our review indicates a reduction in utility below carrying value , we reduce our inventory to a new cost basis . if future demand or market conditions are different than our current estimates , an inventory adjustment may be required , and would be reflected in cost of goods sold in the period the revision
| liquidity requirements our primary liquidity requirements have been to meet our capital expenditure needs and to fund ongoing operations . for 2019 and 2018 our working capital was $ 524.6 million and $ 480.8 million , respectively . in 2019 , our working capital increased due to increases in cash and accounts receivable , reflecting our increased sales . we expect cash generated by our operations together with existing cash , cash equivalents , short-term investments and available credit facilities to be sufficient to satisfy our working capital needs , capital asset purchases , outstanding commitments and other liquidity requirements associated with our existing operations for at least the next 12 months . short-term investments as of december 31 , 2019 , we had short-term investments of approximately $ 4.8 million . these investments are highly liquid with maturity dates greater than three months at the date of purchase . the decrease from $ 7.5 million in 2018 , to $ 4.8 million in 2019 reflects the use of these investments to reduce our debt levels . we generally can access these investments in a relatively short amount of time but in doing so we generally forfeit a portion of interest income . short-term debt our asia subsidiaries maintain credit facilities with several financial institutions through our foreign entities worldwide totaling $ 126.6 million . at december 31 , 2019 , borrowings were $ 13.3 million and letters of credit were $ 1.4 million under the asia credit facilities . other than two taiwanese credit facilities that are collateralized by assets , our foreign credit lines are unsecured , uncommitted , repayable on demand , terminable by the lender at any time and contain no restrictive covenants . these credit facilities bear interest at libor or similar indices plus a specified margin . interest payments are due quarterly on outstanding amounts under the credit lines . long-term debt we currently have a u.s. banking credit facility ( the โ u.s . credit facility โ ) under which we may draw up to $ 250 million on a revolving basis , in addition to a $ 250 million term loan .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity requirements our primary liquidity requirements have been to meet our capital expenditure needs and to fund ongoing operations . for 2019 and 2018 our working capital was $ 524.6 million and $ 480.8 million , respectively . in 2019 , our working capital increased due to increases in cash and accounts receivable , reflecting our increased sales . we expect cash generated by our operations together with existing cash , cash equivalents , short-term investments and available credit facilities to be sufficient to satisfy our working capital needs , capital asset purchases , outstanding commitments and other liquidity requirements associated with our existing operations for at least the next 12 months . short-term investments as of december 31 , 2019 , we had short-term investments of approximately $ 4.8 million . these investments are highly liquid with maturity dates greater than three months at the date of purchase . the decrease from $ 7.5 million in 2018 , to $ 4.8 million in 2019 reflects the use of these investments to reduce our debt levels . we generally can access these investments in a relatively short amount of time but in doing so we generally forfeit a portion of interest income . short-term debt our asia subsidiaries maintain credit facilities with several financial institutions through our foreign entities worldwide totaling $ 126.6 million . at december 31 , 2019 , borrowings were $ 13.3 million and letters of credit were $ 1.4 million under the asia credit facilities . other than two taiwanese credit facilities that are collateralized by assets , our foreign credit lines are unsecured , uncommitted , repayable on demand , terminable by the lender at any time and contain no restrictive covenants . these credit facilities bear interest at libor or similar indices plus a specified margin . interest payments are due quarterly on outstanding amounts under the credit lines . long-term debt we currently have a u.s. banking credit facility ( the โ u.s . credit facility โ ) under which we may draw up to $ 250 million on a revolving basis , in addition to a $ 250 million term loan .
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Suspicious Activity Report : summary of the twelve months ended december 31 , 2019 revenue grew to a record $ 1.25 billion , an increase of 2.9 % over the $ 1.21 billion in 2018 ; gross profit was a record $ 465.8 million , a 7.0 % increase , compared to the $ 435.3 million in 2018 ; gross margin improved 140 basis points to a record 37.3 % from 35.9 % in 2018 ; operating income increased 29.9 % to a record $ 200.6 million , or 16.1 % of revenue , compared to $ 154.5 million , or 12.7 % , of revenue in 2018 ; net income was a record $ 153.3 million , or $ 2.96 per diluted share , compared to $ 104.0 million , or $ 2.04 per share , in 2018 ; and achieved $ 229.8 million cash flow from operations . we had $ 98.5 million of capital expenditures , or 7.9 % of revenue . net cash flow was a positive $ 17.7 million , which includes the net pay down of $ 117.3 million of long-term debt . summary of the twelve months ended december 31 , 2018 revenue grew to a record $ 1.2 billion , an increase of 15.2 % over the $ 1.05 billion in 2017 ; gross profit was a record $ 435.3 million , a 22.0 % increase , compared to the $ 356.8 million in 2017 ; gross margin improved 210 basis points to 35.9 % from 33.8 % in 2017 ; operating income increased to a record $ 154.5 , or 12.7 % of revenue , compared to 7.5 % , in 2017 ; net income was a record $ 104.0 million , or $ 2.04 per diluted share , compared to a net loss of ( $ 1.8 ) million , or ( $ 0.04 ) per share , in 2017 ; and achieved $ 185.6 million cash flow from operations . we had $ 87.5 million of capital expenditures , or 7.2 % of revenue . net cash flow was a positive $ 36.6 million , which includes the net pay down of $ 56.8 million of long-term debt . - 34 - business outlook and factors relevant to our results of operations we continue to pursue our previously announced goals of achieving revenue of $ 2.5 billion and gross margin of 40 % , representing gross profit of $ 1.0 billion , all by 2025. acquisitions will continue to be a key part of our growth strategy to reach our 2025 revenue goal . we have a solid pipeline of designs and expanded customer relationships across all regions and product lines . the success of our business depends on , among other factors , the strength of the global economy and the stability of the financial markets , our customers ' demand for our products , the ability of our customers to meet their payment obligations , the likelihood of customers not canceling or deferring existing orders , and the strength of consumers ' demand for items containing our products in the end-markets we serve . we believe the long-term outlook for our business remains generally favorable despite the uncertainties in the global economy as we continue to execute on the strategy that has proven successful for us over the years . in april 2019 , the company announced the completion of the acquisition of gfab . in the third quarter of 2019 we entered into a share swap agreement that provides for the acquisition of lsc by the company . at the effective date of the transaction , each share of lsc will be converted into the right to receive twd $ 42.50 per share in cash , or approximately us $ 1.42 per share based on december 31 , 2019 exchange rates . the aggregate consideration to be paid by the company , based on the december 31 , 2019 exchange rate , is approximately $ 437 million . this amount is subject to change , based on the taiwan dollar to united states dollar exchange rate at closing . the acquisition received lsc shareholder approval on october 25 , 2019 , and we anticipate completing the acquisition in the second half of 2020 , subject to customary closing conditions and regulatory approvals . we expect to fund the purchase price of the transaction primarily with proceeds from a new bank financing arrangement . see โ risk factors โ the success of our business depends on the strength of the global economy and the stability of the financial markets , and any weaknesses in these areas may have a material adverse effect on our net sales , operating results and financial condition . โ in part i , item 1a of this annual report for additional information . description of sales and expenses net sales the principal factors that have affected or could affect our net sales from period to period are : the condition of the economy in general and of the semiconductor industry in particular ; political tension , including the implementation of tariffs , among and between the countries in which we do business ; our customers ' adjustments in their order levels ; changes in our pricing policies or the pricing policies of our competitors or suppliers ; the addition or termination of key supplier relationships ; the rate of introduction and acceptance by our customers of new products ; our ability to compete effectively with our current and future competitors ; our ability to enter into and renew key corporate and strategic relationships with our customers , vendors and strategic alliances ; changes in foreign currency exchange rates ; a major disruption of our information technology infrastructure ; unforeseen catastrophic events , such as armed conflict , terrorism , fires , typhoons and earthquakes ; and any other disruptions , such as change in the political or governmental policies , story_separator_special_tag - 41 - contractual obligations the following table represents our contractual obligations as of december 31 , 2019 ( in thousands ) : replace_table_token_8_th ( 1 ) interest on long-term debt assumes there are no changes in current interest rates and no changes in long-term debt from the balance outstanding as of december 31 , 2019 , other than required principal payments . the revolver and term loan mature in october 2021. tax liabilities are not included in the above contractual obligations as we can not make reasonable estimates of the amount and period in which those tax liabilities would be paid . see โ accounting for income taxes โ below and note 12 of โ notes to consolidated financial statements โ of this annual report for additional information . in addition to these purchase commitments , we have equity investment obligations for our chengdu facilities of $ 25 million for 2020 , and capital investment obligations of $ 25 million for 2020 and $ 16 million for 2021. critical accounting policies and estimates the preparation of financial statements in conformity with generally accepted principles in the united states of american ( โ u.s . gaap โ ) requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period . on an ongoing basis , we evaluate our estimates , which are based upon historical experiences , market trends and financial forecasts and projections , and upon various assumptions that management believes to be reasonable under the circumstances at that certain point in time . actual results may differ , significantly at times , from these estimates under different assumptions or conditions . we believe the following critical accounting policies and estimates affect the significant estimates and judgments we use in the preparation of our consolidated financial statements , and may involve a higher degree of judgment and complexity than others . revenue recognition we generate revenue primarily through the sale of semiconductor products either directly to a customer or to a distributor . we typically have contracts with our direct customers and distributors and in determining whether a contract exists we evaluate the terms of the agreement , the relationship with the direct customer or distributor and their ability to pay . under revenue recognition guidance , a performance obligation is a promise in a contract to transfer a distinct good or service to the customer , and is considered the unit of account . a contract 's transaction price is allocated to each distinct performance obligation and recognized as revenue when , or as , the performance obligation is satisfied . generally speaking , our primary performance obligation is the delivery of a specific good through the purchase order submitted by our customer and revenue is recognized at the time of shipment or delivery , depending on the contract terms . we record allowances/reserves for the following items : ( i ) ship and debit , which arise when we , from time to time based on market conditions , issue credit to certain distributors upon their shipments to their end customers ; ( ii ) stock rotation , which are contractual obligations that permit certain distributors , up to four times a year , to return a portion of their inventory based on historical shipments to them in exchange for an equal and offsetting order ; and ( iii ) price protection , which arise when market conditions cause average selling prices to decrease and we issue credit to certain distributors on their inventory . ship and debit accruals comprise both claims in process and anticipated claims arising from the eventual sale of distribution inventory that is subject to claim activity . ship and debit reserves are recorded as a reduction to net sales with a corresponding reduction to accounts receivable . stock rotation reserves are recorded as a reduction to net sales with a corresponding reduction to cost of goods sold for the estimated cost of inventory that is expected to be returned . price protection reserves are recorded as a reduction to net sales with a corresponding increase in accrued liabilities . - 42 - we also assess our customer 's ability and intention to pay , which is based on a variety of factors including our customer 's historical payment experience , their financial condition and the condition of the global economy and financial markets . payment terms and conditions typically vary depending on negotiations with the customer . certain customers have limited rights of return or are entitled to price adjustments on products held in their inventory or upon sale to their end customers . we reduce net sales in the period of sale for estimates of product returns , distributor price adjustments and other allowances . our reserve estimates are based upon historical data as well as projections of sales , distributor inventories , price adjustments , average selling prices and market conditions . actual returns and adjustments could be significantly different from our estimates and provisions , resulting in an adjustment to net sales . inventories inventories are stated at the lower of cost or net realizable value . cost is determined principally by the first-in , first-out method . on an ongoing basis , we evaluate our inventory for obsolescence and slow-moving items . this evaluation includes analysis of sales levels , sales projections , and purchases by item , as well as raw material usage related to our manufacturing facilities . if our review indicates a reduction in utility below carrying value , we reduce our inventory to a new cost basis . if future demand or market conditions are different than our current estimates , an inventory adjustment may be required , and would be reflected in cost of goods sold in the period the revision
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2,332 | statements that are not historical are forward-looking and reflect expectations for future company performance . in addition , forward-looking statements may be made orally or in press releases , conferences , reports , on the company 's web site , or otherwise , in the future by or on behalf of the company . when used by or on behalf of the company , the words โ expect , โ โ anticipate , โ โ estimate , โ โ believe , โ โ intend , โ โ will , โ โ plan , โ โ predict , โ โ project , โ โ outlook , โ โ could , โ โ may , โ โ should , โ and similar expressions generally identify forward-looking statements . for these statements throughout the annual report on form 10-k , the company claims the protection of the safe harbor for forward-looking statements contained in the private securities litigation reform act of 1995. the entire sections entitled โ financial overview and outlook โ and โ risk factors โ should be considered forward-looking statements . forward-looking statements involve a number of risks and uncertainties , including but not limited to those discussed in the โ risk factors โ section contained in item 1a . readers should not place undue reliance on any forward-looking statement and should recognize that the statements are predictions of future results or conditions , which may not occur as anticipated . actual results or conditions could differ materially from those anticipated in the forward-looking statements and from historical results , due to the risks and uncertainties described herein , as well as others not now anticipated . the risks and uncertainties described herein are not exclusive and further information concerning the company and its businesses , including factors that potentially could materially affect the company 's financial results , may emerge from time to time . except as required by law , the company assumes no obligation to update forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements . company overview the company manufactures and markets center pivot , lateral move , and hose reel irrigation systems . the company also produces and markets irrigation controls , chemical injection systems , remote monitoring and irrigation scheduling systems . these products are used by farmers to increase or stabilize crop production while conserving water , energy , and labor . through its acquisitions and third-party commercial arrangements , the company has been able to enhance its capabilities in providing innovative , turn-key solutions to customers through the integration of designs , controls , and pump stations . the company sells its irrigation products primarily to a world-wide independent dealer network , who resell to their customers , the farmers . the company 's primary production facilities are located in the united states . the company has smaller production and sales operations in brazil , france , china , turkey , and south africa , as well as distribution and sales operations in the netherlands , australia , and new zealand . the company also manufactures and markets , through distributors and direct sales to customers , various infrastructure products , including moveable barriers for traffic lane management , crash cushions , preformed reflective pavement tapes , and other road safety devices , through its production facilities in the united states and italy , and has produced road safety products in irrigation manufacturing facilities in china and brazil . in addition , the company 's infrastructure segment produces large diameter steel tubing , and railroad signals and structures , and provides outsourced manufacturing and production services for other companies . for the business overall , the global , long-term drivers of population growth , water conservation and environmental sustainability , the need for increased food production , and the need for safer , more efficient transportation solutions remain positive . key factors which impact demand for the company 's irrigation products include total worldwide agricultural crop production , the profitability of agricultural crop production , agricultural commodity prices , net farm income , availability of financing for farmers , governmental policies regarding the agricultural sector , water and energy conservation policies , the regularity of rainfall , regional climate conditions , and foreign currency exchange rates . a key factor which impacts demand for the company 's infrastructure products is the amount of spending authorized by governments to improve road and highway systems . much of the u.s. highway infrastructure market is driven by government spending programs . for example , the u.s. government funds highway and road improvements through the federal highway trust fund program . this program provides funding to improve the nation 's roadway system . in december 2015 , the u.s. government enacted a five-year , $ 305 billion highway-funding bill ( the fast act โ ) to fund highway and bridge projects . the fast act expired september 30 , 2020 and a one-year extension has been approved by congress . matching funding from the various states may be required as a condition of federal funding . 20 the company continues to have an ongoing , structured , acquisition process that it expects to generate additional growth opportunities throughout the world and add to its irrigation and infrastructure capabilities . the company is committed to achieving earnings growth by global market expansion , improvements in margins , and strategic acquisitions . covid-19 impact in march 2020 , the world health organization declared coronavirus ( covid-19 ) a global pandemic . story_separator_special_tag excluding the impact of foreign currency translation , international irrigation revenues increased $ 0.3 million , or less than one percent , compared to the prior year . increased sales in brazil and certain other markets were offset by a lower level of project activity in developing markets . 24 infrastructure segment revenues in fiscal 2020 increased by $ 38.6 million , or 42 percent , to $ 131.2 million from $ 92.6 million in fiscal 2019. the increase resulted primarily from higher road zipper system ยฎ sales and lease revenues compared to the prior year , including approximately $ 2 7 .0 million from a single project in the united kingdom . gross profit gross profit was $ 152.5 million for fiscal 2020 , an increase of $ 37.9 million , or 33 percent , compared to $ 114.6 million in fiscal 2019. the increase in gross profit resulted primarily from a more profitable margin mix from higher infrastructure revenues as well as from the results of margin improvement initiatives in both segments . in addition , gross profit for fiscal 2020 included a gain of $ 1.2 million on the sale of a building that had been held for sale . gross margin was 32.1 % of sales for fiscal 2020 compared to 25.8 % of sales for fiscal 2019. operating expenses the company 's operating expenses of $ 98.3 million for fiscal 2020 decreased $ 10.2 million , or 9 percent , compared to fiscal 2019 operating expenses of $ 108.5 million . fiscal 2019 operating expenses included costs of $ 15.1 million in connection with the company 's foundation for growth initiative and a $ 2.7 million valuation adjustment for indirect tax credits in a foreign jurisdiction that did not repeat in fiscal 2020. excluding the impact of the non-repeating costs , operating expenses increased 2 percent compared to the prior year primarily due to an increase in incentive compensation that was partially offset by reductions in other areas . income taxes the company recorded income tax expense of $ 10.2 million and income tax benefit of $ 65 thousand for fiscal 2020 and fiscal 2019 , respectively . the effective tax rate for fiscal 2020 was 20.9 percent and reflected the earnings mix between the u.s. and foreign operations , the utilization of previously reserved net operating loss carryforwards and adjustments related to the accrual for uncertain tax positions . the income tax benefit for fiscal 2019 resulted primarily from the impact of a change in the effective state tax rate on deferred tax assets and other discrete items . net earnings net earnings for fiscal 2020 were $ 38.6 million , or $ 3.56 per diluted share , compared to $ 2.2 million , or $ 0.20 per diluted share , for fiscal 2019. story_separator_special_tag contextref= `` c_0000836157_us-gaapcreditfacilityaxis_us-gaaprevolvingcreditfacilitymember_20200831 `` decimals= `` 3 `` id= `` f_000982 `` name= `` us-gaap : debtinstrumentinterestrateeffectivepercentage `` scale= `` -2 `` unitref= `` u_xbrlipure `` > 1.1 percent at august 31 , 2020 ) , subject to adjustment as set forth in the loan documents for the revolving credit facility . interest is paid on a monthly to quarterly basis depending on loan type . the company currently pays an annual commitment fee of 0.15 percent on the unused portion of the revolving credit facility . borrowings under the revolving credit facility have equal priority with borrowings under the company 's senior notes . each of the credit arrangements described above include certain covenants relating primarily to the company 's financial condition . these financial covenants include a funded debt to ebitda leverage ratio and an interest coverage ratio . in the event that the loan documents for the revolving credit facility were to require the company to comply with any financial covenant that is not already included or is more restrictive than what is 26 already included in the arrangement governing the senior notes , then such covenant shall be deemed incorporated by reference into the senior notes for the benefit of the holders of the senior notes . upon the occurrence of any event of default of these covenants , including a change in control of the company , all amounts outstanding thereunder may be declared to be immediately due and payable . at august 31 , 20 20 and august 31 , 20 19 , the company was in compliance with all financial loan covenants contained in its credit arrangements in place as of each of those dates . series 2006a bonds . elecsys international , llc , a wholly owned subsidiary of the company , has outstanding $ 1.6 million in principal amount of industrial revenue bonds that were issued in 2006 ( the โ series 2006a bonds โ ) . principal and interest on the series 2006a bonds are payable monthly through maturity on september 1 , 2026. the interest rate is adjustable every five years based on the yield of the 5-year united states treasury notes , plus 0.45 percent ( 1.92 percent as of august 31 , 2020 ) . this rate was adjusted on september 1 , 2016 in accordance with the terms of the bonds , and the adjusted rate will be in force until september 1 , 2021. the obligations under the series 2006a bonds are secured by a first priority security interest in certain real estate . inflation the company is subject to the effects of changing prices . during fiscal 2020 , the company experienced pricing volatility for purchases of certain commodities , in particular steel and zinc products used in the production of its products . while the cost outlook for commodities used in the production of the company 's products is not certain , management believes it can manage these inflationary pressures by introducing appropriate sales price adjustments and by actively pursuing internal cost reduction efforts , while further refining the company 's inventory and raw materials risk management system . however , competitive
| liquidity and capital resources the company 's cash , cash equivalents , and marketable securities totaled $ 140.9 million at august 31 , 2020 compared with $ 127.2 million at august 31 , 2019. the increase resulted primarily from current year earnings , partially offset by increases in working capital . the company requires cash for financing its receivables and inventories , paying operating expenses and capital expenditures , and for dividends and share repurchases . the company 's investments in marketable securities are primarily comprised of united states government securities and investment grade corporate bonds . the company meets its liquidity needs and finances its capital expenditures from its available cash and funds provided by operations along with borrowings under the credit arrangements that are described below . the company believes its current cash resources , investments in marketable securities , projected operating cash flow , and remaining capacity under its continuing bank lines of credit are sufficient to cover all of its expected working capital needs , planned capital expenditures and dividends . the company may require additional borrowings to fund potential acquisitions in the future . the company 's total cash and cash equivalents held by foreign subsidiaries amounted to $ 37.2 million and $ 48.1 million as of august 31 , 2020 and 2019 , respectively . the company considers earnings of foreign subsidiaries to be indefinitely reinvested , and would need to accrue and pay incremental state , local , and foreign taxes if such earnings were repatriated to the united states . the company does not intend to repatriate the funds and does not expect these funds to have a significant impact on the company 's overall liquidity . net working capital was $ 245.5 million at august 31 , 2020 as compared with $ 231.4 million at august 31 , 2019. cash flows provided by operations totaled $ 46.0 million during the year ended august 31 , 2020 compared to $ 3.8 million provided by operations during the same prior year period .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources the company 's cash , cash equivalents , and marketable securities totaled $ 140.9 million at august 31 , 2020 compared with $ 127.2 million at august 31 , 2019. the increase resulted primarily from current year earnings , partially offset by increases in working capital . the company requires cash for financing its receivables and inventories , paying operating expenses and capital expenditures , and for dividends and share repurchases . the company 's investments in marketable securities are primarily comprised of united states government securities and investment grade corporate bonds . the company meets its liquidity needs and finances its capital expenditures from its available cash and funds provided by operations along with borrowings under the credit arrangements that are described below . the company believes its current cash resources , investments in marketable securities , projected operating cash flow , and remaining capacity under its continuing bank lines of credit are sufficient to cover all of its expected working capital needs , planned capital expenditures and dividends . the company may require additional borrowings to fund potential acquisitions in the future . the company 's total cash and cash equivalents held by foreign subsidiaries amounted to $ 37.2 million and $ 48.1 million as of august 31 , 2020 and 2019 , respectively . the company considers earnings of foreign subsidiaries to be indefinitely reinvested , and would need to accrue and pay incremental state , local , and foreign taxes if such earnings were repatriated to the united states . the company does not intend to repatriate the funds and does not expect these funds to have a significant impact on the company 's overall liquidity . net working capital was $ 245.5 million at august 31 , 2020 as compared with $ 231.4 million at august 31 , 2019. cash flows provided by operations totaled $ 46.0 million during the year ended august 31 , 2020 compared to $ 3.8 million provided by operations during the same prior year period .
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Suspicious Activity Report : statements that are not historical are forward-looking and reflect expectations for future company performance . in addition , forward-looking statements may be made orally or in press releases , conferences , reports , on the company 's web site , or otherwise , in the future by or on behalf of the company . when used by or on behalf of the company , the words โ expect , โ โ anticipate , โ โ estimate , โ โ believe , โ โ intend , โ โ will , โ โ plan , โ โ predict , โ โ project , โ โ outlook , โ โ could , โ โ may , โ โ should , โ and similar expressions generally identify forward-looking statements . for these statements throughout the annual report on form 10-k , the company claims the protection of the safe harbor for forward-looking statements contained in the private securities litigation reform act of 1995. the entire sections entitled โ financial overview and outlook โ and โ risk factors โ should be considered forward-looking statements . forward-looking statements involve a number of risks and uncertainties , including but not limited to those discussed in the โ risk factors โ section contained in item 1a . readers should not place undue reliance on any forward-looking statement and should recognize that the statements are predictions of future results or conditions , which may not occur as anticipated . actual results or conditions could differ materially from those anticipated in the forward-looking statements and from historical results , due to the risks and uncertainties described herein , as well as others not now anticipated . the risks and uncertainties described herein are not exclusive and further information concerning the company and its businesses , including factors that potentially could materially affect the company 's financial results , may emerge from time to time . except as required by law , the company assumes no obligation to update forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements . company overview the company manufactures and markets center pivot , lateral move , and hose reel irrigation systems . the company also produces and markets irrigation controls , chemical injection systems , remote monitoring and irrigation scheduling systems . these products are used by farmers to increase or stabilize crop production while conserving water , energy , and labor . through its acquisitions and third-party commercial arrangements , the company has been able to enhance its capabilities in providing innovative , turn-key solutions to customers through the integration of designs , controls , and pump stations . the company sells its irrigation products primarily to a world-wide independent dealer network , who resell to their customers , the farmers . the company 's primary production facilities are located in the united states . the company has smaller production and sales operations in brazil , france , china , turkey , and south africa , as well as distribution and sales operations in the netherlands , australia , and new zealand . the company also manufactures and markets , through distributors and direct sales to customers , various infrastructure products , including moveable barriers for traffic lane management , crash cushions , preformed reflective pavement tapes , and other road safety devices , through its production facilities in the united states and italy , and has produced road safety products in irrigation manufacturing facilities in china and brazil . in addition , the company 's infrastructure segment produces large diameter steel tubing , and railroad signals and structures , and provides outsourced manufacturing and production services for other companies . for the business overall , the global , long-term drivers of population growth , water conservation and environmental sustainability , the need for increased food production , and the need for safer , more efficient transportation solutions remain positive . key factors which impact demand for the company 's irrigation products include total worldwide agricultural crop production , the profitability of agricultural crop production , agricultural commodity prices , net farm income , availability of financing for farmers , governmental policies regarding the agricultural sector , water and energy conservation policies , the regularity of rainfall , regional climate conditions , and foreign currency exchange rates . a key factor which impacts demand for the company 's infrastructure products is the amount of spending authorized by governments to improve road and highway systems . much of the u.s. highway infrastructure market is driven by government spending programs . for example , the u.s. government funds highway and road improvements through the federal highway trust fund program . this program provides funding to improve the nation 's roadway system . in december 2015 , the u.s. government enacted a five-year , $ 305 billion highway-funding bill ( the fast act โ ) to fund highway and bridge projects . the fast act expired september 30 , 2020 and a one-year extension has been approved by congress . matching funding from the various states may be required as a condition of federal funding . 20 the company continues to have an ongoing , structured , acquisition process that it expects to generate additional growth opportunities throughout the world and add to its irrigation and infrastructure capabilities . the company is committed to achieving earnings growth by global market expansion , improvements in margins , and strategic acquisitions . covid-19 impact in march 2020 , the world health organization declared coronavirus ( covid-19 ) a global pandemic . story_separator_special_tag excluding the impact of foreign currency translation , international irrigation revenues increased $ 0.3 million , or less than one percent , compared to the prior year . increased sales in brazil and certain other markets were offset by a lower level of project activity in developing markets . 24 infrastructure segment revenues in fiscal 2020 increased by $ 38.6 million , or 42 percent , to $ 131.2 million from $ 92.6 million in fiscal 2019. the increase resulted primarily from higher road zipper system ยฎ sales and lease revenues compared to the prior year , including approximately $ 2 7 .0 million from a single project in the united kingdom . gross profit gross profit was $ 152.5 million for fiscal 2020 , an increase of $ 37.9 million , or 33 percent , compared to $ 114.6 million in fiscal 2019. the increase in gross profit resulted primarily from a more profitable margin mix from higher infrastructure revenues as well as from the results of margin improvement initiatives in both segments . in addition , gross profit for fiscal 2020 included a gain of $ 1.2 million on the sale of a building that had been held for sale . gross margin was 32.1 % of sales for fiscal 2020 compared to 25.8 % of sales for fiscal 2019. operating expenses the company 's operating expenses of $ 98.3 million for fiscal 2020 decreased $ 10.2 million , or 9 percent , compared to fiscal 2019 operating expenses of $ 108.5 million . fiscal 2019 operating expenses included costs of $ 15.1 million in connection with the company 's foundation for growth initiative and a $ 2.7 million valuation adjustment for indirect tax credits in a foreign jurisdiction that did not repeat in fiscal 2020. excluding the impact of the non-repeating costs , operating expenses increased 2 percent compared to the prior year primarily due to an increase in incentive compensation that was partially offset by reductions in other areas . income taxes the company recorded income tax expense of $ 10.2 million and income tax benefit of $ 65 thousand for fiscal 2020 and fiscal 2019 , respectively . the effective tax rate for fiscal 2020 was 20.9 percent and reflected the earnings mix between the u.s. and foreign operations , the utilization of previously reserved net operating loss carryforwards and adjustments related to the accrual for uncertain tax positions . the income tax benefit for fiscal 2019 resulted primarily from the impact of a change in the effective state tax rate on deferred tax assets and other discrete items . net earnings net earnings for fiscal 2020 were $ 38.6 million , or $ 3.56 per diluted share , compared to $ 2.2 million , or $ 0.20 per diluted share , for fiscal 2019. story_separator_special_tag contextref= `` c_0000836157_us-gaapcreditfacilityaxis_us-gaaprevolvingcreditfacilitymember_20200831 `` decimals= `` 3 `` id= `` f_000982 `` name= `` us-gaap : debtinstrumentinterestrateeffectivepercentage `` scale= `` -2 `` unitref= `` u_xbrlipure `` > 1.1 percent at august 31 , 2020 ) , subject to adjustment as set forth in the loan documents for the revolving credit facility . interest is paid on a monthly to quarterly basis depending on loan type . the company currently pays an annual commitment fee of 0.15 percent on the unused portion of the revolving credit facility . borrowings under the revolving credit facility have equal priority with borrowings under the company 's senior notes . each of the credit arrangements described above include certain covenants relating primarily to the company 's financial condition . these financial covenants include a funded debt to ebitda leverage ratio and an interest coverage ratio . in the event that the loan documents for the revolving credit facility were to require the company to comply with any financial covenant that is not already included or is more restrictive than what is 26 already included in the arrangement governing the senior notes , then such covenant shall be deemed incorporated by reference into the senior notes for the benefit of the holders of the senior notes . upon the occurrence of any event of default of these covenants , including a change in control of the company , all amounts outstanding thereunder may be declared to be immediately due and payable . at august 31 , 20 20 and august 31 , 20 19 , the company was in compliance with all financial loan covenants contained in its credit arrangements in place as of each of those dates . series 2006a bonds . elecsys international , llc , a wholly owned subsidiary of the company , has outstanding $ 1.6 million in principal amount of industrial revenue bonds that were issued in 2006 ( the โ series 2006a bonds โ ) . principal and interest on the series 2006a bonds are payable monthly through maturity on september 1 , 2026. the interest rate is adjustable every five years based on the yield of the 5-year united states treasury notes , plus 0.45 percent ( 1.92 percent as of august 31 , 2020 ) . this rate was adjusted on september 1 , 2016 in accordance with the terms of the bonds , and the adjusted rate will be in force until september 1 , 2021. the obligations under the series 2006a bonds are secured by a first priority security interest in certain real estate . inflation the company is subject to the effects of changing prices . during fiscal 2020 , the company experienced pricing volatility for purchases of certain commodities , in particular steel and zinc products used in the production of its products . while the cost outlook for commodities used in the production of the company 's products is not certain , management believes it can manage these inflationary pressures by introducing appropriate sales price adjustments and by actively pursuing internal cost reduction efforts , while further refining the company 's inventory and raw materials risk management system . however , competitive
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2,333 | many of our current contracts include clinical trials covering multiple geographic locations . we utilize the same management systems and reporting tools to monitor and manage these activities on the same basis worldwide . for this reason , we consider our operations to be a single business segment , and we present our results of operations as a single reportable segment . 41 our gross new business awards for the years ended december 31 , 2016 , 2015 and 2014 were $ 2,367.1 million , $ 1,927.6 million and $ 1,745.4 million , respectively . new business awards arise when a client selects us to execute its trial and is documented by written or electronic correspondence or for our strategic solutions offering when the amount of revenue expected to be recognized is measurable . the number of new business awards can vary significantly from year to year , and awards can have terms ranging from several months to several years . for our strategic solutions offering , the value of a new business award is the anticipated service revenue to be recognized in the corresponding quarter of the next fiscal year . for the remainder of our business , the value of a new award is the anticipated service revenue over the life of the contract , which does not include reimbursement activity or investigator fees . in the normal course of business , we experience contract cancellations , which are reflected as cancellations when the client provides us with written or electronic correspondence that the work should cease . during the years ended december 31 , 2016 , 2015 and 2014 we had $ 290.6 million , $ 231.0 million , and $ 251.7 million , respectively , of cancellations for which we received correspondence from the client . the number of cancellations can vary significantly from year to year . the value of the cancellation is the remaining amount of unrecognized service revenue , less the estimated effort to transition the work back to the client . our backlog consists of anticipated service revenue from new business awards that either have not started or are in process but have not been completed . backlog varies from period to period depending upon new business awards and contract modifications , cancellations , and the amount of service revenue recognized under existing contracts . our backlog at december 31 , 2016 , 2015 and 2014 was $ 2.9 billion , $ 2.4 billion , and $ 2.1 billion , respectively . industry trends isr estimated in its isr 2016 market report that the size of the worldwide cro market was approximately $ 28 billion in 2015 and will grow at a 7 % cagr to $ 38 billion over the next five years . this growth will be driven by an increase in the amount of research and development expenditures and higher levels of clinical development outsourcing by biopharmaceutical companies . acquisition of pra by kohlberg kravis roberts & co. l.p. on september 23 , 2013 , we were acquired by affiliates of kkr for $ 1.4 billion pursuant to a plan of merger by and among the company , merger sub and genstar , or merger . upon completion of the kkr transaction , merger sub was merged with and into pra holdings , inc. , predecessor company , which became a subsidiary of pinnacle holdco parent , inc. , or parent . on december 19 , 2013 , pinnacle holdco parent , inc. changed its name to pra global holdings , inc. and on july 10 , 2014 , pra global holdings , inc. changed its name to pra health sciences , inc. business combinations we have completed a number of acquisitions during 2015 and 2016 to enhance our capabilities and service offerings in certain areas . on june 8 , 2015 , we purchased the assets of value health solutions inc. , or vhs , a software development firm , for $ 0.5 million in cash and 47,598 unregistered shares of our common stock with a fair market value of $ 1.6 million ; an additional $ 0.4 million of common stock will be issued in june 2017 , less amounts reimbursable to us for any indemnification obligations of the seller . the asset purchase agreement also includes contingent consideration in the form of potential earn-out payments of up to $ 16.0 million . on march 18 , 2016 , we acquired all of the outstanding shares of nextrials , inc. , or nextrials , a developer of web-based software which integrates electronic health records with clinical trials , for $ 4.8 million in cash and contingent consideration in the form of potential earn-out payments of up to $ 3.0 million . on may 6 , 2016 , as part of the dissolution of the wuxipra clinical research ( shanghai ) co. , ltd. joint venture , or wuxipra , we acquired wuxipra 's hong kong operations for $ 0.3 million . the results of operations of acquired businesses have been included since the date of acquisition . 42 see note 4 to our audited consolidated financial statements found elsewhere in this annual report on form 10-k for additional information with respect to the acquisitions . joint ventures on may 6 , 2016 , we and wuxi apptec ( shanghai ) co. , ltd. , or wuxi , finalized an agreement to dissolve the wuxipra joint venture . under the agreement , we sold our 49 % portion of the joint venture located in mainland china for $ 4.0 million , which subsequently became a wholly owned subsidiary of wuxi . the portion of the joint venture located in hong kong became our wholly owned subsidiary and was acquired for $ 0.3 million . story_separator_special_tag the growth in service revenue and the increase in billable hours were due largely to the increase in our backlog as we entered the year , the type of services we are providing on our active studies , which was driven by the life cycles of projects that were active during the period , the growth in new business awards as a result of higher demand for our services across the industries we serve , and more effective sales efforts and the growth in the overall cro market . new business awards arise when a client selects us to execute its trial . the number of awards can vary significantly from period to period and our studies have terms ranging from several months to several years . the increase in our effective rate of the hours billed on our studies is attributable to the contract pricing terms on our current mix of active studies and the mix of clients and the services that we provide to those clients . direct costs increased by $ 146.2 million , or 16.5 % , from $ 886.5 million during the year ended december 31 , 2015 to $ 1,032.7 million during the year ended december 31 , 2016. the increase in direct costs was primarily due to an increase in labor-related costs of $ 170.6 million , as we continued to hire billable staff to support our current projects and as we hired additional staff in anticipation of our growing portfolio of studies , offset by a favorable impact of $ 21.3 million from foreign currency exchange rate fluctuations . direct costs as a percentage of service revenue increased from 64.4 % during the year ended december 31 , 2015 to 65.4 % during the year ended december 31 , 2016. this increase in direct costs as a percentage of service revenue is primarily due to the $ 8.3 million impact of research and development credits , or r & d credits , recorded during the year ended december 31 , 2015 that related to prior years . the r & d credits are the result of a comprehensive analysis we have been performing across the organization to determine whether expenditures incurred qualify as research and development as defined by the respective jurisdiction . selling , general and administrative expenses increased by $ 23.5 million , or 9.5 % , from $ 246.4 million during the year ended december 31 , 2015 to $ 269.9 million during the year ended december 31 , 2016. selling , general and administrative expenses as a percentage of service revenue decreased from 17.9 % during the year ended december 31 , 2015 to 17.1 % during the year ended december 31 , 2016. this decrease in selling , general and 47 administrative expenses as a percentage of service revenue is primarily related to our continued efforts to effectively manage our selling and administrative functions as we continue to grow . during the year ended december 31 , 2016 , we incurred transaction-related expenses of $ 44.8 million . the costs consist of $ 10.1 million of stock-based compensation expense associated with the release of the transfer restrictions on a portion of shares issuable upon exercise of vested service-based options in connection with the announcement of our march , may , and november 2016 secondary offerings . the costs also include $ 32.0 million of stock-based compensation expense related to the vesting and release of the transfer restrictions of certain performance-based stock options . in addition , we incurred $ 2.7 million of third-party fees associated with the secondary offerings and the closing of our accounts receivable financing agreement . there were no transaction-related expenses incurred for the year ended december 31 , 2015. depreciation and amortization expense decreased by $ 8.4 million , or 10.8 % , from $ 78.0 million during the year ended december 31 , 2015 to $ 69.5 million during the year ended december 31 , 2016. depreciation and amortization expense as a percentage of service revenue was 5.7 % during the year ended december 31 , 2015 and 4.4 % during the year ended december 31 , 2016. the decrease in depreciation and amortization expense as a percentage of service revenue is primarily due the continued decline in amortization of our acquired intangibles , which are amortized on an accelerated basis . interest expense , net decreased by $ 6.8 million from $ 61.7 million during the year ended december 31 , 2015 to $ 54.9 million during the year ended december 31 , 2016. the cash tender on our senior notes during 2016 , as well as a 0.8 % decrease in the weighted average interest rate on our outstanding debt as compared to the year ended december 31 , 2015 , resulted in a $ 9.7 million reduction in interest expense . additionally , interest expense decreased $ 1.6 million due to lower amortization of debt issuance costs , which was offset by an increase of $ 4.7 million related to the amortization of our terminated interest rate swaps and interest expense on our current interest rate swap . losses on modification or extinguishment of debt were $ 38.2 million during the year ended december 31 , 2016 and there were no losses on modification of debt during the year ended december 31 , 2015. the $ 38.2 million loss on extinguishment of debt incurred during the year ended december 31 , 2016 was associated with our cash tender offer on our senior notes and our refinancing of the 2013 credit facilities . the loss of $ 21.5 million due to our cash tender offer consisted of a $ 17.4 million early tender premium , a $ 3.7 million write-off of unamortized debt issuance cost and $ 0.4 million of fees associated with the transaction . the refinancing of our 2013 credit facilities resulted in a $ 16.7 million loss on extinguishment of debt , which consisted of the write-off
| cash flow from operating activities cash provided by operating activities increased by $ 7.6 million during the year ended december 31 , 2016 as compared to 2015. the increase in operating cash flow reflects increased cash flows from our operating performance and a reduction in interest payments , which was partially offset by an increase in cash outflows primarily from working capital . the changes in working capital were driven by a $ 2.1 million decrease in accounts payable and accrued expenses during the year ended december 31 , 2016 as compared to $ 21.3 million increase during the year ended december 31 , 2015 and is attributable to the timing and payment of invoices . this is partially offset by a $ 9.1 million improvement in cash outflows from our accounts receivable , unbilled services , and advanced billings accounts , driven by a slower rate of increase in our days sales outstanding during the year ended december 31 , 2016. cash provided by operating activities increased by $ 118.4 million during the year ended december 31 , 2015 as compared to 2014. the increase in operating cash flow reflects an increase in net income , a reduction in interest payments , as well as reduction in cash outflows from working capital . interest payments decreased by $ 26.1 million , primarily due to the debt payments made in conjunction with the ipo during november 2014. additionally , net income for the year ended december 31 , 2014 included a $ 11.9 million fee paid to terminate our monitoring agreement with kkr . dso contributed to a $ 31.3 million improvement in cash flow from operations and reflects a slower rate of increase in our dso in 2015 as compared to 2014. dso can shift significantly at each reporting period depending on the timing of cash receipts under contractual payment terms relative to the recognition of revenue over a project lifecycle .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flow from operating activities cash provided by operating activities increased by $ 7.6 million during the year ended december 31 , 2016 as compared to 2015. the increase in operating cash flow reflects increased cash flows from our operating performance and a reduction in interest payments , which was partially offset by an increase in cash outflows primarily from working capital . the changes in working capital were driven by a $ 2.1 million decrease in accounts payable and accrued expenses during the year ended december 31 , 2016 as compared to $ 21.3 million increase during the year ended december 31 , 2015 and is attributable to the timing and payment of invoices . this is partially offset by a $ 9.1 million improvement in cash outflows from our accounts receivable , unbilled services , and advanced billings accounts , driven by a slower rate of increase in our days sales outstanding during the year ended december 31 , 2016. cash provided by operating activities increased by $ 118.4 million during the year ended december 31 , 2015 as compared to 2014. the increase in operating cash flow reflects an increase in net income , a reduction in interest payments , as well as reduction in cash outflows from working capital . interest payments decreased by $ 26.1 million , primarily due to the debt payments made in conjunction with the ipo during november 2014. additionally , net income for the year ended december 31 , 2014 included a $ 11.9 million fee paid to terminate our monitoring agreement with kkr . dso contributed to a $ 31.3 million improvement in cash flow from operations and reflects a slower rate of increase in our dso in 2015 as compared to 2014. dso can shift significantly at each reporting period depending on the timing of cash receipts under contractual payment terms relative to the recognition of revenue over a project lifecycle .
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Suspicious Activity Report : many of our current contracts include clinical trials covering multiple geographic locations . we utilize the same management systems and reporting tools to monitor and manage these activities on the same basis worldwide . for this reason , we consider our operations to be a single business segment , and we present our results of operations as a single reportable segment . 41 our gross new business awards for the years ended december 31 , 2016 , 2015 and 2014 were $ 2,367.1 million , $ 1,927.6 million and $ 1,745.4 million , respectively . new business awards arise when a client selects us to execute its trial and is documented by written or electronic correspondence or for our strategic solutions offering when the amount of revenue expected to be recognized is measurable . the number of new business awards can vary significantly from year to year , and awards can have terms ranging from several months to several years . for our strategic solutions offering , the value of a new business award is the anticipated service revenue to be recognized in the corresponding quarter of the next fiscal year . for the remainder of our business , the value of a new award is the anticipated service revenue over the life of the contract , which does not include reimbursement activity or investigator fees . in the normal course of business , we experience contract cancellations , which are reflected as cancellations when the client provides us with written or electronic correspondence that the work should cease . during the years ended december 31 , 2016 , 2015 and 2014 we had $ 290.6 million , $ 231.0 million , and $ 251.7 million , respectively , of cancellations for which we received correspondence from the client . the number of cancellations can vary significantly from year to year . the value of the cancellation is the remaining amount of unrecognized service revenue , less the estimated effort to transition the work back to the client . our backlog consists of anticipated service revenue from new business awards that either have not started or are in process but have not been completed . backlog varies from period to period depending upon new business awards and contract modifications , cancellations , and the amount of service revenue recognized under existing contracts . our backlog at december 31 , 2016 , 2015 and 2014 was $ 2.9 billion , $ 2.4 billion , and $ 2.1 billion , respectively . industry trends isr estimated in its isr 2016 market report that the size of the worldwide cro market was approximately $ 28 billion in 2015 and will grow at a 7 % cagr to $ 38 billion over the next five years . this growth will be driven by an increase in the amount of research and development expenditures and higher levels of clinical development outsourcing by biopharmaceutical companies . acquisition of pra by kohlberg kravis roberts & co. l.p. on september 23 , 2013 , we were acquired by affiliates of kkr for $ 1.4 billion pursuant to a plan of merger by and among the company , merger sub and genstar , or merger . upon completion of the kkr transaction , merger sub was merged with and into pra holdings , inc. , predecessor company , which became a subsidiary of pinnacle holdco parent , inc. , or parent . on december 19 , 2013 , pinnacle holdco parent , inc. changed its name to pra global holdings , inc. and on july 10 , 2014 , pra global holdings , inc. changed its name to pra health sciences , inc. business combinations we have completed a number of acquisitions during 2015 and 2016 to enhance our capabilities and service offerings in certain areas . on june 8 , 2015 , we purchased the assets of value health solutions inc. , or vhs , a software development firm , for $ 0.5 million in cash and 47,598 unregistered shares of our common stock with a fair market value of $ 1.6 million ; an additional $ 0.4 million of common stock will be issued in june 2017 , less amounts reimbursable to us for any indemnification obligations of the seller . the asset purchase agreement also includes contingent consideration in the form of potential earn-out payments of up to $ 16.0 million . on march 18 , 2016 , we acquired all of the outstanding shares of nextrials , inc. , or nextrials , a developer of web-based software which integrates electronic health records with clinical trials , for $ 4.8 million in cash and contingent consideration in the form of potential earn-out payments of up to $ 3.0 million . on may 6 , 2016 , as part of the dissolution of the wuxipra clinical research ( shanghai ) co. , ltd. joint venture , or wuxipra , we acquired wuxipra 's hong kong operations for $ 0.3 million . the results of operations of acquired businesses have been included since the date of acquisition . 42 see note 4 to our audited consolidated financial statements found elsewhere in this annual report on form 10-k for additional information with respect to the acquisitions . joint ventures on may 6 , 2016 , we and wuxi apptec ( shanghai ) co. , ltd. , or wuxi , finalized an agreement to dissolve the wuxipra joint venture . under the agreement , we sold our 49 % portion of the joint venture located in mainland china for $ 4.0 million , which subsequently became a wholly owned subsidiary of wuxi . the portion of the joint venture located in hong kong became our wholly owned subsidiary and was acquired for $ 0.3 million . story_separator_special_tag the growth in service revenue and the increase in billable hours were due largely to the increase in our backlog as we entered the year , the type of services we are providing on our active studies , which was driven by the life cycles of projects that were active during the period , the growth in new business awards as a result of higher demand for our services across the industries we serve , and more effective sales efforts and the growth in the overall cro market . new business awards arise when a client selects us to execute its trial . the number of awards can vary significantly from period to period and our studies have terms ranging from several months to several years . the increase in our effective rate of the hours billed on our studies is attributable to the contract pricing terms on our current mix of active studies and the mix of clients and the services that we provide to those clients . direct costs increased by $ 146.2 million , or 16.5 % , from $ 886.5 million during the year ended december 31 , 2015 to $ 1,032.7 million during the year ended december 31 , 2016. the increase in direct costs was primarily due to an increase in labor-related costs of $ 170.6 million , as we continued to hire billable staff to support our current projects and as we hired additional staff in anticipation of our growing portfolio of studies , offset by a favorable impact of $ 21.3 million from foreign currency exchange rate fluctuations . direct costs as a percentage of service revenue increased from 64.4 % during the year ended december 31 , 2015 to 65.4 % during the year ended december 31 , 2016. this increase in direct costs as a percentage of service revenue is primarily due to the $ 8.3 million impact of research and development credits , or r & d credits , recorded during the year ended december 31 , 2015 that related to prior years . the r & d credits are the result of a comprehensive analysis we have been performing across the organization to determine whether expenditures incurred qualify as research and development as defined by the respective jurisdiction . selling , general and administrative expenses increased by $ 23.5 million , or 9.5 % , from $ 246.4 million during the year ended december 31 , 2015 to $ 269.9 million during the year ended december 31 , 2016. selling , general and administrative expenses as a percentage of service revenue decreased from 17.9 % during the year ended december 31 , 2015 to 17.1 % during the year ended december 31 , 2016. this decrease in selling , general and 47 administrative expenses as a percentage of service revenue is primarily related to our continued efforts to effectively manage our selling and administrative functions as we continue to grow . during the year ended december 31 , 2016 , we incurred transaction-related expenses of $ 44.8 million . the costs consist of $ 10.1 million of stock-based compensation expense associated with the release of the transfer restrictions on a portion of shares issuable upon exercise of vested service-based options in connection with the announcement of our march , may , and november 2016 secondary offerings . the costs also include $ 32.0 million of stock-based compensation expense related to the vesting and release of the transfer restrictions of certain performance-based stock options . in addition , we incurred $ 2.7 million of third-party fees associated with the secondary offerings and the closing of our accounts receivable financing agreement . there were no transaction-related expenses incurred for the year ended december 31 , 2015. depreciation and amortization expense decreased by $ 8.4 million , or 10.8 % , from $ 78.0 million during the year ended december 31 , 2015 to $ 69.5 million during the year ended december 31 , 2016. depreciation and amortization expense as a percentage of service revenue was 5.7 % during the year ended december 31 , 2015 and 4.4 % during the year ended december 31 , 2016. the decrease in depreciation and amortization expense as a percentage of service revenue is primarily due the continued decline in amortization of our acquired intangibles , which are amortized on an accelerated basis . interest expense , net decreased by $ 6.8 million from $ 61.7 million during the year ended december 31 , 2015 to $ 54.9 million during the year ended december 31 , 2016. the cash tender on our senior notes during 2016 , as well as a 0.8 % decrease in the weighted average interest rate on our outstanding debt as compared to the year ended december 31 , 2015 , resulted in a $ 9.7 million reduction in interest expense . additionally , interest expense decreased $ 1.6 million due to lower amortization of debt issuance costs , which was offset by an increase of $ 4.7 million related to the amortization of our terminated interest rate swaps and interest expense on our current interest rate swap . losses on modification or extinguishment of debt were $ 38.2 million during the year ended december 31 , 2016 and there were no losses on modification of debt during the year ended december 31 , 2015. the $ 38.2 million loss on extinguishment of debt incurred during the year ended december 31 , 2016 was associated with our cash tender offer on our senior notes and our refinancing of the 2013 credit facilities . the loss of $ 21.5 million due to our cash tender offer consisted of a $ 17.4 million early tender premium , a $ 3.7 million write-off of unamortized debt issuance cost and $ 0.4 million of fees associated with the transaction . the refinancing of our 2013 credit facilities resulted in a $ 16.7 million loss on extinguishment of debt , which consisted of the write-off
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2,334 | pending acquisition on january 21 , 2021 , we entered into an agreement pursuant to which all of the holders of redflex 's outstanding equity as of the record date will sell , and we will cause one of our subsidiaries to purchase , one hundred percent ( 100 % ) of the outstanding equity of redflex . the aggregate consideration payable by us under the agreement will be aud 146.1 million , and the closing of the acquisition is expected to take place in the second quarter of 2021 , subject to the satisfaction or waiver of specified conditions . for additional information , see note 21 , subsequent event , in item 8 , financial statements and supplementary data . segment information we have two operating and reportable segments , commercial services and government solutions : our commercial services segment offers toll and violation management solutions and title and registration services for racs and fmcs in north america . in europe , we provide violations processing through epc and consumer tolling services through pagatelia . our government solutions segment provides complete , end-to-end red-light , speed , school bus stop arm and bus lane enforcement solutions . we implement and administer traffic safety programs and products for municipalities and local government agencies of all sizes . segment performance is based on revenues and income from operations before depreciation , amortization , gain ( loss ) on disposal of assets , net , impairment of property and equipment , and stock-based compensation . the measure also excludes interest expense , net , income taxes and certain other transactions and is inclusive of other income , net . executive summary we operate with long-term contracts and a highly reoccurring service revenue model . we continue to execute on our strategy of growing revenues with existing customers , expanding offerings into adjacent markets through innovation or acquisition and reducing operating costs . during the periods presented , we : executed on the growth strategy by completing strategic acquisitions : hta โ we acquired hta during the first quarter of 2018 which strengthened our position in tolling and related services to rac and fmc customers . epc โ in the second quarter of 2018 , we acquired epc which provided a platform to expand our rac and fmc solutions into europe . pagatelia โ during the fourth quarter of 2019 , we acquired pagatelia which provides consumer tolling and parking solutions and is accelerating our european expansion . generated total revenue of $ 393.6 million in fiscal year 2020 compared to $ 448.7 million in fiscal year 2019. we grew product sales by $ 25.3 million year over year ; however , due to the ongoing impact of covid-19 , our service revenue declined significantly , as discussed below . during fiscal year 2019 , we grew total revenue by $ 78.6 million , from $ 370.1 million in fiscal year 2018 to $ 448.7 million in fiscal year 2019. acquisitions contributed $ 21.6 million to the revenue growth , while expansion in existing products and customers contributed to the remaining growth . generated cash flows from operating activities of $ 46.9 million , $ 133.8 million , and $ 46.0 million for fiscal years 2020 , 2019 and 2018 , respectively . our cash on hand was $ 120.3 million as of december 31 , 2020. reduced our financing costs by refinancing our term loan in february 2020 , which reduced the applicable margin on our interest rate by 50 basis points . our interest expense , net was $ 40.9 million , $ 60.7 million , and $ 69.6 million for fiscal years 2020 , 2019 and 2018 , respectively . we had a $ 19.9 million decrease in interest expense during fiscal year 2020 compared to fiscal year 2019 . 48 factors affecting our operating results our operating results and financial performance are influenced by the following merger and acquisitions activity during the periods discussed herein : business combination we were originally incorporated in delaware on august 15 , 2016 as gores holdings ii , inc. ( โ gores โ ) , a special purpose acquisition company formed for the purpose of effecting a merger , capital stock exchange , asset acquisition , stock purchase , reorganization , or other similar business combination with one or more target businesses . on january 19 , 2017 , we consummated our initial public offering , following which our shares began trading on the nasdaq capital market . on june 21 , 2018 , gores , first merger sub , second merger sub , greenlight and pe greenlight holdings , llc entered into the merger agreement , which provided for , among other things , ( i ) the first merger and ( ii ) immediately following the first merger and as part of the same overall transaction as the first merger , the second merger . in connection with the closing of this business combination on october 17 , 2018 , we changed our name to verra mobility corporation . as a result of the business combination , we became the owner , directly or indirectly , of all of the equity interests of verra mobility holdings , llc ( formerly second merger sub ) and its subsidiaries . hta acquisition and refinancing on march 1 , 2018 , we acquired hta for an aggregate purchase price of $ 603.3 million , consisting of $ 525.0 million in cash , $ 9.7 million in purchase price adjustments , a $ 11.3 million payment to the sellers for certain tax items , and the issuance of equity in greenlight with a fair value of approximately $ 57.3 million . the receipt of the equity was treated for accounting purposes as a capital contribution from greenlight acquisition corporation . story_separator_special_tag should we pursue strategic acquisitions , we may need to raise additional capital , which may be in the form of additional long-term debt , borrowings on our new revolver , or equity financings , all of which may not be available to us on favorable terms or at all . please also see section entitled โ risk factors . โ we have the ability to borrow under our new revolver to meet obligations as they come due . as of december 31 , 2020 , we had $ 48.8 million available for borrowing , net of letters of credit , under our new revolver . concentration of credit risk as of december 31 , 2020 , nycdot represented 58.9 % of accounts receivable , net . the company provides photo enforcement services to nycdot under the legacy contract and the emergency contract . at december 31 , 2020 , the legacy contract had an open receivable balance of $ 28.8 million , of which $ 20.5 million had aged beyond nycdot 's 45-day payment terms . as of december 31 , 2020 , the company had invoiced nycdot for $ 52.6 million in product revenue and $ 17.4 million in service revenue under the emergency contract . nycdot has not made any payments against the emergency contract to date . in late january 2021 , we were informed that the city of new york is investigating matters related to our past installation practices , and it is unclear whether this investigation will impact the timing of the payments . refer to concentration of credit risk within note 2 to the consolidated financial statements for additional information on significant customers ' revenue concentration . for information on the risks and uncertainties relating to our contracts with nycdot and other government entities , please see the risk factors entitled โ the new york city law department recently advised us that the city of new york is investigating certain aspects of our installation work for our largest customer , nycdot โ and โ our government contracts are subject to unique risks and uncertainties , including termination rights , delays in payment , audits and investigations , any of which could have a material adverse effect on our business โ set forth in part i , item 1a . โ risk factors . โ 57 the following table sets forth certain captions o n our statements of cash flows for the respective periods : replace_table_token_15_th cash flows from operating activities cash provided by operating activities decreased by $ 86.9 million , from $ 133.8 million in fiscal year 2019 to $ 46.9 million in fiscal year 2020. net income year over year decreased by $ 36.8 million , from $ 33.3 million income in 2019 to a $ 3.4 million loss in 2020. the aggregate adjustments to net ( loss ) income increased $ 15.4 million mainly due to a $ 6.3 million increase in credit loss expense related to the credit loss standard , the $ 7.0 million increase in the tax receivable agreement liability adjustment and a $ 6.1 million change in deferred income taxes . these increases were partially offset by a $ 5.9 million impairment of property and equipment in fiscal year 2019 with no comparable amount in 2020. there was an aggregate $ 65.5 million decrease year over year in the changes in operating assets and liabilities , which was driven primarily by a $ 77.9 million increase in accounts receivables primarily due to collection delays on the accounts receivable associated with our fixed speed camera product sales to nycdot , combined with a decrease in accounts payable and accrued liabilities due to the payout of the 2019 bonus accrual with no accrual for fiscal year 2020 and a decrease in other accruals which was consistent with our decrease in certain revenue streams . for additional information on nycdot 's impact on our cash provided by operating activities , please see the risk factor entitled โ the new york city law department recently advised us that the city of new york is investigating certain aspects of our installation work for our largest customer , nycdot โ set forth in part i , item 1a . โ risk factors . โ cash provided by operating activities increased $ 87.8 million from $ 46.0 million in fiscal year 2018 to $ 133.8 million in fiscal year 2019. the change in cash provided by operating activities year over year was primarily due to a net income increase of $ 91.7 million from a loss of $ 58.4 million in fiscal year 2018 to income of $ 33.3 million in fiscal year 2019. the growth in net income was driven by the inclusion of the results of hta and epc operations for the full year in 2019 versus only partial periods in the 2018 period . it is also attributable to $ 97.1 million of transaction ( the business combination , hta and epc acquisitions ) , non-recurring transformation , sponsor fee expenses and loss on extinguishment of debt in fiscal year 2018 for which there were no comparable amounts in fiscal year 2019. aggregate adjustments to reconcile net income ( loss ) to net cash provided by operations increased by $ 12.5 million . the increase was primarily due to inclusion of the amortization of intangibles associated with the hta and epc acquisitions and stock-based compensation for the full year in 2019 versus partial periods in 2018. the $ 26.5 million loss on extinguishment of debt in fiscal year 2018 for which there was no comparable amount in 2019 was offset by a $ 5.9 million impairment charge in the 2019 period for which there were no comparable amount in 2018. there was an aggregate $ 16.5 million decrease in the change in operating assets and liabilities which was primarily driven by an increase in prepaid expenses and the change in accrued liabilities offset by the change in accounts receivables .
| liquidity and capital resources โ below . tax receivable agreement liability adjustment . we recorded a $ 6.8 million charge in fiscal year 2020 and income of $ 0.1 million in fiscal year 2019. the adjustment in 2020 reflects the impact of an increase to the company 's deferred tax rate arising from higher estimated state tax rates due to a change in apportionment . other income , net . other income , net was $ 11.9 million in fiscal year 2020 compared to $ 11.1 million in fiscal year 2019. the increase of $ 0.8 million was primarily due to a $ 1.4 million gain related to the hta settlement agreement and another $ 1.4 million gain for the receipt of insurance proceeds related to this matter , both of which are further discussed in note 17 , commitments and contingencies , partially offset by the decreased volume in purchasing card rebates resulting from covid-19 's impact on toll usage . income tax provision . income tax provision was $ 5.4 million representing an effective tax rate of 273.4 % for fiscal year 2020 compared to $ 13.6 million , representing an effective tax rate of 28.9 % for fiscal year 2019. the effective tax rate change was primarily due to lower pre-tax income in 2020 , resulting in the company 's permanent book and tax differences having a proportionately greater impact on the effective tax rate in the current year . 53 net ( loss ) income . we had a net loss of $ 3 . 4 million for fiscal year 2020 compared to net income of $ 33.3 million for 201 9 . the $ 3 6.8 million decrease in net income was primarily due to the decline in revenue from the impact of covid-19 on our rac customers , and the other statement of operations activity discussed above . fiscal year 2019 compared to fiscal year 2018 the following table sets forth our statements of operations data and expresses each item as a percentage of total revenue for the periods presented as well as the changes between periods .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources โ below . tax receivable agreement liability adjustment . we recorded a $ 6.8 million charge in fiscal year 2020 and income of $ 0.1 million in fiscal year 2019. the adjustment in 2020 reflects the impact of an increase to the company 's deferred tax rate arising from higher estimated state tax rates due to a change in apportionment . other income , net . other income , net was $ 11.9 million in fiscal year 2020 compared to $ 11.1 million in fiscal year 2019. the increase of $ 0.8 million was primarily due to a $ 1.4 million gain related to the hta settlement agreement and another $ 1.4 million gain for the receipt of insurance proceeds related to this matter , both of which are further discussed in note 17 , commitments and contingencies , partially offset by the decreased volume in purchasing card rebates resulting from covid-19 's impact on toll usage . income tax provision . income tax provision was $ 5.4 million representing an effective tax rate of 273.4 % for fiscal year 2020 compared to $ 13.6 million , representing an effective tax rate of 28.9 % for fiscal year 2019. the effective tax rate change was primarily due to lower pre-tax income in 2020 , resulting in the company 's permanent book and tax differences having a proportionately greater impact on the effective tax rate in the current year . 53 net ( loss ) income . we had a net loss of $ 3 . 4 million for fiscal year 2020 compared to net income of $ 33.3 million for 201 9 . the $ 3 6.8 million decrease in net income was primarily due to the decline in revenue from the impact of covid-19 on our rac customers , and the other statement of operations activity discussed above . fiscal year 2019 compared to fiscal year 2018 the following table sets forth our statements of operations data and expresses each item as a percentage of total revenue for the periods presented as well as the changes between periods .
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Suspicious Activity Report : pending acquisition on january 21 , 2021 , we entered into an agreement pursuant to which all of the holders of redflex 's outstanding equity as of the record date will sell , and we will cause one of our subsidiaries to purchase , one hundred percent ( 100 % ) of the outstanding equity of redflex . the aggregate consideration payable by us under the agreement will be aud 146.1 million , and the closing of the acquisition is expected to take place in the second quarter of 2021 , subject to the satisfaction or waiver of specified conditions . for additional information , see note 21 , subsequent event , in item 8 , financial statements and supplementary data . segment information we have two operating and reportable segments , commercial services and government solutions : our commercial services segment offers toll and violation management solutions and title and registration services for racs and fmcs in north america . in europe , we provide violations processing through epc and consumer tolling services through pagatelia . our government solutions segment provides complete , end-to-end red-light , speed , school bus stop arm and bus lane enforcement solutions . we implement and administer traffic safety programs and products for municipalities and local government agencies of all sizes . segment performance is based on revenues and income from operations before depreciation , amortization , gain ( loss ) on disposal of assets , net , impairment of property and equipment , and stock-based compensation . the measure also excludes interest expense , net , income taxes and certain other transactions and is inclusive of other income , net . executive summary we operate with long-term contracts and a highly reoccurring service revenue model . we continue to execute on our strategy of growing revenues with existing customers , expanding offerings into adjacent markets through innovation or acquisition and reducing operating costs . during the periods presented , we : executed on the growth strategy by completing strategic acquisitions : hta โ we acquired hta during the first quarter of 2018 which strengthened our position in tolling and related services to rac and fmc customers . epc โ in the second quarter of 2018 , we acquired epc which provided a platform to expand our rac and fmc solutions into europe . pagatelia โ during the fourth quarter of 2019 , we acquired pagatelia which provides consumer tolling and parking solutions and is accelerating our european expansion . generated total revenue of $ 393.6 million in fiscal year 2020 compared to $ 448.7 million in fiscal year 2019. we grew product sales by $ 25.3 million year over year ; however , due to the ongoing impact of covid-19 , our service revenue declined significantly , as discussed below . during fiscal year 2019 , we grew total revenue by $ 78.6 million , from $ 370.1 million in fiscal year 2018 to $ 448.7 million in fiscal year 2019. acquisitions contributed $ 21.6 million to the revenue growth , while expansion in existing products and customers contributed to the remaining growth . generated cash flows from operating activities of $ 46.9 million , $ 133.8 million , and $ 46.0 million for fiscal years 2020 , 2019 and 2018 , respectively . our cash on hand was $ 120.3 million as of december 31 , 2020. reduced our financing costs by refinancing our term loan in february 2020 , which reduced the applicable margin on our interest rate by 50 basis points . our interest expense , net was $ 40.9 million , $ 60.7 million , and $ 69.6 million for fiscal years 2020 , 2019 and 2018 , respectively . we had a $ 19.9 million decrease in interest expense during fiscal year 2020 compared to fiscal year 2019 . 48 factors affecting our operating results our operating results and financial performance are influenced by the following merger and acquisitions activity during the periods discussed herein : business combination we were originally incorporated in delaware on august 15 , 2016 as gores holdings ii , inc. ( โ gores โ ) , a special purpose acquisition company formed for the purpose of effecting a merger , capital stock exchange , asset acquisition , stock purchase , reorganization , or other similar business combination with one or more target businesses . on january 19 , 2017 , we consummated our initial public offering , following which our shares began trading on the nasdaq capital market . on june 21 , 2018 , gores , first merger sub , second merger sub , greenlight and pe greenlight holdings , llc entered into the merger agreement , which provided for , among other things , ( i ) the first merger and ( ii ) immediately following the first merger and as part of the same overall transaction as the first merger , the second merger . in connection with the closing of this business combination on october 17 , 2018 , we changed our name to verra mobility corporation . as a result of the business combination , we became the owner , directly or indirectly , of all of the equity interests of verra mobility holdings , llc ( formerly second merger sub ) and its subsidiaries . hta acquisition and refinancing on march 1 , 2018 , we acquired hta for an aggregate purchase price of $ 603.3 million , consisting of $ 525.0 million in cash , $ 9.7 million in purchase price adjustments , a $ 11.3 million payment to the sellers for certain tax items , and the issuance of equity in greenlight with a fair value of approximately $ 57.3 million . the receipt of the equity was treated for accounting purposes as a capital contribution from greenlight acquisition corporation . story_separator_special_tag should we pursue strategic acquisitions , we may need to raise additional capital , which may be in the form of additional long-term debt , borrowings on our new revolver , or equity financings , all of which may not be available to us on favorable terms or at all . please also see section entitled โ risk factors . โ we have the ability to borrow under our new revolver to meet obligations as they come due . as of december 31 , 2020 , we had $ 48.8 million available for borrowing , net of letters of credit , under our new revolver . concentration of credit risk as of december 31 , 2020 , nycdot represented 58.9 % of accounts receivable , net . the company provides photo enforcement services to nycdot under the legacy contract and the emergency contract . at december 31 , 2020 , the legacy contract had an open receivable balance of $ 28.8 million , of which $ 20.5 million had aged beyond nycdot 's 45-day payment terms . as of december 31 , 2020 , the company had invoiced nycdot for $ 52.6 million in product revenue and $ 17.4 million in service revenue under the emergency contract . nycdot has not made any payments against the emergency contract to date . in late january 2021 , we were informed that the city of new york is investigating matters related to our past installation practices , and it is unclear whether this investigation will impact the timing of the payments . refer to concentration of credit risk within note 2 to the consolidated financial statements for additional information on significant customers ' revenue concentration . for information on the risks and uncertainties relating to our contracts with nycdot and other government entities , please see the risk factors entitled โ the new york city law department recently advised us that the city of new york is investigating certain aspects of our installation work for our largest customer , nycdot โ and โ our government contracts are subject to unique risks and uncertainties , including termination rights , delays in payment , audits and investigations , any of which could have a material adverse effect on our business โ set forth in part i , item 1a . โ risk factors . โ 57 the following table sets forth certain captions o n our statements of cash flows for the respective periods : replace_table_token_15_th cash flows from operating activities cash provided by operating activities decreased by $ 86.9 million , from $ 133.8 million in fiscal year 2019 to $ 46.9 million in fiscal year 2020. net income year over year decreased by $ 36.8 million , from $ 33.3 million income in 2019 to a $ 3.4 million loss in 2020. the aggregate adjustments to net ( loss ) income increased $ 15.4 million mainly due to a $ 6.3 million increase in credit loss expense related to the credit loss standard , the $ 7.0 million increase in the tax receivable agreement liability adjustment and a $ 6.1 million change in deferred income taxes . these increases were partially offset by a $ 5.9 million impairment of property and equipment in fiscal year 2019 with no comparable amount in 2020. there was an aggregate $ 65.5 million decrease year over year in the changes in operating assets and liabilities , which was driven primarily by a $ 77.9 million increase in accounts receivables primarily due to collection delays on the accounts receivable associated with our fixed speed camera product sales to nycdot , combined with a decrease in accounts payable and accrued liabilities due to the payout of the 2019 bonus accrual with no accrual for fiscal year 2020 and a decrease in other accruals which was consistent with our decrease in certain revenue streams . for additional information on nycdot 's impact on our cash provided by operating activities , please see the risk factor entitled โ the new york city law department recently advised us that the city of new york is investigating certain aspects of our installation work for our largest customer , nycdot โ set forth in part i , item 1a . โ risk factors . โ cash provided by operating activities increased $ 87.8 million from $ 46.0 million in fiscal year 2018 to $ 133.8 million in fiscal year 2019. the change in cash provided by operating activities year over year was primarily due to a net income increase of $ 91.7 million from a loss of $ 58.4 million in fiscal year 2018 to income of $ 33.3 million in fiscal year 2019. the growth in net income was driven by the inclusion of the results of hta and epc operations for the full year in 2019 versus only partial periods in the 2018 period . it is also attributable to $ 97.1 million of transaction ( the business combination , hta and epc acquisitions ) , non-recurring transformation , sponsor fee expenses and loss on extinguishment of debt in fiscal year 2018 for which there were no comparable amounts in fiscal year 2019. aggregate adjustments to reconcile net income ( loss ) to net cash provided by operations increased by $ 12.5 million . the increase was primarily due to inclusion of the amortization of intangibles associated with the hta and epc acquisitions and stock-based compensation for the full year in 2019 versus partial periods in 2018. the $ 26.5 million loss on extinguishment of debt in fiscal year 2018 for which there was no comparable amount in 2019 was offset by a $ 5.9 million impairment charge in the 2019 period for which there were no comparable amount in 2018. there was an aggregate $ 16.5 million decrease in the change in operating assets and liabilities which was primarily driven by an increase in prepaid expenses and the change in accrued liabilities offset by the change in accounts receivables .
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2,335 | due to the price volatility of fuel products we buy and our pricing to fuel customers , we believe that fuel revenue is not a reliable metric for analyzing our results of operations from period to period . as a result solely of changes in fuel prices , our fuel revenue may materially increase or decrease , in both absolute amounts and on a percentage basis , without a comparable change in fuel sales volumes or in fuel gross margin . we therefore consider fuel volume and fuel gross margin to be better measures of comparative performance . we generally are able to pass changes in our cost for fuel products to customers , but typically with a delay , such that during periods of rising fuel commodity prices fuel gross margins per gallon tend to be lower than they otherwise may have been and during periods of falling fuel commodity prices fuel gross margins per gallon tend to be higher than they otherwise may have been . increases and volatility in the prices we pay for fuel can have negative effects on our sales and profitability and increase our working capital requirements . for more information about fuel market risks that may affect us and our actions to mitigate those risks , see item 7a , `` quantitative and qualitative disclosures about market risk `` elsewhere in this annual report . 34 we believe that demand for fuel by trucking companies will tend to be reduced over time for any given level of economic activity by technological innovations that permit , and regulatory changes that encourage , require or give rise to , improved fuel efficiency of motor vehicle engines and other fuel conservation practices . we believe these factors were significant contributors to the modest increases in the level of fuel sales volumes we realized on a same site basis for 2015 , as compared to 2014 , despite generally improving economic conditions during 2015 . fuel volumes primarily increased in 2015 as a result of locations acquired during 2014 and 2015 . our fuel gross margins in 2015 were lower than those in 2014 , principally because the decline in fuel prices during 2014 was more rapid and acute than the decline in fuel prices in 2015 . generally , declining fuel costs are not immediately reflected in fuel retail prices , and such a condition often increases our fuel gross margins . in addition , supply conditions in 2014 were generally more favorable than those in 2015 , which also contributed to the higher gross margin in 2014 . the decrease in our net income for 2015 , as compared to 2014 , was primarily due to decreases in fuel gross margin , as noted above , increases in expenses resulting from our acquisitions and the 2015 loss on extinguishment of debt , as further described below under `` transaction agreement with hpt `` . these decreases were partially offset by an increase in nonfuel gross margin . factors affecting comparability transaction agreement with hpt in june 2015 we entered into a transaction agreement , or the transaction agreement , with our principal landlord , hpt , pursuant to which among other things , ( i ) we and hpt amended and restated the ta lease pursuant to which we then leased 144 properties from hpt into four leases , with initial lease terms ending in 2026 , 2028 , 2029 and 2030 and each subject to two 15 year renewal periods at our option ( these four leases are collectively referred to herein as the `` new ta leases `` ) , ( ii ) we sold to hpt 14 travel centers owned by us and certain assets we owned at 11 properties that we leased from hpt and leased back these properties and assets from hpt , ( iii ) we purchased from hpt five travel centers that we then leased from hpt and ( iv ) we agreed to sell to hpt five travel centers upon the completion of their development , which is expected to be completed before june 30 , 2017 , at a purchase price equal to their development costs , including the cost of the land , which costs are estimated to be not more than $ 118,000 in the aggregate , and we agreed to lease back these development properties . during the year ended december 31 , 2015 , we received proceeds of $ 279,383 from the aforementioned sale to hpt of 14 owned travel centers and certain assets at 11 properties currently leased from hpt and purchased the five above referenced travel centers from hpt for $ 45,042 . the sale of these travel centers and assets generated an aggregate gain of $ 133,668 , which was deferred and will be amortized as a reduction of our rent expense over the terms of the new ta leases . the purchase of the five travel centers resulted in a loss on extinguishment of debt of $ 10,502 . the loss on extinguishment of debt arose because the lease of these properties had been accounted for as a financing and the purchase prices paid for the properties exceeded the unamortized balance of the sale leaseback financing obligation . as of december 31 , 2015 , we leased from hpt a total of 153 properties under the new ta leases for total minimum annual rent of $ 190,745 . see note 12 to the notes to consolidated financial statements included in item 15 of this annual report for more information about this transaction with hpt . recently acquired sites since our acquisition program began in 2011 and through december 31 , 2015 , we have acquired 37 travel centers and 201 convenience stores . we invested $ 320,909 to acquire , renovate and upgrade these travel center properties and $ 388,308 to acquire , renovate and upgrade these convenience store properties . story_separator_special_tag fuel revenues for the 2014 period reflected decreases in market prices for fuel and same site sales volume , as compared to 2013 , which decreases were partially offset by increases in sales volume resulting from the locations we acquired during 2013 and 2014 . on a same site basis , fuel sales volume decreased by 84,499 gallons , or 4.3 % , during 2014 , as compared to 2013 . we believe that the effect of the truck driver hours of service rules on miles driven and truck utilization , the trend for improved fuel efficiency of heavy truck engines and other fuel conservation efforts by trucking customers and our decision to avoid certain lower margin fuel sales all contributed to the decreased same site fuel sales volume . nonfuel revenues for 2015 were $ 1,626,646 , an increase of $ 86,650 , or 5.6 % , from 2014 , primarily due to favorable results of our marketing initiatives and from the locations we acquired during 2014 and 2015 . on a same site basis , nonfuel revenues increased by $ 81,498 , or 5.4 % , for 2015 , as compared to 2014 . we believe this same site increase is primarily due to favorable effects of certain of our marketing initiatives . nonfuel revenues for 2014 were $ 1,539,996 , an increase of $ 97,281 , or 6.7 % , as compared to 2013 , as a result of certain price increases , the favorable effects of certain of our marketing initiatives and from locations we acquired during 2013 and 2014 . on a same site basis , nonfuel revenues increased by 4.1 % for 2014 , as compared to 2013 . we believe this same site increase is primarily due to the improved results at those sites we acquired during 2011 and 2012 , as well as certain price increases and the favorable effects of certain of our marketing initiatives . site level gross margin in excess of site level operating expenses . site level gross margin in excess of site level operating expenses for 2015 was $ 483,009 , a decrease of $ 9,609 , or 2.0 % , from 2014 . the decrease was primarily due to decreases in fuel gross margin and increases in site level operating expenses , partially offset by increases in nonfuel gross margin . fuel gross margin decreased $ 33,009 , or 7.8 % , for 2015 , as compared to 2014 . the fuel gross margin per gallon of $ 0.196 on a same site basis for 2015 , was $ 0.018 per gallon lower than 2014 . lower fuel margin per gallon for 2015 primarily resulted from a favorable purchasing experience in 2014 that did not recur in 2015 . site level operating expenses increased $ 38,648 , or 4.9 % , during 2015 , as compared to 2014 , primarily due to the locations we acquired during 2014 and 2015 . these decreases were partially offset by an increase in nonfuel gross margin of $ 62,006 , or 7.3 % , for 2015 , as compared to 2014 . the nonfuel gross margin was 56.3 % and 55.4 % of nonfuel revenues in 2015 and 2014 , respectively . the nonfuel gross margin percentage increased due to a favorable change in the mix of products and services sold . on a same site basis , the nonfuel gross margin percentage improved to 56.4 % from 55.5 % . site level gross margin in excess of site level operating expenses for 2014 was $ 492,618 , an increase of $ 99,113 , or 25.2 % , from 2013 . the increase was primarily due to the increases in fuel and nonfuel gross margin , partially offset by increases in site level operating expenses . fuel gross margin increased $ 80,333 , or 23.6 % , for 2014 , as compared to 2013 . the fuel gross margin per gallon of $ 0.213 on a same site basis for 2014 , was $ 0.041 per gallon higher than 2013 . higher fuel margin per gallon in 2014 primarily resulted from a favorable purchasing experience in 2014 . nonfuel gross margin increased $ 59,723 , or 7.5 % , for 2014 , as compared to 2013 . the nonfuel gross margin was 55.4 % and 55.0 % of nonfuel revenues in 2014 and 2013 , respectively . the nonfuel gross margin percentage increased due to a favorable change in the mix of products and services sold . on a same site basis , the nonfuel gross margin percentage improved to 55.6 % from 55.0 % . these increases were partially offset by higher site level operating expenses of $ 40,638 , or 5.4 % , for 2014 , as compared to 2013 , primarily due to the locations we acquired during 2013 and 2014 . 42 convenience stores the following table presents changes in the operating results of our convenience store segment for the year ended december 31 , 2015 , as compared with the year ended december 31 , 2014 . on december 16 , 2013 , we acquired 31 convenience store locations and as of december 31 , 2013 , we operated 34 convenience stores not located on a travel center property . the results of operations for these 31 locations for the period subsequent to acquisition did not have a significant impact on our consolidated results of operations for 2013 and our convenience store segment was not significant to our consolidated operating results for 2013 . therefore , the convenience store segment information for 2013 is not presented below . replace_table_token_13_th the following table presents our same site operating results for our convenience store segment for the year ended december 31 , 2015 , as compared to the year ended december 31 , 2014 . the table includes amounts for locations that were company operated during the entirety of each of the periods presented . replace_table_token_14_th
| cash flow from operating activities in 2015 , we had net cash inflows from operating activities of $ 136,888 , a decrease of $ 24,237 compared to $ 161,125 in 2014 . the decrease was primarily due to lower net income partially offset by lower net working capital in 2015 as compared to 2014 , that resulted primarily from lower fuel prices . in 2014 , we had net cash inflows from operating activities of $ 161,125 , an increase of $ 89,612 compared to $ 71,513 in 2013 . the increase was primarily due to higher net income and lower net working capital resulting primarily from lower fuel prices , partially offset by a one time litigation settlement payment in 2014 , as compared to 2013 . in january 2014 , we reached a settlement with the plaintiffs in a long running litigation and made a $ 10,000 payment in march 2014 , which offset our increase in cash flow from operating activities . see legal proceedings included in part i , item 3 of this annual report for more information about this settlement . cash flow from investing activities in 2015 , we had cash outflows from investing activities of $ 237,477 , an increase of $ 103,059 compared to $ 134,418 in 2014 . the increase was primarily due to capital expenditures and cash invested for acquisitions , partially offset by proceeds from the sale of assets to hpt . in 2015 , we invested $ 320,290 for the acquisition of three travel centers and 170 convenience stores , and we made other capital investments of $ 295,437 for improvements to our properties . in 2015 , we received $ 378,250 of proceeds from our sales of properties and assets to hpt , including improvements to properties we lease from hpt . in 2014 , we had cash outflows from investing activities of $ 134,418 , a decrease of $ 61,621 compared to $ 196,039 in 2013 . the decrease was primarily due to fewer acquisitions in 2014 compared to 2013 .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flow from operating activities in 2015 , we had net cash inflows from operating activities of $ 136,888 , a decrease of $ 24,237 compared to $ 161,125 in 2014 . the decrease was primarily due to lower net income partially offset by lower net working capital in 2015 as compared to 2014 , that resulted primarily from lower fuel prices . in 2014 , we had net cash inflows from operating activities of $ 161,125 , an increase of $ 89,612 compared to $ 71,513 in 2013 . the increase was primarily due to higher net income and lower net working capital resulting primarily from lower fuel prices , partially offset by a one time litigation settlement payment in 2014 , as compared to 2013 . in january 2014 , we reached a settlement with the plaintiffs in a long running litigation and made a $ 10,000 payment in march 2014 , which offset our increase in cash flow from operating activities . see legal proceedings included in part i , item 3 of this annual report for more information about this settlement . cash flow from investing activities in 2015 , we had cash outflows from investing activities of $ 237,477 , an increase of $ 103,059 compared to $ 134,418 in 2014 . the increase was primarily due to capital expenditures and cash invested for acquisitions , partially offset by proceeds from the sale of assets to hpt . in 2015 , we invested $ 320,290 for the acquisition of three travel centers and 170 convenience stores , and we made other capital investments of $ 295,437 for improvements to our properties . in 2015 , we received $ 378,250 of proceeds from our sales of properties and assets to hpt , including improvements to properties we lease from hpt . in 2014 , we had cash outflows from investing activities of $ 134,418 , a decrease of $ 61,621 compared to $ 196,039 in 2013 . the decrease was primarily due to fewer acquisitions in 2014 compared to 2013 .
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Suspicious Activity Report : due to the price volatility of fuel products we buy and our pricing to fuel customers , we believe that fuel revenue is not a reliable metric for analyzing our results of operations from period to period . as a result solely of changes in fuel prices , our fuel revenue may materially increase or decrease , in both absolute amounts and on a percentage basis , without a comparable change in fuel sales volumes or in fuel gross margin . we therefore consider fuel volume and fuel gross margin to be better measures of comparative performance . we generally are able to pass changes in our cost for fuel products to customers , but typically with a delay , such that during periods of rising fuel commodity prices fuel gross margins per gallon tend to be lower than they otherwise may have been and during periods of falling fuel commodity prices fuel gross margins per gallon tend to be higher than they otherwise may have been . increases and volatility in the prices we pay for fuel can have negative effects on our sales and profitability and increase our working capital requirements . for more information about fuel market risks that may affect us and our actions to mitigate those risks , see item 7a , `` quantitative and qualitative disclosures about market risk `` elsewhere in this annual report . 34 we believe that demand for fuel by trucking companies will tend to be reduced over time for any given level of economic activity by technological innovations that permit , and regulatory changes that encourage , require or give rise to , improved fuel efficiency of motor vehicle engines and other fuel conservation practices . we believe these factors were significant contributors to the modest increases in the level of fuel sales volumes we realized on a same site basis for 2015 , as compared to 2014 , despite generally improving economic conditions during 2015 . fuel volumes primarily increased in 2015 as a result of locations acquired during 2014 and 2015 . our fuel gross margins in 2015 were lower than those in 2014 , principally because the decline in fuel prices during 2014 was more rapid and acute than the decline in fuel prices in 2015 . generally , declining fuel costs are not immediately reflected in fuel retail prices , and such a condition often increases our fuel gross margins . in addition , supply conditions in 2014 were generally more favorable than those in 2015 , which also contributed to the higher gross margin in 2014 . the decrease in our net income for 2015 , as compared to 2014 , was primarily due to decreases in fuel gross margin , as noted above , increases in expenses resulting from our acquisitions and the 2015 loss on extinguishment of debt , as further described below under `` transaction agreement with hpt `` . these decreases were partially offset by an increase in nonfuel gross margin . factors affecting comparability transaction agreement with hpt in june 2015 we entered into a transaction agreement , or the transaction agreement , with our principal landlord , hpt , pursuant to which among other things , ( i ) we and hpt amended and restated the ta lease pursuant to which we then leased 144 properties from hpt into four leases , with initial lease terms ending in 2026 , 2028 , 2029 and 2030 and each subject to two 15 year renewal periods at our option ( these four leases are collectively referred to herein as the `` new ta leases `` ) , ( ii ) we sold to hpt 14 travel centers owned by us and certain assets we owned at 11 properties that we leased from hpt and leased back these properties and assets from hpt , ( iii ) we purchased from hpt five travel centers that we then leased from hpt and ( iv ) we agreed to sell to hpt five travel centers upon the completion of their development , which is expected to be completed before june 30 , 2017 , at a purchase price equal to their development costs , including the cost of the land , which costs are estimated to be not more than $ 118,000 in the aggregate , and we agreed to lease back these development properties . during the year ended december 31 , 2015 , we received proceeds of $ 279,383 from the aforementioned sale to hpt of 14 owned travel centers and certain assets at 11 properties currently leased from hpt and purchased the five above referenced travel centers from hpt for $ 45,042 . the sale of these travel centers and assets generated an aggregate gain of $ 133,668 , which was deferred and will be amortized as a reduction of our rent expense over the terms of the new ta leases . the purchase of the five travel centers resulted in a loss on extinguishment of debt of $ 10,502 . the loss on extinguishment of debt arose because the lease of these properties had been accounted for as a financing and the purchase prices paid for the properties exceeded the unamortized balance of the sale leaseback financing obligation . as of december 31 , 2015 , we leased from hpt a total of 153 properties under the new ta leases for total minimum annual rent of $ 190,745 . see note 12 to the notes to consolidated financial statements included in item 15 of this annual report for more information about this transaction with hpt . recently acquired sites since our acquisition program began in 2011 and through december 31 , 2015 , we have acquired 37 travel centers and 201 convenience stores . we invested $ 320,909 to acquire , renovate and upgrade these travel center properties and $ 388,308 to acquire , renovate and upgrade these convenience store properties . story_separator_special_tag fuel revenues for the 2014 period reflected decreases in market prices for fuel and same site sales volume , as compared to 2013 , which decreases were partially offset by increases in sales volume resulting from the locations we acquired during 2013 and 2014 . on a same site basis , fuel sales volume decreased by 84,499 gallons , or 4.3 % , during 2014 , as compared to 2013 . we believe that the effect of the truck driver hours of service rules on miles driven and truck utilization , the trend for improved fuel efficiency of heavy truck engines and other fuel conservation efforts by trucking customers and our decision to avoid certain lower margin fuel sales all contributed to the decreased same site fuel sales volume . nonfuel revenues for 2015 were $ 1,626,646 , an increase of $ 86,650 , or 5.6 % , from 2014 , primarily due to favorable results of our marketing initiatives and from the locations we acquired during 2014 and 2015 . on a same site basis , nonfuel revenues increased by $ 81,498 , or 5.4 % , for 2015 , as compared to 2014 . we believe this same site increase is primarily due to favorable effects of certain of our marketing initiatives . nonfuel revenues for 2014 were $ 1,539,996 , an increase of $ 97,281 , or 6.7 % , as compared to 2013 , as a result of certain price increases , the favorable effects of certain of our marketing initiatives and from locations we acquired during 2013 and 2014 . on a same site basis , nonfuel revenues increased by 4.1 % for 2014 , as compared to 2013 . we believe this same site increase is primarily due to the improved results at those sites we acquired during 2011 and 2012 , as well as certain price increases and the favorable effects of certain of our marketing initiatives . site level gross margin in excess of site level operating expenses . site level gross margin in excess of site level operating expenses for 2015 was $ 483,009 , a decrease of $ 9,609 , or 2.0 % , from 2014 . the decrease was primarily due to decreases in fuel gross margin and increases in site level operating expenses , partially offset by increases in nonfuel gross margin . fuel gross margin decreased $ 33,009 , or 7.8 % , for 2015 , as compared to 2014 . the fuel gross margin per gallon of $ 0.196 on a same site basis for 2015 , was $ 0.018 per gallon lower than 2014 . lower fuel margin per gallon for 2015 primarily resulted from a favorable purchasing experience in 2014 that did not recur in 2015 . site level operating expenses increased $ 38,648 , or 4.9 % , during 2015 , as compared to 2014 , primarily due to the locations we acquired during 2014 and 2015 . these decreases were partially offset by an increase in nonfuel gross margin of $ 62,006 , or 7.3 % , for 2015 , as compared to 2014 . the nonfuel gross margin was 56.3 % and 55.4 % of nonfuel revenues in 2015 and 2014 , respectively . the nonfuel gross margin percentage increased due to a favorable change in the mix of products and services sold . on a same site basis , the nonfuel gross margin percentage improved to 56.4 % from 55.5 % . site level gross margin in excess of site level operating expenses for 2014 was $ 492,618 , an increase of $ 99,113 , or 25.2 % , from 2013 . the increase was primarily due to the increases in fuel and nonfuel gross margin , partially offset by increases in site level operating expenses . fuel gross margin increased $ 80,333 , or 23.6 % , for 2014 , as compared to 2013 . the fuel gross margin per gallon of $ 0.213 on a same site basis for 2014 , was $ 0.041 per gallon higher than 2013 . higher fuel margin per gallon in 2014 primarily resulted from a favorable purchasing experience in 2014 . nonfuel gross margin increased $ 59,723 , or 7.5 % , for 2014 , as compared to 2013 . the nonfuel gross margin was 55.4 % and 55.0 % of nonfuel revenues in 2014 and 2013 , respectively . the nonfuel gross margin percentage increased due to a favorable change in the mix of products and services sold . on a same site basis , the nonfuel gross margin percentage improved to 55.6 % from 55.0 % . these increases were partially offset by higher site level operating expenses of $ 40,638 , or 5.4 % , for 2014 , as compared to 2013 , primarily due to the locations we acquired during 2013 and 2014 . 42 convenience stores the following table presents changes in the operating results of our convenience store segment for the year ended december 31 , 2015 , as compared with the year ended december 31 , 2014 . on december 16 , 2013 , we acquired 31 convenience store locations and as of december 31 , 2013 , we operated 34 convenience stores not located on a travel center property . the results of operations for these 31 locations for the period subsequent to acquisition did not have a significant impact on our consolidated results of operations for 2013 and our convenience store segment was not significant to our consolidated operating results for 2013 . therefore , the convenience store segment information for 2013 is not presented below . replace_table_token_13_th the following table presents our same site operating results for our convenience store segment for the year ended december 31 , 2015 , as compared to the year ended december 31 , 2014 . the table includes amounts for locations that were company operated during the entirety of each of the periods presented . replace_table_token_14_th
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2,336 | emir has imposed new requirements on our european entities , including ( a ) reporting derivatives to trade repositories , ( b ) setting up enhanced risk management procedures for otc derivative transactions , ( c ) changes to our clearing account models and increased central counterparty margin requirements . reporting requirements and most risk mitigation procedures were set at the end of 2013. implementation of collateral obligations applicable to non-cleared otc transactions came into force during 2017. european securities and markets authority ( โ esma โ ) is continuing to evaluate and set clearing obligations for certain otc derivatives . intl fcstone ltd complies with the enacted provisions and will do so when pending emir provisions are finalized as relevant to its activities . in addition to the emir , european union financial market legislation markets in financial instruments directive ( โ mifid โ ) ii and markets in financial instruments regulation ( โ mifir โ ) took effect on january 3 , 2018. principal areas of impact related to these regulatory texts involve the emergence and oversight of organized trade facilities ( โ otf 's โ ) for trading otc non-equity products , client categorization , enhanced investor protection , conflicts of interest and execution policies , transparency obligations and extended transaction reporting requirements . we will continue to monitor all applicable regulatory developments . 29 recent events affecting the company during the week ended november 16 , 2018 , balances in approximately 300 accounts of the fcm division of our wholly owned subsidiary , intl fcstone financial , declined below required maintenance margin levels , primarily as a result of significant price fluctuations in the natural gas markets . all positions in these accounts , which were managed by optionsellers.com inc. ( โ optionsellers โ ) , an independent commodity trading advisor ( โ cta โ ) , were liquidated in accordance with the intl fcstone financial 's customer agreements and obligations under market regulation standards . a cta is by definition registered with the cftc and a member of , and subject to audit by , the nfa . optionsellers is registered under a cftc rule 4.7 exemption for โ qualified eligible persons โ , which requires the account holders authorizing optionsellers to act as their cta to meet or exceed certain minimum financial requirements . optionsellers , in its role as a cta , had been granted by each of its customers full discretionary authority to manage the trading in the customer accounts , while intl fcstone financial acted solely as the clearing firm in its role as the fcm , at all times meeting its obligations as the fcm to these accounts . intl fcstone financial 's customer agreements conform to nfa guidance , disclose the risks to which account-holders are exposed , hold account-holders liable for all losses in their accounts , and obligate the account holders to reimburse intl fcstone financial for any account deficits in their accounts . intl fcstone financial continues to pursue collection of these receivables in the ordinary course of business . intl fcstone financial intends both to enforce and to defend its rights aggressively , and to claim interest and costs of collection where applicable . intl fcstone financial 's standard customer agreements provide for arbitration of disputes between parties . as of december 10 , 2018 , the aggregate receivable from these customer accounts , net of collections and other allowable deductions thus far , is $ 31.3 million , with no individual account receivable exceeding $ 1.4 million . the exposure to losses from these customer accounts is not yet determinable , as collection efforts are in early stages , given the timing of events that lead to the receivable balances disclosed above . depending on future collections and an assessment to be made under u.s. gaap , any provisions for bad debts and actual losses ultimately may or may not be material to our financial results . we believe that these accounts receivable balances , along with possible exposure to losses from these customer accounts , will not impact our ability to comply with our ongoing liquidity , capital , and regulatory requirements . effects of the tax cuts and jobs act on december 22 , 2017 , the president of the united states ( โ u.s. โ ) signed and enacted into law h.r . 1 , the tax cuts and jobs act ( the โ tax reform โ ) . among the significant changes to the u.s. internal revenue code , the tax reform lowers the u.s. federal corporate income tax rate from 35 % to 21 % , effective january 1 , 2018. we will compute our income tax expense ( benefit ) for the september 30 , 2018 tax year using a u.s. statutory tax rate of 24.5 % . the 21 % u.s. statutory tax rate will apply to fiscal years ending september 30 , 2019 and thereafter . the tax reform also imposes a one-time mandatory repatriation transition tax on previously untaxed accumulated and current earnings and profits ( โ e & p โ ) of certain of our foreign subsidiaries . the sec staff issued staff accounting bulletin no . 118 ( โ sab 118 โ ) , which provides guidance on accounting for the tax effects of the tax reform . sab 118 provides a measurement period that should not extend beyond one year from the tax reform enactment date for companies to complete the accounting under accounting standards codification ( โ asc โ ) 740 - income taxes ( โ asc 740 โ ) . in accordance with sab 118 , a company must reflect the income tax effects of those aspects of the tax reform for which the accounting under asc 740 is complete . story_separator_special_tag asset management operating revenues declined 35 % to $ 7.7 million in fiscal 2018 , as the average assets under management declined 25 % . our securities segment operating revenues benefited from a $ 26.7 million increase in interest income , primarily in our domestic institutional fixed income and securities lending activities . overall interest income increased $ 53.6 million to $ 123.3 million in fiscal 2018 compared to prior year , primarily driven by the $ 26.7 million increase in our securities segment interest income . in addition , average client equity in the financial ag & energy and exchange-traded futures & options components of our commercial hedging and ces segments increased 8 % to $ 2.2 billion in fiscal 2018 compared to the prior year , which combined with an increase in short term interest rates resulted in an aggregate $ 21.1 million increase in interest income in these businesses . included in interest income in the prior year period was a $ 4.8 million unrealized loss on u.s. treasury notes held as part of our interest rate management strategy . finally , operating revenues for fiscal 2018 include gains of $ 5.5 million related to economic hedges in place against the effect of the devaluation of the argentina peso on our argentine operations , reported in the corporate unallocated segment . 34 see segment information below for additional information on activity in each of the segments . year ended september 30 , 2017 compared to year ended september 30 , 2016 operating revenues increased 17 % to $ 784.0 million in fiscal 2017 compared to $ 671.0 million in the prior year . operating revenue growth was driven by a $ 108.7 million increase in our ces segment , primarily as a result of incremental operating revenues from our recent acquisitions . in addition , global payments and commercial hedging operating revenues increased $ 16.0 million and $ 8.5 million , respectively . physical commodities segment operating revenues increased $ 8.2 million versus the prior year . offsetting this revenue growth was a $ 23.5 million decline in operating revenues within our securities segment . operating revenues for fiscal 2017 included a $ 5.9 million pre-tax unrealized loss on interest rate swaps and u.s. treasury notes held as part of our interest rate management strategy . the prior year period included a $ 0.7 million pre-tax unrealized loss on interest rate swaps and u.s. treasury notes held as part of our interest rate management strategy . on a segment basis , these unrealized losses were reported in the corporate unallocated segment , while the amortized earnings on these investments were included in the commercial hedging and ces segments . during fiscal 2017 , we liquidated our interest rate swap and u.s. treasury note positions , held as part of the strategy , due to scheduled maturities as well as the close-outs of profitable positions as we determined there was no longer a sufficient interest rate spread between short-term and medium term rates . operating revenues in our ces segment increased 72 % to $ 259.8 million in fiscal 2017 , primarily as a result of the acquisition of the sterne agee correspondent clearing and independent wealth management businesses at the beginning of the fourth quarter of fiscal 2016 , which added an incremental $ 75.3 million in operating revenues in fiscal 2018. also contributing to the revenue growth was the acquisition of icap plc 's london-based emea oil voice brokerage business , at the beginning of the first quarter of fiscal 2017 , which contributed $ 26.7 million to fiscal 2018 operating revenues . the exchange-traded futures & options business added $ 8.8 million in operating revenues primarily as a result of an increase in the average rate per contract , while the fx prime brokerage business declined $ 2.3 million , despite a 7 % increase in client volumes as spreads narrowed in this business . operating revenues in our global payments segment increased 22 % in fiscal 2017 to $ 89.2 million , as a result of a 46 % increase in the number of global payments made which was partially offset by a narrowing of spreads in this business due to an increase in volume of smaller transactions from financial institutions . operating revenues in commercial hedging increased 4 % in fiscal 2017 to $ 244.6 million , primarily driven by a $ 4.8 million increase in interest income . in addition , exchange-traded revenues increased $ 4.3 million , while otc revenues declined $ 1.5 million . an increase in agricultural and energy and renewable fuels revenues drove the increase in exchange-traded revenues . our physical commodity segment operating revenues increased 22 % to $ 44.8 million , as a result of a $ 6.0 million increase in physical ag & energy operating revenues , while precious metals added $ 2.2 million in operating revenues . operating revenues in our securities segment declined 13 % to $ 151.7 million in fiscal 2017 compared to the prior year . the debt capital markets and asset management businesses declined $ 11.5 and $ 6.3 million , respectively , as the prior year period reflected strong performance in our argentine operations in these businesses following the devaluation of the argentine peso in december 2015. investment banking , now included within debt capital markets , had a decline in operating revenues of $ 1.0 million due both to weaker results in argentina and management 's decision to exit our domestic investment banking business . in addition , equity capital markets operating revenues declined $ 5.7 million as a result of a narrowing of spreads due to lower market volatility . overall interest income increased $ 14.5 million to $ 69.7 million in fiscal 2017 compared to prior year , primarily driven a $ 6.4 million increase in debt capital markets interest income . in addition , average client equity in the financial ag & energy and exchange-traded
| - debt capital markets - physical ag & energy - fx prime brokerage - asset management - correspondent clearing - independent wealth management - derivative voice brokerage we report our operating segments based on services provided to clients . net contribution is one of the key measures used by management to assess the performance of each segment and for decisions regarding the allocation of our resources . net contribution is calculated as revenues less direct cost of sales , transaction-based clearing expenses , introducing broker commissions , interest expense and variable compensation . variable compensation paid to risk management consultants and traders generally represents a fixed percentage of an amount equal to revenues generated , and in some cases , revenues generated less transaction-based clearing expense and related charges , base salaries and an overhead allocation . 41 segment income is calculated as net contribution less non-variable direct expenses of the segment . these non-variable direct expenses include trader base compensation and benefits , operational charges , communication and data services , business development , professional fees , bad debt expense , trade errors and direct marketing expenses . total segment results the following table shows summary information concerning all of our business segments combined .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```- debt capital markets - physical ag & energy - fx prime brokerage - asset management - correspondent clearing - independent wealth management - derivative voice brokerage we report our operating segments based on services provided to clients . net contribution is one of the key measures used by management to assess the performance of each segment and for decisions regarding the allocation of our resources . net contribution is calculated as revenues less direct cost of sales , transaction-based clearing expenses , introducing broker commissions , interest expense and variable compensation . variable compensation paid to risk management consultants and traders generally represents a fixed percentage of an amount equal to revenues generated , and in some cases , revenues generated less transaction-based clearing expense and related charges , base salaries and an overhead allocation . 41 segment income is calculated as net contribution less non-variable direct expenses of the segment . these non-variable direct expenses include trader base compensation and benefits , operational charges , communication and data services , business development , professional fees , bad debt expense , trade errors and direct marketing expenses . total segment results the following table shows summary information concerning all of our business segments combined .
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Suspicious Activity Report : emir has imposed new requirements on our european entities , including ( a ) reporting derivatives to trade repositories , ( b ) setting up enhanced risk management procedures for otc derivative transactions , ( c ) changes to our clearing account models and increased central counterparty margin requirements . reporting requirements and most risk mitigation procedures were set at the end of 2013. implementation of collateral obligations applicable to non-cleared otc transactions came into force during 2017. european securities and markets authority ( โ esma โ ) is continuing to evaluate and set clearing obligations for certain otc derivatives . intl fcstone ltd complies with the enacted provisions and will do so when pending emir provisions are finalized as relevant to its activities . in addition to the emir , european union financial market legislation markets in financial instruments directive ( โ mifid โ ) ii and markets in financial instruments regulation ( โ mifir โ ) took effect on january 3 , 2018. principal areas of impact related to these regulatory texts involve the emergence and oversight of organized trade facilities ( โ otf 's โ ) for trading otc non-equity products , client categorization , enhanced investor protection , conflicts of interest and execution policies , transparency obligations and extended transaction reporting requirements . we will continue to monitor all applicable regulatory developments . 29 recent events affecting the company during the week ended november 16 , 2018 , balances in approximately 300 accounts of the fcm division of our wholly owned subsidiary , intl fcstone financial , declined below required maintenance margin levels , primarily as a result of significant price fluctuations in the natural gas markets . all positions in these accounts , which were managed by optionsellers.com inc. ( โ optionsellers โ ) , an independent commodity trading advisor ( โ cta โ ) , were liquidated in accordance with the intl fcstone financial 's customer agreements and obligations under market regulation standards . a cta is by definition registered with the cftc and a member of , and subject to audit by , the nfa . optionsellers is registered under a cftc rule 4.7 exemption for โ qualified eligible persons โ , which requires the account holders authorizing optionsellers to act as their cta to meet or exceed certain minimum financial requirements . optionsellers , in its role as a cta , had been granted by each of its customers full discretionary authority to manage the trading in the customer accounts , while intl fcstone financial acted solely as the clearing firm in its role as the fcm , at all times meeting its obligations as the fcm to these accounts . intl fcstone financial 's customer agreements conform to nfa guidance , disclose the risks to which account-holders are exposed , hold account-holders liable for all losses in their accounts , and obligate the account holders to reimburse intl fcstone financial for any account deficits in their accounts . intl fcstone financial continues to pursue collection of these receivables in the ordinary course of business . intl fcstone financial intends both to enforce and to defend its rights aggressively , and to claim interest and costs of collection where applicable . intl fcstone financial 's standard customer agreements provide for arbitration of disputes between parties . as of december 10 , 2018 , the aggregate receivable from these customer accounts , net of collections and other allowable deductions thus far , is $ 31.3 million , with no individual account receivable exceeding $ 1.4 million . the exposure to losses from these customer accounts is not yet determinable , as collection efforts are in early stages , given the timing of events that lead to the receivable balances disclosed above . depending on future collections and an assessment to be made under u.s. gaap , any provisions for bad debts and actual losses ultimately may or may not be material to our financial results . we believe that these accounts receivable balances , along with possible exposure to losses from these customer accounts , will not impact our ability to comply with our ongoing liquidity , capital , and regulatory requirements . effects of the tax cuts and jobs act on december 22 , 2017 , the president of the united states ( โ u.s. โ ) signed and enacted into law h.r . 1 , the tax cuts and jobs act ( the โ tax reform โ ) . among the significant changes to the u.s. internal revenue code , the tax reform lowers the u.s. federal corporate income tax rate from 35 % to 21 % , effective january 1 , 2018. we will compute our income tax expense ( benefit ) for the september 30 , 2018 tax year using a u.s. statutory tax rate of 24.5 % . the 21 % u.s. statutory tax rate will apply to fiscal years ending september 30 , 2019 and thereafter . the tax reform also imposes a one-time mandatory repatriation transition tax on previously untaxed accumulated and current earnings and profits ( โ e & p โ ) of certain of our foreign subsidiaries . the sec staff issued staff accounting bulletin no . 118 ( โ sab 118 โ ) , which provides guidance on accounting for the tax effects of the tax reform . sab 118 provides a measurement period that should not extend beyond one year from the tax reform enactment date for companies to complete the accounting under accounting standards codification ( โ asc โ ) 740 - income taxes ( โ asc 740 โ ) . in accordance with sab 118 , a company must reflect the income tax effects of those aspects of the tax reform for which the accounting under asc 740 is complete . story_separator_special_tag asset management operating revenues declined 35 % to $ 7.7 million in fiscal 2018 , as the average assets under management declined 25 % . our securities segment operating revenues benefited from a $ 26.7 million increase in interest income , primarily in our domestic institutional fixed income and securities lending activities . overall interest income increased $ 53.6 million to $ 123.3 million in fiscal 2018 compared to prior year , primarily driven by the $ 26.7 million increase in our securities segment interest income . in addition , average client equity in the financial ag & energy and exchange-traded futures & options components of our commercial hedging and ces segments increased 8 % to $ 2.2 billion in fiscal 2018 compared to the prior year , which combined with an increase in short term interest rates resulted in an aggregate $ 21.1 million increase in interest income in these businesses . included in interest income in the prior year period was a $ 4.8 million unrealized loss on u.s. treasury notes held as part of our interest rate management strategy . finally , operating revenues for fiscal 2018 include gains of $ 5.5 million related to economic hedges in place against the effect of the devaluation of the argentina peso on our argentine operations , reported in the corporate unallocated segment . 34 see segment information below for additional information on activity in each of the segments . year ended september 30 , 2017 compared to year ended september 30 , 2016 operating revenues increased 17 % to $ 784.0 million in fiscal 2017 compared to $ 671.0 million in the prior year . operating revenue growth was driven by a $ 108.7 million increase in our ces segment , primarily as a result of incremental operating revenues from our recent acquisitions . in addition , global payments and commercial hedging operating revenues increased $ 16.0 million and $ 8.5 million , respectively . physical commodities segment operating revenues increased $ 8.2 million versus the prior year . offsetting this revenue growth was a $ 23.5 million decline in operating revenues within our securities segment . operating revenues for fiscal 2017 included a $ 5.9 million pre-tax unrealized loss on interest rate swaps and u.s. treasury notes held as part of our interest rate management strategy . the prior year period included a $ 0.7 million pre-tax unrealized loss on interest rate swaps and u.s. treasury notes held as part of our interest rate management strategy . on a segment basis , these unrealized losses were reported in the corporate unallocated segment , while the amortized earnings on these investments were included in the commercial hedging and ces segments . during fiscal 2017 , we liquidated our interest rate swap and u.s. treasury note positions , held as part of the strategy , due to scheduled maturities as well as the close-outs of profitable positions as we determined there was no longer a sufficient interest rate spread between short-term and medium term rates . operating revenues in our ces segment increased 72 % to $ 259.8 million in fiscal 2017 , primarily as a result of the acquisition of the sterne agee correspondent clearing and independent wealth management businesses at the beginning of the fourth quarter of fiscal 2016 , which added an incremental $ 75.3 million in operating revenues in fiscal 2018. also contributing to the revenue growth was the acquisition of icap plc 's london-based emea oil voice brokerage business , at the beginning of the first quarter of fiscal 2017 , which contributed $ 26.7 million to fiscal 2018 operating revenues . the exchange-traded futures & options business added $ 8.8 million in operating revenues primarily as a result of an increase in the average rate per contract , while the fx prime brokerage business declined $ 2.3 million , despite a 7 % increase in client volumes as spreads narrowed in this business . operating revenues in our global payments segment increased 22 % in fiscal 2017 to $ 89.2 million , as a result of a 46 % increase in the number of global payments made which was partially offset by a narrowing of spreads in this business due to an increase in volume of smaller transactions from financial institutions . operating revenues in commercial hedging increased 4 % in fiscal 2017 to $ 244.6 million , primarily driven by a $ 4.8 million increase in interest income . in addition , exchange-traded revenues increased $ 4.3 million , while otc revenues declined $ 1.5 million . an increase in agricultural and energy and renewable fuels revenues drove the increase in exchange-traded revenues . our physical commodity segment operating revenues increased 22 % to $ 44.8 million , as a result of a $ 6.0 million increase in physical ag & energy operating revenues , while precious metals added $ 2.2 million in operating revenues . operating revenues in our securities segment declined 13 % to $ 151.7 million in fiscal 2017 compared to the prior year . the debt capital markets and asset management businesses declined $ 11.5 and $ 6.3 million , respectively , as the prior year period reflected strong performance in our argentine operations in these businesses following the devaluation of the argentine peso in december 2015. investment banking , now included within debt capital markets , had a decline in operating revenues of $ 1.0 million due both to weaker results in argentina and management 's decision to exit our domestic investment banking business . in addition , equity capital markets operating revenues declined $ 5.7 million as a result of a narrowing of spreads due to lower market volatility . overall interest income increased $ 14.5 million to $ 69.7 million in fiscal 2017 compared to prior year , primarily driven a $ 6.4 million increase in debt capital markets interest income . in addition , average client equity in the financial ag & energy and exchange-traded
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2,337 | after evaluating multiple product candidates using evolverai , we selected our lead programs because our analysis indicated these drugs may have utility in new therapeutic indices where there is substantial unmet medical needs and limited competition . by focusing on clinical candidates with relevant human data , we believe our approach will help us design more efficient clinical trials , thereby accelerating our product candidates ' time to market . we retain global development and commercialization rights to these two programs . 75 our clinical programs the following table summarizes our lead development programs : our strategy our goal is to become a leader in the field of neuroscience and immunoโoncology . the key elements to achieving this goal are to : ยท advance bxcl501 , a sublingual thin film formulation of dex , a selective ฮฑ 2a adrenergic receptor agonist , designed for acute treatment of agitation , to approval through an accelerated fda section 505 ( b ) ( 2 ) pathway . ยท neurological and psychiatric disorders . we believe that bxcl501 has the potential to become the standard of care for the acute treatment of agitation arising from diseases such as schizophrenia , bipolar disorder , senile dementia ( alzheimer 's type ) , and other indications . dex has been shown to significantly reduce agitation in elderly patients experiencing post surgical anestheticโinduced delirium who did not respond to treatment with haloperidol , a potent antipsychotic that is used to treat symptoms for schizophrenia . ยท additional indications . we also plan to expand into additional indications for acute treatment of agitation resulting from delirium , alcohol or opioid withdrawal , and postโtraumatic stress disorder , or ptsd , as well as explore the use of bxcl501 in patients who are claustrophobic and anxious awaiting an mri or other out-patient medical procedures . ยท advance bxcl701 into phase 2 trials to assess its potential to be the first approved therapy for tnepc and for the second line treatment of pancreatic cancer . ยท tnepc ( orphan segment of prostate cancer ) . bxcl701 was previously studied in multiple clinical trials and demonstrated single agent antiโtumor activity in melanoma , an immunoโsensitive tumor . in our preclinical studies , bxcl701 has demonstrated the ability to 76 synergistically increase the antiโtumor activity of checkpoint inhibitors . we believe the existing preclinical and clinical data for bxcl701 may significantly reduce our development time for this compound . the fda accepted our ind proposal to test bxcl701 in tnepc , and the trial opened to accrual in february 2019 . ยท pancreatic cancer . data indicates that fibroblast activation protein positive , or fap contribute to checkpoint inhibitor resistance , and immunosuppression more generally in pancreatic cancer . we believe provides a strong rationale for combining bxcl701 with a checkpoint inhibitor avelumab ( bavencio ) or nivolumab ( opdivo ) . furthermore we have shown strong synergy between bxcl 701 checkpoint inhibition and nktr 214 , a cd122 based agonist of il2 , in a pancreatic preclinical model . bxcl701 has been granted orphan drug designation by the fda for the treatment of pancreatic cancer . we believe the existing clinical and preclinical data for bxcl701 in pancreatic cancer may reduce our development time for this compound . ยท potential for accelerated clinical and regulatory approval . given that both indications represent high unmet medical needs with few treatment options , we intend to pursue breakthrough therapy designation and accelerated approval pathways for both indications . ยท additional indications . we believe bxcl701 is active at multiple stages of the cancer immunity cycle . as such , we believe bxcl701 offers a โ pipeline in a product โ platform given its potential application across other solid tumor types . we believe existing preclinical and clinical evidence support the combination of bxcl701 with checkpoint inhibitors , agents that stimulate of โ co-stimulate โ immune effoctor calles . moreover , agents that stimulate antibodyโdependent cellโmediated cytotoxicity , ( adcc ) or cell-based therapies such as chimeric antigen receptor tโcell ( carโt ) therapy , oncolytic viruses or therapeutic vaccines all represent potential combinations with synergistic benefit . ยท identify biomarkers to select patients who have the highest likelihood to respond to our product candidates . predicting optimal drug responses in patients requires the identification and validation of predictive biomarkers . we believe that our ability to identify patient subsets most likely to respond to our product candidates will increase the clinical benefit to patients and improve the probability of success of our clinical trials . the indications for our lead product candidate bxcl701 were chosen in part because they are known to overexpress dpp 8/9 and fap . our planned poc clinical trial of bxcl701 will examine biomarkers retrospectively related to its molecular and cellular targets to identify those that may correlate with clinical efficacy and increase our likelihood of success . ยท enhance our r & d pipeline by leveraging our therapeutic area expertise with evolverai to identify , develop and commercialize new product candidates in neuroscience and immunoโoncology . in addition to our leading clinical programs and our emerging and future pipeline , we intend to select our next clinical program during 2019. we have established translational and development expertise , which we believe will help us advance the present and future product candidates in these fields . we may also opportunistically inโlicense additional product candidates identified through our ai platform approach within our core areas of expertise . ยท maximize the commercial potential of our product candidates . we have worldwide development and commercialization rights to our bxcl501 , bxcl701 , bxcl502 and bxcl702 product candidates . story_separator_special_tag stock-based compensation expense from awards granted under the bioxcel plan is allocated to bti over the required service period over which those stock option awards vest and is based upon the percentage of time the award recipient spent working on our activities compared to bioxcel activities , which is the same basis used for allocation of salary costs . the bioxcel stock option awards are valued at fair value on the date of grant and that fair value is recognized over the requisite service period . the estimated fair value of these bioxcel stock option awards was determined using the black scholes option pricing model on the date of grant . stock based awards to non-employees are remeasured at fair value each financial reporting date until vesting is complete . significant judgment and estimates were used to estimate the fair value of these awards , as they are not publicly traded . our estimation of fair value of the awards considered recent transactions entered into by bioxcel , relevant industry and comparable public company data . since bioxcel is a non-public entity , the majority of the inputs used to estimate the fair value of the common stock option awards are considered level 3 due to their unobservable nature . each option award is subject to specified vesting schedules and requirements ( a mix of time-based , and corporate event-based , including financing events ) . compensation expense is charged to us by bioxcel over the required service period to earn the award which is expected to be up to four years , subject to the achievement of time and event-based vesting requirements . bioxcel therapeutics , inc. 2017 equity incentive plan our board of directors adopted the 2017 equity incentive plan , or the plan , on august 22 , 2017. the plan will expire on august 22 , 2027. the purpose of the plan is to attract and retain key personnel and to provide a means for directors , officers , managers , employees , consultants and advisors to acquire and maintain an interest in our company , which interest may be measured by reference to the value of its common stock . the company accounts for stock-based compensation in accordance with asc 718 , โ compensationโstock compensation , โ which requires the measurement and recognition of compensation expense based on estimated fair market values for all share-based awards made to employees and directors , including stock options . the company 's stock-based compensation plan was adopted and became effective in august 2017. prior to the company adopting its stock-based compensation plan the parent granted stock options to its employees . as a result , related stock-based compensation expense has been allocated to the company over the required service period over which these bioxcel stock option awards vest in the same manner salary costs of employees have been allocated to the bti business in the carve-out process . both bioxcel and the company 's stock option awards are valued at fair value on the date of grant and that fair value is recognized over the requisite service period . the estimated fair value of stock option awards was determined using the black-scholes option pricing model on the date of grant . significant judgment and estimates were used to estimate the fair value of these awards , as they were not publicly traded . stock awards granted by the company subsequent to the ipo are valued using market prices at the date of grant . stock-based awards to non-employees are re-measured at fair value each financial reporting date until performance is complete . the company adopted fasb asu 2016โ09 as of january 1 , 2018 and has elected to account for forfeitures as they occur , by reversing compensation cost when the award is forfeited . 85 the assumptions underlying these valuations represent management 's best estimates , which involve inherent uncertainties and the application of management judgment . as a result , if factors or expected outcomes change and we use significantly different assumptions or estimates , our stock-based compensation expense could be materially different . expenses accrued under contractual arrangements with third parties ; accrued clinical expenses as part of the process of preparing our financial statements , we are required to estimate our accrued expenses . this process involves reviewing open contracts and purchase orders , communicating with our applicable personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual cost . the majority of our service providers invoice us monthly in arrears for services performed . we make estimates of our accrued expenses as of each balance sheet date in our financial statements based on facts and circumstances known to us at that time . we periodically confirm the accuracy of our estimates with the service providers and make adjustments if necessary . we base our expenses related to clinical trials on our estimates of the services received and efforts expended pursuant to contracts with multiple research institutions and contract research organizations that conduct and manage clinical trials on our behalf . the financial terms of these agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . payments under some of these contracts depend on factors such as the successful enrollment of patients and the completion of clinical trial milestones . in accruing expenses , we estimate the time period over which services will be performed and the level of effort to be expended in each period , which is based on an established protocol specific to each clinical trial . if the actual timing of the performance of services or the level of effort varies from our estimate , we adjust the accrual accordingly . although we do not expect our estimates to be materially different from
| liquidity and capital resources as of december 31 , 2018 , we had cash and cash equivalents of $ 42.6 million , working capital of $ 38.5 million and stockholders ' equity of $ 38.9 million . net cash used in operating activities was $ 13.5 million and $ 2.2 million for the years ended december 31 , 2018 and 2017. we incurred losses of approximately $ 19.3 million and $ 4.5 million for the years ended december 31 , 2018 and 2017. we have not yet generated any revenues and we have not yet achieved profitability . we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need to generate significant product revenues to achieve profitability . on march 7 , 2018 , the company 's registration statement on form s-1 relating to its ipo was declared effective by the securities and exchange commission ( โ sec โ ) . the ipo closed on march 12 , 2018 , and the company issued and sold 5,454,545 common shares at a public offering price of $ 11.00 per share . gross proceeds totaled $ 60,000 and net proceeds totaled $ 54,102 after deducting underwriting discounts and commissions of $ 4,200 and other offering expenses of approximately $ 1,698. we believe that our existing cash and cash equivalents as of december 31 , 2018 , and a review of projected project timing , will enable us to fund our operating expenses and capital expenditure requirements for at least one year from the date of this annual report on form 10-k. our current cash and cash equivalents will be used primarily to fund our ongoing research and development efforts over the coming months . we will be required to expend significant funds in order to advance the development of bxcl501 , bxcl701 and our other product candidates .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources as of december 31 , 2018 , we had cash and cash equivalents of $ 42.6 million , working capital of $ 38.5 million and stockholders ' equity of $ 38.9 million . net cash used in operating activities was $ 13.5 million and $ 2.2 million for the years ended december 31 , 2018 and 2017. we incurred losses of approximately $ 19.3 million and $ 4.5 million for the years ended december 31 , 2018 and 2017. we have not yet generated any revenues and we have not yet achieved profitability . we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need to generate significant product revenues to achieve profitability . on march 7 , 2018 , the company 's registration statement on form s-1 relating to its ipo was declared effective by the securities and exchange commission ( โ sec โ ) . the ipo closed on march 12 , 2018 , and the company issued and sold 5,454,545 common shares at a public offering price of $ 11.00 per share . gross proceeds totaled $ 60,000 and net proceeds totaled $ 54,102 after deducting underwriting discounts and commissions of $ 4,200 and other offering expenses of approximately $ 1,698. we believe that our existing cash and cash equivalents as of december 31 , 2018 , and a review of projected project timing , will enable us to fund our operating expenses and capital expenditure requirements for at least one year from the date of this annual report on form 10-k. our current cash and cash equivalents will be used primarily to fund our ongoing research and development efforts over the coming months . we will be required to expend significant funds in order to advance the development of bxcl501 , bxcl701 and our other product candidates .
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Suspicious Activity Report : after evaluating multiple product candidates using evolverai , we selected our lead programs because our analysis indicated these drugs may have utility in new therapeutic indices where there is substantial unmet medical needs and limited competition . by focusing on clinical candidates with relevant human data , we believe our approach will help us design more efficient clinical trials , thereby accelerating our product candidates ' time to market . we retain global development and commercialization rights to these two programs . 75 our clinical programs the following table summarizes our lead development programs : our strategy our goal is to become a leader in the field of neuroscience and immunoโoncology . the key elements to achieving this goal are to : ยท advance bxcl501 , a sublingual thin film formulation of dex , a selective ฮฑ 2a adrenergic receptor agonist , designed for acute treatment of agitation , to approval through an accelerated fda section 505 ( b ) ( 2 ) pathway . ยท neurological and psychiatric disorders . we believe that bxcl501 has the potential to become the standard of care for the acute treatment of agitation arising from diseases such as schizophrenia , bipolar disorder , senile dementia ( alzheimer 's type ) , and other indications . dex has been shown to significantly reduce agitation in elderly patients experiencing post surgical anestheticโinduced delirium who did not respond to treatment with haloperidol , a potent antipsychotic that is used to treat symptoms for schizophrenia . ยท additional indications . we also plan to expand into additional indications for acute treatment of agitation resulting from delirium , alcohol or opioid withdrawal , and postโtraumatic stress disorder , or ptsd , as well as explore the use of bxcl501 in patients who are claustrophobic and anxious awaiting an mri or other out-patient medical procedures . ยท advance bxcl701 into phase 2 trials to assess its potential to be the first approved therapy for tnepc and for the second line treatment of pancreatic cancer . ยท tnepc ( orphan segment of prostate cancer ) . bxcl701 was previously studied in multiple clinical trials and demonstrated single agent antiโtumor activity in melanoma , an immunoโsensitive tumor . in our preclinical studies , bxcl701 has demonstrated the ability to 76 synergistically increase the antiโtumor activity of checkpoint inhibitors . we believe the existing preclinical and clinical data for bxcl701 may significantly reduce our development time for this compound . the fda accepted our ind proposal to test bxcl701 in tnepc , and the trial opened to accrual in february 2019 . ยท pancreatic cancer . data indicates that fibroblast activation protein positive , or fap contribute to checkpoint inhibitor resistance , and immunosuppression more generally in pancreatic cancer . we believe provides a strong rationale for combining bxcl701 with a checkpoint inhibitor avelumab ( bavencio ) or nivolumab ( opdivo ) . furthermore we have shown strong synergy between bxcl 701 checkpoint inhibition and nktr 214 , a cd122 based agonist of il2 , in a pancreatic preclinical model . bxcl701 has been granted orphan drug designation by the fda for the treatment of pancreatic cancer . we believe the existing clinical and preclinical data for bxcl701 in pancreatic cancer may reduce our development time for this compound . ยท potential for accelerated clinical and regulatory approval . given that both indications represent high unmet medical needs with few treatment options , we intend to pursue breakthrough therapy designation and accelerated approval pathways for both indications . ยท additional indications . we believe bxcl701 is active at multiple stages of the cancer immunity cycle . as such , we believe bxcl701 offers a โ pipeline in a product โ platform given its potential application across other solid tumor types . we believe existing preclinical and clinical evidence support the combination of bxcl701 with checkpoint inhibitors , agents that stimulate of โ co-stimulate โ immune effoctor calles . moreover , agents that stimulate antibodyโdependent cellโmediated cytotoxicity , ( adcc ) or cell-based therapies such as chimeric antigen receptor tโcell ( carโt ) therapy , oncolytic viruses or therapeutic vaccines all represent potential combinations with synergistic benefit . ยท identify biomarkers to select patients who have the highest likelihood to respond to our product candidates . predicting optimal drug responses in patients requires the identification and validation of predictive biomarkers . we believe that our ability to identify patient subsets most likely to respond to our product candidates will increase the clinical benefit to patients and improve the probability of success of our clinical trials . the indications for our lead product candidate bxcl701 were chosen in part because they are known to overexpress dpp 8/9 and fap . our planned poc clinical trial of bxcl701 will examine biomarkers retrospectively related to its molecular and cellular targets to identify those that may correlate with clinical efficacy and increase our likelihood of success . ยท enhance our r & d pipeline by leveraging our therapeutic area expertise with evolverai to identify , develop and commercialize new product candidates in neuroscience and immunoโoncology . in addition to our leading clinical programs and our emerging and future pipeline , we intend to select our next clinical program during 2019. we have established translational and development expertise , which we believe will help us advance the present and future product candidates in these fields . we may also opportunistically inโlicense additional product candidates identified through our ai platform approach within our core areas of expertise . ยท maximize the commercial potential of our product candidates . we have worldwide development and commercialization rights to our bxcl501 , bxcl701 , bxcl502 and bxcl702 product candidates . story_separator_special_tag stock-based compensation expense from awards granted under the bioxcel plan is allocated to bti over the required service period over which those stock option awards vest and is based upon the percentage of time the award recipient spent working on our activities compared to bioxcel activities , which is the same basis used for allocation of salary costs . the bioxcel stock option awards are valued at fair value on the date of grant and that fair value is recognized over the requisite service period . the estimated fair value of these bioxcel stock option awards was determined using the black scholes option pricing model on the date of grant . stock based awards to non-employees are remeasured at fair value each financial reporting date until vesting is complete . significant judgment and estimates were used to estimate the fair value of these awards , as they are not publicly traded . our estimation of fair value of the awards considered recent transactions entered into by bioxcel , relevant industry and comparable public company data . since bioxcel is a non-public entity , the majority of the inputs used to estimate the fair value of the common stock option awards are considered level 3 due to their unobservable nature . each option award is subject to specified vesting schedules and requirements ( a mix of time-based , and corporate event-based , including financing events ) . compensation expense is charged to us by bioxcel over the required service period to earn the award which is expected to be up to four years , subject to the achievement of time and event-based vesting requirements . bioxcel therapeutics , inc. 2017 equity incentive plan our board of directors adopted the 2017 equity incentive plan , or the plan , on august 22 , 2017. the plan will expire on august 22 , 2027. the purpose of the plan is to attract and retain key personnel and to provide a means for directors , officers , managers , employees , consultants and advisors to acquire and maintain an interest in our company , which interest may be measured by reference to the value of its common stock . the company accounts for stock-based compensation in accordance with asc 718 , โ compensationโstock compensation , โ which requires the measurement and recognition of compensation expense based on estimated fair market values for all share-based awards made to employees and directors , including stock options . the company 's stock-based compensation plan was adopted and became effective in august 2017. prior to the company adopting its stock-based compensation plan the parent granted stock options to its employees . as a result , related stock-based compensation expense has been allocated to the company over the required service period over which these bioxcel stock option awards vest in the same manner salary costs of employees have been allocated to the bti business in the carve-out process . both bioxcel and the company 's stock option awards are valued at fair value on the date of grant and that fair value is recognized over the requisite service period . the estimated fair value of stock option awards was determined using the black-scholes option pricing model on the date of grant . significant judgment and estimates were used to estimate the fair value of these awards , as they were not publicly traded . stock awards granted by the company subsequent to the ipo are valued using market prices at the date of grant . stock-based awards to non-employees are re-measured at fair value each financial reporting date until performance is complete . the company adopted fasb asu 2016โ09 as of january 1 , 2018 and has elected to account for forfeitures as they occur , by reversing compensation cost when the award is forfeited . 85 the assumptions underlying these valuations represent management 's best estimates , which involve inherent uncertainties and the application of management judgment . as a result , if factors or expected outcomes change and we use significantly different assumptions or estimates , our stock-based compensation expense could be materially different . expenses accrued under contractual arrangements with third parties ; accrued clinical expenses as part of the process of preparing our financial statements , we are required to estimate our accrued expenses . this process involves reviewing open contracts and purchase orders , communicating with our applicable personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual cost . the majority of our service providers invoice us monthly in arrears for services performed . we make estimates of our accrued expenses as of each balance sheet date in our financial statements based on facts and circumstances known to us at that time . we periodically confirm the accuracy of our estimates with the service providers and make adjustments if necessary . we base our expenses related to clinical trials on our estimates of the services received and efforts expended pursuant to contracts with multiple research institutions and contract research organizations that conduct and manage clinical trials on our behalf . the financial terms of these agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . payments under some of these contracts depend on factors such as the successful enrollment of patients and the completion of clinical trial milestones . in accruing expenses , we estimate the time period over which services will be performed and the level of effort to be expended in each period , which is based on an established protocol specific to each clinical trial . if the actual timing of the performance of services or the level of effort varies from our estimate , we adjust the accrual accordingly . although we do not expect our estimates to be materially different from
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2,338 | we recognize an impairment loss when a debt investment 's value declines below cost , adjusted for accretion , amortization and previous other-than-temporary impairments , and it is determined that the decline is other-than-temporary . debt investments : we assess whether we intend to sell , or it is more likely than not that we will be required to sell , a fixed maturity investment before recovery of its amortized cost basis less any current period credit losses . for fixed maturity investments that are considered other-than-temporarily impaired and that we do not intend to sell and will not be required to sell , we separate the amount of the impairment into the amount that is credit related ( credit loss component ) and the amount due to all other factors . the credit loss component is recognized in earnings and is the difference between the investment 's amortized cost basis and the present value of its expected future cash flows . the remaining difference between the investment 's fair value and the present value of future expected cash flows is recognized in other comprehensive income . equity investments : on january 1 , 2018 , we adopted asu 2016-01 , โ recognition and measurement of financial assets and financial liabilities โ . asu 2016-01 requires equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income each reporting period . as a result of the new standard , equity securities with readily determinable fair values are no longer required to be evaluated for other-than-temporary-impairment . fair values of financial instruments . accounting standards codification ( โ asc โ ) 820 defines fair value , establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements . asc 820 , among other things , requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value . in addition , asc 820 precludes the use of block discounts when measuring the fair value of instruments traded in an active market , which were previously applied to large holdings of publicly traded equity securities . we determine the fair value of our financial instruments based on the fair value hierarchy established in asc 820. in accordance with asc 820 , we utilize the following fair value hierarchy : โ level 1 : quoted prices in active markets for identical assets ; โ level 2 : inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets , inputs of identical assets for less active markets , and inputs that are observable for the asset or liability , either directly or indirectly , for substantially the full term of the instrument ; and โ level 3 : inputs to the valuation methodology that are unobservable for the asset or liability . this hierarchy requires the use of observable market data when available . under asc 820 , we determine fair value based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date . it is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements , in accordance with the fair value hierarchy described above . fair value measurements for assets and liabilities where there exists limited or no observable market data are calculated based upon our pricing policy , the economic and competitive environment , 35 โ the characteristics of the asset or liability and other factors as appropriate . these estimated fair values may not be realized upon actual sale or immediate settlement of the asset or liability . where quoted prices are available on active exchanges for identical instruments , investment securities are classified within level 1 of the valuation hierarchy . level 1 investment securities include common stock , preferred stock and the equity warrant classified as other investments . level 2 investment securities include corporate bonds , collateralized corporate bank loans , municipal bonds , u.s. treasury securities , other obligations of the u.s. government and mortgage-backed securities for which quoted prices are not available on active exchanges for identical instruments . we use a third party pricing service to determine fair values for each level 2 investment security in all asset classes . since quoted prices in active markets for identical assets are not available , these prices are determined using observable market information such as quotes from less active markets and or quoted prices of securities with similar characteristics , among other things . we have reviewed the processes used by the pricing service and have determined that they result in fair values consistent with the requirements of asc 820 for level 2 investment securities . we have not adjusted any prices received from third-party pricing sources . in cases where there is limited activity or less transparency around inputs to the valuation , investment securities are classified within level 3 of the valuation hierarchy . level 3 investments are valued based on the best available data in order to approximate fair value . this data may be internally developed and consider risk premiums that a market participant would require . investment securities classified within level 3 include other less liquid investment securities . deferred policy acquisition costs . policy acquisition costs ( mainly commission , premium taxes , underwriting and marketing expenses and ceding commissions ) that vary with and are primarily related to the successful acquisition of new and renewal insurance contracts are deferred and charged to operations over periods in which the related premiums are earned . ceding commissions from reinsurers , which include expense allowances , are deferred and recognized over the period premiums are earned for the underlying policies reinsured . story_separator_special_tag our specialty commercial segment reported a $ 54.5 million increase in losses and lae which consisted of ( a ) a $ 22.5 million increase in losses and lae in our commercial auto business unit due largely to $ 47.4 million of unfavorable prior year net loss reserve development recognized during the year ended december 31 , 2019 as compared to $ 18.1 million of unfavorable prior year net loss reserve development during the same period of 2018 , partially offset by lower current accident year loss trends and lower net earned premiums , ( b ) a $ 22.9 million increase in losses and lae in our e & s casualty business unit due primarily to $ 13.6 million of unfavorable prior year net loss reserve development during the year ended december 31 , 2019 as compared to $ 5.2 million of favorable prior year net loss reserve development during the same period of 2018 , as well as higher net earned premiums , ( c ) a $ 1.0 million decrease in losses and lae in our e & s property business unit due primarily to $ 0.3 million of net favorable prior year loss reserve development during the year ended december 31 , 2019 as compared to $ 0.8 million of unfavorable prior year net loss reserve development during the same period of 2018 , ( d ) a $ 9.0 million increase in losses and lae attributable to our professional liability business unit due primarily to increased net premiums earned , partially offset by $ 0.7 million of net favorable prior loss reserve development during the year ended december 31 , 2019 as compared to $ 1.5 million of net unfavorable prior year loss reserve development during the same period of 2018 as well as lower current accident year loss trends , and ( e ) a $ 1.1 million increase in losses and lae in our aerospace & programs business unit due primarily to higher current accident year loss trends as well as higher net premiums earned , partially offset by $ 0.1 million of net unfavorable prior year loss reserve development during the year ended december 31 , 2019 as compared to $ 1.3 million of net unfavorable prior year loss reserve development during the same period of 2018. the specialty commercial segment reported a net loss ratio of 85.0 % for the year ended december 31 , 2019 as compared to 75.2 % for the same period during 2018. the gross loss ratio before reinsurance was 75.9 % for the year ended december 31 , 2019 as compared to 73.4 % for the same period in 2018. the increase in the gross and net loss ratios was primarily due to higher unfavorable prior year net loss reserve development , partially offset by lower catastrophe losses . the specialty commercial segment reported $ 60.1 million of unfavorable prior year net loss reserve development for the year ended december 31 , 2019 as compared to unfavorable prior year net loss reserve development of $ 16.5 million for the same period of 2018. during the year ended december 31 , 2019 the specialty commercial segment reported $ 2.3 million of net catastrophe losses as compared to $ 6.0 million during the same period of 2018. the specialty commercial segment reported a net expense ratio of 21.8 % for the year ended december 31 , 2019 as compared to 22.6 % for the same period of 2018. the decrease in the expense ratio was due predominately to increased ceding commissions in our commercial auto business unit . standard commercial segment . gross premiums written for the standard commercial segment were $ 92.6 million for the year ended december 31 , 2019 , which was $ 6.5 million , or 8 % , more than the $ 86.1 million reported for the same period in 2018. the increase in gross premiums written was due to higher premium production in our commercial accounts business unit . net premiums written were $ 62.9 million for the year ended december 31 , 2019 as compared to $ 69.2 million for the same period in 2018. the decrease in net premiums written was due to increased ceded premium under a quota share reinsurance agreement entered into during the fourth quarter of 2018 on the casualty lines of business produced by the commercial accounts business unit . 40 โ total revenue for the standard commercial segment of $ 68.2 million for the year ended december 31 , 2019 , was $ 8.4 million , or 11 % , less than the $ 76.6 million reported for the same period in 2018. this decrease in total revenue was due to lower net premiums earned of $ 8.3 million , due primarily to the quota share reinsurance agreement entered into during the fourth quarter of 2018 , and lower commission and fees of $ 0.2 million , partially offset by higher net investment income of $ 0.1 million during the year ended december 31 , 2019 as compared to the same period during 2018. our standard commercial segment reported a pre-tax loss of $ 0.8 million for the year ended december 31 , 2019 as compared to pre-tax income of $ 13.1 million for the same period of 2018. the pre-tax loss was the result of higher losses and lae of $ 10.6 million and the lower revenue discussed above , partially offset by lower operating expenses of $ 5.1 million . reduced operating expenses were largely the result of lower production related expenses of $ 5.2 million due to increased ceding commission primarily from the reinsurance contract entered into during the fourth quarter of 2018 and lower salary and related expenses of $ 0.3 million , partially offset by higher professional service fees and other general expenses of $ 0.4 million . the standard commercial segment reported a net loss ratio of 78.2 % for the year ended december 31 , 2019 as compared
| liquidity and capital resources sources and uses of funds our sources of funds are from insurance-related operations , financing activities and investing activities . major sources of funds from operations include premiums collected ( net of policy cancellations and premiums ceded ) , commissions and processing and service fees . as a holding company , hallmark is dependent on dividend payments and management fees from its subsidiaries to meet operating expenses and debt obligations . as of december 31 , 2019 , we had $ 19.0 million in unrestricted cash and cash equivalents , including $ 12.5 million held in premium and claim trust accounts , as well as $ 1.0 million in debt securities , at the holding company and our non-insurance subsidiaries . as of that date , our insurance subsidiaries held $ 34.3 million of unrestricted cash and cash equivalents as well as $ 573.3 million in debt securities with an average modified duration of 1.5 years . accordingly , we do not anticipate selling long-term debt instruments to meet any liquidity needs . ahic and tbic , domiciled in texas , are limited in the payment of dividends to their stockholders in any 12-month period , without the prior written consent of the texas department of insurance , to the greater of statutory net income for the prior calendar year or 10 % of statutory policyholders ' surplus as of the prior year end . hic and hnic , both domiciled in arizona , are limited in the payment of dividends to the lesser of 10 % of prior year policyholders ' surplus or prior year 's net income , without prior written approval from the arizona department of insurance . hsic , domiciled in oklahoma , is limited in the payment of dividends to the greater of 10 % of prior year policyholders ' surplus or prior year 's statutory net income , not including realized capital gains , without prior written approval from the oklahoma insurance department . for all our insurance companies , dividends may only be paid from unassigned surplus funds .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources sources and uses of funds our sources of funds are from insurance-related operations , financing activities and investing activities . major sources of funds from operations include premiums collected ( net of policy cancellations and premiums ceded ) , commissions and processing and service fees . as a holding company , hallmark is dependent on dividend payments and management fees from its subsidiaries to meet operating expenses and debt obligations . as of december 31 , 2019 , we had $ 19.0 million in unrestricted cash and cash equivalents , including $ 12.5 million held in premium and claim trust accounts , as well as $ 1.0 million in debt securities , at the holding company and our non-insurance subsidiaries . as of that date , our insurance subsidiaries held $ 34.3 million of unrestricted cash and cash equivalents as well as $ 573.3 million in debt securities with an average modified duration of 1.5 years . accordingly , we do not anticipate selling long-term debt instruments to meet any liquidity needs . ahic and tbic , domiciled in texas , are limited in the payment of dividends to their stockholders in any 12-month period , without the prior written consent of the texas department of insurance , to the greater of statutory net income for the prior calendar year or 10 % of statutory policyholders ' surplus as of the prior year end . hic and hnic , both domiciled in arizona , are limited in the payment of dividends to the lesser of 10 % of prior year policyholders ' surplus or prior year 's net income , without prior written approval from the arizona department of insurance . hsic , domiciled in oklahoma , is limited in the payment of dividends to the greater of 10 % of prior year policyholders ' surplus or prior year 's statutory net income , not including realized capital gains , without prior written approval from the oklahoma insurance department . for all our insurance companies , dividends may only be paid from unassigned surplus funds .
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Suspicious Activity Report : we recognize an impairment loss when a debt investment 's value declines below cost , adjusted for accretion , amortization and previous other-than-temporary impairments , and it is determined that the decline is other-than-temporary . debt investments : we assess whether we intend to sell , or it is more likely than not that we will be required to sell , a fixed maturity investment before recovery of its amortized cost basis less any current period credit losses . for fixed maturity investments that are considered other-than-temporarily impaired and that we do not intend to sell and will not be required to sell , we separate the amount of the impairment into the amount that is credit related ( credit loss component ) and the amount due to all other factors . the credit loss component is recognized in earnings and is the difference between the investment 's amortized cost basis and the present value of its expected future cash flows . the remaining difference between the investment 's fair value and the present value of future expected cash flows is recognized in other comprehensive income . equity investments : on january 1 , 2018 , we adopted asu 2016-01 , โ recognition and measurement of financial assets and financial liabilities โ . asu 2016-01 requires equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income each reporting period . as a result of the new standard , equity securities with readily determinable fair values are no longer required to be evaluated for other-than-temporary-impairment . fair values of financial instruments . accounting standards codification ( โ asc โ ) 820 defines fair value , establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements . asc 820 , among other things , requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value . in addition , asc 820 precludes the use of block discounts when measuring the fair value of instruments traded in an active market , which were previously applied to large holdings of publicly traded equity securities . we determine the fair value of our financial instruments based on the fair value hierarchy established in asc 820. in accordance with asc 820 , we utilize the following fair value hierarchy : โ level 1 : quoted prices in active markets for identical assets ; โ level 2 : inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets , inputs of identical assets for less active markets , and inputs that are observable for the asset or liability , either directly or indirectly , for substantially the full term of the instrument ; and โ level 3 : inputs to the valuation methodology that are unobservable for the asset or liability . this hierarchy requires the use of observable market data when available . under asc 820 , we determine fair value based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date . it is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements , in accordance with the fair value hierarchy described above . fair value measurements for assets and liabilities where there exists limited or no observable market data are calculated based upon our pricing policy , the economic and competitive environment , 35 โ the characteristics of the asset or liability and other factors as appropriate . these estimated fair values may not be realized upon actual sale or immediate settlement of the asset or liability . where quoted prices are available on active exchanges for identical instruments , investment securities are classified within level 1 of the valuation hierarchy . level 1 investment securities include common stock , preferred stock and the equity warrant classified as other investments . level 2 investment securities include corporate bonds , collateralized corporate bank loans , municipal bonds , u.s. treasury securities , other obligations of the u.s. government and mortgage-backed securities for which quoted prices are not available on active exchanges for identical instruments . we use a third party pricing service to determine fair values for each level 2 investment security in all asset classes . since quoted prices in active markets for identical assets are not available , these prices are determined using observable market information such as quotes from less active markets and or quoted prices of securities with similar characteristics , among other things . we have reviewed the processes used by the pricing service and have determined that they result in fair values consistent with the requirements of asc 820 for level 2 investment securities . we have not adjusted any prices received from third-party pricing sources . in cases where there is limited activity or less transparency around inputs to the valuation , investment securities are classified within level 3 of the valuation hierarchy . level 3 investments are valued based on the best available data in order to approximate fair value . this data may be internally developed and consider risk premiums that a market participant would require . investment securities classified within level 3 include other less liquid investment securities . deferred policy acquisition costs . policy acquisition costs ( mainly commission , premium taxes , underwriting and marketing expenses and ceding commissions ) that vary with and are primarily related to the successful acquisition of new and renewal insurance contracts are deferred and charged to operations over periods in which the related premiums are earned . ceding commissions from reinsurers , which include expense allowances , are deferred and recognized over the period premiums are earned for the underlying policies reinsured . story_separator_special_tag our specialty commercial segment reported a $ 54.5 million increase in losses and lae which consisted of ( a ) a $ 22.5 million increase in losses and lae in our commercial auto business unit due largely to $ 47.4 million of unfavorable prior year net loss reserve development recognized during the year ended december 31 , 2019 as compared to $ 18.1 million of unfavorable prior year net loss reserve development during the same period of 2018 , partially offset by lower current accident year loss trends and lower net earned premiums , ( b ) a $ 22.9 million increase in losses and lae in our e & s casualty business unit due primarily to $ 13.6 million of unfavorable prior year net loss reserve development during the year ended december 31 , 2019 as compared to $ 5.2 million of favorable prior year net loss reserve development during the same period of 2018 , as well as higher net earned premiums , ( c ) a $ 1.0 million decrease in losses and lae in our e & s property business unit due primarily to $ 0.3 million of net favorable prior year loss reserve development during the year ended december 31 , 2019 as compared to $ 0.8 million of unfavorable prior year net loss reserve development during the same period of 2018 , ( d ) a $ 9.0 million increase in losses and lae attributable to our professional liability business unit due primarily to increased net premiums earned , partially offset by $ 0.7 million of net favorable prior loss reserve development during the year ended december 31 , 2019 as compared to $ 1.5 million of net unfavorable prior year loss reserve development during the same period of 2018 as well as lower current accident year loss trends , and ( e ) a $ 1.1 million increase in losses and lae in our aerospace & programs business unit due primarily to higher current accident year loss trends as well as higher net premiums earned , partially offset by $ 0.1 million of net unfavorable prior year loss reserve development during the year ended december 31 , 2019 as compared to $ 1.3 million of net unfavorable prior year loss reserve development during the same period of 2018. the specialty commercial segment reported a net loss ratio of 85.0 % for the year ended december 31 , 2019 as compared to 75.2 % for the same period during 2018. the gross loss ratio before reinsurance was 75.9 % for the year ended december 31 , 2019 as compared to 73.4 % for the same period in 2018. the increase in the gross and net loss ratios was primarily due to higher unfavorable prior year net loss reserve development , partially offset by lower catastrophe losses . the specialty commercial segment reported $ 60.1 million of unfavorable prior year net loss reserve development for the year ended december 31 , 2019 as compared to unfavorable prior year net loss reserve development of $ 16.5 million for the same period of 2018. during the year ended december 31 , 2019 the specialty commercial segment reported $ 2.3 million of net catastrophe losses as compared to $ 6.0 million during the same period of 2018. the specialty commercial segment reported a net expense ratio of 21.8 % for the year ended december 31 , 2019 as compared to 22.6 % for the same period of 2018. the decrease in the expense ratio was due predominately to increased ceding commissions in our commercial auto business unit . standard commercial segment . gross premiums written for the standard commercial segment were $ 92.6 million for the year ended december 31 , 2019 , which was $ 6.5 million , or 8 % , more than the $ 86.1 million reported for the same period in 2018. the increase in gross premiums written was due to higher premium production in our commercial accounts business unit . net premiums written were $ 62.9 million for the year ended december 31 , 2019 as compared to $ 69.2 million for the same period in 2018. the decrease in net premiums written was due to increased ceded premium under a quota share reinsurance agreement entered into during the fourth quarter of 2018 on the casualty lines of business produced by the commercial accounts business unit . 40 โ total revenue for the standard commercial segment of $ 68.2 million for the year ended december 31 , 2019 , was $ 8.4 million , or 11 % , less than the $ 76.6 million reported for the same period in 2018. this decrease in total revenue was due to lower net premiums earned of $ 8.3 million , due primarily to the quota share reinsurance agreement entered into during the fourth quarter of 2018 , and lower commission and fees of $ 0.2 million , partially offset by higher net investment income of $ 0.1 million during the year ended december 31 , 2019 as compared to the same period during 2018. our standard commercial segment reported a pre-tax loss of $ 0.8 million for the year ended december 31 , 2019 as compared to pre-tax income of $ 13.1 million for the same period of 2018. the pre-tax loss was the result of higher losses and lae of $ 10.6 million and the lower revenue discussed above , partially offset by lower operating expenses of $ 5.1 million . reduced operating expenses were largely the result of lower production related expenses of $ 5.2 million due to increased ceding commission primarily from the reinsurance contract entered into during the fourth quarter of 2018 and lower salary and related expenses of $ 0.3 million , partially offset by higher professional service fees and other general expenses of $ 0.4 million . the standard commercial segment reported a net loss ratio of 78.2 % for the year ended december 31 , 2019 as compared
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2,339 | we believe this because the united states grew to be the world 's largest producer of oil during the second quarter of 2015 , and the increase in oil production was due to the growth of oil-directed drilling in shale formations . these wells produce a large amount of oil immediately following their completion , but typically experience large production declines within two years . therefore , the declining production of these wells , and the rapid decline in drilling of new wells of this type beginning in 2015 are the most likely initial catalysts for improving industry conditions . customer activities directed towards natural gas drilling and production have been weak for several years , with the u.s. domestic natural gas rig count during the first quarter of 2016 falling to the lowest level ever recorded . we believe that customer activities directed towards drilling for natural gas have been weak because of the high production of shale-directed natural gas wells , the high amount of natural gas production associated with oil-directed shale wells in the u.s. domestic market , relatively constant consumption of natural gas in the united states , and the fact that natural gas has not historically been exported from the united states to other markets in which demand and prices are higher . the price of natural gas continued its decline during 2015 and the first quarter of 2016. early in the first quarter of 2016 , the price of natural gas had fallen to approximately $ 2.00 per mcf , its lowest level since the second quarter of 1998 . 17 rpc monitors the number of horizontal and directional wells drilled in the u.s. domestic market , because this type of well is more service-intensive than a vertical oil or gas well , thus requiring more of the company 's services provided for a longer period of time . during 2015 , the average number of horizontal and directional wells drilled in the united states decreased by approximately 43 percent , and was 86 percent of total wells drilled during the year . during the first part of 2016 , the percentage of horizontal and directional wells drilled as a percentage of total wells rose to approximately 88 percent . while the increase in horizontal and directional drilling as a percentage of total drilling is favorable , the absolute declines in drilling directed towards all types of wells makes this trend significantly less meaningful . we also monitor the u.s. domestic well count , which is a measure of wells drilled by the existing drilling rig fleet . we believe that the well count is an important measure of our potential activity levels because it reflects changes in rig efficiencies . during 2015 , the total u.s. domestic well count decreased by approximately 50 percent . in the markets in which rpc has operational locations , the well count decreased by approximately 47 percent . pricing for our services declined significantly during 2015 , as drilling and completion activities declined , creating a significant oversupply of service capacity . this impact was partially offset by greater service intensity within many of the services provided by rpc 's pressure pumping and downhole motors and tools service lines , among others . during previous years , a number of our customers entered into contractual relationships with us to provide services to support their completion programs . all of these arrangements expired during 2014. we did not enter into any new contractual arrangements during 2015 , nor do we expect to enter into any such contractual arrangements in 2016. during 2015 the company decreased our purchases of revenue-producing equipment and temporarily suspended the quarterly dividend to common stockholders . cash flows from operating activities as well as borrowings under our revolving credit facility have been sufficient to fund the company 's lower capital expenditures which decreased to $ 167.4 million in 2015 compared to $ 371.5 million in 2014. the company has a syndicated revolving credit facility in order to maintain sufficient liquidity to fund its capital expenditure and other funding requirements . revenues during 2015 totaled $ 1.3 billion , a decrease of 45.9 percent compared to 2014 due primarily to lower activity levels and pricing for our services . cost of revenues decreased $ 506.9 million in 2015 compared to the prior year due to lower costs resulting from lower activity levels , reduced personnel headcount and incentive compensation , and price reductions from suppliers , partially offset by the impact of increasing service intensity . as a percentage of revenue , cost of revenues increased due to competitive pricing for our services and inefficiencies resulting from lower activity levels . selling , general and administrative expenses as a percentage of revenues increased to 12.4 percent of revenues in 2015 compared to 8.4 percent of revenues in 2014 . ( loss ) income before income taxes decreased to a loss of $ 153.0 million in 2015 compared to income of $ 399.4 million in the prior year . diluted ( loss ) earnings per share were $ ( 0.47 ) in 2015 compared to $ 1.14 in the prior year . cash flows from operating activities increased to $ 473.8 million in 2015 compared to $ 322.8 million in 2014 primarily due to reductions in working capital requirements coupled with lower earnings . as of december 31 , 2015 , there were no outstanding borrowings under our credit facility , a decrease from $ 224.5 million at december 31 , 2014. outlook drilling activity in the u.s. domestic oilfields , as measured by the rotary drilling rig count , reached a recent cyclical peak of 1,931 during the third quarter of 2014. between the third quarter of 2014 and early in the first quarter of 2016 , the drilling rig count has fallen by approximately 73 percent . story_separator_special_tag income tax provision . the income tax provision was $ 154.2 million in 2014 compared to $ 109.4 million in 2013. this increase was due to higher income before taxes partially offset by a decrease in the effective tax rate to 38.6 percent in 2014 compared to 39.6 percent in 2013. net income and diluted earnings per share . net income was $ 245.2 million in 2014 , or $ 1.14 per diluted share , compared to net income of $ 166.9 million , or $ 0.77 per diluted share in 2013. this increase was due to higher profitability as average shares outstanding was essentially unchanged . story_separator_special_tag 0 `` > cash requirements capital expenditures were $ 167.4 million in 2015 , and we currently expect capital expenditures to be approximately $ 60 million in 2016. we expect that a majority of these expenditures in 2016 will be directed towards capitalized equipment maintenance . the remaining capital expenditures will be directed towards the purchase of revenue-producing equipment . the actual amount of expenditures will depend primarily on equipment maintenance requirements , expansion opportunities , and equipment delivery schedules . the company 's retirement income plan , a multiple employer trusteed defined benefit pension plan , provides monthly benefits upon retirement at age 65 to eligible employees . during 2015 , the company contributed $ 0.9 million to the pension plan . the company expects that additional contributions to the defined benefit pension plan of approximately $ 0.9 million will be required in 2016 to achieve the company 's funding objective . the company has a stock buyback program initially adopted in 1998 that authorizes the repurchase of up to 26,578,125 shares . on june 5 , 2013 , the board of directors authorized an additional 5,000,000 shares for repurchase under this program . there were no shares purchased on the open market by the company during 2015 , and 2,050,154 shares remain available to be repurchased under the current authorization as of december 31 , 2015. the company may repurchase outstanding common shares periodically based on market conditions and our capital allocation strategies considering restrictions under our credit facility . the stock buyback program does not have a predetermined expiration date . on july 28 , 2015 , the board of directors voted to temporarily suspend rpc 's quarterly dividend to common stockholders . the company expects to resume cash dividends to common stockholders in the future , subject to the earnings and financial condition of the company and other relevant factors . 23 contractual obligations the company 's obligations and commitments that require future payments include our credit facility , certain non-cancelable operating leases , purchase obligations and other long-term liabilities . the following table summarizes the company 's significant contractual obligations as of december 31 , 2015 : replace_table_token_5_th ( 1 ) operating leases include agreements for various office locations , office equipment , and certain operating equipment . ( 2 ) includes agreements to purchase raw materials , goods or services that have been approved and that specify all significant terms ( pricing , quantity , and timing ) . as part of the normal course of business the company occasionally enters into purchase commitments to manage its various operating needs . ( 3 ) includes expected cash payments for long-term liabilities reflected on the balance sheet where the timing of the payments are known . these amounts include incentive compensation . these amounts exclude pension obligations with uncertain funding requirements and deferred compensation liabilities . fair value measurements the company 's assets and liabilities measured at fair value are classified in the fair value hierarchy ( level 1 , 2 or 3 ) based on the inputs used for valuation . assets and liabilities that are traded on an exchange with a quoted price are classified as level 1. assets and liabilities that are valued using significant observable inputs in addition to quoted market prices are classified as level 2. the company currently has no assets or liabilities measured on a recurring basis that are valued using unobservable inputs and therefore no assets or liabilities measured on a recurring basis are classified as level 3. for defined benefit plan assets classified as level 3 , the values are computed using inputs such as cost , discounted future cash flows , independent appraisals and market based comparable data or on net asset values calculated by the fund or when not publicly available . inflation the company purchases its equipment and materials from suppliers who provide competitive prices , and employs skilled workers from competitive labor markets . if inflation in the general economy increases , the company 's costs for equipment , materials and labor could increase as well . also , increases in activity in the domestic oilfield can cause upward wage pressures in the labor markets from which it hires employees as well as increases in the costs of certain materials and key equipment components used to provide services to the company 's customers . during 2014 , we experienced high employment costs due to the demand for skilled labor in our markets . in addition , we experienced continued high cost for certain raw materials the company uses to provide its services , in spite of our efforts to secure raw materials from alternative sources . during 2015 , however , supplies of raw materials became more readily available as domestic oilfield activity decreased . in addition , skilled labor became more available , and the upward wage pressures that the company experienced in 2014 subsided . by way of illustration , during this time the price index of one of the most critical raw materials the company uses to provide its services declined by more than 20 percent . the company also uses a large amount of diesel fuel to operate its fleet of revenue-producing equipment , and the cost of diesel fuel has declined significantly in 2015 and early in 2016. in
| liquidity and capital resources cash and cash flows the company 's cash and cash equivalents were $ 65.2 million as of december 31 , 2015 , $ 9.8 million as of december 31 , 2014 and $ 8.7 million as of december 31 , 2013. the following table sets forth the historical cash flows for the years ended december 31 : replace_table_token_4_th 2015 cash provided by operating activities increased $ 151.0 million in 2015 compared to the prior year due primarily to a favorable change in working capital of $ 506.8 million partially offset by a decrease in net income ( loss ) of $ 344.8 million , an increase in depreciation and amortization of $ 41.3 million , and an unfavorable change in deferred taxes of $ 45.4 million due to a decrease in tax benefits resulting from lower capital expenditures . the favorable change in working capital was primarily due to favorable changes of $ 599.8 million in accounts receivable and $ 56.4 million in inventory as a result of lower business activity levels in 2015 compared to the prior year . also , there was a favorable change in income taxes receivable/payable of $ 3.9 million due to the timing of payments . these favorable changes were partially offset by unfavorable changes in accounts payable of $ 98.9 million , accrued payroll of $ 46.4 million and accrued state , local and other taxes of $ 5.8 million due to lower business activity levels coupled with the timing of payments . cash used for investing activities in 2015 decreased by $ 197.8 million compared to 2014 , primarily as a result of lower capital expenditures in response to weaker industry conditions . cash provided by financing activities in 2015 increased by $ 294.4 million primarily as a result of higher net loan payments funded primarily by the favorable changes in working capital , partially offset by lower open market share repurchases and common stock dividends during 2015 compared to the prior year .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources cash and cash flows the company 's cash and cash equivalents were $ 65.2 million as of december 31 , 2015 , $ 9.8 million as of december 31 , 2014 and $ 8.7 million as of december 31 , 2013. the following table sets forth the historical cash flows for the years ended december 31 : replace_table_token_4_th 2015 cash provided by operating activities increased $ 151.0 million in 2015 compared to the prior year due primarily to a favorable change in working capital of $ 506.8 million partially offset by a decrease in net income ( loss ) of $ 344.8 million , an increase in depreciation and amortization of $ 41.3 million , and an unfavorable change in deferred taxes of $ 45.4 million due to a decrease in tax benefits resulting from lower capital expenditures . the favorable change in working capital was primarily due to favorable changes of $ 599.8 million in accounts receivable and $ 56.4 million in inventory as a result of lower business activity levels in 2015 compared to the prior year . also , there was a favorable change in income taxes receivable/payable of $ 3.9 million due to the timing of payments . these favorable changes were partially offset by unfavorable changes in accounts payable of $ 98.9 million , accrued payroll of $ 46.4 million and accrued state , local and other taxes of $ 5.8 million due to lower business activity levels coupled with the timing of payments . cash used for investing activities in 2015 decreased by $ 197.8 million compared to 2014 , primarily as a result of lower capital expenditures in response to weaker industry conditions . cash provided by financing activities in 2015 increased by $ 294.4 million primarily as a result of higher net loan payments funded primarily by the favorable changes in working capital , partially offset by lower open market share repurchases and common stock dividends during 2015 compared to the prior year .
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Suspicious Activity Report : we believe this because the united states grew to be the world 's largest producer of oil during the second quarter of 2015 , and the increase in oil production was due to the growth of oil-directed drilling in shale formations . these wells produce a large amount of oil immediately following their completion , but typically experience large production declines within two years . therefore , the declining production of these wells , and the rapid decline in drilling of new wells of this type beginning in 2015 are the most likely initial catalysts for improving industry conditions . customer activities directed towards natural gas drilling and production have been weak for several years , with the u.s. domestic natural gas rig count during the first quarter of 2016 falling to the lowest level ever recorded . we believe that customer activities directed towards drilling for natural gas have been weak because of the high production of shale-directed natural gas wells , the high amount of natural gas production associated with oil-directed shale wells in the u.s. domestic market , relatively constant consumption of natural gas in the united states , and the fact that natural gas has not historically been exported from the united states to other markets in which demand and prices are higher . the price of natural gas continued its decline during 2015 and the first quarter of 2016. early in the first quarter of 2016 , the price of natural gas had fallen to approximately $ 2.00 per mcf , its lowest level since the second quarter of 1998 . 17 rpc monitors the number of horizontal and directional wells drilled in the u.s. domestic market , because this type of well is more service-intensive than a vertical oil or gas well , thus requiring more of the company 's services provided for a longer period of time . during 2015 , the average number of horizontal and directional wells drilled in the united states decreased by approximately 43 percent , and was 86 percent of total wells drilled during the year . during the first part of 2016 , the percentage of horizontal and directional wells drilled as a percentage of total wells rose to approximately 88 percent . while the increase in horizontal and directional drilling as a percentage of total drilling is favorable , the absolute declines in drilling directed towards all types of wells makes this trend significantly less meaningful . we also monitor the u.s. domestic well count , which is a measure of wells drilled by the existing drilling rig fleet . we believe that the well count is an important measure of our potential activity levels because it reflects changes in rig efficiencies . during 2015 , the total u.s. domestic well count decreased by approximately 50 percent . in the markets in which rpc has operational locations , the well count decreased by approximately 47 percent . pricing for our services declined significantly during 2015 , as drilling and completion activities declined , creating a significant oversupply of service capacity . this impact was partially offset by greater service intensity within many of the services provided by rpc 's pressure pumping and downhole motors and tools service lines , among others . during previous years , a number of our customers entered into contractual relationships with us to provide services to support their completion programs . all of these arrangements expired during 2014. we did not enter into any new contractual arrangements during 2015 , nor do we expect to enter into any such contractual arrangements in 2016. during 2015 the company decreased our purchases of revenue-producing equipment and temporarily suspended the quarterly dividend to common stockholders . cash flows from operating activities as well as borrowings under our revolving credit facility have been sufficient to fund the company 's lower capital expenditures which decreased to $ 167.4 million in 2015 compared to $ 371.5 million in 2014. the company has a syndicated revolving credit facility in order to maintain sufficient liquidity to fund its capital expenditure and other funding requirements . revenues during 2015 totaled $ 1.3 billion , a decrease of 45.9 percent compared to 2014 due primarily to lower activity levels and pricing for our services . cost of revenues decreased $ 506.9 million in 2015 compared to the prior year due to lower costs resulting from lower activity levels , reduced personnel headcount and incentive compensation , and price reductions from suppliers , partially offset by the impact of increasing service intensity . as a percentage of revenue , cost of revenues increased due to competitive pricing for our services and inefficiencies resulting from lower activity levels . selling , general and administrative expenses as a percentage of revenues increased to 12.4 percent of revenues in 2015 compared to 8.4 percent of revenues in 2014 . ( loss ) income before income taxes decreased to a loss of $ 153.0 million in 2015 compared to income of $ 399.4 million in the prior year . diluted ( loss ) earnings per share were $ ( 0.47 ) in 2015 compared to $ 1.14 in the prior year . cash flows from operating activities increased to $ 473.8 million in 2015 compared to $ 322.8 million in 2014 primarily due to reductions in working capital requirements coupled with lower earnings . as of december 31 , 2015 , there were no outstanding borrowings under our credit facility , a decrease from $ 224.5 million at december 31 , 2014. outlook drilling activity in the u.s. domestic oilfields , as measured by the rotary drilling rig count , reached a recent cyclical peak of 1,931 during the third quarter of 2014. between the third quarter of 2014 and early in the first quarter of 2016 , the drilling rig count has fallen by approximately 73 percent . story_separator_special_tag income tax provision . the income tax provision was $ 154.2 million in 2014 compared to $ 109.4 million in 2013. this increase was due to higher income before taxes partially offset by a decrease in the effective tax rate to 38.6 percent in 2014 compared to 39.6 percent in 2013. net income and diluted earnings per share . net income was $ 245.2 million in 2014 , or $ 1.14 per diluted share , compared to net income of $ 166.9 million , or $ 0.77 per diluted share in 2013. this increase was due to higher profitability as average shares outstanding was essentially unchanged . story_separator_special_tag 0 `` > cash requirements capital expenditures were $ 167.4 million in 2015 , and we currently expect capital expenditures to be approximately $ 60 million in 2016. we expect that a majority of these expenditures in 2016 will be directed towards capitalized equipment maintenance . the remaining capital expenditures will be directed towards the purchase of revenue-producing equipment . the actual amount of expenditures will depend primarily on equipment maintenance requirements , expansion opportunities , and equipment delivery schedules . the company 's retirement income plan , a multiple employer trusteed defined benefit pension plan , provides monthly benefits upon retirement at age 65 to eligible employees . during 2015 , the company contributed $ 0.9 million to the pension plan . the company expects that additional contributions to the defined benefit pension plan of approximately $ 0.9 million will be required in 2016 to achieve the company 's funding objective . the company has a stock buyback program initially adopted in 1998 that authorizes the repurchase of up to 26,578,125 shares . on june 5 , 2013 , the board of directors authorized an additional 5,000,000 shares for repurchase under this program . there were no shares purchased on the open market by the company during 2015 , and 2,050,154 shares remain available to be repurchased under the current authorization as of december 31 , 2015. the company may repurchase outstanding common shares periodically based on market conditions and our capital allocation strategies considering restrictions under our credit facility . the stock buyback program does not have a predetermined expiration date . on july 28 , 2015 , the board of directors voted to temporarily suspend rpc 's quarterly dividend to common stockholders . the company expects to resume cash dividends to common stockholders in the future , subject to the earnings and financial condition of the company and other relevant factors . 23 contractual obligations the company 's obligations and commitments that require future payments include our credit facility , certain non-cancelable operating leases , purchase obligations and other long-term liabilities . the following table summarizes the company 's significant contractual obligations as of december 31 , 2015 : replace_table_token_5_th ( 1 ) operating leases include agreements for various office locations , office equipment , and certain operating equipment . ( 2 ) includes agreements to purchase raw materials , goods or services that have been approved and that specify all significant terms ( pricing , quantity , and timing ) . as part of the normal course of business the company occasionally enters into purchase commitments to manage its various operating needs . ( 3 ) includes expected cash payments for long-term liabilities reflected on the balance sheet where the timing of the payments are known . these amounts include incentive compensation . these amounts exclude pension obligations with uncertain funding requirements and deferred compensation liabilities . fair value measurements the company 's assets and liabilities measured at fair value are classified in the fair value hierarchy ( level 1 , 2 or 3 ) based on the inputs used for valuation . assets and liabilities that are traded on an exchange with a quoted price are classified as level 1. assets and liabilities that are valued using significant observable inputs in addition to quoted market prices are classified as level 2. the company currently has no assets or liabilities measured on a recurring basis that are valued using unobservable inputs and therefore no assets or liabilities measured on a recurring basis are classified as level 3. for defined benefit plan assets classified as level 3 , the values are computed using inputs such as cost , discounted future cash flows , independent appraisals and market based comparable data or on net asset values calculated by the fund or when not publicly available . inflation the company purchases its equipment and materials from suppliers who provide competitive prices , and employs skilled workers from competitive labor markets . if inflation in the general economy increases , the company 's costs for equipment , materials and labor could increase as well . also , increases in activity in the domestic oilfield can cause upward wage pressures in the labor markets from which it hires employees as well as increases in the costs of certain materials and key equipment components used to provide services to the company 's customers . during 2014 , we experienced high employment costs due to the demand for skilled labor in our markets . in addition , we experienced continued high cost for certain raw materials the company uses to provide its services , in spite of our efforts to secure raw materials from alternative sources . during 2015 , however , supplies of raw materials became more readily available as domestic oilfield activity decreased . in addition , skilled labor became more available , and the upward wage pressures that the company experienced in 2014 subsided . by way of illustration , during this time the price index of one of the most critical raw materials the company uses to provide its services declined by more than 20 percent . the company also uses a large amount of diesel fuel to operate its fleet of revenue-producing equipment , and the cost of diesel fuel has declined significantly in 2015 and early in 2016. in
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2,340 | among other measures , we implemented appropriate health and safety protocols so that our community construction and sales activities , wherever authorized , could continue operations . during the second quarter of fiscal 2020 and the initial impact of covid-19 , we experienced adverse business conditions , including a slowdown in customer traffic and sales pace and an increase in cancellations . to mitigate the adverse impacts , we implemented initiatives to maximize positive cash flow , retain a strong liquidity position and optimize our organization , which included focusing on closing homes in backlog and limiting cash expenditures , reducing or delaying certain land purchases and land development activity and beginning work on unsold homes and electing to draw in full the $ 125.0 million available under its secured credit agreement ( which was repaid in the third quarter of fiscal 2020 ) . further , in may 2020 , we announced certain operational optimization measures including streamlining the organizational structure by : ( 1 ) transitioning from three homebuilding operational groups to two ; ( 2 ) consolidating several business units , resulting in the reduction of three divisional offices ; and ( 3 ) gradually phasing out of the chicago market as it sells through its existing communities . in addition , we took measures to reduce overhead expenses through a combination of furloughs , layoffs and other cost reduction measures , the implementation of which was completed in early fiscal 2021. we incurred costs of $ 2.9 million for severance and other related expenses in the third quarter of fiscal 2020 as a result of this restructuring . we expect the measures described above to reduce our annualized overhead expense by approximately $ 20 million beginning in fiscal 2021. however , the recent improved conditions in the homebuilding market have led to increases in other selling , general and administrative costs , including for example , stock compensation and bonuses based on profitability , which we expect will more than offset these annualized savings . 23 while the broader economic recovery following the nationwide covid-19 related shutdown is ongoing and there continues to be uncertainty surrounding the virus and various re-opening strategies , the homebuilding industry generally was only impacted from mid-march through april of 2020. towards the end of april , economic conditions in our markets started to improve , and this improvement continued throughout our fiscal third and fourth quarters , due to what we believe is a combination of factors including low interest rates , low inventory levels of existing homes and a general desire for more indoor and outdoor space . during the third quarter and continuing through the fourth quarter of fiscal 2020 , we returned to our normal activities with respect to land purchases , land development and resuming the construction of unsold homes . as a result , our operating metrics improved significantly as compared to fiscal 2019 , as described below . although many of our key metrics have improved since the end of the second quarter of fiscal 2020 , the full magnitude and duration of the covid-19 pandemic is unknown . we may experience material declines in our net contracts , deliveries , revenues , cash flow and or profitability during fiscal 2021 and beyond , compared to the corresponding prior-year periods , and compared to our expectations at the beginning of our 2020 fiscal year . in addition , if conditions in the overall housing market or in a specific market worsen in the future beyond our current expectations , if future changes in our business strategy significantly affect any key assumptions used in our projections of future cash flows , or if there are material changes in any of the other items we consider in assessing recoverability , we may recognize charges in future periods for inventory impairments related to our current inventory assets or other reorganization activities . any such charges could be material to our consolidated financial statements . operating results we experienced overall positive operating results for the year ended october 31 , 2020 as follows : our cash position allowed us to spend $ 624.2 million on land purchases and land development during fiscal 2020 , and still have total liquidity of $ 399.1 million , including $ 262.5 million of homebuilding cash and cash equivalents as of october 31 , 2020 and $ 125.0 million of borrowing capacity under our senior secured revolving credit facility . additional results for the year ended october 31 , 2020 were as follows : โ for the year ended october 31 , 2020 , sale of homes revenues increased 15.5 % as compared to the prior year , as a result of a 15.0 % increase in deliveries , primarily due to our increased community count that occurred during fiscal 2019 and our 39.2 % increase in sales absorption pace in fiscal 2020 as compared to fiscal 2019 . โ gross margin percentage increased from 14.2 % for the year ended october 31 , 2019 to 14.7 % for the year ended october 31 , 2020 , and gross margin percentage , before cost of sales interest expense and land charges , increased from 18.1 % for the year ended october 31 , 2019 to 18.4 % for the year ended october 31 , 2020. the increases were primarily due to the mix of communities delivering compared to the prior year , along with increases in home prices in virtually all of our markets during the last half of fiscal 2020 . story_separator_special_tag warranty costs and construction defect reserves - we accrue for warranty costs that are covered under our existing general liability and construction defect policy as part of our general liability insurance deductible . this accrual is expensed as selling , general , and administrative costs . for homes delivered in fiscal 2020 and 2019 , our deductible under our general liability insurance was a $ 20 million aggregate for construction defect and warranty claims . for bodily injury claims , our deductible per occurrence in fiscal 2020 and 2019 was $ 0.25 million , up to a $ 5 million limit . our aggregate retention for construction defect , warranty and bodily injury claims was $ 20 million for fiscal 2020 and 2019. we do not have a deductible on our worker 's compensation insurance . reserves for estimated losses for construction defects , warranty and bodily injury claims have been established using the assistance of a third-party actuary . we engage a third-party actuary that uses our historical warranty and construction defect data to assist our management in estimating our unpaid claims , claim adjustment expenses and incurred but not reported claims reserves for the risks that we are assuming under the general liability and construction defect programs . the estimates include provisions for inflation , claims handling and legal fees . these estimates are subject to a high degree of variability due to uncertainties such as trends in construction defect claims relative to our markets and the types of products we build , claim settlement patterns , insurance industry practices and legal interpretations , among others . because of the high degree of judgment required in determining these estimated liability amounts , actual future costs could differ significantly from our currently estimated amounts . in addition , we establish a warranty accrual for lower cost-related issues to cover home repairs , community amenities and land development infrastructure that are not covered under our general liability and construction defect policy . we accrue an estimate for these warranty costs as part of cost of sales at the time each home is closed and title and possession have been transferred to the homebuyer . see note 16 to the consolidated financial statements for additional information on the amount of warranty costs recognized in cost of goods sold and administrative expenses . 27 recent accounting pronouncements see note 3 to the consolidated financial statements included elsewhere in this annual report on form 10-k. story_separator_special_tag guarantors โ ) . 29 the credit agreements governing the credit facilities and the indentures governing the senior secured and senior notes ( together , the โ debt instruments โ ) outstanding at october 31 , 2020 do not contain any financial maintenance covenants , but do contain restrictive covenants that limit , among other things , the ability of hei and certain of its subsidiaries , including k. hovnanian , to incur additional indebtedness ( other than non-recourse indebtedness , certain permitted indebtedness and refinancing indebtedness ) , pay dividends and make distributions on common and preferred stock , repay certain indebtedness prior to its respective stated maturity , repurchase common and preferred stock , make other restricted payments ( including investments ) , sell certain assets ( including in certain land banking transactions ) , incur liens , consolidate , merge , sell or otherwise dispose of all or substantially all of their assets and enter into certain transactions with affiliates . the debt instruments also contain customary events of default which would permit the lenders or holders thereof to exercise remedies with respect to the collateral ( as applicable ) , declare the loans made under the unsecured term loan facility ( defined below ) ( the โ unsecured term loans โ ) , loans made under the secured term loan facility ( defined below ) ( the โ secured term loans โ ) and loans made under the secured credit agreement ( as defined below ) ( the โ secured revolving loans โ ) or notes to be immediately due and payable if not cured within applicable grace periods , including the failure to make timely payments on the unsecured term loans , secured term loans , secured revolving loans or notes or other material indebtedness , cross default to other material indebtedness , the failure to comply with agreements and covenants and specified events of bankruptcy and insolvency , with respect to the unsecured term loans , secured term loans and secured revolving loans , material inaccuracy of representations and warranties and with respect to the unsecured term loans , secured term loans and secured revolving loans , a change of control , and , with respect to the secured term loans , secured revolving loans and senior secured notes , the failure of the documents granting security for the obligations under the secured debt instruments to be in full force and effect , and the failure of the liens on any material portion of the collateral securing the obligations under the secured debt instruments to be valid and perfected . as of october 31 , 2020 , we believe we were in compliance with the covenants of the debt instruments . if our consolidated fixed charge coverage ratio is less than 2.0 to 1.0 , as defined in the applicable debt instrument , we are restricted from making certain payments , including dividends , and from incurring indebtedness other than certain permitted indebtedness , refinancing indebtedness and nonrecourse indebtedness . as a result of this ratio restriction , we are currently restricted from paying dividends ( in the case of the payment of dividends on preferred stock , our secured debt leverage ratio must also be less than 4.0 to 1.0 ) , which are not cumulative , on our 7.625 % series a preferred stock . we anticipate that we will continue to be restricted from paying dividends for the foreseeable future . our inability to pay dividends is in
| capital resources and liquidity our operations consist primarily of residential housing development and sales in the northeast ( new jersey and pennsylvania ) , the mid-atlantic ( delaware , maryland , virginia , washington d.c. and west virginia ) , the midwest ( illinois and ohio ) , the southeast ( florida , georgia and south carolina ) , the southwest ( arizona and texas ) and the west ( california ) . in addition , we provide certain financial services to our homebuilding customers . we have historically funded our homebuilding and financial services operations with cash flows from operating activities , borrowings under our credit facilities , the issuance of new debt and equity securities and other financing activities . due to covenant restrictions in our debt instruments , we are currently limited in the amount of debt we can incur that does not qualify as refinancing indebtedness ( a limitation that we expect to continue for the foreseeable future ) , even if market conditions would otherwise be favorable , which could also impact our ability to grow our business . operating , investing and financing activities โ overview our total liquidity at october 31 , 2020 was $ 399.1 million , including $ 262.5 million in homebuilding cash and cash equivalents and $ 125.0 million of borrowing capacity under our senior secured revolving credit facility . this was above our target liquidity range of $ 170.0 to $ 245.0 million . the unprecedented public health and governmental efforts to contain the covid-19 pandemic have created significant uncertainty as to general economic and housing market conditions for fiscal 2021 and beyond . we believe that these sources of cash together with available borrowings on our senior secured revolving credit facility will be sufficient through fiscal 2021 to finance our working capital requirements .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```capital resources and liquidity our operations consist primarily of residential housing development and sales in the northeast ( new jersey and pennsylvania ) , the mid-atlantic ( delaware , maryland , virginia , washington d.c. and west virginia ) , the midwest ( illinois and ohio ) , the southeast ( florida , georgia and south carolina ) , the southwest ( arizona and texas ) and the west ( california ) . in addition , we provide certain financial services to our homebuilding customers . we have historically funded our homebuilding and financial services operations with cash flows from operating activities , borrowings under our credit facilities , the issuance of new debt and equity securities and other financing activities . due to covenant restrictions in our debt instruments , we are currently limited in the amount of debt we can incur that does not qualify as refinancing indebtedness ( a limitation that we expect to continue for the foreseeable future ) , even if market conditions would otherwise be favorable , which could also impact our ability to grow our business . operating , investing and financing activities โ overview our total liquidity at october 31 , 2020 was $ 399.1 million , including $ 262.5 million in homebuilding cash and cash equivalents and $ 125.0 million of borrowing capacity under our senior secured revolving credit facility . this was above our target liquidity range of $ 170.0 to $ 245.0 million . the unprecedented public health and governmental efforts to contain the covid-19 pandemic have created significant uncertainty as to general economic and housing market conditions for fiscal 2021 and beyond . we believe that these sources of cash together with available borrowings on our senior secured revolving credit facility will be sufficient through fiscal 2021 to finance our working capital requirements .
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Suspicious Activity Report : among other measures , we implemented appropriate health and safety protocols so that our community construction and sales activities , wherever authorized , could continue operations . during the second quarter of fiscal 2020 and the initial impact of covid-19 , we experienced adverse business conditions , including a slowdown in customer traffic and sales pace and an increase in cancellations . to mitigate the adverse impacts , we implemented initiatives to maximize positive cash flow , retain a strong liquidity position and optimize our organization , which included focusing on closing homes in backlog and limiting cash expenditures , reducing or delaying certain land purchases and land development activity and beginning work on unsold homes and electing to draw in full the $ 125.0 million available under its secured credit agreement ( which was repaid in the third quarter of fiscal 2020 ) . further , in may 2020 , we announced certain operational optimization measures including streamlining the organizational structure by : ( 1 ) transitioning from three homebuilding operational groups to two ; ( 2 ) consolidating several business units , resulting in the reduction of three divisional offices ; and ( 3 ) gradually phasing out of the chicago market as it sells through its existing communities . in addition , we took measures to reduce overhead expenses through a combination of furloughs , layoffs and other cost reduction measures , the implementation of which was completed in early fiscal 2021. we incurred costs of $ 2.9 million for severance and other related expenses in the third quarter of fiscal 2020 as a result of this restructuring . we expect the measures described above to reduce our annualized overhead expense by approximately $ 20 million beginning in fiscal 2021. however , the recent improved conditions in the homebuilding market have led to increases in other selling , general and administrative costs , including for example , stock compensation and bonuses based on profitability , which we expect will more than offset these annualized savings . 23 while the broader economic recovery following the nationwide covid-19 related shutdown is ongoing and there continues to be uncertainty surrounding the virus and various re-opening strategies , the homebuilding industry generally was only impacted from mid-march through april of 2020. towards the end of april , economic conditions in our markets started to improve , and this improvement continued throughout our fiscal third and fourth quarters , due to what we believe is a combination of factors including low interest rates , low inventory levels of existing homes and a general desire for more indoor and outdoor space . during the third quarter and continuing through the fourth quarter of fiscal 2020 , we returned to our normal activities with respect to land purchases , land development and resuming the construction of unsold homes . as a result , our operating metrics improved significantly as compared to fiscal 2019 , as described below . although many of our key metrics have improved since the end of the second quarter of fiscal 2020 , the full magnitude and duration of the covid-19 pandemic is unknown . we may experience material declines in our net contracts , deliveries , revenues , cash flow and or profitability during fiscal 2021 and beyond , compared to the corresponding prior-year periods , and compared to our expectations at the beginning of our 2020 fiscal year . in addition , if conditions in the overall housing market or in a specific market worsen in the future beyond our current expectations , if future changes in our business strategy significantly affect any key assumptions used in our projections of future cash flows , or if there are material changes in any of the other items we consider in assessing recoverability , we may recognize charges in future periods for inventory impairments related to our current inventory assets or other reorganization activities . any such charges could be material to our consolidated financial statements . operating results we experienced overall positive operating results for the year ended october 31 , 2020 as follows : our cash position allowed us to spend $ 624.2 million on land purchases and land development during fiscal 2020 , and still have total liquidity of $ 399.1 million , including $ 262.5 million of homebuilding cash and cash equivalents as of october 31 , 2020 and $ 125.0 million of borrowing capacity under our senior secured revolving credit facility . additional results for the year ended october 31 , 2020 were as follows : โ for the year ended october 31 , 2020 , sale of homes revenues increased 15.5 % as compared to the prior year , as a result of a 15.0 % increase in deliveries , primarily due to our increased community count that occurred during fiscal 2019 and our 39.2 % increase in sales absorption pace in fiscal 2020 as compared to fiscal 2019 . โ gross margin percentage increased from 14.2 % for the year ended october 31 , 2019 to 14.7 % for the year ended october 31 , 2020 , and gross margin percentage , before cost of sales interest expense and land charges , increased from 18.1 % for the year ended october 31 , 2019 to 18.4 % for the year ended october 31 , 2020. the increases were primarily due to the mix of communities delivering compared to the prior year , along with increases in home prices in virtually all of our markets during the last half of fiscal 2020 . story_separator_special_tag warranty costs and construction defect reserves - we accrue for warranty costs that are covered under our existing general liability and construction defect policy as part of our general liability insurance deductible . this accrual is expensed as selling , general , and administrative costs . for homes delivered in fiscal 2020 and 2019 , our deductible under our general liability insurance was a $ 20 million aggregate for construction defect and warranty claims . for bodily injury claims , our deductible per occurrence in fiscal 2020 and 2019 was $ 0.25 million , up to a $ 5 million limit . our aggregate retention for construction defect , warranty and bodily injury claims was $ 20 million for fiscal 2020 and 2019. we do not have a deductible on our worker 's compensation insurance . reserves for estimated losses for construction defects , warranty and bodily injury claims have been established using the assistance of a third-party actuary . we engage a third-party actuary that uses our historical warranty and construction defect data to assist our management in estimating our unpaid claims , claim adjustment expenses and incurred but not reported claims reserves for the risks that we are assuming under the general liability and construction defect programs . the estimates include provisions for inflation , claims handling and legal fees . these estimates are subject to a high degree of variability due to uncertainties such as trends in construction defect claims relative to our markets and the types of products we build , claim settlement patterns , insurance industry practices and legal interpretations , among others . because of the high degree of judgment required in determining these estimated liability amounts , actual future costs could differ significantly from our currently estimated amounts . in addition , we establish a warranty accrual for lower cost-related issues to cover home repairs , community amenities and land development infrastructure that are not covered under our general liability and construction defect policy . we accrue an estimate for these warranty costs as part of cost of sales at the time each home is closed and title and possession have been transferred to the homebuyer . see note 16 to the consolidated financial statements for additional information on the amount of warranty costs recognized in cost of goods sold and administrative expenses . 27 recent accounting pronouncements see note 3 to the consolidated financial statements included elsewhere in this annual report on form 10-k. story_separator_special_tag guarantors โ ) . 29 the credit agreements governing the credit facilities and the indentures governing the senior secured and senior notes ( together , the โ debt instruments โ ) outstanding at october 31 , 2020 do not contain any financial maintenance covenants , but do contain restrictive covenants that limit , among other things , the ability of hei and certain of its subsidiaries , including k. hovnanian , to incur additional indebtedness ( other than non-recourse indebtedness , certain permitted indebtedness and refinancing indebtedness ) , pay dividends and make distributions on common and preferred stock , repay certain indebtedness prior to its respective stated maturity , repurchase common and preferred stock , make other restricted payments ( including investments ) , sell certain assets ( including in certain land banking transactions ) , incur liens , consolidate , merge , sell or otherwise dispose of all or substantially all of their assets and enter into certain transactions with affiliates . the debt instruments also contain customary events of default which would permit the lenders or holders thereof to exercise remedies with respect to the collateral ( as applicable ) , declare the loans made under the unsecured term loan facility ( defined below ) ( the โ unsecured term loans โ ) , loans made under the secured term loan facility ( defined below ) ( the โ secured term loans โ ) and loans made under the secured credit agreement ( as defined below ) ( the โ secured revolving loans โ ) or notes to be immediately due and payable if not cured within applicable grace periods , including the failure to make timely payments on the unsecured term loans , secured term loans , secured revolving loans or notes or other material indebtedness , cross default to other material indebtedness , the failure to comply with agreements and covenants and specified events of bankruptcy and insolvency , with respect to the unsecured term loans , secured term loans and secured revolving loans , material inaccuracy of representations and warranties and with respect to the unsecured term loans , secured term loans and secured revolving loans , a change of control , and , with respect to the secured term loans , secured revolving loans and senior secured notes , the failure of the documents granting security for the obligations under the secured debt instruments to be in full force and effect , and the failure of the liens on any material portion of the collateral securing the obligations under the secured debt instruments to be valid and perfected . as of october 31 , 2020 , we believe we were in compliance with the covenants of the debt instruments . if our consolidated fixed charge coverage ratio is less than 2.0 to 1.0 , as defined in the applicable debt instrument , we are restricted from making certain payments , including dividends , and from incurring indebtedness other than certain permitted indebtedness , refinancing indebtedness and nonrecourse indebtedness . as a result of this ratio restriction , we are currently restricted from paying dividends ( in the case of the payment of dividends on preferred stock , our secured debt leverage ratio must also be less than 4.0 to 1.0 ) , which are not cumulative , on our 7.625 % series a preferred stock . we anticipate that we will continue to be restricted from paying dividends for the foreseeable future . our inability to pay dividends is in
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2,341 | the operations of linc are included in the facility solutions segment as of the acquisition date . 20 summary of key financial performance indicators during the second half of 2011 and continuing throughout 2012 , the u.s. economy was generally weak and the company faced increasing competitive pricing pressures which led to a reduction in scope of work and certain contract losses from the company 's clients . this competitive environment impacted overall margins in fiscal 2012. further , a significant portion of the revenues in the facility solutions segment is generated from contracts with the u.s. government . the company is continually assessing the potential impact that the size , composition , and timing of congressional approval of the annual federal budget will have on its government clients . in addition , the company monitors and assesses the potential impact of u.s. government policy and strategy changes on its business . while the volume of bid activity and request for proposals for future awards remains active , the company 's government business has experienced and may continue to experience delays in new contract awards and in the start dates of currently awarded contracts or early termination of existing contracts . in addition , during the year ended october 31 , 2012 , there were unfavorable developments in certain general liability and workers ' compensation claims for certain policy years prior to fiscal 2012. certain general liability claims related to earlier policy years experienced losses significantly higher than were previously estimated . workers ' compensation expense was unfavorable in california and other states where the company maintains a significant presence . specifically in california , workers ' compensation claims were favorable for older years , but adverse for more current years due primarily to california 's post-reform workers ' compensation environment . in addition , some of the unfavorable workers ' compensation development may be the result of the company 's continuing attempt to achieve earlier settlement of claims . offsetting the unfavorable workers ' compensation developments in california and other states was the impact of a favorable reform in illinois , and more specifically relating to reduced medical costs associated with the reform . the company has also implemented a series of initiatives to improve the management of general liability claims . further , the recognition within the company 's annual actuarial assessment of the loss experience for policy years in which linc was a member of a group captive , also resulted in a favorable insurance adjustment . after analyzing the historical loss development patterns , comparing the loss development against benchmarks , adjusting for known operational claims handling changes , and applying actuarial projection methods to determine the estimate of ultimate losses , the company increased its expected reserves for prior-year claims , which resulted in an increase in the related insurance expense of $ 7.3 million during fiscal year ended october 31 , 2012 and was recorded as part of corporate expenses . these factors , along with higher payroll and payroll related expenses , and the accrual of certain legal settlement costs , have negatively impacted the company 's operating results in 2012. financial overview revenues increased by $ 53.4 million , or 1.3 % , in the year ended october 31 , 2012 , as compared to the year ended october 31 , 2011. the increase was primarily related to revenues associated with the timing of the linc acquisition , which occurred on december 1 , 2010 , new business within the security and janitorial segments , and additional revenues in the facility solutions segment from new abm building and energy solutions ( ยabesย ) contracts . the increase in revenues was partially offset by the continuing impact of reduction in scope of work and contract losses starting in fiscal 2011 and the termination of certain u.s. government contracts in iraq earlier in the fiscal year . operating profit decreased by $ 21.0 million , or 17.9 % in the year ended october 31 , 2012 , as compared to the year ended october 31 , 2011. the decrease was primarily related to an increase in self-insurance expense related to prior year claims primarily as a result of unfavorable developments in certain general liability and workers ' compensation claims during the year ended october 31 , 2012 and higher payroll and payroll related expenses , primarily from higher state unemployment insurance rates and the impact of one additional working day in the year ended october 31 , 2012. the decrease in operating profit was also related to higher legal settlement costs and the continuing impact of increasing competitive pricing pressures and contract losses starting in fiscal 2011 , including the termination of certain u.s. government contracts in iraq earlier in the fiscal year . in addition to revenues and operating profit , the company 's management views operating cash flows as a good indicator of financial performance , as strong operating cash flows provide opportunities for growth both organically and through acquisitions . operating cash flows primarily depend on : revenue levels ; the quality and timing of collections of accounts receivable , including receivables from government contracts which generally have longer collection periods ; the timing of payments to suppliers and other vendors ; the timing and amount of income tax payments ; and the timing and amount of payments on insured claims . the company 's net cash provided by continuing operating activities was $ 148.9 million , $ 156.8 million and $ 140.7 million in the years ended october 31 , 2012 , 2011 and 2010 , respectively . the company 's largest operating segment is the janitorial segment , which generated approximately 55.7 % of the company 's revenues and approximately 67.3 % of the company 's operating profit , excluding expenses allocated to corporate , in the year ended october 31 , 2012 . story_separator_special_tag the average outstanding balances under the company 's line of credit were $ 369.1 million and $ 156.7 million in the year ended october 31 , 2011 and october 31 , 2010 , respectively . provision for income taxes the effective tax rate on income from continuing operations for the years ended october 31 , 2011 and 2010 was 35.0 % and 38.6 % , respectively . the tax provision for the year ended october 31 , 2011 includes a tax benefit of $ 4.7 million related to a re-measurement of certain unrecognized tax benefits , partially offset by other discrete tax costs of $ 1.9 million , primarily related to the true-up of prior year tax balances including a reduction in anticipated employment based tax credits . 28 segment information segment revenues and operating profits for the years ended october 31 , 2011 and 2010 were as follows : replace_table_token_11_th janitorial replace_table_token_12_th janitorial revenues increased by $ 74.1 million , or 3.2 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. the increase was primarily related to revenues associated with diversco , which was acquired on june 30 , 2010 , and additional revenues from new business . the period-over-period increase in revenues attributable to diversco in 2011 was $ 49.8 million . operating profit increased by $ 0.6 million , or 0.4 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. operating profit margins decreased by 0.2 % , to 5.9 % in the year ended october 31 , 2011 from 6.1 % in the year ended october 31 , 2010. the increase in operating profit was primarily related to the increase in revenue , partially offset by higher payroll and payroll related expenses as a result of one additional working day in the year ended october 31 , 2011 and the impact of higher state unemployment insurance rates that went into effect on january 1 , 2011 , as well as increases in fuel costs . 29 facility solutions replace_table_token_13_th facility solutions revenues increased by $ 516.8 million , or 135.1 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. the increase was primarily related to revenues associated with the acquisition of linc , which was acquired on december 1 , 2010. the revenues attributable to linc in 2011 were $ 512.9 million . operating profit increased by $ 10.5 million , or 45.6 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. operating profit margins decreased by 2.3 % , to 3.7 % in the year ended october 31 , 2011 from 6.0 % in the year ended october 31 , 2010. the increase in operating profit is primarily related to the operating profit associated with linc , which was $ 11.1 million ( excluding transaction costs and the interest expense associated with the borrowings under the company 's line of credit used to finance the acquisition , which were recorded within corporate expenses ) in the year ended october 31 , 2011. parking replace_table_token_14_th parking revenues increased by $ 146.3 million , or 31.2 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. the increase was related to revenues associated with the acquisition of l & r , which was acquired on october 1 , 2010 , partially offset by lost business as a result of the weaker u.s. economy . the period-over-period increase in revenues attributable to l & r in 2011 was $ 154.5 million . operating profit increased by $ 1.5 million , or 6.7 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. operating profit margins decreased by 0.9 % , to 3.9 % in the year ended october 31 , 2011 from 4.8 % in the year ended october 31 , 2010. the increase in operating profit was primarily related to the increase in revenues , partially offset by an increase in payroll related expenses associated with higher state unemployment insurance rates that went into effect on january 1 , 2011 and an increase in legal costs related to a contract settlement . security replace_table_token_15_th security revenues increased by $ 14.1 million , or 4.2 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. the increase was primarily related to revenues associated with the acquisition of diversco , which was acquired on june 30 , 2010 , and additional revenues from new business . the period-over-period increase in revenues attributable to diversco in the year ended october 31 , 2011 was $ 7.4 million . operating profit increased by $ 0.5 million , or 6.4 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. operating profit margins increased by 0.1 % , to 2.3 % in the year ended october 31 , 2011 from 2.2 % in the year ended october 31 , 2010. the increase in operating profit was primarily related to a reduction in general and administrative expenses , predominantly payroll and payroll related expenses and legal fees . 30 corporate and other years ended october 31 , ( $ in thousands ) 2011 2010 increase / ( decrease ) corporate expenses $ ( 88,662 ) $ ( 84,324 ) $ 4,338 5.1 % corporate expenses increased by $ 4.3 million , or 5.1 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. the increase in corporate expenses was primarily related to : a $ 5.1 million increase in share-based
| cash flows operating activities net cash provided by operating activities decreased by $ 9.4 million in the year ended october 31 , 2012 as compared to the year ended october 31 , 2011. the decrease was primarily related to the decrease in income from continuing operations before income taxes and timing of payments made for vendor invoices and other accrued liabilities , partially offset by the timing of payments made for insurance claims and trade accounts receivable collections received from clients . net cash provided by operating activities increased by $ 10.1 million in the year ended october 31 , 2011 as compared to the year ended october 31 , 2010. the increase was primarily related to the timing of payments made on vendor invoices , partially offset by the timing of collections received from clients ( which includes longer collection periods pertaining to the company 's government business ) . the cash flows from operating activities in the year ended october 31 , 2011 were also impacted by higher cash paid for income taxes ( net of refunds received ) and interest paid on the line of credit , as compared to the year ended october 31 , 2010. investing activities net cash used in investing activities decreased by $ 277.6 million in the year ended october 31 , 2012 , as compared to the year ended october 31 , 2011. the decrease was primarily related to $ 290.3 million cash paid , net of cash acquired , for the linc acquisition , during the year ended october 31 , 2011 , partially offset by $ 5.5 million cash paid , net of cash acquired , in connection with an acquisition made in fiscal 2012 , a $ 5.9 million increase in fixed asset additions , and the redemption of an auction rate security of $ 5.0 million in the prior year .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows operating activities net cash provided by operating activities decreased by $ 9.4 million in the year ended october 31 , 2012 as compared to the year ended october 31 , 2011. the decrease was primarily related to the decrease in income from continuing operations before income taxes and timing of payments made for vendor invoices and other accrued liabilities , partially offset by the timing of payments made for insurance claims and trade accounts receivable collections received from clients . net cash provided by operating activities increased by $ 10.1 million in the year ended october 31 , 2011 as compared to the year ended october 31 , 2010. the increase was primarily related to the timing of payments made on vendor invoices , partially offset by the timing of collections received from clients ( which includes longer collection periods pertaining to the company 's government business ) . the cash flows from operating activities in the year ended october 31 , 2011 were also impacted by higher cash paid for income taxes ( net of refunds received ) and interest paid on the line of credit , as compared to the year ended october 31 , 2010. investing activities net cash used in investing activities decreased by $ 277.6 million in the year ended october 31 , 2012 , as compared to the year ended october 31 , 2011. the decrease was primarily related to $ 290.3 million cash paid , net of cash acquired , for the linc acquisition , during the year ended october 31 , 2011 , partially offset by $ 5.5 million cash paid , net of cash acquired , in connection with an acquisition made in fiscal 2012 , a $ 5.9 million increase in fixed asset additions , and the redemption of an auction rate security of $ 5.0 million in the prior year .
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Suspicious Activity Report : the operations of linc are included in the facility solutions segment as of the acquisition date . 20 summary of key financial performance indicators during the second half of 2011 and continuing throughout 2012 , the u.s. economy was generally weak and the company faced increasing competitive pricing pressures which led to a reduction in scope of work and certain contract losses from the company 's clients . this competitive environment impacted overall margins in fiscal 2012. further , a significant portion of the revenues in the facility solutions segment is generated from contracts with the u.s. government . the company is continually assessing the potential impact that the size , composition , and timing of congressional approval of the annual federal budget will have on its government clients . in addition , the company monitors and assesses the potential impact of u.s. government policy and strategy changes on its business . while the volume of bid activity and request for proposals for future awards remains active , the company 's government business has experienced and may continue to experience delays in new contract awards and in the start dates of currently awarded contracts or early termination of existing contracts . in addition , during the year ended october 31 , 2012 , there were unfavorable developments in certain general liability and workers ' compensation claims for certain policy years prior to fiscal 2012. certain general liability claims related to earlier policy years experienced losses significantly higher than were previously estimated . workers ' compensation expense was unfavorable in california and other states where the company maintains a significant presence . specifically in california , workers ' compensation claims were favorable for older years , but adverse for more current years due primarily to california 's post-reform workers ' compensation environment . in addition , some of the unfavorable workers ' compensation development may be the result of the company 's continuing attempt to achieve earlier settlement of claims . offsetting the unfavorable workers ' compensation developments in california and other states was the impact of a favorable reform in illinois , and more specifically relating to reduced medical costs associated with the reform . the company has also implemented a series of initiatives to improve the management of general liability claims . further , the recognition within the company 's annual actuarial assessment of the loss experience for policy years in which linc was a member of a group captive , also resulted in a favorable insurance adjustment . after analyzing the historical loss development patterns , comparing the loss development against benchmarks , adjusting for known operational claims handling changes , and applying actuarial projection methods to determine the estimate of ultimate losses , the company increased its expected reserves for prior-year claims , which resulted in an increase in the related insurance expense of $ 7.3 million during fiscal year ended october 31 , 2012 and was recorded as part of corporate expenses . these factors , along with higher payroll and payroll related expenses , and the accrual of certain legal settlement costs , have negatively impacted the company 's operating results in 2012. financial overview revenues increased by $ 53.4 million , or 1.3 % , in the year ended october 31 , 2012 , as compared to the year ended october 31 , 2011. the increase was primarily related to revenues associated with the timing of the linc acquisition , which occurred on december 1 , 2010 , new business within the security and janitorial segments , and additional revenues in the facility solutions segment from new abm building and energy solutions ( ยabesย ) contracts . the increase in revenues was partially offset by the continuing impact of reduction in scope of work and contract losses starting in fiscal 2011 and the termination of certain u.s. government contracts in iraq earlier in the fiscal year . operating profit decreased by $ 21.0 million , or 17.9 % in the year ended october 31 , 2012 , as compared to the year ended october 31 , 2011. the decrease was primarily related to an increase in self-insurance expense related to prior year claims primarily as a result of unfavorable developments in certain general liability and workers ' compensation claims during the year ended october 31 , 2012 and higher payroll and payroll related expenses , primarily from higher state unemployment insurance rates and the impact of one additional working day in the year ended october 31 , 2012. the decrease in operating profit was also related to higher legal settlement costs and the continuing impact of increasing competitive pricing pressures and contract losses starting in fiscal 2011 , including the termination of certain u.s. government contracts in iraq earlier in the fiscal year . in addition to revenues and operating profit , the company 's management views operating cash flows as a good indicator of financial performance , as strong operating cash flows provide opportunities for growth both organically and through acquisitions . operating cash flows primarily depend on : revenue levels ; the quality and timing of collections of accounts receivable , including receivables from government contracts which generally have longer collection periods ; the timing of payments to suppliers and other vendors ; the timing and amount of income tax payments ; and the timing and amount of payments on insured claims . the company 's net cash provided by continuing operating activities was $ 148.9 million , $ 156.8 million and $ 140.7 million in the years ended october 31 , 2012 , 2011 and 2010 , respectively . the company 's largest operating segment is the janitorial segment , which generated approximately 55.7 % of the company 's revenues and approximately 67.3 % of the company 's operating profit , excluding expenses allocated to corporate , in the year ended october 31 , 2012 . story_separator_special_tag the average outstanding balances under the company 's line of credit were $ 369.1 million and $ 156.7 million in the year ended october 31 , 2011 and october 31 , 2010 , respectively . provision for income taxes the effective tax rate on income from continuing operations for the years ended october 31 , 2011 and 2010 was 35.0 % and 38.6 % , respectively . the tax provision for the year ended october 31 , 2011 includes a tax benefit of $ 4.7 million related to a re-measurement of certain unrecognized tax benefits , partially offset by other discrete tax costs of $ 1.9 million , primarily related to the true-up of prior year tax balances including a reduction in anticipated employment based tax credits . 28 segment information segment revenues and operating profits for the years ended october 31 , 2011 and 2010 were as follows : replace_table_token_11_th janitorial replace_table_token_12_th janitorial revenues increased by $ 74.1 million , or 3.2 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. the increase was primarily related to revenues associated with diversco , which was acquired on june 30 , 2010 , and additional revenues from new business . the period-over-period increase in revenues attributable to diversco in 2011 was $ 49.8 million . operating profit increased by $ 0.6 million , or 0.4 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. operating profit margins decreased by 0.2 % , to 5.9 % in the year ended october 31 , 2011 from 6.1 % in the year ended october 31 , 2010. the increase in operating profit was primarily related to the increase in revenue , partially offset by higher payroll and payroll related expenses as a result of one additional working day in the year ended october 31 , 2011 and the impact of higher state unemployment insurance rates that went into effect on january 1 , 2011 , as well as increases in fuel costs . 29 facility solutions replace_table_token_13_th facility solutions revenues increased by $ 516.8 million , or 135.1 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. the increase was primarily related to revenues associated with the acquisition of linc , which was acquired on december 1 , 2010. the revenues attributable to linc in 2011 were $ 512.9 million . operating profit increased by $ 10.5 million , or 45.6 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. operating profit margins decreased by 2.3 % , to 3.7 % in the year ended october 31 , 2011 from 6.0 % in the year ended october 31 , 2010. the increase in operating profit is primarily related to the operating profit associated with linc , which was $ 11.1 million ( excluding transaction costs and the interest expense associated with the borrowings under the company 's line of credit used to finance the acquisition , which were recorded within corporate expenses ) in the year ended october 31 , 2011. parking replace_table_token_14_th parking revenues increased by $ 146.3 million , or 31.2 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. the increase was related to revenues associated with the acquisition of l & r , which was acquired on october 1 , 2010 , partially offset by lost business as a result of the weaker u.s. economy . the period-over-period increase in revenues attributable to l & r in 2011 was $ 154.5 million . operating profit increased by $ 1.5 million , or 6.7 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. operating profit margins decreased by 0.9 % , to 3.9 % in the year ended october 31 , 2011 from 4.8 % in the year ended october 31 , 2010. the increase in operating profit was primarily related to the increase in revenues , partially offset by an increase in payroll related expenses associated with higher state unemployment insurance rates that went into effect on january 1 , 2011 and an increase in legal costs related to a contract settlement . security replace_table_token_15_th security revenues increased by $ 14.1 million , or 4.2 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. the increase was primarily related to revenues associated with the acquisition of diversco , which was acquired on june 30 , 2010 , and additional revenues from new business . the period-over-period increase in revenues attributable to diversco in the year ended october 31 , 2011 was $ 7.4 million . operating profit increased by $ 0.5 million , or 6.4 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. operating profit margins increased by 0.1 % , to 2.3 % in the year ended october 31 , 2011 from 2.2 % in the year ended october 31 , 2010. the increase in operating profit was primarily related to a reduction in general and administrative expenses , predominantly payroll and payroll related expenses and legal fees . 30 corporate and other years ended october 31 , ( $ in thousands ) 2011 2010 increase / ( decrease ) corporate expenses $ ( 88,662 ) $ ( 84,324 ) $ 4,338 5.1 % corporate expenses increased by $ 4.3 million , or 5.1 % , during the year ended october 31 , 2011 , as compared to the year ended october 31 , 2010. the increase in corporate expenses was primarily related to : a $ 5.1 million increase in share-based
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2,342 | nearly every industry has been impacted directly or indirectly , and the u.s. retail market has come under severe pressure due to numerous factors , including preventive measures taken by local , state and federal authorities to alleviate the public health crisis , such as mandatory business closures , quarantines , restrictions on travel and โ shelter-in-place โ or โ stay-at-home โ orders . during the early part of the pandemic , these containment measures , as implemented by the tri-state area of connecticut , new york and new jersey , generally permitted businesses designated as โ essential โ to remain open , although limiting the operations of different categories of our tenants to varying degrees . since early summer , many ( but not all ) of these restrictions have been gradually lifted as the covid-19 situation in the tri-state area significantly improved , with most businesses now permitted to open at reduced capacity and under other limitations intended to control the spread of covid-19 . the situation , however , has been evolving as we head deeper into the winter months . moreover , not all tenants have been impacted in the same way or to the same degree by the pandemic and the measures adopted to control the spread of covid-19 . for example , grocery stores , pharmacies and wholesale clubs have been permitted to remain fully open throughout the pandemic and have generally performed well given their focus on food and necessities . many restaurants have also been considered essential , although social distancing and group gathering limitations have generally prevented or limited dine-in activity , forcing them to evaluate alternate means of operations , such as outdoor dining , delivery and pick-up . the large majority of our restaurant tenants are fast casual , rather than full-service restaurants . for a number of our tenants that operate businesses involving high contact interactions with their customers , such as spas and salons , the negative impact of covid-19 on their business has been more severe and the recovery more difficult . gyms and fitness tenants have experienced varying results . dry cleaners have also suffered as a result of many workers continuing to work from home . the following additional information reflects the impact of covid-19 on our portfolio and tenants : all 74 of our shopping centers or free-standing , net-leased retail bank or restaurant properties are open and operating , with 99.1 % of our total tenants open and operating based on annualized base rent ( โ abr โ ) . all of our shopping centers include necessity-based tenants , with approximately 71.4 % of our tenants ( based on abr ) designated as โ essential businesses โ during the early stay-at-home period of the pandemic in the tri-state area or otherwise permitted to operate through curbside pick-up and other modified operating procedures in accordance with state guidelines . these essential businesses are 99.0 % open based on abr . approximately 84 % of our gla is located in properties anchored by grocery stores , pharmacies and wholesale clubs , 6 % of our gla is located in outdoor retail shopping centers adjacent to regional malls and 8 % of our gla is located in outdoor neighborhood convenience retail , with the remaining 2 % of our gla consisting of six suburban office buildings located in greenwich , connecticut and bronxville , new york , three retail bank branches and one childcare center . all six suburban office buildings are open with some restrictions on capacity based on state mandates and all of the retail bank branches are open . as of december 10 , 2020 , we have received payment of approximately 86.0 % , 83.3 % and 89.8 % of lease income , consisting of contractual base rent ( leases in place without consideration of any deferral or abatement agreements ) , common area maintenance reimbursement and real estate tax reimbursement billed , respectively , for april 2020 through october 2020 , the third quarter ( may through july ) of fiscal 2020 and the fourth quarter ( august through october ) of fiscal 2020 , not including the application of any security deposits . similar to other retail landlords across the united states , we received a number of requests for rent relief from tenants , with most requests received during the early days of the pandemic when stay-at-home orders were in place and many businesses were required to close , but we have continued to receive a smaller number of new requests even after businesses have re-opened , and in some cases , follow-on requests from tenants to whom we had already provided temporarily rent relief . we have been evaluating each request on a case-by-case basis to determine the best course of action , recognizing that in many cases some type of concession may be appropriate and beneficial to our long-term interests . in evaluating these requests , we have been considering many factors , including the tenant 's financial strength , the tenant 's operating history , potential co-tenancy impacts , the tenant 's contribution to the shopping center in which it operates , our assessment of the tenant 's long-term viability , the difficult or ease with which the tenant could be replaced , and other factors . although each negotiation has been specific to that tenant , most of these concessions have been in the form of deferred rent for some portion of rents due in april through december 2020 , or longer , to be paid back over the later part of the lease , preferably within a period of one year or less . in addition , some of these concessions have been in the form of rent abatements for some portion of tenant rents due in april through december or longer . story_separator_special_tag for example , it will likely be more difficult for us to acquire or sell properties in fiscal 2021 ( or possibly beyond ) , as it may be difficult to value a property correctly given changing circumstances . additionally , parties may be unwilling to enter into transactions during such uncertainty . we may also be less willing to enter into developments or capital improvements that require large amounts of upfront capital if the expected return is perceived as delayed or uncertain . we choose to borrow $ 35 million under our facility during march and april 2020 to enhance our liquidity position and maintain financial flexibility , which is an approach consistent with many of our peers . while we believe we still maintain a conservative capital structure and low debt levels , particularly relative to our peers , our profile may evolve based on changing needs . we expect that our rent collections will continue to be below our tenants ' contractual rent obligations at least for as long as governmental orders require non-essential businesses to restrict business operations and individuals to adhere to social distancing policies , or potentially until a medical solution is achieved for covid-19 . we will continue to accrue rental revenue during the deferral period , except for tenants for which revenue recognition was converted to cash basis accounting in accordance with asc topic 842. however , we anticipate that some tenants eventually will be unable to pay amounts due , and we will incur losses against our rent receivables . the extent and timing of the recognition of such losses will depend on future developments , which are highly uncertain and can not be predicted . april through november 2020 rental income collections and rent relief requests to date may not be indicative of collections or requests in any future period . we continue to have active discussions with existing and potential new tenants for new and renewed leases . however , the uncertainty relating to the covid-19 pandemic has slowed the pace of leasing activity and could result in higher vacancy rates than we otherwise would have experienced , a longer amount of time to fill vacancies and potentially lower rental rates . as a reit , we are susceptible to changes in interest rates , the lending environment , the availability of capital markets and the general economy . the impacts of any changes are difficult to predict , particularly during the course of the current covid-19 pandemic . 15 highlights of fiscal 2020 ; recent developments set forth below are highlights of our recent property acquisitions , other investments , property dispositions and financings : on november 1 , 2019 , we redeemed all of the outstanding shares of our series g cumulative preferred stock for $ 25 per share with proceeds from our sale of our series k cumulative preferred stock in october 2019. the total redemption amount was $ 75 million . in december 2019 , we closed on the sale of our property located in bernardsville , nj to an unrelated third party for a sale price of $ 2.7 million , pursuant to a contract we had entered into in august 2019 , as that property no longer met our investment objectives . in accordance with gaap , the property met all the criteria to be classified as held for sale in the fourth quarter of fiscal 2019 , and , accordingly , we recorded a loss on property held for sale of $ 434,000 , which loss was included in continuing operations in the consolidated statement of income for the year ended october 31 , 2019. the amount of the loss represented the net carrying amount of the property over the fair value of the asset less estimated cost to sell . upon completion of the sale in december 2019 , we realized an additional loss on sale of property of $ 86,000 , which loss is included in continuing operations in the consolidated statement of income for the year ended october 31 , 2020. this loss has been added back to our funds from operations ( โ ffo โ ) as discussed below in this item 7. in january 2020 , we sold for $ 1.3 million a retail property located in carmel , ny , as that property no longer met our investment objectives . in conjunction with the sale , we realized a loss on sale of property in the amount of $ 242,000 , which loss is included in continuing operations in the consolidated statement of income for the year ended october 31 , 2020. this loss has been added back to ffo as discussed below in this item 7. in january 2020 , we redeemed 2,250 units of ub new city i , llc from the noncontrolling member . the total cash price paid for the redemption was $ 49,500. as a result of the redemption , our ownership percentage of new city increased to 79.7 % from 78.2 % . in january 2020 , we redeemed 23,829 units of ub high ridge , llc from the noncontrolling member . the total cash price paid for the redemption was $ 560,000. as a result of the redemption , our ownership percentage of high ridge increased to 14.2 % from 13.3 % . in march and april 2020 , we borrowed an aggregate $ 35 million on our facility to fund capital improvements and for general corporate purposes . in june 2020 , we redeemed 6,750 units of ub new city i , llc from the noncontrolling member . the total cash price paid for the redemption was $ 148,500. as a result of the redemption , our ownership percentage of new city increased to 84.3 % from 79.7 % . in december 2020 ( fiscal 2021 ) , we closed on the sale of a 29,000 square foot portion of our property , which was recently converted into
| liquidity and capital resources overview at october 31 , 2020 , we had cash and cash equivalents of $ 40.8 million ( see below ) , compared to $ 94.1 million at october 31 , 2019. our sources of liquidity and capital resources include operating cash flows from real estate operations , proceeds from bank borrowings and long-term mortgage debt , capital financings and sales of real estate investments . substantially all of our revenues are derived from rents paid under existing leases , which means that our operating cash flow depends on the ability of our tenants to make rental payments . as a result of state mandates forcing many non-essential businesses to close or restricting store operations to help prevent the spread of covid-19 , many of our tenants are suffering . please see the `` impact of covid-19 '' section earlier in this item 7 for more information . in fiscal 2020 , 2019 and 2018 , net cash flow provided by operations amounted to $ 61.9 million , $ 72.3 million and $ 71.6 million , respectively . on november 1 , 2019 , we redeemed all 3,000,000 outstanding shares of our 6.75 % series g cumulative preferred stock for $ 25 per share , which included all accrued and unpaid dividends . the total amount of the redemption amounted to $ 75 million . the redemption was funded with proceeds from our recently completed sale of 4,400,000 shares of 5.875 % series k cumulative preferred stock . we issued the series k shares on october 1 , 2019 and raised proceeds of $ 106.5 million . our short-term liquidity requirements consist primarily of normal recurring operating expenses and capital expenditures , debt service , management and professional fees , cash distributions to certain limited partners and non-managing members of our consolidated joint ventures , and regular dividends paid to our common and class a common stockholders . cash dividends paid on common and class a common stock for fiscal years ended october 31 , 2020 , 2019 and 2018 totaled $ 30.0 million , $ 42.6 million and $ 41.6 million , respectively .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources overview at october 31 , 2020 , we had cash and cash equivalents of $ 40.8 million ( see below ) , compared to $ 94.1 million at october 31 , 2019. our sources of liquidity and capital resources include operating cash flows from real estate operations , proceeds from bank borrowings and long-term mortgage debt , capital financings and sales of real estate investments . substantially all of our revenues are derived from rents paid under existing leases , which means that our operating cash flow depends on the ability of our tenants to make rental payments . as a result of state mandates forcing many non-essential businesses to close or restricting store operations to help prevent the spread of covid-19 , many of our tenants are suffering . please see the `` impact of covid-19 '' section earlier in this item 7 for more information . in fiscal 2020 , 2019 and 2018 , net cash flow provided by operations amounted to $ 61.9 million , $ 72.3 million and $ 71.6 million , respectively . on november 1 , 2019 , we redeemed all 3,000,000 outstanding shares of our 6.75 % series g cumulative preferred stock for $ 25 per share , which included all accrued and unpaid dividends . the total amount of the redemption amounted to $ 75 million . the redemption was funded with proceeds from our recently completed sale of 4,400,000 shares of 5.875 % series k cumulative preferred stock . we issued the series k shares on october 1 , 2019 and raised proceeds of $ 106.5 million . our short-term liquidity requirements consist primarily of normal recurring operating expenses and capital expenditures , debt service , management and professional fees , cash distributions to certain limited partners and non-managing members of our consolidated joint ventures , and regular dividends paid to our common and class a common stockholders . cash dividends paid on common and class a common stock for fiscal years ended october 31 , 2020 , 2019 and 2018 totaled $ 30.0 million , $ 42.6 million and $ 41.6 million , respectively .
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Suspicious Activity Report : nearly every industry has been impacted directly or indirectly , and the u.s. retail market has come under severe pressure due to numerous factors , including preventive measures taken by local , state and federal authorities to alleviate the public health crisis , such as mandatory business closures , quarantines , restrictions on travel and โ shelter-in-place โ or โ stay-at-home โ orders . during the early part of the pandemic , these containment measures , as implemented by the tri-state area of connecticut , new york and new jersey , generally permitted businesses designated as โ essential โ to remain open , although limiting the operations of different categories of our tenants to varying degrees . since early summer , many ( but not all ) of these restrictions have been gradually lifted as the covid-19 situation in the tri-state area significantly improved , with most businesses now permitted to open at reduced capacity and under other limitations intended to control the spread of covid-19 . the situation , however , has been evolving as we head deeper into the winter months . moreover , not all tenants have been impacted in the same way or to the same degree by the pandemic and the measures adopted to control the spread of covid-19 . for example , grocery stores , pharmacies and wholesale clubs have been permitted to remain fully open throughout the pandemic and have generally performed well given their focus on food and necessities . many restaurants have also been considered essential , although social distancing and group gathering limitations have generally prevented or limited dine-in activity , forcing them to evaluate alternate means of operations , such as outdoor dining , delivery and pick-up . the large majority of our restaurant tenants are fast casual , rather than full-service restaurants . for a number of our tenants that operate businesses involving high contact interactions with their customers , such as spas and salons , the negative impact of covid-19 on their business has been more severe and the recovery more difficult . gyms and fitness tenants have experienced varying results . dry cleaners have also suffered as a result of many workers continuing to work from home . the following additional information reflects the impact of covid-19 on our portfolio and tenants : all 74 of our shopping centers or free-standing , net-leased retail bank or restaurant properties are open and operating , with 99.1 % of our total tenants open and operating based on annualized base rent ( โ abr โ ) . all of our shopping centers include necessity-based tenants , with approximately 71.4 % of our tenants ( based on abr ) designated as โ essential businesses โ during the early stay-at-home period of the pandemic in the tri-state area or otherwise permitted to operate through curbside pick-up and other modified operating procedures in accordance with state guidelines . these essential businesses are 99.0 % open based on abr . approximately 84 % of our gla is located in properties anchored by grocery stores , pharmacies and wholesale clubs , 6 % of our gla is located in outdoor retail shopping centers adjacent to regional malls and 8 % of our gla is located in outdoor neighborhood convenience retail , with the remaining 2 % of our gla consisting of six suburban office buildings located in greenwich , connecticut and bronxville , new york , three retail bank branches and one childcare center . all six suburban office buildings are open with some restrictions on capacity based on state mandates and all of the retail bank branches are open . as of december 10 , 2020 , we have received payment of approximately 86.0 % , 83.3 % and 89.8 % of lease income , consisting of contractual base rent ( leases in place without consideration of any deferral or abatement agreements ) , common area maintenance reimbursement and real estate tax reimbursement billed , respectively , for april 2020 through october 2020 , the third quarter ( may through july ) of fiscal 2020 and the fourth quarter ( august through october ) of fiscal 2020 , not including the application of any security deposits . similar to other retail landlords across the united states , we received a number of requests for rent relief from tenants , with most requests received during the early days of the pandemic when stay-at-home orders were in place and many businesses were required to close , but we have continued to receive a smaller number of new requests even after businesses have re-opened , and in some cases , follow-on requests from tenants to whom we had already provided temporarily rent relief . we have been evaluating each request on a case-by-case basis to determine the best course of action , recognizing that in many cases some type of concession may be appropriate and beneficial to our long-term interests . in evaluating these requests , we have been considering many factors , including the tenant 's financial strength , the tenant 's operating history , potential co-tenancy impacts , the tenant 's contribution to the shopping center in which it operates , our assessment of the tenant 's long-term viability , the difficult or ease with which the tenant could be replaced , and other factors . although each negotiation has been specific to that tenant , most of these concessions have been in the form of deferred rent for some portion of rents due in april through december 2020 , or longer , to be paid back over the later part of the lease , preferably within a period of one year or less . in addition , some of these concessions have been in the form of rent abatements for some portion of tenant rents due in april through december or longer . story_separator_special_tag for example , it will likely be more difficult for us to acquire or sell properties in fiscal 2021 ( or possibly beyond ) , as it may be difficult to value a property correctly given changing circumstances . additionally , parties may be unwilling to enter into transactions during such uncertainty . we may also be less willing to enter into developments or capital improvements that require large amounts of upfront capital if the expected return is perceived as delayed or uncertain . we choose to borrow $ 35 million under our facility during march and april 2020 to enhance our liquidity position and maintain financial flexibility , which is an approach consistent with many of our peers . while we believe we still maintain a conservative capital structure and low debt levels , particularly relative to our peers , our profile may evolve based on changing needs . we expect that our rent collections will continue to be below our tenants ' contractual rent obligations at least for as long as governmental orders require non-essential businesses to restrict business operations and individuals to adhere to social distancing policies , or potentially until a medical solution is achieved for covid-19 . we will continue to accrue rental revenue during the deferral period , except for tenants for which revenue recognition was converted to cash basis accounting in accordance with asc topic 842. however , we anticipate that some tenants eventually will be unable to pay amounts due , and we will incur losses against our rent receivables . the extent and timing of the recognition of such losses will depend on future developments , which are highly uncertain and can not be predicted . april through november 2020 rental income collections and rent relief requests to date may not be indicative of collections or requests in any future period . we continue to have active discussions with existing and potential new tenants for new and renewed leases . however , the uncertainty relating to the covid-19 pandemic has slowed the pace of leasing activity and could result in higher vacancy rates than we otherwise would have experienced , a longer amount of time to fill vacancies and potentially lower rental rates . as a reit , we are susceptible to changes in interest rates , the lending environment , the availability of capital markets and the general economy . the impacts of any changes are difficult to predict , particularly during the course of the current covid-19 pandemic . 15 highlights of fiscal 2020 ; recent developments set forth below are highlights of our recent property acquisitions , other investments , property dispositions and financings : on november 1 , 2019 , we redeemed all of the outstanding shares of our series g cumulative preferred stock for $ 25 per share with proceeds from our sale of our series k cumulative preferred stock in october 2019. the total redemption amount was $ 75 million . in december 2019 , we closed on the sale of our property located in bernardsville , nj to an unrelated third party for a sale price of $ 2.7 million , pursuant to a contract we had entered into in august 2019 , as that property no longer met our investment objectives . in accordance with gaap , the property met all the criteria to be classified as held for sale in the fourth quarter of fiscal 2019 , and , accordingly , we recorded a loss on property held for sale of $ 434,000 , which loss was included in continuing operations in the consolidated statement of income for the year ended october 31 , 2019. the amount of the loss represented the net carrying amount of the property over the fair value of the asset less estimated cost to sell . upon completion of the sale in december 2019 , we realized an additional loss on sale of property of $ 86,000 , which loss is included in continuing operations in the consolidated statement of income for the year ended october 31 , 2020. this loss has been added back to our funds from operations ( โ ffo โ ) as discussed below in this item 7. in january 2020 , we sold for $ 1.3 million a retail property located in carmel , ny , as that property no longer met our investment objectives . in conjunction with the sale , we realized a loss on sale of property in the amount of $ 242,000 , which loss is included in continuing operations in the consolidated statement of income for the year ended october 31 , 2020. this loss has been added back to ffo as discussed below in this item 7. in january 2020 , we redeemed 2,250 units of ub new city i , llc from the noncontrolling member . the total cash price paid for the redemption was $ 49,500. as a result of the redemption , our ownership percentage of new city increased to 79.7 % from 78.2 % . in january 2020 , we redeemed 23,829 units of ub high ridge , llc from the noncontrolling member . the total cash price paid for the redemption was $ 560,000. as a result of the redemption , our ownership percentage of high ridge increased to 14.2 % from 13.3 % . in march and april 2020 , we borrowed an aggregate $ 35 million on our facility to fund capital improvements and for general corporate purposes . in june 2020 , we redeemed 6,750 units of ub new city i , llc from the noncontrolling member . the total cash price paid for the redemption was $ 148,500. as a result of the redemption , our ownership percentage of new city increased to 84.3 % from 79.7 % . in december 2020 ( fiscal 2021 ) , we closed on the sale of a 29,000 square foot portion of our property , which was recently converted into
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2,343 | the blackstone investment represented approximately 13.5 % ownership of the company as of january 31 , 2014. we believe this investment provides an opportunity to drive shareholder value and refine the strategic direction of the business . 35 the series a preferred stock ranks senior to our common stock with respect to dividend rights and rights on liquidation , winding-up and dissolution . holders of series a preferred stock are entitled to cumulative dividends payable quarterly in cash at a rate of 6 % per annum as well as any dividends declared or paid on common stock and are entitled to vote together with the holders of common stock on an as-converted basis . pursuant to the investment agreement , the series a preferred stock is subject to several different conversion features as well as redemption rights , which are at the option of the holder , the company or contingent events . the conversion rate is subject to customary anti-dilution and other adjustments subject to certain share caps and other restrictions . as a condition of the investment agreement , blackstone received rights to designate two out of eight members of the board of directors . as a result , stephen cannon and jeffrey margolis have resigned from the company 's board and blackstone 's two nominees , prakash melwani and gregg ribatt , have been added to the board of directors . the board of directors will remain at eight members . mr. melwani is currently a senior managing director at blackstone and chief investment officer of the firm 's private equity group ; mr. ribatt most recently served as the president and chief executive officer of collective brands performance + lifestyle group . in addition , on december 27 , 2013 , john mccarvel resigned from his position as president , chief executive officer and director of the company effective upon the earlier to occur of ( i ) april 30 , 2014 or ( ii ) the board of director 's appointment of his successor as ceo . in connection with his resignation , we entered into a separation agreement that will pay mr. mccarvel $ 2.1 million within one year of the effectiveness of his resignation . mr. mccarvel has agreed to continue in a consulting capacity with the company through april 30 , 2014 if his successor is appointed prior to such date . the separation payments are conditioned upon the effectiveness of mr. mccarvel 's release of claims in favor of the company and his compliance with the non-competition , non-solicitation and confidentiality covenants contained in the separation agreement . pursuant to the terms of the investment agreement , as amended , the board of directors formed a special committee on january 24 , 2014 and has granted to such committee the sole power and authority to identify , consider , assess , evaluate , research , and recommend individual nominees for the position of ceo of the company to replace mr. mccarvel . any recommendation from the search committee with respect to a chief executive officer nominee requires the unanimous consent of the members of the special committee , and the board of directors may not appoint a new ceo without the recommendation of the committee . the board of directors has appointed thomas smach , ronald frasch , peter jacobi and prakash melwani as members of the committee . 2013 financial highlights our results for fiscal year 2013 demonstrated our overall focus on becoming the leading brand in casual lifestyle footwear and delivering shareholder value through the balanced global expansion of our direct-to-consumer markets and wholesale partners , innovative product development and strategic financial decisions . we are committed to delivering fun , colorful and comfortable products to the global marketplace through efficient distribution channels with an emphasis on customer service . despite ongoing macroeconomic challenges around the globe , we delivered record revenues and footwear unit sales . our revenues increased 6.2 % to $ 1.2 billion and footwear unit sales increased 8.8 % to 54.3 million pairs sold . we specifically experienced exceptional growth and exceeded expectations in our asia pacific segment and saw marked improvement in our europe segment partially due to slow signs of macroeconomic recovery from prior years . our asia pacific segment remains a key component of the business and a fundamental driver of our growth strategy as all revenue channels experienced double-digit growth within the region . our europe segment experienced drastic improvement in 2013 compared to the prior year as we achieved growth in all three revenue channels . in addition to our 36 positive results , we faced several challenges in the current year relating to our americas and japan segments . specific challenges in our americas segment include wholesale accounts remaining lean on inventory and weak consumer confidence in the region as lingering effects of recessionary traffic and spending continue to impact retail markets . on a constant-currency basis , our japan segment performed on-par with the prior year ; however , limited ability for growth due to macroeconomic turmoil presented a major challenge for us in 2013 as we saw the japanese yen decline approximately 18.0 % on a year-to-date average basis compared to 2012. based solely on currency factors , our year-over-year revenues in our japan segment decreased $ 30.2 million . globally , we continued to focus on and expand our direct-to-consumer channel . on a constant-currency basis , our direct-to-consumer channel sales grew 10.8 % primarily through the addition of 82 global retail locations ( net of store closures ) partially offset by a decrease in global comparable store sales of 2.7 % due to lingering recessionary effects and weak consumer confidence in select markets . the expansion of our retail footprint has led to increased gross margins in the u.s. and other markets around the globe . story_separator_special_tag in addition , we recorded $ 0.3 million of goodwill impairment during the year ended december 31 , 2013 related to our crocs benelux b.v. business , which we purchased in july 2012. foreign currency transaction losses . the line item entitled 'foreign currency transaction losses , net ' is comprised of foreign currency gains and losses from the re-measurement and settlement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments . during the year ended december 31 , 2013 , losses on foreign currency transactions increased $ 2.2 million , or 87.1 % , compared to 2012. this increase is primarily related to an $ 8.0 million increase in net losses associated with exposure from day-to-day business transactions in various foreign currencies compared to 2012. this difference was partially offset by a $ 5.8 million increase in net gains associated with our derivative instruments and our ability to hedge foreign currency fluctuations through undesignated forward instruments compared to 2012. income tax expense . during the year ended december 31 , 2013 , income tax expense increased $ 35.3 million resulting in a 72.9 % increase in effective tax rate compared to 2012 , which was primarily the result of valuation allowances being recorded on net deferred tax assets in tax jurisdictions where we believe it is not more likely than not that those benefits will be realized and tax associated with our cash repatriation activities . our effective tax rate of 82.6 % for the year ended december 31 , 2013 differs from the federal u.s. statutory rate primarily because the result of valuation allowances being recorded on net deferred tax assets in tax jurisdictions where we believe it is not more likely than not that those benefits will be realized and tax associated with our cash repatriation activities . 43 comparison of the years ended december 31 , 2012 and 2011 replace_table_token_12_th revenues . during the year ended december 31 , 2012 , revenues increased $ 122.4 million , or 12.2 % , compared to 2011 , primarily due to an increase of 2.2 million , or 4.6 % , in global footwear unit sales and an increase of $ 1.51 , or 7.5 % , in footwear average selling price . for the year ended december 31 , 2012 , revenues from our wholesale channel increased $ 47.5 million , or 7.9 % , which was primarily driven by increased wholesale sales in americas and asia . revenues from our retail channel increased $ 68.2 million , or 22.2 % , primarily driven by strong demand in all three reportable segments as well as the continued growth of our retail presence by opening 107 company-operated stores ( net of store closures ) during the year . we closed certain kiosks as branded stores allowed us to better merchandise the full breadth and depth of our product line . revenues from our internet channel increased $ 6.7 million , or 7.0 % , compared to 2011 primarily driven by increased brand awareness in the americas and asia operating segments and focus on improving our regional webstore presence . impact on revenues due to foreign exchange rate fluctuations . changes in average foreign currency exchange rates used to translate revenues from our functional currencies to our reporting currency during the year ended december 31 , 2012 decreased our revenues by $ 18.0 million compared to 2011. the majority of this decrease was related to the decrease in value of the euro and the brazilian real compared to the u.s. dollar due to the political and macroeconomic environments in europe and brazil . 44 the following table summarizes our total revenue by channel for the years ended december 31 , 2012 and 2011 : replace_table_token_13_th ( 1 ) reflects year-over-year change as if the current period results were in `` constant currency , `` which is a non-gaap financial measure . see `` non-gaap financial measures `` below for more information . the table below illustrates the overall growth in the number of our company-operated retail locations by type of store and reportable operating segment as of december 31 , 2012 and 2011 : replace_table_token_14_th 45 the table below sets forth our comparable store sales growth by reportable operating segment for the year ended december 31 , 2012 as compared to 2011 : replace_table_token_15_th ( 1 ) comparable store sales is determined on a monthly basis . comparable store sales begin in the thirteenth month of a store 's operation . stores in which selling square footage has changed more than 15 % as a result of a remodel , expansion or reduction are excluded until the thirteenth month in which they have comparable prior year sales . temporarily closed stores are excluded from the comparable store sales calculation during the month of closure . location closures in excess of three months are excluded until the thirteenth month post re-opening . comparable store sales growth is calculated on a currency neutral basis using historical annual average currency rates . ( 2 ) reflects year-over-year change as if the current period results were in `` constant currency , `` which is a non-gaap financial measure . see `` non-gaap financial measures `` below for more information . gross profit . during the year ended december 31 , 2012 , gross profit increased $ 71.6 million , or 13.3 % , compared to 2011 , which was primarily attributable to the 4.6 % increase in sales volume and a 7.5 % increase in footwear average selling price . higher prices and sales volume are the result of the continued growth and expansion of our retail and internet channels as the growth in combined sales from these channels began to outpace our wholesale channel . these drivers were offset by higher costs primarily from the expansion of our product offerings in 2012 which utilized traditional materials , such as textile fabric and leather ,
| cash flows cash and cash equivalents at december 31 , 2013 increased 7.7 % to $ 317.1 million compared to $ 294.3 million at december 31 , 2012. the cash and cash equivalents balance has fluctuated throughout the year due in part to typical seasonal changes in working capital requirements . cash outflows consist of strategic reinvestments of excess cash into the business , including $ 68.8 million in net capital spending primarily related to our erp system implementation and global retail expansion and a $ 12.5 million repurchase of stock associated with board authorized repurchases ( further discussed below ) . cash inflows were primarily sourced from operating income and net proceeds from bank borrowings related to the implementation of our erp system . we anticipate that cash flows from operations will be sufficient to meet the ongoing needs of our business for the next twelve months . in order to provide additional liquidity in the future and to help support our strategic goals , we issued series a convertible preferred stock ( `` series a preferred stock '' ) to blackstone capital partners vi l.p. ( `` blackstone '' ) on january 27 , 2014 for net proceeds of approximately $ 182.2 million ( see sale of preferred stock below ) , we have a revolving credit facility with a syndicate of lenders , including pnc bank , national association ( `` pnc '' ) , which currently provides us with up to $ 100.0 million in borrowing capacity and matures in december 2017 ( see revolving credit facility below ) and we have the ability to finance portions of our erp system implementation through pnc equipment finance , llc ( `` pnc equipment '' ) ( see long term bank borrowings below ) . additional future financing may be necessary and there can be no assurance that , if needed , we will be able to secure additional debt or equity financing on terms acceptable to us or at all .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows cash and cash equivalents at december 31 , 2013 increased 7.7 % to $ 317.1 million compared to $ 294.3 million at december 31 , 2012. the cash and cash equivalents balance has fluctuated throughout the year due in part to typical seasonal changes in working capital requirements . cash outflows consist of strategic reinvestments of excess cash into the business , including $ 68.8 million in net capital spending primarily related to our erp system implementation and global retail expansion and a $ 12.5 million repurchase of stock associated with board authorized repurchases ( further discussed below ) . cash inflows were primarily sourced from operating income and net proceeds from bank borrowings related to the implementation of our erp system . we anticipate that cash flows from operations will be sufficient to meet the ongoing needs of our business for the next twelve months . in order to provide additional liquidity in the future and to help support our strategic goals , we issued series a convertible preferred stock ( `` series a preferred stock '' ) to blackstone capital partners vi l.p. ( `` blackstone '' ) on january 27 , 2014 for net proceeds of approximately $ 182.2 million ( see sale of preferred stock below ) , we have a revolving credit facility with a syndicate of lenders , including pnc bank , national association ( `` pnc '' ) , which currently provides us with up to $ 100.0 million in borrowing capacity and matures in december 2017 ( see revolving credit facility below ) and we have the ability to finance portions of our erp system implementation through pnc equipment finance , llc ( `` pnc equipment '' ) ( see long term bank borrowings below ) . additional future financing may be necessary and there can be no assurance that , if needed , we will be able to secure additional debt or equity financing on terms acceptable to us or at all .
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Suspicious Activity Report : the blackstone investment represented approximately 13.5 % ownership of the company as of january 31 , 2014. we believe this investment provides an opportunity to drive shareholder value and refine the strategic direction of the business . 35 the series a preferred stock ranks senior to our common stock with respect to dividend rights and rights on liquidation , winding-up and dissolution . holders of series a preferred stock are entitled to cumulative dividends payable quarterly in cash at a rate of 6 % per annum as well as any dividends declared or paid on common stock and are entitled to vote together with the holders of common stock on an as-converted basis . pursuant to the investment agreement , the series a preferred stock is subject to several different conversion features as well as redemption rights , which are at the option of the holder , the company or contingent events . the conversion rate is subject to customary anti-dilution and other adjustments subject to certain share caps and other restrictions . as a condition of the investment agreement , blackstone received rights to designate two out of eight members of the board of directors . as a result , stephen cannon and jeffrey margolis have resigned from the company 's board and blackstone 's two nominees , prakash melwani and gregg ribatt , have been added to the board of directors . the board of directors will remain at eight members . mr. melwani is currently a senior managing director at blackstone and chief investment officer of the firm 's private equity group ; mr. ribatt most recently served as the president and chief executive officer of collective brands performance + lifestyle group . in addition , on december 27 , 2013 , john mccarvel resigned from his position as president , chief executive officer and director of the company effective upon the earlier to occur of ( i ) april 30 , 2014 or ( ii ) the board of director 's appointment of his successor as ceo . in connection with his resignation , we entered into a separation agreement that will pay mr. mccarvel $ 2.1 million within one year of the effectiveness of his resignation . mr. mccarvel has agreed to continue in a consulting capacity with the company through april 30 , 2014 if his successor is appointed prior to such date . the separation payments are conditioned upon the effectiveness of mr. mccarvel 's release of claims in favor of the company and his compliance with the non-competition , non-solicitation and confidentiality covenants contained in the separation agreement . pursuant to the terms of the investment agreement , as amended , the board of directors formed a special committee on january 24 , 2014 and has granted to such committee the sole power and authority to identify , consider , assess , evaluate , research , and recommend individual nominees for the position of ceo of the company to replace mr. mccarvel . any recommendation from the search committee with respect to a chief executive officer nominee requires the unanimous consent of the members of the special committee , and the board of directors may not appoint a new ceo without the recommendation of the committee . the board of directors has appointed thomas smach , ronald frasch , peter jacobi and prakash melwani as members of the committee . 2013 financial highlights our results for fiscal year 2013 demonstrated our overall focus on becoming the leading brand in casual lifestyle footwear and delivering shareholder value through the balanced global expansion of our direct-to-consumer markets and wholesale partners , innovative product development and strategic financial decisions . we are committed to delivering fun , colorful and comfortable products to the global marketplace through efficient distribution channels with an emphasis on customer service . despite ongoing macroeconomic challenges around the globe , we delivered record revenues and footwear unit sales . our revenues increased 6.2 % to $ 1.2 billion and footwear unit sales increased 8.8 % to 54.3 million pairs sold . we specifically experienced exceptional growth and exceeded expectations in our asia pacific segment and saw marked improvement in our europe segment partially due to slow signs of macroeconomic recovery from prior years . our asia pacific segment remains a key component of the business and a fundamental driver of our growth strategy as all revenue channels experienced double-digit growth within the region . our europe segment experienced drastic improvement in 2013 compared to the prior year as we achieved growth in all three revenue channels . in addition to our 36 positive results , we faced several challenges in the current year relating to our americas and japan segments . specific challenges in our americas segment include wholesale accounts remaining lean on inventory and weak consumer confidence in the region as lingering effects of recessionary traffic and spending continue to impact retail markets . on a constant-currency basis , our japan segment performed on-par with the prior year ; however , limited ability for growth due to macroeconomic turmoil presented a major challenge for us in 2013 as we saw the japanese yen decline approximately 18.0 % on a year-to-date average basis compared to 2012. based solely on currency factors , our year-over-year revenues in our japan segment decreased $ 30.2 million . globally , we continued to focus on and expand our direct-to-consumer channel . on a constant-currency basis , our direct-to-consumer channel sales grew 10.8 % primarily through the addition of 82 global retail locations ( net of store closures ) partially offset by a decrease in global comparable store sales of 2.7 % due to lingering recessionary effects and weak consumer confidence in select markets . the expansion of our retail footprint has led to increased gross margins in the u.s. and other markets around the globe . story_separator_special_tag in addition , we recorded $ 0.3 million of goodwill impairment during the year ended december 31 , 2013 related to our crocs benelux b.v. business , which we purchased in july 2012. foreign currency transaction losses . the line item entitled 'foreign currency transaction losses , net ' is comprised of foreign currency gains and losses from the re-measurement and settlement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments . during the year ended december 31 , 2013 , losses on foreign currency transactions increased $ 2.2 million , or 87.1 % , compared to 2012. this increase is primarily related to an $ 8.0 million increase in net losses associated with exposure from day-to-day business transactions in various foreign currencies compared to 2012. this difference was partially offset by a $ 5.8 million increase in net gains associated with our derivative instruments and our ability to hedge foreign currency fluctuations through undesignated forward instruments compared to 2012. income tax expense . during the year ended december 31 , 2013 , income tax expense increased $ 35.3 million resulting in a 72.9 % increase in effective tax rate compared to 2012 , which was primarily the result of valuation allowances being recorded on net deferred tax assets in tax jurisdictions where we believe it is not more likely than not that those benefits will be realized and tax associated with our cash repatriation activities . our effective tax rate of 82.6 % for the year ended december 31 , 2013 differs from the federal u.s. statutory rate primarily because the result of valuation allowances being recorded on net deferred tax assets in tax jurisdictions where we believe it is not more likely than not that those benefits will be realized and tax associated with our cash repatriation activities . 43 comparison of the years ended december 31 , 2012 and 2011 replace_table_token_12_th revenues . during the year ended december 31 , 2012 , revenues increased $ 122.4 million , or 12.2 % , compared to 2011 , primarily due to an increase of 2.2 million , or 4.6 % , in global footwear unit sales and an increase of $ 1.51 , or 7.5 % , in footwear average selling price . for the year ended december 31 , 2012 , revenues from our wholesale channel increased $ 47.5 million , or 7.9 % , which was primarily driven by increased wholesale sales in americas and asia . revenues from our retail channel increased $ 68.2 million , or 22.2 % , primarily driven by strong demand in all three reportable segments as well as the continued growth of our retail presence by opening 107 company-operated stores ( net of store closures ) during the year . we closed certain kiosks as branded stores allowed us to better merchandise the full breadth and depth of our product line . revenues from our internet channel increased $ 6.7 million , or 7.0 % , compared to 2011 primarily driven by increased brand awareness in the americas and asia operating segments and focus on improving our regional webstore presence . impact on revenues due to foreign exchange rate fluctuations . changes in average foreign currency exchange rates used to translate revenues from our functional currencies to our reporting currency during the year ended december 31 , 2012 decreased our revenues by $ 18.0 million compared to 2011. the majority of this decrease was related to the decrease in value of the euro and the brazilian real compared to the u.s. dollar due to the political and macroeconomic environments in europe and brazil . 44 the following table summarizes our total revenue by channel for the years ended december 31 , 2012 and 2011 : replace_table_token_13_th ( 1 ) reflects year-over-year change as if the current period results were in `` constant currency , `` which is a non-gaap financial measure . see `` non-gaap financial measures `` below for more information . the table below illustrates the overall growth in the number of our company-operated retail locations by type of store and reportable operating segment as of december 31 , 2012 and 2011 : replace_table_token_14_th 45 the table below sets forth our comparable store sales growth by reportable operating segment for the year ended december 31 , 2012 as compared to 2011 : replace_table_token_15_th ( 1 ) comparable store sales is determined on a monthly basis . comparable store sales begin in the thirteenth month of a store 's operation . stores in which selling square footage has changed more than 15 % as a result of a remodel , expansion or reduction are excluded until the thirteenth month in which they have comparable prior year sales . temporarily closed stores are excluded from the comparable store sales calculation during the month of closure . location closures in excess of three months are excluded until the thirteenth month post re-opening . comparable store sales growth is calculated on a currency neutral basis using historical annual average currency rates . ( 2 ) reflects year-over-year change as if the current period results were in `` constant currency , `` which is a non-gaap financial measure . see `` non-gaap financial measures `` below for more information . gross profit . during the year ended december 31 , 2012 , gross profit increased $ 71.6 million , or 13.3 % , compared to 2011 , which was primarily attributable to the 4.6 % increase in sales volume and a 7.5 % increase in footwear average selling price . higher prices and sales volume are the result of the continued growth and expansion of our retail and internet channels as the growth in combined sales from these channels began to outpace our wholesale channel . these drivers were offset by higher costs primarily from the expansion of our product offerings in 2012 which utilized traditional materials , such as textile fabric and leather ,
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2,344 | 6 , โ shareholders ' equity โ . lastly , the company used funds for various capital projects , including those designated for the new meditrac products . those cash outflows were partially offset by income generated from operations during 2018 , as well as the receipt of the $ 1,600,000 cash bond described below . other long term assets were $ 1,307,000 and $ 3,079,000 at december 31 , 2018 and december 31 , 2017 , respectively , decreasing $ 1,772,000 ( 57.6 % ) . during may 2018 , the company received back the cash bond of approximately $ 1,600,000 , which was previously held as security during an appeals process as detailed in note 10 , commitments and contingencies . - 20 - results of operations twelve-months ended december 31 , 2018 vs. december 31 , 2017 the company reported comparative results from operations for the twelve-month period ended december 31 , 2018 and 2017 as follows : replace_table_token_4_th net sales . the company 's sales for the full year of 2018 were $ 108,313,000 , reflecting an increase of $ 6,514,000 , or 6.4 % , over $ 101,799,000 in 2017. the increase in sales resulted from an increase in unit volume , combined with higher sales prices that were necessary to help offset a rise in the company 's material costs . gross profit . the company 's gross profit margins increased slightly between the two periods , at 61.0 % and 60.7 % for the twelve-months ended december 31 , 2018 and 2017 , respectively . selling expenses . selling expenses consist primarily of employee salaries and associated overhead costs , commissions , and the cost of marketing programs such as advertising , trade shows and related communication costs , and freight . selling expense was $ 17,117,000 and $ 16,359,000 for 2018 and 2017 , respectively , representing a year over year increase of $ 758,000 , or 4.6 % . the increase was primarily attributable to an increase in freight and commissions , which change in conjunction with sales unit volume . for the same periods , selling expense as a percentage of net sales was 15.8 % and 16.1 % , respectively . general and administrative expenses . general and administrative expenses consist primarily of employee salaries , benefits for administrative , executive and finance personnel , legal and accounting , insurance , and corporate general and administrative services . general and administrative expenses were $ 17,800,000 and $ 17,897,000 for the years ended december 31 , 2018 and 2017 , respectively , decreasing $ 97,000 , or 0.5 % between periods . as a percentage of net sales , general and administrative expenses were 16.4 % and 17.6 % for the twelve-months ended december 31 , 2018 and 2017 , respectively . engineering expenses . engineering expenses consist of development expenses associated with the development of new products , and costs related to enhancements of existing products and manufacturing processes . engineering expenses increased $ 1,520,000 or 46.2 % between periods , being $ 4,813,000 and $ 3,293,000 for the years ended december 31 , 2018 and 2017 , respectively . the company had ramped up spend on experimental materials during 2018 , a majority of which related to the new meditrac products . the company also had additional staffing and consulting related charges . as a percentage of net sales for the year , engineering expenses were 4.4 % in 2018 and 3.2 % in 2017. operating profit . reflecting all of the factors mentioned above , operating profits increased $ 2,149,000 , or 8.9 % , between periods , ending with a profit of $ 26,366,000 in 2018 , compared to $ 24,217,000 in 2017. interest income . interest income is recorded on cash investments , and interest expense is recorded at times when the company has debt amounts outstanding on its line of credit . interest rates in general have improved in the market , and the company has therefore been able to purchase short-term investments during 2018 which resulted in an increase of interest income in excess of those generated from last year . there was $ 488,000 of interest income recorded during 2018 and $ 117,000 in 2017 . - 21 - other income ( expense ) . other income ( expense ) primarily consists of foreign currency exchange gains ( losses ) on transactions within our foreign subsidiaries , and therefore tends to fluctuate with the strengthening and or weakening of the british pound . the company recognized other expense of $ 126,000 and $ 38,000 during 2018 and 2017 , respectively . income tax expense . income tax expense was $ 6,451,000 during 2018 , compared to $ 8,450,000 in 2017 , decreasing by $ 1,999,000 , or 23.7 % . the company recognized a one-time tax charge of $ 709,000 during the fourth quarter of 2017 primarily related to unremitted foreign earnings resulting from the change in the tax code during the end of 2017 , described as the โ act โ , which is outlined in note 7 , โ income taxes โ . there was also a lower tax rate in effect during 2018 attributable to the act , which reduced the u.s. corporate tax rate from 35 % to 21 % , effective for the company 's 2018 tax year . the company 's tax provision also reflects other changes as a result of the act , including the impact of gilti provisions , and changes affecting the deductibility of certain executive compensation . the decrease in taxes attributable to the act , was partially offset by higher taxes associated with an increase in income before taxes . twelve-months ended december 31 , 2017 vs. december 31 , 2016 the company reported comparative results from operations for the twelve-month period ended december 31 , 2017 and 2016 as follows : replace_table_token_5_th net sales . story_separator_special_tag valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs . the standard creates a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows : level 1 inputs are quoted prices ( unadjusted ) in active markets for identical assets or liabilities ; level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability , either directly or indirectly ; and level 3 inputs are unobservable inputs that reflect the company 's own assumptions about the assumptions market participants would use in pricing the asset or liability . the company relies upon level 1 inputs in determining the fair value of investments and the fair value of the company 's reporting unit in its annual impairment test as described in the fasb asc topic 350 , intangibles - goodwill and other . - 26 - earnings per common share basic earnings per share have been computed using the weighted-average number of common shares outstanding . for the periods presented , there are no dilutive securities . consequently , basic and dilutive earnings per share are the same . currency translation assets and liabilities denominated in foreign currencies are translated into u.s. dollars at exchange rates prevailing on the balance sheet dates . the statements of operations are translated into u.s. dollars at average exchange rates for the period . adjustments resulting from the translation of financial statements are excluded from the determination of income and are accumulated in a separate component of shareholders ' equity . exchange gains and losses resulting from foreign currency transactions are included in the statements of operations ( other income ( expense ) ) in the period in which they occur . income taxes the company accounts for tax liabilities in accordance with the fasb asc topic 740 , income taxes . under this method the company recorded tax expense , related deferred taxes and tax benefits , and uncertainties in tax positions . deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the enactment date . a valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the company is able to realize the benefit , or that future deductibility is uncertain . the fasb asc topic 740 , income taxes , clarifies the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company 's financial statements . this guidance prescribes a recognition threshold of more-likely than-not , and a measurement attribute for all tax positions taken or expected to be taken on a tax return , in order for those tax positions to be recognized in the financial statements . the company follows the provisions of asc 740-10 relative to accounting for uncertainties in tax positions . these provisions provide guidance on the recognition , de-recognition and measurement of potential tax benefits associated with tax positions . the company reflected the effects of the tax cuts and jobs act ( the โ act โ ) , in its 2017 financial statements . this included the effects of the change in the us corporate tax rate from 35 % to 21 % on deferred tax assets and liabilities , and a provision related to previously deferred taxes on earnings of the company 's foreign subsidiary . the company 's tax expense for the period ended december 31 , 2018 includes the continuing effect of the reduction in the us corporate tax rate from 35 % to 21 % , effective for the company 's 2018 tax year . the company 's tax provision also reflects other changes as a result of the act , including the impact of the global intangible low taxed income ( โ gilti โ ) provisions , and changes affecting the deductibility of certain executive compensation . - 27 - story_separator_special_tag times , serif ; margin : 0 ; text-align : justify `` > recent accounting pronouncements in may 2014 , the fasb issued asu 2014-09 , revenue from contracts with customers ( topic 606 ) , requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers . the updated standard replaced most existing revenue recognition guidance in us gaap once it became effective and permitted the use of either a full retrospective or retrospective with cumulative effect transition method . the updated standard became effective for the company in the first quarter of fiscal year 2018. the company completed its review of its customer contracts and its analysis of the impact of the disclosure requirements of asu 2014-09 during 2017. the company has adopted the revenue guidance effective january 1 , 2018 , using the modified retrospective approach . the adoption of asu 2014-09 did not have a material impact on the company 's financial statements , and is not expected to have any material impact on an ongoing basis . although there is no material impact on the financial statements our accounting policy for revenue recognition has been updated as described previously in note 1 of the consolidated financial statements . in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) . under this asu , lessees are required
| liquidity and capital resources historically , the company 's primary cash needs have been related to working capital items , which the company has largely funded through cash generated from operations . with regards to liquidity and capital resources , the company had a cash balance of $ 32,392,000 and short-term investments of $ 14,944,000 at december 31 , 2018 , and also has the full use of a $ 15,000,000 line of credit available with santander bank , as discussed in detail in note 5 to the company 's financial statements . at december 31 , 2017 , the company had cash of $ 37,938,000 and did not hold any short-term investments . operating activities cash provided by operating activities is net income adjusted for certain non-cash items and changes in certain assets and liabilities , such as those included in working capital . for 2018 , the company 's cash provided from operating activities was $ 21,058,000 , compared to $ 18,048,000 of cash provided during 2017 , thus increasing by $ 3,010,000 between periods . for 2017 , the company 's cash provided from operating activities was $ 18,048,000 , compared to $ 14,758,000 of cash provided during 2016 , thus increasing by $ 3,290,000 between periods .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources historically , the company 's primary cash needs have been related to working capital items , which the company has largely funded through cash generated from operations . with regards to liquidity and capital resources , the company had a cash balance of $ 32,392,000 and short-term investments of $ 14,944,000 at december 31 , 2018 , and also has the full use of a $ 15,000,000 line of credit available with santander bank , as discussed in detail in note 5 to the company 's financial statements . at december 31 , 2017 , the company had cash of $ 37,938,000 and did not hold any short-term investments . operating activities cash provided by operating activities is net income adjusted for certain non-cash items and changes in certain assets and liabilities , such as those included in working capital . for 2018 , the company 's cash provided from operating activities was $ 21,058,000 , compared to $ 18,048,000 of cash provided during 2017 , thus increasing by $ 3,010,000 between periods . for 2017 , the company 's cash provided from operating activities was $ 18,048,000 , compared to $ 14,758,000 of cash provided during 2016 , thus increasing by $ 3,290,000 between periods .
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Suspicious Activity Report : 6 , โ shareholders ' equity โ . lastly , the company used funds for various capital projects , including those designated for the new meditrac products . those cash outflows were partially offset by income generated from operations during 2018 , as well as the receipt of the $ 1,600,000 cash bond described below . other long term assets were $ 1,307,000 and $ 3,079,000 at december 31 , 2018 and december 31 , 2017 , respectively , decreasing $ 1,772,000 ( 57.6 % ) . during may 2018 , the company received back the cash bond of approximately $ 1,600,000 , which was previously held as security during an appeals process as detailed in note 10 , commitments and contingencies . - 20 - results of operations twelve-months ended december 31 , 2018 vs. december 31 , 2017 the company reported comparative results from operations for the twelve-month period ended december 31 , 2018 and 2017 as follows : replace_table_token_4_th net sales . the company 's sales for the full year of 2018 were $ 108,313,000 , reflecting an increase of $ 6,514,000 , or 6.4 % , over $ 101,799,000 in 2017. the increase in sales resulted from an increase in unit volume , combined with higher sales prices that were necessary to help offset a rise in the company 's material costs . gross profit . the company 's gross profit margins increased slightly between the two periods , at 61.0 % and 60.7 % for the twelve-months ended december 31 , 2018 and 2017 , respectively . selling expenses . selling expenses consist primarily of employee salaries and associated overhead costs , commissions , and the cost of marketing programs such as advertising , trade shows and related communication costs , and freight . selling expense was $ 17,117,000 and $ 16,359,000 for 2018 and 2017 , respectively , representing a year over year increase of $ 758,000 , or 4.6 % . the increase was primarily attributable to an increase in freight and commissions , which change in conjunction with sales unit volume . for the same periods , selling expense as a percentage of net sales was 15.8 % and 16.1 % , respectively . general and administrative expenses . general and administrative expenses consist primarily of employee salaries , benefits for administrative , executive and finance personnel , legal and accounting , insurance , and corporate general and administrative services . general and administrative expenses were $ 17,800,000 and $ 17,897,000 for the years ended december 31 , 2018 and 2017 , respectively , decreasing $ 97,000 , or 0.5 % between periods . as a percentage of net sales , general and administrative expenses were 16.4 % and 17.6 % for the twelve-months ended december 31 , 2018 and 2017 , respectively . engineering expenses . engineering expenses consist of development expenses associated with the development of new products , and costs related to enhancements of existing products and manufacturing processes . engineering expenses increased $ 1,520,000 or 46.2 % between periods , being $ 4,813,000 and $ 3,293,000 for the years ended december 31 , 2018 and 2017 , respectively . the company had ramped up spend on experimental materials during 2018 , a majority of which related to the new meditrac products . the company also had additional staffing and consulting related charges . as a percentage of net sales for the year , engineering expenses were 4.4 % in 2018 and 3.2 % in 2017. operating profit . reflecting all of the factors mentioned above , operating profits increased $ 2,149,000 , or 8.9 % , between periods , ending with a profit of $ 26,366,000 in 2018 , compared to $ 24,217,000 in 2017. interest income . interest income is recorded on cash investments , and interest expense is recorded at times when the company has debt amounts outstanding on its line of credit . interest rates in general have improved in the market , and the company has therefore been able to purchase short-term investments during 2018 which resulted in an increase of interest income in excess of those generated from last year . there was $ 488,000 of interest income recorded during 2018 and $ 117,000 in 2017 . - 21 - other income ( expense ) . other income ( expense ) primarily consists of foreign currency exchange gains ( losses ) on transactions within our foreign subsidiaries , and therefore tends to fluctuate with the strengthening and or weakening of the british pound . the company recognized other expense of $ 126,000 and $ 38,000 during 2018 and 2017 , respectively . income tax expense . income tax expense was $ 6,451,000 during 2018 , compared to $ 8,450,000 in 2017 , decreasing by $ 1,999,000 , or 23.7 % . the company recognized a one-time tax charge of $ 709,000 during the fourth quarter of 2017 primarily related to unremitted foreign earnings resulting from the change in the tax code during the end of 2017 , described as the โ act โ , which is outlined in note 7 , โ income taxes โ . there was also a lower tax rate in effect during 2018 attributable to the act , which reduced the u.s. corporate tax rate from 35 % to 21 % , effective for the company 's 2018 tax year . the company 's tax provision also reflects other changes as a result of the act , including the impact of gilti provisions , and changes affecting the deductibility of certain executive compensation . the decrease in taxes attributable to the act , was partially offset by higher taxes associated with an increase in income before taxes . twelve-months ended december 31 , 2017 vs. december 31 , 2016 the company reported comparative results from operations for the twelve-month period ended december 31 , 2017 and 2016 as follows : replace_table_token_5_th net sales . story_separator_special_tag valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs . the standard creates a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows : level 1 inputs are quoted prices ( unadjusted ) in active markets for identical assets or liabilities ; level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability , either directly or indirectly ; and level 3 inputs are unobservable inputs that reflect the company 's own assumptions about the assumptions market participants would use in pricing the asset or liability . the company relies upon level 1 inputs in determining the fair value of investments and the fair value of the company 's reporting unit in its annual impairment test as described in the fasb asc topic 350 , intangibles - goodwill and other . - 26 - earnings per common share basic earnings per share have been computed using the weighted-average number of common shares outstanding . for the periods presented , there are no dilutive securities . consequently , basic and dilutive earnings per share are the same . currency translation assets and liabilities denominated in foreign currencies are translated into u.s. dollars at exchange rates prevailing on the balance sheet dates . the statements of operations are translated into u.s. dollars at average exchange rates for the period . adjustments resulting from the translation of financial statements are excluded from the determination of income and are accumulated in a separate component of shareholders ' equity . exchange gains and losses resulting from foreign currency transactions are included in the statements of operations ( other income ( expense ) ) in the period in which they occur . income taxes the company accounts for tax liabilities in accordance with the fasb asc topic 740 , income taxes . under this method the company recorded tax expense , related deferred taxes and tax benefits , and uncertainties in tax positions . deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the enactment date . a valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the company is able to realize the benefit , or that future deductibility is uncertain . the fasb asc topic 740 , income taxes , clarifies the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company 's financial statements . this guidance prescribes a recognition threshold of more-likely than-not , and a measurement attribute for all tax positions taken or expected to be taken on a tax return , in order for those tax positions to be recognized in the financial statements . the company follows the provisions of asc 740-10 relative to accounting for uncertainties in tax positions . these provisions provide guidance on the recognition , de-recognition and measurement of potential tax benefits associated with tax positions . the company reflected the effects of the tax cuts and jobs act ( the โ act โ ) , in its 2017 financial statements . this included the effects of the change in the us corporate tax rate from 35 % to 21 % on deferred tax assets and liabilities , and a provision related to previously deferred taxes on earnings of the company 's foreign subsidiary . the company 's tax expense for the period ended december 31 , 2018 includes the continuing effect of the reduction in the us corporate tax rate from 35 % to 21 % , effective for the company 's 2018 tax year . the company 's tax provision also reflects other changes as a result of the act , including the impact of the global intangible low taxed income ( โ gilti โ ) provisions , and changes affecting the deductibility of certain executive compensation . - 27 - story_separator_special_tag times , serif ; margin : 0 ; text-align : justify `` > recent accounting pronouncements in may 2014 , the fasb issued asu 2014-09 , revenue from contracts with customers ( topic 606 ) , requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers . the updated standard replaced most existing revenue recognition guidance in us gaap once it became effective and permitted the use of either a full retrospective or retrospective with cumulative effect transition method . the updated standard became effective for the company in the first quarter of fiscal year 2018. the company completed its review of its customer contracts and its analysis of the impact of the disclosure requirements of asu 2014-09 during 2017. the company has adopted the revenue guidance effective january 1 , 2018 , using the modified retrospective approach . the adoption of asu 2014-09 did not have a material impact on the company 's financial statements , and is not expected to have any material impact on an ongoing basis . although there is no material impact on the financial statements our accounting policy for revenue recognition has been updated as described previously in note 1 of the consolidated financial statements . in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) . under this asu , lessees are required
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2,345 | alport syndrome affects both children and adults and , in patients with the most severe forms of the disease , approximately 50 % progress to dialysis by age of 25 , 90 % by age 40 , and nearly 100 % by age 60. in the phase 2 portion of cardinal , bard demonstrated a statistically significant increase from baseline in mean egfr after 48 weeks of treatment in 25 patients . available historical data for 22 of these patients showed an average annual decline in egfr of 4.2 ml/min/1.73 m 2 in the three-year period prior to study entry . bard also demonstrated a statistically significant increase from baseline in mean egfr at week 52 after withdrawal of drug for four weeks . this retained egfr benefit is important because it provides compelling evidence that drug treatment will delay or prevent the need for dialysis or transplant . the fda has provided us with written guidance that , in patients with ckd caused by alport syndrome , an analysis of retained egfr demonstrating an improvement versus placebo after one year of bard treatment may support accelerated approval , and an improvement versus placebo after two years of treatment may support full approval . the phase 3 portion of cardinal is an international , multi-center , randomized , double-blind , placebo-controlled trial studying the safety and efficacy of bard in 157 alport syndrome patients randomized one-to-one to active drug or placebo . we have fully enrolled the phase 3 portion of cardinal , and we expect to have one year top-line results available in the second half of 2019. if the trial results are positive , we believe the results , together with other data from our development program , will be sufficient to form the basis of an nda submission to the fda seeking approval of bard for the treatment of ckd caused by alport syndrome . 94 we are currently initiating a phase 3 trial studying bard in patients with adpkd called falcon . adpkd is a rare and serious hereditary form of ckd caused by a genetic defect in genes called pkd1 or pkd2 and is characterized by the formation of fluid-filled cysts in the kidneys . adpkd is the most common single-gene disorder of the kidneys , and there are an estimated 400,000 patients in the united states , with approximately 140,000 patients diagnosed with the disease . during 2018 , we completed a phase 2 clinical trial studying bard in patients with adpkd . in the phase 2 study , bard demonstrated a statistically significant increase from baseline in mean egfr after 12 weeks of treatment in 31 patients . available historical data for 29 of these patients showed an average annual decline in egfr of 4.8 ml/min/1.73 m 2 in the three-year period prior to study entry . the fda has provided us with written guidance that , in patients with adpkd , an analysis of retained egfr demonstrating an improvement versus placebo after one year of bard treatment may support accelerated approval , and an improvement versus placebo after two years of treatment may support full approval . falcon is an international , multi-center , randomized , double-blind , placebo-controlled trial studying the safety and efficacy of bard in approximately 300 adpkd patients randomized one-to-one to active drug or placebo . we plan to enroll the first adpkd patient in falcon in mid-2019 . we collected phase 2 data studying bard in each of iga nephropathy ( igan ) , type 1 diabetic ckd ( t1d ckd ) , and focal segmental glomerulosclerosis ( fsgs ) . in each of these phase 2 studies , bard demonstrated a statistically significant increase from baseline in mean egfr after 12 weeks of treatment in patients whose available historical data showed annual declines in egfr in the three-year period prior to study entry . we plan to pursue each of these rare and serious forms of ckd as commercial indications . in addition to our ckd development programs , we are conducting a registrational phase 2 clinical trial , part 2 of moxie , studying our second nrf2 activator , omav , in patients with fa . fa is a rare , inherited , debilitating , and degenerative neuromuscular disorder caused by mutations in the gene for frataxin , a mitochondrial protein . patients with fa are typically dependent on wheelchair use 10 to 15 years after disease onset , and their median age of death is in the mid-30s . there are no currently approved therapies for the treatment of fa . in part 1 of moxie , at the optimal dose level , omav demonstrated a statistically significant improvement in modified friedreich 's ataxia rating scale ( mfars ) scores of 3.8 points ( p=0.0001 ) versus baseline and a placebo-corrected improvement in mfars scores of 2.3 points ( p=0.06 ) . part 2 of moxie is an international , multi-center , randomized , double-blind , placebo-controlled trial studying the safety and efficacy of omav in 103 fa patients randomized one-to-one to active drug or placebo . the fda has provided us with written guidance that the mfars score is acceptable as the primary endpoint for part 2 of moxie and that it may consider either accelerated or full approval based on the overall results of the trial and strength of the data . we have fully enrolled the trial , and we expect to have top-line data from the trial in the second half of 2019. if the trial results are positive , we believe the trial results , together with other data from our development program , will be sufficient to form the basis of an nda submission to the fda seeking approval of omav for the treatment of fa . we are also conducting a phase 3 trial studying bard in patients with ctd-pah called catalyst . story_separator_special_tag research and development expenses increased by 81 % during 2017 compared to 2016. the increase was primarily due to $ 23.9 million in expanded clinical and manufacturing activities , primarily for cardinal , catalyst , the extension trial for catalyst and lariat patients , part 2 of moxie , part 1 of motor , reveal , and phoenix , $ 2.9 million in increased preclinical and manufacturing activities in our rta 1701 , $ 4.0 million in personnel and equity compensation expenses to support growth in our development activities , and $ 0.8 million in increased medical affairs activities . research and development expenses , as a percentage of total expenses , was 75 % , 75 % , and 70 % , for 2018 , 2017 , and 2016 , respectively . the increase of 5 % during 2017 compared to 2016 was primarily due to increased clinical and manufacturing activity related to our registrational trials . general and administrative expenses general and administrative expenses increased by 41 % during 2018 compared to 2017. the increase was primarily due to $ 4.3 million in personnel , consulting , and equity compensation expenses to support growth in our development activities , $ 3.6 million sublicense fees and other expenses from the achievement of the khk milestone , and $ 2.2 million in commercial research activities . general and administrative expenses increased by 40 % during 2017 compared to 2016. the increase was primarily due to $ 4.7 million in personnel , consulting , and equity compensation expenses to support growth in our development activities , $ 0.9 million in commercial research activities , and $ 0.6 million in intellectual property costs due to additional validation of patents , new applications , national stage filings , and license fees . general and administrative expenses , as a percentage of total expenses , was 25 % , 24 % , and 29 % , for 2018 , 2017 , and 2016 , respectively . the decrease of 5 % during 2017 compared to 2016 was primarily due to the increase in research and development expenses for clinical and manufacturing activity related to our registrational trials . investment income the year-over-year increases in investment income during 2018 , 2017 , and 2016 were due to investment and interest income earned on cash equivalents . interest expense the year-over-year increases in interest expense during 2018 , 2017 , and 2016 were attributable to borrowing activities under our restated loan agreement entered in june 2018 and our loan agreement entered in march 2017. provision ( benefit ) for taxes the year-over-year changes in provision ( benefit ) for taxes during 2018 , 2017 , and 2016 were due to differences in income generated and changes in the valuation allowance . 101 liquidity and capital resources since our inception , we have funded our operations primarily through collaboration and license agreements , the sale of preferred and common stock , and secured loans . to date , we have raised gross cash proceeds of $ 476.6 million through the sale of convertible preferred stock and $ 780.0 million from payments under license and collaboration agreements . we also obtained $ 402.3 million in net proceeds from our ipo and follow-on offerings of our class a common stock and $ 77.2 million in net proceeds from our restated loan agreement . we have not generated any revenue from the sale of any products . as of december 31 , 2018 , we had available cash and cash equivalents of approximately $ 337.8 million . our cash and cash equivalents are invested in accordance with our investment policy , primarily with a view to liquidity and capital preservation . story_separator_special_tag $ 232.9 million , after deducting underwriting discounts and commissions and offering expenses . our longer term liquidity requirements will require us to raise additional capital , such as through additional equity or debt financings . our future capital requirements will depend on many factors , including the receipt of milestones under our current collaboration agreements and the timing of our expenditures related to clinical trials . we believe our existing cash and cash equivalents , combined with available future debt , will be sufficient to enable us to fund our operating expenses and capital expenditure requirements into 2021. however , we anticipate opportunistically raising additional capital before that time through equity offerings , collaboration or license agreements , or additional debt in order to maintain adequate capital reserves . in addition , we may choose to raise additional capital at any time for the further development of our existing product candidates and may also need to raise additional funds sooner to pursue other development activities related to additional product candidates . decisions about the timing or nature of any financing will be based on , among other things , our perception of our liquidity and of the market opportunity to raise equity or debt . additional securities may include common stock , preferred stock , or debt securities . we may explore strategic collaborations or license arrangements for certain of our earlier stage assets , including rta 901 and rta 1701. if we do explore any arrangements , there can be no assurance that any agreement will be reached , and we may determine to cease exploring a potential transaction for any or all of the assets at any time . if an agreement is reached , there can be no assurance that any such transaction would provide us with a material amount of additional capital resources . 103 until we can generate a sufficient amount of revenue from our product candidates , if ever , we expect to finance future cash needs through public or private equity or debt offerings , commercial loans , and collaboration or license transactions . additional capital may not be available on reasonable terms , if at all . if we are unable to raise additional capital in sufficient amounts or
| cash flows the following table sets forth the primary sources and uses of cash for the years ended december 31 : replace_table_token_12_th operating activities net cash used in operating activities was $ 83.8 million for the year ended december 31 , 2018 , consisting primarily of net loss of $ 80.5 million adjusted for non-cash items including stock-based compensation expense of $ 10.6 million , depreciation and amortization expense of $ 1.2 million , loss on extinguishment of debt of $ 1.0 million , and a net decrease in operating assets and liabilities of $ 16.1 million . the significant items in the change in operating assets and liabilities include an increase of prepaid expenses and other current assets of $ 1.1 million due to prepayments on trial and other operating expenses and reimbursements due from khk , an increase in accrued direct research and other current liabilities of $ 4.4 million due to clinical and manufacturing activities , an increase in accounts payable of $ 2.0 million due to timing of vendor payment , and a decrease in deferred revenue of $ 21.4 million . the decrease in deferred revenue relates to the ratable recognition of revenue over the expected term of the performance obligations under our collaboration agreements with abbvie and khk , which resulted in recognition of $ 51.4 million of license and milestone revenue , offset by the achievement of regulatory milestone of $ 30.0 million related to the khk agreement , which was recognized as deferred revenue . net cash used in operating activities was $ 83.3 million for the year ended december 31 , 2017 , consisting primarily of net loss of $ 47.7 million adjusted for non-cash items including stock-based compensation expense of $ 6.5 million , depreciation and amortization expense of $ 0.6 million , and a net decrease in operating assets and liabilities of $ 42.7 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the following table sets forth the primary sources and uses of cash for the years ended december 31 : replace_table_token_12_th operating activities net cash used in operating activities was $ 83.8 million for the year ended december 31 , 2018 , consisting primarily of net loss of $ 80.5 million adjusted for non-cash items including stock-based compensation expense of $ 10.6 million , depreciation and amortization expense of $ 1.2 million , loss on extinguishment of debt of $ 1.0 million , and a net decrease in operating assets and liabilities of $ 16.1 million . the significant items in the change in operating assets and liabilities include an increase of prepaid expenses and other current assets of $ 1.1 million due to prepayments on trial and other operating expenses and reimbursements due from khk , an increase in accrued direct research and other current liabilities of $ 4.4 million due to clinical and manufacturing activities , an increase in accounts payable of $ 2.0 million due to timing of vendor payment , and a decrease in deferred revenue of $ 21.4 million . the decrease in deferred revenue relates to the ratable recognition of revenue over the expected term of the performance obligations under our collaboration agreements with abbvie and khk , which resulted in recognition of $ 51.4 million of license and milestone revenue , offset by the achievement of regulatory milestone of $ 30.0 million related to the khk agreement , which was recognized as deferred revenue . net cash used in operating activities was $ 83.3 million for the year ended december 31 , 2017 , consisting primarily of net loss of $ 47.7 million adjusted for non-cash items including stock-based compensation expense of $ 6.5 million , depreciation and amortization expense of $ 0.6 million , and a net decrease in operating assets and liabilities of $ 42.7 million .
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Suspicious Activity Report : alport syndrome affects both children and adults and , in patients with the most severe forms of the disease , approximately 50 % progress to dialysis by age of 25 , 90 % by age 40 , and nearly 100 % by age 60. in the phase 2 portion of cardinal , bard demonstrated a statistically significant increase from baseline in mean egfr after 48 weeks of treatment in 25 patients . available historical data for 22 of these patients showed an average annual decline in egfr of 4.2 ml/min/1.73 m 2 in the three-year period prior to study entry . bard also demonstrated a statistically significant increase from baseline in mean egfr at week 52 after withdrawal of drug for four weeks . this retained egfr benefit is important because it provides compelling evidence that drug treatment will delay or prevent the need for dialysis or transplant . the fda has provided us with written guidance that , in patients with ckd caused by alport syndrome , an analysis of retained egfr demonstrating an improvement versus placebo after one year of bard treatment may support accelerated approval , and an improvement versus placebo after two years of treatment may support full approval . the phase 3 portion of cardinal is an international , multi-center , randomized , double-blind , placebo-controlled trial studying the safety and efficacy of bard in 157 alport syndrome patients randomized one-to-one to active drug or placebo . we have fully enrolled the phase 3 portion of cardinal , and we expect to have one year top-line results available in the second half of 2019. if the trial results are positive , we believe the results , together with other data from our development program , will be sufficient to form the basis of an nda submission to the fda seeking approval of bard for the treatment of ckd caused by alport syndrome . 94 we are currently initiating a phase 3 trial studying bard in patients with adpkd called falcon . adpkd is a rare and serious hereditary form of ckd caused by a genetic defect in genes called pkd1 or pkd2 and is characterized by the formation of fluid-filled cysts in the kidneys . adpkd is the most common single-gene disorder of the kidneys , and there are an estimated 400,000 patients in the united states , with approximately 140,000 patients diagnosed with the disease . during 2018 , we completed a phase 2 clinical trial studying bard in patients with adpkd . in the phase 2 study , bard demonstrated a statistically significant increase from baseline in mean egfr after 12 weeks of treatment in 31 patients . available historical data for 29 of these patients showed an average annual decline in egfr of 4.8 ml/min/1.73 m 2 in the three-year period prior to study entry . the fda has provided us with written guidance that , in patients with adpkd , an analysis of retained egfr demonstrating an improvement versus placebo after one year of bard treatment may support accelerated approval , and an improvement versus placebo after two years of treatment may support full approval . falcon is an international , multi-center , randomized , double-blind , placebo-controlled trial studying the safety and efficacy of bard in approximately 300 adpkd patients randomized one-to-one to active drug or placebo . we plan to enroll the first adpkd patient in falcon in mid-2019 . we collected phase 2 data studying bard in each of iga nephropathy ( igan ) , type 1 diabetic ckd ( t1d ckd ) , and focal segmental glomerulosclerosis ( fsgs ) . in each of these phase 2 studies , bard demonstrated a statistically significant increase from baseline in mean egfr after 12 weeks of treatment in patients whose available historical data showed annual declines in egfr in the three-year period prior to study entry . we plan to pursue each of these rare and serious forms of ckd as commercial indications . in addition to our ckd development programs , we are conducting a registrational phase 2 clinical trial , part 2 of moxie , studying our second nrf2 activator , omav , in patients with fa . fa is a rare , inherited , debilitating , and degenerative neuromuscular disorder caused by mutations in the gene for frataxin , a mitochondrial protein . patients with fa are typically dependent on wheelchair use 10 to 15 years after disease onset , and their median age of death is in the mid-30s . there are no currently approved therapies for the treatment of fa . in part 1 of moxie , at the optimal dose level , omav demonstrated a statistically significant improvement in modified friedreich 's ataxia rating scale ( mfars ) scores of 3.8 points ( p=0.0001 ) versus baseline and a placebo-corrected improvement in mfars scores of 2.3 points ( p=0.06 ) . part 2 of moxie is an international , multi-center , randomized , double-blind , placebo-controlled trial studying the safety and efficacy of omav in 103 fa patients randomized one-to-one to active drug or placebo . the fda has provided us with written guidance that the mfars score is acceptable as the primary endpoint for part 2 of moxie and that it may consider either accelerated or full approval based on the overall results of the trial and strength of the data . we have fully enrolled the trial , and we expect to have top-line data from the trial in the second half of 2019. if the trial results are positive , we believe the trial results , together with other data from our development program , will be sufficient to form the basis of an nda submission to the fda seeking approval of omav for the treatment of fa . we are also conducting a phase 3 trial studying bard in patients with ctd-pah called catalyst . story_separator_special_tag research and development expenses increased by 81 % during 2017 compared to 2016. the increase was primarily due to $ 23.9 million in expanded clinical and manufacturing activities , primarily for cardinal , catalyst , the extension trial for catalyst and lariat patients , part 2 of moxie , part 1 of motor , reveal , and phoenix , $ 2.9 million in increased preclinical and manufacturing activities in our rta 1701 , $ 4.0 million in personnel and equity compensation expenses to support growth in our development activities , and $ 0.8 million in increased medical affairs activities . research and development expenses , as a percentage of total expenses , was 75 % , 75 % , and 70 % , for 2018 , 2017 , and 2016 , respectively . the increase of 5 % during 2017 compared to 2016 was primarily due to increased clinical and manufacturing activity related to our registrational trials . general and administrative expenses general and administrative expenses increased by 41 % during 2018 compared to 2017. the increase was primarily due to $ 4.3 million in personnel , consulting , and equity compensation expenses to support growth in our development activities , $ 3.6 million sublicense fees and other expenses from the achievement of the khk milestone , and $ 2.2 million in commercial research activities . general and administrative expenses increased by 40 % during 2017 compared to 2016. the increase was primarily due to $ 4.7 million in personnel , consulting , and equity compensation expenses to support growth in our development activities , $ 0.9 million in commercial research activities , and $ 0.6 million in intellectual property costs due to additional validation of patents , new applications , national stage filings , and license fees . general and administrative expenses , as a percentage of total expenses , was 25 % , 24 % , and 29 % , for 2018 , 2017 , and 2016 , respectively . the decrease of 5 % during 2017 compared to 2016 was primarily due to the increase in research and development expenses for clinical and manufacturing activity related to our registrational trials . investment income the year-over-year increases in investment income during 2018 , 2017 , and 2016 were due to investment and interest income earned on cash equivalents . interest expense the year-over-year increases in interest expense during 2018 , 2017 , and 2016 were attributable to borrowing activities under our restated loan agreement entered in june 2018 and our loan agreement entered in march 2017. provision ( benefit ) for taxes the year-over-year changes in provision ( benefit ) for taxes during 2018 , 2017 , and 2016 were due to differences in income generated and changes in the valuation allowance . 101 liquidity and capital resources since our inception , we have funded our operations primarily through collaboration and license agreements , the sale of preferred and common stock , and secured loans . to date , we have raised gross cash proceeds of $ 476.6 million through the sale of convertible preferred stock and $ 780.0 million from payments under license and collaboration agreements . we also obtained $ 402.3 million in net proceeds from our ipo and follow-on offerings of our class a common stock and $ 77.2 million in net proceeds from our restated loan agreement . we have not generated any revenue from the sale of any products . as of december 31 , 2018 , we had available cash and cash equivalents of approximately $ 337.8 million . our cash and cash equivalents are invested in accordance with our investment policy , primarily with a view to liquidity and capital preservation . story_separator_special_tag $ 232.9 million , after deducting underwriting discounts and commissions and offering expenses . our longer term liquidity requirements will require us to raise additional capital , such as through additional equity or debt financings . our future capital requirements will depend on many factors , including the receipt of milestones under our current collaboration agreements and the timing of our expenditures related to clinical trials . we believe our existing cash and cash equivalents , combined with available future debt , will be sufficient to enable us to fund our operating expenses and capital expenditure requirements into 2021. however , we anticipate opportunistically raising additional capital before that time through equity offerings , collaboration or license agreements , or additional debt in order to maintain adequate capital reserves . in addition , we may choose to raise additional capital at any time for the further development of our existing product candidates and may also need to raise additional funds sooner to pursue other development activities related to additional product candidates . decisions about the timing or nature of any financing will be based on , among other things , our perception of our liquidity and of the market opportunity to raise equity or debt . additional securities may include common stock , preferred stock , or debt securities . we may explore strategic collaborations or license arrangements for certain of our earlier stage assets , including rta 901 and rta 1701. if we do explore any arrangements , there can be no assurance that any agreement will be reached , and we may determine to cease exploring a potential transaction for any or all of the assets at any time . if an agreement is reached , there can be no assurance that any such transaction would provide us with a material amount of additional capital resources . 103 until we can generate a sufficient amount of revenue from our product candidates , if ever , we expect to finance future cash needs through public or private equity or debt offerings , commercial loans , and collaboration or license transactions . additional capital may not be available on reasonable terms , if at all . if we are unable to raise additional capital in sufficient amounts or
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2,346 | given these uncertainties , we caution investors not to unduly rely on our forward-looking statements . we do not undertake any obligation to review or confirm analysts ' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events , except as required by applicable law or regulation . business overview & recent developments we are principally engaged in the development , manufacture and marketing of pharmaceutical products for human use in connection with a variety of high-incidence and high-mortality diseases and medical conditions prevalent in the people 's republic of china ( the โ prc โ ) . all of our operations are conducted in the prc , where our manufacturing facilities are located . we manufacture pharmaceutical products in the form of dry powder injectables , liquid injectables , tablets , capsules , and cephalosporin oral solutions . the majority of our pharmaceutical products are sold on a prescription basis and all have been approved for at least one or more therapeutic indications by the national medical products administration ( the โ nmpa โ , formerly china food and drug administration , or cfda ) based upon demonstrated safety and efficacy . the 2019 statistical communique on the development of china 's health and health industry shows that by the end of 2019 , the total number of medical and health institutions in china reached 1,007,545 , which represented an increase of 1,345 hospitals and 10,751 primary health care institutions compared with the condition in the previous year . there are 8.807 million beds in the national health care institutions by the end of 2019. public and private hospitals accounted for 72.5 % and 27.5 % , respectively , for the beds in all hospitals . the number of beds in health facilities per 1,000 population increased from 6.03 in 2018 to 6.30 in 2019. drug consistency evaluation is a drug quality requirement in china 's 12th five-year plan for drug safety , that is , the state requires generic drugs to be consistent with the quality and efficacy of their corresponding original drugs . china 's consistency evaluation of generic drugs had continued to proceed in 2020. the supporting policies from central and provincial governments have been constantly issued , including polices regarding consistency evaluation for injectable products . we have always taken the task of facilitating the consistency evaluation as our top priority , and worked on them actively . however , due to the continuous dynamic changes of the detailed policies , future market , expected investment , and return of investment ( โ roi โ ) for each drug 's consistency evaluation , the whole industry , including us , has been making slow progress in terms of the consistency evaluation . 36 we have taken a more cautious and flexible attitude towards the initiating and progressing of an existing product 's consistency evaluation and to cope with the changing macro environment of drug sales in china . on the one hand , since `` 4 + 7 `` ( refers to 11 selected pilot cities , including 4 municipalities and 7 other cities ) trial centralized procurement ( โ cp โ ) activities initiated in 2018 , four rounds of cpcp activities had been carried out by march 2021 , which significantly reduced the price of the drugs that won the bids . on the other hand , the consistency evaluation has been adopted as one of the qualification standards for participating in the cp activities . as a result , we need to balance at least the two factors above before making decisions for any products . we have a product that passed biological equivalents experiments of consistency evaluation in march 2021. we plan to submit relevant documentation and data to nmpa in the near future . in addition , we continue to explore in the field of comprehensive healthcare . comprehensive healthcare is a general concept proposed according to the development of the times , social needs and changes in disease spectrum . according to the outline of `` healthy china 2030 `` issued by chinese government in october 2016 , the total size of china 's health service industry will reach more than rmb 8 trillion by 2020 and rmb 16 trillion by 2030. this industry focuses on people 's daily life , aging and disease , pays attention to all kinds of risk factors and misunderstandings affecting health , and calls for self-health management , and advocates the comprehensive care of the entire process of life . it covers all kinds of health-related information , products and services , as well as actions taken by various organizations to meet the health needs . we launched noni enzyme , a natural , healthy and nutrition-rich food supplement at the end of 2018 , and wash-free sanitizer and masks in 2020 to address the market needs caused by covid-19 in china . in addition , we also actively responded to the market demand for covid-19 related products , and completed a one-time covid-19 tester export transaction in 2020. we will continue to optimize our product structure and actively respond to the current health needs of human beings . market trends as a generic drug company we are presented with a huge domestic market . we believe that through further upgrades and consistency evaluations , we will be able to meet the european and american production standards , which enables us to export our products to overseas markets . in the future , cost management and control ability will gradually become an important factor in determining the competitiveness of generic pharmaceutical enterprises . story_separator_special_tag 38 cost of revenue for the year ended december 31 , 2020 , our cost of revenue was $ 9.0 million , or 82.0 % of total revenue , which represented a decrease of $ 0.4 million from $ 9.4 million , or 86.4 % of total revenue , in 2019. this was mainly due to the impact of the one-time covid-19 tester transaction and the government relief for employees ' social insurance in 2020. gross profit and gross margin gross profit for the year ended december 31 , 2020 was $ 2.0 million , compared to $ 1.5 million in 2019. our gross profit margin in 2020 was 18.0 % compared to 13.6 % in 2019. this increase in our gross profit margin was mainly due to the impact of the one-time covid-19 tester transaction and the government relief for employees ' social insurance in 2020. selling expenses our selling expenses for the year ended december 31 , 2020 were $ 2.2 million , a decrease of $ 0.2 million compared to $ 2.4 million for the year ended december 31 , 2019. selling expenses accounted for 20.4 % of the total revenue in 2020 compared to 21.5 % in 2019. this decrease was mainly due to emergency quarantine measures which reduced business travel and marketing activities due to the covid-19 pandemic . general and administrative expenses our general and administrative expenses for the year ended december 31 , 2020 were $ 1.8 million , as compared to $ 2.3 million in 2019. general and administrative expenses accounted for 16.8 % and 21.0 % of our total revenues in 2020 and 2019 , respectively . this decrease was mainly due to lower travel and office costs due to the impact of covid-19 , as well as offsets for administrative costs from government subsidies . research and development expenses our research and development expenses for the year ended december 31 , 2020 was $ 0.38 million , compared to $ 0.23 million in 2019. research and development expenses accounted for 3.5 % and 2.1 % of our total revenues in 2020 and 2019 , respectively . these expenditures were mainly spent on the consistency evaluation of our existing products . impairment loss there was no impairment loss for the year ended december 31 , 2020. however , we recognized $ 17.02 million impairment loss for the year ended december 31 , 2019 , among which , there was an impairment loss for the advances made to laboratories for the year december 31 , 2019 in the amount of $ 17,015,117. as a pharmaceutical company , we have been focusing on the development and maintenance of our intangible assets , mainly in the form of medical formulas . the consistency evaluations discussed under the โ business overview & recent developments โ section hereof is expected to have a significant impact on all generic products not only in our pipeline , but also throughout the existing chinese market . after evaluating the detailed rules under this policy , in addition to the potential roi and our recent cash flow position , our management made certain assessments regarding the impairment of our intangible assets , and identified four formulas that would likely to be unable to generate positive cash flow in the foreseeable future and therefore recognized impairment loss on them accordingly as of december 31 , 2019. the management determined to impair all advances at december 31 , 2019 , but may resume the development of these formulas in the future if sufficient funding and other favorable conditions arise . bad debt expenses our bad debt expenses for the year ended december 31 , 2020 was $ 115,186 , as compared to $ 3,153 in 2019. this increase was mainly due to the write-off of accounts receivable from some customers who ceased operations due to the covid-19 outbreak in 2020. in general , our normal customer credit or payment terms are 90 days . this has not changed in recent years . due to the peculiar environment affecting the chinese pharmaceutical market , deferred payments to pharmaceutical companies by state-owned hospitals and local medicine distributors are common . the amount of net accounts receivable that were past due ( or the amount of accounts receivable that were more than 180 days old ) was $ 0.06 million and $ 0.15 million as of december 31 , 2020 and 2019 , respectively . 39 the following table illustrates our accounts receivable aging distribution in terms of the percentage of the total accounts receivable as of december 31 , 2020 and 2019 : replace_table_token_3_th our bad debt allowance estimate practice is that we consider accounts receivable balances aged within 180 days current , except for any individual uncollectible account assessed by management . we account for the following respective percentage as bad debt allowance based on age of the accounts receivables : 10 % of accounts receivable that are between 180 days and 365 days old , 70 % of accounts receivable that are between 365 days and 720 days old , and 100 % of accounts receivable that are greater than 720 days old . we recognize bad debt expenses per actual write-offs as well as changes of allowance for doubtful accounts . to the extent that our current allowance for doubtful accounts is higher than that of the previous period , we recognize a bad debt expense for the difference during the current period , and when the current allowance is lower than that of the previous period , we recognize a bad debt credit for the difference . the allowance for doubtful account balances were $ 18.2 million and $ 17.6 million as of december 31 , 2020 and december 31 , 2019 , respectively . the changes in the allowances for doubtful accounts during the years ended december 31 , 2020 and 2019 were as follows : replace_table_token_4_th loss from operations our operating loss for the year ended december 31
| liquidity and capital resources our principal source of liquidity is cash generated from operations and bank lines of credit . in addition to the aggregated advance of $ 724,963 from our ceo in 2019 , we received some temporary advances from and made several repayments to her in 2020. as of december 31 , 2020 , the aggregated advance from our ceo was $ 740,316 for use in operations . our cash and cash equivalents were $ 1.0 million , representing 4.5 % of our total assets , as of december 31 , 2020 , as compared to $ 1.1 million , representing 4.8 % of our total assets as of december 31 , 2019. all of the $ 1.0 million of cash and cash equivalents as of december 31 , 2020 are considered to be reinvested indefinitely in the company 's chinese subsidiary , helpson and is not expected to be available for payment of dividends or for other payments to its parent company or to its shareholders . in april 2020 , the company obtained a line of credit from postal savings bank of china for an aggregate amount of rmb 10,000,000 ( approximately $ 1.4 million ) , of which rmb 8,000,000 ( approximately $ 1.2 million ) have been advanced at december 31 , 2020. the loan bears interest at a rate of 4.25 % per annum . advances on the line of credit shall be repaid in installments semi-annually for two years from the date of the advance ; the first repayment of rmb 500,000 ( approximately $ 0.07 million ) was made on october 20 , 2020 , and the second repayment of rmb 300,000 ( approximately $ 0.06 million ) was made in january 2021. the company has an additional rmb 2,000,000 ( approximately $ 0.3 million ) available under the line , subject to a risk review and approval by the third party guarantee company . on june 30 , 2020 the company obtained a line of credit with bank of communications for an aggregate amount of rmb 8,500,000 ( approximately $ 1.3 million ) , all of which have been advanced . the loan bears interest at a rate of 4.05 % per annum .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources our principal source of liquidity is cash generated from operations and bank lines of credit . in addition to the aggregated advance of $ 724,963 from our ceo in 2019 , we received some temporary advances from and made several repayments to her in 2020. as of december 31 , 2020 , the aggregated advance from our ceo was $ 740,316 for use in operations . our cash and cash equivalents were $ 1.0 million , representing 4.5 % of our total assets , as of december 31 , 2020 , as compared to $ 1.1 million , representing 4.8 % of our total assets as of december 31 , 2019. all of the $ 1.0 million of cash and cash equivalents as of december 31 , 2020 are considered to be reinvested indefinitely in the company 's chinese subsidiary , helpson and is not expected to be available for payment of dividends or for other payments to its parent company or to its shareholders . in april 2020 , the company obtained a line of credit from postal savings bank of china for an aggregate amount of rmb 10,000,000 ( approximately $ 1.4 million ) , of which rmb 8,000,000 ( approximately $ 1.2 million ) have been advanced at december 31 , 2020. the loan bears interest at a rate of 4.25 % per annum . advances on the line of credit shall be repaid in installments semi-annually for two years from the date of the advance ; the first repayment of rmb 500,000 ( approximately $ 0.07 million ) was made on october 20 , 2020 , and the second repayment of rmb 300,000 ( approximately $ 0.06 million ) was made in january 2021. the company has an additional rmb 2,000,000 ( approximately $ 0.3 million ) available under the line , subject to a risk review and approval by the third party guarantee company . on june 30 , 2020 the company obtained a line of credit with bank of communications for an aggregate amount of rmb 8,500,000 ( approximately $ 1.3 million ) , all of which have been advanced . the loan bears interest at a rate of 4.05 % per annum .
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Suspicious Activity Report : given these uncertainties , we caution investors not to unduly rely on our forward-looking statements . we do not undertake any obligation to review or confirm analysts ' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events , except as required by applicable law or regulation . business overview & recent developments we are principally engaged in the development , manufacture and marketing of pharmaceutical products for human use in connection with a variety of high-incidence and high-mortality diseases and medical conditions prevalent in the people 's republic of china ( the โ prc โ ) . all of our operations are conducted in the prc , where our manufacturing facilities are located . we manufacture pharmaceutical products in the form of dry powder injectables , liquid injectables , tablets , capsules , and cephalosporin oral solutions . the majority of our pharmaceutical products are sold on a prescription basis and all have been approved for at least one or more therapeutic indications by the national medical products administration ( the โ nmpa โ , formerly china food and drug administration , or cfda ) based upon demonstrated safety and efficacy . the 2019 statistical communique on the development of china 's health and health industry shows that by the end of 2019 , the total number of medical and health institutions in china reached 1,007,545 , which represented an increase of 1,345 hospitals and 10,751 primary health care institutions compared with the condition in the previous year . there are 8.807 million beds in the national health care institutions by the end of 2019. public and private hospitals accounted for 72.5 % and 27.5 % , respectively , for the beds in all hospitals . the number of beds in health facilities per 1,000 population increased from 6.03 in 2018 to 6.30 in 2019. drug consistency evaluation is a drug quality requirement in china 's 12th five-year plan for drug safety , that is , the state requires generic drugs to be consistent with the quality and efficacy of their corresponding original drugs . china 's consistency evaluation of generic drugs had continued to proceed in 2020. the supporting policies from central and provincial governments have been constantly issued , including polices regarding consistency evaluation for injectable products . we have always taken the task of facilitating the consistency evaluation as our top priority , and worked on them actively . however , due to the continuous dynamic changes of the detailed policies , future market , expected investment , and return of investment ( โ roi โ ) for each drug 's consistency evaluation , the whole industry , including us , has been making slow progress in terms of the consistency evaluation . 36 we have taken a more cautious and flexible attitude towards the initiating and progressing of an existing product 's consistency evaluation and to cope with the changing macro environment of drug sales in china . on the one hand , since `` 4 + 7 `` ( refers to 11 selected pilot cities , including 4 municipalities and 7 other cities ) trial centralized procurement ( โ cp โ ) activities initiated in 2018 , four rounds of cpcp activities had been carried out by march 2021 , which significantly reduced the price of the drugs that won the bids . on the other hand , the consistency evaluation has been adopted as one of the qualification standards for participating in the cp activities . as a result , we need to balance at least the two factors above before making decisions for any products . we have a product that passed biological equivalents experiments of consistency evaluation in march 2021. we plan to submit relevant documentation and data to nmpa in the near future . in addition , we continue to explore in the field of comprehensive healthcare . comprehensive healthcare is a general concept proposed according to the development of the times , social needs and changes in disease spectrum . according to the outline of `` healthy china 2030 `` issued by chinese government in october 2016 , the total size of china 's health service industry will reach more than rmb 8 trillion by 2020 and rmb 16 trillion by 2030. this industry focuses on people 's daily life , aging and disease , pays attention to all kinds of risk factors and misunderstandings affecting health , and calls for self-health management , and advocates the comprehensive care of the entire process of life . it covers all kinds of health-related information , products and services , as well as actions taken by various organizations to meet the health needs . we launched noni enzyme , a natural , healthy and nutrition-rich food supplement at the end of 2018 , and wash-free sanitizer and masks in 2020 to address the market needs caused by covid-19 in china . in addition , we also actively responded to the market demand for covid-19 related products , and completed a one-time covid-19 tester export transaction in 2020. we will continue to optimize our product structure and actively respond to the current health needs of human beings . market trends as a generic drug company we are presented with a huge domestic market . we believe that through further upgrades and consistency evaluations , we will be able to meet the european and american production standards , which enables us to export our products to overseas markets . in the future , cost management and control ability will gradually become an important factor in determining the competitiveness of generic pharmaceutical enterprises . story_separator_special_tag 38 cost of revenue for the year ended december 31 , 2020 , our cost of revenue was $ 9.0 million , or 82.0 % of total revenue , which represented a decrease of $ 0.4 million from $ 9.4 million , or 86.4 % of total revenue , in 2019. this was mainly due to the impact of the one-time covid-19 tester transaction and the government relief for employees ' social insurance in 2020. gross profit and gross margin gross profit for the year ended december 31 , 2020 was $ 2.0 million , compared to $ 1.5 million in 2019. our gross profit margin in 2020 was 18.0 % compared to 13.6 % in 2019. this increase in our gross profit margin was mainly due to the impact of the one-time covid-19 tester transaction and the government relief for employees ' social insurance in 2020. selling expenses our selling expenses for the year ended december 31 , 2020 were $ 2.2 million , a decrease of $ 0.2 million compared to $ 2.4 million for the year ended december 31 , 2019. selling expenses accounted for 20.4 % of the total revenue in 2020 compared to 21.5 % in 2019. this decrease was mainly due to emergency quarantine measures which reduced business travel and marketing activities due to the covid-19 pandemic . general and administrative expenses our general and administrative expenses for the year ended december 31 , 2020 were $ 1.8 million , as compared to $ 2.3 million in 2019. general and administrative expenses accounted for 16.8 % and 21.0 % of our total revenues in 2020 and 2019 , respectively . this decrease was mainly due to lower travel and office costs due to the impact of covid-19 , as well as offsets for administrative costs from government subsidies . research and development expenses our research and development expenses for the year ended december 31 , 2020 was $ 0.38 million , compared to $ 0.23 million in 2019. research and development expenses accounted for 3.5 % and 2.1 % of our total revenues in 2020 and 2019 , respectively . these expenditures were mainly spent on the consistency evaluation of our existing products . impairment loss there was no impairment loss for the year ended december 31 , 2020. however , we recognized $ 17.02 million impairment loss for the year ended december 31 , 2019 , among which , there was an impairment loss for the advances made to laboratories for the year december 31 , 2019 in the amount of $ 17,015,117. as a pharmaceutical company , we have been focusing on the development and maintenance of our intangible assets , mainly in the form of medical formulas . the consistency evaluations discussed under the โ business overview & recent developments โ section hereof is expected to have a significant impact on all generic products not only in our pipeline , but also throughout the existing chinese market . after evaluating the detailed rules under this policy , in addition to the potential roi and our recent cash flow position , our management made certain assessments regarding the impairment of our intangible assets , and identified four formulas that would likely to be unable to generate positive cash flow in the foreseeable future and therefore recognized impairment loss on them accordingly as of december 31 , 2019. the management determined to impair all advances at december 31 , 2019 , but may resume the development of these formulas in the future if sufficient funding and other favorable conditions arise . bad debt expenses our bad debt expenses for the year ended december 31 , 2020 was $ 115,186 , as compared to $ 3,153 in 2019. this increase was mainly due to the write-off of accounts receivable from some customers who ceased operations due to the covid-19 outbreak in 2020. in general , our normal customer credit or payment terms are 90 days . this has not changed in recent years . due to the peculiar environment affecting the chinese pharmaceutical market , deferred payments to pharmaceutical companies by state-owned hospitals and local medicine distributors are common . the amount of net accounts receivable that were past due ( or the amount of accounts receivable that were more than 180 days old ) was $ 0.06 million and $ 0.15 million as of december 31 , 2020 and 2019 , respectively . 39 the following table illustrates our accounts receivable aging distribution in terms of the percentage of the total accounts receivable as of december 31 , 2020 and 2019 : replace_table_token_3_th our bad debt allowance estimate practice is that we consider accounts receivable balances aged within 180 days current , except for any individual uncollectible account assessed by management . we account for the following respective percentage as bad debt allowance based on age of the accounts receivables : 10 % of accounts receivable that are between 180 days and 365 days old , 70 % of accounts receivable that are between 365 days and 720 days old , and 100 % of accounts receivable that are greater than 720 days old . we recognize bad debt expenses per actual write-offs as well as changes of allowance for doubtful accounts . to the extent that our current allowance for doubtful accounts is higher than that of the previous period , we recognize a bad debt expense for the difference during the current period , and when the current allowance is lower than that of the previous period , we recognize a bad debt credit for the difference . the allowance for doubtful account balances were $ 18.2 million and $ 17.6 million as of december 31 , 2020 and december 31 , 2019 , respectively . the changes in the allowances for doubtful accounts during the years ended december 31 , 2020 and 2019 were as follows : replace_table_token_4_th loss from operations our operating loss for the year ended december 31
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2,347 | in addition , $ 19,000 in non-cash other-than-temporary impairment ( โ otti โ ) charges were realized for the year ended december 31 , 2011 , compared to $ 8.4 million for the same period of 2010. during 2011 , we also recognized a gain of $ 1.4 million from the sale of a portion of the indirect auto loan portfolio . the decreases in expenses and the gain on the sale of indirect auto loans were offset by a decrease of $ 7.4 million in income tax benefit and a decline in net interest income of $ 3.3 million . the decrease in net interest income was driven by an $ 11.7 million reduction in interest income on a fully tax-equivalent ( โ fte โ ) basis attributable to lower levels of loans , the sale of a portion of the indirect auto portfolio and the lower interest rate environment . the net interest margin for the year ended december 31 , 2011 , on an fte basis , increased to 2.96 % from 2.71 % for the year ended december 31 , 2010. the increase in the net interest margin was driven primarily by the strategic plan to reduce cash levels by paying off certain liabilities that matured during 2011 and to change the composition of our deposit mix , focusing on lower cost core deposits . the provision for loan losses was $ 9.2 million for the year ended december 31 , 2011 , compared to $ 15.7 million for fiscal year 2010. the lower provision expense was primarily due to a leveling in the credit quality of our loan portfolio . management continued to make specific allocations for impaired loans where it was determined that the collateral supporting the loans is not adequate to cover the loan balance , and management adjusted the qualitative factors affecting the allowance for loan losses ( the โ all โ ) to reflect changes in the economic environment . [ 25 ] interest expense on our interest-bearing liabilities decreased $ 8.0 million during 2011 when compared to 2010 due primarily to a planned decrease of $ 260.1 million in average interest-bearing deposits and a $ 39.1 million decrease in average debt outstanding . management used cash to repay wholesale deposits and fhlb advances . the decline in expense was also due to the low interest rate environment and our strategy to provide special pricing only to full relationship customers . other operating income increased $ 14.7 million during 2011 when compared to 2010. this increase was primarily attributable to an $ 8.4 million decrease in non-cash credit-related otti charges , and a decrease of $ 6.1 million in net losses related to sales of securities , sales and write downs of other real estate owned and a gain recognized on the sale of a portion of the indirect auto loan portfolio . operating expenses decreased $ 3.2 million during 2011 when compared to the same period of 2010. this decrease was due primarily to a $ 1.1 million decline in salaries and benefits related to a reduction in full-time equivalents through attrition and reduced pension expense and a decline of $ 1.7 million in fdic premiums attributable to the repayment of brokered deposits . comparing december 31 , 2011 to december 31 , 2010 , outstanding loans decreased by $ 38.6 million ( 3.8 % ) , net of the sale of $ 32.5 million of the indirect auto portfolio . cre loans decreased $ 12.4 million as a result of the payoff of several large loans , charge-offs of loan balances and ongoing scheduled principal payments . commercial and industrial ( โ c & i โ ) loans increased $ 8.7 million and residential mortgages declined $ 9.5 million . acquisition and development loans decreased $ 14.0 million due to principal repayments and charge offs . the decrease in the residential mortgage portfolio was attributable to regularly scheduled principal payments on existing loans and management 's decision to use secondary market outlets such as fannie mae for the majority of new , longer-term , fixed-rate residential loan originations . the consumer loan portfolio declined $ 43.9 million due primarily to the sale of $ 32.5 million of retail installment contracts in our indirect auto loan portfolio and $ 11.4 million of repayment activity in the indirect auto portfolio which exceeded new production due to special financing offered by the automotive manufacturers , credit unions and certain large regional banks . at december 31 , 2011 , approximately 64 % of the commercial loan portfolio was collateralized by real estate , compared to approximately 71 % at december 31 , 2010. interest income on loans in 2011 decreased by $ 8.8 million ( on an fte basis ) when compared to 2010 due to the decrease in interest rates and the decline the in loan balances during 2011. interest income on the investment securities decreased by $ 2.7 million ( on an fte basis ) due to reinvesting called securities at lower rates . ( additional information on the composition of interest income is available in table 1 that appears on page 32 ) . total deposits decreased $ 273.9 million during 2011 when compared to deposits at december 31 , 2010. the decline in deposits was due to a strategic decision to use cash to repay wholesale deposits and fhlb advances . the repayment of approximately $ 161 million in wholesale deposits was offset by increases of $ 28.7 million in non-interest bearing deposits , $ 9.0 million in traditional savings accounts and $ 2.1 million in retail money market accounts . time deposits less than $ 100,000 declined $ 62.3 million while time deposits greater than $ 100,000 decreased $ 196.9 million . the decrease was due to a $ 160.4 million decline in brokered certificates of deposit and cdars ยฎ participation , and a decrease of $ 36.5 million in retail certificates of deposit . story_separator_special_tag pension expense and the determination of our projected pension liability are based upon two critical assumptions : the discount rate and the expected return on plan assets . we evaluate each of these [ 29 ] critical assumptions annually . other assumptions impact the determination of pension expense and the projected liability including the primary employee demographics , such as retirement patterns , employee turnover , mortality rates , and estimated employer compensation increases . these factors , along with the critical assumptions , are carefully reviewed by management each year in consultation with our pension plan consultants and actuaries . further information about our pension plan assumptions , the plan 's funded status , and other plan information is included in note 17 to the consolidated financial statements . other than as discussed above , management does not believe that any material changes in our critical accounting policies have occurred since december 31 , 2010. adoption of new accounting standards and effects of new accounting pronouncements note 1 to the consolidated financial statements discusses new accounting pronouncements that , when adopted , could affect our future consolidated financial statements . consolidated statement of income review net interest income net interest income is our largest source of operating revenue . net interest income is the difference between the interest earned on interest-earning assets and the interest expense incurred on interest-bearing liabilities . for analytical and discussion purposes , net interest income is adjusted to an fte basis to facilitate performance comparisons between taxable and tax-exempt assets by increasing tax-exempt income by an amount equal to the federal income taxes that would have been paid if this income were taxable at the statutorily applicable rate . the table below summarizes net interest income ( on a fully taxable equivalent basis ) for the 2011 and 2010. replace_table_token_10_th net interest income on an fte basis decreased $ 3.7 million during the year ended december 31 , 2011 over the same period in 2010 due to an $ 11.7 million ( 16.1 % ) decrease in interest income , which was partially offset by an $ 8.0 million ( 27.3 % ) decrease in interest expense . the decrease in net interest income resulted primarily from a lower level of loans and the lower interest rate environment in 2011 when compared to 2010. average interest-earning assets decreased by $ 264.7 million during 2011. the average yield on our average earning assets increased slightly to 4.54 % at december 31 , 2011 from 4.52 % at december 31 , 2010. this increase was due primarily to our strategy to deploy excess liquidity , invested at lower rates , to repay brokered and wholesale funding at their stated maturities rather than renew . interest expense decreased during 2011 when compared to 2010 due to an overall reduction in interest rates paid on time deposits , driven by our decision to provide special rates only to full relationship customers , as well as lower balances and the shorter duration of the portfolio . the overall decrease of $ 299.2 million in average interest-bearing liabilities in 2011 when compared to 2010 decreased the average rate paid from 1.89 % at december 31 , 2010 to 1.71 % at december 31 , 2011. as shown below , the composition of total interest income between 2011 and 2010 reflects a slight shift toward interest and fees on loans from investment securities . [ 30 ] replace_table_token_11_th table 1 sets forth the average balances , net interest income and expense , and average yields and rates for our interest-earning assets and interest-bearing liabilities for 2011 , 2010 and 2009. table 2 sets forth an analysis of volume and rate changes in interest income and interest expense of our average interest-earning assets and average interest-bearing liabilities for 2011 , 2010 and 2009. table 2 distinguishes between the changes related to average outstanding balances ( changes in volume created by holding the interest rate constant ) and the changes related to average interest rates ( changes in interest income or expense attributed to average rates created by holding the outstanding balance constant ) . [ 31 ] distribution of assets , liabilities and shareholders ' equity interest rates and interest differential โ tax equivalent basis table 1 replace_table_token_12_th notes : ( 1 ) the above table reflects the average rates earned or paid stated on an fte basis assuming a tax rate of 35 % for 2011 , 2010 and 2009. the fte adjustments for the years ended december 31 , 2011 , 2010 and 2009 were $ 1,533 , $ 1,983 and $ 1,613 , respectively . ( 2 ) the average balances of non-accrual loans for the years ended december 31 , 2011 , 2010 and 2009 , which were reported in the average loan balances for these years , were $ 39,806 , $ 42,506 and $ 39,851 , respectively . ( 3 ) net interest margin is calculated as net interest income divided by average earning assets . ( 4 ) the average yields on investments are based on amortized cost . [ 32 ] interest variance analysis ( 1 ) table 2 replace_table_token_13_th note : ( 1 ) the change in interest income/expense due to both volume and rate has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each . provision for loan losses the provision for loan losses was $ 9.2 million for the year ended december 31 , 2011 , compared to $ 15.7 million for fiscal year 2010. the lower provision for loan losses resulted primarily from stabilization in our total rolling historical loss rates and qualitative factors utilized in the determination of the all and stabilization in the level of classified assets . approximately $ .6 million of the lower provision for 2011 was related to the sale of $ 32.5 million of our indirect auto portfolio in the second
| capital resources the bank and first united corporation are subject to risk-based capital regulations , which were adopted and are monitored by federal banking regulators . these regulations are used to evaluate capital adequacy and require an analysis of an institution 's asset risk profile and off-balance sheet exposures , such as unused loan commitments and stand-by letters of credit . the regulations require that a portion of total capital be tier 1 capital , consisting of common shareholders ' equity , the qualifying portion of trust issued preferred securities , and perpetual preferred stock , less goodwill and certain other deductions . the remaining capital , or tier 2 capital , consists of subordinated debt , mandatory convertible debt , the remaining portion of trust issued preferred securities , grandfathered senior debt and the all , subject to certain limitations . under the risk-based capital regulations , banking organizations are required to maintain a minimum 8 % ( 10 % for well capitalized banks ) total risk-based capital ratio ( total qualifying capital divided by risk-weighted assets ) , including a tier 1 ratio of 4 % ( 6 % for well capitalized banks ) . the risk-based capital rules have been further supplemented by a leverage ratio , defined as tier i capital divided by average assets , after certain adjustments . the minimum leverage ratio is 4 % ( 5 % for well capitalized banks ) for banking organizations that do not anticipate significant growth and have well-diversified risk ( including no undue interest rate risk exposure ) , excellent asset quality , high liquidity and good earnings . other banking organizations not in this category are expected to have ratios of at least 4-5 % , depending on their particular condition and growth plans . regulators may require higher capital ratios when warranted by the particular circumstances or risk profile of a given banking organization . in the current regulatory environment , banking organizations must stay well capitalized in order to receive favorable regulatory treatment on acquisition and other expansion activities and favorable risk-based deposit insurance assessments .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```capital resources the bank and first united corporation are subject to risk-based capital regulations , which were adopted and are monitored by federal banking regulators . these regulations are used to evaluate capital adequacy and require an analysis of an institution 's asset risk profile and off-balance sheet exposures , such as unused loan commitments and stand-by letters of credit . the regulations require that a portion of total capital be tier 1 capital , consisting of common shareholders ' equity , the qualifying portion of trust issued preferred securities , and perpetual preferred stock , less goodwill and certain other deductions . the remaining capital , or tier 2 capital , consists of subordinated debt , mandatory convertible debt , the remaining portion of trust issued preferred securities , grandfathered senior debt and the all , subject to certain limitations . under the risk-based capital regulations , banking organizations are required to maintain a minimum 8 % ( 10 % for well capitalized banks ) total risk-based capital ratio ( total qualifying capital divided by risk-weighted assets ) , including a tier 1 ratio of 4 % ( 6 % for well capitalized banks ) . the risk-based capital rules have been further supplemented by a leverage ratio , defined as tier i capital divided by average assets , after certain adjustments . the minimum leverage ratio is 4 % ( 5 % for well capitalized banks ) for banking organizations that do not anticipate significant growth and have well-diversified risk ( including no undue interest rate risk exposure ) , excellent asset quality , high liquidity and good earnings . other banking organizations not in this category are expected to have ratios of at least 4-5 % , depending on their particular condition and growth plans . regulators may require higher capital ratios when warranted by the particular circumstances or risk profile of a given banking organization . in the current regulatory environment , banking organizations must stay well capitalized in order to receive favorable regulatory treatment on acquisition and other expansion activities and favorable risk-based deposit insurance assessments .
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Suspicious Activity Report : in addition , $ 19,000 in non-cash other-than-temporary impairment ( โ otti โ ) charges were realized for the year ended december 31 , 2011 , compared to $ 8.4 million for the same period of 2010. during 2011 , we also recognized a gain of $ 1.4 million from the sale of a portion of the indirect auto loan portfolio . the decreases in expenses and the gain on the sale of indirect auto loans were offset by a decrease of $ 7.4 million in income tax benefit and a decline in net interest income of $ 3.3 million . the decrease in net interest income was driven by an $ 11.7 million reduction in interest income on a fully tax-equivalent ( โ fte โ ) basis attributable to lower levels of loans , the sale of a portion of the indirect auto portfolio and the lower interest rate environment . the net interest margin for the year ended december 31 , 2011 , on an fte basis , increased to 2.96 % from 2.71 % for the year ended december 31 , 2010. the increase in the net interest margin was driven primarily by the strategic plan to reduce cash levels by paying off certain liabilities that matured during 2011 and to change the composition of our deposit mix , focusing on lower cost core deposits . the provision for loan losses was $ 9.2 million for the year ended december 31 , 2011 , compared to $ 15.7 million for fiscal year 2010. the lower provision expense was primarily due to a leveling in the credit quality of our loan portfolio . management continued to make specific allocations for impaired loans where it was determined that the collateral supporting the loans is not adequate to cover the loan balance , and management adjusted the qualitative factors affecting the allowance for loan losses ( the โ all โ ) to reflect changes in the economic environment . [ 25 ] interest expense on our interest-bearing liabilities decreased $ 8.0 million during 2011 when compared to 2010 due primarily to a planned decrease of $ 260.1 million in average interest-bearing deposits and a $ 39.1 million decrease in average debt outstanding . management used cash to repay wholesale deposits and fhlb advances . the decline in expense was also due to the low interest rate environment and our strategy to provide special pricing only to full relationship customers . other operating income increased $ 14.7 million during 2011 when compared to 2010. this increase was primarily attributable to an $ 8.4 million decrease in non-cash credit-related otti charges , and a decrease of $ 6.1 million in net losses related to sales of securities , sales and write downs of other real estate owned and a gain recognized on the sale of a portion of the indirect auto loan portfolio . operating expenses decreased $ 3.2 million during 2011 when compared to the same period of 2010. this decrease was due primarily to a $ 1.1 million decline in salaries and benefits related to a reduction in full-time equivalents through attrition and reduced pension expense and a decline of $ 1.7 million in fdic premiums attributable to the repayment of brokered deposits . comparing december 31 , 2011 to december 31 , 2010 , outstanding loans decreased by $ 38.6 million ( 3.8 % ) , net of the sale of $ 32.5 million of the indirect auto portfolio . cre loans decreased $ 12.4 million as a result of the payoff of several large loans , charge-offs of loan balances and ongoing scheduled principal payments . commercial and industrial ( โ c & i โ ) loans increased $ 8.7 million and residential mortgages declined $ 9.5 million . acquisition and development loans decreased $ 14.0 million due to principal repayments and charge offs . the decrease in the residential mortgage portfolio was attributable to regularly scheduled principal payments on existing loans and management 's decision to use secondary market outlets such as fannie mae for the majority of new , longer-term , fixed-rate residential loan originations . the consumer loan portfolio declined $ 43.9 million due primarily to the sale of $ 32.5 million of retail installment contracts in our indirect auto loan portfolio and $ 11.4 million of repayment activity in the indirect auto portfolio which exceeded new production due to special financing offered by the automotive manufacturers , credit unions and certain large regional banks . at december 31 , 2011 , approximately 64 % of the commercial loan portfolio was collateralized by real estate , compared to approximately 71 % at december 31 , 2010. interest income on loans in 2011 decreased by $ 8.8 million ( on an fte basis ) when compared to 2010 due to the decrease in interest rates and the decline the in loan balances during 2011. interest income on the investment securities decreased by $ 2.7 million ( on an fte basis ) due to reinvesting called securities at lower rates . ( additional information on the composition of interest income is available in table 1 that appears on page 32 ) . total deposits decreased $ 273.9 million during 2011 when compared to deposits at december 31 , 2010. the decline in deposits was due to a strategic decision to use cash to repay wholesale deposits and fhlb advances . the repayment of approximately $ 161 million in wholesale deposits was offset by increases of $ 28.7 million in non-interest bearing deposits , $ 9.0 million in traditional savings accounts and $ 2.1 million in retail money market accounts . time deposits less than $ 100,000 declined $ 62.3 million while time deposits greater than $ 100,000 decreased $ 196.9 million . the decrease was due to a $ 160.4 million decline in brokered certificates of deposit and cdars ยฎ participation , and a decrease of $ 36.5 million in retail certificates of deposit . story_separator_special_tag pension expense and the determination of our projected pension liability are based upon two critical assumptions : the discount rate and the expected return on plan assets . we evaluate each of these [ 29 ] critical assumptions annually . other assumptions impact the determination of pension expense and the projected liability including the primary employee demographics , such as retirement patterns , employee turnover , mortality rates , and estimated employer compensation increases . these factors , along with the critical assumptions , are carefully reviewed by management each year in consultation with our pension plan consultants and actuaries . further information about our pension plan assumptions , the plan 's funded status , and other plan information is included in note 17 to the consolidated financial statements . other than as discussed above , management does not believe that any material changes in our critical accounting policies have occurred since december 31 , 2010. adoption of new accounting standards and effects of new accounting pronouncements note 1 to the consolidated financial statements discusses new accounting pronouncements that , when adopted , could affect our future consolidated financial statements . consolidated statement of income review net interest income net interest income is our largest source of operating revenue . net interest income is the difference between the interest earned on interest-earning assets and the interest expense incurred on interest-bearing liabilities . for analytical and discussion purposes , net interest income is adjusted to an fte basis to facilitate performance comparisons between taxable and tax-exempt assets by increasing tax-exempt income by an amount equal to the federal income taxes that would have been paid if this income were taxable at the statutorily applicable rate . the table below summarizes net interest income ( on a fully taxable equivalent basis ) for the 2011 and 2010. replace_table_token_10_th net interest income on an fte basis decreased $ 3.7 million during the year ended december 31 , 2011 over the same period in 2010 due to an $ 11.7 million ( 16.1 % ) decrease in interest income , which was partially offset by an $ 8.0 million ( 27.3 % ) decrease in interest expense . the decrease in net interest income resulted primarily from a lower level of loans and the lower interest rate environment in 2011 when compared to 2010. average interest-earning assets decreased by $ 264.7 million during 2011. the average yield on our average earning assets increased slightly to 4.54 % at december 31 , 2011 from 4.52 % at december 31 , 2010. this increase was due primarily to our strategy to deploy excess liquidity , invested at lower rates , to repay brokered and wholesale funding at their stated maturities rather than renew . interest expense decreased during 2011 when compared to 2010 due to an overall reduction in interest rates paid on time deposits , driven by our decision to provide special rates only to full relationship customers , as well as lower balances and the shorter duration of the portfolio . the overall decrease of $ 299.2 million in average interest-bearing liabilities in 2011 when compared to 2010 decreased the average rate paid from 1.89 % at december 31 , 2010 to 1.71 % at december 31 , 2011. as shown below , the composition of total interest income between 2011 and 2010 reflects a slight shift toward interest and fees on loans from investment securities . [ 30 ] replace_table_token_11_th table 1 sets forth the average balances , net interest income and expense , and average yields and rates for our interest-earning assets and interest-bearing liabilities for 2011 , 2010 and 2009. table 2 sets forth an analysis of volume and rate changes in interest income and interest expense of our average interest-earning assets and average interest-bearing liabilities for 2011 , 2010 and 2009. table 2 distinguishes between the changes related to average outstanding balances ( changes in volume created by holding the interest rate constant ) and the changes related to average interest rates ( changes in interest income or expense attributed to average rates created by holding the outstanding balance constant ) . [ 31 ] distribution of assets , liabilities and shareholders ' equity interest rates and interest differential โ tax equivalent basis table 1 replace_table_token_12_th notes : ( 1 ) the above table reflects the average rates earned or paid stated on an fte basis assuming a tax rate of 35 % for 2011 , 2010 and 2009. the fte adjustments for the years ended december 31 , 2011 , 2010 and 2009 were $ 1,533 , $ 1,983 and $ 1,613 , respectively . ( 2 ) the average balances of non-accrual loans for the years ended december 31 , 2011 , 2010 and 2009 , which were reported in the average loan balances for these years , were $ 39,806 , $ 42,506 and $ 39,851 , respectively . ( 3 ) net interest margin is calculated as net interest income divided by average earning assets . ( 4 ) the average yields on investments are based on amortized cost . [ 32 ] interest variance analysis ( 1 ) table 2 replace_table_token_13_th note : ( 1 ) the change in interest income/expense due to both volume and rate has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each . provision for loan losses the provision for loan losses was $ 9.2 million for the year ended december 31 , 2011 , compared to $ 15.7 million for fiscal year 2010. the lower provision for loan losses resulted primarily from stabilization in our total rolling historical loss rates and qualitative factors utilized in the determination of the all and stabilization in the level of classified assets . approximately $ .6 million of the lower provision for 2011 was related to the sale of $ 32.5 million of our indirect auto portfolio in the second
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2,348 | the company took delivery of the vessels during 72 the first quarter of 2021. the company paid and recorded $ 3.3 million on two of the above mentioned vessels in advances for vessel purchases in the consolidated balance sheet as of december 31 , 2020. vessel upgrades - scrubbers and ballast water systems during the third quarter of 2018 , the company entered into a series of agreements to purchase up to 37 scrubbers , which were fitted on the company 's vessels . the actual costs , including installation , were approximately $ 2.4 million per scrubber . during the second quarter of 2020 , the company completed and commissioned all 37 scrubbers and recorded $ 88.9 million in vessels and vessel improvements in the consolidated balance sheet as of december 31 , 2020. during the third quarter of 2018 , the company entered into a contract for the installation of bwts on 39 of our owned vessels . the projected costs , including installation , are approximately $ 0.5 million per bwts . the company intends to complete the installations during scheduled drydockings . the company completed installation of bwts on 15 vessels and recorded $ 7.1 million in vessels and vessel improvements in the consolidated balance sheet as of december 31 , 2020. additionally , the company recorded $ 2.3 million as advances paid towards installation of bwts on the remaining vessels as a noncurrent asset in its consolidated balance sheet as of december 31 , 2020. during the second quarter of 2020 , the company applied for and received extensions from the uscg of up to one year from their deadline for bwts installation on 18 of our vessels . additionally , the company cancelled the bwts installation orders on three of its oldest vessels . business strategy and outlook : we believe our strong balance sheet allows us the flexibility to opportunistically make investments in the drybulk segment that will drive shareholder growth . in order to accomplish this , we intend to : maintain a highly efficient and quality fleet in the drybulk segment ; maintain a revenue strategy that takes advantage of a rising rate environment and at the same time mitigate risk in a declining rate environment ; maintain a cost structure that allow us to be competitive in all economic cycles without sacrificing safety and maintenance ; continue to grow our relationships with our charterers and vendors ; and continue to invest in our on-shore operations and development of processes . our financial performance is based on the following key elements of our business strategy : ( 1 ) concentration in one vessel category : supramax/ultramax drybulk vessels , which we believe offer certain size , operational and geographical advantages relative to other classes of drybulk vessels , such as handysize , panamax and capesize vessels , ( 2 ) an active owner-operator model where we seek to operate our own fleet and develop contractual relationships with cargo interests . these relationships and the related cargo contracts have the dual benefit of providing greater operational efficiencies and act as a balance to the company 's naturally long position to the market . notwithstanding the focus on short term chartering , we consistently monitor the drybulk shipping market and , based on market conditions , will consider taking advantage of long-term time charters on our owned fleet at higher rates when appropriate . ( 3 ) maintain high quality vessels and improve standards of operation through improved standards and procedures , crew training and repair and maintenance procedures . we have employed all of our vessels on time and voyage charters . the following table represents certain information about our revenue earning charters on our owned fleet as of december 31 , 2020 : 73 replace_table_token_7_th 74 replace_table_token_8_th 75 replace_table_token_9_th ( 1 ) the vessel is at a shipyard undergoing drydock as of december 31 , 2020 . ( 2 ) the vessel is contracted to continue the existing time charter at an increased charter rate of $ 11,000 after january 8 , 2021 . ( 3 ) the vessel was involved in a collision and was undergoing repairs at a shipyard as of december 31 , 2020. business outlook covid-19 in march 2020 , the world health organization ( the โ who โ ) declared covid-19 , to be a pandemic . the covid-19 pandemic is having widespread , rapidly evolving , and unpredictable impacts on global society , economies , financial markets , and business practices . governments have implemented measures such as social distancing , mask mandates , travel restrictions , covid testing guidelines , quarantine regulations etc . all the above measures taken to slow the spread of covid-19 have led to a significant slowdown in the worldwide economic activity and decline in demand for drybulk cargoes . this has contributed to lower charter rates and shipping revenues in the first half of 2020. in 2020 , drybulk trade decreased by 1.9 % compared to an increase of 0.4 % in 2019 , as measured in metric tons of cargo . this was primarily the result of a 9.5 % decline in coal trade around the world , reflecting the continuing shift away from thermal coal use in europe , china-australia trade tensions , and decreased electricity demand in many countries due to economic impacts of covid-19 . demand for minor bulk commodities also decreased by 3.2 % mainly due to the impact to steel and other construction-related commodities due to covid-19 , as well as a ban on exports of nickel ore from indonesia that became effective in january 2020. on the positive side , grain trade increased by 7.8 % . the bsi-58 index averaged $ 8,189 for 2020 , compared to $ 9,948 for 2019. during the second half of 2020 , freight markets saw a strong rebound from the low point in the second quarter as demand for commodities recovered . story_separator_special_tag our vessels range from very new to seventeen years old , and we believe that utilizing rates over a long period of time incorporates numerous shipping cycles and reflects our strategy of operating our vessels over a long time period , and in line with the overall useful economic life of our vessels . as disclosed elsewhere herein , we also consider whether utilizing ten or five year averages would impact our impairment assessment . our vessels remain fully utilized and have a relatively long average remaining useful life of approximately 17 years in which to provide sufficient cash flows on an undiscounted basis to recover their carrying values as of december 31 , 2020. management will continue to monitor developments in charter rates in our participatory markets with respect to the expectation of future rates over an extended period . a comparison of the average estimated daily time charter equivalent rate used in our impairment analysis with the average break even rate at which the undiscounted cash flows for the 40 vessels for which impairment test was performed will be lower than their carrying value as of december 31 , 2020 ( โ average break even rate โ ) for our vessels is presented below : vessel class average estimated daily time charter rate used percentage decline from average estimated daily time charter rate used in impairment test at which point impairment would be recorded supramax/ultramax $ 11,504 ( 29 ) % for the purpose of presenting our investors with additional information to determine how the company 's future results of operations may be impacted in the event that daily time charter rates change from their current levels in future periods , we set forth in the table below analysis that shows the effect of the utilization of 1 year , 3 year , 5 year and 10 year average blended rates would have on the company 's impairment analysis : incremental number of vessels potential incremental impairment ( in millions ) 1 year historical average 2 $ 16.6 3 year historical average โ โ 5 year historical average โ โ 10 year historical average โ โ 80 management does not believe that a one year , a three year , and a five year historical average is reflective of the cyclical nature of the shipping business , which tends to have cycles much longer than one , three or five years . based on our impairment analysis , we determined that as of december 31 , 2020 , the future cash flows expected to be earned by the 40 vessels on an undiscounted basis would exceed their carrying value and therefore no impairment charges were recorded in the consolidated financial statements . as of december 31 , 2016 , as part of our fleet renewal program , management considered it probable that we would divest some of our older vessels as well as certain less efficient vessels from its fleet to achieve operating cost savings . based on our projected undiscounted cash flows prior to sale , factoring the probability of sale , such vessels were determined to be impaired , and written down to their current fair value as of december 31 , 2016 , which was determined by obtaining broker quotes from two unaffiliated ship brokers . as a result , we recorded an impairment charge of $ 122.9 million in the fourth quarter of 2016. the carrying value of these vessels prior to impairment was $ 234.9 million . in addition to the above , in 2015 , we identified six vessels as probable sales , and recognized an impairment charge in 2015 of $ 50.9 million . as the value of such vessels further declined in the first quarter of 2016 , we recorded an additional impairment charge of $ 6.2 million in that quarter . out of the six vessels initially identified in 2015 , all vessels have been sold as of december 31 , 2020. out of the sixteen vessels impaired in 2016 , thirteen vessels have been sold as of december 31 , 2020. although management believes that the assumptions used to evaluate potential impairment are reasonable and appropriate , such assumptions are highly subjective . charter rates may remain at depressed levels for some time , which could adversely affect our revenue and profitability , and future assessments of vessel impairment . in the event that any future impairment were to occur , we would determine the fair value of the related asset and record a charge to operations calculated by comparing the asset 's carrying value to its estimated fair value . we estimate fair value primarily through the use of third party valuations performed on an individual vessel basis . such valuations are not necessarily the same as the amount any vessel may bring upon sale , which may be more or less , and should not be relied upon as such . the table set forth below indicates the carrying value of each of our vessels as of december 31 , 2020 and 2019 , which we believe , based on broker quotes recently obtained , have a basic charter free market value below its carrying value . please note that the carrying values of vessels sold during the year 2020 have been excluded from the table . noted below the table is the aggregate difference between the carrying value and the basic market value , which represents the approximate amount by which we believe we would have to reduce our net income if we sold all of such vessels , excluding commissions , as of december 31 , 2020 , on industry standard terms , in cash transactions , and to a willing buyer where we are not under any compulsion to sell , and where the buyer is not under any compulsion to buy . additionally , given the current dynamic in the drybulk market , were we to sell a vessel , we might
| cash collateral disclosures the company does not offset fair value amounts recognized for derivatives by the right to reclaim cash collateral or the obligation to return cash collateral . the amount of collateral to be posted is defined in the terms of respective master agreement executed with counterparties or exchanges and is required when agreed upon threshold limits are exceeded . as of december 31 , 2020 and december 31 , 2019 , the company posted cash collateral related to derivative instruments under its collateral security arrangements of $ 0.1 million and $ 0.6 million , respectively , which is recorded within other current assets in the consolidated balance sheets . effects of inflation the company does not believe that inflation has had or is likely , in the near future , to have a significant impact on vessel operating expenses , drydocking expenses and general and administrative expenses . 89 liquidity and capital resources the following table presents the cash flow information for the years ended december 31 , 2020 and 2019 : replace_table_token_15_th net cash provided by operating activities for the year ended december 31 , 2020 was $ 12.6 million , compared with $ 21.7 million in 2019. the decrease in cash flows provided by operating activities resulted primarily from increase in drydock expenditures , payments related to bunkers in the first quarter of 2020 relating to prior year bunker liftings in advance of imo 2020 regulations partly offset by decline in fuel prices resulting in decrease in the value of our bunker inventory year over year . net cash used in investing activities for the year ended december 31 , 2020 was $ 5.5 million , compared to $ 168.6 million in the prior year . during 2020 , the company paid $ 28.4 million for the purchase and installation of scrubbers and ballast water treatment systems on our fleet .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash collateral disclosures the company does not offset fair value amounts recognized for derivatives by the right to reclaim cash collateral or the obligation to return cash collateral . the amount of collateral to be posted is defined in the terms of respective master agreement executed with counterparties or exchanges and is required when agreed upon threshold limits are exceeded . as of december 31 , 2020 and december 31 , 2019 , the company posted cash collateral related to derivative instruments under its collateral security arrangements of $ 0.1 million and $ 0.6 million , respectively , which is recorded within other current assets in the consolidated balance sheets . effects of inflation the company does not believe that inflation has had or is likely , in the near future , to have a significant impact on vessel operating expenses , drydocking expenses and general and administrative expenses . 89 liquidity and capital resources the following table presents the cash flow information for the years ended december 31 , 2020 and 2019 : replace_table_token_15_th net cash provided by operating activities for the year ended december 31 , 2020 was $ 12.6 million , compared with $ 21.7 million in 2019. the decrease in cash flows provided by operating activities resulted primarily from increase in drydock expenditures , payments related to bunkers in the first quarter of 2020 relating to prior year bunker liftings in advance of imo 2020 regulations partly offset by decline in fuel prices resulting in decrease in the value of our bunker inventory year over year . net cash used in investing activities for the year ended december 31 , 2020 was $ 5.5 million , compared to $ 168.6 million in the prior year . during 2020 , the company paid $ 28.4 million for the purchase and installation of scrubbers and ballast water treatment systems on our fleet .
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Suspicious Activity Report : the company took delivery of the vessels during 72 the first quarter of 2021. the company paid and recorded $ 3.3 million on two of the above mentioned vessels in advances for vessel purchases in the consolidated balance sheet as of december 31 , 2020. vessel upgrades - scrubbers and ballast water systems during the third quarter of 2018 , the company entered into a series of agreements to purchase up to 37 scrubbers , which were fitted on the company 's vessels . the actual costs , including installation , were approximately $ 2.4 million per scrubber . during the second quarter of 2020 , the company completed and commissioned all 37 scrubbers and recorded $ 88.9 million in vessels and vessel improvements in the consolidated balance sheet as of december 31 , 2020. during the third quarter of 2018 , the company entered into a contract for the installation of bwts on 39 of our owned vessels . the projected costs , including installation , are approximately $ 0.5 million per bwts . the company intends to complete the installations during scheduled drydockings . the company completed installation of bwts on 15 vessels and recorded $ 7.1 million in vessels and vessel improvements in the consolidated balance sheet as of december 31 , 2020. additionally , the company recorded $ 2.3 million as advances paid towards installation of bwts on the remaining vessels as a noncurrent asset in its consolidated balance sheet as of december 31 , 2020. during the second quarter of 2020 , the company applied for and received extensions from the uscg of up to one year from their deadline for bwts installation on 18 of our vessels . additionally , the company cancelled the bwts installation orders on three of its oldest vessels . business strategy and outlook : we believe our strong balance sheet allows us the flexibility to opportunistically make investments in the drybulk segment that will drive shareholder growth . in order to accomplish this , we intend to : maintain a highly efficient and quality fleet in the drybulk segment ; maintain a revenue strategy that takes advantage of a rising rate environment and at the same time mitigate risk in a declining rate environment ; maintain a cost structure that allow us to be competitive in all economic cycles without sacrificing safety and maintenance ; continue to grow our relationships with our charterers and vendors ; and continue to invest in our on-shore operations and development of processes . our financial performance is based on the following key elements of our business strategy : ( 1 ) concentration in one vessel category : supramax/ultramax drybulk vessels , which we believe offer certain size , operational and geographical advantages relative to other classes of drybulk vessels , such as handysize , panamax and capesize vessels , ( 2 ) an active owner-operator model where we seek to operate our own fleet and develop contractual relationships with cargo interests . these relationships and the related cargo contracts have the dual benefit of providing greater operational efficiencies and act as a balance to the company 's naturally long position to the market . notwithstanding the focus on short term chartering , we consistently monitor the drybulk shipping market and , based on market conditions , will consider taking advantage of long-term time charters on our owned fleet at higher rates when appropriate . ( 3 ) maintain high quality vessels and improve standards of operation through improved standards and procedures , crew training and repair and maintenance procedures . we have employed all of our vessels on time and voyage charters . the following table represents certain information about our revenue earning charters on our owned fleet as of december 31 , 2020 : 73 replace_table_token_7_th 74 replace_table_token_8_th 75 replace_table_token_9_th ( 1 ) the vessel is at a shipyard undergoing drydock as of december 31 , 2020 . ( 2 ) the vessel is contracted to continue the existing time charter at an increased charter rate of $ 11,000 after january 8 , 2021 . ( 3 ) the vessel was involved in a collision and was undergoing repairs at a shipyard as of december 31 , 2020. business outlook covid-19 in march 2020 , the world health organization ( the โ who โ ) declared covid-19 , to be a pandemic . the covid-19 pandemic is having widespread , rapidly evolving , and unpredictable impacts on global society , economies , financial markets , and business practices . governments have implemented measures such as social distancing , mask mandates , travel restrictions , covid testing guidelines , quarantine regulations etc . all the above measures taken to slow the spread of covid-19 have led to a significant slowdown in the worldwide economic activity and decline in demand for drybulk cargoes . this has contributed to lower charter rates and shipping revenues in the first half of 2020. in 2020 , drybulk trade decreased by 1.9 % compared to an increase of 0.4 % in 2019 , as measured in metric tons of cargo . this was primarily the result of a 9.5 % decline in coal trade around the world , reflecting the continuing shift away from thermal coal use in europe , china-australia trade tensions , and decreased electricity demand in many countries due to economic impacts of covid-19 . demand for minor bulk commodities also decreased by 3.2 % mainly due to the impact to steel and other construction-related commodities due to covid-19 , as well as a ban on exports of nickel ore from indonesia that became effective in january 2020. on the positive side , grain trade increased by 7.8 % . the bsi-58 index averaged $ 8,189 for 2020 , compared to $ 9,948 for 2019. during the second half of 2020 , freight markets saw a strong rebound from the low point in the second quarter as demand for commodities recovered . story_separator_special_tag our vessels range from very new to seventeen years old , and we believe that utilizing rates over a long period of time incorporates numerous shipping cycles and reflects our strategy of operating our vessels over a long time period , and in line with the overall useful economic life of our vessels . as disclosed elsewhere herein , we also consider whether utilizing ten or five year averages would impact our impairment assessment . our vessels remain fully utilized and have a relatively long average remaining useful life of approximately 17 years in which to provide sufficient cash flows on an undiscounted basis to recover their carrying values as of december 31 , 2020. management will continue to monitor developments in charter rates in our participatory markets with respect to the expectation of future rates over an extended period . a comparison of the average estimated daily time charter equivalent rate used in our impairment analysis with the average break even rate at which the undiscounted cash flows for the 40 vessels for which impairment test was performed will be lower than their carrying value as of december 31 , 2020 ( โ average break even rate โ ) for our vessels is presented below : vessel class average estimated daily time charter rate used percentage decline from average estimated daily time charter rate used in impairment test at which point impairment would be recorded supramax/ultramax $ 11,504 ( 29 ) % for the purpose of presenting our investors with additional information to determine how the company 's future results of operations may be impacted in the event that daily time charter rates change from their current levels in future periods , we set forth in the table below analysis that shows the effect of the utilization of 1 year , 3 year , 5 year and 10 year average blended rates would have on the company 's impairment analysis : incremental number of vessels potential incremental impairment ( in millions ) 1 year historical average 2 $ 16.6 3 year historical average โ โ 5 year historical average โ โ 10 year historical average โ โ 80 management does not believe that a one year , a three year , and a five year historical average is reflective of the cyclical nature of the shipping business , which tends to have cycles much longer than one , three or five years . based on our impairment analysis , we determined that as of december 31 , 2020 , the future cash flows expected to be earned by the 40 vessels on an undiscounted basis would exceed their carrying value and therefore no impairment charges were recorded in the consolidated financial statements . as of december 31 , 2016 , as part of our fleet renewal program , management considered it probable that we would divest some of our older vessels as well as certain less efficient vessels from its fleet to achieve operating cost savings . based on our projected undiscounted cash flows prior to sale , factoring the probability of sale , such vessels were determined to be impaired , and written down to their current fair value as of december 31 , 2016 , which was determined by obtaining broker quotes from two unaffiliated ship brokers . as a result , we recorded an impairment charge of $ 122.9 million in the fourth quarter of 2016. the carrying value of these vessels prior to impairment was $ 234.9 million . in addition to the above , in 2015 , we identified six vessels as probable sales , and recognized an impairment charge in 2015 of $ 50.9 million . as the value of such vessels further declined in the first quarter of 2016 , we recorded an additional impairment charge of $ 6.2 million in that quarter . out of the six vessels initially identified in 2015 , all vessels have been sold as of december 31 , 2020. out of the sixteen vessels impaired in 2016 , thirteen vessels have been sold as of december 31 , 2020. although management believes that the assumptions used to evaluate potential impairment are reasonable and appropriate , such assumptions are highly subjective . charter rates may remain at depressed levels for some time , which could adversely affect our revenue and profitability , and future assessments of vessel impairment . in the event that any future impairment were to occur , we would determine the fair value of the related asset and record a charge to operations calculated by comparing the asset 's carrying value to its estimated fair value . we estimate fair value primarily through the use of third party valuations performed on an individual vessel basis . such valuations are not necessarily the same as the amount any vessel may bring upon sale , which may be more or less , and should not be relied upon as such . the table set forth below indicates the carrying value of each of our vessels as of december 31 , 2020 and 2019 , which we believe , based on broker quotes recently obtained , have a basic charter free market value below its carrying value . please note that the carrying values of vessels sold during the year 2020 have been excluded from the table . noted below the table is the aggregate difference between the carrying value and the basic market value , which represents the approximate amount by which we believe we would have to reduce our net income if we sold all of such vessels , excluding commissions , as of december 31 , 2020 , on industry standard terms , in cash transactions , and to a willing buyer where we are not under any compulsion to sell , and where the buyer is not under any compulsion to buy . additionally , given the current dynamic in the drybulk market , were we to sell a vessel , we might
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2,349 | โ dc solar hybrid power systems . these systems incorporate photovoltaic and other sources of renewable energy into our dc hybrid power system . our dc power systems are available in diesel , natural gas , lpg / natural gas and renewable formats , with diesel , natural gas and propane gas being the predominate formats . during the years ended december 31 , 2020 and 2019 , 96 % and 96 % , respectively , of our total net sales were within the telecommunications market . in 2020 , 81 % of our total net sales were derived primarily from three customers which are in the telecommunications industry and each accounted for 52 % , 15 % and 14 % of total net sales for 2020. in 2019 , we had 91 % of our total net sales derived from our three largest customers which are in the telecommunications industry and each accounted for 68 % , 17 % and 6 % of our total net sales for 2019. in march 2020 , the world health organization declared the outbreak of covid-19 a global pandemic , and , in the following weeks , many u.s. states and foreign countries issued lockdown orders negatively impacting the operations of our manufacturing facilities and customer demand for our products . since then , the covid-19 situation within the u.s. and foreign countries has rapidly escalated . we have implemented new procedures to support the health and safety of our employees and we are following all guidelines issued by the u.s. centers for disease control and prevention , as well as federal , state and regional public health authorities . our manufacturing facilities have remained opened with certain limitations and restrictions to comply covid-19 safety guidelines and provide a safe work environment for our employees . covid-19 , has had and is likely to continue to have , a material and substantial adverse impact on our results of operations including , among others , a decrease in our sales , delays in sourcing of raw materials from suppliers which , in turn , has raised liquidity concerns . in addition , our inventory write-off increased during 2020 due to current uncertainties regarding specific product shipments . our business is directly dependent upon , and correlates closely with , the marketing levels and ongoing business activities of our existing customers and suppliers . in the event of a continued widespread economic downturn caused by covid-19 , we will likely experience a further reduction in current projects , longer sales and collection cycles , deferral or delay of purchase commitments for our dc power systems , a reduction in our manufacturing functionality , higher than normal inventory levels , a reduction in the availability of qualified labor , and increased price competition , all of which could substantially adversely affect our net revenues and our ability to remain a going concern . during december 2020 , the food and drug administration authorized the release of vaccines to help control covid-19 . although there are many unknown factors of its success to control covid-19 and the timeline of making the vaccine available to a great majority of people around the world , we believe these are significant events aimed to control covid-19 that may lead to improvements to the global economy and to our business . 35 the extent of the impact of covid-19 on our operational and financial performance will depend on certain developments , including the duration and spread of the outbreak , the impact on our customers and our sales cycles , the impact on our customer , employee or industry events , and the effect on our vendors , all of which are uncertain and can not be predicted . at this point , we are uncertain of the full magnitude that the pandemic may have on our financial condition , liquidity and future results of operations . critical accounting policies the preparation of financial statements in conformity with accounting principles generally accepted in the united states of america ( โ gaap โ ) requires management to make certain estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses , and the disclosure of contingent assets and liabilities . on an ongoing basis , management reviews its estimates and if deemed appropriate , those estimates are adjusted . significant estimates include those related to assumptions used in determining reserves for uncollectible receivables , assumptions used in valuing inventories at net realizable value , impairment analysis of long term assets , estimates of useful lives of property and equipment , assumptions used in valuing stock-based compensation , the valuation allowance for deferred tax assets , accruals for product warranties , accruals for potential liabilities , and assumptions used in the determination of the company 's liquidity . actual results may differ from those estimates . we believe that the following critical accounting policies , among others , affect our more significant judgment and estimates used in the preparation of our financial statements : revenue recognition we recognize revenue in accordance with financial accounting standards board accounting standards codification 606 , revenue from contracts with customers ( โ asc 606 โ ) . asc 606 requires entities to recognize revenue through the application of a five-step model , which includes : identification of the contract ; identification of the performance obligations ; determination of the transaction price ; allocation of the transaction price to the performance obligations ; and recognition of revenue as the entity satisfies the performance obligations . substantially all of the company 's revenue is derived from product sales . story_separator_special_tag during 2021 , we expect research and development expenses to gradually increase as control over covid-19 improves and we continue investing into new products as part of our strategy to diversify our product lines . general and administrative expenses . our general and administrative expenses increased by $ 58 , to $ 4,062 during 2020 , as compared to $ 4,004 during 2019. the increase was primarily due to an increase of approximately $ 500 in legal , audit , and broker fees services related to an equity raise that took place in july 2020 and consulting services for additional disclosures required as a result of covid-19 . interest and finance costs . during 2020 , our interest expense was $ 60 , as compared to $ 103 during 2019 , an increase of $ 43. our interest expense during 2020 included approximately $ 12 in fees in connection with selling $ 2.6 million of receivables to citibank under our supplier agreement , $ 41 in interest paid for financing of production equipment , $ 4 in interest paid under our line of credit with pinnacle bank , and $ 3 in interest paid for financing of insurance policies . other income ( expense ) , net . during 2020 , our interest income was $ 14 , as compared to $ 40 during 2019 , a decrease of $ 26. our other income included a $ 10 economic injury disaster grant . income tax benefit . in 2020 , we recognized a benefit from income taxes of $ 2,139 attributable to refundable federal and state income taxes . during 2019 , we did not recognize any benefit from income taxes as carry back claims of income taxes were applied . net loss . as a result of the factors identified above , we generated a net loss of $ 10,871 for 2020 , as compared to net loss of $ 4,045 for 2019 , an increase loss of $ 6,826. a significant portion of the increase in net loss can be attributed to the results of a decrease our of dc back-up power systems to us telecommunications customers , and an increase in factory overhead absorption , and $ 3,400 increase inventory reserve reported in our cost of sales during 2020. liquidity and capital resources story_separator_special_tag new roman , times , serif ; font-size : 10pt `` > paycheck protection program loan on may 4 , 2020 , we entered into a loan with citibank , n.a . in an aggregate principal amount of $ 1,715 , or the ppp loan , pursuant to the paycheck protection program , or the ppp , under the cares act . the ppp loan is evidenced by a promissory note dated may 4 , 2020. the ppp loan matures two years from the disbursement date and bears interest at a rate of 1 % per annum , with the first nine months of interest deferred . principal and interest are payable monthly commencing nine months after the disbursement date and may be prepaid by us at any time prior to maturity with no prepayment penalties . under the terms of the cares act , recipients of ppp loans can apply for and be granted forgiveness for all or a portion of loans granted under the ppp . the ppp loan is subject to forgiveness to the extent proceeds are used for payroll costs , including payments required to continue group health care benefits , and certain rent , utility , and mortgage interest expenses ( collectively , โ qualifying expenses โ ) , pursuant to the terms and limitations of the ppp . we intend to use a significant majority of the ppp loan amount for qualifying expenses and expect the full amount of the ppp loan to be forgiven . however , no assurance can be given that we will obtain forgiveness of the ppp loan in whole or in part . 42 future capital requirements on february 7 , 2021 , we entered into an underwriting agreement with thinkequity , a division of fordham financial management , inc. , pursuant to which we agreed to sell an aggregate of 750,000 shares of our common stock in a firm commitment underwritten public offering at a price per share to the public of $ 18.00. the public offering closed on february 10 , 2021. we received net proceeds of approximately $ 12.5 million and we plan to use the net proceeds for general corporate purposes . we believe that the current funds on hand will be sufficient to fund our operating expenses and capital expenditure requirements for at least the next twelve months . we continue to review operations in order to identify additional strategies designed to generate cash flow , improve our financial position , and enable the timely discharge of our obligations . cash flow the following table sets forth the significant sources and uses of cash for the periods set forth below : replace_table_token_2_th operating activities net cash used in operating activities for 2020 was $ 6,548 , as compared to $ 2,167 for the same period in 2019. this increase in net cash used in 2020 was primarily due to a net loss of $ 10,871 , a write-down of $ 3,400 for excess and obsolete inventory , an increase in income tax benefit of $ 2,139 , coupled with a decrease of $ 907 in prepaid assets resulting from engines imported from japan which had been prepaid in 2019. investing activities net cash used in investing activities for 2020 totaled $ 19 , as compared to $ 338 for 2019 , a decrease of $ 319. the net cash used in investing activities in 2020 was attributable to a slight increase in new manufacturing equipment . financing activities net cash provided by financing activities totaled $ 5,373 for 2020 , as compared to $ 295 used in financing activities during 2019 , an increase of $ 5,668.
| sources of liquidity during the year ended december 31 , 2020 , we funded our operations primarily from cash on hand and sales of receivables under our supplier agreement with citibank . these funds were also used to increase inventory to support research and development projects and the launch of our new line of lpg / natural gas generators . as of december 31 , 2020 , we had working capital of $ 10,123 , as compared to working capital of $ 16,433 at december 31 , 2019. this $ 6,310 decrease in working capital is primarily attributable to a $ 1,194 decrease in cash and cash equivalents resulting from net cash of $ 6,548 used in operating activities , net cash used in investing activities of $ 19 from the acquisition of new property and equipment , and net cash from financing activities of $ 5,372 which included proceeds of $ 1,715 from a paycheck protection program ( โ ppp โ ) loan , proceeds of $ 2,812 from the issuance of common stock and warrants in our july 2020 private placement and proceeds of $ 1,174 from the exercise of certain of these warrants . on december 31 , 2020 and december 31 , 2019 , our net trade receivables totaled $ 1,190 and $ 934 , respectively . on december 31 , 2020 , $ 1,041 ( 87 % ) and $ 53 ( 5 % ) represented the two largest open customer account balances , while $ 652 ( 70 % ) and $ 183 ( 20 % ) represented the two largest open customer account balances on december 31 , 2019. our available capital resources on december 31 , 2020 consisted primarily of $ 1,646 in cash and cash equivalents , as compared to $ 2,840 as of december 31 , 2019. we expect our future capital resources will consist primarily of cash on hand , cash generated by operations , if any , and future debt or equity financings , if any .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```sources of liquidity during the year ended december 31 , 2020 , we funded our operations primarily from cash on hand and sales of receivables under our supplier agreement with citibank . these funds were also used to increase inventory to support research and development projects and the launch of our new line of lpg / natural gas generators . as of december 31 , 2020 , we had working capital of $ 10,123 , as compared to working capital of $ 16,433 at december 31 , 2019. this $ 6,310 decrease in working capital is primarily attributable to a $ 1,194 decrease in cash and cash equivalents resulting from net cash of $ 6,548 used in operating activities , net cash used in investing activities of $ 19 from the acquisition of new property and equipment , and net cash from financing activities of $ 5,372 which included proceeds of $ 1,715 from a paycheck protection program ( โ ppp โ ) loan , proceeds of $ 2,812 from the issuance of common stock and warrants in our july 2020 private placement and proceeds of $ 1,174 from the exercise of certain of these warrants . on december 31 , 2020 and december 31 , 2019 , our net trade receivables totaled $ 1,190 and $ 934 , respectively . on december 31 , 2020 , $ 1,041 ( 87 % ) and $ 53 ( 5 % ) represented the two largest open customer account balances , while $ 652 ( 70 % ) and $ 183 ( 20 % ) represented the two largest open customer account balances on december 31 , 2019. our available capital resources on december 31 , 2020 consisted primarily of $ 1,646 in cash and cash equivalents , as compared to $ 2,840 as of december 31 , 2019. we expect our future capital resources will consist primarily of cash on hand , cash generated by operations , if any , and future debt or equity financings , if any .
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Suspicious Activity Report : โ dc solar hybrid power systems . these systems incorporate photovoltaic and other sources of renewable energy into our dc hybrid power system . our dc power systems are available in diesel , natural gas , lpg / natural gas and renewable formats , with diesel , natural gas and propane gas being the predominate formats . during the years ended december 31 , 2020 and 2019 , 96 % and 96 % , respectively , of our total net sales were within the telecommunications market . in 2020 , 81 % of our total net sales were derived primarily from three customers which are in the telecommunications industry and each accounted for 52 % , 15 % and 14 % of total net sales for 2020. in 2019 , we had 91 % of our total net sales derived from our three largest customers which are in the telecommunications industry and each accounted for 68 % , 17 % and 6 % of our total net sales for 2019. in march 2020 , the world health organization declared the outbreak of covid-19 a global pandemic , and , in the following weeks , many u.s. states and foreign countries issued lockdown orders negatively impacting the operations of our manufacturing facilities and customer demand for our products . since then , the covid-19 situation within the u.s. and foreign countries has rapidly escalated . we have implemented new procedures to support the health and safety of our employees and we are following all guidelines issued by the u.s. centers for disease control and prevention , as well as federal , state and regional public health authorities . our manufacturing facilities have remained opened with certain limitations and restrictions to comply covid-19 safety guidelines and provide a safe work environment for our employees . covid-19 , has had and is likely to continue to have , a material and substantial adverse impact on our results of operations including , among others , a decrease in our sales , delays in sourcing of raw materials from suppliers which , in turn , has raised liquidity concerns . in addition , our inventory write-off increased during 2020 due to current uncertainties regarding specific product shipments . our business is directly dependent upon , and correlates closely with , the marketing levels and ongoing business activities of our existing customers and suppliers . in the event of a continued widespread economic downturn caused by covid-19 , we will likely experience a further reduction in current projects , longer sales and collection cycles , deferral or delay of purchase commitments for our dc power systems , a reduction in our manufacturing functionality , higher than normal inventory levels , a reduction in the availability of qualified labor , and increased price competition , all of which could substantially adversely affect our net revenues and our ability to remain a going concern . during december 2020 , the food and drug administration authorized the release of vaccines to help control covid-19 . although there are many unknown factors of its success to control covid-19 and the timeline of making the vaccine available to a great majority of people around the world , we believe these are significant events aimed to control covid-19 that may lead to improvements to the global economy and to our business . 35 the extent of the impact of covid-19 on our operational and financial performance will depend on certain developments , including the duration and spread of the outbreak , the impact on our customers and our sales cycles , the impact on our customer , employee or industry events , and the effect on our vendors , all of which are uncertain and can not be predicted . at this point , we are uncertain of the full magnitude that the pandemic may have on our financial condition , liquidity and future results of operations . critical accounting policies the preparation of financial statements in conformity with accounting principles generally accepted in the united states of america ( โ gaap โ ) requires management to make certain estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses , and the disclosure of contingent assets and liabilities . on an ongoing basis , management reviews its estimates and if deemed appropriate , those estimates are adjusted . significant estimates include those related to assumptions used in determining reserves for uncollectible receivables , assumptions used in valuing inventories at net realizable value , impairment analysis of long term assets , estimates of useful lives of property and equipment , assumptions used in valuing stock-based compensation , the valuation allowance for deferred tax assets , accruals for product warranties , accruals for potential liabilities , and assumptions used in the determination of the company 's liquidity . actual results may differ from those estimates . we believe that the following critical accounting policies , among others , affect our more significant judgment and estimates used in the preparation of our financial statements : revenue recognition we recognize revenue in accordance with financial accounting standards board accounting standards codification 606 , revenue from contracts with customers ( โ asc 606 โ ) . asc 606 requires entities to recognize revenue through the application of a five-step model , which includes : identification of the contract ; identification of the performance obligations ; determination of the transaction price ; allocation of the transaction price to the performance obligations ; and recognition of revenue as the entity satisfies the performance obligations . substantially all of the company 's revenue is derived from product sales . story_separator_special_tag during 2021 , we expect research and development expenses to gradually increase as control over covid-19 improves and we continue investing into new products as part of our strategy to diversify our product lines . general and administrative expenses . our general and administrative expenses increased by $ 58 , to $ 4,062 during 2020 , as compared to $ 4,004 during 2019. the increase was primarily due to an increase of approximately $ 500 in legal , audit , and broker fees services related to an equity raise that took place in july 2020 and consulting services for additional disclosures required as a result of covid-19 . interest and finance costs . during 2020 , our interest expense was $ 60 , as compared to $ 103 during 2019 , an increase of $ 43. our interest expense during 2020 included approximately $ 12 in fees in connection with selling $ 2.6 million of receivables to citibank under our supplier agreement , $ 41 in interest paid for financing of production equipment , $ 4 in interest paid under our line of credit with pinnacle bank , and $ 3 in interest paid for financing of insurance policies . other income ( expense ) , net . during 2020 , our interest income was $ 14 , as compared to $ 40 during 2019 , a decrease of $ 26. our other income included a $ 10 economic injury disaster grant . income tax benefit . in 2020 , we recognized a benefit from income taxes of $ 2,139 attributable to refundable federal and state income taxes . during 2019 , we did not recognize any benefit from income taxes as carry back claims of income taxes were applied . net loss . as a result of the factors identified above , we generated a net loss of $ 10,871 for 2020 , as compared to net loss of $ 4,045 for 2019 , an increase loss of $ 6,826. a significant portion of the increase in net loss can be attributed to the results of a decrease our of dc back-up power systems to us telecommunications customers , and an increase in factory overhead absorption , and $ 3,400 increase inventory reserve reported in our cost of sales during 2020. liquidity and capital resources story_separator_special_tag new roman , times , serif ; font-size : 10pt `` > paycheck protection program loan on may 4 , 2020 , we entered into a loan with citibank , n.a . in an aggregate principal amount of $ 1,715 , or the ppp loan , pursuant to the paycheck protection program , or the ppp , under the cares act . the ppp loan is evidenced by a promissory note dated may 4 , 2020. the ppp loan matures two years from the disbursement date and bears interest at a rate of 1 % per annum , with the first nine months of interest deferred . principal and interest are payable monthly commencing nine months after the disbursement date and may be prepaid by us at any time prior to maturity with no prepayment penalties . under the terms of the cares act , recipients of ppp loans can apply for and be granted forgiveness for all or a portion of loans granted under the ppp . the ppp loan is subject to forgiveness to the extent proceeds are used for payroll costs , including payments required to continue group health care benefits , and certain rent , utility , and mortgage interest expenses ( collectively , โ qualifying expenses โ ) , pursuant to the terms and limitations of the ppp . we intend to use a significant majority of the ppp loan amount for qualifying expenses and expect the full amount of the ppp loan to be forgiven . however , no assurance can be given that we will obtain forgiveness of the ppp loan in whole or in part . 42 future capital requirements on february 7 , 2021 , we entered into an underwriting agreement with thinkequity , a division of fordham financial management , inc. , pursuant to which we agreed to sell an aggregate of 750,000 shares of our common stock in a firm commitment underwritten public offering at a price per share to the public of $ 18.00. the public offering closed on february 10 , 2021. we received net proceeds of approximately $ 12.5 million and we plan to use the net proceeds for general corporate purposes . we believe that the current funds on hand will be sufficient to fund our operating expenses and capital expenditure requirements for at least the next twelve months . we continue to review operations in order to identify additional strategies designed to generate cash flow , improve our financial position , and enable the timely discharge of our obligations . cash flow the following table sets forth the significant sources and uses of cash for the periods set forth below : replace_table_token_2_th operating activities net cash used in operating activities for 2020 was $ 6,548 , as compared to $ 2,167 for the same period in 2019. this increase in net cash used in 2020 was primarily due to a net loss of $ 10,871 , a write-down of $ 3,400 for excess and obsolete inventory , an increase in income tax benefit of $ 2,139 , coupled with a decrease of $ 907 in prepaid assets resulting from engines imported from japan which had been prepaid in 2019. investing activities net cash used in investing activities for 2020 totaled $ 19 , as compared to $ 338 for 2019 , a decrease of $ 319. the net cash used in investing activities in 2020 was attributable to a slight increase in new manufacturing equipment . financing activities net cash provided by financing activities totaled $ 5,373 for 2020 , as compared to $ 295 used in financing activities during 2019 , an increase of $ 5,668.
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2,350 | scansource , inc. and its subsidiaries ( the `` company `` ) provide value-added distribution services for approximately 290 technology manufacturers and sells to approximately 28,000 resellers in the following specialty technology markets : pos and barcode , security and communications . the company operates in the united states , canada , latin america , and europe and uses centralized distribution centers for major geographic regions . the company distributes to the united states and canada from its southaven , mississippi distribution center ; to latin america principally from distribution centers located in florida , mexico and brazil ; and to europe from its distribution center in belgium . the company distributes products for many of its key vendors in all of its geographic markets ; however certain vendors only allow distribution to specific geographies . the company 's key vendors in barcode technologies include bematech , cisco , datalogic , datamax-o'neil , elo , epson , honeywell , intermec by honeywell , motorola , ncr , toshiba global commerce solutions and zebra technologies . the company 's key vendors for security technologies include arecont , axis , bosch , cisco , datacard , exacq technologies , fargo , hid , march networks , panasonic , ruckus wireless , samsung , sony and zebra card . the company 's key vendors in communications technologies include aruba , avaya , audiocodes , cisco , dialogic , extreme networks , meru networks , plantronics , polycom , shoretel and sonus . 22 index to financial statements during fiscal year 2014 , the barcode & security distribution segment added 3d printing solutions to their product offerings that are targeted at the manufacturing , healthcare , aerospace , and automotive markets . in april 2014 , it was announced that zebra technologies intends to purchase motorola solutions ' enterprise business . zebra technologies and motorola solutions represent key vendors in our barcode technologies business . in the fourth quarter of fiscal 2013 , we announced a new management structure to enhance our worldwide technology markets focus and growth strategy . this worldwide management structure creates new leadership roles and reporting segments to globally leverage the company 's leadership in specific technology markets . as a part of this new structure , scansource has created two technology segments , each with its own president . the two segments are worldwide barcode & security , which includes scansource pos and barcode and scansource security business units , and worldwide communications & services , which encompasses scansource catalyst , scansource communications and scansource services group business units . the reporting segments of worldwide barcode & security and worldwide communications & services replaced the geographic segments of north america and international and gave the company the ability to leverage its size and experience to deliver more value to our vendor and reseller partners in its existing markets . we restructured our european communications sales unit in the third quarter of fiscal year 2013 in order to support a strategy for profitable growth . the new organizational structure provided focused business unit leadership , as well as dedicated merchandising , sales and technical support teams , at the appropriate scale . in addition , the company moved certain european support functions to centralized global teams in the united states to gain efficiencies . the annualized cost savings in connection with the restructuring , principally associated with the elimination of positions , was estimated at approximately $ 3.1 million . the company incurred approximately $ 1.2 million in associated costs , including related severance expenses . these restructuring costs , which were accrued in the third quarter of fiscal year 2013 , are included in selling , general and administration costs in the accompanying consolidated income statements . for further discussion on our restructuring , refer to note 14 -restructuring costs . in the fourth quarter of fiscal year 2013 , the company decided not to proceed with the development of the enterprise resource planning ( `` erp `` ) project using the microsoft dynamics ax software and we wrote off substantially all of the total capitalized expenses related to the original project . the non-cash charge recorded of $ 28.2 million before the effect of income taxes ( $ 18.0 million net of the tax impact ) , included software development costs , hardware , software interfaces and other related costs . the remaining $ 0.6 million of the total $ 28.8 million capitalized balance was placed into service in july 2013. the software that was placed into service is not the erp system itself , but an auxiliary database system designed to assist in the management of the product offerings . prior to the write off , the capitalized software was included in property and equipment at cost on the consolidated balance sheets . in january 2013 , through the company 's wholly-owned subsidiary partner services , inc. ( `` psi `` ) , the company filed a lawsuit in the u.s. district court in atlanta , georgia against our former erp software systems integration partner , avanade , inc. ( `` avanade `` ) . in june 2014 , the parties reached a settlement agreement where both parties agreed to mutually dismiss all claims and counterclaims against the other in exchange for avanade 's payment to the company of $ 15.0 million . the company also reversed $ 2.0 million in accrued liabilities for unpaid invoices received from avanade and paid a contingency fee of $ 1.5 million to the law firm who represented the company in the lawsuit . the settlement , net of attorney fees and reversal of accrued liabilities is included in the impairment charges ( legal recovery ) line item on the consolidated income statements . in december 2013 , the company retained systems applications products ( `` sap `` ) for software platform and implementation consulting services for a new enterprise resource planning ( `` erp `` ) system . story_separator_special_tag worldwide communications & services the communications/services distribution segment consists of sales to technology resellers in our scansource communications business units in north america and europe , scansource catalyst in north america , and scansource services group . during fiscal year 2013 , net sales for this segment declined compared to the prior fiscal year , with little change attributable to foreign currency exchange translation . the decrease was largely attributable to the loss of juniper networks sales , which decreased approximately $ 109 million year-over-year . our distribution agreement with juniper networks ended in september 2012 . 30 index to financial statements scansource communications in north america had strong year-over-year growth . sales for scansource catalyst and scansource communications in europe declined primarily from the loss of juniper sales as mentioned above . gross profit the following table summarizes the company 's gross profit for the fiscal years ended june 30 : replace_table_token_18_th worldwide barcode & security gross profit for the barcode/security distribution segment decreased for the fiscal year ended june 30 , 2013. this reduction is the result of lower sales volumes . the gross profit expressed as a percentage of net sales was unchanged for the fiscal year 2013 compared to fiscal year 2012. worldwide communications & services gross profit for the communications/services distribution segment decreased for the fiscal year ended june 30 , 2013. this is the result of lower sales volume , primarily related to the loss of juniper networks revenues as described earlier . the gross profit expressed as a percentage of net sales increased for fiscal year 2013 compared to fiscal year 2012 driven by improved product sales mix and vendor incentives . operating expenses the following table summarizes the company 's operating expenses for the periods ended june 30 : replace_table_token_19_th selling , general and administrative expense increased for the fiscal year ending june 30 , 2013 as a result of an increase in our provision for doubtful accounts for the year ended june 30 , 2013. this increase was a result of increased expenses for the barcode/security segment in all geographies offset by recoveries and reserve reductions in north america . included in the barcode/security expense is the increased country specific reserves for venezuela that occurred during the current fiscal year . fiscal year 2013 selling , general and administrative expense also includes $ 2.1 million in costs associated with belgian tax compliance and personnel replacement costs , including professional fees and $ 1.2 million for restructuring costs associated with our communications business unit in europe . in the fourth quarter of fiscal 2013 , we recorded impairment charges from our erp project , and goodwill in our scansource communications europe and scansource brasil sales units as mentioned above . discussion on these impairments can be found 31 index to financial statements in the overview section of the md & a as well as note 3 - property & equipment and note 5 - goodwill and other identifiable intangible assets in the notes to the consolidated financial statements . we have elected to present changes in fair value of the contingent consideration owed to former shareholders of cdc separately from other selling , general and administrative expenses . in the current year , we have recorded a loss , driven by recurring amortization of the unrecognized fair value discount partially offset by income from changes to forecasted and actual results . operating income the following table summarizes the company 's operating income for the fiscal years ended june 30 : replace_table_token_20_th * nm - percentages are not meaningful worldwide barcode & security for the barcode/security distribution segment , operating income dollars and percentage decreased for the fiscal year ended june 30 , 2013. the change is largely the result of higher selling , general and administrative expenses which include a $ 15.1 million impairment expense related to scansource brasil , as mentioned in the overview above , as well as an increase in the provision for doubtful accounts . worldwide communications & services for the communications/services distribution segment , operating income in dollars and as a percentage of sales decreased . the change is attributable to lower gross margin dollars resulting from lower sales in fiscal year 2013 , the effect of the scansource communications europe restructuring costs , lower provision for doubtful accounts and $ 5.4 million of goodwill impairment charges . corporate corporate incurred a $ 28.2 million loss relating to the erp impairment charge discussed previously . total other ( income ) expense the following table summarizes the company 's total other ( income ) expense for the fiscal years ended june 30 : 32 index to financial statements replace_table_token_21_th interest expense reflects interest incurred on borrowings on the company 's revolving credit facility and long-term debt , including commitment fees on non-utilized borrowing availability . the decrease in interest expense is the result of lower average debt balances in the current year versus the prior year . the company generates interest income on longer-term interest-bearing accounts receivable , cash invested in brazil to fund a portion of future earnout payments and to supplement local working capital needs , and , to a lesser extent , interest earned on cash and cash equivalent balances in locations other than brazil . the reduction in interest income year over year is the result of lower cash balances in brazil in fiscal 2013 as compared to fiscal 2012. net foreign exchange gains and losses consist of foreign currency transactional and functional currency re-measurements , offset by net foreign currency exchange contract gains and losses . foreign exchange gains and losses are generated as the result of fluctuations in the value of the british pound versus the euro , the u.s. dollar versus the euro , the u.s. dollar versus the brazilian real and other currencies versus u.s. dollar . in september 2011 , we incurred a $ 2.5 million non-recurring loss in conjunction with an unfavorable forward exchange contract to purchase brazilian
| cash and cash equivalents totaled $ 194.9 million at june 30 , 2014 , compared to $ 148.2 million at june 30 , 2013 , of which $ 39.7 million and $ 23.8 million was held outside of the united states as of june 30 , 2014 and 2013 , respectively . checks released but not yet cleared from these accounts in the amounts of $ 84.1 million and $ 65.9 million are classified as accounts payable as of june 30 , 2014 and june 30 , 2013 , respectively . we conduct business in many locations throughout the world where we generate and use cash . the company provides for u.s. income taxes for the earnings of its canadian subsidiary . earnings from all other geographies will continue to be considered retained indefinitely for reinvestment . if these funds were needed in the operations of the united states , we would be required to record and pay significant income taxes upon repatriation of these funds . see note 11 - income taxes in the notes to the consolidated financial statements for further discussion . our net investment in working capital increased $ 101.5 million to $ 715.9 million at june 30 , 2014 from $ 614.4 million at june 30 , 2013 , principally from higher cash , accounts receivable and inventory balances , partially offset by higher accounts payable .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash and cash equivalents totaled $ 194.9 million at june 30 , 2014 , compared to $ 148.2 million at june 30 , 2013 , of which $ 39.7 million and $ 23.8 million was held outside of the united states as of june 30 , 2014 and 2013 , respectively . checks released but not yet cleared from these accounts in the amounts of $ 84.1 million and $ 65.9 million are classified as accounts payable as of june 30 , 2014 and june 30 , 2013 , respectively . we conduct business in many locations throughout the world where we generate and use cash . the company provides for u.s. income taxes for the earnings of its canadian subsidiary . earnings from all other geographies will continue to be considered retained indefinitely for reinvestment . if these funds were needed in the operations of the united states , we would be required to record and pay significant income taxes upon repatriation of these funds . see note 11 - income taxes in the notes to the consolidated financial statements for further discussion . our net investment in working capital increased $ 101.5 million to $ 715.9 million at june 30 , 2014 from $ 614.4 million at june 30 , 2013 , principally from higher cash , accounts receivable and inventory balances , partially offset by higher accounts payable .
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Suspicious Activity Report : scansource , inc. and its subsidiaries ( the `` company `` ) provide value-added distribution services for approximately 290 technology manufacturers and sells to approximately 28,000 resellers in the following specialty technology markets : pos and barcode , security and communications . the company operates in the united states , canada , latin america , and europe and uses centralized distribution centers for major geographic regions . the company distributes to the united states and canada from its southaven , mississippi distribution center ; to latin america principally from distribution centers located in florida , mexico and brazil ; and to europe from its distribution center in belgium . the company distributes products for many of its key vendors in all of its geographic markets ; however certain vendors only allow distribution to specific geographies . the company 's key vendors in barcode technologies include bematech , cisco , datalogic , datamax-o'neil , elo , epson , honeywell , intermec by honeywell , motorola , ncr , toshiba global commerce solutions and zebra technologies . the company 's key vendors for security technologies include arecont , axis , bosch , cisco , datacard , exacq technologies , fargo , hid , march networks , panasonic , ruckus wireless , samsung , sony and zebra card . the company 's key vendors in communications technologies include aruba , avaya , audiocodes , cisco , dialogic , extreme networks , meru networks , plantronics , polycom , shoretel and sonus . 22 index to financial statements during fiscal year 2014 , the barcode & security distribution segment added 3d printing solutions to their product offerings that are targeted at the manufacturing , healthcare , aerospace , and automotive markets . in april 2014 , it was announced that zebra technologies intends to purchase motorola solutions ' enterprise business . zebra technologies and motorola solutions represent key vendors in our barcode technologies business . in the fourth quarter of fiscal 2013 , we announced a new management structure to enhance our worldwide technology markets focus and growth strategy . this worldwide management structure creates new leadership roles and reporting segments to globally leverage the company 's leadership in specific technology markets . as a part of this new structure , scansource has created two technology segments , each with its own president . the two segments are worldwide barcode & security , which includes scansource pos and barcode and scansource security business units , and worldwide communications & services , which encompasses scansource catalyst , scansource communications and scansource services group business units . the reporting segments of worldwide barcode & security and worldwide communications & services replaced the geographic segments of north america and international and gave the company the ability to leverage its size and experience to deliver more value to our vendor and reseller partners in its existing markets . we restructured our european communications sales unit in the third quarter of fiscal year 2013 in order to support a strategy for profitable growth . the new organizational structure provided focused business unit leadership , as well as dedicated merchandising , sales and technical support teams , at the appropriate scale . in addition , the company moved certain european support functions to centralized global teams in the united states to gain efficiencies . the annualized cost savings in connection with the restructuring , principally associated with the elimination of positions , was estimated at approximately $ 3.1 million . the company incurred approximately $ 1.2 million in associated costs , including related severance expenses . these restructuring costs , which were accrued in the third quarter of fiscal year 2013 , are included in selling , general and administration costs in the accompanying consolidated income statements . for further discussion on our restructuring , refer to note 14 -restructuring costs . in the fourth quarter of fiscal year 2013 , the company decided not to proceed with the development of the enterprise resource planning ( `` erp `` ) project using the microsoft dynamics ax software and we wrote off substantially all of the total capitalized expenses related to the original project . the non-cash charge recorded of $ 28.2 million before the effect of income taxes ( $ 18.0 million net of the tax impact ) , included software development costs , hardware , software interfaces and other related costs . the remaining $ 0.6 million of the total $ 28.8 million capitalized balance was placed into service in july 2013. the software that was placed into service is not the erp system itself , but an auxiliary database system designed to assist in the management of the product offerings . prior to the write off , the capitalized software was included in property and equipment at cost on the consolidated balance sheets . in january 2013 , through the company 's wholly-owned subsidiary partner services , inc. ( `` psi `` ) , the company filed a lawsuit in the u.s. district court in atlanta , georgia against our former erp software systems integration partner , avanade , inc. ( `` avanade `` ) . in june 2014 , the parties reached a settlement agreement where both parties agreed to mutually dismiss all claims and counterclaims against the other in exchange for avanade 's payment to the company of $ 15.0 million . the company also reversed $ 2.0 million in accrued liabilities for unpaid invoices received from avanade and paid a contingency fee of $ 1.5 million to the law firm who represented the company in the lawsuit . the settlement , net of attorney fees and reversal of accrued liabilities is included in the impairment charges ( legal recovery ) line item on the consolidated income statements . in december 2013 , the company retained systems applications products ( `` sap `` ) for software platform and implementation consulting services for a new enterprise resource planning ( `` erp `` ) system . story_separator_special_tag worldwide communications & services the communications/services distribution segment consists of sales to technology resellers in our scansource communications business units in north america and europe , scansource catalyst in north america , and scansource services group . during fiscal year 2013 , net sales for this segment declined compared to the prior fiscal year , with little change attributable to foreign currency exchange translation . the decrease was largely attributable to the loss of juniper networks sales , which decreased approximately $ 109 million year-over-year . our distribution agreement with juniper networks ended in september 2012 . 30 index to financial statements scansource communications in north america had strong year-over-year growth . sales for scansource catalyst and scansource communications in europe declined primarily from the loss of juniper sales as mentioned above . gross profit the following table summarizes the company 's gross profit for the fiscal years ended june 30 : replace_table_token_18_th worldwide barcode & security gross profit for the barcode/security distribution segment decreased for the fiscal year ended june 30 , 2013. this reduction is the result of lower sales volumes . the gross profit expressed as a percentage of net sales was unchanged for the fiscal year 2013 compared to fiscal year 2012. worldwide communications & services gross profit for the communications/services distribution segment decreased for the fiscal year ended june 30 , 2013. this is the result of lower sales volume , primarily related to the loss of juniper networks revenues as described earlier . the gross profit expressed as a percentage of net sales increased for fiscal year 2013 compared to fiscal year 2012 driven by improved product sales mix and vendor incentives . operating expenses the following table summarizes the company 's operating expenses for the periods ended june 30 : replace_table_token_19_th selling , general and administrative expense increased for the fiscal year ending june 30 , 2013 as a result of an increase in our provision for doubtful accounts for the year ended june 30 , 2013. this increase was a result of increased expenses for the barcode/security segment in all geographies offset by recoveries and reserve reductions in north america . included in the barcode/security expense is the increased country specific reserves for venezuela that occurred during the current fiscal year . fiscal year 2013 selling , general and administrative expense also includes $ 2.1 million in costs associated with belgian tax compliance and personnel replacement costs , including professional fees and $ 1.2 million for restructuring costs associated with our communications business unit in europe . in the fourth quarter of fiscal 2013 , we recorded impairment charges from our erp project , and goodwill in our scansource communications europe and scansource brasil sales units as mentioned above . discussion on these impairments can be found 31 index to financial statements in the overview section of the md & a as well as note 3 - property & equipment and note 5 - goodwill and other identifiable intangible assets in the notes to the consolidated financial statements . we have elected to present changes in fair value of the contingent consideration owed to former shareholders of cdc separately from other selling , general and administrative expenses . in the current year , we have recorded a loss , driven by recurring amortization of the unrecognized fair value discount partially offset by income from changes to forecasted and actual results . operating income the following table summarizes the company 's operating income for the fiscal years ended june 30 : replace_table_token_20_th * nm - percentages are not meaningful worldwide barcode & security for the barcode/security distribution segment , operating income dollars and percentage decreased for the fiscal year ended june 30 , 2013. the change is largely the result of higher selling , general and administrative expenses which include a $ 15.1 million impairment expense related to scansource brasil , as mentioned in the overview above , as well as an increase in the provision for doubtful accounts . worldwide communications & services for the communications/services distribution segment , operating income in dollars and as a percentage of sales decreased . the change is attributable to lower gross margin dollars resulting from lower sales in fiscal year 2013 , the effect of the scansource communications europe restructuring costs , lower provision for doubtful accounts and $ 5.4 million of goodwill impairment charges . corporate corporate incurred a $ 28.2 million loss relating to the erp impairment charge discussed previously . total other ( income ) expense the following table summarizes the company 's total other ( income ) expense for the fiscal years ended june 30 : 32 index to financial statements replace_table_token_21_th interest expense reflects interest incurred on borrowings on the company 's revolving credit facility and long-term debt , including commitment fees on non-utilized borrowing availability . the decrease in interest expense is the result of lower average debt balances in the current year versus the prior year . the company generates interest income on longer-term interest-bearing accounts receivable , cash invested in brazil to fund a portion of future earnout payments and to supplement local working capital needs , and , to a lesser extent , interest earned on cash and cash equivalent balances in locations other than brazil . the reduction in interest income year over year is the result of lower cash balances in brazil in fiscal 2013 as compared to fiscal 2012. net foreign exchange gains and losses consist of foreign currency transactional and functional currency re-measurements , offset by net foreign currency exchange contract gains and losses . foreign exchange gains and losses are generated as the result of fluctuations in the value of the british pound versus the euro , the u.s. dollar versus the euro , the u.s. dollar versus the brazilian real and other currencies versus u.s. dollar . in september 2011 , we incurred a $ 2.5 million non-recurring loss in conjunction with an unfavorable forward exchange contract to purchase brazilian
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2,351 | for our selling , general and administrative ( sg & a ) expenses , we expect to continue to realize efficiencies from our operational excellence initiatives . however , since many of our fixed sg & a expenses are denominated in u.s. dollars , such as corporate and business unit headquarter expenses and intangible asset amortization , our sg & a expenses may not decrease in similar proportion to net sales decreases expected from changes in foreign currency exchange rates . results of operations net sales by reportable segment the following tables present net sales by reportable segment and the components of the percentage changes ( dollars in millions ) : replace_table_token_2_th 20 zimmer holdings , inc. 2014 form 10-k annual report replace_table_token_3_th ยforeign exchangeย as used in the tables in this report represents the effect of changes in foreign currency exchange rates on sales growth . net sales by product category the following tables present net sales by product category and the components of the percentage changes ( dollars in millions ) : replace_table_token_4_th replace_table_token_5_th 21 zimmer holdings , inc. 2014 form 10-k annual report the following table presents net sales by product category by region ( dollars in millions ) : replace_table_token_6_th demand ( volume and mix ) trends increased volume and changes in the mix of product sales contributed 4 percentage points of year-over-year sales growth in 2014 , which was a lower growth rate than experienced in 2013 compared to 2012. in 2013 , accelerated growth was fueled by the introduction of new products , such as persona the personalized knee system and the transposal fluid waste management system . in 2014 , while new products continued to drive sales growth , their impact on a year-over-year basis was not as significant . we believe long-term indicators point toward sustained growth driven by an aging global population , growth in emerging markets , obesity , proven clinical benefits , new material technologies , advances in surgical techniques and more active lifestyles , among other factors . in addition , demand for clinically proven premium products and patient specific devices are expected to continue to positively affect sales growth in markets that recognize the value of these advanced technologies . pricing trends global selling prices had a negative effect of 2 percent on year-over-year sales during 2014. the negative 2 percent was consistent with prior years as we continued to experience pricing pressure from governmental healthcare cost containment efforts and from local hospitals and health systems . for 2015 , we expect continued pricing pressure similar to prior years . foreign currency exchange rates for 2014 , foreign currency exchange rates resulted in a 1 percent decrease in sales , driven by the strengthening of the u.s. dollar versus the japanese yen as well as a few other currencies in other regions in which we operate . if foreign currency exchange rates remain consistent with december 31 , 2014 rates , we estimate that a stronger dollar versus foreign currency exchange rates will have a greater negative effect on sales in 2015 than in 2014. we address currency risk through regular operating and financing activities and through the use of foreign currency forward contracts and foreign currency options solely to manage foreign currency volatility and risk . changes to foreign currency exchange rates affect sales growth , but due to gains/losses on hedge contracts and options , which are recorded in cost of products sold , the effect on net earnings in the near term is expected to be partially offset . 22 zimmer holdings , inc. 2014 form 10-k annual report sales by product category knees knee sales increased 3 percent in 2014 compared to a 4 percent increase in 2013. our knee product category has benefited from recent product introductions , such as persona the personalized knee system and joint preservation solutions . however , the volume/mix growth from new product introductions has been tempered by pricing pressure in all our reporting segments . in 2014 , we continued a broader launch of persona the personalized knee system . we intend to continue to deploy implant and instrument sets for this knee system to all geographic regions in 2015 and beyond . our nexgen complete knee solution product line is still our leading global knee system in terms of sales . products driving growth in this category , in addition to persona the personalized knee system , included the zimmer unicompartmental high flex knee and our joint preservation solutions . in europe , changes in foreign currency exchange rates affected knee sales in 2014 and 2013 by negative 1 percent and positive 2 percent , respectively . in asia pacific , changes in foreign currency exchange rates had negative effects on knee sales of 5 percent and 9 percent in 2014 and 2013 , respectively . hips hip sales were flat in 2014 after a decline of 1 percent in 2013. positive volume and mix trends continue to be offset by pricing pressure . leading hip stem sales were the zimmer m/l taper hip prosthesis , the zimmer m/l taper hip prosthesis with kinectiv technology , the cls spotorno stem from the cls hip system , the alloclassic zweymรผller hip stem and the fitmore hip stem . products experiencing growth in this category included the avenir mรผller stem , the wagner sl revision hip stem , the continuum acetabular system , the trilogy it acetabular system , the allofit it alloclassic acetabular system , vivacit-e highly crosslinked polyethylene liners and biolox delta heads . in europe , changes in foreign currency exchange rates affected hip sales in 2014 and 2013 by negative 1 percent and positive 2 percent , respectively . in asia pacific , changes in foreign currency exchange rates had negative effects on hip sales of 6 percent and 11 percent in 2014 and 2013 , respectively . story_separator_special_tag we will also pay the accrued and unpaid interest on the senior notes to the redemption date . we have a senior credit facility ( senior credit facility ) that contains : ( i ) the 5-year unsecured term loan in the principal amount of $ 3.0 billion , and ( ii ) a 5-year unsecured multicurrency revolving facility ( multicurrency revolving facility ) in the principal amount of $ 1.35 billion . the senior credit facility replaces a previous credit agreement that provided for a $ 1.35 billion revolving credit facility that would have matured in may 2017. the multicurrency revolving facility will mature in may 2019 , with two one-year extensions available at our option . borrowings under the multicurrency revolving facility may be used for general corporate purposes . there were no borrowings outstanding under the multicurrency revolving facility as of december 31 , 2014. the availability of the term loan is conditioned on , among other things , the consummation of the biomet merger . the term loan will mature five years after the initial borrowing . borrowings under the term loan may only be used by us to fund , in part , the biomet merger , including the payment of any indebtedness of lvb and its subsidiaries , and to pay all or a portion of the costs incurred by us in connection with the biomet merger . we must reduce unused commitments under the term loan and prepay the borrowings under the term loan with any net cash proceeds received from specified asset sales , issuances or sales of equity and incurrences of borrowed 27 zimmer holdings , inc. 2014 form 10-k annual report money indebtedness , subject to certain exceptions . the commitments under the term loan automatically terminate on the earliest to occur of ( i ) the funding and disbursement of term loan funds to us , ( ii ) april 24 , 2015 , as such date may be extended pursuant to the merger agreement or ( iii ) termination of the merger agreement . we and certain of our wholly owned foreign subsidiaries are the borrowers under the senior credit facility . borrowings under the senior credit facility bear interest at floating rates based upon indices determined by the currency of the borrowings plus an applicable margin determined by reference to our senior unsecured long-term credit rating , or at an alternate base rate , or , in the case of borrowings under the multicurrency revolving facility only , at a fixed-rate determined through a competitive bid process . the senior credit facility contains customary affirmative and negative covenants and events of default for an unsecured financing arrangement , including , among other things , limitations on consolidations , mergers and sales of assets . financial covenants include a consolidated indebtedness to consolidated ebitda ratio of no greater than 3.0 to 1.0 in periods prior to any term loan funding and no greater than 5.0 to 1.0 in periods after the term loan is funded . if our credit rating falls below investment grade , additional restrictions would result , including restrictions on investments and payment of dividends . we were in compliance with all covenants under the senior credit facility as of december 31 , 2014. commitments under the senior credit facility are subject to certain fees . on the multicurrency revolving facility , we pay a facility fee at a rate determined by reference to our senior unsecured long-term credit rating . on the term loan , we pay a fee on the daily actual unused commitment for the period from and including july 23 , 2014 through the day the commitments under the term loan terminate . the bridge credit agreement is a 364-day unsecured committed bridge facility in the principal amount of $ 7.66 billion . funding of loans under the bridge credit agreement is conditioned on , among other things , the consummation of the biomet merger . any loans under the bridge credit agreement will mature 364 days after the funding date of the loans . the bridge credit agreement requires us to reduce unused commitments and prepay the loans with any net cash proceeds received from specified asset sales , issuances or sales of equity and incurrences of borrowed money indebtedness , such as new senior notes we intend to issue , subject to certain exceptions . commitments under the bridge credit agreement automatically terminate on the earliest to occur of : ( i ) the funding and disbursement of the loans , ( ii ) april 24 , 2015 , as such date may be extended pursuant to the merger agreement , or ( iii ) termination of the merger agreement . proceeds of loans under the bridge credit agreement may only be used to fund , in part , the biomet merger , including the payment of any indebtedness of lvb and its subsidiaries , and to pay all or a portion of the costs incurred by us in connection with the biomet merger . zimmer holdings is the borrower under the bridge credit agreement . borrowings under the bridge credit agreement bear interest at floating rates based upon libor plus an applicable margin determined by reference to our senior unsecured long-term credit rating , or at an alternate base rate . the bridge credit agreement contains customary affirmative and negative covenants and events of default for an unsecured financing arrangement , including , among other things , limitations on consolidations , mergers and sales of assets . financial covenants include a consolidated indebtedness to consolidated ebitda ratio of no greater than 5.0 to 1.0. we were in compliance with all covenants under the bridge credit agreement as of december 31 , 2014. if our credit rating falls below investment grade , additional restrictions would result , including restrictions on investments and payment of dividends . we will pay a funding fee if we borrow under the bridge credit
| liquidity and capital resources cash flows provided by operating activities were $ 1,052.8 million in 2014 , compared to $ 963.1 million in 2013. the principal source of cash from operating activities was net earnings . non-cash items included in net earnings accounted for another $ 346.4 million of operating cash in 2014. all other items of operating cash flows reflect a use of $ 12.6 million of cash in 2014 , compared to a use of $ 84.9 million in 2013. the increased cash flows provided by operating activities in 2014 were primarily due to improved cash flows generated from receivables collections , especially in europe , lower funding necessary for our u.s. pension plans , and receipt of insurance proceeds related to durom cup product liability claims . these favorable items were partially offset by higher tax payments for certain unresolved matters in order to limit the potential impact of irs interest charges and inventory investments . at december 31 , 2014 , we had 64 days of sales outstanding in trade accounts receivable , which was 1 day less than at december 31 , 2013. our days of sales outstanding reflect the reimbursement patterns of the healthcare industry in the markets where we compete . collection of trade accounts receivable is influenced by insurance reimbursements and government budgets , among other things . days of sales outstanding are lowest in our americas reporting segment , as the u.s. healthcare system has a higher percentage of private-pay insurers who generally pay more quickly than government-based healthcare systems . in our europe and asia pacific reporting segments , days of sales outstanding are higher , as healthcare is typically sponsored by governments which tend to pay more slowly . additionally , there are some seasonal trends in our days of sales outstanding as it usually trends higher in our third quarter due to lower sales volumes and is lower in our fourth quarter when sales volumes are at their highest . our days of sales outstanding in the past three years have ranged between 64 and 73 days .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources cash flows provided by operating activities were $ 1,052.8 million in 2014 , compared to $ 963.1 million in 2013. the principal source of cash from operating activities was net earnings . non-cash items included in net earnings accounted for another $ 346.4 million of operating cash in 2014. all other items of operating cash flows reflect a use of $ 12.6 million of cash in 2014 , compared to a use of $ 84.9 million in 2013. the increased cash flows provided by operating activities in 2014 were primarily due to improved cash flows generated from receivables collections , especially in europe , lower funding necessary for our u.s. pension plans , and receipt of insurance proceeds related to durom cup product liability claims . these favorable items were partially offset by higher tax payments for certain unresolved matters in order to limit the potential impact of irs interest charges and inventory investments . at december 31 , 2014 , we had 64 days of sales outstanding in trade accounts receivable , which was 1 day less than at december 31 , 2013. our days of sales outstanding reflect the reimbursement patterns of the healthcare industry in the markets where we compete . collection of trade accounts receivable is influenced by insurance reimbursements and government budgets , among other things . days of sales outstanding are lowest in our americas reporting segment , as the u.s. healthcare system has a higher percentage of private-pay insurers who generally pay more quickly than government-based healthcare systems . in our europe and asia pacific reporting segments , days of sales outstanding are higher , as healthcare is typically sponsored by governments which tend to pay more slowly . additionally , there are some seasonal trends in our days of sales outstanding as it usually trends higher in our third quarter due to lower sales volumes and is lower in our fourth quarter when sales volumes are at their highest . our days of sales outstanding in the past three years have ranged between 64 and 73 days .
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Suspicious Activity Report : for our selling , general and administrative ( sg & a ) expenses , we expect to continue to realize efficiencies from our operational excellence initiatives . however , since many of our fixed sg & a expenses are denominated in u.s. dollars , such as corporate and business unit headquarter expenses and intangible asset amortization , our sg & a expenses may not decrease in similar proportion to net sales decreases expected from changes in foreign currency exchange rates . results of operations net sales by reportable segment the following tables present net sales by reportable segment and the components of the percentage changes ( dollars in millions ) : replace_table_token_2_th 20 zimmer holdings , inc. 2014 form 10-k annual report replace_table_token_3_th ยforeign exchangeย as used in the tables in this report represents the effect of changes in foreign currency exchange rates on sales growth . net sales by product category the following tables present net sales by product category and the components of the percentage changes ( dollars in millions ) : replace_table_token_4_th replace_table_token_5_th 21 zimmer holdings , inc. 2014 form 10-k annual report the following table presents net sales by product category by region ( dollars in millions ) : replace_table_token_6_th demand ( volume and mix ) trends increased volume and changes in the mix of product sales contributed 4 percentage points of year-over-year sales growth in 2014 , which was a lower growth rate than experienced in 2013 compared to 2012. in 2013 , accelerated growth was fueled by the introduction of new products , such as persona the personalized knee system and the transposal fluid waste management system . in 2014 , while new products continued to drive sales growth , their impact on a year-over-year basis was not as significant . we believe long-term indicators point toward sustained growth driven by an aging global population , growth in emerging markets , obesity , proven clinical benefits , new material technologies , advances in surgical techniques and more active lifestyles , among other factors . in addition , demand for clinically proven premium products and patient specific devices are expected to continue to positively affect sales growth in markets that recognize the value of these advanced technologies . pricing trends global selling prices had a negative effect of 2 percent on year-over-year sales during 2014. the negative 2 percent was consistent with prior years as we continued to experience pricing pressure from governmental healthcare cost containment efforts and from local hospitals and health systems . for 2015 , we expect continued pricing pressure similar to prior years . foreign currency exchange rates for 2014 , foreign currency exchange rates resulted in a 1 percent decrease in sales , driven by the strengthening of the u.s. dollar versus the japanese yen as well as a few other currencies in other regions in which we operate . if foreign currency exchange rates remain consistent with december 31 , 2014 rates , we estimate that a stronger dollar versus foreign currency exchange rates will have a greater negative effect on sales in 2015 than in 2014. we address currency risk through regular operating and financing activities and through the use of foreign currency forward contracts and foreign currency options solely to manage foreign currency volatility and risk . changes to foreign currency exchange rates affect sales growth , but due to gains/losses on hedge contracts and options , which are recorded in cost of products sold , the effect on net earnings in the near term is expected to be partially offset . 22 zimmer holdings , inc. 2014 form 10-k annual report sales by product category knees knee sales increased 3 percent in 2014 compared to a 4 percent increase in 2013. our knee product category has benefited from recent product introductions , such as persona the personalized knee system and joint preservation solutions . however , the volume/mix growth from new product introductions has been tempered by pricing pressure in all our reporting segments . in 2014 , we continued a broader launch of persona the personalized knee system . we intend to continue to deploy implant and instrument sets for this knee system to all geographic regions in 2015 and beyond . our nexgen complete knee solution product line is still our leading global knee system in terms of sales . products driving growth in this category , in addition to persona the personalized knee system , included the zimmer unicompartmental high flex knee and our joint preservation solutions . in europe , changes in foreign currency exchange rates affected knee sales in 2014 and 2013 by negative 1 percent and positive 2 percent , respectively . in asia pacific , changes in foreign currency exchange rates had negative effects on knee sales of 5 percent and 9 percent in 2014 and 2013 , respectively . hips hip sales were flat in 2014 after a decline of 1 percent in 2013. positive volume and mix trends continue to be offset by pricing pressure . leading hip stem sales were the zimmer m/l taper hip prosthesis , the zimmer m/l taper hip prosthesis with kinectiv technology , the cls spotorno stem from the cls hip system , the alloclassic zweymรผller hip stem and the fitmore hip stem . products experiencing growth in this category included the avenir mรผller stem , the wagner sl revision hip stem , the continuum acetabular system , the trilogy it acetabular system , the allofit it alloclassic acetabular system , vivacit-e highly crosslinked polyethylene liners and biolox delta heads . in europe , changes in foreign currency exchange rates affected hip sales in 2014 and 2013 by negative 1 percent and positive 2 percent , respectively . in asia pacific , changes in foreign currency exchange rates had negative effects on hip sales of 6 percent and 11 percent in 2014 and 2013 , respectively . story_separator_special_tag we will also pay the accrued and unpaid interest on the senior notes to the redemption date . we have a senior credit facility ( senior credit facility ) that contains : ( i ) the 5-year unsecured term loan in the principal amount of $ 3.0 billion , and ( ii ) a 5-year unsecured multicurrency revolving facility ( multicurrency revolving facility ) in the principal amount of $ 1.35 billion . the senior credit facility replaces a previous credit agreement that provided for a $ 1.35 billion revolving credit facility that would have matured in may 2017. the multicurrency revolving facility will mature in may 2019 , with two one-year extensions available at our option . borrowings under the multicurrency revolving facility may be used for general corporate purposes . there were no borrowings outstanding under the multicurrency revolving facility as of december 31 , 2014. the availability of the term loan is conditioned on , among other things , the consummation of the biomet merger . the term loan will mature five years after the initial borrowing . borrowings under the term loan may only be used by us to fund , in part , the biomet merger , including the payment of any indebtedness of lvb and its subsidiaries , and to pay all or a portion of the costs incurred by us in connection with the biomet merger . we must reduce unused commitments under the term loan and prepay the borrowings under the term loan with any net cash proceeds received from specified asset sales , issuances or sales of equity and incurrences of borrowed 27 zimmer holdings , inc. 2014 form 10-k annual report money indebtedness , subject to certain exceptions . the commitments under the term loan automatically terminate on the earliest to occur of ( i ) the funding and disbursement of term loan funds to us , ( ii ) april 24 , 2015 , as such date may be extended pursuant to the merger agreement or ( iii ) termination of the merger agreement . we and certain of our wholly owned foreign subsidiaries are the borrowers under the senior credit facility . borrowings under the senior credit facility bear interest at floating rates based upon indices determined by the currency of the borrowings plus an applicable margin determined by reference to our senior unsecured long-term credit rating , or at an alternate base rate , or , in the case of borrowings under the multicurrency revolving facility only , at a fixed-rate determined through a competitive bid process . the senior credit facility contains customary affirmative and negative covenants and events of default for an unsecured financing arrangement , including , among other things , limitations on consolidations , mergers and sales of assets . financial covenants include a consolidated indebtedness to consolidated ebitda ratio of no greater than 3.0 to 1.0 in periods prior to any term loan funding and no greater than 5.0 to 1.0 in periods after the term loan is funded . if our credit rating falls below investment grade , additional restrictions would result , including restrictions on investments and payment of dividends . we were in compliance with all covenants under the senior credit facility as of december 31 , 2014. commitments under the senior credit facility are subject to certain fees . on the multicurrency revolving facility , we pay a facility fee at a rate determined by reference to our senior unsecured long-term credit rating . on the term loan , we pay a fee on the daily actual unused commitment for the period from and including july 23 , 2014 through the day the commitments under the term loan terminate . the bridge credit agreement is a 364-day unsecured committed bridge facility in the principal amount of $ 7.66 billion . funding of loans under the bridge credit agreement is conditioned on , among other things , the consummation of the biomet merger . any loans under the bridge credit agreement will mature 364 days after the funding date of the loans . the bridge credit agreement requires us to reduce unused commitments and prepay the loans with any net cash proceeds received from specified asset sales , issuances or sales of equity and incurrences of borrowed money indebtedness , such as new senior notes we intend to issue , subject to certain exceptions . commitments under the bridge credit agreement automatically terminate on the earliest to occur of : ( i ) the funding and disbursement of the loans , ( ii ) april 24 , 2015 , as such date may be extended pursuant to the merger agreement , or ( iii ) termination of the merger agreement . proceeds of loans under the bridge credit agreement may only be used to fund , in part , the biomet merger , including the payment of any indebtedness of lvb and its subsidiaries , and to pay all or a portion of the costs incurred by us in connection with the biomet merger . zimmer holdings is the borrower under the bridge credit agreement . borrowings under the bridge credit agreement bear interest at floating rates based upon libor plus an applicable margin determined by reference to our senior unsecured long-term credit rating , or at an alternate base rate . the bridge credit agreement contains customary affirmative and negative covenants and events of default for an unsecured financing arrangement , including , among other things , limitations on consolidations , mergers and sales of assets . financial covenants include a consolidated indebtedness to consolidated ebitda ratio of no greater than 5.0 to 1.0. we were in compliance with all covenants under the bridge credit agreement as of december 31 , 2014. if our credit rating falls below investment grade , additional restrictions would result , including restrictions on investments and payment of dividends . we will pay a funding fee if we borrow under the bridge credit
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2,352 | the price of home heating oil is closely linked to the price refiners pay for crude oil , which is the principal cost component of home heating oil . the volatility in the wholesale cost of home heating oil , as measured by the new york mercantile exchange ( โ nymex โ ) , for the fiscal years ending september 30 , 2014 , through 2018 , on a quarterly basis , is illustrated in the following chart ( price per gallon ) : replace_table_token_9_th 31 on november 30 , 2018 , the nymex ultra low sulfur diesel contract closed at $ 1.85 per gallon or $ 0.20 per gallon lower than the average of $ 2.05 in fiscal 2018. income taxes new federal income tax legislation on december 22 , 2017 , the tax cuts and jobs act ( the โ tax reform act โ ) was enacted into law . the tax reform act contains several key tax provisions that will impact the company , including the reduction of the corporate federal income tax rate from 35 % to 21 % effective january 1 , 2018. in addition , between september 28 , 2017 and december 31 , 2022 , the tax reform act allows for the full depreciation , in the year acquired , for certain fixed assets purchased in that year ( also known as 100 % bonus depreciation ) . during fiscal 2018 , the company recorded an $ 11.1 million discrete income tax benefit for the re-measurement of deferred tax assets and liabilities due to the change in the federal corporate income tax rate on which the deferred taxes are based . excluding the $ 11.1 million benefit recorded to income tax expense , our combined federal , state , and local effective income tax rate was reduced from 43.1 % at september 30 , 2017 to 29.6 % for the twelve months ended september 30 , 2018. book versus tax deductions the amount of cash flow that we generate in any given year depends upon a variety of factors including the amount of cash income taxes that we are required to pay , which will increase as tax depreciation and amortization decreases . the amount of depreciation and amortization that we deduct for book ( i.e . , financial reporting ) purposes will differ from the amount that the company can deduct for federal tax purposes . the table below compares the estimated depreciation and amortization for book purposes to the amount that we expect to deduct for federal tax purposes based on currently owned assets . we file our tax returns based on a calendar year . the amounts below are based on our september 30 fiscal year , and the tax amounts include any 100 % bonus depreciation available for fixed assets purchased between october 1 , 2017 and september 30 , 2018. however , this table does not include any forecast of future annual capital purchases . given historical levels of annual capital purchases and the current law related to federal bonus depreciation , it is likely that federal tax depreciation and amortization will exceed book depreciation and amortization for most , if not all , of the periods presented in the table below . estimated depreciation and amortization expense replace_table_token_10_th weather hedge contracts weather conditions have a significant impact on the demand for home heating oil and propane because certain customers depend on these products principally for space heating purposes . actual weather conditions may vary substantially from year to year , significantly affecting our financial performance . to partially mitigate the adverse effect of warm weather on cash flow , we have used weather hedging contracts for a number of years with several providers . under these contracts , we are entitled to a payment if the total number of degree days within the hedge period is less than the ten year average . the โ payment thresholds , โ or strikes , are set at various levels . in addition , we will be obligated to make a payment capped at $ 5.0 million if degree days exceed the ten year average . the hedge period 32 runs from november 1 through march 31 , taken as a whole , for each respective fiscal year . in fiscal 2018 , the company recorded a charge of $ 1.9 million due to colder than average weather conditions . for fiscal 2019 , 2020 and 2021 the maximum that the company can receive is $ 12.5 million and the maximum that the company may be obligated to pay is $ 5.0 million . per gallon gross profit margins we believe home heating oil and propane margins should be evaluated on a cents per gallon basis ( before the effects of increases or decreases in the fair value of derivative instruments ) , as we believe that realized per gallon margins should not include the impact of non-cash changes in the market value of hedges before the settlement of the underlying transaction . a significant portion of our home heating oil volume is sold to individual customers under an arrangement pre-establishing a ceiling price or fixed price for home heating oil over a fixed period of time , generally twelve to twenty-four months ( โ price-protected โ customers ) . when these price-protected customers agree to purchase home heating oil from us for the next heating season , we purchase option contracts , swaps and futures contracts for a substantial majority of the heating oil that we expect to sell to these customers . the amount of home heating oil volume that we hedge per price-protected customer is based upon the estimated fuel consumption per average customer per month . in the event that the actual usage exceeds the amount of the hedged volume on a monthly basis , we may be required to obtain additional volume at unfavorable costs . story_separator_special_tag delivery and branch expenses for fiscal 2018 , delivery and branch expenses increased $ 51.1 million , or 16.7 % , to $ 357.6 million , compared to $ 306.5 million for fiscal 2017 , due to additional costs from acquisitions of $ 18.2 million , as well as a $ 31.0 million , or 10.1 % expense increase in the base business , and a $ 1.9 million charge related to an amount due under our weather hedge contract , as temperatures were slightly colder than the payment threshold . ( the weather hedge covered the period from november 1 , 2017 to march 31 , 2018 , taken as a whole . ) expenses in the base business rose by 10.1 % , exceeding the 5.7 % increase in home heating oil and propane volume sold . the extremely cold weather conditions experienced in late december 2017 and early january 2018 , as previously mentioned , not only increased the demand for service calls but also drove an increase in direct delivery expense as well as many other branch expenses . certain december and january deliveries were made at premium labor rates , and the unusual weather conditions necessitated increased staffing levels for delivery and office personnel to handle the tremendous influx of customer inquiries regarding the status of their delivery or service call . we estimate that the extremely cold weather conditions in january 2018 resulted in unanticipated expenses of $ 2.8 million and the increase in volume sold in the base business resulted in higher costs of $ 2.6 million . the company also saw an increase in credit card fees and bad debt expense of $ 5.7 million tied to the higher cost of product and greater use of credit cards . insurance expense rose by $ 4.5 million largely reflecting an increase in the number of insurance claims due in part to the extreme weather conditions . in addition , our fixed costs increased by $ 3.6 million as we strengthened our customer service , sales , operations , and information technology departments . in recognition of the opportunity to differentiate star and , thereby , to attract and retain customers through our service offerings , we have begun offering a concierge level service as a test program , which led to an increase in delivery and branch expenses of $ 3.4 million . we also experienced increases in rent , plant maintenance , higher vehicle fuel costs and increased customer concessions in the base business totaling $ 2.6 million , incurred rebranding expenses of $ 1.1 million , and we also took a charge for severance of $ 0.5 million during the fourth quarter of 2018 as 11 positions were eliminated which should save us over $ 2 million in fiscal 2019. in the prior year 's comparable period we provided disaster relief services and recorded a net benefit to delivery and branch of $ 0.5 million . finally , normal salary , benefit and other expense changes totaled $ 3.7 million , or 1.2 % of the increase . depreciation and amortization for fiscal 2018 , depreciation and amortization expense increased by $ 3.7 million , or 13.2 % , to $ 31.6 million , compared to $ 27.9 million for fiscal 2017 , as increases from acquisitions and accelerated amortization of certain 38 tradenames related to rebranding more than offset the impact of certain assets that became fully amortized . general and administrative expenses for fiscal 2018 , general and administrative expenses decreased $ 0.8 million , to $ 24.2 million , from $ 25.0 million for fiscal 2017 , primarily due to lower legal and professional expenses of $ 1.2 million . in fiscal 2017 the company incurred legal and professional fees related to its october 2017 conversion to a c corporation that did not reoccur in fiscal 2018. this reduction in legal and professional expenses plus lower profit sharing expense of $ 0.3 million and lower frozen pension expense of $ 0.3 million , was largely offset by the costs of increased human resource staffing and other normal salary and benefit changes totaling $ 1.0 million . the company accrues approximately 6 % of adjusted ebitda , as defined in the profit sharing plan , for distribution to its employees , and this amount is payable when the company achieves adjusted ebitda of at least 70 % of the amount budgeted . the dollar amount of the profit sharing pool is subject to increases and decreases in line with increases and decreases in adjusted ebitda . finance charge income for fiscal 2018 , finance charge income increased by $ 0.6 million , or 15.9 % , to $ 4.7 million compared to $ 4.1 million for fiscal 2017. the income primarily represents late customer payment charges . the increase in the wholesale cost of product and the increase in volume led to higher product sales and thus an increase in accounts receivable balances subject to a finance charge . interest expense , net for fiscal 2018 , interest expense increased $ 1.9 million , or 28.6 % , to $ 8.7 million compared to $ 6.8 million for fiscal 2017 primarily due to an increase in average borrowings of $ 53.1 million from $ 81.7 million in fiscal 2017 to $ 134.9 million in fiscal 2018 and an increase in the weighted average interest rate from 4.1 % in fiscal 2017 to 4.6 % in fiscal 2018. the increase in average borrowings of $ 53.1 million was used to fund higher working capital needs , acquisitions and an investment into our captive insurance company . funding of the captive reduced the need to secure our insurance liability with letters of credit . to hedge against rising interest rates , the company entered into an interest rate swap in july 2018 for $ 50.0 million , or 50 % , of our long term debt . amortization of debt issuance
| in cash and $ 1.5 million of deferred liabilities . the gross purchase price was allocated $ 15 . 3 million to intangible assets , $ 7.5 million to fixed assets and $ 2.4 million to working capital . in october 2017 , we deposited $ 34.2 million of cash into an irrevocable trust to secure certain liabilities for our captive insurance company and , as a result , $ 36.6 million of letters of credit were cancelled that previously had secured these liabilities . subsequently , $ 1.0 million of earnings have been reinvested into the irrevocable trust . the cash deposited into the trust is shown on our balance sheet as investments and , correspondingly , reduced cash on our balance sheet . we believe that the investment into the irrevocable trust will lower our letter of credit fees , increase interest income on invested cash balances , and provide us with certain tax advantages attributable to a captive insurance company . our capital expenditures for fiscal 2017 totaled $ 12.2 million , as we invested in computer hardware and software ( $ 4.1 million ) , refurbished certain physical plants ( $ 2.5 million ) , expanded our propane operations ( $ 2.5 million ) and made additions to our fleet ( $ 2.9 million ) and other equipment ( $ 0.2 million ) . we also completed seven acquisitions for aggregate purchase price of approximately $ 44.8 million ; comprised of $ 43.3 million in cash and $ 1.5 million of deferred liabilities ( including $ 0.6 million of contingent consideration ) . the gross purchase price was allocated $ 37.5 million to intangible assets , $ 10.2 million to fixed assets and reduced by $ 2.9 million in working capital credits .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```in cash and $ 1.5 million of deferred liabilities . the gross purchase price was allocated $ 15 . 3 million to intangible assets , $ 7.5 million to fixed assets and $ 2.4 million to working capital . in october 2017 , we deposited $ 34.2 million of cash into an irrevocable trust to secure certain liabilities for our captive insurance company and , as a result , $ 36.6 million of letters of credit were cancelled that previously had secured these liabilities . subsequently , $ 1.0 million of earnings have been reinvested into the irrevocable trust . the cash deposited into the trust is shown on our balance sheet as investments and , correspondingly , reduced cash on our balance sheet . we believe that the investment into the irrevocable trust will lower our letter of credit fees , increase interest income on invested cash balances , and provide us with certain tax advantages attributable to a captive insurance company . our capital expenditures for fiscal 2017 totaled $ 12.2 million , as we invested in computer hardware and software ( $ 4.1 million ) , refurbished certain physical plants ( $ 2.5 million ) , expanded our propane operations ( $ 2.5 million ) and made additions to our fleet ( $ 2.9 million ) and other equipment ( $ 0.2 million ) . we also completed seven acquisitions for aggregate purchase price of approximately $ 44.8 million ; comprised of $ 43.3 million in cash and $ 1.5 million of deferred liabilities ( including $ 0.6 million of contingent consideration ) . the gross purchase price was allocated $ 37.5 million to intangible assets , $ 10.2 million to fixed assets and reduced by $ 2.9 million in working capital credits .
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Suspicious Activity Report : the price of home heating oil is closely linked to the price refiners pay for crude oil , which is the principal cost component of home heating oil . the volatility in the wholesale cost of home heating oil , as measured by the new york mercantile exchange ( โ nymex โ ) , for the fiscal years ending september 30 , 2014 , through 2018 , on a quarterly basis , is illustrated in the following chart ( price per gallon ) : replace_table_token_9_th 31 on november 30 , 2018 , the nymex ultra low sulfur diesel contract closed at $ 1.85 per gallon or $ 0.20 per gallon lower than the average of $ 2.05 in fiscal 2018. income taxes new federal income tax legislation on december 22 , 2017 , the tax cuts and jobs act ( the โ tax reform act โ ) was enacted into law . the tax reform act contains several key tax provisions that will impact the company , including the reduction of the corporate federal income tax rate from 35 % to 21 % effective january 1 , 2018. in addition , between september 28 , 2017 and december 31 , 2022 , the tax reform act allows for the full depreciation , in the year acquired , for certain fixed assets purchased in that year ( also known as 100 % bonus depreciation ) . during fiscal 2018 , the company recorded an $ 11.1 million discrete income tax benefit for the re-measurement of deferred tax assets and liabilities due to the change in the federal corporate income tax rate on which the deferred taxes are based . excluding the $ 11.1 million benefit recorded to income tax expense , our combined federal , state , and local effective income tax rate was reduced from 43.1 % at september 30 , 2017 to 29.6 % for the twelve months ended september 30 , 2018. book versus tax deductions the amount of cash flow that we generate in any given year depends upon a variety of factors including the amount of cash income taxes that we are required to pay , which will increase as tax depreciation and amortization decreases . the amount of depreciation and amortization that we deduct for book ( i.e . , financial reporting ) purposes will differ from the amount that the company can deduct for federal tax purposes . the table below compares the estimated depreciation and amortization for book purposes to the amount that we expect to deduct for federal tax purposes based on currently owned assets . we file our tax returns based on a calendar year . the amounts below are based on our september 30 fiscal year , and the tax amounts include any 100 % bonus depreciation available for fixed assets purchased between october 1 , 2017 and september 30 , 2018. however , this table does not include any forecast of future annual capital purchases . given historical levels of annual capital purchases and the current law related to federal bonus depreciation , it is likely that federal tax depreciation and amortization will exceed book depreciation and amortization for most , if not all , of the periods presented in the table below . estimated depreciation and amortization expense replace_table_token_10_th weather hedge contracts weather conditions have a significant impact on the demand for home heating oil and propane because certain customers depend on these products principally for space heating purposes . actual weather conditions may vary substantially from year to year , significantly affecting our financial performance . to partially mitigate the adverse effect of warm weather on cash flow , we have used weather hedging contracts for a number of years with several providers . under these contracts , we are entitled to a payment if the total number of degree days within the hedge period is less than the ten year average . the โ payment thresholds , โ or strikes , are set at various levels . in addition , we will be obligated to make a payment capped at $ 5.0 million if degree days exceed the ten year average . the hedge period 32 runs from november 1 through march 31 , taken as a whole , for each respective fiscal year . in fiscal 2018 , the company recorded a charge of $ 1.9 million due to colder than average weather conditions . for fiscal 2019 , 2020 and 2021 the maximum that the company can receive is $ 12.5 million and the maximum that the company may be obligated to pay is $ 5.0 million . per gallon gross profit margins we believe home heating oil and propane margins should be evaluated on a cents per gallon basis ( before the effects of increases or decreases in the fair value of derivative instruments ) , as we believe that realized per gallon margins should not include the impact of non-cash changes in the market value of hedges before the settlement of the underlying transaction . a significant portion of our home heating oil volume is sold to individual customers under an arrangement pre-establishing a ceiling price or fixed price for home heating oil over a fixed period of time , generally twelve to twenty-four months ( โ price-protected โ customers ) . when these price-protected customers agree to purchase home heating oil from us for the next heating season , we purchase option contracts , swaps and futures contracts for a substantial majority of the heating oil that we expect to sell to these customers . the amount of home heating oil volume that we hedge per price-protected customer is based upon the estimated fuel consumption per average customer per month . in the event that the actual usage exceeds the amount of the hedged volume on a monthly basis , we may be required to obtain additional volume at unfavorable costs . story_separator_special_tag delivery and branch expenses for fiscal 2018 , delivery and branch expenses increased $ 51.1 million , or 16.7 % , to $ 357.6 million , compared to $ 306.5 million for fiscal 2017 , due to additional costs from acquisitions of $ 18.2 million , as well as a $ 31.0 million , or 10.1 % expense increase in the base business , and a $ 1.9 million charge related to an amount due under our weather hedge contract , as temperatures were slightly colder than the payment threshold . ( the weather hedge covered the period from november 1 , 2017 to march 31 , 2018 , taken as a whole . ) expenses in the base business rose by 10.1 % , exceeding the 5.7 % increase in home heating oil and propane volume sold . the extremely cold weather conditions experienced in late december 2017 and early january 2018 , as previously mentioned , not only increased the demand for service calls but also drove an increase in direct delivery expense as well as many other branch expenses . certain december and january deliveries were made at premium labor rates , and the unusual weather conditions necessitated increased staffing levels for delivery and office personnel to handle the tremendous influx of customer inquiries regarding the status of their delivery or service call . we estimate that the extremely cold weather conditions in january 2018 resulted in unanticipated expenses of $ 2.8 million and the increase in volume sold in the base business resulted in higher costs of $ 2.6 million . the company also saw an increase in credit card fees and bad debt expense of $ 5.7 million tied to the higher cost of product and greater use of credit cards . insurance expense rose by $ 4.5 million largely reflecting an increase in the number of insurance claims due in part to the extreme weather conditions . in addition , our fixed costs increased by $ 3.6 million as we strengthened our customer service , sales , operations , and information technology departments . in recognition of the opportunity to differentiate star and , thereby , to attract and retain customers through our service offerings , we have begun offering a concierge level service as a test program , which led to an increase in delivery and branch expenses of $ 3.4 million . we also experienced increases in rent , plant maintenance , higher vehicle fuel costs and increased customer concessions in the base business totaling $ 2.6 million , incurred rebranding expenses of $ 1.1 million , and we also took a charge for severance of $ 0.5 million during the fourth quarter of 2018 as 11 positions were eliminated which should save us over $ 2 million in fiscal 2019. in the prior year 's comparable period we provided disaster relief services and recorded a net benefit to delivery and branch of $ 0.5 million . finally , normal salary , benefit and other expense changes totaled $ 3.7 million , or 1.2 % of the increase . depreciation and amortization for fiscal 2018 , depreciation and amortization expense increased by $ 3.7 million , or 13.2 % , to $ 31.6 million , compared to $ 27.9 million for fiscal 2017 , as increases from acquisitions and accelerated amortization of certain 38 tradenames related to rebranding more than offset the impact of certain assets that became fully amortized . general and administrative expenses for fiscal 2018 , general and administrative expenses decreased $ 0.8 million , to $ 24.2 million , from $ 25.0 million for fiscal 2017 , primarily due to lower legal and professional expenses of $ 1.2 million . in fiscal 2017 the company incurred legal and professional fees related to its october 2017 conversion to a c corporation that did not reoccur in fiscal 2018. this reduction in legal and professional expenses plus lower profit sharing expense of $ 0.3 million and lower frozen pension expense of $ 0.3 million , was largely offset by the costs of increased human resource staffing and other normal salary and benefit changes totaling $ 1.0 million . the company accrues approximately 6 % of adjusted ebitda , as defined in the profit sharing plan , for distribution to its employees , and this amount is payable when the company achieves adjusted ebitda of at least 70 % of the amount budgeted . the dollar amount of the profit sharing pool is subject to increases and decreases in line with increases and decreases in adjusted ebitda . finance charge income for fiscal 2018 , finance charge income increased by $ 0.6 million , or 15.9 % , to $ 4.7 million compared to $ 4.1 million for fiscal 2017. the income primarily represents late customer payment charges . the increase in the wholesale cost of product and the increase in volume led to higher product sales and thus an increase in accounts receivable balances subject to a finance charge . interest expense , net for fiscal 2018 , interest expense increased $ 1.9 million , or 28.6 % , to $ 8.7 million compared to $ 6.8 million for fiscal 2017 primarily due to an increase in average borrowings of $ 53.1 million from $ 81.7 million in fiscal 2017 to $ 134.9 million in fiscal 2018 and an increase in the weighted average interest rate from 4.1 % in fiscal 2017 to 4.6 % in fiscal 2018. the increase in average borrowings of $ 53.1 million was used to fund higher working capital needs , acquisitions and an investment into our captive insurance company . funding of the captive reduced the need to secure our insurance liability with letters of credit . to hedge against rising interest rates , the company entered into an interest rate swap in july 2018 for $ 50.0 million , or 50 % , of our long term debt . amortization of debt issuance
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2,353 | casc willis owned a lease portfolio of four engines with a net book value of $ 50.1 million as of december 31 , 2020. our investment in the joint venture was $ 15.9 million as of december 31 , 2020. we actively manage our portfolio and structure our leases to maximize the residual values of our leased assets . our leasing business focuses on popular stage iv commercial jet engines manufactured by cfmi , general electric , pratt & whitney , rolls royce and international aero engines . these engines are the most widely used engines in the world , powering airbus , boeing , bombardier and embraer aircraft . covid-19 impact . throughout the next year , we plan to continue to stay focused on cost control and remain prudent with our capital expenditures . we have temporarily closed our headquarters and other offices , required our employees and contractors to predominately work remotely , and implemented travel restrictions , all of which represent a significant disruption in how we operate our business . we have taken various proactive actions in an attempt to mitigate the financial impact of the covid-19 pandemic . additionally , during 2020 , 9 % of our employees have been either furloughed , or subject to a form of reduced compensation . the operations of our partners and customers have likewise been disrupted . the worldwide spread of the covid-19 virus has resulted in a global slowdown of economic activity . while the duration and extent of the covid-19 pandemic depends on future developments that can not be accurately predicted at this time , such as the extent and effectiveness of containment actions , it has had an adverse effect on the global economy and the ultimate societal and economic impact of the covid-19 pandemic remains unknown . in particular , the ongoing covid-19 pandemic has caused significant disruptions to the airline industry that has resulted in a dramatic reduction in demand for air travel domestically and abroad , which is likely to continue for the foreseeable future . in addition , dramatically lower demand for air travel in turn presents significant risks to our company , not all of which we are able to fully evaluate or even to foresee at the current time , and could negatively impact collections of accounts receivable , cause our lessee customers to not enter into new leases , reduce spending from new and existing customers for leases or spare parts or equipment , lower usage fees , cause some of our customers to go out of business , and limit the ability of our personnel to travel to customers and potential customers , all of which could adversely affect our business , results of operations , and financial condition . due to the impact of recent events , including challenges from declines in market conditions , we have performed quarterly interim impairment analysis during 2020. the results of the analysis indicated $ 0.5 million additional impairment during 2020 for two engines having net book values in excess of their respective fair value . during 2020 , we experienced declining average utilization and a corresponding decrease in revenue , as well as a significant decline in spare parts and equipment sales , in each case as compared to the prior year periods . additionally , as of december 31 , 2020 , we have , in certain situations , agreed to rent concessions which resulted in a total reduction to rent revenues of $ 6.5 million . the covid-19 pandemic has materially affected our business and financial results for the year ended december 31 , 2020 and may continue to do so indefinitely thereafter . the scope and nature of the impact of covid-19 on the airline industry , and in turn our business , continue to evolve and the outcomes are uncertain . given the uncertainty in the rapidly changing market and economic conditions related to covid-19 , we will continue to evaluate the nature and extent of the impact to our business and financial position . the ultimate extent of the effects of the covid-19 pandemic on our company will depend on future developments , and such effects could exist for an extended period of time . critical accounting policies and estimates the preparation of our consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on an ongoing basis , we evaluate our estimates , including those related to residual values , estimated asset lives , impairments and bad debts . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies , grouped by our activities , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements : leasing related activities . revenue from leasing of aircraft equipment is recognized as operating lease revenue on a straight-line basis over the terms of the applicable lease agreements . where collection can not be reasonably assured , for example , upon a lessee bankruptcy , we do not recognize revenue until cash is received . we also estimate and charge to income a provision for bad debts based on our experience in the business and with each specific customer and the level of past due accounts . the financial condition of our customers may deteriorate and result in actual losses exceeding the estimated allowances . in addition , any deterioration in the financial condition of our customers may adversely affect future lease revenues . story_separator_special_tag in october 2020 , the company entered into a limited waiver ( the โ waiver โ ) to its fourth amended and restated credit agreement . the waiver provides for the partial exclusion for specified periods of certain asset book values in the calculation of customer concentration limits , as such limits are defined in the amended credit agreement . in february 2019 , the company entered into an $ 8.1 million loan with a financial institution with a maturity date of july 2022. interest is payable at three-month libor plus a margin ranging from 1.85 % to 2.50 % and principal and interest are paid quarterly . the loan is secured by two engines . virtually all of the above debt requires our ongoing compliance with the covenants of each financing , including debt/equity ratios , minimum tangible net worth and minimum interest coverage ratios , and other eligibility criteria including customer and geographic concentration restrictions . under our revolving credit facility , we can typically borrow up to 85 % of an engine 's net book value and 65 % of spare part 's net book value . therefore we must have other available funds for the balance of the purchase price of any new equipment to be purchased or we will not be permitted to draw on our revolver . the facilities are also cross-defaulted against other facilities . if we do not comply with the covenants or eligibility requirements , we may not be permitted to borrow additional funds and accelerated payments may become necessary . additionally , much of the above debt is secured by engines and aircraft to the extent that engines or aircraft are sold , repayment of that portion of the debt could be required . at december 31 , 2020 , we were in compliance with the covenants specified in the revolving credit facility , including the interest coverage ratio requirement of at least 2.25 to 1.00 , and the total leverage ratio requirement to remain below 4.50 to 1.00. the interest coverage ratio , as defined in the credit facility , is the ratio of earnings before interest , taxes , depreciation and amortization ( ebitda ) and other one-time charges to consolidated interest expense . the total leverage ratio , as defined in the credit facility , is the ratio of total indebtedness to tangible net worth . at december 31 , 2020 , we were in compliance with the covenants specified in the west iii , west iv and west v indentures , servicing and other debt related agreements . off-balance sheet arrangements as of december 31 , 2020 , we had no material off-balance sheet arrangements or obligations that have or are reasonably likely to have a current or future effect on our financial condition , change in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures , or capital resources that are material to investors . contractual obligation and commitments repayments of our gross debt obligations primarily consist of scheduled installments due under term loans and are funded by the use of unrestricted cash reserves and from cash flows from ongoing operations . the table below summarizes our contractual commitments at december 31 , 2020 : replace_table_token_3_th from time to time we enter into contractual commitments to purchase engines directly from original equipment manufacturers . as of the date of this report we have purchased three new leap-1b engines and are currently committed to purchasing 17 additional new leap-1b engines . our purchase agreements generally contain terms that allow the company to defer or cancel purchase commitments in certain situations . these deferrals or conversions would not result in penalties or increased costs other than any potential increase due to the normal year-over-year change in engine list prices , which is akin to ordinary inflation . the company continues to expect demand for leap-1b engines to increase as the 737 max is re-certified and aircraft ( and their installed engines ) that have been parked and in storage for more than one year begin the technical process of returning to service . 30 in december 2020 , we entered into definitive agreements for the purchase of 25 modern technology aircraft engines . as part of the purchase , we have committed to certain future overhaul and maintenance services which are anticipated to range between $ 67.1 million and $ 112.0 million . we have estimated the interest payments due under debt obligations by applying the interest rates applicable at december 31 , 2020 to the remaining debt , adjusted for the estimated debt repayments identified in the table above . actual interest payments made will vary due to actual changes in the rates for one-month and three-month libor . we believe our equity base , internally generated funds and existing debt facilities are sufficient to maintain our level of operations through 2021. a decline in the level of internally generated funds could result if the amount of equipment off-lease increases , there is a decrease in availability under our existing debt facilities , or there is a significant step-up in borrowing costs . such decline would impair our ability to sustain our level of operations . we continue to discuss additions to our capital base with our commercial and investment banks . if we are not able to access additional capital , our ability to continue to grow our asset base consistent with historical trends will be impaired and our future growth limited to that which can be funded from internally generated capital . management of interest rate exposure at december 31 , 2020 , $ 783.1 million of our borrowings were on a variable rate basis at various interest rates tied to one-month and three-month libor . our equipment leases are generally structured at fixed rental rates for specified terms . increases in interest rates could narrow or result in a negative spread between the rental revenue we realize
| cash flows discussion cash flows provided by operating activities were $ 93.4 million and $ 230.3 million in the years ended december 31 , 2020 and 2019 , respectively . 28 cash flows from operations are driven significantly by payments made under our lease agreements , which comprise lease revenue , security deposits and maintenance reserves , and are offset by interest expense and general and administrative costs . cash received as maintenance reserve payments for some of our engines on lease are partially restricted by our debt arrangements . the lease revenue stream , in the short-term , is at fixed rates while a portion of our debt is at variable rates . if interest rates increase , it is unlikely we could increase lease rates in the short term and this would cause a reduction in our earnings and operating cash flows . revenue and maintenance reserves are also affected by the amount of equipment off lease . approximately 78 % and 86 % , by book value , of our assets were on-lease as of december 31 , 2020 and 2019 , respectively . the average utilization rate for the year ended december 31 , 2020 and 2019 was approximately 84 % and 88 % , respectively . if there is an increase in off-lease rates or deterioration in lease rates that are not offset by reductions in interest rates , there will be a negative impact on earnings and cash flows from operations . distributions received from our investment in wmes were $ 7.2 million and $ 3.3 million in the years ended december 31 , 2020 and 2019 , respectively .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows discussion cash flows provided by operating activities were $ 93.4 million and $ 230.3 million in the years ended december 31 , 2020 and 2019 , respectively . 28 cash flows from operations are driven significantly by payments made under our lease agreements , which comprise lease revenue , security deposits and maintenance reserves , and are offset by interest expense and general and administrative costs . cash received as maintenance reserve payments for some of our engines on lease are partially restricted by our debt arrangements . the lease revenue stream , in the short-term , is at fixed rates while a portion of our debt is at variable rates . if interest rates increase , it is unlikely we could increase lease rates in the short term and this would cause a reduction in our earnings and operating cash flows . revenue and maintenance reserves are also affected by the amount of equipment off lease . approximately 78 % and 86 % , by book value , of our assets were on-lease as of december 31 , 2020 and 2019 , respectively . the average utilization rate for the year ended december 31 , 2020 and 2019 was approximately 84 % and 88 % , respectively . if there is an increase in off-lease rates or deterioration in lease rates that are not offset by reductions in interest rates , there will be a negative impact on earnings and cash flows from operations . distributions received from our investment in wmes were $ 7.2 million and $ 3.3 million in the years ended december 31 , 2020 and 2019 , respectively .
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Suspicious Activity Report : casc willis owned a lease portfolio of four engines with a net book value of $ 50.1 million as of december 31 , 2020. our investment in the joint venture was $ 15.9 million as of december 31 , 2020. we actively manage our portfolio and structure our leases to maximize the residual values of our leased assets . our leasing business focuses on popular stage iv commercial jet engines manufactured by cfmi , general electric , pratt & whitney , rolls royce and international aero engines . these engines are the most widely used engines in the world , powering airbus , boeing , bombardier and embraer aircraft . covid-19 impact . throughout the next year , we plan to continue to stay focused on cost control and remain prudent with our capital expenditures . we have temporarily closed our headquarters and other offices , required our employees and contractors to predominately work remotely , and implemented travel restrictions , all of which represent a significant disruption in how we operate our business . we have taken various proactive actions in an attempt to mitigate the financial impact of the covid-19 pandemic . additionally , during 2020 , 9 % of our employees have been either furloughed , or subject to a form of reduced compensation . the operations of our partners and customers have likewise been disrupted . the worldwide spread of the covid-19 virus has resulted in a global slowdown of economic activity . while the duration and extent of the covid-19 pandemic depends on future developments that can not be accurately predicted at this time , such as the extent and effectiveness of containment actions , it has had an adverse effect on the global economy and the ultimate societal and economic impact of the covid-19 pandemic remains unknown . in particular , the ongoing covid-19 pandemic has caused significant disruptions to the airline industry that has resulted in a dramatic reduction in demand for air travel domestically and abroad , which is likely to continue for the foreseeable future . in addition , dramatically lower demand for air travel in turn presents significant risks to our company , not all of which we are able to fully evaluate or even to foresee at the current time , and could negatively impact collections of accounts receivable , cause our lessee customers to not enter into new leases , reduce spending from new and existing customers for leases or spare parts or equipment , lower usage fees , cause some of our customers to go out of business , and limit the ability of our personnel to travel to customers and potential customers , all of which could adversely affect our business , results of operations , and financial condition . due to the impact of recent events , including challenges from declines in market conditions , we have performed quarterly interim impairment analysis during 2020. the results of the analysis indicated $ 0.5 million additional impairment during 2020 for two engines having net book values in excess of their respective fair value . during 2020 , we experienced declining average utilization and a corresponding decrease in revenue , as well as a significant decline in spare parts and equipment sales , in each case as compared to the prior year periods . additionally , as of december 31 , 2020 , we have , in certain situations , agreed to rent concessions which resulted in a total reduction to rent revenues of $ 6.5 million . the covid-19 pandemic has materially affected our business and financial results for the year ended december 31 , 2020 and may continue to do so indefinitely thereafter . the scope and nature of the impact of covid-19 on the airline industry , and in turn our business , continue to evolve and the outcomes are uncertain . given the uncertainty in the rapidly changing market and economic conditions related to covid-19 , we will continue to evaluate the nature and extent of the impact to our business and financial position . the ultimate extent of the effects of the covid-19 pandemic on our company will depend on future developments , and such effects could exist for an extended period of time . critical accounting policies and estimates the preparation of our consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on an ongoing basis , we evaluate our estimates , including those related to residual values , estimated asset lives , impairments and bad debts . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies , grouped by our activities , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements : leasing related activities . revenue from leasing of aircraft equipment is recognized as operating lease revenue on a straight-line basis over the terms of the applicable lease agreements . where collection can not be reasonably assured , for example , upon a lessee bankruptcy , we do not recognize revenue until cash is received . we also estimate and charge to income a provision for bad debts based on our experience in the business and with each specific customer and the level of past due accounts . the financial condition of our customers may deteriorate and result in actual losses exceeding the estimated allowances . in addition , any deterioration in the financial condition of our customers may adversely affect future lease revenues . story_separator_special_tag in october 2020 , the company entered into a limited waiver ( the โ waiver โ ) to its fourth amended and restated credit agreement . the waiver provides for the partial exclusion for specified periods of certain asset book values in the calculation of customer concentration limits , as such limits are defined in the amended credit agreement . in february 2019 , the company entered into an $ 8.1 million loan with a financial institution with a maturity date of july 2022. interest is payable at three-month libor plus a margin ranging from 1.85 % to 2.50 % and principal and interest are paid quarterly . the loan is secured by two engines . virtually all of the above debt requires our ongoing compliance with the covenants of each financing , including debt/equity ratios , minimum tangible net worth and minimum interest coverage ratios , and other eligibility criteria including customer and geographic concentration restrictions . under our revolving credit facility , we can typically borrow up to 85 % of an engine 's net book value and 65 % of spare part 's net book value . therefore we must have other available funds for the balance of the purchase price of any new equipment to be purchased or we will not be permitted to draw on our revolver . the facilities are also cross-defaulted against other facilities . if we do not comply with the covenants or eligibility requirements , we may not be permitted to borrow additional funds and accelerated payments may become necessary . additionally , much of the above debt is secured by engines and aircraft to the extent that engines or aircraft are sold , repayment of that portion of the debt could be required . at december 31 , 2020 , we were in compliance with the covenants specified in the revolving credit facility , including the interest coverage ratio requirement of at least 2.25 to 1.00 , and the total leverage ratio requirement to remain below 4.50 to 1.00. the interest coverage ratio , as defined in the credit facility , is the ratio of earnings before interest , taxes , depreciation and amortization ( ebitda ) and other one-time charges to consolidated interest expense . the total leverage ratio , as defined in the credit facility , is the ratio of total indebtedness to tangible net worth . at december 31 , 2020 , we were in compliance with the covenants specified in the west iii , west iv and west v indentures , servicing and other debt related agreements . off-balance sheet arrangements as of december 31 , 2020 , we had no material off-balance sheet arrangements or obligations that have or are reasonably likely to have a current or future effect on our financial condition , change in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures , or capital resources that are material to investors . contractual obligation and commitments repayments of our gross debt obligations primarily consist of scheduled installments due under term loans and are funded by the use of unrestricted cash reserves and from cash flows from ongoing operations . the table below summarizes our contractual commitments at december 31 , 2020 : replace_table_token_3_th from time to time we enter into contractual commitments to purchase engines directly from original equipment manufacturers . as of the date of this report we have purchased three new leap-1b engines and are currently committed to purchasing 17 additional new leap-1b engines . our purchase agreements generally contain terms that allow the company to defer or cancel purchase commitments in certain situations . these deferrals or conversions would not result in penalties or increased costs other than any potential increase due to the normal year-over-year change in engine list prices , which is akin to ordinary inflation . the company continues to expect demand for leap-1b engines to increase as the 737 max is re-certified and aircraft ( and their installed engines ) that have been parked and in storage for more than one year begin the technical process of returning to service . 30 in december 2020 , we entered into definitive agreements for the purchase of 25 modern technology aircraft engines . as part of the purchase , we have committed to certain future overhaul and maintenance services which are anticipated to range between $ 67.1 million and $ 112.0 million . we have estimated the interest payments due under debt obligations by applying the interest rates applicable at december 31 , 2020 to the remaining debt , adjusted for the estimated debt repayments identified in the table above . actual interest payments made will vary due to actual changes in the rates for one-month and three-month libor . we believe our equity base , internally generated funds and existing debt facilities are sufficient to maintain our level of operations through 2021. a decline in the level of internally generated funds could result if the amount of equipment off-lease increases , there is a decrease in availability under our existing debt facilities , or there is a significant step-up in borrowing costs . such decline would impair our ability to sustain our level of operations . we continue to discuss additions to our capital base with our commercial and investment banks . if we are not able to access additional capital , our ability to continue to grow our asset base consistent with historical trends will be impaired and our future growth limited to that which can be funded from internally generated capital . management of interest rate exposure at december 31 , 2020 , $ 783.1 million of our borrowings were on a variable rate basis at various interest rates tied to one-month and three-month libor . our equipment leases are generally structured at fixed rental rates for specified terms . increases in interest rates could narrow or result in a negative spread between the rental revenue we realize
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2,354 | revenue replace_table_token_4_th revenue increased for the year ended december 31 , 2020 compared to december 31 , 2019 , primarily as a result of improved revenue unit economics . the average order size increased to $ 41.86 from $ 36.15 , an improvement of 16 % , while average daily orders decreased in the year ended december 31 , 2020 compared to december 31 , 2019 , partially as a result of market closures in late 2019 and early 2020. included in revenue for the year ended december 31 , 2019 is $ 3,005 related to a cumulative adjustment to setup and integration fee revenue as a result of contract modifications made in july 2019 and the effect of such modifications on our measure of progress towards the performance obligations . the cumulative adjustment to revenue was partially offset by write-offs of uncollected setup and integration fees within accounts receivable of $ 797 and refunds of previously paid setup and integration fees of $ 320. operations and support replace_table_token_5_th operations and support expenses decreased in dollar terms and as a percentage of revenue for the year ended december 31 , 2020 compared to december 31 , 2019 , primarily as a result of lower driver operations cost relating to the change to independent contractor drivers . sales and marketing replace_table_token_6_th sales and marketing expense decreased in dollar terms and as a percentage of revenue in the year ended december 31 , 2020 compared to december 31 , 2019 , primarily as a result of decreased advertising spend of approximately $ 28,483 , as well as staff reductions and the consolidation of sales and marketing functions in the second half of 2019 and early 2020. research and development replace_table_token_7_th research and development expense decreased in dollar terms and as a percentage of revenue in the year ended december 31 , 2020 compared to december 31 , 2019 , primarily due to the capitalization of increased software development costs during 2020 as further features and functionality were incorporated into the platforms . 38 general and administrative replace_table_token_8_th general and administrative expense decreased in dollar terms and as a percentage of revenue in the year ended december 31 , 2020 compared to december 31 , 2019 , due to decreased travel , entertainment and other related expenses as a result of covid-19 and stock-based compensation expenses . additionally , included in general and administrative expense during the year ended december 31 , 2019 are $ 6,956 of business combination-related professional and other costs associated with the bite squad merger . depreciation and amortization replace_table_token_9_th depreciation and amortization expense decreased in dollar terms and as a percentage of revenue in the year ended december 31 , 2020 compared to december 31 , 2019 , primarily as a result of the write-down of the carrying value of intangible assets to their implied fair values in september 2019 in connection with the company 's goodwill impairment analysis . goodwill impairment during the year ended december 31 , 2019 , we recognized a non-cash goodwill impairment charge of $ 119,212 to write down the carrying value of goodwill to its implied fair value . the primary factor contributing to a reduction in the fair value was the sustained decline in the company 's stock price in 2019 , resulting in a market capitalization that was significantly lower than the carrying value of the company 's consolidated stockholders ' equity . see part ii , item 8 , note 7 โ goodwill and intangible assets for additional details . intangible and other asset impairments replace_table_token_10_th the sustained decline in the company 's stock price during 2019 resulted in a non-cash intangible asset impairment charge in the year ended december 31 , 2019 of $ 71,982 to write down the carrying value of certain intangible assets to their implied fair values . the impairment charge included the write-offs of capitalized contracts costs of $ 3,815 , customer relationships of $ 57,295 and developed technology of $ 10,872. during the year ended december 31 , 2019 , we recognized $ 852 in impairment charges related to non-recoverable capitalized costs to obtain and fulfill contracts as a result of the termination by certain restaurants of their contracts in connection with the modified fee structure introduced by the company in july 2019. other expenses ( income ) and losses ( gains ) , net replace_table_token_11_th 39 other expenses ( income ) and losses ( gains ) , net for the year ended december 31 , 2020 primarily consisted of interest expense of $ 9,318 associated with the term loans and notes and a $ 1,023 stock-based compensation expense accrual related to the settlement of the halley and montgomery legal contingencies ( see part i , item 3 , legal proceedings ) . other expenses ( income ) and losses ( gains ) , net for the year ended december 31 , 2019 primarily consisted of $ 9,268 of interest expense associated with the term loans and notes and a $ 2,000 stock-based compensation expense accrual related to the halley and montgomery legal contingencies . see part ii , item 8 , note 9 โ debt for definitions of term loans and notes . other expenses ( income ) and losses ( gains ) , net for the year ended december 31 , 2018 primarily consisted of $ 17,505 related to a medical contingency claim . see part ii , item 8 , note 11 โ correction of prior period error for additional details . story_separator_special_tag income tax expense ( benefit ) income tax expense for the years ended december 31 , 2020 and 2019 was $ 122 and $ 81 , respectively , entirely related to state taxes in various jurisdictions . we have historically generated net operating losses ; therefore , a valuation allowance has been recorded on our net deferred tax assets . liquidity and capital resources overview as of december 31 , 2020 , we had cash on hand of $ 84,706. our primary sources of liquidity have been cash flow from operations and proceeds from the issuance of stock , long-term convertible debt and term loans . the implementation of various initiatives throughout 2020 , with a focus on improving revenue per order , costs per order , cash flow , operations and liquidity , resulted in positive results for the company during the year ended december 31 , 2020. additionally , proceeds from the sales of our common stock pursuant to our atm program launched in march and may 2020 enhanced our liquidity position at december 31 , 2020. we used a portion of the proceeds to repay our debt obligations , as discussed below , and intend to use the remaining proceeds for working capital and general corporate purposes , and to further enhance our ability to execute our strategic , operational and growth initiatives . in may 2020 , the company entered into a limited waiver and conversion agreement , pursuant to which the lenders agreed to waive the requirement to prepay the term loans arising as a result of the may 2020 atm program . in consideration of the prepayment waiver , the company made a payment of $ 12,500 on the term loans and the lenders converted $ 12,500 of the notes into shares of the company 's common stock . in july 2020 , the company entered into amendments to the agreements governing the term loans and notes , pursuant to which the interest rates for the term loans and notes were reduced by 200 basis points for a one-year period , to 5.125 % and 4.0 % per annum , respectively , and the maturity dates for the term loans and notes were extended by one year to november 15 , 2023 upon the payment of $ 10,500 of the term loans . the aggregate principal amount of outstanding long-term debt totaled $ 99,137 as of december 31 , 2020 , consisting of $ 49,479 of term loans , $ 49,504 of notes and $ 154 of promissory notes . as of december 31 , 2020 , the company had $ 2,726 of outstanding short-term loans for insurance financing . we currently expect that our cash on hand and estimated cash flow from operations will be sufficient to meet our working capital needs beyond twelve months ; however , there can be no assurance that we will generate cash flow at the levels we anticipate . we may use cash on hand to repay additional debt or to acquire or invest in complementary businesses , products and technologies . we continually evaluate additional opportunities to strengthen our liquidity position , fund growth initiatives and or combine with other businesses by issuing equity or equity-linked securities ( in public or private offerings ) and or incurring additional debt . however , market conditions , our future financial performance or other factors may make it difficult or impossible for us to access sources of capital , on favorable terms or at all , should we determine in the future to raise additional funds . we are continuously reviewing our liquidity and anticipated working capital needs , particularly in light of the uncertainty created by the covid-19 pandemic . thus far , we have been able to operate effectively during the pandemic , however , the potential impacts and duration of the covid-19 pandemic on the economy and on our business , in particular , may be difficult to assess or predict . capital expenditures our main capital expenditures relate to the purchase of tablets for restaurants on the platforms and investments in the development of the platforms , which are expected to increase as we continue to grow our business . our future capital requirements and the adequacy of available funds will depend on many factors , including those set forth under part i , item 1a , risk factors in this form 10-k. 40 story_separator_special_tag loan agreements include principal payments due under short-term loans to finance certain insurance premiums and principal payments for promissory notes related to acquisitions . see part ii , item 8 , note 9 โ debt of this form 10-k for additional details . ( 3 ) interest due on debt assumes all interest payments are paid in cash . interest on the notes assumes no conversion prior to the maturity of the notes . ( 4 ) in november 2017 , guarantee insurance company ( โ gic โ ) , the company 's former workers ' compensation insurer , was ordered into receivership for purposes of liquidation by the second judicial circuit court in leon county , florida . at the time of the court order , gic was administering the company 's outstanding workers ' compensation claims . upon entering receivership , the guaranty associations of the states where gic operated began reviewing outstanding claims administered by gic for continued claim coverage eligibility based on guaranty associations ' eligibility criteria . louisiana insurance guaranty association , the agency created by the louisiana insurance guaranty act to pay for claims of insolvent members ( โ liga โ ) , determined that the company 's enterprise value exceeded the $ 25,000 eligibility threshold for claims coverage . as such , liga assessed one of the company 's outstanding claims as ineligible for coverage . the company has accrued an estimated amount of loss exposure for the workers ' compensation claim ( the medical contingency claim ) . see part ii ,
| cash flow the following table sets forth our summary cash flow information for the periods indicated : replace_table_token_12_th cash flows provided by ( used in ) operating activities for the year ended december 31 , 2020 , net cash provided by operating activities was $ 38,445 , compared to net cash used in operating activities of $ 73,477 for the year ended december 31 , 2019 , primarily reflecting the effects of the implementation of various initiatives aimed at improving operations and profitability . the increase in net cash used in operating activities for the year ended december 31 , 2019 compared to 2018 primarily reflected an increase in new market launch activities in 2019 relative to 2018. operating activities during the years ended december 31 , 2019 and 2018 included the payment of business combination-related expenses of $ 6,956 and $ 5,768 , respectively . cash flows used in investing activities for the year ended december 31 , 2020 , net cash used in investing activities included $ 3,982 of costs for internally developed software , $ 1,555 for the purchase of property and equipment and $ 628 for the acquisition of intangible assets . net cash used in investing activities for the year ended december 31 , 2019 included $ 192,568 for the acquisition of bite squad , $ 1,805 for internally developed software , $ 1,636 for the purchase of property and equipment , and $ 695 forthe acquisition of intangible assets .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flow the following table sets forth our summary cash flow information for the periods indicated : replace_table_token_12_th cash flows provided by ( used in ) operating activities for the year ended december 31 , 2020 , net cash provided by operating activities was $ 38,445 , compared to net cash used in operating activities of $ 73,477 for the year ended december 31 , 2019 , primarily reflecting the effects of the implementation of various initiatives aimed at improving operations and profitability . the increase in net cash used in operating activities for the year ended december 31 , 2019 compared to 2018 primarily reflected an increase in new market launch activities in 2019 relative to 2018. operating activities during the years ended december 31 , 2019 and 2018 included the payment of business combination-related expenses of $ 6,956 and $ 5,768 , respectively . cash flows used in investing activities for the year ended december 31 , 2020 , net cash used in investing activities included $ 3,982 of costs for internally developed software , $ 1,555 for the purchase of property and equipment and $ 628 for the acquisition of intangible assets . net cash used in investing activities for the year ended december 31 , 2019 included $ 192,568 for the acquisition of bite squad , $ 1,805 for internally developed software , $ 1,636 for the purchase of property and equipment , and $ 695 forthe acquisition of intangible assets .
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Suspicious Activity Report : revenue replace_table_token_4_th revenue increased for the year ended december 31 , 2020 compared to december 31 , 2019 , primarily as a result of improved revenue unit economics . the average order size increased to $ 41.86 from $ 36.15 , an improvement of 16 % , while average daily orders decreased in the year ended december 31 , 2020 compared to december 31 , 2019 , partially as a result of market closures in late 2019 and early 2020. included in revenue for the year ended december 31 , 2019 is $ 3,005 related to a cumulative adjustment to setup and integration fee revenue as a result of contract modifications made in july 2019 and the effect of such modifications on our measure of progress towards the performance obligations . the cumulative adjustment to revenue was partially offset by write-offs of uncollected setup and integration fees within accounts receivable of $ 797 and refunds of previously paid setup and integration fees of $ 320. operations and support replace_table_token_5_th operations and support expenses decreased in dollar terms and as a percentage of revenue for the year ended december 31 , 2020 compared to december 31 , 2019 , primarily as a result of lower driver operations cost relating to the change to independent contractor drivers . sales and marketing replace_table_token_6_th sales and marketing expense decreased in dollar terms and as a percentage of revenue in the year ended december 31 , 2020 compared to december 31 , 2019 , primarily as a result of decreased advertising spend of approximately $ 28,483 , as well as staff reductions and the consolidation of sales and marketing functions in the second half of 2019 and early 2020. research and development replace_table_token_7_th research and development expense decreased in dollar terms and as a percentage of revenue in the year ended december 31 , 2020 compared to december 31 , 2019 , primarily due to the capitalization of increased software development costs during 2020 as further features and functionality were incorporated into the platforms . 38 general and administrative replace_table_token_8_th general and administrative expense decreased in dollar terms and as a percentage of revenue in the year ended december 31 , 2020 compared to december 31 , 2019 , due to decreased travel , entertainment and other related expenses as a result of covid-19 and stock-based compensation expenses . additionally , included in general and administrative expense during the year ended december 31 , 2019 are $ 6,956 of business combination-related professional and other costs associated with the bite squad merger . depreciation and amortization replace_table_token_9_th depreciation and amortization expense decreased in dollar terms and as a percentage of revenue in the year ended december 31 , 2020 compared to december 31 , 2019 , primarily as a result of the write-down of the carrying value of intangible assets to their implied fair values in september 2019 in connection with the company 's goodwill impairment analysis . goodwill impairment during the year ended december 31 , 2019 , we recognized a non-cash goodwill impairment charge of $ 119,212 to write down the carrying value of goodwill to its implied fair value . the primary factor contributing to a reduction in the fair value was the sustained decline in the company 's stock price in 2019 , resulting in a market capitalization that was significantly lower than the carrying value of the company 's consolidated stockholders ' equity . see part ii , item 8 , note 7 โ goodwill and intangible assets for additional details . intangible and other asset impairments replace_table_token_10_th the sustained decline in the company 's stock price during 2019 resulted in a non-cash intangible asset impairment charge in the year ended december 31 , 2019 of $ 71,982 to write down the carrying value of certain intangible assets to their implied fair values . the impairment charge included the write-offs of capitalized contracts costs of $ 3,815 , customer relationships of $ 57,295 and developed technology of $ 10,872. during the year ended december 31 , 2019 , we recognized $ 852 in impairment charges related to non-recoverable capitalized costs to obtain and fulfill contracts as a result of the termination by certain restaurants of their contracts in connection with the modified fee structure introduced by the company in july 2019. other expenses ( income ) and losses ( gains ) , net replace_table_token_11_th 39 other expenses ( income ) and losses ( gains ) , net for the year ended december 31 , 2020 primarily consisted of interest expense of $ 9,318 associated with the term loans and notes and a $ 1,023 stock-based compensation expense accrual related to the settlement of the halley and montgomery legal contingencies ( see part i , item 3 , legal proceedings ) . other expenses ( income ) and losses ( gains ) , net for the year ended december 31 , 2019 primarily consisted of $ 9,268 of interest expense associated with the term loans and notes and a $ 2,000 stock-based compensation expense accrual related to the halley and montgomery legal contingencies . see part ii , item 8 , note 9 โ debt for definitions of term loans and notes . other expenses ( income ) and losses ( gains ) , net for the year ended december 31 , 2018 primarily consisted of $ 17,505 related to a medical contingency claim . see part ii , item 8 , note 11 โ correction of prior period error for additional details . story_separator_special_tag income tax expense ( benefit ) income tax expense for the years ended december 31 , 2020 and 2019 was $ 122 and $ 81 , respectively , entirely related to state taxes in various jurisdictions . we have historically generated net operating losses ; therefore , a valuation allowance has been recorded on our net deferred tax assets . liquidity and capital resources overview as of december 31 , 2020 , we had cash on hand of $ 84,706. our primary sources of liquidity have been cash flow from operations and proceeds from the issuance of stock , long-term convertible debt and term loans . the implementation of various initiatives throughout 2020 , with a focus on improving revenue per order , costs per order , cash flow , operations and liquidity , resulted in positive results for the company during the year ended december 31 , 2020. additionally , proceeds from the sales of our common stock pursuant to our atm program launched in march and may 2020 enhanced our liquidity position at december 31 , 2020. we used a portion of the proceeds to repay our debt obligations , as discussed below , and intend to use the remaining proceeds for working capital and general corporate purposes , and to further enhance our ability to execute our strategic , operational and growth initiatives . in may 2020 , the company entered into a limited waiver and conversion agreement , pursuant to which the lenders agreed to waive the requirement to prepay the term loans arising as a result of the may 2020 atm program . in consideration of the prepayment waiver , the company made a payment of $ 12,500 on the term loans and the lenders converted $ 12,500 of the notes into shares of the company 's common stock . in july 2020 , the company entered into amendments to the agreements governing the term loans and notes , pursuant to which the interest rates for the term loans and notes were reduced by 200 basis points for a one-year period , to 5.125 % and 4.0 % per annum , respectively , and the maturity dates for the term loans and notes were extended by one year to november 15 , 2023 upon the payment of $ 10,500 of the term loans . the aggregate principal amount of outstanding long-term debt totaled $ 99,137 as of december 31 , 2020 , consisting of $ 49,479 of term loans , $ 49,504 of notes and $ 154 of promissory notes . as of december 31 , 2020 , the company had $ 2,726 of outstanding short-term loans for insurance financing . we currently expect that our cash on hand and estimated cash flow from operations will be sufficient to meet our working capital needs beyond twelve months ; however , there can be no assurance that we will generate cash flow at the levels we anticipate . we may use cash on hand to repay additional debt or to acquire or invest in complementary businesses , products and technologies . we continually evaluate additional opportunities to strengthen our liquidity position , fund growth initiatives and or combine with other businesses by issuing equity or equity-linked securities ( in public or private offerings ) and or incurring additional debt . however , market conditions , our future financial performance or other factors may make it difficult or impossible for us to access sources of capital , on favorable terms or at all , should we determine in the future to raise additional funds . we are continuously reviewing our liquidity and anticipated working capital needs , particularly in light of the uncertainty created by the covid-19 pandemic . thus far , we have been able to operate effectively during the pandemic , however , the potential impacts and duration of the covid-19 pandemic on the economy and on our business , in particular , may be difficult to assess or predict . capital expenditures our main capital expenditures relate to the purchase of tablets for restaurants on the platforms and investments in the development of the platforms , which are expected to increase as we continue to grow our business . our future capital requirements and the adequacy of available funds will depend on many factors , including those set forth under part i , item 1a , risk factors in this form 10-k. 40 story_separator_special_tag loan agreements include principal payments due under short-term loans to finance certain insurance premiums and principal payments for promissory notes related to acquisitions . see part ii , item 8 , note 9 โ debt of this form 10-k for additional details . ( 3 ) interest due on debt assumes all interest payments are paid in cash . interest on the notes assumes no conversion prior to the maturity of the notes . ( 4 ) in november 2017 , guarantee insurance company ( โ gic โ ) , the company 's former workers ' compensation insurer , was ordered into receivership for purposes of liquidation by the second judicial circuit court in leon county , florida . at the time of the court order , gic was administering the company 's outstanding workers ' compensation claims . upon entering receivership , the guaranty associations of the states where gic operated began reviewing outstanding claims administered by gic for continued claim coverage eligibility based on guaranty associations ' eligibility criteria . louisiana insurance guaranty association , the agency created by the louisiana insurance guaranty act to pay for claims of insolvent members ( โ liga โ ) , determined that the company 's enterprise value exceeded the $ 25,000 eligibility threshold for claims coverage . as such , liga assessed one of the company 's outstanding claims as ineligible for coverage . the company has accrued an estimated amount of loss exposure for the workers ' compensation claim ( the medical contingency claim ) . see part ii ,
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2,355 | because each repositioning effort is unique and determined based on the property , tenants and overall trends in the general market and specific submarket , the results are varying degrees of depressed rental revenue and occupancy levels for the affected property , which impacts our results and , accordingly , comparisons of our performance from period to period . the repositioning process generally occurs over the course of months or even years . although usually associated with newly-acquired properties , repositioning efforts can also occur at properties we already own ; repositioning properties discussed in the context of this paragraph exclude acquisition properties where the plan for improvement is implemented as part of the acquisition . during 2011 , we completed our repositioning of our 875 howard street property and acquired 275 brannan for purposes of repositioning . financings . on february 11 , 2011 , we closed a five-year term loan totaling $ 92.0 million with wells fargo bank , n.a . secured by our sunset gower and sunset bronson media and entertainment campuses . proceeds from the loan were used to fully refinance a $ 37.0 million mortgage loan secured by our sunset bronson property that was scheduled to mature on april 30 , 2011. the remaining proceeds were used to partially pay down our $ 200.0 million secured credit facility . on june 1 , 2011 we repaid the $ 14.3 million loan secured by our tierrasanta property , on september 1 , 2011 we repaid the $ 43.0 million loan secured by our first financial property , and on december 12 , 2011 we repaid the $ 30.0 million loan secured by our 10950 washington property . in connection with our acquisitions of the 625 second street and 6922 hollywood boulevard properties , we assumed project-level financing of $ 33.7 million and $ 42.2 million , respectively , the first of which is scheduled to mature on february 1 , 2014 and the second on january 1 , 2015. in connection with the aforementioned loan repayments and our 2011 property acquisitions we drew on our secured revolving credit facility , as follows : $ 10.0 million on august 31 , 2011 , $ 23.0 million on september 1 , 2011 , $ 40.0 million on november 22 , 2011 , $ 38.0 million on december 5 , 2011 and $ 10.0 million on december 27 , 2011 , resulting in a total outstanding balance under our secured revolving credit facility was $ 121.0 million on december 31 , 2011. subsequent to year-end , we completed the financings and public offering described โ โsubsequent events โ below and applied proceeds from those to repay indebtedness under its secured revolving credit facility such that there was no outstanding balance under the facility as of the date of this report . we have no financing maturing in the 2012 calendar year . basis of presentation the accompanying consolidated financial statements are the consolidated financial statements of hudson pacific properties , inc. and our subsidiaries , including our operating partnership . the results of the properties described under โ โacquisitions โ above are included in our consolidated results as of the date of their respective acquisition . similarly , the financings described under โ โfinancings โ above are included in our consolidated results on the date that the asset as to which a loan has been assumed was acquired or as of the date of the applicable loan draw in the case of draws under our secured credit facility . all significant intercompany balances and transactions have been eliminated in our consolidated financial statements . for periods prior to 2010 , we have reclassified certain other property-related revenue and tenant recoveries relating to our media and entertainment properties that had been included as an offset to corresponding operating expenses , such that our media and entertainment rental revenue , other property-related revenue , and tenant recoveries , and our media and entertainment operating expenses reflect the gross revenue and gross expenses , as applicable , without regard to such offset . in addition , for periods prior to 2011 , we have reclassified office related parking revenue from tenant recoveries to parking and other . these reclassifications conform the periods prior to 2011 with the current period presentation . the accompanying financial statements have been prepared pursuant to the rules and regulations of the sec , and they include , in our opinion , all adjustments , consisting of normal recurring adjustments , necessary to present fairly the financial information set forth therein . 35 factors that may influence our operating results business and strategy we focus our investment strategy on office properties located in submarkets with growth potential as well as on underperforming properties or portfolios that provide opportunities to implement a value-add strategy to increase occupancy rates and cash flow . additionally , we intend to acquire properties or portfolios that are distressed due to near-term debt maturities or underperforming properties where we believe better management , focused leasing efforts and or capital improvements would improve the property 's operating performance and value . our strategy also includes active management , aggressive leasing efforts , focused capital improvement programs , the reduction and containment of operating costs and an emphasis on tenant satisfaction , which we believe will minimize turnover costs and improve occupancy . from the acquisition of our first property in february 2007 through december 2011 , we have acquired or developed properties totaling an aggregate of approximately 4.4 million square feet . we intend to pursue acquisitions of additional properties as a key part of our growth strategy , often including properties that may have substantial vacancy , which enables us to increase cash flow through lease-up . we expect to continue to acquire properties subject to existing mortgage financing and other indebtedness or to incur indebtedness in connection with acquiring or refinancing these properties . story_separator_special_tag total office rental revenue increased $ 53.1 million , or 238.7 % , to $ 75.3 million for the year ended december 31 , 2011 compared to $ 22.2 million for the year ended december 31 , 2010 . the increase in rental revenue from a year ago was primarily the result of rental revenue from office properties acquired during the third and fourth quarters of 2010 and 2011. office tenant recoveries . office tenant recoveries increased $ 19.0 million , or 609.5 % , to $ 22.1 million for the year ended december 31 , 2011 compared to $ 3.1 million for the year ended december 31 , 2010 . the increase in tenant recoveries was primarily the result of recoveries from office properties acquired during the third and fourth quarters of 2010 and 2011. office parking and other revenue . parking and other revenue increased $ 6.6 million , or 580.4 % , to $ 7.8 million for the year ended december 31 , 2011 compared to $ 1.1 million for the year ended december 31 , 2010 . the increase in parking and other revenue was primarily the result of the parking revenues from offices acquired during the third and fourth quarters of 2010 and 2011 and the early lease termination revenue from a single floor tenant at our city plaza project . total media & entertainment revenue . total media and entertainment revenue consists of rental revenue , tenant recoveries , other property-related revenue and other revenue . total media and entertainment revenues increased $ 2.8 million , or 8.3 % , to $ 37.0 million for the year ended december 31 , 2011 compared to $ 34.1 million for the year ended december 31 , 2010 . the period over period changes in the items that comprise total media and entertainment revenue are primarily attributable to the factors discussed below . media & entertainment rental revenue . media and entertainment rental revenue includes rental revenues from our media and entertainment properties and percentage rent on retail space contained within those properties . total media and entertainment rental revenue increased $ 0.7 million , or 3.3 % , to $ 21.6 million for the year ended december 31 , 2011 as compared to $ 20.9 million for the year ended december 31 , 2010 . the increase in rental revenue was primarily due to improved rental rates at our media and entertainment properties and improved occupancy at our sunset bronson property , partially offset by lower occupancy at our sunset gower property . media & entertainment tenant recoveries . tenant recoveries remained relatively flat at $ 1.5 million for the year ended december 31 , 2011 as compared to $ 1.6 million for the year ended december 31 , 2010 . media & entertainment other property-related revenue . other property-related revenue is revenue that is derived from the tenants ' rental of lighting and other equipment , parking , power , hvac and telecommunications ( telephone and internet services ) . total other property-related revenue increased $ 2.2 million , or 19.7 % , to $ 13.6 million for the year ended december 31 , 2011 compared to $ 11.4 million for the year ended december 31 , 2010 . the increase in other property-related revenue was primarily due to an increase in lighting equipment rental revenue , parking revenue and telecom revenue relating to higher production activity associated with improved tenant concentration at our media and entertainment properties . operating expenses total operating expenses . total operating expenses consist of property operating expenses , as well as property-level general and administrative expenses , other property-related expenses , management fees and depreciation and amortization . total operating expenses increased $ 74.5 million , or 147.6 % , to $ 124.9 million for the year ended december 31 , 2011 compared to $ 50.4 million for the year ended december 31 , 2010 . changes in total operating expenses are primarily attributable to the factors discussed below . office operating expenses . office operating expenses increased $ 34.5 million , or 338.1 % , to $ 44.7 million for the year ended december 31 , 2011 compared to $ 10.2 million for the year ended december 31 , 2010 . the increase in office operating expenses was primarily due to the acquisitions of office properties during the third and fourth quarters of 2010 and 40 2011 , which was partially offset by certain property tax reassessment savings , mostly associated with our city plaza property . media & entertainment operating expenses . media and entertainment operating expenses increased $ 2.6 million , or 13.3 % , to $ 22.4 million for the year ended december 31 , 2011 compared to $ 19.8 million for the year ended december 31 , 2010 . the increase in operating expenses was due to an increase in other property-related expenses , primarily lighting and other equipment rental expenses , resulting from higher production activity at our media and entertainment properties . the operating expenses for the year ended december 31 , 2010 also reflects $ 1.1 million of property tax reassessment savings that did not recur in 2011. general and administrative expenses . general and administrative expenses includes wages and salaries for corporate-level employees , accounting , legal and other professional services , office supplies , entertainment , travel , and automobile expenses , telecommunications and computer-related expenses , and other miscellaneous items . since the ipo , 2010 private placement and formation transactions did not occur until june 29 , 2010 , the year ended december 31 , 2010 only includes general and administrative expenses for corporate-level operations beginning june 29 , 2010 and thereafter . we incurred $ 13.0 million of general and administration expenses for our corporate-level operations for the year ended december 31 , 2011 compared to $ 4.5 million of expenses for our corporate-level operations over the period commencing on june 29 , 2010 and ending
| analysis of liquidity and capital resources we had approximately $ 13.7 million of cash and cash equivalents at december 31 , 2011 . in addition , the lead arrangers for our secured revolving credit facility have secured commitments that will allow borrowings of up to $ 200.0 million . as of december 31 , 2011 , we had total borrowing capacity of approximately $ 159.9 million on our secured credit facility , of which $ 121.0 million had been drawn . on january 19 , 2012 , we closed a ten-year term loan totaling $ 43.0 million with pnc bank , national association secured by the first financial plaza property . on january 23 , 2012 we closed the public offering of 2,300,000 shares of our 8.375 % series b cumulative preferred stock with a liquidation preference of $ 25.00 per share . on february 11 , 2012 , we closed a 10-year term loan totaling $ 30.0 million with cantor commercial real estate lending , l.p. , secured by our 10950 washington property . we used $ 40.0 million of proceeds from the first financial plaza financing , $ 56.0 million of proceeds from the series b preferred stock offering and $ 25.0 million of proceeds from the 10950 washington financing , to fully pay down our $ 200.0 million secured credit facility . as a result , as of the filing of this report we have capacity of approximately $ 159.9 million on our secured credit facility , none of which has been drawn . we intend to use the secured revolving credit facility , among other things , to finance the acquisition of other properties , to provide funds for tenant improvements and capital expenditures and to provide for working capital and other corporate purposes .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```analysis of liquidity and capital resources we had approximately $ 13.7 million of cash and cash equivalents at december 31 , 2011 . in addition , the lead arrangers for our secured revolving credit facility have secured commitments that will allow borrowings of up to $ 200.0 million . as of december 31 , 2011 , we had total borrowing capacity of approximately $ 159.9 million on our secured credit facility , of which $ 121.0 million had been drawn . on january 19 , 2012 , we closed a ten-year term loan totaling $ 43.0 million with pnc bank , national association secured by the first financial plaza property . on january 23 , 2012 we closed the public offering of 2,300,000 shares of our 8.375 % series b cumulative preferred stock with a liquidation preference of $ 25.00 per share . on february 11 , 2012 , we closed a 10-year term loan totaling $ 30.0 million with cantor commercial real estate lending , l.p. , secured by our 10950 washington property . we used $ 40.0 million of proceeds from the first financial plaza financing , $ 56.0 million of proceeds from the series b preferred stock offering and $ 25.0 million of proceeds from the 10950 washington financing , to fully pay down our $ 200.0 million secured credit facility . as a result , as of the filing of this report we have capacity of approximately $ 159.9 million on our secured credit facility , none of which has been drawn . we intend to use the secured revolving credit facility , among other things , to finance the acquisition of other properties , to provide funds for tenant improvements and capital expenditures and to provide for working capital and other corporate purposes .
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Suspicious Activity Report : because each repositioning effort is unique and determined based on the property , tenants and overall trends in the general market and specific submarket , the results are varying degrees of depressed rental revenue and occupancy levels for the affected property , which impacts our results and , accordingly , comparisons of our performance from period to period . the repositioning process generally occurs over the course of months or even years . although usually associated with newly-acquired properties , repositioning efforts can also occur at properties we already own ; repositioning properties discussed in the context of this paragraph exclude acquisition properties where the plan for improvement is implemented as part of the acquisition . during 2011 , we completed our repositioning of our 875 howard street property and acquired 275 brannan for purposes of repositioning . financings . on february 11 , 2011 , we closed a five-year term loan totaling $ 92.0 million with wells fargo bank , n.a . secured by our sunset gower and sunset bronson media and entertainment campuses . proceeds from the loan were used to fully refinance a $ 37.0 million mortgage loan secured by our sunset bronson property that was scheduled to mature on april 30 , 2011. the remaining proceeds were used to partially pay down our $ 200.0 million secured credit facility . on june 1 , 2011 we repaid the $ 14.3 million loan secured by our tierrasanta property , on september 1 , 2011 we repaid the $ 43.0 million loan secured by our first financial property , and on december 12 , 2011 we repaid the $ 30.0 million loan secured by our 10950 washington property . in connection with our acquisitions of the 625 second street and 6922 hollywood boulevard properties , we assumed project-level financing of $ 33.7 million and $ 42.2 million , respectively , the first of which is scheduled to mature on february 1 , 2014 and the second on january 1 , 2015. in connection with the aforementioned loan repayments and our 2011 property acquisitions we drew on our secured revolving credit facility , as follows : $ 10.0 million on august 31 , 2011 , $ 23.0 million on september 1 , 2011 , $ 40.0 million on november 22 , 2011 , $ 38.0 million on december 5 , 2011 and $ 10.0 million on december 27 , 2011 , resulting in a total outstanding balance under our secured revolving credit facility was $ 121.0 million on december 31 , 2011. subsequent to year-end , we completed the financings and public offering described โ โsubsequent events โ below and applied proceeds from those to repay indebtedness under its secured revolving credit facility such that there was no outstanding balance under the facility as of the date of this report . we have no financing maturing in the 2012 calendar year . basis of presentation the accompanying consolidated financial statements are the consolidated financial statements of hudson pacific properties , inc. and our subsidiaries , including our operating partnership . the results of the properties described under โ โacquisitions โ above are included in our consolidated results as of the date of their respective acquisition . similarly , the financings described under โ โfinancings โ above are included in our consolidated results on the date that the asset as to which a loan has been assumed was acquired or as of the date of the applicable loan draw in the case of draws under our secured credit facility . all significant intercompany balances and transactions have been eliminated in our consolidated financial statements . for periods prior to 2010 , we have reclassified certain other property-related revenue and tenant recoveries relating to our media and entertainment properties that had been included as an offset to corresponding operating expenses , such that our media and entertainment rental revenue , other property-related revenue , and tenant recoveries , and our media and entertainment operating expenses reflect the gross revenue and gross expenses , as applicable , without regard to such offset . in addition , for periods prior to 2011 , we have reclassified office related parking revenue from tenant recoveries to parking and other . these reclassifications conform the periods prior to 2011 with the current period presentation . the accompanying financial statements have been prepared pursuant to the rules and regulations of the sec , and they include , in our opinion , all adjustments , consisting of normal recurring adjustments , necessary to present fairly the financial information set forth therein . 35 factors that may influence our operating results business and strategy we focus our investment strategy on office properties located in submarkets with growth potential as well as on underperforming properties or portfolios that provide opportunities to implement a value-add strategy to increase occupancy rates and cash flow . additionally , we intend to acquire properties or portfolios that are distressed due to near-term debt maturities or underperforming properties where we believe better management , focused leasing efforts and or capital improvements would improve the property 's operating performance and value . our strategy also includes active management , aggressive leasing efforts , focused capital improvement programs , the reduction and containment of operating costs and an emphasis on tenant satisfaction , which we believe will minimize turnover costs and improve occupancy . from the acquisition of our first property in february 2007 through december 2011 , we have acquired or developed properties totaling an aggregate of approximately 4.4 million square feet . we intend to pursue acquisitions of additional properties as a key part of our growth strategy , often including properties that may have substantial vacancy , which enables us to increase cash flow through lease-up . we expect to continue to acquire properties subject to existing mortgage financing and other indebtedness or to incur indebtedness in connection with acquiring or refinancing these properties . story_separator_special_tag total office rental revenue increased $ 53.1 million , or 238.7 % , to $ 75.3 million for the year ended december 31 , 2011 compared to $ 22.2 million for the year ended december 31 , 2010 . the increase in rental revenue from a year ago was primarily the result of rental revenue from office properties acquired during the third and fourth quarters of 2010 and 2011. office tenant recoveries . office tenant recoveries increased $ 19.0 million , or 609.5 % , to $ 22.1 million for the year ended december 31 , 2011 compared to $ 3.1 million for the year ended december 31 , 2010 . the increase in tenant recoveries was primarily the result of recoveries from office properties acquired during the third and fourth quarters of 2010 and 2011. office parking and other revenue . parking and other revenue increased $ 6.6 million , or 580.4 % , to $ 7.8 million for the year ended december 31 , 2011 compared to $ 1.1 million for the year ended december 31 , 2010 . the increase in parking and other revenue was primarily the result of the parking revenues from offices acquired during the third and fourth quarters of 2010 and 2011 and the early lease termination revenue from a single floor tenant at our city plaza project . total media & entertainment revenue . total media and entertainment revenue consists of rental revenue , tenant recoveries , other property-related revenue and other revenue . total media and entertainment revenues increased $ 2.8 million , or 8.3 % , to $ 37.0 million for the year ended december 31 , 2011 compared to $ 34.1 million for the year ended december 31 , 2010 . the period over period changes in the items that comprise total media and entertainment revenue are primarily attributable to the factors discussed below . media & entertainment rental revenue . media and entertainment rental revenue includes rental revenues from our media and entertainment properties and percentage rent on retail space contained within those properties . total media and entertainment rental revenue increased $ 0.7 million , or 3.3 % , to $ 21.6 million for the year ended december 31 , 2011 as compared to $ 20.9 million for the year ended december 31 , 2010 . the increase in rental revenue was primarily due to improved rental rates at our media and entertainment properties and improved occupancy at our sunset bronson property , partially offset by lower occupancy at our sunset gower property . media & entertainment tenant recoveries . tenant recoveries remained relatively flat at $ 1.5 million for the year ended december 31 , 2011 as compared to $ 1.6 million for the year ended december 31 , 2010 . media & entertainment other property-related revenue . other property-related revenue is revenue that is derived from the tenants ' rental of lighting and other equipment , parking , power , hvac and telecommunications ( telephone and internet services ) . total other property-related revenue increased $ 2.2 million , or 19.7 % , to $ 13.6 million for the year ended december 31 , 2011 compared to $ 11.4 million for the year ended december 31 , 2010 . the increase in other property-related revenue was primarily due to an increase in lighting equipment rental revenue , parking revenue and telecom revenue relating to higher production activity associated with improved tenant concentration at our media and entertainment properties . operating expenses total operating expenses . total operating expenses consist of property operating expenses , as well as property-level general and administrative expenses , other property-related expenses , management fees and depreciation and amortization . total operating expenses increased $ 74.5 million , or 147.6 % , to $ 124.9 million for the year ended december 31 , 2011 compared to $ 50.4 million for the year ended december 31 , 2010 . changes in total operating expenses are primarily attributable to the factors discussed below . office operating expenses . office operating expenses increased $ 34.5 million , or 338.1 % , to $ 44.7 million for the year ended december 31 , 2011 compared to $ 10.2 million for the year ended december 31 , 2010 . the increase in office operating expenses was primarily due to the acquisitions of office properties during the third and fourth quarters of 2010 and 40 2011 , which was partially offset by certain property tax reassessment savings , mostly associated with our city plaza property . media & entertainment operating expenses . media and entertainment operating expenses increased $ 2.6 million , or 13.3 % , to $ 22.4 million for the year ended december 31 , 2011 compared to $ 19.8 million for the year ended december 31 , 2010 . the increase in operating expenses was due to an increase in other property-related expenses , primarily lighting and other equipment rental expenses , resulting from higher production activity at our media and entertainment properties . the operating expenses for the year ended december 31 , 2010 also reflects $ 1.1 million of property tax reassessment savings that did not recur in 2011. general and administrative expenses . general and administrative expenses includes wages and salaries for corporate-level employees , accounting , legal and other professional services , office supplies , entertainment , travel , and automobile expenses , telecommunications and computer-related expenses , and other miscellaneous items . since the ipo , 2010 private placement and formation transactions did not occur until june 29 , 2010 , the year ended december 31 , 2010 only includes general and administrative expenses for corporate-level operations beginning june 29 , 2010 and thereafter . we incurred $ 13.0 million of general and administration expenses for our corporate-level operations for the year ended december 31 , 2011 compared to $ 4.5 million of expenses for our corporate-level operations over the period commencing on june 29 , 2010 and ending
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2,356 | average commission per retail trade represents the average commission generated for all types of retail customer trades . retail customer net worth represents the total value of securities and cash in the retail customer accounts before deducting margin debits . retail customer money market fund value represents all retail customers accounts invested in money market funds . retail customer margin debit balances represents credit extended to our customers to finance their purchases against current positions . retail customer accounts with positions represent retail customers with cash and or securities in their accounts . we , like other securities firms , are directly affected by general economic and market conditions including fluctuations in volume and prices of securities , changes and the prospect of changes in interest rates , and demand for brokerage and investment banking services , all of which can affect our profitability . in addition , in periods of reduced financial market activity , profitability is likely to be adversely affected because certain expenses remain relatively fixed , including salaries and related costs , portions of communications costs and occupancy expenses . accordingly , earnings for any period should not be considered representative of earnings to be expected for any other period . 21 competition continues to intensify among all types of brokerage firms , including established discount brokers and new firms entering the on-line brokerage business . electronic trading continues to account for an increasing amount of trading activity , with some firms charging very low trading execution fees that are difficult for any conventional discount firm to meet . some of these brokers , however , impose asset based charges for services such as mailing , transfers and handling exchanges which we do not currently impose , and also direct their orders to market makers where they have a financial interest . continued competition could limit our growth or even lead to a decline in our customer base , which would adversely affect our results of operations . industry-wide changes in trading practices , such as the continued use of electronic communications networks , are expected to put continuing pressure on commissions/fees earned by brokers while increasing volatility . the company 's advisornxt subsidiary offers to its clients the company 's robo investment advisor platform which utilizes a proprietary trading algorithm licensed from an affiliate , kca technologies , a wholly-owned subsidiary of kca . the company , consistent with industry developments , intends to offer access to this technology to its customers through advisornxt . investment advisor representatives will assist each client in reviewing information about the programs , completing a client questionnaire to determine the client 's risk tolerance , financial situation and investment objectives and selecting an investment strategy . during 2017 , the revenues of the advisornxt 's operations were immaterial to the company 's revenues . critical accounting policies we generally follow accounting policies standard in the brokerage industry and believe that our policies appropriately reflect our financial position and results of operations . our management makes significant estimates that affect the reported amounts of assets , liabilities , revenues and expenses and the related disclosure of contingent assets and liabilities included in the financial statements . the estimates relate primarily to revenue and expense items in the normal course of business as to which we receive no confirmations , invoices , or other documentation , at the time the books are closed for a period . we use our best judgment , based on our knowledge of revenue transactions and expenses incurred , to estimate the amount of such revenue and expenses . we are not aware of any material differences between the estimates used in closing our books for the last five years and the actual amounts of revenue and expenses incurred when we subsequently receive the actual confirmations , invoices or other documentation . 22 results of operations year ended december 31 , 2017 compared to year ended december 31 , 2016 revenues . total revenues for 2017 were $ 13,110,000 , an increase of $ 3,298,000 , or 33.6 % from the prior year , primarily due to including revenue of approximately $ 1.6 million arising out of the assets purchased from stockcross and other interest bearing earnings . commission and fee income increased $ 3,139,000 or 37.8 % from the prior year , to $ 11,433,000 primarily due to the stockcross asset acquisition and an increase in fees from our money management activity and market rate increases . trading gains increased $ 718,000 , or 78.0 % to $ 1,639,000 from the prior year , primarily due to the stockcross asset acquisition . income from interest and dividends decreased $ 532,000 , or 96.6 % , to $ 19,000 from the prior year due to the distribution of interest bearing assets at the end of 2016. expenses . total expenses for 2017 were $ 10.8 million , a decrease of $ 4.6 million or 29.9 % from the prior year , primarily due to non-recurring expenses of $ 2,205,000 associated with the change of control of the company in december 2016 and modified cost structure . employee compensation and benefit costs increased $ 192,000 , or 3.9 % , from the prior year to $ 5.1 million , primarily due to an increase in the number of employees resulting from the stockcross asset acquisition . clearing fees increased $ 165,000 , or 19.1 % , from the prior year to $ 1,031,000 , primarily due to expense associated with the stockcross asset acquisition . professional fees decreased $ 1,323,000 , or 38.3 % from the prior year to $ 2.1 million , primarily due to fees associated with the change of control of the company and additional one-time non-recurring professional fees . communications expense decreased $ 204,000 , or 44.2 % from the prior year to $ 258,000 , primarily due to a reduction in expenses associated with quote usage . occupancy costs decreased $ 309,000 story_separator_special_tag average commission per retail trade represents the average commission generated for all types of retail customer trades . retail customer net worth represents the total value of securities and cash in the retail customer accounts before deducting margin debits . retail customer money market fund value represents all retail customers accounts invested in money market funds . retail customer margin debit balances represents credit extended to our customers to finance their purchases against current positions . retail customer accounts with positions represent retail customers with cash and or securities in their accounts . we , like other securities firms , are directly affected by general economic and market conditions including fluctuations in volume and prices of securities , changes and the prospect of changes in interest rates , and demand for brokerage and investment banking services , all of which can affect our profitability . in addition , in periods of reduced financial market activity , profitability is likely to be adversely affected because certain expenses remain relatively fixed , including salaries and related costs , portions of communications costs and occupancy expenses . accordingly , earnings for any period should not be considered representative of earnings to be expected for any other period . 21 competition continues to intensify among all types of brokerage firms , including established discount brokers and new firms entering the on-line brokerage business . electronic trading continues to account for an increasing amount of trading activity , with some firms charging very low trading execution fees that are difficult for any conventional discount firm to meet . some of these brokers , however , impose asset based charges for services such as mailing , transfers and handling exchanges which we do not currently impose , and also direct their orders to market makers where they have a financial interest . continued competition could limit our growth or even lead to a decline in our customer base , which would adversely affect our results of operations . industry-wide changes in trading practices , such as the continued use of electronic communications networks , are expected to put continuing pressure on commissions/fees earned by brokers while increasing volatility . the company 's advisornxt subsidiary offers to its clients the company 's robo investment advisor platform which utilizes a proprietary trading algorithm licensed from an affiliate , kca technologies , a wholly-owned subsidiary of kca . the company , consistent with industry developments , intends to offer access to this technology to its customers through advisornxt . investment advisor representatives will assist each client in reviewing information about the programs , completing a client questionnaire to determine the client 's risk tolerance , financial situation and investment objectives and selecting an investment strategy . during 2017 , the revenues of the advisornxt 's operations were immaterial to the company 's revenues . critical accounting policies we generally follow accounting policies standard in the brokerage industry and believe that our policies appropriately reflect our financial position and results of operations . our management makes significant estimates that affect the reported amounts of assets , liabilities , revenues and expenses and the related disclosure of contingent assets and liabilities included in the financial statements . the estimates relate primarily to revenue and expense items in the normal course of business as to which we receive no confirmations , invoices , or other documentation , at the time the books are closed for a period . we use our best judgment , based on our knowledge of revenue transactions and expenses incurred , to estimate the amount of such revenue and expenses . we are not aware of any material differences between the estimates used in closing our books for the last five years and the actual amounts of revenue and expenses incurred when we subsequently receive the actual confirmations , invoices or other documentation . 22 results of operations year ended december 31 , 2017 compared to year ended december 31 , 2016 revenues . total revenues for 2017 were $ 13,110,000 , an increase of $ 3,298,000 , or 33.6 % from the prior year , primarily due to including revenue of approximately $ 1.6 million arising out of the assets purchased from stockcross and other interest bearing earnings . commission and fee income increased $ 3,139,000 or 37.8 % from the prior year , to $ 11,433,000 primarily due to the stockcross asset acquisition and an increase in fees from our money management activity and market rate increases . trading gains increased $ 718,000 , or 78.0 % to $ 1,639,000 from the prior year , primarily due to the stockcross asset acquisition . income from interest and dividends decreased $ 532,000 , or 96.6 % , to $ 19,000 from the prior year due to the distribution of interest bearing assets at the end of 2016. expenses . total expenses for 2017 were $ 10.8 million , a decrease of $ 4.6 million or 29.9 % from the prior year , primarily due to non-recurring expenses of $ 2,205,000 associated with the change of control of the company in december 2016 and modified cost structure . employee compensation and benefit costs increased $ 192,000 , or 3.9 % , from the prior year to $ 5.1 million , primarily due to an increase in the number of employees resulting from the stockcross asset acquisition . clearing fees increased $ 165,000 , or 19.1 % , from the prior year to $ 1,031,000 , primarily due to expense associated with the stockcross asset acquisition . professional fees decreased $ 1,323,000 , or 38.3 % from the prior year to $ 2.1 million , primarily due to fees associated with the change of control of the company and additional one-time non-recurring professional fees . communications expense decreased $ 204,000 , or 44.2 % from the prior year to $ 258,000 , primarily due to a reduction in expenses associated with quote usage . occupancy costs decreased $ 309,000
| liquidity and capital resources our working capital is invested in cash and money market funds . our total assets at december 31 , 2017 were $ 6.0 million , of which we regarded $ 3.8 million , or 62.0 % , as highly liquid . msco is subject to the net capital requirements of the sec , the nyse and other regulatory authorities . at december 31 , 2017 , msco 's regulatory net capital was $ 4.4 million , which was $ 4,189,000 in excess of its minimum capital requirement of $ 250,000. contractual obligations below is a table that presents our obligations and commitments at december 31 , 2017 : replace_table_token_5_th 23 off-balance sheet arrangements retail customer transactions are cleared through clearing brokers on a fully disclosed basis . if customers do not fulfill their contractual obligations , the clearing broker may charge siebert for any loss incurred in connection with the purchase or sale of securities at prevailing market prices to satisfy the customer obligations . siebert regularly monitors the activity in its customer accounts for compliance with its margin requirements . siebert is exposed to the risk of loss on unsettled customer transactions if customers and other counterparties are unable to fulfill their contractual obligations . there were no material losses for unsettled customer transactions in 2017. item
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources our working capital is invested in cash and money market funds . our total assets at december 31 , 2017 were $ 6.0 million , of which we regarded $ 3.8 million , or 62.0 % , as highly liquid . msco is subject to the net capital requirements of the sec , the nyse and other regulatory authorities . at december 31 , 2017 , msco 's regulatory net capital was $ 4.4 million , which was $ 4,189,000 in excess of its minimum capital requirement of $ 250,000. contractual obligations below is a table that presents our obligations and commitments at december 31 , 2017 : replace_table_token_5_th 23 off-balance sheet arrangements retail customer transactions are cleared through clearing brokers on a fully disclosed basis . if customers do not fulfill their contractual obligations , the clearing broker may charge siebert for any loss incurred in connection with the purchase or sale of securities at prevailing market prices to satisfy the customer obligations . siebert regularly monitors the activity in its customer accounts for compliance with its margin requirements . siebert is exposed to the risk of loss on unsettled customer transactions if customers and other counterparties are unable to fulfill their contractual obligations . there were no material losses for unsettled customer transactions in 2017. item
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Suspicious Activity Report : average commission per retail trade represents the average commission generated for all types of retail customer trades . retail customer net worth represents the total value of securities and cash in the retail customer accounts before deducting margin debits . retail customer money market fund value represents all retail customers accounts invested in money market funds . retail customer margin debit balances represents credit extended to our customers to finance their purchases against current positions . retail customer accounts with positions represent retail customers with cash and or securities in their accounts . we , like other securities firms , are directly affected by general economic and market conditions including fluctuations in volume and prices of securities , changes and the prospect of changes in interest rates , and demand for brokerage and investment banking services , all of which can affect our profitability . in addition , in periods of reduced financial market activity , profitability is likely to be adversely affected because certain expenses remain relatively fixed , including salaries and related costs , portions of communications costs and occupancy expenses . accordingly , earnings for any period should not be considered representative of earnings to be expected for any other period . 21 competition continues to intensify among all types of brokerage firms , including established discount brokers and new firms entering the on-line brokerage business . electronic trading continues to account for an increasing amount of trading activity , with some firms charging very low trading execution fees that are difficult for any conventional discount firm to meet . some of these brokers , however , impose asset based charges for services such as mailing , transfers and handling exchanges which we do not currently impose , and also direct their orders to market makers where they have a financial interest . continued competition could limit our growth or even lead to a decline in our customer base , which would adversely affect our results of operations . industry-wide changes in trading practices , such as the continued use of electronic communications networks , are expected to put continuing pressure on commissions/fees earned by brokers while increasing volatility . the company 's advisornxt subsidiary offers to its clients the company 's robo investment advisor platform which utilizes a proprietary trading algorithm licensed from an affiliate , kca technologies , a wholly-owned subsidiary of kca . the company , consistent with industry developments , intends to offer access to this technology to its customers through advisornxt . investment advisor representatives will assist each client in reviewing information about the programs , completing a client questionnaire to determine the client 's risk tolerance , financial situation and investment objectives and selecting an investment strategy . during 2017 , the revenues of the advisornxt 's operations were immaterial to the company 's revenues . critical accounting policies we generally follow accounting policies standard in the brokerage industry and believe that our policies appropriately reflect our financial position and results of operations . our management makes significant estimates that affect the reported amounts of assets , liabilities , revenues and expenses and the related disclosure of contingent assets and liabilities included in the financial statements . the estimates relate primarily to revenue and expense items in the normal course of business as to which we receive no confirmations , invoices , or other documentation , at the time the books are closed for a period . we use our best judgment , based on our knowledge of revenue transactions and expenses incurred , to estimate the amount of such revenue and expenses . we are not aware of any material differences between the estimates used in closing our books for the last five years and the actual amounts of revenue and expenses incurred when we subsequently receive the actual confirmations , invoices or other documentation . 22 results of operations year ended december 31 , 2017 compared to year ended december 31 , 2016 revenues . total revenues for 2017 were $ 13,110,000 , an increase of $ 3,298,000 , or 33.6 % from the prior year , primarily due to including revenue of approximately $ 1.6 million arising out of the assets purchased from stockcross and other interest bearing earnings . commission and fee income increased $ 3,139,000 or 37.8 % from the prior year , to $ 11,433,000 primarily due to the stockcross asset acquisition and an increase in fees from our money management activity and market rate increases . trading gains increased $ 718,000 , or 78.0 % to $ 1,639,000 from the prior year , primarily due to the stockcross asset acquisition . income from interest and dividends decreased $ 532,000 , or 96.6 % , to $ 19,000 from the prior year due to the distribution of interest bearing assets at the end of 2016. expenses . total expenses for 2017 were $ 10.8 million , a decrease of $ 4.6 million or 29.9 % from the prior year , primarily due to non-recurring expenses of $ 2,205,000 associated with the change of control of the company in december 2016 and modified cost structure . employee compensation and benefit costs increased $ 192,000 , or 3.9 % , from the prior year to $ 5.1 million , primarily due to an increase in the number of employees resulting from the stockcross asset acquisition . clearing fees increased $ 165,000 , or 19.1 % , from the prior year to $ 1,031,000 , primarily due to expense associated with the stockcross asset acquisition . professional fees decreased $ 1,323,000 , or 38.3 % from the prior year to $ 2.1 million , primarily due to fees associated with the change of control of the company and additional one-time non-recurring professional fees . communications expense decreased $ 204,000 , or 44.2 % from the prior year to $ 258,000 , primarily due to a reduction in expenses associated with quote usage . occupancy costs decreased $ 309,000 story_separator_special_tag average commission per retail trade represents the average commission generated for all types of retail customer trades . retail customer net worth represents the total value of securities and cash in the retail customer accounts before deducting margin debits . retail customer money market fund value represents all retail customers accounts invested in money market funds . retail customer margin debit balances represents credit extended to our customers to finance their purchases against current positions . retail customer accounts with positions represent retail customers with cash and or securities in their accounts . we , like other securities firms , are directly affected by general economic and market conditions including fluctuations in volume and prices of securities , changes and the prospect of changes in interest rates , and demand for brokerage and investment banking services , all of which can affect our profitability . in addition , in periods of reduced financial market activity , profitability is likely to be adversely affected because certain expenses remain relatively fixed , including salaries and related costs , portions of communications costs and occupancy expenses . accordingly , earnings for any period should not be considered representative of earnings to be expected for any other period . 21 competition continues to intensify among all types of brokerage firms , including established discount brokers and new firms entering the on-line brokerage business . electronic trading continues to account for an increasing amount of trading activity , with some firms charging very low trading execution fees that are difficult for any conventional discount firm to meet . some of these brokers , however , impose asset based charges for services such as mailing , transfers and handling exchanges which we do not currently impose , and also direct their orders to market makers where they have a financial interest . continued competition could limit our growth or even lead to a decline in our customer base , which would adversely affect our results of operations . industry-wide changes in trading practices , such as the continued use of electronic communications networks , are expected to put continuing pressure on commissions/fees earned by brokers while increasing volatility . the company 's advisornxt subsidiary offers to its clients the company 's robo investment advisor platform which utilizes a proprietary trading algorithm licensed from an affiliate , kca technologies , a wholly-owned subsidiary of kca . the company , consistent with industry developments , intends to offer access to this technology to its customers through advisornxt . investment advisor representatives will assist each client in reviewing information about the programs , completing a client questionnaire to determine the client 's risk tolerance , financial situation and investment objectives and selecting an investment strategy . during 2017 , the revenues of the advisornxt 's operations were immaterial to the company 's revenues . critical accounting policies we generally follow accounting policies standard in the brokerage industry and believe that our policies appropriately reflect our financial position and results of operations . our management makes significant estimates that affect the reported amounts of assets , liabilities , revenues and expenses and the related disclosure of contingent assets and liabilities included in the financial statements . the estimates relate primarily to revenue and expense items in the normal course of business as to which we receive no confirmations , invoices , or other documentation , at the time the books are closed for a period . we use our best judgment , based on our knowledge of revenue transactions and expenses incurred , to estimate the amount of such revenue and expenses . we are not aware of any material differences between the estimates used in closing our books for the last five years and the actual amounts of revenue and expenses incurred when we subsequently receive the actual confirmations , invoices or other documentation . 22 results of operations year ended december 31 , 2017 compared to year ended december 31 , 2016 revenues . total revenues for 2017 were $ 13,110,000 , an increase of $ 3,298,000 , or 33.6 % from the prior year , primarily due to including revenue of approximately $ 1.6 million arising out of the assets purchased from stockcross and other interest bearing earnings . commission and fee income increased $ 3,139,000 or 37.8 % from the prior year , to $ 11,433,000 primarily due to the stockcross asset acquisition and an increase in fees from our money management activity and market rate increases . trading gains increased $ 718,000 , or 78.0 % to $ 1,639,000 from the prior year , primarily due to the stockcross asset acquisition . income from interest and dividends decreased $ 532,000 , or 96.6 % , to $ 19,000 from the prior year due to the distribution of interest bearing assets at the end of 2016. expenses . total expenses for 2017 were $ 10.8 million , a decrease of $ 4.6 million or 29.9 % from the prior year , primarily due to non-recurring expenses of $ 2,205,000 associated with the change of control of the company in december 2016 and modified cost structure . employee compensation and benefit costs increased $ 192,000 , or 3.9 % , from the prior year to $ 5.1 million , primarily due to an increase in the number of employees resulting from the stockcross asset acquisition . clearing fees increased $ 165,000 , or 19.1 % , from the prior year to $ 1,031,000 , primarily due to expense associated with the stockcross asset acquisition . professional fees decreased $ 1,323,000 , or 38.3 % from the prior year to $ 2.1 million , primarily due to fees associated with the change of control of the company and additional one-time non-recurring professional fees . communications expense decreased $ 204,000 , or 44.2 % from the prior year to $ 258,000 , primarily due to a reduction in expenses associated with quote usage . occupancy costs decreased $ 309,000
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2,357 | net income excluding the effect of the tcja increased 13.9 % to $ 190.7 million or $ 0.87 per share . net income and diluted earnings per share excluding the effect of the tcja are non-gaap financial measures . management believes these measures help investors understand the effect of these on reported results . all of the company 's business lines experienced growth for the year , with residential pest control revenues up 6.4 % , commercial pest control revenues up 5.1 % and termite and ancillary services revenues up 9.7 % . 14 during the year , the company increased its presence around the world with the addition of 11 new orkin international franchises . hometeam pest defense announced that they had reached one million taexx ยฎ installations . we acquired northwest exterminating based in marietta , ga which contributed in the growth of the company 's revenues the last five months . strategic acquisitions remain a priority for rollins . the company also continued to improve our routing and scheduling capabilities as we utilize our customer service manager ( โ csm โ ) boss and its virtual route management feature . boss has been fully implemented in the orkin 's u.s. operations . strategic acquisitions remain a priority for rollins , and as in the past , we will continue to seek out companies that are a โ fit โ for us in both , the pest control and wildlife areas of our business . results of operationsโ2017 versus 2016 overview the company 's revenues increased to $ 1.674 billion in 2017 , a 6.4 % increase compared to 2016. gross margin increased to 51.0 % for 2017 from 50.9 % in 2016. sales , general and administrative expense were 30.1 % of revenues in 2017 compared to 31.2 % in 2016. the company 's depreciation and amortization margin increased 0.2 percentage points to 3.4 % in 2017 compared to 3.2 % in 2016. rollins ' net income of $ 179.1 million in 2017 was an increase of $ 11.7 million or 7.0 % over $ 167.4 million in 2016. net profit margin improved to 10.7 % in 2017 from 10.6 % in 2016. rollins continued to expand our global brand recognition with acquisitions in the united states and canada as well as expanding our orkin international franchise program in numerous countries around the globe . the company is now in 53 countries and continues to seek new international opportunities . revenues revenues for the year ended december 31 , 2017 were $ 1.674 billion , an increase of $ 100.5 million or 6.4 % from 2016 revenues of $ 1.573 billion . growth occurred across all service lines and brands with our canadian and australian companies being hindered by unfavorable foreign currency exchange rates . organic growth and pricing accounted for approximately 4.5 % of our increase and our acquisitions contributed the remaining revenue growth . commercial pest control represented approximately 40 % of the company 's revenue in 2017 and grew 5.1 % due to increases in sales , an emphasis on closing leads , increased bed bug revenue , and acquisitions . commercial pest control was negatively impacted by foreign currency exchange as orkin canada and rollins australia are heavily commercial . residential pest control , which represented approximately 42 % of the company 's revenue , increased 6.4 % driven by an increase in lead closure , pricing , as well as increased taexx ยฎ homebuilder installations , and acquisitions . the company 's termite business , which represented approximately 18 % of the company 's revenue , grew 9.7 % in 2017 due to acquisitions , increases in drywood fumigations and ancillary service sales , ( such as moisture control and insulation ) . the company implemented its traditional price increase program in june 2017. less than 2 % of the company 's revenue increase is attributable to pricing actions . approximately 80 % of the company 's pest control revenue was recurring in 2017 as well as 2016. the company 's foreign operations accounted for approximately 8 % and 7 % of total revenues for the years ended december 31 , 2017 and 2016 , respectively . the company established new franchises in several international countries around the globe in 2017 for a total of 81 orkin international franchises , two canadian critter control franchises , and eleven australian franchises operated by murray pest control and scientific pest management at december 31 , 2017 , compared to 70 orkin international franchises , two canadian critter control franchises and seven australian franchises at december 31 , 2016. international and domestic franchising revenue was less than 1 % of the company 's revenues for 2017. orkin had 128 and 120 franchises ( domestic and international ) at december 31 , 2017 and 2016 , respectively . the company had 89 critter control franchises at december 31 , 2017 , down 5 from 2016. critter control operations , inc. , a wholly-owned subsidiary of the company , has begun the process of purchasing critter control franchises . revenue from franchises was down 2.9 % in 2017 compared to 2016 as we acquire franchises from critter control . cost of services provided for the twelve months ended december 31 , 2017 cost of services provided increased $ 47.6 million or 6.2 % , compared to the twelve months ended december 31 , 2016. gross margin for the year increased to 51.0 % for 2017 compared to 50.9 % for 2016 due to favorable service salary cost as we utilize boss , our crm and operating system and vrm to improve our customer routing and scheduling to maximize efficiencies . story_separator_special_tag because it is not possible to accurately predict the ultimate result of the litigation , judgments concerning accruals for liabilities and costs associated with litigation are inherently uncertain and actual liabilities may vary from amounts estimated or accrued . however , in the opinion of management , the outcome of the litigation will not have a material adverse impact on the company 's financial condition or results of operations . contingency accruals are included in other current liabilities and long-term accrued liabilities on the company 's consolidated statements of financial position . defined benefit pension plans โ in 2005 , the company ceased all future benefit accruals under the rollins , inc. defined benefit plan , although the company remains obligated to provide employees benefits earned through june 2005. the company also includes the waltham services , llc hourly employee pension plan to the company 's financial statements . the company accounts for these defined benefit plans in accordance with the fasb asc topic 715 โ compensation- retirement benefits โ , and engages an outside actuary to calculate its obligations and costs . with the assistance of the actuary , the company evaluates the significant assumptions used on a periodic basis including the estimated future return on plan assets , the discount rate , and other factors , and makes adjustments to these liabilities as necessary . 20 the company chooses an expected rate of return on plan assets based on historical results for similar allocations among asset classes , the investments strategy , and the views of our investment adviser . differences between the expected long-term return on plan assets and the actual return are amortized over future years . therefore , the net deferral of past asset gains or losses ultimately affects future pension expense . the company 's assumption for the expected return on plan assets is 7.0 % which is unchanged from the prior year . the discount rate reflects the current rate at which the pension liabilities could be effectively settled at the end of the year . in estimating this rate , the company utilizes a yield curve approach . the approach utilizes an economic model whereby the company 's expected benefit payments over the life of the plans is forecast and then compared to a portfolio of corporate bonds that will mature at the same time that the benefit payments are due in any given year . the economic model then calculates the one discount rate to apply to all benefit payments over the life of the plan which will result in the same total lump sum as the payments from the corporate bonds . the discount rate was 4.0 % as of december 31 , 2017 compared to 4.45 % in 2016 and 4.7 % in 2015. a lower discount rate increases the present value of benefit obligation . as set forth in note 14 to the company 's financial statements , included among the asset categories for the plan 's investments are real estate , tactical composite and alternative investments comprised of investments in real estate and hedge funds . these investments are categorized as level 3 investments and are valued using significant non-observable inputs which do not have a readily determinable fair value . in accordance with accounting standards update ( โ asu โ ) no . 2009-12 โ investments in certain entities that calculate net asset value per share ( or its equivalent ) , โ these investments are valued based on the net asset value per share calculated by the funds in which the plan has invested . these valuations are subject to judgments and assumptions of the funds which may prove to be incorrect , resulting in risks of incorrect valuation of these investments . the company seeks to mitigate against these risks by evaluating the appropriateness of the funds ' judgments and assumptions by reviewing the financial data included in the funds ' financial statements for reasonableness . as of december 31 , 2017 , the defined benefit plans were fully-funded and the recorded change within accumulated other comprehensive income increased stockholders ' equity by $ 19.0 million before tax and $ 14.2 million after tax . recent accounting guidance see note 1 - summary of significant accounting policies of the notes to financial statements ( part ii , item 8 of this form 10-k ) for further discussion . 21 forward-looking statements this annual report contains forward-looking statements within the meaning of the private securities litigation reform act of 1995. such forward-looking statements include statements regarding ( i ) management 's belief that the company competes favorably with competitors , ( ii ) the expectation for the company 's corporate tax rate for 2018 ; ( iii ) the company 's maintenance of sufficient supplies to fulfill its immediate needs and to alleviate potential short-term shortages in such supplies , ( iv ) any environmental remediation costs estimated to be incurred are not material to the company 's financial condition or operating results , ( v ) the adequacy of the company 's facilities to meet its future needs ; ( vi ) the outcome of litigation , as discussed in the legal proceedings section and elsewhere and the company 's belief that such litigation will not have a material adverse effect on the company 's financial condition , results of operations or liquidity ; ( vii ) the belief that the company has adequate liquid assets , funding sources and accruals to satisfy any claims ; ( viii ) the company 's expectation to continue its payment of cash dividends ; ( ix ) plans regarding acquisitions and franchise expansion ; ( x ) the adequacy of the company 's resources and borrowings to fund operations , obligations , and expansions ; ( xi ) management 's belief that the company is not expected to make a contribution to the plans in 2018 ; ( xii ) the company 's projected 2018 capital expenditures
| cash and cash flow cash from operating activities is the principal source of cash generation for our businesses . the most significant source of cash in rollins ' cash flow from operations is customer-related activities , the largest of which is collecting cash resulting from services sales . the most significant operating use of cash is to pay our suppliers , employees , tax authorities and others for a wide range of material and services . the company 's cash and cash equivalents at december 31 , 2017 , 2016 , and 2015 were $ 107.1 million , $ 142.8 million , and $ 134.6 million , respectively . replace_table_token_13_th cash provided by operating activities the company 's operations generated cash of $ 235.4 million for the year ended december 31 , 2017 primarily from net income of $ 179.1 million , compared with cash provided by operating activities of $ 226.5 million in 2016 and $ 196.4 million in 2015. the company believes its current cash and cash equivalents balances , future cash flows expected to be generated from operating activities and available borrowings under its $ 175.0 million credit facility will be sufficient to finance its current operations and obligations , and fund expansion of the business for the foreseeable future . the company 's made no contributions to the rollins , inc. and its wholly-owned subsidiaries ' defined benefit retirement plans ( the โ plans โ ) during the year ended december 31 , 2017. the plans were fully-funded with a prepaid balance . we contributed $ 3.3 million and $ 5.0 million during the years ended december 31 , 2016 and 2015 , respectively , as a result of the plans ' funding status . the company 's management is not expecting to make a contribution during fiscal year 2018. in the opinion of management , additional plan contributions , if any , will not have a material effect on the company 's financial position , results of operations or liquidity .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash and cash flow cash from operating activities is the principal source of cash generation for our businesses . the most significant source of cash in rollins ' cash flow from operations is customer-related activities , the largest of which is collecting cash resulting from services sales . the most significant operating use of cash is to pay our suppliers , employees , tax authorities and others for a wide range of material and services . the company 's cash and cash equivalents at december 31 , 2017 , 2016 , and 2015 were $ 107.1 million , $ 142.8 million , and $ 134.6 million , respectively . replace_table_token_13_th cash provided by operating activities the company 's operations generated cash of $ 235.4 million for the year ended december 31 , 2017 primarily from net income of $ 179.1 million , compared with cash provided by operating activities of $ 226.5 million in 2016 and $ 196.4 million in 2015. the company believes its current cash and cash equivalents balances , future cash flows expected to be generated from operating activities and available borrowings under its $ 175.0 million credit facility will be sufficient to finance its current operations and obligations , and fund expansion of the business for the foreseeable future . the company 's made no contributions to the rollins , inc. and its wholly-owned subsidiaries ' defined benefit retirement plans ( the โ plans โ ) during the year ended december 31 , 2017. the plans were fully-funded with a prepaid balance . we contributed $ 3.3 million and $ 5.0 million during the years ended december 31 , 2016 and 2015 , respectively , as a result of the plans ' funding status . the company 's management is not expecting to make a contribution during fiscal year 2018. in the opinion of management , additional plan contributions , if any , will not have a material effect on the company 's financial position , results of operations or liquidity .
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Suspicious Activity Report : net income excluding the effect of the tcja increased 13.9 % to $ 190.7 million or $ 0.87 per share . net income and diluted earnings per share excluding the effect of the tcja are non-gaap financial measures . management believes these measures help investors understand the effect of these on reported results . all of the company 's business lines experienced growth for the year , with residential pest control revenues up 6.4 % , commercial pest control revenues up 5.1 % and termite and ancillary services revenues up 9.7 % . 14 during the year , the company increased its presence around the world with the addition of 11 new orkin international franchises . hometeam pest defense announced that they had reached one million taexx ยฎ installations . we acquired northwest exterminating based in marietta , ga which contributed in the growth of the company 's revenues the last five months . strategic acquisitions remain a priority for rollins . the company also continued to improve our routing and scheduling capabilities as we utilize our customer service manager ( โ csm โ ) boss and its virtual route management feature . boss has been fully implemented in the orkin 's u.s. operations . strategic acquisitions remain a priority for rollins , and as in the past , we will continue to seek out companies that are a โ fit โ for us in both , the pest control and wildlife areas of our business . results of operationsโ2017 versus 2016 overview the company 's revenues increased to $ 1.674 billion in 2017 , a 6.4 % increase compared to 2016. gross margin increased to 51.0 % for 2017 from 50.9 % in 2016. sales , general and administrative expense were 30.1 % of revenues in 2017 compared to 31.2 % in 2016. the company 's depreciation and amortization margin increased 0.2 percentage points to 3.4 % in 2017 compared to 3.2 % in 2016. rollins ' net income of $ 179.1 million in 2017 was an increase of $ 11.7 million or 7.0 % over $ 167.4 million in 2016. net profit margin improved to 10.7 % in 2017 from 10.6 % in 2016. rollins continued to expand our global brand recognition with acquisitions in the united states and canada as well as expanding our orkin international franchise program in numerous countries around the globe . the company is now in 53 countries and continues to seek new international opportunities . revenues revenues for the year ended december 31 , 2017 were $ 1.674 billion , an increase of $ 100.5 million or 6.4 % from 2016 revenues of $ 1.573 billion . growth occurred across all service lines and brands with our canadian and australian companies being hindered by unfavorable foreign currency exchange rates . organic growth and pricing accounted for approximately 4.5 % of our increase and our acquisitions contributed the remaining revenue growth . commercial pest control represented approximately 40 % of the company 's revenue in 2017 and grew 5.1 % due to increases in sales , an emphasis on closing leads , increased bed bug revenue , and acquisitions . commercial pest control was negatively impacted by foreign currency exchange as orkin canada and rollins australia are heavily commercial . residential pest control , which represented approximately 42 % of the company 's revenue , increased 6.4 % driven by an increase in lead closure , pricing , as well as increased taexx ยฎ homebuilder installations , and acquisitions . the company 's termite business , which represented approximately 18 % of the company 's revenue , grew 9.7 % in 2017 due to acquisitions , increases in drywood fumigations and ancillary service sales , ( such as moisture control and insulation ) . the company implemented its traditional price increase program in june 2017. less than 2 % of the company 's revenue increase is attributable to pricing actions . approximately 80 % of the company 's pest control revenue was recurring in 2017 as well as 2016. the company 's foreign operations accounted for approximately 8 % and 7 % of total revenues for the years ended december 31 , 2017 and 2016 , respectively . the company established new franchises in several international countries around the globe in 2017 for a total of 81 orkin international franchises , two canadian critter control franchises , and eleven australian franchises operated by murray pest control and scientific pest management at december 31 , 2017 , compared to 70 orkin international franchises , two canadian critter control franchises and seven australian franchises at december 31 , 2016. international and domestic franchising revenue was less than 1 % of the company 's revenues for 2017. orkin had 128 and 120 franchises ( domestic and international ) at december 31 , 2017 and 2016 , respectively . the company had 89 critter control franchises at december 31 , 2017 , down 5 from 2016. critter control operations , inc. , a wholly-owned subsidiary of the company , has begun the process of purchasing critter control franchises . revenue from franchises was down 2.9 % in 2017 compared to 2016 as we acquire franchises from critter control . cost of services provided for the twelve months ended december 31 , 2017 cost of services provided increased $ 47.6 million or 6.2 % , compared to the twelve months ended december 31 , 2016. gross margin for the year increased to 51.0 % for 2017 compared to 50.9 % for 2016 due to favorable service salary cost as we utilize boss , our crm and operating system and vrm to improve our customer routing and scheduling to maximize efficiencies . story_separator_special_tag because it is not possible to accurately predict the ultimate result of the litigation , judgments concerning accruals for liabilities and costs associated with litigation are inherently uncertain and actual liabilities may vary from amounts estimated or accrued . however , in the opinion of management , the outcome of the litigation will not have a material adverse impact on the company 's financial condition or results of operations . contingency accruals are included in other current liabilities and long-term accrued liabilities on the company 's consolidated statements of financial position . defined benefit pension plans โ in 2005 , the company ceased all future benefit accruals under the rollins , inc. defined benefit plan , although the company remains obligated to provide employees benefits earned through june 2005. the company also includes the waltham services , llc hourly employee pension plan to the company 's financial statements . the company accounts for these defined benefit plans in accordance with the fasb asc topic 715 โ compensation- retirement benefits โ , and engages an outside actuary to calculate its obligations and costs . with the assistance of the actuary , the company evaluates the significant assumptions used on a periodic basis including the estimated future return on plan assets , the discount rate , and other factors , and makes adjustments to these liabilities as necessary . 20 the company chooses an expected rate of return on plan assets based on historical results for similar allocations among asset classes , the investments strategy , and the views of our investment adviser . differences between the expected long-term return on plan assets and the actual return are amortized over future years . therefore , the net deferral of past asset gains or losses ultimately affects future pension expense . the company 's assumption for the expected return on plan assets is 7.0 % which is unchanged from the prior year . the discount rate reflects the current rate at which the pension liabilities could be effectively settled at the end of the year . in estimating this rate , the company utilizes a yield curve approach . the approach utilizes an economic model whereby the company 's expected benefit payments over the life of the plans is forecast and then compared to a portfolio of corporate bonds that will mature at the same time that the benefit payments are due in any given year . the economic model then calculates the one discount rate to apply to all benefit payments over the life of the plan which will result in the same total lump sum as the payments from the corporate bonds . the discount rate was 4.0 % as of december 31 , 2017 compared to 4.45 % in 2016 and 4.7 % in 2015. a lower discount rate increases the present value of benefit obligation . as set forth in note 14 to the company 's financial statements , included among the asset categories for the plan 's investments are real estate , tactical composite and alternative investments comprised of investments in real estate and hedge funds . these investments are categorized as level 3 investments and are valued using significant non-observable inputs which do not have a readily determinable fair value . in accordance with accounting standards update ( โ asu โ ) no . 2009-12 โ investments in certain entities that calculate net asset value per share ( or its equivalent ) , โ these investments are valued based on the net asset value per share calculated by the funds in which the plan has invested . these valuations are subject to judgments and assumptions of the funds which may prove to be incorrect , resulting in risks of incorrect valuation of these investments . the company seeks to mitigate against these risks by evaluating the appropriateness of the funds ' judgments and assumptions by reviewing the financial data included in the funds ' financial statements for reasonableness . as of december 31 , 2017 , the defined benefit plans were fully-funded and the recorded change within accumulated other comprehensive income increased stockholders ' equity by $ 19.0 million before tax and $ 14.2 million after tax . recent accounting guidance see note 1 - summary of significant accounting policies of the notes to financial statements ( part ii , item 8 of this form 10-k ) for further discussion . 21 forward-looking statements this annual report contains forward-looking statements within the meaning of the private securities litigation reform act of 1995. such forward-looking statements include statements regarding ( i ) management 's belief that the company competes favorably with competitors , ( ii ) the expectation for the company 's corporate tax rate for 2018 ; ( iii ) the company 's maintenance of sufficient supplies to fulfill its immediate needs and to alleviate potential short-term shortages in such supplies , ( iv ) any environmental remediation costs estimated to be incurred are not material to the company 's financial condition or operating results , ( v ) the adequacy of the company 's facilities to meet its future needs ; ( vi ) the outcome of litigation , as discussed in the legal proceedings section and elsewhere and the company 's belief that such litigation will not have a material adverse effect on the company 's financial condition , results of operations or liquidity ; ( vii ) the belief that the company has adequate liquid assets , funding sources and accruals to satisfy any claims ; ( viii ) the company 's expectation to continue its payment of cash dividends ; ( ix ) plans regarding acquisitions and franchise expansion ; ( x ) the adequacy of the company 's resources and borrowings to fund operations , obligations , and expansions ; ( xi ) management 's belief that the company is not expected to make a contribution to the plans in 2018 ; ( xii ) the company 's projected 2018 capital expenditures
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2,358 | the proliferation and mass market acceptance of touch technology have prompted new applications and uses for existing and new offerings , thus making the production and utilization of these modules one of the fastest growing tech segments . the typical product development and release cycle is six to thirty-six months with new customers while existing customer lead times are typically six to nine months . during the initial cycle , there are three phases : evaluation , design , and commercialization . in the evaluation phase , prospects validate our technology and may produce short runs of prototype products . during the design phase , product development and solution definition begins . this design phase tends to be the longest and delays typically occur which may extend the term of the overall cycle . in the final phase , commercialization , the customer enters into full production mode , ships products to the market and we earn license revenue . our oem and odm customers use our touch technology in controller chips we developed in collaboration with texas instruments . in connection with the first generation nn1001 controller chip , we are obligated to contribute $ 500,000 of non-recurring engineering ( โ nre โ ) development costs to texas instruments based on a fee of $ 0.08 per unit for each of the first one million units shipped and $ 0.05 for the next eight million units shipped . through december 31 , 2013 , we have made total payments of $ 270,000 to texas instruments for the nn1001 controller chip . no amounts were recorded in the years ended december 31 , 2012 and 2011 because no nn1001 shipments occured during those periods . in connection with the next generation nn1002 controller chip , we are obligated to contribute $ 500,000 of nre to texas instruments based on a fee of $ 0.25 per unit for each of the first two million units shipped . the nn1002 is currently in development and has not been released to mass production . the nn1001 and nn1002 can only be sold to customers who have a technology license agreement with neonode . 19 critical accounting policies and estimates the consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the united states of america ( โ u.s . gaap โ ) and include the accounts of neonode inc. and its wholly owned subsidiaries . all inter-company accounts and transactions have been eliminated in consolidation . the consolidated balance sheet at december 31 , 2012 and the consolidated statements of operations , comprehensive loss and cash flows for the years ended december 31 , 2012 and 2011 include our accounts and those of our wholly owned subsidiary , neonode technologies ab ( sweden ) ( โ ntab โ ) . the consolidated balance sheet at december 31 , 2013 and the consolidated statements of operations , comprehensive loss and cash flows for the year ended december 31 , 2013 include our accounts and those of our wholly owned subsidiaries , ntab , neonode americas inc. ( u.s. ) ( โ nai โ ) , neonode kk ( japan ) ( โ njk โ ) , neon technology inc. ( u.s. ) ( โ nti โ ) and neno user interface solutions ab ( sweden ) ( โ nuiab โ ) . all inter-company accounts and transactions have been eliminated in consolidation . the accounting policies affecting our financial condition and results of operations are more fully described in note 2 to our consolidated financial statements . certain of our accounting policies require the application of judgment by management in selecting appropriate assumptions for calculating financial estimates , which inherently contain some degree of uncertainty . management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances . the historical experience and assumptions form the basis for making judgments about the reported carrying values of assets and liabilities and the reported amounts of revenue and expenses that may not be readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following are critical accounting policies and related judgments and estimates used in the preparation of our consolidated financial statements . estimates the preparation of financial statements in conformity with u.s. gaap requires making estimates and assumptions that affect , at the date of the consolidated financial statements , the reported amounts of assets and liabilities , disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses . actual results could differ from these estimates . significant estimates include , but are not limited to , collectability of accounts receivable , recoverability of long-lived assets , the valuation allowance related to our deferred tax assets and the fair value of options and warrants issued for stock-based compensation . revenue recognition licensing revenues : we derive revenue from the licensing of internally developed intellectual property ( โ ip โ ) . we enter into ip licensing agreements that generally provide licensees the right to incorporate our ip components in their products with terms and conditions that vary by licensee . the ip licensing agreements generally include a nonexclusive license for the underlying ip . fees under these agreements may include license fees relating to our ip and royalties payable following the distribution by our licensees of products incorporating the licensed technology . the license for our ip has standalone value and can be used by the licensee without maintenance and support . we follow us gaap for revenue recognition as per unit royalty products are distributed or licensed by our customers . story_separator_special_tag contractual obligation and off-balance sheet arrangements we do not have any transactions , arrangements , or other relationships with unconsolidated entities that are reasonably likely to affect our liquidity or capital resources other than the operating leases incurred in the normal course of business . a summary of future minimum payments under non-cancellable operating lease commitments as of december 31 , 2013 is as follows ( in thousands ) : less than more than total 1 year 1-3 years 3-5 years 5 years operating lease obligations $ 372 $ 319 $ 53 - - we have no special purpose or limited purpose entities that provide off-balance sheet financing , liquidity , or market or credit risk support . we do not engage in leasing , hedging , research and development services , or other relationships that expose us to liability that is not reflected on the face of the consolidated financial statements . 25 liquidity and capital resources our liquidity is dependent on many factors , including sales volume , operating profit and the efficiency of asset use and turnover . our future liquidity will be affected by , among other things : ยท actual versus anticipated licensing of our technology ; ยท our actual versus anticipated operating expenses ; ยท the timing of our oem customer product shipments ; ยท the timing of payment for our technology licensing agreements ; ยท our actual versus anticipated gross profit margin ; ยท our ability to raise additional capital , if necessary ; and ยท our ability to secure credit facilities , if necessary . at december 31 , 2013 , we had cash of $ 8.8 million , as compared to $ 9.1 million at december 31 , 2012. working capital ( current assets less current liabilities ) was $ 6.0 million at december 31 , 2013 , compared to working capital of $ 7.7 million at december 31 , 2012. net cash used in operating activities for the year ended december 31 , 2013 of $ 8.8 million was primarily the result of ( i ) a net loss of approximately $ 13.1 million and ( ii ) approximately $ 1.5 million in net cash provided by changes in operating assets and liabilities , primarily accounts receivable and deferred revenue . cash used to fund net losses is reduced by approximately $ 2.8 million in non-cash operating expenses , mainly comprised of depreciation and amortization and stock-based compensation . accounts receivable decreased approximately $ 1.2 million at december 31 , 2013 compared with december 31 , 2012 , primarily as a result of net revenues of approximately $ 1.0 million in the fourth quarter of 2013 compared to approximately $ 2.3 million in the fourth quarter of 2012. during 2013 and 2012 , we were successful in collecting cash from sales to our customers substantially in accordance with our standard payment terms to those customers . deferred revenue increased approximately $ 0.9 million during 2013 primarily as a result of additional license technology agreements and engineering projects entered into during 2013 as compared to 2012. net cash used in operating activities for the year ended december 31 , 2012 of $ 3.7 million was primarily the result of ( i ) a net loss of approximately $ 9.3 million and ( ii ) approximately $ 1.9 million in net cash provided by changes in operating assets and liabilities , primarily accounts receivable and deferred revenue . cash used to fund net losses is reduced by approximately $ 3.6 million in non-cash operating expenses , mainly comprised of depreciation and amortization and stock-based compensation . accounts receivable decreased approximately $ 1.3 million at december 31 , 2012 compared with december 31 , 2011 , primarily as a result of net revenues of approximately $ 2.3 million in the fourth quarter of 2012 compared to approximately $ 4.0 million in the fourth quarter of 2011. during 2012 and 2011 , we were successful in collecting cash from sales to our customers substantially in accordance with our standard payment terms to those customers . deferred revenue increased approximately $ 0.8 million during 2012 primarily as a result of additional license technology agreements and engineering projects entered into during 2012 as compared to 2011. net cash used in operating activities for the year ended december 31 , 2011 of $ 3.5 million was primarily the result of ( i ) a net loss of approximately $ 17.1 million and ( ii ) approximately $ 1.6 million in net cash used by changes in operating assets and liabilities , primarily accounts receivable and deferred revenue . cash used to fund net losses is reduced by approximately $ 15.3 million in net non-cash operating expenses , mainly comprised of stock-based compensation and discounts and deferred financing fees and the valuation of conversion features and warrants . accounts receivable increased approximately $ 3.2 million at december 31 , 2011 compared with december 31 , 2010 , primarily as a result of net revenues of approximately $ 4.0 million in the fourth quarter of 2011 compared to approximately $ 81,000 in the fourth quarter of 2010. during 2011 , we were successful in collecting cash from sales to our customers substantially in accordance with our standard payment terms to those customers . 26 deferred revenue increased approximately $ 1.4 million during 2011 primarily as a result of additional license technology agreements and engineering projects entered into during 2011 as compared to 2010. in the years ended december 31 , 2013 , 2012 and 2011 , we purchased $ 155,000 , $ 310,000 and $ 114,000 , respectively of fixed assets , consisting primarily of computer software , computers and engineering equipment . net cash provided by financing activities was $ 8.7 million and was due to net proceeds of $ 1.8 million received in connection with the exercise of stock options and warrants for shares of our common stock during the year ended december 31 , 2013. in
| cash flow information cash flows in foreign currencies have been converted to u.s. dollars at an approximate weighted average exchange rate for the respective reporting periods . the weighted average exchange rate for the consolidated statements of operations was 6.51 , 6.78 and 6.50 swedish krona to one u.s. dollar for the years ended december 31 , 2013 , 2012 and 2011 , respectively . the exchange rate for the consolidated balance sheets was 6.48 and 6.52 swedish krona to one u.s. dollar as of december 31 , 2013 and 2012 , respectively . the weighted-average exchange rate for the consolidated statement of operations and of comprehensive loss was 97.58 japanese yen to one u.s. dollar for the year ended december 31 , 2013. the exchange rate for the consolidated balance sheet was 105.22 japanese yen to one u.s. dollar as of december 31 , 2013. deferred revenue as of december 31 , 2013 and 2012 , we have $ 2.5 million and $ 2.1 million , respectively , of deferred license fee revenue related to prepayments for future license fees from three customers and a total of $ 1.2 million and $ 0.6 million , respectively , of deferred engineering development fees from twenty-one and thirteen customers , respectively . we defer the license fees until we have met all accounting requirements for revenue recognition as per unit royalty products are distributed or licensed by our customers and the engineering development fee revenue until such time as the engineering work has been completed and accepted by our customers .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flow information cash flows in foreign currencies have been converted to u.s. dollars at an approximate weighted average exchange rate for the respective reporting periods . the weighted average exchange rate for the consolidated statements of operations was 6.51 , 6.78 and 6.50 swedish krona to one u.s. dollar for the years ended december 31 , 2013 , 2012 and 2011 , respectively . the exchange rate for the consolidated balance sheets was 6.48 and 6.52 swedish krona to one u.s. dollar as of december 31 , 2013 and 2012 , respectively . the weighted-average exchange rate for the consolidated statement of operations and of comprehensive loss was 97.58 japanese yen to one u.s. dollar for the year ended december 31 , 2013. the exchange rate for the consolidated balance sheet was 105.22 japanese yen to one u.s. dollar as of december 31 , 2013. deferred revenue as of december 31 , 2013 and 2012 , we have $ 2.5 million and $ 2.1 million , respectively , of deferred license fee revenue related to prepayments for future license fees from three customers and a total of $ 1.2 million and $ 0.6 million , respectively , of deferred engineering development fees from twenty-one and thirteen customers , respectively . we defer the license fees until we have met all accounting requirements for revenue recognition as per unit royalty products are distributed or licensed by our customers and the engineering development fee revenue until such time as the engineering work has been completed and accepted by our customers .
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Suspicious Activity Report : the proliferation and mass market acceptance of touch technology have prompted new applications and uses for existing and new offerings , thus making the production and utilization of these modules one of the fastest growing tech segments . the typical product development and release cycle is six to thirty-six months with new customers while existing customer lead times are typically six to nine months . during the initial cycle , there are three phases : evaluation , design , and commercialization . in the evaluation phase , prospects validate our technology and may produce short runs of prototype products . during the design phase , product development and solution definition begins . this design phase tends to be the longest and delays typically occur which may extend the term of the overall cycle . in the final phase , commercialization , the customer enters into full production mode , ships products to the market and we earn license revenue . our oem and odm customers use our touch technology in controller chips we developed in collaboration with texas instruments . in connection with the first generation nn1001 controller chip , we are obligated to contribute $ 500,000 of non-recurring engineering ( โ nre โ ) development costs to texas instruments based on a fee of $ 0.08 per unit for each of the first one million units shipped and $ 0.05 for the next eight million units shipped . through december 31 , 2013 , we have made total payments of $ 270,000 to texas instruments for the nn1001 controller chip . no amounts were recorded in the years ended december 31 , 2012 and 2011 because no nn1001 shipments occured during those periods . in connection with the next generation nn1002 controller chip , we are obligated to contribute $ 500,000 of nre to texas instruments based on a fee of $ 0.25 per unit for each of the first two million units shipped . the nn1002 is currently in development and has not been released to mass production . the nn1001 and nn1002 can only be sold to customers who have a technology license agreement with neonode . 19 critical accounting policies and estimates the consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the united states of america ( โ u.s . gaap โ ) and include the accounts of neonode inc. and its wholly owned subsidiaries . all inter-company accounts and transactions have been eliminated in consolidation . the consolidated balance sheet at december 31 , 2012 and the consolidated statements of operations , comprehensive loss and cash flows for the years ended december 31 , 2012 and 2011 include our accounts and those of our wholly owned subsidiary , neonode technologies ab ( sweden ) ( โ ntab โ ) . the consolidated balance sheet at december 31 , 2013 and the consolidated statements of operations , comprehensive loss and cash flows for the year ended december 31 , 2013 include our accounts and those of our wholly owned subsidiaries , ntab , neonode americas inc. ( u.s. ) ( โ nai โ ) , neonode kk ( japan ) ( โ njk โ ) , neon technology inc. ( u.s. ) ( โ nti โ ) and neno user interface solutions ab ( sweden ) ( โ nuiab โ ) . all inter-company accounts and transactions have been eliminated in consolidation . the accounting policies affecting our financial condition and results of operations are more fully described in note 2 to our consolidated financial statements . certain of our accounting policies require the application of judgment by management in selecting appropriate assumptions for calculating financial estimates , which inherently contain some degree of uncertainty . management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances . the historical experience and assumptions form the basis for making judgments about the reported carrying values of assets and liabilities and the reported amounts of revenue and expenses that may not be readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following are critical accounting policies and related judgments and estimates used in the preparation of our consolidated financial statements . estimates the preparation of financial statements in conformity with u.s. gaap requires making estimates and assumptions that affect , at the date of the consolidated financial statements , the reported amounts of assets and liabilities , disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses . actual results could differ from these estimates . significant estimates include , but are not limited to , collectability of accounts receivable , recoverability of long-lived assets , the valuation allowance related to our deferred tax assets and the fair value of options and warrants issued for stock-based compensation . revenue recognition licensing revenues : we derive revenue from the licensing of internally developed intellectual property ( โ ip โ ) . we enter into ip licensing agreements that generally provide licensees the right to incorporate our ip components in their products with terms and conditions that vary by licensee . the ip licensing agreements generally include a nonexclusive license for the underlying ip . fees under these agreements may include license fees relating to our ip and royalties payable following the distribution by our licensees of products incorporating the licensed technology . the license for our ip has standalone value and can be used by the licensee without maintenance and support . we follow us gaap for revenue recognition as per unit royalty products are distributed or licensed by our customers . story_separator_special_tag contractual obligation and off-balance sheet arrangements we do not have any transactions , arrangements , or other relationships with unconsolidated entities that are reasonably likely to affect our liquidity or capital resources other than the operating leases incurred in the normal course of business . a summary of future minimum payments under non-cancellable operating lease commitments as of december 31 , 2013 is as follows ( in thousands ) : less than more than total 1 year 1-3 years 3-5 years 5 years operating lease obligations $ 372 $ 319 $ 53 - - we have no special purpose or limited purpose entities that provide off-balance sheet financing , liquidity , or market or credit risk support . we do not engage in leasing , hedging , research and development services , or other relationships that expose us to liability that is not reflected on the face of the consolidated financial statements . 25 liquidity and capital resources our liquidity is dependent on many factors , including sales volume , operating profit and the efficiency of asset use and turnover . our future liquidity will be affected by , among other things : ยท actual versus anticipated licensing of our technology ; ยท our actual versus anticipated operating expenses ; ยท the timing of our oem customer product shipments ; ยท the timing of payment for our technology licensing agreements ; ยท our actual versus anticipated gross profit margin ; ยท our ability to raise additional capital , if necessary ; and ยท our ability to secure credit facilities , if necessary . at december 31 , 2013 , we had cash of $ 8.8 million , as compared to $ 9.1 million at december 31 , 2012. working capital ( current assets less current liabilities ) was $ 6.0 million at december 31 , 2013 , compared to working capital of $ 7.7 million at december 31 , 2012. net cash used in operating activities for the year ended december 31 , 2013 of $ 8.8 million was primarily the result of ( i ) a net loss of approximately $ 13.1 million and ( ii ) approximately $ 1.5 million in net cash provided by changes in operating assets and liabilities , primarily accounts receivable and deferred revenue . cash used to fund net losses is reduced by approximately $ 2.8 million in non-cash operating expenses , mainly comprised of depreciation and amortization and stock-based compensation . accounts receivable decreased approximately $ 1.2 million at december 31 , 2013 compared with december 31 , 2012 , primarily as a result of net revenues of approximately $ 1.0 million in the fourth quarter of 2013 compared to approximately $ 2.3 million in the fourth quarter of 2012. during 2013 and 2012 , we were successful in collecting cash from sales to our customers substantially in accordance with our standard payment terms to those customers . deferred revenue increased approximately $ 0.9 million during 2013 primarily as a result of additional license technology agreements and engineering projects entered into during 2013 as compared to 2012. net cash used in operating activities for the year ended december 31 , 2012 of $ 3.7 million was primarily the result of ( i ) a net loss of approximately $ 9.3 million and ( ii ) approximately $ 1.9 million in net cash provided by changes in operating assets and liabilities , primarily accounts receivable and deferred revenue . cash used to fund net losses is reduced by approximately $ 3.6 million in non-cash operating expenses , mainly comprised of depreciation and amortization and stock-based compensation . accounts receivable decreased approximately $ 1.3 million at december 31 , 2012 compared with december 31 , 2011 , primarily as a result of net revenues of approximately $ 2.3 million in the fourth quarter of 2012 compared to approximately $ 4.0 million in the fourth quarter of 2011. during 2012 and 2011 , we were successful in collecting cash from sales to our customers substantially in accordance with our standard payment terms to those customers . deferred revenue increased approximately $ 0.8 million during 2012 primarily as a result of additional license technology agreements and engineering projects entered into during 2012 as compared to 2011. net cash used in operating activities for the year ended december 31 , 2011 of $ 3.5 million was primarily the result of ( i ) a net loss of approximately $ 17.1 million and ( ii ) approximately $ 1.6 million in net cash used by changes in operating assets and liabilities , primarily accounts receivable and deferred revenue . cash used to fund net losses is reduced by approximately $ 15.3 million in net non-cash operating expenses , mainly comprised of stock-based compensation and discounts and deferred financing fees and the valuation of conversion features and warrants . accounts receivable increased approximately $ 3.2 million at december 31 , 2011 compared with december 31 , 2010 , primarily as a result of net revenues of approximately $ 4.0 million in the fourth quarter of 2011 compared to approximately $ 81,000 in the fourth quarter of 2010. during 2011 , we were successful in collecting cash from sales to our customers substantially in accordance with our standard payment terms to those customers . 26 deferred revenue increased approximately $ 1.4 million during 2011 primarily as a result of additional license technology agreements and engineering projects entered into during 2011 as compared to 2010. in the years ended december 31 , 2013 , 2012 and 2011 , we purchased $ 155,000 , $ 310,000 and $ 114,000 , respectively of fixed assets , consisting primarily of computer software , computers and engineering equipment . net cash provided by financing activities was $ 8.7 million and was due to net proceeds of $ 1.8 million received in connection with the exercise of stock options and warrants for shares of our common stock during the year ended december 31 , 2013. in
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2,359 | cash connect ยฎ also operates 441 atms for the bank , which has the largest branded atm network in our market . as a provider of atm vault cash to the u.s. atm industry , cash connect ยฎ is exposed to substantial operational risk , including theft of cash from atms , armored vehicles , or armored carrier terminals , as well as general risk of accounting errors or fraud . this risk is managed through a series of financial controls , automated tracking and settlement systems , contracts , and other risk mitigation strategies , including both loss prevention and loss recovery strategies . throughout its 18 -year history , cash connect ยฎ periodically has been exposed to theft from armored courier companies and consistently has been able to recover losses through its risk management strategies , although there can be no guarantees that we will be able to recover future losses . 43 our wealth management segment provides a broad array of planning and advisory services , investment management , trust services , and credit and deposit products to individual , corporate , and institutional clients through multiple integrated businesses . combined , these businesses had $ 19.0 billion of assets under management ( aum ) and assets under administration ( aua ) at december 31 , 2018 . wsfs wealth investments provides financial advisory services along with insurance and brokerage products . cypress , a registered investment adviser , is a fee-only wealth management firm managing a โ balanced โ investment style portfolio focused on preservation of capital and generating current income . west capital , a registered investment adviser , is a fee-only wealth management firm operating under a multi-family office philosophy to provide customized solutions to institutions and high-net-worth individuals . the trust division of wsfs bank ( doing business as wsfs institutional services ) provides personal trust and fiduciary services , as well as , trustee , agency , bankruptcy administration , custodial and commercial domicile services to corporate and institutional clients . powdermill is a multi-family office specializing in providing independent solutions to high-net-worth individuals , families and corporate executives through a coordinated , centralized approach . wsfs wealth client management serves high-net-worth clients by delivering credit and deposit products and partnering with other wealth management units to provide comprehensive solutions to clients . as a provider of trust services to our clients , we are exposed to operational , reputation-related , and legal risks due to the inherent complexity of the trust business . to mitigate these risks , we rely on the hiring , development , and retention of experienced associates , financial controls , managerial oversight , and other risk management practices . also , from time to time our trust business may give rise to disputes with clients and we may be exposed to litigation which could result in significant costs . the ultimate outcome of any litigation is uncertain . results of operations 2018 compared with 2017 we recorded net income of $ 134.7 million , or $ 4.19 per diluted common share , for the year ended december 31 , 2018 , an increase of $ 84.5 million compared to $ 50.2 million , or $ 1.56 per diluted common share , for the year ended december 31 , 2017 . results in 2018 included a partial recovery related to a legal settlement of $ 7.9 million and corporate development costs of $ 6.5 million related to our pending acquisition of beneficial , compared to $ 0.9 million of similar costs in 2017 . results for 2017 were impacted by the enactment of the tax cuts and jobs act ( tax reform act ) in december 2017 , which required us to re-measure our deferred tax asset , resulting in a tax charge of $ 14.5 million in the quarter ended december 31 , 2017 . additionally , and related to this tax change , we decided to surrender all of our bank-owned life insurance ( boli ) policies in 2018 , resulting in an additional tax charge of $ 8.0 million for the quarter ended december 31 , 2017 , and we also contributed $ 1.5 million ( pre-tax ) to the wsfs foundation in the same quarter . further , during the first quarter of 2018 , we agreed to the settlement of a legal claim , which resulted in legal expense of $ 12.0 million recorded in the fourth quarter of 2017 . net interest income for the year ended december 31 , 2018 was $ 246.5 million , an increase of $ 25.2 million compared to 2017 . our provision for loan losses increase d $ 2.2 million in 2018 , primarily due to loan portfolio growth and the deterioration of three large relationships , which more than offset the generally favorable portfolio migration in 2018 . noninterest , or fee income , increase d $ 37.9 million primarily due to unrealized and realized gains on our investment in visa class b shares , as well as growth in credit/debit card and atm income and higher investment management and fiduciary revenue . finally , operating expenses decrease d $ 1.4 million in 2018 , primarily reflecting insurance recoveries related to a settlement of a legal claim and fraud loss in 2017 , partially offset by higher employee-related and ongoing operating costs to support our growth . see the net interest income , provision for loan losses , noninterest ( fee ) income , and noninterest expense sections below for further information . 2017 compared with 2016 we recorded net income of $ 50.2 million , or $ 1.56 per diluted common share , for the year ended december 31 , 2017 , a decrease of $ 13.8 million compared to $ 64.1 million , or $ 2.06 per diluted common share , for the year ended december 31 , 2016 . story_separator_special_tag total liabilities increase d $ 152.8 million , or 2 % , during the year to $ 6.4 billion at december 31 , 2018 , primarily comprised of the following ( in descending order of magnitude ) . customer deposits : customer deposits increase d $ 424.4 million , or 8 % , during 2018 to $ 5.4 billion . core deposit relationships increased $ 380.5 million , or 9 % , and customer time deposits increased $ 43.9 million , or 7 % , primarily due to organic growth . the table below depicts the changes in customer deposits during the last three years : replace_table_token_15_th borrowings and brokered deposits : borrowings and brokered deposits decrease d by $ 269.6 million . included in the decrease was a $ 381.5 million decrease in fhlb advances , which was primarily due an increase in deposits , partially offset by higher fed funds purchased , which increase d $ 130.0 million , due to a change in our funding mix between the fed funds and fhlb advances and an increase of $ 13.3 million , in other borrowed funds , which was primarily due to higher sweep repurchase balances . we did not have any securities sold under repurchase agreements at december 31 , 2018 . 51 stockholders ' equity stockholders ' equity increase d $ 96.6 million , or 13 % , to $ 820.9 million at december 31 , 2018 compared to $ 724.3 million at december 31 , 2017 . capital in excess of par value increase d $ 13.5 million , primarily due to stock-based compensation expense and the issuance of stock related to the exercise of stock options . retained earnings increase d $ 121.5 million , or 18 % , to $ 791.0 million during 2018 , primarily as a result of earnings from the year less dividends paid . these increases in stockholders ' equity were partially offset by $ 31.2 million related to share repurchases during 2018 , and $ 7.2 million from a decline in the fair value of our available-for-sale securities portfolio . asset/liability management our primary asset/liability management goal is to optimize long term net interest income opportunities within the constraints of managing interest rate risk , ensuring adequate liquidity and funding and maintaining a strong capital base . in general , interest rate risk is mitigated by closely matching the maturities or repricing periods of interest-sensitive assets and liabilities to ensure a favorable interest rate spread . we regularly review our interest-rate sensitivity , and use a variety of strategies as needed to adjust that sensitivity within acceptable tolerance ranges established by management and our board of directors . changing the relative proportions of fixed-rate and adjustable-rate assets and liabilities is one of our primary strategies to accomplish this objective . the matching of assets and liabilities may be analyzed using a number of methods including by examining the extent to which such assets and liabilities are โ interest-rate sensitive โ and by monitoring our interest-sensitivity gap . an interest-sensitivity gap is considered positive when the amount of interest-rate sensitive assets exceeds the amount of interest-rate sensitive liabilities repricing within a defined period , and is considered negative when the amount of interest-rate sensitive liabilities exceeds the amount of interest-rate sensitive assets repricing within a defined period . for additional information related to interest rate sensitivity , see item 7a . quantitative and qualitative disclosures about market risk . 52 the repricing and maturities of our interest-rate sensitive assets and interest-rate sensitive liabilities at december 31 , 2018 are shown in the following table : replace_table_token_16_th ( 1 ) includes commercial mortgage , construction , and residential mortgage loans ( 2 ) loan balances exclude nonaccruing loans , deferred fees and costs ( 3 ) assumes two-thirds of loans in process are variable and will reprice within one-year generally , during a period of rising interest rates , a positive gap would result in an increase in net interest income while a negative gap would adversely affect net interest income . conversely , during a period of falling rates , a positive gap would result in a decrease in net interest income while a negative gap would augment net interest income . however , the interest-sensitivity table does not provide a comprehensive representation of the impact of interest rate changes on net interest income . each category of assets or liabilities will not be affected equally or simultaneously by changes in the general level of interest rates . even assets and liabilities which contractually reprice within the rate period may reprice at the same price , at the same time or with the same frequency . it is also important to consider that the table represents a specific point in time . variations can occur as we adjust our interest sensitivity position throughout the year . to provide a more accurate position of our one-year gap , certain deposit classifications are based on the interest-rate sensitive attributes and not on the contractual repricing characteristics of these deposits . for the purpose of this analysis , we estimate , based on historical trends of our deposit accounts , that 75 % of our money market deposits , 50 % of our interest-bearing demand deposits and 50 % of our savings deposits are sensitive to interest rate changes . accordingly , these interest-sensitive portions are classified in the โ less than one year โ category with the remainder in the โ over five years โ category . deposit rates other than time deposit rates are variable . changes in deposit rates are generally subject to local market conditions and our discretion and are not indexed to any particular rate . 53 nonperforming assets nonperforming assets ( npas ) include nonaccruing loans , other real estate owned ( oreo ) and restructured loans . nonaccruing loans are those on which the accrual of interest has ceased . loans are placed on nonaccrual
| cash connect ยฎ segment the cash connect ยฎ segment income before taxes decreased $ 1.3 million , or 18 % , in 2018 compared to 2017 primarily due to a $ 5.7 million , or 21 % , increase in expenses associated with increased investments for several new services and product enhancements to our fee-based managed services and smart safe offerings , which continue to both diversify and expand revenue sources . the decrease was also driven by an increase of $ 3.6 million , or 38 % . in funding costs and a one-time true up adjustment of $ 0.9 million . offsetting these expense increases , external fee income increased $ 8.0 million or 19 % . cash connect ยฎ had over $ 1.0 billion and $ 970.1 million in total cash managed at december 31 , 2018 and 2017 , respectively . at year-end 2018 , cash connect ยฎ serviced over 24,300 non-bank atms and approximately 2,300 retail smart safes nationwide compared to over 20,000 non-bank atms and 800 smart safes at year-end 2017 . the cash connectยฎ segment income before taxes decreased $ 1.1 million , or 13 % , in 2017 compared to 2016 primarily due to a $ 6.9 million , or 35 % , increase in expenses associated with increased investments for several new services and product enhancements to our fee-based managed services and smart safe offerings , which continue to both diversify and expand revenue sources , as well as an increase of $ 3.7 million , or 65 % in funding costs . offsetting these expense increases , external fee income increased $ 10 million or 29 % .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash connect ยฎ segment the cash connect ยฎ segment income before taxes decreased $ 1.3 million , or 18 % , in 2018 compared to 2017 primarily due to a $ 5.7 million , or 21 % , increase in expenses associated with increased investments for several new services and product enhancements to our fee-based managed services and smart safe offerings , which continue to both diversify and expand revenue sources . the decrease was also driven by an increase of $ 3.6 million , or 38 % . in funding costs and a one-time true up adjustment of $ 0.9 million . offsetting these expense increases , external fee income increased $ 8.0 million or 19 % . cash connect ยฎ had over $ 1.0 billion and $ 970.1 million in total cash managed at december 31 , 2018 and 2017 , respectively . at year-end 2018 , cash connect ยฎ serviced over 24,300 non-bank atms and approximately 2,300 retail smart safes nationwide compared to over 20,000 non-bank atms and 800 smart safes at year-end 2017 . the cash connectยฎ segment income before taxes decreased $ 1.1 million , or 13 % , in 2017 compared to 2016 primarily due to a $ 6.9 million , or 35 % , increase in expenses associated with increased investments for several new services and product enhancements to our fee-based managed services and smart safe offerings , which continue to both diversify and expand revenue sources , as well as an increase of $ 3.7 million , or 65 % in funding costs . offsetting these expense increases , external fee income increased $ 10 million or 29 % .
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Suspicious Activity Report : cash connect ยฎ also operates 441 atms for the bank , which has the largest branded atm network in our market . as a provider of atm vault cash to the u.s. atm industry , cash connect ยฎ is exposed to substantial operational risk , including theft of cash from atms , armored vehicles , or armored carrier terminals , as well as general risk of accounting errors or fraud . this risk is managed through a series of financial controls , automated tracking and settlement systems , contracts , and other risk mitigation strategies , including both loss prevention and loss recovery strategies . throughout its 18 -year history , cash connect ยฎ periodically has been exposed to theft from armored courier companies and consistently has been able to recover losses through its risk management strategies , although there can be no guarantees that we will be able to recover future losses . 43 our wealth management segment provides a broad array of planning and advisory services , investment management , trust services , and credit and deposit products to individual , corporate , and institutional clients through multiple integrated businesses . combined , these businesses had $ 19.0 billion of assets under management ( aum ) and assets under administration ( aua ) at december 31 , 2018 . wsfs wealth investments provides financial advisory services along with insurance and brokerage products . cypress , a registered investment adviser , is a fee-only wealth management firm managing a โ balanced โ investment style portfolio focused on preservation of capital and generating current income . west capital , a registered investment adviser , is a fee-only wealth management firm operating under a multi-family office philosophy to provide customized solutions to institutions and high-net-worth individuals . the trust division of wsfs bank ( doing business as wsfs institutional services ) provides personal trust and fiduciary services , as well as , trustee , agency , bankruptcy administration , custodial and commercial domicile services to corporate and institutional clients . powdermill is a multi-family office specializing in providing independent solutions to high-net-worth individuals , families and corporate executives through a coordinated , centralized approach . wsfs wealth client management serves high-net-worth clients by delivering credit and deposit products and partnering with other wealth management units to provide comprehensive solutions to clients . as a provider of trust services to our clients , we are exposed to operational , reputation-related , and legal risks due to the inherent complexity of the trust business . to mitigate these risks , we rely on the hiring , development , and retention of experienced associates , financial controls , managerial oversight , and other risk management practices . also , from time to time our trust business may give rise to disputes with clients and we may be exposed to litigation which could result in significant costs . the ultimate outcome of any litigation is uncertain . results of operations 2018 compared with 2017 we recorded net income of $ 134.7 million , or $ 4.19 per diluted common share , for the year ended december 31 , 2018 , an increase of $ 84.5 million compared to $ 50.2 million , or $ 1.56 per diluted common share , for the year ended december 31 , 2017 . results in 2018 included a partial recovery related to a legal settlement of $ 7.9 million and corporate development costs of $ 6.5 million related to our pending acquisition of beneficial , compared to $ 0.9 million of similar costs in 2017 . results for 2017 were impacted by the enactment of the tax cuts and jobs act ( tax reform act ) in december 2017 , which required us to re-measure our deferred tax asset , resulting in a tax charge of $ 14.5 million in the quarter ended december 31 , 2017 . additionally , and related to this tax change , we decided to surrender all of our bank-owned life insurance ( boli ) policies in 2018 , resulting in an additional tax charge of $ 8.0 million for the quarter ended december 31 , 2017 , and we also contributed $ 1.5 million ( pre-tax ) to the wsfs foundation in the same quarter . further , during the first quarter of 2018 , we agreed to the settlement of a legal claim , which resulted in legal expense of $ 12.0 million recorded in the fourth quarter of 2017 . net interest income for the year ended december 31 , 2018 was $ 246.5 million , an increase of $ 25.2 million compared to 2017 . our provision for loan losses increase d $ 2.2 million in 2018 , primarily due to loan portfolio growth and the deterioration of three large relationships , which more than offset the generally favorable portfolio migration in 2018 . noninterest , or fee income , increase d $ 37.9 million primarily due to unrealized and realized gains on our investment in visa class b shares , as well as growth in credit/debit card and atm income and higher investment management and fiduciary revenue . finally , operating expenses decrease d $ 1.4 million in 2018 , primarily reflecting insurance recoveries related to a settlement of a legal claim and fraud loss in 2017 , partially offset by higher employee-related and ongoing operating costs to support our growth . see the net interest income , provision for loan losses , noninterest ( fee ) income , and noninterest expense sections below for further information . 2017 compared with 2016 we recorded net income of $ 50.2 million , or $ 1.56 per diluted common share , for the year ended december 31 , 2017 , a decrease of $ 13.8 million compared to $ 64.1 million , or $ 2.06 per diluted common share , for the year ended december 31 , 2016 . story_separator_special_tag total liabilities increase d $ 152.8 million , or 2 % , during the year to $ 6.4 billion at december 31 , 2018 , primarily comprised of the following ( in descending order of magnitude ) . customer deposits : customer deposits increase d $ 424.4 million , or 8 % , during 2018 to $ 5.4 billion . core deposit relationships increased $ 380.5 million , or 9 % , and customer time deposits increased $ 43.9 million , or 7 % , primarily due to organic growth . the table below depicts the changes in customer deposits during the last three years : replace_table_token_15_th borrowings and brokered deposits : borrowings and brokered deposits decrease d by $ 269.6 million . included in the decrease was a $ 381.5 million decrease in fhlb advances , which was primarily due an increase in deposits , partially offset by higher fed funds purchased , which increase d $ 130.0 million , due to a change in our funding mix between the fed funds and fhlb advances and an increase of $ 13.3 million , in other borrowed funds , which was primarily due to higher sweep repurchase balances . we did not have any securities sold under repurchase agreements at december 31 , 2018 . 51 stockholders ' equity stockholders ' equity increase d $ 96.6 million , or 13 % , to $ 820.9 million at december 31 , 2018 compared to $ 724.3 million at december 31 , 2017 . capital in excess of par value increase d $ 13.5 million , primarily due to stock-based compensation expense and the issuance of stock related to the exercise of stock options . retained earnings increase d $ 121.5 million , or 18 % , to $ 791.0 million during 2018 , primarily as a result of earnings from the year less dividends paid . these increases in stockholders ' equity were partially offset by $ 31.2 million related to share repurchases during 2018 , and $ 7.2 million from a decline in the fair value of our available-for-sale securities portfolio . asset/liability management our primary asset/liability management goal is to optimize long term net interest income opportunities within the constraints of managing interest rate risk , ensuring adequate liquidity and funding and maintaining a strong capital base . in general , interest rate risk is mitigated by closely matching the maturities or repricing periods of interest-sensitive assets and liabilities to ensure a favorable interest rate spread . we regularly review our interest-rate sensitivity , and use a variety of strategies as needed to adjust that sensitivity within acceptable tolerance ranges established by management and our board of directors . changing the relative proportions of fixed-rate and adjustable-rate assets and liabilities is one of our primary strategies to accomplish this objective . the matching of assets and liabilities may be analyzed using a number of methods including by examining the extent to which such assets and liabilities are โ interest-rate sensitive โ and by monitoring our interest-sensitivity gap . an interest-sensitivity gap is considered positive when the amount of interest-rate sensitive assets exceeds the amount of interest-rate sensitive liabilities repricing within a defined period , and is considered negative when the amount of interest-rate sensitive liabilities exceeds the amount of interest-rate sensitive assets repricing within a defined period . for additional information related to interest rate sensitivity , see item 7a . quantitative and qualitative disclosures about market risk . 52 the repricing and maturities of our interest-rate sensitive assets and interest-rate sensitive liabilities at december 31 , 2018 are shown in the following table : replace_table_token_16_th ( 1 ) includes commercial mortgage , construction , and residential mortgage loans ( 2 ) loan balances exclude nonaccruing loans , deferred fees and costs ( 3 ) assumes two-thirds of loans in process are variable and will reprice within one-year generally , during a period of rising interest rates , a positive gap would result in an increase in net interest income while a negative gap would adversely affect net interest income . conversely , during a period of falling rates , a positive gap would result in a decrease in net interest income while a negative gap would augment net interest income . however , the interest-sensitivity table does not provide a comprehensive representation of the impact of interest rate changes on net interest income . each category of assets or liabilities will not be affected equally or simultaneously by changes in the general level of interest rates . even assets and liabilities which contractually reprice within the rate period may reprice at the same price , at the same time or with the same frequency . it is also important to consider that the table represents a specific point in time . variations can occur as we adjust our interest sensitivity position throughout the year . to provide a more accurate position of our one-year gap , certain deposit classifications are based on the interest-rate sensitive attributes and not on the contractual repricing characteristics of these deposits . for the purpose of this analysis , we estimate , based on historical trends of our deposit accounts , that 75 % of our money market deposits , 50 % of our interest-bearing demand deposits and 50 % of our savings deposits are sensitive to interest rate changes . accordingly , these interest-sensitive portions are classified in the โ less than one year โ category with the remainder in the โ over five years โ category . deposit rates other than time deposit rates are variable . changes in deposit rates are generally subject to local market conditions and our discretion and are not indexed to any particular rate . 53 nonperforming assets nonperforming assets ( npas ) include nonaccruing loans , other real estate owned ( oreo ) and restructured loans . nonaccruing loans are those on which the accrual of interest has ceased . loans are placed on nonaccrual
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2,360 | although we believe that the assumptions on which these forward-looking statements are based are reasonable , any of those assumptions could prove to be inaccurate , and as a result , the forward-looking statements based on those assumptions also could be inaccurate . important assumptions include our ability to originate new loans and investments , certain margins and levels of profitability and the availability of additional capital . in light of these and other uncertainties , the inclusion of a projection or forward-looking statement in this annual report on form 10-k should not be regarded as a representation by us that our plans and objectives will be achieved . these risks and uncertainties include those described in โ risk factors โ in this annual report on form 10-k under part 1a . you should not place undue reliance on these forward-looking statements , which apply only as of the date of this annual report on form 10-k. overview we are an externally managed , closed-end , non-diversified management investment company that has elected to be regulated as a bdc under the 1940 act . we have elected to be treated , and intend to qualify annually thereafter , as a ric under subchapter m of the code for u.s. federal income tax purposes beginning with our taxable year ending december 31 , 2014. our shares are currently listed on the new york stock exchange ( the โ nyse โ ) under the symbol โ tpvg โ . our 6.75 % notes due 2020 ( the `` 2020 notes `` ) are currently listed on the nyse under the symbol โ tpvz โ . our investment objective is to maximize our total return to stockholders primarily in the form of current income and , to a lesser extent , capital appreciation by primarily lending with warrants to venture growth stage companies focused in technology , life sciences and other high growth industries which are backed by tpc 's select group of leading venture capital investors . we were formed to expand the venture growth stage business segment of tpc 's global investment platform and are the primary vehicle through which tpc focuses its venture growth stage business . tpc is widely recognized as a leading global financing provider devoted to serving venture capital-backed companies with creative , flexible and customized debt financing , equity capital and complementary services throughout their lifespan . tpc is located on sand hill road in silicon valley and has a primary focus in technology , life sciences and other high growth industries . we commenced investment activities on march 5 , 2014. in order to expedite the ramp-up of our investment activities and further our ability to meet our investment objectives , on march 5 , 2014 , we acquired our initial portfolio . the net consideration paid was approximately $ 121.7 million which reflected approximately $ 123.7 million of investments less approximately $ 2.0 million of prepaid interest and the fair value of unfunded commitments . we financed the acquisition of our initial portfolio by using a portion of a $ 200.0 million credit facility ( the โ bridge facility โ ) provided by deutsche bank ag , new york branch ( โ deutsche bank โ ) . on march 11 , 2014 , we completed our initial public offering and sold 9,840,665 shares of common stock ( including 1,250,000 shares of common stock through the underwriters ' exercise of their overallotment option and the concurrent private placement of 257,332 shares of common stock to our adviser 's senior team and other persons associated with tpc ) of our common stock at an offering price of $ 15.00 per share . we received $ 141.6 million of net proceeds in connection with the initial public offering and concurrent private placement , net of the portion of the underwriting sales load and offering costs we paid . we used a portion of these net proceeds to pay down all amounts outstanding under the bridge facility and terminated the bridge facility in conjunction with such repayment . in february 2014 , we entered into a credit agreement with deutsche bank acting as administrative agent and a lender , and keybank national association , everbank commercial lender finance , inc. , and alostar bank of commerce , as other lenders , which provided us with a $ 150.0 million commitment , subject to borrowing base 71 requirements ( โ credit facility โ ) . in august 2014 , we amended the credit facility to increase the total commitments by $ 50.0 million to $ 200.0 million in aggregate . effective as of a january 2016 amendment to the credit facility , borrowings under the credit facility bear interest at the sum of ( i ) the commercial paper rate for certain specified lenders and 30-day libor for other lenders or , if libor is unavailable , the higher of deutsche bank 's commercial lending rate or the federal funds rate plus 0.50 % plus ( ii ) a margin of 3.0 % during the credit facility 's revolving period . the revolving period under the amended credit facility expires in february 2018. on march 27 , 2015 , we priced a public offering of 6,500,000 shares of our common stock , raising approximately $ 93.7 million after offering costs . on april 29 , 2015 , we received an additional approximately $ 2.2 million through the issuance of 154,018 shares of our common stock as the result of the underwriters ' partial exercise of their overallotment option . on august 4 , 2015 , we completed a public offering of $ 50.0 million in aggregate principal amount of our 2020 notes and received net proceeds of $ 48.3 million after the payment of fees and offering costs . story_separator_special_tag the yield on our portfolio , excluding the impact of prepayments was approximately 15.4 % and 14.5 % , respectively , for the year ended december 31 , 2015 and for the period from march 5 , 2014 ( commencement of 80 operations ) to december 31 , 2014. the yields on our portfolio are dependent on fundings and the performance of our loans including prepayments . for the year ended december 31 , 2015 , we recognized approximately $ 2.2 million in other income consisting of approximately $ 1.8 million due to the termination or expiration of unfunded commitments and approximately $ 0.4 million from the realization of certain fees paid by companies and miscellaneous income . for the period from march 5 , 2014 ( commencement of operations ) to december 31 , 2014 , we recognized approximately $ 0.7 million in other income consisting of approximately $ 0.4 million due to the termination or expiration of unfunded commitments and approximately $ 0.3 million from the realization of certain fees paid by companies and miscellaneous income . for the year ended december 31 , 2015 , total operating expenses were approximately $ 20.1 million , comprising of approximately $ 9.5 million in base management and incentive fees , approximately $ 6.3 million in interest expense , approximately $ 1.5 million in administrative agreement expenses , and approximately $ 2.8 million in general and administrative expenses . for the period from march 5 , 2014 ( commencement of operations ) to december 31 , 2014 , total operating expenses were approximately $ 12.5 million , comprising of approximately $ 5.6 million in base management and incentive fees , approximately $ 3.9 million in interest expense , approximately $ 1.1 million in administrative agreement expenses , and approximately $ 1.9 million in general and administrative expenses . in determining the base management fee , our adviser had agreed to exclude the u.s. treasury bill assets acquired at the end of the applicable quarters in 2015 and 2014 in the calculation of the gross assets . we anticipate operating expenses will increase over time as our portfolio continues to grow . however , we anticipate operating expenses , as a percentage of totals assets and net assets , will decrease over time as our portfolio and capital base grow . we expect base management and income incentive fees will increase as we grow our asset base and our earnings . capital gains incentive fee will depend on realized and unrealized gains and losses . interest expense will increase as we utilize more of our credit facility , and we expect fees per the administrative agreement and general and administrative agreements will increase to meet the additional requirements associated with servicing a larger portfolio . there were $ 0.3 million of realized losses during the year ended december 31 , 2015 and no realized gains or losses for the period from march 5 , 2014 ( commencement of operations ) to december 31 , 2014. the table below summarizes our net change in unrealized gains ( losses ) on investments , which was primarily due to changes discount rates used to determine fair value . net change in unrealized gains ( losses ) in subsequent periods may be volatile as it depends on changes in the market , changes in the underlying performance of our portfolio companies and their respective industries , and many other factors . replace_table_token_16_th the tables below summarize the unrealized gains and losses in our investments in portfolio companies as of december 31 , 2015 and december 31 , 2014. replace_table_token_17_th 81 replace_table_token_18_th in addition to the unrealized gains and losses in our investments in portfolio companies summarized in the table above , there were unrealized losses of approximately $ 3 thousand , on u.s. treasury bills as of both december 31 , 2015 and december 31 , 2014. the table below summarizes our return on average total assets and return on average net asset value for the year ended december 31 , 2015 and for the period from march 5 , 2014 ( commencement of operations ) to december 31 , 2014. replace_table_token_19_th ( 1 ) percentage is presented on an annualized basis . the average net asset values and the average total assets are computed based on daily balances . critical accounting policies the preparation of our financial statements in accordance with gaap requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses . changes in the economic environment , financial markets and any other parameters used in determining such estimates could cause actual results to differ . in addition to the discussion below , we describe our critical accounting policies in the notes to our consolidated financial statements included elsewhere in this annual report on form 10-k. valuation of investments we measure the value of our investments at fair value in accordance with accounting standards codification topic 820 , fair value measurements and disclosure , or โ asc topic 820 , โ issued by the financial accounting standards board , or โ fasb . โ fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . the valuation committee of the board is responsible for assisting the board in valuing investments that are not publicly traded or for which current market values are not readily available . investments for which market quotations are readily available are valued using market quotations , which are generally obtained from independent pricing services , broker-dealers or market makers . with respect to portfolio investments for which market quotations 82 are not readily available , the board , with the assistance of the adviser and its senior investment team and independent valuation agents , is responsible for determining , in good faith , the fair value in accordance with the
| debt investments by financing product ( dollars in thousands ) fair value percentage of total debt investments growth capital loans $ 246,311 99.5 % equipment financings 1,298 0.5 total debt investments $ 247,609 100.0 % approximately 18.0 % and 20.5 % of the debt investments in our portfolio as of december 31 , 2015 and december 31 , 2014 , respectively , based on the aggregate fair value , consisted of growth capital loans where the borrower has a term loan facility , with or without an accompanying revolving loan , in priority to our senior lien . investment activity during the year ended december 31 , 2015 , we entered into fifteen new commitments with eight new customers , six existing customers and one previous customer totaling $ 213.8 million , funded seventeen debt investments for approximately $ 101.3 million in principal value , acquired warrants representing approximately $ 1.8 74 million of value and exercised warrants into equity with a cost basis of approximately $ 0.2 million in one company , and made two equity investments of approximately $ 0.7 million . during the period from march 5 , 2014 ( commencement of operations ) to december 31 , 2014 , we entered into fifteen new commitments with eleven new customers and four existing customers totaling $ 269.5 million , we funded 32 debt investments for approximately $ 159.4 million in principal balance , acquired warrants representing approximately $ 3.5 million of value , and made two equity investments totaling approximately $ 0.5 million . during the year ended december 31 , 2015 , we had prepayments from six of our portfolio companies for approximately $ 73.4 million in principal value . during the period from march 5 , 2014 ( commencement of operations ) to december 31 , 2014 , we had prepayments from two of our portfolio companies for approximately $ 27.7 million in principal value .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```debt investments by financing product ( dollars in thousands ) fair value percentage of total debt investments growth capital loans $ 246,311 99.5 % equipment financings 1,298 0.5 total debt investments $ 247,609 100.0 % approximately 18.0 % and 20.5 % of the debt investments in our portfolio as of december 31 , 2015 and december 31 , 2014 , respectively , based on the aggregate fair value , consisted of growth capital loans where the borrower has a term loan facility , with or without an accompanying revolving loan , in priority to our senior lien . investment activity during the year ended december 31 , 2015 , we entered into fifteen new commitments with eight new customers , six existing customers and one previous customer totaling $ 213.8 million , funded seventeen debt investments for approximately $ 101.3 million in principal value , acquired warrants representing approximately $ 1.8 74 million of value and exercised warrants into equity with a cost basis of approximately $ 0.2 million in one company , and made two equity investments of approximately $ 0.7 million . during the period from march 5 , 2014 ( commencement of operations ) to december 31 , 2014 , we entered into fifteen new commitments with eleven new customers and four existing customers totaling $ 269.5 million , we funded 32 debt investments for approximately $ 159.4 million in principal balance , acquired warrants representing approximately $ 3.5 million of value , and made two equity investments totaling approximately $ 0.5 million . during the year ended december 31 , 2015 , we had prepayments from six of our portfolio companies for approximately $ 73.4 million in principal value . during the period from march 5 , 2014 ( commencement of operations ) to december 31 , 2014 , we had prepayments from two of our portfolio companies for approximately $ 27.7 million in principal value .
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Suspicious Activity Report : although we believe that the assumptions on which these forward-looking statements are based are reasonable , any of those assumptions could prove to be inaccurate , and as a result , the forward-looking statements based on those assumptions also could be inaccurate . important assumptions include our ability to originate new loans and investments , certain margins and levels of profitability and the availability of additional capital . in light of these and other uncertainties , the inclusion of a projection or forward-looking statement in this annual report on form 10-k should not be regarded as a representation by us that our plans and objectives will be achieved . these risks and uncertainties include those described in โ risk factors โ in this annual report on form 10-k under part 1a . you should not place undue reliance on these forward-looking statements , which apply only as of the date of this annual report on form 10-k. overview we are an externally managed , closed-end , non-diversified management investment company that has elected to be regulated as a bdc under the 1940 act . we have elected to be treated , and intend to qualify annually thereafter , as a ric under subchapter m of the code for u.s. federal income tax purposes beginning with our taxable year ending december 31 , 2014. our shares are currently listed on the new york stock exchange ( the โ nyse โ ) under the symbol โ tpvg โ . our 6.75 % notes due 2020 ( the `` 2020 notes `` ) are currently listed on the nyse under the symbol โ tpvz โ . our investment objective is to maximize our total return to stockholders primarily in the form of current income and , to a lesser extent , capital appreciation by primarily lending with warrants to venture growth stage companies focused in technology , life sciences and other high growth industries which are backed by tpc 's select group of leading venture capital investors . we were formed to expand the venture growth stage business segment of tpc 's global investment platform and are the primary vehicle through which tpc focuses its venture growth stage business . tpc is widely recognized as a leading global financing provider devoted to serving venture capital-backed companies with creative , flexible and customized debt financing , equity capital and complementary services throughout their lifespan . tpc is located on sand hill road in silicon valley and has a primary focus in technology , life sciences and other high growth industries . we commenced investment activities on march 5 , 2014. in order to expedite the ramp-up of our investment activities and further our ability to meet our investment objectives , on march 5 , 2014 , we acquired our initial portfolio . the net consideration paid was approximately $ 121.7 million which reflected approximately $ 123.7 million of investments less approximately $ 2.0 million of prepaid interest and the fair value of unfunded commitments . we financed the acquisition of our initial portfolio by using a portion of a $ 200.0 million credit facility ( the โ bridge facility โ ) provided by deutsche bank ag , new york branch ( โ deutsche bank โ ) . on march 11 , 2014 , we completed our initial public offering and sold 9,840,665 shares of common stock ( including 1,250,000 shares of common stock through the underwriters ' exercise of their overallotment option and the concurrent private placement of 257,332 shares of common stock to our adviser 's senior team and other persons associated with tpc ) of our common stock at an offering price of $ 15.00 per share . we received $ 141.6 million of net proceeds in connection with the initial public offering and concurrent private placement , net of the portion of the underwriting sales load and offering costs we paid . we used a portion of these net proceeds to pay down all amounts outstanding under the bridge facility and terminated the bridge facility in conjunction with such repayment . in february 2014 , we entered into a credit agreement with deutsche bank acting as administrative agent and a lender , and keybank national association , everbank commercial lender finance , inc. , and alostar bank of commerce , as other lenders , which provided us with a $ 150.0 million commitment , subject to borrowing base 71 requirements ( โ credit facility โ ) . in august 2014 , we amended the credit facility to increase the total commitments by $ 50.0 million to $ 200.0 million in aggregate . effective as of a january 2016 amendment to the credit facility , borrowings under the credit facility bear interest at the sum of ( i ) the commercial paper rate for certain specified lenders and 30-day libor for other lenders or , if libor is unavailable , the higher of deutsche bank 's commercial lending rate or the federal funds rate plus 0.50 % plus ( ii ) a margin of 3.0 % during the credit facility 's revolving period . the revolving period under the amended credit facility expires in february 2018. on march 27 , 2015 , we priced a public offering of 6,500,000 shares of our common stock , raising approximately $ 93.7 million after offering costs . on april 29 , 2015 , we received an additional approximately $ 2.2 million through the issuance of 154,018 shares of our common stock as the result of the underwriters ' partial exercise of their overallotment option . on august 4 , 2015 , we completed a public offering of $ 50.0 million in aggregate principal amount of our 2020 notes and received net proceeds of $ 48.3 million after the payment of fees and offering costs . story_separator_special_tag the yield on our portfolio , excluding the impact of prepayments was approximately 15.4 % and 14.5 % , respectively , for the year ended december 31 , 2015 and for the period from march 5 , 2014 ( commencement of 80 operations ) to december 31 , 2014. the yields on our portfolio are dependent on fundings and the performance of our loans including prepayments . for the year ended december 31 , 2015 , we recognized approximately $ 2.2 million in other income consisting of approximately $ 1.8 million due to the termination or expiration of unfunded commitments and approximately $ 0.4 million from the realization of certain fees paid by companies and miscellaneous income . for the period from march 5 , 2014 ( commencement of operations ) to december 31 , 2014 , we recognized approximately $ 0.7 million in other income consisting of approximately $ 0.4 million due to the termination or expiration of unfunded commitments and approximately $ 0.3 million from the realization of certain fees paid by companies and miscellaneous income . for the year ended december 31 , 2015 , total operating expenses were approximately $ 20.1 million , comprising of approximately $ 9.5 million in base management and incentive fees , approximately $ 6.3 million in interest expense , approximately $ 1.5 million in administrative agreement expenses , and approximately $ 2.8 million in general and administrative expenses . for the period from march 5 , 2014 ( commencement of operations ) to december 31 , 2014 , total operating expenses were approximately $ 12.5 million , comprising of approximately $ 5.6 million in base management and incentive fees , approximately $ 3.9 million in interest expense , approximately $ 1.1 million in administrative agreement expenses , and approximately $ 1.9 million in general and administrative expenses . in determining the base management fee , our adviser had agreed to exclude the u.s. treasury bill assets acquired at the end of the applicable quarters in 2015 and 2014 in the calculation of the gross assets . we anticipate operating expenses will increase over time as our portfolio continues to grow . however , we anticipate operating expenses , as a percentage of totals assets and net assets , will decrease over time as our portfolio and capital base grow . we expect base management and income incentive fees will increase as we grow our asset base and our earnings . capital gains incentive fee will depend on realized and unrealized gains and losses . interest expense will increase as we utilize more of our credit facility , and we expect fees per the administrative agreement and general and administrative agreements will increase to meet the additional requirements associated with servicing a larger portfolio . there were $ 0.3 million of realized losses during the year ended december 31 , 2015 and no realized gains or losses for the period from march 5 , 2014 ( commencement of operations ) to december 31 , 2014. the table below summarizes our net change in unrealized gains ( losses ) on investments , which was primarily due to changes discount rates used to determine fair value . net change in unrealized gains ( losses ) in subsequent periods may be volatile as it depends on changes in the market , changes in the underlying performance of our portfolio companies and their respective industries , and many other factors . replace_table_token_16_th the tables below summarize the unrealized gains and losses in our investments in portfolio companies as of december 31 , 2015 and december 31 , 2014. replace_table_token_17_th 81 replace_table_token_18_th in addition to the unrealized gains and losses in our investments in portfolio companies summarized in the table above , there were unrealized losses of approximately $ 3 thousand , on u.s. treasury bills as of both december 31 , 2015 and december 31 , 2014. the table below summarizes our return on average total assets and return on average net asset value for the year ended december 31 , 2015 and for the period from march 5 , 2014 ( commencement of operations ) to december 31 , 2014. replace_table_token_19_th ( 1 ) percentage is presented on an annualized basis . the average net asset values and the average total assets are computed based on daily balances . critical accounting policies the preparation of our financial statements in accordance with gaap requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses . changes in the economic environment , financial markets and any other parameters used in determining such estimates could cause actual results to differ . in addition to the discussion below , we describe our critical accounting policies in the notes to our consolidated financial statements included elsewhere in this annual report on form 10-k. valuation of investments we measure the value of our investments at fair value in accordance with accounting standards codification topic 820 , fair value measurements and disclosure , or โ asc topic 820 , โ issued by the financial accounting standards board , or โ fasb . โ fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . the valuation committee of the board is responsible for assisting the board in valuing investments that are not publicly traded or for which current market values are not readily available . investments for which market quotations are readily available are valued using market quotations , which are generally obtained from independent pricing services , broker-dealers or market makers . with respect to portfolio investments for which market quotations 82 are not readily available , the board , with the assistance of the adviser and its senior investment team and independent valuation agents , is responsible for determining , in good faith , the fair value in accordance with the
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2,361 | as adjusted , non-gaap diluted net income and non-gaap diluted earnings per share were $ 44.7 million and $ 0.63 , respectively , for the year ended december 31 , 2017 , and $ 31.4 million and $ 0.46 , respectively , for the year ended december 31 , 2016 , $ 34.5 million and $ 0.51 , respectively , for the year ended december 31 , 2015 . gaap and non-gaap net income for diluted earnings per share generally assumes all operating company membership units are converted into company stock at the beginning of the reporting period , and the resulting change to our gaap and non-gaap net income associated with our increased interest in the operating company is taxed at our historical effective tax rate , exclusive of the adjustments related to our tax receivable agreement and the associated liability to selling and converting shareholders , the adjustments related to the non-recurring charges recognized in operating expenses , and other adjustments as noted above . our effective tax rate , exclusive of these adjustments , was 36.7 % for the year ended december 31 , 2017 and approximately 36.8 % and 37.1 % for the years ended december 31 , 2016 and 2015 , respectively . see โ operating results โ income tax expense/ ( benefit ) โ below . 27 a reconciliation of the non-gaap measures to the most comparable gaap measures is included below : replace_table_token_6_th 1 reflects the net impact of a change in the calculation of historical 754 step-ups and related deferred tax asset and corresponding liability to selling and converting shareholders recognized during the year-ended december 31 , 2017 as noted in the income tax expense/ ( benefit ) discussion below . revenue we generate revenue primarily from management fees and performance fees , which we collectively refer to as our advisory fees , by managing assets on behalf of our separately managed and sub-advised accounts , as well as our pzena funds . our advisory fee income is primarily based on our aum , as discussed below , and is recognized over the period in which investment management services are provided . following the preferred method identified in the revenue recognition topic of the financial accounting standards board accounting standards codification ( โ fasb asc โ ) , income from performance fees is recorded at the conclusion of the contractual performance period , when all contingencies are resolved . our advisory fees are primarily driven by the level of our aum . our aum increases or decreases with the net inflows or outflows of funds into our various investment strategies and with the investment performance thereof . in order to increase our aum and expand our business , we must develop and market investment strategies that suit the investment needs of our target clients , and provide attractive returns over the long-term . the value and composition of our aum , and our ability to continue 28 to attract clients will depend on a variety of factors as described in โ item 1 โ risk factors โ risks related to our business โ our primary source of revenue is derived from management fees , which are directly tied to our assets under management . fluctuations in aum therefore will directly impact our revenue . `` for our separately managed accounts , we are paid management fees according to a schedule , which varies by investment strategy . the substantial majority of these accounts pay us management fees pursuant to a schedule in which the rate we earn on the aum declines as the amount of aum increases . pursuant to our sub-investment advisory agreements with our clients and advisory agreements with pzena-branded funds , we are generally paid a management fee according to a schedule in which the rate we earn on the aum declines as the amount of aum increases . certain of these funds pay us fixed-rate management fees . due to the substantially larger account size of certain of these sub-advised accounts , the average advisory fees we earn on them , as a percentage of aum , are lower than the advisory fees we earn on our separately managed accounts . advisory fees we earn on separately managed accounts are generally based on the value of aum at a specific date on a quarterly basis . certain of our separately managed accounts , and all of our sub-advised accounts , are calculated based on the average of the monthly or daily market value . advisory fees are also generally adjusted for any cash flows into or out of a portfolio , where the cash flow represents greater than 10 % of the value of the portfolio . while a specific group of accounts may use the same fee rate , the calculation methodology may differ as described above . certain of our clients pay us performance fees according to the performance of their accounts relative to certain agreed-upon benchmarks , which results in a lower base fee , but allows for us to earn higher fees if the relevant investment strategy outperforms the agreed-upon benchmark . some performance-based fee arrangements include high-water mark provisions , which generally provide that if a client account underperforms relative to its performance target , it must gain back such underperformance before we can collect future performance-based fees . fulcrum fee arrangements related to one client relationship require a reduction in the base fee , or allow for a performance fee if the relevant investment strategy underperforms or outperforms , respectively , the agreed-upon benchmark . story_separator_special_tag assets in sub-advised accounts increased $ 2.2 billion , or 15.6 % , from $ 14.1 billion at december 31 , 2015 , due to $ 2.6 billion in gross inflows and $ 2.5 billion in market appreciation , partially offset by $ 2.9 billion in gross outflows . assets in pzena funds increased by $ 0.3 billion , or 33.3 % , from $ 0.9 billion at december 31 , 2015 as a result of $ 0.3 billion in gross inflows and $ 0.2 billion in market appreciation , partially offset by $ 0.2 billion in gross outflows . at december 31 , 2015 , we managed $ 11.0 billion in separately managed accounts , $ 14.1 billion in sub-advised accounts , and $ 0.9 billion in pzena funds , for a total of $ 26.0 billion in assets . for the year ended december 31 , 2015 , we experienced total gross outflows of $ 4.7 billion and market depreciation of $ 1.4 billion , which were partially offset by total gross inflows of $ 4.4 billion . assets in separately managed accounts decreased by $ 0.7 billion , or 6.0 % , from $ 11.7 billion at december 31 , 2014 due to $ 2.4 billion in gross outflows and $ 0.6 billion in market depreciation , partially offset by $ 2.3 billion in gross inflows . assets in sub-advised accounts decreased $ 0.9 billion , or 6.0 % , from $ 15.0 billion at december 31 , 2014 , due to $ 2.1 billion in gross outflows and $ 0.7 billion in market depreciation , partially offset by $ 1.9 billion in gross inflows . assets in pzena funds decreased by $ 0.1 billion , or 10.0 % , from $ 1.0 billion at december 31 , 2014 , as a result of $ 0.2 billion in gross outflows and $ 0.1 billion in market depreciation , partially offset by $ 0.2 billion in gross inflows . revenue our revenue from advisory fees earned on our separately managed accounts , sub-advised accounts and pzena funds for the three years ended december 31 , 2017 is described below : replace_table_token_12_th year ended december 31 , 2017 versus december 31 , 2016 our total revenue increased $ 33.0 million , or 30.4 % , to $ 141.3 million for the year ended december 31 , 2017 from $ 108.3 million for the year ended december 31 , 2016 . this change was driven by an increase in average assets during 2017 , as well as an increase in performance fees recognized during 2017. we recognized $ 3.2 million in performance fees during 2017 as compared to $ 0.2 million in performance fees recognized in 2016. in addition , we recognized a $ 1.0 million reduction in base fees related to fulcrum fee arrangements for the year ended december 31 , 2016. for the year ended december 31 , 2017 , we did not recognize a reduction in base fees related to fulcrum fee arrangements . average aum increased 26.6 % to $ 33.8 billion as of december 31 , 2017 from $ 26.7 billion as of december 31 , 2016 . our weighted average fee rates were 0.418 % and 0.406 % for the years ended december 31 , 2017 and 2016 , respectively . average assets in separately managed accounts increased 24.5 % to $ 13.7 billion for the year ended december 31 , 2017 , from $ 11.0 billion for the year ended december 31 , 2016 , and had weighted average fees of 0.556 % and 0.555 % for the years ended december 31 , 2017 and 2016 , respectively . average assets in sub-advised accounts increased 27.4 % to $ 18.6 billion for the year ended december 31 , 2017 , from $ 14.6 billion for the year ended december 31 , 2016 , and had weighted average fees of 0.295 % and 0.273 % for the years ended december 31 , 2017 and 2016 , respectively . the increase in weighted average fees in sub-advised accounts was due primarily to a increase in performance fees recognized in 2017 and the reduction of base fees related to the fulcrum fee arrangements of certain accounts related to one client relationship recognized in 2016. a reduction in 36 base fees was not recognized during 2017. average assets in pzena funds increased 50.0 % to $ 1.5 billion for the year ended december 31 , 2017 , from $ 1.0 billion for the year ended december 31 , 2016 , and had weighted average fees of 0.679 % and 0.687 % for the years ended december 31 , 2017 and 2016 , respectively . year ended december 31 , 2016 versus december 31 , 2015 our total revenue decreased $ 8.3 million , or 7.1 % , to $ 108.3 million for the year ended december 31 , 2016 , from $ 116.6 million for the year ended december 31 , 2015 . this change was driven by a decrease in performance fees recognized during 2016 , a decrease in average assets , as well as a reduction in base fees associated with fulcrum fee arrangements . we recognized $ 0.2 million in performance fees during 2016 as compared to $ 4.5 million in performance fees recognized in 2015. we recognized a $ 1.0 million reduction in base fees related to fulcrum fee arrangements for the year ended december 31 , 2016. for the year ended december 31 , 2015 , we did not recognize a reduction in base fees related to fulcrum fee arrangements . average aum decreased 2.6 % to $ 26.7 billion as of december 31 , 2016 from $ 27.4 billion as of december 31 , 2015. our weighted average fee rates were 0.406 % and 0.426 % for the years ended december 31 , 2016 and 2015 , respectively . average assets in separately managed accounts decreased 6.0 % , to $
| cash flows year ended december 31 , 2017 versus december 31 , 2016 cash increased $ 19.9 million to $ 63.4 million in 2017 compared to $ 43.5 million in 2016 . net cash provided by operating activities increased $ 12.7 million in 2017 to $ 67.7 million from $ 58.6 million in 2016 . the increase primarily reflects an increase in net income , changes in the levels of non-cash compensation , equity in the earnings of affiliates , net realized and unrealized gains from investments , as well as changes in operating assets and liabilities and working capital . net cash provided by investing activities was $ 0.5 million in 2017 compared to $ 0.2 million in 2016 . the $ 0.3 million increase was primarily due to a $ 1.1 million increase in proceeds from net sales of investments , partially offset by a $ 0.5 million increase in payments to related parties related primarily to loans made to employees . net cash used in financing activities decreased $ 2.4 million in 2017 to $ 48.0 million from $ 50.4 million in 2016 . this decrease is primarily due to a $ 1.6 million decrease in the repurchase and retirement of shares of class a common stock and class b units during 2017 and a $ 2.0 million decrease in net distributions from non-controlling interests , partially offset by a $ 0.9 million decrease in cash provided by option exercises . year ended december 31 , 2016 versus december 31 , 2015 cash increased $ 8.1 million to $ 43.5 million in 2016 compared to $ 35.4 million in 2015 . net cash provided by operating activities increased $ 1.2 million in 2016 to $ 58.6 million from $ 57.4 million in 2015 . the increase primarily reflects a change in the timing of year-end bonus payments to january of the subsequent year as well as an increase in net income driven by taxes , changes in the liability to selling and converting shareholders , and gains/ losses and other investment income .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows year ended december 31 , 2017 versus december 31 , 2016 cash increased $ 19.9 million to $ 63.4 million in 2017 compared to $ 43.5 million in 2016 . net cash provided by operating activities increased $ 12.7 million in 2017 to $ 67.7 million from $ 58.6 million in 2016 . the increase primarily reflects an increase in net income , changes in the levels of non-cash compensation , equity in the earnings of affiliates , net realized and unrealized gains from investments , as well as changes in operating assets and liabilities and working capital . net cash provided by investing activities was $ 0.5 million in 2017 compared to $ 0.2 million in 2016 . the $ 0.3 million increase was primarily due to a $ 1.1 million increase in proceeds from net sales of investments , partially offset by a $ 0.5 million increase in payments to related parties related primarily to loans made to employees . net cash used in financing activities decreased $ 2.4 million in 2017 to $ 48.0 million from $ 50.4 million in 2016 . this decrease is primarily due to a $ 1.6 million decrease in the repurchase and retirement of shares of class a common stock and class b units during 2017 and a $ 2.0 million decrease in net distributions from non-controlling interests , partially offset by a $ 0.9 million decrease in cash provided by option exercises . year ended december 31 , 2016 versus december 31 , 2015 cash increased $ 8.1 million to $ 43.5 million in 2016 compared to $ 35.4 million in 2015 . net cash provided by operating activities increased $ 1.2 million in 2016 to $ 58.6 million from $ 57.4 million in 2015 . the increase primarily reflects a change in the timing of year-end bonus payments to january of the subsequent year as well as an increase in net income driven by taxes , changes in the liability to selling and converting shareholders , and gains/ losses and other investment income .
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Suspicious Activity Report : as adjusted , non-gaap diluted net income and non-gaap diluted earnings per share were $ 44.7 million and $ 0.63 , respectively , for the year ended december 31 , 2017 , and $ 31.4 million and $ 0.46 , respectively , for the year ended december 31 , 2016 , $ 34.5 million and $ 0.51 , respectively , for the year ended december 31 , 2015 . gaap and non-gaap net income for diluted earnings per share generally assumes all operating company membership units are converted into company stock at the beginning of the reporting period , and the resulting change to our gaap and non-gaap net income associated with our increased interest in the operating company is taxed at our historical effective tax rate , exclusive of the adjustments related to our tax receivable agreement and the associated liability to selling and converting shareholders , the adjustments related to the non-recurring charges recognized in operating expenses , and other adjustments as noted above . our effective tax rate , exclusive of these adjustments , was 36.7 % for the year ended december 31 , 2017 and approximately 36.8 % and 37.1 % for the years ended december 31 , 2016 and 2015 , respectively . see โ operating results โ income tax expense/ ( benefit ) โ below . 27 a reconciliation of the non-gaap measures to the most comparable gaap measures is included below : replace_table_token_6_th 1 reflects the net impact of a change in the calculation of historical 754 step-ups and related deferred tax asset and corresponding liability to selling and converting shareholders recognized during the year-ended december 31 , 2017 as noted in the income tax expense/ ( benefit ) discussion below . revenue we generate revenue primarily from management fees and performance fees , which we collectively refer to as our advisory fees , by managing assets on behalf of our separately managed and sub-advised accounts , as well as our pzena funds . our advisory fee income is primarily based on our aum , as discussed below , and is recognized over the period in which investment management services are provided . following the preferred method identified in the revenue recognition topic of the financial accounting standards board accounting standards codification ( โ fasb asc โ ) , income from performance fees is recorded at the conclusion of the contractual performance period , when all contingencies are resolved . our advisory fees are primarily driven by the level of our aum . our aum increases or decreases with the net inflows or outflows of funds into our various investment strategies and with the investment performance thereof . in order to increase our aum and expand our business , we must develop and market investment strategies that suit the investment needs of our target clients , and provide attractive returns over the long-term . the value and composition of our aum , and our ability to continue 28 to attract clients will depend on a variety of factors as described in โ item 1 โ risk factors โ risks related to our business โ our primary source of revenue is derived from management fees , which are directly tied to our assets under management . fluctuations in aum therefore will directly impact our revenue . `` for our separately managed accounts , we are paid management fees according to a schedule , which varies by investment strategy . the substantial majority of these accounts pay us management fees pursuant to a schedule in which the rate we earn on the aum declines as the amount of aum increases . pursuant to our sub-investment advisory agreements with our clients and advisory agreements with pzena-branded funds , we are generally paid a management fee according to a schedule in which the rate we earn on the aum declines as the amount of aum increases . certain of these funds pay us fixed-rate management fees . due to the substantially larger account size of certain of these sub-advised accounts , the average advisory fees we earn on them , as a percentage of aum , are lower than the advisory fees we earn on our separately managed accounts . advisory fees we earn on separately managed accounts are generally based on the value of aum at a specific date on a quarterly basis . certain of our separately managed accounts , and all of our sub-advised accounts , are calculated based on the average of the monthly or daily market value . advisory fees are also generally adjusted for any cash flows into or out of a portfolio , where the cash flow represents greater than 10 % of the value of the portfolio . while a specific group of accounts may use the same fee rate , the calculation methodology may differ as described above . certain of our clients pay us performance fees according to the performance of their accounts relative to certain agreed-upon benchmarks , which results in a lower base fee , but allows for us to earn higher fees if the relevant investment strategy outperforms the agreed-upon benchmark . some performance-based fee arrangements include high-water mark provisions , which generally provide that if a client account underperforms relative to its performance target , it must gain back such underperformance before we can collect future performance-based fees . fulcrum fee arrangements related to one client relationship require a reduction in the base fee , or allow for a performance fee if the relevant investment strategy underperforms or outperforms , respectively , the agreed-upon benchmark . story_separator_special_tag assets in sub-advised accounts increased $ 2.2 billion , or 15.6 % , from $ 14.1 billion at december 31 , 2015 , due to $ 2.6 billion in gross inflows and $ 2.5 billion in market appreciation , partially offset by $ 2.9 billion in gross outflows . assets in pzena funds increased by $ 0.3 billion , or 33.3 % , from $ 0.9 billion at december 31 , 2015 as a result of $ 0.3 billion in gross inflows and $ 0.2 billion in market appreciation , partially offset by $ 0.2 billion in gross outflows . at december 31 , 2015 , we managed $ 11.0 billion in separately managed accounts , $ 14.1 billion in sub-advised accounts , and $ 0.9 billion in pzena funds , for a total of $ 26.0 billion in assets . for the year ended december 31 , 2015 , we experienced total gross outflows of $ 4.7 billion and market depreciation of $ 1.4 billion , which were partially offset by total gross inflows of $ 4.4 billion . assets in separately managed accounts decreased by $ 0.7 billion , or 6.0 % , from $ 11.7 billion at december 31 , 2014 due to $ 2.4 billion in gross outflows and $ 0.6 billion in market depreciation , partially offset by $ 2.3 billion in gross inflows . assets in sub-advised accounts decreased $ 0.9 billion , or 6.0 % , from $ 15.0 billion at december 31 , 2014 , due to $ 2.1 billion in gross outflows and $ 0.7 billion in market depreciation , partially offset by $ 1.9 billion in gross inflows . assets in pzena funds decreased by $ 0.1 billion , or 10.0 % , from $ 1.0 billion at december 31 , 2014 , as a result of $ 0.2 billion in gross outflows and $ 0.1 billion in market depreciation , partially offset by $ 0.2 billion in gross inflows . revenue our revenue from advisory fees earned on our separately managed accounts , sub-advised accounts and pzena funds for the three years ended december 31 , 2017 is described below : replace_table_token_12_th year ended december 31 , 2017 versus december 31 , 2016 our total revenue increased $ 33.0 million , or 30.4 % , to $ 141.3 million for the year ended december 31 , 2017 from $ 108.3 million for the year ended december 31 , 2016 . this change was driven by an increase in average assets during 2017 , as well as an increase in performance fees recognized during 2017. we recognized $ 3.2 million in performance fees during 2017 as compared to $ 0.2 million in performance fees recognized in 2016. in addition , we recognized a $ 1.0 million reduction in base fees related to fulcrum fee arrangements for the year ended december 31 , 2016. for the year ended december 31 , 2017 , we did not recognize a reduction in base fees related to fulcrum fee arrangements . average aum increased 26.6 % to $ 33.8 billion as of december 31 , 2017 from $ 26.7 billion as of december 31 , 2016 . our weighted average fee rates were 0.418 % and 0.406 % for the years ended december 31 , 2017 and 2016 , respectively . average assets in separately managed accounts increased 24.5 % to $ 13.7 billion for the year ended december 31 , 2017 , from $ 11.0 billion for the year ended december 31 , 2016 , and had weighted average fees of 0.556 % and 0.555 % for the years ended december 31 , 2017 and 2016 , respectively . average assets in sub-advised accounts increased 27.4 % to $ 18.6 billion for the year ended december 31 , 2017 , from $ 14.6 billion for the year ended december 31 , 2016 , and had weighted average fees of 0.295 % and 0.273 % for the years ended december 31 , 2017 and 2016 , respectively . the increase in weighted average fees in sub-advised accounts was due primarily to a increase in performance fees recognized in 2017 and the reduction of base fees related to the fulcrum fee arrangements of certain accounts related to one client relationship recognized in 2016. a reduction in 36 base fees was not recognized during 2017. average assets in pzena funds increased 50.0 % to $ 1.5 billion for the year ended december 31 , 2017 , from $ 1.0 billion for the year ended december 31 , 2016 , and had weighted average fees of 0.679 % and 0.687 % for the years ended december 31 , 2017 and 2016 , respectively . year ended december 31 , 2016 versus december 31 , 2015 our total revenue decreased $ 8.3 million , or 7.1 % , to $ 108.3 million for the year ended december 31 , 2016 , from $ 116.6 million for the year ended december 31 , 2015 . this change was driven by a decrease in performance fees recognized during 2016 , a decrease in average assets , as well as a reduction in base fees associated with fulcrum fee arrangements . we recognized $ 0.2 million in performance fees during 2016 as compared to $ 4.5 million in performance fees recognized in 2015. we recognized a $ 1.0 million reduction in base fees related to fulcrum fee arrangements for the year ended december 31 , 2016. for the year ended december 31 , 2015 , we did not recognize a reduction in base fees related to fulcrum fee arrangements . average aum decreased 2.6 % to $ 26.7 billion as of december 31 , 2016 from $ 27.4 billion as of december 31 , 2015. our weighted average fee rates were 0.406 % and 0.426 % for the years ended december 31 , 2016 and 2015 , respectively . average assets in separately managed accounts decreased 6.0 % , to $
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2,362 | 40 epay segment โ revenues in the epay segment , which represented approximately 29 % of total consolidated revenues for the year ended december 31 , 2018 , are primarily derived from commissions or processing fees received from mobile phone operators for the processing and distribution of prepaid mobile airtime and commissions earned from the distribution of other electronic content , vouchers , and physical gifts . the proportion of epay segment revenues earned from the distribution of prepaid mobile phone time as compared with other electronic products has decreased over time , and non-mobile content now produces approximately 62 % of epay segment revenues . other electronic content offered by this segment includes digital content such as music , games and software , as well as , other products including prepaid long distance calling card plans , prepaid internet plans , prepaid debit cards , gift cards , vouchers , transport payments , lottery payments , bill payment , and money transfer . money transfer segment โ revenues in the money transfer segment , which represented approximately 41 % of total consolidated revenues for the year ended december 31 , 2018 , are primarily derived from transaction fees , as well as the margin earned from purchasing foreign currency at wholesale exchange rates and selling the foreign currency to customers at retail exchange rates . we have a sending agent network in place comprised of agents , customer service representatives , company-owned stores , primarily in north america , europe and malaysia , and ria , and xe branded websites , along with a worldwide network of correspondent agents , consisting primarily of financial institutions in the transfer destination countries . sending and correspondent agents each earn fees for cash collection and distribution services , which are recognized as direct operating costs at the time of sale . the company offers a money transfer product called walmart-2-walmart money transfer service which allows customers to transfer money to and from walmart stores in the u.s. our ria business executes the transfers with walmart serving as both the sending agent and payout correspondent . ria earns a lower margin from these transactions than its traditional money transfers ; however , the arrangement has added a significant number of transactions to ria 's business . the agreement with walmart establishes ria as the only party through which walmart will sell u.s. domestic money transfers branded with walmart marks . the agreement is effective until april 2020. thereafter , it will automatically renew for subsequent one year terms unless either party provides notice to the contrary . the agreement imposes certain obligations on each party , the most significant being service level requirements by ria and money transfer compliance requirements by walmart . any violation of these requirements by ria could result in an obligation to indemnify walmart or termination of the contract by walmart . however , the agreement allows the parties to resolve disputes by mutual agreement without termination of the agreement . corporate services , eliminations and other โ in addition to operating in our principal operating segments described above , our โ corporate services , eliminations and other โ category includes non-operating activity , certain inter-segment eliminations and the cost of providing corporate and other administrative services to the operating segments , including most share-based compensation expense . these services are not directly identifiable with our reportable operating segments . opportunities and challenges our expansion plans and opportunities are focused on eight primary areas : increasing the number of atms and cash deposit terminals in our independent atm networks ; increasing transactions processed on our network of owned and operated atms and pos devices ; signing new outsourced atm and pos terminal management contracts ; expanding value added services and other products offered by our eft processing segment , including the sale of dcc , acquiring and other prepaid card services to banks and retailers ; expanding our epay processing network and portfolio of digital content ; expanding our money transfer services , cross-currency payments products and bill payment network ; expanding our cash management solutions and foreign currency risk management services ; and developing our credit and debit card outsourcing business . eft processing segment โ the continued expansion and development of our eft processing segment business will depend on various factors including , but not necessarily limited to , the following : the impact of competition by banks and other atm operators and service providers in our current target markets ; the demand for our atm outsourcing services in our current target markets ; our ability to develop products or services , including value added services , to drive increases in transactions and revenues ; 41 the expansion of our various business lines in markets where we operate and in new markets ; our entry into additional card acceptance and atm management agreements with banks ; our ability to obtain required licenses in markets we intend to enter or expand services ; our ability to enter into and renew atm network cash supply agreements with financial institutions ; the availability of financing for expansion ; our ability to efficiently install atms contracted under newly awarded outsourcing agreements ; our ability to renew existing contracts at profitable rates ; our ability to maintain pricing at current levels or mitigate price reductions in certain markets ; the impact of changes in rules imposed by international card organizations such as visa and mastercard on card transactions on atms , including reductions in atm interchange fees , restrictions on the ability to apply direct access fees , the ability to offer dcc transactions on atms , and increases in fees charged on dcc transactions ; the impact of changes in laws and regulations affecting the profitability of our services , including regulation of dcc transactions by the e.u . story_separator_special_tag the revenue growth from dcc , which earns higher revenues per transaction than other atm or card based services , and the u.s. dollar weakening against key foreign currencies was partly offset by the impact of the low margin atm transactions in india . direct operating costs eft processing segment direct operating costs were $ 318.9 million for 2017 , an increase of $ 94.1 million or 42 % as compared to 2016 . the increase in direct operating costs was primarily due to the increase in the number of atms under management , the impact of our acquisition of yourcash and the impact of the u.s. dollar weakening against key foreign currencies . gross profit gross profit was $ 315.7 million for 2017 compared to $ 239.5 million for 2016 . the increase in gross profit was primarily due to the growth in revenues from the increases in atms under management and dcc transactions processed . gross margin was 49.7 % and 51.6 % for 2017 and 2016 , respectively . the decrease in gross profits as a percentage of revenue was primarily due to increased operating costs due to the expansion of our atm network , which includes fixed costs for our independent atms , the yourcash transactions which earn lower margins per transaction than other atm or card-based services in europe , along with growth in the india market where we earn lower revenue per transaction and have experienced a cash shortage in the first part in 2017 due to the demonetization initiative in the region . salaries and benefits salaries and benefits increased $ 9.9 million or 19 % for 2017 compared to 2016 . the increase in salaries and benefits was primarily attributable to additional headcount to support an increase in the number of atms and pos devices under management and our acquisition of yourcash . as a percentage of revenues , these costs decreased to 9.7 % for 2017 from 11.2 % 48 for 2016 , primarily due to growth in revenues earned from dcc and other value added service transactions on our atms under management , which require minimal incremental support costs . selling , general and administrative selling , general and administrative expenses for 2017 were $ 33.2 million , an increase of $ 2.8 million or 9 % as compared to 2016 . the increase was primarily due to the impact of our acquisition of yourcash and additional support costs as a result of the increase in the number of atms under management . as a percentage of revenues , these expenses decreased to 5.2 % for 2017 from 6.5 % for 2016 . the decreases were primarily due to the growth in revenues from dcc and other value added service transactions on our atms under management , which require minimal support costs . acquired intangible assets impairment the company recorded a non-cash impairment charge of $ 2.3 million for 2017 related to certain customer relationships as a result of the closure of the pure commerce office in south korea . no impairment charges were recorded in 2016. depreciation and amortization depreciation and amortization expense increased $ 15.6 million for 2017 compared to 2016 . the increase was primarily attributable to the deployment of additional atms , including more expensive cash recycling atms , software assets , and the amortization of atms and intangible assets related to the acquisition of yourcash . as a percentage of revenues , depreciation and amortization expense was essentially flat at 8.8 % for 2017 and 8.6 % for 2016 . operating income eft processing segment operating income for 2017 was $ 162.9 million , an increase of $ 45.7 million or 39 % as compared to 2016 . operating income for 2017 increased primarily due to higher revenues from the additional number of atms under management , growth in revenues earned from dcc and other value added service transactions and the u.s. dollar weakening against key foreign currencies . operating margin was 25.7 % for 2017 compared to 25.2 % for 2016 . operating income per transaction increased to $ 0.07 for 2017 , from $ 0.06 for 2016 . operating margin and operating income per transaction increased slightly for 2017 when compared to 2016. this increase is primarily attributable to higher operating revenues , partially offset by lower margin atm transactions for yourcash and in india , and higher costs incurred to support the additional atms under management . 49 epay segment the following table summarizes the results of operations for our epay segment for the years ended december 31 , 2018 and 2017 : replace_table_token_10_th n/m โ not meaningful . revenues epay segment total revenues for 2018 were $ 743.8 million , an increase of $ 9.8 million or 1 % as compared to 2017 . the increase in total revenues was primarily due to an increase in the number of non-mobile transactions processed and the net impact of the u.s. dollar weakening against key foreign currencies . the increase in total revenues was partially offset by the asc 606 adjustment and a decrease in prepaid mobile transactions processed in the u.s. , the u.k. and australia due to competitive pressures on prepaid mobile carriers . foreign currency movements increased total revenues by approximately $ 13.8 million as compared to 2017 . revenues per transaction increased to $ 0.65 for 2018 from $ 0.62 for 2017 . the increase in revenues per transaction was primarily driven by the increase in the number of non-mobile transactions processed , for which we generally earn higher revenues per transaction than mobile transactions . direct operating costs epay segment direct operating costs were $ 564.3 million for 2018 , an increase of $ 0.2 million as compared to 2017 . direct operating costs in our epay segment include the commissions we pay to retail merchants for the distribution and sale of prepaid mobile airtime and other prepaid products , expenses incurred to operate pos terminals and the
| convertible debt โ on october 30 , 2014 , we completed the sale of $ 402.5 million of convertible senior notes due 2044 ( โ convertible notes โ ) . the convertible notes have an interest rate of 1.5 % per annum payable semi-annually in april and october , and are convertible into shares of euronet common stock at a conversion price of approximately $ 72.18 per share if certain conditions are met ( relating to the closing prices of euronet common stock exceeding certain thresholds for specified periods ) . holders of the convertible notes have the option to require us to purchase their notes at par on october 1 , 2020 , and have additional options to require us to purchase their notes at par on october 1 , 2024 , 2029 , 2034 , and 2039 , or upon a change in control of the company . in connection with the issuance of the convertible notes , we recorded $ 10.7 million in debt issuance costs , which are being amortized through october 1 , 2020 . $ 1.0 million of convertible notes were converted in december 2018 . 61 atm facility โ on may 11 , 2018 , we entered into a short-term credit facility in the amount of $ 300 million for the sole purpose of providing cash for our atm network during the tourism season . interest was charged on this financing on an annual basis at the overnight libor rate plus 1.75 % . the facility expired on november 30 , 2018. other debt obligations โ certain of our subsidiaries have available credit lines and overdraft facilities to generally supplement short-term working capital requirements , when necessary .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```convertible debt โ on october 30 , 2014 , we completed the sale of $ 402.5 million of convertible senior notes due 2044 ( โ convertible notes โ ) . the convertible notes have an interest rate of 1.5 % per annum payable semi-annually in april and october , and are convertible into shares of euronet common stock at a conversion price of approximately $ 72.18 per share if certain conditions are met ( relating to the closing prices of euronet common stock exceeding certain thresholds for specified periods ) . holders of the convertible notes have the option to require us to purchase their notes at par on october 1 , 2020 , and have additional options to require us to purchase their notes at par on october 1 , 2024 , 2029 , 2034 , and 2039 , or upon a change in control of the company . in connection with the issuance of the convertible notes , we recorded $ 10.7 million in debt issuance costs , which are being amortized through october 1 , 2020 . $ 1.0 million of convertible notes were converted in december 2018 . 61 atm facility โ on may 11 , 2018 , we entered into a short-term credit facility in the amount of $ 300 million for the sole purpose of providing cash for our atm network during the tourism season . interest was charged on this financing on an annual basis at the overnight libor rate plus 1.75 % . the facility expired on november 30 , 2018. other debt obligations โ certain of our subsidiaries have available credit lines and overdraft facilities to generally supplement short-term working capital requirements , when necessary .
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Suspicious Activity Report : 40 epay segment โ revenues in the epay segment , which represented approximately 29 % of total consolidated revenues for the year ended december 31 , 2018 , are primarily derived from commissions or processing fees received from mobile phone operators for the processing and distribution of prepaid mobile airtime and commissions earned from the distribution of other electronic content , vouchers , and physical gifts . the proportion of epay segment revenues earned from the distribution of prepaid mobile phone time as compared with other electronic products has decreased over time , and non-mobile content now produces approximately 62 % of epay segment revenues . other electronic content offered by this segment includes digital content such as music , games and software , as well as , other products including prepaid long distance calling card plans , prepaid internet plans , prepaid debit cards , gift cards , vouchers , transport payments , lottery payments , bill payment , and money transfer . money transfer segment โ revenues in the money transfer segment , which represented approximately 41 % of total consolidated revenues for the year ended december 31 , 2018 , are primarily derived from transaction fees , as well as the margin earned from purchasing foreign currency at wholesale exchange rates and selling the foreign currency to customers at retail exchange rates . we have a sending agent network in place comprised of agents , customer service representatives , company-owned stores , primarily in north america , europe and malaysia , and ria , and xe branded websites , along with a worldwide network of correspondent agents , consisting primarily of financial institutions in the transfer destination countries . sending and correspondent agents each earn fees for cash collection and distribution services , which are recognized as direct operating costs at the time of sale . the company offers a money transfer product called walmart-2-walmart money transfer service which allows customers to transfer money to and from walmart stores in the u.s. our ria business executes the transfers with walmart serving as both the sending agent and payout correspondent . ria earns a lower margin from these transactions than its traditional money transfers ; however , the arrangement has added a significant number of transactions to ria 's business . the agreement with walmart establishes ria as the only party through which walmart will sell u.s. domestic money transfers branded with walmart marks . the agreement is effective until april 2020. thereafter , it will automatically renew for subsequent one year terms unless either party provides notice to the contrary . the agreement imposes certain obligations on each party , the most significant being service level requirements by ria and money transfer compliance requirements by walmart . any violation of these requirements by ria could result in an obligation to indemnify walmart or termination of the contract by walmart . however , the agreement allows the parties to resolve disputes by mutual agreement without termination of the agreement . corporate services , eliminations and other โ in addition to operating in our principal operating segments described above , our โ corporate services , eliminations and other โ category includes non-operating activity , certain inter-segment eliminations and the cost of providing corporate and other administrative services to the operating segments , including most share-based compensation expense . these services are not directly identifiable with our reportable operating segments . opportunities and challenges our expansion plans and opportunities are focused on eight primary areas : increasing the number of atms and cash deposit terminals in our independent atm networks ; increasing transactions processed on our network of owned and operated atms and pos devices ; signing new outsourced atm and pos terminal management contracts ; expanding value added services and other products offered by our eft processing segment , including the sale of dcc , acquiring and other prepaid card services to banks and retailers ; expanding our epay processing network and portfolio of digital content ; expanding our money transfer services , cross-currency payments products and bill payment network ; expanding our cash management solutions and foreign currency risk management services ; and developing our credit and debit card outsourcing business . eft processing segment โ the continued expansion and development of our eft processing segment business will depend on various factors including , but not necessarily limited to , the following : the impact of competition by banks and other atm operators and service providers in our current target markets ; the demand for our atm outsourcing services in our current target markets ; our ability to develop products or services , including value added services , to drive increases in transactions and revenues ; 41 the expansion of our various business lines in markets where we operate and in new markets ; our entry into additional card acceptance and atm management agreements with banks ; our ability to obtain required licenses in markets we intend to enter or expand services ; our ability to enter into and renew atm network cash supply agreements with financial institutions ; the availability of financing for expansion ; our ability to efficiently install atms contracted under newly awarded outsourcing agreements ; our ability to renew existing contracts at profitable rates ; our ability to maintain pricing at current levels or mitigate price reductions in certain markets ; the impact of changes in rules imposed by international card organizations such as visa and mastercard on card transactions on atms , including reductions in atm interchange fees , restrictions on the ability to apply direct access fees , the ability to offer dcc transactions on atms , and increases in fees charged on dcc transactions ; the impact of changes in laws and regulations affecting the profitability of our services , including regulation of dcc transactions by the e.u . story_separator_special_tag the revenue growth from dcc , which earns higher revenues per transaction than other atm or card based services , and the u.s. dollar weakening against key foreign currencies was partly offset by the impact of the low margin atm transactions in india . direct operating costs eft processing segment direct operating costs were $ 318.9 million for 2017 , an increase of $ 94.1 million or 42 % as compared to 2016 . the increase in direct operating costs was primarily due to the increase in the number of atms under management , the impact of our acquisition of yourcash and the impact of the u.s. dollar weakening against key foreign currencies . gross profit gross profit was $ 315.7 million for 2017 compared to $ 239.5 million for 2016 . the increase in gross profit was primarily due to the growth in revenues from the increases in atms under management and dcc transactions processed . gross margin was 49.7 % and 51.6 % for 2017 and 2016 , respectively . the decrease in gross profits as a percentage of revenue was primarily due to increased operating costs due to the expansion of our atm network , which includes fixed costs for our independent atms , the yourcash transactions which earn lower margins per transaction than other atm or card-based services in europe , along with growth in the india market where we earn lower revenue per transaction and have experienced a cash shortage in the first part in 2017 due to the demonetization initiative in the region . salaries and benefits salaries and benefits increased $ 9.9 million or 19 % for 2017 compared to 2016 . the increase in salaries and benefits was primarily attributable to additional headcount to support an increase in the number of atms and pos devices under management and our acquisition of yourcash . as a percentage of revenues , these costs decreased to 9.7 % for 2017 from 11.2 % 48 for 2016 , primarily due to growth in revenues earned from dcc and other value added service transactions on our atms under management , which require minimal incremental support costs . selling , general and administrative selling , general and administrative expenses for 2017 were $ 33.2 million , an increase of $ 2.8 million or 9 % as compared to 2016 . the increase was primarily due to the impact of our acquisition of yourcash and additional support costs as a result of the increase in the number of atms under management . as a percentage of revenues , these expenses decreased to 5.2 % for 2017 from 6.5 % for 2016 . the decreases were primarily due to the growth in revenues from dcc and other value added service transactions on our atms under management , which require minimal support costs . acquired intangible assets impairment the company recorded a non-cash impairment charge of $ 2.3 million for 2017 related to certain customer relationships as a result of the closure of the pure commerce office in south korea . no impairment charges were recorded in 2016. depreciation and amortization depreciation and amortization expense increased $ 15.6 million for 2017 compared to 2016 . the increase was primarily attributable to the deployment of additional atms , including more expensive cash recycling atms , software assets , and the amortization of atms and intangible assets related to the acquisition of yourcash . as a percentage of revenues , depreciation and amortization expense was essentially flat at 8.8 % for 2017 and 8.6 % for 2016 . operating income eft processing segment operating income for 2017 was $ 162.9 million , an increase of $ 45.7 million or 39 % as compared to 2016 . operating income for 2017 increased primarily due to higher revenues from the additional number of atms under management , growth in revenues earned from dcc and other value added service transactions and the u.s. dollar weakening against key foreign currencies . operating margin was 25.7 % for 2017 compared to 25.2 % for 2016 . operating income per transaction increased to $ 0.07 for 2017 , from $ 0.06 for 2016 . operating margin and operating income per transaction increased slightly for 2017 when compared to 2016. this increase is primarily attributable to higher operating revenues , partially offset by lower margin atm transactions for yourcash and in india , and higher costs incurred to support the additional atms under management . 49 epay segment the following table summarizes the results of operations for our epay segment for the years ended december 31 , 2018 and 2017 : replace_table_token_10_th n/m โ not meaningful . revenues epay segment total revenues for 2018 were $ 743.8 million , an increase of $ 9.8 million or 1 % as compared to 2017 . the increase in total revenues was primarily due to an increase in the number of non-mobile transactions processed and the net impact of the u.s. dollar weakening against key foreign currencies . the increase in total revenues was partially offset by the asc 606 adjustment and a decrease in prepaid mobile transactions processed in the u.s. , the u.k. and australia due to competitive pressures on prepaid mobile carriers . foreign currency movements increased total revenues by approximately $ 13.8 million as compared to 2017 . revenues per transaction increased to $ 0.65 for 2018 from $ 0.62 for 2017 . the increase in revenues per transaction was primarily driven by the increase in the number of non-mobile transactions processed , for which we generally earn higher revenues per transaction than mobile transactions . direct operating costs epay segment direct operating costs were $ 564.3 million for 2018 , an increase of $ 0.2 million as compared to 2017 . direct operating costs in our epay segment include the commissions we pay to retail merchants for the distribution and sale of prepaid mobile airtime and other prepaid products , expenses incurred to operate pos terminals and the
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2,363 | we had 714 employees in the philippines as of december 28 , 2013. we believe that the cost advantages of our offshore operations provide us with the ability to grow our business in a cost-effective manner . acquisitions . from time to time , we may acquire certain businesses , websites , domain names , or other assets . in 2009 , we completed the acquisition of the assets of a small website and the related domain names which further expanded and enhanced our product offering and our ability to reach more customers . in the first quarter of 2010 , we completed two additional website and domain name asset acquisitions , which increased our net sales and internet traffic . in august 2010 , go fido , inc. , a wholly-owned subsidiary of ours , completed the purchase of all of the outstanding capital stock of automotive specialty accessories and parts , inc. and its wholly-owned subsidiary wag . wag 's midwest facility expanded our distribution network and the merchandise wag offers extended our go-to market product-lines into all terrain vehicles , recreational vehicles and motorcycles , and provided us with deep product knowledge into niche segments like jeep , volkswagen and trucks . this expansion of our product line increased our customer reach in the diy automobile and off-road accessories market . related to the wag acquisition , the company incurred acquisition and integration related costs of $ 7.4 million for the fiscal year 2011. currently , we do not intend to pursue any acquisition opportunities in the near future . our credit agreement with jpmorgan currently restricts our ability to enter into any acquisitions without prior permission from jpmorgan . to understand revenue generation through our network of e-commerce websites , we monitor several key business metrics , including the following : replace_table_token_4_th 1 unique visitors do not include traffic from media properties ( e.g . automd ) . 2 as we consolidate to a smaller number of websites , we changed the measurement source of our consolidated unique visitor data to a different third-party provider of that data in the first quarter of 2013. previously reported operating metrics data for fiscal year 2012 and 2011 were revised to conform to the current third-party provider 's data . unique visitors : a unique visitor to a particular website represents a user with a distinct ip address that visits that particular website . we define the total number of unique visitors in a given month as the sum of unique visitors to each of our websites during that month . we measure unique visitors to understand the volume of traffic to our websites and to track the effectiveness of our online marketing efforts . the number of unique visitors has historically varied based on a number of factors , including our marketing activities and seasonality . included in the unique visitors are mobile device based customers , who are becoming an increasing part of our business . shifting consumer behavior and technology enhancements indicates that customers are becoming more inclined to purchase auto parts through their mobile devices . user sophistication and technological advances have increased consumer expectations around the user experience on mobile devices , including speed of response , functionality , product availability , security , and ease of use . we believe enhancements to online solutions specifically catering to mobile based shopping can result in an increase in the number of orders and revenues . we believe an increase in unique visitors to our websites will result in an increase in the number of orders . we seek to increase the number of unique visitors to our websites by attracting repeat customers and improving search engine marketing and other internet marketing activities . during fiscal year 2013 , our unique visitors decreased by 21 % compared to the fiscal year 2012. we expect the total number of unique visitors in 2014 to marginally improve , as we continue to address the challenges we are experiencing from changes search engines have made to the formulas , or algorithms , that they use to optimize their search results , as described in further detail under ยยexecutive summaryย below . total number of orders : we monitor the total number of orders as an indicator of future revenue trends . during the fiscal year 2013 , the total number of orders was down by 20 % compared to the fiscal year 2012 due to the decrease in unique visitors combined with overall increased competition . we expect the total number of orders in 2014 to marginally improve . we recognize revenue associated with an order when the products have been delivered , consistent with our revenue recognition policy . average order value : average order value represents our net sales on a placed orders basis for a given period of time divided by the total number of orders recorded during the same period of time . during the fiscal year 2013 , our average order value decreased by 2 % compared to the fiscal year 2012. we expect this trend to continue in 2014 primarily due to increased 25 competition , as described in further detail under ย executive summary ย below . we seek to increase the average order value as a means of increasing net sales . average order values vary depending upon a number of factors , including the components of our product offering , the order volume in certain online sales channels , macro-economic conditions , and the competition online . revenue capture : revenue capture is the amount of actual dollars retained after taking into consideration returns , credit card declines and product fulfillment . during the fiscal year 2013 , our revenue capture marginally decreased by 0.6 % to 83.3 % compared to 83.9 % in fiscal year 2012. the decrease in revenue capture was due to an increase in credit card declines and product fulfillment issues in 2013 compared to 2012. story_separator_special_tag marketing expense consists of online advertising spend , internet commerce facilitator fees and other advertising costs , as well as payroll and related expenses associated with our marketing catalog , customer service and sales personnel . these costs are generally variable and are typically a function of net sales . marketing expense also includes depreciation and amortization expense and share-based compensation expense . general and administrative expense . general and administrative expense consists primarily of administrative payroll and related expenses , merchant processing fees , legal and professional fees and other administrative costs . general and administrative expense also includes depreciation and amortization expense and share-based compensation expense . fulfillment expense . fulfillment expense consists primarily of payroll and related costs associated with our warehouse employees and our purchasing group , facilities rent , building maintenance , depreciation and other costs associated with inventory management and our wholesale operations . fulfillment expense also includes share-based compensation expense . technology expense . technology expense consists primarily of payroll and related expenses of our information technology personnel , the cost of hosting our servers , communications expenses and internet connectivity costs , computer support and software development amortization expense . technology expense also includes share-based compensation expense . amortization of intangible assets . amortization of intangibles consists of the amortization expense associated with our definite-lived intangible assets . impairment loss . impairment loss is recorded as a result of impairment testing performed for goodwill and indefinite-lived intangible assets in accordance with asc 350 intangibles ย goodwill and other , and long-lived assets , including intangible assets subject to amortization , in accordance with asc 360 property , plant and equipment . other income , net . other income , net consists of miscellaneous income or expense such as gains/losses from disposition of assets , and interest income comprised primarily of interest income on investments . 29 interest expense . interest expense consists primarily of interest expense on our outstanding loan balance , deferred financing cost amortization and capital lease interest . segment data . the company operates in two reportable segments . the criteria the company uses to identify its operating segments are primarily the nature of the products the company sells and the consolidated operating results that are regularly reviewed by the company 's chief operating decision maker to assess performance and make operating decisions . certain long-lived assets are held in the philippines ( refer to ยnote 4 ย property and equipment , netย ) . in 2012 , we identified two reporting units , base usap , which is the core auto parts business , and automd , an online automotive repair source , in accordance with asc 280 segment reporting ( ยasc 280ย ) . automd recorded revenues of $ 0.3 million and $ 0.4 million for fiscal years 2013 and 2012 , respectively . automd incurred total expenses of $ 2.3 million and $ 2.4 million during fiscal years 2013 and 2012 , respectively , which are primarily related to depreciation and amortization expense of capitalized website and software development costs . automd recorded net losses of $ 2.0 million for both fiscal years 2013 and 2012 , respectively . total assets for automd were $ 2.1 million and $ 2.0 million as of december 28 , 2013 and december 29 , 2012 , respectively , which are primarily related to capitalized website and software development costs . prior to fiscal year 2012 , our reporting unit automd had been considered a part of our main reporting unit , base usap . there was no distinguishable business of automd and revenues , expenses and assets were insignificant to the overall business and hence not reported separately in accordance with the thresholds defined by asc 280. results of operations the following table sets forth selected statement of operations data for the periods indicated , expressed as a percentage of net sales : replace_table_token_7_th 30 fifty-two weeks ended december 28 , 2013 compared to the fifty-two weeks ended december 29 , 2012 net sales and gross margin replace_table_token_8_th net sales decreased $ 49.3 million , or 16.2 % , for fiscal year 2013 compared to fiscal year 2012. our net sales consisted of online sales , which included mobile based online sales , representing 90.0 % of the total for fiscal year 2013 ( compared to 91.8 % in fiscal year 2012 ) , and offline sales , representing 10.0 % of the total for fiscal year 2013 ( compared to 8.2 % in fiscal year 2012 ) . the net sales decrease was due to a decline of $ 49.7 million , or 17.8 % , in online sales , partially offset by a $ 0.5 million , or 2.0 % , increase in offline sales . included in the net sales decrease of 16.2 % in fiscal year 2013 , is a decrease in net sales channels , excluding websites we retired in 2013 , of 8.5 % . online sales decreased primarily due to a 21 % reduction in unique visitors , a 20 % reduction in total number of orders and a decline in average order value by 2 % . the overall decrease in unique visitors was due to a reduction in customer traffic as a result of changes search engines made to the algorithms that search engines use to optimize their search results . also , our revenues were negatively impacted by the increased competition as described in further detail under ยexecutive summaryย above . our offline sales , which consist of our kool-vueย and wholesale operations , continued to show growth . while net sales declined for fiscal year 2013 as compared to fiscal year 2012 , we have observed a slow-down in the decline in revenues between the first quarter of 2013 to the fourth quarter of 2013 , when compared to the respective quarters of 2012 , as described in further detail under ยexecutive summaryย above . gross profit decreased
| cash flows the following table summarizes the key cash flow metrics from our consolidated statements of cash flows for fiscal year 2013 , 2012 and 2011 , respectively ( in thousands ) : replace_table_token_29_th 39 operating activities cash provided by operating activities is primarily comprised of net loss , adjusted for non-cash activities such as depreciation and amortization expense , amortization of intangible assets , impairment losses and share-based compensation expense . these non-cash adjustments represent charges reflected in net loss and , therefore , to the extent that non-cash items increase or decrease our operating results , there will be no corresponding impact on our cash flows . net loss adjusted for non-cash adjustments to operating activities was $ 4.4 million ( adjusted for non-cash charges primarily consisting of impairment losses of $ 6.1 million and depreciation and amortization expense of $ 12.2 million ) for the period ended december 28 , 2013 compared to $ 8.2 million ( adjusted for non-cash charges primarily consisting of impairment losses of $ 26.4 million and depreciation and amortization expense of $ 15.2 million ) for the period ended december 29 , 2012. after excluding the effects of the non-cash charges , the primary changes in cash flows relating to operating activities resulted from changes in operating assets and liabilities . accounts receivable decreased to $ 5.0 million at december 28 , 2013 from $ 7.4 million at december 29 , 2012 , resulting in a decrease in operating assets and reflecting a cash inflow of $ 2.4 million for the fifty-two weeks ended december 28 , 2013. accounts receivable decreased primarily due to lower revenues . inventory decreased to $ 37.0 million at december 28 , 2013 from $ 42.7 million at december 29 , 2012 , resulting in a decrease in operating assets and reflecting a cash inflow of $ 5.7 million for the fifty-two weeks ended december 28 , 2013. if revenues were to continue to decline we would expect a decrease in our inventory levels . if revenues increase , we would expect inventory to increase .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the following table summarizes the key cash flow metrics from our consolidated statements of cash flows for fiscal year 2013 , 2012 and 2011 , respectively ( in thousands ) : replace_table_token_29_th 39 operating activities cash provided by operating activities is primarily comprised of net loss , adjusted for non-cash activities such as depreciation and amortization expense , amortization of intangible assets , impairment losses and share-based compensation expense . these non-cash adjustments represent charges reflected in net loss and , therefore , to the extent that non-cash items increase or decrease our operating results , there will be no corresponding impact on our cash flows . net loss adjusted for non-cash adjustments to operating activities was $ 4.4 million ( adjusted for non-cash charges primarily consisting of impairment losses of $ 6.1 million and depreciation and amortization expense of $ 12.2 million ) for the period ended december 28 , 2013 compared to $ 8.2 million ( adjusted for non-cash charges primarily consisting of impairment losses of $ 26.4 million and depreciation and amortization expense of $ 15.2 million ) for the period ended december 29 , 2012. after excluding the effects of the non-cash charges , the primary changes in cash flows relating to operating activities resulted from changes in operating assets and liabilities . accounts receivable decreased to $ 5.0 million at december 28 , 2013 from $ 7.4 million at december 29 , 2012 , resulting in a decrease in operating assets and reflecting a cash inflow of $ 2.4 million for the fifty-two weeks ended december 28 , 2013. accounts receivable decreased primarily due to lower revenues . inventory decreased to $ 37.0 million at december 28 , 2013 from $ 42.7 million at december 29 , 2012 , resulting in a decrease in operating assets and reflecting a cash inflow of $ 5.7 million for the fifty-two weeks ended december 28 , 2013. if revenues were to continue to decline we would expect a decrease in our inventory levels . if revenues increase , we would expect inventory to increase .
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Suspicious Activity Report : we had 714 employees in the philippines as of december 28 , 2013. we believe that the cost advantages of our offshore operations provide us with the ability to grow our business in a cost-effective manner . acquisitions . from time to time , we may acquire certain businesses , websites , domain names , or other assets . in 2009 , we completed the acquisition of the assets of a small website and the related domain names which further expanded and enhanced our product offering and our ability to reach more customers . in the first quarter of 2010 , we completed two additional website and domain name asset acquisitions , which increased our net sales and internet traffic . in august 2010 , go fido , inc. , a wholly-owned subsidiary of ours , completed the purchase of all of the outstanding capital stock of automotive specialty accessories and parts , inc. and its wholly-owned subsidiary wag . wag 's midwest facility expanded our distribution network and the merchandise wag offers extended our go-to market product-lines into all terrain vehicles , recreational vehicles and motorcycles , and provided us with deep product knowledge into niche segments like jeep , volkswagen and trucks . this expansion of our product line increased our customer reach in the diy automobile and off-road accessories market . related to the wag acquisition , the company incurred acquisition and integration related costs of $ 7.4 million for the fiscal year 2011. currently , we do not intend to pursue any acquisition opportunities in the near future . our credit agreement with jpmorgan currently restricts our ability to enter into any acquisitions without prior permission from jpmorgan . to understand revenue generation through our network of e-commerce websites , we monitor several key business metrics , including the following : replace_table_token_4_th 1 unique visitors do not include traffic from media properties ( e.g . automd ) . 2 as we consolidate to a smaller number of websites , we changed the measurement source of our consolidated unique visitor data to a different third-party provider of that data in the first quarter of 2013. previously reported operating metrics data for fiscal year 2012 and 2011 were revised to conform to the current third-party provider 's data . unique visitors : a unique visitor to a particular website represents a user with a distinct ip address that visits that particular website . we define the total number of unique visitors in a given month as the sum of unique visitors to each of our websites during that month . we measure unique visitors to understand the volume of traffic to our websites and to track the effectiveness of our online marketing efforts . the number of unique visitors has historically varied based on a number of factors , including our marketing activities and seasonality . included in the unique visitors are mobile device based customers , who are becoming an increasing part of our business . shifting consumer behavior and technology enhancements indicates that customers are becoming more inclined to purchase auto parts through their mobile devices . user sophistication and technological advances have increased consumer expectations around the user experience on mobile devices , including speed of response , functionality , product availability , security , and ease of use . we believe enhancements to online solutions specifically catering to mobile based shopping can result in an increase in the number of orders and revenues . we believe an increase in unique visitors to our websites will result in an increase in the number of orders . we seek to increase the number of unique visitors to our websites by attracting repeat customers and improving search engine marketing and other internet marketing activities . during fiscal year 2013 , our unique visitors decreased by 21 % compared to the fiscal year 2012. we expect the total number of unique visitors in 2014 to marginally improve , as we continue to address the challenges we are experiencing from changes search engines have made to the formulas , or algorithms , that they use to optimize their search results , as described in further detail under ยยexecutive summaryย below . total number of orders : we monitor the total number of orders as an indicator of future revenue trends . during the fiscal year 2013 , the total number of orders was down by 20 % compared to the fiscal year 2012 due to the decrease in unique visitors combined with overall increased competition . we expect the total number of orders in 2014 to marginally improve . we recognize revenue associated with an order when the products have been delivered , consistent with our revenue recognition policy . average order value : average order value represents our net sales on a placed orders basis for a given period of time divided by the total number of orders recorded during the same period of time . during the fiscal year 2013 , our average order value decreased by 2 % compared to the fiscal year 2012. we expect this trend to continue in 2014 primarily due to increased 25 competition , as described in further detail under ย executive summary ย below . we seek to increase the average order value as a means of increasing net sales . average order values vary depending upon a number of factors , including the components of our product offering , the order volume in certain online sales channels , macro-economic conditions , and the competition online . revenue capture : revenue capture is the amount of actual dollars retained after taking into consideration returns , credit card declines and product fulfillment . during the fiscal year 2013 , our revenue capture marginally decreased by 0.6 % to 83.3 % compared to 83.9 % in fiscal year 2012. the decrease in revenue capture was due to an increase in credit card declines and product fulfillment issues in 2013 compared to 2012. story_separator_special_tag marketing expense consists of online advertising spend , internet commerce facilitator fees and other advertising costs , as well as payroll and related expenses associated with our marketing catalog , customer service and sales personnel . these costs are generally variable and are typically a function of net sales . marketing expense also includes depreciation and amortization expense and share-based compensation expense . general and administrative expense . general and administrative expense consists primarily of administrative payroll and related expenses , merchant processing fees , legal and professional fees and other administrative costs . general and administrative expense also includes depreciation and amortization expense and share-based compensation expense . fulfillment expense . fulfillment expense consists primarily of payroll and related costs associated with our warehouse employees and our purchasing group , facilities rent , building maintenance , depreciation and other costs associated with inventory management and our wholesale operations . fulfillment expense also includes share-based compensation expense . technology expense . technology expense consists primarily of payroll and related expenses of our information technology personnel , the cost of hosting our servers , communications expenses and internet connectivity costs , computer support and software development amortization expense . technology expense also includes share-based compensation expense . amortization of intangible assets . amortization of intangibles consists of the amortization expense associated with our definite-lived intangible assets . impairment loss . impairment loss is recorded as a result of impairment testing performed for goodwill and indefinite-lived intangible assets in accordance with asc 350 intangibles ย goodwill and other , and long-lived assets , including intangible assets subject to amortization , in accordance with asc 360 property , plant and equipment . other income , net . other income , net consists of miscellaneous income or expense such as gains/losses from disposition of assets , and interest income comprised primarily of interest income on investments . 29 interest expense . interest expense consists primarily of interest expense on our outstanding loan balance , deferred financing cost amortization and capital lease interest . segment data . the company operates in two reportable segments . the criteria the company uses to identify its operating segments are primarily the nature of the products the company sells and the consolidated operating results that are regularly reviewed by the company 's chief operating decision maker to assess performance and make operating decisions . certain long-lived assets are held in the philippines ( refer to ยnote 4 ย property and equipment , netย ) . in 2012 , we identified two reporting units , base usap , which is the core auto parts business , and automd , an online automotive repair source , in accordance with asc 280 segment reporting ( ยasc 280ย ) . automd recorded revenues of $ 0.3 million and $ 0.4 million for fiscal years 2013 and 2012 , respectively . automd incurred total expenses of $ 2.3 million and $ 2.4 million during fiscal years 2013 and 2012 , respectively , which are primarily related to depreciation and amortization expense of capitalized website and software development costs . automd recorded net losses of $ 2.0 million for both fiscal years 2013 and 2012 , respectively . total assets for automd were $ 2.1 million and $ 2.0 million as of december 28 , 2013 and december 29 , 2012 , respectively , which are primarily related to capitalized website and software development costs . prior to fiscal year 2012 , our reporting unit automd had been considered a part of our main reporting unit , base usap . there was no distinguishable business of automd and revenues , expenses and assets were insignificant to the overall business and hence not reported separately in accordance with the thresholds defined by asc 280. results of operations the following table sets forth selected statement of operations data for the periods indicated , expressed as a percentage of net sales : replace_table_token_7_th 30 fifty-two weeks ended december 28 , 2013 compared to the fifty-two weeks ended december 29 , 2012 net sales and gross margin replace_table_token_8_th net sales decreased $ 49.3 million , or 16.2 % , for fiscal year 2013 compared to fiscal year 2012. our net sales consisted of online sales , which included mobile based online sales , representing 90.0 % of the total for fiscal year 2013 ( compared to 91.8 % in fiscal year 2012 ) , and offline sales , representing 10.0 % of the total for fiscal year 2013 ( compared to 8.2 % in fiscal year 2012 ) . the net sales decrease was due to a decline of $ 49.7 million , or 17.8 % , in online sales , partially offset by a $ 0.5 million , or 2.0 % , increase in offline sales . included in the net sales decrease of 16.2 % in fiscal year 2013 , is a decrease in net sales channels , excluding websites we retired in 2013 , of 8.5 % . online sales decreased primarily due to a 21 % reduction in unique visitors , a 20 % reduction in total number of orders and a decline in average order value by 2 % . the overall decrease in unique visitors was due to a reduction in customer traffic as a result of changes search engines made to the algorithms that search engines use to optimize their search results . also , our revenues were negatively impacted by the increased competition as described in further detail under ยexecutive summaryย above . our offline sales , which consist of our kool-vueย and wholesale operations , continued to show growth . while net sales declined for fiscal year 2013 as compared to fiscal year 2012 , we have observed a slow-down in the decline in revenues between the first quarter of 2013 to the fourth quarter of 2013 , when compared to the respective quarters of 2012 , as described in further detail under ยexecutive summaryย above . gross profit decreased
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2,364 | the company 's predecessor was founded in 1967 by wilhelmina cooper , a renowned fashion model , and is one of the oldest , best known and largest fashion model management companies in the world . since its founding , it has grown to include operations located in los angeles and miami , as well as a growing network of licensees comprising leading modeling agencies in various local markets across the u.s. , as well as in panama , thailand , dubai , vancouver and tokyo . the company provides traditional , full-service fashion model and talent management services , specializing in the representation and management of models , entertainers , artists , athletes and other talent to various customers and clients , including retailers , designers , advertising agencies and catalog companies . the business of talent management firms , such as wilhelmina , depends heavily on the state of the advertising industry , as demand for talent is driven by internet , print and tv advertising campaigns for consumer goods and retail clients . wilhelmina believes it has strong brand recognition which enables it to attract and retain top agents and talent to service a broad universe of clients . in order to take advantage of these opportunities and support its continued growth , the company will need to continue to successfully allocate resources and staffing in a way that enhances its ability to respond to these new opportunities . the company continues to focus on cutting costs , recruiting top agents when available and scouting and developing new talent . although wilhelmina has a large and diverse client base , it is not immune to global economic conditions . wilhelmina closely monitors economic conditions , client spending and other factors and continually looks for ways to reduce costs , manage working capital and conserve cash . there can be no assurance as to the effects on wilhelmina of future economic circumstances , client spending patterns , client credit worthiness and other developments and whether , or to what extent , wilhelmina 's efforts to respond to them will be effective . trends and opportunities the company expects that the combination of wilhelmina 's main operating base in new york city , the industry 's capital , with the depth and breadth of its talent pool and client roster and its diversification across various talent management segments , together with its geographical reach should make wilhelmina 's operations more resilient to industry changes and economic swings than those of many of the smaller firms operating in the industry . similarly , in the segments where wilhelmina competes with other leading full service agencies , wilhelmina competed successfully in 2013. with total advertising expenditures on major media ( newspapers , magazines , television , cinema , outdoor and internet ) exceeding approximately $ 160 billion in recent years , north america is by far the world 's largest advertising market . for the fashion talent management industry , including wilhelmina , advertising expenditures on magazines , television , internet and outdoor are of particular relevance . strategy management 's strategy is to increase value to shareholders through the following initiatives : develop wilhelmina into a global brand ; expand the women 's high end fashion board ; expand the wam business ; strategic acquisitions ; licensing the โ wilhelmina โ name to leading model management agencies ; licensing the โ wilhelmina โ brand in connection with consumer products , cosmetics and other beauty products ; and promoting model search contests , and events and partnering on media projects ( television , film , books , etc . ) . due to the increasing ubiquity of the internet as a standard business tool , the company has increasingly sought to harness the opportunities of the internet and other digital media to improve their communications with clients and to facilitate the effective exchange of fashion model and talent information . the company continues to make significant investments in technology ( including developing in-house art and social media departments ) in pursuit of gains in efficiency and better communications with customers . at the same time , the internet presents challenges for the company , including ( i ) the cannibalization of traditional print advertising business and ( ii ) pricing pressures with respect to photo shoots and client engagements . 10 results of operations of the company for the year ended december 31 , 2013 compared to year ended december 31 , 2012 the key financial indicators that the company reviews to monitor the business are gross billings , revenues , model costs , operating expenses and cash flows . the company analyzes revenue by reviewing the mix of revenues generated by the different โ boards โ ( each a specific division of the fashion model management operations which specializes by the type of model it represents ( women , men , direct , direct 2 , runway , curve , lifestyle , kids , etc . ) ) of the business , revenues by geographic locations and revenues from significant clients . wilhelmina has three primary sources of revenue : revenues from principal relationships whereby the gross amount billed to the client is recorded as revenue , when the revenues are earned and collectability is reasonably assured ; revenues from agent relationships whereby the commissions paid by models as a percentage of their gross earnings are recorded as revenue when earned and collectability is reasonably assured ; and separate service charges , paid by clients in addition to the booking fees , which are calculated as a percentage of the models ' booking fees and are recordedas revenues when earned and collectability is reasonably assured . story_separator_special_tag the following factors contributed to the increases in salaries and service costs when comparing the year ended december 31 , 2013 to the year ended december 31 , 2012 : the company hired additional key personnel to execute the company 's strategy to increase value to shareholders through the initiatives discussed in the โ strategy โ section above . during the year ended december 31 , 2013 , the company experienced an increase in t & e costs in connection with delivering services to its customers and models . the increases in salaries and service costs for the year ended december 31 , 2013 compared to the year ended december 31 , 2012 were partially offset by the fact that during the year ended december 31 , 2012 , the company paid compensation costs of approximately $ 540,000 in connection with certain non-compete and contractual arrangements of former employees . the amount of salaries and service costs as a percentage of revenue for the year ended december 31 , 2013 declined to 17.4 % from 18.0 % for the year ended december 31 , 2012 . 13 office and general expenses office and general expenses consist of office and equipment rents , advertising and promotion , insurance expenses , administration and technology cost . these costs are less directly linked to changes in the company 's revenues than are salaries and service costs . during the year ended december 31 , 2013 , office and general expenses increased , when compared to the year ended december 31 , 2012 , due to costs associated with legal and professional fees , technology , and leases associated with equipment and property . the company continues to invest in technology , equipment and property to improve delivery of model management services to its talent . the amount of office and general expenses as a percentage of revenue for the year ended december 31 , 2013 declined to 5.6 % from 6.0 % for the year ended december 31 , 2012. operating margin operating margins increased for the year ended december 31 , 2013 , when compared to the year ended december 31 , 2012 , as a result of an increase in revenues from the core modeling business and the results of certain management initiatives to decrease operating expenses as a percentage of revenues . amortization and depreciation depreciation and amortization expense is incurred with respect to certain assets , including computer hardware , software , office equipment , furniture , and other intangibles . during the year ended december 31 , 2013 , depreciation and amortization expense totaled $ 1,572,000 ( of which $ 1,432,000 relates to amortization of intangibles acquired in connection with the wilhelmina acquisition ) , compared to $ 1,564,000 of depreciation and amortization expense during the year ended december 31 , 2012 ( of which $ 1,437,000 relates to amortization of intangibles acquired in connection with the wilhelmina acquisition ) . fixed asset purchases totaled approximately $ 421,000 and $ 102,000 during the year ended december 31 , 2013 and december 31 , 2012 , respectively . approximately $ 270,000 of the fixed assets purchases during the year ended december 31 , 2013 related to leasehold improvements and new fixtures in the new york office . in accordance with the new york office lease ( office located at 300 park ave south ) , the company is entitled to a reimbursement from the landlord of approximately $ 190,000 of leasehold improvements . the company received reimbursement from the landlord in early 2014. corporate overhead corporate overhead expenses include public company costs , director and executive officer compensation , directors ' and officers ' insurance , legal , audit and professional fees , corporate office rent and travel . corporate overhead decreased for the year ended december 31 , 2013 , when compared to the year ended december 31 , 2012 , due to a decline in stock exchange fees , executive search fees and travel . asset impairment charge each reporting period , the company assesses whether events or circumstances have occurred which indicate that the carrying amount of an intangible asset exceeds its fair value . if the carrying amount of the intangible asset exceeds its fair value , an asset impairment charge will be recognized in an amount equal to that excess . no asset impairment charges were incurred during the year ended december 31 , 2013 and december 31 , 2012. interest expense the increase in interest expense for the year ended december 31 , 2013 , when compared to the year ended december 31 , 2012 , is the result of an increase in average borrowings under the credit agreement . income taxes generally , the company 's combined effective tax rate is high relative to reported net income as a result of certain amounts of amortization expense and corporate overhead not being deductible or attributable to states in which it operates . currently , the majority of taxes being paid by the company are state taxes , not federal taxes . the company operates in three states which have relatively high tax rates : california , new york and florida . the company 's combined ( federal and state ) effective tax rate would be even higher if it were not for federal net operating loss carryforwards available to offset current federal taxable income . after adjusting for taxable income in 2013 , the company had federal income tax loss carryforwards of approximately $ 3,000,000 , which begin expiring in 2019. a portion of the company 's federal net operating loss carryforwards were utilized to offset federal taxable income generated during the year ended december 31 , 2013. realization of the company 's carryforwards is dependent on future taxable income . as of december 31 , 2013 , management determined that the deferred tax asset ( `` dta `` ) valuation allowance of approximately $ 2,500,000 should be reversed . the decision to
| liquidity and capital resources the company 's cash balance increased to $ 2,776,000 at december 31 , 2013 , from $ 1,145,000 at december 31 , 2012. for the year ended december 31 , 2013 , cash balances increased as a result of cash flows from operations of approximately $ 2,932,000 before the payment of approximately $ 454,000 in settlement of foreign withholding tax claims for tax years 2006 and 2008. the company offset approximately $ 454,000 of its remaining approximately $ 509,000 miami earnout obligation ( as of december 31 , 2012 ) for losses incurred in the settlement of these foreign withholding claims for tax years 2006 and 2008. cash flow from operations were also utilized during the year ended december 31 , 2013 , to make payments under the credit agreement with amegy of $ 450,000 , to repurchase 2,263,110 shares of the company 's common stock , totaling approximately $ 410,000 and to purchase approximately $ 421,000 of fixed assets . as previously discussed approximately $ 270,000 of the fixed asset purchases related to leasehold improvements and fixtures in the new york office , of which $ 190,000 were reimbursed by the landlord in early 2014. the company 's primary liquidity needs are for financingworking capital associated with the expenses it incurs in performing services under its client contracts .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources the company 's cash balance increased to $ 2,776,000 at december 31 , 2013 , from $ 1,145,000 at december 31 , 2012. for the year ended december 31 , 2013 , cash balances increased as a result of cash flows from operations of approximately $ 2,932,000 before the payment of approximately $ 454,000 in settlement of foreign withholding tax claims for tax years 2006 and 2008. the company offset approximately $ 454,000 of its remaining approximately $ 509,000 miami earnout obligation ( as of december 31 , 2012 ) for losses incurred in the settlement of these foreign withholding claims for tax years 2006 and 2008. cash flow from operations were also utilized during the year ended december 31 , 2013 , to make payments under the credit agreement with amegy of $ 450,000 , to repurchase 2,263,110 shares of the company 's common stock , totaling approximately $ 410,000 and to purchase approximately $ 421,000 of fixed assets . as previously discussed approximately $ 270,000 of the fixed asset purchases related to leasehold improvements and fixtures in the new york office , of which $ 190,000 were reimbursed by the landlord in early 2014. the company 's primary liquidity needs are for financingworking capital associated with the expenses it incurs in performing services under its client contracts .
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Suspicious Activity Report : the company 's predecessor was founded in 1967 by wilhelmina cooper , a renowned fashion model , and is one of the oldest , best known and largest fashion model management companies in the world . since its founding , it has grown to include operations located in los angeles and miami , as well as a growing network of licensees comprising leading modeling agencies in various local markets across the u.s. , as well as in panama , thailand , dubai , vancouver and tokyo . the company provides traditional , full-service fashion model and talent management services , specializing in the representation and management of models , entertainers , artists , athletes and other talent to various customers and clients , including retailers , designers , advertising agencies and catalog companies . the business of talent management firms , such as wilhelmina , depends heavily on the state of the advertising industry , as demand for talent is driven by internet , print and tv advertising campaigns for consumer goods and retail clients . wilhelmina believes it has strong brand recognition which enables it to attract and retain top agents and talent to service a broad universe of clients . in order to take advantage of these opportunities and support its continued growth , the company will need to continue to successfully allocate resources and staffing in a way that enhances its ability to respond to these new opportunities . the company continues to focus on cutting costs , recruiting top agents when available and scouting and developing new talent . although wilhelmina has a large and diverse client base , it is not immune to global economic conditions . wilhelmina closely monitors economic conditions , client spending and other factors and continually looks for ways to reduce costs , manage working capital and conserve cash . there can be no assurance as to the effects on wilhelmina of future economic circumstances , client spending patterns , client credit worthiness and other developments and whether , or to what extent , wilhelmina 's efforts to respond to them will be effective . trends and opportunities the company expects that the combination of wilhelmina 's main operating base in new york city , the industry 's capital , with the depth and breadth of its talent pool and client roster and its diversification across various talent management segments , together with its geographical reach should make wilhelmina 's operations more resilient to industry changes and economic swings than those of many of the smaller firms operating in the industry . similarly , in the segments where wilhelmina competes with other leading full service agencies , wilhelmina competed successfully in 2013. with total advertising expenditures on major media ( newspapers , magazines , television , cinema , outdoor and internet ) exceeding approximately $ 160 billion in recent years , north america is by far the world 's largest advertising market . for the fashion talent management industry , including wilhelmina , advertising expenditures on magazines , television , internet and outdoor are of particular relevance . strategy management 's strategy is to increase value to shareholders through the following initiatives : develop wilhelmina into a global brand ; expand the women 's high end fashion board ; expand the wam business ; strategic acquisitions ; licensing the โ wilhelmina โ name to leading model management agencies ; licensing the โ wilhelmina โ brand in connection with consumer products , cosmetics and other beauty products ; and promoting model search contests , and events and partnering on media projects ( television , film , books , etc . ) . due to the increasing ubiquity of the internet as a standard business tool , the company has increasingly sought to harness the opportunities of the internet and other digital media to improve their communications with clients and to facilitate the effective exchange of fashion model and talent information . the company continues to make significant investments in technology ( including developing in-house art and social media departments ) in pursuit of gains in efficiency and better communications with customers . at the same time , the internet presents challenges for the company , including ( i ) the cannibalization of traditional print advertising business and ( ii ) pricing pressures with respect to photo shoots and client engagements . 10 results of operations of the company for the year ended december 31 , 2013 compared to year ended december 31 , 2012 the key financial indicators that the company reviews to monitor the business are gross billings , revenues , model costs , operating expenses and cash flows . the company analyzes revenue by reviewing the mix of revenues generated by the different โ boards โ ( each a specific division of the fashion model management operations which specializes by the type of model it represents ( women , men , direct , direct 2 , runway , curve , lifestyle , kids , etc . ) ) of the business , revenues by geographic locations and revenues from significant clients . wilhelmina has three primary sources of revenue : revenues from principal relationships whereby the gross amount billed to the client is recorded as revenue , when the revenues are earned and collectability is reasonably assured ; revenues from agent relationships whereby the commissions paid by models as a percentage of their gross earnings are recorded as revenue when earned and collectability is reasonably assured ; and separate service charges , paid by clients in addition to the booking fees , which are calculated as a percentage of the models ' booking fees and are recordedas revenues when earned and collectability is reasonably assured . story_separator_special_tag the following factors contributed to the increases in salaries and service costs when comparing the year ended december 31 , 2013 to the year ended december 31 , 2012 : the company hired additional key personnel to execute the company 's strategy to increase value to shareholders through the initiatives discussed in the โ strategy โ section above . during the year ended december 31 , 2013 , the company experienced an increase in t & e costs in connection with delivering services to its customers and models . the increases in salaries and service costs for the year ended december 31 , 2013 compared to the year ended december 31 , 2012 were partially offset by the fact that during the year ended december 31 , 2012 , the company paid compensation costs of approximately $ 540,000 in connection with certain non-compete and contractual arrangements of former employees . the amount of salaries and service costs as a percentage of revenue for the year ended december 31 , 2013 declined to 17.4 % from 18.0 % for the year ended december 31 , 2012 . 13 office and general expenses office and general expenses consist of office and equipment rents , advertising and promotion , insurance expenses , administration and technology cost . these costs are less directly linked to changes in the company 's revenues than are salaries and service costs . during the year ended december 31 , 2013 , office and general expenses increased , when compared to the year ended december 31 , 2012 , due to costs associated with legal and professional fees , technology , and leases associated with equipment and property . the company continues to invest in technology , equipment and property to improve delivery of model management services to its talent . the amount of office and general expenses as a percentage of revenue for the year ended december 31 , 2013 declined to 5.6 % from 6.0 % for the year ended december 31 , 2012. operating margin operating margins increased for the year ended december 31 , 2013 , when compared to the year ended december 31 , 2012 , as a result of an increase in revenues from the core modeling business and the results of certain management initiatives to decrease operating expenses as a percentage of revenues . amortization and depreciation depreciation and amortization expense is incurred with respect to certain assets , including computer hardware , software , office equipment , furniture , and other intangibles . during the year ended december 31 , 2013 , depreciation and amortization expense totaled $ 1,572,000 ( of which $ 1,432,000 relates to amortization of intangibles acquired in connection with the wilhelmina acquisition ) , compared to $ 1,564,000 of depreciation and amortization expense during the year ended december 31 , 2012 ( of which $ 1,437,000 relates to amortization of intangibles acquired in connection with the wilhelmina acquisition ) . fixed asset purchases totaled approximately $ 421,000 and $ 102,000 during the year ended december 31 , 2013 and december 31 , 2012 , respectively . approximately $ 270,000 of the fixed assets purchases during the year ended december 31 , 2013 related to leasehold improvements and new fixtures in the new york office . in accordance with the new york office lease ( office located at 300 park ave south ) , the company is entitled to a reimbursement from the landlord of approximately $ 190,000 of leasehold improvements . the company received reimbursement from the landlord in early 2014. corporate overhead corporate overhead expenses include public company costs , director and executive officer compensation , directors ' and officers ' insurance , legal , audit and professional fees , corporate office rent and travel . corporate overhead decreased for the year ended december 31 , 2013 , when compared to the year ended december 31 , 2012 , due to a decline in stock exchange fees , executive search fees and travel . asset impairment charge each reporting period , the company assesses whether events or circumstances have occurred which indicate that the carrying amount of an intangible asset exceeds its fair value . if the carrying amount of the intangible asset exceeds its fair value , an asset impairment charge will be recognized in an amount equal to that excess . no asset impairment charges were incurred during the year ended december 31 , 2013 and december 31 , 2012. interest expense the increase in interest expense for the year ended december 31 , 2013 , when compared to the year ended december 31 , 2012 , is the result of an increase in average borrowings under the credit agreement . income taxes generally , the company 's combined effective tax rate is high relative to reported net income as a result of certain amounts of amortization expense and corporate overhead not being deductible or attributable to states in which it operates . currently , the majority of taxes being paid by the company are state taxes , not federal taxes . the company operates in three states which have relatively high tax rates : california , new york and florida . the company 's combined ( federal and state ) effective tax rate would be even higher if it were not for federal net operating loss carryforwards available to offset current federal taxable income . after adjusting for taxable income in 2013 , the company had federal income tax loss carryforwards of approximately $ 3,000,000 , which begin expiring in 2019. a portion of the company 's federal net operating loss carryforwards were utilized to offset federal taxable income generated during the year ended december 31 , 2013. realization of the company 's carryforwards is dependent on future taxable income . as of december 31 , 2013 , management determined that the deferred tax asset ( `` dta `` ) valuation allowance of approximately $ 2,500,000 should be reversed . the decision to
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2,365 | therefore , these operations are classified as discontinued operations for all periods . refer to note 4 to the consolidated financial statements for more information regarding these transactions . 25 critical accounting policies and estimates the company 's accounting policies are more fully described in note 2 to the consolidated financial statements . as disclosed in note 1 to the consolidated financial statements , the preparation of financial statements in conformity with accounting principles generally accepted in the united states requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes . future events and their effects can not be determined with absolute certainty . therefore , the determination of estimates requires the exercise of judgment . actual results inevitably will differ from those estimates , and these differences may be material to the financial statements . the company believes the following key accounting policies affect its more significant judgments and estimates used in the preparation of its consolidated financial statements and are critical to its business operations and the understanding of its results of operations . revenue recognition . effective january 1 , 2006 , the company made a voluntary preferential change in its revenue recognition policies regarding semester-based tuition for its campus-based universities . the universities now recognize tuition revenue ratably on a weekly straight-line basis over each academic session instead of the previously used monthly straight-line basis . this change was made to improve transparency and the correlation between the company 's enrollments , revenues , and actual academic calendars . refer to note 2 to the consolidated financial statements for further discussion . tuition revenue is reported net of scholarships and other discounts . all other revenue is recognized as earned over the appropriate service period , including the company 's online business . dormitory revenues are recognized over the occupancy period . textbook sales and the related cost of the textbooks are recognized at the beginning of each academic quarter with respect to students who are attending courses in which textbooks are charged separately from tuition . approximately 92 % of the company 's revenues represent tuition charges and approximately 5 % of revenues represent bookstore sales and student fees where separately distinguishable . for each student , billings issued or payments received in excess of tuition earned are recorded as deferred revenue . refunds to students have been immaterial and generally limited to amounts paid for which educational services have not been rendered . since the company does not recognize revenues until the services have been rendered , these refunds are typically charged to the deferred revenue account . the amount of tuition earned depends on the fee per semester or per credit hour of the courses , the number of program courses a student takes during each period of enrollment , and the total number of students enrolled in each program . each of these factors is known at the time tuition revenues are calculated and is not subject to estimation . if the company adds additional fees related to educational services , the fees are assessed separately for proper revenue recognition treatment . revenue from the sale of educational products , approximately 3 % of the company 's revenues , is generally recognized when shipped and collectibility is reasonably assured . minority share ownership purchase arrangements the company 's acquisition strategy when acquiring a target company is to initially acquire a majority ownership of the target company with the ultimate goal of acquiring the remaining minority ownership of the target company sometime afterward . concurrent with the initial acquisition , the company typically enters into a series of put and call arrangements with the minority partner of the target company , which will eventually enable the company to purchase the remaining ownership interest of the acquired target company . the company has used four types of minority ownership purchase arrangements to acquire the minority ownership of the target company including : minority put , similar exchange , combination exchange , and fixed purchase price obligation ( see note 2 to the consolidated financial statements ) . these arrangements require management to make certain estimates with regard to the final amount the company will eventually pay in order to acquire the remaining ownership in the company . in the minority put , similar exchange , and combination exchange arrangements , the final settlement value is usually based on a multiple of future non-gaap earnings . the company uses the present value of the current period non-gaap earnings as an estimate for the final value that will eventually be paid to settle the arrangement . these values are then adjusted annually to reflect changes in the target company 's non-gaap earnings as well as the additional passage of time to maturity for the arrangement . to the extent the current non-gaap earnings are different than the future period non-gaap earnings , the value of these obligations can change significantly which will have an impact on the company 's financial position and reported results of operations . accounts and notes receivable . the company routinely makes estimates of the collectibility of its accounts and notes receivable . the company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its students and other parties to make required payments . the company estimates the amount of the required allowance by reviewing the status of past-due receivables and analyzing historical bad debt trends . if the financial condition of students were to deteriorate , resulting in an impairment of their ability to make required payments for tuition , additional allowances may be required . the company has implemented pilot tuition financing programs at its chilean universities where there is a limited lending and collections history . 26 equity-based compensation . the company has awarded restricted stock and unit awards in which the vesting is based on company performance metrics . story_separator_special_tag for 2006 , the effects of enrollments at varying price points ( ยproduct mixย ) combined with the 31 impact on revenues of differing academic calendars in 2005 and 2006 in each of our latin american institutions ( ยtimingย ) resulted in a $ 1.5 million reduction in revenue compared to 2005. latin america revenue represented 60 % of total revenues for 2006 and 58 % of total revenues for 2005. europe revenue for 2006 increased by $ 38.9 million , or 21 % , to $ 223.8 million compared to 2005. a full year 's operations at cyprus college increased revenues by $ 15.6 million and a 2006 acquisition in the mediterranean region increased revenues by $ 0.8 million . enrollment increases of 6.8 % in schools owned in both years added revenues of $ 12.8 million over 2005. for schools owned in both years , the company increased local currency tuition by a weighted average of 3.8 % , which served to increase revenues by $ 6.5 million . each institution in the segment offers tuitions at various prices based upon degree program . for 2006 , the effects of product mix and timing resulted in a $ 2.9 million increase in revenue compared to 2005. the segment operates in several countries and is subject to the effects of foreign currency exchange rates in each of those countries . for 2006 , the effects of currency translations increased revenues by $ 0.3 million , due to the strengthening of the euro against the u.s. dollar . europe revenue represented 20 % of total revenues for 2006 , and 21 % of total revenues for 2005. laureate online education revenue increased by $ 50.3 million , or 27 % , to $ 234.6 million for 2006 compared to 2005. enrollment increases added revenues of $ 19.6 million . tuition increases accounted for $ 10.1 million of additional revenues , and other factors , primarily a favorable change in degree mix , added $ 20.6 million . laureate online education revenue represented 20 % of total revenues for 2006 , and 21 % of total revenues for 2005. direct costs . total direct costs of revenues increased $ 235.3 million , or 33 % , to $ 951.3 million for 2005 from $ 716.0 million for 2005. direct costs represented 83 % of total revenues in 2006 , and 82 % of total revenues in 2005. latin america direct costs increased by $ 155.1 million to $ 538.2 million , or 78 % of latin america revenue for 2006 year , compared to $ 383.1 million or 76 % of latin america revenue for 2005. acquisitions increased expenses by $ 75.9 million . an increase of $ 70.6 million in expenses reflected higher enrollments and corresponding expanded operating activities compared to 2005. for 2006 , the effects of currency translations increased expenses by $ 8.6 million , primarily due to the strengthening of the chilean peso relative to the u.s. dollar . the increase in direct costs as a percentage of revenues was due primarily to $ 3.6 million of severance incurred as a result of the chilean step acquisition and equity based compensation charges as well as the impact to operating margins of businesses acquired during 2005 , which have lower operating margins than the other institutions in the latin america segment . europe direct costs increased by $ 35.9 million to $ 196.2 million , or 88 % of europe revenue for 2006 , compared to $ 160.3 million , or 87 % of europe revenue for 2005. higher enrollments and expanded operations at the higher education institutions compared to 2005 increased expenses by $ 20.0 million , and the acquisitions increased expenses by $ 14.9 million . for 2006 , the effects of currency translations increased expenses by $ 1.0 million , due to the strengthening of the euro against the u.s. dollar . the increase in direct costs as percentage of revenues was due primarily to additional compensation charges ( including equity based compensation ) . campus-based segments ' overhead expense increased $ 9.3 million , or 57 % , to $ 25.6 million in 2006 compared to $ 16.3 million for 2005. campus based overhead expense represented 3 % of total campus-based revenues in 2006 , and 2 % of total campus-based revenues in 2005. the increase is primarily attributable to the implementation of a long-term cash executive performance incentive program and the increase in performance-based compensation expense as well as increased professional fees , payroll and management travel expenses in support of the growth of the company 's international operations . in addition , there was an increase in equity-based compensation of $ 3.0 , including the impact of expensing of stock options of $ 1.9 million under sfas no . 123r . laureate online education direct costs increased by $ 35.0 million to $ 191.3 million , or 82 % of laureate online education revenue for 2006 , compared to $ 156.3 million , or 85 % of laureate online education revenue for 2005. the increase of $ 35.0 million in expenses reflected higher expenses due to increased enrollments and expanded operating activities compared to 2005. the decrease in direct costs as a percentage of revenues reflects increased efficiencies in program delivery as a result of higher enrollment volumes , partially offset by investment in brand development and student recruiting services . general and administrative expenses . general and administrative expenses increased by $ 17.1 million to $ 46.1 million for 2006 , compared to $ 29.0 million for 2005. the increase is primarily attributable to the implementation of a long-term cash executive performance incentive program and the increase in performance-based compensation expense as well as higher payroll , professional fees , and other employee related costs resulting from increased headcount , and travel expenses to support the rapid growth in the company 's global operations . in addition , there was an
| liquidity and capital resources the company generates revenue from tuition and other fees charged to students in connection with its various education program offerings . students typically self-finance the costs of their education or seek third-party sponsored financing programs . tuition is generally collected in advance . as a result , working capital is generally a source rather than use of funds . given the favorable cash flow characteristics of the company 's post-secondary education business , laureate anticipates generating sufficient cash flow from operations in the majority of countries where the company operates to satisfy the working capital and financing needs of the company 's organic growth plans for each country . if an educational institution in a country were unable to maintain sufficient liquidity on its own , the company would look to internal cash resources as well as explore reasonable short-term facilities to accommodate any short to medium term shortfalls . accordingly , liquidity is managed locally with oversight provided by corporate staff in baltimore , maryland . the company incurs significant costs at its headquarters location in baltimore , maryland relating to ( 1 ) meeting u.s. and group corporate governance , reporting and compliance requirements , ( 2 ) stewardship and financing of its ownership in investments and subsidiaries , and ( 3 ) development of group synergies among its investments and subsidiaries . cash flow from operations generated by the company 's domestic businesses , included within laureate online education , coupled with incremental borrowing capacity , are expected to be sufficient to meet future domestic working capital , financing and investment needs . the company anticipates that cash flow from operations , available cash and existing credit facilities will be sufficient to meet its recurring operating requirements . the company will require additional liquidity in order to fund the long-term operating strategy of expanding existing locations , opening new campuses and entering new markets . the company continues to examine opportunities in the educational services industry for potential synergistic acquisitions , which will require additional liquidity .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources the company generates revenue from tuition and other fees charged to students in connection with its various education program offerings . students typically self-finance the costs of their education or seek third-party sponsored financing programs . tuition is generally collected in advance . as a result , working capital is generally a source rather than use of funds . given the favorable cash flow characteristics of the company 's post-secondary education business , laureate anticipates generating sufficient cash flow from operations in the majority of countries where the company operates to satisfy the working capital and financing needs of the company 's organic growth plans for each country . if an educational institution in a country were unable to maintain sufficient liquidity on its own , the company would look to internal cash resources as well as explore reasonable short-term facilities to accommodate any short to medium term shortfalls . accordingly , liquidity is managed locally with oversight provided by corporate staff in baltimore , maryland . the company incurs significant costs at its headquarters location in baltimore , maryland relating to ( 1 ) meeting u.s. and group corporate governance , reporting and compliance requirements , ( 2 ) stewardship and financing of its ownership in investments and subsidiaries , and ( 3 ) development of group synergies among its investments and subsidiaries . cash flow from operations generated by the company 's domestic businesses , included within laureate online education , coupled with incremental borrowing capacity , are expected to be sufficient to meet future domestic working capital , financing and investment needs . the company anticipates that cash flow from operations , available cash and existing credit facilities will be sufficient to meet its recurring operating requirements . the company will require additional liquidity in order to fund the long-term operating strategy of expanding existing locations , opening new campuses and entering new markets . the company continues to examine opportunities in the educational services industry for potential synergistic acquisitions , which will require additional liquidity .
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Suspicious Activity Report : therefore , these operations are classified as discontinued operations for all periods . refer to note 4 to the consolidated financial statements for more information regarding these transactions . 25 critical accounting policies and estimates the company 's accounting policies are more fully described in note 2 to the consolidated financial statements . as disclosed in note 1 to the consolidated financial statements , the preparation of financial statements in conformity with accounting principles generally accepted in the united states requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes . future events and their effects can not be determined with absolute certainty . therefore , the determination of estimates requires the exercise of judgment . actual results inevitably will differ from those estimates , and these differences may be material to the financial statements . the company believes the following key accounting policies affect its more significant judgments and estimates used in the preparation of its consolidated financial statements and are critical to its business operations and the understanding of its results of operations . revenue recognition . effective january 1 , 2006 , the company made a voluntary preferential change in its revenue recognition policies regarding semester-based tuition for its campus-based universities . the universities now recognize tuition revenue ratably on a weekly straight-line basis over each academic session instead of the previously used monthly straight-line basis . this change was made to improve transparency and the correlation between the company 's enrollments , revenues , and actual academic calendars . refer to note 2 to the consolidated financial statements for further discussion . tuition revenue is reported net of scholarships and other discounts . all other revenue is recognized as earned over the appropriate service period , including the company 's online business . dormitory revenues are recognized over the occupancy period . textbook sales and the related cost of the textbooks are recognized at the beginning of each academic quarter with respect to students who are attending courses in which textbooks are charged separately from tuition . approximately 92 % of the company 's revenues represent tuition charges and approximately 5 % of revenues represent bookstore sales and student fees where separately distinguishable . for each student , billings issued or payments received in excess of tuition earned are recorded as deferred revenue . refunds to students have been immaterial and generally limited to amounts paid for which educational services have not been rendered . since the company does not recognize revenues until the services have been rendered , these refunds are typically charged to the deferred revenue account . the amount of tuition earned depends on the fee per semester or per credit hour of the courses , the number of program courses a student takes during each period of enrollment , and the total number of students enrolled in each program . each of these factors is known at the time tuition revenues are calculated and is not subject to estimation . if the company adds additional fees related to educational services , the fees are assessed separately for proper revenue recognition treatment . revenue from the sale of educational products , approximately 3 % of the company 's revenues , is generally recognized when shipped and collectibility is reasonably assured . minority share ownership purchase arrangements the company 's acquisition strategy when acquiring a target company is to initially acquire a majority ownership of the target company with the ultimate goal of acquiring the remaining minority ownership of the target company sometime afterward . concurrent with the initial acquisition , the company typically enters into a series of put and call arrangements with the minority partner of the target company , which will eventually enable the company to purchase the remaining ownership interest of the acquired target company . the company has used four types of minority ownership purchase arrangements to acquire the minority ownership of the target company including : minority put , similar exchange , combination exchange , and fixed purchase price obligation ( see note 2 to the consolidated financial statements ) . these arrangements require management to make certain estimates with regard to the final amount the company will eventually pay in order to acquire the remaining ownership in the company . in the minority put , similar exchange , and combination exchange arrangements , the final settlement value is usually based on a multiple of future non-gaap earnings . the company uses the present value of the current period non-gaap earnings as an estimate for the final value that will eventually be paid to settle the arrangement . these values are then adjusted annually to reflect changes in the target company 's non-gaap earnings as well as the additional passage of time to maturity for the arrangement . to the extent the current non-gaap earnings are different than the future period non-gaap earnings , the value of these obligations can change significantly which will have an impact on the company 's financial position and reported results of operations . accounts and notes receivable . the company routinely makes estimates of the collectibility of its accounts and notes receivable . the company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its students and other parties to make required payments . the company estimates the amount of the required allowance by reviewing the status of past-due receivables and analyzing historical bad debt trends . if the financial condition of students were to deteriorate , resulting in an impairment of their ability to make required payments for tuition , additional allowances may be required . the company has implemented pilot tuition financing programs at its chilean universities where there is a limited lending and collections history . 26 equity-based compensation . the company has awarded restricted stock and unit awards in which the vesting is based on company performance metrics . story_separator_special_tag for 2006 , the effects of enrollments at varying price points ( ยproduct mixย ) combined with the 31 impact on revenues of differing academic calendars in 2005 and 2006 in each of our latin american institutions ( ยtimingย ) resulted in a $ 1.5 million reduction in revenue compared to 2005. latin america revenue represented 60 % of total revenues for 2006 and 58 % of total revenues for 2005. europe revenue for 2006 increased by $ 38.9 million , or 21 % , to $ 223.8 million compared to 2005. a full year 's operations at cyprus college increased revenues by $ 15.6 million and a 2006 acquisition in the mediterranean region increased revenues by $ 0.8 million . enrollment increases of 6.8 % in schools owned in both years added revenues of $ 12.8 million over 2005. for schools owned in both years , the company increased local currency tuition by a weighted average of 3.8 % , which served to increase revenues by $ 6.5 million . each institution in the segment offers tuitions at various prices based upon degree program . for 2006 , the effects of product mix and timing resulted in a $ 2.9 million increase in revenue compared to 2005. the segment operates in several countries and is subject to the effects of foreign currency exchange rates in each of those countries . for 2006 , the effects of currency translations increased revenues by $ 0.3 million , due to the strengthening of the euro against the u.s. dollar . europe revenue represented 20 % of total revenues for 2006 , and 21 % of total revenues for 2005. laureate online education revenue increased by $ 50.3 million , or 27 % , to $ 234.6 million for 2006 compared to 2005. enrollment increases added revenues of $ 19.6 million . tuition increases accounted for $ 10.1 million of additional revenues , and other factors , primarily a favorable change in degree mix , added $ 20.6 million . laureate online education revenue represented 20 % of total revenues for 2006 , and 21 % of total revenues for 2005. direct costs . total direct costs of revenues increased $ 235.3 million , or 33 % , to $ 951.3 million for 2005 from $ 716.0 million for 2005. direct costs represented 83 % of total revenues in 2006 , and 82 % of total revenues in 2005. latin america direct costs increased by $ 155.1 million to $ 538.2 million , or 78 % of latin america revenue for 2006 year , compared to $ 383.1 million or 76 % of latin america revenue for 2005. acquisitions increased expenses by $ 75.9 million . an increase of $ 70.6 million in expenses reflected higher enrollments and corresponding expanded operating activities compared to 2005. for 2006 , the effects of currency translations increased expenses by $ 8.6 million , primarily due to the strengthening of the chilean peso relative to the u.s. dollar . the increase in direct costs as a percentage of revenues was due primarily to $ 3.6 million of severance incurred as a result of the chilean step acquisition and equity based compensation charges as well as the impact to operating margins of businesses acquired during 2005 , which have lower operating margins than the other institutions in the latin america segment . europe direct costs increased by $ 35.9 million to $ 196.2 million , or 88 % of europe revenue for 2006 , compared to $ 160.3 million , or 87 % of europe revenue for 2005. higher enrollments and expanded operations at the higher education institutions compared to 2005 increased expenses by $ 20.0 million , and the acquisitions increased expenses by $ 14.9 million . for 2006 , the effects of currency translations increased expenses by $ 1.0 million , due to the strengthening of the euro against the u.s. dollar . the increase in direct costs as percentage of revenues was due primarily to additional compensation charges ( including equity based compensation ) . campus-based segments ' overhead expense increased $ 9.3 million , or 57 % , to $ 25.6 million in 2006 compared to $ 16.3 million for 2005. campus based overhead expense represented 3 % of total campus-based revenues in 2006 , and 2 % of total campus-based revenues in 2005. the increase is primarily attributable to the implementation of a long-term cash executive performance incentive program and the increase in performance-based compensation expense as well as increased professional fees , payroll and management travel expenses in support of the growth of the company 's international operations . in addition , there was an increase in equity-based compensation of $ 3.0 , including the impact of expensing of stock options of $ 1.9 million under sfas no . 123r . laureate online education direct costs increased by $ 35.0 million to $ 191.3 million , or 82 % of laureate online education revenue for 2006 , compared to $ 156.3 million , or 85 % of laureate online education revenue for 2005. the increase of $ 35.0 million in expenses reflected higher expenses due to increased enrollments and expanded operating activities compared to 2005. the decrease in direct costs as a percentage of revenues reflects increased efficiencies in program delivery as a result of higher enrollment volumes , partially offset by investment in brand development and student recruiting services . general and administrative expenses . general and administrative expenses increased by $ 17.1 million to $ 46.1 million for 2006 , compared to $ 29.0 million for 2005. the increase is primarily attributable to the implementation of a long-term cash executive performance incentive program and the increase in performance-based compensation expense as well as higher payroll , professional fees , and other employee related costs resulting from increased headcount , and travel expenses to support the rapid growth in the company 's global operations . in addition , there was an
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2,366 | economic factors that impact the company include the general level of economic activity that can affect the volume and size of invoices processed , the ability to hire and retain qualified staff , and the growth and quality of the loan portfolio . the general level of interest rates also has a significant effect on the revenue of the company . as discussed in greater detail in item 7a , โ quantitative and qualitative disclosures about market risk , โ a decline in the general level of interest rates can have a negative impact on net interest income and conversely , a rise in the general level of interest rates can have a positive impact on net interest income . the cost of fuel is another factor that has a significant impact on the transportation sector . as the price of fuel goes up or down , the company 's earnings increase or decrease with the dollar amount of transportation invoices . in 2020 , total fee revenue and other income decreased $ 9,628,000 , or 9 % , net interest income after provision for credit losses decreased $ 2,651,000 , or 6 % , total operating expenses decreased $ 5,154,000 , or 4 % , and net income decreased $ 5,228,000 , or 17 % . this performance in 2020 was negatively impacted by the covid-19 global pandemic . for payment processing services , business closures have led to a decrease in the number of transactions and dollars processed due to the decline in customers ' business activity , which resulted in a negative effect on total fee revenue and other income . additionally , the federal reserve 's actions to lower the federal funds rate adversely impacted net interest income . total operating expenses decreased as the lower number of transactions processed had a corresponding reduction in personnel expense and covid-19 limited employee travel-related expenses . the asset quality of the company 's loans and investments as of december 31 , 2020 remained strong . currently , management views cass ' major opportunity as the continued expansion of its payment and information processing service offerings and customer base . management intends to accomplish this by maintaining the company 's leadership position in applied technology , which when combined with the security and processing controls of the bank , makes cass unique in the industry . impact of new and not yet adopted accounting pronouncements in june 2016 , the fasb issued asu no . 2016-13 , financial instruments โ credit losses ( topic 326 ) : measurement of credit losses on financial instruments ( โ asu 2016-13 โ ) . the standard is effective for fiscal periods beginning after december 15 , 2019. the coronavirus aid , relief , and economic security ( โ cares โ ) act was signed into law on march 27 , 2020 and included provisions that temporarily delayed the required implementation date of asu 2016-13 to the earlier of the end of the national pandemic or december 31 , 2020. the consolidated appropriations act ( โ caa โ ) was signed into law on december 27 , 2020 and extended the deferral of required implementation of asu 2016-13 to the earlier of the first day of a company 's fiscal year that begins after the date the covid-19 national emergency comes to an end or january 1 , 2022. the company elected to defer the adoption of asu 2016-13 until december 31 , 2020 with an effective date of january 1 , 2020. the asu required measurement and recognition of expected credit losses for financial instruments held , as applicable , which include allowances for credit losses expected over the life of the portfolio , rather than incurred losses , which include allowances for current probable and estimable losses within the portfolio . under this standard , the company is required to hold an allowance equal to the expected life-of-loan losses on the loan portfolio . it also applies to off-balance sheet credit exposures 19 such as loan commitments , standby letters of credit and other similar instruments . in addition , asu 2016-13 made changes to the accounting for available-for-sale debt securities . the company adopted asu 2016-13 using a modified retrospective approach . results for annual reporting periods beginning after january 1 , 2020 are presented under asu 2016-13 while prior period amounts continue to be reported in accordance with previously applicable gaap . results for quarterly reporting periods beginning after december 31 , 2020 in the company 's form 10-q will be presented under asu 2016-13 while prior quarterly period amounts continue to be reported in accordance with previously applicable gaap . the company recognized increases of $ 723,000 in the allowance for credit losses and $ 402,000 in the reserve for unfunded commitments , with a corresponding reduction to retained earnings , net of tax , of $ 856,000. no credit loss allowance was required upon adoption for the investment securities portfolio . the following table illustrates the impact of the adoption of asu 2016-13 : replace_table_token_1_th critical accounting policies the company has prepared the consolidated financial statements in this report in accordance with the fasb accounting standards codification ( โ asc โ ) . in preparing the consolidated financial statements , management makes estimates and assumptions that affect the reported amount of assets and liabilities , disclosure of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expenses during the reporting period . these estimates have been generally accurate in the past , have been consistent and have not required any material changes . there can be no assurances that actual results will not differ from those estimates . the accounting policy that requires significant management estimates and is deemed critical to the company 's results of operations or financial position has been discussed with the audit committee of the board of directors and is described below . story_separator_special_tag federal and state regulatory agencies review the company 's methodology for maintaining the acl . these agencies may require the company to adjust the acl based on their judgments and interpretations about information available to them at the time of their examinations . the following schedule summarizes activity in the acl and the allocation of the allowance to the company 's loan categories . 26 summary of credit loss experience replace_table_token_9_th ( 1 ) although specific allocations exist , the entire allowance is available to absorb losses in any particular loan category . 27 nonperforming assets nonperforming loans are defined as loans on non-accrual status and loans 90 days or more past due but still accruing . nonperforming assets include nonperforming loans plus foreclosed real estate . troubled debt restructurings are not included in nonperforming loans unless they are on non-accrual status or past due 90 days or more . it is the policy of the company to continually monitor its loan portfolio and to discontinue the accrual of interest on any loan for which collection is not probable . subsequent payments received on such loans are applied to principal if collection of principal is not probable ; otherwise , these receipts are recorded as interest income . there was no interest on nonaccrual loans for the years ended december 31 , 2020 and 2019 , respectively . there were no nonaccrual loans or foreclosed assets at december 31 , 2020 or december 31 , 2019. the company does not have any foreign loans . the company 's loan portfolio does not include a significant amount of single family real estate mortgages , as the company does not market its services to retail customers . also , the company had no sub-prime mortgage loans or residential development loans in its portfolio in any of the years presented . the company does not have any other interest-earning assets which would have been included in nonaccrual , past due or restructured loans if such assets were loans . summary of nonperforming assets replace_table_token_10_th ( 1 ) in october 2017 , one nonaccrual loan with a balance of $ 215,000 was paid in full . in february 2016 , one nonaccrual loan with a balance of $ 2,727,000 was paid in full . operating expenses operating expenses in 2020 compared to 2019 include the following significant pre-tax components : personnel expense decreased $ 3,021,000 , or 3 % , to $ 88,062,000 as covid-19 caused a decrease in invoice processing volumes and a corresponding decrease in personnel expense . promotional expense decreased $ 1,654,000 , or 43 % , as employee travel-related expenses were limited throughout the year . income tax expense income tax expense in 2020 totaled $ 5,165,000 compared to $ 7,062,000 in 2019. when measured as a percent of pre-tax income , the company 's effective tax rate was 17 % in 2020 and 19 % in 2019. the decrease in the effective tax rate in 2020 compared to 2019 was primarily due to tax-exempt income from municipal bonds being a larger percentage of total pretax income , in addition to the eligibility of additional tax credits . investment portfolio investment portfolio changes from december 31 , 2019 to december 31 , 2020 : state and political subdivision securities decreased $ 18,473,000 , or 6 % , to $ 305,974,000. u.s. government agency securities decreased $ 45,966,000 to $ 51,752,000. the investment portfolio provides the company with a significant source of earnings , secondary source of liquidity , and mechanisms to manage the effects of changes in loan demand and interest rates . therefore , the size , asset allocation and maturity distribution of the investment portfolio will vary over time depending on management 's assessment of current and future interest rates , changes in loan demand , changes in the 28 company 's sources of funds and the economic outlook . during this period , the company purchased securities totaling $ 20,043,000. there was no single issuer of securities in the investment portfolio at december 31 , 2020 for which the aggregate amortized cost exceeded 10 % of total shareholders ' equity . replace_table_token_11_th replace_table_token_12_th ( 1 ) yields are presented on a tax-equivalent basis assuming a tax rate of 21 % for 2020 , 2019 and 2018. deposits and accounts and drafts payable noninterest-bearing demand deposits increased 41 % from december 31 , 2019 to $ 493,504,000 at december 31 , 2020. the average balances of these deposits increased 29 % in 2020 to $ 356,433,000. the increase in deposits during 2020 is primarily attributed to government related stimulus activity and the resulting increase in cash deposits . these balances are primarily maintained by commercial customers , faith-based ministries , and new payment and information processing relationships and can fluctuate on a daily basis . interest-bearing deposits increased $ 151,307,000 , or 37 % , to $ 557,352,000 at december 31 , 2020. the average balances of these deposits increased 22 % to $ 480,410,000 in 2020 from $ 394,843,000 in 2019. the increase in deposits during 2020 is primarily attributed to government related stimulus activity and the resulting increase in cash deposits . accounts and drafts payable generated by the company in its payment processing operations increased $ 151,091,000 , or 22 % , to $ 835,386,000 at december 31 , 2020. the average balance of these funds increased $ 18,403,000 , or 2 % , to $ 803,605,000 in 2020. this increase was the result of continued growth in the customer base . due to the company 's payment processing cycle , average balances are much more indicative of the underlying activity than period-end balances since point-in-time comparisons can be misleading if the comparison dates fall on different days of the week . the composition of average deposits and the average rates paid on those deposits is represented in the table entitled โ distribution of assets , liabilities and shareholders ' equity ; interest rate and
| liquidity the discipline of liquidity management as practiced by the company seeks to ensure that funds are available to fulfill all payment obligations relating to invoices processed as they become due and meet depositor withdrawal requests and borrower credit demands while at the same time maximizing profitability . this is accomplished by balancing changes in demand for funds with changes in supply of funds . primary liquidity to meet demand is provided by short-term liquid assets that can be converted to cash , maturing securities and the ability to obtain funds from external sources . the company 's asset/liability 29 committee ( โ alco โ ) has direct oversight responsibility for the company 's liquidity position and profile . management considers both on-balance sheet and off-balance sheet items in its evaluation of liquidity . the balances of liquid assets consist of cash and cash equivalents , which include cash and due from banks , interest-bearing deposits in other financial institutions , federal funds sold , and money market funds , totaled $ 670,528,000 at december 31 , 2020 , an increase of $ 466,574,000 , or 229 % , from december 31 , 2019. the increase during 2020 is primarily attributed to government related stimulus activity and the resulting increase in cash deposits . at december 31 , 2020 , these assets represented 30 % of total assets . cash and cash equivalents are the company 's and its subsidiaries ' primary source of liquidity to meet future expected and unexpected loan demand , depositor withdrawals or reductions in accounts and drafts payable . secondary sources of liquidity include the investment portfolio and borrowing lines . total investment in debt securities available-for-sale at fair value was $ 357,726,000 at december 31 , 2020 , a decrease of $ 64,939,000 , or 15 % , from december 31 , 2019. these assets represented 16 % of total assets at december 31 , 2020 and were primarily state and political subdivision and treasury securities . of the total portfolio , 14 % mature in one year or less , 28 % mature after one year through five years and 58 % mature after five years .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity the discipline of liquidity management as practiced by the company seeks to ensure that funds are available to fulfill all payment obligations relating to invoices processed as they become due and meet depositor withdrawal requests and borrower credit demands while at the same time maximizing profitability . this is accomplished by balancing changes in demand for funds with changes in supply of funds . primary liquidity to meet demand is provided by short-term liquid assets that can be converted to cash , maturing securities and the ability to obtain funds from external sources . the company 's asset/liability 29 committee ( โ alco โ ) has direct oversight responsibility for the company 's liquidity position and profile . management considers both on-balance sheet and off-balance sheet items in its evaluation of liquidity . the balances of liquid assets consist of cash and cash equivalents , which include cash and due from banks , interest-bearing deposits in other financial institutions , federal funds sold , and money market funds , totaled $ 670,528,000 at december 31 , 2020 , an increase of $ 466,574,000 , or 229 % , from december 31 , 2019. the increase during 2020 is primarily attributed to government related stimulus activity and the resulting increase in cash deposits . at december 31 , 2020 , these assets represented 30 % of total assets . cash and cash equivalents are the company 's and its subsidiaries ' primary source of liquidity to meet future expected and unexpected loan demand , depositor withdrawals or reductions in accounts and drafts payable . secondary sources of liquidity include the investment portfolio and borrowing lines . total investment in debt securities available-for-sale at fair value was $ 357,726,000 at december 31 , 2020 , a decrease of $ 64,939,000 , or 15 % , from december 31 , 2019. these assets represented 16 % of total assets at december 31 , 2020 and were primarily state and political subdivision and treasury securities . of the total portfolio , 14 % mature in one year or less , 28 % mature after one year through five years and 58 % mature after five years .
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Suspicious Activity Report : economic factors that impact the company include the general level of economic activity that can affect the volume and size of invoices processed , the ability to hire and retain qualified staff , and the growth and quality of the loan portfolio . the general level of interest rates also has a significant effect on the revenue of the company . as discussed in greater detail in item 7a , โ quantitative and qualitative disclosures about market risk , โ a decline in the general level of interest rates can have a negative impact on net interest income and conversely , a rise in the general level of interest rates can have a positive impact on net interest income . the cost of fuel is another factor that has a significant impact on the transportation sector . as the price of fuel goes up or down , the company 's earnings increase or decrease with the dollar amount of transportation invoices . in 2020 , total fee revenue and other income decreased $ 9,628,000 , or 9 % , net interest income after provision for credit losses decreased $ 2,651,000 , or 6 % , total operating expenses decreased $ 5,154,000 , or 4 % , and net income decreased $ 5,228,000 , or 17 % . this performance in 2020 was negatively impacted by the covid-19 global pandemic . for payment processing services , business closures have led to a decrease in the number of transactions and dollars processed due to the decline in customers ' business activity , which resulted in a negative effect on total fee revenue and other income . additionally , the federal reserve 's actions to lower the federal funds rate adversely impacted net interest income . total operating expenses decreased as the lower number of transactions processed had a corresponding reduction in personnel expense and covid-19 limited employee travel-related expenses . the asset quality of the company 's loans and investments as of december 31 , 2020 remained strong . currently , management views cass ' major opportunity as the continued expansion of its payment and information processing service offerings and customer base . management intends to accomplish this by maintaining the company 's leadership position in applied technology , which when combined with the security and processing controls of the bank , makes cass unique in the industry . impact of new and not yet adopted accounting pronouncements in june 2016 , the fasb issued asu no . 2016-13 , financial instruments โ credit losses ( topic 326 ) : measurement of credit losses on financial instruments ( โ asu 2016-13 โ ) . the standard is effective for fiscal periods beginning after december 15 , 2019. the coronavirus aid , relief , and economic security ( โ cares โ ) act was signed into law on march 27 , 2020 and included provisions that temporarily delayed the required implementation date of asu 2016-13 to the earlier of the end of the national pandemic or december 31 , 2020. the consolidated appropriations act ( โ caa โ ) was signed into law on december 27 , 2020 and extended the deferral of required implementation of asu 2016-13 to the earlier of the first day of a company 's fiscal year that begins after the date the covid-19 national emergency comes to an end or january 1 , 2022. the company elected to defer the adoption of asu 2016-13 until december 31 , 2020 with an effective date of january 1 , 2020. the asu required measurement and recognition of expected credit losses for financial instruments held , as applicable , which include allowances for credit losses expected over the life of the portfolio , rather than incurred losses , which include allowances for current probable and estimable losses within the portfolio . under this standard , the company is required to hold an allowance equal to the expected life-of-loan losses on the loan portfolio . it also applies to off-balance sheet credit exposures 19 such as loan commitments , standby letters of credit and other similar instruments . in addition , asu 2016-13 made changes to the accounting for available-for-sale debt securities . the company adopted asu 2016-13 using a modified retrospective approach . results for annual reporting periods beginning after january 1 , 2020 are presented under asu 2016-13 while prior period amounts continue to be reported in accordance with previously applicable gaap . results for quarterly reporting periods beginning after december 31 , 2020 in the company 's form 10-q will be presented under asu 2016-13 while prior quarterly period amounts continue to be reported in accordance with previously applicable gaap . the company recognized increases of $ 723,000 in the allowance for credit losses and $ 402,000 in the reserve for unfunded commitments , with a corresponding reduction to retained earnings , net of tax , of $ 856,000. no credit loss allowance was required upon adoption for the investment securities portfolio . the following table illustrates the impact of the adoption of asu 2016-13 : replace_table_token_1_th critical accounting policies the company has prepared the consolidated financial statements in this report in accordance with the fasb accounting standards codification ( โ asc โ ) . in preparing the consolidated financial statements , management makes estimates and assumptions that affect the reported amount of assets and liabilities , disclosure of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expenses during the reporting period . these estimates have been generally accurate in the past , have been consistent and have not required any material changes . there can be no assurances that actual results will not differ from those estimates . the accounting policy that requires significant management estimates and is deemed critical to the company 's results of operations or financial position has been discussed with the audit committee of the board of directors and is described below . story_separator_special_tag federal and state regulatory agencies review the company 's methodology for maintaining the acl . these agencies may require the company to adjust the acl based on their judgments and interpretations about information available to them at the time of their examinations . the following schedule summarizes activity in the acl and the allocation of the allowance to the company 's loan categories . 26 summary of credit loss experience replace_table_token_9_th ( 1 ) although specific allocations exist , the entire allowance is available to absorb losses in any particular loan category . 27 nonperforming assets nonperforming loans are defined as loans on non-accrual status and loans 90 days or more past due but still accruing . nonperforming assets include nonperforming loans plus foreclosed real estate . troubled debt restructurings are not included in nonperforming loans unless they are on non-accrual status or past due 90 days or more . it is the policy of the company to continually monitor its loan portfolio and to discontinue the accrual of interest on any loan for which collection is not probable . subsequent payments received on such loans are applied to principal if collection of principal is not probable ; otherwise , these receipts are recorded as interest income . there was no interest on nonaccrual loans for the years ended december 31 , 2020 and 2019 , respectively . there were no nonaccrual loans or foreclosed assets at december 31 , 2020 or december 31 , 2019. the company does not have any foreign loans . the company 's loan portfolio does not include a significant amount of single family real estate mortgages , as the company does not market its services to retail customers . also , the company had no sub-prime mortgage loans or residential development loans in its portfolio in any of the years presented . the company does not have any other interest-earning assets which would have been included in nonaccrual , past due or restructured loans if such assets were loans . summary of nonperforming assets replace_table_token_10_th ( 1 ) in october 2017 , one nonaccrual loan with a balance of $ 215,000 was paid in full . in february 2016 , one nonaccrual loan with a balance of $ 2,727,000 was paid in full . operating expenses operating expenses in 2020 compared to 2019 include the following significant pre-tax components : personnel expense decreased $ 3,021,000 , or 3 % , to $ 88,062,000 as covid-19 caused a decrease in invoice processing volumes and a corresponding decrease in personnel expense . promotional expense decreased $ 1,654,000 , or 43 % , as employee travel-related expenses were limited throughout the year . income tax expense income tax expense in 2020 totaled $ 5,165,000 compared to $ 7,062,000 in 2019. when measured as a percent of pre-tax income , the company 's effective tax rate was 17 % in 2020 and 19 % in 2019. the decrease in the effective tax rate in 2020 compared to 2019 was primarily due to tax-exempt income from municipal bonds being a larger percentage of total pretax income , in addition to the eligibility of additional tax credits . investment portfolio investment portfolio changes from december 31 , 2019 to december 31 , 2020 : state and political subdivision securities decreased $ 18,473,000 , or 6 % , to $ 305,974,000. u.s. government agency securities decreased $ 45,966,000 to $ 51,752,000. the investment portfolio provides the company with a significant source of earnings , secondary source of liquidity , and mechanisms to manage the effects of changes in loan demand and interest rates . therefore , the size , asset allocation and maturity distribution of the investment portfolio will vary over time depending on management 's assessment of current and future interest rates , changes in loan demand , changes in the 28 company 's sources of funds and the economic outlook . during this period , the company purchased securities totaling $ 20,043,000. there was no single issuer of securities in the investment portfolio at december 31 , 2020 for which the aggregate amortized cost exceeded 10 % of total shareholders ' equity . replace_table_token_11_th replace_table_token_12_th ( 1 ) yields are presented on a tax-equivalent basis assuming a tax rate of 21 % for 2020 , 2019 and 2018. deposits and accounts and drafts payable noninterest-bearing demand deposits increased 41 % from december 31 , 2019 to $ 493,504,000 at december 31 , 2020. the average balances of these deposits increased 29 % in 2020 to $ 356,433,000. the increase in deposits during 2020 is primarily attributed to government related stimulus activity and the resulting increase in cash deposits . these balances are primarily maintained by commercial customers , faith-based ministries , and new payment and information processing relationships and can fluctuate on a daily basis . interest-bearing deposits increased $ 151,307,000 , or 37 % , to $ 557,352,000 at december 31 , 2020. the average balances of these deposits increased 22 % to $ 480,410,000 in 2020 from $ 394,843,000 in 2019. the increase in deposits during 2020 is primarily attributed to government related stimulus activity and the resulting increase in cash deposits . accounts and drafts payable generated by the company in its payment processing operations increased $ 151,091,000 , or 22 % , to $ 835,386,000 at december 31 , 2020. the average balance of these funds increased $ 18,403,000 , or 2 % , to $ 803,605,000 in 2020. this increase was the result of continued growth in the customer base . due to the company 's payment processing cycle , average balances are much more indicative of the underlying activity than period-end balances since point-in-time comparisons can be misleading if the comparison dates fall on different days of the week . the composition of average deposits and the average rates paid on those deposits is represented in the table entitled โ distribution of assets , liabilities and shareholders ' equity ; interest rate and
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2,367 | we also believe that having beds immediately available to our partners provides us with a distinct competitive advantage when bidding on new contracts . while we have been successful in winning contract awards to provide management services for facilities we do not own , and will continue to pursue such management contracts selectively , we believe the most significant opportunities for growth are in providing our government partners with available beds within facilities we currently own or that we develop . we also believe that owning the facilities in which we provide management services enables us to more rapidly replace business lost compared with managed-only facilities , since we can offer the same beds to new and existing customers and , with customer consent , may have more flexibility in moving our existing inmate populations to facilities with available capacity . our management contracts generally provide our customers with the right to terminate our management contracts at any time without cause . we have staff throughout the organization actively engaged in marketing our available capacity to existing and prospective customers . historically , we have been successful in substantially filling our inventory of available beds and the beds that we have constructed . filling these available beds would provide substantial growth in revenues , cash flow , and earnings per share . however , we can provide no assurance that we will be able to fill our available beds . the demand for capacity in the short-term has been affected by the budget challenges many of our government partners currently face . as a result , certain government partners have reduced the number of inmates housed in our facilities by consolidating inmate populations within their jail system , placing inmates on early parole , and or modifying criminal laws and sentencing practices . at the same time , these challenges impede our customers ' ability to construct new prison beds of their own or update older facilities , which we believe could result in further need for private sector capacity solutions in the long-term . we intend to continue to pursue build-to-suit opportunities like our 2,552-bed trousdale turner correctional center under construction in trousdale county , tennessee , and alternative solutions like the recently announced 2,400-bed south texas family residential center whereby we identified a site and lessor to provide residential housing and administrative buildings for the u.s. immigration and customs enforcement , or ice . in the long-term , however , we would like to see continued and meaningful utilization of our available capacity and better visibility from our customers before we add any additional capacity on a speculative basis . we also remain steadfast in our efforts to contain costs . approximately 62 % of our operating expenses consist of salaries and benefits . the turnover rate for correctional officers for our company , and for the corrections industry in general , remains high . we remain focused on workers ' compensation and medical benefits costs for our employees due to continued rising healthcare costs throughout the country and the uncertainty of the impact of the patient 49 protection and affordable care act on future healthcare costs . reducing these staffing costs requires a long-term strategy to control such costs , and we continue to dedicate resources to enhance our benefits , provide training and career development opportunities to our staff and attract and retain quality personnel . through ongoing company-wide initiatives , we continue to focus on efforts to contain costs and improve operating efficiencies , ensuring continuous delivery of quality services over the long-term . through the combination of our initiatives to increase our revenues by taking advantage of our available beds as well as delivering new bed capacity through new facility construction and expansion opportunities , and our strategies to contain our operating expenses , we believe we will be able to maintain our competitive advantage and continue to improve the quality services we provide to our customers at an economical price , thereby producing value to our stockholders . critical accounting policies the consolidated financial statements are prepared in conformity with accounting principles generally accepted in the united states . as such , we are required to make certain estimates , judgments and assumptions that we believe are reasonable based upon the information available . these estimates and assumptions affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period . a summary of our significant accounting policies is described in note 2 to our audited financial statements . the significant accounting policies and estimates which we believe are the most critical to aid in fully understanding and evaluating our reported financial results include the following : asset impairments . the primary risk we face for asset impairment charges , excluding goodwill , is associated with correctional facilities we own . as of december 31 , 2014 , we had $ 2.7 billion in property and equipment , including $ 119.3 million in long-lived assets , excluding equipment , at five idled core correctional facilities . we consider our core facilities to be those that were designed for adult secure correctional purposes . the impairment analyses we performed for each of these facilities excluded the net book value of equipment , as a substantial portion of the equipment is easily transferrable to other company-owned facilities without significant cost . story_separator_special_tag the following table reflects the components of revenue for the years ended december 31 , 2014 and 2013 ( in millions ) : replace_table_token_6_th 56 the $ 75.1 million , or 4.4 % , reduction in revenue associated with the operation and management of correctional and detention facilities consisted of a decrease in revenue of approximately $ 136.2 million caused by a decrease in the average daily compensated population during 2014 , partially offset by an increase of 4.9 % in average revenue per compensated man-day . the reduction in revenue was also a result of a contract adjustment by one of our federal partners , as previously disclosed in the fourth quarter of 2013 and as further described hereafter . the reduction in revenue from the operation and management of correctional and detention facilities was partially offset by an increase in lease revenue at our california city facility , as further described hereafter under ยother facility related activityย . average daily compensated population decreased 6,162 , or 8.1 % , from 2013 to 2014. the decline in average compensated population primarily resulted from the expiration of our contracts at the bay correctional facility , graceville correctional facility , and moore haven correctional facility , collectively referred to herein as the ยthree florida facilitiesย , after the florida department of management services , or dms , awarded the management of these contracts to another operator effective january 31 , 2014. the decline in average compensated population also resulted from the expiration of our contract at the idaho correctional center after the state of idaho assumed management of the facility effective july 1 , 2014 , and from our decision to terminate a contract at the north georgia detention center effective in the first quarter of 2014. combined , these five facilities contributed to a decrease in revenue of $ 76.9 million and generated net operating losses , or the operating losses from operations before interest , taxes , asset impairments , and depreciation and amortization , of $ 2.4 million during the time they were active in 2014 , and net operating income of $ 0.6 million during the year ended december 31 , 2013. business from our federal customers , including primarily the federal bureau of prisons , or bop , the united states marshals service , or usms , and ice , continues to be a significant component of our business . our federal customers generated approximately 44 % of our total revenue for both of the years ended december 31 , 2014 and 2013 , but decreased $ 11.7 million from 2013 to 2014. the reduction in federal revenues primarily resulted from the transition of our california city facility , which housed usms and ice offenders during the majority of 2013 , to a lease with the state of california , as further described under ยother facility related activityย hereafter . partially offsetting the reduction in federal revenues was an increase in revenues that resulted from our acquisition of cai in the third quarter of 2013 and the activation of the south texas family residential center in the fourth quarter of 2014 , as further described hereafter . the reduction in federal revenues also resulted from a contract adjustment by one of our federal partners previously disclosed in the fourth quarter of 2013. the contract adjustment resulted in an accrual of $ 13.0 million of revenue and an equal accrual of operating expenses during the fourth quarter of 2013 , both of which were revised to $ 9.0 million during the first quarter of 2014. because of the distorted impact these amounts would have on the per compensated man-day statistics presented in the previous table , the revenue and expenses related to these adjustments were not included in the calculations of the per compensated man-day statistics . state revenues from facilities that we manage decreased 7.8 % from 2013 to 2014 primarily as a result of the expiration of our contracts at the idaho correctional center effective july 1 , 2014 and at the three florida facilities effective january 31 , 2014 , and due to the idling of our mineral wells and marion adjustment center facilities in the third quarter of 2013. operating expenses operating expenses totaled $ 1,156.1 million and $ 1,220.4 million for the years ended december 31 , 2014 and 2013 , respectively . operating expenses consist of those expenses incurred in the operation and management of correctional and detention facilities , as well as at facilities we lease to third-party operators , and for our inmate transportation subsidiary . 57 expenses incurred in connection with the operation and management of correctional and detention facilities decreased $ 67.3 million , or 5.6 % , during 2014 compared with 2013. similar to our reduction in revenues , operating expenses decreased most notably as a result of the expiration of our contracts at the idaho correctional center effective july 1 , 2014 and at the three florida facilities effective january 31 , 2014 , and due to the idling of our mineral wells and marion adjustment center facilities in the third quarter of 2013 . the reduction in operating expenses was also a result of the aforementioned contract adjustment by one of our federal partners , also as previously disclosed in the fourth quarter of 2013. these reductions in operating expenses were partially offset by an increase in expenses related to the activation of our south texas family residential center in the fourth quarter of 2014 , as further described hereafter . fixed expenses per compensated man-day increased to $ 33.06 during the year ended december 31 , 2014 from $ 32.48 during the year ended december 31 , 2013 primarily as a result of an increase in salaries and benefits per compensated man-day of $ 0.46. the increase in salaries and benefits per compensated man-day resulted primarily from wage adjustments implemented during 2014 and a higher average rate at our newly activated south texas
| debt as of december 31 , 2014 , we had $ 350.0 million principal amount of unsecured notes outstanding with a fixed stated interest rate of 4.625 % , $ 325.0 million principal amount of unsecured notes outstanding with a fixed stated interest rate of 4.125 % , and $ 525.0 million outstanding under our revolving credit facility with a variable weighted average interest rate of 1.9 % . at december 31 , 2014 , our total weighted average effective interest rate was 3.6 % while our total weighted average maturity was 5.2 years . we also have the flexibility to issue debt or equity securities from time to time when we determine that market conditions and the opportunity to utilize the proceeds from the issuance of such securities are favorable . on march 21 , 2013 , standard & poor 's ratings services raised our corporate credit rating to ยbb+ย from ยbbย and also assigned a ยbb+ย rating to our unsecured notes . additionally , on april 5 , 2013 , standard & poor 's ratings services assigned a rating of ยbbbย to our $ 900.0 million revolving credit facility . on february 7 , 2012 , fitch ratings assigned a rating of ยbbb-ย to our revolving credit facility and ยbb+ย ratings to our unsecured debt and corporate credit . on january 31 , 2013 , fitch ratings affirmed these ratings in connection with our intention to convert to a reit and reaffirmed them on january 26 , 2015. on june 3 , 2011 , moody 's raised our senior unsecured debt rating to ยba1ย from ยba2ย and revised the outlook on our debt rating from positive to stable . on march 21 , 2013 , moody 's revised the rating outlook to positive from stable , and affirmed the senior unsecured rating at ยba1ย . facility development and capital expenditures in order to retain federal inmate populations we currently manage in the 1,154-bed san diego correctional facility , we are constructing the 1,492-bed otay mesa detention center at a site in san diego .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```debt as of december 31 , 2014 , we had $ 350.0 million principal amount of unsecured notes outstanding with a fixed stated interest rate of 4.625 % , $ 325.0 million principal amount of unsecured notes outstanding with a fixed stated interest rate of 4.125 % , and $ 525.0 million outstanding under our revolving credit facility with a variable weighted average interest rate of 1.9 % . at december 31 , 2014 , our total weighted average effective interest rate was 3.6 % while our total weighted average maturity was 5.2 years . we also have the flexibility to issue debt or equity securities from time to time when we determine that market conditions and the opportunity to utilize the proceeds from the issuance of such securities are favorable . on march 21 , 2013 , standard & poor 's ratings services raised our corporate credit rating to ยbb+ย from ยbbย and also assigned a ยbb+ย rating to our unsecured notes . additionally , on april 5 , 2013 , standard & poor 's ratings services assigned a rating of ยbbbย to our $ 900.0 million revolving credit facility . on february 7 , 2012 , fitch ratings assigned a rating of ยbbb-ย to our revolving credit facility and ยbb+ย ratings to our unsecured debt and corporate credit . on january 31 , 2013 , fitch ratings affirmed these ratings in connection with our intention to convert to a reit and reaffirmed them on january 26 , 2015. on june 3 , 2011 , moody 's raised our senior unsecured debt rating to ยba1ย from ยba2ย and revised the outlook on our debt rating from positive to stable . on march 21 , 2013 , moody 's revised the rating outlook to positive from stable , and affirmed the senior unsecured rating at ยba1ย . facility development and capital expenditures in order to retain federal inmate populations we currently manage in the 1,154-bed san diego correctional facility , we are constructing the 1,492-bed otay mesa detention center at a site in san diego .
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Suspicious Activity Report : we also believe that having beds immediately available to our partners provides us with a distinct competitive advantage when bidding on new contracts . while we have been successful in winning contract awards to provide management services for facilities we do not own , and will continue to pursue such management contracts selectively , we believe the most significant opportunities for growth are in providing our government partners with available beds within facilities we currently own or that we develop . we also believe that owning the facilities in which we provide management services enables us to more rapidly replace business lost compared with managed-only facilities , since we can offer the same beds to new and existing customers and , with customer consent , may have more flexibility in moving our existing inmate populations to facilities with available capacity . our management contracts generally provide our customers with the right to terminate our management contracts at any time without cause . we have staff throughout the organization actively engaged in marketing our available capacity to existing and prospective customers . historically , we have been successful in substantially filling our inventory of available beds and the beds that we have constructed . filling these available beds would provide substantial growth in revenues , cash flow , and earnings per share . however , we can provide no assurance that we will be able to fill our available beds . the demand for capacity in the short-term has been affected by the budget challenges many of our government partners currently face . as a result , certain government partners have reduced the number of inmates housed in our facilities by consolidating inmate populations within their jail system , placing inmates on early parole , and or modifying criminal laws and sentencing practices . at the same time , these challenges impede our customers ' ability to construct new prison beds of their own or update older facilities , which we believe could result in further need for private sector capacity solutions in the long-term . we intend to continue to pursue build-to-suit opportunities like our 2,552-bed trousdale turner correctional center under construction in trousdale county , tennessee , and alternative solutions like the recently announced 2,400-bed south texas family residential center whereby we identified a site and lessor to provide residential housing and administrative buildings for the u.s. immigration and customs enforcement , or ice . in the long-term , however , we would like to see continued and meaningful utilization of our available capacity and better visibility from our customers before we add any additional capacity on a speculative basis . we also remain steadfast in our efforts to contain costs . approximately 62 % of our operating expenses consist of salaries and benefits . the turnover rate for correctional officers for our company , and for the corrections industry in general , remains high . we remain focused on workers ' compensation and medical benefits costs for our employees due to continued rising healthcare costs throughout the country and the uncertainty of the impact of the patient 49 protection and affordable care act on future healthcare costs . reducing these staffing costs requires a long-term strategy to control such costs , and we continue to dedicate resources to enhance our benefits , provide training and career development opportunities to our staff and attract and retain quality personnel . through ongoing company-wide initiatives , we continue to focus on efforts to contain costs and improve operating efficiencies , ensuring continuous delivery of quality services over the long-term . through the combination of our initiatives to increase our revenues by taking advantage of our available beds as well as delivering new bed capacity through new facility construction and expansion opportunities , and our strategies to contain our operating expenses , we believe we will be able to maintain our competitive advantage and continue to improve the quality services we provide to our customers at an economical price , thereby producing value to our stockholders . critical accounting policies the consolidated financial statements are prepared in conformity with accounting principles generally accepted in the united states . as such , we are required to make certain estimates , judgments and assumptions that we believe are reasonable based upon the information available . these estimates and assumptions affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period . a summary of our significant accounting policies is described in note 2 to our audited financial statements . the significant accounting policies and estimates which we believe are the most critical to aid in fully understanding and evaluating our reported financial results include the following : asset impairments . the primary risk we face for asset impairment charges , excluding goodwill , is associated with correctional facilities we own . as of december 31 , 2014 , we had $ 2.7 billion in property and equipment , including $ 119.3 million in long-lived assets , excluding equipment , at five idled core correctional facilities . we consider our core facilities to be those that were designed for adult secure correctional purposes . the impairment analyses we performed for each of these facilities excluded the net book value of equipment , as a substantial portion of the equipment is easily transferrable to other company-owned facilities without significant cost . story_separator_special_tag the following table reflects the components of revenue for the years ended december 31 , 2014 and 2013 ( in millions ) : replace_table_token_6_th 56 the $ 75.1 million , or 4.4 % , reduction in revenue associated with the operation and management of correctional and detention facilities consisted of a decrease in revenue of approximately $ 136.2 million caused by a decrease in the average daily compensated population during 2014 , partially offset by an increase of 4.9 % in average revenue per compensated man-day . the reduction in revenue was also a result of a contract adjustment by one of our federal partners , as previously disclosed in the fourth quarter of 2013 and as further described hereafter . the reduction in revenue from the operation and management of correctional and detention facilities was partially offset by an increase in lease revenue at our california city facility , as further described hereafter under ยother facility related activityย . average daily compensated population decreased 6,162 , or 8.1 % , from 2013 to 2014. the decline in average compensated population primarily resulted from the expiration of our contracts at the bay correctional facility , graceville correctional facility , and moore haven correctional facility , collectively referred to herein as the ยthree florida facilitiesย , after the florida department of management services , or dms , awarded the management of these contracts to another operator effective january 31 , 2014. the decline in average compensated population also resulted from the expiration of our contract at the idaho correctional center after the state of idaho assumed management of the facility effective july 1 , 2014 , and from our decision to terminate a contract at the north georgia detention center effective in the first quarter of 2014. combined , these five facilities contributed to a decrease in revenue of $ 76.9 million and generated net operating losses , or the operating losses from operations before interest , taxes , asset impairments , and depreciation and amortization , of $ 2.4 million during the time they were active in 2014 , and net operating income of $ 0.6 million during the year ended december 31 , 2013. business from our federal customers , including primarily the federal bureau of prisons , or bop , the united states marshals service , or usms , and ice , continues to be a significant component of our business . our federal customers generated approximately 44 % of our total revenue for both of the years ended december 31 , 2014 and 2013 , but decreased $ 11.7 million from 2013 to 2014. the reduction in federal revenues primarily resulted from the transition of our california city facility , which housed usms and ice offenders during the majority of 2013 , to a lease with the state of california , as further described under ยother facility related activityย hereafter . partially offsetting the reduction in federal revenues was an increase in revenues that resulted from our acquisition of cai in the third quarter of 2013 and the activation of the south texas family residential center in the fourth quarter of 2014 , as further described hereafter . the reduction in federal revenues also resulted from a contract adjustment by one of our federal partners previously disclosed in the fourth quarter of 2013. the contract adjustment resulted in an accrual of $ 13.0 million of revenue and an equal accrual of operating expenses during the fourth quarter of 2013 , both of which were revised to $ 9.0 million during the first quarter of 2014. because of the distorted impact these amounts would have on the per compensated man-day statistics presented in the previous table , the revenue and expenses related to these adjustments were not included in the calculations of the per compensated man-day statistics . state revenues from facilities that we manage decreased 7.8 % from 2013 to 2014 primarily as a result of the expiration of our contracts at the idaho correctional center effective july 1 , 2014 and at the three florida facilities effective january 31 , 2014 , and due to the idling of our mineral wells and marion adjustment center facilities in the third quarter of 2013. operating expenses operating expenses totaled $ 1,156.1 million and $ 1,220.4 million for the years ended december 31 , 2014 and 2013 , respectively . operating expenses consist of those expenses incurred in the operation and management of correctional and detention facilities , as well as at facilities we lease to third-party operators , and for our inmate transportation subsidiary . 57 expenses incurred in connection with the operation and management of correctional and detention facilities decreased $ 67.3 million , or 5.6 % , during 2014 compared with 2013. similar to our reduction in revenues , operating expenses decreased most notably as a result of the expiration of our contracts at the idaho correctional center effective july 1 , 2014 and at the three florida facilities effective january 31 , 2014 , and due to the idling of our mineral wells and marion adjustment center facilities in the third quarter of 2013 . the reduction in operating expenses was also a result of the aforementioned contract adjustment by one of our federal partners , also as previously disclosed in the fourth quarter of 2013. these reductions in operating expenses were partially offset by an increase in expenses related to the activation of our south texas family residential center in the fourth quarter of 2014 , as further described hereafter . fixed expenses per compensated man-day increased to $ 33.06 during the year ended december 31 , 2014 from $ 32.48 during the year ended december 31 , 2013 primarily as a result of an increase in salaries and benefits per compensated man-day of $ 0.46. the increase in salaries and benefits per compensated man-day resulted primarily from wage adjustments implemented during 2014 and a higher average rate at our newly activated south texas
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2,368 | these services include program management , engineering , technical support , logistics services , and follow-on technical support for ship reactivations and transfers ; field engineering , ship repair and modernization , ship systems installations , ordnance engineering , facility operations , war reserve materials management , and it systems integration ; aircraft sustainment and maintenance services ; and management , maintenance , storage and disposal support for seized and forfeited general property programs . this group provides its services to the u.s. navy , air force , department of treasury , department of justice , bureau of alcohol , tobacco , firearms and explosives ( `` atf `` ) , and other customers . significant current work efforts for this group include ongoing assistance to the u.s. navy in executing its foreign military sales ( `` fms `` ) program for surface ships sold , leased or granted to foreign countries , various task orders under the u.s. air force contract field teams ( `` cft `` ) program , and management of department of treasury and atf seized and forfeited general property programs ( `` seized asset programs `` ) . -19- it , energy and management consulting group - our it , energy and management consulting group consists of our wholly owned subsidiaries energetics incorporated ( `` energetics `` ) , g & b solutions , inc. ( `` g & b `` ) , and akimeka , llc ( `` akimeka `` ) . this group provides technical and consulting services primarily to various dod and civilian government agencies , including the u.s. departments of defense , energy , homeland security , commerce , interior , labor , agriculture and housing and urban development ; the social security administration ; the pension benefit guaranty corporation ; the national institutes of health ; customers in the military health system ; and other government agencies and commercial clients . energetics provides technical , policy , business , and management support in areas of energy modernization , clean and efficient energy , climate change mitigation , infrastructure protection , and measurement technology . effective january 1 , 2013 , the businesses of g & b and akimeka were combined , with integration expected to be substantially complete in late 2013. the combined g & b and akimeka businesses offer solutions in fields that include medical logistics , medical command and control , e-health , information assurance , public safety , enterprise architecture development , information assurance/business continuity , program and portfolio management , network it services , systems design and integration , quality assurance services , and product and process improvement services . supply chain management group โ our supply chain management group provides sourcing , acquisition , scheduling , transportation , shipping , logistics , data management , and other services to assist our clients with supply chain management efforts . this group is comprised of our wheeler bros. , inc. ( `` wbi `` ) subsidiary , acquired in june 2011 , and other vse supply chain management work . significant current work efforts for this group include wbi 's ongoing managed inventory program ( `` mip `` ) for usps and direct sales to other clients . replace_table_token_6_th management outlook we continue to improve our operating margins and maintain operating income levels in a very challenging environment that has caused our revenue levels to decline . we have accomplished this operating margin and operating income performance by transitioning our business away from lower margin revenue that was predominantly driven by pass-through work to more profitable lines of business . while most of the declines in our programs that have experienced revenue losses in recent years have now run their course , our industry will continue to face challenges to future revenue levels caused by changing government budgeting and spending priorities , initiatives , and processes . we believe that we are positioned to withstand these challenges in the coming year . we have several key programs centered on our legacy systems and equipment sustainment heritage that we expect to sustain our business in the coming years . our vehicle and equipment refurbishment program for the u.s. army reserve and the u.s. army remains a strong part of our business and we will target additional client locations and other clients to expand this program . while the contract supporting the u. s. army reserve work is being re-competed again through various contract vehicles with an expected award date in 2013 , we are optimistic that we will continue our long time service on this program . our fms program revenues for the past two years have been generated primarily from follow on technical services work with very little ship reactivation and transfer work . our win of the protested award of the contract supporting this work in early 2012 gives us potential contract coverage of up to $ 1.5 billion over a five-year period . this level of contract coverage , combined with the eligibility , upon approval , of multiple u. s. navy ships for transfer to foreign government clients , is expected to present us with opportunity for revenue growth from this program in future years . we have delivered a vehicle for evaluation under our usps contract to develop a more fuel efficient repowered gasoline delivery vehicle that will provide usps with increased fuel efficiency , enhanced environmental standards , and an extended service life of its vehicle fleet . the repowered vehicle uses an engine designed by our wbi subsidiary specifically for the usps vehicle fleet . if usps approves the engine and we successfully move this effort to the production stage , we expect to generate an additional future revenue stream . we can not determine with certainty if or when production will begin . wbi 's supply chain and inventory management competencies also provide us opportunities to further diversify our customer base to other markets , including commercial work . story_separator_special_tag the decrease in revenues for 2012 was primarily attributable to a decline of approximately $ 17 million in pass-through work provided on engineering and technical services task orders , decreases on our fms program of approximately $ 12 million , and a decline of approximately $ 7 million on our cft program work . revenues for our international group decreased approximately $ 55 million or 21 % for 2011 , as compared to the prior year . the decrease in revenues for 2011 was primarily attributable to decreases on the fms program of approximately $ 41 million and the seized asset program of approximately $ 12 million . this group 's decrease is due in large part to a reduction in work performed in egypt and funding and work order delays associated with the re-compete , award and subsequent protests of these contracts . operating income for our international group increased by approximately $ 731 thousand or 14 % for 2012 , as compared to the prior year . profit margins in this group can vary due to fluctuations in contract activity and the timing of contract award fees associated with our fms program . we recognized four award fees in our operating results in 2012 and two award fees in 2011 on this program . because we had not received contractual notification as of december 31 , 2011 for an estimated $ 1.1 million award fee for work performed in 2011 , revenue and income for this award fee was recognized in 2012 instead of 2011. this effectively decreased 2011 operating income and increased 2012 operating income as compared to the typical pattern associated with this program , and was the primary reason for the increase in operating income for this group in 2012. operating income was reduced by a charge taken in 2012 of approximately $ 1 million associated with the lease of warehouse facilities for our seized asset programs . operating income for our international group decreased by approximately $ 4.3 million or 44 % for 2011 , as compared to the prior year . the decline in operating income is primarily due to differences in the amount and timing of fee income recognized on the seized asset programs . under the cost plus incentive fee contract to support the treasury seized asset program that ended september 30 , 2010 , we recognized incentive fee of approximately $ 3.2 million in the third quarter of 2010 that was based on a twelve-month assessment ending september 30 , 2010. the interim contract under which we performed work in 2011 is a cost plus fixed fee contract for which a lesser fee is earned and recognized as work is performed . also , because we had not received contractual notification as of december 31 , 2011 for an estimated $ 1.1 million award fee for work performed in 2011 on our fms program , our fourth quarter operating results do not include this award fee , which was deferred into 2012. a loss of $ 750 thousand associated with a work share agreement with a subcontractor also contributed to the decline in operating income . profit margins in this group can vary due to fluctuations in contract activity and the timing of contract award fees associated with the fms program . -26- our international group realized interest income from cash invested in 2012 and 2011 and incurred net interest expense in 2010. interest income and expense will vary from year to year due to changes in the level of work performed and to normal fluctuations in our billing and collections cycle . it , energy and management consulting group results the results of operations for our it , energy and management consulting group are ( in thousands ) : replace_table_token_13_th revenues for our it , energy and management consulting group decreased approximately $ 13 million or 12 % for 2012 , as compared to the prior year . the decrease in revenues was due primarily to a general decline in services ordered by clients . operating income for this segment decreased approximately $ 551 thousand , or 4 % for 2012 , as compared to the prior year . the year over year changes in operating income are attributable to a decrease in profits associated with the revenue declines and a charge for impairment of acquisition related intangible assets for akimeka , offset by increases to operating income from reductions in the accrued earn-out obligations associated with our acquisition of akimeka . operating income increases from reductions of our accrued earn-out liability for akimeka were approximately $ 5.1 million for 2012 , compared to approximately $ 2.7 million for the prior year . the charge for impairment of acquisition related intangible assets for akimeka for 2012 was approximately $ 1 million , compared to no impairment in the prior year . revenues for our it , energy and management consulting group increased by approximately $ 12 million or 13 % for 2011 , as compared to the prior year . operating income for this segment increased by approximately $ 2.1 million or 21 % for 2011 , as compared to the prior year . akimeka operating results are included in this segment beginning in august 2010. the inclusion of akimeka operating results in this segment for a full year in 2011 and a partial year in 2010 is the primary reason for changes in this segment 's revenues and operating income in 2011 as compared to 2010. full year revenues for akimeka in 2011 were approximately $ 29.6 million compared to partial year revenues in 2010 of approximately $ 12 million . full year operating income for akimeka in 2011 was approximately $ 3.5 million compared to partial year operating income in 2010 of approximately $ 1.6 million . energetics revenues were substantially unchanged and g & b revenues declined approximately $ 4.7 million for 2011. our it , energy and management consulting group realized interest income from cash
| cash flows cash and cash equivalents increased by approximately $ 1 million during 2012. cash provided by operating activities increased by approximately $ 25 million in 2012 as compared to 2011. the change is attributable to an increase of approximately $ 14 million due to changes in the levels of operating assets and liabilities ; an increase of approximately $ 10 million in depreciation and amortization and other non-cash operating activities , including impairments of goodwill and other intangible assets of approximately $ 9 million ; and an increase of approximately $ 742 thousand in cash provided by net income . our largest asset is our accounts receivable and our largest liability is our accounts payable . a significant portion of our accounts receivable and accounts payable result from the use of subcontractors to perform work on our contracts and from the purchase of materials to fulfill our contract requirements . accordingly , our levels of accounts receivable and accounts payable may fluctuate depending on the timing of the government services ordered , government funding delays , the timing of billings received from subcontractors and materials vendors , and the timing of payments received from government customers in payment of these services . such timing differences have the potential to cause significant increases and decreases in our accounts receivable and accounts payable in short time periods .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows cash and cash equivalents increased by approximately $ 1 million during 2012. cash provided by operating activities increased by approximately $ 25 million in 2012 as compared to 2011. the change is attributable to an increase of approximately $ 14 million due to changes in the levels of operating assets and liabilities ; an increase of approximately $ 10 million in depreciation and amortization and other non-cash operating activities , including impairments of goodwill and other intangible assets of approximately $ 9 million ; and an increase of approximately $ 742 thousand in cash provided by net income . our largest asset is our accounts receivable and our largest liability is our accounts payable . a significant portion of our accounts receivable and accounts payable result from the use of subcontractors to perform work on our contracts and from the purchase of materials to fulfill our contract requirements . accordingly , our levels of accounts receivable and accounts payable may fluctuate depending on the timing of the government services ordered , government funding delays , the timing of billings received from subcontractors and materials vendors , and the timing of payments received from government customers in payment of these services . such timing differences have the potential to cause significant increases and decreases in our accounts receivable and accounts payable in short time periods .
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Suspicious Activity Report : these services include program management , engineering , technical support , logistics services , and follow-on technical support for ship reactivations and transfers ; field engineering , ship repair and modernization , ship systems installations , ordnance engineering , facility operations , war reserve materials management , and it systems integration ; aircraft sustainment and maintenance services ; and management , maintenance , storage and disposal support for seized and forfeited general property programs . this group provides its services to the u.s. navy , air force , department of treasury , department of justice , bureau of alcohol , tobacco , firearms and explosives ( `` atf `` ) , and other customers . significant current work efforts for this group include ongoing assistance to the u.s. navy in executing its foreign military sales ( `` fms `` ) program for surface ships sold , leased or granted to foreign countries , various task orders under the u.s. air force contract field teams ( `` cft `` ) program , and management of department of treasury and atf seized and forfeited general property programs ( `` seized asset programs `` ) . -19- it , energy and management consulting group - our it , energy and management consulting group consists of our wholly owned subsidiaries energetics incorporated ( `` energetics `` ) , g & b solutions , inc. ( `` g & b `` ) , and akimeka , llc ( `` akimeka `` ) . this group provides technical and consulting services primarily to various dod and civilian government agencies , including the u.s. departments of defense , energy , homeland security , commerce , interior , labor , agriculture and housing and urban development ; the social security administration ; the pension benefit guaranty corporation ; the national institutes of health ; customers in the military health system ; and other government agencies and commercial clients . energetics provides technical , policy , business , and management support in areas of energy modernization , clean and efficient energy , climate change mitigation , infrastructure protection , and measurement technology . effective january 1 , 2013 , the businesses of g & b and akimeka were combined , with integration expected to be substantially complete in late 2013. the combined g & b and akimeka businesses offer solutions in fields that include medical logistics , medical command and control , e-health , information assurance , public safety , enterprise architecture development , information assurance/business continuity , program and portfolio management , network it services , systems design and integration , quality assurance services , and product and process improvement services . supply chain management group โ our supply chain management group provides sourcing , acquisition , scheduling , transportation , shipping , logistics , data management , and other services to assist our clients with supply chain management efforts . this group is comprised of our wheeler bros. , inc. ( `` wbi `` ) subsidiary , acquired in june 2011 , and other vse supply chain management work . significant current work efforts for this group include wbi 's ongoing managed inventory program ( `` mip `` ) for usps and direct sales to other clients . replace_table_token_6_th management outlook we continue to improve our operating margins and maintain operating income levels in a very challenging environment that has caused our revenue levels to decline . we have accomplished this operating margin and operating income performance by transitioning our business away from lower margin revenue that was predominantly driven by pass-through work to more profitable lines of business . while most of the declines in our programs that have experienced revenue losses in recent years have now run their course , our industry will continue to face challenges to future revenue levels caused by changing government budgeting and spending priorities , initiatives , and processes . we believe that we are positioned to withstand these challenges in the coming year . we have several key programs centered on our legacy systems and equipment sustainment heritage that we expect to sustain our business in the coming years . our vehicle and equipment refurbishment program for the u.s. army reserve and the u.s. army remains a strong part of our business and we will target additional client locations and other clients to expand this program . while the contract supporting the u. s. army reserve work is being re-competed again through various contract vehicles with an expected award date in 2013 , we are optimistic that we will continue our long time service on this program . our fms program revenues for the past two years have been generated primarily from follow on technical services work with very little ship reactivation and transfer work . our win of the protested award of the contract supporting this work in early 2012 gives us potential contract coverage of up to $ 1.5 billion over a five-year period . this level of contract coverage , combined with the eligibility , upon approval , of multiple u. s. navy ships for transfer to foreign government clients , is expected to present us with opportunity for revenue growth from this program in future years . we have delivered a vehicle for evaluation under our usps contract to develop a more fuel efficient repowered gasoline delivery vehicle that will provide usps with increased fuel efficiency , enhanced environmental standards , and an extended service life of its vehicle fleet . the repowered vehicle uses an engine designed by our wbi subsidiary specifically for the usps vehicle fleet . if usps approves the engine and we successfully move this effort to the production stage , we expect to generate an additional future revenue stream . we can not determine with certainty if or when production will begin . wbi 's supply chain and inventory management competencies also provide us opportunities to further diversify our customer base to other markets , including commercial work . story_separator_special_tag the decrease in revenues for 2012 was primarily attributable to a decline of approximately $ 17 million in pass-through work provided on engineering and technical services task orders , decreases on our fms program of approximately $ 12 million , and a decline of approximately $ 7 million on our cft program work . revenues for our international group decreased approximately $ 55 million or 21 % for 2011 , as compared to the prior year . the decrease in revenues for 2011 was primarily attributable to decreases on the fms program of approximately $ 41 million and the seized asset program of approximately $ 12 million . this group 's decrease is due in large part to a reduction in work performed in egypt and funding and work order delays associated with the re-compete , award and subsequent protests of these contracts . operating income for our international group increased by approximately $ 731 thousand or 14 % for 2012 , as compared to the prior year . profit margins in this group can vary due to fluctuations in contract activity and the timing of contract award fees associated with our fms program . we recognized four award fees in our operating results in 2012 and two award fees in 2011 on this program . because we had not received contractual notification as of december 31 , 2011 for an estimated $ 1.1 million award fee for work performed in 2011 , revenue and income for this award fee was recognized in 2012 instead of 2011. this effectively decreased 2011 operating income and increased 2012 operating income as compared to the typical pattern associated with this program , and was the primary reason for the increase in operating income for this group in 2012. operating income was reduced by a charge taken in 2012 of approximately $ 1 million associated with the lease of warehouse facilities for our seized asset programs . operating income for our international group decreased by approximately $ 4.3 million or 44 % for 2011 , as compared to the prior year . the decline in operating income is primarily due to differences in the amount and timing of fee income recognized on the seized asset programs . under the cost plus incentive fee contract to support the treasury seized asset program that ended september 30 , 2010 , we recognized incentive fee of approximately $ 3.2 million in the third quarter of 2010 that was based on a twelve-month assessment ending september 30 , 2010. the interim contract under which we performed work in 2011 is a cost plus fixed fee contract for which a lesser fee is earned and recognized as work is performed . also , because we had not received contractual notification as of december 31 , 2011 for an estimated $ 1.1 million award fee for work performed in 2011 on our fms program , our fourth quarter operating results do not include this award fee , which was deferred into 2012. a loss of $ 750 thousand associated with a work share agreement with a subcontractor also contributed to the decline in operating income . profit margins in this group can vary due to fluctuations in contract activity and the timing of contract award fees associated with the fms program . -26- our international group realized interest income from cash invested in 2012 and 2011 and incurred net interest expense in 2010. interest income and expense will vary from year to year due to changes in the level of work performed and to normal fluctuations in our billing and collections cycle . it , energy and management consulting group results the results of operations for our it , energy and management consulting group are ( in thousands ) : replace_table_token_13_th revenues for our it , energy and management consulting group decreased approximately $ 13 million or 12 % for 2012 , as compared to the prior year . the decrease in revenues was due primarily to a general decline in services ordered by clients . operating income for this segment decreased approximately $ 551 thousand , or 4 % for 2012 , as compared to the prior year . the year over year changes in operating income are attributable to a decrease in profits associated with the revenue declines and a charge for impairment of acquisition related intangible assets for akimeka , offset by increases to operating income from reductions in the accrued earn-out obligations associated with our acquisition of akimeka . operating income increases from reductions of our accrued earn-out liability for akimeka were approximately $ 5.1 million for 2012 , compared to approximately $ 2.7 million for the prior year . the charge for impairment of acquisition related intangible assets for akimeka for 2012 was approximately $ 1 million , compared to no impairment in the prior year . revenues for our it , energy and management consulting group increased by approximately $ 12 million or 13 % for 2011 , as compared to the prior year . operating income for this segment increased by approximately $ 2.1 million or 21 % for 2011 , as compared to the prior year . akimeka operating results are included in this segment beginning in august 2010. the inclusion of akimeka operating results in this segment for a full year in 2011 and a partial year in 2010 is the primary reason for changes in this segment 's revenues and operating income in 2011 as compared to 2010. full year revenues for akimeka in 2011 were approximately $ 29.6 million compared to partial year revenues in 2010 of approximately $ 12 million . full year operating income for akimeka in 2011 was approximately $ 3.5 million compared to partial year operating income in 2010 of approximately $ 1.6 million . energetics revenues were substantially unchanged and g & b revenues declined approximately $ 4.7 million for 2011. our it , energy and management consulting group realized interest income from cash
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2,369 | our pipeline consists of three proprietary product candidates : fx006 , a sustained-release , intra-articular steroid ; fx007 , a trka receptor antagonist for post-operative pain ; and fx005 , a sustained-release intra-articular p38 map kinase inhibitor . we retain the exclusive worldwide rights to our product candidates . we were incorporated in delaware in november 2007 , and to date we have devoted substantially all of our resources to our development efforts relating to our product candidates , including conducting clinical trials with our product candidates , providing general and administrative support for these operations and protecting our intellectual property . we do not have any products approved for sale and have not generated any revenue from product sales . from our inception through december 31 , 2014 , we have funded our operations primarily through the sale of our common stock and convertible preferred stock and , to a lesser extent , debt financing . from our inception through december 31 , 2014 , we have raised $ 244.4 million from such transactions , including from our initial and follow-on public offerings . until such time , if ever , as we can generate substantial product revenue , we expect to finance our cash needs through a combination of equity offerings , debt financings , government or third-party funding , and licensing or collaboration arrangements . we have incurred net losses in each year since our inception in 2007. our net losses were $ 27.3 million , $ 18.2 million , and $ 15.0 million for the years ended december 31 , 2014 , 2013 and 2012 , respectively . as of december 31 , 2014 , we had an accumulated deficit of $ 93.5 million . substantially all of our net losses resulted from costs incurred in connection with our development programs and from general and administrative expenses associated with our operations . we expect to continue to incur significant expenses and increasing operating losses for the foreseeable future . we anticipate that our expenses will increase substantially in connection with our ongoing activities , as we : continue the development of our lead product candidate , fx006 , including our on-going and future clinical trials ; seek to obtain regulatory approvals for fx006 ; continue to scale-up manufacturing activities including the supply of clinical trial materials and registration batches ; prepare for the potential launch and commercialization of fx006 , if approved ; 68 establish a sales and marketing infrastructure for the commercialization of fx006 , if approved ; expand our development activities and advance additional product candidates ; maintain , expand and protect our intellectual property portfolio ; and add operational , financial and management information systems and personnel , including personnel to support our product development and commercialization efforts and operations as a public company . we do not expect to generate revenue from product sales unless and until we successfully complete development and obtain marketing approval for one or more of our product candidates , which we expect will take a number of years and is subject to significant uncertainty . accordingly , we anticipate that we will need to raise additional capital prior to commercialization of fx006 and completing clinical development of any of our other product candidates . until such time that we can generate substantial revenue from product sales , if ever , we expect to finance our operating activities through a combination of equity offerings , debt financings , government or other third-party funding and collaborations , and licensing arrangements . however , we may be unable to raise additional funds or enter into such arrangements when needed on favorable terms , or at all , which would have a negative impact on our financial condition and could force us to delay , limit , reduce or terminate our development programs or commercialization efforts or grant to others , rights to develop or market product candidates that we would otherwise prefer to develop and market ourselves . failure to receive additional funding could cause us to cease operations , in part or in full . financial overview revenue we have not generated any revenue since our inception . we do not have any products approved for sale , and we do not expect to generate any revenue from the sale of products in the near future . in the future , if our research and development efforts result in clinical success and regulatory approval , we may generate revenue from the sales of our product candidates , or we may generate revenue from grant income or from licensing rights to our product candidates to third parties . if we fail to complete the development of fx006 or our other product candidates , our ability to generate future revenue , and our results of operations and financial position will be adversely affected . operating expenses the majority of our operating expenses to date have been related to in-licensing certain of our product candidates and the development activities of fx006 , fx005 , and fx007 . research and development expenses . since our inception , we have focused our resources on our development activities , including : preclinical studies , clinical trials and chemistry manufacturing and controls , or cmc . our development expenses consist primarily of : expenses incurred under agreements with consultants , contract research organizations , or cros , and investigative sites that conduct our preclinical studies and clinical trials ; costs of acquiring , developing and manufacturing clinical trial materials ; personnel costs , including salaries , benefits , stock-based compensation and travel expenses for employees engaged in scientific research and development functions ; costs related to compliance with regulatory requirements ; expenses related to the in-license of certain technologies from pharmaceutical companies ; and allocated expenses for rent andmaintenance of facilities , insurance and other general overhead . story_separator_special_tag we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need additional capital to fund our operations , which we may seek to obtain through one or more equity offerings , debt financings , government or other third-party funding , and licensing or collaboration arrangements . 75 since our inception through february 2014 , we have funded our operations through the receipt of funds from the private placement of $ 80.0 million of equity and debt securities . on february 18 , 2014 , we completed the initial public offering of our common stock , which resulted in net proceeds to us of approximately $ 67.2 million , after deducting underwriting discounts , commissions and offering costs . an additional follow-on offering of our common stock was completed on december 17 , 2014 , which resulted in net proceeds to us of approximately $ 92.2 million after deducting underwriting discounts , commissions , and offering costs paid by the company . as of december 31 , 2014 , we had cash and cash equivalents of $ 103.1 million and marketable securities of $ 48.5 million . we anticipate that our existing cash , cash equivalents and marketable securities will fund our operations for at least the next twelve months . cash in excess of immediate requirements is invested in accordance with our investment policy , primarily with a view to capital preservation . the following table shows a summary of our cash flows for each of the years ended december 31 , 2014 , 2013 and 2012 : replace_table_token_11_th story_separator_special_tag h= `` 4 % `` > ( 2 ) represents the contractually required payments under our operating lease obligations in existence as of december 31 , 2014 in accordance with the required payment schedule . no assumptions were made with respect to renewing the lease terms at the expiration date of their initial terms . ( 3 ) milestone payments of up to $ 184.0 million will become due under our agreements with astrazeneca as we achieve regulatory and commercial milestones . in addition , we will pay tiered royalties on product sales . we have not included these amounts in this table as we can not estimate or predict when , or if , those amounts will become due . the table above reflects only payment obligations that are fixed or determinable . we enter into contracts in the normal course of business with cros for clinical trials , with contract manufacturers for clinical supply manufacturing , and with vendors for preclinical research studies , research supplies and other services and products for operating purposes . these contracts generally provide for termination on notice , and therefore we believe that our non-cancelable obligations under these agreements are not material . off-balance sheet arrangements during the periods presented , we did not have , nor do we currently have , any off-balance sheet arrangements that are reasonably likely to have a current or future material effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources . recent accounting pronouncements in june 2014 , the financial accounting standard board , or fasb , issued amended accounting guidance for development stage entities . the amendment eliminates certain financial reporting requirements for development stage entities , specifically , the presentation of inception-to-date information , the development stage entity label on the financial statements , the description of the activities in which the entity is engaged , and disclosure in the first year that the entity is no longer a development stage entity that it had been in prior years . in addition , the amendment clarifies guidance regarding entities that have not commenced planned principal operations . the amendment is effective for annual reporting periods beginning after december 15 , 2014 , and interim periods therein with early adoption permitted . the company elected to early adopt this standard in the period ended june 30 , 2014. other than a change in presentation , the adoption of this guidance did not have an impact on the company 's financial statements . in may 2014 , the fasb issued guidance which supersedes all existing revenue recognition requirements , including most industry-specific guidance . the new standard requires a company to recognize revenue when it 78 transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services . this guidance will be effective prospectively for fiscal years , and interim periods within those years , beginning after december 15 , 2016 , and early adoption is not permitted . the company is currently evaluating the potential impact that the adoption of this guidance and the related transition guidance may have on the company 's financial statements . in august 2014 , the fasb issued accounting guidance for the disclosure of uncertainties related to an entity 's ability to continue as a going concern . the new standard requires management to perform an assessment at interim and annual periods as to the entity 's ability to continue as a going concern and provides specific disclosure guidance . this guidance will be effective for fiscal years , and interim periods within those years , beginning after december 15 , 2016 and early adoption is permitted . the company is currently evaluating the potential impact that the adoption of this guidance may have on the company 's financial statements . jobs act on april 5 , 2012 , the jobs act was enacted . section 107 of the jobs act provides that an ยemerging growth companyย can take advantage of the extended transition period provided in section 7 ( a ) ( 2 ) ( b ) of the securities act for complying with new or revised accounting standards . in other words , an
| net cash used in operating activities operating activities used $ 23.1 million of cash in 2014. the cash used in operating activities resulted primarily from our net loss of $ 27.3 million for the period , offset by non-cash charges of $ 3.0 million and cash provided by changes in our operating assets and liabilities of $ 1.2 million . our non-cash charges consisted of $ 0.5 million related to depreciation expense and amortization of premiums on marketable securities and $ 2.5 million of stock-based compensation expense . net cash provided by changes in our operating assets and liabilities consisted primarily of a $ 0.5 million increase in our accounts payable and a $ 1.0 million increase in accrued expenses and other current liabilities , offset by a $ 0.3 million increase in our prepaid expenses and other current assets . the increase in accounts payable was primarily due to the timing of our payments to manufacturers , cros and legal counsel . the $ 1.0 million increase in accrued expenses and other current liabilities was primarily attributable to higher clinical research and contract manufacturing expenses . the increase in prepaid expenses and other current assets was primarily due to higher prepaid insurance costs due to becoming a publicly-traded company . operating activities used $ 16.2 million of cash in 2013. the cash used in operating activities resulted primarily from our net loss of $ 18.2 million for the period , offset by non-cash charges of $ 1.3 million and cash provided by changes in our operating assets and liabilities of $ 0.7 million . our non-cash charges consisted of $ 0.2 million related to depreciation expense and amortization of premiums on marketable securities and $ 1.0 million of stock-based compensation expense . net cash provided by changes in our operating assets and liabilities consisted primarily of a $ 0.5 million increase in our accounts payable and a $ 0.3 million decrease in our prepaid expenses and other current assets partially offset by a $ 0.1 million decrease in accrued expenses and other current liabilities .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash used in operating activities operating activities used $ 23.1 million of cash in 2014. the cash used in operating activities resulted primarily from our net loss of $ 27.3 million for the period , offset by non-cash charges of $ 3.0 million and cash provided by changes in our operating assets and liabilities of $ 1.2 million . our non-cash charges consisted of $ 0.5 million related to depreciation expense and amortization of premiums on marketable securities and $ 2.5 million of stock-based compensation expense . net cash provided by changes in our operating assets and liabilities consisted primarily of a $ 0.5 million increase in our accounts payable and a $ 1.0 million increase in accrued expenses and other current liabilities , offset by a $ 0.3 million increase in our prepaid expenses and other current assets . the increase in accounts payable was primarily due to the timing of our payments to manufacturers , cros and legal counsel . the $ 1.0 million increase in accrued expenses and other current liabilities was primarily attributable to higher clinical research and contract manufacturing expenses . the increase in prepaid expenses and other current assets was primarily due to higher prepaid insurance costs due to becoming a publicly-traded company . operating activities used $ 16.2 million of cash in 2013. the cash used in operating activities resulted primarily from our net loss of $ 18.2 million for the period , offset by non-cash charges of $ 1.3 million and cash provided by changes in our operating assets and liabilities of $ 0.7 million . our non-cash charges consisted of $ 0.2 million related to depreciation expense and amortization of premiums on marketable securities and $ 1.0 million of stock-based compensation expense . net cash provided by changes in our operating assets and liabilities consisted primarily of a $ 0.5 million increase in our accounts payable and a $ 0.3 million decrease in our prepaid expenses and other current assets partially offset by a $ 0.1 million decrease in accrued expenses and other current liabilities .
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Suspicious Activity Report : our pipeline consists of three proprietary product candidates : fx006 , a sustained-release , intra-articular steroid ; fx007 , a trka receptor antagonist for post-operative pain ; and fx005 , a sustained-release intra-articular p38 map kinase inhibitor . we retain the exclusive worldwide rights to our product candidates . we were incorporated in delaware in november 2007 , and to date we have devoted substantially all of our resources to our development efforts relating to our product candidates , including conducting clinical trials with our product candidates , providing general and administrative support for these operations and protecting our intellectual property . we do not have any products approved for sale and have not generated any revenue from product sales . from our inception through december 31 , 2014 , we have funded our operations primarily through the sale of our common stock and convertible preferred stock and , to a lesser extent , debt financing . from our inception through december 31 , 2014 , we have raised $ 244.4 million from such transactions , including from our initial and follow-on public offerings . until such time , if ever , as we can generate substantial product revenue , we expect to finance our cash needs through a combination of equity offerings , debt financings , government or third-party funding , and licensing or collaboration arrangements . we have incurred net losses in each year since our inception in 2007. our net losses were $ 27.3 million , $ 18.2 million , and $ 15.0 million for the years ended december 31 , 2014 , 2013 and 2012 , respectively . as of december 31 , 2014 , we had an accumulated deficit of $ 93.5 million . substantially all of our net losses resulted from costs incurred in connection with our development programs and from general and administrative expenses associated with our operations . we expect to continue to incur significant expenses and increasing operating losses for the foreseeable future . we anticipate that our expenses will increase substantially in connection with our ongoing activities , as we : continue the development of our lead product candidate , fx006 , including our on-going and future clinical trials ; seek to obtain regulatory approvals for fx006 ; continue to scale-up manufacturing activities including the supply of clinical trial materials and registration batches ; prepare for the potential launch and commercialization of fx006 , if approved ; 68 establish a sales and marketing infrastructure for the commercialization of fx006 , if approved ; expand our development activities and advance additional product candidates ; maintain , expand and protect our intellectual property portfolio ; and add operational , financial and management information systems and personnel , including personnel to support our product development and commercialization efforts and operations as a public company . we do not expect to generate revenue from product sales unless and until we successfully complete development and obtain marketing approval for one or more of our product candidates , which we expect will take a number of years and is subject to significant uncertainty . accordingly , we anticipate that we will need to raise additional capital prior to commercialization of fx006 and completing clinical development of any of our other product candidates . until such time that we can generate substantial revenue from product sales , if ever , we expect to finance our operating activities through a combination of equity offerings , debt financings , government or other third-party funding and collaborations , and licensing arrangements . however , we may be unable to raise additional funds or enter into such arrangements when needed on favorable terms , or at all , which would have a negative impact on our financial condition and could force us to delay , limit , reduce or terminate our development programs or commercialization efforts or grant to others , rights to develop or market product candidates that we would otherwise prefer to develop and market ourselves . failure to receive additional funding could cause us to cease operations , in part or in full . financial overview revenue we have not generated any revenue since our inception . we do not have any products approved for sale , and we do not expect to generate any revenue from the sale of products in the near future . in the future , if our research and development efforts result in clinical success and regulatory approval , we may generate revenue from the sales of our product candidates , or we may generate revenue from grant income or from licensing rights to our product candidates to third parties . if we fail to complete the development of fx006 or our other product candidates , our ability to generate future revenue , and our results of operations and financial position will be adversely affected . operating expenses the majority of our operating expenses to date have been related to in-licensing certain of our product candidates and the development activities of fx006 , fx005 , and fx007 . research and development expenses . since our inception , we have focused our resources on our development activities , including : preclinical studies , clinical trials and chemistry manufacturing and controls , or cmc . our development expenses consist primarily of : expenses incurred under agreements with consultants , contract research organizations , or cros , and investigative sites that conduct our preclinical studies and clinical trials ; costs of acquiring , developing and manufacturing clinical trial materials ; personnel costs , including salaries , benefits , stock-based compensation and travel expenses for employees engaged in scientific research and development functions ; costs related to compliance with regulatory requirements ; expenses related to the in-license of certain technologies from pharmaceutical companies ; and allocated expenses for rent andmaintenance of facilities , insurance and other general overhead . story_separator_special_tag we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need additional capital to fund our operations , which we may seek to obtain through one or more equity offerings , debt financings , government or other third-party funding , and licensing or collaboration arrangements . 75 since our inception through february 2014 , we have funded our operations through the receipt of funds from the private placement of $ 80.0 million of equity and debt securities . on february 18 , 2014 , we completed the initial public offering of our common stock , which resulted in net proceeds to us of approximately $ 67.2 million , after deducting underwriting discounts , commissions and offering costs . an additional follow-on offering of our common stock was completed on december 17 , 2014 , which resulted in net proceeds to us of approximately $ 92.2 million after deducting underwriting discounts , commissions , and offering costs paid by the company . as of december 31 , 2014 , we had cash and cash equivalents of $ 103.1 million and marketable securities of $ 48.5 million . we anticipate that our existing cash , cash equivalents and marketable securities will fund our operations for at least the next twelve months . cash in excess of immediate requirements is invested in accordance with our investment policy , primarily with a view to capital preservation . the following table shows a summary of our cash flows for each of the years ended december 31 , 2014 , 2013 and 2012 : replace_table_token_11_th story_separator_special_tag h= `` 4 % `` > ( 2 ) represents the contractually required payments under our operating lease obligations in existence as of december 31 , 2014 in accordance with the required payment schedule . no assumptions were made with respect to renewing the lease terms at the expiration date of their initial terms . ( 3 ) milestone payments of up to $ 184.0 million will become due under our agreements with astrazeneca as we achieve regulatory and commercial milestones . in addition , we will pay tiered royalties on product sales . we have not included these amounts in this table as we can not estimate or predict when , or if , those amounts will become due . the table above reflects only payment obligations that are fixed or determinable . we enter into contracts in the normal course of business with cros for clinical trials , with contract manufacturers for clinical supply manufacturing , and with vendors for preclinical research studies , research supplies and other services and products for operating purposes . these contracts generally provide for termination on notice , and therefore we believe that our non-cancelable obligations under these agreements are not material . off-balance sheet arrangements during the periods presented , we did not have , nor do we currently have , any off-balance sheet arrangements that are reasonably likely to have a current or future material effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources . recent accounting pronouncements in june 2014 , the financial accounting standard board , or fasb , issued amended accounting guidance for development stage entities . the amendment eliminates certain financial reporting requirements for development stage entities , specifically , the presentation of inception-to-date information , the development stage entity label on the financial statements , the description of the activities in which the entity is engaged , and disclosure in the first year that the entity is no longer a development stage entity that it had been in prior years . in addition , the amendment clarifies guidance regarding entities that have not commenced planned principal operations . the amendment is effective for annual reporting periods beginning after december 15 , 2014 , and interim periods therein with early adoption permitted . the company elected to early adopt this standard in the period ended june 30 , 2014. other than a change in presentation , the adoption of this guidance did not have an impact on the company 's financial statements . in may 2014 , the fasb issued guidance which supersedes all existing revenue recognition requirements , including most industry-specific guidance . the new standard requires a company to recognize revenue when it 78 transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services . this guidance will be effective prospectively for fiscal years , and interim periods within those years , beginning after december 15 , 2016 , and early adoption is not permitted . the company is currently evaluating the potential impact that the adoption of this guidance and the related transition guidance may have on the company 's financial statements . in august 2014 , the fasb issued accounting guidance for the disclosure of uncertainties related to an entity 's ability to continue as a going concern . the new standard requires management to perform an assessment at interim and annual periods as to the entity 's ability to continue as a going concern and provides specific disclosure guidance . this guidance will be effective for fiscal years , and interim periods within those years , beginning after december 15 , 2016 and early adoption is permitted . the company is currently evaluating the potential impact that the adoption of this guidance may have on the company 's financial statements . jobs act on april 5 , 2012 , the jobs act was enacted . section 107 of the jobs act provides that an ยemerging growth companyย can take advantage of the extended transition period provided in section 7 ( a ) ( 2 ) ( b ) of the securities act for complying with new or revised accounting standards . in other words , an
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2,370 | our revenues per customer on a monthly basis vary based on the amount of energy produced by our energy systems and the published price of energy ( electricity , natural gas or oil ) from our customers ' local energy utility that month . our revenues commence as new energy systems become operational . as of december 31 , 2014 , we had 123 energy systems operational . in some cases the customer may choose to own the energy system rather than have it owned by american dg energy . in this case , we account for revenue and costs using the percentage-of-completion method of accounting . under the percentage-of-completion method of accounting , revenues are recognized by applying percentages of completion to the total estimated revenues for the respective contracts . costs are recognized as incurred . the percentages of completion are determined by relating the actual cost of work performed to date to the current estimated total cost at completion of the respective contracts . when the estimate on a contract indicates a loss , the company 's policy is to record the entire expected loss , regardless of the percentage of completion . the excess of contract costs and profit recognized to date on the percentage-of-completion accounting method in excess of billings is recorded as unbilled revenue . billings in excess of related costs and estimated earnings is recorded as deferred revenue . customers may buy out their long-term obligation under energy contracts and purchase the underlying equipment from the company . any resulting gain on these transactions is recognized over the payment period in the accompanying consolidated statements of operations . revenues from operation and maintenance services , including shared savings are recorded when provided and verified . we have experienced total net losses since inception of approximately $ 35.2 million . for the foreseeable future , we expect to experience continuing operating losses and negative cash flows from operations as our management executes our current business plan . the cash and cash equivalents available at december 31 , 2014 will , we believe , provide sufficient working capital to meet our anticipated expenditures including installations of new equipment for the next twelve months ; however , as we continue to grow our business by adding more energy systems , the cash requirements will increase . we believe that our cash and cash equivalents available at december 31 , 2014 and our ability to control certain costs , including those related to general and administrative expenses , will enable us to meet our anticipated cash expenditures through march 31 , 2016. beyond march 31 , 2016 , we may need to raise additional capital through a debt financing or equity offering to meet our operating and capital needs . there can be no assurance , however , that we will be successful in our fundraising efforts or that additional funds will be available on acceptable terms , if at all . if we are unable to raise additional capital in 2016 we may need to terminate certain of our employees and adjust our current business plan . financial considerations may cause us to modify planned deployment of new energy systems and we may decide to suspend installations until we are able to secure additional working capital . we will evaluate possible acquisitions of , or investments in , businesses , technologies and products that are complementary to our business . however , we are not currently engaged in such discussions . the company 's operations are comprised of one business segment . our business is selling energy in the form of electricity , heat , hot water and cooling to our customers under long-term sales agreements . related party transactions see `` note 8 - related parties `` to the consolidated financial statements contained herin . results of operations 17 american dg energy inc. fiscal year ended december 31 , 2014 compared with fiscal year ended december 31 , 2013 revenues revenues in 2014 were $ 8,567,553 compared to $ 7,461,880 for the same period in 2013 , an increase of $ 1,105,673 or 14.8 % . the increase in revenues was primarily due to higher energy production and units operational in the united kingdom ( uk ) . our on-site utility energy revenues in 2014 increased to $ 7,808,933 compared to $ 7,164,226 for the same period in 2013 , an increase of $ 644,707 or 9.0 % . as part of our on-site utility energy revenue , the revenue recognized from demand response activity was $ 247,518 and $ 112,405 , for the years ended december 31 , 2014 and 2013 , respectively . our turnkey and other revenues in 2014 increased to $ 758,620 compared to $ 297,654 for the same period in 2013 . the revenue from our turnkey projects can vary substantially per period . during 2014 , we operated 123 energy systems , at 69 locations , representing 8,186 kw of installed electricity plus thermal energy , compared to 109 energy systems at 64 locations , representing 7,278 kw of installed electricity plus thermal energy for the same period in 2013 . the revenue per customer on a monthly basis is based on the sum of the amount of energy produced by our energy systems , which is derived by the monthly published price of energy ( electricity , natural gas or oil ) from our customers ' local utility , less the discounts we provide our customers . our revenues commence as new energy systems become operational . cost of sales cost of sales , including depreciation , in 2014 was $ 8,481,780 compared to $ 6,245,598 for the same period in 2013 , an increase of $ 2,236,182 or 35.8 % . story_separator_special_tag under certain energy contracts , the customer directly acquires the fuel to power the systems and receives credit for that expense from the company . the credit is recorded as a reduction of revenue and as reduction of cost of fuel . revenues from operation , including shared savings are recorded when provided and verified . maintenance service revenue is recognized over the term of the agreement and is billed on a monthly basis in arrears . customers may buy out their long-term obligation under energy contracts and purchase the underlying equipment from the company . any resulting gain on these transactions is recognized over the payment period in the accompanying consolidated statements of operations . in some cases , the customer may choose to own the energy system rather than have it owned by american dg energy . in this case , the company accounts for revenue , or turnkey revenue , and costs using the percentage-of-completion method of accounting . under the percentage-of-completion method of accounting , revenues are recognized by applying percentages of completion to the total estimated revenues for the respective contracts . costs are recognized as incurred . the percentages of completion are determined by relating the actual cost of work performed to date to the current estimated total cost at completion of the respective contracts . when the estimate on a contract indicates a loss , the company 's policy is to record the entire expected loss , regardless of the percentage of completion . the excess of contract costs and profit recognized to date on the percentage-of-completion accounting method in excess of billings is recorded as unbilled revenue . billings in excess of related costs and estimated earnings is recorded as deferred revenue . at times the company will enter into a sales arrangement with a customer to construct and sell an energy system and provide energy and maintenance services over the term of the contract . based on the fact that the company sells each deliverable to other customers on a stand-alone basis , the company has determined that each deliverable has a stand-alone value . additionally , there are no rights of return relative to the delivered items ; therefore , each deliverable is considered a separate unit of accounting . revenue is allocated to each element based upon its relative fair value which is determined based on the estimated price of the deliverables when sold on a standalone basis . revenue related to the construction of the energy system is recognized using the percentage-of-completion method as the unit is being constructed . revenue from the sale of energy is recognized when electricity , heat , and chilled water is produced by the energy system , and revenue from maintenance services is recognized over the term of the maintenance agreement . the company is able to participate in the demand response market . demand response programs provide payments for either the reduction of electricity usage or low capacity utilization throughout a utility territory . for the year ended december 31 , 2014 and 2013 , the revenue recognized from demand response activity was $ 247,518 and $ 112,405 , respectively . income taxes as part of the process of preparing its consolidated financial statements , the company is required to estimate its income taxes in each of the jurisdictions in which it operates . this process involves the company estimating its actual current tax exposure together with assessing temporary differences resulting from differing treatment of items , such as depreciation and certain accrued liabilities for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are included within the company 's consolidated balance sheet . the company must then assess the likelihood that its 22 american dg energy inc. deferred tax assets will be recovered from future taxable income and to the extent it believes that recovery is not likely , the company must establish a valuation allowance . the company is allowed to recognize the tax benefits of uncertain tax positions only where the position is โ more likely than not โ to be sustained assuming examination by tax authorities . the amount recognized is the amount that represents the largest amount of tax benefit that is greater than 50 % likely of being ultimately realized . a liability is recognized for any benefit claimed , or expected to be claimed , in a tax return in excess of the benefit recorded in the financial statements , along with any interest and penalties ( if applicable ) on that excess . in addition , the company is required to provide a tabular reconciliation of the change in the aggregate unrecognized tax benefits claimed , or expected to be claimed , in tax returns and disclosure relating to the accrued interest and penalties for unrecognized tax benefits . discussion is also required for those uncertain tax positions where it is reasonably possible that the estimate of the tax benefit will change significantly in the next twelve months . impact of new accounting pronouncements in may 2014 , the fasb issued asu 2014-09 , โ revenue from contracts with customers ( topic 606 ) , โ to clarify the principles for recognizing revenue and to develop a common revenue standard for gaap and the international financial reporting standards . this guidance supersedes previously issued guidance on revenue recognition and gives a five step process an entity should follow so that the entity recognizes revenue that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . this new guidance will be effective for our fiscal 2017 reporting period and must be applied either retrospectively during each prior reporting period presented or retrospectively with the cumulative effect of initially applying this guidance recognized at the date of the initial application . early adoption is not
| cash used in operating activities was $ 782,660 in 2014 compared to $ 1,553,257 for the same period in 2013 . the company 's short and long-term receivables balance , including unbilled revenue , increased to $ 1,156,944 , in 2014 compared to $ 1,046,385 at december 31 , 2013 , reducing $ 110,559 of cash due to increased sales . amounts due to the company from related parties decreased to $ 39,682 in 2014 compared to $ 304,288 at december 31 , 2013 , increasing cash $ 264,606 . our inventory decreased to $ 1,153,927 in 2014 compared to $ 2,246,335 at december 31 , 2013 , supplying $ 1,092,408 of cash . accounts payable decreased to $ 605,530 in 2014 , compared to $ 871,079 at december 31 , 2013 , requiring $ 265,549 of cash . the amount due to related party increased to $ 630,805 in 2014 , compared to $ 178,216 at december 31 , 2013 , providing $ 452,589 of cash . during 2014 , the investing activities of the company 's operations were expenditures for the purchase of property , plant and equipment for energy system installations . the company used $ 5,649,433 for purchases and installation of energy systems , net of rebates and incentives of $ 27,500 . the company 's financing activities provided $ 8,453,717 of cash in 2014 from the issuance of convertible debentures by eurosite power , the sale of the company 's common stock , the sale of common stock by eurosite power , a related party loan to eurosite power , offset by share repurchases of common stock by the company and eurosite power and distributions to noncontrolling interest . the company 's on-site utility energy program allows customers to reduce both their energy costs and site carbon production by deploying combined heat and power technology on its customers ' premises at no capital cost to the customer . therefore the company 's business model is capital intensive as the company owns the on-site utility equipment .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash used in operating activities was $ 782,660 in 2014 compared to $ 1,553,257 for the same period in 2013 . the company 's short and long-term receivables balance , including unbilled revenue , increased to $ 1,156,944 , in 2014 compared to $ 1,046,385 at december 31 , 2013 , reducing $ 110,559 of cash due to increased sales . amounts due to the company from related parties decreased to $ 39,682 in 2014 compared to $ 304,288 at december 31 , 2013 , increasing cash $ 264,606 . our inventory decreased to $ 1,153,927 in 2014 compared to $ 2,246,335 at december 31 , 2013 , supplying $ 1,092,408 of cash . accounts payable decreased to $ 605,530 in 2014 , compared to $ 871,079 at december 31 , 2013 , requiring $ 265,549 of cash . the amount due to related party increased to $ 630,805 in 2014 , compared to $ 178,216 at december 31 , 2013 , providing $ 452,589 of cash . during 2014 , the investing activities of the company 's operations were expenditures for the purchase of property , plant and equipment for energy system installations . the company used $ 5,649,433 for purchases and installation of energy systems , net of rebates and incentives of $ 27,500 . the company 's financing activities provided $ 8,453,717 of cash in 2014 from the issuance of convertible debentures by eurosite power , the sale of the company 's common stock , the sale of common stock by eurosite power , a related party loan to eurosite power , offset by share repurchases of common stock by the company and eurosite power and distributions to noncontrolling interest . the company 's on-site utility energy program allows customers to reduce both their energy costs and site carbon production by deploying combined heat and power technology on its customers ' premises at no capital cost to the customer . therefore the company 's business model is capital intensive as the company owns the on-site utility equipment .
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Suspicious Activity Report : our revenues per customer on a monthly basis vary based on the amount of energy produced by our energy systems and the published price of energy ( electricity , natural gas or oil ) from our customers ' local energy utility that month . our revenues commence as new energy systems become operational . as of december 31 , 2014 , we had 123 energy systems operational . in some cases the customer may choose to own the energy system rather than have it owned by american dg energy . in this case , we account for revenue and costs using the percentage-of-completion method of accounting . under the percentage-of-completion method of accounting , revenues are recognized by applying percentages of completion to the total estimated revenues for the respective contracts . costs are recognized as incurred . the percentages of completion are determined by relating the actual cost of work performed to date to the current estimated total cost at completion of the respective contracts . when the estimate on a contract indicates a loss , the company 's policy is to record the entire expected loss , regardless of the percentage of completion . the excess of contract costs and profit recognized to date on the percentage-of-completion accounting method in excess of billings is recorded as unbilled revenue . billings in excess of related costs and estimated earnings is recorded as deferred revenue . customers may buy out their long-term obligation under energy contracts and purchase the underlying equipment from the company . any resulting gain on these transactions is recognized over the payment period in the accompanying consolidated statements of operations . revenues from operation and maintenance services , including shared savings are recorded when provided and verified . we have experienced total net losses since inception of approximately $ 35.2 million . for the foreseeable future , we expect to experience continuing operating losses and negative cash flows from operations as our management executes our current business plan . the cash and cash equivalents available at december 31 , 2014 will , we believe , provide sufficient working capital to meet our anticipated expenditures including installations of new equipment for the next twelve months ; however , as we continue to grow our business by adding more energy systems , the cash requirements will increase . we believe that our cash and cash equivalents available at december 31 , 2014 and our ability to control certain costs , including those related to general and administrative expenses , will enable us to meet our anticipated cash expenditures through march 31 , 2016. beyond march 31 , 2016 , we may need to raise additional capital through a debt financing or equity offering to meet our operating and capital needs . there can be no assurance , however , that we will be successful in our fundraising efforts or that additional funds will be available on acceptable terms , if at all . if we are unable to raise additional capital in 2016 we may need to terminate certain of our employees and adjust our current business plan . financial considerations may cause us to modify planned deployment of new energy systems and we may decide to suspend installations until we are able to secure additional working capital . we will evaluate possible acquisitions of , or investments in , businesses , technologies and products that are complementary to our business . however , we are not currently engaged in such discussions . the company 's operations are comprised of one business segment . our business is selling energy in the form of electricity , heat , hot water and cooling to our customers under long-term sales agreements . related party transactions see `` note 8 - related parties `` to the consolidated financial statements contained herin . results of operations 17 american dg energy inc. fiscal year ended december 31 , 2014 compared with fiscal year ended december 31 , 2013 revenues revenues in 2014 were $ 8,567,553 compared to $ 7,461,880 for the same period in 2013 , an increase of $ 1,105,673 or 14.8 % . the increase in revenues was primarily due to higher energy production and units operational in the united kingdom ( uk ) . our on-site utility energy revenues in 2014 increased to $ 7,808,933 compared to $ 7,164,226 for the same period in 2013 , an increase of $ 644,707 or 9.0 % . as part of our on-site utility energy revenue , the revenue recognized from demand response activity was $ 247,518 and $ 112,405 , for the years ended december 31 , 2014 and 2013 , respectively . our turnkey and other revenues in 2014 increased to $ 758,620 compared to $ 297,654 for the same period in 2013 . the revenue from our turnkey projects can vary substantially per period . during 2014 , we operated 123 energy systems , at 69 locations , representing 8,186 kw of installed electricity plus thermal energy , compared to 109 energy systems at 64 locations , representing 7,278 kw of installed electricity plus thermal energy for the same period in 2013 . the revenue per customer on a monthly basis is based on the sum of the amount of energy produced by our energy systems , which is derived by the monthly published price of energy ( electricity , natural gas or oil ) from our customers ' local utility , less the discounts we provide our customers . our revenues commence as new energy systems become operational . cost of sales cost of sales , including depreciation , in 2014 was $ 8,481,780 compared to $ 6,245,598 for the same period in 2013 , an increase of $ 2,236,182 or 35.8 % . story_separator_special_tag under certain energy contracts , the customer directly acquires the fuel to power the systems and receives credit for that expense from the company . the credit is recorded as a reduction of revenue and as reduction of cost of fuel . revenues from operation , including shared savings are recorded when provided and verified . maintenance service revenue is recognized over the term of the agreement and is billed on a monthly basis in arrears . customers may buy out their long-term obligation under energy contracts and purchase the underlying equipment from the company . any resulting gain on these transactions is recognized over the payment period in the accompanying consolidated statements of operations . in some cases , the customer may choose to own the energy system rather than have it owned by american dg energy . in this case , the company accounts for revenue , or turnkey revenue , and costs using the percentage-of-completion method of accounting . under the percentage-of-completion method of accounting , revenues are recognized by applying percentages of completion to the total estimated revenues for the respective contracts . costs are recognized as incurred . the percentages of completion are determined by relating the actual cost of work performed to date to the current estimated total cost at completion of the respective contracts . when the estimate on a contract indicates a loss , the company 's policy is to record the entire expected loss , regardless of the percentage of completion . the excess of contract costs and profit recognized to date on the percentage-of-completion accounting method in excess of billings is recorded as unbilled revenue . billings in excess of related costs and estimated earnings is recorded as deferred revenue . at times the company will enter into a sales arrangement with a customer to construct and sell an energy system and provide energy and maintenance services over the term of the contract . based on the fact that the company sells each deliverable to other customers on a stand-alone basis , the company has determined that each deliverable has a stand-alone value . additionally , there are no rights of return relative to the delivered items ; therefore , each deliverable is considered a separate unit of accounting . revenue is allocated to each element based upon its relative fair value which is determined based on the estimated price of the deliverables when sold on a standalone basis . revenue related to the construction of the energy system is recognized using the percentage-of-completion method as the unit is being constructed . revenue from the sale of energy is recognized when electricity , heat , and chilled water is produced by the energy system , and revenue from maintenance services is recognized over the term of the maintenance agreement . the company is able to participate in the demand response market . demand response programs provide payments for either the reduction of electricity usage or low capacity utilization throughout a utility territory . for the year ended december 31 , 2014 and 2013 , the revenue recognized from demand response activity was $ 247,518 and $ 112,405 , respectively . income taxes as part of the process of preparing its consolidated financial statements , the company is required to estimate its income taxes in each of the jurisdictions in which it operates . this process involves the company estimating its actual current tax exposure together with assessing temporary differences resulting from differing treatment of items , such as depreciation and certain accrued liabilities for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are included within the company 's consolidated balance sheet . the company must then assess the likelihood that its 22 american dg energy inc. deferred tax assets will be recovered from future taxable income and to the extent it believes that recovery is not likely , the company must establish a valuation allowance . the company is allowed to recognize the tax benefits of uncertain tax positions only where the position is โ more likely than not โ to be sustained assuming examination by tax authorities . the amount recognized is the amount that represents the largest amount of tax benefit that is greater than 50 % likely of being ultimately realized . a liability is recognized for any benefit claimed , or expected to be claimed , in a tax return in excess of the benefit recorded in the financial statements , along with any interest and penalties ( if applicable ) on that excess . in addition , the company is required to provide a tabular reconciliation of the change in the aggregate unrecognized tax benefits claimed , or expected to be claimed , in tax returns and disclosure relating to the accrued interest and penalties for unrecognized tax benefits . discussion is also required for those uncertain tax positions where it is reasonably possible that the estimate of the tax benefit will change significantly in the next twelve months . impact of new accounting pronouncements in may 2014 , the fasb issued asu 2014-09 , โ revenue from contracts with customers ( topic 606 ) , โ to clarify the principles for recognizing revenue and to develop a common revenue standard for gaap and the international financial reporting standards . this guidance supersedes previously issued guidance on revenue recognition and gives a five step process an entity should follow so that the entity recognizes revenue that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . this new guidance will be effective for our fiscal 2017 reporting period and must be applied either retrospectively during each prior reporting period presented or retrospectively with the cumulative effect of initially applying this guidance recognized at the date of the initial application . early adoption is not
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2,371 | selling , general , and administrative ( `` sg & a `` ) expenses consist primarily of fixed and incentive-based compensation , advertising , rent , insurance , utilities , and other customary operating expenses . a significant portion of our cost structure is variable ( such as sales commissions ) , or controllable ( such as advertising ) , which we believe allows us to adapt to changes in the retail environment over the long-term . we evaluate commissions paid to salespeople as a percentage of retail vehicle gross profit , advertising expense on a per vehicle retailed ( `` pvr `` ) basis , and all other sg & a expenses in the aggregate as a percentage of total gross profit . we had total available liquidity of $ 472.9 million as of december 31 , 2019 , which consisted of cash and cash equivalents of $ 3.5 million , $ 132.1 million of funds in our floor plan offset accounts , $ 190.0 million of availability under our new vehicle floor plan facility that is able to be convert to our revolving credit facility , $ 47.3 million of availability under our revolving credit facility , and $ 100.0 million of availability under our used vehicle revolving floor plan facility . for further discussion of our liquidity , please refer to `` liquidity and capital resources `` below . 32 critical accounting policies and significant estimates preparation of financial statements in conformity with accounting principles generally accepted in the united states of america , requires management to make estimates and assumptions , that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities , as of the date of the financial statements , and reported amounts of revenues and expenses during the periods presented . on an ongoing basis , management evaluates their estimates and assumptions and the effects of any such revisions are reflected in the financial statements , in the period in which they are determined to be necessary . actual outcomes could differ materially from those estimates in a manner that could have a material effect on our consolidated financial statements . set forth below are the policies and estimates that we have identified as critical to our business operations and understanding our results of operations , based on the high degree of judgment or complexity in their application . goodwill and manufacturer franchise rightsโ goodwill represents the excess cost of an acquired business over the fair market value of its identifiable assets and liabilities . we have determined that , based on how we integrate acquisitions into our business , how the components of our business share resources and interact with one another , and how we review the results of our operations , that we have several geographic market-based operating segments . we have determined that the dealerships in each of our operating segments are components that are aggregated into several geographic market-based reporting units for the purpose of testing goodwill for impairment , as they ( i ) have similar economic characteristics , ( ii ) offer similar products and services ( all of our franchised dealerships offer new and used vehicles , parts and service , and arrange for third-party vehicle financing and the sale of insurance products ) , ( iii ) have similar customers , ( iv ) have similar distribution and marketing practices ( all of our dealerships distribute products and services through dealership facilities that market to customers in similar ways ) and ( v ) operate under similar regulatory environments . our only significant identifiable intangible assets , other than goodwill , are our rights under franchise agreements with manufacturers , which are recorded at an individual franchise level . the fair value of our manufacturer franchise rights are determined at the acquisition date , by discounting the projected cash flows specific to each franchise . we have determined that manufacturer franchise rights have an indefinite life as there are no economic , contractual or other factors that limit their useful lives , and they are expected to generate cash flows indefinitely due to the historically long lives of the manufacturers ' brand names . furthermore , to the extent that any agreements evidencing our manufacturer franchise rights would expire , we expect that we would be able to renew those agreements in the ordinary course of business . we performed quantitative impairment tests as of october 1 , 2019 , and identified six dealerships with franchise rights carrying values that exceeded their fair values , and as a result , recorded non-cash impairment charges of $ 7.1 million . we do not amortize goodwill and other intangible assets that are deemed to have indefinite lives . we review goodwill and manufacturer franchise rights for impairment annually as of october 1 st , or more often if events or circumstances indicate that any impairment may have occurred . we are subject to financial statement risk to the extent that goodwill becomes impaired due to decreases in the fair value of our automotive retail business or manufacturer franchise rights become impaired due to decreases in the fair value of our individual franchises . f & i chargeback reserves we receive commissions from third-party lending and insurance institutions for arranging customer financing and from the sale of vehicle service contracts , guaranteed asset protection ( known as `` gap `` ) debt cancellation , and other insurance to customers ( collectively `` f & i `` ) . f & i commissions are recorded at the time the associated vehicle is sold . we may be charged back for f & i commissions in the event a contract is prepaid , defaulted upon , or terminated ( `` chargebacks `` ) . f & i commissions , net of estimated future chargebacks , are included in finance and insurance , net in the accompanying consolidated statements of income . story_separator_special_tag total other expenses , net increased by $ 7.5 million in 2018 , primarily due to a $ 9.8 million increase in floor plan interest expense in 2018 , partially offset by a $ 1.5 million decrease in swap interest expense and a $ 0.8 million decrease in other interest expense , net . as a result , income before income taxes increased by $ 15.7 million ( 8 % ) to $ 224.8 million in 2018 . the $ 13.2 million ( 19 % ) decrease in income tax expense was primarily attributable to the decrease in our effective tax rate from 33.5 % in 2017 to 25.3 % for 2018. overall , net income increased by $ 28.9 million ( 21 % ) from $ 139.1 million in 2017 to $ 168.0 million in 2018 . on january 1 , 2018 , we adopted asc 606 using the modified retrospective method for all revenue contracts not completed as of that date and recognized a cumulative effect adjustment to retained earnings . our prior period comparative information has not been adjusted and continues to be reported under accounting standards in effect for that period . the net impact of adopting asc 606 for the year ended december 31 , 2018 was a decrease to net income of $ 0.1 million . for additional information related to the adoption effects of this new revenue recognition standard , please refer to note 2 `` revenue recognition `` within the accompanying consolidated financial statements . we assess the organic growth of our revenue and gross profit on a same store basis . as such , for the following discussion , same store amounts consist of information from dealerships for identical months in each comparative period , commencing with the first month we owned the dealership . additionally , amounts related to divested dealerships are excluded from each comparative period . 45 new vehicleโ replace_table_token_16_th 46 new vehicle metricsโ replace_table_token_17_th new vehicle revenue increased by $ 227.6 million ( 6 % ) , primarily as a result of a 5 % increase in new vehicle units sold and a 1 % increase in revenue per new vehicle sold . same store new vehicle revenue increased by $ 123.7 million ( 3 % ) as a result of increases in new vehicle units and revenue per new vehicle sold . the 2 % increase in same store unit sale volume was driven by a 2 % increase in both luxury and import units . the 2 % increase in same store unit sales slightly exceeded 2018 u.s. new vehicle sales , which increased 1 % from 17.2 million in 2017 to 17.3 million in 2018 . same store new vehicle gross profit in 2018 decreased by $ 7.4 million ( 4 % ) , as a result of a 6 % decrease in gross profit per new vehicle sold , partially offset by a 2 % increase in unit volumes . the 30 basis point decrease in same store new vehicle gross margin from 4.7 % in 2017 to 4.4 % in 2018 , was primarily attributable to a higher mix of revenue in our import brands , which have traditionally had lower margins than our luxury and domestic brands . in addition , we attribute some of the decrease in gross profit to increased competition created by price transparency and comparability as a result of internet based research and car buying services . 47 used vehicleโ replace_table_token_18_th used vehicle metricsโ replace_table_token_19_th used vehicle revenue increased by $ 138.3 million ( 8 % ) , as a result of a 7 % increase in used vehicle retail units sold , and a 2 % increase in revenue per used vehicle retailed . in 2018 , same store used vehicle retail gross profit increased by $ 4.1 million ( 3 % ) . overall , our gross margin percent decreased from 7.4 % in 2017 to 7.2 % in 2018 . we primarily attribute the 20 basis point decrease in same store used vehicle retail gross margin to increased competition and price transparency within the used vehicle marketplace . we believe that our used vehicle inventory continues to be well-aligned with current consumer demand , with approximately 34 days of supply as of december 31 , 2018 . 48 parts and serviceโ replace_table_token_20_th * reconditioning and preparation represents the gross profit earned by our parts and service departments for internal work performed and is included as a reduction of parts and service cost of sales within the accompanying consolidated statements of income upon the sale of the vehicle . the $ 34.9 million ( 4 % ) increase in parts and service revenue was primarily due to a $ 30.7 million ( 6 % ) increase in customer pay revenue and a $ 14.4 million ( 13 % ) increase in wholesale parts revenue , partially offset by a $ 10.2 million ( 7 % ) decrease in warranty revenue . same store parts and service revenue increased $ 18.5 million ( 2 % ) from $ 785.6 million in 2017 to $ 804.1 million in 2018 . the increase in same store parts and service revenue was due to a $ 20.2 million ( 4 % ) increase in customer pay revenue and a $ 11.1 million ( 10 % ) increase in wholesale parts revenue , partially offset by a $ 12.8 million ( 8 % ) decrease in warranty revenue . parts and service gross profit , excluding reconditioning and preparation , increased by $ 16.4 million ( 4 % ) to $ 391.6 million and same store gross profit , excluding reconditioning and preparation , increased by $ 9.1 million ( 2 % ) to $ 384.0 million . the $ 9.1 million increase in same store gross profit is primarily due to a $ 14.1 million ( 5 % ) increase in customer pay gross profit partially offset by a
| net cash used in investing activities totaled $ 227.6 million , $ 149.6 million , and $ 127.8 million for the years ended december 31 , 2019 , 2018 , and 2017 , respectively . cash flows from investing activities relate primarily to capital expenditures , acquisitions , divestitures , and the sale of property and equipment . capital expenditures , excluding the purchase of real estate and acquisitions , were $ 57.6 million , $ 40.3 million , and $ 42.3 million for the years ended december 31 , 2019 , 2018 , and 2017 , respectively . purchases of real estate totaled $ 9.2 million , $ 17.6 million , and $ 5.8 million for the years ended december 31 , 2019 , 2018 , and 2017 , respectively . in addition , we purchased previously leased facilities for $ 4.9 million , $ 4.4 million , and $ 5.4 million during the years ended december 31 , 2019 , 2018 , and 2017 , respectively . we expect that capital expenditures during 2020 will total approximately $ 68.8 million to upgrade or replace our existing facilities , construct new facilities , expand our service capacity , and invest in technology and equipment . in addition , as part of our capital allocation strategy , we continually evaluate opportunities to purchase properties currently under lease and acquire properties in connection with future dealership relocations . no assurances can be provided that we will have or be able to access capital at times or on terms in amounts deemed necessary to execute this strategy . during the year ended december 31 , 2019 , we acquired the assets of nine franchises ( five dealership locations ) and one collision center in the indianapolis , indiana market and one franchise ( one dealership location ) in the denver , colorado market for a combined purchase price of $ 210.4 million . we funded these acquisitions with an aggregate of $ 153.9 million of cash and $ 55.3 million of floor plan borrowings for the purchase of the related new vehicle inventory .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash used in investing activities totaled $ 227.6 million , $ 149.6 million , and $ 127.8 million for the years ended december 31 , 2019 , 2018 , and 2017 , respectively . cash flows from investing activities relate primarily to capital expenditures , acquisitions , divestitures , and the sale of property and equipment . capital expenditures , excluding the purchase of real estate and acquisitions , were $ 57.6 million , $ 40.3 million , and $ 42.3 million for the years ended december 31 , 2019 , 2018 , and 2017 , respectively . purchases of real estate totaled $ 9.2 million , $ 17.6 million , and $ 5.8 million for the years ended december 31 , 2019 , 2018 , and 2017 , respectively . in addition , we purchased previously leased facilities for $ 4.9 million , $ 4.4 million , and $ 5.4 million during the years ended december 31 , 2019 , 2018 , and 2017 , respectively . we expect that capital expenditures during 2020 will total approximately $ 68.8 million to upgrade or replace our existing facilities , construct new facilities , expand our service capacity , and invest in technology and equipment . in addition , as part of our capital allocation strategy , we continually evaluate opportunities to purchase properties currently under lease and acquire properties in connection with future dealership relocations . no assurances can be provided that we will have or be able to access capital at times or on terms in amounts deemed necessary to execute this strategy . during the year ended december 31 , 2019 , we acquired the assets of nine franchises ( five dealership locations ) and one collision center in the indianapolis , indiana market and one franchise ( one dealership location ) in the denver , colorado market for a combined purchase price of $ 210.4 million . we funded these acquisitions with an aggregate of $ 153.9 million of cash and $ 55.3 million of floor plan borrowings for the purchase of the related new vehicle inventory .
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Suspicious Activity Report : selling , general , and administrative ( `` sg & a `` ) expenses consist primarily of fixed and incentive-based compensation , advertising , rent , insurance , utilities , and other customary operating expenses . a significant portion of our cost structure is variable ( such as sales commissions ) , or controllable ( such as advertising ) , which we believe allows us to adapt to changes in the retail environment over the long-term . we evaluate commissions paid to salespeople as a percentage of retail vehicle gross profit , advertising expense on a per vehicle retailed ( `` pvr `` ) basis , and all other sg & a expenses in the aggregate as a percentage of total gross profit . we had total available liquidity of $ 472.9 million as of december 31 , 2019 , which consisted of cash and cash equivalents of $ 3.5 million , $ 132.1 million of funds in our floor plan offset accounts , $ 190.0 million of availability under our new vehicle floor plan facility that is able to be convert to our revolving credit facility , $ 47.3 million of availability under our revolving credit facility , and $ 100.0 million of availability under our used vehicle revolving floor plan facility . for further discussion of our liquidity , please refer to `` liquidity and capital resources `` below . 32 critical accounting policies and significant estimates preparation of financial statements in conformity with accounting principles generally accepted in the united states of america , requires management to make estimates and assumptions , that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities , as of the date of the financial statements , and reported amounts of revenues and expenses during the periods presented . on an ongoing basis , management evaluates their estimates and assumptions and the effects of any such revisions are reflected in the financial statements , in the period in which they are determined to be necessary . actual outcomes could differ materially from those estimates in a manner that could have a material effect on our consolidated financial statements . set forth below are the policies and estimates that we have identified as critical to our business operations and understanding our results of operations , based on the high degree of judgment or complexity in their application . goodwill and manufacturer franchise rightsโ goodwill represents the excess cost of an acquired business over the fair market value of its identifiable assets and liabilities . we have determined that , based on how we integrate acquisitions into our business , how the components of our business share resources and interact with one another , and how we review the results of our operations , that we have several geographic market-based operating segments . we have determined that the dealerships in each of our operating segments are components that are aggregated into several geographic market-based reporting units for the purpose of testing goodwill for impairment , as they ( i ) have similar economic characteristics , ( ii ) offer similar products and services ( all of our franchised dealerships offer new and used vehicles , parts and service , and arrange for third-party vehicle financing and the sale of insurance products ) , ( iii ) have similar customers , ( iv ) have similar distribution and marketing practices ( all of our dealerships distribute products and services through dealership facilities that market to customers in similar ways ) and ( v ) operate under similar regulatory environments . our only significant identifiable intangible assets , other than goodwill , are our rights under franchise agreements with manufacturers , which are recorded at an individual franchise level . the fair value of our manufacturer franchise rights are determined at the acquisition date , by discounting the projected cash flows specific to each franchise . we have determined that manufacturer franchise rights have an indefinite life as there are no economic , contractual or other factors that limit their useful lives , and they are expected to generate cash flows indefinitely due to the historically long lives of the manufacturers ' brand names . furthermore , to the extent that any agreements evidencing our manufacturer franchise rights would expire , we expect that we would be able to renew those agreements in the ordinary course of business . we performed quantitative impairment tests as of october 1 , 2019 , and identified six dealerships with franchise rights carrying values that exceeded their fair values , and as a result , recorded non-cash impairment charges of $ 7.1 million . we do not amortize goodwill and other intangible assets that are deemed to have indefinite lives . we review goodwill and manufacturer franchise rights for impairment annually as of october 1 st , or more often if events or circumstances indicate that any impairment may have occurred . we are subject to financial statement risk to the extent that goodwill becomes impaired due to decreases in the fair value of our automotive retail business or manufacturer franchise rights become impaired due to decreases in the fair value of our individual franchises . f & i chargeback reserves we receive commissions from third-party lending and insurance institutions for arranging customer financing and from the sale of vehicle service contracts , guaranteed asset protection ( known as `` gap `` ) debt cancellation , and other insurance to customers ( collectively `` f & i `` ) . f & i commissions are recorded at the time the associated vehicle is sold . we may be charged back for f & i commissions in the event a contract is prepaid , defaulted upon , or terminated ( `` chargebacks `` ) . f & i commissions , net of estimated future chargebacks , are included in finance and insurance , net in the accompanying consolidated statements of income . story_separator_special_tag total other expenses , net increased by $ 7.5 million in 2018 , primarily due to a $ 9.8 million increase in floor plan interest expense in 2018 , partially offset by a $ 1.5 million decrease in swap interest expense and a $ 0.8 million decrease in other interest expense , net . as a result , income before income taxes increased by $ 15.7 million ( 8 % ) to $ 224.8 million in 2018 . the $ 13.2 million ( 19 % ) decrease in income tax expense was primarily attributable to the decrease in our effective tax rate from 33.5 % in 2017 to 25.3 % for 2018. overall , net income increased by $ 28.9 million ( 21 % ) from $ 139.1 million in 2017 to $ 168.0 million in 2018 . on january 1 , 2018 , we adopted asc 606 using the modified retrospective method for all revenue contracts not completed as of that date and recognized a cumulative effect adjustment to retained earnings . our prior period comparative information has not been adjusted and continues to be reported under accounting standards in effect for that period . the net impact of adopting asc 606 for the year ended december 31 , 2018 was a decrease to net income of $ 0.1 million . for additional information related to the adoption effects of this new revenue recognition standard , please refer to note 2 `` revenue recognition `` within the accompanying consolidated financial statements . we assess the organic growth of our revenue and gross profit on a same store basis . as such , for the following discussion , same store amounts consist of information from dealerships for identical months in each comparative period , commencing with the first month we owned the dealership . additionally , amounts related to divested dealerships are excluded from each comparative period . 45 new vehicleโ replace_table_token_16_th 46 new vehicle metricsโ replace_table_token_17_th new vehicle revenue increased by $ 227.6 million ( 6 % ) , primarily as a result of a 5 % increase in new vehicle units sold and a 1 % increase in revenue per new vehicle sold . same store new vehicle revenue increased by $ 123.7 million ( 3 % ) as a result of increases in new vehicle units and revenue per new vehicle sold . the 2 % increase in same store unit sale volume was driven by a 2 % increase in both luxury and import units . the 2 % increase in same store unit sales slightly exceeded 2018 u.s. new vehicle sales , which increased 1 % from 17.2 million in 2017 to 17.3 million in 2018 . same store new vehicle gross profit in 2018 decreased by $ 7.4 million ( 4 % ) , as a result of a 6 % decrease in gross profit per new vehicle sold , partially offset by a 2 % increase in unit volumes . the 30 basis point decrease in same store new vehicle gross margin from 4.7 % in 2017 to 4.4 % in 2018 , was primarily attributable to a higher mix of revenue in our import brands , which have traditionally had lower margins than our luxury and domestic brands . in addition , we attribute some of the decrease in gross profit to increased competition created by price transparency and comparability as a result of internet based research and car buying services . 47 used vehicleโ replace_table_token_18_th used vehicle metricsโ replace_table_token_19_th used vehicle revenue increased by $ 138.3 million ( 8 % ) , as a result of a 7 % increase in used vehicle retail units sold , and a 2 % increase in revenue per used vehicle retailed . in 2018 , same store used vehicle retail gross profit increased by $ 4.1 million ( 3 % ) . overall , our gross margin percent decreased from 7.4 % in 2017 to 7.2 % in 2018 . we primarily attribute the 20 basis point decrease in same store used vehicle retail gross margin to increased competition and price transparency within the used vehicle marketplace . we believe that our used vehicle inventory continues to be well-aligned with current consumer demand , with approximately 34 days of supply as of december 31 , 2018 . 48 parts and serviceโ replace_table_token_20_th * reconditioning and preparation represents the gross profit earned by our parts and service departments for internal work performed and is included as a reduction of parts and service cost of sales within the accompanying consolidated statements of income upon the sale of the vehicle . the $ 34.9 million ( 4 % ) increase in parts and service revenue was primarily due to a $ 30.7 million ( 6 % ) increase in customer pay revenue and a $ 14.4 million ( 13 % ) increase in wholesale parts revenue , partially offset by a $ 10.2 million ( 7 % ) decrease in warranty revenue . same store parts and service revenue increased $ 18.5 million ( 2 % ) from $ 785.6 million in 2017 to $ 804.1 million in 2018 . the increase in same store parts and service revenue was due to a $ 20.2 million ( 4 % ) increase in customer pay revenue and a $ 11.1 million ( 10 % ) increase in wholesale parts revenue , partially offset by a $ 12.8 million ( 8 % ) decrease in warranty revenue . parts and service gross profit , excluding reconditioning and preparation , increased by $ 16.4 million ( 4 % ) to $ 391.6 million and same store gross profit , excluding reconditioning and preparation , increased by $ 9.1 million ( 2 % ) to $ 384.0 million . the $ 9.1 million increase in same store gross profit is primarily due to a $ 14.1 million ( 5 % ) increase in customer pay gross profit partially offset by a
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2,372 | conversely , decreases in interest rates , in general , may over time cause : ( i ) the interest expense associated with our borrowings to decrease ; ( ii ) the value of our mbs portfolio and , correspondingly , our stockholders ' equity to increase ; ( iii ) coupons on our arm-mbs to reset , on a delayed basis , to lower interest rates ; ( iv ) prepayments on our mbs to increase , thereby accelerating the amortization of our mbs purchase premiums and the accretion of our purchase discounts ; and ( v ) the value of our derivative hedging instruments and , correspondingly , our stockholders ' equity to decrease . in addition , our borrowing costs and credit lines are further affected by the type of collateral we pledge and general conditions in the credit market . our investments in residential mortgage assets expose us to credit risk , generally meaning that we are subject to credit losses due to the risk of delinquency , default and foreclosure on the underlying real estate collateral . ( see part i , item 1a . , โ risk factors - credit and other risks related to our investments โ , of this annual report on form 10-k. ) we believe the discounted purchase prices paid on certain of these investments mitigate our risk of loss in the event that , as we expect on most such investments , we receive less than 100 % of the par value of these investments . our investment process for credit sensitive assets focuses primarily on quantifying and pricing credit risk . 36 the table below presents the composition of our mbs portfolios with respect to repricing characteristics as of december 31 , 2016 : replace_table_token_4_th ( 1 ) does not include principal payments receivable in the amount of $ 2.6 million . ( 2 ) does not reflect $ 2.7 billion of 3 year step-up securities , which are securitized financial instruments primarily backed by both fixed rate and hybrid re-performing and non-performing loans . these deal structures contain a step-up feature where the coupon increases up to 300 basis points at 36 months from issuance or sooner . as of december 31 , 2016 , approximately $ 3.5 billion , or 51.2 % , of our mbs portfolio was in its contractual fixed-rate period or were fixed-rate mbs and approximately $ 3.4 billion , or 48.8 % , was in its contractual adjustable-rate period , or were floating rate mbs with interest rates that reset monthly . our arm-mbs in their contractual adjustable-rate period primarily include mbs collateralized by hybrids for which the initial fixed-rate period has elapsed , such that the interest rate will typically adjust on an annual or semiannual basis . premiums arise when we acquire mbs at a price in excess of the principal balance of the mortgages securing such mbs ( i.e . , par value ) . conversely , discounts arise when we acquire mbs at a price below the principal balance of the mortgages securing such mbs or acquire residential whole loans at a price below the principal balance of the mortgage . premiums paid on our mbs are amortized against interest income and accretable purchase discounts on these investments are accreted to interest income . purchase premiums , which are primarily carried on our agency mbs and certain crt securities , are amortized against interest income over the life of each security using the effective yield method , adjusted for actual prepayment activity . an increase in the prepayment rate , as measured by the cpr , will typically accelerate the amortization of purchase premiums , thereby reducing the internal rate of return ( or irr ) /interest income earned on such assets . cpr levels are impacted by , among other things , conditions in the housing market , new regulations , government and private sector initiatives , interest rates , availability of credit to home borrowers , underwriting standards and the economy in general . in particular , cpr reflects the conditional repayment rate ( or crr ) , which measures voluntary prepayments of mortgages collateralizing a particular mbs , and the conditional default rate ( or cdr ) , which measures involuntary prepayments resulting from defaults . cprs on agency mbs and legacy non-agency mbs may differ significantly . for the year ended december 31 , 2016 , our agency mbs portfolio experienced a weighted average cpr of 14.4 % , and our legacy non-agency mbs portfolio experienced a weighted average cpr of 15.6 % . for the year ended december 31 , 2015 , our agency mbs portfolio experienced a weighted average cpr of 13.2 % , and our legacy non-agency mbs portfolio experienced a weighted average cpr of 14.1 % . over the last consecutive eight quarters , ending with december 31 , 2016 , the monthly weighted average cpr on our agency and legacy non-agency mbs portfolios ranged from a high of 17.0 % experienced during the month ended september 30 , 2016 to a low of 10.4 % , experienced during the month ended march 31 , 2015 , with an average cpr over such quarters of 14.2 % . our method of accounting for non-agency mbs purchased at significant discounts to par value , requires us to make assumptions with respect to each security . these assumptions include , but are not limited to , future interest rates , voluntary prepayment rates , default rates , mortgage modifications and loss severities . as part of our non-agency mbs surveillance process , we track and compare each security 's actual performance over time to the performance expected at the time of purchase or , if we have modified our original purchase assumptions , to our revised performance expectations . story_separator_special_tag ( 4 ) interest only represents mbs backed by mortgages currently in their interest only period . percentage is based on mbs current face at december 31 , 2016 and 2015 , respectively . ( 5 ) agency 3/1 , 5/1 , 7/1 and 10/1 hybrid arm-mbs with coupon less than 4.5 % . ( 6 ) agency 3/1 , 5/1 , 7/1 and 10/1 hybrid arm-mbs with coupon greater than or equal to 4.5 % . 43 non-agency mbs the following table presents information with respect to our non-agency mbs at december 31 , 2016 and 2015 : replace_table_token_12_th ( 1 ) includes discount designated as credit reserve of $ 675.6 million and otti of $ 18.6 million . ( 2 ) includes discount designated as credit reserve of $ 766.0 million and otti of $ 21.5 million . purchase discounts on non-agency mbs the following table presents the changes in the components of purchase discount on non-agency mbs with respect to purchase discount designated as credit reserve and otti , and accretable purchase discount for the years ended december 31 , 2016 and 2015 : replace_table_token_13_th ( 1 ) together with coupon interest , accretable purchase discount is recognized as interest income over the life of the security . ( 2 ) includes the impact of approximately $ 61.8 million and $ 7.0 million of cash proceeds ( a one-time payment ) received by us during the year ended december 31 , 2016 in connection with the settlements of litigation related to certain countrywide and citigroup sponsored residential mortgage backed securitization trusts , respectively . 44 the following table presents information with respect to the yield components of our non-agency mbs for the periods presented : replace_table_token_14_th ( 1 ) reflects coupon interest income divided by the average amortized cost . the discounted purchase price on legacy non-agency mbs causes the coupon yield to be higher than the pass-through coupon interest rate . ( 2 ) the effective yield adjustment is the difference between the net yield , calculated utilizing management 's estimates of timing and amount of future cash flows for legacy non-agency mbs and 3 year step-up securities , less the current coupon yield . actual maturities of mbs are generally shorter than stated contractual maturities because actual maturities of mbs are affected by the contractual lives of the underlying mortgage loans , periodic payments of principal , and prepayments of principal . the following table presents certain information regarding the amortized costs , weighted average yields and contractual maturities of our mbs at december 31 , 2016 and does not reflect the effect of prepayments or scheduled principal amortization on our mbs : replace_table_token_15_th at december 31 , 2016 , our crt securities had an amortized cost of $ 382.7 million , a fair value of $ 404.9 million , a weighted average yield of 5.86 % and weighted average time to maturity of 9.0 years . at december 31 , 2015 , our crt securities had an amortized cost of $ 186.3 million , a fair value of $ 183.6 million , a weighted average yield of 5.09 % and a weighted average time to maturity of 9.0 years . residential whole loans the following table presents the contractual maturities of our residential whole loans held by consolidated trusts at december 31 , 2016 and does not reflect estimates of prepayments or scheduled amortization . for residential whole loans at carrying value , amounts presented are estimated based on the underlying loan contractual amounts . replace_table_token_16_th 45 the following table presents at december 31 , 2016 , the dollar amount of our residential whole loans at fair value , contractually maturing after one year , and indicates whether the loans have fixed interest rates or adjustable interest rates : ( in thousands ) residential whole loans at fair value ( 1 ) interest rates : fixed $ 512,988 adjustable 295,392 total $ 808,380 ( 1 ) includes loans on which borrowers have defaulted and are not making payments of principal and or interest as of december 31 , 2016 . information is not presented for residential whole loans at carrying value as income is recognized based on pools of assets with similar risk characteristics using an estimated yield based on cash flows expected to be collected over the lives of the loans in such pools rather than on the contractual coupons of the underlying loans . the following table presents additional information regarding our residential whole loans at fair value at december 31 , 2016 and 2015 : residential whole loans at fair value ( dollars in thousands ) december 31 , 2016 december 31 , 2015 loans 90 days or more past due : number of loans 2,560 2,426 aggregate amount outstanding $ 570,025 $ 493,640 income on residential whole loans at carrying value is recognized based on pools of assets with similar credit risk characteristics using an estimated yield based on cash flows expected to be collected over the lives of the loans in such pools rather than the contractual coupons of the underlying loans . as the unit of account is at the pool level rather than the individual loan level , none of our residential whole loans at carrying value are currently considered 90 days or more past due . exposure to financial counterparties we finance a significant portion of our residential mortgage assets with repurchase agreements and other advances . in connection with these financing arrangements , we pledge our assets as collateral to secure the borrowing . the amount of collateral pledged will typically exceed the amount of the financing with the extent of over-collateralization ranging from 1 % - 6 % of the amount borrowed ( u.s. treasury and agency mbs collateral ) to up to 60 % ( non-agency mbs collateral ) . consequently , while repurchase agreement financing results in us recording a liability to the counterparty in our consolidated balance sheets , we are
| securitized debt ( 2,452 ) 789 ( 1,663 ) ( 5,013 ) 476 ( 4,537 ) senior notes 2 โ 2 โ 3 3 total net change in expense from interest-bearing liabilities $ ( 6,774 ) $ 23,181 $ 16,407 $ 21,221 $ ( 4,081 ) $ 17,140 net change in net interest income $ ( 40,914 ) $ ( 10,467 ) $ ( 51,381 ) $ 25,148 $ ( 13,962 ) $ 11,186 ( 1 ) excludes residential whole loans held at fair value which are reported as a component of non-interest-earning assets . 51 the following table presents certain quarterly information regarding our net interest spread and net interest margin for the quarterly periods presented : replace_table_token_19_th ( 1 ) reflects the difference between the yield on average interest-earning assets and average cost of funds . ( 2 ) reflects annualized net interest income divided by average interest-earning assets . the following table presents the components of the net interest spread earned on our agency , legacy non-agency mbs and 3 year step-up securities for the quarterly periods presented : replace_table_token_20_th ( 1 ) reflects annualized interest incomeon mbs divided by average amortized cost of mbs .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```securitized debt ( 2,452 ) 789 ( 1,663 ) ( 5,013 ) 476 ( 4,537 ) senior notes 2 โ 2 โ 3 3 total net change in expense from interest-bearing liabilities $ ( 6,774 ) $ 23,181 $ 16,407 $ 21,221 $ ( 4,081 ) $ 17,140 net change in net interest income $ ( 40,914 ) $ ( 10,467 ) $ ( 51,381 ) $ 25,148 $ ( 13,962 ) $ 11,186 ( 1 ) excludes residential whole loans held at fair value which are reported as a component of non-interest-earning assets . 51 the following table presents certain quarterly information regarding our net interest spread and net interest margin for the quarterly periods presented : replace_table_token_19_th ( 1 ) reflects the difference between the yield on average interest-earning assets and average cost of funds . ( 2 ) reflects annualized net interest income divided by average interest-earning assets . the following table presents the components of the net interest spread earned on our agency , legacy non-agency mbs and 3 year step-up securities for the quarterly periods presented : replace_table_token_20_th ( 1 ) reflects annualized interest incomeon mbs divided by average amortized cost of mbs .
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Suspicious Activity Report : conversely , decreases in interest rates , in general , may over time cause : ( i ) the interest expense associated with our borrowings to decrease ; ( ii ) the value of our mbs portfolio and , correspondingly , our stockholders ' equity to increase ; ( iii ) coupons on our arm-mbs to reset , on a delayed basis , to lower interest rates ; ( iv ) prepayments on our mbs to increase , thereby accelerating the amortization of our mbs purchase premiums and the accretion of our purchase discounts ; and ( v ) the value of our derivative hedging instruments and , correspondingly , our stockholders ' equity to decrease . in addition , our borrowing costs and credit lines are further affected by the type of collateral we pledge and general conditions in the credit market . our investments in residential mortgage assets expose us to credit risk , generally meaning that we are subject to credit losses due to the risk of delinquency , default and foreclosure on the underlying real estate collateral . ( see part i , item 1a . , โ risk factors - credit and other risks related to our investments โ , of this annual report on form 10-k. ) we believe the discounted purchase prices paid on certain of these investments mitigate our risk of loss in the event that , as we expect on most such investments , we receive less than 100 % of the par value of these investments . our investment process for credit sensitive assets focuses primarily on quantifying and pricing credit risk . 36 the table below presents the composition of our mbs portfolios with respect to repricing characteristics as of december 31 , 2016 : replace_table_token_4_th ( 1 ) does not include principal payments receivable in the amount of $ 2.6 million . ( 2 ) does not reflect $ 2.7 billion of 3 year step-up securities , which are securitized financial instruments primarily backed by both fixed rate and hybrid re-performing and non-performing loans . these deal structures contain a step-up feature where the coupon increases up to 300 basis points at 36 months from issuance or sooner . as of december 31 , 2016 , approximately $ 3.5 billion , or 51.2 % , of our mbs portfolio was in its contractual fixed-rate period or were fixed-rate mbs and approximately $ 3.4 billion , or 48.8 % , was in its contractual adjustable-rate period , or were floating rate mbs with interest rates that reset monthly . our arm-mbs in their contractual adjustable-rate period primarily include mbs collateralized by hybrids for which the initial fixed-rate period has elapsed , such that the interest rate will typically adjust on an annual or semiannual basis . premiums arise when we acquire mbs at a price in excess of the principal balance of the mortgages securing such mbs ( i.e . , par value ) . conversely , discounts arise when we acquire mbs at a price below the principal balance of the mortgages securing such mbs or acquire residential whole loans at a price below the principal balance of the mortgage . premiums paid on our mbs are amortized against interest income and accretable purchase discounts on these investments are accreted to interest income . purchase premiums , which are primarily carried on our agency mbs and certain crt securities , are amortized against interest income over the life of each security using the effective yield method , adjusted for actual prepayment activity . an increase in the prepayment rate , as measured by the cpr , will typically accelerate the amortization of purchase premiums , thereby reducing the internal rate of return ( or irr ) /interest income earned on such assets . cpr levels are impacted by , among other things , conditions in the housing market , new regulations , government and private sector initiatives , interest rates , availability of credit to home borrowers , underwriting standards and the economy in general . in particular , cpr reflects the conditional repayment rate ( or crr ) , which measures voluntary prepayments of mortgages collateralizing a particular mbs , and the conditional default rate ( or cdr ) , which measures involuntary prepayments resulting from defaults . cprs on agency mbs and legacy non-agency mbs may differ significantly . for the year ended december 31 , 2016 , our agency mbs portfolio experienced a weighted average cpr of 14.4 % , and our legacy non-agency mbs portfolio experienced a weighted average cpr of 15.6 % . for the year ended december 31 , 2015 , our agency mbs portfolio experienced a weighted average cpr of 13.2 % , and our legacy non-agency mbs portfolio experienced a weighted average cpr of 14.1 % . over the last consecutive eight quarters , ending with december 31 , 2016 , the monthly weighted average cpr on our agency and legacy non-agency mbs portfolios ranged from a high of 17.0 % experienced during the month ended september 30 , 2016 to a low of 10.4 % , experienced during the month ended march 31 , 2015 , with an average cpr over such quarters of 14.2 % . our method of accounting for non-agency mbs purchased at significant discounts to par value , requires us to make assumptions with respect to each security . these assumptions include , but are not limited to , future interest rates , voluntary prepayment rates , default rates , mortgage modifications and loss severities . as part of our non-agency mbs surveillance process , we track and compare each security 's actual performance over time to the performance expected at the time of purchase or , if we have modified our original purchase assumptions , to our revised performance expectations . story_separator_special_tag ( 4 ) interest only represents mbs backed by mortgages currently in their interest only period . percentage is based on mbs current face at december 31 , 2016 and 2015 , respectively . ( 5 ) agency 3/1 , 5/1 , 7/1 and 10/1 hybrid arm-mbs with coupon less than 4.5 % . ( 6 ) agency 3/1 , 5/1 , 7/1 and 10/1 hybrid arm-mbs with coupon greater than or equal to 4.5 % . 43 non-agency mbs the following table presents information with respect to our non-agency mbs at december 31 , 2016 and 2015 : replace_table_token_12_th ( 1 ) includes discount designated as credit reserve of $ 675.6 million and otti of $ 18.6 million . ( 2 ) includes discount designated as credit reserve of $ 766.0 million and otti of $ 21.5 million . purchase discounts on non-agency mbs the following table presents the changes in the components of purchase discount on non-agency mbs with respect to purchase discount designated as credit reserve and otti , and accretable purchase discount for the years ended december 31 , 2016 and 2015 : replace_table_token_13_th ( 1 ) together with coupon interest , accretable purchase discount is recognized as interest income over the life of the security . ( 2 ) includes the impact of approximately $ 61.8 million and $ 7.0 million of cash proceeds ( a one-time payment ) received by us during the year ended december 31 , 2016 in connection with the settlements of litigation related to certain countrywide and citigroup sponsored residential mortgage backed securitization trusts , respectively . 44 the following table presents information with respect to the yield components of our non-agency mbs for the periods presented : replace_table_token_14_th ( 1 ) reflects coupon interest income divided by the average amortized cost . the discounted purchase price on legacy non-agency mbs causes the coupon yield to be higher than the pass-through coupon interest rate . ( 2 ) the effective yield adjustment is the difference between the net yield , calculated utilizing management 's estimates of timing and amount of future cash flows for legacy non-agency mbs and 3 year step-up securities , less the current coupon yield . actual maturities of mbs are generally shorter than stated contractual maturities because actual maturities of mbs are affected by the contractual lives of the underlying mortgage loans , periodic payments of principal , and prepayments of principal . the following table presents certain information regarding the amortized costs , weighted average yields and contractual maturities of our mbs at december 31 , 2016 and does not reflect the effect of prepayments or scheduled principal amortization on our mbs : replace_table_token_15_th at december 31 , 2016 , our crt securities had an amortized cost of $ 382.7 million , a fair value of $ 404.9 million , a weighted average yield of 5.86 % and weighted average time to maturity of 9.0 years . at december 31 , 2015 , our crt securities had an amortized cost of $ 186.3 million , a fair value of $ 183.6 million , a weighted average yield of 5.09 % and a weighted average time to maturity of 9.0 years . residential whole loans the following table presents the contractual maturities of our residential whole loans held by consolidated trusts at december 31 , 2016 and does not reflect estimates of prepayments or scheduled amortization . for residential whole loans at carrying value , amounts presented are estimated based on the underlying loan contractual amounts . replace_table_token_16_th 45 the following table presents at december 31 , 2016 , the dollar amount of our residential whole loans at fair value , contractually maturing after one year , and indicates whether the loans have fixed interest rates or adjustable interest rates : ( in thousands ) residential whole loans at fair value ( 1 ) interest rates : fixed $ 512,988 adjustable 295,392 total $ 808,380 ( 1 ) includes loans on which borrowers have defaulted and are not making payments of principal and or interest as of december 31 , 2016 . information is not presented for residential whole loans at carrying value as income is recognized based on pools of assets with similar risk characteristics using an estimated yield based on cash flows expected to be collected over the lives of the loans in such pools rather than on the contractual coupons of the underlying loans . the following table presents additional information regarding our residential whole loans at fair value at december 31 , 2016 and 2015 : residential whole loans at fair value ( dollars in thousands ) december 31 , 2016 december 31 , 2015 loans 90 days or more past due : number of loans 2,560 2,426 aggregate amount outstanding $ 570,025 $ 493,640 income on residential whole loans at carrying value is recognized based on pools of assets with similar credit risk characteristics using an estimated yield based on cash flows expected to be collected over the lives of the loans in such pools rather than the contractual coupons of the underlying loans . as the unit of account is at the pool level rather than the individual loan level , none of our residential whole loans at carrying value are currently considered 90 days or more past due . exposure to financial counterparties we finance a significant portion of our residential mortgage assets with repurchase agreements and other advances . in connection with these financing arrangements , we pledge our assets as collateral to secure the borrowing . the amount of collateral pledged will typically exceed the amount of the financing with the extent of over-collateralization ranging from 1 % - 6 % of the amount borrowed ( u.s. treasury and agency mbs collateral ) to up to 60 % ( non-agency mbs collateral ) . consequently , while repurchase agreement financing results in us recording a liability to the counterparty in our consolidated balance sheets , we are
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2,373 | due to these errors , our direct operating costs were understated , our refundable tax was overstated , and our liabilities were overstated as of december 31 , 2018. we assessed the materiality of these errors in accordance with staff accounting bulletin no . 99 , materiality , and determined that the errors were immaterial to each of the previously reported periods . to correct this error , we have restated our consolidated balance sheet as of december 31 , 2018 , and consolidated statement of operations and comprehensive loss , consolidated statement of stockholders ' equity and consolidated statement of cash flows for the year ended december 31 , 2018. see note 1 to consolidated financial statements included in item 8 of this annual report for further information , as well as reconciliations of the effects of the restatement on our financial statements for the period indicated . executive overview we are a global data engineering company . we operate in three reporting segments : digital data solutions ( dds ) , synodex and agility . 29 the following table sets forth certain financial data for the two years ended december 31 , 2019 : replace_table_token_0_th adjusted ebitda in addition to measures of financial performance presented in our consolidated financial statements , we monitor โ adjusted ebitda โ to help us evaluate our ongoing operating performance including our ability to operate the business effectively . we define adjusted ebitda as net income ( loss ) attributable to innodata inc. and its subsidiaries in accordance with u.s. gaap before income taxes , depreciation and amortization of intangible assets , impairment charges , stock-based compensation , and loss attributable to non-controlling interests and interest income ( expense ) . we believe adjusted ebitda is useful to our management and investors in evaluating our operating performance and for operational decision-making purposes . in particular , adjusted ebitda facilitates period-to-period comparisons of our operating results on a consistent basis by excluding items that are not reflective of our core operations or are not within our control and helps us identify underlying trends in our business . in this regard , we believe it provides useful information about our operating results , enhances the overall understanding of our past performance and future prospects and allows for greater transparency with respect to key metrics used by the management in our operational decision-making . we also use this measure to establish operational goals for managing our business and evaluating our performance . adjusted ebitda has limitations as an analytical tool and should not be considered in isolation or as a substitute for results reported under u.s. gaap . some of these limitations are : ยท adjusted ebitda does not reflect tax provisions , and such provisions may reflect a reduction in cash available to us ; ยท adjusted ebitda excludes the potential dilutive impact of stock-based compensation expense related to our workforce ; ยท adjusted ebitda does not reflect interest income ( expense ) and net loss attributable to non-controlling interests , and these items may represent a reduction or increase in cash available to us ; ยท although depreciation and amortization are non-cash charges , the assets being depreciated and amortized may have to be replaced in the future , and adjusted ebitda does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements ; and ยท other companies , including companies in our own industry , may calculate adjusted ebitda differently from our calculation , limiting its usefulness as a comparative measure . 30 adjusted ebitda should be considered as a supplement to , and not as a substitute for or superior to , u.s. gaap net income ( loss ) . the following tables reconcile net income ( loss ) to adjusted ebitda ( loss ) for the periods presented ( in thousands ) : replace_table_token_1_th 31 replace_table_token_2_th results of operations year ended december 31 , 2019 compared to the year ended december 31 , 2018 revenues total r evenues were $ 55.9 million for the year ended december 31 , 2019 , a 3 % decrease from $ 57.4 million for the year ended december 31 , 2018. revenues from the dds segment were $ 41.3 million and $ 43.5 million for the years ended december 31 , 2019 and 2018 , respectively , a decline of $ 2.2 million or approximately 5 % . the decline was due to lower revenue from the top two clients of dds . revenues from the synodex segment were $ 3.9 million and $ 4.1 million for the years ended december 31 , 2019 and 2018 , respectively , a decrease of $ 0.2 million or approximately 5 % . the decrease was primarily due to reduction in volume from two existing clients partially offset by an increase in volume from one existing client and volume from a new client . revenues from the agility segment were $ 10.7 million and $ 9.8 million for the year ended december 31 , 2019 and 2018 , respectively , an increase of $ 0.9 million or approximately 9 % . the increase was attributable to higher revenues from subscriptions to our agility media database . two clients in the dds segment generated approximately 26 % and 30 % of the company 's total revenues in the fiscal years ended december 31 , 2019 and 2018 , respectively . no other client accounted for 10 % or more of total revenues during these periods . story_separator_special_tag we expect delays in our indian subsidiary receiving further service tax refunds until this matter is adjudicated with finality , and currently have service tax credits of approximately $ 1.0 million recorded as a receivable . based on our counsel 's assessment , we have not recorded any tax liability for this case . net loss we had a net loss of $ 1.6 million during the year ended december 31 , 2019 , compared to a net loss of $ 0.3 million during the year ended december 31 , 2018. net loss for the year ended december 31 , 2019 included a one-time charge of $ 400,000 for an assessment of retroactive foreign social security contributions as a result of a decision by the supreme court of india that affects companies generally . the dds segment was breakeven for the year ended december 31 , 2019 , compared to a net income of $ 1.6 million for the year ended december 31 , 2018 , net of intersegment profits . the decrease in net income of $ 1.6 million was attributable to lower revenues of $ 2.2 million , higher operating expenses of $ 0.8 million , a decrease in tax provisions of $ 0.7 million , and a decrease in goodwill impairment of $ 0.7 million . net income for the synodex segment was breakeven for the year ended december 31 , 2019 , compared to net income of $ 0.4 million for the year ended december 31 , 2018 , net of intersegment profits . the decrease was primarily due to revenue timing from one client partially offset by an increase in volume from one existing client , volume from a new client and an increase in the cost of hardware and software upgrades expensed during the year . net loss for the agility segment was $ 1.6 million for the year ended december 31 , 2019 , compared to a net loss of $ 2.3 million for the year ended december 31 , 2018. the $ 0.7 million improvement was the result of higher revenues offset in part by increased expenditures to support revenue growth . adjusted ebitda adjusted ebitda for the year ended december 31 , 2019 was $ 3.3 million compared to an adjusted ebitda of $ 6.4 million for the year ended december 31 , 2018 , a decrease of $ 3.1 million . 36 adjusted ebitda for the dds segment was $ 3.2 million and $ 6.7 million for the years ended december 31 , 2019 and 2018 , respectively , a decrease of $ 3.5 million or approximately 52 % . the decrease was primarily attributable to a higher net loss of $ 1.6 million , a lower tax provision of $ 0.7 million , lower depreciation and amortization of $ 0.5 million and $ 0.7 million of goodwill impairment for the year ended december 31 , 2018. adjusted ebitda for the synodex segment was $ 0.1 million and $ 0.4 million for the years ended december 31 , 2019 and 2018 , respectively , a decrease of $ 0.3 million . the decrease was primarily due to revenue timing from one client partially offset by an increase in volume from one existing client and volume from a new client and an increase in the cost of hardware and software upgrades expensed during the year . adjusted ebitda in the agility segment was breakeven for the year ended december 31 , 2019 compared to an adjusted ebitda loss of $ 0.7 million for the year ended december 31 , 2018 , an improvement of $ 0.7 million . the improvement was due to higher revenues for the year ended december 31 , 2019. liquidity and capital resources selected measures of liquidity and capital resources , expressed in thousands , are as follows : december 31 , 2019 2018 restated story_separator_special_tag justify ; text-indent : 0.5in `` > inflation , seasonality and prevailing economic conditions although most of our revenues are denominated in u.s. dollars , a significant portion of our revenues is denominated in canadian dollars , pound sterling and euros . in addition , a significant portion of our expenses , primarily labor expenses in the philippines , india , sri lanka , germany , canada and israel , is incurred in the local currencies of the countries in which we operate . for financial reporting purposes , we translate all non-u.s. denominated transactions into u.s. dollars in accordance with u.s. gaap . thus , we are exposed to the risk that fluctuations in the value of these currencies relative to the u.s. dollar could have a direct impact on our revenues and our results of operations . the philippines and india have at times experienced high rates of inflation as well as major fluctuations in the exchange rate between the philippine peso and the u.s. dollar and the indian rupee and the u.s. dollar . as of december 31 , 2019 , the aggregate notional amount of our hedges against the indian rupee was approximately $ 4.3 million , and we had no hedges against the philippine peso . fluctuations in exchange rates also affect the value of funds held by our foreign subsidiaries . we do not currently intend to hedge these assets . 38 our most significant costs are the salaries and related benefits of our employees in asia . we are exposed to high inflation in wage rates in the countries in which we operate . we generally perform work for our clients under project-specific contracts , requirements-based contracts or long-term contracts . we must adequately anticipate wage increases , particularly on our fixed-price contracts . there can be no assurance that we will be able to recover cost increases through increases in the prices that we charge for our services to our clients . our quarterly operating results are subject to certain fluctuations . we experience fluctuations in our revenue and earnings as we replace
| cash and cash equivalents $ 10,874 $ 10,869 working capital 8,789 12,267 at december 31 , 2019 , we had cash and cash equivalents of $ 10.9 million , of which $ 4.8 million was held by our foreign subsidiaries , and $ 6.1 million was held in the united states . despite the passage of the new tax law under which we may repatriate funds from overseas after paying the toll charge , it is our intent as of december 31 , 2019 , to permanently reinvest the overseas funds in our foreign subsidiaries on account of the withholding tax that we would have to incur on the actual remittances . we have used , and plan to use , our cash and cash equivalents for ( i ) investments in the agility segment ; ( ii ) the expansion of our other operations ; ( iii ) technology innovation ; ( iv ) product management and strategic marketing ; ( v ) general corporate purposes , including working capital ; and ( vi ) possible business acquisitions . as of december 31 , 2019 , we had working capital of approximately $ 8.8 million , as compared to working capital of approximately $ 12.3 million as of december 31 , 2018. we did not have any material commitments for capital expenditures as of december 31 , 2019. during 2019 , we re-purchased 1,503,095 shares of our common stock at a volume-weighted average price of $ 1.23 per share , for a total cost of $ 1.8 million . we believe that our existing cash and cash equivalents and internally generated funds will provide sufficient sources of liquidity to satisfy our financial needs for the next 12 months from the date of issuance of these financial statements .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash and cash equivalents $ 10,874 $ 10,869 working capital 8,789 12,267 at december 31 , 2019 , we had cash and cash equivalents of $ 10.9 million , of which $ 4.8 million was held by our foreign subsidiaries , and $ 6.1 million was held in the united states . despite the passage of the new tax law under which we may repatriate funds from overseas after paying the toll charge , it is our intent as of december 31 , 2019 , to permanently reinvest the overseas funds in our foreign subsidiaries on account of the withholding tax that we would have to incur on the actual remittances . we have used , and plan to use , our cash and cash equivalents for ( i ) investments in the agility segment ; ( ii ) the expansion of our other operations ; ( iii ) technology innovation ; ( iv ) product management and strategic marketing ; ( v ) general corporate purposes , including working capital ; and ( vi ) possible business acquisitions . as of december 31 , 2019 , we had working capital of approximately $ 8.8 million , as compared to working capital of approximately $ 12.3 million as of december 31 , 2018. we did not have any material commitments for capital expenditures as of december 31 , 2019. during 2019 , we re-purchased 1,503,095 shares of our common stock at a volume-weighted average price of $ 1.23 per share , for a total cost of $ 1.8 million . we believe that our existing cash and cash equivalents and internally generated funds will provide sufficient sources of liquidity to satisfy our financial needs for the next 12 months from the date of issuance of these financial statements .
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Suspicious Activity Report : due to these errors , our direct operating costs were understated , our refundable tax was overstated , and our liabilities were overstated as of december 31 , 2018. we assessed the materiality of these errors in accordance with staff accounting bulletin no . 99 , materiality , and determined that the errors were immaterial to each of the previously reported periods . to correct this error , we have restated our consolidated balance sheet as of december 31 , 2018 , and consolidated statement of operations and comprehensive loss , consolidated statement of stockholders ' equity and consolidated statement of cash flows for the year ended december 31 , 2018. see note 1 to consolidated financial statements included in item 8 of this annual report for further information , as well as reconciliations of the effects of the restatement on our financial statements for the period indicated . executive overview we are a global data engineering company . we operate in three reporting segments : digital data solutions ( dds ) , synodex and agility . 29 the following table sets forth certain financial data for the two years ended december 31 , 2019 : replace_table_token_0_th adjusted ebitda in addition to measures of financial performance presented in our consolidated financial statements , we monitor โ adjusted ebitda โ to help us evaluate our ongoing operating performance including our ability to operate the business effectively . we define adjusted ebitda as net income ( loss ) attributable to innodata inc. and its subsidiaries in accordance with u.s. gaap before income taxes , depreciation and amortization of intangible assets , impairment charges , stock-based compensation , and loss attributable to non-controlling interests and interest income ( expense ) . we believe adjusted ebitda is useful to our management and investors in evaluating our operating performance and for operational decision-making purposes . in particular , adjusted ebitda facilitates period-to-period comparisons of our operating results on a consistent basis by excluding items that are not reflective of our core operations or are not within our control and helps us identify underlying trends in our business . in this regard , we believe it provides useful information about our operating results , enhances the overall understanding of our past performance and future prospects and allows for greater transparency with respect to key metrics used by the management in our operational decision-making . we also use this measure to establish operational goals for managing our business and evaluating our performance . adjusted ebitda has limitations as an analytical tool and should not be considered in isolation or as a substitute for results reported under u.s. gaap . some of these limitations are : ยท adjusted ebitda does not reflect tax provisions , and such provisions may reflect a reduction in cash available to us ; ยท adjusted ebitda excludes the potential dilutive impact of stock-based compensation expense related to our workforce ; ยท adjusted ebitda does not reflect interest income ( expense ) and net loss attributable to non-controlling interests , and these items may represent a reduction or increase in cash available to us ; ยท although depreciation and amortization are non-cash charges , the assets being depreciated and amortized may have to be replaced in the future , and adjusted ebitda does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements ; and ยท other companies , including companies in our own industry , may calculate adjusted ebitda differently from our calculation , limiting its usefulness as a comparative measure . 30 adjusted ebitda should be considered as a supplement to , and not as a substitute for or superior to , u.s. gaap net income ( loss ) . the following tables reconcile net income ( loss ) to adjusted ebitda ( loss ) for the periods presented ( in thousands ) : replace_table_token_1_th 31 replace_table_token_2_th results of operations year ended december 31 , 2019 compared to the year ended december 31 , 2018 revenues total r evenues were $ 55.9 million for the year ended december 31 , 2019 , a 3 % decrease from $ 57.4 million for the year ended december 31 , 2018. revenues from the dds segment were $ 41.3 million and $ 43.5 million for the years ended december 31 , 2019 and 2018 , respectively , a decline of $ 2.2 million or approximately 5 % . the decline was due to lower revenue from the top two clients of dds . revenues from the synodex segment were $ 3.9 million and $ 4.1 million for the years ended december 31 , 2019 and 2018 , respectively , a decrease of $ 0.2 million or approximately 5 % . the decrease was primarily due to reduction in volume from two existing clients partially offset by an increase in volume from one existing client and volume from a new client . revenues from the agility segment were $ 10.7 million and $ 9.8 million for the year ended december 31 , 2019 and 2018 , respectively , an increase of $ 0.9 million or approximately 9 % . the increase was attributable to higher revenues from subscriptions to our agility media database . two clients in the dds segment generated approximately 26 % and 30 % of the company 's total revenues in the fiscal years ended december 31 , 2019 and 2018 , respectively . no other client accounted for 10 % or more of total revenues during these periods . story_separator_special_tag we expect delays in our indian subsidiary receiving further service tax refunds until this matter is adjudicated with finality , and currently have service tax credits of approximately $ 1.0 million recorded as a receivable . based on our counsel 's assessment , we have not recorded any tax liability for this case . net loss we had a net loss of $ 1.6 million during the year ended december 31 , 2019 , compared to a net loss of $ 0.3 million during the year ended december 31 , 2018. net loss for the year ended december 31 , 2019 included a one-time charge of $ 400,000 for an assessment of retroactive foreign social security contributions as a result of a decision by the supreme court of india that affects companies generally . the dds segment was breakeven for the year ended december 31 , 2019 , compared to a net income of $ 1.6 million for the year ended december 31 , 2018 , net of intersegment profits . the decrease in net income of $ 1.6 million was attributable to lower revenues of $ 2.2 million , higher operating expenses of $ 0.8 million , a decrease in tax provisions of $ 0.7 million , and a decrease in goodwill impairment of $ 0.7 million . net income for the synodex segment was breakeven for the year ended december 31 , 2019 , compared to net income of $ 0.4 million for the year ended december 31 , 2018 , net of intersegment profits . the decrease was primarily due to revenue timing from one client partially offset by an increase in volume from one existing client , volume from a new client and an increase in the cost of hardware and software upgrades expensed during the year . net loss for the agility segment was $ 1.6 million for the year ended december 31 , 2019 , compared to a net loss of $ 2.3 million for the year ended december 31 , 2018. the $ 0.7 million improvement was the result of higher revenues offset in part by increased expenditures to support revenue growth . adjusted ebitda adjusted ebitda for the year ended december 31 , 2019 was $ 3.3 million compared to an adjusted ebitda of $ 6.4 million for the year ended december 31 , 2018 , a decrease of $ 3.1 million . 36 adjusted ebitda for the dds segment was $ 3.2 million and $ 6.7 million for the years ended december 31 , 2019 and 2018 , respectively , a decrease of $ 3.5 million or approximately 52 % . the decrease was primarily attributable to a higher net loss of $ 1.6 million , a lower tax provision of $ 0.7 million , lower depreciation and amortization of $ 0.5 million and $ 0.7 million of goodwill impairment for the year ended december 31 , 2018. adjusted ebitda for the synodex segment was $ 0.1 million and $ 0.4 million for the years ended december 31 , 2019 and 2018 , respectively , a decrease of $ 0.3 million . the decrease was primarily due to revenue timing from one client partially offset by an increase in volume from one existing client and volume from a new client and an increase in the cost of hardware and software upgrades expensed during the year . adjusted ebitda in the agility segment was breakeven for the year ended december 31 , 2019 compared to an adjusted ebitda loss of $ 0.7 million for the year ended december 31 , 2018 , an improvement of $ 0.7 million . the improvement was due to higher revenues for the year ended december 31 , 2019. liquidity and capital resources selected measures of liquidity and capital resources , expressed in thousands , are as follows : december 31 , 2019 2018 restated story_separator_special_tag justify ; text-indent : 0.5in `` > inflation , seasonality and prevailing economic conditions although most of our revenues are denominated in u.s. dollars , a significant portion of our revenues is denominated in canadian dollars , pound sterling and euros . in addition , a significant portion of our expenses , primarily labor expenses in the philippines , india , sri lanka , germany , canada and israel , is incurred in the local currencies of the countries in which we operate . for financial reporting purposes , we translate all non-u.s. denominated transactions into u.s. dollars in accordance with u.s. gaap . thus , we are exposed to the risk that fluctuations in the value of these currencies relative to the u.s. dollar could have a direct impact on our revenues and our results of operations . the philippines and india have at times experienced high rates of inflation as well as major fluctuations in the exchange rate between the philippine peso and the u.s. dollar and the indian rupee and the u.s. dollar . as of december 31 , 2019 , the aggregate notional amount of our hedges against the indian rupee was approximately $ 4.3 million , and we had no hedges against the philippine peso . fluctuations in exchange rates also affect the value of funds held by our foreign subsidiaries . we do not currently intend to hedge these assets . 38 our most significant costs are the salaries and related benefits of our employees in asia . we are exposed to high inflation in wage rates in the countries in which we operate . we generally perform work for our clients under project-specific contracts , requirements-based contracts or long-term contracts . we must adequately anticipate wage increases , particularly on our fixed-price contracts . there can be no assurance that we will be able to recover cost increases through increases in the prices that we charge for our services to our clients . our quarterly operating results are subject to certain fluctuations . we experience fluctuations in our revenue and earnings as we replace
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2,374 | , including those of our third-party vendors and other service providers , may prove inadequate , which could adversely affect customer confidence in peoples and or result in peoples incurring a financial loss ; ( 15 ) the overall adequacy of peoples ' risk management program ; and ( 16 ) other risk factors relating to the banking industry or peoples as detailed from time to time in peoples ' reports filed with the securities and exchange commission ( โ sec โ ) , including those risk factors included in the disclosure under `` item 1a . risk factors `` of this form 10-k. all forward-looking statements speak only as of the filing date of this form 10-k and are expressly qualified in their entirety by the cautionary statements . although management believes the expectations in these forward-looking statements are based on reasonable assumptions within the bounds of management 's knowledge of peoples ' business and operations , it is possible that actual results may differ materially from these projections . additionally , peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the filing date of this form 10-k or to reflect the occurrence of unanticipated events except as may be required by applicable legal requirements . copies of documents filed with the sec are available free of charge at the sec 's website at www.sec.gov and or from peoples bancorp inc. 's website โ www.peoplesbancorp.com under the โ investor relations โ section . 26 the following discussion and analysis of peoples ' consolidated financial statements is presented to provide insight into management 's assessment of the financial results and condition for the periods presented . this discussion and analysis should be read in conjunction with the audited consolidated financial statements and notes thereto , as well as the ratios and statistics , contained elsewhere in this form 10-k. summary of significant transactions and events the following is a summary of transactions or events that have impacted or are expected by management to impact peoples ' results of operations or financial condition : โฆ during the second quarter of 2012 , peoples became more active with its merger and acquisition activities . these activities included the merger transactions with sistersville bancorp , inc. ( `` sistersville `` ) and its wholly-owned subsidiary , first federal savings bank , announced on june 5 , 2012 and subsequently completed on september 14 , 2012 , and the purchase of a small financial advisory book of business in wood county , west virginia . in the third quarter of 2012 , peoples purchased another small financial advisory book of business in gallipolis , ohio . these transactions are more fully described in note 18 of the notes to the consolidated financial statements . in addition , peoples ' management team continues to evaluate other acquisition opportunities involving banks , insurance agencies and wealth management providers located in ohio , west virginia and kentucky . on january 2 , 2013 , peoples insurance acquired a commercial insurance agency office and related customer accounts in the pikeville , kentucky area . โฆ in 2012 , peoples incurred $ 641,000 of acquisition-related expenses , primarily fees for legal costs , other professional services , deconversion costs and write-offs associated with assets acquired . approximately a quarter of these costs related to acquisition opportunities that management determined did not meet peoples ' criteria and thus negotiations were terminated prior to completion . โฆ on september 17 , 2012 , peoples introduced its new brand as part of a company-wide brand revitalization . the brand is peoples ' promise , which is a guarantee of satisfaction and quality . costs associated with rebranding efforts were approximately $ 421,000 during 2012. peoples will continue to incur costs throughout 2013 associated with the brand revitalization , including marketing due to advertisement , and depreciation for the revitalization of our branch network . โฆ during 2012 , peoples increased the quarterly dividend declared to common shareholders by 20 % . the dividend declared in first quarter of 2012 was $ 0.11 and the dividend declared in the fourth quarter of 2012 was $ 0.12 , compared to the quarterly dividend of $ 0.10 that was declared during 2011 . โฆ as described in note 12 of the notes to the consolidated financial statements , peoples incurred settlement charges of $ 835,000 during 2012 due to the aggregate amount of lump-sum distributions to participants in peoples ' defined benefit pension plan exceeding the threshold for recognizing such charges during the second quarter . settlement charges of $ 815,000 were recognized during the 2011 . โฆ as described in note 10 of the notes to the consolidated financial statements , peoples repaid the entire $ 23.0 million outstanding principal amount of its junior subordinated debentures and related trust preferred securities on december 19 , 2012 ( the `` trust preferred redemption `` ) . this transaction resulted in peoples incurring a pre-tax loss of $ 1.0 million for the redemption premium and unamortized issuance costs . peoples funded the repayment with a term note from an unaffiliated financial institution at a significantly lower interest rate . as a result , peoples will realize an annual interest expense savings of $ 1.1 million beginning in 2013 . โฆ in the first quarter of 2012 , peoples prepaid $ 35.0 million of wholesale borrowings using short-term funds , which resulted in prepayment charges of $ 3.1 million . these borrowings had an average cost of 3.09 % and consisted of both term repurchase agreements and advances from the federal home loan bank of cincinnati . the impact of the prepayment charges on first quarter earnings was offset by $ 3.2 million in gains from the sale of $ 60.5 million in investment securities . the securities sold were primarily mortgage-backed securities issued by u.s. government-sponsored agencies . story_separator_special_tag given the nature of peoples ' deferred tax assets , management determined no valuation allowances were needed at either december 31 , 2012 or 2011 . the calculation of tax liabilities is complex and requires the use of estimates and judgment since it involves the application of complex tax laws that are subject to different interpretations by peoples and the various tax authorities . these interpretations are subject to challenge by the tax authorities upon audit or to reinterpretation based on management 's ongoing assessment of facts and evolving case law . from time-to-time and in the ordinary course of business , peoples is involved in inquiries and reviews by tax authorities that normally require management to provide supplemental information to support certain tax positions taken by peoples in its tax returns . uncertain tax positions are initially recognized in the consolidated financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities . such tax positions are initially and subsequently measured as the largest amount of tax benefit that is greater than 50 % likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts . the amount of unrecognized tax benefits was immaterial at both december 31 , 2012 and 2011 . management believes it has taken appropriate positions on its tax returns , although the ultimate outcome of any tax review can not be predicted with certainty . consequently , no assurance can be given that the final outcome of these matters will not be different than what is reflected in the current and historical financial statements . fair value measurements as a financial services company , the carrying value of certain financial assets and liabilities is impacted by the application of fair value measurements , either directly or indirectly . in certain cases , an asset or liability is measured and reported at fair value on a recurring basis , such as available-for-sale investment securities . in other cases , management must rely on estimates or judgments to determine if an asset or liability not measured at fair value warrants an impairment write-down or whether a valuation reserve should be established . given the inherent volatility , the use of fair value measurements may have a significant impact on the carrying value of assets or liabilities , or result in material changes to the consolidated financial statements , from period to period . detailed information regarding fair value measurements can be found in note 2 of the notes to the consolidated financial statements . the following is a summary of those assets and liabilities that may be affected by fair value measurements , as well as a brief description of the current accounting practices and valuation methodologies employed by peoples : available-for-sale investment securities investment securities classified as available-for-sale are measured and reported at fair value on a recurring basis . for most securities , the fair value is based upon quoted market prices ( level 1 ) or determined by pricing models that consider observable market data ( level 2 ) . for structured investment securities , the fair value often must be based upon unobservable market data , such as non-binding broker quotes and discounted cash flow analysis or similar models , due to the absence of an active market for these securities ( level 3 ) . as a result , management 's determination of fair value for these securities is highly dependent on subjective or complex judgments , estimates and assumptions , which could change materially between periods . management occasionally uses information from independent third-party consultants in its determination of the fair value of more complex structured investment securities . at december 31 , 2012 , all of peoples ' available-for-sale investment securities were measured using observable market data . at december 31 , 2012 , the majority of the investment securities with level 2 fair values were determined using information provided by third-party pricing services . management reviews the fair values provided by these third parties on a monthly basis and challenges prices when it believes a discrepancy in pricing exists . management also reviews the valuation methodology and quality controls utilized by the pricing services in their overall assessment of the reasonableness of the fair values provided . to the extent available , management utilizes an independent third-party pricing source to assist in its assessment of the values provided by its primary pricing services . management challenges third-party valuations for any security where it believes a material difference in pricing exists . based on peoples ' past experience , these challenges more-often-than-not result in the third party adjusting its valuation of the security . impaired loans for loans considered impaired , the amount of impairment loss recognized is determined based on a discounted cash flow analysis or the fair value of the underlying collateral if repayment is expected solely from the sale of the collateral . management typically relies on the fair value of the underlying collateral due to the significant uncertainty surrounding the borrower 's ability to make future payments . the vast majority of the collateral securing impaired loans is real estate , 31 although the collateral may also include accounts receivable and equipment , inventory or similar personal property . the fair value of the collateral used by management represents the estimated proceeds to be received from the sale of the collateral , less costs incurred during the sale , based upon observable market data or market value data provided by independent , licensed or certified appraisers . goodwill the process of evaluating goodwill for impairment involves highly subjective or complex judgments , estimates and assumptions regarding the fair value of peoples ' reporting unit and , in some cases , goodwill itself . as a result , changes to these judgments , estimates and assumptions in future periods could result in materially different results . peoples
| cash and cash equivalents peoples considers cash and cash equivalents to consist of federal funds sold , cash and balances due from banks , interest-bearing balances in other institutions and other short-term investments that are readily liquid . the amount of cash and cash equivalents fluctuates on a daily basis due to customer activity and peoples ' liquidity needs . beginning in 2010 , peoples has maintained excess cash reserves at the federal reserve bank of cleveland , which are included in `` interest-bearing deposits in other banks '' on the consolidated balance sheets , rather than federal funds sold due to more favorable interest rates . at december 31 , 2012 , excess cash reserves at the federal reserve bank were $ 11.6 million , compared to $ 4.4 million at december 31 , 2011 . the amount of excess cash reserves maintained is dependent upon peoples ' daily liquidity position , which is driven primarily by changes in deposit and loan balances . 41 in 2012 , peoples ' total cash and cash equivalents increased $ 23.6 million , as cash provided by peoples ' operating and financing activities of $ 41.3 million and $ 51.9 million , respectively , exceeded the $ 69.6 million of cash used by investing activities .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash and cash equivalents peoples considers cash and cash equivalents to consist of federal funds sold , cash and balances due from banks , interest-bearing balances in other institutions and other short-term investments that are readily liquid . the amount of cash and cash equivalents fluctuates on a daily basis due to customer activity and peoples ' liquidity needs . beginning in 2010 , peoples has maintained excess cash reserves at the federal reserve bank of cleveland , which are included in `` interest-bearing deposits in other banks '' on the consolidated balance sheets , rather than federal funds sold due to more favorable interest rates . at december 31 , 2012 , excess cash reserves at the federal reserve bank were $ 11.6 million , compared to $ 4.4 million at december 31 , 2011 . the amount of excess cash reserves maintained is dependent upon peoples ' daily liquidity position , which is driven primarily by changes in deposit and loan balances . 41 in 2012 , peoples ' total cash and cash equivalents increased $ 23.6 million , as cash provided by peoples ' operating and financing activities of $ 41.3 million and $ 51.9 million , respectively , exceeded the $ 69.6 million of cash used by investing activities .
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Suspicious Activity Report : , including those of our third-party vendors and other service providers , may prove inadequate , which could adversely affect customer confidence in peoples and or result in peoples incurring a financial loss ; ( 15 ) the overall adequacy of peoples ' risk management program ; and ( 16 ) other risk factors relating to the banking industry or peoples as detailed from time to time in peoples ' reports filed with the securities and exchange commission ( โ sec โ ) , including those risk factors included in the disclosure under `` item 1a . risk factors `` of this form 10-k. all forward-looking statements speak only as of the filing date of this form 10-k and are expressly qualified in their entirety by the cautionary statements . although management believes the expectations in these forward-looking statements are based on reasonable assumptions within the bounds of management 's knowledge of peoples ' business and operations , it is possible that actual results may differ materially from these projections . additionally , peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the filing date of this form 10-k or to reflect the occurrence of unanticipated events except as may be required by applicable legal requirements . copies of documents filed with the sec are available free of charge at the sec 's website at www.sec.gov and or from peoples bancorp inc. 's website โ www.peoplesbancorp.com under the โ investor relations โ section . 26 the following discussion and analysis of peoples ' consolidated financial statements is presented to provide insight into management 's assessment of the financial results and condition for the periods presented . this discussion and analysis should be read in conjunction with the audited consolidated financial statements and notes thereto , as well as the ratios and statistics , contained elsewhere in this form 10-k. summary of significant transactions and events the following is a summary of transactions or events that have impacted or are expected by management to impact peoples ' results of operations or financial condition : โฆ during the second quarter of 2012 , peoples became more active with its merger and acquisition activities . these activities included the merger transactions with sistersville bancorp , inc. ( `` sistersville `` ) and its wholly-owned subsidiary , first federal savings bank , announced on june 5 , 2012 and subsequently completed on september 14 , 2012 , and the purchase of a small financial advisory book of business in wood county , west virginia . in the third quarter of 2012 , peoples purchased another small financial advisory book of business in gallipolis , ohio . these transactions are more fully described in note 18 of the notes to the consolidated financial statements . in addition , peoples ' management team continues to evaluate other acquisition opportunities involving banks , insurance agencies and wealth management providers located in ohio , west virginia and kentucky . on january 2 , 2013 , peoples insurance acquired a commercial insurance agency office and related customer accounts in the pikeville , kentucky area . โฆ in 2012 , peoples incurred $ 641,000 of acquisition-related expenses , primarily fees for legal costs , other professional services , deconversion costs and write-offs associated with assets acquired . approximately a quarter of these costs related to acquisition opportunities that management determined did not meet peoples ' criteria and thus negotiations were terminated prior to completion . โฆ on september 17 , 2012 , peoples introduced its new brand as part of a company-wide brand revitalization . the brand is peoples ' promise , which is a guarantee of satisfaction and quality . costs associated with rebranding efforts were approximately $ 421,000 during 2012. peoples will continue to incur costs throughout 2013 associated with the brand revitalization , including marketing due to advertisement , and depreciation for the revitalization of our branch network . โฆ during 2012 , peoples increased the quarterly dividend declared to common shareholders by 20 % . the dividend declared in first quarter of 2012 was $ 0.11 and the dividend declared in the fourth quarter of 2012 was $ 0.12 , compared to the quarterly dividend of $ 0.10 that was declared during 2011 . โฆ as described in note 12 of the notes to the consolidated financial statements , peoples incurred settlement charges of $ 835,000 during 2012 due to the aggregate amount of lump-sum distributions to participants in peoples ' defined benefit pension plan exceeding the threshold for recognizing such charges during the second quarter . settlement charges of $ 815,000 were recognized during the 2011 . โฆ as described in note 10 of the notes to the consolidated financial statements , peoples repaid the entire $ 23.0 million outstanding principal amount of its junior subordinated debentures and related trust preferred securities on december 19 , 2012 ( the `` trust preferred redemption `` ) . this transaction resulted in peoples incurring a pre-tax loss of $ 1.0 million for the redemption premium and unamortized issuance costs . peoples funded the repayment with a term note from an unaffiliated financial institution at a significantly lower interest rate . as a result , peoples will realize an annual interest expense savings of $ 1.1 million beginning in 2013 . โฆ in the first quarter of 2012 , peoples prepaid $ 35.0 million of wholesale borrowings using short-term funds , which resulted in prepayment charges of $ 3.1 million . these borrowings had an average cost of 3.09 % and consisted of both term repurchase agreements and advances from the federal home loan bank of cincinnati . the impact of the prepayment charges on first quarter earnings was offset by $ 3.2 million in gains from the sale of $ 60.5 million in investment securities . the securities sold were primarily mortgage-backed securities issued by u.s. government-sponsored agencies . story_separator_special_tag given the nature of peoples ' deferred tax assets , management determined no valuation allowances were needed at either december 31 , 2012 or 2011 . the calculation of tax liabilities is complex and requires the use of estimates and judgment since it involves the application of complex tax laws that are subject to different interpretations by peoples and the various tax authorities . these interpretations are subject to challenge by the tax authorities upon audit or to reinterpretation based on management 's ongoing assessment of facts and evolving case law . from time-to-time and in the ordinary course of business , peoples is involved in inquiries and reviews by tax authorities that normally require management to provide supplemental information to support certain tax positions taken by peoples in its tax returns . uncertain tax positions are initially recognized in the consolidated financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities . such tax positions are initially and subsequently measured as the largest amount of tax benefit that is greater than 50 % likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts . the amount of unrecognized tax benefits was immaterial at both december 31 , 2012 and 2011 . management believes it has taken appropriate positions on its tax returns , although the ultimate outcome of any tax review can not be predicted with certainty . consequently , no assurance can be given that the final outcome of these matters will not be different than what is reflected in the current and historical financial statements . fair value measurements as a financial services company , the carrying value of certain financial assets and liabilities is impacted by the application of fair value measurements , either directly or indirectly . in certain cases , an asset or liability is measured and reported at fair value on a recurring basis , such as available-for-sale investment securities . in other cases , management must rely on estimates or judgments to determine if an asset or liability not measured at fair value warrants an impairment write-down or whether a valuation reserve should be established . given the inherent volatility , the use of fair value measurements may have a significant impact on the carrying value of assets or liabilities , or result in material changes to the consolidated financial statements , from period to period . detailed information regarding fair value measurements can be found in note 2 of the notes to the consolidated financial statements . the following is a summary of those assets and liabilities that may be affected by fair value measurements , as well as a brief description of the current accounting practices and valuation methodologies employed by peoples : available-for-sale investment securities investment securities classified as available-for-sale are measured and reported at fair value on a recurring basis . for most securities , the fair value is based upon quoted market prices ( level 1 ) or determined by pricing models that consider observable market data ( level 2 ) . for structured investment securities , the fair value often must be based upon unobservable market data , such as non-binding broker quotes and discounted cash flow analysis or similar models , due to the absence of an active market for these securities ( level 3 ) . as a result , management 's determination of fair value for these securities is highly dependent on subjective or complex judgments , estimates and assumptions , which could change materially between periods . management occasionally uses information from independent third-party consultants in its determination of the fair value of more complex structured investment securities . at december 31 , 2012 , all of peoples ' available-for-sale investment securities were measured using observable market data . at december 31 , 2012 , the majority of the investment securities with level 2 fair values were determined using information provided by third-party pricing services . management reviews the fair values provided by these third parties on a monthly basis and challenges prices when it believes a discrepancy in pricing exists . management also reviews the valuation methodology and quality controls utilized by the pricing services in their overall assessment of the reasonableness of the fair values provided . to the extent available , management utilizes an independent third-party pricing source to assist in its assessment of the values provided by its primary pricing services . management challenges third-party valuations for any security where it believes a material difference in pricing exists . based on peoples ' past experience , these challenges more-often-than-not result in the third party adjusting its valuation of the security . impaired loans for loans considered impaired , the amount of impairment loss recognized is determined based on a discounted cash flow analysis or the fair value of the underlying collateral if repayment is expected solely from the sale of the collateral . management typically relies on the fair value of the underlying collateral due to the significant uncertainty surrounding the borrower 's ability to make future payments . the vast majority of the collateral securing impaired loans is real estate , 31 although the collateral may also include accounts receivable and equipment , inventory or similar personal property . the fair value of the collateral used by management represents the estimated proceeds to be received from the sale of the collateral , less costs incurred during the sale , based upon observable market data or market value data provided by independent , licensed or certified appraisers . goodwill the process of evaluating goodwill for impairment involves highly subjective or complex judgments , estimates and assumptions regarding the fair value of peoples ' reporting unit and , in some cases , goodwill itself . as a result , changes to these judgments , estimates and assumptions in future periods could result in materially different results . peoples
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2,375 | the corrected aisc number has also been included in table 1-11 on page 1-25. where appropriate , text changes have been made to reflect the correct numbers now shown in the tables . 2. on january 12 , 2017 , the company paid $ 14.7 million for the timely and full satisfaction of the final derivative payment due with respect to the acquisition of certain mining claims and related rights in the vicinity of the livengood project and the company is now in full ownership and has no further liability with respect to this acquisition . the disclosure regarding the livengood property description and location in section 4.1.7 , pages 4-5 and 4-6 , has been updated accordingly . management changes on january 23 , 2017 , the ith board approved a management transition plan , which was implemented on january 31 , 2017 , in which karl hanneman , previously the chief operating officer ( coo ) , became the chief executive officer ( ceo ) , managing both the ceo and coo responsibilities , and thomas irwin , the previous ceo , transitioned into a part-time position of senior advisor prior to his being considered for nomination to the board at the company 's may 2017 annual general meeting ( agm ) . on may 24 , 2017 , the shareholders elected mr. irwin as a director of the company board . 40 director changes at the 2017 annual general meeting of shareholders in vancouver , b.c . on may 24 , 2017 , the shareholders fixed the size of the board at eight with the addition of mr. victor flores and mr. thomas irwin . on november 6 , 2017 , general mark hamilton resigned as director to pursue other opportunities . the board appointed stuart harshaw to the board effective april 1 , 2018 , to fill the vacancy that resulted from general hamilton 's resignation . deferred share unit incentive plan on april 4 , 2017 , the company adopted a deferred share unit plan ( the โ dsu plan โ ) . on may 24 , 2017 , at the company 's annual general meeting of shareholders , the dsu plan was approved . see note 8 within the notes to consolidated financial statements in item 8 of this annual report on form 10-k. other developments on january 12 , 2017 , the company paid $ 14.7 million for the timely and full satisfaction of the final derivative payment due with respect to acquisition of certain mining claims and related rights in the vicinity of the livengood gold project . on january 17 , 2017 , the full deed of reconveyance releasing the deed of trust on the acquired property was recorded and the company now fully owns this property and has no further liability with respect to this acquisition . in connection with the company 's $ 22.0 million private placement completed on december 28 , 2016 , the tsx commenced a de-listing review with respect to the company . on april 7 , 2017 , the tsx issued a bulletin confirming that it had completed its review and that the company continued to meet its listing requirements . 2018 financing on march 13 , 2018 , the company completed a non-brokered private placement pursuant to which it issued 24,000,000 common shares at $ 0.50 per share for gross proceeds of $ 12.0 million . the company intends to use the funds for continuation of optimization studies to further improve and de-risk the project , required environmental baseline studies , and for general working capital purposes . outlook on march 12 , 2018 the board approved a 2018 budget of $ 5.1 million . the work program incorporated in this budget will build upon the metallurgical studies undertaken in 2017 to continue to define and refine the project flowsheet . using the improved mineralization and alteration models now available for the livengood gold deposit arising from the work completed in 2017 , 4000 kg of metallurgical composites have been selected and shipped to sgs vancouver . these samples will be processed in 2018 to determine whether different recovery parameters should be applied to different areas of the orebody . the engineering firm of bba inc. ( bba ) , will be retained to continue to guide the metallurgical program . work is also planned to advance the environmental baseline efforts needed to support future permitting . on march 12 , 2018 , the board also approved recommendations by management to further reduce corporate overhead costs , including a reduction in ceo salary by 50 % ( reflecting an approximate 50 % reduction in the amount of time he will spend working on the project ) , a reduction in board cash compensation and expense , and staff reductions as appropriate as critical work is completed . depending upon the level of technical work or permitting efforts underway in future years , these cost savings should bring total project g & a costs into the range of $ 2.5 million per year . the company remains open to a strategic alliance to help support the future development of the project while considering all other appropriate financing options . the size of the gold resource , the favorable location , and the proven team are some of the reasons the company would potentially attract a strategic partner with a long term development horizon who understands the project is highly leveraged to gold prices . 41 results of operations summary of quarterly results replace_table_token_7_th replace_table_token_8_th significant fluctuations in the company 's quarterly net loss have mainly been the result of changes in operating costs and the valuation of the company 's derivative liability . story_separator_special_tag share-based payment charges were $ 108,526 during the year ended december 31 , 2016 compared to $ 540,468 during the year ended december 31 , 2015. the decrease in share-based payment charges during the period was mainly the result of a reduction in the fair value of options granted in 2015 as compared to 2014. the company granted no options during the year ended december 31 , 2016 compared to 2,135,200 options during the year ended december 31 , 2015. at december 31 , 2016 there was unrecognized compensation expense of c $ 38,644 related to non-vested options outstanding . the cost is expected to be recognized over a weighted-average remaining period of approximately 0.21 years . 43 share based payment charges were allocated as follows : replace_table_token_11_th excluding share-based payment charges of $ 76,910 and $ 400,095 , respectively , wages and benefits decreased to $ 2,119,681 for the year ended december 31 , 2016 from $ 2,159,515 for the year ended december 31 , 2015. the closure of the colorado office during 2015 contributed to lower wages and benefits expenses partially offset by higher healthcare premiums as a result of the base for the employee healthcare programs moving from colorado to alaska . excluding share-based payment charges of $ 25,013 and $ 113,150 , respectively , consulting fees were $ 238,321 for the year ended december 31 , 2016 compared to $ 305,274 for the year ended december 31 , 2015. the decrease of $ 66,953 is primarily due to lower consulting fees paid for chief financial officer services during 2016 as compared to 2015. excluding share-based payments , all other operating expense categories reflected only moderate changes period over period . other items amounted to other expense of $ 1,076,740 during the year ended december 31 , 2016 compared to other income of $ 1,637,352 in the year ended december 31 , 2015. total other expense in 2016 resulted from the unrealized loss on the revaluation of the derivative liability of $ 794,169. this unrealized loss was caused by the increase in the price per ounce of gold during 2016 and is compared to an unrealized gain of $ 800,000 during 2015 which resulted from a decrease in the price of gold during 2015. in addition to the unrealized loss on the derivative liability , the company had a foreign exchange loss of $ 340,551 during the year ended december 31 , 2016 compared to a gain of $ 990,690 during the year ended december 31 , 2015 as a result of the impact of exchange rates on certain of the company 's u.s. dollar cash balances . the average exchange rate during the year ended december 31 , 2016 was c $ 1 to us $ 0.7548 compared to c $ 1 to us $ 0.7820 for the year ended december 31 , 2015. available-for-sale securities were deemed not to be impaired for the year ended december 31 , 2016 compared to a loss of $ 219,402 related to the other than temporary impairment of certain available-for-sale securities during the year ended december 31 , 2015. story_separator_special_tag properties . the following table assumes that the company retains the rights to all of its current mineral properties , but does not exercise any lease purchase or royalty buyout options : replace_table_token_12_th 1. does not include required work expenditures , as it is assumed that the required expenditure level is significantly below the work which will actually be carried out by the company . does not include potential royalties that may be payable ( other than annual minimum royalty payments ) . off-balance sheet arrangements the company does not have any off balance sheet arrangements . critical accounting policies mineral properties and exploration and evaluation expenditures the company 's mineral project is currently in the exploration and evaluation phase . mineral property acquisition costs are capitalized when incurred . mineral property exploration costs are expensed as incurred . at such time that the company determines that a mineral property can be economically developed , subsequent mineral property expenses will be capitalized during the development of such property . the company assesses interests in exploration properties for impairment when facts and circumstances suggest that the carrying amount of an asset may exceed its recoverable amount . impairment analysis includes assessment of the following circumstances : a significant decrease in the market price of a long-lived asset or asset group ; a significant adverse change in the extent or manner in which a long-lived asset or asset group is being used or in its physical condition ; a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset or asset group , including an adverse action or assessment by a regulator ; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset or asset group ; a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group ; a current expectation that , more likely than not , a long-lived asset or asset group will be sold or otherwise disposed of significantly before the end of its previously estimated useful life . the term more likely than not refers to a level of likelihood that is more than 50 % . 46 derivatives derivative financial liabilities include the company 's future contingent payment based on the five-year average daily gold price from the date of the acquisition on december 13 , 2011 through december 12 , 2016. derivatives are initially recognized at their fair value on the date the derivative contract is entered into and are subsequently re-measured at their fair value at each reporting period with changes in the fair value recognized in profit and loss . fluctuations in the company 's
| liquidity and capital resources the company has no revenue generating operations from which it can internally generate funds . to date , the company 's ongoing operations have been predominantly financed through sale of its equity securities by way of private placements and the subsequent exercise of share purchase and broker warrants and options issued in connection with such private placements . however , the exercise of warrants/options is dependent primarily on the market price and overall market liquidity of the company 's securities at or near the expiry date of such warrants/options ( over which the company has no control ) and therefore there can be no guarantee that any existing warrants/options will be exercised . there are currently no warrants outstanding . as at december 31 , 2017 , the company reported cash and cash equivalents of $ 2,244,466 compared to $ 22,466,493 at december 31 , 2016. payment of the land derivative of approximately $ 14.7 million , operating expenditures on the livengood gold project of approximately $ 5.9 million and a negative foreign currency translation impact of approximately $ 0.4 million resulted in a decrease in cash and cash equivalents of approximately $ 20.2 million through december 31 , 2017. on march 13 , 2018 , the company completed a non-brokered private placement pursuant to which it issued 24,000,000 common shares at $ 0.50 per share for gross proceeds of $ 12.0 million . the company intends to use the funds for continuation of optimization studies to further improve and de-risk the project , required environmental baseline studies , and for general working capital purposes . as at december 31 , 2017 , management believes that the company has sufficient financial resources to maintain its operations for the next twelve months . 44 the company had no cash flows from investing activities during the years ended december 31 , 2017 and december 31 , 2016. financing activities during the year ended december 31 , 2017 included payment of the final derivative payment of approximately $ 14.7 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources the company has no revenue generating operations from which it can internally generate funds . to date , the company 's ongoing operations have been predominantly financed through sale of its equity securities by way of private placements and the subsequent exercise of share purchase and broker warrants and options issued in connection with such private placements . however , the exercise of warrants/options is dependent primarily on the market price and overall market liquidity of the company 's securities at or near the expiry date of such warrants/options ( over which the company has no control ) and therefore there can be no guarantee that any existing warrants/options will be exercised . there are currently no warrants outstanding . as at december 31 , 2017 , the company reported cash and cash equivalents of $ 2,244,466 compared to $ 22,466,493 at december 31 , 2016. payment of the land derivative of approximately $ 14.7 million , operating expenditures on the livengood gold project of approximately $ 5.9 million and a negative foreign currency translation impact of approximately $ 0.4 million resulted in a decrease in cash and cash equivalents of approximately $ 20.2 million through december 31 , 2017. on march 13 , 2018 , the company completed a non-brokered private placement pursuant to which it issued 24,000,000 common shares at $ 0.50 per share for gross proceeds of $ 12.0 million . the company intends to use the funds for continuation of optimization studies to further improve and de-risk the project , required environmental baseline studies , and for general working capital purposes . as at december 31 , 2017 , management believes that the company has sufficient financial resources to maintain its operations for the next twelve months . 44 the company had no cash flows from investing activities during the years ended december 31 , 2017 and december 31 , 2016. financing activities during the year ended december 31 , 2017 included payment of the final derivative payment of approximately $ 14.7 million .
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Suspicious Activity Report : the corrected aisc number has also been included in table 1-11 on page 1-25. where appropriate , text changes have been made to reflect the correct numbers now shown in the tables . 2. on january 12 , 2017 , the company paid $ 14.7 million for the timely and full satisfaction of the final derivative payment due with respect to the acquisition of certain mining claims and related rights in the vicinity of the livengood project and the company is now in full ownership and has no further liability with respect to this acquisition . the disclosure regarding the livengood property description and location in section 4.1.7 , pages 4-5 and 4-6 , has been updated accordingly . management changes on january 23 , 2017 , the ith board approved a management transition plan , which was implemented on january 31 , 2017 , in which karl hanneman , previously the chief operating officer ( coo ) , became the chief executive officer ( ceo ) , managing both the ceo and coo responsibilities , and thomas irwin , the previous ceo , transitioned into a part-time position of senior advisor prior to his being considered for nomination to the board at the company 's may 2017 annual general meeting ( agm ) . on may 24 , 2017 , the shareholders elected mr. irwin as a director of the company board . 40 director changes at the 2017 annual general meeting of shareholders in vancouver , b.c . on may 24 , 2017 , the shareholders fixed the size of the board at eight with the addition of mr. victor flores and mr. thomas irwin . on november 6 , 2017 , general mark hamilton resigned as director to pursue other opportunities . the board appointed stuart harshaw to the board effective april 1 , 2018 , to fill the vacancy that resulted from general hamilton 's resignation . deferred share unit incentive plan on april 4 , 2017 , the company adopted a deferred share unit plan ( the โ dsu plan โ ) . on may 24 , 2017 , at the company 's annual general meeting of shareholders , the dsu plan was approved . see note 8 within the notes to consolidated financial statements in item 8 of this annual report on form 10-k. other developments on january 12 , 2017 , the company paid $ 14.7 million for the timely and full satisfaction of the final derivative payment due with respect to acquisition of certain mining claims and related rights in the vicinity of the livengood gold project . on january 17 , 2017 , the full deed of reconveyance releasing the deed of trust on the acquired property was recorded and the company now fully owns this property and has no further liability with respect to this acquisition . in connection with the company 's $ 22.0 million private placement completed on december 28 , 2016 , the tsx commenced a de-listing review with respect to the company . on april 7 , 2017 , the tsx issued a bulletin confirming that it had completed its review and that the company continued to meet its listing requirements . 2018 financing on march 13 , 2018 , the company completed a non-brokered private placement pursuant to which it issued 24,000,000 common shares at $ 0.50 per share for gross proceeds of $ 12.0 million . the company intends to use the funds for continuation of optimization studies to further improve and de-risk the project , required environmental baseline studies , and for general working capital purposes . outlook on march 12 , 2018 the board approved a 2018 budget of $ 5.1 million . the work program incorporated in this budget will build upon the metallurgical studies undertaken in 2017 to continue to define and refine the project flowsheet . using the improved mineralization and alteration models now available for the livengood gold deposit arising from the work completed in 2017 , 4000 kg of metallurgical composites have been selected and shipped to sgs vancouver . these samples will be processed in 2018 to determine whether different recovery parameters should be applied to different areas of the orebody . the engineering firm of bba inc. ( bba ) , will be retained to continue to guide the metallurgical program . work is also planned to advance the environmental baseline efforts needed to support future permitting . on march 12 , 2018 , the board also approved recommendations by management to further reduce corporate overhead costs , including a reduction in ceo salary by 50 % ( reflecting an approximate 50 % reduction in the amount of time he will spend working on the project ) , a reduction in board cash compensation and expense , and staff reductions as appropriate as critical work is completed . depending upon the level of technical work or permitting efforts underway in future years , these cost savings should bring total project g & a costs into the range of $ 2.5 million per year . the company remains open to a strategic alliance to help support the future development of the project while considering all other appropriate financing options . the size of the gold resource , the favorable location , and the proven team are some of the reasons the company would potentially attract a strategic partner with a long term development horizon who understands the project is highly leveraged to gold prices . 41 results of operations summary of quarterly results replace_table_token_7_th replace_table_token_8_th significant fluctuations in the company 's quarterly net loss have mainly been the result of changes in operating costs and the valuation of the company 's derivative liability . story_separator_special_tag share-based payment charges were $ 108,526 during the year ended december 31 , 2016 compared to $ 540,468 during the year ended december 31 , 2015. the decrease in share-based payment charges during the period was mainly the result of a reduction in the fair value of options granted in 2015 as compared to 2014. the company granted no options during the year ended december 31 , 2016 compared to 2,135,200 options during the year ended december 31 , 2015. at december 31 , 2016 there was unrecognized compensation expense of c $ 38,644 related to non-vested options outstanding . the cost is expected to be recognized over a weighted-average remaining period of approximately 0.21 years . 43 share based payment charges were allocated as follows : replace_table_token_11_th excluding share-based payment charges of $ 76,910 and $ 400,095 , respectively , wages and benefits decreased to $ 2,119,681 for the year ended december 31 , 2016 from $ 2,159,515 for the year ended december 31 , 2015. the closure of the colorado office during 2015 contributed to lower wages and benefits expenses partially offset by higher healthcare premiums as a result of the base for the employee healthcare programs moving from colorado to alaska . excluding share-based payment charges of $ 25,013 and $ 113,150 , respectively , consulting fees were $ 238,321 for the year ended december 31 , 2016 compared to $ 305,274 for the year ended december 31 , 2015. the decrease of $ 66,953 is primarily due to lower consulting fees paid for chief financial officer services during 2016 as compared to 2015. excluding share-based payments , all other operating expense categories reflected only moderate changes period over period . other items amounted to other expense of $ 1,076,740 during the year ended december 31 , 2016 compared to other income of $ 1,637,352 in the year ended december 31 , 2015. total other expense in 2016 resulted from the unrealized loss on the revaluation of the derivative liability of $ 794,169. this unrealized loss was caused by the increase in the price per ounce of gold during 2016 and is compared to an unrealized gain of $ 800,000 during 2015 which resulted from a decrease in the price of gold during 2015. in addition to the unrealized loss on the derivative liability , the company had a foreign exchange loss of $ 340,551 during the year ended december 31 , 2016 compared to a gain of $ 990,690 during the year ended december 31 , 2015 as a result of the impact of exchange rates on certain of the company 's u.s. dollar cash balances . the average exchange rate during the year ended december 31 , 2016 was c $ 1 to us $ 0.7548 compared to c $ 1 to us $ 0.7820 for the year ended december 31 , 2015. available-for-sale securities were deemed not to be impaired for the year ended december 31 , 2016 compared to a loss of $ 219,402 related to the other than temporary impairment of certain available-for-sale securities during the year ended december 31 , 2015. story_separator_special_tag properties . the following table assumes that the company retains the rights to all of its current mineral properties , but does not exercise any lease purchase or royalty buyout options : replace_table_token_12_th 1. does not include required work expenditures , as it is assumed that the required expenditure level is significantly below the work which will actually be carried out by the company . does not include potential royalties that may be payable ( other than annual minimum royalty payments ) . off-balance sheet arrangements the company does not have any off balance sheet arrangements . critical accounting policies mineral properties and exploration and evaluation expenditures the company 's mineral project is currently in the exploration and evaluation phase . mineral property acquisition costs are capitalized when incurred . mineral property exploration costs are expensed as incurred . at such time that the company determines that a mineral property can be economically developed , subsequent mineral property expenses will be capitalized during the development of such property . the company assesses interests in exploration properties for impairment when facts and circumstances suggest that the carrying amount of an asset may exceed its recoverable amount . impairment analysis includes assessment of the following circumstances : a significant decrease in the market price of a long-lived asset or asset group ; a significant adverse change in the extent or manner in which a long-lived asset or asset group is being used or in its physical condition ; a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset or asset group , including an adverse action or assessment by a regulator ; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset or asset group ; a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group ; a current expectation that , more likely than not , a long-lived asset or asset group will be sold or otherwise disposed of significantly before the end of its previously estimated useful life . the term more likely than not refers to a level of likelihood that is more than 50 % . 46 derivatives derivative financial liabilities include the company 's future contingent payment based on the five-year average daily gold price from the date of the acquisition on december 13 , 2011 through december 12 , 2016. derivatives are initially recognized at their fair value on the date the derivative contract is entered into and are subsequently re-measured at their fair value at each reporting period with changes in the fair value recognized in profit and loss . fluctuations in the company 's
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2,376 | while we expect the severe downturn in new residential construction to continue to adversely affect our operating results into 2011 , we anticipate a slight increase in housing starts in 2011 versus 2010 based on recent signs of economic stabilization coupled with industry forecasts for 2011. in reaction to the housing downturn , the company has been restructuring its operations since the second quarter of 2006. since then , the company closed , consolidated or sold 20 distribution centers . additionally , the company reduced its workforce by approximately 1,300 and had approximately 900 employees at the end of 2010. these actions , along with other cost reduction efforts , are primarily responsible for an approximate $ 100 million reduction in operating expenses from 2006 to 2010. various factors historically have caused our results of operations to fluctuate from period to period . these factors include levels of construction , home improvement and remodeling activity , weather , prices of commodity wood and steel products , interest rates , competitive pressures , availability of credit and other local , regional , national and economic conditions . many of these factors are cyclical or seasonal in nature . we anticipate that further fluctuations in operating results from period to period will continue in the future . our first quarter and fourth quarter are generally adversely affected by winter weather patterns in the midwest and northeast , which typically result in seasonal decreases in levels of construction activity in these areas . because much of our overhead and expenses remain relatively fixed throughout the year , our operating profits tend to be lower during the first and fourth quarters . we believe we have the product offering , distribution channel , personnel , systems infrastructure and financial and competitive resources necessary for continued operations . our future revenues , costs and profitability , however , are all likely to be influenced by a number of risks and uncertainties , including those in item 1a ย risk factors . critical accounting policies we prepare our consolidated financial statements in accordance with u.s. generally accepted accounting principles , which require management to make estimates and assumptions . management bases these estimates and assumptions on historical results and known trends as well as management forecasts . actual results could differ from these estimates and assumptions . accounts receivable ย trade accounts receivable consist of amounts owed for orders shipped to customers and are stated net of an allowance for doubtful accounts . huttig 's corporate management establishes an overall credit policy for sales to customers and delegates responsibility for most credit decisions to credit personnel located within huttig 's two regions . the allowance for doubtful accounts is determined based on a number of factors including when customer accounts exceed 90 days past due and specific customer account reviews . our credit policies , together with careful monitoring of customer balances , have resulted in bad debt expense of approximately 0.1 % of net sales in 2010 , 0.2 % in 2009 and 0.3 % during 2008. due to the current downturn in new housing activity , we expect that our bad debt expense could increase as our customers experience greater financial difficulties . inventory ย inventories are valued at the lower of cost or market . we utilize the lifo cost method to value the majority of our inventories . we review inventories on hand and record a provision for slow-moving and obsolete inventory based on historical and expected sales . valuation of goodwill and other long-lived assets ย we test the carrying value of our goodwill at each reporting unit for impairment on an annual basis and between annual tests in certain circumstances when there are indicators of potential impairment . the carrying value of goodwill is considered impaired when a reporting unit 's fair value is less than its carrying value . in that event , goodwill impairment is recognized to the extent recorded goodwill exceeds the implied fair value of that goodwill . circumstances that can lead to interim goodwill testing include significant negative variances from forecasted sales or operating profits or changes in other circumstances that indicate the carrying amount of goodwill may not be recoverable . we utilize a discounted cash flows model to -15- estimate fair value of a reporting unit . in our estimate of fair value of a reporting unit , the following significant assumptions , and changes therein , are considered : publicly available and internal projections of single and multi-family housing starts used to project a reporting unit 's revenue in future years ; the reporting unit 's gross margin and operating expenses that reflect cost reduction actions already taken by the company ; projected variable costs associated with the variable revenue streams projected in the future ; projected reporting unit working capital changes and capital expenditure requirements ; and an estimate of a discount rate commensurate with the weighted average cost of capital for a market participant and a related growth factor . at december 31 , 2010 , the company had $ 8.6 million of goodwill recorded across 17 reporting units . significant changes in our assumptions and the related projected cash flows utilized in calculating the reporting unit 's fair value could result in future goodwill impairment related to any of our reporting units . in 2009 , we recorded goodwill impairment of $ 1.0 million as a result of carrying value at one reporting unit exceeding its respective fair value . we test the carrying value of other long-lived assets , including intangible and other tangible assets , for impairment when events and circumstances warrant such review . story_separator_special_tag the 2009 and 2008 gross margins were also negatively impacted by pricing pressure in the down housing market , which pressure may continue into 2010. operating expenses including goodwill impairment charges decreased $ 53.3 million to $ 106.7 million , or 23.4 % of sales , in 2009 , compared to $ 160.0 million , or 23.8 % of sales , in 2008. operating expenses for 2009 include $ 2.1 million of expenses comprised of a $ 1.0 million goodwill impairment charge and $ 1.1 million of branch closure costs related to the shut down or consolidation of three branches during 2009. operating expenses for 2008 include $ 10.8 million of expenses primarily comprised of an $ 8.7 million goodwill impairment charge and $ 2.1 million of branch closure costs associated with the shut down or consolidation of five branches during 2008. excluding these 2009 and 2008 charges , operating expenses decreased by $ 44.5 million in 2009 , primarily due to a lower employee headcount and a lower cost structure , as a result of prior restructuring activities , as well as lower variable costs associated with decreased sales volumes . we recorded total stock-based compensation expense of $ 0.9 million in 2009 compared to $ 1.3 million in 2008. our results for the year ended december 31 , 2009 included a gain on disposal of capital assets of $ 1.5 million primarily from the sale of two previously closed facilities . the results for the year ended december 31 , 2008 included a gain on disposal of capital assets of $ 1.0 million primarily from the sale of a previously closed facility . net interest expense was $ 1.5 million in 2009 compared to $ 2.6 million in 2008 primarily due to lower average debt outstanding and lower libor-based borrowing rates in 2009 versus 2008. additionally , we reduced the credit facility size from $ 160.0 million to $ 120.0 million in 2009. income tax benefit as a percentage of pre-tax loss for 2009 and 2008 was approximately 12 % and 10 % , respectively . in 2009 , we benefited from a change in federal tax law that allowed us to carry back 2008 operating losses to prior years and receive tax refunds . in 2008 , we were able to carry back the 2007 federal net operating loss -18- to prior years and receive tax refunds . at december 31 , 2009 , our federal net operating loss carry forward is approximately $ 42.6 million . as a result of the foregoing factors , we incurred a loss from continuing operations of $ 19.8 million in 2009 as compared to a loss from continuing operations of $ 35.2 million in 2008. discontinued operations we recorded a $ 0.7 million after tax loss from discontinued operations related to a note receivable impairment and environmental and litigation expenses in 2009 compared to a $ 0.2 million after tax loss for environmental and litigation expenses in 2008 associated with previously reported discontinued operations . story_separator_special_tag necessary to satisfy this covenant if it were required to be tested . under the amended and restated credit agreement , if we were unable to maintain excess borrowing availability of more than the applicable amount in the range of $ 10.0 million to $ 15.0 million , and were also unable to comply with this financial covenant , our lenders would have the right , but not the obligation , to terminate the loan commitments and accelerate the repayment of the entire amount outstanding under the credit facility . the lenders could also foreclose on our assets that secure the credit facility . in that event , we would be forced to seek alternative sources of financing , which may not be available on terms acceptable to it , or at all . off-balance sheet arrangements in addition to funds available from operating cash flows and our bank credit facility as described above , we use operating leases as a principal off balance sheet technique . operating leases are employed as an alternative to purchasing certain property , plant and equipment . future rental commitments , extending through the year 2020 , under all non-cancelable operating leases in effect at december 31 , 2010 total $ 40.7 million . commitments and contingencies the table below summarizes our contractual obligations as of december 31 , 2010 ( in millions ) : replace_table_token_5_th -20- replace_table_token_6_th cautionary statement relevant to forward-looking information for the purpose of ยsafe harborย provisions of the private securities litigation reform act of 1995 this annual report on form 10-k and our annual report to shareholders contain ยforward-looking statementsย within the meaning of the private securities litigation reform act of 1995 , including but not limited to statements regarding : our belief that cash generated from operations and funds available under our credit facility will be sufficient to meet our future liquidity and capital expenditure needs ; our belief that we have the product offerings , warehouse and builder support facilities , personnel , systems infrastructure and financial and competitive resources necessary for continued business operations ; our expectation that the severe downturn in new housing activity will continue into 2011 and will continue to adversely affect our operating results , liquidity and financial condition ; our expectation that there will be a slight increase in housing starts in 2011 as compared to 2010 ; our expectation that the bad debt expense could continue to increase as our customers experience greater financial difficulties as a result of the current downturn in new housing activity ; our belief that we may incur non-cash goodwill impairment charges in the future which could have a material adverse effect on our operating results ; our belief that we will not achieve sufficient financial results to satisfy the financial covenant under our credit facility if it were required to be tested ; our expectation that the disposition of the various claims and litigation in which we are
| liquidity and capital resources we depend on cash flow from operations and funds available under our revolving credit facility to finance seasonal working capital needs , capital expenditures and any acquisitions that we may undertake . our working capital requirements are generally greatest in the second and third quarters , which reflect the seasonal nature of our business . the second and third quarters are also typically our strongest operating quarters , largely due to more favorable weather throughout many of our markets compared to the first and fourth quarters . we typically generate cash from working capital reductions in the fourth quarter of the year and build working capital during the first quarter in preparation for our second and third quarters . we also maintain significant inventories to meet rapid delivery requirements of our customers and to enable us to obtain favorable pricing , delivery and service terms with our suppliers . at december 31 , 2010 and 2009 , inventories constituted approximately 37 % and 33 % of our total assets , respectively . we also closely monitor operating expenses and inventory levels during seasonally affected periods and , to the extent possible , manage variable operating costs to minimize seasonal effects on our profitability . operations cash from operating activities increased by $ 6.3 million to a usage of $ 7.1 million in 2010 , compared to a $ 13.4 million usage of cash in 2009. in 2010 , our net loss decreased $ 1.6 million compared to 2009. the net loss included goodwill impairment charges of $ 1.0 million in 2009. accounts receivable decreased by $ 4.7 million during 2010 compared to an increase of $ 8.8 million a year ago . days sales outstanding ( ยdsoย ) decreased by 3.9 days to 32.8 days at december 31 , 2010 from 36.7 days at december 31 , 2009 based on annualized fourth quarter sales and quarter ended accounts receivable balances for the respective periods . the decrease in dso is directly related to extended terms provided in the fourth quarter of 2009 to a small number of large credit worthy customers .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources we depend on cash flow from operations and funds available under our revolving credit facility to finance seasonal working capital needs , capital expenditures and any acquisitions that we may undertake . our working capital requirements are generally greatest in the second and third quarters , which reflect the seasonal nature of our business . the second and third quarters are also typically our strongest operating quarters , largely due to more favorable weather throughout many of our markets compared to the first and fourth quarters . we typically generate cash from working capital reductions in the fourth quarter of the year and build working capital during the first quarter in preparation for our second and third quarters . we also maintain significant inventories to meet rapid delivery requirements of our customers and to enable us to obtain favorable pricing , delivery and service terms with our suppliers . at december 31 , 2010 and 2009 , inventories constituted approximately 37 % and 33 % of our total assets , respectively . we also closely monitor operating expenses and inventory levels during seasonally affected periods and , to the extent possible , manage variable operating costs to minimize seasonal effects on our profitability . operations cash from operating activities increased by $ 6.3 million to a usage of $ 7.1 million in 2010 , compared to a $ 13.4 million usage of cash in 2009. in 2010 , our net loss decreased $ 1.6 million compared to 2009. the net loss included goodwill impairment charges of $ 1.0 million in 2009. accounts receivable decreased by $ 4.7 million during 2010 compared to an increase of $ 8.8 million a year ago . days sales outstanding ( ยdsoย ) decreased by 3.9 days to 32.8 days at december 31 , 2010 from 36.7 days at december 31 , 2009 based on annualized fourth quarter sales and quarter ended accounts receivable balances for the respective periods . the decrease in dso is directly related to extended terms provided in the fourth quarter of 2009 to a small number of large credit worthy customers .
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Suspicious Activity Report : while we expect the severe downturn in new residential construction to continue to adversely affect our operating results into 2011 , we anticipate a slight increase in housing starts in 2011 versus 2010 based on recent signs of economic stabilization coupled with industry forecasts for 2011. in reaction to the housing downturn , the company has been restructuring its operations since the second quarter of 2006. since then , the company closed , consolidated or sold 20 distribution centers . additionally , the company reduced its workforce by approximately 1,300 and had approximately 900 employees at the end of 2010. these actions , along with other cost reduction efforts , are primarily responsible for an approximate $ 100 million reduction in operating expenses from 2006 to 2010. various factors historically have caused our results of operations to fluctuate from period to period . these factors include levels of construction , home improvement and remodeling activity , weather , prices of commodity wood and steel products , interest rates , competitive pressures , availability of credit and other local , regional , national and economic conditions . many of these factors are cyclical or seasonal in nature . we anticipate that further fluctuations in operating results from period to period will continue in the future . our first quarter and fourth quarter are generally adversely affected by winter weather patterns in the midwest and northeast , which typically result in seasonal decreases in levels of construction activity in these areas . because much of our overhead and expenses remain relatively fixed throughout the year , our operating profits tend to be lower during the first and fourth quarters . we believe we have the product offering , distribution channel , personnel , systems infrastructure and financial and competitive resources necessary for continued operations . our future revenues , costs and profitability , however , are all likely to be influenced by a number of risks and uncertainties , including those in item 1a ย risk factors . critical accounting policies we prepare our consolidated financial statements in accordance with u.s. generally accepted accounting principles , which require management to make estimates and assumptions . management bases these estimates and assumptions on historical results and known trends as well as management forecasts . actual results could differ from these estimates and assumptions . accounts receivable ย trade accounts receivable consist of amounts owed for orders shipped to customers and are stated net of an allowance for doubtful accounts . huttig 's corporate management establishes an overall credit policy for sales to customers and delegates responsibility for most credit decisions to credit personnel located within huttig 's two regions . the allowance for doubtful accounts is determined based on a number of factors including when customer accounts exceed 90 days past due and specific customer account reviews . our credit policies , together with careful monitoring of customer balances , have resulted in bad debt expense of approximately 0.1 % of net sales in 2010 , 0.2 % in 2009 and 0.3 % during 2008. due to the current downturn in new housing activity , we expect that our bad debt expense could increase as our customers experience greater financial difficulties . inventory ย inventories are valued at the lower of cost or market . we utilize the lifo cost method to value the majority of our inventories . we review inventories on hand and record a provision for slow-moving and obsolete inventory based on historical and expected sales . valuation of goodwill and other long-lived assets ย we test the carrying value of our goodwill at each reporting unit for impairment on an annual basis and between annual tests in certain circumstances when there are indicators of potential impairment . the carrying value of goodwill is considered impaired when a reporting unit 's fair value is less than its carrying value . in that event , goodwill impairment is recognized to the extent recorded goodwill exceeds the implied fair value of that goodwill . circumstances that can lead to interim goodwill testing include significant negative variances from forecasted sales or operating profits or changes in other circumstances that indicate the carrying amount of goodwill may not be recoverable . we utilize a discounted cash flows model to -15- estimate fair value of a reporting unit . in our estimate of fair value of a reporting unit , the following significant assumptions , and changes therein , are considered : publicly available and internal projections of single and multi-family housing starts used to project a reporting unit 's revenue in future years ; the reporting unit 's gross margin and operating expenses that reflect cost reduction actions already taken by the company ; projected variable costs associated with the variable revenue streams projected in the future ; projected reporting unit working capital changes and capital expenditure requirements ; and an estimate of a discount rate commensurate with the weighted average cost of capital for a market participant and a related growth factor . at december 31 , 2010 , the company had $ 8.6 million of goodwill recorded across 17 reporting units . significant changes in our assumptions and the related projected cash flows utilized in calculating the reporting unit 's fair value could result in future goodwill impairment related to any of our reporting units . in 2009 , we recorded goodwill impairment of $ 1.0 million as a result of carrying value at one reporting unit exceeding its respective fair value . we test the carrying value of other long-lived assets , including intangible and other tangible assets , for impairment when events and circumstances warrant such review . story_separator_special_tag the 2009 and 2008 gross margins were also negatively impacted by pricing pressure in the down housing market , which pressure may continue into 2010. operating expenses including goodwill impairment charges decreased $ 53.3 million to $ 106.7 million , or 23.4 % of sales , in 2009 , compared to $ 160.0 million , or 23.8 % of sales , in 2008. operating expenses for 2009 include $ 2.1 million of expenses comprised of a $ 1.0 million goodwill impairment charge and $ 1.1 million of branch closure costs related to the shut down or consolidation of three branches during 2009. operating expenses for 2008 include $ 10.8 million of expenses primarily comprised of an $ 8.7 million goodwill impairment charge and $ 2.1 million of branch closure costs associated with the shut down or consolidation of five branches during 2008. excluding these 2009 and 2008 charges , operating expenses decreased by $ 44.5 million in 2009 , primarily due to a lower employee headcount and a lower cost structure , as a result of prior restructuring activities , as well as lower variable costs associated with decreased sales volumes . we recorded total stock-based compensation expense of $ 0.9 million in 2009 compared to $ 1.3 million in 2008. our results for the year ended december 31 , 2009 included a gain on disposal of capital assets of $ 1.5 million primarily from the sale of two previously closed facilities . the results for the year ended december 31 , 2008 included a gain on disposal of capital assets of $ 1.0 million primarily from the sale of a previously closed facility . net interest expense was $ 1.5 million in 2009 compared to $ 2.6 million in 2008 primarily due to lower average debt outstanding and lower libor-based borrowing rates in 2009 versus 2008. additionally , we reduced the credit facility size from $ 160.0 million to $ 120.0 million in 2009. income tax benefit as a percentage of pre-tax loss for 2009 and 2008 was approximately 12 % and 10 % , respectively . in 2009 , we benefited from a change in federal tax law that allowed us to carry back 2008 operating losses to prior years and receive tax refunds . in 2008 , we were able to carry back the 2007 federal net operating loss -18- to prior years and receive tax refunds . at december 31 , 2009 , our federal net operating loss carry forward is approximately $ 42.6 million . as a result of the foregoing factors , we incurred a loss from continuing operations of $ 19.8 million in 2009 as compared to a loss from continuing operations of $ 35.2 million in 2008. discontinued operations we recorded a $ 0.7 million after tax loss from discontinued operations related to a note receivable impairment and environmental and litigation expenses in 2009 compared to a $ 0.2 million after tax loss for environmental and litigation expenses in 2008 associated with previously reported discontinued operations . story_separator_special_tag necessary to satisfy this covenant if it were required to be tested . under the amended and restated credit agreement , if we were unable to maintain excess borrowing availability of more than the applicable amount in the range of $ 10.0 million to $ 15.0 million , and were also unable to comply with this financial covenant , our lenders would have the right , but not the obligation , to terminate the loan commitments and accelerate the repayment of the entire amount outstanding under the credit facility . the lenders could also foreclose on our assets that secure the credit facility . in that event , we would be forced to seek alternative sources of financing , which may not be available on terms acceptable to it , or at all . off-balance sheet arrangements in addition to funds available from operating cash flows and our bank credit facility as described above , we use operating leases as a principal off balance sheet technique . operating leases are employed as an alternative to purchasing certain property , plant and equipment . future rental commitments , extending through the year 2020 , under all non-cancelable operating leases in effect at december 31 , 2010 total $ 40.7 million . commitments and contingencies the table below summarizes our contractual obligations as of december 31 , 2010 ( in millions ) : replace_table_token_5_th -20- replace_table_token_6_th cautionary statement relevant to forward-looking information for the purpose of ยsafe harborย provisions of the private securities litigation reform act of 1995 this annual report on form 10-k and our annual report to shareholders contain ยforward-looking statementsย within the meaning of the private securities litigation reform act of 1995 , including but not limited to statements regarding : our belief that cash generated from operations and funds available under our credit facility will be sufficient to meet our future liquidity and capital expenditure needs ; our belief that we have the product offerings , warehouse and builder support facilities , personnel , systems infrastructure and financial and competitive resources necessary for continued business operations ; our expectation that the severe downturn in new housing activity will continue into 2011 and will continue to adversely affect our operating results , liquidity and financial condition ; our expectation that there will be a slight increase in housing starts in 2011 as compared to 2010 ; our expectation that the bad debt expense could continue to increase as our customers experience greater financial difficulties as a result of the current downturn in new housing activity ; our belief that we may incur non-cash goodwill impairment charges in the future which could have a material adverse effect on our operating results ; our belief that we will not achieve sufficient financial results to satisfy the financial covenant under our credit facility if it were required to be tested ; our expectation that the disposition of the various claims and litigation in which we are
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2,377 | recent trends in the electric industry include : leveling of demand due to slower population growth , demand side management of energy and an increase in customer-owned generation ; public policy initiatives to reduce ghg emissions and encourage competition for the sale and delivery of electricity ; increased need for infrastructure replacement and grid development to accommodate new technologies ; and technological and financing innovation that facilitate conservation , distributed energy resources , such as customer-owned generation and energy storage , and changes in electricity generation , transmission and distribution . 4 sce is investing in and strengthening its electric grid and driving operational and service excellence to improve system safety , reliability and service while controlling costs and rates . the electric distribution grid is an important component of california 's public policy goals to support a cleaner environment . these policy goals continue to advance as california moves forward in implementing senate bill 350. sb 350 requires retail sellers of electricity to procure 50 % of their customers ' electricity requirements from renewable resources by 2030. california policy goals also promote an increase in electric vehicle usage and investment in charging infrastructure . these goals may create opportunities for the electric grid to enable ghg emission reductions by providing the supporting infrastructure to increase adoption of customer-owned generation , electric storage , and electric vehicles but they may increase customer rates and add technical complexity and risk to the safe and reliable operation of the electric grid . in 2015 , sce filed a distribution resources plan ( โ drp โ ) with the cpuc as part of the cpuc 's initiative to address , among other issues , the increased penetration of customer-owned generation and other distributed energy resources , such as rooftop solar . for more information , see `` โcapital programโdistribution grid developmentโdistribution resources plan `` below . edison international is also investing in competitive businesses . these include small , targeted investments in energy service companies that utilize technologies and access markets to capitalize on the changes in the electric industry . current areas of focus are providing energy services to commercial and industrial customers , including distributed resources , engaging in competitive transmission opportunities , and exploring distributed water treatment and recycling . capital program sce forecasts capital expenditures for 2016 โ 2017 in the range of $ 8.0 billion to $ 8.3 billion . the forecast includes the level of spending authorized in the 2015 grc decision . the low end of the range reflects a 3 % reduction from forecasted levels for ferc projects using management judgment based on historical experience . total capital expenditures ( including accruals ) , were $ 3.9 billion in 2015 and $ 4.0 billion in 2014. sce 's year-end rate base ( excluding san onofre ) was $ 24.6 billion at december 31 , 2015 compared to $ 23.3 billion at december 31 , 2014. sce 's 2015 actual capital expenditures ( including accruals ) and the 2016 โ 2017 forecast for major capital expenditures are set forth in the table below : replace_table_token_4_th capital expenditures for projects under cpuc jurisdiction are recovered through the authorized revenue requirement in sce 's grcs or through other cpuc-authorized mechanisms . recovery for 2016 โ 2017 planned expenditures for projects under ferc jurisdiction will be pursued through ferc-authorized mechanisms . sce is scheduled to file its 2018 grc application in september 2016 , which will include a capital expenditures forecast for 2018 โ 2020. the completion of projects , the timing of expenditures , and the associated cost recovery may be affected by permitting requirements and delays , construction schedules , availability of labor , equipment and materials , financing , legal and regulatory approvals and developments , community requests or protests , weather and other unforeseen conditions . 5 at december 31 , 2015 , sce 's rate base authorized in the 2015 grc and recorded rate base for ferc jurisdictional assets determined in accordance with sce 's ferc formula rate are summarized as follows : replace_table_token_5_th 1 excludes rate base adjustment of $ 324 million . see `` โregulatory proceedingsโ2015 general rate case `` for further discussion . 2 includes $ 13 million and $ 6 million reduction from extension of bonus depreciation for pole loading and ferc , respectively . sce 's forecasted rate base for 2016 and 2017 is as follows : replace_table_token_6_th 1 refer to footnote 1 in previous table . the forecasted rate base for 2016 and 2017 includes the net impact of extension of bonus depreciation , which reduces average rate base by $ 298 million and $ 701 million , respectively . distribution grid development distribution resources plan on july 1 , 2015 , sce filed its drp with the cpuc . the filing was made as part of a cpuc proceeding that was initiated to support california 's ghg reduction targets , modernize the electric distribution system to accommodate two-way flows of energy associated with distributed energy resources , such as rooftop solar , and facilitate customer choice of new technologies and services that reduce emissions and improve resilience . sce 's drp included an indicative forecast of capital investment in distribution automation , substation automation , communications systems , technology platforms and applications , and grid reinforcement . subject to future cpuc guidance , sce anticipates integrating authorization for revenue to support drp operation and maintenance and capital spending into future general rate cases , beginning with its 2018 โ 2020 grc . story_separator_special_tag utility cost-recovery activities โ representing cpuc- and ferc-authorized balancing accounts which allow for recovery of specific project or program costs , subject to reasonableness review or compliance with upfront standards . utility cost-recovery activities include rates which provide recovery , subject to reasonableness review of , among other things , fuel costs , purchased power costs , public purpose related-program costs ( including energy efficiency and demand-side management programs ) and certain operation and maintenance expenses . revenue impact of 2015 grc decision as indicated in the table below , revenue in the 2015 grc decision is lower than the amount authorized in 2014 due to lower operation and maintenance costs and income taxes . accordingly , sce will refund $ 451 million to customers beginning in january 2016. the following table summarizes the 2015 grc decision compared to the amounts of revenue currently authorized : replace_table_token_7_th 1 authorized revenue for operation and maintenance costs decreased due to : $ 72 million reduction in cost-recovery activities , which does not impact earnings , primarily for pension , postretirement benefits other than pensions ( pbop ) , medical and results sharing costs . these cost-recovery activities are recorded through balancing accounts , which allow for recovery of these specific projects or program costs , subject to reasonableness review . $ 93 million reduction for utility earning activities primarily from sce 's initiatives to improve operational efficiency which has resulted in lower forecasted operation and maintenance costs than included in the 2014 authorized amounts . 2 authorized revenue for income taxes decreased due to flow-through items for income tax benefits โ primarily repair and cost of removal deductions ( see `` notes to consolidated financial statementsโnote 7. income taxes `` for a discussion on flow-through regulatory accounting ) . forecasted flow-through items increased in the 2015 grc from the amounts reflected in 2014 authorized revenue which is reflected as lower revenue requirement . 10 the following table is a summary of sce 's results of operations for the periods indicated . replace_table_token_8_th 1 see use of non-gaap financial measures in `` management overviewโhighlights of operating results . `` utility earning activities 2015 vs 2014 utility earning activities were primarily affected by the following : lower operating revenue of $ 526 million is primarily due to : a decrease in authorized cpuc revenue of $ 379 million ( excludes amounts classified as cost-recovery activities ) . the decrease in revenue is primarily due to lower authorized revenue for operation and maintenance expenses and for flow-through items for income tax benefits related to repair and cost of removal deductions . a decrease in revenue from approximately $ 300 million of tax benefits in excess of amounts authorized in the 2015 grc and recognized through the tama and the pole loading balancing account ( offset in income tax benefits discussed below ) . in addition , sce recorded $ 39 million ( $ 26 million after-tax ) of incremental return on the pole loading rate base recorded through this balancing account . an increase in ferc-related revenue of $ 83 million primarily related to rate base growth and higher operating costs . an increase in san onofre-related revenue of $ 40 million due to the implementation of the san onofre oii settlement agreement . revenue for san onofre for 2015 primarily related to recovery of amortization of the regulatory asset and authorized return as provided by the san onofre settlement agreement compared to revenue in 2014 related to recovery of san onofre 's cost of service . 11 energy efficiency incentive awards were $ 29 million in 2015 compared to $ 22 million in 2014. sce 's portion of neil insurance and legal cost recoveries of approximately $ 20 million in 2015 ( see `` notes to the consolidated financial statementsโnote 11. commitments and contingenciesโsan onofre related matters `` for further information on the agreement with neil ) . higher revenue in 2014 from approval by the cpuc of a $ 30 million increase in the 2012-2014 authorized revenue requirement related to deferred income taxes and from $ 15 million of generator settlements . see โ notes to the consolidated financial statementsโnote 10. regulatory assets and liabilitiesโregulatory balancing accounts . โ lower operation and maintenance expense of $ 129 million primarily due to : lower san onofre-related expense of $ 93 million . during 2014 , san onofre-related expenses were recorded as operation and maintenance expenses . during 2015 , the cpuc authorized sce reimbursement of 2014 costs from the nuclear decommissioning trusts with such reimbursement subsequently refunded to customers . during 2015 , decommissioning expenses were reimbursed from the nuclear decommissioning trust and , therefore , did not result in operation and maintenance expenses . a decrease of $ 77 million primarily related to transmission and distribution , legal , and customer service costs partially offset by higher outside service costs in 2015. higher severance costs related to workforce reduction efforts ( $ 26 million in 2015 and $ 2 million in 2014 ) . in 2015 , sce incurred a penalty of $ 16.74 million related to ex parte communications ( see `` notes to consolidated financial statementsโnote 11. commitments and contingencies `` for further information ) . higher depreciation , decommissioning and amortization expense of $ 195 million primarily due to san onofre-related expense of $ 134 million in 2015 related to the amortization of the regulatory asset and a $ 61 million increase in depreciation primarily related to transmission and distribution investments . higher property and other taxes of $ 16 million primarily due to an increase in assessed property values in 2015. impairment and other charges of $ 163 million ( $ 72 million after-tax ) in 2014 related to the san onofre oii settlement agreement , as discussed below . higher other income and expenses of $ 21 million primarily due to higher afudc equity income related to a higher rate and higher construction work in progress balances in
| net cash used by operating activities net cash used by operating activities decreased in 2015 by $ 297 million from 2014 and increased in 2014 by $ 331 million from 2013 due to : $ 204 million and $ 225 million of cash payments made to the reorganization trust in september 2015 and april 2014 related to the eme settlement agreement , respectively , see `` โnotes to consolidated financial statementsโnote 15. discontinued operationsโeme chapter 11 bankruptcy '' for further information . $ 143 million receipt of intercompany tax-allocation payments in 2015 and a $ 189 million deposit made with the irs in 2014 related to open tax years 2003 through 2006 . $ 54 million cash outflow from operating activities in 2015 , compared to $ 2 million cash inflow in 2014 and $ 81 million cash outflow in 2013 , due to the timing of payments and receipts relating to interest and operating costs . 23 net cash provided by financing activities net cash provided by financing activities were as follows : replace_table_token_18_th 1 includes $ 20 million debt financing for edison energy group , see `` notes to consolidated financial statementsโnote 5. debt and credit agreementsโproject financings . '' net cash used by investing activities net cash used by investing activities during 2015 primarily relates to approximately $ 100 million in acquisitions of three companies that support edison energy group 's commercial and industrial services growth strategy and $ 15 million related to edison energy group 's capital expenditures for commercial solar installations . see `` notes to consolidated financial statementsโnote 9. investments '' for further information . net cash used by investing activities during 2014 relate to edison energy group 's capital expenditures of $ 49 million for commercial solar installations . contractual obligations and contingencies contractual obligations edison international parent and other and sce 's contractual obligations as of december 31 , 2015 , for the years 2016 through 2020 and thereafter are estimated below . replace_table_token_19_th 1 for additional details , see `` notes to consolidated financial statementsโnote 5. debt and credit agreements . '' amount includes interest payments totaling $ 8.86 billion and $ 34 million over applicable period of the debt for sce and edison international parent and other , respectively .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash used by operating activities net cash used by operating activities decreased in 2015 by $ 297 million from 2014 and increased in 2014 by $ 331 million from 2013 due to : $ 204 million and $ 225 million of cash payments made to the reorganization trust in september 2015 and april 2014 related to the eme settlement agreement , respectively , see `` โnotes to consolidated financial statementsโnote 15. discontinued operationsโeme chapter 11 bankruptcy '' for further information . $ 143 million receipt of intercompany tax-allocation payments in 2015 and a $ 189 million deposit made with the irs in 2014 related to open tax years 2003 through 2006 . $ 54 million cash outflow from operating activities in 2015 , compared to $ 2 million cash inflow in 2014 and $ 81 million cash outflow in 2013 , due to the timing of payments and receipts relating to interest and operating costs . 23 net cash provided by financing activities net cash provided by financing activities were as follows : replace_table_token_18_th 1 includes $ 20 million debt financing for edison energy group , see `` notes to consolidated financial statementsโnote 5. debt and credit agreementsโproject financings . '' net cash used by investing activities net cash used by investing activities during 2015 primarily relates to approximately $ 100 million in acquisitions of three companies that support edison energy group 's commercial and industrial services growth strategy and $ 15 million related to edison energy group 's capital expenditures for commercial solar installations . see `` notes to consolidated financial statementsโnote 9. investments '' for further information . net cash used by investing activities during 2014 relate to edison energy group 's capital expenditures of $ 49 million for commercial solar installations . contractual obligations and contingencies contractual obligations edison international parent and other and sce 's contractual obligations as of december 31 , 2015 , for the years 2016 through 2020 and thereafter are estimated below . replace_table_token_19_th 1 for additional details , see `` notes to consolidated financial statementsโnote 5. debt and credit agreements . '' amount includes interest payments totaling $ 8.86 billion and $ 34 million over applicable period of the debt for sce and edison international parent and other , respectively .
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Suspicious Activity Report : recent trends in the electric industry include : leveling of demand due to slower population growth , demand side management of energy and an increase in customer-owned generation ; public policy initiatives to reduce ghg emissions and encourage competition for the sale and delivery of electricity ; increased need for infrastructure replacement and grid development to accommodate new technologies ; and technological and financing innovation that facilitate conservation , distributed energy resources , such as customer-owned generation and energy storage , and changes in electricity generation , transmission and distribution . 4 sce is investing in and strengthening its electric grid and driving operational and service excellence to improve system safety , reliability and service while controlling costs and rates . the electric distribution grid is an important component of california 's public policy goals to support a cleaner environment . these policy goals continue to advance as california moves forward in implementing senate bill 350. sb 350 requires retail sellers of electricity to procure 50 % of their customers ' electricity requirements from renewable resources by 2030. california policy goals also promote an increase in electric vehicle usage and investment in charging infrastructure . these goals may create opportunities for the electric grid to enable ghg emission reductions by providing the supporting infrastructure to increase adoption of customer-owned generation , electric storage , and electric vehicles but they may increase customer rates and add technical complexity and risk to the safe and reliable operation of the electric grid . in 2015 , sce filed a distribution resources plan ( โ drp โ ) with the cpuc as part of the cpuc 's initiative to address , among other issues , the increased penetration of customer-owned generation and other distributed energy resources , such as rooftop solar . for more information , see `` โcapital programโdistribution grid developmentโdistribution resources plan `` below . edison international is also investing in competitive businesses . these include small , targeted investments in energy service companies that utilize technologies and access markets to capitalize on the changes in the electric industry . current areas of focus are providing energy services to commercial and industrial customers , including distributed resources , engaging in competitive transmission opportunities , and exploring distributed water treatment and recycling . capital program sce forecasts capital expenditures for 2016 โ 2017 in the range of $ 8.0 billion to $ 8.3 billion . the forecast includes the level of spending authorized in the 2015 grc decision . the low end of the range reflects a 3 % reduction from forecasted levels for ferc projects using management judgment based on historical experience . total capital expenditures ( including accruals ) , were $ 3.9 billion in 2015 and $ 4.0 billion in 2014. sce 's year-end rate base ( excluding san onofre ) was $ 24.6 billion at december 31 , 2015 compared to $ 23.3 billion at december 31 , 2014. sce 's 2015 actual capital expenditures ( including accruals ) and the 2016 โ 2017 forecast for major capital expenditures are set forth in the table below : replace_table_token_4_th capital expenditures for projects under cpuc jurisdiction are recovered through the authorized revenue requirement in sce 's grcs or through other cpuc-authorized mechanisms . recovery for 2016 โ 2017 planned expenditures for projects under ferc jurisdiction will be pursued through ferc-authorized mechanisms . sce is scheduled to file its 2018 grc application in september 2016 , which will include a capital expenditures forecast for 2018 โ 2020. the completion of projects , the timing of expenditures , and the associated cost recovery may be affected by permitting requirements and delays , construction schedules , availability of labor , equipment and materials , financing , legal and regulatory approvals and developments , community requests or protests , weather and other unforeseen conditions . 5 at december 31 , 2015 , sce 's rate base authorized in the 2015 grc and recorded rate base for ferc jurisdictional assets determined in accordance with sce 's ferc formula rate are summarized as follows : replace_table_token_5_th 1 excludes rate base adjustment of $ 324 million . see `` โregulatory proceedingsโ2015 general rate case `` for further discussion . 2 includes $ 13 million and $ 6 million reduction from extension of bonus depreciation for pole loading and ferc , respectively . sce 's forecasted rate base for 2016 and 2017 is as follows : replace_table_token_6_th 1 refer to footnote 1 in previous table . the forecasted rate base for 2016 and 2017 includes the net impact of extension of bonus depreciation , which reduces average rate base by $ 298 million and $ 701 million , respectively . distribution grid development distribution resources plan on july 1 , 2015 , sce filed its drp with the cpuc . the filing was made as part of a cpuc proceeding that was initiated to support california 's ghg reduction targets , modernize the electric distribution system to accommodate two-way flows of energy associated with distributed energy resources , such as rooftop solar , and facilitate customer choice of new technologies and services that reduce emissions and improve resilience . sce 's drp included an indicative forecast of capital investment in distribution automation , substation automation , communications systems , technology platforms and applications , and grid reinforcement . subject to future cpuc guidance , sce anticipates integrating authorization for revenue to support drp operation and maintenance and capital spending into future general rate cases , beginning with its 2018 โ 2020 grc . story_separator_special_tag utility cost-recovery activities โ representing cpuc- and ferc-authorized balancing accounts which allow for recovery of specific project or program costs , subject to reasonableness review or compliance with upfront standards . utility cost-recovery activities include rates which provide recovery , subject to reasonableness review of , among other things , fuel costs , purchased power costs , public purpose related-program costs ( including energy efficiency and demand-side management programs ) and certain operation and maintenance expenses . revenue impact of 2015 grc decision as indicated in the table below , revenue in the 2015 grc decision is lower than the amount authorized in 2014 due to lower operation and maintenance costs and income taxes . accordingly , sce will refund $ 451 million to customers beginning in january 2016. the following table summarizes the 2015 grc decision compared to the amounts of revenue currently authorized : replace_table_token_7_th 1 authorized revenue for operation and maintenance costs decreased due to : $ 72 million reduction in cost-recovery activities , which does not impact earnings , primarily for pension , postretirement benefits other than pensions ( pbop ) , medical and results sharing costs . these cost-recovery activities are recorded through balancing accounts , which allow for recovery of these specific projects or program costs , subject to reasonableness review . $ 93 million reduction for utility earning activities primarily from sce 's initiatives to improve operational efficiency which has resulted in lower forecasted operation and maintenance costs than included in the 2014 authorized amounts . 2 authorized revenue for income taxes decreased due to flow-through items for income tax benefits โ primarily repair and cost of removal deductions ( see `` notes to consolidated financial statementsโnote 7. income taxes `` for a discussion on flow-through regulatory accounting ) . forecasted flow-through items increased in the 2015 grc from the amounts reflected in 2014 authorized revenue which is reflected as lower revenue requirement . 10 the following table is a summary of sce 's results of operations for the periods indicated . replace_table_token_8_th 1 see use of non-gaap financial measures in `` management overviewโhighlights of operating results . `` utility earning activities 2015 vs 2014 utility earning activities were primarily affected by the following : lower operating revenue of $ 526 million is primarily due to : a decrease in authorized cpuc revenue of $ 379 million ( excludes amounts classified as cost-recovery activities ) . the decrease in revenue is primarily due to lower authorized revenue for operation and maintenance expenses and for flow-through items for income tax benefits related to repair and cost of removal deductions . a decrease in revenue from approximately $ 300 million of tax benefits in excess of amounts authorized in the 2015 grc and recognized through the tama and the pole loading balancing account ( offset in income tax benefits discussed below ) . in addition , sce recorded $ 39 million ( $ 26 million after-tax ) of incremental return on the pole loading rate base recorded through this balancing account . an increase in ferc-related revenue of $ 83 million primarily related to rate base growth and higher operating costs . an increase in san onofre-related revenue of $ 40 million due to the implementation of the san onofre oii settlement agreement . revenue for san onofre for 2015 primarily related to recovery of amortization of the regulatory asset and authorized return as provided by the san onofre settlement agreement compared to revenue in 2014 related to recovery of san onofre 's cost of service . 11 energy efficiency incentive awards were $ 29 million in 2015 compared to $ 22 million in 2014. sce 's portion of neil insurance and legal cost recoveries of approximately $ 20 million in 2015 ( see `` notes to the consolidated financial statementsโnote 11. commitments and contingenciesโsan onofre related matters `` for further information on the agreement with neil ) . higher revenue in 2014 from approval by the cpuc of a $ 30 million increase in the 2012-2014 authorized revenue requirement related to deferred income taxes and from $ 15 million of generator settlements . see โ notes to the consolidated financial statementsโnote 10. regulatory assets and liabilitiesโregulatory balancing accounts . โ lower operation and maintenance expense of $ 129 million primarily due to : lower san onofre-related expense of $ 93 million . during 2014 , san onofre-related expenses were recorded as operation and maintenance expenses . during 2015 , the cpuc authorized sce reimbursement of 2014 costs from the nuclear decommissioning trusts with such reimbursement subsequently refunded to customers . during 2015 , decommissioning expenses were reimbursed from the nuclear decommissioning trust and , therefore , did not result in operation and maintenance expenses . a decrease of $ 77 million primarily related to transmission and distribution , legal , and customer service costs partially offset by higher outside service costs in 2015. higher severance costs related to workforce reduction efforts ( $ 26 million in 2015 and $ 2 million in 2014 ) . in 2015 , sce incurred a penalty of $ 16.74 million related to ex parte communications ( see `` notes to consolidated financial statementsโnote 11. commitments and contingencies `` for further information ) . higher depreciation , decommissioning and amortization expense of $ 195 million primarily due to san onofre-related expense of $ 134 million in 2015 related to the amortization of the regulatory asset and a $ 61 million increase in depreciation primarily related to transmission and distribution investments . higher property and other taxes of $ 16 million primarily due to an increase in assessed property values in 2015. impairment and other charges of $ 163 million ( $ 72 million after-tax ) in 2014 related to the san onofre oii settlement agreement , as discussed below . higher other income and expenses of $ 21 million primarily due to higher afudc equity income related to a higher rate and higher construction work in progress balances in
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2,378 | despite this assessment , from time to time , our customers are unable to meet their payment obligations . we continuously monitor our customers ' credit worthiness and use our judgment in establishing a provision for estimated credit losses based upon our historical experience and any specific customer collection issues that we have identified . while such credit losses have historically been within our expectations and the provisions established , a significant change in the liquidity or financial position of our customers could have a material adverse impact on the collectability of accounts receivable and our future operating results . additionally , if our credit loss rates prove to be greater than we currently estimate , we record additional reserves for doubtful accounts . inventory we value our inventory at the lower of cost ( first-in , first-out method ) or market . we regularly review inventory quantities on hand and record a provision to write-down excess and obsolete inventory to its estimated net realizable value , if less than cost , based primarily on our estimated forecast of product demand . demand for our products can fluctuate significantly . our industry is subject to technological change , new product development , and product technological obsolescence that could result in an increase in the amount of obsolete inventory quantities on hand . therefore , any significant unanticipated changes in demand or technological developments in excess of our current estimates could have a significant impact on the value of our inventory and our reported operating results . warranty costs we provide for the estimated costs to fulfill customer warranty obligations upon the recognition of the related revenue . we offer warranty coverage for a majority of our precision power products for periods typically ranging from 12 to 24 months after shipment . we warranted our inverter products for five to ten years and provided the option to purchase additional warranty coverage up to 20 years . the product warranty expense accrued related to our standard inverter product warranties is now considered part of our discontinued operations and is recorded as such on our consolidated balance sheets . see note 3. discontinued operations in item 8 `` financial statements and supplementary data `` for more information on our discontinued operations and note 12. warranties in item 8 `` financial statements and supplementary data `` for more information on our warranties from continuing operations . we estimate the anticipated costs of repairing our products under such warranties based on the historical costs of the repairs . the assumptions we use to estimate warranty accruals are reevaluated periodically , in light of actual experience , and when appropriate , the accruals are adjusted . should product failure rates differ from our estimates , actual costs could vary significantly from our expectations . 26 goodwill , intangible and other long-lived assets as a result of our acquisitions , we recorded goodwill and intangible assets . goodwill and indefinite-lived intangible assets are subject to annual impairment testing , as well as testing upon the occurrence of any event that indicates a potential impairment . the annual impairment test can be performed using an assessment of qualitative factors in determining if it is more likely than not that goodwill is impaired . if this assessment indicates that it is more likely than not that goodwill is impaired , then the next step of impairment testing compares the fair value of a reporting unit to its carrying value . goodwill would be impaired if the resulting implied fair value of goodwill was less than the recorded carrying value of the goodwill . finite-lived intangible assets and other long-lived assets are subject to an impairment test if there is an indicator of impairment . when we determine that the carrying value of intangibles or other long-lived assets may not be recoverable based upon the existence of one or more indicators of impairment , we use the projected undiscounted cash flow method to determine whether an impairment exists , and then measure the impairment using discounted cash flows and other fair value measurements . the carrying value and ultimate realization of these assets is dependent upon our estimates of future earnings and benefits that we expect to generate from their use . if our expectations of future results and cash flows are significantly diminished , intangible assets , long-lived assets , and goodwill may be impaired and the resulting charge to operations may be material . additionally , the estimation of useful lives and expected cash flows require us to make significant judgments regarding future periods that are subject to some factors outside of our control . changes in these estimates could result in significant revisions to our carrying value of these assets and may result in material charges to our results of operations . in 2017 , we performed an assessment of qualitative factors for our annual impairment test of the goodwill . the factors reviewed included macroeconomic conditions , industry and market conditions , cost factors , and overall financial performance . this assessment resulted in the conclusion that there was no impairment of goodwill in 2017 . income taxes we are subject to income taxes in the united states and numerous foreign jurisdictions . significant judgment is required in determining our provision for income taxes and income tax assets and liabilities , including evaluating uncertainties in the application of accounting principles and complex tax laws . we record a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method . under this method , we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities , as well as for operating loss and tax credit carryforwards . story_separator_special_tag the industrial markets we serve include solar panels , flat panel display , architectural glass , analytical instrumentation and other industrial manufacturing markets . our customers in these markets are primarily global and regional original equipment manufacturers . sales to the industrial capital equipment markets as a percentage of total sales decreased to 17.4 % in 2016 from 20.3 % in 2015 , due primarily to the strong growth in sales in our semiconductor market . global support revenue increased by 14.0 % to $ 73.1 million , and 15.1 % of sales from $ 64.1 million , and 15.5 % of sales in 2015 . increased global service sales was due to share gains as well as growth in the installed base . despite this growth , global support revenue as a percentage of total sales decreased due to the strong growth in sales in our semiconductor market . sales to applied materials inc. and lam research , our two largest customers , increased $ 62.8 million to $ 270.5 million , and 55.9 % of sales , in 2016 from $ 207.7 million , and 50.1 % of sales in 2015 . our sales to applied materials inc. and lam research included sales for the semiconductor capital equipment market , as well as the solar and flat panel display markets . gross profit 31 gross profit increased $ 36.3 million to $ 253.1 million , and 52.3 % of revenue in 2016 from $ 216.9 million , and 52.3 % of revenue in 2015 , due to increased sales volume , higher procurement volumes , better absorption of fixed overhead and general weakening of the chinese yuan against the u.s. dollar . a substantial part of our direct labor and variable overhead costs are denominated in chinese yuan . operating expense research and development we perform research and development of products for new or emerging applications , technological changes to provide higher performance , lower cost , or other attributes that we expect to advance our customers ' products . we believe that continued development of technological applications , as well as enhancements to existing products to support customer requirements , are critical for us to compete in the markets we serve . accordingly , we devote significant personnel and financial resources to the development of new products and the enhancement of existing products , and we expect these investments to continue . research and development expenses in 2016 increased $ 4.9 million to $ 44.4 million from $ 39.6 million in 2015 primarily due to our continued investment in product development to maintain and increase our technological leadership . research and development expenses as a percentage of total revenue decreased to 9.2 % in 2016 from 9.5 % in 2015 as successful adoption of our products has driven increased sales . selling , general and administrative our selling expenses support domestic and international sales and marketing activities that include personnel , trade shows , advertising , internal and third-party sales representative commissions , and other selling and marketing activities . our general and administrative expenses support our worldwide corporate , legal , tax , financial , governance , administrative , information systems , and human resource functions in addition to our general management . sg & a expenses increased $ 11.6 million to $ 77.7 million in 2016 as compared to $ 66.1 million in 2015 . the increases were primarily due to higher sales expense as we expanded our sales management and marketing team to support our growth diversification and geographical expansion plans , as well as , higher stock-based compensation expense , professional fees and costs associated with acquisition opportunities . amortization expense amortization expense decreased $ 0.2 million to $ 4.2 million in 2016 compared to $ 4.4 million in 2015 . the decrease of $ 0.2 million in 2016 is primarily due to the decrease in foreign exchange rates in europe restructuring charges in june 2015 , we committed to a restructuring plan in relation to the wind down of our inverter business which concluded december 31 , 2015 and accordingly our inverter business has been reflected as a discontinued operation in our consolidate financial statements as of december 31 , 2015. see note 3. discontinued operations in item 8 `` financial statements and supplementary data . `` as a result of discontinued operations , amounts of general corporate overhead which had previously been reflected in our inverter segment have been included in the total operating expense in the table above in all periods presented . other income ( expense ) other income ( expense ) , net consists primarily of interest income and expense , foreign exchange gains and losses , and other miscellaneous items . other income ( expense ) , net increased $ 2.4 million to $ 1.2 million in 2016 from $ ( 1.2 ) million in 2015 . these gains are principally related to gains recognized due to fluctuation in foreign exchange rates and our assets in different countries . other income ( expense ) , net includes interest expense , net of $ ( 0.1 ) million and $ ( 0.9 ) million in 2016 and 2015 , respectively . provision for income taxes from continuing operations we recorded income tax expense of $ 11.1 million , or an effective tax rate of 8.7 % in 2016 , compared to 2015 income tax expense of $ 22.0 million , or an effective tax rate of 20.8 % . the decrease in tax rate for 2016 is attributable to a tax benefit related to the early adoption of asu 2016-09 , `` improvements to employee share-based payment accounting `` and the favorable settlement of tax audits during 2016. the effective rate differs from the federal statutory rate of 35 % primarily due to the benefit of earnings in foreign jurisdictions which are subject to lower tax rates , a benefit related to foreign tax credits , favorable settlements
| net cash provided by operating activities net cash provided by operating activities in 2017 was $ 182.7 million , an increase of $ 63.4 million , or 53.2 % compared to $ 119.3 million for the same period in 2016 . the increase in net cash flows from operating activities was primarily due to improved earnings from continuing operations and timing of taxes , partially offset by increased cash required for accounts receivable and inventory to support current business volume . net cash ( used in ) provided by investing activities net cash ( used in ) provided by investing activities in 2017 was $ ( 28.1 ) million , compared to $ 0.3 million in 2016 . included in cash used in investing activities for 2017 was $ 17.3 million for the acquisition of excelsys and $ 3.5 million for the purchase of a foreign currency exchange hedge for an anticipated transaction which was not completed . capital expenditures in 2017 increased $ 2.2 million from $ 6.8 million in 2016 to $ 9.0 million in 2017 to support new facilities and manufacturing operations . net cash ( used in ) provided by financing activities net cash ( used in ) provided by financing activities in 2017 was $ ( 31.3 ) million , a $( 33.4 ) million change from $ 2.1 million cash provided by financing activities in 2016 .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash provided by operating activities net cash provided by operating activities in 2017 was $ 182.7 million , an increase of $ 63.4 million , or 53.2 % compared to $ 119.3 million for the same period in 2016 . the increase in net cash flows from operating activities was primarily due to improved earnings from continuing operations and timing of taxes , partially offset by increased cash required for accounts receivable and inventory to support current business volume . net cash ( used in ) provided by investing activities net cash ( used in ) provided by investing activities in 2017 was $ ( 28.1 ) million , compared to $ 0.3 million in 2016 . included in cash used in investing activities for 2017 was $ 17.3 million for the acquisition of excelsys and $ 3.5 million for the purchase of a foreign currency exchange hedge for an anticipated transaction which was not completed . capital expenditures in 2017 increased $ 2.2 million from $ 6.8 million in 2016 to $ 9.0 million in 2017 to support new facilities and manufacturing operations . net cash ( used in ) provided by financing activities net cash ( used in ) provided by financing activities in 2017 was $ ( 31.3 ) million , a $( 33.4 ) million change from $ 2.1 million cash provided by financing activities in 2016 .
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Suspicious Activity Report : despite this assessment , from time to time , our customers are unable to meet their payment obligations . we continuously monitor our customers ' credit worthiness and use our judgment in establishing a provision for estimated credit losses based upon our historical experience and any specific customer collection issues that we have identified . while such credit losses have historically been within our expectations and the provisions established , a significant change in the liquidity or financial position of our customers could have a material adverse impact on the collectability of accounts receivable and our future operating results . additionally , if our credit loss rates prove to be greater than we currently estimate , we record additional reserves for doubtful accounts . inventory we value our inventory at the lower of cost ( first-in , first-out method ) or market . we regularly review inventory quantities on hand and record a provision to write-down excess and obsolete inventory to its estimated net realizable value , if less than cost , based primarily on our estimated forecast of product demand . demand for our products can fluctuate significantly . our industry is subject to technological change , new product development , and product technological obsolescence that could result in an increase in the amount of obsolete inventory quantities on hand . therefore , any significant unanticipated changes in demand or technological developments in excess of our current estimates could have a significant impact on the value of our inventory and our reported operating results . warranty costs we provide for the estimated costs to fulfill customer warranty obligations upon the recognition of the related revenue . we offer warranty coverage for a majority of our precision power products for periods typically ranging from 12 to 24 months after shipment . we warranted our inverter products for five to ten years and provided the option to purchase additional warranty coverage up to 20 years . the product warranty expense accrued related to our standard inverter product warranties is now considered part of our discontinued operations and is recorded as such on our consolidated balance sheets . see note 3. discontinued operations in item 8 `` financial statements and supplementary data `` for more information on our discontinued operations and note 12. warranties in item 8 `` financial statements and supplementary data `` for more information on our warranties from continuing operations . we estimate the anticipated costs of repairing our products under such warranties based on the historical costs of the repairs . the assumptions we use to estimate warranty accruals are reevaluated periodically , in light of actual experience , and when appropriate , the accruals are adjusted . should product failure rates differ from our estimates , actual costs could vary significantly from our expectations . 26 goodwill , intangible and other long-lived assets as a result of our acquisitions , we recorded goodwill and intangible assets . goodwill and indefinite-lived intangible assets are subject to annual impairment testing , as well as testing upon the occurrence of any event that indicates a potential impairment . the annual impairment test can be performed using an assessment of qualitative factors in determining if it is more likely than not that goodwill is impaired . if this assessment indicates that it is more likely than not that goodwill is impaired , then the next step of impairment testing compares the fair value of a reporting unit to its carrying value . goodwill would be impaired if the resulting implied fair value of goodwill was less than the recorded carrying value of the goodwill . finite-lived intangible assets and other long-lived assets are subject to an impairment test if there is an indicator of impairment . when we determine that the carrying value of intangibles or other long-lived assets may not be recoverable based upon the existence of one or more indicators of impairment , we use the projected undiscounted cash flow method to determine whether an impairment exists , and then measure the impairment using discounted cash flows and other fair value measurements . the carrying value and ultimate realization of these assets is dependent upon our estimates of future earnings and benefits that we expect to generate from their use . if our expectations of future results and cash flows are significantly diminished , intangible assets , long-lived assets , and goodwill may be impaired and the resulting charge to operations may be material . additionally , the estimation of useful lives and expected cash flows require us to make significant judgments regarding future periods that are subject to some factors outside of our control . changes in these estimates could result in significant revisions to our carrying value of these assets and may result in material charges to our results of operations . in 2017 , we performed an assessment of qualitative factors for our annual impairment test of the goodwill . the factors reviewed included macroeconomic conditions , industry and market conditions , cost factors , and overall financial performance . this assessment resulted in the conclusion that there was no impairment of goodwill in 2017 . income taxes we are subject to income taxes in the united states and numerous foreign jurisdictions . significant judgment is required in determining our provision for income taxes and income tax assets and liabilities , including evaluating uncertainties in the application of accounting principles and complex tax laws . we record a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method . under this method , we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities , as well as for operating loss and tax credit carryforwards . story_separator_special_tag the industrial markets we serve include solar panels , flat panel display , architectural glass , analytical instrumentation and other industrial manufacturing markets . our customers in these markets are primarily global and regional original equipment manufacturers . sales to the industrial capital equipment markets as a percentage of total sales decreased to 17.4 % in 2016 from 20.3 % in 2015 , due primarily to the strong growth in sales in our semiconductor market . global support revenue increased by 14.0 % to $ 73.1 million , and 15.1 % of sales from $ 64.1 million , and 15.5 % of sales in 2015 . increased global service sales was due to share gains as well as growth in the installed base . despite this growth , global support revenue as a percentage of total sales decreased due to the strong growth in sales in our semiconductor market . sales to applied materials inc. and lam research , our two largest customers , increased $ 62.8 million to $ 270.5 million , and 55.9 % of sales , in 2016 from $ 207.7 million , and 50.1 % of sales in 2015 . our sales to applied materials inc. and lam research included sales for the semiconductor capital equipment market , as well as the solar and flat panel display markets . gross profit 31 gross profit increased $ 36.3 million to $ 253.1 million , and 52.3 % of revenue in 2016 from $ 216.9 million , and 52.3 % of revenue in 2015 , due to increased sales volume , higher procurement volumes , better absorption of fixed overhead and general weakening of the chinese yuan against the u.s. dollar . a substantial part of our direct labor and variable overhead costs are denominated in chinese yuan . operating expense research and development we perform research and development of products for new or emerging applications , technological changes to provide higher performance , lower cost , or other attributes that we expect to advance our customers ' products . we believe that continued development of technological applications , as well as enhancements to existing products to support customer requirements , are critical for us to compete in the markets we serve . accordingly , we devote significant personnel and financial resources to the development of new products and the enhancement of existing products , and we expect these investments to continue . research and development expenses in 2016 increased $ 4.9 million to $ 44.4 million from $ 39.6 million in 2015 primarily due to our continued investment in product development to maintain and increase our technological leadership . research and development expenses as a percentage of total revenue decreased to 9.2 % in 2016 from 9.5 % in 2015 as successful adoption of our products has driven increased sales . selling , general and administrative our selling expenses support domestic and international sales and marketing activities that include personnel , trade shows , advertising , internal and third-party sales representative commissions , and other selling and marketing activities . our general and administrative expenses support our worldwide corporate , legal , tax , financial , governance , administrative , information systems , and human resource functions in addition to our general management . sg & a expenses increased $ 11.6 million to $ 77.7 million in 2016 as compared to $ 66.1 million in 2015 . the increases were primarily due to higher sales expense as we expanded our sales management and marketing team to support our growth diversification and geographical expansion plans , as well as , higher stock-based compensation expense , professional fees and costs associated with acquisition opportunities . amortization expense amortization expense decreased $ 0.2 million to $ 4.2 million in 2016 compared to $ 4.4 million in 2015 . the decrease of $ 0.2 million in 2016 is primarily due to the decrease in foreign exchange rates in europe restructuring charges in june 2015 , we committed to a restructuring plan in relation to the wind down of our inverter business which concluded december 31 , 2015 and accordingly our inverter business has been reflected as a discontinued operation in our consolidate financial statements as of december 31 , 2015. see note 3. discontinued operations in item 8 `` financial statements and supplementary data . `` as a result of discontinued operations , amounts of general corporate overhead which had previously been reflected in our inverter segment have been included in the total operating expense in the table above in all periods presented . other income ( expense ) other income ( expense ) , net consists primarily of interest income and expense , foreign exchange gains and losses , and other miscellaneous items . other income ( expense ) , net increased $ 2.4 million to $ 1.2 million in 2016 from $ ( 1.2 ) million in 2015 . these gains are principally related to gains recognized due to fluctuation in foreign exchange rates and our assets in different countries . other income ( expense ) , net includes interest expense , net of $ ( 0.1 ) million and $ ( 0.9 ) million in 2016 and 2015 , respectively . provision for income taxes from continuing operations we recorded income tax expense of $ 11.1 million , or an effective tax rate of 8.7 % in 2016 , compared to 2015 income tax expense of $ 22.0 million , or an effective tax rate of 20.8 % . the decrease in tax rate for 2016 is attributable to a tax benefit related to the early adoption of asu 2016-09 , `` improvements to employee share-based payment accounting `` and the favorable settlement of tax audits during 2016. the effective rate differs from the federal statutory rate of 35 % primarily due to the benefit of earnings in foreign jurisdictions which are subject to lower tax rates , a benefit related to foreign tax credits , favorable settlements
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2,379 | these brands may also be further extended by 29 pairing a licensed concept with an owned or controlled brand . by focusing on these brands , the company is working to build a more consistent revenue stream and basis for future growth , and to leverage profitability . during 2014 net revenues from the company 's franchise brands increased by 31 % and totaled 55 % of total consolidated net revenues . the company 's innovative product offerings encompass a broad variety of toys including boys ' action figures , vehicles and play sets , girls ' toys , electronic toys , plush products , preschool toys and infant products , electronic interactive products , creative play and toy-related specialty products . games offerings include board , off-the-board , digital , card , electronic , trading card and role-playing games . while hasbro believes it has built a more sustainable revenue base by developing and maintaining its owned or controlled brands and avoiding reliance on licensed entertainment properties , it continues to selectively enter into or leverage existing strategic licenses which complement its brands and key strengths and allow the company to offer innovative products based on movie , television and other entertainment properties owned by third parties . the company 's primary licenses include its agreements with marvel characters b.v. ( ยmarvelย ) for characters in the marvel universe , including spider-man and the avengers ; lucas licensing , ltd. ( ยlucasย ) , related to the star wars brand ; sesame workshop , related to the sesame street characters and rovio entertainment ltd. related to the angry birds brand . both marvel and lucas are owned by the walt disney company ( ยdisneyย ) . in 2013 , the company and disney amended both the marvel and lucas agreements which extended the term of the license for marvel characters through 2020 and provides additional guaranteed royalty payments with respect to both marvel and star wars products in anticipation of expected future motion pictures and other related entertainment through 2020. in september 2014 , the company 's strategic merchandising relationship with disney expanded to include product offerings , specifically small and fashion dolls , based on the popular disney princess and frozen brands , commencing in 2016. also in 2014 the company entered into an agreement with disney allowing the company to offer certain products based on the disney descendants brand beginning in 2015. in addition to offering products based on licensed entertainment properties , the company also offers products which are licensed from outside inventors . sales of marvel products are dependent upon the number and type of theatrical releases in any given year . in 2014 , the company had sales of marvel products related to three theatrical releases : captain america : the winter soldier , the amazing spider-man and guardians of the galaxy . in 2013 , the company only had sales of marvel products related to the may release of iron man 3 ; however , these sales were not as significant as those sales of products in 2012 related to the theatrical releases of marvel 's the avengers and the amazing spider-man . during 2015 , the company will market products related to two planned theatrical motion picture releases based on marvel characters including avengers : age of ultron . furthermore , 2015 sales of star wars products will be supported by the highly anticipated release of star wars : the force awakens from lucasfilm ltd. as well as jurassic world from universal pictures . the company also seeks to build all-encompassing brand experiences and drive product-related revenues by increasing the visibility of its brands through entertainment such as motion pictures and television programming . since 2007 , the company has had a number of motion pictures based on its brands released by major motion picture studios including four motion pictures based on its transformers brand , two motion pictures based on its g.i . joe brand and two motion pictures based on its gaming brands , battleship and ouija . the company developed and marketed product lines based on these motion pictures . the company has also released animated movies based on its my little pony and my little pony : equestria girls brands . in october 2015 , the company plans to re-ignite an archived brand with the expected release of jem and the holograms by hasbro 's own recently established film label , allspark pictures . in addition to using motion pictures to provide entertainment experiences for its brands , the company has an internal wholly-owned production studio , hasbro studios , which is responsible for the creation and development of storytelling based on hasbro 's brands , across mediums including television , film and digital shorts . the television programming is currently aired in markets throughout the world . domestically , hasbro studios programming is distributed primarily to hub television network , llc , formally known as hub network 30 and , as of october 13 , 2014 , now the discovery family channel ( the ยnetworkย ) . internationally , hasbro studios also distributes to various broadcasters and cable networks and globally on various digital platforms , including netflix and itunes . beginning in 2015 , hasbro studios will begin distributing certain programming domestically to other outlets , including cartoon network . the company 's television initiatives support its strategy of growing its brands well beyond traditional toys and games and providing entertainment experiences for consumers of all ages in many forms or formats . the network is the company 's joint venture with discovery communications , inc. ( ยdiscoveryย ) and is a cable television network in the united states dedicated to high-quality children 's and family entertainment and educational programming . programming on the network includes content based on hasbro 's brands as well as programming developed by discovery and other third parties . story_separator_special_tag revenues from furby , a fashion-oriented brand , are generally higher in the first full year of introduction . preschool : net revenues in the preschool category decreased 4 % in 2014 compared to 2013 and increased 1 % in 2013 compared to 2012. in 2014 , higher net revenues from franchise brands , play-doh and transformers , particularly playskool heroes transformers rescue bots which are supported by animated television programming , were more than offset by lower net revenues from sesame street , core playskool and tonka products . in 2013 , higher net revenues from play-doh , playskool heroes , specifically transformers rescue bots , and sesame street , including big hugs elmo , products compared to 2012 were almost wholly offset by lower net revenues from tonka and core playskool products . in 2013 , the company out-licensed the distribution of tonka products to a third-party , thereby earning licensing revenue in 2014 and 2013 compared to wholesale revenue in 2012 . 35 the following table presents net revenues and operating profit data for the company 's three principal segments for 2014 , 2013 and 2012. replace_table_token_6_th u.s. and canada u.s. and canada segment net revenues for the year ended december 28 , 2014 increased 1 % compared to 2013 and decreased 5 % in 2013 compared to 2012. net revenues in 2014 included unfavorable foreign currency translation of approximately $ 5,500. the impact of currency translation was not material in 2013. in 2014 , higher net revenues from the boys ' category were almost wholly offset by lower net revenues from the games , girls ' and preschool categories . in 2013 , lower net revenues from boys and preschool products were only partially offset by higher net revenues from girls and games products . lower net revenues in 2013 were partially due to continued challenging economic conditions which resulted in lower consumer spending . in the boys ' category , higher net revenues from transformers , nerf , marvel and star wars in 2014 compared to 2013 were only partially offset by expected lower sales of beyblade products . in 2013 , lower sales of marvel , beyblade and star wars products compared to 2012 more than offset slightly higher net revenues from nerf and transformers products . in the games category , higher net revenues from franchise brands , specifically magic : the gathering and monopoly , in 2014 compared to 2013 , as well as other games brands , were more than offset by lower net revenues from duel masters and twister , and other certain brands . in 2013 , higher net revenues from magic : the gathering , monopoly , elefun & friends , duel masters , angry birds , operation and twister products compared to 2012 more than offset lower net revenues from other traditional board games . in the girls ' category , higher net revenues from franchise brands , littlest pet shop , my little pony , nerf and play-doh , in 2014 compared to 2013 as well as higher net revenues from furreal friends were more than offset by an expected decline in net revenues from furby products . in 2013 , higher net revenues from my little pony products along with the introduction of nerf rebelle products contributed to the category 's growth . this growth was only partially offset by lower net revenues from littlest pet shop , one direction , baby alive and furby products . in the preschool category , higher net revenues from the franchise brands play-doh and transformers in 2014 compared to 2013 were more than offset by lower net sales from core playskool as well as key partner brands , particularly sesame street , marvel and star wars . in 2013 , higher net revenues from sesame street , play-doh and playskool heroes products , primarily related to the transformers brand , were more than offset by lower net revenues from core playskool and tonka products . u.s. and canada operating profit increased 7 % in 2014 compared to 2013 and decreased 2 % in 2013 compared to 2012. operating profit margin improved to 16.5 % in 2014 from 15.6 % in 2013 and 15.1 % in 2012. operating profit for the year ended december 30 , 2012 includes restructuring charges of $ 2,444. absent these charges , operating profit margin was 15.2 % in 2012. the improvement in operating profit and operating profit 36 margin in 2014 compared to 2013 was the result of both higher net revenues and improved product mix , as well as lower shipping and distribution costs . in 2013 , operating profit decreased in dollars compared to 2012 as a result of lower net revenues and , to a lesser extent , higher product development and selling , distribution and administration expenses partially offset by lower advertising expense . 2013 operating profit margin increased as a result of more favorable product mix and lower advertising expense as a percentage of net revenues partially offset by higher product development and selling , distribution and administration expenses as a percentage of net revenues . foreign currency translation did not have a material impact on u.s. and canada operating profit in 2014 or 2013. international international segment net revenues for the year ended december 28 , 2014 increased 8 % compared to 2013 and 5 % in 2013 compared to 2012. in 2014 and 2013 , net revenues were impacted by ( unfavorable ) / favorable currency translation of approximately $ ( 87,700 ) and $ 7,000 , respectively , as a result of fluctuations in the u.s. dollar . excluding the impact of foreign exchange , net revenues for 2014 and 2013 increased 13 % and 5 % , respectively , compared to prior years . the following table presents net revenues by geographic region for the company 's international segment for 2014 , 2013 and 2012. replace_table_token_7_th in 2014 , net revenues for europe ,
| liquidity and capital resources the company has historically generated a significant amount of cash from operations . in 2014 the company funded its operations and liquidity needs primarily through cash flows from operations , and , when needed , using borrowings under its available lines of credit and its commercial paper program . during 2015 , the company expects to continue to fund its working capital needs primarily through cash flows from operations and , when 42 needed , by issuing commercial paper or borrowing under its revolving credit agreement . in the event that the company is not able to issue commercial paper , the company intends to utilize its available lines of credit . the company believes that the funds available to it , including cash expected to be generated from operations and funds available through its commercial paper program or its available lines of credit are adequate to meet its working capital needs for 2015 , however , unexpected events or circumstances such as material operating losses or increased capital or other expenditures , or inability to otherwise access the commercial paper market , may reduce or eliminate the availability of external financial resources . in addition , significant disruptions to credit markets may also reduce or eliminate the availability of external financial resources . although the company believes the risk of nonperformance by the counterparties to its financial facilities is not significant , in times of severe economic downturn in the credit markets it is possible that one or more sources of external financing may be unable or unwilling to provide funding to the company . in may 2014 , the company issued $ 600,000 in long-term debt which consists of $ 300,000 in 3.15 % notes due 2021 and $ 300,000 in 5.10 % notes due 2044 ( collectively , the ยnotesย ) . the company may redeem the notes at its option at the greater of the principal amount of the notes or the present value of the remaining scheduled payments using the effective interest rate on applicable u.s. treasury bills at the time of repurchase .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources the company has historically generated a significant amount of cash from operations . in 2014 the company funded its operations and liquidity needs primarily through cash flows from operations , and , when needed , using borrowings under its available lines of credit and its commercial paper program . during 2015 , the company expects to continue to fund its working capital needs primarily through cash flows from operations and , when 42 needed , by issuing commercial paper or borrowing under its revolving credit agreement . in the event that the company is not able to issue commercial paper , the company intends to utilize its available lines of credit . the company believes that the funds available to it , including cash expected to be generated from operations and funds available through its commercial paper program or its available lines of credit are adequate to meet its working capital needs for 2015 , however , unexpected events or circumstances such as material operating losses or increased capital or other expenditures , or inability to otherwise access the commercial paper market , may reduce or eliminate the availability of external financial resources . in addition , significant disruptions to credit markets may also reduce or eliminate the availability of external financial resources . although the company believes the risk of nonperformance by the counterparties to its financial facilities is not significant , in times of severe economic downturn in the credit markets it is possible that one or more sources of external financing may be unable or unwilling to provide funding to the company . in may 2014 , the company issued $ 600,000 in long-term debt which consists of $ 300,000 in 3.15 % notes due 2021 and $ 300,000 in 5.10 % notes due 2044 ( collectively , the ยnotesย ) . the company may redeem the notes at its option at the greater of the principal amount of the notes or the present value of the remaining scheduled payments using the effective interest rate on applicable u.s. treasury bills at the time of repurchase .
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Suspicious Activity Report : these brands may also be further extended by 29 pairing a licensed concept with an owned or controlled brand . by focusing on these brands , the company is working to build a more consistent revenue stream and basis for future growth , and to leverage profitability . during 2014 net revenues from the company 's franchise brands increased by 31 % and totaled 55 % of total consolidated net revenues . the company 's innovative product offerings encompass a broad variety of toys including boys ' action figures , vehicles and play sets , girls ' toys , electronic toys , plush products , preschool toys and infant products , electronic interactive products , creative play and toy-related specialty products . games offerings include board , off-the-board , digital , card , electronic , trading card and role-playing games . while hasbro believes it has built a more sustainable revenue base by developing and maintaining its owned or controlled brands and avoiding reliance on licensed entertainment properties , it continues to selectively enter into or leverage existing strategic licenses which complement its brands and key strengths and allow the company to offer innovative products based on movie , television and other entertainment properties owned by third parties . the company 's primary licenses include its agreements with marvel characters b.v. ( ยmarvelย ) for characters in the marvel universe , including spider-man and the avengers ; lucas licensing , ltd. ( ยlucasย ) , related to the star wars brand ; sesame workshop , related to the sesame street characters and rovio entertainment ltd. related to the angry birds brand . both marvel and lucas are owned by the walt disney company ( ยdisneyย ) . in 2013 , the company and disney amended both the marvel and lucas agreements which extended the term of the license for marvel characters through 2020 and provides additional guaranteed royalty payments with respect to both marvel and star wars products in anticipation of expected future motion pictures and other related entertainment through 2020. in september 2014 , the company 's strategic merchandising relationship with disney expanded to include product offerings , specifically small and fashion dolls , based on the popular disney princess and frozen brands , commencing in 2016. also in 2014 the company entered into an agreement with disney allowing the company to offer certain products based on the disney descendants brand beginning in 2015. in addition to offering products based on licensed entertainment properties , the company also offers products which are licensed from outside inventors . sales of marvel products are dependent upon the number and type of theatrical releases in any given year . in 2014 , the company had sales of marvel products related to three theatrical releases : captain america : the winter soldier , the amazing spider-man and guardians of the galaxy . in 2013 , the company only had sales of marvel products related to the may release of iron man 3 ; however , these sales were not as significant as those sales of products in 2012 related to the theatrical releases of marvel 's the avengers and the amazing spider-man . during 2015 , the company will market products related to two planned theatrical motion picture releases based on marvel characters including avengers : age of ultron . furthermore , 2015 sales of star wars products will be supported by the highly anticipated release of star wars : the force awakens from lucasfilm ltd. as well as jurassic world from universal pictures . the company also seeks to build all-encompassing brand experiences and drive product-related revenues by increasing the visibility of its brands through entertainment such as motion pictures and television programming . since 2007 , the company has had a number of motion pictures based on its brands released by major motion picture studios including four motion pictures based on its transformers brand , two motion pictures based on its g.i . joe brand and two motion pictures based on its gaming brands , battleship and ouija . the company developed and marketed product lines based on these motion pictures . the company has also released animated movies based on its my little pony and my little pony : equestria girls brands . in october 2015 , the company plans to re-ignite an archived brand with the expected release of jem and the holograms by hasbro 's own recently established film label , allspark pictures . in addition to using motion pictures to provide entertainment experiences for its brands , the company has an internal wholly-owned production studio , hasbro studios , which is responsible for the creation and development of storytelling based on hasbro 's brands , across mediums including television , film and digital shorts . the television programming is currently aired in markets throughout the world . domestically , hasbro studios programming is distributed primarily to hub television network , llc , formally known as hub network 30 and , as of october 13 , 2014 , now the discovery family channel ( the ยnetworkย ) . internationally , hasbro studios also distributes to various broadcasters and cable networks and globally on various digital platforms , including netflix and itunes . beginning in 2015 , hasbro studios will begin distributing certain programming domestically to other outlets , including cartoon network . the company 's television initiatives support its strategy of growing its brands well beyond traditional toys and games and providing entertainment experiences for consumers of all ages in many forms or formats . the network is the company 's joint venture with discovery communications , inc. ( ยdiscoveryย ) and is a cable television network in the united states dedicated to high-quality children 's and family entertainment and educational programming . programming on the network includes content based on hasbro 's brands as well as programming developed by discovery and other third parties . story_separator_special_tag revenues from furby , a fashion-oriented brand , are generally higher in the first full year of introduction . preschool : net revenues in the preschool category decreased 4 % in 2014 compared to 2013 and increased 1 % in 2013 compared to 2012. in 2014 , higher net revenues from franchise brands , play-doh and transformers , particularly playskool heroes transformers rescue bots which are supported by animated television programming , were more than offset by lower net revenues from sesame street , core playskool and tonka products . in 2013 , higher net revenues from play-doh , playskool heroes , specifically transformers rescue bots , and sesame street , including big hugs elmo , products compared to 2012 were almost wholly offset by lower net revenues from tonka and core playskool products . in 2013 , the company out-licensed the distribution of tonka products to a third-party , thereby earning licensing revenue in 2014 and 2013 compared to wholesale revenue in 2012 . 35 the following table presents net revenues and operating profit data for the company 's three principal segments for 2014 , 2013 and 2012. replace_table_token_6_th u.s. and canada u.s. and canada segment net revenues for the year ended december 28 , 2014 increased 1 % compared to 2013 and decreased 5 % in 2013 compared to 2012. net revenues in 2014 included unfavorable foreign currency translation of approximately $ 5,500. the impact of currency translation was not material in 2013. in 2014 , higher net revenues from the boys ' category were almost wholly offset by lower net revenues from the games , girls ' and preschool categories . in 2013 , lower net revenues from boys and preschool products were only partially offset by higher net revenues from girls and games products . lower net revenues in 2013 were partially due to continued challenging economic conditions which resulted in lower consumer spending . in the boys ' category , higher net revenues from transformers , nerf , marvel and star wars in 2014 compared to 2013 were only partially offset by expected lower sales of beyblade products . in 2013 , lower sales of marvel , beyblade and star wars products compared to 2012 more than offset slightly higher net revenues from nerf and transformers products . in the games category , higher net revenues from franchise brands , specifically magic : the gathering and monopoly , in 2014 compared to 2013 , as well as other games brands , were more than offset by lower net revenues from duel masters and twister , and other certain brands . in 2013 , higher net revenues from magic : the gathering , monopoly , elefun & friends , duel masters , angry birds , operation and twister products compared to 2012 more than offset lower net revenues from other traditional board games . in the girls ' category , higher net revenues from franchise brands , littlest pet shop , my little pony , nerf and play-doh , in 2014 compared to 2013 as well as higher net revenues from furreal friends were more than offset by an expected decline in net revenues from furby products . in 2013 , higher net revenues from my little pony products along with the introduction of nerf rebelle products contributed to the category 's growth . this growth was only partially offset by lower net revenues from littlest pet shop , one direction , baby alive and furby products . in the preschool category , higher net revenues from the franchise brands play-doh and transformers in 2014 compared to 2013 were more than offset by lower net sales from core playskool as well as key partner brands , particularly sesame street , marvel and star wars . in 2013 , higher net revenues from sesame street , play-doh and playskool heroes products , primarily related to the transformers brand , were more than offset by lower net revenues from core playskool and tonka products . u.s. and canada operating profit increased 7 % in 2014 compared to 2013 and decreased 2 % in 2013 compared to 2012. operating profit margin improved to 16.5 % in 2014 from 15.6 % in 2013 and 15.1 % in 2012. operating profit for the year ended december 30 , 2012 includes restructuring charges of $ 2,444. absent these charges , operating profit margin was 15.2 % in 2012. the improvement in operating profit and operating profit 36 margin in 2014 compared to 2013 was the result of both higher net revenues and improved product mix , as well as lower shipping and distribution costs . in 2013 , operating profit decreased in dollars compared to 2012 as a result of lower net revenues and , to a lesser extent , higher product development and selling , distribution and administration expenses partially offset by lower advertising expense . 2013 operating profit margin increased as a result of more favorable product mix and lower advertising expense as a percentage of net revenues partially offset by higher product development and selling , distribution and administration expenses as a percentage of net revenues . foreign currency translation did not have a material impact on u.s. and canada operating profit in 2014 or 2013. international international segment net revenues for the year ended december 28 , 2014 increased 8 % compared to 2013 and 5 % in 2013 compared to 2012. in 2014 and 2013 , net revenues were impacted by ( unfavorable ) / favorable currency translation of approximately $ ( 87,700 ) and $ 7,000 , respectively , as a result of fluctuations in the u.s. dollar . excluding the impact of foreign exchange , net revenues for 2014 and 2013 increased 13 % and 5 % , respectively , compared to prior years . the following table presents net revenues by geographic region for the company 's international segment for 2014 , 2013 and 2012. replace_table_token_7_th in 2014 , net revenues for europe ,
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2,380 | 10 since we shipped our first products in 2002 , the company has evolved into a community of dedicated employees that create , develop , make , market , advertise , and promote products and ideas that allow couples to have a fuller sexual experience of themselves and each other . we are focused on building , developing and marketing our liberator brand of bedroom adventure gear products . since inception , we have spent over $ 8 million in print advertising , building awareness of the liberator brand primarily through magazine advertisements . we now intend to broaden our marketing reach by advertising on selected cable television and radio channels , and through expanded internet advertising . in addition to the liberator shapes , we also produce a line of casual foam-based furniture that we sell under the studio oneup โ jaxx โ brand . these products are produced as a by-product from the manufacturing of liberator products , as we re-purpose the scrap foam created from the cutting of the cushions . the studio oneup products are offered directly to consumers through our web site www.studiooneup.com , to e-merchants under drop-ship agreements where we ship directly to their customers , and to other resellers . we are currently housed in a 140,000 sq . ft. vertically integrated manufacturing facility on eight acres in a suburb of atlanta , georgia . since our first sale in may 2002 , we have grown to include 108 employees , with our products being sold directly to consumers and through hundreds of domestic resellers and on-line affiliates and six international resellers . the following information should be read together with the consolidated financial statements and notes thereto included elsewhere herein . critical accounting policies and estimates our consolidated financial statements included under item 8 in this report have been prepared in accordance with u.s. generally accepted accounting principles ( gaap ) . our significant accounting policies are described in the notes to our consolidated financial statements . the preparation of financial statements in accordance with gaap requires that we make estimates and assumptions that affect the amounts reported in our financial statements and their accompanying notes . we have identified certain policies that we believe are important to the portrayal of our financial condition and results of operations . these policies require the application of significant judgment by our management . we base our estimates on our historical experience , industry standards , and various other assumptions that we believe are reasonable under the circumstances . actual results could differ from these estimates under different assumptions or conditions . an adverse effect on our financial condition , changes in financial condition , and results of operations could occur if circumstances change that alter the various assumptions or conditions used in such estimates or assumptions . our critical accounting policies include those listed below . revenue recognition . to recognize revenue , four basic criteria must be met : 1 ) there is evidence that an arrangement exists ; 2 ) delivery has occurred ; 3 ) the fee is fixed or determinable ; and 4 ) collectability is reasonably assured . revenue from sales transactions where the buyer has the right to return the product is recognized at the time of sale only if ( 1 ) the seller 's price to the buyer is substantially fixed or determinable at the date of sale ; ( 2 ) the buyer has paid the seller , or the buyer is obligated to pay the seller and the obligation is not contingent on resale of the product ; ( 3 ) the buyer 's obligation to the seller would not be changed in the event of theft or physical destruction or damage of the product ; ( 4 ) the buyer acquiring the product for resale has economic substance apart from that provided by the seller ; ( 5 ) the seller does not have significant obligations for future performance to directly bring about resale of the product by the buyer ; and ( 6 ) the amount of future returns can be reasonably estimated . we recognize revenue upon determination that all criteria for revenue recognition have been met . the criteria are usually met at the time title passes to the customer , which usually occurs upon shipment . revenue from shipments where title passes upon delivery is deferred until the shipment has been delivered . net sales are comprised of the total product sales billed during the period plus amounts paid for shipping and handling , less the actual returns , customer allowances , and customer discounts . allowance for doubtful account . we maintain an allowance for doubtful accounts to reflect our estimate of current and past due receivable balances that may not be collected . the allowance for doubtful accounts is based upon our assessment of the collectability of specific customer accounts , the aging of accounts receivable and our history of bad debts . we believe that the allowance for doubtful accounts is adequate to cover anticipated losses in the receivable balance under current conditions . however , significant deterioration in the financial condition of our customers , resulting in an impairment of their ability to make payments , could materially change these expectations and an additional allowance may be required . inventories . we value inventory at the lower of cost or market on an item-by-item basis and establish reserves equal to all or a portion of the related inventory to reflect situations in which the cost of the inventory is not expected to be recovered . this requires us to make estimates regarding the market value of our inventory , including an assessment for excess and obsolete inventory . story_separator_special_tag gross margin as a percentage of sales increased slightly from 30 % for the year ended june 30 , 2009 to 33 % for the year ended june 30 , 2010. the improvement in gross margin was primarily the result of a selling price increase that was implemented in january 2010 in both the direct and wholesale channels . this impact of the price increase was partially offset by more frequent consumer promotions offering โ free โ or significantly reduced shipping and handling , which accounts for the decrease in the other category revenue and gross profit . because product gross profit margins for all products in a given distribution channel are comparable , we analyze and manage our business based on changes in distribution channels and not by product mix . total operating expenses for the year ended june 30 , 2010 were 39 % of net sales , or $ 4,304,656 , compared to 40 % of sales , or $ 4,117,313 , for the year ended june 30 , 2009. operating expenses increased 5 % from fiscal 2009 to fiscal 2010. this increase in operating expenses was primarily the result of a 23 % increase in general and administrative expense which was primarily the result of higher personnel related costs . the increase in general and administrative expense was partially offset by a decrease in advertising and promotion expense of $ 182,358 , or a 21 % decrease . advertising and promotion expenses were reduced during fiscal 2010 as part of a plan to improve the targeting , timing and effectiveness of advertising spending . other income ( expense ) decreased from ( $ 2,586,234 ) to ( $ 409,695 ) in fiscal 2010. expense related to the issuance of the convertible note payable to acquire majority control of wes consulting , inc. during the first quarter of fiscal 2010 totaled $ 192,167. this item consists of the discounted face value of the $ 250,000 convertible note payable to hope capital , which is net of the value of the embedded derivative . interest expense and financing costs during fiscal 2010 decreased by 29 % from $ 314,719 in fiscal 2009 to $ 222,071 in fiscal 2010. the decrease was primarily the result of lower interest rates on lower average interest bearing debt balances . no expense or benefit from income taxes was recorded in the twelve months ended june 30 , 2010 or 2009. we do not expect any u.s. federal or state income taxes to be recorded for the current fiscal year because of available net operating loss carry-forwards . we had a net loss of $ 1,033,952 , or ( $ 0.02 ) per diluted share , for the twelve months ended june 30 , 2010 compared with a net loss of $ 3,587,103 , or $ ( 0.07 ) per diluted share , for the twelve months ended june 30 , 2009. story_separator_special_tag plan to reduce discretionary expense levels to be better in line with current revenue levels . furthermore , our plan of operation in the next twelve months continues a strategy for growth within our existing lines of business with an on-going focus on growing domestic sales . we estimate that the operational and strategic development plans we have identified will require approximately $ 2,300,000 of funding . we expect to invest approximately $ 500,000 for additional inventory of sexual wellness products and $ 1,800,000 on sales and marketing programs , primarily sexual wellness advertising in magazines and on cable television . we will also be exploring the opportunity to acquire other compatible businesses . 14 we plan to finance the required $ 2,300,000 with a combination of cash flow from operations as well as cash on hand and cash raised through equity and debt financings . if our business plans and cost estimates are inaccurate and our operations require additional cash or if we deviate from our current plans , we could be required to seek debt financing for particular projects or for ongoing operational needs . this indebtedness could harm our business if we are unable to obtain additional financing on reasonable terms . in addition , any indebtedness we incur in the future could subject us to restrictive covenants limiting our flexibility in planning for , or reacting to changes in , our business . if we do not comply with such covenants , our lenders could accelerate repayment of our debt or restrict our access to further borrowings , which in turn could restrict our operating flexibility and endanger our ability to continue operations . off-balance sheet arrangements as of june 30 , 2010 , we did not have any significant off-balance sheet debt nor did we have any transactions , arrangements , obligations ( including contingent obligations ) or other relationships with any unconsolidated entities or other persons that have or are reasonably likely to have a material current or future effect on our financial condition , changes in financial condition , results of operations , liquidity , capital expenditures , capital resources , or significant components of revenue or expenses material to investors . inflation during early fiscal 2009 , we experienced increases in various product raw material costs , transportation costs and the cost of petroleum based raw materials and packaging supplies used in our business , which were associated with higher oil and fuel costs . we currently believe petroleum related raw material and product cost pricing pressures have stabilized and will remain relatively constant throughout fiscal 2011 , although there is no assurance this will occur . we do not believe current inflation rates will have a material impact on our future operations or profitability . variability of results we have experienced significant quarterly fluctuations in operating results and anticipate that these fluctuations may continue in future periods . as described in previous paragraphs , operating results have fluctuated as a result of changes in sales levels to consumers and wholesalers ,
| liquidity and capital resources our primary sources of liquidity and capital resources are the availability of borrowings under our credit facility and through sales of debt and equity securities . the loss from operations decreased to $ 624,257 during fiscal 2010 as compared to a loss from operations of $ 1,000,869 in the prior fiscal year . at june 30 , 2010 , increases in accounts receivable , consisting primarily of amounts due from our wholesale customers , required $ 216,442 in cash during fiscal 2010 compared to requiring $ 16,710 in fiscal 2009. at june 30 , 2010 , increases in inventory required $ 208,448 in cash during fiscal 2010 compared to $ 552,400 of cash provided in fiscal 2009. the increase in inventory in fiscal 2010 was primarily related to increasing sales demand and management 's continued efforts to reduce delivery lead times to customers . 13 at june 30 , 2010 , decreases in accounts payable required $ 668,707 in cash during fiscal 2010 compared to providing $ 633,674 in cash during fiscal 2009. at june 30 , 2010 , increases in accrued payroll and related expenses provided $ 129,802 in cash compared to $ 16,916 in the prior fiscal year . the increase in accrued payroll and related expenses is primarily due to the timing of the pay day at the end of the fiscal year relative to the end of the pay period and the accrual of $ 76,838 in deferred compensation expense . operating activities required $ 1,661,640 of our cash flow in fiscal 2010. this compares with net cash provided by operating activities of $ 252,097 in fiscal 2009. cash used in investing activities in fiscal 2010 was $ 189,178 compared to $ 352,392 in fiscal 2009 and consisted of capital expenditures for machinery , equipment and software .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources our primary sources of liquidity and capital resources are the availability of borrowings under our credit facility and through sales of debt and equity securities . the loss from operations decreased to $ 624,257 during fiscal 2010 as compared to a loss from operations of $ 1,000,869 in the prior fiscal year . at june 30 , 2010 , increases in accounts receivable , consisting primarily of amounts due from our wholesale customers , required $ 216,442 in cash during fiscal 2010 compared to requiring $ 16,710 in fiscal 2009. at june 30 , 2010 , increases in inventory required $ 208,448 in cash during fiscal 2010 compared to $ 552,400 of cash provided in fiscal 2009. the increase in inventory in fiscal 2010 was primarily related to increasing sales demand and management 's continued efforts to reduce delivery lead times to customers . 13 at june 30 , 2010 , decreases in accounts payable required $ 668,707 in cash during fiscal 2010 compared to providing $ 633,674 in cash during fiscal 2009. at june 30 , 2010 , increases in accrued payroll and related expenses provided $ 129,802 in cash compared to $ 16,916 in the prior fiscal year . the increase in accrued payroll and related expenses is primarily due to the timing of the pay day at the end of the fiscal year relative to the end of the pay period and the accrual of $ 76,838 in deferred compensation expense . operating activities required $ 1,661,640 of our cash flow in fiscal 2010. this compares with net cash provided by operating activities of $ 252,097 in fiscal 2009. cash used in investing activities in fiscal 2010 was $ 189,178 compared to $ 352,392 in fiscal 2009 and consisted of capital expenditures for machinery , equipment and software .
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Suspicious Activity Report : 10 since we shipped our first products in 2002 , the company has evolved into a community of dedicated employees that create , develop , make , market , advertise , and promote products and ideas that allow couples to have a fuller sexual experience of themselves and each other . we are focused on building , developing and marketing our liberator brand of bedroom adventure gear products . since inception , we have spent over $ 8 million in print advertising , building awareness of the liberator brand primarily through magazine advertisements . we now intend to broaden our marketing reach by advertising on selected cable television and radio channels , and through expanded internet advertising . in addition to the liberator shapes , we also produce a line of casual foam-based furniture that we sell under the studio oneup โ jaxx โ brand . these products are produced as a by-product from the manufacturing of liberator products , as we re-purpose the scrap foam created from the cutting of the cushions . the studio oneup products are offered directly to consumers through our web site www.studiooneup.com , to e-merchants under drop-ship agreements where we ship directly to their customers , and to other resellers . we are currently housed in a 140,000 sq . ft. vertically integrated manufacturing facility on eight acres in a suburb of atlanta , georgia . since our first sale in may 2002 , we have grown to include 108 employees , with our products being sold directly to consumers and through hundreds of domestic resellers and on-line affiliates and six international resellers . the following information should be read together with the consolidated financial statements and notes thereto included elsewhere herein . critical accounting policies and estimates our consolidated financial statements included under item 8 in this report have been prepared in accordance with u.s. generally accepted accounting principles ( gaap ) . our significant accounting policies are described in the notes to our consolidated financial statements . the preparation of financial statements in accordance with gaap requires that we make estimates and assumptions that affect the amounts reported in our financial statements and their accompanying notes . we have identified certain policies that we believe are important to the portrayal of our financial condition and results of operations . these policies require the application of significant judgment by our management . we base our estimates on our historical experience , industry standards , and various other assumptions that we believe are reasonable under the circumstances . actual results could differ from these estimates under different assumptions or conditions . an adverse effect on our financial condition , changes in financial condition , and results of operations could occur if circumstances change that alter the various assumptions or conditions used in such estimates or assumptions . our critical accounting policies include those listed below . revenue recognition . to recognize revenue , four basic criteria must be met : 1 ) there is evidence that an arrangement exists ; 2 ) delivery has occurred ; 3 ) the fee is fixed or determinable ; and 4 ) collectability is reasonably assured . revenue from sales transactions where the buyer has the right to return the product is recognized at the time of sale only if ( 1 ) the seller 's price to the buyer is substantially fixed or determinable at the date of sale ; ( 2 ) the buyer has paid the seller , or the buyer is obligated to pay the seller and the obligation is not contingent on resale of the product ; ( 3 ) the buyer 's obligation to the seller would not be changed in the event of theft or physical destruction or damage of the product ; ( 4 ) the buyer acquiring the product for resale has economic substance apart from that provided by the seller ; ( 5 ) the seller does not have significant obligations for future performance to directly bring about resale of the product by the buyer ; and ( 6 ) the amount of future returns can be reasonably estimated . we recognize revenue upon determination that all criteria for revenue recognition have been met . the criteria are usually met at the time title passes to the customer , which usually occurs upon shipment . revenue from shipments where title passes upon delivery is deferred until the shipment has been delivered . net sales are comprised of the total product sales billed during the period plus amounts paid for shipping and handling , less the actual returns , customer allowances , and customer discounts . allowance for doubtful account . we maintain an allowance for doubtful accounts to reflect our estimate of current and past due receivable balances that may not be collected . the allowance for doubtful accounts is based upon our assessment of the collectability of specific customer accounts , the aging of accounts receivable and our history of bad debts . we believe that the allowance for doubtful accounts is adequate to cover anticipated losses in the receivable balance under current conditions . however , significant deterioration in the financial condition of our customers , resulting in an impairment of their ability to make payments , could materially change these expectations and an additional allowance may be required . inventories . we value inventory at the lower of cost or market on an item-by-item basis and establish reserves equal to all or a portion of the related inventory to reflect situations in which the cost of the inventory is not expected to be recovered . this requires us to make estimates regarding the market value of our inventory , including an assessment for excess and obsolete inventory . story_separator_special_tag gross margin as a percentage of sales increased slightly from 30 % for the year ended june 30 , 2009 to 33 % for the year ended june 30 , 2010. the improvement in gross margin was primarily the result of a selling price increase that was implemented in january 2010 in both the direct and wholesale channels . this impact of the price increase was partially offset by more frequent consumer promotions offering โ free โ or significantly reduced shipping and handling , which accounts for the decrease in the other category revenue and gross profit . because product gross profit margins for all products in a given distribution channel are comparable , we analyze and manage our business based on changes in distribution channels and not by product mix . total operating expenses for the year ended june 30 , 2010 were 39 % of net sales , or $ 4,304,656 , compared to 40 % of sales , or $ 4,117,313 , for the year ended june 30 , 2009. operating expenses increased 5 % from fiscal 2009 to fiscal 2010. this increase in operating expenses was primarily the result of a 23 % increase in general and administrative expense which was primarily the result of higher personnel related costs . the increase in general and administrative expense was partially offset by a decrease in advertising and promotion expense of $ 182,358 , or a 21 % decrease . advertising and promotion expenses were reduced during fiscal 2010 as part of a plan to improve the targeting , timing and effectiveness of advertising spending . other income ( expense ) decreased from ( $ 2,586,234 ) to ( $ 409,695 ) in fiscal 2010. expense related to the issuance of the convertible note payable to acquire majority control of wes consulting , inc. during the first quarter of fiscal 2010 totaled $ 192,167. this item consists of the discounted face value of the $ 250,000 convertible note payable to hope capital , which is net of the value of the embedded derivative . interest expense and financing costs during fiscal 2010 decreased by 29 % from $ 314,719 in fiscal 2009 to $ 222,071 in fiscal 2010. the decrease was primarily the result of lower interest rates on lower average interest bearing debt balances . no expense or benefit from income taxes was recorded in the twelve months ended june 30 , 2010 or 2009. we do not expect any u.s. federal or state income taxes to be recorded for the current fiscal year because of available net operating loss carry-forwards . we had a net loss of $ 1,033,952 , or ( $ 0.02 ) per diluted share , for the twelve months ended june 30 , 2010 compared with a net loss of $ 3,587,103 , or $ ( 0.07 ) per diluted share , for the twelve months ended june 30 , 2009. story_separator_special_tag plan to reduce discretionary expense levels to be better in line with current revenue levels . furthermore , our plan of operation in the next twelve months continues a strategy for growth within our existing lines of business with an on-going focus on growing domestic sales . we estimate that the operational and strategic development plans we have identified will require approximately $ 2,300,000 of funding . we expect to invest approximately $ 500,000 for additional inventory of sexual wellness products and $ 1,800,000 on sales and marketing programs , primarily sexual wellness advertising in magazines and on cable television . we will also be exploring the opportunity to acquire other compatible businesses . 14 we plan to finance the required $ 2,300,000 with a combination of cash flow from operations as well as cash on hand and cash raised through equity and debt financings . if our business plans and cost estimates are inaccurate and our operations require additional cash or if we deviate from our current plans , we could be required to seek debt financing for particular projects or for ongoing operational needs . this indebtedness could harm our business if we are unable to obtain additional financing on reasonable terms . in addition , any indebtedness we incur in the future could subject us to restrictive covenants limiting our flexibility in planning for , or reacting to changes in , our business . if we do not comply with such covenants , our lenders could accelerate repayment of our debt or restrict our access to further borrowings , which in turn could restrict our operating flexibility and endanger our ability to continue operations . off-balance sheet arrangements as of june 30 , 2010 , we did not have any significant off-balance sheet debt nor did we have any transactions , arrangements , obligations ( including contingent obligations ) or other relationships with any unconsolidated entities or other persons that have or are reasonably likely to have a material current or future effect on our financial condition , changes in financial condition , results of operations , liquidity , capital expenditures , capital resources , or significant components of revenue or expenses material to investors . inflation during early fiscal 2009 , we experienced increases in various product raw material costs , transportation costs and the cost of petroleum based raw materials and packaging supplies used in our business , which were associated with higher oil and fuel costs . we currently believe petroleum related raw material and product cost pricing pressures have stabilized and will remain relatively constant throughout fiscal 2011 , although there is no assurance this will occur . we do not believe current inflation rates will have a material impact on our future operations or profitability . variability of results we have experienced significant quarterly fluctuations in operating results and anticipate that these fluctuations may continue in future periods . as described in previous paragraphs , operating results have fluctuated as a result of changes in sales levels to consumers and wholesalers ,
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2,381 | additionally , the decrease in cost of sales as a percent of net sales in fiscal 2010 was due to sales of games at higher average selling prices as compared to fiscal 2009 , led by the fiscal 2010 first quarter release of ufc 2009 undisputed . our profitability is also affected by our operating expenses , which decreased by $ 196.6 million in fiscal 2010 , to $ 282.7 million from $ 479.3 million in fiscal 2009. the decrease was primarily due to a non-cash goodwill impairment charge of $ 118.8 million in fiscal 2009 and lower costs in fiscal 2010 due to our fiscal 2009 business realignment . our principal source of cash is from sales of interactive software games designed for play on video game consoles , handheld devices and pcs , including via the internet . our principal uses of cash are for product purchases of discs and cartridges along with associated manufacturer 's royalties , payments to external developers and licensors , the costs of internal software development , and selling and marketing expenses . 23 our cash , cash equivalents and short-term investments balance at march 31 , 2010 was $ 271.3 million , as compared to $ 140.7 million as of march 31 , 2009. cash provided by operations was $ 33.4 million in fiscal 2010 , as compared to cash used in operations of $ 194.2 million in fiscal 2009. the increase in cash provided was primarily the result of our lower fiscal 2010 net loss as compared to fiscal 2009 , adjusted for non-cash goodwill impairment and higher amortization of licenses and software development in fiscal 2009. additionally , in fiscal 2010 we had lower investments in software development and licenses as compared to fiscal 2009. executing on our strategy in fiscal 2010 in addition to achieving the financial targets we set for fiscal 2010 , we also made significant progress towards our strategic operating goals . core games the goals of our core games business unit are to develop a select number of high quality titles each year that are targeted at the core gamer , to build franchises through sequels and to extend our leadership in the fighting category . in fiscal 2010 , core games released red faction : guerrilla with an 85 metacritic rating and darksiders with an 83 metacritic rating . we also extended our leadership in the fighting games category . in may 2009 , we successfully launched our first games based on the ufc franchise , ufc undisputed 2009 , with an 84 metacritic rating and shipments of almost 4 million units in fiscal 2010. in december 2009 , we signed a direct eight-year license agreement with wwe and we plan to continue to publish games annually based on this leading sports entertainment brand . during fiscal 2010 , we shipped nearly 4 million units of wwe smackdown vs. raw 2010 , which achieved a metacritic rating of 81. in february 2010 , we announced a realignment of two of our development studios to focus solely on the creation of digital content and technology . we renamed them thq digital studios uk and thq digital studios phoenix . the three main objectives for our digital studios will be the creation of online-only games based on our core games brands , the development of new original digital intellectual properties and the delivery of supporting technology to connect consumers to all of our core games using proprietary technology . kids , family and casual games the goals of our kids , family and casual games business unit are to reinvigorate our kids product portfolio and improve profitability in our kids ' business and to build strong mass appeal/family game franchises . during fiscal 2010 , we signed multi-property , multi-year license agreements with dreamworks animation to publish games based on kung fu panda : the kaboom of doom , puss in boots and the penguins of madagascar . in fiscal 2010 , we shipped over one million units of our first games based on marvel super hero squad under our multi-year agreement . in addition , we have been taking aggressive actions to reduce the cost structure for our kids games by reducing our development spending and signing new license agreements at more attractive rates . with respect to mass appeal/family game franchises , we successfully launched the biggest loser in fiscal 2010. the biggest loser was the # 1 fitness game from an independent publisher in the u.s. during the december quarter and ranked in the top five fitness games in the u.s. for calendar 2009 , according to the npd group . we continued to build our drawn to life brand , with our fiscal 2010 title shipping more than one million units and total lifetime franchise shipments in excess of 3 million units . we also established a new original game , world of zoo , at nearly 800,000 units shipped . in fiscal 2010 , we signed a new multi-year , multi-property license agreement with sony pictures consumer products to publish games based on the popular game shows wheel of fortune and jeopardy ! . 24 online games the goal of our online games business unit is to embrace digital migration and extend our brands into online markets . during fiscal 2010 , we developed games to bring online in fiscal 2011 , including company of heroes online for korean and north american markets and a wwe online game for release initially in asian markets . story_separator_special_tag the realignment included the cancellation of several titles in development , the closure or spin-off of several of our development studios , and the streamlining of our corporate organization in order to support the new product strategy , including reductions in worldwide personnel . as a result of these initiatives , we recorded restructuring charges of $ 5.7 million in fiscal 2010 , and $ 12.3 million in fiscal 2009. we do not expect any future charges under the fiscal 2009 realignment , other than additional facility related charges in the event actual and estimated sublease income changes . for further information related to our restructuring charges , see `` note 9ยrestructuring `` in the notes to the consolidated financial statements included in item 8. interest and other income ( expense ) , net interest and other income ( expense ) , net consists of interest earned on our investments , gains and losses resulting from exchange rate changes for transactions denominated in currencies other than the functional currency , and interest expense and amortization of debt issuance costs on our $ 100.0 million 5.00 % convertible senior notes ( `` notes `` ) . for further discussion of the notes , see `` note 11ยconvertible senior notes `` in the notes to the consolidated financial statements included in item 8. interest and other income ( expense ) , net decreased by $ 2.5 million in fiscal 2010 , as compared to fiscal 2009. excluding the recognition of a $ 6.3 million other-than-temporary impairment loss on our investments in fiscal 2009 , interest and other income ( expense ) , net , decreased $ 8.8 million due to : lower average yields and investment balances , as compared to fiscal 2009 ; interest expense on our notes in fiscal 2010 ; and foreign currency transaction losses . there were no other-than-temporary impairment losses in fiscal 2010. income taxes income tax expense for fiscal 2010 was $ 0.2 million , which primarily represents foreign and u.s. state taxes offset by a $ 3.6 million valuation allowance release related to the recognition of a net operating loss benefit claimed pursuant to a change in tax law , compared to income tax expense of $ 46.2 million in fiscal 2009. the change in income taxes is primarily attributable to the recording of a valuation allowance for deferred tax assets in fiscal 2009 and income taxes incurred in foreign jurisdictions , which are not reduced by losses in the united states . the effective tax rate differs significantly from the federal statutory rate primarily due to losses in the united states that are fully offset by a valuation allowance to the extent that such losses were not subject to the new five year loss carry-back provisions . 30 noncontrolling interest the noncontrolling interest of $ 2.9 million in fiscal 2010 reflects the loss allocable to equity interests in thq * ice llc ( a joint venture with ice entertainment ) . the loss allocable to equity interests in thq * ice llc was $ 0.3 million in fiscal 2009. this noncontrolling interest reflects the loss allocable to equity interests that are not owned by thq . we sold our interest in thq * ice llc on april 30 , 2010 and thus after this date , we will not have income or loss attributable to noncontrolling interest . discontinued operations in december 2006 , we sold our 50 % interest in minick holding ag ( `` minick `` ) . as of december 31 , 2008 we received $ 20.6 million in cash from the sale of minick , and we recognized a gain of $ 2.1 million in the nine months ended december 31 , 2008. the gain is presented as `` gain on sale of discontinued operations , net of tax `` in our fiscal 2009 consolidated statement of operations . pursuant to the minick sale agreement , no additional consideration was outstanding as of june 30 , 2008. comparison of fiscal 2009 to fiscal 2008 our net loss from continuing operations for fiscal 2009 was $ 433.5 million , or $ 6.48 per diluted share , compared to a net loss from continuing operations of $ 36.9 million , or $ 0.55 per diluted share , for fiscal 2008. our net loss for fiscal 2009 was $ 431.1 million , or $ 6.45 per diluted share , and included a $ 2.1 million gain on sale of discontinued operations . net sales in fiscal 2009 and 2008 , net sales were $ 830.0 million and $ 1,030.5 million , respectively . net sales for fiscal 2009 were impacted by the deferral or recognition of revenue from the sale of titles with significant online functionality . the balance of deferred revenue related to these titles is included within accrued and other current liabilities in our consolidated balance sheets . we also defer certain costs related to these titles ; these costs are included within software development , and prepaid expenses and other current assets in our consolidated balance sheets . net sales decreased by $ 200.5 million in fiscal 2009 as compared to fiscal 2008 , from $ 1,030.5 million to $ 830.0 million . worldwide net sales in fiscal 2009 were primarily driven by sales of wwe smackdown vs. raw 2009 , saints row 2 , and walle . as more fully described below , the main factors that contributed to the decrease in our net sales were , i ) an overall softening in our kids business , ii ) decline in sales of our games based on the wwe license , and iii ) unfavorable changes in foreign currency translation rates . net sales by new releases and catalog titles the following table details our net sales by new releases ( titles initially released in the respective fiscal year ) and catalog titles ( titles released in fiscal years previous to the respective fiscal year ) for fiscal 2009
| cash flow from investing activities . cash used in investing activities increased by $ 129.3 million in fiscal 2010 , as compared to fiscal 2009. the increase in cash used was primarily due to the investment of the proceeds from the issuance of the notes in short-term securities and fewer sales and maturities of short-term securities . cash flow from financing activities . cash provided by financing activities increased by $ 52.5 million in fiscal 2010 , as compared to fiscal 2009. the increase in cash provided was due to proceeds from the 36 issuance of the notes on august 4 , 2009 , partially offset by net repayments under our secured credit lines in fiscal 2010 , as compared to net borrowings in fiscal 2009. borrowings under our secured credit lines relate to our auction rate securities ( `` ars '' ) ; see `` note 3ยinvestment securities '' for further information related to our ars and `` note 10ยsecured credit lines '' for further information on our secured credit lines , both in the notes to the consolidated financial statements included in item 8. effect of exchange rate changes on cash . changes in foreign currency translation rates increased our reported cash balance by $ 6.5 million . key balance sheet accounts total current assets at march 31 , 2010 were $ 562.5 million , up from $ 444.2 million at march 31 , 2009. in addition to cash , cash equivalents and short-term investments , our current assets consist primarily of : accounts receivable .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flow from investing activities . cash used in investing activities increased by $ 129.3 million in fiscal 2010 , as compared to fiscal 2009. the increase in cash used was primarily due to the investment of the proceeds from the issuance of the notes in short-term securities and fewer sales and maturities of short-term securities . cash flow from financing activities . cash provided by financing activities increased by $ 52.5 million in fiscal 2010 , as compared to fiscal 2009. the increase in cash provided was due to proceeds from the 36 issuance of the notes on august 4 , 2009 , partially offset by net repayments under our secured credit lines in fiscal 2010 , as compared to net borrowings in fiscal 2009. borrowings under our secured credit lines relate to our auction rate securities ( `` ars '' ) ; see `` note 3ยinvestment securities '' for further information related to our ars and `` note 10ยsecured credit lines '' for further information on our secured credit lines , both in the notes to the consolidated financial statements included in item 8. effect of exchange rate changes on cash . changes in foreign currency translation rates increased our reported cash balance by $ 6.5 million . key balance sheet accounts total current assets at march 31 , 2010 were $ 562.5 million , up from $ 444.2 million at march 31 , 2009. in addition to cash , cash equivalents and short-term investments , our current assets consist primarily of : accounts receivable .
```
Suspicious Activity Report : additionally , the decrease in cost of sales as a percent of net sales in fiscal 2010 was due to sales of games at higher average selling prices as compared to fiscal 2009 , led by the fiscal 2010 first quarter release of ufc 2009 undisputed . our profitability is also affected by our operating expenses , which decreased by $ 196.6 million in fiscal 2010 , to $ 282.7 million from $ 479.3 million in fiscal 2009. the decrease was primarily due to a non-cash goodwill impairment charge of $ 118.8 million in fiscal 2009 and lower costs in fiscal 2010 due to our fiscal 2009 business realignment . our principal source of cash is from sales of interactive software games designed for play on video game consoles , handheld devices and pcs , including via the internet . our principal uses of cash are for product purchases of discs and cartridges along with associated manufacturer 's royalties , payments to external developers and licensors , the costs of internal software development , and selling and marketing expenses . 23 our cash , cash equivalents and short-term investments balance at march 31 , 2010 was $ 271.3 million , as compared to $ 140.7 million as of march 31 , 2009. cash provided by operations was $ 33.4 million in fiscal 2010 , as compared to cash used in operations of $ 194.2 million in fiscal 2009. the increase in cash provided was primarily the result of our lower fiscal 2010 net loss as compared to fiscal 2009 , adjusted for non-cash goodwill impairment and higher amortization of licenses and software development in fiscal 2009. additionally , in fiscal 2010 we had lower investments in software development and licenses as compared to fiscal 2009. executing on our strategy in fiscal 2010 in addition to achieving the financial targets we set for fiscal 2010 , we also made significant progress towards our strategic operating goals . core games the goals of our core games business unit are to develop a select number of high quality titles each year that are targeted at the core gamer , to build franchises through sequels and to extend our leadership in the fighting category . in fiscal 2010 , core games released red faction : guerrilla with an 85 metacritic rating and darksiders with an 83 metacritic rating . we also extended our leadership in the fighting games category . in may 2009 , we successfully launched our first games based on the ufc franchise , ufc undisputed 2009 , with an 84 metacritic rating and shipments of almost 4 million units in fiscal 2010. in december 2009 , we signed a direct eight-year license agreement with wwe and we plan to continue to publish games annually based on this leading sports entertainment brand . during fiscal 2010 , we shipped nearly 4 million units of wwe smackdown vs. raw 2010 , which achieved a metacritic rating of 81. in february 2010 , we announced a realignment of two of our development studios to focus solely on the creation of digital content and technology . we renamed them thq digital studios uk and thq digital studios phoenix . the three main objectives for our digital studios will be the creation of online-only games based on our core games brands , the development of new original digital intellectual properties and the delivery of supporting technology to connect consumers to all of our core games using proprietary technology . kids , family and casual games the goals of our kids , family and casual games business unit are to reinvigorate our kids product portfolio and improve profitability in our kids ' business and to build strong mass appeal/family game franchises . during fiscal 2010 , we signed multi-property , multi-year license agreements with dreamworks animation to publish games based on kung fu panda : the kaboom of doom , puss in boots and the penguins of madagascar . in fiscal 2010 , we shipped over one million units of our first games based on marvel super hero squad under our multi-year agreement . in addition , we have been taking aggressive actions to reduce the cost structure for our kids games by reducing our development spending and signing new license agreements at more attractive rates . with respect to mass appeal/family game franchises , we successfully launched the biggest loser in fiscal 2010. the biggest loser was the # 1 fitness game from an independent publisher in the u.s. during the december quarter and ranked in the top five fitness games in the u.s. for calendar 2009 , according to the npd group . we continued to build our drawn to life brand , with our fiscal 2010 title shipping more than one million units and total lifetime franchise shipments in excess of 3 million units . we also established a new original game , world of zoo , at nearly 800,000 units shipped . in fiscal 2010 , we signed a new multi-year , multi-property license agreement with sony pictures consumer products to publish games based on the popular game shows wheel of fortune and jeopardy ! . 24 online games the goal of our online games business unit is to embrace digital migration and extend our brands into online markets . during fiscal 2010 , we developed games to bring online in fiscal 2011 , including company of heroes online for korean and north american markets and a wwe online game for release initially in asian markets . story_separator_special_tag the realignment included the cancellation of several titles in development , the closure or spin-off of several of our development studios , and the streamlining of our corporate organization in order to support the new product strategy , including reductions in worldwide personnel . as a result of these initiatives , we recorded restructuring charges of $ 5.7 million in fiscal 2010 , and $ 12.3 million in fiscal 2009. we do not expect any future charges under the fiscal 2009 realignment , other than additional facility related charges in the event actual and estimated sublease income changes . for further information related to our restructuring charges , see `` note 9ยrestructuring `` in the notes to the consolidated financial statements included in item 8. interest and other income ( expense ) , net interest and other income ( expense ) , net consists of interest earned on our investments , gains and losses resulting from exchange rate changes for transactions denominated in currencies other than the functional currency , and interest expense and amortization of debt issuance costs on our $ 100.0 million 5.00 % convertible senior notes ( `` notes `` ) . for further discussion of the notes , see `` note 11ยconvertible senior notes `` in the notes to the consolidated financial statements included in item 8. interest and other income ( expense ) , net decreased by $ 2.5 million in fiscal 2010 , as compared to fiscal 2009. excluding the recognition of a $ 6.3 million other-than-temporary impairment loss on our investments in fiscal 2009 , interest and other income ( expense ) , net , decreased $ 8.8 million due to : lower average yields and investment balances , as compared to fiscal 2009 ; interest expense on our notes in fiscal 2010 ; and foreign currency transaction losses . there were no other-than-temporary impairment losses in fiscal 2010. income taxes income tax expense for fiscal 2010 was $ 0.2 million , which primarily represents foreign and u.s. state taxes offset by a $ 3.6 million valuation allowance release related to the recognition of a net operating loss benefit claimed pursuant to a change in tax law , compared to income tax expense of $ 46.2 million in fiscal 2009. the change in income taxes is primarily attributable to the recording of a valuation allowance for deferred tax assets in fiscal 2009 and income taxes incurred in foreign jurisdictions , which are not reduced by losses in the united states . the effective tax rate differs significantly from the federal statutory rate primarily due to losses in the united states that are fully offset by a valuation allowance to the extent that such losses were not subject to the new five year loss carry-back provisions . 30 noncontrolling interest the noncontrolling interest of $ 2.9 million in fiscal 2010 reflects the loss allocable to equity interests in thq * ice llc ( a joint venture with ice entertainment ) . the loss allocable to equity interests in thq * ice llc was $ 0.3 million in fiscal 2009. this noncontrolling interest reflects the loss allocable to equity interests that are not owned by thq . we sold our interest in thq * ice llc on april 30 , 2010 and thus after this date , we will not have income or loss attributable to noncontrolling interest . discontinued operations in december 2006 , we sold our 50 % interest in minick holding ag ( `` minick `` ) . as of december 31 , 2008 we received $ 20.6 million in cash from the sale of minick , and we recognized a gain of $ 2.1 million in the nine months ended december 31 , 2008. the gain is presented as `` gain on sale of discontinued operations , net of tax `` in our fiscal 2009 consolidated statement of operations . pursuant to the minick sale agreement , no additional consideration was outstanding as of june 30 , 2008. comparison of fiscal 2009 to fiscal 2008 our net loss from continuing operations for fiscal 2009 was $ 433.5 million , or $ 6.48 per diluted share , compared to a net loss from continuing operations of $ 36.9 million , or $ 0.55 per diluted share , for fiscal 2008. our net loss for fiscal 2009 was $ 431.1 million , or $ 6.45 per diluted share , and included a $ 2.1 million gain on sale of discontinued operations . net sales in fiscal 2009 and 2008 , net sales were $ 830.0 million and $ 1,030.5 million , respectively . net sales for fiscal 2009 were impacted by the deferral or recognition of revenue from the sale of titles with significant online functionality . the balance of deferred revenue related to these titles is included within accrued and other current liabilities in our consolidated balance sheets . we also defer certain costs related to these titles ; these costs are included within software development , and prepaid expenses and other current assets in our consolidated balance sheets . net sales decreased by $ 200.5 million in fiscal 2009 as compared to fiscal 2008 , from $ 1,030.5 million to $ 830.0 million . worldwide net sales in fiscal 2009 were primarily driven by sales of wwe smackdown vs. raw 2009 , saints row 2 , and walle . as more fully described below , the main factors that contributed to the decrease in our net sales were , i ) an overall softening in our kids business , ii ) decline in sales of our games based on the wwe license , and iii ) unfavorable changes in foreign currency translation rates . net sales by new releases and catalog titles the following table details our net sales by new releases ( titles initially released in the respective fiscal year ) and catalog titles ( titles released in fiscal years previous to the respective fiscal year ) for fiscal 2009
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2,382 | we presented interim data from the prs-060/azd1402 phase 1 mad study at the european respiratory society international congress in october 2019 and reported that prs-060/azd1402 was safe and well tolerated at all doses , led to a statistically significant reduction in feno , a validated biomarker for eosinophilic airway inflammation , and showed dose-dependent systemic target engagement in patients with mild asthma and elevated levels of feno ( โฅ 35ppb ) . in that study , during the treatment period , 30 patients were randomized to receive delivered doses of prs-060/azd1402 ranging from 2 mg to 60 mg ( 5 mg to 150 mg administered through a nebulizer ( nominal dose ) ) twice daily for nine consecutive days and one final dose on the 10th day , and 12 patients were randomized to receive placebo at the same intervals . statistically significant and pronounced inhibition of feno relative to placebo was observed at all doses . when comparing the 20 mg prs-060/azd1402 powered cohort ( n=12 ) to placebo , the primary statistical analysis using the emax model demonstrated a 36 % relative reduction in feno ( p-value < 0.0001 ) . systemic target engagement was dose-dependent and closely aligned with systemic exposure of the drug , consistent with results of the phase 1 sad study . no systemic target engagement and minimal systemic exposure was observed at the 2 mg dose , suggesting that local target engagement by the drug may be sufficient to reduce airway inflammation , as evidenced by feno reduction at that 2 mg dose level . in order to further investigate the safety and efficacy profile of prs-060/azd1402 , the phase 1 mad study recruited additional cohorts in 2020. the study has now completed , and we are currently planning to disclose data from these additional cohorts in 2021. in addition to ukrainian regulatory approval , astrazeneca has also recently received ethics approval and regulatory acknowledgement for the phase 2a study of prs-060/azd1402 in australia patient screening has begun following a covid-19-related inventory challenge that has been successfully managed . we expect the first patient to be dosed in the second quarter of 2021. the phase 2a study is a two-part , multi-center , placebo-controlled clinical study of prs-060/azd1402 that will evaluate prs-060/azd1402 at up to three dose levels using a dry powder formulation administered twice daily . the first part of the study will assess the safety and pharmacokinetics of the dry powder formulation in approximately 45 moderate controlled asthmatics . the second part of the study will assess the efficacy , safety and pharmacokinetics of prs-060/azd1402 in approximately 360 moderate uncontrolled asthmatics with blood eosinophil count of โฅ 150 cells/ฮผl and feno โฅ 25 ppb at screening over four weeks with fev1 improvement as the primary endpoint . this study of prs-060/azd1402 , which is being developed for the treatment of moderate-to-severe asthma , is being sponsored , funded and delivered by astrazeneca . upon completion of that study , pieris will have the options to co-develop and , subsequently , co-commercialize prs-060/azd1402 in the united states . our additional respiratory programs within and outside of the astrazeneca alliance are in the discovery stage . astrazeneca has taken full advantage of all available potential new project starts envisioned in the alliance and all four respiratory programs are ongoing . we retain co-development and co-commercialization rights to two out of the four programs beyond prs-060/azd1402 . outside of the astrazeneca collaboration , pieris continues to advance several proprietary respiratory programs , which are in the discovery stage . we presented additional interim data from the phase 1 monotherapy study and atezolizumab combination study of cinrebafusp alfa in an oral presentation session at the esmo virtual congress in september 2020. as of the july 2020 cutoff date , 74 patients had been enrolled in the monotherapy study , including 21 additional patients enrolled in the active dose cohorts ( โฅ2.5 mg/kg ) since the data were presented at the society for immunotherapy of cancer 2019 annual meeting , and 41 patients had been enrolled in the atezolizumab combination therapy study . in the monotherapy study , out of 33 response-evaluable patients at the time of the data cutoff of july 27 , 2020 , according to recist 1.1 , one patient with stage 4 rectal adenocarcinoma achieved a confirmed complete response at the 18 mg/kg q2w dose ( cohort 13b ) , three patients achieved a partial response at the 8 mg/kg q2w dose ( cohort 11b ) , and stable 93 disease was observed in 13 patients as best response out of 33 evaluable patients across the predicted active dose ranges ( cohorts 9-13b ) , translating to an orr of 12 % and a dcr of 52 % . additionally , a significant expansion of cd8+ t cells in the tumor microenvironment of responders and a substantial increase of peripheral soluble 4-1bb were observed in the active dose cohorts , suggesting 4-1bb-mediated target engagement . cinrebafusp alfa also showed an acceptable safety profile at all doses and schedules tested in each clinical study . in the atezolizumab combination trial , seven dose cohorts have been evaluated at a q3w dosing schedule ranging from 0.05 mg/kg to 8 mg/kg in combination with a fixed 1200 mg dose of atezolizumab . in that trial , under recist 1.1 , four patients achieved a confirmed partial response at active dose levels . we plan to advance cinrebafusp alfa into a phase 2 study for the treatment of her2-positive gastric cancer in combination with ramucirumab and paclitaxel in 2021. in july 2020 , we announced that our phase 1 studies of cinrebafusp alfa were placed on partial clinical hold by the fda while we conducted an additional in-use stability and compatibility study requested by the fda . treatment of currently-enrolled patients continued , although no new patients were enrolled pending resolution of the partial hold . story_separator_special_tag we evaluate all promised goods and services within a customer contract and determines which of such goods and services are separate performance obligations . this evaluation includes an assessment of whether the good or service is capable of being distinct and whether the good or service is separable from other promises in the contract . in assessing whether promised goods or services are distinct , we consider factors such as the stage of development of the underlying intellectual property and the capabilities of the customer to develop the intellectual property on their own or whether the required expertise is readily available . licensing arrangements are analyzed to determine whether the promised goods or services , which often include licenses , research and development services and governance committee services , are distinct or whether they must be accounted for as part of a combined performance obligation . if the license is considered not to be distinct , the license would then be combined with other promised goods or services as a combined performance obligation . if we are involved in a governance committee , 99 we assess whether our involvement constitutes a separate performance obligation . when governance committee services are determined to be separate performance obligations , we determine the fair value to be allocated to this promised service . certain contracts contain optional and additional items , which are considered marketing offers and are accounted for as separate contracts with the customer if such option is elected by the customer , unless the option provides a material right which would not be provided without entering into the contract . an option that is considered a material right is accounted for as a separate performance obligation . the transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods and services to the customer . a contract may contain variable consideration , including potential payments for both milestone and research and development services . for certain potential milestone payments , we estimate the amount of variable consideration by using the most likely amount method . in making this assessment , we evaluate factors such as the clinical , regulatory , commercial and other risks that must be overcome to achieve the milestone . each reporting period we re-evaluate the probability of achievement of such variable consideration and any related constraints . we will include variable consideration , without constraint , in the transaction price to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved . for potential research and development service payments , we estimate the amount of variable consideration by using the expected value method , including any approved budget updates arising from additional research or development services . if the contract contains a single performance obligation , the entire transaction price is allocated to the single performance obligation . contracts that contain multiple performance obligations require an allocation of the transaction price among the performance obligations on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation . we allocate the transaction price based on the estimated standalone selling price of the underlying performance obligations or in the case of certain variable consideration to one or more performance obligations . we must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract . we utilize key assumptions to determine the stand-alone selling price , which may include other comparable transactions , pricing considered in negotiating the transaction and the estimated costs to complete the respective performance obligation . certain variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated to each performance obligation are consistent with the amount we would expect to receive for each performance obligation . when a performance obligation is satisfied , revenue is recognized for the amount of the transaction price , excluding estimates of variable consideration that are constrained , that is allocated to that performance obligation on a relative standalone selling price basis . significant management judgment is required in determining the level of effort required under an arrangement and the period over which we are expected to complete its performance obligations under an arrangement . for performance obligations consisting of licenses and other promises , we utilize judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and , if over time , the appropriate method of measuring progress for purposes of recognizing revenue from non- refundable , up-front fees . we evaluate the measure of progress each reporting period and , if necessary , adjusts the measure of performance and related revenue recognition . if the license to our intellectual property is determined to be distinct from the other performance obligations identified in the arrangement , we will recognize revenue from non-refundable , up-front fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license . milestones and royalties we aggregate milestones into four categories : ( i ) research milestones , ( ii ) development milestones , ( iii ) commercial milestones , and ( iv ) sales milestones . research milestones are typically achieved upon reaching certain success criteria as defined in each agreement related to developing an anticalin protein against the specified target . development milestones are typically reached when a compound reaches a defined phase of clinical research or passes such phase or upon
| liquidity and capital resources we are subject to risks common to companies in the biotechnology industry , including but not limited to , the need for additional capital , risks of failure of preclinical studies and clinical trials , the need to obtain marketing approval and reimbursement for any drug product candidate that we may identify and develop , the need to successfully commercialize and gain market acceptance of our product candidates , dependence on key personnel , protection of proprietary technology , compliance with government regulations , development of technological innovations by competitors , reliance on third party manufacturers and the ability to transition from pilot-scale production to large-scale manufacturing of products . through december 31 , 2020 , we have funded our operations with $ 451.4 million of cash that has been obtained from the following main sources : $ 212.9 million from sales of equity ; $ 217.8 million in total payments received under license and collaboration agreements , including $ 45.2 million for research and development services costs received from our collaboration partners ; $ 14.2 million from government grants and $ 6.5 million from loans . as of december 31 , 2020 , we had a total of $ 70.4 million in cash , cash equivalents and investments . we have incurred losses in every period since inception including the years ended december 31 , 2020 and 2019 , respectively , and have a total accumulated deficit of $ 211.4 million as of december 31 , 2020. net losses and negative cash flows have had , and will continue to have , an adverse effect on our stockholders ' equity and working capital . we expect to continue to incur operating losses for at least the next several years . the following table provides a summary of operating , investing , and financing cash flows for the years ended december 31 , 2020 and 2019 respectively ( in thousands ) : replace_table_token_3_th net cash used in operating activities for the year ended december 31 , 2020 and 2019 was $ 45.9 million and $ 52.5 million , respectively .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources we are subject to risks common to companies in the biotechnology industry , including but not limited to , the need for additional capital , risks of failure of preclinical studies and clinical trials , the need to obtain marketing approval and reimbursement for any drug product candidate that we may identify and develop , the need to successfully commercialize and gain market acceptance of our product candidates , dependence on key personnel , protection of proprietary technology , compliance with government regulations , development of technological innovations by competitors , reliance on third party manufacturers and the ability to transition from pilot-scale production to large-scale manufacturing of products . through december 31 , 2020 , we have funded our operations with $ 451.4 million of cash that has been obtained from the following main sources : $ 212.9 million from sales of equity ; $ 217.8 million in total payments received under license and collaboration agreements , including $ 45.2 million for research and development services costs received from our collaboration partners ; $ 14.2 million from government grants and $ 6.5 million from loans . as of december 31 , 2020 , we had a total of $ 70.4 million in cash , cash equivalents and investments . we have incurred losses in every period since inception including the years ended december 31 , 2020 and 2019 , respectively , and have a total accumulated deficit of $ 211.4 million as of december 31 , 2020. net losses and negative cash flows have had , and will continue to have , an adverse effect on our stockholders ' equity and working capital . we expect to continue to incur operating losses for at least the next several years . the following table provides a summary of operating , investing , and financing cash flows for the years ended december 31 , 2020 and 2019 respectively ( in thousands ) : replace_table_token_3_th net cash used in operating activities for the year ended december 31 , 2020 and 2019 was $ 45.9 million and $ 52.5 million , respectively .
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Suspicious Activity Report : we presented interim data from the prs-060/azd1402 phase 1 mad study at the european respiratory society international congress in october 2019 and reported that prs-060/azd1402 was safe and well tolerated at all doses , led to a statistically significant reduction in feno , a validated biomarker for eosinophilic airway inflammation , and showed dose-dependent systemic target engagement in patients with mild asthma and elevated levels of feno ( โฅ 35ppb ) . in that study , during the treatment period , 30 patients were randomized to receive delivered doses of prs-060/azd1402 ranging from 2 mg to 60 mg ( 5 mg to 150 mg administered through a nebulizer ( nominal dose ) ) twice daily for nine consecutive days and one final dose on the 10th day , and 12 patients were randomized to receive placebo at the same intervals . statistically significant and pronounced inhibition of feno relative to placebo was observed at all doses . when comparing the 20 mg prs-060/azd1402 powered cohort ( n=12 ) to placebo , the primary statistical analysis using the emax model demonstrated a 36 % relative reduction in feno ( p-value < 0.0001 ) . systemic target engagement was dose-dependent and closely aligned with systemic exposure of the drug , consistent with results of the phase 1 sad study . no systemic target engagement and minimal systemic exposure was observed at the 2 mg dose , suggesting that local target engagement by the drug may be sufficient to reduce airway inflammation , as evidenced by feno reduction at that 2 mg dose level . in order to further investigate the safety and efficacy profile of prs-060/azd1402 , the phase 1 mad study recruited additional cohorts in 2020. the study has now completed , and we are currently planning to disclose data from these additional cohorts in 2021. in addition to ukrainian regulatory approval , astrazeneca has also recently received ethics approval and regulatory acknowledgement for the phase 2a study of prs-060/azd1402 in australia patient screening has begun following a covid-19-related inventory challenge that has been successfully managed . we expect the first patient to be dosed in the second quarter of 2021. the phase 2a study is a two-part , multi-center , placebo-controlled clinical study of prs-060/azd1402 that will evaluate prs-060/azd1402 at up to three dose levels using a dry powder formulation administered twice daily . the first part of the study will assess the safety and pharmacokinetics of the dry powder formulation in approximately 45 moderate controlled asthmatics . the second part of the study will assess the efficacy , safety and pharmacokinetics of prs-060/azd1402 in approximately 360 moderate uncontrolled asthmatics with blood eosinophil count of โฅ 150 cells/ฮผl and feno โฅ 25 ppb at screening over four weeks with fev1 improvement as the primary endpoint . this study of prs-060/azd1402 , which is being developed for the treatment of moderate-to-severe asthma , is being sponsored , funded and delivered by astrazeneca . upon completion of that study , pieris will have the options to co-develop and , subsequently , co-commercialize prs-060/azd1402 in the united states . our additional respiratory programs within and outside of the astrazeneca alliance are in the discovery stage . astrazeneca has taken full advantage of all available potential new project starts envisioned in the alliance and all four respiratory programs are ongoing . we retain co-development and co-commercialization rights to two out of the four programs beyond prs-060/azd1402 . outside of the astrazeneca collaboration , pieris continues to advance several proprietary respiratory programs , which are in the discovery stage . we presented additional interim data from the phase 1 monotherapy study and atezolizumab combination study of cinrebafusp alfa in an oral presentation session at the esmo virtual congress in september 2020. as of the july 2020 cutoff date , 74 patients had been enrolled in the monotherapy study , including 21 additional patients enrolled in the active dose cohorts ( โฅ2.5 mg/kg ) since the data were presented at the society for immunotherapy of cancer 2019 annual meeting , and 41 patients had been enrolled in the atezolizumab combination therapy study . in the monotherapy study , out of 33 response-evaluable patients at the time of the data cutoff of july 27 , 2020 , according to recist 1.1 , one patient with stage 4 rectal adenocarcinoma achieved a confirmed complete response at the 18 mg/kg q2w dose ( cohort 13b ) , three patients achieved a partial response at the 8 mg/kg q2w dose ( cohort 11b ) , and stable 93 disease was observed in 13 patients as best response out of 33 evaluable patients across the predicted active dose ranges ( cohorts 9-13b ) , translating to an orr of 12 % and a dcr of 52 % . additionally , a significant expansion of cd8+ t cells in the tumor microenvironment of responders and a substantial increase of peripheral soluble 4-1bb were observed in the active dose cohorts , suggesting 4-1bb-mediated target engagement . cinrebafusp alfa also showed an acceptable safety profile at all doses and schedules tested in each clinical study . in the atezolizumab combination trial , seven dose cohorts have been evaluated at a q3w dosing schedule ranging from 0.05 mg/kg to 8 mg/kg in combination with a fixed 1200 mg dose of atezolizumab . in that trial , under recist 1.1 , four patients achieved a confirmed partial response at active dose levels . we plan to advance cinrebafusp alfa into a phase 2 study for the treatment of her2-positive gastric cancer in combination with ramucirumab and paclitaxel in 2021. in july 2020 , we announced that our phase 1 studies of cinrebafusp alfa were placed on partial clinical hold by the fda while we conducted an additional in-use stability and compatibility study requested by the fda . treatment of currently-enrolled patients continued , although no new patients were enrolled pending resolution of the partial hold . story_separator_special_tag we evaluate all promised goods and services within a customer contract and determines which of such goods and services are separate performance obligations . this evaluation includes an assessment of whether the good or service is capable of being distinct and whether the good or service is separable from other promises in the contract . in assessing whether promised goods or services are distinct , we consider factors such as the stage of development of the underlying intellectual property and the capabilities of the customer to develop the intellectual property on their own or whether the required expertise is readily available . licensing arrangements are analyzed to determine whether the promised goods or services , which often include licenses , research and development services and governance committee services , are distinct or whether they must be accounted for as part of a combined performance obligation . if the license is considered not to be distinct , the license would then be combined with other promised goods or services as a combined performance obligation . if we are involved in a governance committee , 99 we assess whether our involvement constitutes a separate performance obligation . when governance committee services are determined to be separate performance obligations , we determine the fair value to be allocated to this promised service . certain contracts contain optional and additional items , which are considered marketing offers and are accounted for as separate contracts with the customer if such option is elected by the customer , unless the option provides a material right which would not be provided without entering into the contract . an option that is considered a material right is accounted for as a separate performance obligation . the transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods and services to the customer . a contract may contain variable consideration , including potential payments for both milestone and research and development services . for certain potential milestone payments , we estimate the amount of variable consideration by using the most likely amount method . in making this assessment , we evaluate factors such as the clinical , regulatory , commercial and other risks that must be overcome to achieve the milestone . each reporting period we re-evaluate the probability of achievement of such variable consideration and any related constraints . we will include variable consideration , without constraint , in the transaction price to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved . for potential research and development service payments , we estimate the amount of variable consideration by using the expected value method , including any approved budget updates arising from additional research or development services . if the contract contains a single performance obligation , the entire transaction price is allocated to the single performance obligation . contracts that contain multiple performance obligations require an allocation of the transaction price among the performance obligations on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation . we allocate the transaction price based on the estimated standalone selling price of the underlying performance obligations or in the case of certain variable consideration to one or more performance obligations . we must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract . we utilize key assumptions to determine the stand-alone selling price , which may include other comparable transactions , pricing considered in negotiating the transaction and the estimated costs to complete the respective performance obligation . certain variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated to each performance obligation are consistent with the amount we would expect to receive for each performance obligation . when a performance obligation is satisfied , revenue is recognized for the amount of the transaction price , excluding estimates of variable consideration that are constrained , that is allocated to that performance obligation on a relative standalone selling price basis . significant management judgment is required in determining the level of effort required under an arrangement and the period over which we are expected to complete its performance obligations under an arrangement . for performance obligations consisting of licenses and other promises , we utilize judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and , if over time , the appropriate method of measuring progress for purposes of recognizing revenue from non- refundable , up-front fees . we evaluate the measure of progress each reporting period and , if necessary , adjusts the measure of performance and related revenue recognition . if the license to our intellectual property is determined to be distinct from the other performance obligations identified in the arrangement , we will recognize revenue from non-refundable , up-front fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license . milestones and royalties we aggregate milestones into four categories : ( i ) research milestones , ( ii ) development milestones , ( iii ) commercial milestones , and ( iv ) sales milestones . research milestones are typically achieved upon reaching certain success criteria as defined in each agreement related to developing an anticalin protein against the specified target . development milestones are typically reached when a compound reaches a defined phase of clinical research or passes such phase or upon
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2,383 | the corporation 's net interest margin increased in 2019 to 3.53 % , from 3.46 % in 2018. loan yields increased as a result of four federal reserve rate increases in 2018 , lifting the yields on the corporation 's variable rate loans . even though the federal reserve cut rates three times in the last half of 2019 , the pickup in yield throughout the first part of the year served to increase loan yield for the year . this coupled with volume growth in the loan portfolio , increased loan interest income by $ 5.4 million , or 19.1 % . the corporation 's non-interest income increased by $ 269,000 , or 2.4 % , from 2018 to 2019. earnings on bank owned life insurance declined by $ 907,000 , or 55.4 % in 2019 compared to the prior year due to a death benefit of $ 913,000 recorded in 2018. gains on securities transactions were $ 499,000 in 2019 , compared to losses of $ 291,000 in 2018 , an increase in income of $ 790,000. gains on the sale of mortgages increased by $ 334,000 , or 20.8 % in 2019 compared to 2018 due to a high volume of mortgage originations stemming from the low interest rate environment . the financial services industry uses two primary performance measurements to gauge performance : return on average assets ( roa ) and return on average equity ( roe ) . roa measures how efficiently a bank generates income 32 enb financial corp management 's discussion and analysis based on the amount of assets or size of a company . roe measures the efficiency of a company in generating income based on the amount of equity or capital utilized . the latter measurement typically receives more attention from shareholders . the corporation 's 2019 roa was 1.01 % , compared to 0.93 % in 2018. roe increased from 9.94 % in 2018 to 10.36 % in 2019. the increase in roa and roe was primarily due to higher income in 2019 compared to 2018. the below table highlights the corporation 's key performance ratios for the years ended december 31 , 2019 , 2018 , and 2017. key performance ratios replace_table_token_7_th the results of the corporation 's operations are best explained by addressing in further detail the five major sections of the income statement , which are as follows : ยท net interest income ยท provision for loan losses ยท other income ยท operating expenses ยท income taxes the following discussion analyzes each of these five components . net interest income net interest income ( nii ) represents the largest portion of the corporation 's operating income . in 2019 , nii generated 76.4 % of the corporation 's gross revenue stream , compared to 75.0 % in 2018 , and 74.5 % in 2017. since nii comprises a significant portion of the operating income , the direction and rate of increase or decrease will often indicate the overall performance of the corporation . the following table shows a summary analysis of nii on a fully taxable equivalent ( fte ) basis . for analytical purposes and throughout this discussion , yields , rates , and measurements such as nii , net interest spread , and net yield on interest earning assets , are presented on an fte basis . this differs from the nii reflected on the corporation 's consolidated statements of income , where the nii is simply the interest earned on loans and securities less the interest paid on deposits and borrowings . by calculating the nii on an fte basis , the added benefit of having tax-free loans and securities is factored in to more accurately represent what the corporation earns through the nii . the fte adjustment shows the benefit these tax free loans and securities bring in a dollar amount because the corporation does not pay tax on the income they generate . as a result , the fte nii shown in both tables below will exceed the nii reported on the consolidated statements of income . the amount of fte adjustment totaled $ 749,000 for 2019 , $ 879,000 for 2018 , and $ 2,341,000 for 2017. the significant decline in fte adjustment in 2018 and 2019 was primarily due to the corporate tax rate change implemented at the end of 2017 as well as lower levels of tax-free income . 33 enb financial corp management 's discussion and analysis net interest income ( dollars in thousands ) replace_table_token_8_th nii is the difference between interest income earned on assets and interest expense incurred on liabilities . accordingly , two factors affect nii : ยท the rates charged on interest earning assets and paid on interest bearing liabilities ยท the average balance of interest earning assets and interest bearing liabilities the federal funds rate , the prime rate , the shape of the u.s. treasury curve , and other wholesale funding curves , all affect nii . the federal reserve controls the federal funds rate , which is one of a number of tools available to the federal reserve to conduct monetary policy . the federal funds rate , and guidance on when the rate might be changed , is often the focal point of discussion regarding the direction of interest rates . during 2019 , the federal funds rate was decreased three times between july and october taking the rate to 1.75 % by december 31 , 2019. with the recent declines in the federal funds rate , the u.s. treasury yield curve became flatter . a flat yield curve generally signals the end of a period of economic expansion and the beginning of a recession . story_separator_special_tag typically , the corporation sees increases in time deposits during periods when consumers are not confident in the stock market and economic conditions deteriorate . during these periods , there is a โ flight to safety โ to federally insured deposits . this trend occurred in past years , but time deposit balances declined throughout 2017 , 2018 , and 2019. as the rate between time deposits and core deposits narrowed , many customers chose to transfer funds from maturing time deposits into checking and savings accounts . since the financial crisis , depositors have been more concerned about the financial health of their financial institution . this concern affects their desire to obtain the best possible market interest rates . this trend benefits the corporation due to its high capital levels and track record of strong and stable earnings . the corporation 's bauer financial rating of 5 , the highest level of their rating scale , has assisted the bank in gaining core deposits over the past several years . the corporation 's average rate on borrowed funds increased by 24 basis points from 2018 to 2019 , as refinancing of several long-term borrowings maturing in 2019 was completed at higher market interest rates . throughout 2019 , the new fixed borrowing rates were higher than the average rate paid on the corporation 's existing borrowings . 39 enb financial corp management 's discussion and analysis provision for loan losses the allowance for loan losses provides for losses inherent in the loan portfolio as determined by a quarterly analysis and calculation of various factors related to the loan portfolio . the amount of the provision reflects the adjustment that management determines is necessary to ensure that the allowance for loan losses is adequate to cover any losses inherent in the loan portfolio . the corporation gives special attention to the level of underperforming loans when calculating the necessary provision for loan losses . the analysis of the loan loss allowance takes into consideration , among other things , the following factors : ยท levels and trends in delinquencies , non-accruals , and charge-offs , ยท levels of classified loans , ยท trends within the loan portfolio , ยท changes in lending policies and procedures , ยท experience of lending personnel and management oversight , ยท national and local economic trends , ยท concentrations of credit , ยท external factors such as legal and regulatory requirements , ยท changes in the quality of loan review and board oversight , and ยท changes in the value of underlying collateral . a provision expense of $ 770,000 was recorded in 2019 , compared to $ 660,000 in 2018 , and $ 940,000 in 2017. the provision expense in 2019 was primarily due to higher levels of delinquencies , classified loans , and charge-offs during the year as well as organic loan portfolio growth . as of december 31 , 2019 , total delinquencies represented 0.91 % of total loans , compared to 0.46 % as of december 31 , 2018. these ratios are extremely low compared to local and national peer groups but delinquencies did increase throughout 2019. the vast majority of the corporation 's loan customers have remained very steadfast in making their loan payments and avoiding delinquency , even during challenging economic conditions . the delinquency ratios speak to the long-term health , conservative nature , and , importantly , the character of the corporation 's customers and lending practices . classified loans are primarily determined by loan-to-value and debt-to-income ratios . the level of classified loans has increased from december 31 , 2018 to december 31 , 2019 , from 13.7 % of regulatory capital to 18.9 % of regulatory capital . the delinquency and classified loan information is utilized in the quarterly alll calculation , which directly affects the provision expense . a sharp increase or decrease in delinquencies and or classified loans during the year would be cause for management to increase or decrease the provision expense . the allowance as a percentage of loans remained stable at 1.25 % at both december 31 , 2019 and december 31 , 2018. it is anticipated that the corporation will record a provision expense again in 2020 based on projected loan growth and projected delinquencies and levels of classified loans . management also continues to provide for estimated losses on pools of similar loans based on historical loss experience . management employs qualitative factors every quarter in addition to historical loss experience to take into consideration the current trends in loan volume , concentrations of credit , delinquencies , changes in lending practices , and the quality of the corporation 's underwriting , credit analysis , lending staff , and board oversight . national and local economic trends and conditions are also considered when calculating an appropriate loan loss allowance for each loan pool . qualitative factors only increased for the business loans and residential real estate pools in 2019 as a result of higher levels of historical delinquencies and charge-offs . factors for six of the remaining loan pools were decreased during 2019 and one factor remained the same . management continues to evaluate the allowance for loan losses in relation to the growth or decline of the loan portfolio and its associated credit risk , and believes the provision and the allowance for loan losses are adequate to provide for future loan losses . for further discussion of the calculation , see the โ allowance for loan losses โ section . other income other income for 2019 was $ 11,306,000 , an increase of $ 269,000 , or 2.4 % , compared to the $ 11,037,000 earned in 2018. the following table details the categories that comprise other income . 40 enb financial corp management 's discussion and analysis other income ( dollars in thousands ) replace_table_token_11_th trust and investment services income increased by $ 83,000 , or 4.2 % , from 2018 to 2019 ,
| cash and cash equivalents cash and cash equivalents consist of the cash on hand in the corporation 's vaults , operational transaction accounts with the federal reserve bank ( frb ) , and deposits in other banks . the frb requires a specified amount of cash available either in vault cash or in an frb account . known as cash reserves , these funds provide for the daily clearing house activity of the corporation and fluctuate based on the volume of each day 's transactions . beyond these requirements , the corporation maintains additional cash levels as part of management 's active asset liability and liquidity strategy . management has been carrying larger cash balances to provide an immediate hedge against interest rate risk and liquidity risk . as of december 31 , 2019 , the corporation had $ 41.1 million in cash and cash equivalents , compared to $ 41.4 million as of december 31 , 2018. as a result of the actions of the board of governors on december 16 , 2008 , financial institutions have been able to receive interest on balances held at the frb . because of this , management began to keep larger balances at the frb and less federal funds . this overnight rate fluctuates as the overnight federal funds rate fluctuates and as of december 31 , 2019 , it stood at 1.55 % . the corporation expects to maintain an element of total cash at the federal reserve as part of a diversified cash management plan as long as liquidity levels allow for this to happen . management also invests excess cash in two money market accounts at other financial institutions .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash and cash equivalents cash and cash equivalents consist of the cash on hand in the corporation 's vaults , operational transaction accounts with the federal reserve bank ( frb ) , and deposits in other banks . the frb requires a specified amount of cash available either in vault cash or in an frb account . known as cash reserves , these funds provide for the daily clearing house activity of the corporation and fluctuate based on the volume of each day 's transactions . beyond these requirements , the corporation maintains additional cash levels as part of management 's active asset liability and liquidity strategy . management has been carrying larger cash balances to provide an immediate hedge against interest rate risk and liquidity risk . as of december 31 , 2019 , the corporation had $ 41.1 million in cash and cash equivalents , compared to $ 41.4 million as of december 31 , 2018. as a result of the actions of the board of governors on december 16 , 2008 , financial institutions have been able to receive interest on balances held at the frb . because of this , management began to keep larger balances at the frb and less federal funds . this overnight rate fluctuates as the overnight federal funds rate fluctuates and as of december 31 , 2019 , it stood at 1.55 % . the corporation expects to maintain an element of total cash at the federal reserve as part of a diversified cash management plan as long as liquidity levels allow for this to happen . management also invests excess cash in two money market accounts at other financial institutions .
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Suspicious Activity Report : the corporation 's net interest margin increased in 2019 to 3.53 % , from 3.46 % in 2018. loan yields increased as a result of four federal reserve rate increases in 2018 , lifting the yields on the corporation 's variable rate loans . even though the federal reserve cut rates three times in the last half of 2019 , the pickup in yield throughout the first part of the year served to increase loan yield for the year . this coupled with volume growth in the loan portfolio , increased loan interest income by $ 5.4 million , or 19.1 % . the corporation 's non-interest income increased by $ 269,000 , or 2.4 % , from 2018 to 2019. earnings on bank owned life insurance declined by $ 907,000 , or 55.4 % in 2019 compared to the prior year due to a death benefit of $ 913,000 recorded in 2018. gains on securities transactions were $ 499,000 in 2019 , compared to losses of $ 291,000 in 2018 , an increase in income of $ 790,000. gains on the sale of mortgages increased by $ 334,000 , or 20.8 % in 2019 compared to 2018 due to a high volume of mortgage originations stemming from the low interest rate environment . the financial services industry uses two primary performance measurements to gauge performance : return on average assets ( roa ) and return on average equity ( roe ) . roa measures how efficiently a bank generates income 32 enb financial corp management 's discussion and analysis based on the amount of assets or size of a company . roe measures the efficiency of a company in generating income based on the amount of equity or capital utilized . the latter measurement typically receives more attention from shareholders . the corporation 's 2019 roa was 1.01 % , compared to 0.93 % in 2018. roe increased from 9.94 % in 2018 to 10.36 % in 2019. the increase in roa and roe was primarily due to higher income in 2019 compared to 2018. the below table highlights the corporation 's key performance ratios for the years ended december 31 , 2019 , 2018 , and 2017. key performance ratios replace_table_token_7_th the results of the corporation 's operations are best explained by addressing in further detail the five major sections of the income statement , which are as follows : ยท net interest income ยท provision for loan losses ยท other income ยท operating expenses ยท income taxes the following discussion analyzes each of these five components . net interest income net interest income ( nii ) represents the largest portion of the corporation 's operating income . in 2019 , nii generated 76.4 % of the corporation 's gross revenue stream , compared to 75.0 % in 2018 , and 74.5 % in 2017. since nii comprises a significant portion of the operating income , the direction and rate of increase or decrease will often indicate the overall performance of the corporation . the following table shows a summary analysis of nii on a fully taxable equivalent ( fte ) basis . for analytical purposes and throughout this discussion , yields , rates , and measurements such as nii , net interest spread , and net yield on interest earning assets , are presented on an fte basis . this differs from the nii reflected on the corporation 's consolidated statements of income , where the nii is simply the interest earned on loans and securities less the interest paid on deposits and borrowings . by calculating the nii on an fte basis , the added benefit of having tax-free loans and securities is factored in to more accurately represent what the corporation earns through the nii . the fte adjustment shows the benefit these tax free loans and securities bring in a dollar amount because the corporation does not pay tax on the income they generate . as a result , the fte nii shown in both tables below will exceed the nii reported on the consolidated statements of income . the amount of fte adjustment totaled $ 749,000 for 2019 , $ 879,000 for 2018 , and $ 2,341,000 for 2017. the significant decline in fte adjustment in 2018 and 2019 was primarily due to the corporate tax rate change implemented at the end of 2017 as well as lower levels of tax-free income . 33 enb financial corp management 's discussion and analysis net interest income ( dollars in thousands ) replace_table_token_8_th nii is the difference between interest income earned on assets and interest expense incurred on liabilities . accordingly , two factors affect nii : ยท the rates charged on interest earning assets and paid on interest bearing liabilities ยท the average balance of interest earning assets and interest bearing liabilities the federal funds rate , the prime rate , the shape of the u.s. treasury curve , and other wholesale funding curves , all affect nii . the federal reserve controls the federal funds rate , which is one of a number of tools available to the federal reserve to conduct monetary policy . the federal funds rate , and guidance on when the rate might be changed , is often the focal point of discussion regarding the direction of interest rates . during 2019 , the federal funds rate was decreased three times between july and october taking the rate to 1.75 % by december 31 , 2019. with the recent declines in the federal funds rate , the u.s. treasury yield curve became flatter . a flat yield curve generally signals the end of a period of economic expansion and the beginning of a recession . story_separator_special_tag typically , the corporation sees increases in time deposits during periods when consumers are not confident in the stock market and economic conditions deteriorate . during these periods , there is a โ flight to safety โ to federally insured deposits . this trend occurred in past years , but time deposit balances declined throughout 2017 , 2018 , and 2019. as the rate between time deposits and core deposits narrowed , many customers chose to transfer funds from maturing time deposits into checking and savings accounts . since the financial crisis , depositors have been more concerned about the financial health of their financial institution . this concern affects their desire to obtain the best possible market interest rates . this trend benefits the corporation due to its high capital levels and track record of strong and stable earnings . the corporation 's bauer financial rating of 5 , the highest level of their rating scale , has assisted the bank in gaining core deposits over the past several years . the corporation 's average rate on borrowed funds increased by 24 basis points from 2018 to 2019 , as refinancing of several long-term borrowings maturing in 2019 was completed at higher market interest rates . throughout 2019 , the new fixed borrowing rates were higher than the average rate paid on the corporation 's existing borrowings . 39 enb financial corp management 's discussion and analysis provision for loan losses the allowance for loan losses provides for losses inherent in the loan portfolio as determined by a quarterly analysis and calculation of various factors related to the loan portfolio . the amount of the provision reflects the adjustment that management determines is necessary to ensure that the allowance for loan losses is adequate to cover any losses inherent in the loan portfolio . the corporation gives special attention to the level of underperforming loans when calculating the necessary provision for loan losses . the analysis of the loan loss allowance takes into consideration , among other things , the following factors : ยท levels and trends in delinquencies , non-accruals , and charge-offs , ยท levels of classified loans , ยท trends within the loan portfolio , ยท changes in lending policies and procedures , ยท experience of lending personnel and management oversight , ยท national and local economic trends , ยท concentrations of credit , ยท external factors such as legal and regulatory requirements , ยท changes in the quality of loan review and board oversight , and ยท changes in the value of underlying collateral . a provision expense of $ 770,000 was recorded in 2019 , compared to $ 660,000 in 2018 , and $ 940,000 in 2017. the provision expense in 2019 was primarily due to higher levels of delinquencies , classified loans , and charge-offs during the year as well as organic loan portfolio growth . as of december 31 , 2019 , total delinquencies represented 0.91 % of total loans , compared to 0.46 % as of december 31 , 2018. these ratios are extremely low compared to local and national peer groups but delinquencies did increase throughout 2019. the vast majority of the corporation 's loan customers have remained very steadfast in making their loan payments and avoiding delinquency , even during challenging economic conditions . the delinquency ratios speak to the long-term health , conservative nature , and , importantly , the character of the corporation 's customers and lending practices . classified loans are primarily determined by loan-to-value and debt-to-income ratios . the level of classified loans has increased from december 31 , 2018 to december 31 , 2019 , from 13.7 % of regulatory capital to 18.9 % of regulatory capital . the delinquency and classified loan information is utilized in the quarterly alll calculation , which directly affects the provision expense . a sharp increase or decrease in delinquencies and or classified loans during the year would be cause for management to increase or decrease the provision expense . the allowance as a percentage of loans remained stable at 1.25 % at both december 31 , 2019 and december 31 , 2018. it is anticipated that the corporation will record a provision expense again in 2020 based on projected loan growth and projected delinquencies and levels of classified loans . management also continues to provide for estimated losses on pools of similar loans based on historical loss experience . management employs qualitative factors every quarter in addition to historical loss experience to take into consideration the current trends in loan volume , concentrations of credit , delinquencies , changes in lending practices , and the quality of the corporation 's underwriting , credit analysis , lending staff , and board oversight . national and local economic trends and conditions are also considered when calculating an appropriate loan loss allowance for each loan pool . qualitative factors only increased for the business loans and residential real estate pools in 2019 as a result of higher levels of historical delinquencies and charge-offs . factors for six of the remaining loan pools were decreased during 2019 and one factor remained the same . management continues to evaluate the allowance for loan losses in relation to the growth or decline of the loan portfolio and its associated credit risk , and believes the provision and the allowance for loan losses are adequate to provide for future loan losses . for further discussion of the calculation , see the โ allowance for loan losses โ section . other income other income for 2019 was $ 11,306,000 , an increase of $ 269,000 , or 2.4 % , compared to the $ 11,037,000 earned in 2018. the following table details the categories that comprise other income . 40 enb financial corp management 's discussion and analysis other income ( dollars in thousands ) replace_table_token_11_th trust and investment services income increased by $ 83,000 , or 4.2 % , from 2018 to 2019 ,
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2,384 | that our electronic trading platform is more fully integrated into the workflow of our broker-dealer and institutional investor clients and to continue to add functionality to allow our clients to achieve a fully automated end-to-end straight-through processing solution ( automation from trade initiation to settlement ) ; to add new content and analytical capabilities to bondticker and expand axess all , the first intra-day trade tape for the european fixed income market , and our other data service offerings provided by trax ยฎ to improve the value of the information we provide to our clients ; and to continue to increase and supplement our internal growth by entering into strategic alliances , or acquiring businesses or technologies that will enable us to enter new markets , provide new products or services , or otherwise enhance the value of our platform to our clients . for example , the acquisition of xtrakter limited ( โ xtrakter โ ) in february 2013 provided us with an expanded set of technology solutions ahead of incoming pre-and post-trade transparency mandates from mifid ii 43 in europe . in recent years , we entered into , and expanded , a strate gic alliance with blackrock , inc. ( โ blackrock โ ) to combine blackrock 's order flow with our open trading solution to improve the range of trading connections available to credit market participants in the u.s. , europe and asia . in 2016 , we entered into an agreement with s & p dow jones indices to jointly develop indices that will track the most liquid segments of the u.s. corporate bond market . critical factors affecting our industry and our company economic , political and market factors the global fixed-income securities industry is risky and volatile and is directly affected by a number of economic , political and market factors that may result in declining trading volume . these factors could have a material adverse effect on our business , financial condition and results of operations . these factors include , among others , credit market conditions , the current interest rate environment , including the volatility of interest rates and investors ' forecasts of future interest rates , economic and political conditions in the united states , europe and elsewhere , and the consolidation or contraction of our broker-dealer clients . in 2016 , our business faced a challenging macro environment which we attribute to a number of cyclical factors , including accommodative monetary policies by several major central banks , including the federal reserve and the european central bank . these monetary policies have resulted in historically low levels of volatility and interest rates across most of the fixed income markets . the global credit markets have also faced structural issues in recent years , such as trading limits imposed by the volcker rule , increased bank capital requirements under basel iii and the quantitative easing program of the european central bank . following the u.s. presidential election in november , however , the global credit markets experienced a significant shift in sentiment and increased volatility with the expectation of an upward trend in interest rates and inflation . competitive landscape the global fixed-income securities industry generally , and the electronic financial services markets in which we engage in particular , are highly competitive , and we expect competition to intensify in the future . sources of competition for us will continue to include , among others , bond trading conducted directly between broker-dealers and their institutional investor clients over the telephone or electronically and other multi-dealer or all-to-all trading platforms . competitors , including companies in which some of our broker-dealer clients have invested , have developed or acquired electronic trading platforms or have announced their intention to explore the development of electronic platforms or information networks that may compete with us . in general , we compete on the basis of a number of key factors , including , among others , the liquidity provided on our platform , the magnitude and frequency of price improvement enabled by our platform and the quality and speed of execution . we believe that our ability to grow volumes and revenues will largely depend on our performance with respect to these factors . our competitive position is also enhanced by the familiarity and integration of our broker-dealer and institutional investor clients with our electronic trading platform and other systems . we have focused on the unique aspects of the credit markets we serve in the development of our platform , working closely with our clients to provide a system that is suited to their needs . regulatory environment our industry has been and is subject to continuous regulatory changes and may become subject to new regulations or changes in the interpretation or enforcement of existing regulations , which could require us to incur significant costs . following the global financial crisis and other recent events in the financial industry , governments and regulators in both the united states and europe called for increased regulation and transparency in the over-the-counter markets . as a result , the dodd-frank act was signed into law in july 2010. among the most significant requirements of the derivatives section of the dodd-frank act are mandatory clearing of certain derivative instruments ( โ swaps โ ) through regulated central clearing organizations and mandatory trading of those instruments through either regulated exchanges or swap execution facilities ( โ sefs โ ) , in each case , subject to certain key exceptions . marketaxess sef corporation , our wholly-owned u.s. subsidiary , operates as a sef for the trading of certain index swaps . the sec has not yet finalized its rules for security-based sefs , nor has it published a timetable for the finalization and implementation of such rules . story_separator_special_tag the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . a valuation allowance is recognized against deferred tax assets if it is more likely than not that such assets will not be realized in future years . we recognize interest and penalties related to unrecognized tax benefits in general and administrative expenses in our consolidated statements of operations . business combinations , goodwill and intangible assets business combinations are accounted for under the purchase method of accounting . the total cost of an acquisition is allocated to the underlying net assets based on their respective estimated fair values . the excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill . determining the fair value of certain assets acquired and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions , including assumptions with respect to future cash flows , discount rates , growth rates and asset lives . we operate as a single reporting unit . subsequent to an acquisition , goodwill no longer retains its identification with a particular acquisition , but instead becomes identifiable with the entire reporting unit . as a result , all of our fair value is available to support the value of goodwill . an impairment review of goodwill is performed on an annual basis , at year-end , or more frequently if circumstances change . intangible assets with definite lives , including purchased technologies , customer relationships and other intangible assets , are amortized on a straight-line basis over their estimated useful lives , ranging from three to 15 years . intangible assets are assessed for impairment when events or circumstances indicate the existence of a possible impairment . recent accounting pronouncements see note 2 to the consolidated financial statements included in item 8 of this annual report on form 10-k for a discussion of recent accounting pronouncements . 48 segment results we operate an electronic multi-party platform for the trading of fixed-income securities and provide related data , analytics , compliance tools and post-trade services . we consider our operations to constitute a single business segment because of the highly integrated nature of these product and services , of the financial markets in which we compete and of our worldwide business activities . we believe that results by geographic region or client sector are not necessarily meaningful in understanding our business . see note 13 to the consolidated financial statements included in item 8 of this annual report on form 10-k for certain geographic information about the company 's business required by u.s. gaap . results of operations year ended december 31 , 2016 compared to year ended december 31 , 2015 overview total revenues increased by $ 66.8 million or 22.0 % to $ 369.9 million for the year ended december 31 , 2016 from $ 303.1 million for the year ended december 31 , 2015. this increase in total revenues was primarily due to an increase in commission revenue of $ 66.1 million . an 11.8 % change in the average foreign currency exchange rates of the british pound sterling compared to the u.s. dollar from 2015 compared to 2016 had the effect of decreasing revenues by $ 5.9 million for the year ended december 31 , 2016. total expenses increased by $ 23.1 million or 14.9 % to $ 178.3 million for the year ended december 31 , 2016 from $ 155.2 million for the year ended december 31 , 2015. this increase was primarily due to higher employee compensation and benefits of $ 12.9 million , professional and consulting fees of $ 4.1 million , marketing and advertising costs of $ 2.8 million , general and administrative costs of $ 2.6 million and technology and communication expenses of $ 1.4 million . the change in the average foreign currency exchange rates had the effect of decreasing expenses by $ 5.9 million for the year ended december 31 , 2016. income before taxes increased by $ 43.7 million or 29.5 % to $ 191.6 million for the year ended december 31 , 2016 from $ 147.9 million for the year ended december 31 , 2015. net income increased by $ 30.1 million or 31.4 % to $ 126.2 million for the year ended december 31 , 2016 from $ 96.0 million for the year ended december 31 , 2015. revenues our revenues for the years ended december 31 , 2016 and 2015 , and the resulting dollar and percentage changes , were as follows : replace_table_token_3_th 49 commissions our commission revenues for the years ended december 31 , 2016 and 2015 , and the resulting dollar and percentage changes , were as follows : replace_table_token_4_th variable transaction fees the following table shows the extent to which the increase in variable commissions for the year ended december 31 , 2016 was attributable to changes in transaction volumes and variable transaction fees per million : replace_table_token_5_th our trading volume for each of the years presented was as follows : replace_table_token_6_th for volume reporting purposes , transactions in foreign currencies are converted to u.s. dollars at average monthly rates . the 26.5 % increase in our u.s. high-grade volume was principally due to an increase in our estimated market share of adjusted total u.s. high-grade corporate bond volume as reported by financial industry regulatory authority ( โ finra โ ) trade reporting and compliance engine ( โ trace โ ) from 14.6 % for the year ended december 31 , 2015 to 16.0 % for the year ended december 31 , 2016 , coupled with an increase in overall market volume as measured by trace . we adjusted the reported u.s. high-grade trace volumes to eliminate the increased reporting of affiliate back-to-back trades by certain broker-dealers that occurred from april 2014 through october 2015. adjusted u.s. high-grade trace volume
| liquidity and capital resources during the past three years , we have met our funding requirements through cash on hand and internally generated funds . cash and cash equivalents and investments totaled $ 362.6 million at december 31 , 2016. in january 2013 , we entered into a three-year credit agreement that provided for revolving loans and letters of credit up to an aggregate of $ 50.0 million . in october 2015 , we entered into an amended and restated credit agreement ( the โ credit agreement โ ) increasing the borrowing capacity to an aggregate of $ 100 million , including a $ 5.0 million sub-limit for standby letters of credit . the credit agreement will mature in october 2017. as of december 31 , 2016 , we had $ 0.9 million in letters of credit outstanding and $ 99.1 million in available borrowing capacity under the credit agreement . subject to satisfaction of certain specified conditions , we are permitted to upsize the borrowing capacity under the credit agreement by an additional $ 50.0 million . during the past three years , our cash flows were as follows : replace_table_token_17_th cash flows for the year ended december 31 , 2016 compared to year ended december 31 , 2015 the $ 39.9 million decrease in net cash provided by operating activities was primarily due to an increase in corporate debt trading investments of $ 74.2 million , offset by an increase in net income of $ 30.1 million and a decrease in working capital of $ 3.9 million . the $ 15.2 million increase in net cash used in investing activities was attributable to an increase in net purchases of securities available-for-sale of $ 24.3 million , an increase in capital expenditures of $ 3.1 million offset by proceeds from sales and maturities and other investing activities of $ 12.2 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources during the past three years , we have met our funding requirements through cash on hand and internally generated funds . cash and cash equivalents and investments totaled $ 362.6 million at december 31 , 2016. in january 2013 , we entered into a three-year credit agreement that provided for revolving loans and letters of credit up to an aggregate of $ 50.0 million . in october 2015 , we entered into an amended and restated credit agreement ( the โ credit agreement โ ) increasing the borrowing capacity to an aggregate of $ 100 million , including a $ 5.0 million sub-limit for standby letters of credit . the credit agreement will mature in october 2017. as of december 31 , 2016 , we had $ 0.9 million in letters of credit outstanding and $ 99.1 million in available borrowing capacity under the credit agreement . subject to satisfaction of certain specified conditions , we are permitted to upsize the borrowing capacity under the credit agreement by an additional $ 50.0 million . during the past three years , our cash flows were as follows : replace_table_token_17_th cash flows for the year ended december 31 , 2016 compared to year ended december 31 , 2015 the $ 39.9 million decrease in net cash provided by operating activities was primarily due to an increase in corporate debt trading investments of $ 74.2 million , offset by an increase in net income of $ 30.1 million and a decrease in working capital of $ 3.9 million . the $ 15.2 million increase in net cash used in investing activities was attributable to an increase in net purchases of securities available-for-sale of $ 24.3 million , an increase in capital expenditures of $ 3.1 million offset by proceeds from sales and maturities and other investing activities of $ 12.2 million .
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Suspicious Activity Report : that our electronic trading platform is more fully integrated into the workflow of our broker-dealer and institutional investor clients and to continue to add functionality to allow our clients to achieve a fully automated end-to-end straight-through processing solution ( automation from trade initiation to settlement ) ; to add new content and analytical capabilities to bondticker and expand axess all , the first intra-day trade tape for the european fixed income market , and our other data service offerings provided by trax ยฎ to improve the value of the information we provide to our clients ; and to continue to increase and supplement our internal growth by entering into strategic alliances , or acquiring businesses or technologies that will enable us to enter new markets , provide new products or services , or otherwise enhance the value of our platform to our clients . for example , the acquisition of xtrakter limited ( โ xtrakter โ ) in february 2013 provided us with an expanded set of technology solutions ahead of incoming pre-and post-trade transparency mandates from mifid ii 43 in europe . in recent years , we entered into , and expanded , a strate gic alliance with blackrock , inc. ( โ blackrock โ ) to combine blackrock 's order flow with our open trading solution to improve the range of trading connections available to credit market participants in the u.s. , europe and asia . in 2016 , we entered into an agreement with s & p dow jones indices to jointly develop indices that will track the most liquid segments of the u.s. corporate bond market . critical factors affecting our industry and our company economic , political and market factors the global fixed-income securities industry is risky and volatile and is directly affected by a number of economic , political and market factors that may result in declining trading volume . these factors could have a material adverse effect on our business , financial condition and results of operations . these factors include , among others , credit market conditions , the current interest rate environment , including the volatility of interest rates and investors ' forecasts of future interest rates , economic and political conditions in the united states , europe and elsewhere , and the consolidation or contraction of our broker-dealer clients . in 2016 , our business faced a challenging macro environment which we attribute to a number of cyclical factors , including accommodative monetary policies by several major central banks , including the federal reserve and the european central bank . these monetary policies have resulted in historically low levels of volatility and interest rates across most of the fixed income markets . the global credit markets have also faced structural issues in recent years , such as trading limits imposed by the volcker rule , increased bank capital requirements under basel iii and the quantitative easing program of the european central bank . following the u.s. presidential election in november , however , the global credit markets experienced a significant shift in sentiment and increased volatility with the expectation of an upward trend in interest rates and inflation . competitive landscape the global fixed-income securities industry generally , and the electronic financial services markets in which we engage in particular , are highly competitive , and we expect competition to intensify in the future . sources of competition for us will continue to include , among others , bond trading conducted directly between broker-dealers and their institutional investor clients over the telephone or electronically and other multi-dealer or all-to-all trading platforms . competitors , including companies in which some of our broker-dealer clients have invested , have developed or acquired electronic trading platforms or have announced their intention to explore the development of electronic platforms or information networks that may compete with us . in general , we compete on the basis of a number of key factors , including , among others , the liquidity provided on our platform , the magnitude and frequency of price improvement enabled by our platform and the quality and speed of execution . we believe that our ability to grow volumes and revenues will largely depend on our performance with respect to these factors . our competitive position is also enhanced by the familiarity and integration of our broker-dealer and institutional investor clients with our electronic trading platform and other systems . we have focused on the unique aspects of the credit markets we serve in the development of our platform , working closely with our clients to provide a system that is suited to their needs . regulatory environment our industry has been and is subject to continuous regulatory changes and may become subject to new regulations or changes in the interpretation or enforcement of existing regulations , which could require us to incur significant costs . following the global financial crisis and other recent events in the financial industry , governments and regulators in both the united states and europe called for increased regulation and transparency in the over-the-counter markets . as a result , the dodd-frank act was signed into law in july 2010. among the most significant requirements of the derivatives section of the dodd-frank act are mandatory clearing of certain derivative instruments ( โ swaps โ ) through regulated central clearing organizations and mandatory trading of those instruments through either regulated exchanges or swap execution facilities ( โ sefs โ ) , in each case , subject to certain key exceptions . marketaxess sef corporation , our wholly-owned u.s. subsidiary , operates as a sef for the trading of certain index swaps . the sec has not yet finalized its rules for security-based sefs , nor has it published a timetable for the finalization and implementation of such rules . story_separator_special_tag the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . a valuation allowance is recognized against deferred tax assets if it is more likely than not that such assets will not be realized in future years . we recognize interest and penalties related to unrecognized tax benefits in general and administrative expenses in our consolidated statements of operations . business combinations , goodwill and intangible assets business combinations are accounted for under the purchase method of accounting . the total cost of an acquisition is allocated to the underlying net assets based on their respective estimated fair values . the excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill . determining the fair value of certain assets acquired and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions , including assumptions with respect to future cash flows , discount rates , growth rates and asset lives . we operate as a single reporting unit . subsequent to an acquisition , goodwill no longer retains its identification with a particular acquisition , but instead becomes identifiable with the entire reporting unit . as a result , all of our fair value is available to support the value of goodwill . an impairment review of goodwill is performed on an annual basis , at year-end , or more frequently if circumstances change . intangible assets with definite lives , including purchased technologies , customer relationships and other intangible assets , are amortized on a straight-line basis over their estimated useful lives , ranging from three to 15 years . intangible assets are assessed for impairment when events or circumstances indicate the existence of a possible impairment . recent accounting pronouncements see note 2 to the consolidated financial statements included in item 8 of this annual report on form 10-k for a discussion of recent accounting pronouncements . 48 segment results we operate an electronic multi-party platform for the trading of fixed-income securities and provide related data , analytics , compliance tools and post-trade services . we consider our operations to constitute a single business segment because of the highly integrated nature of these product and services , of the financial markets in which we compete and of our worldwide business activities . we believe that results by geographic region or client sector are not necessarily meaningful in understanding our business . see note 13 to the consolidated financial statements included in item 8 of this annual report on form 10-k for certain geographic information about the company 's business required by u.s. gaap . results of operations year ended december 31 , 2016 compared to year ended december 31 , 2015 overview total revenues increased by $ 66.8 million or 22.0 % to $ 369.9 million for the year ended december 31 , 2016 from $ 303.1 million for the year ended december 31 , 2015. this increase in total revenues was primarily due to an increase in commission revenue of $ 66.1 million . an 11.8 % change in the average foreign currency exchange rates of the british pound sterling compared to the u.s. dollar from 2015 compared to 2016 had the effect of decreasing revenues by $ 5.9 million for the year ended december 31 , 2016. total expenses increased by $ 23.1 million or 14.9 % to $ 178.3 million for the year ended december 31 , 2016 from $ 155.2 million for the year ended december 31 , 2015. this increase was primarily due to higher employee compensation and benefits of $ 12.9 million , professional and consulting fees of $ 4.1 million , marketing and advertising costs of $ 2.8 million , general and administrative costs of $ 2.6 million and technology and communication expenses of $ 1.4 million . the change in the average foreign currency exchange rates had the effect of decreasing expenses by $ 5.9 million for the year ended december 31 , 2016. income before taxes increased by $ 43.7 million or 29.5 % to $ 191.6 million for the year ended december 31 , 2016 from $ 147.9 million for the year ended december 31 , 2015. net income increased by $ 30.1 million or 31.4 % to $ 126.2 million for the year ended december 31 , 2016 from $ 96.0 million for the year ended december 31 , 2015. revenues our revenues for the years ended december 31 , 2016 and 2015 , and the resulting dollar and percentage changes , were as follows : replace_table_token_3_th 49 commissions our commission revenues for the years ended december 31 , 2016 and 2015 , and the resulting dollar and percentage changes , were as follows : replace_table_token_4_th variable transaction fees the following table shows the extent to which the increase in variable commissions for the year ended december 31 , 2016 was attributable to changes in transaction volumes and variable transaction fees per million : replace_table_token_5_th our trading volume for each of the years presented was as follows : replace_table_token_6_th for volume reporting purposes , transactions in foreign currencies are converted to u.s. dollars at average monthly rates . the 26.5 % increase in our u.s. high-grade volume was principally due to an increase in our estimated market share of adjusted total u.s. high-grade corporate bond volume as reported by financial industry regulatory authority ( โ finra โ ) trade reporting and compliance engine ( โ trace โ ) from 14.6 % for the year ended december 31 , 2015 to 16.0 % for the year ended december 31 , 2016 , coupled with an increase in overall market volume as measured by trace . we adjusted the reported u.s. high-grade trace volumes to eliminate the increased reporting of affiliate back-to-back trades by certain broker-dealers that occurred from april 2014 through october 2015. adjusted u.s. high-grade trace volume
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2,385 | physical trading also has price risk on any net open positions at the end of each trading day , as well as volatility resulting from : ( i ) intra-day fluctuations of natural gas and or propane prices , and ( ii ) daily price movements between the time natural gas and or propane is purchased or sold for future delivery and the time the related purchase or sale is economically hedged . the determination of our net open position at the end of any trading day requires us to make assumptions as to future circumstances , including the use of natural gas and or propane by our customers in relation to anticipated market positions . because the price risk associated with any net open position at the end of such day may increase if the assumptions are not realized , we review these assumptions daily . net open positions may increase volatility in our financial condition or results of operations if market prices move in a significantly favorable or unfavorable manner , because the changes in fair value of trading contracts are immediately recognized as profits or losses for financial accounting purposes . this volatility may occur , with a resulting increase or decrease in earnings or losses , even though the expected profit margin is essentially unchanged from the date the transactions were consummated . our energy marketing subsidiaries are exposed to credit risk of their counterparties . our energy marketing subsidiaries extend credit to counterparties and continually monitor and manage collections aggressively . each of these subsidiaries is exposed to the risk that it may not be able to collect amounts owed to it . if the counterparty to such a transaction fails to perform , and any underlying collateral is inadequate , we could experience financial losses . our energy marketing subsidiaries are dependent upon the availability of credit to successfully operate their businesses . our energy marketing subsidiaries are dependent upon the availability of credit to buy propane and natural gas for resale or to trade . if financial market conditions decline generally , or the financial condition of these subsidiaries or of our company declines , then the cost of credit available to these subsidiaries could increase . if credit is not available , or if credit is more costly , our results of operations , cash flows and financial condition may be adversely affected . current market conditions could adversely impact the return on plan assets for our pension plans , which may require significant additional funding . our pension plans are closed to new employees , and the future benefits are frozen . the costs of providing benefits and related funding requirements of these plans are subject to changes in the market value of the assets that fund the plans and the discount rates used to estimate the pension benefit obligations . as a result of the extreme volatility and disruption in the domestic and international equity , bond and interest rate markets in recent years , the asset values and benefit obligations of chesapeake 's and fpu 's pension plans have fluctuated significantly since 2008. the funded status of the plans and the related costs reflected in our financial statements are affected by various factors that are subject to an inherent degree of uncertainty , particularly in the current economic environment . future losses of asset values and further declines in discount rates may necessitate accelerated funding of the plans in the future to meet minimum federal government requirements as well as higher pension expense to be recorded in future years . adverse changes in the asset values and benefit obligations of our pension plans may require us to record higher pension expense and fund obligations earlier than originally planned , which would have an adverse impact on our cash flows from operations , decrease borrowing capacity and increase interest expense . o perational r isks fluctuations in weather may cause a significant variance in our earnings . our natural gas and propane distribution operations are sensitive to fluctuations in weather conditions , which directly influence the volume of natural gas and propane we sell and deliver to our customers . a significant portion of our natural gas and propane distribution revenues is derived from the sales and deliveries to residential and commercial heating customers during the five-month peak heating season ( november through march ) . if the weather is warmer than normal , we sell and deliver less natural gas and propane to customers , and earn less revenue , which could adversely affect our results of operations , cash flows and financial condition . our electric operation is also affected by variations in weather conditions generally and unusually severe weather conditions . however , electricity consumption is generally less seasonal than natural gas and propane because it is used for both heating and cooling in our service areas . page 13 chesapeake utilities corporation 2014 form 10-k the amount and availability of natural gas , propane and electricity supplies are difficult to predict ; a substantial reduction in available supplies could reduce our earnings in those segments . natural gas , propane and electricity production can be affected by factors beyond our control , such as weather and disruptions or closings of energy facilities . if we are unable to obtain sufficient natural gas , electricity and propane supplies to meet demand , results in those businesses may be adversely affected . any substantial decrease in the availability of supplies of natural gas , propane and electricity could result in increased supply costs and higher prices for customers , which could also adversely affect our financial condition and results of operations . we rely on a limited number of natural gas , propane and electricity suppliers , the loss of which could have a material adverse effect on our financial condition and results of operations . story_separator_special_tag if such legislation is adopted and we incur additional expenses and expenditures , our financial condition , results of operations and cash flows could be adversely affected , particularly if we are not authorized through the regulatory process to recover from customers some or all of these costs and our authorized rate of return . costs of compliance with environmental laws may be significant . we are subject to federal , state and local laws and regulations governing environmental quality and pollution control . these evolving laws and regulations may require expenditures over a long period of time to control environmental effects at our current and former operating sites , especially former mgp sites . compliance with these legal obligations requires us to commit capital . if we fail to comply with environmental laws and regulations , even if such failure is caused by factors beyond our control , we may be assessed civil or criminal penalties and fines . to date , we have been able to recover , through regulatory rate mechanisms , the costs associated with the remediation of former mgp sites . however , there is no guarantee that we will be able to recover future remediation costs in the same manner or at all . a change in our approved rate mechanisms for recovery of environmental remediation costs at former mgp sites could adversely affect our results of operations , cash flows and financial condition . further , existing environmental laws and regulations may be revised , or new laws and regulations seeking to protect the environment may be adopted and be applicable to us . revised or additional laws and regulations could result in additional operating restrictions on our facilities or increased compliance costs , which may not be fully recoverable . derivatives legislation and the implementation of related rules could have an adverse impact on our ability to hedge risks associated with our business . the dodd-frank act regulates derivative transactions , which include certain instruments used in our risk management activities . the dodd-frank act contemplates that most swaps will be required to be cleared through a registered clearing facility and traded on a designated exchange or swap execution facility , subject to certain exceptions for entities that use swaps to hedge or mitigate commercial risk . although the dodd-frank act includes significant new provisions regarding the regulation of derivatives , the impact of those requirements will not be known definitively until regulations have been adopted and fully implemented by both the sec and the commodities futures trading commission , and market participants establish registered clearing facilities under those regulations . although we may qualify for exceptions , its derivatives counterparties may be subject to new capital , margin and business conduct requirements imposed as a result of the dodd-frank act , which may increase our transaction costs , make it more difficult for us to enter into hedging transactions on favorable terms or affect the number and or creditworthiness of available counterparties . our inability to enter into hedging transactions on favorable terms , or at all , could increase operating expenses and increase exposure to risks of adverse changes in commodity prices , which could adversely affect the predictability of cash flows . page 17 chesapeake utilities corporation 2014 form 10-k our business may be subject in the future to additional regulatory and financial risks associated with global warming and climate change . there have been a number of federal and state legislative and regulatory initiatives proposed in recent years in an attempt to control or limit the effects of global warming and overall climate change , including greenhouse gas emissions , such as carbon dioxide . the adoption of this type of legislation by congress , or similar legislation by states , or the adoption of related regulations by federal or state governments mandating a substantial reduction in greenhouse gas emissions in the future could have far-reaching and significant impacts on the energy industry . such new legislation or regulations could result in increased compliance costs for us or additional operating restrictions on our business , affect the demand for natural gas and propane or impact the prices we charge to our customers . at this time , we can not predict the potential impact of such laws or regulations that may be adopted on our future business , financial condition or financial results . i tem 1b . u nresolved s taff c omments . none . i tem 2. p roperties . key properties we own approximately 1,299 miles of natural gas distribution mains ( together with related service lines , meters and regulators ) located in new castle , kent and sussex counties , delaware ; and cecil , caroline , dorchester , wicomico and worcester counties , maryland . we own 2,717 miles of natural gas distribution mains ( and related equipment ) in nassau , polk , osceola , citrus , desoto , liberty , hillsborough , holmes , jackson , gadsden , gilchrist , union , washington , pasco , suwannee , palm beach , broward , martin , marion , seminole and volusia counties , florid a. in addition , we have adequate gate stations to handle receipt of the gas into each of the distribution systems . we also own facilities in delaware and maryland , which we use for propane-air injection during periods of peak demand . through eastern shore , we own and operate approximately 442 miles of transmission pipeline , extending from supply interconnects at parkesburg , daleville and honey brook , pennsylvania ; and hockessin , delaware , to 92 delivery points in southeastern pennsylvania , delaware and the eastern shore of maryland . through peninsula pipeline , we own and operate approximately 31 miles of transmission pipeline in suwannee , indian river and palm beach counties , florida . we also own approximately 45 percent of the 16-mile pipeline extending from the duval/nassau county line to
| cash flows the following table provides a summary of our operating , investing and financing cash flows for the years ended december 31 , 2014 , 2013 and 2012 : replace_table_token_28_th cash flows provided by operating activities changes in our cash flows from operating activities are attributable primarily to changes in net income , adjusted for non-cash items such as depreciation and changes in deferred income taxes , and working capital . changes in working capital are determined by a variety of factors , including weather , the prices of natural gas , electricity and propane , the timing of customer collections , payments for purchases of natural gas , electricity and propane , and deferred fuel cost recoveries . we normally generate a large portion of our annual net income and related increases in our accounts receivable in the first and fourth quarters of each year due to significant volumes of natural gas and propane delivered by our natural gas and propane distribution operations to customers during the peak heating season . in addition , our natural gas and propane inventories , which usually peak in the fall months , are largely drawn down in the heating season and provide a source of cash as the inventory is used to satisfy winter sales demand . during 2014 and 2013 , net cash provided by operating activities was $ 79.3 million and $ 72.9 million , respectively , resulting in an increase in cash flows of $ 6.4 million in 2014. significant operating activities generating the cash flow change were as follows : net income , adjusted for non-cash adjustments and reconciling activities , increased cash flows by $ 15.1 million . changes in net accounts receivable and payable increased cash flows by $ 15.1 million , due primarily to the timing of the collections and payments associated with trading contracts entered into by our propane wholesale and marketing subsidiary .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the following table provides a summary of our operating , investing and financing cash flows for the years ended december 31 , 2014 , 2013 and 2012 : replace_table_token_28_th cash flows provided by operating activities changes in our cash flows from operating activities are attributable primarily to changes in net income , adjusted for non-cash items such as depreciation and changes in deferred income taxes , and working capital . changes in working capital are determined by a variety of factors , including weather , the prices of natural gas , electricity and propane , the timing of customer collections , payments for purchases of natural gas , electricity and propane , and deferred fuel cost recoveries . we normally generate a large portion of our annual net income and related increases in our accounts receivable in the first and fourth quarters of each year due to significant volumes of natural gas and propane delivered by our natural gas and propane distribution operations to customers during the peak heating season . in addition , our natural gas and propane inventories , which usually peak in the fall months , are largely drawn down in the heating season and provide a source of cash as the inventory is used to satisfy winter sales demand . during 2014 and 2013 , net cash provided by operating activities was $ 79.3 million and $ 72.9 million , respectively , resulting in an increase in cash flows of $ 6.4 million in 2014. significant operating activities generating the cash flow change were as follows : net income , adjusted for non-cash adjustments and reconciling activities , increased cash flows by $ 15.1 million . changes in net accounts receivable and payable increased cash flows by $ 15.1 million , due primarily to the timing of the collections and payments associated with trading contracts entered into by our propane wholesale and marketing subsidiary .
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Suspicious Activity Report : physical trading also has price risk on any net open positions at the end of each trading day , as well as volatility resulting from : ( i ) intra-day fluctuations of natural gas and or propane prices , and ( ii ) daily price movements between the time natural gas and or propane is purchased or sold for future delivery and the time the related purchase or sale is economically hedged . the determination of our net open position at the end of any trading day requires us to make assumptions as to future circumstances , including the use of natural gas and or propane by our customers in relation to anticipated market positions . because the price risk associated with any net open position at the end of such day may increase if the assumptions are not realized , we review these assumptions daily . net open positions may increase volatility in our financial condition or results of operations if market prices move in a significantly favorable or unfavorable manner , because the changes in fair value of trading contracts are immediately recognized as profits or losses for financial accounting purposes . this volatility may occur , with a resulting increase or decrease in earnings or losses , even though the expected profit margin is essentially unchanged from the date the transactions were consummated . our energy marketing subsidiaries are exposed to credit risk of their counterparties . our energy marketing subsidiaries extend credit to counterparties and continually monitor and manage collections aggressively . each of these subsidiaries is exposed to the risk that it may not be able to collect amounts owed to it . if the counterparty to such a transaction fails to perform , and any underlying collateral is inadequate , we could experience financial losses . our energy marketing subsidiaries are dependent upon the availability of credit to successfully operate their businesses . our energy marketing subsidiaries are dependent upon the availability of credit to buy propane and natural gas for resale or to trade . if financial market conditions decline generally , or the financial condition of these subsidiaries or of our company declines , then the cost of credit available to these subsidiaries could increase . if credit is not available , or if credit is more costly , our results of operations , cash flows and financial condition may be adversely affected . current market conditions could adversely impact the return on plan assets for our pension plans , which may require significant additional funding . our pension plans are closed to new employees , and the future benefits are frozen . the costs of providing benefits and related funding requirements of these plans are subject to changes in the market value of the assets that fund the plans and the discount rates used to estimate the pension benefit obligations . as a result of the extreme volatility and disruption in the domestic and international equity , bond and interest rate markets in recent years , the asset values and benefit obligations of chesapeake 's and fpu 's pension plans have fluctuated significantly since 2008. the funded status of the plans and the related costs reflected in our financial statements are affected by various factors that are subject to an inherent degree of uncertainty , particularly in the current economic environment . future losses of asset values and further declines in discount rates may necessitate accelerated funding of the plans in the future to meet minimum federal government requirements as well as higher pension expense to be recorded in future years . adverse changes in the asset values and benefit obligations of our pension plans may require us to record higher pension expense and fund obligations earlier than originally planned , which would have an adverse impact on our cash flows from operations , decrease borrowing capacity and increase interest expense . o perational r isks fluctuations in weather may cause a significant variance in our earnings . our natural gas and propane distribution operations are sensitive to fluctuations in weather conditions , which directly influence the volume of natural gas and propane we sell and deliver to our customers . a significant portion of our natural gas and propane distribution revenues is derived from the sales and deliveries to residential and commercial heating customers during the five-month peak heating season ( november through march ) . if the weather is warmer than normal , we sell and deliver less natural gas and propane to customers , and earn less revenue , which could adversely affect our results of operations , cash flows and financial condition . our electric operation is also affected by variations in weather conditions generally and unusually severe weather conditions . however , electricity consumption is generally less seasonal than natural gas and propane because it is used for both heating and cooling in our service areas . page 13 chesapeake utilities corporation 2014 form 10-k the amount and availability of natural gas , propane and electricity supplies are difficult to predict ; a substantial reduction in available supplies could reduce our earnings in those segments . natural gas , propane and electricity production can be affected by factors beyond our control , such as weather and disruptions or closings of energy facilities . if we are unable to obtain sufficient natural gas , electricity and propane supplies to meet demand , results in those businesses may be adversely affected . any substantial decrease in the availability of supplies of natural gas , propane and electricity could result in increased supply costs and higher prices for customers , which could also adversely affect our financial condition and results of operations . we rely on a limited number of natural gas , propane and electricity suppliers , the loss of which could have a material adverse effect on our financial condition and results of operations . story_separator_special_tag if such legislation is adopted and we incur additional expenses and expenditures , our financial condition , results of operations and cash flows could be adversely affected , particularly if we are not authorized through the regulatory process to recover from customers some or all of these costs and our authorized rate of return . costs of compliance with environmental laws may be significant . we are subject to federal , state and local laws and regulations governing environmental quality and pollution control . these evolving laws and regulations may require expenditures over a long period of time to control environmental effects at our current and former operating sites , especially former mgp sites . compliance with these legal obligations requires us to commit capital . if we fail to comply with environmental laws and regulations , even if such failure is caused by factors beyond our control , we may be assessed civil or criminal penalties and fines . to date , we have been able to recover , through regulatory rate mechanisms , the costs associated with the remediation of former mgp sites . however , there is no guarantee that we will be able to recover future remediation costs in the same manner or at all . a change in our approved rate mechanisms for recovery of environmental remediation costs at former mgp sites could adversely affect our results of operations , cash flows and financial condition . further , existing environmental laws and regulations may be revised , or new laws and regulations seeking to protect the environment may be adopted and be applicable to us . revised or additional laws and regulations could result in additional operating restrictions on our facilities or increased compliance costs , which may not be fully recoverable . derivatives legislation and the implementation of related rules could have an adverse impact on our ability to hedge risks associated with our business . the dodd-frank act regulates derivative transactions , which include certain instruments used in our risk management activities . the dodd-frank act contemplates that most swaps will be required to be cleared through a registered clearing facility and traded on a designated exchange or swap execution facility , subject to certain exceptions for entities that use swaps to hedge or mitigate commercial risk . although the dodd-frank act includes significant new provisions regarding the regulation of derivatives , the impact of those requirements will not be known definitively until regulations have been adopted and fully implemented by both the sec and the commodities futures trading commission , and market participants establish registered clearing facilities under those regulations . although we may qualify for exceptions , its derivatives counterparties may be subject to new capital , margin and business conduct requirements imposed as a result of the dodd-frank act , which may increase our transaction costs , make it more difficult for us to enter into hedging transactions on favorable terms or affect the number and or creditworthiness of available counterparties . our inability to enter into hedging transactions on favorable terms , or at all , could increase operating expenses and increase exposure to risks of adverse changes in commodity prices , which could adversely affect the predictability of cash flows . page 17 chesapeake utilities corporation 2014 form 10-k our business may be subject in the future to additional regulatory and financial risks associated with global warming and climate change . there have been a number of federal and state legislative and regulatory initiatives proposed in recent years in an attempt to control or limit the effects of global warming and overall climate change , including greenhouse gas emissions , such as carbon dioxide . the adoption of this type of legislation by congress , or similar legislation by states , or the adoption of related regulations by federal or state governments mandating a substantial reduction in greenhouse gas emissions in the future could have far-reaching and significant impacts on the energy industry . such new legislation or regulations could result in increased compliance costs for us or additional operating restrictions on our business , affect the demand for natural gas and propane or impact the prices we charge to our customers . at this time , we can not predict the potential impact of such laws or regulations that may be adopted on our future business , financial condition or financial results . i tem 1b . u nresolved s taff c omments . none . i tem 2. p roperties . key properties we own approximately 1,299 miles of natural gas distribution mains ( together with related service lines , meters and regulators ) located in new castle , kent and sussex counties , delaware ; and cecil , caroline , dorchester , wicomico and worcester counties , maryland . we own 2,717 miles of natural gas distribution mains ( and related equipment ) in nassau , polk , osceola , citrus , desoto , liberty , hillsborough , holmes , jackson , gadsden , gilchrist , union , washington , pasco , suwannee , palm beach , broward , martin , marion , seminole and volusia counties , florid a. in addition , we have adequate gate stations to handle receipt of the gas into each of the distribution systems . we also own facilities in delaware and maryland , which we use for propane-air injection during periods of peak demand . through eastern shore , we own and operate approximately 442 miles of transmission pipeline , extending from supply interconnects at parkesburg , daleville and honey brook , pennsylvania ; and hockessin , delaware , to 92 delivery points in southeastern pennsylvania , delaware and the eastern shore of maryland . through peninsula pipeline , we own and operate approximately 31 miles of transmission pipeline in suwannee , indian river and palm beach counties , florida . we also own approximately 45 percent of the 16-mile pipeline extending from the duval/nassau county line to
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2,386 | the remaining homesites are anticipated to close in the first half of 2020. in san francisco , in early 2019 , we mutually agreed to unwind the partnership with macerich resulting in us making a principal payment of $ 65.1 million related to an outstanding promissory note . concurrently , we were released from certain obligations , including the obligation to convey certain parcels at candlestick to the partnership , which has allowed us to redesign the property for alternative uses . we recognized a noncash gain in 2019 of $ 64.9 million as a result of the macerich partnership unwind . in the fourth quarter , we received approval from the city of san francisco on our revised development plan for the first phase of candlestick that is currently planned to include approximately 750,000 square feet of office space , 1,600 homes and 300,000 square feet of lifestyle amenities . in 2019 , the great park venture entered into purchase and sale agreements to sell 660 homesites . the great park venture closed escrow on 587 of the homesites in 2019 and 73 of the homesites are anticipated to close in 2020. gross proceeds received by the great park venture on the closed sales were approximately $ 255.4 million . in early 2020 , the great park venture made a distribution of $ 76.3 million to the holders of legacy interests , reducing the remaining aggregate distributions to the holders of legacy interests to approximately $ 134.0 million . of the remaining $ 134.0 million , the first $ 45.0 million will be paid to the holders of legacy interests prior to the commencement of distributions to the holders of percentage interests . see note 4 to our consolidated financial statements included under part ii , item 8 of this report for additional discussion of distribution priorities at the great park venture . liquidity and financing highlights as of december 31 , 2019 , total liquidity of $ 470.8 million was comprised of cash and cash equivalents totaling $ 346.8 million and borrowing availability of $ 124.0 million under our unsecured revolving credit facility . in 2019 , we completed a $ 125.0 million add-on offering of our 2025 senior notes providing us additional liquidity for our operations , including our ability to pursue commercial opportunities . additionally , we amended our revolving credit facility during the year to extend the maturity date to april 2022. factors that may influence our results of operations fluctuations in the economy and market conditions our results of operations are subject to various risks and fluctuations in value and demand , many of which are beyond our control . our business could be impacted by , among other things , downturns in economic conditions at the national , regional or local levels , particularly where our communities are located , inflation and increases in interest rates , significant job losses and unemployment levels , and declines in consumer confidence and spending . supply and demand for residential and commercial properties we generate most of our revenue from land sales , which are dependent on demand from homebuilders , commercial developers and commercial buyers , which is in turn dependent on the prices that homebuyers , commercial buyers and renters are expected to pay . in addition , sales of homesites typically include participation provisions that allow us to share in the profits realized by the homebuilders if the overall profitability of a block of homes exceeds an agreed-upon margin . because our revenue is influenced by the prices that homebuyers and commercial buyers are willing to pay for homes or commercial buildings in our region , our results of operations may be influenced by , among other things , the overall supply and demand for housing and commercial properties , the 43 prevailing interest rates for mortgages , and the availability of mortgage financing for residential and commercial developers and residential and commercial buyers . timing of obtaining the necessary approvals for development activities as a developer of real property in california , we are subject to numerous land use and environmental laws and regulations . before we can begin developing our communities or development areas within them , we must obtain entitlements , permits and approvals . depending upon the type of the approval being sought , we may also need to complete an environmental impact report , remediate environmental impacts or agree to finance or develop public infrastructure within the community or applicable development area , each of which would impose additional costs on us . in the event that we materially modify any of our existing entitlements , approvals or permits , we may also need to go through a discretionary approval process before the relevant governmental authority or go through an additional or supplemental environmental review and certification process . in addition , laws and regulations governing the approval processes provide third parties with the opportunity to challenge our entitlements , permits and approvals . the prospect of these third-party challenges creates additional uncertainty . third-party challenges in the form of litigation can adversely affect the length of time or the cost required to obtain the necessary governmental approvals to develop , or result in the denial of our right to develop the particular community or development area in accordance with our current development plans . furthermore , adverse decisions arising from any litigation can increase the cost or length of time to obtain ultimate approval of a project , if such approval is obtained at all , and can adversely affect the design , scope , plans and profitability of a project , which can negatively affect our financial condition and results of operations . see part i , item 3 , of this report for a discussion of legal proceedings . story_separator_special_tag as a result of the relief of these obligations , we recognized a gain of $ 64.9 million during the year ended december 31 , 2019 . great park segment we have a 37.5 % percentage interest in the great park venture , and we account for our investment using the equity method of accounting . we have a controlling interest in the management company , an entity which performs development management services at great park neighborhoods . we do not include the great park venture as a consolidated subsidiary in our consolidated financial statements . however , because of the relationship between the management company and the great park venture , we assess our investment in the great park venture based on the financial information for the great park venture in its entirety , and not just our equity interest in it . as a result , our great park segment consists of the operations of both the great park venture and the development management services provided by the management company at the great park venture . great park neighborhoods consists of approximately 2,100 acres in orange county and is being built around the approximately 1,300 acre orange county great park , a metropolitan public park that is under construction . in the first quarter of 2019 , great park neighborhoods received approval to develop an additional 1,056 homesites . as a result of the approval , great park neighborhoods is now designed to include approximately 10,500 homesites and approximately 4.9 million square feet of commercial space . the great park venture sold the first homesites in april 2013 and , as of december 31 , 2019 , had sold 6,161 homesites ( including 709 affordable homesites ) and commercial land allowing for development of up to 2 million square feet of commercial ( research and development ) space for aggregate consideration of approximately $ 2.6 billion . interests in the great park venture are either โ percentage interests โ or โ legacy interests . โ holders of the legacy interests are entitled to receive priority distributions in an amount up to $ 565.0 million , and holders of percentage interests are entitled to all other distributions . as of december 31 , 2019 , aggregate distributions to holders of legacy interests totaled $ 355.0 million . in early 2020 , the great park venture made a distribution of $ 76.3 million to the holders of legacy interests , reducing the remaining aggregate distributions to the holders of legacy interests to approximately $ 134.0 million . of the remaining $ 134.0 million , the first $ 45.0 million will be paid to the holders of legacy interests prior to the commencement of distributions to the holders of percentage interests . see note 4 to our consolidated financial statements included under part ii , item 8 of this report for additional discussion of distribution priorities at the great park venture . 50 the following table summarizes the results of operations of our great park segment for the years ended december 31 , 2019 and 2018 . replace_table_token_5_th revenues . revenues increased by $ 97.1 million , or 46.1 % , to $ 307.8 million for the year ended december 31 , 2019 from $ 210.8 million for the year ended december 31 , 2018 . the increase was primarily attributable to the recognition of revenue from the sale of land entitled for an aggregate of 587 homesites on approximately 48 acres during the year ended december 31 , 2019 compared to the recognition of revenue from the sale of land entitled for an aggregate of 536 homesites on approximately 33 acres during the same period in 2018. initial gross proceeds from the 2019 sale were $ 255.4 million , representing the base purchase price . we also recognized $ 6.0 million in the transaction price as an estimate of the amount of variable consideration from marketing fees that we expect to be entitled to receive . initial gross proceeds from the 2018 sale were $ 166.0 million , representing the base purchase price . we also recognized $ 4.0 million in the transaction price as an estimate of the amount of variable consideration from marketing fees that we expect to be entitled to receive . during the years ended december 31 , 2019 and 2018 , revenues also included changes in estimates of variable consideration , including profit participation , from those amounts previously recorded by the great park venture in accordance with the application of the new revenue guidance , as well as revenues generated by the management company from development management services provided to the great park venture . cost of land sales . cost of land sales in 2019 and 2018 was $ 179.8 million and $ 118.1 million , or 66.4 % and 67.2 % of total land sales revenues , respectively . the cost of land sales includes both actual and estimated future capitalized costs allocated based upon relative sales values . since this method requires the great park venture to estimate the expected sales prices for the entire project , the profit margin on subsequent parcels sold will be affected by both changes in the estimated total revenues , as well as any changes in the estimated total cost of the project . management services costs and expenses . included within management services costs and expenses are general and administrative costs and expenses incurred directly by the management company 's project team that is managing the development of the great park neighborhoods . we also include amortization expense related to the intangible asset attributable to the incentive compensation provisions of the development management agreement with the great park venture . corporate and non-project team salaries and overhead are not allocated to management services costs and expenses or to our reportable segments and are reported in selling , general , and administrative 51 costs in the consolidated statement of operations . during the year ended
| cash flows from operating activities . cash flows from operating activities are primarily comprised of cash inflows from land sales , management services and operating property results . cash outflows are comprised primarily of cash outlays for horizontal development costs , employee compensation , and selling , general , and administrative costs . our operating cash flows may vary significantly each year due to the timing of land sales and the development efforts related to our master-planned communities . net cash used in operating activities decreased by $ 111.3 million for the year ended december 31 , 2019 , compared to the year ended december 31 , 2018 due to $ 135.2 million in net proceeds received upon closing escrow from land sales at our valencia segment offset by net cash used for operating activities during the year ended december 31 , 2019 . we did not have any significant land sale proceeds during the year ended december 31 , 2018 . during the years ended december 31 , 2019 and 2018 , we made total interest payments of $ 42.4 million and $ 38.6 million , respectively on our senior notes . major components of operating cash used in both periods consist of our continued investment in horizontal development at our communities and selling , general , and administrative costs . cash flows from investing activities .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows from operating activities . cash flows from operating activities are primarily comprised of cash inflows from land sales , management services and operating property results . cash outflows are comprised primarily of cash outlays for horizontal development costs , employee compensation , and selling , general , and administrative costs . our operating cash flows may vary significantly each year due to the timing of land sales and the development efforts related to our master-planned communities . net cash used in operating activities decreased by $ 111.3 million for the year ended december 31 , 2019 , compared to the year ended december 31 , 2018 due to $ 135.2 million in net proceeds received upon closing escrow from land sales at our valencia segment offset by net cash used for operating activities during the year ended december 31 , 2019 . we did not have any significant land sale proceeds during the year ended december 31 , 2018 . during the years ended december 31 , 2019 and 2018 , we made total interest payments of $ 42.4 million and $ 38.6 million , respectively on our senior notes . major components of operating cash used in both periods consist of our continued investment in horizontal development at our communities and selling , general , and administrative costs . cash flows from investing activities .
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Suspicious Activity Report : the remaining homesites are anticipated to close in the first half of 2020. in san francisco , in early 2019 , we mutually agreed to unwind the partnership with macerich resulting in us making a principal payment of $ 65.1 million related to an outstanding promissory note . concurrently , we were released from certain obligations , including the obligation to convey certain parcels at candlestick to the partnership , which has allowed us to redesign the property for alternative uses . we recognized a noncash gain in 2019 of $ 64.9 million as a result of the macerich partnership unwind . in the fourth quarter , we received approval from the city of san francisco on our revised development plan for the first phase of candlestick that is currently planned to include approximately 750,000 square feet of office space , 1,600 homes and 300,000 square feet of lifestyle amenities . in 2019 , the great park venture entered into purchase and sale agreements to sell 660 homesites . the great park venture closed escrow on 587 of the homesites in 2019 and 73 of the homesites are anticipated to close in 2020. gross proceeds received by the great park venture on the closed sales were approximately $ 255.4 million . in early 2020 , the great park venture made a distribution of $ 76.3 million to the holders of legacy interests , reducing the remaining aggregate distributions to the holders of legacy interests to approximately $ 134.0 million . of the remaining $ 134.0 million , the first $ 45.0 million will be paid to the holders of legacy interests prior to the commencement of distributions to the holders of percentage interests . see note 4 to our consolidated financial statements included under part ii , item 8 of this report for additional discussion of distribution priorities at the great park venture . liquidity and financing highlights as of december 31 , 2019 , total liquidity of $ 470.8 million was comprised of cash and cash equivalents totaling $ 346.8 million and borrowing availability of $ 124.0 million under our unsecured revolving credit facility . in 2019 , we completed a $ 125.0 million add-on offering of our 2025 senior notes providing us additional liquidity for our operations , including our ability to pursue commercial opportunities . additionally , we amended our revolving credit facility during the year to extend the maturity date to april 2022. factors that may influence our results of operations fluctuations in the economy and market conditions our results of operations are subject to various risks and fluctuations in value and demand , many of which are beyond our control . our business could be impacted by , among other things , downturns in economic conditions at the national , regional or local levels , particularly where our communities are located , inflation and increases in interest rates , significant job losses and unemployment levels , and declines in consumer confidence and spending . supply and demand for residential and commercial properties we generate most of our revenue from land sales , which are dependent on demand from homebuilders , commercial developers and commercial buyers , which is in turn dependent on the prices that homebuyers , commercial buyers and renters are expected to pay . in addition , sales of homesites typically include participation provisions that allow us to share in the profits realized by the homebuilders if the overall profitability of a block of homes exceeds an agreed-upon margin . because our revenue is influenced by the prices that homebuyers and commercial buyers are willing to pay for homes or commercial buildings in our region , our results of operations may be influenced by , among other things , the overall supply and demand for housing and commercial properties , the 43 prevailing interest rates for mortgages , and the availability of mortgage financing for residential and commercial developers and residential and commercial buyers . timing of obtaining the necessary approvals for development activities as a developer of real property in california , we are subject to numerous land use and environmental laws and regulations . before we can begin developing our communities or development areas within them , we must obtain entitlements , permits and approvals . depending upon the type of the approval being sought , we may also need to complete an environmental impact report , remediate environmental impacts or agree to finance or develop public infrastructure within the community or applicable development area , each of which would impose additional costs on us . in the event that we materially modify any of our existing entitlements , approvals or permits , we may also need to go through a discretionary approval process before the relevant governmental authority or go through an additional or supplemental environmental review and certification process . in addition , laws and regulations governing the approval processes provide third parties with the opportunity to challenge our entitlements , permits and approvals . the prospect of these third-party challenges creates additional uncertainty . third-party challenges in the form of litigation can adversely affect the length of time or the cost required to obtain the necessary governmental approvals to develop , or result in the denial of our right to develop the particular community or development area in accordance with our current development plans . furthermore , adverse decisions arising from any litigation can increase the cost or length of time to obtain ultimate approval of a project , if such approval is obtained at all , and can adversely affect the design , scope , plans and profitability of a project , which can negatively affect our financial condition and results of operations . see part i , item 3 , of this report for a discussion of legal proceedings . story_separator_special_tag as a result of the relief of these obligations , we recognized a gain of $ 64.9 million during the year ended december 31 , 2019 . great park segment we have a 37.5 % percentage interest in the great park venture , and we account for our investment using the equity method of accounting . we have a controlling interest in the management company , an entity which performs development management services at great park neighborhoods . we do not include the great park venture as a consolidated subsidiary in our consolidated financial statements . however , because of the relationship between the management company and the great park venture , we assess our investment in the great park venture based on the financial information for the great park venture in its entirety , and not just our equity interest in it . as a result , our great park segment consists of the operations of both the great park venture and the development management services provided by the management company at the great park venture . great park neighborhoods consists of approximately 2,100 acres in orange county and is being built around the approximately 1,300 acre orange county great park , a metropolitan public park that is under construction . in the first quarter of 2019 , great park neighborhoods received approval to develop an additional 1,056 homesites . as a result of the approval , great park neighborhoods is now designed to include approximately 10,500 homesites and approximately 4.9 million square feet of commercial space . the great park venture sold the first homesites in april 2013 and , as of december 31 , 2019 , had sold 6,161 homesites ( including 709 affordable homesites ) and commercial land allowing for development of up to 2 million square feet of commercial ( research and development ) space for aggregate consideration of approximately $ 2.6 billion . interests in the great park venture are either โ percentage interests โ or โ legacy interests . โ holders of the legacy interests are entitled to receive priority distributions in an amount up to $ 565.0 million , and holders of percentage interests are entitled to all other distributions . as of december 31 , 2019 , aggregate distributions to holders of legacy interests totaled $ 355.0 million . in early 2020 , the great park venture made a distribution of $ 76.3 million to the holders of legacy interests , reducing the remaining aggregate distributions to the holders of legacy interests to approximately $ 134.0 million . of the remaining $ 134.0 million , the first $ 45.0 million will be paid to the holders of legacy interests prior to the commencement of distributions to the holders of percentage interests . see note 4 to our consolidated financial statements included under part ii , item 8 of this report for additional discussion of distribution priorities at the great park venture . 50 the following table summarizes the results of operations of our great park segment for the years ended december 31 , 2019 and 2018 . replace_table_token_5_th revenues . revenues increased by $ 97.1 million , or 46.1 % , to $ 307.8 million for the year ended december 31 , 2019 from $ 210.8 million for the year ended december 31 , 2018 . the increase was primarily attributable to the recognition of revenue from the sale of land entitled for an aggregate of 587 homesites on approximately 48 acres during the year ended december 31 , 2019 compared to the recognition of revenue from the sale of land entitled for an aggregate of 536 homesites on approximately 33 acres during the same period in 2018. initial gross proceeds from the 2019 sale were $ 255.4 million , representing the base purchase price . we also recognized $ 6.0 million in the transaction price as an estimate of the amount of variable consideration from marketing fees that we expect to be entitled to receive . initial gross proceeds from the 2018 sale were $ 166.0 million , representing the base purchase price . we also recognized $ 4.0 million in the transaction price as an estimate of the amount of variable consideration from marketing fees that we expect to be entitled to receive . during the years ended december 31 , 2019 and 2018 , revenues also included changes in estimates of variable consideration , including profit participation , from those amounts previously recorded by the great park venture in accordance with the application of the new revenue guidance , as well as revenues generated by the management company from development management services provided to the great park venture . cost of land sales . cost of land sales in 2019 and 2018 was $ 179.8 million and $ 118.1 million , or 66.4 % and 67.2 % of total land sales revenues , respectively . the cost of land sales includes both actual and estimated future capitalized costs allocated based upon relative sales values . since this method requires the great park venture to estimate the expected sales prices for the entire project , the profit margin on subsequent parcels sold will be affected by both changes in the estimated total revenues , as well as any changes in the estimated total cost of the project . management services costs and expenses . included within management services costs and expenses are general and administrative costs and expenses incurred directly by the management company 's project team that is managing the development of the great park neighborhoods . we also include amortization expense related to the intangible asset attributable to the incentive compensation provisions of the development management agreement with the great park venture . corporate and non-project team salaries and overhead are not allocated to management services costs and expenses or to our reportable segments and are reported in selling , general , and administrative 51 costs in the consolidated statement of operations . during the year ended
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2,387 | during 2016 and 2015 , we recorded charges to earnings of $ 5.6 million and $ 4.5 million , respectively , for withdrawal events at the multiemployer pension plan to which we contribute related to our operations in puerto rico . during 2014 , we recorded charges to earnings of $ 1.5 million , primarily related to costs associated with our 2013 withdrawal from the central states , southeast and southwest areas pension fund ( the fund ) . restructuring charges . in january 2016 , we realigned our field support functions by combining our three regions into two field groups , consolidating our areas and streamlining select operational support roles at our phoenix headquarters . these changes included reducing administrative staffing levels , relocating office space and closing certain office locations . additionally , in the second quarter , we began the redesign of our back-office functions as well as the consolidation of over 100 customer service locations into three customer resource centers . the savings realized from these restructuring efforts will be reinvested in our customer-focused programs and initiatives . we expect our consolidation efforts to continue through 2017. during 2016 , we incurred $ 40.7 million of restructuring charges that consisted of severance and other employee termination benefits , relocation benefits , and the closure of offices with lease agreements with non-cancelable terms . we paid $ 32.5 million related to these restructuring efforts . we expect to incur additional charges of approximately $ 15 million over the next year related to our field realignment , the consolidation of our customer service locations , and the redesign of our back-office functions . substantially all of these restructuring charges will be recorded in our corporate segment . during 2014 , we incurred costs of $ 1.8 million due to a change in estimate of amounts recoverable from sublet income associated with abandoned office space with non-cancellable lease terms . loss on extinguishment of debt . during 2016 , we priced cash tender offers to purchase $ 575.4 million of outstanding notes and debentures with coupons ranging from 5.7 % to 7.4 % ( the existing notes ) . additionally , we issued $ 500.0 million of 2.90 % senior notes due 2026 ( the 2.90 % notes ) and used the net proceeds of the offering , together with borrowing under our credit facilities , to purchase the $ 575.4 million of the combined aggregate principal amount of the existing notes . we also used the net proceeds to pay a premium due of $ 148.1 million and early tender consideration of $ 28.7 million . the tender of the existing notes and sale of the 2.90 % notes closed on july 5 , 2016. in 2014 , we refinanced our credit facilities and certain of our tax-exempt financings , resulting in non-cash charges for deferred issuance costs of $ 1.4 million . for a more detailed discussion of 28 the components of these costs and the debt series to which they relate , see our โ loss on extinguishment of debt โ discussion contained in the results of operations section of this management 's discussion and analysis of financial condition and results of operations . ( gain ) loss on disposition of assets and impairments , net . during 2016 , we recorded a charge to earnings of $ 4.6 million primarily related to environmental costs associated with one of our divested landfills . during 2016 , we also recorded a net gain on disposition of assets and impairments related to a business divestiture of $ 4.7 million . during 2014 , we recorded a charge to earnings of $ 20.0 million primarily related to environmental costs associated with one of our divested landfills , of which $ 14.1 million is related to closure and post-closure costs and $ 5.9 million is related to remediation expenditures . bridgeton ( insurance recovery ) / remediation charge and other . during 2015 , we collected an insurance recovery of $ 50.0 million related to our closed bridgeton landfill in missouri . as such , we recorded a reduction of remediation expenses included in our cost of operations . during 2014 , we updated our cost and timeline estimates to build and operate a leachate management facility and related infrastructure , manage the remediation area and monitor the site . accordingly , we recorded environmental remediation charges of $ 210.6 million . additionally , we recorded certain remediation charges for the adjacent superfund site and ongoing litigation costs . recent developments 2017 financial guidance in 2017 , we will continue to focus on managing the controllable aspects of our business by enhancing the quality of our revenue , investing in profitable growth opportunities and reducing costs . our team remains focused on executing our strategy to deliver consistent earnings and free cash flow growth , and improve return on invested capital . we are committed to an efficient capital structure , maintaining our investment grade credit ratings and increasing cash returns to our shareholders . our guidance is based on current economic conditions and does not assume any significant changes in the overall economy in 2017 . specific guidance follows : revenue we expect 2017 revenue to increase by approximately 4.5 to 5.0 % comprised of the following : increase ( decrease ) average yield 2.0 % volume 1.0 to 1.25 energy services 0.25 fuel recovery fees 0.25 recycled commodities 0.50 to 0.75 acquisitions 0.50 total change 4.5 to 5.0 % changes in price are restricted on approximately 50 % of our annual service revenue . story_separator_special_tag landfill depletion and amortization expense increased primarily due to increased landfill disposal volumes and an overall increase in our average depletion and amortization rate . additionally , during 2015 , we recorded favorable amortization adjustments of $ 0.7 million relative to asset retirement obligations , compared to favorable amortization adjustments of $ 13.3 million during 2014 . amortization of other intangible assets and other assets expenses for amortization of other intangible assets and other assets were $ 71.3 million , $ 71.9 million and $ 68.4 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively , or 0.8 % of revenue for each of 2016 , 2015 and 2014 . our other intangible assets and other assets primarily relate to customer relationships , franchise agreements , other municipal agreements , and , to a lesser extent , non-compete agreements and trade names . the changes in amortization expense are the result of assets acquired in the acquisitions of various waste businesses throughout the year , offset by certain intangible assets now being fully amortized . accretion expense accretion expense was $ 79.1 million , $ 79.4 million and $ 78.0 million , or 0.8 % of revenue , for the year ended december 31 , 2016 , and 0.9 % of revenue for the years ended december 31 , 2015 and 2014 . accretion expense has remained relatively unchanged as our asset retirement obligations remained relatively consistent period over period . selling , general and administrative expenses selling , general and administrative expenses include salaries , health and welfare benefits , and incentive compensation for corporate and field general management , field support functions , sales force , accounting and finance , legal , management information systems , and clerical and administrative departments . other expenses include rent and office costs , fees for professional services provided by third parties , legal settlements , marketing , investor and community relations services , directors ' and officers ' insurance , general employee relocation , travel , entertainment and bank charges . restructuring charges are excluded from selling , general and administrative expenses and are discussed separately below . the following table summarizes our selling , general and administrative expenses for the years ended december 31 , 2016 , 2015 and 2014 ( in millions of dollars and as a percentage of revenue ) : replace_table_token_14_th these cost categories may change from time to time and may not be comparable to similarly titled categories used by other companies . as such , you should take care when comparing our selling , general and administrative expenses by cost component to those of other companies . selling , general and administrative expenses โ 2016 compared to 2015 salaries increased primarily due to higher wages , benefits , and other payroll related items resulting from merit increases and increased headcount . other selling , general and administrative expenses decreased primarily due to a reduction in acquisition-related transaction and integration costs associated with our acquisition of tervita in february 2015 that did not recur in 2016 and favorable legal settlement results . 35 selling , general and administrative expenses โ 2015 compared to 2014 salaries increased primarily due to higher wages , benefits , and other payroll related items resulting from merit increases and increased headcount , as well as higher management incentive compensation . other selling , general and administrative expenses increased primarily due to costs associated with strategic growth initiatives , as well as acquisition-related transaction and integration costs primarily associated with our acquisition of tervita in february 2015. this increase was partially offset by favorable litigation results during 2015. withdrawal costs - multiemployer pension funds during 2016 , we recorded charges to earnings of $ 5.6 million for withdrawal events at the multiemployer pension plan to which we contribute related to our operations in puerto rico . as we obtain updated information regarding the multiemployer pension plan , the factors used in deriving our estimated withdrawal liability will be subject to change , which may adversely impact our reserves for withdrawal costs . during 2015 , we recorded charges to earnings of $ 4.1 million for withdrawal events at the multiemployer pension plan to which we contribute related to our operations in puerto rico , as well as $ 0.4 million of legal charges . during 2014 , we recorded charges to earnings of $ 1.5 million , primarily related to costs associated with our 2013 withdrawal from the fund . for additional discussion and detail regarding our settlement with the fund , see our central states , southeast and southwest areas pension fund discussion in note 11 , employee benefit plans , to our consolidated financial statements in item 8 of this form 10-k. ( gain ) loss on disposition of assets and impairments , net during 2016 , we recorded a charge to earnings of $ 4.6 million primarily related to environmental costs associated with one of our divested landfills . during 2016 , we also recorded a net gain on a business divestiture of $ 4.7 million . there were no charges to earnings related to disposition of assets and impairments in 2015 . during 2014 , we recorded a charge to earnings of $ 20.0 million , primarily related to environmental costs associated with one of our divested landfills , of which $ 14.1 million is related to closure and post-closure costs and $ 5.9 million is related to remediation expenditures . we strive to have a number one or number two market position in each of the markets we serve , or have a clear path on how we will achieve a leading market position over time . in situations where we can not establish a leading market position , or where operations are not generating acceptable returns , we may decide to divest certain assets and reallocate resources to other markets . asset or business divestitures could result in gains ,
| cash paid for remediation obligations was $ 19.4 million lower during 2015 compared to 2014 primarily due to remediation activity at our closed bridgeton landfill . in december 2015 we settled outstanding liabilities with respect to the withdrawal events and paid $ 153.5 million to the fund . in addition , cash paid for income taxes was approximately $ 321 million and $ 382 million for 2015 and 2014 , respectively . income taxes paid in 2015 reflect the favorable tax depreciation provisions of the protecting americans from tax hikes act signed into law in december 2015. cash paid for interest was $ 327.6 million and $ 320.2 million for 2015 and 2014 , respectively . we use cash flows from operations to fund capital expenditures , acquisitions , dividend payments , share repurchases and debt repayments . cash flows used in investing activities the most significant items affecting the comparison of our cash flows used in investing activities for 2016 , 2015 and 2014 are summarized below : capital expenditures during 2016 were $ 927.8 million , compared with $ 945.6 million for 2015 and $ 862.5 million for 2014 . property and equipment received during 2016 , 2015 and 2014 was $ 915.6 million , $ 953.0 million and $ 872.9 million , respectively . proceeds from sales of property and equipment during 2016 were $ 9.8 million , compared to $ 21.2 million for 2015 and $ 35.7 million for 2014 . during 2016 , 2015 and 2014 , we paid $ 62.4 million , $ 572.7 million and $ 195.7
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash paid for remediation obligations was $ 19.4 million lower during 2015 compared to 2014 primarily due to remediation activity at our closed bridgeton landfill . in december 2015 we settled outstanding liabilities with respect to the withdrawal events and paid $ 153.5 million to the fund . in addition , cash paid for income taxes was approximately $ 321 million and $ 382 million for 2015 and 2014 , respectively . income taxes paid in 2015 reflect the favorable tax depreciation provisions of the protecting americans from tax hikes act signed into law in december 2015. cash paid for interest was $ 327.6 million and $ 320.2 million for 2015 and 2014 , respectively . we use cash flows from operations to fund capital expenditures , acquisitions , dividend payments , share repurchases and debt repayments . cash flows used in investing activities the most significant items affecting the comparison of our cash flows used in investing activities for 2016 , 2015 and 2014 are summarized below : capital expenditures during 2016 were $ 927.8 million , compared with $ 945.6 million for 2015 and $ 862.5 million for 2014 . property and equipment received during 2016 , 2015 and 2014 was $ 915.6 million , $ 953.0 million and $ 872.9 million , respectively . proceeds from sales of property and equipment during 2016 were $ 9.8 million , compared to $ 21.2 million for 2015 and $ 35.7 million for 2014 . during 2016 , 2015 and 2014 , we paid $ 62.4 million , $ 572.7 million and $ 195.7
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Suspicious Activity Report : during 2016 and 2015 , we recorded charges to earnings of $ 5.6 million and $ 4.5 million , respectively , for withdrawal events at the multiemployer pension plan to which we contribute related to our operations in puerto rico . during 2014 , we recorded charges to earnings of $ 1.5 million , primarily related to costs associated with our 2013 withdrawal from the central states , southeast and southwest areas pension fund ( the fund ) . restructuring charges . in january 2016 , we realigned our field support functions by combining our three regions into two field groups , consolidating our areas and streamlining select operational support roles at our phoenix headquarters . these changes included reducing administrative staffing levels , relocating office space and closing certain office locations . additionally , in the second quarter , we began the redesign of our back-office functions as well as the consolidation of over 100 customer service locations into three customer resource centers . the savings realized from these restructuring efforts will be reinvested in our customer-focused programs and initiatives . we expect our consolidation efforts to continue through 2017. during 2016 , we incurred $ 40.7 million of restructuring charges that consisted of severance and other employee termination benefits , relocation benefits , and the closure of offices with lease agreements with non-cancelable terms . we paid $ 32.5 million related to these restructuring efforts . we expect to incur additional charges of approximately $ 15 million over the next year related to our field realignment , the consolidation of our customer service locations , and the redesign of our back-office functions . substantially all of these restructuring charges will be recorded in our corporate segment . during 2014 , we incurred costs of $ 1.8 million due to a change in estimate of amounts recoverable from sublet income associated with abandoned office space with non-cancellable lease terms . loss on extinguishment of debt . during 2016 , we priced cash tender offers to purchase $ 575.4 million of outstanding notes and debentures with coupons ranging from 5.7 % to 7.4 % ( the existing notes ) . additionally , we issued $ 500.0 million of 2.90 % senior notes due 2026 ( the 2.90 % notes ) and used the net proceeds of the offering , together with borrowing under our credit facilities , to purchase the $ 575.4 million of the combined aggregate principal amount of the existing notes . we also used the net proceeds to pay a premium due of $ 148.1 million and early tender consideration of $ 28.7 million . the tender of the existing notes and sale of the 2.90 % notes closed on july 5 , 2016. in 2014 , we refinanced our credit facilities and certain of our tax-exempt financings , resulting in non-cash charges for deferred issuance costs of $ 1.4 million . for a more detailed discussion of 28 the components of these costs and the debt series to which they relate , see our โ loss on extinguishment of debt โ discussion contained in the results of operations section of this management 's discussion and analysis of financial condition and results of operations . ( gain ) loss on disposition of assets and impairments , net . during 2016 , we recorded a charge to earnings of $ 4.6 million primarily related to environmental costs associated with one of our divested landfills . during 2016 , we also recorded a net gain on disposition of assets and impairments related to a business divestiture of $ 4.7 million . during 2014 , we recorded a charge to earnings of $ 20.0 million primarily related to environmental costs associated with one of our divested landfills , of which $ 14.1 million is related to closure and post-closure costs and $ 5.9 million is related to remediation expenditures . bridgeton ( insurance recovery ) / remediation charge and other . during 2015 , we collected an insurance recovery of $ 50.0 million related to our closed bridgeton landfill in missouri . as such , we recorded a reduction of remediation expenses included in our cost of operations . during 2014 , we updated our cost and timeline estimates to build and operate a leachate management facility and related infrastructure , manage the remediation area and monitor the site . accordingly , we recorded environmental remediation charges of $ 210.6 million . additionally , we recorded certain remediation charges for the adjacent superfund site and ongoing litigation costs . recent developments 2017 financial guidance in 2017 , we will continue to focus on managing the controllable aspects of our business by enhancing the quality of our revenue , investing in profitable growth opportunities and reducing costs . our team remains focused on executing our strategy to deliver consistent earnings and free cash flow growth , and improve return on invested capital . we are committed to an efficient capital structure , maintaining our investment grade credit ratings and increasing cash returns to our shareholders . our guidance is based on current economic conditions and does not assume any significant changes in the overall economy in 2017 . specific guidance follows : revenue we expect 2017 revenue to increase by approximately 4.5 to 5.0 % comprised of the following : increase ( decrease ) average yield 2.0 % volume 1.0 to 1.25 energy services 0.25 fuel recovery fees 0.25 recycled commodities 0.50 to 0.75 acquisitions 0.50 total change 4.5 to 5.0 % changes in price are restricted on approximately 50 % of our annual service revenue . story_separator_special_tag landfill depletion and amortization expense increased primarily due to increased landfill disposal volumes and an overall increase in our average depletion and amortization rate . additionally , during 2015 , we recorded favorable amortization adjustments of $ 0.7 million relative to asset retirement obligations , compared to favorable amortization adjustments of $ 13.3 million during 2014 . amortization of other intangible assets and other assets expenses for amortization of other intangible assets and other assets were $ 71.3 million , $ 71.9 million and $ 68.4 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively , or 0.8 % of revenue for each of 2016 , 2015 and 2014 . our other intangible assets and other assets primarily relate to customer relationships , franchise agreements , other municipal agreements , and , to a lesser extent , non-compete agreements and trade names . the changes in amortization expense are the result of assets acquired in the acquisitions of various waste businesses throughout the year , offset by certain intangible assets now being fully amortized . accretion expense accretion expense was $ 79.1 million , $ 79.4 million and $ 78.0 million , or 0.8 % of revenue , for the year ended december 31 , 2016 , and 0.9 % of revenue for the years ended december 31 , 2015 and 2014 . accretion expense has remained relatively unchanged as our asset retirement obligations remained relatively consistent period over period . selling , general and administrative expenses selling , general and administrative expenses include salaries , health and welfare benefits , and incentive compensation for corporate and field general management , field support functions , sales force , accounting and finance , legal , management information systems , and clerical and administrative departments . other expenses include rent and office costs , fees for professional services provided by third parties , legal settlements , marketing , investor and community relations services , directors ' and officers ' insurance , general employee relocation , travel , entertainment and bank charges . restructuring charges are excluded from selling , general and administrative expenses and are discussed separately below . the following table summarizes our selling , general and administrative expenses for the years ended december 31 , 2016 , 2015 and 2014 ( in millions of dollars and as a percentage of revenue ) : replace_table_token_14_th these cost categories may change from time to time and may not be comparable to similarly titled categories used by other companies . as such , you should take care when comparing our selling , general and administrative expenses by cost component to those of other companies . selling , general and administrative expenses โ 2016 compared to 2015 salaries increased primarily due to higher wages , benefits , and other payroll related items resulting from merit increases and increased headcount . other selling , general and administrative expenses decreased primarily due to a reduction in acquisition-related transaction and integration costs associated with our acquisition of tervita in february 2015 that did not recur in 2016 and favorable legal settlement results . 35 selling , general and administrative expenses โ 2015 compared to 2014 salaries increased primarily due to higher wages , benefits , and other payroll related items resulting from merit increases and increased headcount , as well as higher management incentive compensation . other selling , general and administrative expenses increased primarily due to costs associated with strategic growth initiatives , as well as acquisition-related transaction and integration costs primarily associated with our acquisition of tervita in february 2015. this increase was partially offset by favorable litigation results during 2015. withdrawal costs - multiemployer pension funds during 2016 , we recorded charges to earnings of $ 5.6 million for withdrawal events at the multiemployer pension plan to which we contribute related to our operations in puerto rico . as we obtain updated information regarding the multiemployer pension plan , the factors used in deriving our estimated withdrawal liability will be subject to change , which may adversely impact our reserves for withdrawal costs . during 2015 , we recorded charges to earnings of $ 4.1 million for withdrawal events at the multiemployer pension plan to which we contribute related to our operations in puerto rico , as well as $ 0.4 million of legal charges . during 2014 , we recorded charges to earnings of $ 1.5 million , primarily related to costs associated with our 2013 withdrawal from the fund . for additional discussion and detail regarding our settlement with the fund , see our central states , southeast and southwest areas pension fund discussion in note 11 , employee benefit plans , to our consolidated financial statements in item 8 of this form 10-k. ( gain ) loss on disposition of assets and impairments , net during 2016 , we recorded a charge to earnings of $ 4.6 million primarily related to environmental costs associated with one of our divested landfills . during 2016 , we also recorded a net gain on a business divestiture of $ 4.7 million . there were no charges to earnings related to disposition of assets and impairments in 2015 . during 2014 , we recorded a charge to earnings of $ 20.0 million , primarily related to environmental costs associated with one of our divested landfills , of which $ 14.1 million is related to closure and post-closure costs and $ 5.9 million is related to remediation expenditures . we strive to have a number one or number two market position in each of the markets we serve , or have a clear path on how we will achieve a leading market position over time . in situations where we can not establish a leading market position , or where operations are not generating acceptable returns , we may decide to divest certain assets and reallocate resources to other markets . asset or business divestitures could result in gains ,
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2,388 | the markets for our products are cyclical , and we have endeavored to mitigate this cyclicality by entering into sole-source relationships and long-term purchase agreements , through diversification across multiple market segments within the aerospace and industrial segments , by increasing sales to the aftermarket and by focusing on developing highly customized solutions . 21 currently , our strategy is built around maintaining our role as a leading manufacturer of precision bearings and components through the following efforts : โ developing innovative solutions . by leveraging our design and manufacturing expertise and our extensive customer relationships , we continue to develop new products for markets in which there are substantial growth opportunities . โ expanding customer base and penetrating end markets . we continually seek opportunities to access new customers , geographic locations and bearing platforms with existing products or profitable new product opportunities . โ increasing aftermarket sales . we believe that increasing our aftermarket sales of replacement parts will further enhance the continuity and predictability of our revenues and enhance our profitability . such sales included sales to third party distributors , sales to oems for replacement products and aftermarket services . we will increase the percentage of our revenues derived from the replacement market by continuing to implement several initiatives . โ pursuing selective acquisitions . the acquisition of businesses that complement or expand our operations has been and continues to be an important element of our business strategy . we believe that there will continue to be consolidation within the industry that may present us with acquisition opportunities . we have demonstrated expertise in acquiring and integrating bearing and precision engineered component manufacturers that have complementary products or distribution channels and provide significant potential for margin enhancement . we have consistently increased the profitability of acquired businesses through a process of methods and systems improvement coupled with the introduction of complementary and proprietary new products . since october 1992 we have completed 25 acquisitions , which have broadened our end markets , products , customer base and geographic reach . the following items highlight the most recent significant events : โ in the second quarter of fiscal 2018 , the company reached a decision to restructure its manufacturing operation in montreal , canada . after completing its obligations , the company expects to close its rbc canada location and consolidate certain residual assets into other locations by the end of this fiscal year . as a result , the company recorded an after-tax charge of $ 5.6 million associated with the restructuring in the second quarter of fiscal 2018 attributable to the engineered products segment . the $ 5.6 million charge includes a $ 1.3 million impairment of fixed assets and a $ 5.2 million impairment of intangible assets offset by a $ 0.9 million tax benefit . the impairment charges were recognized within the โ other , net โ line item within the consolidated statement of operations . the company determined that the market approach was the most appropriate method to estimate the fair value of the fixed assets using comparable sales data and actual quotes from potential buyers in the market place . the fixed assets are comprised of land , a building , machinery and equipment . the company assessed the fair value of the intangible assets in accordance with asc 360-10 , which are comprised of customer relationships , product approvals , tradenames and trademarks . these fair value measurements were classified as level 3 in the valuation hierarchy . in the third and fourth quarters of fiscal 2018 , the company incurred restructuring charges of $ 1.1 million and $ 0.1 million comprised primarily of employee termination costs and building maintenance costs . these costs were recorded within the โ other , net โ line item within the consolidated statement of operations and are all attributable to the engineered products segment . the cumulative restructuring charges as of the end of the fourth quarter of fiscal 2018 , net of taxes , were $ 6.8 million . the total impact of this restructuring is expected to be between $ 6.8 million and $ 7.3 million in after-tax charges , all attributable to the engineered products segment , and is expected to conclude in the first quarter of fiscal 2019. in the third quarter of fiscal 2017 , the company reached a decision to integrate and restructure its industrial manufacturing operation in south carolina . the company exited a few smaller product offerings and consolidated two manufacturing facilities into one . these restructuring efforts will better align our manufacturing capacity and market focus . as a result , the company recorded a charge of $ 7.1 million associated with the restructuring in the third quarter of fiscal 2017 attributable to the roller bearings segment . the $ 7.1 million charge includes $ 3.2 million of inventory rationalization costs , $ 0.3 million in impairment of intangibles , $ 2.4 million loss on fixed assets disposals , and $ 1.2 million exit obligation associated with a building operating lease , of which , $ 0.8 million remains . the reduction of the exit obligation since the third quarter of fiscal 2017 was primarily related to lease payments made . the inventory rationalization costs were recorded in cost of sales in the income statement . all other costs were recorded under operating expenses in the โ other , net โ category of the income statement . the pre-tax charge of $ 7.1 million was offset with a tax benefit of approximately $ 2.2 million . the company determined that the market approach was the most appropriate method to estimate the fair value for the inventory , intangible assets , equipment and building operating lease using comparable sales data and actual quotes from potential buyers in the market place . story_separator_special_tag corporate : replace_table_token_19_th corporate sg & a increased $ 4.5 million or 9.2 % for fiscal 2018 compared to fiscal 2017. this was primarily due to increases in stock compensation expense of $ 1.3 million and personnel-related expenses of $ 3.2 million fiscal 2017 compared to fiscal 2016 results of operations replace_table_token_20_th net sales increased $ 17.9 million , or 3.0 % , for fiscal 2017 over fiscal 2016. this increase was mainly the result of a 2.9 % increase in net sales to the aerospace markets of $ 11.5 million combined with a 3.1 % increase in industrial net sales of $ 6.4 million . the increase in aerospace net sales was driven by commercial aircraft build rates while the increase in industrial net sales was due to improving conditions in the mining , semiconductor and general industrial markets . net income increased by $ 6.7 million to $ 70.6 million for fiscal 2017 compared to fiscal 2016. net income for fiscal 2017 was affected by the after tax impact of $ 0.3 million in costs associated with the sargent acquisition and $ 4.9 million of costs associated with restructuring offset by $ 0.2 million of discrete tax benefit and $ 0.2 million of foreign exchange gain . net income for fiscal 2016 was affected by the after tax impact of $ 3.4 million in costs and $ 4.8 million in inventory purchase accounting associated with the sargent acquisition , $ 0.7 million of costs associated with integration and restructuring , litigation reserves of $ 1.1 million and a $ 0.1 million loss on extinguishment of debt offset by $ 0.2 million of discrete tax benefit . gross margin replace_table_token_21_th gross margin increased $ 10.8 million , or 4.9 % , for fiscal 2017 compared to the same period last fiscal year . gross margin for fiscal 2017 was affected by $ 3.2 million of restructuring charges and $ 0.4 million of purchase accounting adjustments associated with the sargent acquisition . gross margin for fiscal 2016 was impacted by $ 7.2 million of purchase accounting adjustments associated with the sargent acquisition . selling , general and administrative replace_table_token_22_th 28 sg & a increased as a percentage of net sales to 16.7 % in fiscal 2017 from 16.5 % in fiscal 2016. sg & a expenses increased by $ 4.2 million to $ 102.9 million for fiscal 2017 compared to fiscal 2016. this increase is primarily due to $ 1.9 million of additional stock compensation expense , $ 1.8 million of personnel related expenses , and $ 0.5 million of other miscellaneous expenses . other , net replace_table_token_23_th other operating expenses for fiscal 2017 totaled $ 13.0 million compared to $ 16.2 million for fiscal 2016. for fiscal 2017 , other operating expenses were comprised of $ 9.3 million in amortization of intangibles , $ 4.1 million of restructuring costs , and $ 0.2 million of miscellaneous costs offset by other income of $ 0.6 million . for fiscal 2016 , other operating expenses were comprised of $ 9.0 million in amortization of intangibles , $ 5.1 million of acquisition related costs , $ 1.7 million in litigation reserves and $ 1.0 million in integration and restructuring costs offset by other income of $ 0.6 million . interest expense , net replace_table_token_24_th interest expense , net , generally consists of interest charged on our debt and amortization of debt issuance costs offset by interest income ( see โ liquidity and capital resources โ liquidity โ , below ) . interest expense , net was $ 8.7 million for fiscal 2017 compared to $ 8.7 million for fiscal 2016. this included amortization of debt issuance costs of $ 1.4 million for fiscal 2017 compared to $ 1.3 million for fiscal 2016. other non-operating expense replace_table_token_25_th other non-operating expense for fiscal 2017 totaled $ 0.1 million , consisting primarily of $ 0.2 million of foreign currency gains offset by $ 0.3 million of other miscellaneous costs . income taxes replace_table_token_26_th income tax expense for fiscal 2017 was $ 34.3 million compared to $ 30.9 million for fiscal 2016. our effective income tax rate for fiscal 2017 was 32.7 % compared to 32.6 % for fiscal 2016. in addition to discrete items , the effective income tax rates are different from the u.s. statutory rate due to a special manufacturing deduction and research credit in the u.s. and foreign income taxed at lower rates which decrease the rate , and state income taxes which increase the rate . the effective income tax rate for fiscal 2017 of 32.7 % includes discrete items of $ 0.2 million which are comprised substantially of unrecognized tax benefits associated with federal and state income tax audits closing and the expiration of statutes of limitations along with other permanent adjustments from the filing of the fiscal 2016 tax return . the effective income tax rate for fiscal 2017 without these discrete items would have been 32.9 % . the effective income tax rate for fiscal 2016 of 32.6 % includes discrete items of $ 0.2 million which are comprised substantially of unrecognized tax benefits associated with federal and state income tax audits closing , the expiration of statutes of limitations and an item associated with federal legislation reinstating the u.s. research credit . the effective income tax rate for fiscal 2016 without these discrete items would have been 32.8 % . 29 segment information we have four reportable product segments : plain bearings , roller bearings , ball bearings and engineered products . we use net sales and gross margin as the primary measurement to assess the financial performance of each reportable segment . plain bearing segment : replace_table_token_27_th net sales increased $ 7.2 million , or 2.6 % , for fiscal 2017 compared to fiscal 2016. the net sales increase of $ 7.2 million for this segment was mostly attributable to a net sales increase to the aerospace sector of $ 11.2 million primarily driven by the
| cash flows fiscal 2018 compared to fiscal 2017 the following table summarizes our cash flow activities : replace_table_token_32_th during fiscal 2018 we generated cash of $ 130.3 million from operating activities compared to $ 101.3 million for fiscal 2017. the increase of $ 29.0 million for fiscal 2018 was mainly the result of an increase in net income of $ 16.5 million , addition of non-cash charges of $ 1.2 million and a favorable net change in operating assets and liabilities of $ 11.3 million . the following chart summarizes the favorable ( unfavorable ) change in operating assets and liabilities of $ 11.3 million for fiscal 2018 versus fiscal 2017 and ( $ 2.3 ) million for fiscal 2017 versus fiscal 2016. replace_table_token_33_th during fiscal 2018 , we used $ 27.9 million for investing activities as compared to $ 21.4 for fiscal 2017. during fiscal 2018 , we used $ 89.9 million for financing activities compared to $ 78.8 million for fiscal 2017. during fiscal 2018 , we paid $ 84.0 million on the revolving credit facility and $ 13.8 million on the term loan . the year over year increase in cash used of $ 11.1 million is due in part to increased payments made on the term loan of $ 3.8 million . in addition , the adoption of accounting standards update ( โ asu โ ) no . 2016-09 , โ compensation โ stock compensation ( topic 718 ) : improvements to employee share-based payment accounting โ on april 2 , 2017 resulted in the company electing to prospectively classify all tax-related cash flows resulting from share-based payments , including the excess tax benefits related to the settlement of stock-based awards , as cash flows from operating activities in the statement of cash flows . prior to the adoption of this standard , these were shown as cash inflows from financing activities and cash outflows from operating activities .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows fiscal 2018 compared to fiscal 2017 the following table summarizes our cash flow activities : replace_table_token_32_th during fiscal 2018 we generated cash of $ 130.3 million from operating activities compared to $ 101.3 million for fiscal 2017. the increase of $ 29.0 million for fiscal 2018 was mainly the result of an increase in net income of $ 16.5 million , addition of non-cash charges of $ 1.2 million and a favorable net change in operating assets and liabilities of $ 11.3 million . the following chart summarizes the favorable ( unfavorable ) change in operating assets and liabilities of $ 11.3 million for fiscal 2018 versus fiscal 2017 and ( $ 2.3 ) million for fiscal 2017 versus fiscal 2016. replace_table_token_33_th during fiscal 2018 , we used $ 27.9 million for investing activities as compared to $ 21.4 for fiscal 2017. during fiscal 2018 , we used $ 89.9 million for financing activities compared to $ 78.8 million for fiscal 2017. during fiscal 2018 , we paid $ 84.0 million on the revolving credit facility and $ 13.8 million on the term loan . the year over year increase in cash used of $ 11.1 million is due in part to increased payments made on the term loan of $ 3.8 million . in addition , the adoption of accounting standards update ( โ asu โ ) no . 2016-09 , โ compensation โ stock compensation ( topic 718 ) : improvements to employee share-based payment accounting โ on april 2 , 2017 resulted in the company electing to prospectively classify all tax-related cash flows resulting from share-based payments , including the excess tax benefits related to the settlement of stock-based awards , as cash flows from operating activities in the statement of cash flows . prior to the adoption of this standard , these were shown as cash inflows from financing activities and cash outflows from operating activities .
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Suspicious Activity Report : the markets for our products are cyclical , and we have endeavored to mitigate this cyclicality by entering into sole-source relationships and long-term purchase agreements , through diversification across multiple market segments within the aerospace and industrial segments , by increasing sales to the aftermarket and by focusing on developing highly customized solutions . 21 currently , our strategy is built around maintaining our role as a leading manufacturer of precision bearings and components through the following efforts : โ developing innovative solutions . by leveraging our design and manufacturing expertise and our extensive customer relationships , we continue to develop new products for markets in which there are substantial growth opportunities . โ expanding customer base and penetrating end markets . we continually seek opportunities to access new customers , geographic locations and bearing platforms with existing products or profitable new product opportunities . โ increasing aftermarket sales . we believe that increasing our aftermarket sales of replacement parts will further enhance the continuity and predictability of our revenues and enhance our profitability . such sales included sales to third party distributors , sales to oems for replacement products and aftermarket services . we will increase the percentage of our revenues derived from the replacement market by continuing to implement several initiatives . โ pursuing selective acquisitions . the acquisition of businesses that complement or expand our operations has been and continues to be an important element of our business strategy . we believe that there will continue to be consolidation within the industry that may present us with acquisition opportunities . we have demonstrated expertise in acquiring and integrating bearing and precision engineered component manufacturers that have complementary products or distribution channels and provide significant potential for margin enhancement . we have consistently increased the profitability of acquired businesses through a process of methods and systems improvement coupled with the introduction of complementary and proprietary new products . since october 1992 we have completed 25 acquisitions , which have broadened our end markets , products , customer base and geographic reach . the following items highlight the most recent significant events : โ in the second quarter of fiscal 2018 , the company reached a decision to restructure its manufacturing operation in montreal , canada . after completing its obligations , the company expects to close its rbc canada location and consolidate certain residual assets into other locations by the end of this fiscal year . as a result , the company recorded an after-tax charge of $ 5.6 million associated with the restructuring in the second quarter of fiscal 2018 attributable to the engineered products segment . the $ 5.6 million charge includes a $ 1.3 million impairment of fixed assets and a $ 5.2 million impairment of intangible assets offset by a $ 0.9 million tax benefit . the impairment charges were recognized within the โ other , net โ line item within the consolidated statement of operations . the company determined that the market approach was the most appropriate method to estimate the fair value of the fixed assets using comparable sales data and actual quotes from potential buyers in the market place . the fixed assets are comprised of land , a building , machinery and equipment . the company assessed the fair value of the intangible assets in accordance with asc 360-10 , which are comprised of customer relationships , product approvals , tradenames and trademarks . these fair value measurements were classified as level 3 in the valuation hierarchy . in the third and fourth quarters of fiscal 2018 , the company incurred restructuring charges of $ 1.1 million and $ 0.1 million comprised primarily of employee termination costs and building maintenance costs . these costs were recorded within the โ other , net โ line item within the consolidated statement of operations and are all attributable to the engineered products segment . the cumulative restructuring charges as of the end of the fourth quarter of fiscal 2018 , net of taxes , were $ 6.8 million . the total impact of this restructuring is expected to be between $ 6.8 million and $ 7.3 million in after-tax charges , all attributable to the engineered products segment , and is expected to conclude in the first quarter of fiscal 2019. in the third quarter of fiscal 2017 , the company reached a decision to integrate and restructure its industrial manufacturing operation in south carolina . the company exited a few smaller product offerings and consolidated two manufacturing facilities into one . these restructuring efforts will better align our manufacturing capacity and market focus . as a result , the company recorded a charge of $ 7.1 million associated with the restructuring in the third quarter of fiscal 2017 attributable to the roller bearings segment . the $ 7.1 million charge includes $ 3.2 million of inventory rationalization costs , $ 0.3 million in impairment of intangibles , $ 2.4 million loss on fixed assets disposals , and $ 1.2 million exit obligation associated with a building operating lease , of which , $ 0.8 million remains . the reduction of the exit obligation since the third quarter of fiscal 2017 was primarily related to lease payments made . the inventory rationalization costs were recorded in cost of sales in the income statement . all other costs were recorded under operating expenses in the โ other , net โ category of the income statement . the pre-tax charge of $ 7.1 million was offset with a tax benefit of approximately $ 2.2 million . the company determined that the market approach was the most appropriate method to estimate the fair value for the inventory , intangible assets , equipment and building operating lease using comparable sales data and actual quotes from potential buyers in the market place . story_separator_special_tag corporate : replace_table_token_19_th corporate sg & a increased $ 4.5 million or 9.2 % for fiscal 2018 compared to fiscal 2017. this was primarily due to increases in stock compensation expense of $ 1.3 million and personnel-related expenses of $ 3.2 million fiscal 2017 compared to fiscal 2016 results of operations replace_table_token_20_th net sales increased $ 17.9 million , or 3.0 % , for fiscal 2017 over fiscal 2016. this increase was mainly the result of a 2.9 % increase in net sales to the aerospace markets of $ 11.5 million combined with a 3.1 % increase in industrial net sales of $ 6.4 million . the increase in aerospace net sales was driven by commercial aircraft build rates while the increase in industrial net sales was due to improving conditions in the mining , semiconductor and general industrial markets . net income increased by $ 6.7 million to $ 70.6 million for fiscal 2017 compared to fiscal 2016. net income for fiscal 2017 was affected by the after tax impact of $ 0.3 million in costs associated with the sargent acquisition and $ 4.9 million of costs associated with restructuring offset by $ 0.2 million of discrete tax benefit and $ 0.2 million of foreign exchange gain . net income for fiscal 2016 was affected by the after tax impact of $ 3.4 million in costs and $ 4.8 million in inventory purchase accounting associated with the sargent acquisition , $ 0.7 million of costs associated with integration and restructuring , litigation reserves of $ 1.1 million and a $ 0.1 million loss on extinguishment of debt offset by $ 0.2 million of discrete tax benefit . gross margin replace_table_token_21_th gross margin increased $ 10.8 million , or 4.9 % , for fiscal 2017 compared to the same period last fiscal year . gross margin for fiscal 2017 was affected by $ 3.2 million of restructuring charges and $ 0.4 million of purchase accounting adjustments associated with the sargent acquisition . gross margin for fiscal 2016 was impacted by $ 7.2 million of purchase accounting adjustments associated with the sargent acquisition . selling , general and administrative replace_table_token_22_th 28 sg & a increased as a percentage of net sales to 16.7 % in fiscal 2017 from 16.5 % in fiscal 2016. sg & a expenses increased by $ 4.2 million to $ 102.9 million for fiscal 2017 compared to fiscal 2016. this increase is primarily due to $ 1.9 million of additional stock compensation expense , $ 1.8 million of personnel related expenses , and $ 0.5 million of other miscellaneous expenses . other , net replace_table_token_23_th other operating expenses for fiscal 2017 totaled $ 13.0 million compared to $ 16.2 million for fiscal 2016. for fiscal 2017 , other operating expenses were comprised of $ 9.3 million in amortization of intangibles , $ 4.1 million of restructuring costs , and $ 0.2 million of miscellaneous costs offset by other income of $ 0.6 million . for fiscal 2016 , other operating expenses were comprised of $ 9.0 million in amortization of intangibles , $ 5.1 million of acquisition related costs , $ 1.7 million in litigation reserves and $ 1.0 million in integration and restructuring costs offset by other income of $ 0.6 million . interest expense , net replace_table_token_24_th interest expense , net , generally consists of interest charged on our debt and amortization of debt issuance costs offset by interest income ( see โ liquidity and capital resources โ liquidity โ , below ) . interest expense , net was $ 8.7 million for fiscal 2017 compared to $ 8.7 million for fiscal 2016. this included amortization of debt issuance costs of $ 1.4 million for fiscal 2017 compared to $ 1.3 million for fiscal 2016. other non-operating expense replace_table_token_25_th other non-operating expense for fiscal 2017 totaled $ 0.1 million , consisting primarily of $ 0.2 million of foreign currency gains offset by $ 0.3 million of other miscellaneous costs . income taxes replace_table_token_26_th income tax expense for fiscal 2017 was $ 34.3 million compared to $ 30.9 million for fiscal 2016. our effective income tax rate for fiscal 2017 was 32.7 % compared to 32.6 % for fiscal 2016. in addition to discrete items , the effective income tax rates are different from the u.s. statutory rate due to a special manufacturing deduction and research credit in the u.s. and foreign income taxed at lower rates which decrease the rate , and state income taxes which increase the rate . the effective income tax rate for fiscal 2017 of 32.7 % includes discrete items of $ 0.2 million which are comprised substantially of unrecognized tax benefits associated with federal and state income tax audits closing and the expiration of statutes of limitations along with other permanent adjustments from the filing of the fiscal 2016 tax return . the effective income tax rate for fiscal 2017 without these discrete items would have been 32.9 % . the effective income tax rate for fiscal 2016 of 32.6 % includes discrete items of $ 0.2 million which are comprised substantially of unrecognized tax benefits associated with federal and state income tax audits closing , the expiration of statutes of limitations and an item associated with federal legislation reinstating the u.s. research credit . the effective income tax rate for fiscal 2016 without these discrete items would have been 32.8 % . 29 segment information we have four reportable product segments : plain bearings , roller bearings , ball bearings and engineered products . we use net sales and gross margin as the primary measurement to assess the financial performance of each reportable segment . plain bearing segment : replace_table_token_27_th net sales increased $ 7.2 million , or 2.6 % , for fiscal 2017 compared to fiscal 2016. the net sales increase of $ 7.2 million for this segment was mostly attributable to a net sales increase to the aerospace sector of $ 11.2 million primarily driven by the
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2,389 | the reinsurance agreements significantly decreased premium income and benefit payments for group life during 2013 and also reduced volatility in this line of business . the decline in the benefit ratio for unum uk to 74.3 percent in 2013 from 77.9 percent , in 2012 was due primarily to improved risk results in the group life product line . unum uk sales in 2013 decreased 18.7 percent , in local currency , in 2013 compared to 2012 due primarily to lower group life sales as we continued to execute our plans to improve new business pricing and reposition our group life business for better margins and greater stability . persistency declined , as expected , primarily as a result of pursuing rate increases on renewing business . 32 our colonial life segment reported a decrease in operating income , including the 2013 reserve increase related to unclaimed death benefits , of 3.5 percent in 2013 compared to 2012. operating income excluding this reserve adjustment increased 3.9 percent in 2013 , with higher operating revenue and stable risk results . premium income grew 3.2 percent in 2013 compared to 2012. the 2013 benefit ratio for colonial life was 54.1 percent , and excluding the reserve increase was 52.5 percent , consistent with the level of 2012. colonial life sales increased 1.6 percent in 2013 compared to 2012 , driven by higher large case commercial market sales . persistency in 2013 declined slightly but remains strong for all lines of business . our closed block segment reported an increase in operating income of 14.6 percent in 2013 relative to 2012. net investment income increased 3.4 percent in 2013 compared to 2012 due to higher invested asset levels . risk results in 2013 were slightly favorable for both individual disability and long-term care relative to the prior year . our investment portfolio continues to perform well , and our invested asset quality remains strong . the net unrealized gain on our fixed maturity securities was $ 4.1 billion at december 31 , 2013 compared to $ 7.2 billion at december 31 , 2012 , with the decline due primarily to an increase in u.s. treasury rates during 2013. we believe our capital and financial positions are strong . at december 31 , 2013 , the risk-based capital ( rbc ) ratio for our traditional u.s. insurance subsidiaries , calculated on a weighted average basis using the naic company action level formula , was approximately 405 percent , compared to 396 percent at december 31 , 2012. during 2013 , we repurchased 11.2 million shares of unum group common stock at a cost of $ 318.6 million under our share repurchase program . cash equivalents and marketable securities held at unum group and our other intermediate holding companies are a significant source of liquidity for us and were approximately $ 514 million at december 31 , 2013 , relative to $ 805 million at december 31 , 2012. the decline was due primarily to repurchases of our common stock and a capital contribution related to our 2013 re-domestication of a captive reinsurance subsidiary . 2013 unclaimed death benefits reserve increase beginning in 2011 , a number of state regulators began requiring insurers to cross-check specified insurance policies with the social security administration 's death master file to identify potential matches . if a potential match was identified , insurers were requested to determine if benefits were due , locate beneficiaries , and make payments where appropriate . we initiated this process where requested , and in 2012 we began implementing this process in all states on a forward-looking basis . we believe adopting this process , which reflects an evolving regulatory and industry practice , is in the best interest of our customers . therefore , in addition to implementing this on a forward-looking basis , in 2013 we began an initiative to search for potential claims from previous years . during the fourth quarter of 2013 , we completed our assessment of benefits which we estimate will be paid under this initiative , and as such , established additional reserves for payment of these benefits . claim reserves were increased $ 49.1 million for unum us group life , $ 26.3 million for unum us voluntary life , and $ 20.1 million for colonial life voluntary life , for a total reserve increase of $ 95.5 million . these reserve adjustments decreased net income $ 62.1 million . although the legal and regulatory environment continues to evolve , we believe our decision to adopt this claims practice and establish additional reserves is in the best interests of our customers . 2013 group life waiver of premium benefit reserve reduction within our unum us segment , we offer group life insurance coverage which consists primarily of renewable term life insurance and includes a provision for waiver of premium , if disabled . the group life waiver of premium benefit ( group life waiver ) provides for continuation of life insurance coverage when an insured , or the employer on behalf of the insured , is no longer paying premium because the employee is not actively at work due to a disability . the group life waiver claim reserve is the present value of future anticipated death benefits reflecting the probability of death while remaining disabled . claim reserves are calculated using assumptions based on past experience adjusted for current trends and any other factors that would modify past experience and are subject to revision as current claim experience emerges and alters our view of future expectations . the two fundamental assumptions in the development of the group life waiver reserve are mortality and recovery . our emerging experience and that which continues to emerge within the industry indicate an increase in life expectancies , which decreases the ultimate anticipated death benefits to be paid under the group life waiver benefit . story_separator_special_tag if we believe , based on our actual experience and our view of future events , that our long-term assumptions need to be modified , we adjust our reserves accordingly with a charge or credit to our current period income . multiple estimation methods exist to establish claim reserve liabilities , with each method having its own advantages and disadvantages . available reserving methods utilized to calculate claim reserves include the tabular reserve method , the paid development method , the incurred loss development method , the count and severity method , and the expected claim cost method . no single method is better than the others in all situations and for all product lines . the estimation methods we have chosen are those that we believe produce the most reliable reserves . claim reserves supporting our unum us group and individual disability product lines and our closed block individual disability and individual and group long-term care product lines represent approximately 35.3 percent and 47.2 percent , respectively , of our total claim reserves at december 31 , 2013. we use a tabular reserve methodology for group and individual long-term disability and group and individual long-term care claims that have been reported . under the tabular reserve methodology , reserves for reported claims are based on certain characteristics of the actual reported claimants , such as age , length of time disabled , and medical diagnosis . we believe the tabular reserve method is the most accurate to calculate long-term liabilities and allows us to use the most available known facts about each claim . ibnr claim reserves for our long-term products are calculated using the count and severity method using historical patterns of the claims to be reported and the associated claim costs . for unum us group short-term disability products , an estimate of the value of future payments to be made on claims already submitted , as well as ibnr claims , is determined in aggregate rather than on the individual claimant basis that we use for our long-term products , using historical patterns of claim incidence as well as historical patterns of aggregate claim resolution rates . the average length of time between the event triggering a claim under a policy and the final resolution of those claims is much shorter for these products than for our long-term liabilities and results in less estimation variability . claim reserves supporting the unum us group life and accidental death and dismemberment products represent approximately 3.7 percent of our total claim reserves at december 31 , 2013. claim reserves for these products are related primarily to death claims reported but not yet paid , ibnr death claims , and a liability for waiver of premium benefits . the death claim reserve is based on the actual face amount to be paid , the ibnr reserve is calculated using the count and severity method , and the waiver of premium benefits reserve is calculated using the tabular reserve methodology . claim reserves supporting our unum uk segment represent approximately 10.0 percent of our total claim reserves at december 31 , 2013 , and are calculated using generally the same methodology that we use for unum us disability and group life reserves . the assumptions used in calculating claim reserves for this line of business are based on standard united kingdom industry experience , adjusted for unum uk 's own experience . the majority of the colonial life segment lines of business have short-term benefits , which generally have less estimation variability than our long-term products because of the shorter claim payout period . our claim reserves for colonial life 's lines of business , which approximate 1.7 percent of our total claim reserves at december 31 , 2013 , are predominantly determined using the incurred loss development method based on our own experience . the incurred loss development method uses the historical patterns of payments by loss date to predict future claim payments for each loss date . where the incurred loss development method may not be appropriate , we estimate the incurred claims using an expected claim cost per policy or other measure of exposure . the key assumptions for claim reserves for the colonial life lines of business are : ( 1 ) the timing , rate , and amount of estimated future claim payments ; and ( 2 ) the estimated expenses associated with the payment of claims . 37 the following table displays policy reserves , incurred claim reserves , and ibnr claim reserves by major product line , with the summation of the policy reserves and claim reserves shown both gross and net of the associated reinsurance recoverable . incurred claim reserves represent reserves determined for each incurred claim and also include estimated amounts for litigation expenses and other expenses associated with the payment of the claims as well as provisions for claims which we estimate will be reopened for our long-term care products . ibnr claim reserves include provisions for incurred but not reported claims and a provision for reopened claims for our disability products . the ibnr and reopened claim reserves for our disability products are developed and maintained in aggregate based on historical monitoring that has only been on a combined basis . impacting year ov er year comparability of claim reserves in the following chart are the 2013 reserve adjustments for unclaimed death benefits and group life waiver of premium benefits . see `` executive summary `` contained in this item 7 and note 6 of the `` notes to consolidated financial statements `` contained herein in item 8 for further discussion of these reserve adjustments . replace_table_token_4_th 38 replace_table_token_5_th key assumptions the calculation of policy and claim reserves involves numerous assumptions , but the primary assumptions used to calculate reserves are ( 1 ) the discount rate , ( 2 ) the claim resolution rate , and ( 3 ) the claim incidence rate for policy reserves and ibnr claim
| issuance of debt in august 2012 , we issued $ 250.0 million of unsecured senior notes in a public offering . these notes , due 2042 , bear interest at a fixed rate of 5.75 % and are payable semi-annually . the notes are callable at or above par and rank equally in right of payment with all of our other unsecured and unsubordinated debt . the balance outstanding on these notes was $ 250.0 million at december 31 , 2013 . in 2010 , we issued $ 400.0 million of unsecured senior notes in a public offering . these notes , due in 2020 , bear interest at a fixed rate of 5.625 % and are payable semi-annually . the notes are callable at or above par and rank equally in right of payment with all of our other unsecured and unsubordinated debt . in addition , these notes are effectively subordinated to any indebtedness of our subsidiaries . the balance outstanding on these notes was $ 400.0 million at december 31 , 2013 . in 2009 , we issued $ 350.0 million of unsecured senior notes in a public offering . these notes , due in 2016 , bear interest at a fixed rate of 7.125 % and are payable semi-annually . the notes are callable at or above par and rank equally in right of payment with all of our other unsecured and unsubordinated debt . the balance outstanding on these notes was $ 350.0 million at december 31 , 2013 . in 2007 , northwind holdings issued $ 800.0 million floating rate , insured , senior , secured notes , due 2037 , in a private offering .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```issuance of debt in august 2012 , we issued $ 250.0 million of unsecured senior notes in a public offering . these notes , due 2042 , bear interest at a fixed rate of 5.75 % and are payable semi-annually . the notes are callable at or above par and rank equally in right of payment with all of our other unsecured and unsubordinated debt . the balance outstanding on these notes was $ 250.0 million at december 31 , 2013 . in 2010 , we issued $ 400.0 million of unsecured senior notes in a public offering . these notes , due in 2020 , bear interest at a fixed rate of 5.625 % and are payable semi-annually . the notes are callable at or above par and rank equally in right of payment with all of our other unsecured and unsubordinated debt . in addition , these notes are effectively subordinated to any indebtedness of our subsidiaries . the balance outstanding on these notes was $ 400.0 million at december 31 , 2013 . in 2009 , we issued $ 350.0 million of unsecured senior notes in a public offering . these notes , due in 2016 , bear interest at a fixed rate of 7.125 % and are payable semi-annually . the notes are callable at or above par and rank equally in right of payment with all of our other unsecured and unsubordinated debt . the balance outstanding on these notes was $ 350.0 million at december 31 , 2013 . in 2007 , northwind holdings issued $ 800.0 million floating rate , insured , senior , secured notes , due 2037 , in a private offering .
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Suspicious Activity Report : the reinsurance agreements significantly decreased premium income and benefit payments for group life during 2013 and also reduced volatility in this line of business . the decline in the benefit ratio for unum uk to 74.3 percent in 2013 from 77.9 percent , in 2012 was due primarily to improved risk results in the group life product line . unum uk sales in 2013 decreased 18.7 percent , in local currency , in 2013 compared to 2012 due primarily to lower group life sales as we continued to execute our plans to improve new business pricing and reposition our group life business for better margins and greater stability . persistency declined , as expected , primarily as a result of pursuing rate increases on renewing business . 32 our colonial life segment reported a decrease in operating income , including the 2013 reserve increase related to unclaimed death benefits , of 3.5 percent in 2013 compared to 2012. operating income excluding this reserve adjustment increased 3.9 percent in 2013 , with higher operating revenue and stable risk results . premium income grew 3.2 percent in 2013 compared to 2012. the 2013 benefit ratio for colonial life was 54.1 percent , and excluding the reserve increase was 52.5 percent , consistent with the level of 2012. colonial life sales increased 1.6 percent in 2013 compared to 2012 , driven by higher large case commercial market sales . persistency in 2013 declined slightly but remains strong for all lines of business . our closed block segment reported an increase in operating income of 14.6 percent in 2013 relative to 2012. net investment income increased 3.4 percent in 2013 compared to 2012 due to higher invested asset levels . risk results in 2013 were slightly favorable for both individual disability and long-term care relative to the prior year . our investment portfolio continues to perform well , and our invested asset quality remains strong . the net unrealized gain on our fixed maturity securities was $ 4.1 billion at december 31 , 2013 compared to $ 7.2 billion at december 31 , 2012 , with the decline due primarily to an increase in u.s. treasury rates during 2013. we believe our capital and financial positions are strong . at december 31 , 2013 , the risk-based capital ( rbc ) ratio for our traditional u.s. insurance subsidiaries , calculated on a weighted average basis using the naic company action level formula , was approximately 405 percent , compared to 396 percent at december 31 , 2012. during 2013 , we repurchased 11.2 million shares of unum group common stock at a cost of $ 318.6 million under our share repurchase program . cash equivalents and marketable securities held at unum group and our other intermediate holding companies are a significant source of liquidity for us and were approximately $ 514 million at december 31 , 2013 , relative to $ 805 million at december 31 , 2012. the decline was due primarily to repurchases of our common stock and a capital contribution related to our 2013 re-domestication of a captive reinsurance subsidiary . 2013 unclaimed death benefits reserve increase beginning in 2011 , a number of state regulators began requiring insurers to cross-check specified insurance policies with the social security administration 's death master file to identify potential matches . if a potential match was identified , insurers were requested to determine if benefits were due , locate beneficiaries , and make payments where appropriate . we initiated this process where requested , and in 2012 we began implementing this process in all states on a forward-looking basis . we believe adopting this process , which reflects an evolving regulatory and industry practice , is in the best interest of our customers . therefore , in addition to implementing this on a forward-looking basis , in 2013 we began an initiative to search for potential claims from previous years . during the fourth quarter of 2013 , we completed our assessment of benefits which we estimate will be paid under this initiative , and as such , established additional reserves for payment of these benefits . claim reserves were increased $ 49.1 million for unum us group life , $ 26.3 million for unum us voluntary life , and $ 20.1 million for colonial life voluntary life , for a total reserve increase of $ 95.5 million . these reserve adjustments decreased net income $ 62.1 million . although the legal and regulatory environment continues to evolve , we believe our decision to adopt this claims practice and establish additional reserves is in the best interests of our customers . 2013 group life waiver of premium benefit reserve reduction within our unum us segment , we offer group life insurance coverage which consists primarily of renewable term life insurance and includes a provision for waiver of premium , if disabled . the group life waiver of premium benefit ( group life waiver ) provides for continuation of life insurance coverage when an insured , or the employer on behalf of the insured , is no longer paying premium because the employee is not actively at work due to a disability . the group life waiver claim reserve is the present value of future anticipated death benefits reflecting the probability of death while remaining disabled . claim reserves are calculated using assumptions based on past experience adjusted for current trends and any other factors that would modify past experience and are subject to revision as current claim experience emerges and alters our view of future expectations . the two fundamental assumptions in the development of the group life waiver reserve are mortality and recovery . our emerging experience and that which continues to emerge within the industry indicate an increase in life expectancies , which decreases the ultimate anticipated death benefits to be paid under the group life waiver benefit . story_separator_special_tag if we believe , based on our actual experience and our view of future events , that our long-term assumptions need to be modified , we adjust our reserves accordingly with a charge or credit to our current period income . multiple estimation methods exist to establish claim reserve liabilities , with each method having its own advantages and disadvantages . available reserving methods utilized to calculate claim reserves include the tabular reserve method , the paid development method , the incurred loss development method , the count and severity method , and the expected claim cost method . no single method is better than the others in all situations and for all product lines . the estimation methods we have chosen are those that we believe produce the most reliable reserves . claim reserves supporting our unum us group and individual disability product lines and our closed block individual disability and individual and group long-term care product lines represent approximately 35.3 percent and 47.2 percent , respectively , of our total claim reserves at december 31 , 2013. we use a tabular reserve methodology for group and individual long-term disability and group and individual long-term care claims that have been reported . under the tabular reserve methodology , reserves for reported claims are based on certain characteristics of the actual reported claimants , such as age , length of time disabled , and medical diagnosis . we believe the tabular reserve method is the most accurate to calculate long-term liabilities and allows us to use the most available known facts about each claim . ibnr claim reserves for our long-term products are calculated using the count and severity method using historical patterns of the claims to be reported and the associated claim costs . for unum us group short-term disability products , an estimate of the value of future payments to be made on claims already submitted , as well as ibnr claims , is determined in aggregate rather than on the individual claimant basis that we use for our long-term products , using historical patterns of claim incidence as well as historical patterns of aggregate claim resolution rates . the average length of time between the event triggering a claim under a policy and the final resolution of those claims is much shorter for these products than for our long-term liabilities and results in less estimation variability . claim reserves supporting the unum us group life and accidental death and dismemberment products represent approximately 3.7 percent of our total claim reserves at december 31 , 2013. claim reserves for these products are related primarily to death claims reported but not yet paid , ibnr death claims , and a liability for waiver of premium benefits . the death claim reserve is based on the actual face amount to be paid , the ibnr reserve is calculated using the count and severity method , and the waiver of premium benefits reserve is calculated using the tabular reserve methodology . claim reserves supporting our unum uk segment represent approximately 10.0 percent of our total claim reserves at december 31 , 2013 , and are calculated using generally the same methodology that we use for unum us disability and group life reserves . the assumptions used in calculating claim reserves for this line of business are based on standard united kingdom industry experience , adjusted for unum uk 's own experience . the majority of the colonial life segment lines of business have short-term benefits , which generally have less estimation variability than our long-term products because of the shorter claim payout period . our claim reserves for colonial life 's lines of business , which approximate 1.7 percent of our total claim reserves at december 31 , 2013 , are predominantly determined using the incurred loss development method based on our own experience . the incurred loss development method uses the historical patterns of payments by loss date to predict future claim payments for each loss date . where the incurred loss development method may not be appropriate , we estimate the incurred claims using an expected claim cost per policy or other measure of exposure . the key assumptions for claim reserves for the colonial life lines of business are : ( 1 ) the timing , rate , and amount of estimated future claim payments ; and ( 2 ) the estimated expenses associated with the payment of claims . 37 the following table displays policy reserves , incurred claim reserves , and ibnr claim reserves by major product line , with the summation of the policy reserves and claim reserves shown both gross and net of the associated reinsurance recoverable . incurred claim reserves represent reserves determined for each incurred claim and also include estimated amounts for litigation expenses and other expenses associated with the payment of the claims as well as provisions for claims which we estimate will be reopened for our long-term care products . ibnr claim reserves include provisions for incurred but not reported claims and a provision for reopened claims for our disability products . the ibnr and reopened claim reserves for our disability products are developed and maintained in aggregate based on historical monitoring that has only been on a combined basis . impacting year ov er year comparability of claim reserves in the following chart are the 2013 reserve adjustments for unclaimed death benefits and group life waiver of premium benefits . see `` executive summary `` contained in this item 7 and note 6 of the `` notes to consolidated financial statements `` contained herein in item 8 for further discussion of these reserve adjustments . replace_table_token_4_th 38 replace_table_token_5_th key assumptions the calculation of policy and claim reserves involves numerous assumptions , but the primary assumptions used to calculate reserves are ( 1 ) the discount rate , ( 2 ) the claim resolution rate , and ( 3 ) the claim incidence rate for policy reserves and ibnr claim
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2,390 | businesses such as airbnb , homeaway ( which expedia acquired in december 2015 ) and booking.com ( owned by booking holdings ) have emerged as the leaders , bringing incremental alternative accommodation and vacation rental inventory to the market . many other competitors , including vacation rental metasearch players , continue to emerge in this space , which is expected to continue to grow as a percentage of the global accommodation market . furthermore , we see increased interest in the online travel industry from search engine companies as evidenced by recent innovations including direct booking functionality and product enhancements by companies such as google . finally , traditional consumer ecommerce and group buying websites expanded their local offerings into the travel market by adding hotel offers to their websites . for additional detail regarding the competitive trends and risks we face , see part i item 1 business - `` competition , `` and part i , item 1a , risk factors - `` we operate in an increasingly competitive global environment . โ the online travel industry also saw the development of alternative business models and variations in the timing of payment by travelers and to suppliers , which in some cases place pressure on historical business models . in particular , the agency hotel model saw rapid adoption in europe . expedia group distributes both merchant ( expedia collect ) and agency ( hotel collect ) hotel offerings for our hotel supply partners through both agency-only contracts as well as our hybrid etp program , which offers travelers the choice of whether to pay expedia group at the time of booking or pay the hotel at the time of stay . intense competition also historically led to aggressive marketing efforts by the travel suppliers and intermediaries , and a meaningful unfavorable impact on our overall marketing efficiencies and operating margins . we manage our selling and marketing spending on a brand basis , making decisions in each applicable market that we think are appropriate based on the relative growth opportunity and the expected returns and the competitive environment . in certain cases , particularly in 37 emerging markets , we are pursuing and expect to continue to pursue long-term growth opportunities for which our marketing efficiency is less favorable than that for our consolidated business , but for which we still believe the opportunity to be attractive . in addition , the crowded online travel environment is now driving certain secondary and tertiary online travel companies to establish marketing agreements with global players in order to leverage distribution and technology capabilities while focusing resources on capturing traveler mind share . for more detail , see part i , item 1a , risk factors - `` we rely on the value of our brands , and the cost of maintaining and enhancing our brand awareness are increasing โ and โ our international operations involve additional risks and our exposure to these risks will increase as our business expands globally . โ lodging lodging includes hotel accommodations as well as alternative accommodations primarily made available through homeaway . as a percentage of our total worldwide revenue in 2018 , lodging accounted for 69 % . our room night growth has been healthy , with room nights 32 % in 2016 ( excluding elong ) , 16 % in 2017 and 13 % in 2018. adrs for rooms booked on expedia and homeaway websites increased 5 % in 2016 ( excluding elong ) due to the acquisition of homeaway , 3 % in 2017 and 5 % in 2018. hotel . we generate the majority of our revenue through the facilitation of hotel reservations ( stand-alone and package bookings ) . although our relationships with our hotel supply partners remained broadly stable in the past few years , as part of the global rollout of etp , we reduced negotiated economics in certain instances to compensate for hotel supply partners absorbing expenses such as credit card fees and customer service costs , which has negatively impacted the margin of revenue we earn per booking . in addition , as we continue to expand the breadth and depth of our global hotel offering , in some cases we have reduced our economics in various geographies based on local market conditions . these impacts are due to specific initiatives intended to drive greater global size and scale through faster overall room night growth . additionally , increased promotional activities such as growing loyalty programs contribute to declines in revenue per room night and profitability . since our hotel supplier agreements are generally negotiated on a percentage basis , any increase or decrease in adrs has an impact on the revenue we earn per room night . over the course of the last several years , occupancies and adrs in the lodging industry generally increased on a currency-neutral basis in a gradually improving overall travel environment . current occupancy rates for hotels in the united states remain high ; however , u.s. hotel supply has continued to grow , which may put additional pressure on adrs . in some international markets , hotel supply is being added at a faster rate as hotel owners and operators try to take advantage of opportunities in faster growing regions . companies like airbnb , homeaway and booking.com also added incremental global supply in the alternative accommodations space . in addition , while the global lodging industry remains very fragmented , there has been consolidation in the hotel space among chains as well as ownership groups . in the meantime , certain hotel chains have been focusing on driving direct bookings on their own websites and mobile applications by advertising lower rates than those available on third-party websites as well as incentives such as loyalty points , increased or exclusive product availability and complimentary wi-fi . story_separator_special_tag we record liabilities to address uncertain tax positions we have taken in previously filed tax returns or that we expect to take in a future tax return . the determination for required liabilities is based upon an analysis of each individual tax position , taking into consideration whether it is more likely than not that our tax position , based on technical merits , will be sustained upon examination . for those positions for which we conclude it is more likely than not it will be sustained , we recognize the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with the taxing authority . the difference between the amount recognized and the total tax position is recorded as a liability . the ultimate resolution of these tax positions may be greater or less than the liabilities recorded . the tax act was enacted in december 2017 and the tax act significantly changed u.s. tax law by , among other things , lowering u.s. corporate income tax rates , implementing a territorial tax system and imposing a one-time transition tax on deemed repatriated earnings of foreign subsidiaries . the tax act reduced the u.s. corporate income tax rate from 35 % to 21 % , effective january 1 , 2018. the sec staff issued staff accounting bulletin no . 118 ( โ sab 118 โ ) to address the application of u.s. gaap in situations when a registrant does not have the necessary information available , prepared , or analyzed ( including computations ) in reasonable detail to complete the accounting for certain income tax effects of the tax act and allows the registrant to record provisional amounts during a measurement period not to extend beyond one year of the enactment date . we applied the guidance in sab 118 when accounting for the enactment date effects of the tax act in 2017 and throughout 2018. at 41 december 31 , 2017 , we had not completed our accounting for all of the enactment date income tax effects of the tax act under accounting standards codification 740 , income taxes , for the following aspects : one-time transition tax and revaluation of deferred tax balances . as of december 31 , 2018 , we have now completed our accounting for all of the enactment date income tax effects of the tax act . based on our final analysis , changes in our estimates during 2018 relating to the one-time transition tax and revaluation of deferred tax balances were immaterial . the tax act created a new requirement that global intangible low-taxed income ( โ gilti โ ) earned by our foreign subsidiaries must be included in gross u.s. taxable income which we account for in the period incurred ( the `` period cost method `` ) . other long-term liabilities various legal and tax contingencies . we record liabilities to address potential exposures related to business and tax positions we have taken that have been or could be challenged by taxing authorities . in addition , we record liabilities associated with legal proceedings and lawsuits . these liabilities are recorded when the likelihood of payment is probable and the amounts can be reasonably estimated . the determination for required liabilities is based upon analysis of each individual tax issue , or legal proceeding , taking into consideration the likelihood of adverse judgments and the range of possible loss . in addition , our analysis may be based on discussions with outside legal counsel . the ultimate resolution of these potential tax exposures and legal proceedings may be greater or less than the liabilities recorded . occupancy and other taxes . some states and localities impose taxes ( e.g . transient occupancy , accommodation tax , sales tax and or business privilege tax ) on the use or occupancy of hotel accommodations or other traveler services . generally , hotels collect taxes based on the rate paid to the hotel and remit these taxes to the various tax authorities . when a customer books a room through one of our travel services , we collect a tax recovery charge from the customer which we pay to the hotel . we calculate the tax recovery charge by applying the applicable tax rate supplied to us by the hotels to the amount that the hotel has agreed to receive for the rental of the room by the consumer . in all but a limited number of jurisdictions , we do not collect or remit taxes , nor do we pay taxes to the hotel operator , on the portion of the customer payment we retain . some jurisdictions have questioned our practice in this regard . while the applicable tax provisions vary among the jurisdictions , we generally believe that we are not required to pay such taxes . more recently , a limited number of taxing jurisdictions have made similar claims against homeaway for tax amounts due on the rental amounts charged by owners of vacation rental properties or for taxes on homeaway 's services . homeaway is an intermediary between a traveler and a party renting a vacation property and we believe is similarly not liable for such taxes . we are engaged in discussions with tax authorities in various jurisdictions to resolve these issues . some tax authorities have brought lawsuits or have levied assessments asserting that we are required to collect and remit tax . the ultimate resolution in all jurisdictions can not be determined at this time . certain jurisdictions may require us to pay tax assessments , including occupancy and other transactional tax assessments , prior to contesting any such assessments . we have established a reserve for the potential settlement of issues related to hotel taxes for prior and current periods , consistent with applicable accounting principles and in light of all current facts and circumstances . a variety of factors could affect the amount of the
| cash used in financing activities in 2018 primarily included cash paid to acquire shares of $ 923 million , including the repurchased shares under the authorizations discussed below , the $ 500 million long-term debt repayment and a $ 186 million cash dividend payment , partially offset by $ 166 million of proceeds from the exercise of options and employee stock purchase plans . cash provided by financing activities in 2017 primarily included $ 990 million of net proceeds from the issuance of 3.8 % notes as well as $ 229 million of proceeds from the exercise of options and employee stock purchase plans , partially offset by cash paid to acquire shares of $ 312 million and a $ 176 million cash dividend payment . cash used in financing activities in 2016 primarily included cash paid to acquire shares of $ 456 million , the repayment of $ 401 million of homeaway convertible notes and $ 150 million cash dividend payment , partially offset by $ 215 million of net proceeds from the initial public offering of trivago as well as $ 141 million of proceeds from the exercise of options and employee stock purchase plans . during 2012 , 2010 , and 2006 , our board ofdirectors , or the executive committee , acting on behalf of the board of directors , authorized a repurchase of up to 20 million outstanding shares of our common stock during each of the respective years , during 2015 authorized a repurchase of up to 10 million shares of our common stock , and during 2018 authorized a repurchase of up to 15 million shares of our common stock for a total of 85 million shares .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash used in financing activities in 2018 primarily included cash paid to acquire shares of $ 923 million , including the repurchased shares under the authorizations discussed below , the $ 500 million long-term debt repayment and a $ 186 million cash dividend payment , partially offset by $ 166 million of proceeds from the exercise of options and employee stock purchase plans . cash provided by financing activities in 2017 primarily included $ 990 million of net proceeds from the issuance of 3.8 % notes as well as $ 229 million of proceeds from the exercise of options and employee stock purchase plans , partially offset by cash paid to acquire shares of $ 312 million and a $ 176 million cash dividend payment . cash used in financing activities in 2016 primarily included cash paid to acquire shares of $ 456 million , the repayment of $ 401 million of homeaway convertible notes and $ 150 million cash dividend payment , partially offset by $ 215 million of net proceeds from the initial public offering of trivago as well as $ 141 million of proceeds from the exercise of options and employee stock purchase plans . during 2012 , 2010 , and 2006 , our board ofdirectors , or the executive committee , acting on behalf of the board of directors , authorized a repurchase of up to 20 million outstanding shares of our common stock during each of the respective years , during 2015 authorized a repurchase of up to 10 million shares of our common stock , and during 2018 authorized a repurchase of up to 15 million shares of our common stock for a total of 85 million shares .
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Suspicious Activity Report : businesses such as airbnb , homeaway ( which expedia acquired in december 2015 ) and booking.com ( owned by booking holdings ) have emerged as the leaders , bringing incremental alternative accommodation and vacation rental inventory to the market . many other competitors , including vacation rental metasearch players , continue to emerge in this space , which is expected to continue to grow as a percentage of the global accommodation market . furthermore , we see increased interest in the online travel industry from search engine companies as evidenced by recent innovations including direct booking functionality and product enhancements by companies such as google . finally , traditional consumer ecommerce and group buying websites expanded their local offerings into the travel market by adding hotel offers to their websites . for additional detail regarding the competitive trends and risks we face , see part i item 1 business - `` competition , `` and part i , item 1a , risk factors - `` we operate in an increasingly competitive global environment . โ the online travel industry also saw the development of alternative business models and variations in the timing of payment by travelers and to suppliers , which in some cases place pressure on historical business models . in particular , the agency hotel model saw rapid adoption in europe . expedia group distributes both merchant ( expedia collect ) and agency ( hotel collect ) hotel offerings for our hotel supply partners through both agency-only contracts as well as our hybrid etp program , which offers travelers the choice of whether to pay expedia group at the time of booking or pay the hotel at the time of stay . intense competition also historically led to aggressive marketing efforts by the travel suppliers and intermediaries , and a meaningful unfavorable impact on our overall marketing efficiencies and operating margins . we manage our selling and marketing spending on a brand basis , making decisions in each applicable market that we think are appropriate based on the relative growth opportunity and the expected returns and the competitive environment . in certain cases , particularly in 37 emerging markets , we are pursuing and expect to continue to pursue long-term growth opportunities for which our marketing efficiency is less favorable than that for our consolidated business , but for which we still believe the opportunity to be attractive . in addition , the crowded online travel environment is now driving certain secondary and tertiary online travel companies to establish marketing agreements with global players in order to leverage distribution and technology capabilities while focusing resources on capturing traveler mind share . for more detail , see part i , item 1a , risk factors - `` we rely on the value of our brands , and the cost of maintaining and enhancing our brand awareness are increasing โ and โ our international operations involve additional risks and our exposure to these risks will increase as our business expands globally . โ lodging lodging includes hotel accommodations as well as alternative accommodations primarily made available through homeaway . as a percentage of our total worldwide revenue in 2018 , lodging accounted for 69 % . our room night growth has been healthy , with room nights 32 % in 2016 ( excluding elong ) , 16 % in 2017 and 13 % in 2018. adrs for rooms booked on expedia and homeaway websites increased 5 % in 2016 ( excluding elong ) due to the acquisition of homeaway , 3 % in 2017 and 5 % in 2018. hotel . we generate the majority of our revenue through the facilitation of hotel reservations ( stand-alone and package bookings ) . although our relationships with our hotel supply partners remained broadly stable in the past few years , as part of the global rollout of etp , we reduced negotiated economics in certain instances to compensate for hotel supply partners absorbing expenses such as credit card fees and customer service costs , which has negatively impacted the margin of revenue we earn per booking . in addition , as we continue to expand the breadth and depth of our global hotel offering , in some cases we have reduced our economics in various geographies based on local market conditions . these impacts are due to specific initiatives intended to drive greater global size and scale through faster overall room night growth . additionally , increased promotional activities such as growing loyalty programs contribute to declines in revenue per room night and profitability . since our hotel supplier agreements are generally negotiated on a percentage basis , any increase or decrease in adrs has an impact on the revenue we earn per room night . over the course of the last several years , occupancies and adrs in the lodging industry generally increased on a currency-neutral basis in a gradually improving overall travel environment . current occupancy rates for hotels in the united states remain high ; however , u.s. hotel supply has continued to grow , which may put additional pressure on adrs . in some international markets , hotel supply is being added at a faster rate as hotel owners and operators try to take advantage of opportunities in faster growing regions . companies like airbnb , homeaway and booking.com also added incremental global supply in the alternative accommodations space . in addition , while the global lodging industry remains very fragmented , there has been consolidation in the hotel space among chains as well as ownership groups . in the meantime , certain hotel chains have been focusing on driving direct bookings on their own websites and mobile applications by advertising lower rates than those available on third-party websites as well as incentives such as loyalty points , increased or exclusive product availability and complimentary wi-fi . story_separator_special_tag we record liabilities to address uncertain tax positions we have taken in previously filed tax returns or that we expect to take in a future tax return . the determination for required liabilities is based upon an analysis of each individual tax position , taking into consideration whether it is more likely than not that our tax position , based on technical merits , will be sustained upon examination . for those positions for which we conclude it is more likely than not it will be sustained , we recognize the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with the taxing authority . the difference between the amount recognized and the total tax position is recorded as a liability . the ultimate resolution of these tax positions may be greater or less than the liabilities recorded . the tax act was enacted in december 2017 and the tax act significantly changed u.s. tax law by , among other things , lowering u.s. corporate income tax rates , implementing a territorial tax system and imposing a one-time transition tax on deemed repatriated earnings of foreign subsidiaries . the tax act reduced the u.s. corporate income tax rate from 35 % to 21 % , effective january 1 , 2018. the sec staff issued staff accounting bulletin no . 118 ( โ sab 118 โ ) to address the application of u.s. gaap in situations when a registrant does not have the necessary information available , prepared , or analyzed ( including computations ) in reasonable detail to complete the accounting for certain income tax effects of the tax act and allows the registrant to record provisional amounts during a measurement period not to extend beyond one year of the enactment date . we applied the guidance in sab 118 when accounting for the enactment date effects of the tax act in 2017 and throughout 2018. at 41 december 31 , 2017 , we had not completed our accounting for all of the enactment date income tax effects of the tax act under accounting standards codification 740 , income taxes , for the following aspects : one-time transition tax and revaluation of deferred tax balances . as of december 31 , 2018 , we have now completed our accounting for all of the enactment date income tax effects of the tax act . based on our final analysis , changes in our estimates during 2018 relating to the one-time transition tax and revaluation of deferred tax balances were immaterial . the tax act created a new requirement that global intangible low-taxed income ( โ gilti โ ) earned by our foreign subsidiaries must be included in gross u.s. taxable income which we account for in the period incurred ( the `` period cost method `` ) . other long-term liabilities various legal and tax contingencies . we record liabilities to address potential exposures related to business and tax positions we have taken that have been or could be challenged by taxing authorities . in addition , we record liabilities associated with legal proceedings and lawsuits . these liabilities are recorded when the likelihood of payment is probable and the amounts can be reasonably estimated . the determination for required liabilities is based upon analysis of each individual tax issue , or legal proceeding , taking into consideration the likelihood of adverse judgments and the range of possible loss . in addition , our analysis may be based on discussions with outside legal counsel . the ultimate resolution of these potential tax exposures and legal proceedings may be greater or less than the liabilities recorded . occupancy and other taxes . some states and localities impose taxes ( e.g . transient occupancy , accommodation tax , sales tax and or business privilege tax ) on the use or occupancy of hotel accommodations or other traveler services . generally , hotels collect taxes based on the rate paid to the hotel and remit these taxes to the various tax authorities . when a customer books a room through one of our travel services , we collect a tax recovery charge from the customer which we pay to the hotel . we calculate the tax recovery charge by applying the applicable tax rate supplied to us by the hotels to the amount that the hotel has agreed to receive for the rental of the room by the consumer . in all but a limited number of jurisdictions , we do not collect or remit taxes , nor do we pay taxes to the hotel operator , on the portion of the customer payment we retain . some jurisdictions have questioned our practice in this regard . while the applicable tax provisions vary among the jurisdictions , we generally believe that we are not required to pay such taxes . more recently , a limited number of taxing jurisdictions have made similar claims against homeaway for tax amounts due on the rental amounts charged by owners of vacation rental properties or for taxes on homeaway 's services . homeaway is an intermediary between a traveler and a party renting a vacation property and we believe is similarly not liable for such taxes . we are engaged in discussions with tax authorities in various jurisdictions to resolve these issues . some tax authorities have brought lawsuits or have levied assessments asserting that we are required to collect and remit tax . the ultimate resolution in all jurisdictions can not be determined at this time . certain jurisdictions may require us to pay tax assessments , including occupancy and other transactional tax assessments , prior to contesting any such assessments . we have established a reserve for the potential settlement of issues related to hotel taxes for prior and current periods , consistent with applicable accounting principles and in light of all current facts and circumstances . a variety of factors could affect the amount of the
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2,391 | we have specific initiatives related to improved customer satisfaction , reduced defects , shortened lead times , improved inventory turns and on-time deliveries , reduced warranty costs , and improved working capital utilization . the initiatives are being driven by the continued implementation of our โ lean โ efforts which are fundamentally changing our manufacturing and business processes to be more responsive to customer demand and improving on-time delivery and productivity . in addition to โ lean , โ we are working to achieve these strategic initiatives through product simplification , the creation of centers of excellence , and improved supply chain management . we are also aggressively pursuing cost reduction opportunities to enhance future margins . we continuously monitor market prices of steel . we purchase approximately $ 30,000,000 to $ 40,000,000 of steel annually in a variety of forms including rod , wire , bar , structural and others . generally , as we experience fluctuations in our costs , we reflect them as price increases or surcharges to our customers with the goal of being margin neutral . we are also looking for opportunities for growth via strategic acquisitions or joint ventures . the focus of our acquisition strategy centers on product line expansion in alignment with our existing core product offering and opportunities for non-u.s. market penetration . we operate in a highly competitive and global business environment . we face a variety of opportunities in those markets and geographies , including trends toward increased utilization of the global labor force and the expansion of market opportunities in asia and other emerging markets . while we continue to execute our long-term growth strategy , we are supported by our solid capital structure , including our cash position and flexible debt structure . 28 results of operations fiscal 2016 compared to 2015 fiscal 2016 sales were $ 597,103,000 , an increase of 3.0 % , or $ 17,460,000 compared with fiscal 2015 sales of $ 579,643,000 . sales for the year were positively impacted by $ 74,267,000 due to acquisitions and $ 5,605,000 by price increases . sales for the year were negatively impacted $ 33,082,000 due to a decrease in sales volume . the decline in sales volume was due to industrial recessions caused by weakness in oil & gas , mining , heavy oem , and commercial construction markets affecting our north american hoist and rigging and latin american operations . unfavorable foreign currency translation reduced sales by $ 29,330,000 . our gross profit was $ 187,263,000 and $ 181,607,000 or 31.4 % and 31.3 % of net sales in fiscal 2016 and 2015 , respectively . the fiscal 2016 increase in gross profit of $ 5,656,000 or 3.1 % is the result of $ 24,316,000 from our recent acquisitions , $ 5,605,000 in price increases , $ 769,000 in reduced material costs , and $ 830,000 in reduced plant consolidation activities , offset by $ 11,438,000 in decreased volume , $ 3,337,000 in lower productivity due to reduced fixed cost absorption and inventory adjustments , net of other manufacturing costs , $ 2,051,000 in increased product liability costs , and $ 429,000 in facility impairment costs for a property held for sale . the translation of foreign currencies had an unfavorable impact on gross profit of $ 8,609,000. selling expenses were $ 72,858,000 and $ 69,819,000 or 12.2 % and 12.0 % of net sales in fiscal years 2016 and 2015 , respectively . the acquisitions of magnetek and stb added an additional $ 7,640,000 in selling expense for the year ended march 31 , 2016. the consolidation of two warehouses and the closure of another added $ 859,000 to selling costs . additionally , foreign currency translation had a $ 5,036,000 favorable impact on selling expenses . general and administrative expenses were $ 68,811,000 and $ 54,874,000 or 11.5 % and 9.5 % of net sales in fiscal 2016 and 2015 , respectively . the fiscal 2016 increase was primarily the result of magnetek acquisition transaction costs of $ 5,746,000 and acquisition-related severance costs of $ 2,300,000. in addition , magnetek and stb added $ 5,774,000 in recurring general and administrated expenses . additional increases are the result of lower information technology salaries capitalized as part of the global erp systems project as well as general inflationary increases . foreign currency translation had a $ 2,622,000 favorable impact on general and administrative expenses . amortization of intangibles was $ 5,024,000 and $ 2,266,000 in fiscal 2016 and 2015 , respectively . the increase relates to additional amortization of intangibles related to the magnetek and stb acquisitions . interest and debt expense was $ 7,904,000 and $ 12,390,000 or 1.3 % and 2.1 % of net sales in fiscal 2016 and 2015 , respectively . the decrease in interest and debt expense relates to the redemption of the 7 7/8 % notes in the fourth quarter of fiscal 2015 with the lower interest bearing term loan despite the increased borrowings used to fund the magnetek purchase beginning in the second quarter of fiscal 2016. the fiscal 2015 cost of bond redemption of $ 8,567,000 relates to the call premium and write off of unamortized deferred financing costs associated with our 7 7/8 % notes which were redeemed in february 2015. this transaction is discussed in more detail in the liquidity and capital resources section . there were no similar transactions in fiscal 2016. investment income of $ 796,000 and $ 2,725,000 , in fiscal 2016 and 2015 , respectively , related to earnings on marketable securities held in the company 's wholly owned captive insurance subsidiary . foreign currency exchange loss ( gain ) was $ 2,215,000 and $ 863,000 in fiscal 2016 and 2015 , respectively , as a result of foreign currency volatility related to foreign currency denominated purchases and intercompany debt . story_separator_special_tag if interpreted differently under different conditions or circumstances , changes in our estimates could result in material changes to our reported results . we have identified below the accounting policies involving estimates that are critical to our financial statements . other accounting policies are more fully described in note 2 of our consolidated financial statements . revenue recognition . sales are recorded when title passes to the customer which is generally at the time of shipment to the customer . the company performs ongoing credit evaluations of its customers ' financial condition , but generally does not require collateral to support customer receivables . the credit risk is controlled through credit approvals , limits and monitoring procedures . accounts receivable are reported at net realizable value and do not accrue interest . sales tax is excluded from revenue . pension and other postretirement benefits . the determination of the obligations and expense for pension and postretirement benefits is dependent on our selection of certain assumptions that are used by actuaries in calculating such amounts . those assumptions are disclosed in note 12 to our fiscal 2016 consolidated financial statements and include the discount rates , expected long-term rate of return on plan assets and rates of future increases in compensation and healthcare costs . changes in these assumptions can result in the calculation of different plan expense and liability amounts . further , actual experience can differ from the assumptions and these differences are typically accounted for as actuarial gains or losses that are amortized over future periods . the weighted average pension discount rate assumptions of 4.03 % , 3.83 % , and 4.60 % , as of march 31 , 2016 , 2015 , and 2014 , respectively , are based on long-term aa rated corporate and municipal bond rates . at september 2 , 2015 , the company used a discount rate assumption of 4.30 % in valuing the pension plan obligation acquired in the magnetek acquisition . the change in the discount rate at march 31 , 2016 did not result in a significant change in the total projected benefit obligation . the company adopted updated mortality tables in calculating its u.s. pension obligation . the change in mortality tables resulted in a $ 5,700,000 increase in the projected benefit obligation . the rate of return on plan assets assumptions of 7.22 % for the year ended march 31 , 2016 , and 7.50 % for the years ended march 31 , 2015 and 2014 is based on the targeted plan asset allocation ( approximately 65 % equities and 35 % fixed income ) and their long-term historical returns . our under-funded status for all pension plans as of march 31 , 2016 and 2015 was $ 103,279,000 and $ 57,339,000 , or 24.5 % and 21.9 % of the projected benefit obligation , respectively . our pension contributions during fiscal 2016 and 2015 were approximately $ 5,936,000 and $ 11,013,000 , respectively . the under-funded status may result in future pension expense increases . pension benefit for the march 31 , 2017 fiscal year is expected to approximate $ 983,000 , comparable to the fiscal 2016 benefit of $ 1,208,000 . pension funding contributions for the march 31 , 2017 fiscal year are expected to approximate $ 5,961,000 . the weighted-average compensation increase assumption of 0.44 % as of march 31 , 2016 and 2.30 % and 2.00 % as of march 31 , 2015 and 2014 , respectively is based on expected wage trends and historical patterns . the healthcare costs inflation assumptions of 6.8 % for fiscal 2016 and 7.0 % for fiscal 2015 and 2014 , respectively , are based on anticipated trends . while the healthcare inflation rate assumptions have been decreasing , healthcare costs continue to outpace inflation in the u.s. 35 insurance reserves . our accrued general and product liability reserves as described in note 15 to consolidated financial statements involve actuarial techniques including the methods selected to estimate ultimate claims , and assumptions including emergence patterns , payment patterns , initial expected losses and increased limit factors . these actuarial estimates are subject to a high degree of uncertainty due to a variety of factors , including extended lag time in the reporting and resolution of claims , trends or changes in claim settlement patterns , insurance industry practices , and legal interpretations . changes to these estimates could result in material changes to the amount of expense and liabilities recorded in our financial statements . further , actual costs could differ significantly from the estimated amounts . adjustments to estimated reserves are recorded in the period in which the change in estimate occurs . other insurance reserves such as workers compensation and group health insurance are based on actual historical and current claim data provided by third party administrators or internally maintained . goodwill impairment testing . our goodwill balance of $ 170,716,000 as of march 31 , 2016 is subject to impairment testing . we test goodwill for impairment at least annually , as of the end of february , and more frequently whenever events occur or circumstances change that indicate there may be impairment . these events or circumstances could include a significant long-term adverse change in the business climate , poor indicators of operating performance , or a sale or disposition of a significant portion of a reporting unit . we test goodwill at the reporting unit level , which is one level below our operating segment . we identify our reporting units by assessing whether the components of our operating segment constitute businesses for which discrete financial information is available and segment management regularly reviews the operating results of those components . we also aggregate components that have similar economic characteristics into single reporting units ( for example , similar products and / or services , similar long-term financial results , product processes , classes of customers , or in circumstances where the
| net cash used by investing activities was $ 203,229,000 , $ 34,079,000 and $ 40,425,000 in fiscal 2016 , 2015 and 2014 , respectively . the most significant use of cash for investing activities relates to our acquisition of magnetek which totaled $ 182,467,000 , net of cash acquired . capital expenditures for fiscal 2016 totaled $ 22,320,000 , of which $ 5,400,000 related to the construction of the getzville corporate headquarters and national training facility . offsetting these uses of cash is $ 1,558,000 in net cash proceeds from the sale of marketable equity securities . the most significant net cash used for investing activities in fiscal 2015 was $ 19,992,000 for the purchase of stb as described in note 3 to the consolidated financial statements . capital expenditures for fiscal 2015 were $ 17,243,000 ( of which $ 1,990,000 relates to the expansion of our china operations and $ 3,449,000 relates to the implementation of our global erp system ) . offsetting these uses of cash is $ 3,230,000 in net cash proceeds from the sale of marketable equity securities by our captive insurance company . the other use of cash for investing activities of $ 74,000 primarily includes proceeds from an insurance settlement of $ 64,000 and cash received from the sale of an asset of $ 116,000 offset by an increase in restricted cash related to the company 's captive insurance company of $ 250,000. cash flow provided ( used ) by financing activities net cash provided ( used ) by financing activities was $ 137,003,000 , $ ( 48,387,000 ) and$ 1,739,000 in fiscal 2016 , 2015 and 2014 , respectively .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash used by investing activities was $ 203,229,000 , $ 34,079,000 and $ 40,425,000 in fiscal 2016 , 2015 and 2014 , respectively . the most significant use of cash for investing activities relates to our acquisition of magnetek which totaled $ 182,467,000 , net of cash acquired . capital expenditures for fiscal 2016 totaled $ 22,320,000 , of which $ 5,400,000 related to the construction of the getzville corporate headquarters and national training facility . offsetting these uses of cash is $ 1,558,000 in net cash proceeds from the sale of marketable equity securities . the most significant net cash used for investing activities in fiscal 2015 was $ 19,992,000 for the purchase of stb as described in note 3 to the consolidated financial statements . capital expenditures for fiscal 2015 were $ 17,243,000 ( of which $ 1,990,000 relates to the expansion of our china operations and $ 3,449,000 relates to the implementation of our global erp system ) . offsetting these uses of cash is $ 3,230,000 in net cash proceeds from the sale of marketable equity securities by our captive insurance company . the other use of cash for investing activities of $ 74,000 primarily includes proceeds from an insurance settlement of $ 64,000 and cash received from the sale of an asset of $ 116,000 offset by an increase in restricted cash related to the company 's captive insurance company of $ 250,000. cash flow provided ( used ) by financing activities net cash provided ( used ) by financing activities was $ 137,003,000 , $ ( 48,387,000 ) and$ 1,739,000 in fiscal 2016 , 2015 and 2014 , respectively .
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Suspicious Activity Report : we have specific initiatives related to improved customer satisfaction , reduced defects , shortened lead times , improved inventory turns and on-time deliveries , reduced warranty costs , and improved working capital utilization . the initiatives are being driven by the continued implementation of our โ lean โ efforts which are fundamentally changing our manufacturing and business processes to be more responsive to customer demand and improving on-time delivery and productivity . in addition to โ lean , โ we are working to achieve these strategic initiatives through product simplification , the creation of centers of excellence , and improved supply chain management . we are also aggressively pursuing cost reduction opportunities to enhance future margins . we continuously monitor market prices of steel . we purchase approximately $ 30,000,000 to $ 40,000,000 of steel annually in a variety of forms including rod , wire , bar , structural and others . generally , as we experience fluctuations in our costs , we reflect them as price increases or surcharges to our customers with the goal of being margin neutral . we are also looking for opportunities for growth via strategic acquisitions or joint ventures . the focus of our acquisition strategy centers on product line expansion in alignment with our existing core product offering and opportunities for non-u.s. market penetration . we operate in a highly competitive and global business environment . we face a variety of opportunities in those markets and geographies , including trends toward increased utilization of the global labor force and the expansion of market opportunities in asia and other emerging markets . while we continue to execute our long-term growth strategy , we are supported by our solid capital structure , including our cash position and flexible debt structure . 28 results of operations fiscal 2016 compared to 2015 fiscal 2016 sales were $ 597,103,000 , an increase of 3.0 % , or $ 17,460,000 compared with fiscal 2015 sales of $ 579,643,000 . sales for the year were positively impacted by $ 74,267,000 due to acquisitions and $ 5,605,000 by price increases . sales for the year were negatively impacted $ 33,082,000 due to a decrease in sales volume . the decline in sales volume was due to industrial recessions caused by weakness in oil & gas , mining , heavy oem , and commercial construction markets affecting our north american hoist and rigging and latin american operations . unfavorable foreign currency translation reduced sales by $ 29,330,000 . our gross profit was $ 187,263,000 and $ 181,607,000 or 31.4 % and 31.3 % of net sales in fiscal 2016 and 2015 , respectively . the fiscal 2016 increase in gross profit of $ 5,656,000 or 3.1 % is the result of $ 24,316,000 from our recent acquisitions , $ 5,605,000 in price increases , $ 769,000 in reduced material costs , and $ 830,000 in reduced plant consolidation activities , offset by $ 11,438,000 in decreased volume , $ 3,337,000 in lower productivity due to reduced fixed cost absorption and inventory adjustments , net of other manufacturing costs , $ 2,051,000 in increased product liability costs , and $ 429,000 in facility impairment costs for a property held for sale . the translation of foreign currencies had an unfavorable impact on gross profit of $ 8,609,000. selling expenses were $ 72,858,000 and $ 69,819,000 or 12.2 % and 12.0 % of net sales in fiscal years 2016 and 2015 , respectively . the acquisitions of magnetek and stb added an additional $ 7,640,000 in selling expense for the year ended march 31 , 2016. the consolidation of two warehouses and the closure of another added $ 859,000 to selling costs . additionally , foreign currency translation had a $ 5,036,000 favorable impact on selling expenses . general and administrative expenses were $ 68,811,000 and $ 54,874,000 or 11.5 % and 9.5 % of net sales in fiscal 2016 and 2015 , respectively . the fiscal 2016 increase was primarily the result of magnetek acquisition transaction costs of $ 5,746,000 and acquisition-related severance costs of $ 2,300,000. in addition , magnetek and stb added $ 5,774,000 in recurring general and administrated expenses . additional increases are the result of lower information technology salaries capitalized as part of the global erp systems project as well as general inflationary increases . foreign currency translation had a $ 2,622,000 favorable impact on general and administrative expenses . amortization of intangibles was $ 5,024,000 and $ 2,266,000 in fiscal 2016 and 2015 , respectively . the increase relates to additional amortization of intangibles related to the magnetek and stb acquisitions . interest and debt expense was $ 7,904,000 and $ 12,390,000 or 1.3 % and 2.1 % of net sales in fiscal 2016 and 2015 , respectively . the decrease in interest and debt expense relates to the redemption of the 7 7/8 % notes in the fourth quarter of fiscal 2015 with the lower interest bearing term loan despite the increased borrowings used to fund the magnetek purchase beginning in the second quarter of fiscal 2016. the fiscal 2015 cost of bond redemption of $ 8,567,000 relates to the call premium and write off of unamortized deferred financing costs associated with our 7 7/8 % notes which were redeemed in february 2015. this transaction is discussed in more detail in the liquidity and capital resources section . there were no similar transactions in fiscal 2016. investment income of $ 796,000 and $ 2,725,000 , in fiscal 2016 and 2015 , respectively , related to earnings on marketable securities held in the company 's wholly owned captive insurance subsidiary . foreign currency exchange loss ( gain ) was $ 2,215,000 and $ 863,000 in fiscal 2016 and 2015 , respectively , as a result of foreign currency volatility related to foreign currency denominated purchases and intercompany debt . story_separator_special_tag if interpreted differently under different conditions or circumstances , changes in our estimates could result in material changes to our reported results . we have identified below the accounting policies involving estimates that are critical to our financial statements . other accounting policies are more fully described in note 2 of our consolidated financial statements . revenue recognition . sales are recorded when title passes to the customer which is generally at the time of shipment to the customer . the company performs ongoing credit evaluations of its customers ' financial condition , but generally does not require collateral to support customer receivables . the credit risk is controlled through credit approvals , limits and monitoring procedures . accounts receivable are reported at net realizable value and do not accrue interest . sales tax is excluded from revenue . pension and other postretirement benefits . the determination of the obligations and expense for pension and postretirement benefits is dependent on our selection of certain assumptions that are used by actuaries in calculating such amounts . those assumptions are disclosed in note 12 to our fiscal 2016 consolidated financial statements and include the discount rates , expected long-term rate of return on plan assets and rates of future increases in compensation and healthcare costs . changes in these assumptions can result in the calculation of different plan expense and liability amounts . further , actual experience can differ from the assumptions and these differences are typically accounted for as actuarial gains or losses that are amortized over future periods . the weighted average pension discount rate assumptions of 4.03 % , 3.83 % , and 4.60 % , as of march 31 , 2016 , 2015 , and 2014 , respectively , are based on long-term aa rated corporate and municipal bond rates . at september 2 , 2015 , the company used a discount rate assumption of 4.30 % in valuing the pension plan obligation acquired in the magnetek acquisition . the change in the discount rate at march 31 , 2016 did not result in a significant change in the total projected benefit obligation . the company adopted updated mortality tables in calculating its u.s. pension obligation . the change in mortality tables resulted in a $ 5,700,000 increase in the projected benefit obligation . the rate of return on plan assets assumptions of 7.22 % for the year ended march 31 , 2016 , and 7.50 % for the years ended march 31 , 2015 and 2014 is based on the targeted plan asset allocation ( approximately 65 % equities and 35 % fixed income ) and their long-term historical returns . our under-funded status for all pension plans as of march 31 , 2016 and 2015 was $ 103,279,000 and $ 57,339,000 , or 24.5 % and 21.9 % of the projected benefit obligation , respectively . our pension contributions during fiscal 2016 and 2015 were approximately $ 5,936,000 and $ 11,013,000 , respectively . the under-funded status may result in future pension expense increases . pension benefit for the march 31 , 2017 fiscal year is expected to approximate $ 983,000 , comparable to the fiscal 2016 benefit of $ 1,208,000 . pension funding contributions for the march 31 , 2017 fiscal year are expected to approximate $ 5,961,000 . the weighted-average compensation increase assumption of 0.44 % as of march 31 , 2016 and 2.30 % and 2.00 % as of march 31 , 2015 and 2014 , respectively is based on expected wage trends and historical patterns . the healthcare costs inflation assumptions of 6.8 % for fiscal 2016 and 7.0 % for fiscal 2015 and 2014 , respectively , are based on anticipated trends . while the healthcare inflation rate assumptions have been decreasing , healthcare costs continue to outpace inflation in the u.s. 35 insurance reserves . our accrued general and product liability reserves as described in note 15 to consolidated financial statements involve actuarial techniques including the methods selected to estimate ultimate claims , and assumptions including emergence patterns , payment patterns , initial expected losses and increased limit factors . these actuarial estimates are subject to a high degree of uncertainty due to a variety of factors , including extended lag time in the reporting and resolution of claims , trends or changes in claim settlement patterns , insurance industry practices , and legal interpretations . changes to these estimates could result in material changes to the amount of expense and liabilities recorded in our financial statements . further , actual costs could differ significantly from the estimated amounts . adjustments to estimated reserves are recorded in the period in which the change in estimate occurs . other insurance reserves such as workers compensation and group health insurance are based on actual historical and current claim data provided by third party administrators or internally maintained . goodwill impairment testing . our goodwill balance of $ 170,716,000 as of march 31 , 2016 is subject to impairment testing . we test goodwill for impairment at least annually , as of the end of february , and more frequently whenever events occur or circumstances change that indicate there may be impairment . these events or circumstances could include a significant long-term adverse change in the business climate , poor indicators of operating performance , or a sale or disposition of a significant portion of a reporting unit . we test goodwill at the reporting unit level , which is one level below our operating segment . we identify our reporting units by assessing whether the components of our operating segment constitute businesses for which discrete financial information is available and segment management regularly reviews the operating results of those components . we also aggregate components that have similar economic characteristics into single reporting units ( for example , similar products and / or services , similar long-term financial results , product processes , classes of customers , or in circumstances where the
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2,392 | โ in addition , even if our results of operations , financial condition and liquidity , and the developments in our business and the industry in which we operate are consistent with the forward-looking statements contained in this annual report , they may not be predictive of results or developments in future periods . we caution readers not to place undue reliance on any forward-looking statements made by us , which speak only as of the date they are made . we disclaim any obligation , except as specifically required by law and the rules of the sec to publicly update or revise any such statements to reflect any change in our expectations or in events , conditions or circumstances on which any such statements may be based , or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements . overview we are a clinical-stage biotechnology company focused on pioneering a new approach to treat complex diseases and improve health using endogenous metabolic modulator , or emm , compositions . our product candidates are comprised of multiple emms that are engineered in distinct combinations and ratios with the goal of simultaneously impacting multiple biological pathways . our pipeline includes our lead therapeutic candidates : axa1665 for the reduction in risk of recurrent overt hepatic encephalopathy , or ohe , and axa1125 for non-alcoholic steatohepatitis , or nash . using our development platform , we have efficiently designed product candidates that are comprised of amino acids and their derivatives , which have a general history of safe use . the orally administered emm compositions that we have tested to date have shown the potential to generate multifactorial effects in our initial clinical studies . to date , we have funded our operations with proceeds from the sale of preferred stock and common stock , and borrowing of debt . since our inception , we have incurred significant operating losses . our ability to generate product revenue sufficient to achieve profitability will depend heavily on the successful development and eventual commercialization of one or more of our current or future product candidates . our net losses were $ 56.5 million and $ 59.0 million for the years ended december 31 , 2020 and 2019 , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 272.6 million . we expect to continue to incur significant expenses for at least the next several years as we continue to develop our product candidates . as a result , we will need substantial additional funding to support our continuing operations and pursue our growth strategy . until such time as we can generate significant revenue from product sales , if ever , we expect to finance our operations through a combination of equity offerings , debt financings , strategic alliances and marketing and licensing arrangements . we may be unable to raise additional funds or enter into such other agreements or arrangements when needed on favorable terms , or at all . if we fail to raise capital or enter into such agreements as , and when , needed , we may have to significantly delay , scale back or discontinue the development and commercialization of one or more of our product candidates or delay our pursuit of potential in-licenses or acquisitions . because of the numerous risks and uncertainties associated with product development , we are unable to predict the timing or amount of increased expenses or when or if we will be able to achieve or maintain profitability . even if we are able to generate product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . 105 table of contents as of december 31 , 2020 , we had cash , cash equivalents , and marketable securities of $ 107.3 million . we believe that our existing cash , cash equivalents , and marketable securities as of december 31 , 2020 will enable us to fund our operating expenses , capital expenditure requirements and debt service payments for at least the next 12 months following the filing date of this annual report on form 10-k. we have based this estimate on assumptions that may prove to be wrong , and we could exhaust our available capital resources sooner than we expect . see โ โliquidity and capital resources . โ to finance our operations significantly beyond that point , we will need to raise additional capital , which can not be assured . the extent to which covid-19 impacts our business , operations or financial results will depend on future developments , which are highly uncertain and can not be predicted with confidence , such as the duration of the pandemic , new information that may emerge concerning the severity of covid-19 or the nature or effectiveness of actions to contain covid-19 or treat its impact , among others . we can not presently predict the scope and severity of any potential business shutdowns or disruptions . if we or any of the third parties with whom we engage , however , were to experience shutdowns or other business disruptions , our ability to conduct our business in the manner and on the timelines presently planned could be materially and negatively affected , which could have a material adverse impact on our business , results of operations and financial condition . story_separator_special_tag we also intend to continue to evaluate options to refinance our outstanding long-term debt . the amounts involved in any such transactions , individually or in the aggregate , may be material . critical accounting policies and significant judgments and estimates our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the united states . the preparation of our consolidated financial statements and related disclosures requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenue , costs and expenses , and the disclosure of contingent assets and liabilities in our financial statements . we base our estimates on historical experience , known trends and events and various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . we evaluate our estimates and assumptions on an ongoing basis . our actual results may differ from these estimates under different assumptions or conditions . while our significant accounting policies are described in more detail in note 2 to our consolidated financial statements appearing elsewhere in this annual report , we believe that the following accounting policies are those most critical to the judgments and estimates used in the preparation of our consolidated financial statements . 111 table of contents accrued research and development expenses as part of the process of preparing our consolidated financial statements , we are required to estimate our accrued research and development expenses . this process involves reviewing open contracts and purchase orders , communicating with our personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual costs . the majority of our service providers invoice us in arrears for services performed , on a pre-determined schedule or when contractual milestones are met ; however , some require advanced payments . we make estimates of our accrued expenses as of each balance sheet date in the consolidated financial statements based on facts and circumstances known to us at that time . we periodically confirm the accuracy of these estimates with the service providers and make adjustments if necessary . examples of estimated accrued research and development expenses include fees paid to vendors including cros and cmos for research and development services . we base our expenses related to research and development on our estimates of the services received and efforts expended pursuant to quotes and contracts with cros that conduct and manage clinical trials , clinical studies and preclinical development activities on our behalf . the financial terms of these agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . there may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the expense . payments under some of these contracts depend on factors such as the successful enrollment of patients or subjects and the completion of clinical milestones . in accruing service fees , we estimate the time period over which services will be performed and the level of effort to be expended in each period . if the actual timing of the performance of services or the level of effort varies from the estimate , we adjust the accrual or the amount of prepaid expenses accordingly . although we do not expect our estimates to be materially different from amounts actually incurred , our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period . to date , there have not been any material adjustments to our prior estimates of accrued research and development expenses . stock-based compensation we estimate the fair value of our stock-based awards to employees and non-employees using the black-scholes option-pricing model , which requires the input of highly subjective assumptions , including ( a ) the expected volatility of our stock , ( b ) the expected term of the award , ( c ) the risk-free interest rate , and ( d ) expected dividends . due to the lack of company-specific historical and implied volatility data , we base our estimate of expected volatility on the historical volatility of a group of companies in the pharmaceutical and biotechnology industries in a similar stage of development as us and that are publicly traded . for these analyses , we have selected companies with comparable characteristics to ours including enterprise value , risk profiles and with historical share price information sufficient to meet the expected life of the stock-based awards . we compute the historical volatility data using the daily closing prices for the selected companies ' shares during the equivalent period of the calculated expected term of our stock-based awards . we will continue to apply this process until a sufficient amount of historical information regarding the volatility of our own stock price becomes available . we have estimated the expected life of our employee stock options using the `` simplified `` method , whereby , the expected life equals the average of the vesting term and the original contractual term of the option . the risk-free interest rates for periods within the expected life of the option are based on the u.s. treasury yield curve in effect during the period the options were granted . we have elected to account for forfeitures as they occur . off-balance sheet arrangements we did not have during the periods presented , and we do not have , any off-balance sheet arrangements , as defined under applicable sec rules and regulations . 112 table of contents
| liquidity and capital resources since our inception , we have not generated any revenue and have incurred significant operating losses and negative cash flows from our operations . we have funded our operations to date primarily with proceeds from the sale of preferred stock and common stock , and borrowings under our loan and security agreement . on may 18 , 2020 , we completed a follow-on public offering pursuant to which we issued an aggregate of 12,650,000 shares of our common stock for net proceeds of approximately $ 55.9 million after deducting the underwriting discounts and commissions and other offering expenses . on june 5 , 2020 , we entered into a sales agreement with svb leerink llc ( โ svb leerink โ ) pursuant to which we may offer and sell shares of our common stock having an aggregate offering price of up to $ 35.0 million from time to time through svb leerink , acting as our agent ( the โ atm offering โ ) . during the year ended december 31 , 2020 , we sold an aggregate of 1,721,267 shares of common stock under the atm offering for net cash proceeds of $ 9.3 million after deducting commissions and expenses of $ 0.5 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources since our inception , we have not generated any revenue and have incurred significant operating losses and negative cash flows from our operations . we have funded our operations to date primarily with proceeds from the sale of preferred stock and common stock , and borrowings under our loan and security agreement . on may 18 , 2020 , we completed a follow-on public offering pursuant to which we issued an aggregate of 12,650,000 shares of our common stock for net proceeds of approximately $ 55.9 million after deducting the underwriting discounts and commissions and other offering expenses . on june 5 , 2020 , we entered into a sales agreement with svb leerink llc ( โ svb leerink โ ) pursuant to which we may offer and sell shares of our common stock having an aggregate offering price of up to $ 35.0 million from time to time through svb leerink , acting as our agent ( the โ atm offering โ ) . during the year ended december 31 , 2020 , we sold an aggregate of 1,721,267 shares of common stock under the atm offering for net cash proceeds of $ 9.3 million after deducting commissions and expenses of $ 0.5 million .
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Suspicious Activity Report : โ in addition , even if our results of operations , financial condition and liquidity , and the developments in our business and the industry in which we operate are consistent with the forward-looking statements contained in this annual report , they may not be predictive of results or developments in future periods . we caution readers not to place undue reliance on any forward-looking statements made by us , which speak only as of the date they are made . we disclaim any obligation , except as specifically required by law and the rules of the sec to publicly update or revise any such statements to reflect any change in our expectations or in events , conditions or circumstances on which any such statements may be based , or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements . overview we are a clinical-stage biotechnology company focused on pioneering a new approach to treat complex diseases and improve health using endogenous metabolic modulator , or emm , compositions . our product candidates are comprised of multiple emms that are engineered in distinct combinations and ratios with the goal of simultaneously impacting multiple biological pathways . our pipeline includes our lead therapeutic candidates : axa1665 for the reduction in risk of recurrent overt hepatic encephalopathy , or ohe , and axa1125 for non-alcoholic steatohepatitis , or nash . using our development platform , we have efficiently designed product candidates that are comprised of amino acids and their derivatives , which have a general history of safe use . the orally administered emm compositions that we have tested to date have shown the potential to generate multifactorial effects in our initial clinical studies . to date , we have funded our operations with proceeds from the sale of preferred stock and common stock , and borrowing of debt . since our inception , we have incurred significant operating losses . our ability to generate product revenue sufficient to achieve profitability will depend heavily on the successful development and eventual commercialization of one or more of our current or future product candidates . our net losses were $ 56.5 million and $ 59.0 million for the years ended december 31 , 2020 and 2019 , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 272.6 million . we expect to continue to incur significant expenses for at least the next several years as we continue to develop our product candidates . as a result , we will need substantial additional funding to support our continuing operations and pursue our growth strategy . until such time as we can generate significant revenue from product sales , if ever , we expect to finance our operations through a combination of equity offerings , debt financings , strategic alliances and marketing and licensing arrangements . we may be unable to raise additional funds or enter into such other agreements or arrangements when needed on favorable terms , or at all . if we fail to raise capital or enter into such agreements as , and when , needed , we may have to significantly delay , scale back or discontinue the development and commercialization of one or more of our product candidates or delay our pursuit of potential in-licenses or acquisitions . because of the numerous risks and uncertainties associated with product development , we are unable to predict the timing or amount of increased expenses or when or if we will be able to achieve or maintain profitability . even if we are able to generate product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . 105 table of contents as of december 31 , 2020 , we had cash , cash equivalents , and marketable securities of $ 107.3 million . we believe that our existing cash , cash equivalents , and marketable securities as of december 31 , 2020 will enable us to fund our operating expenses , capital expenditure requirements and debt service payments for at least the next 12 months following the filing date of this annual report on form 10-k. we have based this estimate on assumptions that may prove to be wrong , and we could exhaust our available capital resources sooner than we expect . see โ โliquidity and capital resources . โ to finance our operations significantly beyond that point , we will need to raise additional capital , which can not be assured . the extent to which covid-19 impacts our business , operations or financial results will depend on future developments , which are highly uncertain and can not be predicted with confidence , such as the duration of the pandemic , new information that may emerge concerning the severity of covid-19 or the nature or effectiveness of actions to contain covid-19 or treat its impact , among others . we can not presently predict the scope and severity of any potential business shutdowns or disruptions . if we or any of the third parties with whom we engage , however , were to experience shutdowns or other business disruptions , our ability to conduct our business in the manner and on the timelines presently planned could be materially and negatively affected , which could have a material adverse impact on our business , results of operations and financial condition . story_separator_special_tag we also intend to continue to evaluate options to refinance our outstanding long-term debt . the amounts involved in any such transactions , individually or in the aggregate , may be material . critical accounting policies and significant judgments and estimates our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the united states . the preparation of our consolidated financial statements and related disclosures requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenue , costs and expenses , and the disclosure of contingent assets and liabilities in our financial statements . we base our estimates on historical experience , known trends and events and various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . we evaluate our estimates and assumptions on an ongoing basis . our actual results may differ from these estimates under different assumptions or conditions . while our significant accounting policies are described in more detail in note 2 to our consolidated financial statements appearing elsewhere in this annual report , we believe that the following accounting policies are those most critical to the judgments and estimates used in the preparation of our consolidated financial statements . 111 table of contents accrued research and development expenses as part of the process of preparing our consolidated financial statements , we are required to estimate our accrued research and development expenses . this process involves reviewing open contracts and purchase orders , communicating with our personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual costs . the majority of our service providers invoice us in arrears for services performed , on a pre-determined schedule or when contractual milestones are met ; however , some require advanced payments . we make estimates of our accrued expenses as of each balance sheet date in the consolidated financial statements based on facts and circumstances known to us at that time . we periodically confirm the accuracy of these estimates with the service providers and make adjustments if necessary . examples of estimated accrued research and development expenses include fees paid to vendors including cros and cmos for research and development services . we base our expenses related to research and development on our estimates of the services received and efforts expended pursuant to quotes and contracts with cros that conduct and manage clinical trials , clinical studies and preclinical development activities on our behalf . the financial terms of these agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . there may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the expense . payments under some of these contracts depend on factors such as the successful enrollment of patients or subjects and the completion of clinical milestones . in accruing service fees , we estimate the time period over which services will be performed and the level of effort to be expended in each period . if the actual timing of the performance of services or the level of effort varies from the estimate , we adjust the accrual or the amount of prepaid expenses accordingly . although we do not expect our estimates to be materially different from amounts actually incurred , our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period . to date , there have not been any material adjustments to our prior estimates of accrued research and development expenses . stock-based compensation we estimate the fair value of our stock-based awards to employees and non-employees using the black-scholes option-pricing model , which requires the input of highly subjective assumptions , including ( a ) the expected volatility of our stock , ( b ) the expected term of the award , ( c ) the risk-free interest rate , and ( d ) expected dividends . due to the lack of company-specific historical and implied volatility data , we base our estimate of expected volatility on the historical volatility of a group of companies in the pharmaceutical and biotechnology industries in a similar stage of development as us and that are publicly traded . for these analyses , we have selected companies with comparable characteristics to ours including enterprise value , risk profiles and with historical share price information sufficient to meet the expected life of the stock-based awards . we compute the historical volatility data using the daily closing prices for the selected companies ' shares during the equivalent period of the calculated expected term of our stock-based awards . we will continue to apply this process until a sufficient amount of historical information regarding the volatility of our own stock price becomes available . we have estimated the expected life of our employee stock options using the `` simplified `` method , whereby , the expected life equals the average of the vesting term and the original contractual term of the option . the risk-free interest rates for periods within the expected life of the option are based on the u.s. treasury yield curve in effect during the period the options were granted . we have elected to account for forfeitures as they occur . off-balance sheet arrangements we did not have during the periods presented , and we do not have , any off-balance sheet arrangements , as defined under applicable sec rules and regulations . 112 table of contents
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2,393 | sce proposes to work with cities , employers , apartment owners , charging equipment manufacturers and others to deploy up to 30,000 qualified charging stations at locations where cars may be parked for four hours or more . under the proposal , sce would build , own and maintain the electric infrastructure needed to serve the qualified charging stations at participating customer locations . participating customers would install , own , maintain , and operate the charging stations . the program proposes to begin with a $ 22 million pilot for installation of up to 1,500 chargers as well as a supporting market education effort . the results of this first phase will help shape phase 2 of the program , which is expected to cost an additional $ 333 million over the next five years . sce requested cpuc approval for its pilot by june 2015 , and for phase 2 by june 2016. the cpuc issued a decision in december 2014 that reversed a prior prohibition on utility ownership of electric vehicle infrastructure and implemented a case-by-case evaluation requirement for proposed utility investments in electric vehicle infrastructure . capital program total capital expenditures ( including accruals ) were $ 4.0 billion in 2014 and $ 3.5 billion in 2013. sce 's year-end rate base ( excluding san onofre ) was $ 23.3 billion at december 31 , 2014 compared to $ 21.1 billion at december 31 , 2013. sce forecasts capital expenditures in the range of $ 11.8 billion to $ 13.4 billion for 2015 โ 2017. actual capital spending will be affected by : changes in regulatory , environmental and engineering design requirements ; permitting and project delays ; cost and availability of labor , equipment and materials ; and other factors . these factors as well as major projects are discussed further under `` โliquidity and capital resourcesโsceโcapital investment plan . `` 5 regulatory matters 2015 general rate case in january 2015 , sce updated its forecasted 2015 base rate revenue requirement request to $ 5.713 billion , which would be an $ 80 million increase over currently authorized base rate revenue . the updated base rate revenue requirement request also proposed post-test year increases in 2016 and 2017 of $ 286 million and $ 315 million , respectively . the original request , filed in november 2013 , included a 2015 base rate revenue requirement request of $ 6.462 billion , which was subsequently reduced to remove costs related to four corners and san onofre , as directed by the aljs assigned to the grc and reflect changes after sce 's rebuttal testimony . the ora , recommended that sce 's originally requested 2015 base rate revenue requirement be decreased by approximately $ 607 million , comprised of approximately $ 302 million in operations and maintenance expense reductions and approximately $ 305 million in capital-related revenue requirement reductions . turn recommended that sce 's originally requested 2015 base rate revenue requirements be decreased by approximately $ 412 million , comprised of approximately $ 131 million in operations and maintenance expense reductions and approximately $ 281 million in capital-related revenue requirement reductions . turn 's recommendation also included a reduction in revenue requirement related to income tax repair deductions that originated during the period 2012 โ 2014. a final 2015 grc decision is not expected until later in 2015. sce expects to recognize revenue based on the 2014 authorized revenue requirement until a grc decision is issued . the cpuc has approved the establishment of a grc memorandum account , which will make the 2015 revenue requirement ultimately adopted by the cpuc effective as of january 1 , 2015. sce can not predict the revenue requirement the cpuc will ultimately authorize or provide assurance on the timing of a final decision . cost of capital in december 2014 , the cpuc granted a one-year extension of the date to april 2016 when sce must file the next cost of capital mechanism application , due to the stability of interest rates since the last cost of capital filing in 2012. as a result , sce 's current authorized cost of capital mechanism is extended through 2016 , subject to the trigger mechanism . the cost of capital trigger mechanism provides for an automatic annual adjustment to sce 's authorized cost of capital in september if the utility bond index changes beyond certain thresholds . the adjustment would apply to the following calendar year . the return on common equity will remain at 10.45 % for 2015 and 2016 , subject to any index changes that exceed the thresholds for 2016. edison international dividend policy in december 2014 , edison international declared a 17.6 % increase to the annual dividend rate from $ 1.42 per share to $ 1.67 per share . edison international plans to increase its dividends to common shareholders to its target payout ratio of approximately 45 % to 55 % of sce earnings in steps over time . permanent retirement of san onofre and san onofre oii settlement replacement steam generators were installed at san onofre in 2010 and 2011. on january 31 , 2012 , a leak suddenly occurred in one of the heat transfer tubes in san onofre 's unit 3 steam generators . the unit was safely taken off-line and subsequent inspections revealed excessive tube wear . unit 2 was off-line for a planned outage when areas of unexpected tube wear were also discovered . story_separator_special_tag 168 million during the year ended december 31 , 2014 related to changes in estimates of the net impact of retaining income tax attributes less the above payment obligations and assumed liabilities . see `` notes to consolidated financial statementsโnote 15. discontinued operations . `` as part of the settlement , edison international retained ownership interest of eme and tax attributes of approximately $ 1.2 billion . edison international expects to realize the tax attributes over time , depending upon the tax position of edison international . 9 results of operations sce sce 's results of operations are derived mainly through two sources : utility earning activities โ representing revenue authorized by the cpuc and ferc which is intended to provide sce a reasonable opportunity to recover its costs and earn a return on its net investment in generation , transmission and distribution assets . the annual revenue requirements are comprised of authorized operation and maintenance costs , depreciation , taxes and a return consistent with the capital structure . also , included in utility earnings activities are revenues or penalties related to incentive mechanisms , other operating revenue , and regulatory charges or disallowances . utility cost-recovery activities โ representing cpuc- and ferc-authorized balancing accounts which allow for recovery of specific project or program costs , subject to reasonableness review or compliance with upfront standards . utility cost-recovery activities include rates which provide recovery , subject to reasonableness review of , among other things , fuel costs , purchased power costs , public purpose related-program costs ( including energy efficiency and demand-side management programs ) and certain operation and maintenance expenses . the following table is a summary of sce 's results of operations for the periods indicated . replace_table_token_4_th 1 see use of non-gaap financial measures in `` management overviewโhighlights of operating results . `` 10 utility earning activities 2014 vs 2013 utility earning activities were primarily affected by the following : higher operating revenue of $ 229 million due to : an increase in cpuc-related revenue of $ 370 million primarily related to the increase in authorized revenue to support rate base growth , including $ 30 million of additional revenue from revisions to its 2012 โ 2014 grc revenue requirement related to deferred income taxes . an increase in ferc-related revenue of $ 130 million primarily related to rate base growth and higher operating costs , including $ 19 million of additional revenue from a change in estimate under the ferc formula rate mechanism . energy efficiency incentive awards were $ 22 million in 2014 compared to $ 14 million in 2013. generator settlements of $ 15 million . see `` notes to consolidated financial statementsโnote 10. regulatory assets and liabilitiesโregulatory balancing accounts . `` a decrease in san onofre-related estimated revenue of $ 188 million , as discussed below . a decrease in four corners-related revenue of $ 105 million due to the sale of sce 's ownership interest in the four corners generating station in december 2013 ( primarily offset in operation and maintenance and depreciation expense as indicated below ) . lower operation and maintenance expense of $ 242 million primarily due to : a decrease in san onofre-related expense of $ 179 million as discussed below and a decrease in four corners-related expense of $ 60 million due to the sale in december 2013. a decrease in severance costs of $ 34 million ( excluding san onofre ) . in 2014 and 2013 , sce commenced multiple efforts to reduce its workforce in order to reflect sce 's strategic direction to optimize its cost structure , moderate customer rate increases and align its cost structure with its peers . severance costs related to workforce reductions ( excluding severance related to the permanent retirement of san onofre unit 2 and 3 recovered in the san onofre oii settlement agreement ) were $ 4 million in 2014 and $ 38 million in 2013 ( see `` notes to consolidated financial statementsโnote 8. compensation and benefit plansโworkforce reductions `` ) . sce is continuing its efforts to improve operational efficiency . these efforts may lead to additional severance or other charges which can not be estimated at this time . a decrease of $ 30 million primarily related to lower customer service and outside service costs , as well as $ 20 million of planned outage costs at mountainview in 2013. an increase of $ 85 million of higher operating costs primarily related to transmission and distribution , information technology , legal , safety and insurance costs . higher depreciation , decommissioning and amortization expense of $ 98 million due to a $ 155 million increase in depreciation mainly related to transmission and distribution investments , partially offset by a decrease in san onofre-related expense of $ 14 million discussed below and lower four corners-related expense of $ 45 million due to the sale in december 2013. impairment charge of $ 163 million ( $ 72 million after-tax ) in 2014 related to the san onofre oii settlement agreement , as discussed below . higher interest expense of $ 9 million primarily due to lower capitalized interest ( afudc debt ) and higher long-term debt balances to support rate base growth . lower other income and expenses of $ 5 million primarily due to lower afudc equity income related to lower afudc rates and lower construction work in progress balances in 2014 , lower interest income and higher other expenses , offset by $ 7 million in sales tax refund related to san onofre discussed below and lower penalties . in 2014 and 2013 , sce incurred penalties of $ 15 million and $ 20 million , respectively , resulting from the san bernardino and san gabriel settlements in 2014 and malibu fire order instituting investigation settlement in 2013. see `` notes to consolidated financial statementsโnote 14. interest and other income and other expenses . `` 11 higher income taxes of $ 195 million primarily
| net cash used by continuing operating activities net cash from continuing operating activities decreased $ 331 million in 2014 compared to 2013 due to : $ 225 million initial cash payment to the reorganization trust in april 2014 related to the eme settlement agreement , see `` management overviewโresolution of uncertainty related to eme in bankruptcy '' for further information ; net payments of $ 120 million to the irs , which included a $ 189 million deposit related to open tax years 2003 through 2006 ; and the timing of payments and receipts relating to interest and operating costs . net cash from continuing operating activities increased $ 34 million in 2013 compared to 2012 primarily due to the timing of payments and receipts relating to interest , operating costs and income taxes . net cash provided by continuing financing activities net cash provided by continuing financing activities were as follows : replace_table_token_15_th 1 includes $ 5.1 million debt financing for edison energy , see `` notes to consolidated financial statementsโnote 5. debt and credit agreementsโproject financings . '' 23 net cash provided ( used ) by continuing investing activities net cash used by continuing investing activities during 2014 relate to edison energy 's capital expenditures of $ 49 million . net cash provided by continuing investing activities during 2013 relate to edison international 's investment of $ 25 million in equity interests of competitive energy-related businesses , including the acquisition of socore energy llc , a distributed solar developer focused on commercial rooftop installations . contractual obligations and contingencies contractual obligations edison international parent and other and sce 's contractual obligations as of december 31 , 2014 , for the years 2015 through 2019 and thereafter are estimated below . replace_table_token_16_th 1 for additional details , see `` notes to consolidated financial statementsโnote 5. debt and credit agreements . '' amount includes interest payments totaling $ 8.75 billion and $ 36 million over applicable period of the debt for sce and edison international parent and other , respectively . 2 certain power purchase agreements entered into with independent power producers are treated as operating or capital leases . for further discussion , see `` notes to consolidated financial statementsโnote 11. commitments and contingencies . ''
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash used by continuing operating activities net cash from continuing operating activities decreased $ 331 million in 2014 compared to 2013 due to : $ 225 million initial cash payment to the reorganization trust in april 2014 related to the eme settlement agreement , see `` management overviewโresolution of uncertainty related to eme in bankruptcy '' for further information ; net payments of $ 120 million to the irs , which included a $ 189 million deposit related to open tax years 2003 through 2006 ; and the timing of payments and receipts relating to interest and operating costs . net cash from continuing operating activities increased $ 34 million in 2013 compared to 2012 primarily due to the timing of payments and receipts relating to interest , operating costs and income taxes . net cash provided by continuing financing activities net cash provided by continuing financing activities were as follows : replace_table_token_15_th 1 includes $ 5.1 million debt financing for edison energy , see `` notes to consolidated financial statementsโnote 5. debt and credit agreementsโproject financings . '' 23 net cash provided ( used ) by continuing investing activities net cash used by continuing investing activities during 2014 relate to edison energy 's capital expenditures of $ 49 million . net cash provided by continuing investing activities during 2013 relate to edison international 's investment of $ 25 million in equity interests of competitive energy-related businesses , including the acquisition of socore energy llc , a distributed solar developer focused on commercial rooftop installations . contractual obligations and contingencies contractual obligations edison international parent and other and sce 's contractual obligations as of december 31 , 2014 , for the years 2015 through 2019 and thereafter are estimated below . replace_table_token_16_th 1 for additional details , see `` notes to consolidated financial statementsโnote 5. debt and credit agreements . '' amount includes interest payments totaling $ 8.75 billion and $ 36 million over applicable period of the debt for sce and edison international parent and other , respectively . 2 certain power purchase agreements entered into with independent power producers are treated as operating or capital leases . for further discussion , see `` notes to consolidated financial statementsโnote 11. commitments and contingencies . ''
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Suspicious Activity Report : sce proposes to work with cities , employers , apartment owners , charging equipment manufacturers and others to deploy up to 30,000 qualified charging stations at locations where cars may be parked for four hours or more . under the proposal , sce would build , own and maintain the electric infrastructure needed to serve the qualified charging stations at participating customer locations . participating customers would install , own , maintain , and operate the charging stations . the program proposes to begin with a $ 22 million pilot for installation of up to 1,500 chargers as well as a supporting market education effort . the results of this first phase will help shape phase 2 of the program , which is expected to cost an additional $ 333 million over the next five years . sce requested cpuc approval for its pilot by june 2015 , and for phase 2 by june 2016. the cpuc issued a decision in december 2014 that reversed a prior prohibition on utility ownership of electric vehicle infrastructure and implemented a case-by-case evaluation requirement for proposed utility investments in electric vehicle infrastructure . capital program total capital expenditures ( including accruals ) were $ 4.0 billion in 2014 and $ 3.5 billion in 2013. sce 's year-end rate base ( excluding san onofre ) was $ 23.3 billion at december 31 , 2014 compared to $ 21.1 billion at december 31 , 2013. sce forecasts capital expenditures in the range of $ 11.8 billion to $ 13.4 billion for 2015 โ 2017. actual capital spending will be affected by : changes in regulatory , environmental and engineering design requirements ; permitting and project delays ; cost and availability of labor , equipment and materials ; and other factors . these factors as well as major projects are discussed further under `` โliquidity and capital resourcesโsceโcapital investment plan . `` 5 regulatory matters 2015 general rate case in january 2015 , sce updated its forecasted 2015 base rate revenue requirement request to $ 5.713 billion , which would be an $ 80 million increase over currently authorized base rate revenue . the updated base rate revenue requirement request also proposed post-test year increases in 2016 and 2017 of $ 286 million and $ 315 million , respectively . the original request , filed in november 2013 , included a 2015 base rate revenue requirement request of $ 6.462 billion , which was subsequently reduced to remove costs related to four corners and san onofre , as directed by the aljs assigned to the grc and reflect changes after sce 's rebuttal testimony . the ora , recommended that sce 's originally requested 2015 base rate revenue requirement be decreased by approximately $ 607 million , comprised of approximately $ 302 million in operations and maintenance expense reductions and approximately $ 305 million in capital-related revenue requirement reductions . turn recommended that sce 's originally requested 2015 base rate revenue requirements be decreased by approximately $ 412 million , comprised of approximately $ 131 million in operations and maintenance expense reductions and approximately $ 281 million in capital-related revenue requirement reductions . turn 's recommendation also included a reduction in revenue requirement related to income tax repair deductions that originated during the period 2012 โ 2014. a final 2015 grc decision is not expected until later in 2015. sce expects to recognize revenue based on the 2014 authorized revenue requirement until a grc decision is issued . the cpuc has approved the establishment of a grc memorandum account , which will make the 2015 revenue requirement ultimately adopted by the cpuc effective as of january 1 , 2015. sce can not predict the revenue requirement the cpuc will ultimately authorize or provide assurance on the timing of a final decision . cost of capital in december 2014 , the cpuc granted a one-year extension of the date to april 2016 when sce must file the next cost of capital mechanism application , due to the stability of interest rates since the last cost of capital filing in 2012. as a result , sce 's current authorized cost of capital mechanism is extended through 2016 , subject to the trigger mechanism . the cost of capital trigger mechanism provides for an automatic annual adjustment to sce 's authorized cost of capital in september if the utility bond index changes beyond certain thresholds . the adjustment would apply to the following calendar year . the return on common equity will remain at 10.45 % for 2015 and 2016 , subject to any index changes that exceed the thresholds for 2016. edison international dividend policy in december 2014 , edison international declared a 17.6 % increase to the annual dividend rate from $ 1.42 per share to $ 1.67 per share . edison international plans to increase its dividends to common shareholders to its target payout ratio of approximately 45 % to 55 % of sce earnings in steps over time . permanent retirement of san onofre and san onofre oii settlement replacement steam generators were installed at san onofre in 2010 and 2011. on january 31 , 2012 , a leak suddenly occurred in one of the heat transfer tubes in san onofre 's unit 3 steam generators . the unit was safely taken off-line and subsequent inspections revealed excessive tube wear . unit 2 was off-line for a planned outage when areas of unexpected tube wear were also discovered . story_separator_special_tag 168 million during the year ended december 31 , 2014 related to changes in estimates of the net impact of retaining income tax attributes less the above payment obligations and assumed liabilities . see `` notes to consolidated financial statementsโnote 15. discontinued operations . `` as part of the settlement , edison international retained ownership interest of eme and tax attributes of approximately $ 1.2 billion . edison international expects to realize the tax attributes over time , depending upon the tax position of edison international . 9 results of operations sce sce 's results of operations are derived mainly through two sources : utility earning activities โ representing revenue authorized by the cpuc and ferc which is intended to provide sce a reasonable opportunity to recover its costs and earn a return on its net investment in generation , transmission and distribution assets . the annual revenue requirements are comprised of authorized operation and maintenance costs , depreciation , taxes and a return consistent with the capital structure . also , included in utility earnings activities are revenues or penalties related to incentive mechanisms , other operating revenue , and regulatory charges or disallowances . utility cost-recovery activities โ representing cpuc- and ferc-authorized balancing accounts which allow for recovery of specific project or program costs , subject to reasonableness review or compliance with upfront standards . utility cost-recovery activities include rates which provide recovery , subject to reasonableness review of , among other things , fuel costs , purchased power costs , public purpose related-program costs ( including energy efficiency and demand-side management programs ) and certain operation and maintenance expenses . the following table is a summary of sce 's results of operations for the periods indicated . replace_table_token_4_th 1 see use of non-gaap financial measures in `` management overviewโhighlights of operating results . `` 10 utility earning activities 2014 vs 2013 utility earning activities were primarily affected by the following : higher operating revenue of $ 229 million due to : an increase in cpuc-related revenue of $ 370 million primarily related to the increase in authorized revenue to support rate base growth , including $ 30 million of additional revenue from revisions to its 2012 โ 2014 grc revenue requirement related to deferred income taxes . an increase in ferc-related revenue of $ 130 million primarily related to rate base growth and higher operating costs , including $ 19 million of additional revenue from a change in estimate under the ferc formula rate mechanism . energy efficiency incentive awards were $ 22 million in 2014 compared to $ 14 million in 2013. generator settlements of $ 15 million . see `` notes to consolidated financial statementsโnote 10. regulatory assets and liabilitiesโregulatory balancing accounts . `` a decrease in san onofre-related estimated revenue of $ 188 million , as discussed below . a decrease in four corners-related revenue of $ 105 million due to the sale of sce 's ownership interest in the four corners generating station in december 2013 ( primarily offset in operation and maintenance and depreciation expense as indicated below ) . lower operation and maintenance expense of $ 242 million primarily due to : a decrease in san onofre-related expense of $ 179 million as discussed below and a decrease in four corners-related expense of $ 60 million due to the sale in december 2013. a decrease in severance costs of $ 34 million ( excluding san onofre ) . in 2014 and 2013 , sce commenced multiple efforts to reduce its workforce in order to reflect sce 's strategic direction to optimize its cost structure , moderate customer rate increases and align its cost structure with its peers . severance costs related to workforce reductions ( excluding severance related to the permanent retirement of san onofre unit 2 and 3 recovered in the san onofre oii settlement agreement ) were $ 4 million in 2014 and $ 38 million in 2013 ( see `` notes to consolidated financial statementsโnote 8. compensation and benefit plansโworkforce reductions `` ) . sce is continuing its efforts to improve operational efficiency . these efforts may lead to additional severance or other charges which can not be estimated at this time . a decrease of $ 30 million primarily related to lower customer service and outside service costs , as well as $ 20 million of planned outage costs at mountainview in 2013. an increase of $ 85 million of higher operating costs primarily related to transmission and distribution , information technology , legal , safety and insurance costs . higher depreciation , decommissioning and amortization expense of $ 98 million due to a $ 155 million increase in depreciation mainly related to transmission and distribution investments , partially offset by a decrease in san onofre-related expense of $ 14 million discussed below and lower four corners-related expense of $ 45 million due to the sale in december 2013. impairment charge of $ 163 million ( $ 72 million after-tax ) in 2014 related to the san onofre oii settlement agreement , as discussed below . higher interest expense of $ 9 million primarily due to lower capitalized interest ( afudc debt ) and higher long-term debt balances to support rate base growth . lower other income and expenses of $ 5 million primarily due to lower afudc equity income related to lower afudc rates and lower construction work in progress balances in 2014 , lower interest income and higher other expenses , offset by $ 7 million in sales tax refund related to san onofre discussed below and lower penalties . in 2014 and 2013 , sce incurred penalties of $ 15 million and $ 20 million , respectively , resulting from the san bernardino and san gabriel settlements in 2014 and malibu fire order instituting investigation settlement in 2013. see `` notes to consolidated financial statementsโnote 14. interest and other income and other expenses . `` 11 higher income taxes of $ 195 million primarily
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2,394 | the preparation of these consolidated financial statements requires us to make estimates and assumptions for the reported amounts of assets , liabilities , revenues , expenses and related disclosures . we believe the following policies to be critical to the judgments and estimates used in the preparation of our financial statements . revenue recognition revenue is recognized when earned and non-refundable , when payment is reasonably assured , and when there is no future obligation with respect to the revenue , in accordance with the terms prescribed in the applicable contract . multiple element arrangements our revenues are generated primarily through our license , development and commercialization agreement . these types of agreements generally contain multiple elements , or deliverables , which may include ( i ) licenses to our technology , ( ii ) research and development ( โ r & d โ ) activities to be performed on behalf of the collaborative partner , and ( iii ) in certain cases , services or 44 obligations in connection with the manufacturing or supply of preclinical and clinical material . payments to us under these arrangements typically include one or more of the following : non-refundable , upfront license fees ; funding of research and or development efforts ; milestone payments ; and royalties on future product sales . revenue under license , development and commercialization agreements is recognized based on the performance requirements of the contract . determinations of whether persuasive evidence of an arrangement exists and whether delivery has occurred or services have been rendered are based on management 's judgments regarding the fixed nature of the fees charged for deliverables and the collectability of those fees . should changes in conditions cause management to determine that these criteria are not met for any new or modified transactions , revenue recognized could be adversely affected . we recognize revenue related to license , development and commercialization agreements in accordance with the provisions of fasb asc topic 605-25 , revenue recognition - multiple-element arrangements . we evaluate all deliverables within an arrangement to determine whether or not they provide value on a stand-alone basis . based on this evaluation , the deliverables are separated into units of accounting . the arrangement consideration that is fixed or determinable at the inception of the arrangement is allocated to the separate units of accounting based on their relative selling prices . we may exercise significant judgment in determining whether a deliverable is a separate unit of accounting , as well as in estimating the selling prices of such unit of accounting . a change in such judgment could result in a significant change in the period in which revenue is recognized . to determine the selling price of a separate deliverable , we use the hierarchy as prescribed in asc topic 605-25 based on vendor-specific objective evidence ( โ vsoe โ ) , third-party evidence ( โ tpe โ ) or best estimate of selling price ( โ besp โ ) . vsoe is based on the price charged when the element is sold separately and is the price actually charged for that deliverable . tpe is determined based on third party evidence for a similar deliverable when sold separately and besp is the estimated selling price at which we would transact a sale if the elements of collaboration and license arrangements were sold on a stand-alone basis to the buyer . we may not be able to establish vsoe or tpe for the deliverables within collaboration and license arrangements , as we may not have a history of entering into such arrangements or selling the individual deliverables within such arrangements separately . in addition , there may be significant differentiation in these arrangements , which indicates that comparable third party pricing may not be available . we may determine that the selling price for the deliverables within collaboration and license arrangements should be determined using besp . the process for determining besp involves significant judgment on our part and includes consideration of multiple factors such as estimated direct expenses and other costs , and available data . payments or full reimbursements resulting from our r & d efforts for those arrangements where such efforts are considered as deliverables are recognized as the services are performed and are presented on a gross basis so long as there is persuasive evidence of an arrangement , the fee is fixed or determinable , and collection of the related receivable is reasonably assured . however , such funding is recognized as a reduction of r & d expense when we engage in a r & d project jointly with another entity , with both entities participating in project activities and sharing costs and potential benefits of the project . accordingly , reimbursement of r & d expenses pursuant to the cost-sharing provisions of our agreements with roche is recognized as a reduction to r & d expense . milestone revenue we account for milestones under asu no . 2010-17 , milestone method of revenue recognition . under the milestone method , contingent consideration received from the achievement of a substantive milestone is recognized in its entirety in the period in which the milestone is achieved . a milestone is defined as an event ( i ) that can only be achieved based in whole or in part on either the entity 's performance or on the occurrence of a specific outcome resulting from the entity 's performance , ( ii ) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved , and ( iii ) that would result in additional payments being due to the entity . at the inception of an agreement that includes milestone payments , we evaluate whether each milestone is substantive and at risk to both parties on the basis of the contingent nature of the milestone . story_separator_special_tag million and $ 1.0 million related to the accelerated vesting of stock options upon the passing of the company 's former ceo and accelerated vesting of stock options due to our former chief commercial officer under a separation agreement for the year ended december 31 , 2016 , and the $ 2.4 million gain recognized from the assignment of our former south san francisco facility lease in january 2017. our g & a expenses increased by $ 18.0 million , or 78 % , for the year ended december 31 , 2016 , compared to the prior year . the increase for the year ended december 31 , 2016 was primarily due to higher personnel costs , including share-based compensation expenses ( which for the year ended december 31 , 2016 includes $ 7.7 million and $ 1.0 million of share-based compensation expense related to the accelerated vesting of stock options and payments due to our former ceo 's estate upon his death and accelerated vesting of stock options and payments due to our former chief commercial officer under a separation agreement , respectively ) and higher consulting expenses . assuming positive results from our phase 2b pronto study of neod001 , we expect our g & a expenses to increase in 2018 over the prior year in support of our anticipated r & d activities and due to increases in personnel , legal and expenses associated with regulatory and commercial preparation activities . 48 other income ( expense ) replace_table_token_6_th _ nm = not meaningful interest income ( expense ) , net decreased by $ 698,000 , or 126 % , for the year ended december 31 , 2017 , compared to the same period in the prior year . the decrease for the year ended december 31 , 2017 was primarily due to higher interest expense associated with our built-to-suit lease , which was partially offset by higher interest income associated with higher balances in our cash and money market accounts . other expense , net for the year ended december 31 , 2017 was primarily foreign exchange losses from transactions with vendors denominated in euros . interest income ( expense ) , net increased by $ 360,000 , or 184 % , for the year ended december 31 , 2016 , compared to the prior year , primarily due to $ 1.2 million higher interest income associated with higher balances in our cash and money market accounts , which was partially offset by $ 0.9 million in interest expense associated with our built-to-suit property . other income , net for the year ended december 31 , 2016 was primarily foreign exchange gains from transactions with vendors denominated in euros . provision for ( benefit from ) income taxes replace_table_token_7_th the provisions ( benefit from ) income taxes were $ ( 4.4 ) million , $ 1.1 million and $ 0.7 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively . the benefit from income taxes increased by $ 5.5 million for the year ended december 31 , 2017 , compared to the prior year , primarily due to the excess tax benefits of $ 5.3 million recorded to the tax provision associated with the adoption of asu 2016-09 , improvements to employee share-based payment accounting on january 1 , 2017. the provision for income taxes increased by $ 0.4 million for the year ended december 31 , 2016 , compared to the prior year , due to higher profits generated from our u.s. subsidiary . the tax provisions for all periods presented primarily reflect u.s. federal taxes associated with recurring profits attributable to intercompany services that our u.s. subsidiary performs for the company , and to a lesser extent 2017 also includes swiss taxes associated with intercompany services that our swiss subsidiary performs for the company . no tax benefit has been recorded related to tax losses recognized in ireland and any deferred tax assets for those losses are offset by a valuation allowance . on december 22 , 2017 , the u.s. tax cuts and jobs act ( the โ tcja โ ) was signed into law in the u.s. the tcja significantly changes existing u.s. tax law and includes numerous provisions that will affect our business going forward , including changes to the u.s. federal statutory tax rate , the repeal of alternative minimum tax , and additional limits on the deductibility of executive compensation , among other things . the tcja reduces the u.s. federal statutory tax rate from 34 % to 21 % effective january 1 , 2018. accordingly , we have recorded a provision tax benefit of 0.4 million related to the remeasurement of our u.s. deferred tax assets to reflect the lower statutory tax rate . due to the repeal of alternative minimum taxes , we anticipate that our future u.s. taxes will decrease due to our ability to use additional tax credits previously limited by the alternative minimum tax . however , we also expect an increase to our taxable income due to further limitations on the deductibility of compensation of certain of our executive officers . as of december 31 , 2017 , we have not completed our accounting for the tax effects of the tcja , and have recorded provisional net tax benefit based on our best estimates . the provisional amounts incorporate assumptions made based upon our current interpretation of the tcja and are subject to revision as we receive and interpret any additional clarification and implementation 49 guidance issued by the u.s. treasury department , u.s. internal revenue service ( the โ irs โ ) and other standard-setting bodies . any adjustments to the provisional amounts recorded will be included as an adjustment to the provision for income taxes . adjustments may materially impact our provision for income taxes and effective tax rate in the period in which the adjustments are made . we anticipate our accounting for the tax
| net cash used in operating activities was $ 131.2 million for the year ended december 31 , 2017 , primarily due to use of $ 182.8 million for operating expenses ( adjusted to exclude non-cash charges ) and an increase in prepaid expenses and other assets . net cash used in operating activities was $ 116.3 million for the year ended december 31 , 2016 , primarily due to use of $ 160.6 million for operating expenses ( adjusted to exclude non-cash charges ) , which was partially offset by an increase in accounts payable and accrued liabilities . net cash used in operating activities was $ 58.6 million for the year ended december 31 , 2015 , primarily due to use of $ 81.5 million for operating expenses ( adjusted to exclude non-cash charges ) , which was partially offset by an increase in accounts payable and accrued liabilities . cash used in investing activities net cash used in investing activities was $ 3.5 million , $ 16.6 million and $ 1.4 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively . net cash used in investing activities for the years ended december 31 , 2017 , 2016 and 2015 primarily related to purchases of property and equipment .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash used in operating activities was $ 131.2 million for the year ended december 31 , 2017 , primarily due to use of $ 182.8 million for operating expenses ( adjusted to exclude non-cash charges ) and an increase in prepaid expenses and other assets . net cash used in operating activities was $ 116.3 million for the year ended december 31 , 2016 , primarily due to use of $ 160.6 million for operating expenses ( adjusted to exclude non-cash charges ) , which was partially offset by an increase in accounts payable and accrued liabilities . net cash used in operating activities was $ 58.6 million for the year ended december 31 , 2015 , primarily due to use of $ 81.5 million for operating expenses ( adjusted to exclude non-cash charges ) , which was partially offset by an increase in accounts payable and accrued liabilities . cash used in investing activities net cash used in investing activities was $ 3.5 million , $ 16.6 million and $ 1.4 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively . net cash used in investing activities for the years ended december 31 , 2017 , 2016 and 2015 primarily related to purchases of property and equipment .
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Suspicious Activity Report : the preparation of these consolidated financial statements requires us to make estimates and assumptions for the reported amounts of assets , liabilities , revenues , expenses and related disclosures . we believe the following policies to be critical to the judgments and estimates used in the preparation of our financial statements . revenue recognition revenue is recognized when earned and non-refundable , when payment is reasonably assured , and when there is no future obligation with respect to the revenue , in accordance with the terms prescribed in the applicable contract . multiple element arrangements our revenues are generated primarily through our license , development and commercialization agreement . these types of agreements generally contain multiple elements , or deliverables , which may include ( i ) licenses to our technology , ( ii ) research and development ( โ r & d โ ) activities to be performed on behalf of the collaborative partner , and ( iii ) in certain cases , services or 44 obligations in connection with the manufacturing or supply of preclinical and clinical material . payments to us under these arrangements typically include one or more of the following : non-refundable , upfront license fees ; funding of research and or development efforts ; milestone payments ; and royalties on future product sales . revenue under license , development and commercialization agreements is recognized based on the performance requirements of the contract . determinations of whether persuasive evidence of an arrangement exists and whether delivery has occurred or services have been rendered are based on management 's judgments regarding the fixed nature of the fees charged for deliverables and the collectability of those fees . should changes in conditions cause management to determine that these criteria are not met for any new or modified transactions , revenue recognized could be adversely affected . we recognize revenue related to license , development and commercialization agreements in accordance with the provisions of fasb asc topic 605-25 , revenue recognition - multiple-element arrangements . we evaluate all deliverables within an arrangement to determine whether or not they provide value on a stand-alone basis . based on this evaluation , the deliverables are separated into units of accounting . the arrangement consideration that is fixed or determinable at the inception of the arrangement is allocated to the separate units of accounting based on their relative selling prices . we may exercise significant judgment in determining whether a deliverable is a separate unit of accounting , as well as in estimating the selling prices of such unit of accounting . a change in such judgment could result in a significant change in the period in which revenue is recognized . to determine the selling price of a separate deliverable , we use the hierarchy as prescribed in asc topic 605-25 based on vendor-specific objective evidence ( โ vsoe โ ) , third-party evidence ( โ tpe โ ) or best estimate of selling price ( โ besp โ ) . vsoe is based on the price charged when the element is sold separately and is the price actually charged for that deliverable . tpe is determined based on third party evidence for a similar deliverable when sold separately and besp is the estimated selling price at which we would transact a sale if the elements of collaboration and license arrangements were sold on a stand-alone basis to the buyer . we may not be able to establish vsoe or tpe for the deliverables within collaboration and license arrangements , as we may not have a history of entering into such arrangements or selling the individual deliverables within such arrangements separately . in addition , there may be significant differentiation in these arrangements , which indicates that comparable third party pricing may not be available . we may determine that the selling price for the deliverables within collaboration and license arrangements should be determined using besp . the process for determining besp involves significant judgment on our part and includes consideration of multiple factors such as estimated direct expenses and other costs , and available data . payments or full reimbursements resulting from our r & d efforts for those arrangements where such efforts are considered as deliverables are recognized as the services are performed and are presented on a gross basis so long as there is persuasive evidence of an arrangement , the fee is fixed or determinable , and collection of the related receivable is reasonably assured . however , such funding is recognized as a reduction of r & d expense when we engage in a r & d project jointly with another entity , with both entities participating in project activities and sharing costs and potential benefits of the project . accordingly , reimbursement of r & d expenses pursuant to the cost-sharing provisions of our agreements with roche is recognized as a reduction to r & d expense . milestone revenue we account for milestones under asu no . 2010-17 , milestone method of revenue recognition . under the milestone method , contingent consideration received from the achievement of a substantive milestone is recognized in its entirety in the period in which the milestone is achieved . a milestone is defined as an event ( i ) that can only be achieved based in whole or in part on either the entity 's performance or on the occurrence of a specific outcome resulting from the entity 's performance , ( ii ) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved , and ( iii ) that would result in additional payments being due to the entity . at the inception of an agreement that includes milestone payments , we evaluate whether each milestone is substantive and at risk to both parties on the basis of the contingent nature of the milestone . story_separator_special_tag million and $ 1.0 million related to the accelerated vesting of stock options upon the passing of the company 's former ceo and accelerated vesting of stock options due to our former chief commercial officer under a separation agreement for the year ended december 31 , 2016 , and the $ 2.4 million gain recognized from the assignment of our former south san francisco facility lease in january 2017. our g & a expenses increased by $ 18.0 million , or 78 % , for the year ended december 31 , 2016 , compared to the prior year . the increase for the year ended december 31 , 2016 was primarily due to higher personnel costs , including share-based compensation expenses ( which for the year ended december 31 , 2016 includes $ 7.7 million and $ 1.0 million of share-based compensation expense related to the accelerated vesting of stock options and payments due to our former ceo 's estate upon his death and accelerated vesting of stock options and payments due to our former chief commercial officer under a separation agreement , respectively ) and higher consulting expenses . assuming positive results from our phase 2b pronto study of neod001 , we expect our g & a expenses to increase in 2018 over the prior year in support of our anticipated r & d activities and due to increases in personnel , legal and expenses associated with regulatory and commercial preparation activities . 48 other income ( expense ) replace_table_token_6_th _ nm = not meaningful interest income ( expense ) , net decreased by $ 698,000 , or 126 % , for the year ended december 31 , 2017 , compared to the same period in the prior year . the decrease for the year ended december 31 , 2017 was primarily due to higher interest expense associated with our built-to-suit lease , which was partially offset by higher interest income associated with higher balances in our cash and money market accounts . other expense , net for the year ended december 31 , 2017 was primarily foreign exchange losses from transactions with vendors denominated in euros . interest income ( expense ) , net increased by $ 360,000 , or 184 % , for the year ended december 31 , 2016 , compared to the prior year , primarily due to $ 1.2 million higher interest income associated with higher balances in our cash and money market accounts , which was partially offset by $ 0.9 million in interest expense associated with our built-to-suit property . other income , net for the year ended december 31 , 2016 was primarily foreign exchange gains from transactions with vendors denominated in euros . provision for ( benefit from ) income taxes replace_table_token_7_th the provisions ( benefit from ) income taxes were $ ( 4.4 ) million , $ 1.1 million and $ 0.7 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively . the benefit from income taxes increased by $ 5.5 million for the year ended december 31 , 2017 , compared to the prior year , primarily due to the excess tax benefits of $ 5.3 million recorded to the tax provision associated with the adoption of asu 2016-09 , improvements to employee share-based payment accounting on january 1 , 2017. the provision for income taxes increased by $ 0.4 million for the year ended december 31 , 2016 , compared to the prior year , due to higher profits generated from our u.s. subsidiary . the tax provisions for all periods presented primarily reflect u.s. federal taxes associated with recurring profits attributable to intercompany services that our u.s. subsidiary performs for the company , and to a lesser extent 2017 also includes swiss taxes associated with intercompany services that our swiss subsidiary performs for the company . no tax benefit has been recorded related to tax losses recognized in ireland and any deferred tax assets for those losses are offset by a valuation allowance . on december 22 , 2017 , the u.s. tax cuts and jobs act ( the โ tcja โ ) was signed into law in the u.s. the tcja significantly changes existing u.s. tax law and includes numerous provisions that will affect our business going forward , including changes to the u.s. federal statutory tax rate , the repeal of alternative minimum tax , and additional limits on the deductibility of executive compensation , among other things . the tcja reduces the u.s. federal statutory tax rate from 34 % to 21 % effective january 1 , 2018. accordingly , we have recorded a provision tax benefit of 0.4 million related to the remeasurement of our u.s. deferred tax assets to reflect the lower statutory tax rate . due to the repeal of alternative minimum taxes , we anticipate that our future u.s. taxes will decrease due to our ability to use additional tax credits previously limited by the alternative minimum tax . however , we also expect an increase to our taxable income due to further limitations on the deductibility of compensation of certain of our executive officers . as of december 31 , 2017 , we have not completed our accounting for the tax effects of the tcja , and have recorded provisional net tax benefit based on our best estimates . the provisional amounts incorporate assumptions made based upon our current interpretation of the tcja and are subject to revision as we receive and interpret any additional clarification and implementation 49 guidance issued by the u.s. treasury department , u.s. internal revenue service ( the โ irs โ ) and other standard-setting bodies . any adjustments to the provisional amounts recorded will be included as an adjustment to the provision for income taxes . adjustments may materially impact our provision for income taxes and effective tax rate in the period in which the adjustments are made . we anticipate our accounting for the tax
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2,395 | under this plan , our non-employee directors may story_separator_special_tag overview we develop and manufacture products primarily for medical applications . we market components to other equipment manufacturers for incorporation in their products and sell finished devices to physicians , hospitals , clinics and other treatment centers . our medical products primarily serve the fluid delivery , cardiovascular , and ophthalmology markets . our other medical and non-medical products include valves and inflation devices used in marine and aviation safety products . in 2016 , approximately 37 percent of our sales were outside the united states . our products are used in a wide variety of applications by numerous customers . we encounter competition in all of our markets and compete primarily on the basis of product quality , price , engineering , customer service and delivery time . our strategy is to provide a broad selection of products in the areas of our expertise . r & d efforts are focused on improving current products and developing highly-engineered products that meet customer needs and serve niche markets with meaningful sales potential . proposed new products may be subject to regulatory clearance or approval prior to commercialization and the time period for introducing a new product to the marketplace can be unpredictable . we also focus on controlling costs by investing in modern manufacturing technologies and controlling purchasing processes . we have been successful in consistently generating cash from operations and have used that cash to reduce or eliminate indebtedness , to fund capital expenditures , to make investments , to repurchase stock and to pay dividends . 20 our strategic objective is to further enhance our position in our served markets by : โ focusing on customer needs ; โ expanding existing product lines and developing new products ; โ maintaining a culture of controlling cost ; and โ preserving and fostering a collaborative , entrepreneurial management structure . for the year ended december 31 , 2016 , we reported revenues of $ 143.5 million , operating income of $ 39.1 million and net income of $ 27.6 million . results of operations our net income was $ 27.6 million , or $ 15.12 per basic and $ 14.85 per diluted share , in 2016 compared to $ 28.9 million , or $ 15.67 per basic and $ 15.47 per diluted share , in 2015 and net income of $ 27.8 million , or $ 14.20 per basic and $ 14.08 per diluted share , in 2014. revenues were $ 143.5 million in 2016 compared with $ 145.7 million in 2015 and $ 140.8 million in 2014. our 2016 revenues were negatively impacted by the strong u. s. dollar in our international markets and lower sales prices in certain markets . the four percent revenue increase in 2015 over 2014 was generally attributable to higher sales volumes . annual revenues by product lines were as follows ( in thousands ) : replace_table_token_3_th our cost of goods sold was $ 75.9 million in 2016 , $ 74.8 million in 2015 and $ 72.2 million in 2014. increased compensation costs , depreciation and repair costs partially offset by reduced utilities and reduced supplies were the primary contributors to the increase in cost of goods sold in 2016 over 2015. higher sales volume along with increased compensation costs , supplies and utilities partially offset by improved manufacturing efficiencies were the primary contributors to the increase in cost of goods sold in 2015 over 2014. gross profit in 2016 was $ 67.6 million compared with $ 71.0 million in 2015 and $ 68.5 million in 2014. our gross profit was 47 percent of revenues in 2016 and 49 percent of revenues in both 2015 and 2014. the decrease in gross profit percentage in 2016 from 2015 was primarily related to reduced sales , lower sales prices and increased manufacturing costs . operating expenses were $ 28.5 million in both 2016 and 2015 and $ 27.7 million in 2014. r & d expenses increased $ 228,000 in 2016 as compared to 2015 primarily as a result of increased costs for supplies and travel partially offset by reduced outside services . r & d expenses consist primarily of salaries and other related expenses of our r & d personnel as well as costs associated with regulatory matters . in 2016 , selling expenses increased $ 568,000 as compared with 2015 primarily as a result of increased travel , outside services , compensation and trade shows . selling expenses consist primarily of salaries , commissions and other related expenses for sales and marketing personnel , marketing , advertising and promotional expenses . general and administrative , or g & a , expenses decreased $ 763,000 in 2016 as compared to 2015 primarily as a result of reduced compensation and benefits . g & a expenses consist primarily of salaries and other related expenses of administrative , executive and financial personnel and outside professional fees . 21 r & d expenses increased $ 1.1 million in 2015 as compared to 2014 primarily as a result of increased costs for outside services and supplies . in 2015 , selling expenses decreased $ 167,000 as compared with 2014 primarily as a result of decreased promotional costs partially offset by increased commissions . g & a expenses decreased $ 123,000 in 2015 as compared to 2014 primarily as a result of reduced outside services partially offset by increased amortization . story_separator_special_tag in making determinations of likely outcomes of litigation matters , we consider the evaluation of legal counsel knowledgeable about each matter , case law and other case-specific issues . we believe these accruals are adequate to cover the legal fees and expenses associated with litigating these matters . however , the time and cost required to litigate these matters as well as the outcomes of the proceedings may vary significantly from what we have projected . we maintain an allowance for doubtful accounts to reflect estimated losses resulting from the failure of customers to make required payments . on an ongoing basis , the collectability of accounts receivable is assessed based upon historical collection trends , current economic factors and the assessment of the collectability of specific accounts . we evaluate the collectability of specific accounts and determine when to grant credit to our customers using a combination of factors , including the age of the outstanding balances , evaluation of customers ' current and past financial condition , recent payment history , current economic environment , and discussions with our personnel and with the customers directly . accounts are written off when it is determined the receivable will not be collected . if circumstances change , our estimates of the collectability of amounts could be changed by a material amount . 25 we are required to estimate our provision for income taxes and uncertain tax positions in each of the jurisdictions in which we operate . this process involves estimating our actual current tax exposure , including assessing the risks associated with tax audits , together with assessing temporary differences resulting from the different treatment of items for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are included within the balance sheet . we assess the likelihood that our deferred tax assets will be recovered from future taxable income and , to the extent we believe that recovery is more likely than not , do not establish a valuation allowance . in the event that actual results differ from these estimates , the provision for income taxes could be materially impacted . we assess the impairment of our long-lived identifiable assets , excluding goodwill which is tested for impairment as explained below , whenever events or changes in circumstances indicate that the carrying value may not be recoverable . this review is based upon projections of anticipated future cash flows . although we believe that our estimates of future cash flows are reasonable , different assumptions regarding such cash flows or changes in our business plan could materially affect our evaluations . no such changes are anticipated at this time . we assess goodwill for impairment pursuant to accounting standards codification , or asc , 350 , intangiblesโgoodwill and other , which requires that goodwill be assessed whenever events or changes in circumstances indicate that the carrying value may not be recoverable , or , at a minimum , on an annual basis by applying a qualitative assessment on goodwill impairment to determine whether it is necessary to perform the two-step goodwill impairment test . we assess the total carrying value for each of our investments on a quarterly basis for changes in circumstance or the occurrence of events that suggest our investment may not be recoverable . if an investment is considered impaired , we must determine whether the impairment is other than temporary . if it is determined to be other than temporary , the impairment must be recognized in our financial statements . during 2016 , 2015 and 2014 , none of our critical accounting policy estimates , with the exception of the previously mentioned impairment loss on one of our long-term corporate bonds , required significant adjustments . we did not note any material events or changes in circumstances indicating that the carrying value of long-lived assets were not recoverable . quantitative and qualitative disclosures about market risks foreign exchange risk we are not exposed to material fluctuations in currency exchange rates because the payments from our international customers are received primarily in united states dollars . however , fluctuations in exchange rates may affect the prices that our international customers are willing to pay and may put us at a price disadvantage compared to other customers . increases in the value of the united states dollar relative to foreign currencies could make our products less competitive or less affordable and therefore adversely affect our sales in international markets . market risk and credit risk the company 's cash and cash equivalents are held in accounts with financial institutions that we believe are creditworthy . certain of these accounts at times may exceed federally-insured limits . we have not experienced any credit losses in such accounts and do not believe we are exposed to any significant credit risk on these funds . we have investments in taxable corporate bonds , certificates of deposit and equity securities . as a result , we are exposed to potential loss from market risks that may occur as a result of changes in interest rates , changes in credit quality of the issuer and otherwise . these securities have a higher degree of credit or default risk and a greater exposure to credit risk and may be less liquid in times of economic weakness or market disruptions . we have also invested a portion of our available funds in common stock . the value of these securities fluctuates due to changes in the equity and credit markets along with other factors . in times of economic weakness , the market value and liquidity of these assets may decline and may negatively impact our financial condition . 26 forward-looking statements statements in this management 's discussion and analysis and elsewhere in this form 10-k that are forward looking are based upon current expectations , and actual results or future events may differ materially . therefore , the inclusion of such forward-looking information
| liquidity and capital resources at december 31 , 2016 , we had a $ 40.0 million revolving credit facility with a money center bank that could be utilized for the funding of operations and for major capital projects or acquisitions , subject to certain limitations and restrictions . interest under the credit facility was assessed at 30-day , 60-day or 90-day libor , as selected by us , plus one percent and was payable monthly . we had no outstanding borrowings under our credit facility at december 31 , 2016 or 2015. the credit facility contained various restrictive covenants , none of which was expected to impact our liquidity or capital resources . at december 31 , 2016 , we were in compliance with all financial covenants . 22 on february 28 , 2017 we replaced the revolving credit facility with a new $ 75.0 million revolving credit facility with the same bank . the new credit facility has similar operational , covenant and collateral characteristics as the prior facility . interest under the new credit facility is assessed at one , two , three or six-month libor , as selected by us , plus .875 percent . the new credit facility allows us to make advances until february 28 , 2022. we believe the bank providing the credit facility is highly-rated and that the entire $ 75.0 million under the credit facility is currently available to us .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources at december 31 , 2016 , we had a $ 40.0 million revolving credit facility with a money center bank that could be utilized for the funding of operations and for major capital projects or acquisitions , subject to certain limitations and restrictions . interest under the credit facility was assessed at 30-day , 60-day or 90-day libor , as selected by us , plus one percent and was payable monthly . we had no outstanding borrowings under our credit facility at december 31 , 2016 or 2015. the credit facility contained various restrictive covenants , none of which was expected to impact our liquidity or capital resources . at december 31 , 2016 , we were in compliance with all financial covenants . 22 on february 28 , 2017 we replaced the revolving credit facility with a new $ 75.0 million revolving credit facility with the same bank . the new credit facility has similar operational , covenant and collateral characteristics as the prior facility . interest under the new credit facility is assessed at one , two , three or six-month libor , as selected by us , plus .875 percent . the new credit facility allows us to make advances until february 28 , 2022. we believe the bank providing the credit facility is highly-rated and that the entire $ 75.0 million under the credit facility is currently available to us .
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Suspicious Activity Report : under this plan , our non-employee directors may story_separator_special_tag overview we develop and manufacture products primarily for medical applications . we market components to other equipment manufacturers for incorporation in their products and sell finished devices to physicians , hospitals , clinics and other treatment centers . our medical products primarily serve the fluid delivery , cardiovascular , and ophthalmology markets . our other medical and non-medical products include valves and inflation devices used in marine and aviation safety products . in 2016 , approximately 37 percent of our sales were outside the united states . our products are used in a wide variety of applications by numerous customers . we encounter competition in all of our markets and compete primarily on the basis of product quality , price , engineering , customer service and delivery time . our strategy is to provide a broad selection of products in the areas of our expertise . r & d efforts are focused on improving current products and developing highly-engineered products that meet customer needs and serve niche markets with meaningful sales potential . proposed new products may be subject to regulatory clearance or approval prior to commercialization and the time period for introducing a new product to the marketplace can be unpredictable . we also focus on controlling costs by investing in modern manufacturing technologies and controlling purchasing processes . we have been successful in consistently generating cash from operations and have used that cash to reduce or eliminate indebtedness , to fund capital expenditures , to make investments , to repurchase stock and to pay dividends . 20 our strategic objective is to further enhance our position in our served markets by : โ focusing on customer needs ; โ expanding existing product lines and developing new products ; โ maintaining a culture of controlling cost ; and โ preserving and fostering a collaborative , entrepreneurial management structure . for the year ended december 31 , 2016 , we reported revenues of $ 143.5 million , operating income of $ 39.1 million and net income of $ 27.6 million . results of operations our net income was $ 27.6 million , or $ 15.12 per basic and $ 14.85 per diluted share , in 2016 compared to $ 28.9 million , or $ 15.67 per basic and $ 15.47 per diluted share , in 2015 and net income of $ 27.8 million , or $ 14.20 per basic and $ 14.08 per diluted share , in 2014. revenues were $ 143.5 million in 2016 compared with $ 145.7 million in 2015 and $ 140.8 million in 2014. our 2016 revenues were negatively impacted by the strong u. s. dollar in our international markets and lower sales prices in certain markets . the four percent revenue increase in 2015 over 2014 was generally attributable to higher sales volumes . annual revenues by product lines were as follows ( in thousands ) : replace_table_token_3_th our cost of goods sold was $ 75.9 million in 2016 , $ 74.8 million in 2015 and $ 72.2 million in 2014. increased compensation costs , depreciation and repair costs partially offset by reduced utilities and reduced supplies were the primary contributors to the increase in cost of goods sold in 2016 over 2015. higher sales volume along with increased compensation costs , supplies and utilities partially offset by improved manufacturing efficiencies were the primary contributors to the increase in cost of goods sold in 2015 over 2014. gross profit in 2016 was $ 67.6 million compared with $ 71.0 million in 2015 and $ 68.5 million in 2014. our gross profit was 47 percent of revenues in 2016 and 49 percent of revenues in both 2015 and 2014. the decrease in gross profit percentage in 2016 from 2015 was primarily related to reduced sales , lower sales prices and increased manufacturing costs . operating expenses were $ 28.5 million in both 2016 and 2015 and $ 27.7 million in 2014. r & d expenses increased $ 228,000 in 2016 as compared to 2015 primarily as a result of increased costs for supplies and travel partially offset by reduced outside services . r & d expenses consist primarily of salaries and other related expenses of our r & d personnel as well as costs associated with regulatory matters . in 2016 , selling expenses increased $ 568,000 as compared with 2015 primarily as a result of increased travel , outside services , compensation and trade shows . selling expenses consist primarily of salaries , commissions and other related expenses for sales and marketing personnel , marketing , advertising and promotional expenses . general and administrative , or g & a , expenses decreased $ 763,000 in 2016 as compared to 2015 primarily as a result of reduced compensation and benefits . g & a expenses consist primarily of salaries and other related expenses of administrative , executive and financial personnel and outside professional fees . 21 r & d expenses increased $ 1.1 million in 2015 as compared to 2014 primarily as a result of increased costs for outside services and supplies . in 2015 , selling expenses decreased $ 167,000 as compared with 2014 primarily as a result of decreased promotional costs partially offset by increased commissions . g & a expenses decreased $ 123,000 in 2015 as compared to 2014 primarily as a result of reduced outside services partially offset by increased amortization . story_separator_special_tag in making determinations of likely outcomes of litigation matters , we consider the evaluation of legal counsel knowledgeable about each matter , case law and other case-specific issues . we believe these accruals are adequate to cover the legal fees and expenses associated with litigating these matters . however , the time and cost required to litigate these matters as well as the outcomes of the proceedings may vary significantly from what we have projected . we maintain an allowance for doubtful accounts to reflect estimated losses resulting from the failure of customers to make required payments . on an ongoing basis , the collectability of accounts receivable is assessed based upon historical collection trends , current economic factors and the assessment of the collectability of specific accounts . we evaluate the collectability of specific accounts and determine when to grant credit to our customers using a combination of factors , including the age of the outstanding balances , evaluation of customers ' current and past financial condition , recent payment history , current economic environment , and discussions with our personnel and with the customers directly . accounts are written off when it is determined the receivable will not be collected . if circumstances change , our estimates of the collectability of amounts could be changed by a material amount . 25 we are required to estimate our provision for income taxes and uncertain tax positions in each of the jurisdictions in which we operate . this process involves estimating our actual current tax exposure , including assessing the risks associated with tax audits , together with assessing temporary differences resulting from the different treatment of items for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are included within the balance sheet . we assess the likelihood that our deferred tax assets will be recovered from future taxable income and , to the extent we believe that recovery is more likely than not , do not establish a valuation allowance . in the event that actual results differ from these estimates , the provision for income taxes could be materially impacted . we assess the impairment of our long-lived identifiable assets , excluding goodwill which is tested for impairment as explained below , whenever events or changes in circumstances indicate that the carrying value may not be recoverable . this review is based upon projections of anticipated future cash flows . although we believe that our estimates of future cash flows are reasonable , different assumptions regarding such cash flows or changes in our business plan could materially affect our evaluations . no such changes are anticipated at this time . we assess goodwill for impairment pursuant to accounting standards codification , or asc , 350 , intangiblesโgoodwill and other , which requires that goodwill be assessed whenever events or changes in circumstances indicate that the carrying value may not be recoverable , or , at a minimum , on an annual basis by applying a qualitative assessment on goodwill impairment to determine whether it is necessary to perform the two-step goodwill impairment test . we assess the total carrying value for each of our investments on a quarterly basis for changes in circumstance or the occurrence of events that suggest our investment may not be recoverable . if an investment is considered impaired , we must determine whether the impairment is other than temporary . if it is determined to be other than temporary , the impairment must be recognized in our financial statements . during 2016 , 2015 and 2014 , none of our critical accounting policy estimates , with the exception of the previously mentioned impairment loss on one of our long-term corporate bonds , required significant adjustments . we did not note any material events or changes in circumstances indicating that the carrying value of long-lived assets were not recoverable . quantitative and qualitative disclosures about market risks foreign exchange risk we are not exposed to material fluctuations in currency exchange rates because the payments from our international customers are received primarily in united states dollars . however , fluctuations in exchange rates may affect the prices that our international customers are willing to pay and may put us at a price disadvantage compared to other customers . increases in the value of the united states dollar relative to foreign currencies could make our products less competitive or less affordable and therefore adversely affect our sales in international markets . market risk and credit risk the company 's cash and cash equivalents are held in accounts with financial institutions that we believe are creditworthy . certain of these accounts at times may exceed federally-insured limits . we have not experienced any credit losses in such accounts and do not believe we are exposed to any significant credit risk on these funds . we have investments in taxable corporate bonds , certificates of deposit and equity securities . as a result , we are exposed to potential loss from market risks that may occur as a result of changes in interest rates , changes in credit quality of the issuer and otherwise . these securities have a higher degree of credit or default risk and a greater exposure to credit risk and may be less liquid in times of economic weakness or market disruptions . we have also invested a portion of our available funds in common stock . the value of these securities fluctuates due to changes in the equity and credit markets along with other factors . in times of economic weakness , the market value and liquidity of these assets may decline and may negatively impact our financial condition . 26 forward-looking statements statements in this management 's discussion and analysis and elsewhere in this form 10-k that are forward looking are based upon current expectations , and actual results or future events may differ materially . therefore , the inclusion of such forward-looking information
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2,396 | our capital allocation priorities remain unchanged : ๏ง deploying operating capital to sustain our franchise ๏ง maintaining the financial strength and flexibility needed through the cycle ๏ง strategic growth through mergers and acquisitions and internal development ๏ง returning excess cash to shareholders through a healthy mix of sustainable dividend growth and stock repurchases our capital allocation and investment-grade rating priorities remain unchanged . for the full year , capital expenditures were $ 404.3 million . this amount included $ 239.3 million of core operating and maintenance capital investments to improve or replace existing property , plant & equipment . in addition , we invested $ 165.0 million in internal growth projects to secure new aggregates reserves , develop new production sites , enhance our distribution capabilities and support the targeted growth of our asphalt and concrete operations . we continue to pursue opportunities for value-creating acquisitions , swaps and greenfield investments . we remain active in the pursuit of bolt-on acquisitions and other value-creating growth investments . we closed two business acquisitions during 2019 for total consideration of $ 45.3 million . these acquisitions strengthened both our aggregates position in tennessee and our ready-mixed concrete position in virginia . during 2019 , we returned $ 166.6 million to our shareholders through dividends and share repurchases . for a detailed discussion of our acquisitions and divestitures , see note 19 โ acquisitions and divestitures โ in item 8 โ financial statements and supplementary data . โ part ii 30 market developments and outlook demand in our markets will continue to benefit from higher levels of highway funding and continued growth in residential and nonresidential markets . residential construction should continue to strengthen after some softness in certain of our markets during the second half of 2019. private nonresidential construction activity should also improve as leading indicators point to positive growth in 2020. demand fundamentals , including population and employment growth , continue to support longer-term growth in residential and nonresidential construction . we are seeing a positive pricing environment driven by shipment momentum in private demand and visibility of public demand . this visibility to demand growth sets the stage for solid price improvement in 2020. price improvement coupled with our four strategic initiatives ( operational excellence , strategic sourcing , commercial excellence and logistics innovation ) should continue to increase unit profitability . management expectations for 2020 include : ๏ง aggregates shipments growth of 2 % to 4 % ๏ง aggregates freight-adjusted price increase of 4 % to 6 % ๏ง collective asphalt , concrete and calcium segment gross profit growth of 10 % to 15 % ๏ง sag expenses of approximately $ 365 million ๏ง interest expense of approximately $ 125 million ๏ง depreciation , depletion , accretion and amortization expense of approximately $ 385 million ๏ง an effective tax rate of approximately 20 % ๏ง earnings from continuing operations of $ 5.20 to $ 5.80 per diluted share ๏ง net earnings of $ 695 million to $ 775 million ๏ง adjusted ebitda of $ 1.385 billion to $ 1.485 billion additionally , we expect to spend approximately $ 275 million on maintenance capital and $ 200 million for internal growth projects that are largely underway . in summary , we expect another year of strong earnings growth in 2020. vulcan-served markets should continue to benefit from robust public construction demand , led by higher levels of highway funding in our key states . our focus remains the same โ compounding our unit margins through all parts of the cycle . part ii 31 competitive advantages aggregates footprint over time , we have strategically and systematically built one of the most valuable aggregates franchises in the u.s. , with a footprint that is impossible to replicate . zoning and permitting regulations have made it increasingly difficult to expand existing quarries or to develop new quarries . such regulations , while curtailing expansion , also increase the value of our reserves that were zoned and permitted decades ago . demand for aggregates correlates positively with changes in population growth , household formation and employment . we have a coast-to-coast footprint that serves 19 of the top 25 highest-growth metropolitan areas and states where 72 % of u.s. population growth from 2020 to 2030 is projected to occur . as state and federal spending increases , vulcan is poised to benefit greatly from growing private and public demand for aggregates , thereby delivering significant long-term value for our shareholders . part ii 32 compounding improvement in profitability we have continued to deliver strong financial performance over time and through business cycles . through our aggregates-led strategy and focus on our four strategic initiatives โ operational excellence , strategic sourcing , commercial excellence and logistics innovation ( as outlined in item 1 โ business โ under the โ business strategy โ heading ) โ we have created one of the most profitable public companies in our industry as measured by aggregates gross profit per ton . current economic indicators and market fundamentals point toward continued market growth . we are currently operating considerably below full capacity making us extremely well positioned to further benefit from economies of scale as this growth continues . safety , health and environmental performance a strategy for sustainable , long-term value creation must include doing right by your employees , your neighbors and the environment in which you operate . over our more than six decades as a public company , we have built a strong , resilient and vital business on this foundation of doing things the right way . we are a leader in our industry in safety , health and environmental performance , with a safety record substantially better than the industry average . story_separator_special_tag โ part ii 42 other operating expense , net other operating expense , which has an approximate run-rate of $ 12.0 million a year ( exclusive of discrete items ) , is composed of various operating items not specifically presented in the accompanying consolidated statements of comprehensive income . the total other operating expense , net and significant items included in the total were : ๏ง $ 31.6 million in 2019 โ includes discrete items as follows : ๏ง $ 10.8 million of charges related to property donations ๏ง $ 3.0 million of charges associated with divested operations , composed entirely of environmental liability accruals associated with previously divested properties ๏ง $ 6.5 million of managerial restructuring charges ๏ง $ 34.8 million in 2018 โ includes discrete items as follows : ๏ง $ 5.2 million of non-routine business development charges ๏ง $ 18.5 million of charges associated with divested operations ๏ง $ 6.2 million of managerial restructuring charges ๏ง $ 47.3 million in 2017 โ includes discrete items as follows : ๏ง $ 3.1 million of non-routine business development charges , net of a termination fee . these net charges were composed of $ 11.1 million of non-routine business development charges partially offset by an $ 8.0 million credit related to an asset purchase agreement termination fee ๏ง $ 18.1 million of charges associated with divested operations including $ 16.6 million of environmental liability accruals related to the hewitt landfill matter ( see note 12 โ commitments and contingencies โ in item 8 โ financial statements and supplementary data โ ) ๏ง $ 6.7 million of one-time cash bonuses for non-incentive eligible employees ( $ 1,000 per employee ) ๏ง $ 4.3 million of charges related to a property donation other nonoperating income , net other nonoperating income ( 2019 โ $ 9.2 million , 2018 โ $ 13.0 million and 2017 โ $ 13.4 million ) is composed primarily of pension and postretirement benefit costs ( excluding service costs ) , foreign currency transaction gains/losses , rabbi trust gains/losses and net earnings/losses of nonconsolidated equity method investments . part ii 43 interest expense in millions interest expense was $ 130.2 million in 2019 compared to $ 138.0 million in 2018 and $ 295.5 million in 2017. interest expense for 2017 included $ 148.0 million of charges related to the 2017 debt purchases . see note 6 โ debt โ in item 8 โ financial statements and supplementary data โ for additional discussion . income taxes our income tax expense ( benefit ) from continuing operations for the years ended december 31 is shown below : replace_table_token_10_th the $ 29.8 million increase in our 2019 income tax expense was primarily related to an increase in earnings . the $ 337.5 million increase in our 2018 income tax expense was primarily due to $ 297.0 million of net discrete tax benefits recorded in the fourth quarter of 2017. these discrete items were composed of two tax benefits : ( 1 ) a $ 301.6 million remeasurement of our deferred tax assets and liabilities at the new 21 % federal corporate income tax rate and ( 2 ) a $ 28.8 million partial release of our alabama nol carryforward valuation allowance which were partially offset by two tax charges : ( 1 ) $ 21.1 million of lost tax benefits associated with tax deductions accelerated into 2017 ( e.g . , lost u.s. production deduction ) and ( 2 ) a $ 12.3 million tax expense for the one-time deemed repatriation transition tax see note 9 โ income taxes โ in item 8 โ financial statements and supplementary data . โ discontinued operations pretax earnings ( loss ) from discontinued operations were : ๏ง $ ( 6.5 ) million in 2019 ๏ง $ ( 2.7 ) million in 2018 ๏ง $ 13.0 million in 2017 pretax earnings ( loss ) from discontinued operations for 2019 , 2018 and 2017 , resulted primarily from general and product liability costs , including legal defense costs and environmental remediation costs associated with our former chemicals business . the 2017 results also include insurance recoveries from previously incurred general liability costs . for additional information about discontinued operations , see note 1 โ summary of significant accounting policies โ in item 8 โ financial statements and supplementary data โ under the caption discontinued operations . part ii 44 reconciliation of non-gaap financial measures same-store we have provided certain information on a same-store basis . when discussing our financial results in comparison to prior periods , we may exclude the operating results of recently acquired/divested businesses that do not have comparable results in the periods being discussed . these recently acquired/divested businesses are disclosed in note 19 โ acquisitions and divestitures โ in item 8 โ financial statements and supplementary data . โ this approach allows us to evaluate the performance of our operations on a comparable basis . we believe that measuring performance on a same-store basis is useful to investors because it enables evaluation of how our operations are performing period over period without the effects of acquisition and divestiture activity . our same-store information may not be comparable to similar measures used by other companies . aggregates segment freight-adjusted revenues aggregates segment freight-adjusted revenues is not a generally accepted accounting principle ( gaap ) measure . we present this measure as it is consistent with the basis by which we review our operating results . we believe that this presentation is consistent with our competitors and meaningful to our investors as it excludes revenues associated with freight & delivery , which are pass-through activities . it also excludes immaterial other revenues related to services , such as landfill tipping fees , that are derived from our aggregates business . additionally , we use this metric as the basis for calculating the average sales price of our aggregates products . reconciliation of this metric to its nearest gaap measure is presented below : replace_table_token_11_th 1
| cash from investing activities in millions 2019 versus 2018 โ net cash used for investing activities was $ 415.8 million during 2019 , a $ 254.1 million decrease compared to 2018. we invested $ 384.1 million in our existing operations in 2019 , an $ 85.0 million decrease compared to 2018. of this $ 384.1 million , $ 165.0 million was invested in internal growth projects to enhance our distribution capabilities , develop new production sites and enhance existing production facilities . additionally , during 2019 we acquired businesses for $ 44.2 million of cash consideration as compared to $ 221.4 million of cash consideration for businesses in 2018 . 2018 versus 2017 โ net cash used for investing activities was $ 669.9 million during 2018 , a $ 599.6 million decrease compared to 2017. we invested $ 469.1 million in our existing operations in 2018 , a $ 9.5 million increase compared to 2017. of this $ 469.1 million , $ 247.4 million was invested in internal growth projects to secure new aggregates reserves , develop new production sites , enhance our distribution capabilities and support the targeted growth of our asphalt and concrete operations . as noted above , acquisitions during 2018 totaled $ 221.4 million of cash consideration . during 2017 , we acquired businesses for $ 822.4 million ( excluding the assets immediately divested in the aggregates usa acquisition for $ 287.3 million ) of cash consideration ( see note 19 โ acquisitions and divestitures โ in item 8 โ financial statements and supplementary data โ ) .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash from investing activities in millions 2019 versus 2018 โ net cash used for investing activities was $ 415.8 million during 2019 , a $ 254.1 million decrease compared to 2018. we invested $ 384.1 million in our existing operations in 2019 , an $ 85.0 million decrease compared to 2018. of this $ 384.1 million , $ 165.0 million was invested in internal growth projects to enhance our distribution capabilities , develop new production sites and enhance existing production facilities . additionally , during 2019 we acquired businesses for $ 44.2 million of cash consideration as compared to $ 221.4 million of cash consideration for businesses in 2018 . 2018 versus 2017 โ net cash used for investing activities was $ 669.9 million during 2018 , a $ 599.6 million decrease compared to 2017. we invested $ 469.1 million in our existing operations in 2018 , a $ 9.5 million increase compared to 2017. of this $ 469.1 million , $ 247.4 million was invested in internal growth projects to secure new aggregates reserves , develop new production sites , enhance our distribution capabilities and support the targeted growth of our asphalt and concrete operations . as noted above , acquisitions during 2018 totaled $ 221.4 million of cash consideration . during 2017 , we acquired businesses for $ 822.4 million ( excluding the assets immediately divested in the aggregates usa acquisition for $ 287.3 million ) of cash consideration ( see note 19 โ acquisitions and divestitures โ in item 8 โ financial statements and supplementary data โ ) .
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Suspicious Activity Report : our capital allocation priorities remain unchanged : ๏ง deploying operating capital to sustain our franchise ๏ง maintaining the financial strength and flexibility needed through the cycle ๏ง strategic growth through mergers and acquisitions and internal development ๏ง returning excess cash to shareholders through a healthy mix of sustainable dividend growth and stock repurchases our capital allocation and investment-grade rating priorities remain unchanged . for the full year , capital expenditures were $ 404.3 million . this amount included $ 239.3 million of core operating and maintenance capital investments to improve or replace existing property , plant & equipment . in addition , we invested $ 165.0 million in internal growth projects to secure new aggregates reserves , develop new production sites , enhance our distribution capabilities and support the targeted growth of our asphalt and concrete operations . we continue to pursue opportunities for value-creating acquisitions , swaps and greenfield investments . we remain active in the pursuit of bolt-on acquisitions and other value-creating growth investments . we closed two business acquisitions during 2019 for total consideration of $ 45.3 million . these acquisitions strengthened both our aggregates position in tennessee and our ready-mixed concrete position in virginia . during 2019 , we returned $ 166.6 million to our shareholders through dividends and share repurchases . for a detailed discussion of our acquisitions and divestitures , see note 19 โ acquisitions and divestitures โ in item 8 โ financial statements and supplementary data . โ part ii 30 market developments and outlook demand in our markets will continue to benefit from higher levels of highway funding and continued growth in residential and nonresidential markets . residential construction should continue to strengthen after some softness in certain of our markets during the second half of 2019. private nonresidential construction activity should also improve as leading indicators point to positive growth in 2020. demand fundamentals , including population and employment growth , continue to support longer-term growth in residential and nonresidential construction . we are seeing a positive pricing environment driven by shipment momentum in private demand and visibility of public demand . this visibility to demand growth sets the stage for solid price improvement in 2020. price improvement coupled with our four strategic initiatives ( operational excellence , strategic sourcing , commercial excellence and logistics innovation ) should continue to increase unit profitability . management expectations for 2020 include : ๏ง aggregates shipments growth of 2 % to 4 % ๏ง aggregates freight-adjusted price increase of 4 % to 6 % ๏ง collective asphalt , concrete and calcium segment gross profit growth of 10 % to 15 % ๏ง sag expenses of approximately $ 365 million ๏ง interest expense of approximately $ 125 million ๏ง depreciation , depletion , accretion and amortization expense of approximately $ 385 million ๏ง an effective tax rate of approximately 20 % ๏ง earnings from continuing operations of $ 5.20 to $ 5.80 per diluted share ๏ง net earnings of $ 695 million to $ 775 million ๏ง adjusted ebitda of $ 1.385 billion to $ 1.485 billion additionally , we expect to spend approximately $ 275 million on maintenance capital and $ 200 million for internal growth projects that are largely underway . in summary , we expect another year of strong earnings growth in 2020. vulcan-served markets should continue to benefit from robust public construction demand , led by higher levels of highway funding in our key states . our focus remains the same โ compounding our unit margins through all parts of the cycle . part ii 31 competitive advantages aggregates footprint over time , we have strategically and systematically built one of the most valuable aggregates franchises in the u.s. , with a footprint that is impossible to replicate . zoning and permitting regulations have made it increasingly difficult to expand existing quarries or to develop new quarries . such regulations , while curtailing expansion , also increase the value of our reserves that were zoned and permitted decades ago . demand for aggregates correlates positively with changes in population growth , household formation and employment . we have a coast-to-coast footprint that serves 19 of the top 25 highest-growth metropolitan areas and states where 72 % of u.s. population growth from 2020 to 2030 is projected to occur . as state and federal spending increases , vulcan is poised to benefit greatly from growing private and public demand for aggregates , thereby delivering significant long-term value for our shareholders . part ii 32 compounding improvement in profitability we have continued to deliver strong financial performance over time and through business cycles . through our aggregates-led strategy and focus on our four strategic initiatives โ operational excellence , strategic sourcing , commercial excellence and logistics innovation ( as outlined in item 1 โ business โ under the โ business strategy โ heading ) โ we have created one of the most profitable public companies in our industry as measured by aggregates gross profit per ton . current economic indicators and market fundamentals point toward continued market growth . we are currently operating considerably below full capacity making us extremely well positioned to further benefit from economies of scale as this growth continues . safety , health and environmental performance a strategy for sustainable , long-term value creation must include doing right by your employees , your neighbors and the environment in which you operate . over our more than six decades as a public company , we have built a strong , resilient and vital business on this foundation of doing things the right way . we are a leader in our industry in safety , health and environmental performance , with a safety record substantially better than the industry average . story_separator_special_tag โ part ii 42 other operating expense , net other operating expense , which has an approximate run-rate of $ 12.0 million a year ( exclusive of discrete items ) , is composed of various operating items not specifically presented in the accompanying consolidated statements of comprehensive income . the total other operating expense , net and significant items included in the total were : ๏ง $ 31.6 million in 2019 โ includes discrete items as follows : ๏ง $ 10.8 million of charges related to property donations ๏ง $ 3.0 million of charges associated with divested operations , composed entirely of environmental liability accruals associated with previously divested properties ๏ง $ 6.5 million of managerial restructuring charges ๏ง $ 34.8 million in 2018 โ includes discrete items as follows : ๏ง $ 5.2 million of non-routine business development charges ๏ง $ 18.5 million of charges associated with divested operations ๏ง $ 6.2 million of managerial restructuring charges ๏ง $ 47.3 million in 2017 โ includes discrete items as follows : ๏ง $ 3.1 million of non-routine business development charges , net of a termination fee . these net charges were composed of $ 11.1 million of non-routine business development charges partially offset by an $ 8.0 million credit related to an asset purchase agreement termination fee ๏ง $ 18.1 million of charges associated with divested operations including $ 16.6 million of environmental liability accruals related to the hewitt landfill matter ( see note 12 โ commitments and contingencies โ in item 8 โ financial statements and supplementary data โ ) ๏ง $ 6.7 million of one-time cash bonuses for non-incentive eligible employees ( $ 1,000 per employee ) ๏ง $ 4.3 million of charges related to a property donation other nonoperating income , net other nonoperating income ( 2019 โ $ 9.2 million , 2018 โ $ 13.0 million and 2017 โ $ 13.4 million ) is composed primarily of pension and postretirement benefit costs ( excluding service costs ) , foreign currency transaction gains/losses , rabbi trust gains/losses and net earnings/losses of nonconsolidated equity method investments . part ii 43 interest expense in millions interest expense was $ 130.2 million in 2019 compared to $ 138.0 million in 2018 and $ 295.5 million in 2017. interest expense for 2017 included $ 148.0 million of charges related to the 2017 debt purchases . see note 6 โ debt โ in item 8 โ financial statements and supplementary data โ for additional discussion . income taxes our income tax expense ( benefit ) from continuing operations for the years ended december 31 is shown below : replace_table_token_10_th the $ 29.8 million increase in our 2019 income tax expense was primarily related to an increase in earnings . the $ 337.5 million increase in our 2018 income tax expense was primarily due to $ 297.0 million of net discrete tax benefits recorded in the fourth quarter of 2017. these discrete items were composed of two tax benefits : ( 1 ) a $ 301.6 million remeasurement of our deferred tax assets and liabilities at the new 21 % federal corporate income tax rate and ( 2 ) a $ 28.8 million partial release of our alabama nol carryforward valuation allowance which were partially offset by two tax charges : ( 1 ) $ 21.1 million of lost tax benefits associated with tax deductions accelerated into 2017 ( e.g . , lost u.s. production deduction ) and ( 2 ) a $ 12.3 million tax expense for the one-time deemed repatriation transition tax see note 9 โ income taxes โ in item 8 โ financial statements and supplementary data . โ discontinued operations pretax earnings ( loss ) from discontinued operations were : ๏ง $ ( 6.5 ) million in 2019 ๏ง $ ( 2.7 ) million in 2018 ๏ง $ 13.0 million in 2017 pretax earnings ( loss ) from discontinued operations for 2019 , 2018 and 2017 , resulted primarily from general and product liability costs , including legal defense costs and environmental remediation costs associated with our former chemicals business . the 2017 results also include insurance recoveries from previously incurred general liability costs . for additional information about discontinued operations , see note 1 โ summary of significant accounting policies โ in item 8 โ financial statements and supplementary data โ under the caption discontinued operations . part ii 44 reconciliation of non-gaap financial measures same-store we have provided certain information on a same-store basis . when discussing our financial results in comparison to prior periods , we may exclude the operating results of recently acquired/divested businesses that do not have comparable results in the periods being discussed . these recently acquired/divested businesses are disclosed in note 19 โ acquisitions and divestitures โ in item 8 โ financial statements and supplementary data . โ this approach allows us to evaluate the performance of our operations on a comparable basis . we believe that measuring performance on a same-store basis is useful to investors because it enables evaluation of how our operations are performing period over period without the effects of acquisition and divestiture activity . our same-store information may not be comparable to similar measures used by other companies . aggregates segment freight-adjusted revenues aggregates segment freight-adjusted revenues is not a generally accepted accounting principle ( gaap ) measure . we present this measure as it is consistent with the basis by which we review our operating results . we believe that this presentation is consistent with our competitors and meaningful to our investors as it excludes revenues associated with freight & delivery , which are pass-through activities . it also excludes immaterial other revenues related to services , such as landfill tipping fees , that are derived from our aggregates business . additionally , we use this metric as the basis for calculating the average sales price of our aggregates products . reconciliation of this metric to its nearest gaap measure is presented below : replace_table_token_11_th 1
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2,397 | we intend to retain ownership of our designs , and we expect to be compensated through license fees and royalties based on sales of rf front-end filters that incorporate our designs . we currently do not intend to manufacture or sell any physical products or operate as a contract design company developing designs for a fee . we anticipate a significant delay between the start of a design and the start of royalty payments under a particular license . in some cases , we may grant the customer a limited period of exclusivity on a specific design or frequency band to enable the customer to be the first to market with the design . we do not expect any of these exclusivity provisions to have any long-term duration nor prevent us from concurrently working on filter designs in other bands for other customers . we plan to pursue filter design projects with potential customers and other strategic partners . these types of arrangements may subsidize filter design costs , as well as offer complementary technology and market intelligence . however , we intend to retain ownership of our technology , designs and related improvements . our goal is to establish and leverage alliances with new customers , who will help grow the market for our designs by integrating them with their own proprietary technology and products , thus combining their own particular strengths with ours to provide an extensive array of solutions . we are using the net proceeds from our ipo for product development to commercialize our technology , research and development , the development of our patent strategy and expansion of our patent portfolio , as well as for working capital and other general corporate purposes . our anticipated costs include employee salaries and benefits , compensation paid to consultants , capital costs for research and other equipment , costs associated with development activities including travel and administration , legal expenses , sales and marketing costs , general and administrative expenses , and other costs associated with 28 a late-stage , publicly-traded technology company . however , this is highly dependent on the nature of our development efforts and our success in commercialization . we anticipate adding employees for research and development , as well as general and administrative functions , to support our efforts . we expect to incur consulting expenses related to technology development and other efforts as well as legal and related expenses to protect our intellectual property . the amounts that we actually spend for any specific purpose may vary significantly and will depend on a number of factors including , but not limited to , our expected cash resources , the pace of progress of our commercialization and development efforts , actual needs with respect to product testing , development and research , market conditions , and changes in or revisions to our marketing strategies . in addition , we may invest in complementary products , technologies or businesses . we have earned no revenue since inception , and our operations have been funded with the initial capital contributions , proceeds from the sale of equity securities and debt . we have incurred accumulated losses totaling $ 30.9 million from inception through december 31 , 2015 . these losses are primarily the result of research and development costs associated with commercializing our technology , combined with start-up and operating costs including those related to financings and being a public company . we expect to continue to incur substantial costs for commercialization of our technology on a continuous basis because our business model involves developing and licensing custom filter designs . our principal sources of liquidity as of december 31 , 2015 consist of existing cash balances and investments of $ 5.5 million . currently , we are using approximately $ 2.3 million in cash per quarter in operating activities excluding fixed asset purchases and investments in patents . due to these conditions , substantial doubt exists as to our ability to continue as a going concern . we believe our current resources will provide sufficient funding for planned operations through the second quarter of 2016. we have determined that additional capital from the sale of equity securities or the incurrence of indebtedness will be required for us to continue operations beyond the second quarter of 2016. we are in discussions with potential investors to provide us with equity funding . we also continue to have discussions with potential lenders , potential customers and or strategic corporate partners that may provide funding to us through debt instruments or the licensing of future filter designs or development projects . there can be no assurance that additional financing will be available to us on acceptable terms , or at all . additionally , if we issue additional equity securities to raise funds , whether to potential customers or other investors , the ownership percentage of our existing stockholders would be reduced . new investors may demand rights , preferences or privileges senior to those of existing holders of common stock . additionally , we may be limited as to the amount of funds we can raise pursuant to the continued listing requirements of nasdaq . if we can not raise needed funds , we might be forced to make substantial reductions in our operating expenses , which could adversely affect our ability to implement our business plan and ultimately our viability as a company . results of operations comparison of the years ended december 31 , 2014 and 2015 research and development . research and development expenses consist of the direct engineering and other costs associated with the development and commercialization of our technology , including the development of filter designs for our customers . these consist primarily of the cost of employees and consultants , and to a lesser extent costs for equipment , software and supplies . story_separator_special_tag a valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some portion or the entire deferred tax asset will not be realized . as part of the process of preparing our consolidated financial statements , we are required to estimate our income tax expense in each of the jurisdictions in which we operate . we also assess temporary differences resulting from differing treatment of items for tax and accounting differences . we record a valuation allowance to reduce the deferred tax assets to the amount of future tax benefit that is more likely than not to be realized . for the period when we were organized as a limited liability company , we were treated as a partnership for federal and state income tax purposes under the entity classification domestic default rules . as of december 31 , 2014 and 2015 , no liability for unrecognized tax benefits was required to be reported . we recognize interest and penalties related to income tax matters in income taxes , and there were none for the years ended december 31 , 2014 and december 31 , 2015 . 33 we have filed , or are in the process of filing , tax returns that are subject to audit by the respective tax authorities . although the ultimate outcome would be unknown , we believe that any adjustments that may result from tax return audits are not likely to have a material , adverse effect on our consolidated results of operations , financial position or cash flows . effective november 2015 , the fasb issued final guidance in accounting standards update 2015-17 , balance sheet classification of deferred taxes , which requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts . the guidance is effective for financial statements issued for annual periods beginning after december 15 , 2016 , and interim periods within those annual periods . early adoption is permitted for all companies in any interim or annual period , and may be adopted on either a prospective or retrospective basis . we have adopted this standard for the interim and annual period ending december 31 , 2015 on a prospective basis . earnings per share , or eps โeps is computed in accordance with asc topic 260 , earnings per share , and is calculated using the weighted average number of common shares outstanding during each period . diluted eps assumes the conversion , exercise or issuance of all potential common stock equivalents unless the effect is to reduce a loss or increase the income per share . potential common shares consist of the incremental common shares issuable upon the exercise of stock options ( using the treasury stock method ) , the exercise and or conversion of our convertible notes and warrants ( using the if-converted method ) . recently issued and adopted accounting pronouncements presentation of financial statementsโgoing concern โthis new guidance formally establishes management 's responsibility to evaluate at each reporting period whether there is substantial doubt about the entity 's ability to continue as a going concern for a period of one year after the date the financial statements are issued , and to provide related footnote disclosures . asu no . 2014-15 is effective for annual reporting periods ending after december 15 , 2016 , and for interim and annual periods thereafter and early adoption is permitted . we have not early adopted and when adopted we do not expect it to have a material impact on our consolidated financial statements . we will continue to evaluate the effect on a going forward basis . simplifying the presentation of debt issuance costs โin april 2015 , the fasb issued asu no . 2015-03 , which requires that debt issuance costs be presented not as an asset but as a reduction of the carrying amount of the related debt liability , similar to a debt discount . asu no . 2015-03 is effective for annual periods beginning after december 15 , 2015 , and interim periods within those annual periods , with early adoption permitted . we will adopt asu no . 2015-03 on january 1 , 2016 , and such adoption is not expected to have a material impact on our consolidated financial statements as we do not have any outstanding debt . revenue from contracts with customers โin july 2015 , the fasb voted to approve a one-year delay of the effective date of asu no . 2014-09 , which replaces the majority of all u.s. gaap guidance that currently exists on revenue recognition with a single model to be applied to all contracts with customers . the core principle of asu 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . asu 2014-09 is effective for annual reporting periods beginning after december 15 , 2017 , including interim periods within that reporting period . early application is not permitted . an entity must apply asu 2014-09 using either the full retrospective approach , by restating all years presented , or the cumulative effect at the date of adoption approach . there is no impact that these changes will have on our consolidated financial statements as we have not recorded revenue yet . balance sheet classification of deferred taxesโ in november 2015 , fasb issued final guidance in asu 2015-17 , which requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts . the guidance is effective for financial statements issued for annual periods beginning after december 15 , 2016 , and interim periods within those annual periods . early adoption
| liquidity and capital resources financing activities we have earned no revenue since inception . our operations have been funded with capital contributions , debt and equity . we began operations in july 2012 with initial capital contributions from our founders and sti . the founders contributed $ 200,000 and agreed to work full-time without pay until we secured adequate funding . sti contributed a patent portfolio , software , equipment , temporary office space and an early version of our first development agreement . the founders received class b units in resonant llc , but later exchanged their class b units for common stock of resonant inc. sti received class c units in resonant llc , but later exchanged its class c units for the $ 2.4 million subordinated convertible note of resonant inc. our founders provided $ 200,000 of bridge loans during the first and second quarters of 2013. we raised $ 6.3 million of net proceeds from the sale of senior convertible notes in june 2013 , and we used part of the proceeds to repay the bridge loans to our founders . in june 2014 , we sold 3,105,000 shares of common stock in an ipo generating net proceeds of $ 16.2 million . we had current assets of $ 5.6 million and current liabilities of $ 1.1 million at december 31 , 2015 , resulting in working capital of $ 4.5 million . this compares to working capital of $ 13.2 million at december 31 , 2014. the change in working capital is primarily the result of the use of cash in our normal business operations . our principal sources of liquidity as of december 31 , 2015 consist of existing cash balances and investments of $ 5.5 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources financing activities we have earned no revenue since inception . our operations have been funded with capital contributions , debt and equity . we began operations in july 2012 with initial capital contributions from our founders and sti . the founders contributed $ 200,000 and agreed to work full-time without pay until we secured adequate funding . sti contributed a patent portfolio , software , equipment , temporary office space and an early version of our first development agreement . the founders received class b units in resonant llc , but later exchanged their class b units for common stock of resonant inc. sti received class c units in resonant llc , but later exchanged its class c units for the $ 2.4 million subordinated convertible note of resonant inc. our founders provided $ 200,000 of bridge loans during the first and second quarters of 2013. we raised $ 6.3 million of net proceeds from the sale of senior convertible notes in june 2013 , and we used part of the proceeds to repay the bridge loans to our founders . in june 2014 , we sold 3,105,000 shares of common stock in an ipo generating net proceeds of $ 16.2 million . we had current assets of $ 5.6 million and current liabilities of $ 1.1 million at december 31 , 2015 , resulting in working capital of $ 4.5 million . this compares to working capital of $ 13.2 million at december 31 , 2014. the change in working capital is primarily the result of the use of cash in our normal business operations . our principal sources of liquidity as of december 31 , 2015 consist of existing cash balances and investments of $ 5.5 million .
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Suspicious Activity Report : we intend to retain ownership of our designs , and we expect to be compensated through license fees and royalties based on sales of rf front-end filters that incorporate our designs . we currently do not intend to manufacture or sell any physical products or operate as a contract design company developing designs for a fee . we anticipate a significant delay between the start of a design and the start of royalty payments under a particular license . in some cases , we may grant the customer a limited period of exclusivity on a specific design or frequency band to enable the customer to be the first to market with the design . we do not expect any of these exclusivity provisions to have any long-term duration nor prevent us from concurrently working on filter designs in other bands for other customers . we plan to pursue filter design projects with potential customers and other strategic partners . these types of arrangements may subsidize filter design costs , as well as offer complementary technology and market intelligence . however , we intend to retain ownership of our technology , designs and related improvements . our goal is to establish and leverage alliances with new customers , who will help grow the market for our designs by integrating them with their own proprietary technology and products , thus combining their own particular strengths with ours to provide an extensive array of solutions . we are using the net proceeds from our ipo for product development to commercialize our technology , research and development , the development of our patent strategy and expansion of our patent portfolio , as well as for working capital and other general corporate purposes . our anticipated costs include employee salaries and benefits , compensation paid to consultants , capital costs for research and other equipment , costs associated with development activities including travel and administration , legal expenses , sales and marketing costs , general and administrative expenses , and other costs associated with 28 a late-stage , publicly-traded technology company . however , this is highly dependent on the nature of our development efforts and our success in commercialization . we anticipate adding employees for research and development , as well as general and administrative functions , to support our efforts . we expect to incur consulting expenses related to technology development and other efforts as well as legal and related expenses to protect our intellectual property . the amounts that we actually spend for any specific purpose may vary significantly and will depend on a number of factors including , but not limited to , our expected cash resources , the pace of progress of our commercialization and development efforts , actual needs with respect to product testing , development and research , market conditions , and changes in or revisions to our marketing strategies . in addition , we may invest in complementary products , technologies or businesses . we have earned no revenue since inception , and our operations have been funded with the initial capital contributions , proceeds from the sale of equity securities and debt . we have incurred accumulated losses totaling $ 30.9 million from inception through december 31 , 2015 . these losses are primarily the result of research and development costs associated with commercializing our technology , combined with start-up and operating costs including those related to financings and being a public company . we expect to continue to incur substantial costs for commercialization of our technology on a continuous basis because our business model involves developing and licensing custom filter designs . our principal sources of liquidity as of december 31 , 2015 consist of existing cash balances and investments of $ 5.5 million . currently , we are using approximately $ 2.3 million in cash per quarter in operating activities excluding fixed asset purchases and investments in patents . due to these conditions , substantial doubt exists as to our ability to continue as a going concern . we believe our current resources will provide sufficient funding for planned operations through the second quarter of 2016. we have determined that additional capital from the sale of equity securities or the incurrence of indebtedness will be required for us to continue operations beyond the second quarter of 2016. we are in discussions with potential investors to provide us with equity funding . we also continue to have discussions with potential lenders , potential customers and or strategic corporate partners that may provide funding to us through debt instruments or the licensing of future filter designs or development projects . there can be no assurance that additional financing will be available to us on acceptable terms , or at all . additionally , if we issue additional equity securities to raise funds , whether to potential customers or other investors , the ownership percentage of our existing stockholders would be reduced . new investors may demand rights , preferences or privileges senior to those of existing holders of common stock . additionally , we may be limited as to the amount of funds we can raise pursuant to the continued listing requirements of nasdaq . if we can not raise needed funds , we might be forced to make substantial reductions in our operating expenses , which could adversely affect our ability to implement our business plan and ultimately our viability as a company . results of operations comparison of the years ended december 31 , 2014 and 2015 research and development . research and development expenses consist of the direct engineering and other costs associated with the development and commercialization of our technology , including the development of filter designs for our customers . these consist primarily of the cost of employees and consultants , and to a lesser extent costs for equipment , software and supplies . story_separator_special_tag a valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some portion or the entire deferred tax asset will not be realized . as part of the process of preparing our consolidated financial statements , we are required to estimate our income tax expense in each of the jurisdictions in which we operate . we also assess temporary differences resulting from differing treatment of items for tax and accounting differences . we record a valuation allowance to reduce the deferred tax assets to the amount of future tax benefit that is more likely than not to be realized . for the period when we were organized as a limited liability company , we were treated as a partnership for federal and state income tax purposes under the entity classification domestic default rules . as of december 31 , 2014 and 2015 , no liability for unrecognized tax benefits was required to be reported . we recognize interest and penalties related to income tax matters in income taxes , and there were none for the years ended december 31 , 2014 and december 31 , 2015 . 33 we have filed , or are in the process of filing , tax returns that are subject to audit by the respective tax authorities . although the ultimate outcome would be unknown , we believe that any adjustments that may result from tax return audits are not likely to have a material , adverse effect on our consolidated results of operations , financial position or cash flows . effective november 2015 , the fasb issued final guidance in accounting standards update 2015-17 , balance sheet classification of deferred taxes , which requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts . the guidance is effective for financial statements issued for annual periods beginning after december 15 , 2016 , and interim periods within those annual periods . early adoption is permitted for all companies in any interim or annual period , and may be adopted on either a prospective or retrospective basis . we have adopted this standard for the interim and annual period ending december 31 , 2015 on a prospective basis . earnings per share , or eps โeps is computed in accordance with asc topic 260 , earnings per share , and is calculated using the weighted average number of common shares outstanding during each period . diluted eps assumes the conversion , exercise or issuance of all potential common stock equivalents unless the effect is to reduce a loss or increase the income per share . potential common shares consist of the incremental common shares issuable upon the exercise of stock options ( using the treasury stock method ) , the exercise and or conversion of our convertible notes and warrants ( using the if-converted method ) . recently issued and adopted accounting pronouncements presentation of financial statementsโgoing concern โthis new guidance formally establishes management 's responsibility to evaluate at each reporting period whether there is substantial doubt about the entity 's ability to continue as a going concern for a period of one year after the date the financial statements are issued , and to provide related footnote disclosures . asu no . 2014-15 is effective for annual reporting periods ending after december 15 , 2016 , and for interim and annual periods thereafter and early adoption is permitted . we have not early adopted and when adopted we do not expect it to have a material impact on our consolidated financial statements . we will continue to evaluate the effect on a going forward basis . simplifying the presentation of debt issuance costs โin april 2015 , the fasb issued asu no . 2015-03 , which requires that debt issuance costs be presented not as an asset but as a reduction of the carrying amount of the related debt liability , similar to a debt discount . asu no . 2015-03 is effective for annual periods beginning after december 15 , 2015 , and interim periods within those annual periods , with early adoption permitted . we will adopt asu no . 2015-03 on january 1 , 2016 , and such adoption is not expected to have a material impact on our consolidated financial statements as we do not have any outstanding debt . revenue from contracts with customers โin july 2015 , the fasb voted to approve a one-year delay of the effective date of asu no . 2014-09 , which replaces the majority of all u.s. gaap guidance that currently exists on revenue recognition with a single model to be applied to all contracts with customers . the core principle of asu 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . asu 2014-09 is effective for annual reporting periods beginning after december 15 , 2017 , including interim periods within that reporting period . early application is not permitted . an entity must apply asu 2014-09 using either the full retrospective approach , by restating all years presented , or the cumulative effect at the date of adoption approach . there is no impact that these changes will have on our consolidated financial statements as we have not recorded revenue yet . balance sheet classification of deferred taxesโ in november 2015 , fasb issued final guidance in asu 2015-17 , which requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts . the guidance is effective for financial statements issued for annual periods beginning after december 15 , 2016 , and interim periods within those annual periods . early adoption
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2,398 | as a result of the availability of debt and equity capital , a multitude of buyers seeking investment opportunities , including unlisted reits and private equity funds , threaten to result in an oversold market and have led nhi to more value-based investment judgments . as capitalization rates have fallen for existing healthcare facilities , there has been increased interest in constructing new facilities in hopes of generating better returns on invested capital . using our relationship-driven model , we look for opportunities to support new and existing tenants and borrowers , with the capital needed to expand existing facilities and to initiate ground-up development of new facilities in markets where there is demonstrated demand for a particular product type . the projects we agree to finance have attractive upside potential and are expected to provide above-average returns to our shareholders to mitigate the risks inherent with property development and construction . for the year ended december 31 , 2014 , approximately 37 % of our revenue from continuing operations has come from operators of our skilled nursing facilities that receive a significant portion of their revenue from governmental payors , primarily medicare and medicaid . such revenues are subject annually to statutory and regulatory changes , and in recent years , have been reduced due to federal and state budgetary pressures . in 2009 , we began to diversify our portfolio by directing a significant portion of our investments into properties which do not rely primarily on medicare and medicaid reimbursement , but rather on private pay sources . while we will occasionally acquire skilled nursing facilities in good physical condition with a proven operator and strong local market fundamentals , our recent investment focus has been on acquiring need-driven and senior housing assets ( including assisted living and memory care facilities , senior living campuses , independent living facilities and entrance-fee communities ) . as a result of the holiday investment we made in december 2013 , our revenue from skilled nursing facilities , as a percentage of continuing operations revenue , has continued to decline . our december 2014 acquisition of eight senior living communities further broadens the private payor model within our portfolio and reduces our exposure to the government single-payor model . these acquisitions represent continued diversification across asset types and further exemplify our strategy of focusing on well-established tenants who are recognized leaders in their industries . considering individual tenant lease revenue as a percentage of total revenue , bickford senior living is our largest assisted living/memory care tenant , an affiliate of holiday retirement is our largest independent living tenant , national healthcare corporation is our largest skilled nursing tenant and for 2015 senior living communities is expected to be our largest entrance-fee community tenant . our shift toward private payor facilities , as well as our recent expansion into the discretionary senior housing market , has resulted in a portfolio that is relatively balanced between medical facilities , need-driven senior housing and discretionary senior housing . the following table illustrates this shift by comparing our total lease revenue for 2013 compared to a full year of lease revenue for leases in place as of december 31 , 2014 ( in thousands ) : 28 replace_table_token_7_th * this is the lease revenue our portfolio would generate if all lease contracts were in effect for the twelve-month calendar year , regardless of the commencement date , maturity date , or renewals . therefore , this amount is used for financial analysis purposes , and is not indicative of actual or expected results . if longer term borrowing rates increase as we expect , there will be pressure on the spread between our cost of capital and the returns we earn . we expect that pressure to be partially mitigated by market forces that have led to an increase in asset prices and likely will lead to increased lease rates , as well . our cost of capital has increased as we execute our plan to transition some of our short term revolving borrowings into debt instruments with longer maturities and fixed interest rates . managing risk involves trade-offs with the competing goal of maximizing short-term profitability . our intention is to strike an appropriate balance between these competing interests within the context of our investor profile . in 2015 , we plan to announce our participation in an at-the market ( `` atm `` ) equity program whereby we may sell our common shares on as as-needed basis . atms are a type of shelf-based offering which provide issuers the ability to sell publicly traded shares at the prevailing market price at the time and amount of their choosing . an atm program offers an effective way to match-fund our smaller acquisitions by exercising control over the timing and size of transactions at a more favorable cost of capital as compared to larger follow-on offerings . by raising funds through the atm along with borrowings from our credit facility , we expect to continue to maintain our leverage ratio as one of the lowest in our peer group . we continue to explore other various funding sources including bank term loans , convertible debt , traditional equity placement , unsecured bonds and senior notes , debt private placement and secured government agency financing . we manage our business with a goal of increasing the regular annual dividends paid to shareholders . our board of directors approves a regular quarterly dividend which is reflective of expected taxable income on a recurring basis . our transactions that are infrequent and non-recurring that generate additional taxable income have been distributed to shareholders in the form of special dividends . taxable income is determined in accordance with the internal revenue code and differs from net income for financial statements purposes determined in accordance with u.s. generally accepted accounting principles . story_separator_special_tag these facilities are leased to nhc under the terms an amended master lease agreement dated october 17 , 1991 ( `` the 1991 lease `` ) which includes our 35 remaining legacy properties and a master lease agreement dated august 30 , 2013 ( `` the 2013 lease `` ) , discussed below , which includes seven skilled nursing facilities acquired from eldertrust on august 31 , 2013. the 1991 lease has been amended to extend the lease expiration to december 31 , 2026. there are two additional 5-year renewal options , each at fair rental value of such leased property as negotiated between the parties and determined without including the value attributable to any improvements to the leased property voluntarily made by nhc at its expense . under the terms of the 1991 lease , the base annual rental is $ 30,750,000 and rent escalates by 4 % of the increase , if any , in each facility 's revenue over 32 a 2007 base year . the 2013 lease provides for a base annual rental of $ 3,450,000 and has a lease expiration of august 2028. under the terms of the 2013 lease , rent escalates 4 % of the increase in each facility 's revenue over the 2014 base year . for both the 1991 lease and the 2013 lease , we refer to this additional rent component as โ percentage rent . โ during the last three years of the 2013 lease , nhc will have the option to purchase the facilities for $ 49,000,000. the following table summarizes the percentage rent received and recognized from nhc ( in thousands ) : replace_table_token_9_th 1 for purposes of the percentage rent calculation described in the master lease agreement , nhc 's annual revenue by facility for a given year is certified to nhi by march 31st of the following year . of our total revenue from continuing operations , $ 36,446,000 ( 21 % ) , $ 34,756,000 ( 29 % ) and $ 33,056,000 ( 35 % ) in 2014 , 2013 and 2012 , respectively , were derived from nhc . bickford as of december 31 , 2014 , we owned an 85 % equity interest and an affiliate of bickford , sycamore street , llc ( `` sycamore `` ) , owned a 15 % equity interest in our consolidated subsidiary ( `` propco `` ) which owns 31 assisted living/memory care facilities . the facilities are leased to an operating company , ( `` opco `` ) , in which we retain a non-controlling 85 % ownership interest . our joint venture is structured to comply with the provisions of ridea . on october 31 , 2014 , our subsidiary , propco , acquired a 101 -unit assisted living facility located in middletown , ohio for $ 16,488,000 , including $ 65,000 in transaction costs and assumption of secured debt at an interest rate of 2.9 % with an outstanding principal balance of $ 9,535,000 and an estimated fair value of $ 7,858,000 . the facility was leased to opco under an existing master lease and provides for fixed annual escalators . because the facility was owner-occupied , the acquisition was accounted for as an asset purchase . the current annual contractual rent from opco to propco is $ 22,595,000 , plus fixed annual escalators . during the quarter ended december 31 , 2014 , propco completed major construction and received a certificate of occupancy on an assisted living facility which had been under development . under the terms of the current development lease agreement , nhi continues to receive rent of 9 % on the total amount of development costs , including land , which totaled $ 7,811,000 at december 31 , 2014 . opco is continuing the lease-up of 3 facilities , 2 of which opened in the fourth quarter of 2013. once the facilities stabilize , an annual rental amount will be determined between the parties . nhi has an exclusive right to bickford 's future acquisitions , development projects and refinancing transactions . on february 5 , 2015 , we announced a new development program pursuant to which our ridea joint venture with bickford will develop five senior housing communities in illinois and virginia . construction is slated to start in early 2015 with openings planned for 2016. the total estimated project cost is $ 55,000,000. each community will consist of 60 private-pay assisted living and memory care units managed by bickford senior living . of our total revenue from continuing operations , $ 21,421,000 ( 12 % ) , $ 14,586,000 ( 12 % ) and $ 5,164,000 ( 6 % ) were recorded as rental income from bickford for the years ended december 31 , 2014 , 2013 , and 2012 , respectively . as of december 31 , 2014 , the carrying value of our investment in the operating company , opco , was $ 9,424,000 . the excess of the original purchase price over the fair value of identified tangible assets at acquisition of $ 8,986,000 is treated as implied goodwill and is subject to periodic review for impairment in conjunction with our equity method investment as a whole . with propco 's acquisition of additional bickford properties in june 2013 , an assignment was entered into whereby the operations of the 17 newly acquired facilities were conveyed by an affiliate of bickford to opco . the transaction mandated the effective cut-off of operating revenues and expenses and the settlement of operating assets and liabilities at the acquisition date . specified remaining net tangible assets were assigned to opco at the transferor 's carryover basis resulting in an adjustment , through nhi 's capital in excess of par value to our equity method investment in opco , of $ 817,000 . 33 the results of operations for opco include the impact of startup operations for the newly constructed facilities currently in lease-up which are expected
| liquidity at december 31 , 2014 , $ 94,790,000 was available in cash , highly-liquid marketable securities and borrowing capacity on our revolving credit facility . as of january 15 , 2015 , with the placement of $ 225,000,000 in senior unsecured notes and the use of the proceeds to free availability on our revolving credit facility , further discussed below , we had approximately $ 320,000,000 available in cash , highly-liquid marketable securities and borrowing capacity on our revolving credit facility . in addition , our investment in ltc preferred stock is convertible into 2,000,000 shares of common stock whose per share price ranged between $ 37 and $ 44 during the quarter ended december 31 , 2014 . cash collected from our loans and leases is used to pay debt service , the expenses of operating the reit , our dividends to stockholders and to make new real estate investments . in march 2014 we issued $ 200,000,000 of 3.25 % senior unsecured convertible notes due april 2021 ( the `` notes '' ) . interest is payable april 1st and october 1st of each year . the notes are convertible at an initial conversion rate of 13.926 shares of common stock per $ 1,000 principal amount , representing a conversion price of approximately $ 71.81 per share for a total of approximately 2,785,200 underlying shares . the conversion rate is subject to adjustment upon the occurrence of certain events , as defined in the indenture governing the notes , but will not be adjusted for any accrued and unpaid interest except in limited circumstances . upon conversion , nhi 's conversion obligation may be satisfied , at our option , in cash , shares of common stock or a combination of cash and shares of common stock .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity at december 31 , 2014 , $ 94,790,000 was available in cash , highly-liquid marketable securities and borrowing capacity on our revolving credit facility . as of january 15 , 2015 , with the placement of $ 225,000,000 in senior unsecured notes and the use of the proceeds to free availability on our revolving credit facility , further discussed below , we had approximately $ 320,000,000 available in cash , highly-liquid marketable securities and borrowing capacity on our revolving credit facility . in addition , our investment in ltc preferred stock is convertible into 2,000,000 shares of common stock whose per share price ranged between $ 37 and $ 44 during the quarter ended december 31 , 2014 . cash collected from our loans and leases is used to pay debt service , the expenses of operating the reit , our dividends to stockholders and to make new real estate investments . in march 2014 we issued $ 200,000,000 of 3.25 % senior unsecured convertible notes due april 2021 ( the `` notes '' ) . interest is payable april 1st and october 1st of each year . the notes are convertible at an initial conversion rate of 13.926 shares of common stock per $ 1,000 principal amount , representing a conversion price of approximately $ 71.81 per share for a total of approximately 2,785,200 underlying shares . the conversion rate is subject to adjustment upon the occurrence of certain events , as defined in the indenture governing the notes , but will not be adjusted for any accrued and unpaid interest except in limited circumstances . upon conversion , nhi 's conversion obligation may be satisfied , at our option , in cash , shares of common stock or a combination of cash and shares of common stock .
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Suspicious Activity Report : as a result of the availability of debt and equity capital , a multitude of buyers seeking investment opportunities , including unlisted reits and private equity funds , threaten to result in an oversold market and have led nhi to more value-based investment judgments . as capitalization rates have fallen for existing healthcare facilities , there has been increased interest in constructing new facilities in hopes of generating better returns on invested capital . using our relationship-driven model , we look for opportunities to support new and existing tenants and borrowers , with the capital needed to expand existing facilities and to initiate ground-up development of new facilities in markets where there is demonstrated demand for a particular product type . the projects we agree to finance have attractive upside potential and are expected to provide above-average returns to our shareholders to mitigate the risks inherent with property development and construction . for the year ended december 31 , 2014 , approximately 37 % of our revenue from continuing operations has come from operators of our skilled nursing facilities that receive a significant portion of their revenue from governmental payors , primarily medicare and medicaid . such revenues are subject annually to statutory and regulatory changes , and in recent years , have been reduced due to federal and state budgetary pressures . in 2009 , we began to diversify our portfolio by directing a significant portion of our investments into properties which do not rely primarily on medicare and medicaid reimbursement , but rather on private pay sources . while we will occasionally acquire skilled nursing facilities in good physical condition with a proven operator and strong local market fundamentals , our recent investment focus has been on acquiring need-driven and senior housing assets ( including assisted living and memory care facilities , senior living campuses , independent living facilities and entrance-fee communities ) . as a result of the holiday investment we made in december 2013 , our revenue from skilled nursing facilities , as a percentage of continuing operations revenue , has continued to decline . our december 2014 acquisition of eight senior living communities further broadens the private payor model within our portfolio and reduces our exposure to the government single-payor model . these acquisitions represent continued diversification across asset types and further exemplify our strategy of focusing on well-established tenants who are recognized leaders in their industries . considering individual tenant lease revenue as a percentage of total revenue , bickford senior living is our largest assisted living/memory care tenant , an affiliate of holiday retirement is our largest independent living tenant , national healthcare corporation is our largest skilled nursing tenant and for 2015 senior living communities is expected to be our largest entrance-fee community tenant . our shift toward private payor facilities , as well as our recent expansion into the discretionary senior housing market , has resulted in a portfolio that is relatively balanced between medical facilities , need-driven senior housing and discretionary senior housing . the following table illustrates this shift by comparing our total lease revenue for 2013 compared to a full year of lease revenue for leases in place as of december 31 , 2014 ( in thousands ) : 28 replace_table_token_7_th * this is the lease revenue our portfolio would generate if all lease contracts were in effect for the twelve-month calendar year , regardless of the commencement date , maturity date , or renewals . therefore , this amount is used for financial analysis purposes , and is not indicative of actual or expected results . if longer term borrowing rates increase as we expect , there will be pressure on the spread between our cost of capital and the returns we earn . we expect that pressure to be partially mitigated by market forces that have led to an increase in asset prices and likely will lead to increased lease rates , as well . our cost of capital has increased as we execute our plan to transition some of our short term revolving borrowings into debt instruments with longer maturities and fixed interest rates . managing risk involves trade-offs with the competing goal of maximizing short-term profitability . our intention is to strike an appropriate balance between these competing interests within the context of our investor profile . in 2015 , we plan to announce our participation in an at-the market ( `` atm `` ) equity program whereby we may sell our common shares on as as-needed basis . atms are a type of shelf-based offering which provide issuers the ability to sell publicly traded shares at the prevailing market price at the time and amount of their choosing . an atm program offers an effective way to match-fund our smaller acquisitions by exercising control over the timing and size of transactions at a more favorable cost of capital as compared to larger follow-on offerings . by raising funds through the atm along with borrowings from our credit facility , we expect to continue to maintain our leverage ratio as one of the lowest in our peer group . we continue to explore other various funding sources including bank term loans , convertible debt , traditional equity placement , unsecured bonds and senior notes , debt private placement and secured government agency financing . we manage our business with a goal of increasing the regular annual dividends paid to shareholders . our board of directors approves a regular quarterly dividend which is reflective of expected taxable income on a recurring basis . our transactions that are infrequent and non-recurring that generate additional taxable income have been distributed to shareholders in the form of special dividends . taxable income is determined in accordance with the internal revenue code and differs from net income for financial statements purposes determined in accordance with u.s. generally accepted accounting principles . story_separator_special_tag these facilities are leased to nhc under the terms an amended master lease agreement dated october 17 , 1991 ( `` the 1991 lease `` ) which includes our 35 remaining legacy properties and a master lease agreement dated august 30 , 2013 ( `` the 2013 lease `` ) , discussed below , which includes seven skilled nursing facilities acquired from eldertrust on august 31 , 2013. the 1991 lease has been amended to extend the lease expiration to december 31 , 2026. there are two additional 5-year renewal options , each at fair rental value of such leased property as negotiated between the parties and determined without including the value attributable to any improvements to the leased property voluntarily made by nhc at its expense . under the terms of the 1991 lease , the base annual rental is $ 30,750,000 and rent escalates by 4 % of the increase , if any , in each facility 's revenue over 32 a 2007 base year . the 2013 lease provides for a base annual rental of $ 3,450,000 and has a lease expiration of august 2028. under the terms of the 2013 lease , rent escalates 4 % of the increase in each facility 's revenue over the 2014 base year . for both the 1991 lease and the 2013 lease , we refer to this additional rent component as โ percentage rent . โ during the last three years of the 2013 lease , nhc will have the option to purchase the facilities for $ 49,000,000. the following table summarizes the percentage rent received and recognized from nhc ( in thousands ) : replace_table_token_9_th 1 for purposes of the percentage rent calculation described in the master lease agreement , nhc 's annual revenue by facility for a given year is certified to nhi by march 31st of the following year . of our total revenue from continuing operations , $ 36,446,000 ( 21 % ) , $ 34,756,000 ( 29 % ) and $ 33,056,000 ( 35 % ) in 2014 , 2013 and 2012 , respectively , were derived from nhc . bickford as of december 31 , 2014 , we owned an 85 % equity interest and an affiliate of bickford , sycamore street , llc ( `` sycamore `` ) , owned a 15 % equity interest in our consolidated subsidiary ( `` propco `` ) which owns 31 assisted living/memory care facilities . the facilities are leased to an operating company , ( `` opco `` ) , in which we retain a non-controlling 85 % ownership interest . our joint venture is structured to comply with the provisions of ridea . on october 31 , 2014 , our subsidiary , propco , acquired a 101 -unit assisted living facility located in middletown , ohio for $ 16,488,000 , including $ 65,000 in transaction costs and assumption of secured debt at an interest rate of 2.9 % with an outstanding principal balance of $ 9,535,000 and an estimated fair value of $ 7,858,000 . the facility was leased to opco under an existing master lease and provides for fixed annual escalators . because the facility was owner-occupied , the acquisition was accounted for as an asset purchase . the current annual contractual rent from opco to propco is $ 22,595,000 , plus fixed annual escalators . during the quarter ended december 31 , 2014 , propco completed major construction and received a certificate of occupancy on an assisted living facility which had been under development . under the terms of the current development lease agreement , nhi continues to receive rent of 9 % on the total amount of development costs , including land , which totaled $ 7,811,000 at december 31 , 2014 . opco is continuing the lease-up of 3 facilities , 2 of which opened in the fourth quarter of 2013. once the facilities stabilize , an annual rental amount will be determined between the parties . nhi has an exclusive right to bickford 's future acquisitions , development projects and refinancing transactions . on february 5 , 2015 , we announced a new development program pursuant to which our ridea joint venture with bickford will develop five senior housing communities in illinois and virginia . construction is slated to start in early 2015 with openings planned for 2016. the total estimated project cost is $ 55,000,000. each community will consist of 60 private-pay assisted living and memory care units managed by bickford senior living . of our total revenue from continuing operations , $ 21,421,000 ( 12 % ) , $ 14,586,000 ( 12 % ) and $ 5,164,000 ( 6 % ) were recorded as rental income from bickford for the years ended december 31 , 2014 , 2013 , and 2012 , respectively . as of december 31 , 2014 , the carrying value of our investment in the operating company , opco , was $ 9,424,000 . the excess of the original purchase price over the fair value of identified tangible assets at acquisition of $ 8,986,000 is treated as implied goodwill and is subject to periodic review for impairment in conjunction with our equity method investment as a whole . with propco 's acquisition of additional bickford properties in june 2013 , an assignment was entered into whereby the operations of the 17 newly acquired facilities were conveyed by an affiliate of bickford to opco . the transaction mandated the effective cut-off of operating revenues and expenses and the settlement of operating assets and liabilities at the acquisition date . specified remaining net tangible assets were assigned to opco at the transferor 's carryover basis resulting in an adjustment , through nhi 's capital in excess of par value to our equity method investment in opco , of $ 817,000 . 33 the results of operations for opco include the impact of startup operations for the newly constructed facilities currently in lease-up which are expected
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2,399 | as a part of our planned supply chain robustness initiative , we opened two new plasma collection centers during 2020 , and we now have seven plasma collection centers in various stages of approval and development , including three that are fully operational and collecting plasma . with respect to our fully operational plasma collection centers , two hold fda licenses and the third has a biologics license application ( โ bla โ ) pending an fda decision expected in the fourth quarter of 2021. in addition , one of our fda-approved plasma collection centers also has approvals from the korean ministry of food and drug safety ( โ mfds โ ) , as well as fda approval to implement a hepatitis b immunization program . after giving effect to the progress we made in 2020 with our plasma collection network expansion , we believe we remain on track to achieve our goal of having 10 or more plasma collection centers operating in the u.s. by 2024. a typical plasma collection center , such as those operated by adma biocenters , can collect approximately 30,000 to 50,000 liters of source plasma annually , which may be sold for different prices depending upon the type of plasma , quantity of purchase and market conditions at the time of sale . plasma collected from adma biocenters ' facilities that is not used to manufacture our products or product candidates is sold to third-party customers in the u.s. and in other locations outside the u.s. where we are approved under supply agreements or in the open โ spot โ market . 53 we sell plasma-derived intermediate fractions to certain customers , which are generated as part of our fda-approved manufacturing process for ig and ivig products . in january 2020 , we announced our entry into a five-year manufacturing and supply agreement to produce and sell these intermediate by-products , which are used as the starting raw material to produce other plasma-derived biologics . in addition , from time to time we provide contract manufacturing and testing services for certain third-party clients . we also provide laboratory contracting services to certain customers and anticipate providing contract filling , labeling and packing services upon fda approval and implementation of our in-house fill-finish capabilities through our vanrx sa25 workcell aseptic filling machine . on june 6 , 2017 , we completed the acquisition of certain assets ( the โ biotest assets โ ) of the therapy business unit ( โ btbu โ ) of biotest pharmaceuticals corporation ( โ bpc โ and , together with biotest ag , โ biotest โ ) , which included two fda-licensed products , nabi-hb and bivigam , and an fda-licensed plasma fractionation facility located in boca raton , fl ( the โ boca facility โ ) ( the โ biotest transaction โ ) . our products bivigam bivigam is a plasma-derived ivig that contains a broad range of antibodies similar to those found in normal human plasma . these antibodies are directed against bacteria and viruses and help to protect pi patients against serious infections . bivigam is a purified , sterile , ready-to-use preparation of concentrated human immunoglobulin g antibodies indicated for the treatment of pi , a group of genetic disorders . this includes , but is not limited to , the humoral immune defect in common variable immunodeficiency , x-linked agammaglobulinemia , congenital agammaglobulinemia , wiskott-aldrich syndrome and severe combined immunodeficiency . these pis are a group of genetic disorders . based on recent estimates , these disorders are no longer considered to be very rare , with as many as one in every 1,200 people in the united states having some form of pi . on may 9 , 2019 , the fda approved the prior approval supplement ( the โ pas โ ) for the use of our ivig manufacturing process , thereby enabling us to commence commercial sales of this product in the united states . we resumed production of bivigam during the fourth quarter of 2017 and commercial production is ongoing , using our fda-approved ivig manufacturing process under u.s. department of health and human services ( โ hhs โ ) license no . 2019. we commenced commercial sales for this product in august of 2019. asceniv asceniv is a plasma-derived ivig that contains naturally occurring polyclonal antibodies , which are proteins that are used by the body 's immune system to neutralize microbes , such as bacteria and viruses , and prevent against infection and disease . we manufacture asceniv under hhs license no . 2019 using a process known as fractionation . the centers for medicare and medicaid services ( โ cms โ ) has issued a permanent , product-specific-j-code for asceniv . under the healthcare common procedure coding system ( โ hcpcs โ ) , the j-code ( j1554 ) will become effective april 1 , 2021 and will replace the currently issued c-code for asceniv ( c9072 ) , which can continue to be utilized in the interim for reimbursement purposes . as part of our proprietary manufacturing process for asceniv , we leverage our unique , patented plasma donor screening methodology and tailored plasma pooling design , which blends normal source plasma and plasma from donors tested to have high levels of neutralizing antibody titers to respiratory syncytial virus ( โ rsv โ ) using our proprietary microneutralization testing assay . we are able to identify the high titer or โ hyperimmune โ plasma that meets our internal and required specifications for asceniv with our patented testing methods and assay . this type of high titer plasma is typically found in less than 10 % of the total donor collection samples we test . story_separator_special_tag impairment of long-lived assets we assess the recoverability of our long-lived assets , which include property and equipment and definite-lived intangible assets , whenever significant events or changes in circumstances indicate impairment may have occurred . if indicators of impairment exist , projected future undiscounted cash flows associated with the asset are compared to its carrying amount to determine whether the asset 's carrying value is recoverable . any resulting impairment is recorded as a reduction in the carrying value of the related asset in excess of fair value and a charge to operating results . for the years ended december 31 , 2020 and 2019 , we determined that there was no impairment of our long-lived assets . goodwill is not amortized but is assessed for impairment on an annual basis or more frequently if impairment indicators exist . we have the option to perform a qualitative assessment of goodwill to determine whether it is more likely than not that the fair value of the reporting unit associated with the goodwill is less than its carrying amount , including goodwill and other intangible assets . if we conclude that this is the case , then we must perform a goodwill impairment test by comparing the fair value of the reporting unit to its carrying value . an impairment charge is recorded to the extent the reporting unit 's carrying value exceeds its fair value , with the impairment loss recognized not to exceed the total amount of goodwill allocated to that reporting unit . we did not recognize any impairment charges related to goodwill for the years ended december 31 , 2020 and 2019. recent accounting pronouncements in june 2016 , the financial accounting standards board ( the โ fasb โ ) issued accounting standards update ( โ asu โ ) no . 2016-13 , financial instruments โ credit losses ( topic 326 ) ( โ asu 2016-13 โ ) , which requires financial assets to be presented at the net amount expected to be collected , with an allowance for credit losses to be deducted from the amortized cost basis of the financial asset such that the net carrying value of the asset is presented as the amount expected to be collected . under asu 2016-13 , the entity 's statement of operations is required to reflect the measurement of credit losses for newly recognized financial assets , as well as expected increases or decreases in expected credit losses that have taken place during the period . for public business entities , asu 2016-13 is effective for fiscal years beginning after december 15 , 2019. we adopted asu no . 2016-13 on january 1 , 2020 , and the adoption of this update did not have a significant impact on our consolidated financial statements . 58 in july 2017 , the fasb issued asu no . 2017-11 , earnings per share ( topic 260 ) , distinguishing liabilities from equity ( topic 480 ) , derivatives and hedging ( topic 815 ) โ ( โ asu 2017-11 โ ) . asu 2017-11 changed the classification analysis of certain equity-linked financial instruments ( or embedded features within such instruments ) with down round features . when determining whether certain financial instruments should be classified as liabilities or equity instruments , a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity 's own stock . the amendments also clarify existing disclosure requirements for equity-classified instruments . as a result , a freestanding equity-linked financial instrument ( or embedded conversion option ) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature . for freestanding equity classified financial instruments , the amendments require entities that present earnings per share ( โ eps โ ) in accordance with asc 260 to recognize the effect of the down round feature when it is triggered . that effect is treated as a dividend and as a reduction of income available to common shareholders in basic eps . in addition , convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features in asc 470-20 , โ debtโdebt with conversion and other options . โ asu 2017-11 became effective for us on january 1 , 2019 , and this update did not have a significant impact on our consolidated financial statements . in february 2016 , the fasb issued asu no . 2016-02 , leases ( topic 842 ) ( โ asu 2016-02 โ ) , which requires lessees to recognize assets and liabilities for the rights and obligations created by most leases on their balance sheet . the guidance became effective for fiscal years beginning after december 15 , 2018 , including interim periods within those fiscal years . asu 2016-02 requires modified retrospective adoption for all leases existing at , or entered into after , the date of initial application , with an option to use certain transition relief . we adopted asu 2016-02 on january 1 , 2019 using the option to recognize the cumulative-effect adjustment , if any , as of the date of application , which was also january 1 , 2019. as a result , there was no restatement of comparative periods . we recognized right-to-use assets of approximately $ 1.4 million and corresponding lease liabilities of approximately $ 1.6 million at the date of adoption . we also elected the โ package of practical expedients , โ which permits us to not reassess under the new standard our prior conclusions about lease identification , lease classification and initial direct costs . in addition , we elected the short-term lease recognition exemption for all or embedded leases that qualify . year ended december 31 , 2020 compared to december 31 , 2019 the following table presents a summary of the changes in our results
| liquidity and capital resources as of december 31 , 2020 , we had working capital of $ 133.8 million , including cash and cash equivalents of $ 55.9 million , and stockholders ' equity of $ 88.2 million , as compared to working capital of $ 71.8 million , including cash and cash equivalents of $ 26.8 million , and stockholders ' equity of $ 26.2 million as of december 31 , 2019. we have incurred an accumulated deficit of $ 340.5 million since inception , had negative cash flows from operations of $ 102.0 million and $ 76.2 million for the years ended december 31 , 2020 and 2019 , respectively . we have funded our operations over the past few years primarily from the sale of our equity and debt securities . 61 we expect to continue to spend substantial amounts on procurement of raw material plasma and other raw materials necessary to scale up our manufacturing operations , commercial product launches , capacity expansion at the boca facility , building additional plasma collection facilities , product development , quality assurance , regulatory affairs and conducting clinical trials for our product candidates and purchasing clinical trial materials , some of which may be required by the fda . in addition , our end-to-end production cycle from procurement of raw materials to commercial release of finished product can take between seven and 12 months or potentially longer , requiring substantial investments in raw material plasma and other manufacturing materials . we expect that we will not be able to generate a sufficient amount of product revenue to achieve profitability until the beginning of 2024 and , as a result , we expect that we will need to continue to finance our operations through additional equity or debt financings or through corporate collaboration and licensing arrangements .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources as of december 31 , 2020 , we had working capital of $ 133.8 million , including cash and cash equivalents of $ 55.9 million , and stockholders ' equity of $ 88.2 million , as compared to working capital of $ 71.8 million , including cash and cash equivalents of $ 26.8 million , and stockholders ' equity of $ 26.2 million as of december 31 , 2019. we have incurred an accumulated deficit of $ 340.5 million since inception , had negative cash flows from operations of $ 102.0 million and $ 76.2 million for the years ended december 31 , 2020 and 2019 , respectively . we have funded our operations over the past few years primarily from the sale of our equity and debt securities . 61 we expect to continue to spend substantial amounts on procurement of raw material plasma and other raw materials necessary to scale up our manufacturing operations , commercial product launches , capacity expansion at the boca facility , building additional plasma collection facilities , product development , quality assurance , regulatory affairs and conducting clinical trials for our product candidates and purchasing clinical trial materials , some of which may be required by the fda . in addition , our end-to-end production cycle from procurement of raw materials to commercial release of finished product can take between seven and 12 months or potentially longer , requiring substantial investments in raw material plasma and other manufacturing materials . we expect that we will not be able to generate a sufficient amount of product revenue to achieve profitability until the beginning of 2024 and , as a result , we expect that we will need to continue to finance our operations through additional equity or debt financings or through corporate collaboration and licensing arrangements .
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Suspicious Activity Report : as a part of our planned supply chain robustness initiative , we opened two new plasma collection centers during 2020 , and we now have seven plasma collection centers in various stages of approval and development , including three that are fully operational and collecting plasma . with respect to our fully operational plasma collection centers , two hold fda licenses and the third has a biologics license application ( โ bla โ ) pending an fda decision expected in the fourth quarter of 2021. in addition , one of our fda-approved plasma collection centers also has approvals from the korean ministry of food and drug safety ( โ mfds โ ) , as well as fda approval to implement a hepatitis b immunization program . after giving effect to the progress we made in 2020 with our plasma collection network expansion , we believe we remain on track to achieve our goal of having 10 or more plasma collection centers operating in the u.s. by 2024. a typical plasma collection center , such as those operated by adma biocenters , can collect approximately 30,000 to 50,000 liters of source plasma annually , which may be sold for different prices depending upon the type of plasma , quantity of purchase and market conditions at the time of sale . plasma collected from adma biocenters ' facilities that is not used to manufacture our products or product candidates is sold to third-party customers in the u.s. and in other locations outside the u.s. where we are approved under supply agreements or in the open โ spot โ market . 53 we sell plasma-derived intermediate fractions to certain customers , which are generated as part of our fda-approved manufacturing process for ig and ivig products . in january 2020 , we announced our entry into a five-year manufacturing and supply agreement to produce and sell these intermediate by-products , which are used as the starting raw material to produce other plasma-derived biologics . in addition , from time to time we provide contract manufacturing and testing services for certain third-party clients . we also provide laboratory contracting services to certain customers and anticipate providing contract filling , labeling and packing services upon fda approval and implementation of our in-house fill-finish capabilities through our vanrx sa25 workcell aseptic filling machine . on june 6 , 2017 , we completed the acquisition of certain assets ( the โ biotest assets โ ) of the therapy business unit ( โ btbu โ ) of biotest pharmaceuticals corporation ( โ bpc โ and , together with biotest ag , โ biotest โ ) , which included two fda-licensed products , nabi-hb and bivigam , and an fda-licensed plasma fractionation facility located in boca raton , fl ( the โ boca facility โ ) ( the โ biotest transaction โ ) . our products bivigam bivigam is a plasma-derived ivig that contains a broad range of antibodies similar to those found in normal human plasma . these antibodies are directed against bacteria and viruses and help to protect pi patients against serious infections . bivigam is a purified , sterile , ready-to-use preparation of concentrated human immunoglobulin g antibodies indicated for the treatment of pi , a group of genetic disorders . this includes , but is not limited to , the humoral immune defect in common variable immunodeficiency , x-linked agammaglobulinemia , congenital agammaglobulinemia , wiskott-aldrich syndrome and severe combined immunodeficiency . these pis are a group of genetic disorders . based on recent estimates , these disorders are no longer considered to be very rare , with as many as one in every 1,200 people in the united states having some form of pi . on may 9 , 2019 , the fda approved the prior approval supplement ( the โ pas โ ) for the use of our ivig manufacturing process , thereby enabling us to commence commercial sales of this product in the united states . we resumed production of bivigam during the fourth quarter of 2017 and commercial production is ongoing , using our fda-approved ivig manufacturing process under u.s. department of health and human services ( โ hhs โ ) license no . 2019. we commenced commercial sales for this product in august of 2019. asceniv asceniv is a plasma-derived ivig that contains naturally occurring polyclonal antibodies , which are proteins that are used by the body 's immune system to neutralize microbes , such as bacteria and viruses , and prevent against infection and disease . we manufacture asceniv under hhs license no . 2019 using a process known as fractionation . the centers for medicare and medicaid services ( โ cms โ ) has issued a permanent , product-specific-j-code for asceniv . under the healthcare common procedure coding system ( โ hcpcs โ ) , the j-code ( j1554 ) will become effective april 1 , 2021 and will replace the currently issued c-code for asceniv ( c9072 ) , which can continue to be utilized in the interim for reimbursement purposes . as part of our proprietary manufacturing process for asceniv , we leverage our unique , patented plasma donor screening methodology and tailored plasma pooling design , which blends normal source plasma and plasma from donors tested to have high levels of neutralizing antibody titers to respiratory syncytial virus ( โ rsv โ ) using our proprietary microneutralization testing assay . we are able to identify the high titer or โ hyperimmune โ plasma that meets our internal and required specifications for asceniv with our patented testing methods and assay . this type of high titer plasma is typically found in less than 10 % of the total donor collection samples we test . story_separator_special_tag impairment of long-lived assets we assess the recoverability of our long-lived assets , which include property and equipment and definite-lived intangible assets , whenever significant events or changes in circumstances indicate impairment may have occurred . if indicators of impairment exist , projected future undiscounted cash flows associated with the asset are compared to its carrying amount to determine whether the asset 's carrying value is recoverable . any resulting impairment is recorded as a reduction in the carrying value of the related asset in excess of fair value and a charge to operating results . for the years ended december 31 , 2020 and 2019 , we determined that there was no impairment of our long-lived assets . goodwill is not amortized but is assessed for impairment on an annual basis or more frequently if impairment indicators exist . we have the option to perform a qualitative assessment of goodwill to determine whether it is more likely than not that the fair value of the reporting unit associated with the goodwill is less than its carrying amount , including goodwill and other intangible assets . if we conclude that this is the case , then we must perform a goodwill impairment test by comparing the fair value of the reporting unit to its carrying value . an impairment charge is recorded to the extent the reporting unit 's carrying value exceeds its fair value , with the impairment loss recognized not to exceed the total amount of goodwill allocated to that reporting unit . we did not recognize any impairment charges related to goodwill for the years ended december 31 , 2020 and 2019. recent accounting pronouncements in june 2016 , the financial accounting standards board ( the โ fasb โ ) issued accounting standards update ( โ asu โ ) no . 2016-13 , financial instruments โ credit losses ( topic 326 ) ( โ asu 2016-13 โ ) , which requires financial assets to be presented at the net amount expected to be collected , with an allowance for credit losses to be deducted from the amortized cost basis of the financial asset such that the net carrying value of the asset is presented as the amount expected to be collected . under asu 2016-13 , the entity 's statement of operations is required to reflect the measurement of credit losses for newly recognized financial assets , as well as expected increases or decreases in expected credit losses that have taken place during the period . for public business entities , asu 2016-13 is effective for fiscal years beginning after december 15 , 2019. we adopted asu no . 2016-13 on january 1 , 2020 , and the adoption of this update did not have a significant impact on our consolidated financial statements . 58 in july 2017 , the fasb issued asu no . 2017-11 , earnings per share ( topic 260 ) , distinguishing liabilities from equity ( topic 480 ) , derivatives and hedging ( topic 815 ) โ ( โ asu 2017-11 โ ) . asu 2017-11 changed the classification analysis of certain equity-linked financial instruments ( or embedded features within such instruments ) with down round features . when determining whether certain financial instruments should be classified as liabilities or equity instruments , a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity 's own stock . the amendments also clarify existing disclosure requirements for equity-classified instruments . as a result , a freestanding equity-linked financial instrument ( or embedded conversion option ) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature . for freestanding equity classified financial instruments , the amendments require entities that present earnings per share ( โ eps โ ) in accordance with asc 260 to recognize the effect of the down round feature when it is triggered . that effect is treated as a dividend and as a reduction of income available to common shareholders in basic eps . in addition , convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features in asc 470-20 , โ debtโdebt with conversion and other options . โ asu 2017-11 became effective for us on january 1 , 2019 , and this update did not have a significant impact on our consolidated financial statements . in february 2016 , the fasb issued asu no . 2016-02 , leases ( topic 842 ) ( โ asu 2016-02 โ ) , which requires lessees to recognize assets and liabilities for the rights and obligations created by most leases on their balance sheet . the guidance became effective for fiscal years beginning after december 15 , 2018 , including interim periods within those fiscal years . asu 2016-02 requires modified retrospective adoption for all leases existing at , or entered into after , the date of initial application , with an option to use certain transition relief . we adopted asu 2016-02 on january 1 , 2019 using the option to recognize the cumulative-effect adjustment , if any , as of the date of application , which was also january 1 , 2019. as a result , there was no restatement of comparative periods . we recognized right-to-use assets of approximately $ 1.4 million and corresponding lease liabilities of approximately $ 1.6 million at the date of adoption . we also elected the โ package of practical expedients , โ which permits us to not reassess under the new standard our prior conclusions about lease identification , lease classification and initial direct costs . in addition , we elected the short-term lease recognition exemption for all or embedded leases that qualify . year ended december 31 , 2020 compared to december 31 , 2019 the following table presents a summary of the changes in our results
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Subsets and Splits