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2,600 | these sections should be read in conjunction with the more detailed discussion and analysis of our consolidated financial condition and results of operations in this item 7 , our “ risk factors ” section included in item 1a of part i , and our consolidated financial statements and notes thereto included in item 8 of part ii of this report . business and market environment at juniper networks , we design , develop , and sell products and services that together provide our customers with a high-performance network infrastructure built on simplicity , security , openness , and scale . we serve the high-performance networking requirements of global service providers , enterprises , governments , and research and public sector organizations that view the network as critical to their success . our core competencies in hardware systems , silicon design , network architecture , and our open cross-network software platform are helping customers achieve superior performance , greater choice and flexibility , while reducing overall total cost of ownership . we do business in three geographic regions : americas , emea , and apac . beginning in the first quarter of 2012 , we aligned our organizational structure to focus on our platform and software strategy , which resulted in two business segments organized principally by product families : psd and ssd . our psd segment primarily offers scalable routing and switching products that are used in service provider , enterprise , and public sector networks to control and direct network traffic between data centers , core , edge , aggregation , campus , wans , branch , and consumer and business devices . our ssd segment offers software solutions focused on network security and network services applications for both service providers and enterprise customers . both segments offer worldwide services , including technical support and professional services , as well as educational and training programs to our customers . 32 we remain focused on a common vision for the new network and we believe that the organizational structure we have in place will effectively drive our innovative portfolio and support our customers ' next-generation network requirements . together , our high-performance product and service offerings help our customers to convert legacy networks that provide commoditized services into more valuable assets that provide differentiation , value , increased performance , reliability , and security to end-users . we remain dedicated to uncovering new ideas and innovations that will serve the exponentially increasing demands of the networked world , and we will endeavor to continue to build solutions that center on simplification , automation , and open innovation . during 2012 , we saw moderate growth in some of our primary markets . we continued to experience an uncertain global macroeconomic environment in which our customers exercised care and conservatism in their investment prioritization and project deployments . we expect that our customers will continue to remain cautious with their capital spending in the near term . we also continued to experience declining product gross margins and pricing pressures from our competitors . we believe our product gross margins may continue to decline in the future , offset by operational improvements and cost efficiencies . nevertheless , we are focused on executing our strategy to address the market trends of mobile internet and cloud computing and we continue to see positive long-term fundamentals for high-performance networking . we continue to invest in innovation and strengthening our product portfolio , which resulted in new product offerings during 2012 , including a smaller version of our qfabric solutions , the latest qfx3000-m qfabric system , t4000 core routers , ptx series packet transport switches . additionally , we experienced new customer wins contributing to the growth in the ex series , mx series , and srx series . we launched the new acx series router with support for both ethernet access/aggregation and mpls , which extends network intelligence closer to the subscriber and features an open , standards-based management system with software development kit ( `` sdk `` ) -enabled programmability to enable rapid third-party innovation . we also announced new products and features in our simply connected portfolio , including srx series services gateways and wla series wireless lan access points , which simplify and secure mobile device access to enterprise networks . furthermore , we acquired mykonos web security software , in february 2012 to complement our network security applications portfolio . additionally , we announced innovative products to enable service providers to rapidly deliver and expand new consumer and business services . these products include our mx2020 and mx2010 3d universal edge routers and new junosv app engine , which enable service providers to transform the network edge into a platform for rapid service deployment . we also launched the junos content encore with mx application services modular line card , which enables the delivery of premium content services over broadband connections across multiple device types . furthermore , we announced a technology partnership with riverbed technology , inc. ( `` riverbed `` ) that provides us with new capabilities for application delivery control , in exchange for juniper providing wan acceleration technology to riverbed , along with promoting riverbed as its wan optimization provider of choice going forward . throughout 2012 , we focused on improved operational execution , continued innovation , and prudent capital allocation . we continue to believe that the underlying trends driving network investment around the cloud and mobility are intact and remain strong . during 2012 , we also initiated a variety of actions to ensure we are positioned for the future , resulting in a restructuring plan ( the `` 2012 restructuring plan `` ) to bring our cost structure more in line with our desired long-term financial and strategic model . the 2012 restructuring plan consists of workforce reductions , facility consolidations or closures , and supply chain and procurement efficiencies . story_separator_special_tag tpe of selling price is established by evaluating largely interchangeable competitor products or services in stand-alone sales to similarly situated customers . esp is established considering internal factors such as margin objectives , pricing practices and controls , customer segment pricing strategies and product life cycle . consideration is also given to market conditions such as industry pricing strategies and technology life cycles . when determining esp , we apply management judgment to establish margin objectives and pricing strategies and to evaluate market conditions and product life cycles . we do not use tpe as we do not consider our products to be similar or interchangeable to our competitors ' products in standalone sales to similarly situated customers . revenue from maintenance service contracts is deferred and recognized ratably over the contractual support period , which is generally one to three years . we applied esp to the majority of our product revenue and vsoe to our service revenue in 2012 , 2011 , and 2010. share-based compensation . we recognize share-based compensation expense for all share-based payment awards including stock options , rsus , rsas , psas , and purchases under our employee stock purchase plan ( `` espp `` ) based on each award 's fair value on the grant date . we utilize the black-scholes-merton ( “ bsm ” ) option-pricing model in order to determine the fair value of stock options and espp . the bsm model requires various highly subjective assumptions including volatility , expected award life , and risk-free interest rate . the expected volatility is based on the implied volatility of market traded options on our common stock , adjusted for other relevant factors including historical volatility of our common stock over the most recent period commensurate with the estimated expected life of our stock options . the expected life of an award is based on historical experience . we determine the fair value of rsus , rsas and psas based on the closing market price of our common stock on the date of grant . in addition , we use significant judgment in estimating share-based compensation expense for our psas based on the vesting criteria and only recognize expense for the portions in which annual targets have been set . the assumptions used in calculating the fair value of share-based payment awards represent management 's best estimates . these estimates involve inherent uncertainties and the application of management 's judgment . if factors change and different assumptions are used , our share-based compensation expense could be materially different in the future . additionally , we are required to estimate the expected forfeiture rate based on historical experience , as well as judgment , and recognize expense only for those expected-to-vest shares . if our actual forfeiture rate is materially different from our estimate , our recorded share-based compensation expense could be different . income taxes . we are subject to income taxes in the united states and numerous foreign jurisdictions . significant judgment is required in evaluating our uncertain tax positions and determining our provision for income taxes . although we believe our reserves are reasonable , no assurance can be given that the final tax outcome of these matters will not be different from that which is reflected in our historical income tax provisions and accruals . we adjust these reserves in light of changing facts and circumstances , such as the closing of a tax audit or the refinement of an estimate . to the extent that the final tax outcome of these matters is different that the amounts recorded , such differences will affect the provision for income taxes in the period in which such determination is made . significant judgment is also required in determining any valuation allowance recorded against deferred tax assets . in assessing the need for a valuation allowance , we consider all available evidence , including past operating results , estimates of future taxable income , and the feasibility of tax planning strategies . in the event that we change our determination as to the amount of deferred tax assets that can be realized , we will adjust our valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made . 37 our provision for income taxes is subject to volatility and could be adversely affected by earnings being lower than anticipated in countries that have lower tax rates and higher than anticipated in countries that have higher tax rates ; by changes in the valuation of our deferred tax assets and liabilities ; by expiration of or lapses in the r & d tax credit laws ; by transfer pricing adjustments , including the effect of acquisitions on our intercompany r & d cost-sharing arrangement and legal structure ; by tax effects of nondeductible compensation ; by tax costs related to intercompany realignments ; by changes in accounting principles ; or by changes in tax laws and regulations , including possible u.s. changes to the taxation of earnings of our foreign subsidiaries , the deductibility of expenses attributable to foreign income , or the foreign tax credit rules . significant judgment is required to determine the recognition and measurement attributes prescribed in the accounting guidance for uncertainty in income taxes . the accounting guidance for uncertainty in income taxes applies to all income tax positions , including the potential recovery of previously paid taxes , which if settled unfavorably could adversely affect our provision for income taxes or additional paid-in capital . in addition , we are subject to the continuous examination of our income tax returns by the internal revenue service ( “ irs ” ) and other tax authorities . we regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes . there can be no assurance that the outcomes from these continuous examinations will not have an adverse effect
| liquidity and capital resources historically , we have funded our business primarily through our operating activities and the issuance of our common stock , and more recently , the issuance of the notes . the following table shows our capital resources ( in millions , except percentages ) : replace_table_token_15_th the significant components of our working capital are cash and cash equivalents , short-term investments , and accounts receivable , reduced by accounts payable , accrued liabilities , and short-term deferred revenue . working capital decreased by $ 794.3 million in the year ended december 31 , 2012 , primarily due to a higher cash and cash equivalent balance at december 31 , 2011 as a result of the issuance of the notes in march 2011 and a decrease in accounts receivables , offset by decreases in accounts payable and short-term deferred revenue . summary of cash flows as of december 31 , 2012 , our cash and cash equivalents decreased by $ 502.6 million from december 31 , 2011 . this decrease was mainly the result of cash used in our investing and financing activities of $ 596.7 million and $ 548.3 million , respectively , offset by $ 642.4 million generated from operating activities . operating activities net cash provided by operating activities was $ 642.4 million , $ 986.7 million , and $ 812.3 million , for 2012 , 2011 , and 2010 , respectively . cash flows from operations decreased by $ 344.3 million in 2012 , compared to 2011 , primarily due to lower consolidated net income , higher taxes paid , timing of payments to our vendors , and a decrease in deferred revenue , offset by the timing of collections on our outstanding receivables .
| 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 , we have funded our business primarily through our operating activities and the issuance of our common stock , and more recently , the issuance of the notes . the following table shows our capital resources ( in millions , except percentages ) : replace_table_token_15_th the significant components of our working capital are cash and cash equivalents , short-term investments , and accounts receivable , reduced by accounts payable , accrued liabilities , and short-term deferred revenue . working capital decreased by $ 794.3 million in the year ended december 31 , 2012 , primarily due to a higher cash and cash equivalent balance at december 31 , 2011 as a result of the issuance of the notes in march 2011 and a decrease in accounts receivables , offset by decreases in accounts payable and short-term deferred revenue . summary of cash flows as of december 31 , 2012 , our cash and cash equivalents decreased by $ 502.6 million from december 31 , 2011 . this decrease was mainly the result of cash used in our investing and financing activities of $ 596.7 million and $ 548.3 million , respectively , offset by $ 642.4 million generated from operating activities . operating activities net cash provided by operating activities was $ 642.4 million , $ 986.7 million , and $ 812.3 million , for 2012 , 2011 , and 2010 , respectively . cash flows from operations decreased by $ 344.3 million in 2012 , compared to 2011 , primarily due to lower consolidated net income , higher taxes paid , timing of payments to our vendors , and a decrease in deferred revenue , offset by the timing of collections on our outstanding receivables .
```
Suspicious Activity Report : these sections should be read in conjunction with the more detailed discussion and analysis of our consolidated financial condition and results of operations in this item 7 , our “ risk factors ” section included in item 1a of part i , and our consolidated financial statements and notes thereto included in item 8 of part ii of this report . business and market environment at juniper networks , we design , develop , and sell products and services that together provide our customers with a high-performance network infrastructure built on simplicity , security , openness , and scale . we serve the high-performance networking requirements of global service providers , enterprises , governments , and research and public sector organizations that view the network as critical to their success . our core competencies in hardware systems , silicon design , network architecture , and our open cross-network software platform are helping customers achieve superior performance , greater choice and flexibility , while reducing overall total cost of ownership . we do business in three geographic regions : americas , emea , and apac . beginning in the first quarter of 2012 , we aligned our organizational structure to focus on our platform and software strategy , which resulted in two business segments organized principally by product families : psd and ssd . our psd segment primarily offers scalable routing and switching products that are used in service provider , enterprise , and public sector networks to control and direct network traffic between data centers , core , edge , aggregation , campus , wans , branch , and consumer and business devices . our ssd segment offers software solutions focused on network security and network services applications for both service providers and enterprise customers . both segments offer worldwide services , including technical support and professional services , as well as educational and training programs to our customers . 32 we remain focused on a common vision for the new network and we believe that the organizational structure we have in place will effectively drive our innovative portfolio and support our customers ' next-generation network requirements . together , our high-performance product and service offerings help our customers to convert legacy networks that provide commoditized services into more valuable assets that provide differentiation , value , increased performance , reliability , and security to end-users . we remain dedicated to uncovering new ideas and innovations that will serve the exponentially increasing demands of the networked world , and we will endeavor to continue to build solutions that center on simplification , automation , and open innovation . during 2012 , we saw moderate growth in some of our primary markets . we continued to experience an uncertain global macroeconomic environment in which our customers exercised care and conservatism in their investment prioritization and project deployments . we expect that our customers will continue to remain cautious with their capital spending in the near term . we also continued to experience declining product gross margins and pricing pressures from our competitors . we believe our product gross margins may continue to decline in the future , offset by operational improvements and cost efficiencies . nevertheless , we are focused on executing our strategy to address the market trends of mobile internet and cloud computing and we continue to see positive long-term fundamentals for high-performance networking . we continue to invest in innovation and strengthening our product portfolio , which resulted in new product offerings during 2012 , including a smaller version of our qfabric solutions , the latest qfx3000-m qfabric system , t4000 core routers , ptx series packet transport switches . additionally , we experienced new customer wins contributing to the growth in the ex series , mx series , and srx series . we launched the new acx series router with support for both ethernet access/aggregation and mpls , which extends network intelligence closer to the subscriber and features an open , standards-based management system with software development kit ( `` sdk `` ) -enabled programmability to enable rapid third-party innovation . we also announced new products and features in our simply connected portfolio , including srx series services gateways and wla series wireless lan access points , which simplify and secure mobile device access to enterprise networks . furthermore , we acquired mykonos web security software , in february 2012 to complement our network security applications portfolio . additionally , we announced innovative products to enable service providers to rapidly deliver and expand new consumer and business services . these products include our mx2020 and mx2010 3d universal edge routers and new junosv app engine , which enable service providers to transform the network edge into a platform for rapid service deployment . we also launched the junos content encore with mx application services modular line card , which enables the delivery of premium content services over broadband connections across multiple device types . furthermore , we announced a technology partnership with riverbed technology , inc. ( `` riverbed `` ) that provides us with new capabilities for application delivery control , in exchange for juniper providing wan acceleration technology to riverbed , along with promoting riverbed as its wan optimization provider of choice going forward . throughout 2012 , we focused on improved operational execution , continued innovation , and prudent capital allocation . we continue to believe that the underlying trends driving network investment around the cloud and mobility are intact and remain strong . during 2012 , we also initiated a variety of actions to ensure we are positioned for the future , resulting in a restructuring plan ( the `` 2012 restructuring plan `` ) to bring our cost structure more in line with our desired long-term financial and strategic model . the 2012 restructuring plan consists of workforce reductions , facility consolidations or closures , and supply chain and procurement efficiencies . story_separator_special_tag tpe of selling price is established by evaluating largely interchangeable competitor products or services in stand-alone sales to similarly situated customers . esp is established considering internal factors such as margin objectives , pricing practices and controls , customer segment pricing strategies and product life cycle . consideration is also given to market conditions such as industry pricing strategies and technology life cycles . when determining esp , we apply management judgment to establish margin objectives and pricing strategies and to evaluate market conditions and product life cycles . we do not use tpe as we do not consider our products to be similar or interchangeable to our competitors ' products in standalone sales to similarly situated customers . revenue from maintenance service contracts is deferred and recognized ratably over the contractual support period , which is generally one to three years . we applied esp to the majority of our product revenue and vsoe to our service revenue in 2012 , 2011 , and 2010. share-based compensation . we recognize share-based compensation expense for all share-based payment awards including stock options , rsus , rsas , psas , and purchases under our employee stock purchase plan ( `` espp `` ) based on each award 's fair value on the grant date . we utilize the black-scholes-merton ( “ bsm ” ) option-pricing model in order to determine the fair value of stock options and espp . the bsm model requires various highly subjective assumptions including volatility , expected award life , and risk-free interest rate . the expected volatility is based on the implied volatility of market traded options on our common stock , adjusted for other relevant factors including historical volatility of our common stock over the most recent period commensurate with the estimated expected life of our stock options . the expected life of an award is based on historical experience . we determine the fair value of rsus , rsas and psas based on the closing market price of our common stock on the date of grant . in addition , we use significant judgment in estimating share-based compensation expense for our psas based on the vesting criteria and only recognize expense for the portions in which annual targets have been set . the assumptions used in calculating the fair value of share-based payment awards represent management 's best estimates . these estimates involve inherent uncertainties and the application of management 's judgment . if factors change and different assumptions are used , our share-based compensation expense could be materially different in the future . additionally , we are required to estimate the expected forfeiture rate based on historical experience , as well as judgment , and recognize expense only for those expected-to-vest shares . if our actual forfeiture rate is materially different from our estimate , our recorded share-based compensation expense could be different . income taxes . we are subject to income taxes in the united states and numerous foreign jurisdictions . significant judgment is required in evaluating our uncertain tax positions and determining our provision for income taxes . although we believe our reserves are reasonable , no assurance can be given that the final tax outcome of these matters will not be different from that which is reflected in our historical income tax provisions and accruals . we adjust these reserves in light of changing facts and circumstances , such as the closing of a tax audit or the refinement of an estimate . to the extent that the final tax outcome of these matters is different that the amounts recorded , such differences will affect the provision for income taxes in the period in which such determination is made . significant judgment is also required in determining any valuation allowance recorded against deferred tax assets . in assessing the need for a valuation allowance , we consider all available evidence , including past operating results , estimates of future taxable income , and the feasibility of tax planning strategies . in the event that we change our determination as to the amount of deferred tax assets that can be realized , we will adjust our valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made . 37 our provision for income taxes is subject to volatility and could be adversely affected by earnings being lower than anticipated in countries that have lower tax rates and higher than anticipated in countries that have higher tax rates ; by changes in the valuation of our deferred tax assets and liabilities ; by expiration of or lapses in the r & d tax credit laws ; by transfer pricing adjustments , including the effect of acquisitions on our intercompany r & d cost-sharing arrangement and legal structure ; by tax effects of nondeductible compensation ; by tax costs related to intercompany realignments ; by changes in accounting principles ; or by changes in tax laws and regulations , including possible u.s. changes to the taxation of earnings of our foreign subsidiaries , the deductibility of expenses attributable to foreign income , or the foreign tax credit rules . significant judgment is required to determine the recognition and measurement attributes prescribed in the accounting guidance for uncertainty in income taxes . the accounting guidance for uncertainty in income taxes applies to all income tax positions , including the potential recovery of previously paid taxes , which if settled unfavorably could adversely affect our provision for income taxes or additional paid-in capital . in addition , we are subject to the continuous examination of our income tax returns by the internal revenue service ( “ irs ” ) and other tax authorities . we regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes . there can be no assurance that the outcomes from these continuous examinations will not have an adverse effect
|
2,601 | 44 on july 23 , 2020 , the company sold a land parcel at the circle point property in denver , colorado for $ 6.5 million , resulting in an aggregate gain of $ 1.3 million net of disposal-related costs and taxes paid by our taxable reit subsidiary , which has been classified as net gain on sale of real estate property in the consolidated statements of operations . indebtedness at december 31 , 2020 , we had approximately $ 75.0 million outstanding under the company 's unsecured credit facility ( the “ unsecured credit facility ” ) and a $ 7.0 million letter of credit to satisfy escrow requirements for a mortgage lender . for additional information regarding these mortgage loans , the unsecured credit facility , including the company 's five-year $ 50 million term loan thereunder ( the “ term loan ” ) and the related five-year interest rate swap for a notional amount of $ 50 million to which the company is a party ( the “ interest rate swap ” ) , please refer to “ liquidity and capital resources ” below . revenue base as of december 31 , 2020 , we owned 25 properties comprised of 65 office buildings with a total of approximately 5.8 million square feet of net rentable area ( “ nra ” ) . as of december 31 , 2020 , our properties were approximately 90.5 % leased . office leases historically , most leases for our properties have been on a full-service gross or net lease basis , and we expect to continue to use such leases in the future . a full-service gross lease generally has a base year expense “ stop ” , whereby we pay a stated amount of expenses as part of the rent payment while future increases ( above the base year stop ) in property operating expenses are billed to the tenant based on such tenant 's proportionate square footage in the property . the property operating expenses are reflected in operating expenses ; however , only the increased property operating expenses above the base year stop recovered from tenants are reflected as tenant recoveries in our statements of operations . in a triple net lease , the tenant is typically responsible for all property taxes and operating expenses . as such , the base rent payment does not include any operating expenses , but rather all such expenses are billed to or paid by the tenant . the full amount of the expenses for this lease type is reflected in operating expenses , and the reimbursement is reflected in tenant recoveries . all tenants in the lake vista pointe , 2525 mckinnon , sorrento mesa and canyon park properties have triple net leases . certain tenants at amberglen , superior pointe , florida research park , circle point , the quad , cascade station and denver tech have leases on a triple net basis . we are also a lessor for a fee simple ground lease at the amberglen property . all of our remaining leases are full-service gross leases . factors that may influence our operating results and financial condition covid-19 during the first quarter of 2020 , the world health organization declared the covid-19 outbreak a pandemic . there have been mandates from international , federal , state and local authorities requiring forced closures of businesses and other facilities , and most of the markets in which our buildings are located have been or are subject to some form of pandemic-related restrictions . these forced closures and restrictions have had a material adverse effect on the global economy and the regional u.s. economies in which we operate , including negatively impacting some of our tenants ' ability to pay their rent . all of our buildings are open and continue to operate . we have adopted new policies and procedures to incorporate best practices for the safety of our tenants , our vendors and our employees . however , the usage of 45 our assets in 2020 was significantly lower than normal . usage of our assets in the near future depends on the duration of the pandemic , the implementation of covid-19 vaccines and corporate and individual decisions regarding return to usage of office space , which is impossible to estimate . we continue to closely monitor the impact of the covid-19 pandemic on all aspects of our business and geographies . while we did not experience any significant disruptions during the year ended december 31 , 2020 , as a result of covid-19 or governmental or tenant actions in response thereto , the company granted rent relief to nine tenants comprising approximately 1.1 % of the company 's occupied nra , most often in the form of a rent deferral or rent abatement . subsequent to december 31 , 2020 , the company granted additional rent abatements to four tenants who previously received relief , which combined comprises approximately 0.1 % of the company 's occupied nra and an immaterial amount of rental revenue . although the rent deferrals and rent abatements granted to date did not have a material impact on our rental revenue , the long-term impact of the pandemic on our tenants and the world-wide economy is uncertain and impossible to estimate , and will depend on the scope , severity and duration of the pandemic . we believe that some of the industries most impacted by covid-19 are coworking , retail , restaurant and café , travel and accommodation , live event related and energy . we generally have limited exposure to these industries , with these sectors comprising approximately 3 % of our portfolio by square footage . however , the impact of covid-19 extends to all sectors of the u.s. economy and as such , we expect that tenants outside of these select industries will also face significant challenges . story_separator_special_tag asu 2021-01 clarifies the scope of topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in topic 848. asu 2020-04 and asu 2021-01 can be applied as of the beginning of the interim period that includes march 12 , 2020 , however , the guidance will only be available for optional use through december 31 , 2022. the new standard applies prospectively to contract modifications and hedging relationships and may be elected over time as reference rate reform activities occur . the company has not yet adopted the standard and continues to evaluate the impact of asu 2020-04 and asu 2021-01 on its consolidated financial statements and may elect optional expedients in future periods as reference rate reform activities occur . on april 10 , 2020 , the financial accounting standards board ( the “ fasb ” ) issued a staff q & a to respond to some frequently asked questions about accounting for rent relief related to the effects of the covid-19 pandemic . consequently , for rent relief related to the effects of the covid-19 pandemic , an entity will not be required to analyze each contract to determine whether enforceable rights and obligations for abatements exist in the contract and can elect to apply or not apply the lease modification guidance to those contracts . entities may make the elections for any lessor-provided rent relief related to the effects of the covid-19 pandemic ( e.g . , deferrals of lease payments , reduced future lease payments , etc . ) as long as the rent relief does not result in a substantial increase in the rights of the lessor or the obligations of the lessee . to date , the company granted rent relief to certain tenants , most often in the form of a rent deferral or rent abatement . for rent relief granted that did not result in a substantial increase in the rights of the lessor or the obligations of the lessee , the company elected to not apply the lease modification guidance and instead account for the rent relief as though the enforceable rights and obligations for the relief existed in the original contract . for rent relief granted that resulted in a substantial increase in the rights of the lessor or the obligations of the lessee , the company applied the lease modification guidance to the applicable contracts . results of operations comparison of year ended december 31 , 2020 to year ended december 31 , 2019 rental and other revenues . revenue includes net rental income , including parking , signage and other income , as well as the recovery of operating costs and property taxes from tenants . rental and other revenues increased $ 4.5 million , or 3 % , to $ 160.8 million for the year ended december 31 , 2020 compared to 50 $ 156.3 million for the year ended december 31 , 2019. of this increase , the acquisitions of 7601 tech , cascade station and canyon park contributed increases of $ 4.0 million , $ 1.7 million , and $ 1.3 million , respectively . revenue increased by $ 1.2 million at our dtc crossroads property within the denver tech portfolio and by $ 0.9 million at our sorrento mesa property due to significant leasing transactions during the year , which lifted occupancy and rental income . revenue from the cherry creek property also increased by $ 0.7 million , as it benefited from a lease termination fee payment during the year ended december 31 , 2020. partially offsetting these increases , rental revenue decreased at 190 office center and pima center by $ 0.4 million and $ 0.6 million , respectively , due to a decrease in occupancy during the year ended december 31 , 2020. revenue during the year ended december 31 , 2019 also benefited from a one-time payment of $ 2.6 million received as consideration for the assignment of a purchase contract . the assignment fee originated through our administrative services relationship . revenues during the year ended december 31 , 2020 were further impacted due to the sale of the logan tower property in december 2019 and the plaza 25 property in february 2019 , which decreased overall revenue by $ 1.2 and $ 0.2 million , respectively , for the year ended december 31 , 2020. the remaining properties ' rental and other revenues were relatively unchanged in comparison to the year ended december 31 , 2019. operating expenses total operating expenses . total operating expenses consist of property operating expenses , general and administrative expenses and depreciation and amortization . total operating expenses increased by $ 1.9 million , or 1 % , to $ 129.4 million for the year ended december 31 , 2020 , from $ 127.5 million for the year ended december 31 , 2019. total operating expenses increased by $ 2.8 million , $ 1.2 million and $ 0.8 million , respectively , from the acquisitions of 7601 tech , cascade station and canyon park properties . partially offsetting these increases , total operating expenses decreased by $ 1.2 million , and $ 0.2 million , respectively , due to the sale of the logan tower and plaza 25 properties . operating expenses at our camelback square and 5090 n. 40 th street properties decreased by $ 0.6 million and $ 0.5 million , respectively , due to higher depreciation and amortization expenses as a result of the full depreciation of certain assets during the year ended december 31 , 2019. general and administrative expenses decreased by $ 0.4 million in the year ended december 31 , 2020 primarily due to $ 1.1 million of one-time expenses incurred as a result of the assignment fee income earned during the year ended december 31 , 2019 , which was partially offset by higher payroll and stock-based compensation costs for the year ended december 31 ,
| cash flows comparison of period ended december 31 , 2020 to period ended december 31 , 2019 cash , cash equivalents and restricted cash were $ 46.0 million and $ 87.5 million as of december 31 , 2020 and december 31 , 2019 , respectively . cash flow from operating activities . net cash provided by operating activities increased by $ 10.4 million to $ 59.9 million for the year ended december 31 , 2020 compared to $ 49.5 million for the year ended december 31 , 2019. the increase was primarily attributable to increased operating cash flows from acquired properties and changes in working capital . cash flow to investing activities . net cash used in investing activities decreased by $ 54.1 million to $ 27.8 million for the year ended december 31 , 2020 compared to $ 81.9 million for the year ended december 31 , 2019. the decrease in cash used in investing activities was primarily due to no acquisitions of real estate and lower proceeds from the sale of real estate during the year ended december 31 , 2020. cash flow to financing activities . net cash used in financing activities increased by $ 160.5 million to $ 73.7 million for the year ended december 31 , 2020 compared to $ 86.8 million provided by financing activities for the year ended december 31 , 2019. the increase in cash used in financing activities was primarily due to repurchases of our common stock and no proceeds from sale of our common stock for the year ended december 31 , 2020. the increase was partially offset by higher net proceeds from our unsecured credit facility borrowings in 2020 compared to 2019. liquidity and capital resources analysis of liquidity and capital resources we had approximately $ 25.3 million of cash and cash equivalents and $ 20.6 million of restricted cash as of december 31 , 2020 .
| 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 comparison of period ended december 31 , 2020 to period ended december 31 , 2019 cash , cash equivalents and restricted cash were $ 46.0 million and $ 87.5 million as of december 31 , 2020 and december 31 , 2019 , respectively . cash flow from operating activities . net cash provided by operating activities increased by $ 10.4 million to $ 59.9 million for the year ended december 31 , 2020 compared to $ 49.5 million for the year ended december 31 , 2019. the increase was primarily attributable to increased operating cash flows from acquired properties and changes in working capital . cash flow to investing activities . net cash used in investing activities decreased by $ 54.1 million to $ 27.8 million for the year ended december 31 , 2020 compared to $ 81.9 million for the year ended december 31 , 2019. the decrease in cash used in investing activities was primarily due to no acquisitions of real estate and lower proceeds from the sale of real estate during the year ended december 31 , 2020. cash flow to financing activities . net cash used in financing activities increased by $ 160.5 million to $ 73.7 million for the year ended december 31 , 2020 compared to $ 86.8 million provided by financing activities for the year ended december 31 , 2019. the increase in cash used in financing activities was primarily due to repurchases of our common stock and no proceeds from sale of our common stock for the year ended december 31 , 2020. the increase was partially offset by higher net proceeds from our unsecured credit facility borrowings in 2020 compared to 2019. liquidity and capital resources analysis of liquidity and capital resources we had approximately $ 25.3 million of cash and cash equivalents and $ 20.6 million of restricted cash as of december 31 , 2020 .
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Suspicious Activity Report : 44 on july 23 , 2020 , the company sold a land parcel at the circle point property in denver , colorado for $ 6.5 million , resulting in an aggregate gain of $ 1.3 million net of disposal-related costs and taxes paid by our taxable reit subsidiary , which has been classified as net gain on sale of real estate property in the consolidated statements of operations . indebtedness at december 31 , 2020 , we had approximately $ 75.0 million outstanding under the company 's unsecured credit facility ( the “ unsecured credit facility ” ) and a $ 7.0 million letter of credit to satisfy escrow requirements for a mortgage lender . for additional information regarding these mortgage loans , the unsecured credit facility , including the company 's five-year $ 50 million term loan thereunder ( the “ term loan ” ) and the related five-year interest rate swap for a notional amount of $ 50 million to which the company is a party ( the “ interest rate swap ” ) , please refer to “ liquidity and capital resources ” below . revenue base as of december 31 , 2020 , we owned 25 properties comprised of 65 office buildings with a total of approximately 5.8 million square feet of net rentable area ( “ nra ” ) . as of december 31 , 2020 , our properties were approximately 90.5 % leased . office leases historically , most leases for our properties have been on a full-service gross or net lease basis , and we expect to continue to use such leases in the future . a full-service gross lease generally has a base year expense “ stop ” , whereby we pay a stated amount of expenses as part of the rent payment while future increases ( above the base year stop ) in property operating expenses are billed to the tenant based on such tenant 's proportionate square footage in the property . the property operating expenses are reflected in operating expenses ; however , only the increased property operating expenses above the base year stop recovered from tenants are reflected as tenant recoveries in our statements of operations . in a triple net lease , the tenant is typically responsible for all property taxes and operating expenses . as such , the base rent payment does not include any operating expenses , but rather all such expenses are billed to or paid by the tenant . the full amount of the expenses for this lease type is reflected in operating expenses , and the reimbursement is reflected in tenant recoveries . all tenants in the lake vista pointe , 2525 mckinnon , sorrento mesa and canyon park properties have triple net leases . certain tenants at amberglen , superior pointe , florida research park , circle point , the quad , cascade station and denver tech have leases on a triple net basis . we are also a lessor for a fee simple ground lease at the amberglen property . all of our remaining leases are full-service gross leases . factors that may influence our operating results and financial condition covid-19 during the first quarter of 2020 , the world health organization declared the covid-19 outbreak a pandemic . there have been mandates from international , federal , state and local authorities requiring forced closures of businesses and other facilities , and most of the markets in which our buildings are located have been or are subject to some form of pandemic-related restrictions . these forced closures and restrictions have had a material adverse effect on the global economy and the regional u.s. economies in which we operate , including negatively impacting some of our tenants ' ability to pay their rent . all of our buildings are open and continue to operate . we have adopted new policies and procedures to incorporate best practices for the safety of our tenants , our vendors and our employees . however , the usage of 45 our assets in 2020 was significantly lower than normal . usage of our assets in the near future depends on the duration of the pandemic , the implementation of covid-19 vaccines and corporate and individual decisions regarding return to usage of office space , which is impossible to estimate . we continue to closely monitor the impact of the covid-19 pandemic on all aspects of our business and geographies . while we did not experience any significant disruptions during the year ended december 31 , 2020 , as a result of covid-19 or governmental or tenant actions in response thereto , the company granted rent relief to nine tenants comprising approximately 1.1 % of the company 's occupied nra , most often in the form of a rent deferral or rent abatement . subsequent to december 31 , 2020 , the company granted additional rent abatements to four tenants who previously received relief , which combined comprises approximately 0.1 % of the company 's occupied nra and an immaterial amount of rental revenue . although the rent deferrals and rent abatements granted to date did not have a material impact on our rental revenue , the long-term impact of the pandemic on our tenants and the world-wide economy is uncertain and impossible to estimate , and will depend on the scope , severity and duration of the pandemic . we believe that some of the industries most impacted by covid-19 are coworking , retail , restaurant and café , travel and accommodation , live event related and energy . we generally have limited exposure to these industries , with these sectors comprising approximately 3 % of our portfolio by square footage . however , the impact of covid-19 extends to all sectors of the u.s. economy and as such , we expect that tenants outside of these select industries will also face significant challenges . story_separator_special_tag asu 2021-01 clarifies the scope of topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in topic 848. asu 2020-04 and asu 2021-01 can be applied as of the beginning of the interim period that includes march 12 , 2020 , however , the guidance will only be available for optional use through december 31 , 2022. the new standard applies prospectively to contract modifications and hedging relationships and may be elected over time as reference rate reform activities occur . the company has not yet adopted the standard and continues to evaluate the impact of asu 2020-04 and asu 2021-01 on its consolidated financial statements and may elect optional expedients in future periods as reference rate reform activities occur . on april 10 , 2020 , the financial accounting standards board ( the “ fasb ” ) issued a staff q & a to respond to some frequently asked questions about accounting for rent relief related to the effects of the covid-19 pandemic . consequently , for rent relief related to the effects of the covid-19 pandemic , an entity will not be required to analyze each contract to determine whether enforceable rights and obligations for abatements exist in the contract and can elect to apply or not apply the lease modification guidance to those contracts . entities may make the elections for any lessor-provided rent relief related to the effects of the covid-19 pandemic ( e.g . , deferrals of lease payments , reduced future lease payments , etc . ) as long as the rent relief does not result in a substantial increase in the rights of the lessor or the obligations of the lessee . to date , the company granted rent relief to certain tenants , most often in the form of a rent deferral or rent abatement . for rent relief granted that did not result in a substantial increase in the rights of the lessor or the obligations of the lessee , the company elected to not apply the lease modification guidance and instead account for the rent relief as though the enforceable rights and obligations for the relief existed in the original contract . for rent relief granted that resulted in a substantial increase in the rights of the lessor or the obligations of the lessee , the company applied the lease modification guidance to the applicable contracts . results of operations comparison of year ended december 31 , 2020 to year ended december 31 , 2019 rental and other revenues . revenue includes net rental income , including parking , signage and other income , as well as the recovery of operating costs and property taxes from tenants . rental and other revenues increased $ 4.5 million , or 3 % , to $ 160.8 million for the year ended december 31 , 2020 compared to 50 $ 156.3 million for the year ended december 31 , 2019. of this increase , the acquisitions of 7601 tech , cascade station and canyon park contributed increases of $ 4.0 million , $ 1.7 million , and $ 1.3 million , respectively . revenue increased by $ 1.2 million at our dtc crossroads property within the denver tech portfolio and by $ 0.9 million at our sorrento mesa property due to significant leasing transactions during the year , which lifted occupancy and rental income . revenue from the cherry creek property also increased by $ 0.7 million , as it benefited from a lease termination fee payment during the year ended december 31 , 2020. partially offsetting these increases , rental revenue decreased at 190 office center and pima center by $ 0.4 million and $ 0.6 million , respectively , due to a decrease in occupancy during the year ended december 31 , 2020. revenue during the year ended december 31 , 2019 also benefited from a one-time payment of $ 2.6 million received as consideration for the assignment of a purchase contract . the assignment fee originated through our administrative services relationship . revenues during the year ended december 31 , 2020 were further impacted due to the sale of the logan tower property in december 2019 and the plaza 25 property in february 2019 , which decreased overall revenue by $ 1.2 and $ 0.2 million , respectively , for the year ended december 31 , 2020. the remaining properties ' rental and other revenues were relatively unchanged in comparison to the year ended december 31 , 2019. operating expenses total operating expenses . total operating expenses consist of property operating expenses , general and administrative expenses and depreciation and amortization . total operating expenses increased by $ 1.9 million , or 1 % , to $ 129.4 million for the year ended december 31 , 2020 , from $ 127.5 million for the year ended december 31 , 2019. total operating expenses increased by $ 2.8 million , $ 1.2 million and $ 0.8 million , respectively , from the acquisitions of 7601 tech , cascade station and canyon park properties . partially offsetting these increases , total operating expenses decreased by $ 1.2 million , and $ 0.2 million , respectively , due to the sale of the logan tower and plaza 25 properties . operating expenses at our camelback square and 5090 n. 40 th street properties decreased by $ 0.6 million and $ 0.5 million , respectively , due to higher depreciation and amortization expenses as a result of the full depreciation of certain assets during the year ended december 31 , 2019. general and administrative expenses decreased by $ 0.4 million in the year ended december 31 , 2020 primarily due to $ 1.1 million of one-time expenses incurred as a result of the assignment fee income earned during the year ended december 31 , 2019 , which was partially offset by higher payroll and stock-based compensation costs for the year ended december 31 ,
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2,602 | 18 key performance indicators we use a number of key indicators of financial condition and operating performance to evaluate the performance of our business , including the following : replace_table_token_7_th * based upon the 52 weeks ended february 2 , 2019 and the 52 weeks ended february 3 , 2018 * * based upon the 52 weeks ended january 27 , 2018 and the 52 weeks ended january 28 , 2017. trends and uncertainties fluctuations in the following key trends and uncertainties may have a material effect on our operating results . cash flow—cash from operating activities is a primary source of our liquidity that is adversely affected when the retail industry faces economic challenges . furthermore , operating cash flow can be negatively affected by competitive factors . pricing—if our customers do not purchase our merchandise offerings in sufficient quantities , we respond by taking markdowns . if we have to reduce our retail selling prices , the cost of sales on our consolidated statement of income will correspondingly rise , thus reducing our net income and cash flow . success of brand—the success of our exclusive brand merchandise as well as merchandise we source from national vendors is dependent upon customer fashion preferences and how well we can predict and anticipate trends . sourcing—our store merchandise selection is dependent upon our ability to acquire appealing products from a number of sources . our ability to attract and retain compelling vendors as well as in-house design talent , the adequacy and stable availability of materials and production facilities from which we source our merchandise and the speed at which we can respond to customer trends and preferences all have a significant impact on our merchandise mix and , thus , our ability to sell merchandise at profitable prices . store growth—our ability to open new stores is dependent upon a number of factors , such as the identification of suitable markets and locations and the availability of shopping developments , especially in a weak economic environment . store growth can be further hindered by mall attrition and subsequent closure of underperforming properties . in march 2020 , the world health organization declared the outbreak of a novel coronavirus ( covid-19 ) as a pandemic , which continues to spread throughout the united states and the world . as a result , we have reduced store operating hours , and we have been ordered to temporarily close many retail locations , negatively impacting the company 's sales . while the disruption is currently expected to be temporary , there is uncertainty around the duration . at present , while this matter has had a significant negative impact on our business , results of operations , and financial position , the related financial impact to fiscal 2020 can not be reasonably estimated at this time . 19 seasonality and inflation our business , like many other retailers , is subject to seasonal influences , with a significant portion of sales and income typically realized during the last quarter of our fiscal year due to the holiday season . because of the seasonality of our business , results from any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year . we do not believe that inflation has had a material effect on our results during the periods presented ; however , our business could be affected by such in the future . general net sales . net sales includes merchandise sales of comparable and non-comparable stores and revenue recognized on contracts of cdi contractors , llc ( “ cdi ” ) , the company 's general contracting construction company . comparable store sales includes sales for those stores which were in operation for a full period in both the most recently completed quarter and the corresponding quarter for the prior fiscal year , including our internet store . comparable store sales excludes changes in the allowance for sales returns . non-comparable store sales includes : sales in the current fiscal year from stores opened during the previous fiscal year before they are considered comparable stores ; sales from new stores opened during the current fiscal year ; sales in the previous fiscal year for stores closed during the current or previous fiscal year that are no longer considered comparable stores ; sales in clearance centers ; and changes in the allowance for sales returns . sales occur as a result of interaction with customers across multiple points of contact , creating an interdependence between in-store and online sales . online orders are fulfilled from both fulfillment centers and retail stores . additionally , online customers have the ability to buy online and pick up in-store . retail in-store customers have the ability to purchase items that may be ordered and fulfilled from either a fulfillment center or another retail store location . online customers may return orders via mail , or customers may return orders placed online to retail store locations . customers who earn reward points under the private label credit card program may earn and redeem rewards through in-store or online purchases . service charges and other income . service charges and other income includes income generated through the long-term marketing and servicing alliance with wells fargo bank , n.a . ( “ wells fargo alliance ” ) . other income includes rental income , shipping and handling fees , gift card breakage and lease income on leased departments . cost of sales . cost of sales includes the cost of merchandise sold ( net of purchase discounts , non-specific margin maintenance allowances and merchandise margin maintenance allowances ) , bankcard fees , freight to the distribution centers , employee and promotional discounts , shipping to customers and direct payroll for salon personnel . story_separator_special_tag the remaining performance obligations related to executed construction contracts totaled $ 156.5 million , increasing approximately 9 % from february 2 , 2019. exclusive brand merchandise sales penetration of exclusive brand merchandise for fiscal years 2019 , 2018 and 2017 was 21.1 % , 20.7 % and 21.4 % of total net sales , respectively . 26 service charges and other income replace_table_token_11_th 2019 compared to 2018 service charges and other income is composed primarily of income from the wells fargo alliance . income from the alliances decreased $ 2.4 million in fiscal 2019 compared to fiscal 2018 primarily due to a decrease in finance charges in 2019. gross profit replace_table_token_12_th 2019 compared to 2018 gross profit as a percentage of net sales declined 76 basis points of sales during fiscal 2019 compared to fiscal 2018. gross profit from retail operations declined 99 basis points of segment net sales during the same periods . during fiscal 2019 , gross margin declined moderately in men 's apparel and accessories . gross margin declined slightly in ladies ' apparel and junior 's and children 's apparel while remaining essentially flat in ladies ' accessories and lingerie , shoes and cosmetics . gross margin increased moderately in home and furniture . gross profit from the construction segment increased 16 basis points of segment net sales . retail store inventory decreased 4 % at february 1 , 2020 compared to february 2 , 2019 . 27 selling , general and administrative expenses ( `` sg & a `` ) replace_table_token_13_th 2019 compared to 2018 sg & a increased 65 basis points of sales during fiscal 2019 compared to fiscal 2018 primarily due to deleverage of sales . sg & a for the retail operations segment increased 53 basis points of sales during fiscal 2019 compared to fiscal 2018. depreciation and amortization replace_table_token_14_th 2019 compared to 2018 depreciation and amortization expense decreased $ 1.5 million during fiscal 2019 compared to fiscal 2018 , primarily due to the timing and composition of capital expenditures . interest and debt expense , net replace_table_token_15_th 2019 compared to 2018 net interest and debt expense decreased $ 6.3 million in fiscal 2019 compared to fiscal 2018 primarily due to a note maturity , in addition to a decrease in short term borrowings under the credit facility . total weighted average debt outstanding during fiscal 2019 decreased approximately $ 87.7 million compared to fiscal 2018 , also due to the same note maturity along with a decrease in short term borrowings under the credit facility . 28 other expense replace_table_token_16_th 2019 compared to 2018 during the first quarter of 2018 , the company adopted accounting standards update ( `` asu `` ) no . 2017-07 and applied the amendments retrospectively , as required . as a result of the adoption of asu no . 2017-07 , the interest cost and net actuarial loss components of net periodic benefit costs , $ 7.7 million for fiscal 2019 and 2018 , were included in other expense rather than selling , general and administrative expenses in the consolidated statements of income . ( gain ) loss on disposal of assets replace_table_token_17_th fiscal 2019 during fiscal 2019 , the company received proceeds of $ 30.6 million primarily from the sale of six store properties , resulting in a gain of $ 20.3 million that was recorded in gain on disposal of assets . income taxes the company 's estimated federal and state effective income tax rate , inclusive of income on and equity in earnings of joint ventures , was 17.0 % in fiscal 2019 , 18.1 % in fiscal 2018 , and ( 3.7 ) % in fiscal 2017. due to uncertainty relating to the impacts of covid-19 on the company 's business operations , the company is not providing an expected fiscal 2020 federal and state effective income tax rate . the tax cuts and jobs act of 2017 ( “ the act ” ) was signed into law on december 22 , 2017. the act 's primary impact to the company 's consolidated financial statements was its reduction of the federal corporate income tax rate from 35 % to 21 % , effective january 1 , 2018. the company determined a reasonable estimate of the income tax effects of the act and recorded provisional amounts within its consolidated financial statements during fiscal 2017. during fiscal 2018 , the company finalized its accounting of the income tax effects of the act , within the one-year measurement period provided under sec staff accounting bulletin no . 118. fiscal 2019 during fiscal 2019 , income taxes included tax benefits of approximately $ 5.1 million related to federal tax credits , which includes approximately $ 2.3 million in current and prior year credits provided in the taxpayer certainty and disaster tax relief act of 2019. income taxes also included the recognition of approximately $ 2.8 million in tax benefits for amended state tax return filings and related decreases to accrued state income taxes . fiscal 2018 during fiscal 2018 , income taxes included tax benefits of approximately $ 4.6 million related to federal tax credits , which includes approximately $ 1.4 million of additional prior year credits primarily related to the employee retention credit available to employers impacted by the 2017 hurricanes . income taxes also included the recognition of tax benefits of approximately $ 1.5 million for an update to the provisional amounts previously recorded to net deferred tax liabilities related to the act . 29 story_separator_special_tag our primary source of cash inflows from financing activities is generally our $ 800 million senior unsecured revolving credit facility . financing cash outflows generally include the repayment of borrowings under the revolving credit facility , the repayment of long-term debt , finance lease obligations , the payment of dividends and the purchase of treasury stock . cash used in financing activities decreased to $ 143.4 million in fiscal 2019 from $ 303.0 million in fiscal 2018. this
| liquidity and capital resources the company 's current non-operating priorities for its use of cash are strategic investments to enhance the value of existing properties , stock repurchases and dividend payments to stockholders . cash flows for the company 's most recent three fiscal years were as follows : replace_table_token_18_th operating activities the primary source of the company 's liquidity is , and historically has been , cash flows from operations . due to the seasonality of the company 's business , we have historically realized a significant portion of the cash flows from operating activities during the second half of the fiscal year . retail operations sales are the key operating cash component , providing 94.8 % , 94.1 % and 95.1 % of total revenues in fiscal 2019 , 2018 and 2017 , respectively . operating cash inflows also include the company 's income and reimbursements from the wells fargo alliance ( and former synchrony alliance ) and cash distributions from joint ventures ( excluding returns of investments ) . operating cash outflows include payments to vendors for inventory , services and supplies , payments to employees and payments of interest and taxes . wells fargo owns and manages the dillard 's private label cards under the wells fargo alliance . under the wells fargo alliance , wells fargo establishes and owns private label card accounts for our customers , retains the benefits and risks associated with the ownership of the accounts , provides key customer service functions , including new account openings , transaction authorization , billing adjustments and customer inquiries , receives the finance charge income and incurs the bad debts associated with those accounts . pursuant to the wells fargo alliance , we receive on-going cash compensation from wells fargo based upon the portfolio 's earnings .
| 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 current non-operating priorities for its use of cash are strategic investments to enhance the value of existing properties , stock repurchases and dividend payments to stockholders . cash flows for the company 's most recent three fiscal years were as follows : replace_table_token_18_th operating activities the primary source of the company 's liquidity is , and historically has been , cash flows from operations . due to the seasonality of the company 's business , we have historically realized a significant portion of the cash flows from operating activities during the second half of the fiscal year . retail operations sales are the key operating cash component , providing 94.8 % , 94.1 % and 95.1 % of total revenues in fiscal 2019 , 2018 and 2017 , respectively . operating cash inflows also include the company 's income and reimbursements from the wells fargo alliance ( and former synchrony alliance ) and cash distributions from joint ventures ( excluding returns of investments ) . operating cash outflows include payments to vendors for inventory , services and supplies , payments to employees and payments of interest and taxes . wells fargo owns and manages the dillard 's private label cards under the wells fargo alliance . under the wells fargo alliance , wells fargo establishes and owns private label card accounts for our customers , retains the benefits and risks associated with the ownership of the accounts , provides key customer service functions , including new account openings , transaction authorization , billing adjustments and customer inquiries , receives the finance charge income and incurs the bad debts associated with those accounts . pursuant to the wells fargo alliance , we receive on-going cash compensation from wells fargo based upon the portfolio 's earnings .
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Suspicious Activity Report : 18 key performance indicators we use a number of key indicators of financial condition and operating performance to evaluate the performance of our business , including the following : replace_table_token_7_th * based upon the 52 weeks ended february 2 , 2019 and the 52 weeks ended february 3 , 2018 * * based upon the 52 weeks ended january 27 , 2018 and the 52 weeks ended january 28 , 2017. trends and uncertainties fluctuations in the following key trends and uncertainties may have a material effect on our operating results . cash flow—cash from operating activities is a primary source of our liquidity that is adversely affected when the retail industry faces economic challenges . furthermore , operating cash flow can be negatively affected by competitive factors . pricing—if our customers do not purchase our merchandise offerings in sufficient quantities , we respond by taking markdowns . if we have to reduce our retail selling prices , the cost of sales on our consolidated statement of income will correspondingly rise , thus reducing our net income and cash flow . success of brand—the success of our exclusive brand merchandise as well as merchandise we source from national vendors is dependent upon customer fashion preferences and how well we can predict and anticipate trends . sourcing—our store merchandise selection is dependent upon our ability to acquire appealing products from a number of sources . our ability to attract and retain compelling vendors as well as in-house design talent , the adequacy and stable availability of materials and production facilities from which we source our merchandise and the speed at which we can respond to customer trends and preferences all have a significant impact on our merchandise mix and , thus , our ability to sell merchandise at profitable prices . store growth—our ability to open new stores is dependent upon a number of factors , such as the identification of suitable markets and locations and the availability of shopping developments , especially in a weak economic environment . store growth can be further hindered by mall attrition and subsequent closure of underperforming properties . in march 2020 , the world health organization declared the outbreak of a novel coronavirus ( covid-19 ) as a pandemic , which continues to spread throughout the united states and the world . as a result , we have reduced store operating hours , and we have been ordered to temporarily close many retail locations , negatively impacting the company 's sales . while the disruption is currently expected to be temporary , there is uncertainty around the duration . at present , while this matter has had a significant negative impact on our business , results of operations , and financial position , the related financial impact to fiscal 2020 can not be reasonably estimated at this time . 19 seasonality and inflation our business , like many other retailers , is subject to seasonal influences , with a significant portion of sales and income typically realized during the last quarter of our fiscal year due to the holiday season . because of the seasonality of our business , results from any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year . we do not believe that inflation has had a material effect on our results during the periods presented ; however , our business could be affected by such in the future . general net sales . net sales includes merchandise sales of comparable and non-comparable stores and revenue recognized on contracts of cdi contractors , llc ( “ cdi ” ) , the company 's general contracting construction company . comparable store sales includes sales for those stores which were in operation for a full period in both the most recently completed quarter and the corresponding quarter for the prior fiscal year , including our internet store . comparable store sales excludes changes in the allowance for sales returns . non-comparable store sales includes : sales in the current fiscal year from stores opened during the previous fiscal year before they are considered comparable stores ; sales from new stores opened during the current fiscal year ; sales in the previous fiscal year for stores closed during the current or previous fiscal year that are no longer considered comparable stores ; sales in clearance centers ; and changes in the allowance for sales returns . sales occur as a result of interaction with customers across multiple points of contact , creating an interdependence between in-store and online sales . online orders are fulfilled from both fulfillment centers and retail stores . additionally , online customers have the ability to buy online and pick up in-store . retail in-store customers have the ability to purchase items that may be ordered and fulfilled from either a fulfillment center or another retail store location . online customers may return orders via mail , or customers may return orders placed online to retail store locations . customers who earn reward points under the private label credit card program may earn and redeem rewards through in-store or online purchases . service charges and other income . service charges and other income includes income generated through the long-term marketing and servicing alliance with wells fargo bank , n.a . ( “ wells fargo alliance ” ) . other income includes rental income , shipping and handling fees , gift card breakage and lease income on leased departments . cost of sales . cost of sales includes the cost of merchandise sold ( net of purchase discounts , non-specific margin maintenance allowances and merchandise margin maintenance allowances ) , bankcard fees , freight to the distribution centers , employee and promotional discounts , shipping to customers and direct payroll for salon personnel . story_separator_special_tag the remaining performance obligations related to executed construction contracts totaled $ 156.5 million , increasing approximately 9 % from february 2 , 2019. exclusive brand merchandise sales penetration of exclusive brand merchandise for fiscal years 2019 , 2018 and 2017 was 21.1 % , 20.7 % and 21.4 % of total net sales , respectively . 26 service charges and other income replace_table_token_11_th 2019 compared to 2018 service charges and other income is composed primarily of income from the wells fargo alliance . income from the alliances decreased $ 2.4 million in fiscal 2019 compared to fiscal 2018 primarily due to a decrease in finance charges in 2019. gross profit replace_table_token_12_th 2019 compared to 2018 gross profit as a percentage of net sales declined 76 basis points of sales during fiscal 2019 compared to fiscal 2018. gross profit from retail operations declined 99 basis points of segment net sales during the same periods . during fiscal 2019 , gross margin declined moderately in men 's apparel and accessories . gross margin declined slightly in ladies ' apparel and junior 's and children 's apparel while remaining essentially flat in ladies ' accessories and lingerie , shoes and cosmetics . gross margin increased moderately in home and furniture . gross profit from the construction segment increased 16 basis points of segment net sales . retail store inventory decreased 4 % at february 1 , 2020 compared to february 2 , 2019 . 27 selling , general and administrative expenses ( `` sg & a `` ) replace_table_token_13_th 2019 compared to 2018 sg & a increased 65 basis points of sales during fiscal 2019 compared to fiscal 2018 primarily due to deleverage of sales . sg & a for the retail operations segment increased 53 basis points of sales during fiscal 2019 compared to fiscal 2018. depreciation and amortization replace_table_token_14_th 2019 compared to 2018 depreciation and amortization expense decreased $ 1.5 million during fiscal 2019 compared to fiscal 2018 , primarily due to the timing and composition of capital expenditures . interest and debt expense , net replace_table_token_15_th 2019 compared to 2018 net interest and debt expense decreased $ 6.3 million in fiscal 2019 compared to fiscal 2018 primarily due to a note maturity , in addition to a decrease in short term borrowings under the credit facility . total weighted average debt outstanding during fiscal 2019 decreased approximately $ 87.7 million compared to fiscal 2018 , also due to the same note maturity along with a decrease in short term borrowings under the credit facility . 28 other expense replace_table_token_16_th 2019 compared to 2018 during the first quarter of 2018 , the company adopted accounting standards update ( `` asu `` ) no . 2017-07 and applied the amendments retrospectively , as required . as a result of the adoption of asu no . 2017-07 , the interest cost and net actuarial loss components of net periodic benefit costs , $ 7.7 million for fiscal 2019 and 2018 , were included in other expense rather than selling , general and administrative expenses in the consolidated statements of income . ( gain ) loss on disposal of assets replace_table_token_17_th fiscal 2019 during fiscal 2019 , the company received proceeds of $ 30.6 million primarily from the sale of six store properties , resulting in a gain of $ 20.3 million that was recorded in gain on disposal of assets . income taxes the company 's estimated federal and state effective income tax rate , inclusive of income on and equity in earnings of joint ventures , was 17.0 % in fiscal 2019 , 18.1 % in fiscal 2018 , and ( 3.7 ) % in fiscal 2017. due to uncertainty relating to the impacts of covid-19 on the company 's business operations , the company is not providing an expected fiscal 2020 federal and state effective income tax rate . the tax cuts and jobs act of 2017 ( “ the act ” ) was signed into law on december 22 , 2017. the act 's primary impact to the company 's consolidated financial statements was its reduction of the federal corporate income tax rate from 35 % to 21 % , effective january 1 , 2018. the company determined a reasonable estimate of the income tax effects of the act and recorded provisional amounts within its consolidated financial statements during fiscal 2017. during fiscal 2018 , the company finalized its accounting of the income tax effects of the act , within the one-year measurement period provided under sec staff accounting bulletin no . 118. fiscal 2019 during fiscal 2019 , income taxes included tax benefits of approximately $ 5.1 million related to federal tax credits , which includes approximately $ 2.3 million in current and prior year credits provided in the taxpayer certainty and disaster tax relief act of 2019. income taxes also included the recognition of approximately $ 2.8 million in tax benefits for amended state tax return filings and related decreases to accrued state income taxes . fiscal 2018 during fiscal 2018 , income taxes included tax benefits of approximately $ 4.6 million related to federal tax credits , which includes approximately $ 1.4 million of additional prior year credits primarily related to the employee retention credit available to employers impacted by the 2017 hurricanes . income taxes also included the recognition of tax benefits of approximately $ 1.5 million for an update to the provisional amounts previously recorded to net deferred tax liabilities related to the act . 29 story_separator_special_tag our primary source of cash inflows from financing activities is generally our $ 800 million senior unsecured revolving credit facility . financing cash outflows generally include the repayment of borrowings under the revolving credit facility , the repayment of long-term debt , finance lease obligations , the payment of dividends and the purchase of treasury stock . cash used in financing activities decreased to $ 143.4 million in fiscal 2019 from $ 303.0 million in fiscal 2018. this
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2,603 | while we rollout our products to major retailers and apparel companies , there is a lead time for new customers to ramp up before we can recognize revenue . this lead time varies between customers , especially when the customer is a tier 1 retailer , where the integration process may take longer . generally , first we integrate our product into a customer 's online platform , which is followed by piloting and implementation , and , assuming we are successful , commercial roll-out , all of which takes time before we expect it to impact our financial results in a meaningful way . while we have begun generating initial sales revenue , we do not expect to generate meaningful revenue during the upcoming quarters . because of the numerous risks and uncertainties associated with the success of our market penetration and our dependence on the extent to which mysizeid is adopted and utilized , we are unable to predict the extent to which we will recognize revenue . we may be unable to successfully develop or market any of our current or proposed products or technologies , those products or technologies may not generate any revenues , and any revenues generated may not be sufficient for us to become profitable or thereafter maintain profitability . results of operations the table below provides our results of operations for the periods indicated . replace_table_token_0_th 36 year ended december 31 , 2020 compared to year ended december 31 , 2019 revenues from inception through december 31 , 2018 , we did not generate any revenue from operations and we continue to expect to incur additional losses to perform further research and development activities . we started to generate revenues only in 2019. our revenues for the year ended december 31 , 2020 amounted to $ 142,000 compared to $ 63,000 for year ended december 31 , 2019. the increase from the corresponding period primarily resulted from increase in traffic , as measured by the mysizeid engine under the license agreements with customers and from fees from customer projects . research and development expenses our research and development expenses for the year ended december 31 , 2020 amounted to $ 1,523,000 an increase of $ 7,000 , or approximately 0.5 % , compared to $ 1,516,000 for the year ended december 31 , 2019. the increase resulted primarily from increased expenses associated with hiring new employees and from stock-based payments , which were offset by a decrease in subcontractor expenses . we expect that research and development expenses will continue to increase in 2021 and that we will recruit additional employees . sales and marketing expenses our sales and marketing expenses for the year ended december 31 , 2020 amounted to $ 2,196,000 , an increase of $ 267,000 , or 13.8 % , compared to $ 1,929,000 for the year ended december 31 , 2019. the increase primarily resulted from an increase in subcontractor and marketing expenses which were offset by a decrease in travel expenses and from stock-based payments . general and administrative expenses our general and administrative expenses for the year ended december 31 , 2020 amounted to $ 2,567,000 , a decrease of $ 20,000 , or 0.8 % , compared to $ 2,587,000 for the year ended december 31 , 2019. the decrease compared to the corresponding period was mainly due to a reduction in stock-based payment expenses , payroll expenses which were offset by an increase in rent and office maintenance related and insurance expenses . during 2020 , we had an expense of $ 276,000 in respect of stock-based payments , compared to an expense of $ 352,000 in 2019. operating loss as a result of the foregoing , for the year ended december 31 , 2020 , our operating loss was $ 6,146,000 , an increase of $ 156,000 , or 2.6 % , compared to our operating loss for the year ended december 31 , 2019 of $ 5,990,000. financial income ( expenses ) , net our financial expenses , net for the year ended december 31 , 2020 amounted to $ 11,000 as opposed to financial income , net of $ 493,000 for the year ended december 31 , 2019. in 2020 , we had financial expenses exchange rate differences offset by an income from fair value revaluation of investment in marketable securities whereas in 2019 we had financial income from the fair value revaluation of warrants offset by expenses from exchange rate differences and expenses from fair value revaluation of investment in marketable securities . net loss as a result of the foregoing , research and development , marketing general and administrative expenses , and initial revenues , our net loss for the year ended december 31 , 2020 was $ 6,157,000 compared to net loss of $ 5,497,000 for the year ended december 31 , 2019. the increase in net loss was mainly due increase in sales and marketing expenses and financial expenses as opposed to financial income in the corresponding period . 37 story_separator_special_tag style= `` font : 10pt times new roman , times , serif ; width : 100 % `` > ● respond to competitive pressures ; ● comply with regulatory requirements ; and ● maintain compliance with applicable laws . current conditions in the capital markets are such that traditional sources of capital may not be available to us when needed or may be available only on unfavorable terms . our ability to raise additional capital , if needed , will depend on conditions in the capital markets , economic conditions , the impact of the covid-19 pandemic and a number of other factors , many of which are outside our control , and on our financial performance . story_separator_special_tag accordingly , we can not assure you that we will be able to successfully raise additional capital at all or on terms that are acceptable to us . if we can not raise additional capital when needed , it may have a material adverse effect on our business , results of operations and financial condition . to the extent that we raise additional capital through the sale of equity or convertible debt securities , the issuance of such securities could result in substantial dilution for our current stockholders . the terms of any securities issued by us in future capital transactions may be more favorable to new investors , and may include preferences , superior voting rights and the issuance of warrants or other derivative securities , which may have a further dilutive effect on the holders of any of our securities then-outstanding . we may issue additional shares of our common stock or securities convertible into or exchangeable or exercisable for our common stock in connection with hiring or retaining personnel , option or warrant exercises , future acquisitions or future placements of our securities for capital-raising or other business purposes . the issuance of additional securities , whether equity or debt , by us , or the possibility of such issuance , may cause the market price of our common stock to decline and existing stockholders may not agree with our financing plans or the terms of such financings . in addition , we may incur substantial costs in pursuing future capital financing , including investment banking fees , legal fees , accounting fees , securities law compliance fees , printing and distribution expenses and other costs . we may also be required to recognize non-cash expenses in connection with certain securities we issue , such as convertible notes and warrants , which may adversely impact our financial condition . furthermore , any additional debt or equity financing that we may need may not be available on terms favorable to us , or at all . if we are unable to obtain such additional financing on a timely basis , we may have to curtail our development activities and growth plans and or be forced to sell assets , perhaps on unfavorable terms , or we may have to cease our operations , which would have a material adverse effect on our business , results of operations and financial condition . recently issued accounting pronouncements certain recently issued accounting pronouncements are discussed in note 2 , significant accounting policies , to the consolidated financial statements included in “ item 8. financial statements and supplementary data ” of this annual report on form 10-k. off-balance sheet arrangements we have not entered into any transactions with unconsolidated entities in which we have financial guarantees , subordinated retained interests , derivative instruments or other contingent arrangements that expose us to material continuing risks , contingent liabilities or any other obligations under a variable interest in an unconsolidated entity that provides us with financing , liquidity , market risk or credit risk support . 39 application of critical accounting policies and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our financial statements , which we have prepared in accordance with u.s. generally accepted accounting principles issued by the financial accounting standards board , or fasb . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported expenses during the reporting periods . actual results may differ from these estimates under different assumptions or conditions . while our significant accounting policies are more fully described in the notes to our financial statements appearing elsewhere in this annual report on form 10-k , we believe that the accounting policies discussed below are critical to our financial results and to the understanding of our past and future performance , as these policies relate to the more significant areas involving management 's estimates and assumptions . we consider an accounting estimate to be critical if : ( 1 ) it requires us to make assumptions because information was not available at the time or it included matters that were highly uncertain at the time we were making our estimate ; and ( 2 ) changes in the estimate could have a material impact on our financial condition or results of operations . revenue from contracts with customers the company implemented asc 606 , revenue from contract with customers . to recognize revenue under asc 606 , the company applies the following five steps : 1. identify the contract with a customer . a contract with a customer exists when the company enters into an enforceable contract with a customer and the company determines that collection of substantially all consideration for the services is probable . 2. identify the performance obligations in the contract . 3. determine the transaction price . the transaction price is determined based on the consideration to which the company will be entitled in exchange for providing the service to the customer . 4. allocate the transaction price to performance obligations in the contract . if a contract contains a single performance obligation , the entire transaction price is allocated to the single performance obligation . 5. recognize revenue when or as the company satisfies a performance obligation . when the company provides a service , revenue is recognized over the service term . the company 's revenue is derived from license cloud-enabled software subscriptions , associated software maintenance and support . revenue is recognized when a contract exists between the company and a customer ( business ) and upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services . the
| liquidity and capital resources since our inception , we have funded our operations primarily through public and private offerings of debt and equity in israel and in the u.s. as of december 31 , 2020 , we had cash , cash equivalents and restricted cash of $ 1,774,000 and short-term restricted deposit of $ 184,000 compared to $ 1,466,000 cash , cash equivalents , restricted cash as of december 31 , 2019 and short-term deposit and no short-term restricted deposit as of december 31 , 2019. this increase primarily resulted from the public offerings that we completed in january and may 2020 both of which are further described below . in addition , on march 25 , 2021 , we completed an underwritten public offering of our common stock pursuant to which we issued 2,618,532 shares of our common stock at a public offering price of $ 1.28 per share for gross proceeds of $ 3,300,000. we received net proceeds of approximately $ 2,904,000 , after deducting the underwriting discounts and commissions and estimated offering expenses . prior to that , on january 8 , 2021 , we completed an underwritten public offering of our common stock pursuant to which we issued 1,569,179 shares of our common stock at a public offering price of $ 1.28 per share for gross proceeds of $ 2,008,000. we received net proceeds of approximately $ 1,700,000 , after deducting the underwriting discounts and commissions and estimated offering expenses . furthermore , in january and february 2021 , a holder of warrants exercised warrants to purchase 725,000 of our ordinary shares in exchange for $ 0.8 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 funded our operations primarily through public and private offerings of debt and equity in israel and in the u.s. as of december 31 , 2020 , we had cash , cash equivalents and restricted cash of $ 1,774,000 and short-term restricted deposit of $ 184,000 compared to $ 1,466,000 cash , cash equivalents , restricted cash as of december 31 , 2019 and short-term deposit and no short-term restricted deposit as of december 31 , 2019. this increase primarily resulted from the public offerings that we completed in january and may 2020 both of which are further described below . in addition , on march 25 , 2021 , we completed an underwritten public offering of our common stock pursuant to which we issued 2,618,532 shares of our common stock at a public offering price of $ 1.28 per share for gross proceeds of $ 3,300,000. we received net proceeds of approximately $ 2,904,000 , after deducting the underwriting discounts and commissions and estimated offering expenses . prior to that , on january 8 , 2021 , we completed an underwritten public offering of our common stock pursuant to which we issued 1,569,179 shares of our common stock at a public offering price of $ 1.28 per share for gross proceeds of $ 2,008,000. we received net proceeds of approximately $ 1,700,000 , after deducting the underwriting discounts and commissions and estimated offering expenses . furthermore , in january and february 2021 , a holder of warrants exercised warrants to purchase 725,000 of our ordinary shares in exchange for $ 0.8 million .
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Suspicious Activity Report : while we rollout our products to major retailers and apparel companies , there is a lead time for new customers to ramp up before we can recognize revenue . this lead time varies between customers , especially when the customer is a tier 1 retailer , where the integration process may take longer . generally , first we integrate our product into a customer 's online platform , which is followed by piloting and implementation , and , assuming we are successful , commercial roll-out , all of which takes time before we expect it to impact our financial results in a meaningful way . while we have begun generating initial sales revenue , we do not expect to generate meaningful revenue during the upcoming quarters . because of the numerous risks and uncertainties associated with the success of our market penetration and our dependence on the extent to which mysizeid is adopted and utilized , we are unable to predict the extent to which we will recognize revenue . we may be unable to successfully develop or market any of our current or proposed products or technologies , those products or technologies may not generate any revenues , and any revenues generated may not be sufficient for us to become profitable or thereafter maintain profitability . results of operations the table below provides our results of operations for the periods indicated . replace_table_token_0_th 36 year ended december 31 , 2020 compared to year ended december 31 , 2019 revenues from inception through december 31 , 2018 , we did not generate any revenue from operations and we continue to expect to incur additional losses to perform further research and development activities . we started to generate revenues only in 2019. our revenues for the year ended december 31 , 2020 amounted to $ 142,000 compared to $ 63,000 for year ended december 31 , 2019. the increase from the corresponding period primarily resulted from increase in traffic , as measured by the mysizeid engine under the license agreements with customers and from fees from customer projects . research and development expenses our research and development expenses for the year ended december 31 , 2020 amounted to $ 1,523,000 an increase of $ 7,000 , or approximately 0.5 % , compared to $ 1,516,000 for the year ended december 31 , 2019. the increase resulted primarily from increased expenses associated with hiring new employees and from stock-based payments , which were offset by a decrease in subcontractor expenses . we expect that research and development expenses will continue to increase in 2021 and that we will recruit additional employees . sales and marketing expenses our sales and marketing expenses for the year ended december 31 , 2020 amounted to $ 2,196,000 , an increase of $ 267,000 , or 13.8 % , compared to $ 1,929,000 for the year ended december 31 , 2019. the increase primarily resulted from an increase in subcontractor and marketing expenses which were offset by a decrease in travel expenses and from stock-based payments . general and administrative expenses our general and administrative expenses for the year ended december 31 , 2020 amounted to $ 2,567,000 , a decrease of $ 20,000 , or 0.8 % , compared to $ 2,587,000 for the year ended december 31 , 2019. the decrease compared to the corresponding period was mainly due to a reduction in stock-based payment expenses , payroll expenses which were offset by an increase in rent and office maintenance related and insurance expenses . during 2020 , we had an expense of $ 276,000 in respect of stock-based payments , compared to an expense of $ 352,000 in 2019. operating loss as a result of the foregoing , for the year ended december 31 , 2020 , our operating loss was $ 6,146,000 , an increase of $ 156,000 , or 2.6 % , compared to our operating loss for the year ended december 31 , 2019 of $ 5,990,000. financial income ( expenses ) , net our financial expenses , net for the year ended december 31 , 2020 amounted to $ 11,000 as opposed to financial income , net of $ 493,000 for the year ended december 31 , 2019. in 2020 , we had financial expenses exchange rate differences offset by an income from fair value revaluation of investment in marketable securities whereas in 2019 we had financial income from the fair value revaluation of warrants offset by expenses from exchange rate differences and expenses from fair value revaluation of investment in marketable securities . net loss as a result of the foregoing , research and development , marketing general and administrative expenses , and initial revenues , our net loss for the year ended december 31 , 2020 was $ 6,157,000 compared to net loss of $ 5,497,000 for the year ended december 31 , 2019. the increase in net loss was mainly due increase in sales and marketing expenses and financial expenses as opposed to financial income in the corresponding period . 37 story_separator_special_tag style= `` font : 10pt times new roman , times , serif ; width : 100 % `` > ● respond to competitive pressures ; ● comply with regulatory requirements ; and ● maintain compliance with applicable laws . current conditions in the capital markets are such that traditional sources of capital may not be available to us when needed or may be available only on unfavorable terms . our ability to raise additional capital , if needed , will depend on conditions in the capital markets , economic conditions , the impact of the covid-19 pandemic and a number of other factors , many of which are outside our control , and on our financial performance . story_separator_special_tag accordingly , we can not assure you that we will be able to successfully raise additional capital at all or on terms that are acceptable to us . if we can not raise additional capital when needed , it may have a material adverse effect on our business , results of operations and financial condition . to the extent that we raise additional capital through the sale of equity or convertible debt securities , the issuance of such securities could result in substantial dilution for our current stockholders . the terms of any securities issued by us in future capital transactions may be more favorable to new investors , and may include preferences , superior voting rights and the issuance of warrants or other derivative securities , which may have a further dilutive effect on the holders of any of our securities then-outstanding . we may issue additional shares of our common stock or securities convertible into or exchangeable or exercisable for our common stock in connection with hiring or retaining personnel , option or warrant exercises , future acquisitions or future placements of our securities for capital-raising or other business purposes . the issuance of additional securities , whether equity or debt , by us , or the possibility of such issuance , may cause the market price of our common stock to decline and existing stockholders may not agree with our financing plans or the terms of such financings . in addition , we may incur substantial costs in pursuing future capital financing , including investment banking fees , legal fees , accounting fees , securities law compliance fees , printing and distribution expenses and other costs . we may also be required to recognize non-cash expenses in connection with certain securities we issue , such as convertible notes and warrants , which may adversely impact our financial condition . furthermore , any additional debt or equity financing that we may need may not be available on terms favorable to us , or at all . if we are unable to obtain such additional financing on a timely basis , we may have to curtail our development activities and growth plans and or be forced to sell assets , perhaps on unfavorable terms , or we may have to cease our operations , which would have a material adverse effect on our business , results of operations and financial condition . recently issued accounting pronouncements certain recently issued accounting pronouncements are discussed in note 2 , significant accounting policies , to the consolidated financial statements included in “ item 8. financial statements and supplementary data ” of this annual report on form 10-k. off-balance sheet arrangements we have not entered into any transactions with unconsolidated entities in which we have financial guarantees , subordinated retained interests , derivative instruments or other contingent arrangements that expose us to material continuing risks , contingent liabilities or any other obligations under a variable interest in an unconsolidated entity that provides us with financing , liquidity , market risk or credit risk support . 39 application of critical accounting policies and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our financial statements , which we have prepared in accordance with u.s. generally accepted accounting principles issued by the financial accounting standards board , or fasb . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported expenses during the reporting periods . actual results may differ from these estimates under different assumptions or conditions . while our significant accounting policies are more fully described in the notes to our financial statements appearing elsewhere in this annual report on form 10-k , we believe that the accounting policies discussed below are critical to our financial results and to the understanding of our past and future performance , as these policies relate to the more significant areas involving management 's estimates and assumptions . we consider an accounting estimate to be critical if : ( 1 ) it requires us to make assumptions because information was not available at the time or it included matters that were highly uncertain at the time we were making our estimate ; and ( 2 ) changes in the estimate could have a material impact on our financial condition or results of operations . revenue from contracts with customers the company implemented asc 606 , revenue from contract with customers . to recognize revenue under asc 606 , the company applies the following five steps : 1. identify the contract with a customer . a contract with a customer exists when the company enters into an enforceable contract with a customer and the company determines that collection of substantially all consideration for the services is probable . 2. identify the performance obligations in the contract . 3. determine the transaction price . the transaction price is determined based on the consideration to which the company will be entitled in exchange for providing the service to the customer . 4. allocate the transaction price to performance obligations in the contract . if a contract contains a single performance obligation , the entire transaction price is allocated to the single performance obligation . 5. recognize revenue when or as the company satisfies a performance obligation . when the company provides a service , revenue is recognized over the service term . the company 's revenue is derived from license cloud-enabled software subscriptions , associated software maintenance and support . revenue is recognized when a contract exists between the company and a customer ( business ) and upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services . the
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2,604 | these estimates are based on management 's historical industry experience and on various other assumptions that are believed to be reasonable under the circumstances . on a regular basis , we evaluate these accounting policies , assumptions , estimates and judgments to ensure that our financial statements are presented fairly and in accordance with gaap . however , because future events and their effects can not be determined with certainty , actual results may differ from our estimates , and such differences could be material . a full discussion of our significant accounting policies is contained in note 2 to our consolidated financial statements , which is included in item 8 – “ financial statements and supplementary data ” of this report . we believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our financial results . these estimates require our most difficult , subjective or complex judgments because they relate to matters that are inherently uncertain . we have reviewed these critical accounting policies and estimates and related disclosures with our audit committee . long-lived assets we review long-lived assets , such as property and equipment , and intangible assets subject to amortization , for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable . these events or changes in circumstances include , but are not limited to , significant underperformance relative to historical or projected future operating results , significant changes in the manner of use of the acquired assets or the strategy for the overall business , and significant negative industry or economic trends . recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted cash flows over the estimated remaining useful life of the asset group . if the asset group is not recoverable , the impairment loss is calculated as the excess of the carrying value over the fair value . we define our asset group as an operating club or restaurant location , which is also our reporting unit or the lowest level for which cash flows can be identified . assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell , and are no longer depreciated . during the fourth quarter of fiscal 2017 , we impaired one club by $ 385,000 , and during the fourth quarter of fiscal 2016 , we impaired one property held for sale by $ 1.4 million . investment during the fourth quarter of fiscal 2017 , we also fully impaired our remaining investment in drink robust amounting to $ 1.2 million . goodwill and other intangible assets goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter , and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired . 24 our impairment calculations require management to make assumptions and to apply judgment in order to estimate fair values . if our actual results are not consistent with our estimates and assumptions , we may be exposed to impairments that could be material . we do not believe that there is a reasonable likelihood that there will be a material change in the estimates or assumptions we used to calculate impairment charges . for our goodwill impairment review , we first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value . this assessment is based on several factors , including industry and market conditions , overall financial performance , including an assessment of cash flows in comparison to actual and projected results of prior periods . if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis , we perform a step 1 analysis to determine the fair value of the reporting unit . the fair value is determined using market-related valuation models , including earnings multiples , discounted cash flows , and comparable asset market values . as detailed within note 2 of our consolidated financial statements , we adopted asu 2017-04 , intangibles – goodwill and other ( topic 350 ) : simplifying the test for goodwill impairment , during q4 of 2017 , and accordingly , we recognize goodwill impairment in the amount that the carrying value of the reporting unit exceeds the fair value of the reporting unit , not to exceed the amount of goodwill allocated to the reporting unit , based on the results of our step 1 analysis . for the year ended september 30 , 2017 , we identified four reporting units that were impaired and recognized a goodwill impairment loss totaling $ 4.7 million . for indefinite-lived intangibles , specifically sob licenses , we determine fair value by estimating the multiperiod excess earnings of the asset . for indefinite-lived tradename , we determine fair value by using the relief from royalty method . the fair value is then compared to the carrying value and an impairment charge is recognized by the amount by which the carrying amount exceeds the fair value of the asset . we recorded impairment charges for sob licenses amounting to $ 1.4 million for 2017 , $ 2.1 million for 2016 and $ 1.7 million for 2015 , related to two clubs in 2017 , one club in 2016 and two clubs in 2015. income taxes we estimate certain components of our provision for income taxes . story_separator_special_tag we exclude from non-gaap net income and non-gaap net income per diluted share amortization of intangibles , gain on settlement of patron tax case , income tax expense , impairment charges , gain on acquisition of controlling interest in subsidiary , gains or losses on sale of assets , stock-based compensation , and settlement of lawsuits , and include the non-gaap provision for current and deferred income taxes , calculated as the tax effect at 37 % , 35 % and 35 % in 2017 , 2016 and 2015 , respectively , effective tax rate of the pre-tax non-gaap income before taxes , because we believe that excluding and including such items help management and investors better understand our operating activities . adjusted ebitda . we exclude from adjusted ebitda depreciation expense , amortization of intangibles , impairment of assets , income taxes , interest expense , interest income , gains or losses on sale of assets , settlement of lawsuits , gain on settlement of patron tax case , and gain on acquisition of controlling interest in subsidiary because we believe that adjusting for such items helps management and investors better understand our operating activities . adjusted ebitda provides a core operational performance measurement that compares results without the need to adjust for federal , state and local taxes which have considerable variation between domestic jurisdictions . the results are , therefore , without consideration of financing alternatives of capital employed . we use adjusted ebitda as one guideline to assess the unleveraged performance return on our investments . adjusted ebitda is also the target benchmark for our acquisitions of nightclubs . we also use certain non-gaap cash flow measures such as free cash . see “ liquidity and capital resources ” section for further discussion . 33 the following tables present our non-gaap performance measures for the periods indicated ( in thousands , except per share amounts and percentages ) : replace_table_token_16_th 34 replace_table_token_17_th * per share amounts and percentages may not foot due to rounding . 35 the adjustments to reconcile net income attributable to rcihh common shareholders to non-gaap net income exclude the impact of adjustments related to noncontrolling interests , which is immaterial . in the calculation of non-gaap diluted net income per share , we take into consideration the adjustment to net income from assumed conversion of debentures ( see note 2 to the consolidated financial statements ) . liquidity and capital resources we believe our ability to generate cash from operating activities is one of our fundamental financial strengths . the near-term outlook for our business remains strong , and we expect to generate substantial cash flows from operations in fiscal 2018. as a result of our expected cash flows from operations , we have significant flexibility to meet our financial commitments . the company has not recently raised capital through the issuance of equity securities . instead , we use debt financing to lower our overall cost of capital and increase our return on stockholders ' equity . we have a history of borrowing funds in private transactions and from sellers in acquisition transactions and continue to have the ability to borrow funds at reasonable interest rates in that manner . we also have historically utilized these cash flows to invest in property and equipment , adult nightclubs and restaurants/sports bars . as of september 30 , 2017 , we had negative working capital of $ 10.6 million ( excluding the impact of assets held for sale amounting to $ 5.8 million ) compared to negative working capital of $ 5.3 million as of september 30 , 2016 ( excluding the impact of assets held for sale amounting to $ 7.7 million ) . the decrease in working capital is principally due to the following items : ● operating cash flow for the year ; ● increase in current portion of long-term debt ; and ● partially offset by a net increase in current assets , excluding cash , mainly from prepaid income taxes and insurance . we believe that our current sources of liquidity and capital will be sufficient to finance our continued operations and growth plans not only within the next 12 months , but for the next 18 to 24 months . refer to sections on debt financing and contractual obligations and commitments below for a discussion of long-term liquidity and capital resources . 36 cash flows from operating activities following are our summarized cash flows from operating activities ( in thousands ) : replace_table_token_18_th net cash flows from operating activities decreased from 2016 to 2017 due to a decrease in working capital caused by year-end vendor payments , higher income taxes and higher interest expense paid in 2017 ; while net cash flows from operating activities increased from 2015 to 2016 due to lower income taxes paid and higher pre-tax income partially offset by higher interest expense paid in 2016. cash flows from investing activities following are our summarized cash flows from investing activities ( in thousands ) : replace_table_token_19_th we opened five new units in 2017 ( including two acquired and one reconcepted from a bombshells to a club ) ; reconcepted one club and acquired one club in 2016 ; and opened two clubs ( including one acquired ) in 2015. we also constructed and moved to a new corporate office in 2016. following is a reconciliation of our additions to property and equipment for the years ended september 30 , 2017 , 2016 and 2015 ( in thousands ) : replace_table_token_20_th 37 cash flows from financing activities following are our summarized cash flows from financing activities ( in thousands ) : replace_table_token_21_th we purchased treasury stock representing 89,685 shares , 747,081 shares and 225,280 shares in 2017 , 2016 and 2015 , respectively . during the second quarter of 2016 , we started paying quarterly dividends in the amount of $ 0.03 per share . see note 8 to our consolidated financial statements for a
| debt financing see note 8 to our consolidated financial statements for detail regarding our long-term debt activity and note 20 discussing the refinancing of our long-term debt . 38 contractual obligations and commitments we have long-term contractual obligations primarily in the form of debt obligations and operating leases . the following table ( in thousands ) summarizes our contractual obligations and their aggregate maturities as well as future minimum rent payments . future interest payments related to variable interest rate debt were estimated using the interest rate in effect at september 30 , 2017. replace_table_token_24_th ( a ) we have $ 865,000 of uncertain tax positions recorded in accrued liabilities . it is expected that these assessments will be settled within the next twelve months . see note 9 to our consolidated financial statements . ( b ) on december 22 , 2017 , the tax cuts and jobs act was enacted into law ( the “ act ” ) . the act provides , among others , the reduction of the statutory corporate income tax rate from 35 % to 21 % effective january 1 , 2018. on december 14 , 2017 , the company entered into a loan agreement ( “ new loan ” ) with a bank for $ 81.2 million . the new loan fully refinances 20 of the company 's notes payable and partially pays down 1 note payable ( collectively , “ repaid notes ” ) with interest rates ranging from 5 % to 12 % covering 43 parcels of real properties the company previously acquired ( “ properties ” ) .
| 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 financing see note 8 to our consolidated financial statements for detail regarding our long-term debt activity and note 20 discussing the refinancing of our long-term debt . 38 contractual obligations and commitments we have long-term contractual obligations primarily in the form of debt obligations and operating leases . the following table ( in thousands ) summarizes our contractual obligations and their aggregate maturities as well as future minimum rent payments . future interest payments related to variable interest rate debt were estimated using the interest rate in effect at september 30 , 2017. replace_table_token_24_th ( a ) we have $ 865,000 of uncertain tax positions recorded in accrued liabilities . it is expected that these assessments will be settled within the next twelve months . see note 9 to our consolidated financial statements . ( b ) on december 22 , 2017 , the tax cuts and jobs act was enacted into law ( the “ act ” ) . the act provides , among others , the reduction of the statutory corporate income tax rate from 35 % to 21 % effective january 1 , 2018. on december 14 , 2017 , the company entered into a loan agreement ( “ new loan ” ) with a bank for $ 81.2 million . the new loan fully refinances 20 of the company 's notes payable and partially pays down 1 note payable ( collectively , “ repaid notes ” ) with interest rates ranging from 5 % to 12 % covering 43 parcels of real properties the company previously acquired ( “ properties ” ) .
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Suspicious Activity Report : these estimates are based on management 's historical industry experience and on various other assumptions that are believed to be reasonable under the circumstances . on a regular basis , we evaluate these accounting policies , assumptions , estimates and judgments to ensure that our financial statements are presented fairly and in accordance with gaap . however , because future events and their effects can not be determined with certainty , actual results may differ from our estimates , and such differences could be material . a full discussion of our significant accounting policies is contained in note 2 to our consolidated financial statements , which is included in item 8 – “ financial statements and supplementary data ” of this report . we believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our financial results . these estimates require our most difficult , subjective or complex judgments because they relate to matters that are inherently uncertain . we have reviewed these critical accounting policies and estimates and related disclosures with our audit committee . long-lived assets we review long-lived assets , such as property and equipment , and intangible assets subject to amortization , for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable . these events or changes in circumstances include , but are not limited to , significant underperformance relative to historical or projected future operating results , significant changes in the manner of use of the acquired assets or the strategy for the overall business , and significant negative industry or economic trends . recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted cash flows over the estimated remaining useful life of the asset group . if the asset group is not recoverable , the impairment loss is calculated as the excess of the carrying value over the fair value . we define our asset group as an operating club or restaurant location , which is also our reporting unit or the lowest level for which cash flows can be identified . assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell , and are no longer depreciated . during the fourth quarter of fiscal 2017 , we impaired one club by $ 385,000 , and during the fourth quarter of fiscal 2016 , we impaired one property held for sale by $ 1.4 million . investment during the fourth quarter of fiscal 2017 , we also fully impaired our remaining investment in drink robust amounting to $ 1.2 million . goodwill and other intangible assets goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter , and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired . 24 our impairment calculations require management to make assumptions and to apply judgment in order to estimate fair values . if our actual results are not consistent with our estimates and assumptions , we may be exposed to impairments that could be material . we do not believe that there is a reasonable likelihood that there will be a material change in the estimates or assumptions we used to calculate impairment charges . for our goodwill impairment review , we first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value . this assessment is based on several factors , including industry and market conditions , overall financial performance , including an assessment of cash flows in comparison to actual and projected results of prior periods . if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis , we perform a step 1 analysis to determine the fair value of the reporting unit . the fair value is determined using market-related valuation models , including earnings multiples , discounted cash flows , and comparable asset market values . as detailed within note 2 of our consolidated financial statements , we adopted asu 2017-04 , intangibles – goodwill and other ( topic 350 ) : simplifying the test for goodwill impairment , during q4 of 2017 , and accordingly , we recognize goodwill impairment in the amount that the carrying value of the reporting unit exceeds the fair value of the reporting unit , not to exceed the amount of goodwill allocated to the reporting unit , based on the results of our step 1 analysis . for the year ended september 30 , 2017 , we identified four reporting units that were impaired and recognized a goodwill impairment loss totaling $ 4.7 million . for indefinite-lived intangibles , specifically sob licenses , we determine fair value by estimating the multiperiod excess earnings of the asset . for indefinite-lived tradename , we determine fair value by using the relief from royalty method . the fair value is then compared to the carrying value and an impairment charge is recognized by the amount by which the carrying amount exceeds the fair value of the asset . we recorded impairment charges for sob licenses amounting to $ 1.4 million for 2017 , $ 2.1 million for 2016 and $ 1.7 million for 2015 , related to two clubs in 2017 , one club in 2016 and two clubs in 2015. income taxes we estimate certain components of our provision for income taxes . story_separator_special_tag we exclude from non-gaap net income and non-gaap net income per diluted share amortization of intangibles , gain on settlement of patron tax case , income tax expense , impairment charges , gain on acquisition of controlling interest in subsidiary , gains or losses on sale of assets , stock-based compensation , and settlement of lawsuits , and include the non-gaap provision for current and deferred income taxes , calculated as the tax effect at 37 % , 35 % and 35 % in 2017 , 2016 and 2015 , respectively , effective tax rate of the pre-tax non-gaap income before taxes , because we believe that excluding and including such items help management and investors better understand our operating activities . adjusted ebitda . we exclude from adjusted ebitda depreciation expense , amortization of intangibles , impairment of assets , income taxes , interest expense , interest income , gains or losses on sale of assets , settlement of lawsuits , gain on settlement of patron tax case , and gain on acquisition of controlling interest in subsidiary because we believe that adjusting for such items helps management and investors better understand our operating activities . adjusted ebitda provides a core operational performance measurement that compares results without the need to adjust for federal , state and local taxes which have considerable variation between domestic jurisdictions . the results are , therefore , without consideration of financing alternatives of capital employed . we use adjusted ebitda as one guideline to assess the unleveraged performance return on our investments . adjusted ebitda is also the target benchmark for our acquisitions of nightclubs . we also use certain non-gaap cash flow measures such as free cash . see “ liquidity and capital resources ” section for further discussion . 33 the following tables present our non-gaap performance measures for the periods indicated ( in thousands , except per share amounts and percentages ) : replace_table_token_16_th 34 replace_table_token_17_th * per share amounts and percentages may not foot due to rounding . 35 the adjustments to reconcile net income attributable to rcihh common shareholders to non-gaap net income exclude the impact of adjustments related to noncontrolling interests , which is immaterial . in the calculation of non-gaap diluted net income per share , we take into consideration the adjustment to net income from assumed conversion of debentures ( see note 2 to the consolidated financial statements ) . liquidity and capital resources we believe our ability to generate cash from operating activities is one of our fundamental financial strengths . the near-term outlook for our business remains strong , and we expect to generate substantial cash flows from operations in fiscal 2018. as a result of our expected cash flows from operations , we have significant flexibility to meet our financial commitments . the company has not recently raised capital through the issuance of equity securities . instead , we use debt financing to lower our overall cost of capital and increase our return on stockholders ' equity . we have a history of borrowing funds in private transactions and from sellers in acquisition transactions and continue to have the ability to borrow funds at reasonable interest rates in that manner . we also have historically utilized these cash flows to invest in property and equipment , adult nightclubs and restaurants/sports bars . as of september 30 , 2017 , we had negative working capital of $ 10.6 million ( excluding the impact of assets held for sale amounting to $ 5.8 million ) compared to negative working capital of $ 5.3 million as of september 30 , 2016 ( excluding the impact of assets held for sale amounting to $ 7.7 million ) . the decrease in working capital is principally due to the following items : ● operating cash flow for the year ; ● increase in current portion of long-term debt ; and ● partially offset by a net increase in current assets , excluding cash , mainly from prepaid income taxes and insurance . we believe that our current sources of liquidity and capital will be sufficient to finance our continued operations and growth plans not only within the next 12 months , but for the next 18 to 24 months . refer to sections on debt financing and contractual obligations and commitments below for a discussion of long-term liquidity and capital resources . 36 cash flows from operating activities following are our summarized cash flows from operating activities ( in thousands ) : replace_table_token_18_th net cash flows from operating activities decreased from 2016 to 2017 due to a decrease in working capital caused by year-end vendor payments , higher income taxes and higher interest expense paid in 2017 ; while net cash flows from operating activities increased from 2015 to 2016 due to lower income taxes paid and higher pre-tax income partially offset by higher interest expense paid in 2016. cash flows from investing activities following are our summarized cash flows from investing activities ( in thousands ) : replace_table_token_19_th we opened five new units in 2017 ( including two acquired and one reconcepted from a bombshells to a club ) ; reconcepted one club and acquired one club in 2016 ; and opened two clubs ( including one acquired ) in 2015. we also constructed and moved to a new corporate office in 2016. following is a reconciliation of our additions to property and equipment for the years ended september 30 , 2017 , 2016 and 2015 ( in thousands ) : replace_table_token_20_th 37 cash flows from financing activities following are our summarized cash flows from financing activities ( in thousands ) : replace_table_token_21_th we purchased treasury stock representing 89,685 shares , 747,081 shares and 225,280 shares in 2017 , 2016 and 2015 , respectively . during the second quarter of 2016 , we started paying quarterly dividends in the amount of $ 0.03 per share . see note 8 to our consolidated financial statements for a
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2,605 | t he casino began operating on a limited basis i n february 2015 , and we expect the casino will continue limited operations until its gaming license expires in may 201 7 . · w e have a 75 % ownership interest in cdr and we consolidate cdr as a majority-owned subsidiary for which we have a controlling financial interest . we account for and report the remaining 25 % ownership interest in cdr as a non-controlling financial interest . cdr operates century downs racetrack and casino , a rec in balzac , a north metropolitan area of calgary , alberta , canada . cdr 's casino opened on april 1 , 2015 and the horse racing season began on april 25 , 2015. the 2015 horse racing season wa s from april to november . century downs is the only horse racing track in the calgary area and is located less than one mile north of the city limits of calgary and 4.5 miles from the calgary international airport . · w e have a 75 % ownership interest in cbs and we consolidate cbs as a majority-owned subsidiary for which we have a controlling financial interest . rocky mountain turf club ( “ rmtc ” ) owns the remaining 25 % of cbs . we account for and report the 25 % ownership interest of rmtc in cbs as a non-controlling financial interest . cbs began operating the pari-mutuel network on may 4 , 2015. the pari-mutuel network consists of sourcing of common pool pari-mutuel wagering content and live video to off-track betting parlors throughout southern alberta . 33 the following agreements make up the operating segment cruise ships & other in the corporate and other reportable segment : · we operate 1 0 ship-based casinos onboard ships of tui cruises and windstar cruises . as of december 31 , 2015 , we had a total of 1 55 slot machines and 2 2 tables on board the 1 0 cruise ships where we operated casinos . the following table summarizes the cruise lines for which we have entered into agreements , the associated ships on which we operate ship-based casinos and the number of slots and tables on each ship . replace_table_token_12_th · we operate the ship-based casinos onboard three new ships that were launched in 2015 : windstar cruises star breeze and star legend and tui cruises mein schiff 4. in september 2015 , we amended our concession agreement with tui cruises to include our operation of the ship-based casinos onboard mein schiff 5 and mein schiff 6 , two new 2,500 passenger cruise ships that are scheduled to begin operations in 2016 and 2017 , respectively . our agreement with nova star cruises ltd. to operate a ship-based casino onboard the nova star , a round trip cruise ferry service connecting portland , maine to yarmouth , nova scotia , ended in october 2015 after the 2015 sailing season . in march 2015 , we mutually agreed with norwegian to terminate our concession agreements with oceania and regent , indirect subsidiaries of norwegian , effective june 1 , 2015. we transitioned operations of the eight ship-based casinos that we operated onboard oceania and regent vessels to norwegian in the second quarter of 2015. as consideration for the early termination of the concession agreements , we rec orded $ 3.4 million as operating income in june 2015 from the $ 4.0 million cash consideration we received , net of $ 0.6 million in assets that were sold to norwegian as part of the termination agreement . in march 2015 , we entered into a two-year consulting agreement with norwegian , which became effective june 1 , 2015. under the consulting agreement , we are providing limited consulting services for the ship-based casinos of oceania and regent in exchange for receiving a consulting fee of $ 2.0 million , which is payable $ 250,000 per quarter . · in december 2010 , we entered into a long-term management agreement to direct the operation of the casino at the radisson aruba resort , casino & spa . in 2015 , the radisson aruba resort , casino & spa was sold and rebranded as the hilton aruba caribbean resort and casino . our management agreement was assumed by the new owners and no changes were made to the original agreement from which we receive a monthly management fee . 34 · through our subsidiary cce , we have a 7.5 % ownership interest in mce and we report our ownership interest using the cost method of accounting . mce has an exclusive concession agreement with ipjc to lease slot machines and provide related services to casino de mendoza , a casino located in mendoza , argentina , and owned by the province of mendoza . mce may also pursue other gaming opportunities . cce has appointed one director to mce 's board of directors and has a three-year option through october 2017 to purchase up to 50 % of the shares of mce . the option can be exercised by cce in tranches of shares , with each tranche representing not less than ten percent of the total outstanding shares of mce . the exercise price of the shares is based upon the value of mce at the time the option is exercised , which value is determined by a multiple of mce 's ebitda less certain debt . there are no conditions that limit cce 's ability to exercise this option . in addition , cce and mce have entered into a c onsulting s ervice a greement pursuant to which cce provide s advice on casino matters and receives a service fee consisting of a fixed fee plus a percentage of mce 's ebitda . story_separator_special_tag 40 in cad , total operating costs and expenses increased by 2.0 million , or 7.6 % , for the year ended december 31 , 2014 compared to the year ended december 31 , 2013. century downs added cad 0.7 million in total operating costs and expenses mainly related to payroll , acquisition costs and legal fees incurred in preparing the casino for opening in april 2015. at edmonton , total operating costs and expenses increased by cad 0.9 million , or 4.8 % , primarily due to increased payroll expenses of cad 0.5 million as a result of the extended table game hours and minimum wage increase and increased food and beverage costs of cad 0.2 million for the year ended december 31 , 2014 compared to the year ended december 31 , 2013. at calgary , total operating costs and expenses increased by cad 0.5 million , or 5.8 % , primarily due to increased payroll expenses of c ad 0.2 million as a result of the extended table game hours and minimum wage increase and increased general and administrative costs of cad 0.2 million for the year ended december 31 , 2014 compared to the year ended december 31 , 2013. as a result of the foregoing , earnings from operations increased by $ 0.7 million , or 8.9 % , net earnings increased by $ 0.8 million , or 13.7 % , and adjusted ebitda increased by $ 0.7 million , or 7.4 % , for the year ended december 31 , 2014 compared to the year ended december 31 , 2013. a reconciliation of adjusted ebitda to net earnings can be found in the “ non-gaap measures – adjusted ebitda ” discussion in item 6 , “ selected financial data ” . in cad , earnings from operations increased by 1.4 million , or 17.9 % , net earnings increased by 1.1 million , or 21.0 % , and adjusted ebitda increased by 1.5 million , or 14.8 % , for the year ended december 31 , 2014 compared to the year ended december 31 , 2013. the difference between net earnings of cad 1.1 million compared to earnings from operations of cad 1.4 million was due to an increase in interest expense of cad 2.1 million at century downs and ou r edmonton property , increased foreign currency losses of cad 0.2 million and an increase in income tax expense of cad 0.5 million for the year ended december 31 , 2014 compared to the year ended december 31 , 2013 . 41 replace_table_token_16_th years ended december 31 , 2015 and 2014 net operating revenue in the united states increased by $ 1.7 million , or 6.5 % , for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 due to increases in all revenue categories except food and beverage . at central city gaming revenue increased by $ 1.1 million , or 6.4 % , and at cripple creek gaming revenue increased by $ 0.6 million , or 4.6 % , due to increased slot revenue at both properties for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. hotel revenue increased by $ 0.2 million , or 58.8 % , at cripple creek for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 , due to the implementation of on-line bookings at the beginning of 2015. the increased revenue was offset by increased promotional expenses at our central city property due to increased player promotions for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. the central city market increased by 5 . 2 % for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 , and our property 's share of the central city market remained constant at 28.1 % for the same period . the cripple creek market increased by 4.1 % for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 , and our property 's share of the cripple creek market increased from 9.8 % to 9.9 % , or by 0.8 % , for the same period . market share is calculated by dividing our property 's agp into the market 's agp for the same time period . total operating costs and expenses remained constant at both properties for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. because of the foregoing , earnings from operations increased by $ 1.8 million , or 85.7 % , net earnings increased by $ 1.1 million , or 85.6 % , and adjusted ebitda increased by $ 1.9 million , or 41.4 % , for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. the difference between the increase in net earnings of $ 1.1 million and the increase in earnings from operations of $ 1.8 million was increased income tax expense of $ 0.7 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. a reconciliation of adjusted ebitda to net earnings can be found in the “ non-gaap measures – adjusted ebitda ” discussion in item 6 , “ selected financial data ” . 42 years ended december 31 , 2014 and 2013 net operating revenue in the united states decreased by ( $ 2.5 ) million , or ( 8.5 % ) , for the year ended december 31 , 2014 compared to the year ended december 31 , 2013 due to decreased gaming revenue and increased promotional expenses . at central city gaming revenue decreased by ( $ 1.4 ) million , or ( 7.7 % ) , and at cripple creek gaming revenue decreased by ( $ 0.7 ) million
| restrict incurrence of additional debt , and require cpl to maintain debt ratios and a current liquidity ratio of 0.6 or higher . on march 26 , 2015 , cpl and mbank amended the credit agreement to lower the current liquidity ratio to 0.5. cpl was in compliance with all covenants of this credit agreement as of december 31 , 2015 . 49 the second credit agreement is also with mbank . under this credit agreement , cpl entered into a three year term loan on september 15 , 2014 at an interest rate of wibor plus 1.70 % . proceeds from the loan were used to repay balances outstanding under the prior credit agreement with mbank that matured in september 2014 and to finance current operations . as of december 31 , 2015 , the amount outstanding was pln 2.1 million ( $ 0 . 5 million based on the exchange rate in effect on december 31 , 2015 ) . cpl ha s no further borrowing availability under the loan and the loan matures in september 201 7 . the m bank credit agreement contains a number of financial covenants applicable to cpl , including covenants that restrict incurrence of additional debt , and require cpl to maintain debt ratios and a current liquidity ratio of 0.6 or higher . on march 26 , 2015 , cpl and mbank amended the credit agreement to lower the current liquidity ratio to 0.5. cpl was in compliance with all covenants of this credit agreement as of december 31 , 2015 . the credit facility is a short-term line of credit with bph bank used to finance current operations . in february 2016 , the term of the short-term line of credit was extended from february 13 , 2016 to february 11 , 2018. the extended line of credit bears the same interest rate of wibor plus 1 . 8 5 % with a borrowing capacity of pln 13.0 million , of which pln 2.0 million can only be used to secure bank guarantees . the bph bank line of credit is secured by a building owned by cpl in warsaw , poland .
| 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.
```restrict incurrence of additional debt , and require cpl to maintain debt ratios and a current liquidity ratio of 0.6 or higher . on march 26 , 2015 , cpl and mbank amended the credit agreement to lower the current liquidity ratio to 0.5. cpl was in compliance with all covenants of this credit agreement as of december 31 , 2015 . 49 the second credit agreement is also with mbank . under this credit agreement , cpl entered into a three year term loan on september 15 , 2014 at an interest rate of wibor plus 1.70 % . proceeds from the loan were used to repay balances outstanding under the prior credit agreement with mbank that matured in september 2014 and to finance current operations . as of december 31 , 2015 , the amount outstanding was pln 2.1 million ( $ 0 . 5 million based on the exchange rate in effect on december 31 , 2015 ) . cpl ha s no further borrowing availability under the loan and the loan matures in september 201 7 . the m bank credit agreement contains a number of financial covenants applicable to cpl , including covenants that restrict incurrence of additional debt , and require cpl to maintain debt ratios and a current liquidity ratio of 0.6 or higher . on march 26 , 2015 , cpl and mbank amended the credit agreement to lower the current liquidity ratio to 0.5. cpl was in compliance with all covenants of this credit agreement as of december 31 , 2015 . the credit facility is a short-term line of credit with bph bank used to finance current operations . in february 2016 , the term of the short-term line of credit was extended from february 13 , 2016 to february 11 , 2018. the extended line of credit bears the same interest rate of wibor plus 1 . 8 5 % with a borrowing capacity of pln 13.0 million , of which pln 2.0 million can only be used to secure bank guarantees . the bph bank line of credit is secured by a building owned by cpl in warsaw , poland .
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Suspicious Activity Report : t he casino began operating on a limited basis i n february 2015 , and we expect the casino will continue limited operations until its gaming license expires in may 201 7 . · w e have a 75 % ownership interest in cdr and we consolidate cdr as a majority-owned subsidiary for which we have a controlling financial interest . we account for and report the remaining 25 % ownership interest in cdr as a non-controlling financial interest . cdr operates century downs racetrack and casino , a rec in balzac , a north metropolitan area of calgary , alberta , canada . cdr 's casino opened on april 1 , 2015 and the horse racing season began on april 25 , 2015. the 2015 horse racing season wa s from april to november . century downs is the only horse racing track in the calgary area and is located less than one mile north of the city limits of calgary and 4.5 miles from the calgary international airport . · w e have a 75 % ownership interest in cbs and we consolidate cbs as a majority-owned subsidiary for which we have a controlling financial interest . rocky mountain turf club ( “ rmtc ” ) owns the remaining 25 % of cbs . we account for and report the 25 % ownership interest of rmtc in cbs as a non-controlling financial interest . cbs began operating the pari-mutuel network on may 4 , 2015. the pari-mutuel network consists of sourcing of common pool pari-mutuel wagering content and live video to off-track betting parlors throughout southern alberta . 33 the following agreements make up the operating segment cruise ships & other in the corporate and other reportable segment : · we operate 1 0 ship-based casinos onboard ships of tui cruises and windstar cruises . as of december 31 , 2015 , we had a total of 1 55 slot machines and 2 2 tables on board the 1 0 cruise ships where we operated casinos . the following table summarizes the cruise lines for which we have entered into agreements , the associated ships on which we operate ship-based casinos and the number of slots and tables on each ship . replace_table_token_12_th · we operate the ship-based casinos onboard three new ships that were launched in 2015 : windstar cruises star breeze and star legend and tui cruises mein schiff 4. in september 2015 , we amended our concession agreement with tui cruises to include our operation of the ship-based casinos onboard mein schiff 5 and mein schiff 6 , two new 2,500 passenger cruise ships that are scheduled to begin operations in 2016 and 2017 , respectively . our agreement with nova star cruises ltd. to operate a ship-based casino onboard the nova star , a round trip cruise ferry service connecting portland , maine to yarmouth , nova scotia , ended in october 2015 after the 2015 sailing season . in march 2015 , we mutually agreed with norwegian to terminate our concession agreements with oceania and regent , indirect subsidiaries of norwegian , effective june 1 , 2015. we transitioned operations of the eight ship-based casinos that we operated onboard oceania and regent vessels to norwegian in the second quarter of 2015. as consideration for the early termination of the concession agreements , we rec orded $ 3.4 million as operating income in june 2015 from the $ 4.0 million cash consideration we received , net of $ 0.6 million in assets that were sold to norwegian as part of the termination agreement . in march 2015 , we entered into a two-year consulting agreement with norwegian , which became effective june 1 , 2015. under the consulting agreement , we are providing limited consulting services for the ship-based casinos of oceania and regent in exchange for receiving a consulting fee of $ 2.0 million , which is payable $ 250,000 per quarter . · in december 2010 , we entered into a long-term management agreement to direct the operation of the casino at the radisson aruba resort , casino & spa . in 2015 , the radisson aruba resort , casino & spa was sold and rebranded as the hilton aruba caribbean resort and casino . our management agreement was assumed by the new owners and no changes were made to the original agreement from which we receive a monthly management fee . 34 · through our subsidiary cce , we have a 7.5 % ownership interest in mce and we report our ownership interest using the cost method of accounting . mce has an exclusive concession agreement with ipjc to lease slot machines and provide related services to casino de mendoza , a casino located in mendoza , argentina , and owned by the province of mendoza . mce may also pursue other gaming opportunities . cce has appointed one director to mce 's board of directors and has a three-year option through october 2017 to purchase up to 50 % of the shares of mce . the option can be exercised by cce in tranches of shares , with each tranche representing not less than ten percent of the total outstanding shares of mce . the exercise price of the shares is based upon the value of mce at the time the option is exercised , which value is determined by a multiple of mce 's ebitda less certain debt . there are no conditions that limit cce 's ability to exercise this option . in addition , cce and mce have entered into a c onsulting s ervice a greement pursuant to which cce provide s advice on casino matters and receives a service fee consisting of a fixed fee plus a percentage of mce 's ebitda . story_separator_special_tag 40 in cad , total operating costs and expenses increased by 2.0 million , or 7.6 % , for the year ended december 31 , 2014 compared to the year ended december 31 , 2013. century downs added cad 0.7 million in total operating costs and expenses mainly related to payroll , acquisition costs and legal fees incurred in preparing the casino for opening in april 2015. at edmonton , total operating costs and expenses increased by cad 0.9 million , or 4.8 % , primarily due to increased payroll expenses of cad 0.5 million as a result of the extended table game hours and minimum wage increase and increased food and beverage costs of cad 0.2 million for the year ended december 31 , 2014 compared to the year ended december 31 , 2013. at calgary , total operating costs and expenses increased by cad 0.5 million , or 5.8 % , primarily due to increased payroll expenses of c ad 0.2 million as a result of the extended table game hours and minimum wage increase and increased general and administrative costs of cad 0.2 million for the year ended december 31 , 2014 compared to the year ended december 31 , 2013. as a result of the foregoing , earnings from operations increased by $ 0.7 million , or 8.9 % , net earnings increased by $ 0.8 million , or 13.7 % , and adjusted ebitda increased by $ 0.7 million , or 7.4 % , for the year ended december 31 , 2014 compared to the year ended december 31 , 2013. a reconciliation of adjusted ebitda to net earnings can be found in the “ non-gaap measures – adjusted ebitda ” discussion in item 6 , “ selected financial data ” . in cad , earnings from operations increased by 1.4 million , or 17.9 % , net earnings increased by 1.1 million , or 21.0 % , and adjusted ebitda increased by 1.5 million , or 14.8 % , for the year ended december 31 , 2014 compared to the year ended december 31 , 2013. the difference between net earnings of cad 1.1 million compared to earnings from operations of cad 1.4 million was due to an increase in interest expense of cad 2.1 million at century downs and ou r edmonton property , increased foreign currency losses of cad 0.2 million and an increase in income tax expense of cad 0.5 million for the year ended december 31 , 2014 compared to the year ended december 31 , 2013 . 41 replace_table_token_16_th years ended december 31 , 2015 and 2014 net operating revenue in the united states increased by $ 1.7 million , or 6.5 % , for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 due to increases in all revenue categories except food and beverage . at central city gaming revenue increased by $ 1.1 million , or 6.4 % , and at cripple creek gaming revenue increased by $ 0.6 million , or 4.6 % , due to increased slot revenue at both properties for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. hotel revenue increased by $ 0.2 million , or 58.8 % , at cripple creek for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 , due to the implementation of on-line bookings at the beginning of 2015. the increased revenue was offset by increased promotional expenses at our central city property due to increased player promotions for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. the central city market increased by 5 . 2 % for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 , and our property 's share of the central city market remained constant at 28.1 % for the same period . the cripple creek market increased by 4.1 % for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 , and our property 's share of the cripple creek market increased from 9.8 % to 9.9 % , or by 0.8 % , for the same period . market share is calculated by dividing our property 's agp into the market 's agp for the same time period . total operating costs and expenses remained constant at both properties for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. because of the foregoing , earnings from operations increased by $ 1.8 million , or 85.7 % , net earnings increased by $ 1.1 million , or 85.6 % , and adjusted ebitda increased by $ 1.9 million , or 41.4 % , for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. the difference between the increase in net earnings of $ 1.1 million and the increase in earnings from operations of $ 1.8 million was increased income tax expense of $ 0.7 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. a reconciliation of adjusted ebitda to net earnings can be found in the “ non-gaap measures – adjusted ebitda ” discussion in item 6 , “ selected financial data ” . 42 years ended december 31 , 2014 and 2013 net operating revenue in the united states decreased by ( $ 2.5 ) million , or ( 8.5 % ) , for the year ended december 31 , 2014 compared to the year ended december 31 , 2013 due to decreased gaming revenue and increased promotional expenses . at central city gaming revenue decreased by ( $ 1.4 ) million , or ( 7.7 % ) , and at cripple creek gaming revenue decreased by ( $ 0.7 ) million
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2,606 | however , if the only undelivered element is maintenance and support , the entire arrangement fee is recognized ratably over the performance period . changes in assumptions or judgments or changes to the 35 elements in a software arrangement could cause a material increase or decrease in the amount of revenue that we report in a particular period . we determine vsoe for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial arrangement . in determining vsoe , we require that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range . we have established vsoe for our software maintenance and support services , custom software development services , con sulting services and training . for multiple-element arrangements containing our non-software services , we must : ( 1 ) determine whether and when each element has been delivered ; ( 2 ) determine fair value of each element using the selling price hierarchy of vsoe of selling price , third-party evidence ( “ tpe ” ) of selling price or best-estimated selling price ( “ besp ” ) , as applicable ; and ( 3 ) allocate the total price among the various elements based on the relative selling price method . for multiple-element arrangements that contain both software and non-software elements , we allocate revenue to software or software-related elements as a group and any non-software elements separately based on the selling price hierarchy . we determine the selling price for each deliverable using vsoe of selling price , if it exists , or tpe of selling price . if neither vsoe nor tpe of selling price exist for a deliverable , we use besp . once revenue is allocated to software or software-related elements as a group , we recognize revenue in conformance with software revenue accounting guidance . revenue is recognized when revenue recognition criteria are met for each element . we are generally unable to establish vsoe or tpe for non-software elements and as such , we use besp . besp is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings . we determine besp for a product or service by considering multiple factors including , but not limited to , major product groupings , geographies , market conditions , competitive landscape , internal costs , gross margin objectives and pricing practices . pricing practices taken into consideration include historic contractually stated prices , volume discounts where applicable and our price lists . we must estimate certain royalty revenue amounts due to the timing of securing information from our customers . while we believe we can make reliable estimates regarding these matters , these estimates are inherently subjective . accordingly , our assumptions and judgments regarding future products and services as well as our estimates of royalty revenue could differ from actual events , thus materially impacting our financial position and results of operations . product revenue is recognized when the above criteria are met . we reduce the revenue recognized for estimated future returns , price protection and rebates at the time the related revenue is recorded . in determining our estimate for returns and in accordance with our internal policy regarding global channel inventory which is used to determine the level of product held by our distributors on which we have recognized revenue , we rely upon historical data , the estimated amount of product inventory in our distribution channel , the rate at which our product sells through to the end user , product plans and other factors . our estimated provisions for returns can vary from what actually occurs . product returns may be more or less than what was estimated . the amount of inventory in the channel could be different than what is estimated . our estimate of the rate of sell-through for product in the channel could be different than what actually occurs . there could be a delay in the release of our products . these factors and unanticipated changes in the economic and industry environment could make our return estimates differ from actual returns , thus impacting our financial position and results of operations . in the future , actual returns and price protection may exceed our estimates as unsold products in the distribution channels are exposed to rapid changes in consumer preferences , market conditions or technological obsolescence due to new platforms , product updates or competing products . while we believe we can make reliable estimates regarding these matters , these estimates are inherently subjective . accordingly , if our estimates change , our returns and price protection reserves would change , which would impact the total net revenue we report . we recognize revenues for hosting services that are based on a committed number of transactions ratably beginning on the date the customer commences use of our services and continuing through the end of the customer term . over-usage fees , and fees billed based on the actual number of transactions from which we capture data , are billed in accordance with contract terms as these fees are incurred . we record amounts that have been invoiced in accounts receivable and in deferred revenue or revenue , depending on whether the revenue recognition criteria have been met . our consulting revenue is recognized on a time and materials basis and is measured monthly based on input measures , such as on hours incurred to date compared to total estimated hours to complete , with consideration given to output measures , such as contract milestones , when applicable . story_separator_special_tag however , consistent with our strategy , during fiscal 2013 , our subscription revenue as a percentage of total revenue increased to 28 % from 15 % and 11 % as compared to fiscal 2012 and 2011 , respectively , as we transition more of our business to a subscription-based model . total digital media arr of approximately $ 911.0 million as of november 29 , 2013 increased by approximately $ 707.0 million , or 347 % , from approximately $ 204.0 million as of november 30 , 2012 . the increase in our digital media arr is primarily due to increases in the number of paid creative cloud individual and team subscriptions and adoption of our enterprise creative cloud offering through our etlas . our total deferred revenue of $ 828.8 million as of november 29 , 2013 increased by $ 209.2 million , or 34 % from november 30 , 2012 , primarily due to increases in etlas and renewals for our adobe marketing cloud services . cost of revenue of $ 586.6 million increased by $ 102.8 million , or 21 % , during fiscal 2013 , from $ 483.8 million in fiscal 2012 , and $ 45.9 million or 10 % during fiscal 2012 from $ 437.9 million in fiscal 2011 . these increases are primarily due to increases in costs associated with compensation and related benefits driven by additional headcount and increased hosting and server costs associated with our subscription and saas offerings . operating expenses of $ 3,046.0 million increased by $ 306.3 million or 11 % , during fiscal 2013 , from $ 2,739.7 million in fiscal 2012 , and $ 60.6 million , or 2 % in fiscal 2012 from $ 2,679.1 million in fiscal 2011 . these increases are primarily due to increases in costs associated with compensation and related benefits driven by additional headcount . net income of $ 290.0 million decreased by $ 542.8 million , or 65 % , during fiscal 2013 from $ 832.8 million in fiscal 2012. the decrease is primarily due to the revenue model becoming more ratable as well as the cost and expense increases stated above . net income during fiscal 2012 remained stable compared to fiscal 2011 . 40 net cash flow from operations of $ 1,151.7 million during fiscal 2013 decreased by $ 347.9 million , or 23 % , as compared to fiscal 2012 primarily due to lower net income as discussed above . net cash flow from operations during fiscal 2012 remained stable compared to fiscal 2011. revenue ( dollars in millions ) replace_table_token_5_th as described in note 18 of our notes to consolidated financial statements , we have the following segments : digital media , digital marketing and print and publishing . our subscription revenue is comprised primarily of fees we charge for our subscription and hosted service offerings including certain of our adobe marketing cloud services and creative cloud . we recognize subscription revenue ratably over the term of agreements with our customers , beginning on the commencement of the service . we expect our subscription revenue will continue to increase as a result of our investments in new saas and subscription models . we also expect this to increase the amount of recurring revenue we generate as a percent of our total revenue . of the $ 1,137.9 million , $ 673.2 million and $ 458.6 million in subscription revenue for fiscal 2013 , 2012 and 2011 , respectively , approximately $ 663.1 million , $ 553.2 million and $ 429.2 million , respectively , is from our digital marketing segment , with the remaining amounts substantially representing our digital media segment offerings . our services and support revenue is comprised of consulting , training and maintenance and support , primarily related to the licensing of our enterprise , developer and platform products and the sale of our adobe marketing cloud services . our support revenue also includes technical support and developer support to partners and developer organizations related to our desktop products . our maintenance and support offerings , which entitle customers to receive product upgrades and enhancements or technical support , depending on the offering , are generally recognized ratably over the term of the arrangement . segments in fiscal 2013 , we categorized our products into the following segments : digital media —our digital media segment provides tools and solutions that enable individuals , small businesses and enterprises to create , publish , promote and monetize their digital content anywhere . our customers include traditional content creators , web application developers and digital media professionals , as well as their management in marketing departments and agencies , companies and publishers . digital marketing —our digital marketing segment provides solutions and services for how digital advertising and marketing are created , managed , executed , measured and optimized . our customers include digital marketers , advertisers , publishers , merchandisers , web analysts , chief marketing officers , chief information officers and chief revenue officers . print and publishing —our print and publishing segment addresses market opportunities ranging from the diverse authoring and publishing needs of technical and business publishing to our legacy type and oem printing businesses . 41 segment information ( dollars in millions ) replace_table_token_6_th fiscal 2013 revenue compared to fiscal 2012 revenue digital media revenue from digital media decreased $ 476.0 million during fiscal year 2013 as compared to fiscal 2012 , primarily due to continued strong adoption of creative cloud and etlas as we continue to transition more of our business to a subscription-based model . revenue related to our creative professional products , which include our creative suite editions and cs point products as well as creative cloud , decreased during fiscal 2013 as compared to fiscal 2012 due to continued customer adoption of creative cloud subscription offerings , released in may 2012. we continue to anticipate accelerated adoption of creative cloud for individuals , teams and enterprises
| cash flows from financing activities for fiscal 2013 , fiscal 2012 and fiscal 2011 , net cash used for financing activities of $ 559.1 million , $ 234.7 million and $ 550.4 million , respectively , was primarily due to treasury stock repurchases offset in part by proceeds from our treasury stock issuances . see the section titled “ stock repurchase program ” discussed below . we expect to continue our investing activities , including short-term and long-term investments , venture capital , facilities expansion and purchases of computer systems for research and development , sales and marketing , product support and administrative staff . furthermore , cash reserves may be used to repurchase stock under our stock repurchase program and to strategically acquire companies , products or technologies that are complementary to our business . restructuring during the past several years , we have initiated various restructuring plans . currently , we have two active restructuring plans that were of significance to us : fiscal 2011 restructuring plan fiscal 2009 restructuring plan as of november 29 , 2013 , we have accrued total restructuring charges of $ 13.9 million of which approximately $ 11.7 million relates to cost of closing redundant facilities and are expected to be paid under contract through fiscal 2021. approximately 54 % of these facility closing costs will be paid through 2015. during fiscal 2013 , we made payments related to the above restructuring plans totaling $ 10.3 million which consisted of $ 1.3 million and $ 9.0 million in payments related to termination benefits and contract terminations and the closing of redundant facilities , respectively . as of november 30 , 2012 , we accrued total restructuring charges of $ 21.6 million of which $ 2.3 million related to ongoing termination benefits and contract terminations . the remaining accrued restructuring charges of $ 19.3 million related to the cost of closing redundant facilities .
| 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 financing activities for fiscal 2013 , fiscal 2012 and fiscal 2011 , net cash used for financing activities of $ 559.1 million , $ 234.7 million and $ 550.4 million , respectively , was primarily due to treasury stock repurchases offset in part by proceeds from our treasury stock issuances . see the section titled “ stock repurchase program ” discussed below . we expect to continue our investing activities , including short-term and long-term investments , venture capital , facilities expansion and purchases of computer systems for research and development , sales and marketing , product support and administrative staff . furthermore , cash reserves may be used to repurchase stock under our stock repurchase program and to strategically acquire companies , products or technologies that are complementary to our business . restructuring during the past several years , we have initiated various restructuring plans . currently , we have two active restructuring plans that were of significance to us : fiscal 2011 restructuring plan fiscal 2009 restructuring plan as of november 29 , 2013 , we have accrued total restructuring charges of $ 13.9 million of which approximately $ 11.7 million relates to cost of closing redundant facilities and are expected to be paid under contract through fiscal 2021. approximately 54 % of these facility closing costs will be paid through 2015. during fiscal 2013 , we made payments related to the above restructuring plans totaling $ 10.3 million which consisted of $ 1.3 million and $ 9.0 million in payments related to termination benefits and contract terminations and the closing of redundant facilities , respectively . as of november 30 , 2012 , we accrued total restructuring charges of $ 21.6 million of which $ 2.3 million related to ongoing termination benefits and contract terminations . the remaining accrued restructuring charges of $ 19.3 million related to the cost of closing redundant facilities .
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Suspicious Activity Report : however , if the only undelivered element is maintenance and support , the entire arrangement fee is recognized ratably over the performance period . changes in assumptions or judgments or changes to the 35 elements in a software arrangement could cause a material increase or decrease in the amount of revenue that we report in a particular period . we determine vsoe for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial arrangement . in determining vsoe , we require that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range . we have established vsoe for our software maintenance and support services , custom software development services , con sulting services and training . for multiple-element arrangements containing our non-software services , we must : ( 1 ) determine whether and when each element has been delivered ; ( 2 ) determine fair value of each element using the selling price hierarchy of vsoe of selling price , third-party evidence ( “ tpe ” ) of selling price or best-estimated selling price ( “ besp ” ) , as applicable ; and ( 3 ) allocate the total price among the various elements based on the relative selling price method . for multiple-element arrangements that contain both software and non-software elements , we allocate revenue to software or software-related elements as a group and any non-software elements separately based on the selling price hierarchy . we determine the selling price for each deliverable using vsoe of selling price , if it exists , or tpe of selling price . if neither vsoe nor tpe of selling price exist for a deliverable , we use besp . once revenue is allocated to software or software-related elements as a group , we recognize revenue in conformance with software revenue accounting guidance . revenue is recognized when revenue recognition criteria are met for each element . we are generally unable to establish vsoe or tpe for non-software elements and as such , we use besp . besp is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings . we determine besp for a product or service by considering multiple factors including , but not limited to , major product groupings , geographies , market conditions , competitive landscape , internal costs , gross margin objectives and pricing practices . pricing practices taken into consideration include historic contractually stated prices , volume discounts where applicable and our price lists . we must estimate certain royalty revenue amounts due to the timing of securing information from our customers . while we believe we can make reliable estimates regarding these matters , these estimates are inherently subjective . accordingly , our assumptions and judgments regarding future products and services as well as our estimates of royalty revenue could differ from actual events , thus materially impacting our financial position and results of operations . product revenue is recognized when the above criteria are met . we reduce the revenue recognized for estimated future returns , price protection and rebates at the time the related revenue is recorded . in determining our estimate for returns and in accordance with our internal policy regarding global channel inventory which is used to determine the level of product held by our distributors on which we have recognized revenue , we rely upon historical data , the estimated amount of product inventory in our distribution channel , the rate at which our product sells through to the end user , product plans and other factors . our estimated provisions for returns can vary from what actually occurs . product returns may be more or less than what was estimated . the amount of inventory in the channel could be different than what is estimated . our estimate of the rate of sell-through for product in the channel could be different than what actually occurs . there could be a delay in the release of our products . these factors and unanticipated changes in the economic and industry environment could make our return estimates differ from actual returns , thus impacting our financial position and results of operations . in the future , actual returns and price protection may exceed our estimates as unsold products in the distribution channels are exposed to rapid changes in consumer preferences , market conditions or technological obsolescence due to new platforms , product updates or competing products . while we believe we can make reliable estimates regarding these matters , these estimates are inherently subjective . accordingly , if our estimates change , our returns and price protection reserves would change , which would impact the total net revenue we report . we recognize revenues for hosting services that are based on a committed number of transactions ratably beginning on the date the customer commences use of our services and continuing through the end of the customer term . over-usage fees , and fees billed based on the actual number of transactions from which we capture data , are billed in accordance with contract terms as these fees are incurred . we record amounts that have been invoiced in accounts receivable and in deferred revenue or revenue , depending on whether the revenue recognition criteria have been met . our consulting revenue is recognized on a time and materials basis and is measured monthly based on input measures , such as on hours incurred to date compared to total estimated hours to complete , with consideration given to output measures , such as contract milestones , when applicable . story_separator_special_tag however , consistent with our strategy , during fiscal 2013 , our subscription revenue as a percentage of total revenue increased to 28 % from 15 % and 11 % as compared to fiscal 2012 and 2011 , respectively , as we transition more of our business to a subscription-based model . total digital media arr of approximately $ 911.0 million as of november 29 , 2013 increased by approximately $ 707.0 million , or 347 % , from approximately $ 204.0 million as of november 30 , 2012 . the increase in our digital media arr is primarily due to increases in the number of paid creative cloud individual and team subscriptions and adoption of our enterprise creative cloud offering through our etlas . our total deferred revenue of $ 828.8 million as of november 29 , 2013 increased by $ 209.2 million , or 34 % from november 30 , 2012 , primarily due to increases in etlas and renewals for our adobe marketing cloud services . cost of revenue of $ 586.6 million increased by $ 102.8 million , or 21 % , during fiscal 2013 , from $ 483.8 million in fiscal 2012 , and $ 45.9 million or 10 % during fiscal 2012 from $ 437.9 million in fiscal 2011 . these increases are primarily due to increases in costs associated with compensation and related benefits driven by additional headcount and increased hosting and server costs associated with our subscription and saas offerings . operating expenses of $ 3,046.0 million increased by $ 306.3 million or 11 % , during fiscal 2013 , from $ 2,739.7 million in fiscal 2012 , and $ 60.6 million , or 2 % in fiscal 2012 from $ 2,679.1 million in fiscal 2011 . these increases are primarily due to increases in costs associated with compensation and related benefits driven by additional headcount . net income of $ 290.0 million decreased by $ 542.8 million , or 65 % , during fiscal 2013 from $ 832.8 million in fiscal 2012. the decrease is primarily due to the revenue model becoming more ratable as well as the cost and expense increases stated above . net income during fiscal 2012 remained stable compared to fiscal 2011 . 40 net cash flow from operations of $ 1,151.7 million during fiscal 2013 decreased by $ 347.9 million , or 23 % , as compared to fiscal 2012 primarily due to lower net income as discussed above . net cash flow from operations during fiscal 2012 remained stable compared to fiscal 2011. revenue ( dollars in millions ) replace_table_token_5_th as described in note 18 of our notes to consolidated financial statements , we have the following segments : digital media , digital marketing and print and publishing . our subscription revenue is comprised primarily of fees we charge for our subscription and hosted service offerings including certain of our adobe marketing cloud services and creative cloud . we recognize subscription revenue ratably over the term of agreements with our customers , beginning on the commencement of the service . we expect our subscription revenue will continue to increase as a result of our investments in new saas and subscription models . we also expect this to increase the amount of recurring revenue we generate as a percent of our total revenue . of the $ 1,137.9 million , $ 673.2 million and $ 458.6 million in subscription revenue for fiscal 2013 , 2012 and 2011 , respectively , approximately $ 663.1 million , $ 553.2 million and $ 429.2 million , respectively , is from our digital marketing segment , with the remaining amounts substantially representing our digital media segment offerings . our services and support revenue is comprised of consulting , training and maintenance and support , primarily related to the licensing of our enterprise , developer and platform products and the sale of our adobe marketing cloud services . our support revenue also includes technical support and developer support to partners and developer organizations related to our desktop products . our maintenance and support offerings , which entitle customers to receive product upgrades and enhancements or technical support , depending on the offering , are generally recognized ratably over the term of the arrangement . segments in fiscal 2013 , we categorized our products into the following segments : digital media —our digital media segment provides tools and solutions that enable individuals , small businesses and enterprises to create , publish , promote and monetize their digital content anywhere . our customers include traditional content creators , web application developers and digital media professionals , as well as their management in marketing departments and agencies , companies and publishers . digital marketing —our digital marketing segment provides solutions and services for how digital advertising and marketing are created , managed , executed , measured and optimized . our customers include digital marketers , advertisers , publishers , merchandisers , web analysts , chief marketing officers , chief information officers and chief revenue officers . print and publishing —our print and publishing segment addresses market opportunities ranging from the diverse authoring and publishing needs of technical and business publishing to our legacy type and oem printing businesses . 41 segment information ( dollars in millions ) replace_table_token_6_th fiscal 2013 revenue compared to fiscal 2012 revenue digital media revenue from digital media decreased $ 476.0 million during fiscal year 2013 as compared to fiscal 2012 , primarily due to continued strong adoption of creative cloud and etlas as we continue to transition more of our business to a subscription-based model . revenue related to our creative professional products , which include our creative suite editions and cs point products as well as creative cloud , decreased during fiscal 2013 as compared to fiscal 2012 due to continued customer adoption of creative cloud subscription offerings , released in may 2012. we continue to anticipate accelerated adoption of creative cloud for individuals , teams and enterprises
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2,607 | company growth from its inception in 1965 , cavco traditionally served affordable housing markets in the southwestern united states principally through manufactured home production . during the period from 1997 to 2000 , cavco was purchased by and became a wholly-owned subsidiary of centex corporation , which operated the company until 2003 , when cavco became a stand-alone publicly-held company traded on the nasdaq global select market under the ticker symbol cvco . 30 beginning in 2007 , the overall housing industry experienced a multi-year decline , which included the manufactured housing industry . since this downturn , cavco strategically expanded its factory operations and related business initiatives primarily through the acquisition of industry competitor operations . this development has enabled the company to more broadly participate in the overall housing industry recovery . in 2009 , the company acquired certain manufactured housing assets and liabilities of fleetwood . the assets purchased included seven operating production facilities as well as idle factories . during fiscal year 2011 , the company acquired certain manufactured housing assets and liabilities of palm harbor homes , inc. , a florida corporation . the assets purchased included five operating production facilities as well as idle factories , 49 operating retail locations , a manufactured housing finance company and a homeowners insurance company . these acquisitions expanded the company 's presence across the united states . in 2015 , the company purchased the business and operating assets of chariot eagle , a florida-based manufacturer of park model rvs and manufactured homes , as well as certain assets and liabilities of fairmont homes . these transactions provided additional home production capabilities , grew the company 's offering of park model rv product lines and further strengthened our market position in the southeast , midwest , the western great plains states and several provinces in canada . on april 3 , 2017 , the company purchased lexington homes , which operates a manufacturing facility in lexington , mississippi . this transaction was accounted for as a business combination and provides additional home production capabilities , further expanding our distribution into new southern markets . the company operates 20 homebuilding facilities located in millersburg and woodburn , oregon ; nampa , idaho ; riverside , california ; phoenix and goodyear , arizona ; austin , fort worth , seguin and waco , texas ; montevideo , minnesota ( 2 ) ; nappanee , indiana ; lafayette , tennessee ; lexington , mississippi ; martinsville and rocky mount , virginia ; douglas , georgia ; plant city and ocala , florida . the majority of the homes produced are sold to and distributed by independently owned retailers located primarily throughout the united states and canada . in addition , our homes are sold through 39 company-owned u.s. retail locations . we regularly review our product offerings throughout the combined organization and strive to improve product designs , production methods and marketing strategies . the supportive market response to the past and recent acquisitions has been encouraging and we believe that these expansions provide positive long-term strategic benefits for the company . we plan to focus on developing synergies among all operations , which continue to have organic growth potential . company outlook we maintain a conservative cost structure in an effort to build added value into our homes . we have placed a consistent focus on developing synergies among all operations . in addition , the company has worked diligently to maintain a solid financial position . our balance sheet strength and position in cash and cash equivalents should help us avoid liquidity problems and enable us to act effectively as market opportunities present themselves . with manufacturing facilities strategically positioned across the united states , we utilize local market research to design homes to meet the demands of our customers . we have the ability to customize floor plans and designs to fulfill specific needs and interests . by offering a full range of homes from entry-level models to large custom homes with the ability to engineer designs in-house , we can accommodate virtually any customer request . in addition to homes built to the federal hud code , we construct modular homes that conform to state and local codes , park model rvs and cabins and light commercial buildings at many of our manufacturing facilities . 31 we employ a concerted effort to identify niche market opportunities where our diverse product lines and custom building capabilities provide us with a competitive advantage . our green building initiatives involve the creation of an energy efficient envelope and higher utilization of renewable materials . these homes provide environmentally-friendly maintenance requirements , typically lower utility costs , specially designed ventilation systems and sustainability . cavco also builds homes designed to use alternative energy sources , such as solar and wind . from bamboo flooring and tankless water heaters to solar-powered homes , our products are diverse and tailored to a wide range of consumer interests . innovation in housing design is a forte of the company and we continue to introduce new models at competitive price points with expressive interiors and exteriors that complement home styles in the areas in which they are located . based on the relatively low cost associated with manufactured home ownership , our products have traditionally competed with rental housing 's monthly payment affordability . rental housing activity is reported to have continued to increase in recent years . as a result , tenant housing vacancy rates appear to have declined , causing a corresponding rise in associated rental rates . these rental market factors may cause some renters to become interested buyers of affordable-housing alternatives , including manufactured homes . further , with respect to the general rise in demand for rental housing , we have realized a larger proportion of orders from developers and community owners for new manufactured homes intended for use as rental housing . story_separator_special_tag cash used for investing activities in fiscal 2016 consisted of the net asset purchase of two subsidiaries , in addition to purchases of property , plant and equipment and investments in publicly-traded securities , offset by proceeds from investment sales . net cash provided by financing activities for the year ended march 31 , 2018 was primarily from advances on secured credit facilities , offset by payments on securitized financings . net cash used in financing activities for fiscal 2017 was from payments made on securitized financings , offset by proceeds from secured credit facilities and tax benefits from stock option exercises . net cash used in financing activities for fiscal 2016 was primarily from payments made on securitized financings , offset by proceeds from other secured financing and tax benefits from stock option exercises . financings . as of march 31 , 2018 , there were two classes of securitized bond debt outstanding : one totaling $ 20.5 million with a coupon rate of 5.20 % with a call date in january 2019 , and one totaling $ 22.6 million with a coupon rate of 5.846 % with a call date in july 2019. it is anticipated that we will purchase or refinance these facilities prior to their call dates . countryplace 's securitized debt is subject to provisions that require certain levels of overcollateralization . overcollateralization is equal to countryplace 's equity in the bonds . failure to satisfy these provisions could cause cash , which would normally be distributed to countryplace , to be used for repayment of the principal of the related class a bonds until the required overcollateralization level is reached . during periods when the overcollateralization is below the specified level , cash collections from the securitized loans in excess of servicing fees payable to countryplace and amounts owed to the class a bondholders , trustee and surety , are applied to reduce the class a debt until such time the overcollateralization level reaches the specified level . therefore , failure to meet the overcollateralization requirement could adversely affect the timing of cash flows received by countryplace . however , principal payments of the securitized debt , including accelerated amounts , is payable only from cash collections from the securitized loans and no additional sources of repayment are required or permitted . as of march 31 , 2018 , the 2005-1 and 2007-1 securitized portfolios were within the required overcollateralization level . in addition , we have entered into secured credit facilities with independent third party banks for a total of $ 15.0 million , of which $ 3.2 million is available , with one year draw periods and maturity dates of ten years after the expiration of the draw periods . the proceeds are used to originate and hold consumer home-only loans secured by manufactured homes , which are pledged as collateral to the facilities . the maximum advance for loans under this program is 80 % of the outstanding collateral principal balance , with the company providing the remaining funds . one of the facilities has a floating interest rate during a one year draw period in which we have the option to convert all or a portion of the loan to a fixed rate . during the draw period , the facility bears interest at an annual rate of the average one month libor rates plus 3.50 % . upon conversion , converted balances bear interest at an annual rate of 10 year u.s. treasury bonds plus 2.75 % . we exercised the early conversion option on all outstanding amounts under this facility prior to march 31 , 2018. payments are based on a 20 year amortization schedule with a balloon payment due upon maturity . the other facility has a fixed interest rate of 4.75 % . payments are interest only with a balloon payment due upon maturity . 40 contractual obligations and commitments the following table summarizes our contractual obligations at march 31 , 2018 to make future payments under our debt obligations and lease agreements . this table excludes long-term obligations for which there is no definite commitment period . replace_table_token_13_th ( 1 ) interest is calculated by applying contractual interest rates to month-end balances . the timing of these estimated payments fluctuates based upon various factors , including estimated loan portfolio prepayment and default rates . additionally , the company has contingent commitments at march 31 , 2018 , consisting of contingent repurchase obligations , letters of credit and remaining construction contingent commitments . for additional information related to these contingent obligations , see note 15 to the consolidated financial statements . the company is contingently liable under terms of repurchase agreements with financial institutions providing inventory financing for independent retailers of its products . the maximum amount for which the company was liable under such agreements approximated $ 55.6 million at march 31 , 2018 , without reduction for the resale value of the homes . although the repurchase obligations outstanding have a finite life , these commitments are continually replaced as we continue to sell manufactured homes to retailers under repurchase and other recourse agreements with lending institutions which have provided wholesale floor plan financing to retailers . the company maintains an irrevocable letter of credit of $ 7.0 million to provide assurance that the company will fulfill its reinsurance obligations . this letter of credit is secured by certain of the company 's investments . while the current letters of credit have finite lives , they are subject to renewal based on their underlying requirements . the company has a commitment to fund construction-period mortgages up to $ 16.0 million at march 31 , 2018 . the total loan contract amount , less cumulative advances , represents an off-balance sheet contingent commitment of countryplace to fund future advances . critical accounting policies our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have
| liquidity and capital resources we believe that cash and cash equivalents at march 31 , 2018 , together with cash flow from operations , will be sufficient to fund our operations and provide for growth for the next 12 months and into the foreseeable future . we maintain cash in u.s. treasury money market funds and money market funds , some of which are in excess of federally insured limits . we expect to continue to evaluate potential acquisitions of , or strategic investments in , businesses that are complementary to our company . such transactions may require the use of cash and have other impacts on the company 's liquidity and capital resources in the event of such a transaction . the recent acquisition of lexington homes did not have a significant impact on our liquidity or capital resources . because of the company 's sufficient cash position , the company has not historically sought external sources of liquidity , with the exception of certain credit facilities for our home-only lending programs . however , depending on our operating results and strategic opportunities , we may need to seek additional or alternative sources of financing . there can be no assurance that such financing would be available on satisfactory terms , if at all . if this financing were not available , it could be necessary for us to reevaluate our long-term operating plans to make more efficient use of our existing capital resources .
| 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 believe that cash and cash equivalents at march 31 , 2018 , together with cash flow from operations , will be sufficient to fund our operations and provide for growth for the next 12 months and into the foreseeable future . we maintain cash in u.s. treasury money market funds and money market funds , some of which are in excess of federally insured limits . we expect to continue to evaluate potential acquisitions of , or strategic investments in , businesses that are complementary to our company . such transactions may require the use of cash and have other impacts on the company 's liquidity and capital resources in the event of such a transaction . the recent acquisition of lexington homes did not have a significant impact on our liquidity or capital resources . because of the company 's sufficient cash position , the company has not historically sought external sources of liquidity , with the exception of certain credit facilities for our home-only lending programs . however , depending on our operating results and strategic opportunities , we may need to seek additional or alternative sources of financing . there can be no assurance that such financing would be available on satisfactory terms , if at all . if this financing were not available , it could be necessary for us to reevaluate our long-term operating plans to make more efficient use of our existing capital resources .
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Suspicious Activity Report : company growth from its inception in 1965 , cavco traditionally served affordable housing markets in the southwestern united states principally through manufactured home production . during the period from 1997 to 2000 , cavco was purchased by and became a wholly-owned subsidiary of centex corporation , which operated the company until 2003 , when cavco became a stand-alone publicly-held company traded on the nasdaq global select market under the ticker symbol cvco . 30 beginning in 2007 , the overall housing industry experienced a multi-year decline , which included the manufactured housing industry . since this downturn , cavco strategically expanded its factory operations and related business initiatives primarily through the acquisition of industry competitor operations . this development has enabled the company to more broadly participate in the overall housing industry recovery . in 2009 , the company acquired certain manufactured housing assets and liabilities of fleetwood . the assets purchased included seven operating production facilities as well as idle factories . during fiscal year 2011 , the company acquired certain manufactured housing assets and liabilities of palm harbor homes , inc. , a florida corporation . the assets purchased included five operating production facilities as well as idle factories , 49 operating retail locations , a manufactured housing finance company and a homeowners insurance company . these acquisitions expanded the company 's presence across the united states . in 2015 , the company purchased the business and operating assets of chariot eagle , a florida-based manufacturer of park model rvs and manufactured homes , as well as certain assets and liabilities of fairmont homes . these transactions provided additional home production capabilities , grew the company 's offering of park model rv product lines and further strengthened our market position in the southeast , midwest , the western great plains states and several provinces in canada . on april 3 , 2017 , the company purchased lexington homes , which operates a manufacturing facility in lexington , mississippi . this transaction was accounted for as a business combination and provides additional home production capabilities , further expanding our distribution into new southern markets . the company operates 20 homebuilding facilities located in millersburg and woodburn , oregon ; nampa , idaho ; riverside , california ; phoenix and goodyear , arizona ; austin , fort worth , seguin and waco , texas ; montevideo , minnesota ( 2 ) ; nappanee , indiana ; lafayette , tennessee ; lexington , mississippi ; martinsville and rocky mount , virginia ; douglas , georgia ; plant city and ocala , florida . the majority of the homes produced are sold to and distributed by independently owned retailers located primarily throughout the united states and canada . in addition , our homes are sold through 39 company-owned u.s. retail locations . we regularly review our product offerings throughout the combined organization and strive to improve product designs , production methods and marketing strategies . the supportive market response to the past and recent acquisitions has been encouraging and we believe that these expansions provide positive long-term strategic benefits for the company . we plan to focus on developing synergies among all operations , which continue to have organic growth potential . company outlook we maintain a conservative cost structure in an effort to build added value into our homes . we have placed a consistent focus on developing synergies among all operations . in addition , the company has worked diligently to maintain a solid financial position . our balance sheet strength and position in cash and cash equivalents should help us avoid liquidity problems and enable us to act effectively as market opportunities present themselves . with manufacturing facilities strategically positioned across the united states , we utilize local market research to design homes to meet the demands of our customers . we have the ability to customize floor plans and designs to fulfill specific needs and interests . by offering a full range of homes from entry-level models to large custom homes with the ability to engineer designs in-house , we can accommodate virtually any customer request . in addition to homes built to the federal hud code , we construct modular homes that conform to state and local codes , park model rvs and cabins and light commercial buildings at many of our manufacturing facilities . 31 we employ a concerted effort to identify niche market opportunities where our diverse product lines and custom building capabilities provide us with a competitive advantage . our green building initiatives involve the creation of an energy efficient envelope and higher utilization of renewable materials . these homes provide environmentally-friendly maintenance requirements , typically lower utility costs , specially designed ventilation systems and sustainability . cavco also builds homes designed to use alternative energy sources , such as solar and wind . from bamboo flooring and tankless water heaters to solar-powered homes , our products are diverse and tailored to a wide range of consumer interests . innovation in housing design is a forte of the company and we continue to introduce new models at competitive price points with expressive interiors and exteriors that complement home styles in the areas in which they are located . based on the relatively low cost associated with manufactured home ownership , our products have traditionally competed with rental housing 's monthly payment affordability . rental housing activity is reported to have continued to increase in recent years . as a result , tenant housing vacancy rates appear to have declined , causing a corresponding rise in associated rental rates . these rental market factors may cause some renters to become interested buyers of affordable-housing alternatives , including manufactured homes . further , with respect to the general rise in demand for rental housing , we have realized a larger proportion of orders from developers and community owners for new manufactured homes intended for use as rental housing . story_separator_special_tag cash used for investing activities in fiscal 2016 consisted of the net asset purchase of two subsidiaries , in addition to purchases of property , plant and equipment and investments in publicly-traded securities , offset by proceeds from investment sales . net cash provided by financing activities for the year ended march 31 , 2018 was primarily from advances on secured credit facilities , offset by payments on securitized financings . net cash used in financing activities for fiscal 2017 was from payments made on securitized financings , offset by proceeds from secured credit facilities and tax benefits from stock option exercises . net cash used in financing activities for fiscal 2016 was primarily from payments made on securitized financings , offset by proceeds from other secured financing and tax benefits from stock option exercises . financings . as of march 31 , 2018 , there were two classes of securitized bond debt outstanding : one totaling $ 20.5 million with a coupon rate of 5.20 % with a call date in january 2019 , and one totaling $ 22.6 million with a coupon rate of 5.846 % with a call date in july 2019. it is anticipated that we will purchase or refinance these facilities prior to their call dates . countryplace 's securitized debt is subject to provisions that require certain levels of overcollateralization . overcollateralization is equal to countryplace 's equity in the bonds . failure to satisfy these provisions could cause cash , which would normally be distributed to countryplace , to be used for repayment of the principal of the related class a bonds until the required overcollateralization level is reached . during periods when the overcollateralization is below the specified level , cash collections from the securitized loans in excess of servicing fees payable to countryplace and amounts owed to the class a bondholders , trustee and surety , are applied to reduce the class a debt until such time the overcollateralization level reaches the specified level . therefore , failure to meet the overcollateralization requirement could adversely affect the timing of cash flows received by countryplace . however , principal payments of the securitized debt , including accelerated amounts , is payable only from cash collections from the securitized loans and no additional sources of repayment are required or permitted . as of march 31 , 2018 , the 2005-1 and 2007-1 securitized portfolios were within the required overcollateralization level . in addition , we have entered into secured credit facilities with independent third party banks for a total of $ 15.0 million , of which $ 3.2 million is available , with one year draw periods and maturity dates of ten years after the expiration of the draw periods . the proceeds are used to originate and hold consumer home-only loans secured by manufactured homes , which are pledged as collateral to the facilities . the maximum advance for loans under this program is 80 % of the outstanding collateral principal balance , with the company providing the remaining funds . one of the facilities has a floating interest rate during a one year draw period in which we have the option to convert all or a portion of the loan to a fixed rate . during the draw period , the facility bears interest at an annual rate of the average one month libor rates plus 3.50 % . upon conversion , converted balances bear interest at an annual rate of 10 year u.s. treasury bonds plus 2.75 % . we exercised the early conversion option on all outstanding amounts under this facility prior to march 31 , 2018. payments are based on a 20 year amortization schedule with a balloon payment due upon maturity . the other facility has a fixed interest rate of 4.75 % . payments are interest only with a balloon payment due upon maturity . 40 contractual obligations and commitments the following table summarizes our contractual obligations at march 31 , 2018 to make future payments under our debt obligations and lease agreements . this table excludes long-term obligations for which there is no definite commitment period . replace_table_token_13_th ( 1 ) interest is calculated by applying contractual interest rates to month-end balances . the timing of these estimated payments fluctuates based upon various factors , including estimated loan portfolio prepayment and default rates . additionally , the company has contingent commitments at march 31 , 2018 , consisting of contingent repurchase obligations , letters of credit and remaining construction contingent commitments . for additional information related to these contingent obligations , see note 15 to the consolidated financial statements . the company is contingently liable under terms of repurchase agreements with financial institutions providing inventory financing for independent retailers of its products . the maximum amount for which the company was liable under such agreements approximated $ 55.6 million at march 31 , 2018 , without reduction for the resale value of the homes . although the repurchase obligations outstanding have a finite life , these commitments are continually replaced as we continue to sell manufactured homes to retailers under repurchase and other recourse agreements with lending institutions which have provided wholesale floor plan financing to retailers . the company maintains an irrevocable letter of credit of $ 7.0 million to provide assurance that the company will fulfill its reinsurance obligations . this letter of credit is secured by certain of the company 's investments . while the current letters of credit have finite lives , they are subject to renewal based on their underlying requirements . the company has a commitment to fund construction-period mortgages up to $ 16.0 million at march 31 , 2018 . the total loan contract amount , less cumulative advances , represents an off-balance sheet contingent commitment of countryplace to fund future advances . critical accounting policies our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have
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2,608 | million in 2013 and 2012 , respectively . these charges are included in the repositioning line of our consolidated statements of income . the majority of the charges represent cash obligations associated with severance . during 2012 and 2013 , cash payments of $ 1.4 million and $ 12.6 million , respectively , were made for severance and related costs associated with the verp . as of december 31 , 2013 and december 31 , 2012 , our accrued repositioning charges were zero and $ 11.1 million , respectively . we do not expect to incur any additional charges related to the verp . patent sales on june 18 , 2012 , we announced that certain of our subsidiaries had entered into a definitive agreement to sell approximately 1,700 patents and patent applications , including approximately 160 issued u.s. patents and approximately 40 u.s. patent applications , to intel corporation for $ 375.0 million . the sale agreement involved patents primarily related to 3g , lte and 802.11 technologies . upon completion of the transaction in third quarter 2012 , we recognized $ 375.0 million as patent sales revenue and $ 15.6 million as patent sales expense , which was recorded within the patent administration and licensing line on our consolidated statements of income . included in the patent sales expense was the remaining net book value of the patents sold , as well as commissions and legal and accounting services fees paid in conjunction with the sale . we did not complete any patents sales in 2013 or 2011 . 37 we intend to pursue additional patent sale opportunities as part of our expanded strategy . however , we are unable to predict the timing and magnitude of any such sales due to the unpredictable nature of the sales cycle for such transactions . expiration of apple patent license agreement our patent license agreement with apple inc. ( “ apple ” ) , which covers certain apple iphones ( but does not cover apple ipads or any apple products designed to operate on cdma2000 or lte networks ) , expires at the end of june 2014. because this is a fixed-fee agreement , we recognize the revenue associated with this agreement on a straight-line basis over the life of the agreement . upon expiration of the agreement , apple will become unlicensed as to all products covered under the agreement . patent licensing royalties patent licensing royalties in 2013 of $ 264.2 million decreased 4 % from the prior year . this $ 12.4 million year-over-year decrease in patent licensing royalties was primarily driven by a decrease in fixed-fee revenues offset by an increase in past patent royalties driven by arbitration awards received in 2013. refer to `` results of operations 2013 compared with 2012 `` for further discussion of our 2013 revenue . in 2007 , we entered into a worldwide , non-transferable , non-exclusive , fixed-fee royalty-bearing patent license agreement with apple ( the “ 2007 apple pla ” ) . in 2008 , we entered into a patent license agreement with pegatron ( the “ 2008 pegatron pla ” ) that covers pegatron and its affiliates . under the terms of the 2008 pegatron pla , we granted pegatron a non-exclusive , non-transferable , worldwide royalty-bearing license covering the sale of certain products designed to operate in accordance with 2g and 3g wireless standards . in second quarter and fourth quarter 2013 , we received arbitration awards in separate proceedings we initiated against pegatron and apple , respectively . taken together , these arbitration awards clarified that pegatron owes us royalties on certain products it produces for apple . the pegatron arbitration award confirmed that , to the extent that pegatron manufactures products for apple that are not licensed under the 2007 apple pla , those products are covered by the 2008 pegatron pla and are royalty bearing under that agreement . the apple arbitration award declared that apple ipads , and any apple products designed to operate on cdma2000 or lte networks , are not licensed under the apple pla . as a result of these two arbitration awards , we recognized $ 96.1 million of revenue associated with sales of apple products under the 2008 pegatron pla in 2013 , $ 71.4 million of which was recognized as past patent royalties revenue and $ 24.7 million of which was recognized as per-unit royalties . technology solutions and engineering services in third quarter 2013 , we received an arbitration award in a proceeding initiated in 2012 to determine whether royalties were owed on specific product classes pursuant to our technology solutions agreement with intel mobile communications gmbh ( `` intel `` ) ( the `` intel agreement `` ) . as a result of the award , in third quarter 2013 , we recognized related revenue of $ 51.6 million that had been deferred pending the resolution of the arbitration , resulting in the recognition during 2013 of a total of $ 59.3 million of revenue associated with the intel agreement . usitc proceedings samsung , nokia , huawei and zte 2013 usitc proceeding ( 337-ta-868 ) and related delaware district court proceedings on january 2 , 2013 , the company 's wholly owned subsidiaries interdigital communications , inc. , interdigital technology corporation , ipr licensing , inc. and interdigital holdings , inc. filed a complaint with the usitc against samsung electronics co. , ltd. , samsung electronics america , inc. and samsung telecommunications america ( collectively , `` samsung `` ) , llc , nokia corporation and nokia inc. ( collectively , `` nokia `` ) , huawei technologies co. , ltd. , huawei device usa , inc. and futurewei technologies , inc. d/b/a huawei technologies ( usa ) ( collectively , `` huawei `` ) and zte corporation and zte ( usa ) inc. ( collectively , `` zte `` and together with samsung , nokia and huawei the “ 337-ta-868 respondents ” story_separator_special_tag we may also receive consideration for past patent royalties in connection with the settlement of patent litigation where there was no prior patent license agreement . in each of these cases , we record the consideration as revenue when we have obtained a signed agreement , identified a fixed or determinable price and determined that collectibility is reasonably assured . in prior periods , we have referred to `` past patent royalties `` as `` past sales . `` fixed-fee royalty payments : these are up-front , non-refundable royalty payments that fulfill the licensee 's obligations to us under a patent license agreement for a specified time period or for the term of the agreement for specified products , under certain patents or patent claims , for sales in certain countries , or a combination thereof — in each case for a specified time period ( including for the life of the patents licensed under the agreement ) . we recognize revenues related to fixed-fee royalty payments on a straight-line basis over the effective term of the license . we utilize the straight-line method because we can not reliably predict in which periods , within the term of a license , the licensee will benefit from the use of our patented inventions . prepayments : these are up-front , non-refundable royalty payments towards a licensee 's future obligations to us related to its expected sales of covered products in future periods . our licensees ' obligations to pay royalties typically extend beyond the exhaustion of their prepayment balance . once a licensee exhausts its prepayment balance , we may provide them with the opportunity to make another prepayment toward future sales or it will be required to make current royalty payments . current royalty payments : these are royalty payments covering a licensee 's obligations to us related to its sales of covered products in the current contractual reporting period . 42 licensees that either owe us current royalty payments or have prepayment balances are obligated to provide us with quarterly or semi-annual royalty reports that summarize their sales of covered products and their related royalty obligations to us . we typically receive these royalty reports subsequent to the period in which our licensees ' underlying sales occurred . as a result , it is impractical for us to recognize revenue in the period in which the underlying sales occur , and , in most cases , we recognize revenue in the period in which the royalty report is received and other revenue recognition criteria are met due to the fact that without royalty reports from our licensees , our visibility into our licensees ' sales is very limited . when a licensee is required to gross-up their royalty payment to cover applicable foreign withholding tax requirements , the additional consideration is recorded as revenue . the exhaustion of prepayments and current royalty payments are often calculated based on related per-unit sales of covered products . from time to time , licensees will not report revenues in the proper period , most often due to legal disputes . when this occurs , the timing and comparability of royalty revenue could be affected . in cases where we receive objective , verifiable evidence that a licensee has discontinued sales of products covered under a patent license agreement with us , we recognize any related deferred revenue balance in the period that we receive such evidence . patent sales during 2012 , we expanded our business strategy of monetizing our intellectual property to include the sale of select patent assets . as patent sales executed under this expanded strategy represent a component of our ongoing major or central operations and activities , we will record the related proceeds as revenue . we will recognize the revenue when there is persuasive evidence of a sales arrangement , fees are fixed or determinable , delivery has occurred and collectibility is reasonably assured . these requirements are generally fulfilled upon closing of the patent sale transaction . technology solutions and engineering services technology solutions revenue consists primarily of revenue from software licenses and engineering services . software license revenues are recognized in accordance with the original and revised guidance for software revenue recognition . when the arrangement with a customer includes significant production , modification , or customization of the software , we recognize the related revenue using the percentage-of-completion method in accordance with the accounting guidance for construction-type and certain production-type contracts . under this method , revenue and profit are recognized throughout the term of the contract , based on actual labor costs incurred to date as a percentage of the total estimated labor costs related to the contract . changes in estimates for revenues , costs and profits are recognized in the period in which they are determinable . when such estimates indicate that costs will exceed future revenues and a loss on the contract exists , a provision for the entire loss is recognized at that time . we recognize revenues associated with engineering service arrangements that are outside the scope of the accounting guidance for construction-type and certain production-type contracts on a straight-line basis , unless evidence suggests that the revenue is earned in a different pattern , over the contractual term of the arrangement or the expected period during which those specified services will be performed , whichever is longer . in such cases we often recognize revenue using proportional performance and measure the progress of our performance based on the relationship between incurred labor hours and total estimated labor hours or other measures of progress , if available . our most significant cost has been labor and we believe both labor hours and labor cost provide a measure of the progress of our services . the effect of changes to total estimated contract costs is recognized in the period such changes are determined . when technology solutions agreements include royalty payments , we recognize revenue from the royalty
| cash used in operating activities during 2012 was derived principally from cash receipts of $ 472.7 million from patent sales and patent license and technology solutions agreements . we received $ 380.0 million of patent sales payments , $ 67.3 million of per-unit royalty payments , including past patent royalties , current royalties , and prepayments from existing customers and new licensees , and $ 8.0 million of fixed-fee payments . cash receipts from our technology solutions agreements totaled $ 17.4 million , primarily related to royalties and other license fees associated with our slimchip modem core . these cash receipts and other changes in working capital were partially offset by cash operating expenses ( operating expenses less depreciation of fixed assets , amortization of patents , non-cash cost of patent sales , and non-cash compensation ) , of $ 200.6 48 million , cash payments for short-term and long-term incentive compensation of $ 10.3 million , estimated federal tax payments of $ 110.5 million and cash payments for foreign source withholding taxes of $ 3.6 million . working capital we believe that working capital , adjusted to exclude cash , cash equivalents , short-term investments and current deferred revenue provides additional information about non-cash assets and liabilities that might affect our near-term liquidity . while we believe cash and short-term investments are important measures of our liquidity , the remaining components of our current assets and current liabilities , with the exception of deferred revenue , could affect our near-term liquidity and or cash flow . we have no material obligations associated with our deferred revenue , and the amortization of deferred revenue has no impact on our future liquidity and or cash flow .
| 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 during 2012 was derived principally from cash receipts of $ 472.7 million from patent sales and patent license and technology solutions agreements . we received $ 380.0 million of patent sales payments , $ 67.3 million of per-unit royalty payments , including past patent royalties , current royalties , and prepayments from existing customers and new licensees , and $ 8.0 million of fixed-fee payments . cash receipts from our technology solutions agreements totaled $ 17.4 million , primarily related to royalties and other license fees associated with our slimchip modem core . these cash receipts and other changes in working capital were partially offset by cash operating expenses ( operating expenses less depreciation of fixed assets , amortization of patents , non-cash cost of patent sales , and non-cash compensation ) , of $ 200.6 48 million , cash payments for short-term and long-term incentive compensation of $ 10.3 million , estimated federal tax payments of $ 110.5 million and cash payments for foreign source withholding taxes of $ 3.6 million . working capital we believe that working capital , adjusted to exclude cash , cash equivalents , short-term investments and current deferred revenue provides additional information about non-cash assets and liabilities that might affect our near-term liquidity . while we believe cash and short-term investments are important measures of our liquidity , the remaining components of our current assets and current liabilities , with the exception of deferred revenue , could affect our near-term liquidity and or cash flow . we have no material obligations associated with our deferred revenue , and the amortization of deferred revenue has no impact on our future liquidity and or cash flow .
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Suspicious Activity Report : million in 2013 and 2012 , respectively . these charges are included in the repositioning line of our consolidated statements of income . the majority of the charges represent cash obligations associated with severance . during 2012 and 2013 , cash payments of $ 1.4 million and $ 12.6 million , respectively , were made for severance and related costs associated with the verp . as of december 31 , 2013 and december 31 , 2012 , our accrued repositioning charges were zero and $ 11.1 million , respectively . we do not expect to incur any additional charges related to the verp . patent sales on june 18 , 2012 , we announced that certain of our subsidiaries had entered into a definitive agreement to sell approximately 1,700 patents and patent applications , including approximately 160 issued u.s. patents and approximately 40 u.s. patent applications , to intel corporation for $ 375.0 million . the sale agreement involved patents primarily related to 3g , lte and 802.11 technologies . upon completion of the transaction in third quarter 2012 , we recognized $ 375.0 million as patent sales revenue and $ 15.6 million as patent sales expense , which was recorded within the patent administration and licensing line on our consolidated statements of income . included in the patent sales expense was the remaining net book value of the patents sold , as well as commissions and legal and accounting services fees paid in conjunction with the sale . we did not complete any patents sales in 2013 or 2011 . 37 we intend to pursue additional patent sale opportunities as part of our expanded strategy . however , we are unable to predict the timing and magnitude of any such sales due to the unpredictable nature of the sales cycle for such transactions . expiration of apple patent license agreement our patent license agreement with apple inc. ( “ apple ” ) , which covers certain apple iphones ( but does not cover apple ipads or any apple products designed to operate on cdma2000 or lte networks ) , expires at the end of june 2014. because this is a fixed-fee agreement , we recognize the revenue associated with this agreement on a straight-line basis over the life of the agreement . upon expiration of the agreement , apple will become unlicensed as to all products covered under the agreement . patent licensing royalties patent licensing royalties in 2013 of $ 264.2 million decreased 4 % from the prior year . this $ 12.4 million year-over-year decrease in patent licensing royalties was primarily driven by a decrease in fixed-fee revenues offset by an increase in past patent royalties driven by arbitration awards received in 2013. refer to `` results of operations 2013 compared with 2012 `` for further discussion of our 2013 revenue . in 2007 , we entered into a worldwide , non-transferable , non-exclusive , fixed-fee royalty-bearing patent license agreement with apple ( the “ 2007 apple pla ” ) . in 2008 , we entered into a patent license agreement with pegatron ( the “ 2008 pegatron pla ” ) that covers pegatron and its affiliates . under the terms of the 2008 pegatron pla , we granted pegatron a non-exclusive , non-transferable , worldwide royalty-bearing license covering the sale of certain products designed to operate in accordance with 2g and 3g wireless standards . in second quarter and fourth quarter 2013 , we received arbitration awards in separate proceedings we initiated against pegatron and apple , respectively . taken together , these arbitration awards clarified that pegatron owes us royalties on certain products it produces for apple . the pegatron arbitration award confirmed that , to the extent that pegatron manufactures products for apple that are not licensed under the 2007 apple pla , those products are covered by the 2008 pegatron pla and are royalty bearing under that agreement . the apple arbitration award declared that apple ipads , and any apple products designed to operate on cdma2000 or lte networks , are not licensed under the apple pla . as a result of these two arbitration awards , we recognized $ 96.1 million of revenue associated with sales of apple products under the 2008 pegatron pla in 2013 , $ 71.4 million of which was recognized as past patent royalties revenue and $ 24.7 million of which was recognized as per-unit royalties . technology solutions and engineering services in third quarter 2013 , we received an arbitration award in a proceeding initiated in 2012 to determine whether royalties were owed on specific product classes pursuant to our technology solutions agreement with intel mobile communications gmbh ( `` intel `` ) ( the `` intel agreement `` ) . as a result of the award , in third quarter 2013 , we recognized related revenue of $ 51.6 million that had been deferred pending the resolution of the arbitration , resulting in the recognition during 2013 of a total of $ 59.3 million of revenue associated with the intel agreement . usitc proceedings samsung , nokia , huawei and zte 2013 usitc proceeding ( 337-ta-868 ) and related delaware district court proceedings on january 2 , 2013 , the company 's wholly owned subsidiaries interdigital communications , inc. , interdigital technology corporation , ipr licensing , inc. and interdigital holdings , inc. filed a complaint with the usitc against samsung electronics co. , ltd. , samsung electronics america , inc. and samsung telecommunications america ( collectively , `` samsung `` ) , llc , nokia corporation and nokia inc. ( collectively , `` nokia `` ) , huawei technologies co. , ltd. , huawei device usa , inc. and futurewei technologies , inc. d/b/a huawei technologies ( usa ) ( collectively , `` huawei `` ) and zte corporation and zte ( usa ) inc. ( collectively , `` zte `` and together with samsung , nokia and huawei the “ 337-ta-868 respondents ” story_separator_special_tag we may also receive consideration for past patent royalties in connection with the settlement of patent litigation where there was no prior patent license agreement . in each of these cases , we record the consideration as revenue when we have obtained a signed agreement , identified a fixed or determinable price and determined that collectibility is reasonably assured . in prior periods , we have referred to `` past patent royalties `` as `` past sales . `` fixed-fee royalty payments : these are up-front , non-refundable royalty payments that fulfill the licensee 's obligations to us under a patent license agreement for a specified time period or for the term of the agreement for specified products , under certain patents or patent claims , for sales in certain countries , or a combination thereof — in each case for a specified time period ( including for the life of the patents licensed under the agreement ) . we recognize revenues related to fixed-fee royalty payments on a straight-line basis over the effective term of the license . we utilize the straight-line method because we can not reliably predict in which periods , within the term of a license , the licensee will benefit from the use of our patented inventions . prepayments : these are up-front , non-refundable royalty payments towards a licensee 's future obligations to us related to its expected sales of covered products in future periods . our licensees ' obligations to pay royalties typically extend beyond the exhaustion of their prepayment balance . once a licensee exhausts its prepayment balance , we may provide them with the opportunity to make another prepayment toward future sales or it will be required to make current royalty payments . current royalty payments : these are royalty payments covering a licensee 's obligations to us related to its sales of covered products in the current contractual reporting period . 42 licensees that either owe us current royalty payments or have prepayment balances are obligated to provide us with quarterly or semi-annual royalty reports that summarize their sales of covered products and their related royalty obligations to us . we typically receive these royalty reports subsequent to the period in which our licensees ' underlying sales occurred . as a result , it is impractical for us to recognize revenue in the period in which the underlying sales occur , and , in most cases , we recognize revenue in the period in which the royalty report is received and other revenue recognition criteria are met due to the fact that without royalty reports from our licensees , our visibility into our licensees ' sales is very limited . when a licensee is required to gross-up their royalty payment to cover applicable foreign withholding tax requirements , the additional consideration is recorded as revenue . the exhaustion of prepayments and current royalty payments are often calculated based on related per-unit sales of covered products . from time to time , licensees will not report revenues in the proper period , most often due to legal disputes . when this occurs , the timing and comparability of royalty revenue could be affected . in cases where we receive objective , verifiable evidence that a licensee has discontinued sales of products covered under a patent license agreement with us , we recognize any related deferred revenue balance in the period that we receive such evidence . patent sales during 2012 , we expanded our business strategy of monetizing our intellectual property to include the sale of select patent assets . as patent sales executed under this expanded strategy represent a component of our ongoing major or central operations and activities , we will record the related proceeds as revenue . we will recognize the revenue when there is persuasive evidence of a sales arrangement , fees are fixed or determinable , delivery has occurred and collectibility is reasonably assured . these requirements are generally fulfilled upon closing of the patent sale transaction . technology solutions and engineering services technology solutions revenue consists primarily of revenue from software licenses and engineering services . software license revenues are recognized in accordance with the original and revised guidance for software revenue recognition . when the arrangement with a customer includes significant production , modification , or customization of the software , we recognize the related revenue using the percentage-of-completion method in accordance with the accounting guidance for construction-type and certain production-type contracts . under this method , revenue and profit are recognized throughout the term of the contract , based on actual labor costs incurred to date as a percentage of the total estimated labor costs related to the contract . changes in estimates for revenues , costs and profits are recognized in the period in which they are determinable . when such estimates indicate that costs will exceed future revenues and a loss on the contract exists , a provision for the entire loss is recognized at that time . we recognize revenues associated with engineering service arrangements that are outside the scope of the accounting guidance for construction-type and certain production-type contracts on a straight-line basis , unless evidence suggests that the revenue is earned in a different pattern , over the contractual term of the arrangement or the expected period during which those specified services will be performed , whichever is longer . in such cases we often recognize revenue using proportional performance and measure the progress of our performance based on the relationship between incurred labor hours and total estimated labor hours or other measures of progress , if available . our most significant cost has been labor and we believe both labor hours and labor cost provide a measure of the progress of our services . the effect of changes to total estimated contract costs is recognized in the period such changes are determined . when technology solutions agreements include royalty payments , we recognize revenue from the royalty
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2,609 | 30 we expect significant cost increases for raw materials in the market place during 2012. however , we are currently locked into our supply and prices for a majority of our most significant commodities ( excluding , among others , maple syrup ) through 2012 at a cost increase of less than 2.0 % of projected 2012 cost of goods sold . during fiscal 2010 and 2011 , our sales price increases and our cost saving measures more than offset our cost increases . to the extent we are unable to avoid or offset present and future cost increases by locking in our costs , implementing cost saving measures or increasing prices to our customers , our operating results could be materially adversely affected . in addition , should input costs begin to decline , customers may look for price reductions in situations where we have locked into purchases at higher costs . consolidation in the retail trade and consequent inventory reductions : as the retail grocery trade continues to consolidate and our retail customers grow larger and become more sophisticated , our retail customers may demand lower pricing and increased promotional programs . these customers are also reducing their inventories and increasing their emphasis on private label products . changing customer preferences : consumers in the market categories in which we compete frequently change their taste preferences , dietary habits and product packaging preferences . consumer concern regarding food safety , quality and health : the food industry is subject to consumer concerns regarding the safety and quality of certain food products . if consumers in our principal markets lose confidence in the safety and quality of our food products , even as a result of a product liability claim or a product recall by a food industry competitor , our business could be adversely affected . fluctuations in currency exchange rates : we purchase the majority of our maple syrup requirements from suppliers located in québec , canada . any weakening of the u.s. dollar against the canadian dollar , could significantly increase our costs relating to the production of our maple syrup products to the extent we have not purchased canadian dollars in advance of any such weakening of the u.s. dollar . to confront these challenges , we continue to take steps to build the value of our brands , to improve our existing portfolio of products with new product and marketing initiatives , to reduce costs through improved productivity , to address consumer concerns about food safety , quality and health and to favorably manage currency fluctuations . critical accounting policies ; use of estimates the preparation of financial statements in accordance with accounting principles generally accepted in the united states requires our management to make a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . some of the more significant estimates and assumptions made by management involve trade and consumer promotion expenses ; allowances for excess , obsolete and unsaleable inventories ; pension benefits ; acquisition accounting allocations ; the recoverability of goodwill , other intangible assets , property , plant and equipment , and deferred tax assets ; the determination of the useful life of customer relationship intangibles ; and the accounting for share-based compensation expense . actual results could differ significantly from these estimates and assumptions . our significant accounting policies are described more fully in note 2 to our consolidated financial statements included elsewhere in this report . we believe the following critical accounting policies involve the most significant judgments and estimates used in the preparation of our consolidated financial statements . 31 trade and consumer promotion expenses we offer various sales incentive programs to customers and consumers , such as price discounts , in-store display incentives , slotting fees and coupons . the recognition of expense for these programs involves the use of judgment related to performance and redemption estimates . estimates are made based on historical experience and other factors . actual expenses may differ if the level of redemption rates and performance vary from our estimates . inventories inventories are stated at the lower of cost or market . cost is determined using the first in , first out and average cost methods . inventories have been reduced by an allowance for excess , obsolete and unsaleable inventories . the allowance is an estimate based on our management 's review of inventories on hand compared to estimated future usage and sales . long-lived assets long-lived assets , such as property , plant and equipment , and intangibles with estimated useful lives are depreciated or amortized over their respective estimated useful lives to their estimated residual values , and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated undiscounted future cash flows , an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset . recoverability of assets held for sale is measured by a comparison of the carrying amount of an asset or asset group to their fair value less estimated costs to sell . estimating future cash flows and calculating fair value of assets requires significant estimates and assumptions by management . goodwill and other intangible assets goodwill and indefinite-lived intangible assets ( trademarks ) are tested for impairment at least annually and whenever events or circumstances occur indicating that goodwill or indefinite-lived intangibles might be impaired . story_separator_special_tag for fiscal 2011 , net cash provided by financing activities includes $ 372.0 million of net proceeds from borrowings under our credit agreement ( net of $ 25.0 million of borrowings and repayments of revolving loans ) and $ 1.0 million of excess tax benefits from share-based compensation . net cash provided by financing activities was reduced by $ 130.0 million due to the repayment of all term loan borrowings under our prior credit agreement , $ 38.2 million of dividend payments , $ 16.3 million for the payment of deferred financing costs , $ 3.7 million for the repurchase of common stock and $ 2.2 million for the payment of tax withholding on behalf of employees for net share settlement of share-based compensation . for fiscal 2010 , net cash used in financing activities includes $ 320.3 million in payments for the repurchase and redemption of $ 69.5 million principal amount of our 12 % senior subordinated notes and $ 240.0 million principal amount of our 8 % senior notes , $ 32.3 million of dividend payments , $ 8.2 million of deferred financing costs and $ 1.5 million for the payment of tax withholding on behalf of employees for net share settlement of share-based compensation . net cash used in financing activities were reduced by net proceeds of $ 347.4 million from the issuance of our 7.625 % senior notes and $ 0.3 million of excess tax benefits from share-based compensation . for fiscal 2009 , net cash used in financing activities includes $ 102.0 million dollars for the repurchase and redemption of $ 96.3 million principal amount of senior subordinated notes , $ 2.3 million 38 for common stock repurchases , $ 26.4 million for dividend payments and $ 0.7 million of deferred financing costs , partially offset by net proceeds of $ 86.6 million from our public offering of common stock . cash income tax payments . based on a number of factors , including our trademark , goodwill and other intangible assets amortization for tax purposes from our prior acquisitions , we realized a significant reduction in cash taxes in fiscal 2011 , 2010 and 2009 as compared to our tax expense for financial reporting purposes . we believe that we will realize a benefit to our cash taxes payable from amortization of our trademarks , goodwill and other intangible assets for the taxable years 2012 through 2026. if there is a change in u.s. federal tax policy that reduces any of these available deductions or results in an increase in our corporate tax rate , our cash taxes payable may increase further , which could significantly reduce our future cash and impact our ability to make interest and dividend payments . dividend policy for a discussion of our dividend policy , see the information set forth under the heading `` dividend policy `` in part ii , item 5 of this report . acquisitions our liquidity and capital resources have been significantly impacted by acquisitions and may be impacted in the foreseeable future by additional acquisitions . as discussed elsewhere in this report , as part of our growth strategy we plan to expand our brand portfolio with disciplined acquisitions of complementary brands . we have historically financed acquisitions with borrowings and cash flows from operating activities . as a result , our interest expense has in the past increased as a result of additional indebtedness we have incurred in connection with acquisitions , including in connection with the culver specialty brands acquisition , and will increase with any additional indebtedness we may incur to finance any future acquisitions . the impact of future acquisitions , whether financed with additional indebtedness or otherwise , may have a material impact on our liquidity . debt senior secured credit agreement . on november 30 , 2011 , in connection with the culver specialty brands acquisition , we entered into a new senior secured credit agreement , which includes a $ 200.0 million revolving credit facility , $ 150.0 million of tranche a term loans and $ 225.0 million of tranche b term loans . the proceeds of the term loan borrowings , $ 25.0 million of revolving loans , and cash on hand were used to repay all $ 130.0 million of outstanding borrowings under our prior credit agreement , fund the acquisition purchase price and pay related transaction fees and expenses . at december 31 , 2011 , all revolving loans had been repaid and the available borrowing capacity under our revolving credit facility , net of outstanding letters of credit , was $ 199.5 million . the credit agreement is secured by substantially all of our and our domestic subsidiaries ' assets except our and our domestic subsidiaries ' real property . the tranche a term loans are subject to amortization at the following rates : 5 % in the first year , 10 % in the second year and 15 % in each of the third and fourth years . the balance of all borrowings under the tranche a term loan facility are due and payable at maturity on november 30 , 2016. the tranche b term loans are subject to amortization at the rate of 1 % annually with the balance due at maturity on november 30 , 2018. the revolving credit facility matures on november 30 , 2016. interest under the revolving credit facility , including any outstanding letters of credit , and under the tranche a term loan facility , is determined based on alternative rates that we may choose in accordance with the credit agreement , including a base rate per annum plus an applicable margin ranging from 1.50 % to 2.00 % , and libor plus an applicable margin ranging from 2.50 % to 3.00 % , in 39 each case depending on our consolidated leverage ratio . interest under the tranche b term loan facility is determined based on alternative rates that we may choose in accordance
| loss on extinguishment of debt . loss on extinguishment of debt includes costs relating to the retirement of indebtedness , including any repurchase premium and write-off of deferred debt financing costs . fiscal 2011 compared to fiscal 2010 net sales . net sales increased $ 30.5 million or 6.0 % to $ 543.9 million for fiscal 2011 from $ 513.3 million for fiscal 2010. the increase was attributable to unit volume and sales price increases of $ 29.6 million and $ 1.7 million , respectively , offset by an increase in coupon and slotting expenses of $ 0.8 million . net sales of our don pepino and sclafani brands , which we acquired in late november 2010 , contributed $ 12.5 million to the overall increase and net sales of the culver specialty brands , which we acquired at the end of november 2011 , contributed $ 6.5 million to the overall increase . net sales of our ortega , maple grove farms of vermont , cream of wheat , las palmas and underwood products increased by $ 5.1 million , $ 5.0 million , $ 3.1 million , $ 2.5 million and $ 0.7 million or 4.0 % , 7.2 % , 4.8 % , 8.0 % and 3.0 % , respectively . these increases were offset by a reduction in net sales of b & g , joan of arc , trappey 's , grandma 's and emeril 's products of $ 1.2 million , $ 0.8 million , $ 0.7 million , 0.7 million and $ 0.7 million or 3.4 % , 6.6 % , 4.4 % , 5.0 % and 3.6 % , respectively . in the aggregate , net sales for all other brands decreased $ 0.8 million or 0.6 % . gross profit . gross profit increased $ 10.1 million or 6.0 % to $ 177.8 million in fiscal 2011 from $ 167.7 million in fiscal 2010. gross profit expressed as a percentage of net sales remained consistent at 32.7 % in fiscal 2011 and fiscal 2010 , attributable to pricing gains of $ 1.7 million and a sales mix shift to higher margin products offset by higher input and distribution costs . selling , general and administrative expenses .
| 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.
```loss on extinguishment of debt . loss on extinguishment of debt includes costs relating to the retirement of indebtedness , including any repurchase premium and write-off of deferred debt financing costs . fiscal 2011 compared to fiscal 2010 net sales . net sales increased $ 30.5 million or 6.0 % to $ 543.9 million for fiscal 2011 from $ 513.3 million for fiscal 2010. the increase was attributable to unit volume and sales price increases of $ 29.6 million and $ 1.7 million , respectively , offset by an increase in coupon and slotting expenses of $ 0.8 million . net sales of our don pepino and sclafani brands , which we acquired in late november 2010 , contributed $ 12.5 million to the overall increase and net sales of the culver specialty brands , which we acquired at the end of november 2011 , contributed $ 6.5 million to the overall increase . net sales of our ortega , maple grove farms of vermont , cream of wheat , las palmas and underwood products increased by $ 5.1 million , $ 5.0 million , $ 3.1 million , $ 2.5 million and $ 0.7 million or 4.0 % , 7.2 % , 4.8 % , 8.0 % and 3.0 % , respectively . these increases were offset by a reduction in net sales of b & g , joan of arc , trappey 's , grandma 's and emeril 's products of $ 1.2 million , $ 0.8 million , $ 0.7 million , 0.7 million and $ 0.7 million or 3.4 % , 6.6 % , 4.4 % , 5.0 % and 3.6 % , respectively . in the aggregate , net sales for all other brands decreased $ 0.8 million or 0.6 % . gross profit . gross profit increased $ 10.1 million or 6.0 % to $ 177.8 million in fiscal 2011 from $ 167.7 million in fiscal 2010. gross profit expressed as a percentage of net sales remained consistent at 32.7 % in fiscal 2011 and fiscal 2010 , attributable to pricing gains of $ 1.7 million and a sales mix shift to higher margin products offset by higher input and distribution costs . selling , general and administrative expenses .
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Suspicious Activity Report : 30 we expect significant cost increases for raw materials in the market place during 2012. however , we are currently locked into our supply and prices for a majority of our most significant commodities ( excluding , among others , maple syrup ) through 2012 at a cost increase of less than 2.0 % of projected 2012 cost of goods sold . during fiscal 2010 and 2011 , our sales price increases and our cost saving measures more than offset our cost increases . to the extent we are unable to avoid or offset present and future cost increases by locking in our costs , implementing cost saving measures or increasing prices to our customers , our operating results could be materially adversely affected . in addition , should input costs begin to decline , customers may look for price reductions in situations where we have locked into purchases at higher costs . consolidation in the retail trade and consequent inventory reductions : as the retail grocery trade continues to consolidate and our retail customers grow larger and become more sophisticated , our retail customers may demand lower pricing and increased promotional programs . these customers are also reducing their inventories and increasing their emphasis on private label products . changing customer preferences : consumers in the market categories in which we compete frequently change their taste preferences , dietary habits and product packaging preferences . consumer concern regarding food safety , quality and health : the food industry is subject to consumer concerns regarding the safety and quality of certain food products . if consumers in our principal markets lose confidence in the safety and quality of our food products , even as a result of a product liability claim or a product recall by a food industry competitor , our business could be adversely affected . fluctuations in currency exchange rates : we purchase the majority of our maple syrup requirements from suppliers located in québec , canada . any weakening of the u.s. dollar against the canadian dollar , could significantly increase our costs relating to the production of our maple syrup products to the extent we have not purchased canadian dollars in advance of any such weakening of the u.s. dollar . to confront these challenges , we continue to take steps to build the value of our brands , to improve our existing portfolio of products with new product and marketing initiatives , to reduce costs through improved productivity , to address consumer concerns about food safety , quality and health and to favorably manage currency fluctuations . critical accounting policies ; use of estimates the preparation of financial statements in accordance with accounting principles generally accepted in the united states requires our management to make a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . some of the more significant estimates and assumptions made by management involve trade and consumer promotion expenses ; allowances for excess , obsolete and unsaleable inventories ; pension benefits ; acquisition accounting allocations ; the recoverability of goodwill , other intangible assets , property , plant and equipment , and deferred tax assets ; the determination of the useful life of customer relationship intangibles ; and the accounting for share-based compensation expense . actual results could differ significantly from these estimates and assumptions . our significant accounting policies are described more fully in note 2 to our consolidated financial statements included elsewhere in this report . we believe the following critical accounting policies involve the most significant judgments and estimates used in the preparation of our consolidated financial statements . 31 trade and consumer promotion expenses we offer various sales incentive programs to customers and consumers , such as price discounts , in-store display incentives , slotting fees and coupons . the recognition of expense for these programs involves the use of judgment related to performance and redemption estimates . estimates are made based on historical experience and other factors . actual expenses may differ if the level of redemption rates and performance vary from our estimates . inventories inventories are stated at the lower of cost or market . cost is determined using the first in , first out and average cost methods . inventories have been reduced by an allowance for excess , obsolete and unsaleable inventories . the allowance is an estimate based on our management 's review of inventories on hand compared to estimated future usage and sales . long-lived assets long-lived assets , such as property , plant and equipment , and intangibles with estimated useful lives are depreciated or amortized over their respective estimated useful lives to their estimated residual values , and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated undiscounted future cash flows , an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset . recoverability of assets held for sale is measured by a comparison of the carrying amount of an asset or asset group to their fair value less estimated costs to sell . estimating future cash flows and calculating fair value of assets requires significant estimates and assumptions by management . goodwill and other intangible assets goodwill and indefinite-lived intangible assets ( trademarks ) are tested for impairment at least annually and whenever events or circumstances occur indicating that goodwill or indefinite-lived intangibles might be impaired . story_separator_special_tag for fiscal 2011 , net cash provided by financing activities includes $ 372.0 million of net proceeds from borrowings under our credit agreement ( net of $ 25.0 million of borrowings and repayments of revolving loans ) and $ 1.0 million of excess tax benefits from share-based compensation . net cash provided by financing activities was reduced by $ 130.0 million due to the repayment of all term loan borrowings under our prior credit agreement , $ 38.2 million of dividend payments , $ 16.3 million for the payment of deferred financing costs , $ 3.7 million for the repurchase of common stock and $ 2.2 million for the payment of tax withholding on behalf of employees for net share settlement of share-based compensation . for fiscal 2010 , net cash used in financing activities includes $ 320.3 million in payments for the repurchase and redemption of $ 69.5 million principal amount of our 12 % senior subordinated notes and $ 240.0 million principal amount of our 8 % senior notes , $ 32.3 million of dividend payments , $ 8.2 million of deferred financing costs and $ 1.5 million for the payment of tax withholding on behalf of employees for net share settlement of share-based compensation . net cash used in financing activities were reduced by net proceeds of $ 347.4 million from the issuance of our 7.625 % senior notes and $ 0.3 million of excess tax benefits from share-based compensation . for fiscal 2009 , net cash used in financing activities includes $ 102.0 million dollars for the repurchase and redemption of $ 96.3 million principal amount of senior subordinated notes , $ 2.3 million 38 for common stock repurchases , $ 26.4 million for dividend payments and $ 0.7 million of deferred financing costs , partially offset by net proceeds of $ 86.6 million from our public offering of common stock . cash income tax payments . based on a number of factors , including our trademark , goodwill and other intangible assets amortization for tax purposes from our prior acquisitions , we realized a significant reduction in cash taxes in fiscal 2011 , 2010 and 2009 as compared to our tax expense for financial reporting purposes . we believe that we will realize a benefit to our cash taxes payable from amortization of our trademarks , goodwill and other intangible assets for the taxable years 2012 through 2026. if there is a change in u.s. federal tax policy that reduces any of these available deductions or results in an increase in our corporate tax rate , our cash taxes payable may increase further , which could significantly reduce our future cash and impact our ability to make interest and dividend payments . dividend policy for a discussion of our dividend policy , see the information set forth under the heading `` dividend policy `` in part ii , item 5 of this report . acquisitions our liquidity and capital resources have been significantly impacted by acquisitions and may be impacted in the foreseeable future by additional acquisitions . as discussed elsewhere in this report , as part of our growth strategy we plan to expand our brand portfolio with disciplined acquisitions of complementary brands . we have historically financed acquisitions with borrowings and cash flows from operating activities . as a result , our interest expense has in the past increased as a result of additional indebtedness we have incurred in connection with acquisitions , including in connection with the culver specialty brands acquisition , and will increase with any additional indebtedness we may incur to finance any future acquisitions . the impact of future acquisitions , whether financed with additional indebtedness or otherwise , may have a material impact on our liquidity . debt senior secured credit agreement . on november 30 , 2011 , in connection with the culver specialty brands acquisition , we entered into a new senior secured credit agreement , which includes a $ 200.0 million revolving credit facility , $ 150.0 million of tranche a term loans and $ 225.0 million of tranche b term loans . the proceeds of the term loan borrowings , $ 25.0 million of revolving loans , and cash on hand were used to repay all $ 130.0 million of outstanding borrowings under our prior credit agreement , fund the acquisition purchase price and pay related transaction fees and expenses . at december 31 , 2011 , all revolving loans had been repaid and the available borrowing capacity under our revolving credit facility , net of outstanding letters of credit , was $ 199.5 million . the credit agreement is secured by substantially all of our and our domestic subsidiaries ' assets except our and our domestic subsidiaries ' real property . the tranche a term loans are subject to amortization at the following rates : 5 % in the first year , 10 % in the second year and 15 % in each of the third and fourth years . the balance of all borrowings under the tranche a term loan facility are due and payable at maturity on november 30 , 2016. the tranche b term loans are subject to amortization at the rate of 1 % annually with the balance due at maturity on november 30 , 2018. the revolving credit facility matures on november 30 , 2016. interest under the revolving credit facility , including any outstanding letters of credit , and under the tranche a term loan facility , is determined based on alternative rates that we may choose in accordance with the credit agreement , including a base rate per annum plus an applicable margin ranging from 1.50 % to 2.00 % , and libor plus an applicable margin ranging from 2.50 % to 3.00 % , in 39 each case depending on our consolidated leverage ratio . interest under the tranche b term loan facility is determined based on alternative rates that we may choose in accordance
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2,610 | in the fourth quarter of fiscal 2011 , we completed the acquisition of substantially all of the assets of vertex , for approximately $ 27.2 million . in addition to the manufacture of sodium hypochlorite bleaches , vertex distributes and provides terminal services for bulk liquid inorganic chemicals , and contract and private label packaging for household chemicals . we believe the acquisition strengthens our market position in the midwest . operating results of vertex are included in our consolidated results of operations from the date of acquisition in this annual report on form 10-k as part of our industrial segment . see note 2 to the consolidated financial statements for further information . in fiscal 2010 , we completed two new facilities to expand our ability to service our customers and facilitate growth within our industrial group . our facility in centralia , illinois began operations in july 2009 and primarily serves our food-grade and agriculture products businesses . we also opened a facility in minneapolis , minnesota , to handle bulk chemicals sold to pharmaceutical manufacturers . we opened one new branch for our water treatment group in fiscal 2012 and two new branches in fiscal 2011 and expect to continue to invest in existing and new branches to expand our water treatment group 's geographic coverage . the cost of these branch expansions is not expected to be material . in addition , we have selectively added route sales personnel to certain existing water treatment group branch offices to spur growth within our existing geographic coverage area . in february 2009 , we agreed to sell our inventory and entered into a marketing agreement regarding the business of our pharmaceutical segment , which provided pharmaceutical chemicals to retail pharmacies and small-scale pharmaceutical manufacturers . the transaction closed in may 2009 and we have no significant obligations to fulfill under the agreement . the results of the pharmaceutical segment have been reported as discontinued operations in our consolidated financial statements for all periods presented in this annual report on form 10-k. our financial performance in fiscal 2012 was highlighted by : sales from continuing operations of $ 343.8 million , a 15.5 % increase from fiscal 2011 ; gross profit from continuing operations of $ 65.9 million or 19.2 % of sales , a $ 4.0 million increase in gross profit dollars from fiscal 2011 ; 16 net cash provided by operating activities of $ 33.7 million ; and cash and cash equivalents and investments available for sale were $ 45.9 million as of the end of fiscal 2012. we seek to maintain relatively constant gross profit dollars on each of our products as the cost of our raw materials increase or decrease . since we expect that we will continue to experience fluctuations in our raw material costs and resulting prices in the future , we believe that gross profit dollars is the best measure of our profitability from the sale of our products . if we maintain relatively stable gross profit dollars on each of our products , our reported gross profit percentage will decrease when the cost of the product increases and will increase when the cost of the product decreases . we use the last in , first out ( lifo ) method of valuing the vast majority of hawkins ' inventory , which causes the most recent product costs to be recognized in our income statement . the valuation of lifo inventory for interim periods is based on our estimates of fiscal year-end inventory levels and costs . the lifo inventory valuation method and the resulting cost of sales are consistent with our business practices of pricing to current commodity chemical raw material prices . our lifo reserve increased by $ 1.6 million in fiscal 2012 primarily due to volumes and mix of commodity chemicals in inventory at the end of the year . the increased reserve decreased our reported gross profit for the year . our lifo reserve increased by $ 3.9 million in fiscal 2011 due to rising costs and higher inventory volumes on hand at year-end maintained to meet customer requirements during an anticipated flood . this increase in the reserve decreased our reported gross profit in fiscal 2011. results of operations the following table sets forth certain items from our statement of income as a percentage of sales from period to period : replace_table_token_5_th fiscal 2012 compared to fiscal 2011 sales sales increased $ 46.2 million , or 15.5 % , to $ 343.8 million for fiscal 2012 , as compared to sales of $ 297.6 million for fiscal 2011. vertex , which we acquired during the fourth quarter of 2011 , contributed $ 32.9 million of the increase in sales for fiscal 2012. we also experienced increased sales as a result of higher selling prices due to increased commodity chemical prices . sales of bulk chemicals , including caustic soda , were approximately 23 % of sales compared to approximately 20 % in the previous year . the increase in the bulk 17 chemical sales percentage for fiscal 2012 was primarily attributable to a full year of vertex sales volumes compared to a partial year of sales volumes in fiscal 2011. industrial segment . industrial segment sales increased $ 42.7 million , or 20.5 % , to $ 251.4 million for fiscal 2012. vertex contributed $ 32.9 million of the increase in sales for fiscal 2012. we experienced higher selling prices due to increased commodity chemical prices . water treatment segment . story_separator_special_tag gross profit gross profit was $ 61.9 million , or 20.8 % of sales , for fiscal 2011 , as compared to $ 64.4 million , or 25.1 % of sales , for fiscal 2010. the lifo method of valuing inventory negatively impacted gross profit by $ 3.9 million for fiscal 2011 due to increased raw material costs and higher volumes of inventory at year end maintained to meet customer requirements during an anticipated flood . in the prior year , lifo positively impacted gross profit by $ 12.6 million due to decreases in certain raw material costs during that period . industrial segment . gross profit for the industrial segment was $ 36.9 million , or 17.7 % of sales , for fiscal 2011 , as compared to $ 37.3 million , or 21.3 % of sales , for fiscal 2010. competitive pricing pressures and increased operational overhead costs contributed to the lower gross profit levels in the industrial segment . this group incurred $ 0.3 million of overhead costs associated with flood control efforts in the fourth quarter of fiscal 2011. these reductions in gross profit were partially offset by higher sales of higher margin manufactured and specialty chemical products . the lifo method of valuing inventory negatively impacted gross profit in this segment by $ 2.9 million in fiscal 2011 , as compared to positively impacting gross profit by $ 10.2 million in fiscal 2010. water treatment segment . gross profit for the water treatment segment was $ 25.0 million , or 28.1 % of sales , for fiscal 2011 , as compared to $ 27.2 million , or 33.0 % of sales , for fiscal 2010. the decrease in gross profit dollars was primarily due to competitive pricing pressures and increased operational overhead costs , partially offset by increased sales . additionally , the lifo method of valuing inventory negatively impacted gross profit in this segment by $ 1.1 million in fiscal 2011 , as compared to positively impacting gross profit by $ 2.4 million in fiscal 2010 . 19 selling , general and administrative expenses selling , general and administrative ( sg & a ) expenses increased $ 4.3 million to $ 29.9 million , or 10.1 % of sales , for fiscal 2011 , as compared to $ 25.6 million , or 10.0 % of sales , for fiscal 2010. we incurred approximately $ 1.0 million in additional expense as a result of the death of john hawkins , our former chief executive officer , through payments due under his retention bonus agreement and the accelerated vesting of his previously granted performance-based restricted stock units and stock options . other items driving the increased expenses include acquisition costs of approximately $ 0.7 million relating to the vertex acquisition in addition to higher equity incentive plan costs and litigation defense costs . operating income operating income was $ 32.0 million , or 10.7 % of sales , for fiscal 2011 , as compared to $ 38.8 million , or 15.1 % of sales , for fiscal 2010. the decrease in operating income was the result of reduced gross profits and increased sg & a expenses . both reporting segments saw a decline in their gross profit dollars due to competitive pricing pressures and higher operational overhead costs . both segments were also negatively impacted by the lifo method of valuing inventory in fiscal 2011. investment income investment income was $ 0.3 million for fiscal 2011 and fiscal 2010. provision for income taxes our effective income tax rate was 37.1 % for fiscal 2011 compared to 39.3 % for fiscal 2010. the lower effective tax rate for fiscal 2011 was primarily due to increased permanent tax differences , lower taxable income levels and somewhat lower effective state tax rates . story_separator_special_tag future cash flows requires us to make significant estimates regarding future revenues and expenses , projected capital expenditures , changes in working capital and the appropriate discount rate . the projections also take into account several factors including current and estimated economic trends and outlook , costs of raw materials , consideration of our market capitalization in comparison to the estimated fair values of our reporting units determined using discounted cash flow analyses and other factors which are beyond our control . we completed step one of our annual goodwill impairment evaluation during the fourth quarter of fiscal 2012 and determined that our reporting units ' fair value substantially exceeded their carrying value . accordingly , step two of the impairment analysis was not required . we also completed an impairment test of infinite-life intangible assets during the fourth quarter , in which the fair value exceeded the carrying amount . additionally , no impairment charges were required for fiscal 2011 or 2010. impairment of long-lived assets we review the recoverability of long-lived assets to be held and used , such as property , plant and equipment and intangible assets subject to amortization , when events or changes in circumstances occur that indicate the carrying value of the asset or asset group may not be recoverable , such as prolonged industry downturn or significant reductions in projected future cash flows . the assessment of possible impairment is based on our ability to recover the carrying value of the asset or asset group from the expected future pre-tax cash flows ( undiscounted ) of the related operations . if these cash flows are less than the carrying value of such asset or asset group , an impairment is recognized equal to the amount by which the carrying value exceeds the fair value of the long-lived assets . the measurement of impairment requires us to estimate future cash flows and the fair value of long-lived assets . significant judgments and assumptions are required in the forecast of future operating results used in the preparation of the estimated future cash flows . we periodically review the appropriateness of the estimated useful lives of our long-lived assets .
| liquidity and capital resources cash provided by operating activities in fiscal 2012 was $ 33.7 million compared to $ 28.5 million in fiscal 2011 and $ 38.8 million in fiscal 2010. the increase in cash provided by operating activities in fiscal 2012 from fiscal 2011 was primarily due to increases in net income and depreciation and amortization . higher working capital balances used $ 1.9 million in cash in fiscal 2012 compared to cash used of $ 0.4 million for working capital in fiscal 2011. the net increase in working capital balances in fiscal 2012 was primarily due to increasing commodity chemical costs and the resulting increase in selling prices , which resulted in an increase in trade receivables , lower accounts payable and income tax payable balances due to the timing of payments . due to the nature of our operations , which includes purchases of large quantities of bulk chemicals , the timing of purchases can result in significant changes in working capital investment and the resulting operating cash flow . historically , our cash requirements for working capital increase during the period from april through november as caustic soda inventory levels increase as the majority of barges are received during this period . cash used in financing activities was $ 3.7 million in fiscal 2012 compared to $ 6.9 million in fiscal 2011 and $ 6.6 million in fiscal 2010. the decrease in cash used in financing activities in fiscal 2012 was primarily due to proceeds from the exercise of employee stock options , recognition of excess tax benefits from share-based compensation and proceeds from the issuance of new shares of common stock for the company 's employee stock purchase plan . cash and investments available-for-sale of $ 45.9 million at april 1 , 2012 increased by $ 8.5 million as compared with april 3 , 2011 , primarily due to cash generated from operations , proceeds from the exercise of employee stock options and proceeds from the issuance of new shares of common stock through the company 's employee stock purchase plan , partially offset by capital expenditures and dividend payments .
| 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 provided by operating activities in fiscal 2012 was $ 33.7 million compared to $ 28.5 million in fiscal 2011 and $ 38.8 million in fiscal 2010. the increase in cash provided by operating activities in fiscal 2012 from fiscal 2011 was primarily due to increases in net income and depreciation and amortization . higher working capital balances used $ 1.9 million in cash in fiscal 2012 compared to cash used of $ 0.4 million for working capital in fiscal 2011. the net increase in working capital balances in fiscal 2012 was primarily due to increasing commodity chemical costs and the resulting increase in selling prices , which resulted in an increase in trade receivables , lower accounts payable and income tax payable balances due to the timing of payments . due to the nature of our operations , which includes purchases of large quantities of bulk chemicals , the timing of purchases can result in significant changes in working capital investment and the resulting operating cash flow . historically , our cash requirements for working capital increase during the period from april through november as caustic soda inventory levels increase as the majority of barges are received during this period . cash used in financing activities was $ 3.7 million in fiscal 2012 compared to $ 6.9 million in fiscal 2011 and $ 6.6 million in fiscal 2010. the decrease in cash used in financing activities in fiscal 2012 was primarily due to proceeds from the exercise of employee stock options , recognition of excess tax benefits from share-based compensation and proceeds from the issuance of new shares of common stock for the company 's employee stock purchase plan . cash and investments available-for-sale of $ 45.9 million at april 1 , 2012 increased by $ 8.5 million as compared with april 3 , 2011 , primarily due to cash generated from operations , proceeds from the exercise of employee stock options and proceeds from the issuance of new shares of common stock through the company 's employee stock purchase plan , partially offset by capital expenditures and dividend payments .
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Suspicious Activity Report : in the fourth quarter of fiscal 2011 , we completed the acquisition of substantially all of the assets of vertex , for approximately $ 27.2 million . in addition to the manufacture of sodium hypochlorite bleaches , vertex distributes and provides terminal services for bulk liquid inorganic chemicals , and contract and private label packaging for household chemicals . we believe the acquisition strengthens our market position in the midwest . operating results of vertex are included in our consolidated results of operations from the date of acquisition in this annual report on form 10-k as part of our industrial segment . see note 2 to the consolidated financial statements for further information . in fiscal 2010 , we completed two new facilities to expand our ability to service our customers and facilitate growth within our industrial group . our facility in centralia , illinois began operations in july 2009 and primarily serves our food-grade and agriculture products businesses . we also opened a facility in minneapolis , minnesota , to handle bulk chemicals sold to pharmaceutical manufacturers . we opened one new branch for our water treatment group in fiscal 2012 and two new branches in fiscal 2011 and expect to continue to invest in existing and new branches to expand our water treatment group 's geographic coverage . the cost of these branch expansions is not expected to be material . in addition , we have selectively added route sales personnel to certain existing water treatment group branch offices to spur growth within our existing geographic coverage area . in february 2009 , we agreed to sell our inventory and entered into a marketing agreement regarding the business of our pharmaceutical segment , which provided pharmaceutical chemicals to retail pharmacies and small-scale pharmaceutical manufacturers . the transaction closed in may 2009 and we have no significant obligations to fulfill under the agreement . the results of the pharmaceutical segment have been reported as discontinued operations in our consolidated financial statements for all periods presented in this annual report on form 10-k. our financial performance in fiscal 2012 was highlighted by : sales from continuing operations of $ 343.8 million , a 15.5 % increase from fiscal 2011 ; gross profit from continuing operations of $ 65.9 million or 19.2 % of sales , a $ 4.0 million increase in gross profit dollars from fiscal 2011 ; 16 net cash provided by operating activities of $ 33.7 million ; and cash and cash equivalents and investments available for sale were $ 45.9 million as of the end of fiscal 2012. we seek to maintain relatively constant gross profit dollars on each of our products as the cost of our raw materials increase or decrease . since we expect that we will continue to experience fluctuations in our raw material costs and resulting prices in the future , we believe that gross profit dollars is the best measure of our profitability from the sale of our products . if we maintain relatively stable gross profit dollars on each of our products , our reported gross profit percentage will decrease when the cost of the product increases and will increase when the cost of the product decreases . we use the last in , first out ( lifo ) method of valuing the vast majority of hawkins ' inventory , which causes the most recent product costs to be recognized in our income statement . the valuation of lifo inventory for interim periods is based on our estimates of fiscal year-end inventory levels and costs . the lifo inventory valuation method and the resulting cost of sales are consistent with our business practices of pricing to current commodity chemical raw material prices . our lifo reserve increased by $ 1.6 million in fiscal 2012 primarily due to volumes and mix of commodity chemicals in inventory at the end of the year . the increased reserve decreased our reported gross profit for the year . our lifo reserve increased by $ 3.9 million in fiscal 2011 due to rising costs and higher inventory volumes on hand at year-end maintained to meet customer requirements during an anticipated flood . this increase in the reserve decreased our reported gross profit in fiscal 2011. results of operations the following table sets forth certain items from our statement of income as a percentage of sales from period to period : replace_table_token_5_th fiscal 2012 compared to fiscal 2011 sales sales increased $ 46.2 million , or 15.5 % , to $ 343.8 million for fiscal 2012 , as compared to sales of $ 297.6 million for fiscal 2011. vertex , which we acquired during the fourth quarter of 2011 , contributed $ 32.9 million of the increase in sales for fiscal 2012. we also experienced increased sales as a result of higher selling prices due to increased commodity chemical prices . sales of bulk chemicals , including caustic soda , were approximately 23 % of sales compared to approximately 20 % in the previous year . the increase in the bulk 17 chemical sales percentage for fiscal 2012 was primarily attributable to a full year of vertex sales volumes compared to a partial year of sales volumes in fiscal 2011. industrial segment . industrial segment sales increased $ 42.7 million , or 20.5 % , to $ 251.4 million for fiscal 2012. vertex contributed $ 32.9 million of the increase in sales for fiscal 2012. we experienced higher selling prices due to increased commodity chemical prices . water treatment segment . story_separator_special_tag gross profit gross profit was $ 61.9 million , or 20.8 % of sales , for fiscal 2011 , as compared to $ 64.4 million , or 25.1 % of sales , for fiscal 2010. the lifo method of valuing inventory negatively impacted gross profit by $ 3.9 million for fiscal 2011 due to increased raw material costs and higher volumes of inventory at year end maintained to meet customer requirements during an anticipated flood . in the prior year , lifo positively impacted gross profit by $ 12.6 million due to decreases in certain raw material costs during that period . industrial segment . gross profit for the industrial segment was $ 36.9 million , or 17.7 % of sales , for fiscal 2011 , as compared to $ 37.3 million , or 21.3 % of sales , for fiscal 2010. competitive pricing pressures and increased operational overhead costs contributed to the lower gross profit levels in the industrial segment . this group incurred $ 0.3 million of overhead costs associated with flood control efforts in the fourth quarter of fiscal 2011. these reductions in gross profit were partially offset by higher sales of higher margin manufactured and specialty chemical products . the lifo method of valuing inventory negatively impacted gross profit in this segment by $ 2.9 million in fiscal 2011 , as compared to positively impacting gross profit by $ 10.2 million in fiscal 2010. water treatment segment . gross profit for the water treatment segment was $ 25.0 million , or 28.1 % of sales , for fiscal 2011 , as compared to $ 27.2 million , or 33.0 % of sales , for fiscal 2010. the decrease in gross profit dollars was primarily due to competitive pricing pressures and increased operational overhead costs , partially offset by increased sales . additionally , the lifo method of valuing inventory negatively impacted gross profit in this segment by $ 1.1 million in fiscal 2011 , as compared to positively impacting gross profit by $ 2.4 million in fiscal 2010 . 19 selling , general and administrative expenses selling , general and administrative ( sg & a ) expenses increased $ 4.3 million to $ 29.9 million , or 10.1 % of sales , for fiscal 2011 , as compared to $ 25.6 million , or 10.0 % of sales , for fiscal 2010. we incurred approximately $ 1.0 million in additional expense as a result of the death of john hawkins , our former chief executive officer , through payments due under his retention bonus agreement and the accelerated vesting of his previously granted performance-based restricted stock units and stock options . other items driving the increased expenses include acquisition costs of approximately $ 0.7 million relating to the vertex acquisition in addition to higher equity incentive plan costs and litigation defense costs . operating income operating income was $ 32.0 million , or 10.7 % of sales , for fiscal 2011 , as compared to $ 38.8 million , or 15.1 % of sales , for fiscal 2010. the decrease in operating income was the result of reduced gross profits and increased sg & a expenses . both reporting segments saw a decline in their gross profit dollars due to competitive pricing pressures and higher operational overhead costs . both segments were also negatively impacted by the lifo method of valuing inventory in fiscal 2011. investment income investment income was $ 0.3 million for fiscal 2011 and fiscal 2010. provision for income taxes our effective income tax rate was 37.1 % for fiscal 2011 compared to 39.3 % for fiscal 2010. the lower effective tax rate for fiscal 2011 was primarily due to increased permanent tax differences , lower taxable income levels and somewhat lower effective state tax rates . story_separator_special_tag future cash flows requires us to make significant estimates regarding future revenues and expenses , projected capital expenditures , changes in working capital and the appropriate discount rate . the projections also take into account several factors including current and estimated economic trends and outlook , costs of raw materials , consideration of our market capitalization in comparison to the estimated fair values of our reporting units determined using discounted cash flow analyses and other factors which are beyond our control . we completed step one of our annual goodwill impairment evaluation during the fourth quarter of fiscal 2012 and determined that our reporting units ' fair value substantially exceeded their carrying value . accordingly , step two of the impairment analysis was not required . we also completed an impairment test of infinite-life intangible assets during the fourth quarter , in which the fair value exceeded the carrying amount . additionally , no impairment charges were required for fiscal 2011 or 2010. impairment of long-lived assets we review the recoverability of long-lived assets to be held and used , such as property , plant and equipment and intangible assets subject to amortization , when events or changes in circumstances occur that indicate the carrying value of the asset or asset group may not be recoverable , such as prolonged industry downturn or significant reductions in projected future cash flows . the assessment of possible impairment is based on our ability to recover the carrying value of the asset or asset group from the expected future pre-tax cash flows ( undiscounted ) of the related operations . if these cash flows are less than the carrying value of such asset or asset group , an impairment is recognized equal to the amount by which the carrying value exceeds the fair value of the long-lived assets . the measurement of impairment requires us to estimate future cash flows and the fair value of long-lived assets . significant judgments and assumptions are required in the forecast of future operating results used in the preparation of the estimated future cash flows . we periodically review the appropriateness of the estimated useful lives of our long-lived assets .
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2,611 | while new unit registrations increased in the u.k. in 2010 , this was due in part to government incentive programs aimed to increase vehicle sales . those programs ended in 2010. as a result , we anticipate that new vehicle sales in the u.k. will decline in 2011 , however , we believe the premium/luxury market will be more resilient than the retail market as a whole . the german market experienced a sharp decline in new unit sales in 2010 as government sponsored incentive programs expired . we believe that the german automotive market will recover somewhat in 2011 , although the level of recovery is uncertain . 23 operating overview new and used vehicle revenues include sales to retail customers and to leasing companies providing consumer automobile leasing . we generate finance and insurance revenues from sales of third-party extended service contracts , sales of third-party insurance policies , commissions relating to the sale of finance and lease contracts to third parties and the sales of certain other products . service and parts revenues include fees paid for repair , maintenance and collision services , and the sale of replacement parts and other aftermarket accessories . during the year ended december 31 , 2010 , we experienced year over year increases in same store new and used retail unit sales , which drove retail revenue growth , and contributed to growth in our same-store finance and insurance revenues . our same store service and parts business declined 0.3 % during the year ended december 31 , 2010 despite a benefit relating to toyota recall activity in the u.s. our gross profit tends to vary with the mix of revenues we derive from the sale of new vehicles , used vehicles , finance and insurance products , and service and parts transactions . our gross profit varies across product lines , with vehicle sales usually resulting in lower gross profit margins and our other revenues resulting in higher gross profit margins . factors such as inventory and vehicle availability , customer demand , consumer confidence , unemployment , general economic conditions , seasonality , weather , credit availability , fuel prices and manufacturers ' advertising and incentives also impact the mix of our revenues , and therefore influence our gross profit margin . aggregate gross profit increased $ 123.6 million , or 7.8 % , during the year ended december 31 , 2010 compared to the same period in prior year . the increase in gross profit is largely attributable to the increases in new and used unit sales . our retail gross margin percentage declined from 17.6 % during the year ended december 31 , 2009 to 16.9 % during the year ended december 31 , 2010 , due primarily to an increase in the percentage of our revenues generated by vehicle sales . our selling expenses consist of advertising and compensation for sales personnel , including commissions and related bonuses . general and administrative expenses include compensation for administration , finance , legal and general management personnel , rent , insurance , utilities , and other expenses . a significant portion of our selling expenses are variable , and we believe a significant portion of our general and administrative expenses are subject to our control , allowing us to adjust them over time to reflect economic trends . floor plan interest expense relates to financing incurred in connection with the acquisition of new and used vehicle inventories that is secured by those vehicles . other interest expense consists of interest charges on all of our interest-bearing debt , other than interest relating to floor plan financing . the cost of our variable rate indebtedness is based on the prime rate , defined london interbank offered rate ( libor ) , the bank of england base rate , the finance house base rate , or the euro interbank offered rate . our floor plan interest expense has decreased during the year ended december 31 , 2010 as a result of decreases in average floor plan balances outstanding and lower applicable interest rates . our other interest expense has decreased during the year ended december 31 , 2010 due to term loan repayments and repurchases of our 3.5 % senior subordinated convertible notes . equity in earnings of affiliates represents our share of the earnings from our investments in joint ventures and other non-consolidated investments , including ptl . it is our expectation that operating conditions as outlined above in the outlook section will similarly impact these businesses throughout 2011. however , because ptl is engaged in different businesses than we are , its operating performance may vary significantly from ours . the future success of our business is dependent upon , among other things , general economic and industry conditions , our ability to consummate and integrate acquisitions , the level of vehicle sales in the markets where we operate , our ability to increase sales of higher margin products , especially service and parts services , our ability to realize returns on our significant capital investment in new and upgraded dealership facilities , the success of our smart usa distribution business , and the return realized from our investments in various joint ventures and other non-consolidated investments . see item 1a risk factors and forward-looking statements. critical accounting policies and estimates the preparation of financial statements in accordance with accounting principles generally accepted in the united states of america requires the application of accounting policies that often involve making estimates and employing judgments . such judgments influence the assets , liabilities , revenues and expenses recognized in our financial statements . management , on an ongoing basis , reviews these estimates and assumptions . management may determine that modifications in assumptions and estimates are required , which may result in a material change in our results of operations or financial position . story_separator_special_tag the same-store revenue decrease is due to a $ 2,675 , or 9.6 % , decrease in comparative average selling price per vehicle , which decreased revenue by $ 256.1 million , coupled with the 3.6 % decrease in retail unit sales , which decreased revenue by $ 100.4 million . gross profit retail gross profit from used vehicle sales increased $ 2.3 million , or 1.0 % , from 2009 to 2010 and increased $ 10.5 million , or 4.9 % , from 2008 to 2009. the increase from 2009 to 2010 is due to a $ 3.4 million increase from net dealership acquisitions during the year , offset by a $ 1.1 million , or 0.5 % , decrease in same store gross profit . the decrease in same store gross profit is primarily due to a $ 174 , or 8.0 % , decrease in average gross profit per used vehicle retailed , which decreased gross profit by $ 17.7 million , offset by the 8.1 % increase in used retail unit sales , which increased gross profit by $ 16.6 million . the increase from 2008 to 2009 is due to a $ 9.1 million increase from net dealership acquisitions during the year , coupled with a $ 1.4 million or 0.7 % , increase in same-store gross profit . the same-store gross profit increase is primarily due to the $ 94 , or 4.5 % , increase in average gross profit per used vehicle retailed , which increased gross profit by $ 9.0 million , offset by the 3.6 % decrease in used retail unit sales , which decreased gross profit by $ 7.6 million . 28 finance and insurance data replace_table_token_6_th finance and insurance revenue increased $ 29.7 million , or 13.4 % , from 2009 to 2010 and decreased $ 37.0 million , or 14.3 % , from 2008 to 2009. the increase from 2009 to 2010 is due to a $ 23.5 million , or 10.6 % , increase in same-store revenues , coupled with a $ 6.2 million increase from net dealership acquisitions during the year . the same-store revenue increase is due to the 7.3 % increase in retail unit sales , which increased revenue by $ 16.5 million , coupled with a $ 29 , or 3.2 % , increase in comparative average finance and insurance revenue per unit , which increased revenue by $ 7.0 million . the decrease from 2008 to 2009 is due to a $ 42.8 million , or 16.9 % , decrease in same-store revenues , offset by a $ 5.8 million increase from net dealership acquisitions during the year . the same-store revenue decrease is due to the 14.1 % decrease in retail unit sales , which decreased revenue by $ 35.7 million , coupled with a $ 31 , or 3.3 % , decrease in comparative average finance and insurance revenue per unit retailed , which decreased revenue by $ 7.1 million . the $ 31 decrease in comparative average finance and insurance revenue per unit retailed is due primarily to decreased sales penetration of certain products which we believe was brought about by the challenging economic conditions . service and parts data replace_table_token_7_th revenues service and parts revenue increased $ 27.8 million , or 2.1 % , from 2009 to 2010 and decreased $ 87.0 million , or 6.2 % , from 2008 to 2009. the increase from 2009 to 2010 is due to a $ 32.2 million increase from net dealership acquisitions during the year , offset by a $ 4.4 million , or 0.3 % , decrease in same-store revenues during the year . we believe the same store decline is due in large part to a decline in vehicle sales over the last several years , coupled with a decrease in warranty due to the improvement in the quality of vehicles being produced today , offset somewhat by the significant toyota recall actions in 2010. the decrease from 2008 to 2009 is due to a $ 116.1 million , or 8.6 % , decrease in same-store revenues , offset by a $ 29.1 million increase from net dealership acquisitions during the year . the same-store decrease is due in part to a decline in pre-inspection and delivery work on new vehicle inventories due to the 20.3 % decrease in same store new vehicle retail unit sales , coupled with a 9.2 % same store decrease in collision repair center revenue . gross profit service and parts gross profit increased $ 38.3 million , or 5.3 % , from 2009 to 2010 and decreased $ 55.1 million , or 7.1 % , from 2008 to 2009. the increase from 2009 to 2010 is due to a $ 19.8 million , or 2.8 % , increase in same-store gross profit , coupled with an $ 18.5 million increase from net dealership acquisitions during the year . the same-store gross profit increase is due to a 1.7 % increase in gross margin percentage , which increased gross profit by $ 22.2 million , offset by the $ 4.4 million , or 0.3 % , decrease in same store revenues , which decreased gross profit by $ 2.4 million . service and parts margin in 2010 has been positively impacted by the significant toyota recall actions . the decrease from 2008 to 2009 is due to a $ 71.2 million , or 9.4 % , decrease in same-store gross profit , offset by a $ 16.1 million increase from net dealership acquisitions during the year . the same-store gross profit decrease is due to the $ 116.1 million , or 8.6 % , decrease in revenues , which decreased gross profit by $ 64.2 million , coupled with a 0.5 % decrease in gross margin percentage , which decreased gross profit by $ 7.0 million . in 2009 , the gross margin realized on parts , service and collision repairs declined compared
| cash flows cash and cash equivalents increased by $ 2.6 million and $ 3.5 million during the years ended december 31 , 2010 and 2008 , respectively , and decreased by $ 3.1 million during the year ended december 31 , 2009. the major components of these changes are discussed below . cash flows from continuing operating activities cash provided by continuing operating activities was $ 199.9 million , $ 301.2 million , and $ 404.6 million during the years ended december 31 , 2010 , 2009 , and 2008 , respectively . cash flows from continuing operating activities includes net income , as adjusted for non-cash items and the effects of changes in working capital . we finance substantially all of our new and a portion of our used vehicle inventories under revolving floor plan notes payable with various lenders . we retain the right to select which , if any , financing source to utilize in connection with the procurement of vehicle inventories . many vehicle manufacturers provide vehicle financing for the dealers representing their brands , however , it is not a requirement that we utilize this financing . historically , our floor plan finance source has been based on aggregate pricing considerations . in accordance with generally accepted accounting principles relating to the statement of cash flows , we report all cash flows arising in connection with floor plan notes payable with the manufacturer of a particular new vehicle as an operating activity in our statement of cash flows , and all cash flows arising in connection with floor plan notes payable to a party other than the manufacturer of a particular new vehicle and all floor plan notes payable relating to pre-owned vehicles as a financing activity in our statement of cash flows . currently , the majority of our non-trade vehicle financing is with other manufacturer captive lenders . to date , we have not experienced any material limitation with respect to the amount or availability of financing from any institution providing us vehicle financing .
| 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 $ 2.6 million and $ 3.5 million during the years ended december 31 , 2010 and 2008 , respectively , and decreased by $ 3.1 million during the year ended december 31 , 2009. the major components of these changes are discussed below . cash flows from continuing operating activities cash provided by continuing operating activities was $ 199.9 million , $ 301.2 million , and $ 404.6 million during the years ended december 31 , 2010 , 2009 , and 2008 , respectively . cash flows from continuing operating activities includes net income , as adjusted for non-cash items and the effects of changes in working capital . we finance substantially all of our new and a portion of our used vehicle inventories under revolving floor plan notes payable with various lenders . we retain the right to select which , if any , financing source to utilize in connection with the procurement of vehicle inventories . many vehicle manufacturers provide vehicle financing for the dealers representing their brands , however , it is not a requirement that we utilize this financing . historically , our floor plan finance source has been based on aggregate pricing considerations . in accordance with generally accepted accounting principles relating to the statement of cash flows , we report all cash flows arising in connection with floor plan notes payable with the manufacturer of a particular new vehicle as an operating activity in our statement of cash flows , and all cash flows arising in connection with floor plan notes payable to a party other than the manufacturer of a particular new vehicle and all floor plan notes payable relating to pre-owned vehicles as a financing activity in our statement of cash flows . currently , the majority of our non-trade vehicle financing is with other manufacturer captive lenders . to date , we have not experienced any material limitation with respect to the amount or availability of financing from any institution providing us vehicle financing .
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Suspicious Activity Report : while new unit registrations increased in the u.k. in 2010 , this was due in part to government incentive programs aimed to increase vehicle sales . those programs ended in 2010. as a result , we anticipate that new vehicle sales in the u.k. will decline in 2011 , however , we believe the premium/luxury market will be more resilient than the retail market as a whole . the german market experienced a sharp decline in new unit sales in 2010 as government sponsored incentive programs expired . we believe that the german automotive market will recover somewhat in 2011 , although the level of recovery is uncertain . 23 operating overview new and used vehicle revenues include sales to retail customers and to leasing companies providing consumer automobile leasing . we generate finance and insurance revenues from sales of third-party extended service contracts , sales of third-party insurance policies , commissions relating to the sale of finance and lease contracts to third parties and the sales of certain other products . service and parts revenues include fees paid for repair , maintenance and collision services , and the sale of replacement parts and other aftermarket accessories . during the year ended december 31 , 2010 , we experienced year over year increases in same store new and used retail unit sales , which drove retail revenue growth , and contributed to growth in our same-store finance and insurance revenues . our same store service and parts business declined 0.3 % during the year ended december 31 , 2010 despite a benefit relating to toyota recall activity in the u.s. our gross profit tends to vary with the mix of revenues we derive from the sale of new vehicles , used vehicles , finance and insurance products , and service and parts transactions . our gross profit varies across product lines , with vehicle sales usually resulting in lower gross profit margins and our other revenues resulting in higher gross profit margins . factors such as inventory and vehicle availability , customer demand , consumer confidence , unemployment , general economic conditions , seasonality , weather , credit availability , fuel prices and manufacturers ' advertising and incentives also impact the mix of our revenues , and therefore influence our gross profit margin . aggregate gross profit increased $ 123.6 million , or 7.8 % , during the year ended december 31 , 2010 compared to the same period in prior year . the increase in gross profit is largely attributable to the increases in new and used unit sales . our retail gross margin percentage declined from 17.6 % during the year ended december 31 , 2009 to 16.9 % during the year ended december 31 , 2010 , due primarily to an increase in the percentage of our revenues generated by vehicle sales . our selling expenses consist of advertising and compensation for sales personnel , including commissions and related bonuses . general and administrative expenses include compensation for administration , finance , legal and general management personnel , rent , insurance , utilities , and other expenses . a significant portion of our selling expenses are variable , and we believe a significant portion of our general and administrative expenses are subject to our control , allowing us to adjust them over time to reflect economic trends . floor plan interest expense relates to financing incurred in connection with the acquisition of new and used vehicle inventories that is secured by those vehicles . other interest expense consists of interest charges on all of our interest-bearing debt , other than interest relating to floor plan financing . the cost of our variable rate indebtedness is based on the prime rate , defined london interbank offered rate ( libor ) , the bank of england base rate , the finance house base rate , or the euro interbank offered rate . our floor plan interest expense has decreased during the year ended december 31 , 2010 as a result of decreases in average floor plan balances outstanding and lower applicable interest rates . our other interest expense has decreased during the year ended december 31 , 2010 due to term loan repayments and repurchases of our 3.5 % senior subordinated convertible notes . equity in earnings of affiliates represents our share of the earnings from our investments in joint ventures and other non-consolidated investments , including ptl . it is our expectation that operating conditions as outlined above in the outlook section will similarly impact these businesses throughout 2011. however , because ptl is engaged in different businesses than we are , its operating performance may vary significantly from ours . the future success of our business is dependent upon , among other things , general economic and industry conditions , our ability to consummate and integrate acquisitions , the level of vehicle sales in the markets where we operate , our ability to increase sales of higher margin products , especially service and parts services , our ability to realize returns on our significant capital investment in new and upgraded dealership facilities , the success of our smart usa distribution business , and the return realized from our investments in various joint ventures and other non-consolidated investments . see item 1a risk factors and forward-looking statements. critical accounting policies and estimates the preparation of financial statements in accordance with accounting principles generally accepted in the united states of america requires the application of accounting policies that often involve making estimates and employing judgments . such judgments influence the assets , liabilities , revenues and expenses recognized in our financial statements . management , on an ongoing basis , reviews these estimates and assumptions . management may determine that modifications in assumptions and estimates are required , which may result in a material change in our results of operations or financial position . story_separator_special_tag the same-store revenue decrease is due to a $ 2,675 , or 9.6 % , decrease in comparative average selling price per vehicle , which decreased revenue by $ 256.1 million , coupled with the 3.6 % decrease in retail unit sales , which decreased revenue by $ 100.4 million . gross profit retail gross profit from used vehicle sales increased $ 2.3 million , or 1.0 % , from 2009 to 2010 and increased $ 10.5 million , or 4.9 % , from 2008 to 2009. the increase from 2009 to 2010 is due to a $ 3.4 million increase from net dealership acquisitions during the year , offset by a $ 1.1 million , or 0.5 % , decrease in same store gross profit . the decrease in same store gross profit is primarily due to a $ 174 , or 8.0 % , decrease in average gross profit per used vehicle retailed , which decreased gross profit by $ 17.7 million , offset by the 8.1 % increase in used retail unit sales , which increased gross profit by $ 16.6 million . the increase from 2008 to 2009 is due to a $ 9.1 million increase from net dealership acquisitions during the year , coupled with a $ 1.4 million or 0.7 % , increase in same-store gross profit . the same-store gross profit increase is primarily due to the $ 94 , or 4.5 % , increase in average gross profit per used vehicle retailed , which increased gross profit by $ 9.0 million , offset by the 3.6 % decrease in used retail unit sales , which decreased gross profit by $ 7.6 million . 28 finance and insurance data replace_table_token_6_th finance and insurance revenue increased $ 29.7 million , or 13.4 % , from 2009 to 2010 and decreased $ 37.0 million , or 14.3 % , from 2008 to 2009. the increase from 2009 to 2010 is due to a $ 23.5 million , or 10.6 % , increase in same-store revenues , coupled with a $ 6.2 million increase from net dealership acquisitions during the year . the same-store revenue increase is due to the 7.3 % increase in retail unit sales , which increased revenue by $ 16.5 million , coupled with a $ 29 , or 3.2 % , increase in comparative average finance and insurance revenue per unit , which increased revenue by $ 7.0 million . the decrease from 2008 to 2009 is due to a $ 42.8 million , or 16.9 % , decrease in same-store revenues , offset by a $ 5.8 million increase from net dealership acquisitions during the year . the same-store revenue decrease is due to the 14.1 % decrease in retail unit sales , which decreased revenue by $ 35.7 million , coupled with a $ 31 , or 3.3 % , decrease in comparative average finance and insurance revenue per unit retailed , which decreased revenue by $ 7.1 million . the $ 31 decrease in comparative average finance and insurance revenue per unit retailed is due primarily to decreased sales penetration of certain products which we believe was brought about by the challenging economic conditions . service and parts data replace_table_token_7_th revenues service and parts revenue increased $ 27.8 million , or 2.1 % , from 2009 to 2010 and decreased $ 87.0 million , or 6.2 % , from 2008 to 2009. the increase from 2009 to 2010 is due to a $ 32.2 million increase from net dealership acquisitions during the year , offset by a $ 4.4 million , or 0.3 % , decrease in same-store revenues during the year . we believe the same store decline is due in large part to a decline in vehicle sales over the last several years , coupled with a decrease in warranty due to the improvement in the quality of vehicles being produced today , offset somewhat by the significant toyota recall actions in 2010. the decrease from 2008 to 2009 is due to a $ 116.1 million , or 8.6 % , decrease in same-store revenues , offset by a $ 29.1 million increase from net dealership acquisitions during the year . the same-store decrease is due in part to a decline in pre-inspection and delivery work on new vehicle inventories due to the 20.3 % decrease in same store new vehicle retail unit sales , coupled with a 9.2 % same store decrease in collision repair center revenue . gross profit service and parts gross profit increased $ 38.3 million , or 5.3 % , from 2009 to 2010 and decreased $ 55.1 million , or 7.1 % , from 2008 to 2009. the increase from 2009 to 2010 is due to a $ 19.8 million , or 2.8 % , increase in same-store gross profit , coupled with an $ 18.5 million increase from net dealership acquisitions during the year . the same-store gross profit increase is due to a 1.7 % increase in gross margin percentage , which increased gross profit by $ 22.2 million , offset by the $ 4.4 million , or 0.3 % , decrease in same store revenues , which decreased gross profit by $ 2.4 million . service and parts margin in 2010 has been positively impacted by the significant toyota recall actions . the decrease from 2008 to 2009 is due to a $ 71.2 million , or 9.4 % , decrease in same-store gross profit , offset by a $ 16.1 million increase from net dealership acquisitions during the year . the same-store gross profit decrease is due to the $ 116.1 million , or 8.6 % , decrease in revenues , which decreased gross profit by $ 64.2 million , coupled with a 0.5 % decrease in gross margin percentage , which decreased gross profit by $ 7.0 million . in 2009 , the gross margin realized on parts , service and collision repairs declined compared
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2,612 | international revenue includes all revenue derived from sales to customers outside the united states . at december 31 , 2012 , we employed approximately 2,400 employees worldwide , of which 1,130 employees are based in the americas , 170 employees in emea , and 1,100 employees in apac ( including india ) . we have offices in australia , china , france , india , japan , the netherlands , singapore , and the united kingdom , as well as representatives in mexico and reseller partnerships in latin america , eastern europe , the middle east , south africa , and asia . global economic trends and industry factors global macro economic trends , technology spending , and supply chain management market growth are important barometers for our business . in 2012 , approximately 72 % of our total revenue was generated in the united states , 12 % in emea , and the balance in apac , canada , and latin america . in addition , gartner inc. , an information technology research and advisory company , estimates that nearly 80 % of every supply chain software solutions dollar invested is spent in the united states ( 50 % ) and western europe ( 28 % ) ; consequently , the health of the u.s. and the western european economies has a meaningful impact on our financial results . 24 we sell technology-based solutions with total pricing , including software and services , in many cases exceeding $ 1.0 million . our software often is a part of our customers ' and prospects ' much larger capital commitment associated with facilities expansion and business improvement . we believe that , given the lingering uncertainty in the global macro environment , the current sales cycles for large license sales of $ 1.0 million or greater in our target markets have been extended . the current business climate within the united states and geographic regions in which we operate continues to affect customers ' and prospects ' decisions regarding timing of strategic capital expenditures . delays with respect to such decisions can have a material adverse impact on our business , and may further intensify competition in our already highly competitive markets . in january 2013 , the international monetary fund ( imf ) provided a world economic outlook ( weo ) update lowering its previous 2013 world economic growth forecast from october 2012 by 10 basis points projecting 3.5 percent growth in 2013 versus 3.2 percent growth in 2012. the weo noted that europe and japan are in recession , and the united states continues to struggle with fiscal policy , including the debt ceiling , tax policy , and entitlement programs . the update stated that [ g ] lobal growth is projected to increase during 2013 , as the factors underlying soft global activity are expected to subside . however , this upturn is projected to be more gradual than in the october 2012 weo projections. further the update stated that [ g ] lobal financial conditions improved further in the fourth quarter of 2012. however , a broad set of indicators for global industrial production and trade suggests that global growth did not strengthen further. the weo projected that advanced economies , which represent our primary revenue markets , would grow at about 1.4 percent in 2013 and 2.2 percent in 2014 , while the emerging and developing economies would continue to grow at about 5.5 percent in 2013 and 5.9 percent in 2014. during 2012 and 2011 , the overall trend has been an increase in large license sales for the company , with recognized $ 1.0 million or larger software license sales totaling twelve and thirteen for 2012 and 2011 , respectively , up from nine in 2010. however , the number of large license sales has been inconsistent from quarter to quarter , reflecting what we believe to be ongoing macroeconomic uncertainty in the united states and western europe . while we are encouraged by our 2012 and 2011 results , we , along with many of our customers , still remain cautious regarding the pace of global economic recovery . with global gdp growth continuing to be well below pre-2008 levels , we believe global economic volatility likely will continue to shape customers ' and prospects ' buying decisions , making it more difficult to forecast sales cycles for our products and the timing of large software license sales . revenue license revenue : license revenue , a leading indicator of our business , is primarily derived from software license fees that customers pay for supply chain solutions . in 2012 , license revenue totaled $ 61.5 million , or 16 % of total revenue , with gross margins of 87.3 % . for the year ended december 31 , 2012 , americas , emea , and apac recognized $ 50.0 million , $ 9.6 million , and $ 1.9 million in license revenue , respectively . our typical license revenue percentage mix of new to existing customers historically has approximated 50/50 . however , for the year ended december 31 , 2012 , the majority of license revenue was generated from existing customers , largely influenced by two large deals signed during the third quarter ended september 30 , 2012 , resulting in the percentage mix of new to existing customers of approximately 30/70 . we believe our current mix of new customer to existing customer license sales will fluctuate with continuing global macroeconomic uncertainty ; however , the mix should return to historically normal levels in improved global economic conditions . license revenue growth is influenced by the strength of general economic and business conditions and the competitive position of our software products . story_separator_special_tag 28 in accordance with the other presentation matters within the revenue recognition topic of the financial accounting standards board 's ( fasb ) accounting standards codification , the company recognizes amounts associated with reimbursements from customers for out-of-pocket expenses as revenue . such amounts have been included in hardware and other revenue in the consolidated statements of income . the total amount of expense reimbursement recorded to revenue was $ 12.6 million , $ 10.4 million , and $ 9.0 million for 2012 , 2011 , and 2010 , respectively . allowance for doubtful accounts we continuously monitor collections and payments from our customers and maintain an allowance for doubtful accounts based upon our historical experience and any specific customer collection issues that we have identified . additions to the allowance for doubtful accounts generally represent a sales allowance on services revenue , which are recorded to operations as a reduction to services revenue . while such losses have historically been within our expectations and the provisions established , we can not guarantee that we will continue to experience the same loss rates that we have in the past . valuation of goodwill in accordance with the intangiblesgoodwill and other topic of the fasb accounting standards codification , we do not amortize goodwill and other intangible assets with indefinite lives . our goodwill is subject to an annual impairment test , which requires us to estimate the fair value of our business compared to the carrying value . the impairment reviews require an analysis of future projections and assumptions about our operating performance . should such review indicate the assets are impaired , we would record an expense for the impaired assets . annual tests or other future events could cause us to conclude that impairment indicators exist and that our goodwill is impaired . for example , if we had reason to believe that our recorded goodwill had become impaired due to decreases in the fair market value of the underlying business , we would have to record a charge to income for that portion of goodwill that we believed was impaired . any resulting impairment loss could have a material adverse impact on our financial position and results of operations . at december 31 , 2012 , our goodwill balance was $ 62.3 million . accounting for income taxes we provide for the effect of income taxes on our financial position and results of operations in accordance with the income taxes topic of the fasb accounting standards codification . under this accounting pronouncement , income tax expense is recognized for the amount of income taxes payable or refundable for the current year and for the change in net deferred tax assets or liabilities resulting from events that are recorded for financial reporting purposes in a different reporting period than recorded in the tax return . management must make significant assumptions , judgments , and estimates to determine our current provision for income taxes and also our deferred tax assets and liabilities and any valuation allowance to be recorded against our net deferred tax asset . our judgments , assumptions , and estimates relative to the current provision for income tax take into account current tax laws , our interpretation of current tax laws , allowable deductions , projected tax credits , and possible outcomes of current and future audits conducted by foreign and domestic tax authorities . we do not recognize a tax benefit unless we conclude that it is more likely than not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position . if the recognition threshold is met , we recognize a tax benefit measured at the largest amount of the tax benefit that , in our judgment , is greater than 50 percent likely to be realized . changes in tax law or our interpretation of tax laws and the resolution of current and future tax audits could significantly impact the amounts provided for income taxes in our financial position and results of operations . our assumptions , judgments , and estimates relative to the value of our net deferred tax asset take into account predictions of the amount and category of future taxable income . actual operating results and the underlying amount and category of income in future years could render our current assumptions , judgments , and estimates of recoverable net deferred taxes inaccurate , thus materially impacting our financial position and results of operations . 29 equity-based compensation in january 2012 , in order to simplify equity grant administration , we changed our practice of granting restricted stock in favor of granting restricted stock units , or rsus , which convert to our common stock upon vesting . there is no material difference between the grant of restricted stock and the grant of rsus to either us or the recipients receiving the grants ; however , in contrast to the granting of restricted stock , no stock will actually be issued under the granting of rsus until the units vest . we do not currently grant stock options . in january 2010 our compensation committee approved certain changes to our historical equity incentive grant practices , with the objective to optimize the company 's performance and retention strength while managing program share usage to improve long-term equity overhang . the change eliminated stock option awards in favor of 100 % restricted stock grants , which for the 2011 and 2010 awards contain vesting provisions that are 50 % service-based and 50 % performance-based . the 2011 and 2010 awards have a four year vesting period , with the performance portion tied to their respective year revenue and adjusted earnings per share targets . for our historical stock option grants , we estimated the fair value on the date of grant using the black-scholes option pricing model . we based our estimate of fair value on certain assumptions ,
| liquidity and capital resources during 2012 , 2011 , and 2010 , we funded our business through cash generated from operations . as of december 31 , 2012 , our cash and investments totaled $ 103.0 million as compared to $ 99.1 million at december 31 , 2011. our cash flow from operating activities totaled $ 75.3 million , $ 55.8 million , and $ 50.0 million in 2012 , 2011 , and 2010 , respectively . typical factors affecting our cash provided by operating activities include our level of revenue and earnings for the period , the timing and amount of employee bonus payments and income tax payments , and the timing of cash collections from our customers which is our largest source of operating cash flow . cash flow from operating activities for 2012 increased $ 19.4 million compared to 2011 primarily attributable to higher revenue and net earnings combined with lower tax payments in 2012. cash flow from operating activities for 2011 increased $ 5.8 million compared to 2010 primarily attributable to higher revenue and net earnings . days sales outstanding ( dso ) was 60 days , 62 days , and 61 days at december 31 , 2012 , 2011 , and 2010 , respectively , reflects strong collection . 37 our investing activities used cash of approximately $ 7.0 million , $ 4.6 million , and $ 8.9 million in 2012 , 2011 , and 2010 , respectively . the use of cash for investing activities for the year ended december 31 , 2012 was for capital expenditures of approximately $ 7.9 million partially offset by the net maturities of $ 0.9 million in investments . the use of cash for investing activities for the year ended december 31 , 2011 was $ 5.1 million in capital expenditures partially offset by the net maturities of $ 0.5 million in investments . the use of cash for investing activities for the year ended december 31 , 2010 was for capital expenditures of approximately $ 5.9 million and the net purchase of $ 3.0 million in short-term 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.
```liquidity and capital resources during 2012 , 2011 , and 2010 , we funded our business through cash generated from operations . as of december 31 , 2012 , our cash and investments totaled $ 103.0 million as compared to $ 99.1 million at december 31 , 2011. our cash flow from operating activities totaled $ 75.3 million , $ 55.8 million , and $ 50.0 million in 2012 , 2011 , and 2010 , respectively . typical factors affecting our cash provided by operating activities include our level of revenue and earnings for the period , the timing and amount of employee bonus payments and income tax payments , and the timing of cash collections from our customers which is our largest source of operating cash flow . cash flow from operating activities for 2012 increased $ 19.4 million compared to 2011 primarily attributable to higher revenue and net earnings combined with lower tax payments in 2012. cash flow from operating activities for 2011 increased $ 5.8 million compared to 2010 primarily attributable to higher revenue and net earnings . days sales outstanding ( dso ) was 60 days , 62 days , and 61 days at december 31 , 2012 , 2011 , and 2010 , respectively , reflects strong collection . 37 our investing activities used cash of approximately $ 7.0 million , $ 4.6 million , and $ 8.9 million in 2012 , 2011 , and 2010 , respectively . the use of cash for investing activities for the year ended december 31 , 2012 was for capital expenditures of approximately $ 7.9 million partially offset by the net maturities of $ 0.9 million in investments . the use of cash for investing activities for the year ended december 31 , 2011 was $ 5.1 million in capital expenditures partially offset by the net maturities of $ 0.5 million in investments . the use of cash for investing activities for the year ended december 31 , 2010 was for capital expenditures of approximately $ 5.9 million and the net purchase of $ 3.0 million in short-term investments .
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Suspicious Activity Report : international revenue includes all revenue derived from sales to customers outside the united states . at december 31 , 2012 , we employed approximately 2,400 employees worldwide , of which 1,130 employees are based in the americas , 170 employees in emea , and 1,100 employees in apac ( including india ) . we have offices in australia , china , france , india , japan , the netherlands , singapore , and the united kingdom , as well as representatives in mexico and reseller partnerships in latin america , eastern europe , the middle east , south africa , and asia . global economic trends and industry factors global macro economic trends , technology spending , and supply chain management market growth are important barometers for our business . in 2012 , approximately 72 % of our total revenue was generated in the united states , 12 % in emea , and the balance in apac , canada , and latin america . in addition , gartner inc. , an information technology research and advisory company , estimates that nearly 80 % of every supply chain software solutions dollar invested is spent in the united states ( 50 % ) and western europe ( 28 % ) ; consequently , the health of the u.s. and the western european economies has a meaningful impact on our financial results . 24 we sell technology-based solutions with total pricing , including software and services , in many cases exceeding $ 1.0 million . our software often is a part of our customers ' and prospects ' much larger capital commitment associated with facilities expansion and business improvement . we believe that , given the lingering uncertainty in the global macro environment , the current sales cycles for large license sales of $ 1.0 million or greater in our target markets have been extended . the current business climate within the united states and geographic regions in which we operate continues to affect customers ' and prospects ' decisions regarding timing of strategic capital expenditures . delays with respect to such decisions can have a material adverse impact on our business , and may further intensify competition in our already highly competitive markets . in january 2013 , the international monetary fund ( imf ) provided a world economic outlook ( weo ) update lowering its previous 2013 world economic growth forecast from october 2012 by 10 basis points projecting 3.5 percent growth in 2013 versus 3.2 percent growth in 2012. the weo noted that europe and japan are in recession , and the united states continues to struggle with fiscal policy , including the debt ceiling , tax policy , and entitlement programs . the update stated that [ g ] lobal growth is projected to increase during 2013 , as the factors underlying soft global activity are expected to subside . however , this upturn is projected to be more gradual than in the october 2012 weo projections. further the update stated that [ g ] lobal financial conditions improved further in the fourth quarter of 2012. however , a broad set of indicators for global industrial production and trade suggests that global growth did not strengthen further. the weo projected that advanced economies , which represent our primary revenue markets , would grow at about 1.4 percent in 2013 and 2.2 percent in 2014 , while the emerging and developing economies would continue to grow at about 5.5 percent in 2013 and 5.9 percent in 2014. during 2012 and 2011 , the overall trend has been an increase in large license sales for the company , with recognized $ 1.0 million or larger software license sales totaling twelve and thirteen for 2012 and 2011 , respectively , up from nine in 2010. however , the number of large license sales has been inconsistent from quarter to quarter , reflecting what we believe to be ongoing macroeconomic uncertainty in the united states and western europe . while we are encouraged by our 2012 and 2011 results , we , along with many of our customers , still remain cautious regarding the pace of global economic recovery . with global gdp growth continuing to be well below pre-2008 levels , we believe global economic volatility likely will continue to shape customers ' and prospects ' buying decisions , making it more difficult to forecast sales cycles for our products and the timing of large software license sales . revenue license revenue : license revenue , a leading indicator of our business , is primarily derived from software license fees that customers pay for supply chain solutions . in 2012 , license revenue totaled $ 61.5 million , or 16 % of total revenue , with gross margins of 87.3 % . for the year ended december 31 , 2012 , americas , emea , and apac recognized $ 50.0 million , $ 9.6 million , and $ 1.9 million in license revenue , respectively . our typical license revenue percentage mix of new to existing customers historically has approximated 50/50 . however , for the year ended december 31 , 2012 , the majority of license revenue was generated from existing customers , largely influenced by two large deals signed during the third quarter ended september 30 , 2012 , resulting in the percentage mix of new to existing customers of approximately 30/70 . we believe our current mix of new customer to existing customer license sales will fluctuate with continuing global macroeconomic uncertainty ; however , the mix should return to historically normal levels in improved global economic conditions . license revenue growth is influenced by the strength of general economic and business conditions and the competitive position of our software products . story_separator_special_tag 28 in accordance with the other presentation matters within the revenue recognition topic of the financial accounting standards board 's ( fasb ) accounting standards codification , the company recognizes amounts associated with reimbursements from customers for out-of-pocket expenses as revenue . such amounts have been included in hardware and other revenue in the consolidated statements of income . the total amount of expense reimbursement recorded to revenue was $ 12.6 million , $ 10.4 million , and $ 9.0 million for 2012 , 2011 , and 2010 , respectively . allowance for doubtful accounts we continuously monitor collections and payments from our customers and maintain an allowance for doubtful accounts based upon our historical experience and any specific customer collection issues that we have identified . additions to the allowance for doubtful accounts generally represent a sales allowance on services revenue , which are recorded to operations as a reduction to services revenue . while such losses have historically been within our expectations and the provisions established , we can not guarantee that we will continue to experience the same loss rates that we have in the past . valuation of goodwill in accordance with the intangiblesgoodwill and other topic of the fasb accounting standards codification , we do not amortize goodwill and other intangible assets with indefinite lives . our goodwill is subject to an annual impairment test , which requires us to estimate the fair value of our business compared to the carrying value . the impairment reviews require an analysis of future projections and assumptions about our operating performance . should such review indicate the assets are impaired , we would record an expense for the impaired assets . annual tests or other future events could cause us to conclude that impairment indicators exist and that our goodwill is impaired . for example , if we had reason to believe that our recorded goodwill had become impaired due to decreases in the fair market value of the underlying business , we would have to record a charge to income for that portion of goodwill that we believed was impaired . any resulting impairment loss could have a material adverse impact on our financial position and results of operations . at december 31 , 2012 , our goodwill balance was $ 62.3 million . accounting for income taxes we provide for the effect of income taxes on our financial position and results of operations in accordance with the income taxes topic of the fasb accounting standards codification . under this accounting pronouncement , income tax expense is recognized for the amount of income taxes payable or refundable for the current year and for the change in net deferred tax assets or liabilities resulting from events that are recorded for financial reporting purposes in a different reporting period than recorded in the tax return . management must make significant assumptions , judgments , and estimates to determine our current provision for income taxes and also our deferred tax assets and liabilities and any valuation allowance to be recorded against our net deferred tax asset . our judgments , assumptions , and estimates relative to the current provision for income tax take into account current tax laws , our interpretation of current tax laws , allowable deductions , projected tax credits , and possible outcomes of current and future audits conducted by foreign and domestic tax authorities . we do not recognize a tax benefit unless we conclude that it is more likely than not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position . if the recognition threshold is met , we recognize a tax benefit measured at the largest amount of the tax benefit that , in our judgment , is greater than 50 percent likely to be realized . changes in tax law or our interpretation of tax laws and the resolution of current and future tax audits could significantly impact the amounts provided for income taxes in our financial position and results of operations . our assumptions , judgments , and estimates relative to the value of our net deferred tax asset take into account predictions of the amount and category of future taxable income . actual operating results and the underlying amount and category of income in future years could render our current assumptions , judgments , and estimates of recoverable net deferred taxes inaccurate , thus materially impacting our financial position and results of operations . 29 equity-based compensation in january 2012 , in order to simplify equity grant administration , we changed our practice of granting restricted stock in favor of granting restricted stock units , or rsus , which convert to our common stock upon vesting . there is no material difference between the grant of restricted stock and the grant of rsus to either us or the recipients receiving the grants ; however , in contrast to the granting of restricted stock , no stock will actually be issued under the granting of rsus until the units vest . we do not currently grant stock options . in january 2010 our compensation committee approved certain changes to our historical equity incentive grant practices , with the objective to optimize the company 's performance and retention strength while managing program share usage to improve long-term equity overhang . the change eliminated stock option awards in favor of 100 % restricted stock grants , which for the 2011 and 2010 awards contain vesting provisions that are 50 % service-based and 50 % performance-based . the 2011 and 2010 awards have a four year vesting period , with the performance portion tied to their respective year revenue and adjusted earnings per share targets . for our historical stock option grants , we estimated the fair value on the date of grant using the black-scholes option pricing model . we based our estimate of fair value on certain assumptions ,
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2,613 | for the year ended december 31 , 2019 , we made a net investment in our lease fleet of approximately $ 916.5 million , which primarily includes new railcar additions and railcar modifications , net of deferred profit , and secondary market purchases ; and is net of proceeds from the sales of leased railcars owned more than one year at the time of sale . the leasing group 's lease fleet of 103,705 company-owned railcars was 96.0 % utilized as of december 31 , 2019 , in comparison to a lease fleet utilization of 98.5 % on 99,215 company-owned railcars as of december 31 , 2018 . our company-owned railcars include wholly-owned , partially-owned , and railcars under sale-leaseback arrangements . the total value of the railcar backlog at december 31 , 2019 was $ 1.8 billion , compared to $ 3.6 billion at december 31 , 2018 . the rail products group received orders for 10,220 railcars and delivered 21,960 railcars in 2019 , in comparison to orders for 28,795 railcars and deliveries of 20,105 railcars in 2018 . for the year ended december 31 , 2019 , our return on equity ( `` roe `` ) and pre-tax roe were 5.6 % and 9.0 % ( 1 ) , respectively , in comparison to 4.3 % and 6.3 % ( 1 ) , respectively , for the year ended december 31 , 2018 . for the year ended december 31 , 2019 , we generated operating cash flows from continuing operations and free cash flow of $ 396.7 million and $ 423.3 million ( 1 ) , respectively , in comparison to $ 274.2 million and $ 390.0 million ( 1 ) , respectively , for the year ended december 31 , 2018 . ( 1 ) non-gaap financial measure . see the non-gaap financial measures section within this form 10-k for a reconciliation to the most directly comparable gaap measure and why management believes this measure is useful to management and investors . see `` consolidated results of operations `` and `` segment discussion `` below for additional information regarding our operating results for the year ended december 31 , 2019. see part ii , item 7 of our 2018 annual report on form 10-k for a discussion of our results of operations and liquidity and capital resources as of and for the year ended december 31 , 2018 , including a comparison to the year ended december 31 , 2017 . 28 returns of capital to shareholders for the year ended december 31 , 2019 , returns of capital to shareholders in the form of dividends and share repurchases are summarized below : capital structure updates in connection with the company 's ongoing efforts to optimize its capital structure , in april 2019 , trinity rail leasing 2019 llc ( `` trl-2019 `` ) , a delaware limited liability company and a limited purpose , indirect wholly-owned subsidiary of the company owned through tilc , issued $ 528.3 million of trl-2019 secured railcar equipment notes . in october 2019 , trl-2019 issued an additional $ 386.5 million of trl-2019 secured railcar equipment notes , consisting of two classes of notes . these notes have a stated final maturity date of 2049. see `` liquidity and capital resources `` below for further information regarding these activities . litigation updates see note 15 of the consolidated financial statements for an update on the status of our highway products litigation . cyclical and seasonal trends impacting our business the industries in which we operate are cyclical in nature . weaknesses in certain sectors of the north american and global economy may make it more difficult to sell or lease certain types of railcars . additionally , adverse changes in commodity prices or lower demand for certain commodities could result in a decline in customer demand for various types of railcars . we continuously assess demand for our products and services and take steps to rationalize and diversify our leased railcar portfolio and align our manufacturing capacity appropriately . we diligently evaluate the creditworthiness of our customers and monitor performance of relevant market sectors ; however , weaknesses in any of these market sectors could affect the financial viability of our underlying leasing group customers , which could negatively impact our recurring leasing revenues and operating profits . due to their transactional nature , railcar sales from the lease fleet are the primary driver of fluctuations in results in the leasing group . results in our all other group are affected by seasonal fluctuations , with the second and third quarters historically being the quarters with the highest revenues . 29 recent market developments demand for railcars weakened in 2019 due to uncertainty associated with global tariffs and trade policies and declining industrial production . these economic factors , combined with declining railcar loading volumes and a growing supply of underutilized railcar assets in north america , are pressuring railcar lease rates and utilization , as well as orders for new railcar equipment . we currently expect this trend to continue in the near term . we believe that our integrated rail platform is designed to respond to cyclical changes in demand and perform throughout the railcar cycle . restructuring activities in the fourth quarter of 2019 , we implemented the initial phase of efforts to streamline certain functions to support our rail-focused strategy and to begin disposing of underutilized assets and facilities . in connection with our assessment of future needs to support our go-forward business strategy , we recognized a restructuring charge of approximately $ 14.7 million , primarily from write-downs related to underutilized assets associated with our non-operational facilities , and employee transition costs . we estimate that these actions will generate future annualized cost savings of approximately $ 8 million to $ 10 million . we expect to identify additional streamlining and cost savings opportunities in 2020 . story_separator_special_tag replace_table_token_20_th the changes in our operating assets and liabilities resulted in a net use of $ 79.0 million for the year ended december 31 , 2019 , compared to a net use of $ 142.5 million for the year ended december 31 , 2018 , primarily as a result of improved working capital management . investing activities . net cash used in investing activities from continuing operations for the year ended december 31 , 2019 was $ 993.3 million compared to $ 412.3 million for the year ended december 31 , 2018 . significant investing activities are as follows : we made a net investment in the lease fleet of $ 916.5 million during the year ended december 31 , 2019 , compared to $ 717.8 million in the prior year period . our net investment in the lease fleet primarily includes new railcar additions and railcar modifications , net of deferred profit , and secondary market purchases ; and is net of proceeds from the sales of leased railcars owned more than one year at the time of sale . short-term marketable securities decreased by $ 319.5 million for the year ended december 31 , 2018 . there were no investing activities related to short-term marketable securities during the year ended december 31 , 2019 . financing activities . story_separator_special_tag through tilc , tilc 's warehouse loan facility , and our revolving credit facility . after libor is phased out , the interest rates for these obligations might be subject to change . the replacement of libor with an alternative benchmark reference rate may adversely affect interest rates and result in higher borrowing costs under these agreements and any future agreements . 41 contractual obligation and commercial commitments as of december 31 , 2019 , we had the following contractual obligations and commercial commitments : replace_table_token_21_th ( 1 ) excludes unamortized discount and debt issuance costs . ( 2 ) includes fixed rate interest obligations and interest on variable rate debt based on the outstanding balances and the applicable rates at december 31 , 2019 . ( 3 ) includes $ 483.8 million in purchase obligations for raw materials and components , primarily by the rail products group . as of december 31 , 2019 and 2018 , we had $ 5.0 million and $ 11.8 million , respectively , of tax liabilities , including interest and penalties , related to uncertain tax positions . because of the high degree of uncertainty regarding the timing of future cash outflows associated with these liabilities , we are unable to estimate the years in which settlement will occur with the respective taxing authorities , and , accordingly , such amounts are excluded from the table above . see note 9 of the consolidated financial statements . on september 4 , 2019 , our board of directors approved the termination of the pension plan , effective december 31 , 2019. the pension plan is expected to be settled between late 2020 and early 2021 , subject to required governmental approvals . any potential cash contribution that may be required to settle all of the pension plan 's obligations , is not expected to exceed $ 15.0 million and is excluded from the table above . see note 10 of the consolidated financial statements . 42 critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations discusses our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the u.s. the preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , the disclosure of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenues and expenses during the reporting period . management bases its estimates and judgments on historical experience and on various other factors that are believed to be 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 . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies , among others , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . estimate description judgment and or uncertainty potential impact if results differ income taxes we account for income taxes under the asset and liability method prescribed by asc 740. deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases and other tax attributes using currently enacted tax rates . the effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date . our net deferred tax liabilities totaled $ 780.1 million as of december 31 , 2019 , which includes valuation allowances of $ 19.5 million . for further information regarding income taxes , see note 9 of the consolidated financial statements . management is required to estimate the timing of the recognition of deferred tax assets and liabilities , make assumptions about the future deductibility of deferred tax assets and assess deferred tax liabilities based on enacted law and tax rates for the appropriate tax jurisdictions to determine the amount of such deferred tax assets and liabilities . we assess whether a valuation allowance should be established against deferred tax assets based on consideration of all available evidence , both positive and negative , using a more likely than not standard . this assessment considers , among other matters : the nature , frequency and severity of recent losses ; a forecast of future profitability ; the duration of statutory carryback and carryforward periods ; our
| net cash provided by financing activities during the year ended december 31 , 2019 was $ 526.5 million compared to $ 291.1 million of cash used in financing activities for the same period in 2018 . significant financing activities are as follows : during the year ended december 31 , 2019 , we had total borrowings of $ 2,567.8 million and total repayments of $ 1,724.1 million , for net proceeds of $ 843.7 million , primarily to support our investment in the lease fleet and for general and corporate purposes . during the year ended december 31 , 2018 , we had total borrowings of $ 1,206.6 million and total repayments of $ 887.8 million , for net proceeds of $ 318.8 million , primarily related to proceeds from the issuance of debt in support of our investment in the lease fleet , partially offset by the cash settlement of our then-outstanding convertible notes of $ 646.6 million . we paid $ 82.1 million and $ 77.4 million in dividends to our common stockholders during the year ended december 31 , 2019 and 2018 , respectively . 39 we repurchased common stock under our authorized share repurchase programs totaling $ 224.7 million and $ 506.1 million during the year ended december 31 , 2019 and 2018 , respectively . the cash outlay for shares repurchased during year ended december 31 , 2019 excludes approximately $ 70.0 million related to the repurchased shares that were funded in november 2018 under the asr program but delivered in the first quarter of 2019. current debt obligations please refer to note 8 of the consolidated financial statements for a description of our current debt obligations . capital expenditures capital expenditures for 2019 were $ 1,219.2 million with $ 1,122.2 million utilized for net lease fleet additions , which includes new railcar additions and railcar modifications , net of deferred profit , and secondary market purchases . excluding proceeds from the sales of leased railcars owned more than one year of $ 205.7 million , our net investment in the lease fleet was $ 916.5 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.
```net cash provided by financing activities during the year ended december 31 , 2019 was $ 526.5 million compared to $ 291.1 million of cash used in financing activities for the same period in 2018 . significant financing activities are as follows : during the year ended december 31 , 2019 , we had total borrowings of $ 2,567.8 million and total repayments of $ 1,724.1 million , for net proceeds of $ 843.7 million , primarily to support our investment in the lease fleet and for general and corporate purposes . during the year ended december 31 , 2018 , we had total borrowings of $ 1,206.6 million and total repayments of $ 887.8 million , for net proceeds of $ 318.8 million , primarily related to proceeds from the issuance of debt in support of our investment in the lease fleet , partially offset by the cash settlement of our then-outstanding convertible notes of $ 646.6 million . we paid $ 82.1 million and $ 77.4 million in dividends to our common stockholders during the year ended december 31 , 2019 and 2018 , respectively . 39 we repurchased common stock under our authorized share repurchase programs totaling $ 224.7 million and $ 506.1 million during the year ended december 31 , 2019 and 2018 , respectively . the cash outlay for shares repurchased during year ended december 31 , 2019 excludes approximately $ 70.0 million related to the repurchased shares that were funded in november 2018 under the asr program but delivered in the first quarter of 2019. current debt obligations please refer to note 8 of the consolidated financial statements for a description of our current debt obligations . capital expenditures capital expenditures for 2019 were $ 1,219.2 million with $ 1,122.2 million utilized for net lease fleet additions , which includes new railcar additions and railcar modifications , net of deferred profit , and secondary market purchases . excluding proceeds from the sales of leased railcars owned more than one year of $ 205.7 million , our net investment in the lease fleet was $ 916.5 million .
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Suspicious Activity Report : for the year ended december 31 , 2019 , we made a net investment in our lease fleet of approximately $ 916.5 million , which primarily includes new railcar additions and railcar modifications , net of deferred profit , and secondary market purchases ; and is net of proceeds from the sales of leased railcars owned more than one year at the time of sale . the leasing group 's lease fleet of 103,705 company-owned railcars was 96.0 % utilized as of december 31 , 2019 , in comparison to a lease fleet utilization of 98.5 % on 99,215 company-owned railcars as of december 31 , 2018 . our company-owned railcars include wholly-owned , partially-owned , and railcars under sale-leaseback arrangements . the total value of the railcar backlog at december 31 , 2019 was $ 1.8 billion , compared to $ 3.6 billion at december 31 , 2018 . the rail products group received orders for 10,220 railcars and delivered 21,960 railcars in 2019 , in comparison to orders for 28,795 railcars and deliveries of 20,105 railcars in 2018 . for the year ended december 31 , 2019 , our return on equity ( `` roe `` ) and pre-tax roe were 5.6 % and 9.0 % ( 1 ) , respectively , in comparison to 4.3 % and 6.3 % ( 1 ) , respectively , for the year ended december 31 , 2018 . for the year ended december 31 , 2019 , we generated operating cash flows from continuing operations and free cash flow of $ 396.7 million and $ 423.3 million ( 1 ) , respectively , in comparison to $ 274.2 million and $ 390.0 million ( 1 ) , respectively , for the year ended december 31 , 2018 . ( 1 ) non-gaap financial measure . see the non-gaap financial measures section within this form 10-k for a reconciliation to the most directly comparable gaap measure and why management believes this measure is useful to management and investors . see `` consolidated results of operations `` and `` segment discussion `` below for additional information regarding our operating results for the year ended december 31 , 2019. see part ii , item 7 of our 2018 annual report on form 10-k for a discussion of our results of operations and liquidity and capital resources as of and for the year ended december 31 , 2018 , including a comparison to the year ended december 31 , 2017 . 28 returns of capital to shareholders for the year ended december 31 , 2019 , returns of capital to shareholders in the form of dividends and share repurchases are summarized below : capital structure updates in connection with the company 's ongoing efforts to optimize its capital structure , in april 2019 , trinity rail leasing 2019 llc ( `` trl-2019 `` ) , a delaware limited liability company and a limited purpose , indirect wholly-owned subsidiary of the company owned through tilc , issued $ 528.3 million of trl-2019 secured railcar equipment notes . in october 2019 , trl-2019 issued an additional $ 386.5 million of trl-2019 secured railcar equipment notes , consisting of two classes of notes . these notes have a stated final maturity date of 2049. see `` liquidity and capital resources `` below for further information regarding these activities . litigation updates see note 15 of the consolidated financial statements for an update on the status of our highway products litigation . cyclical and seasonal trends impacting our business the industries in which we operate are cyclical in nature . weaknesses in certain sectors of the north american and global economy may make it more difficult to sell or lease certain types of railcars . additionally , adverse changes in commodity prices or lower demand for certain commodities could result in a decline in customer demand for various types of railcars . we continuously assess demand for our products and services and take steps to rationalize and diversify our leased railcar portfolio and align our manufacturing capacity appropriately . we diligently evaluate the creditworthiness of our customers and monitor performance of relevant market sectors ; however , weaknesses in any of these market sectors could affect the financial viability of our underlying leasing group customers , which could negatively impact our recurring leasing revenues and operating profits . due to their transactional nature , railcar sales from the lease fleet are the primary driver of fluctuations in results in the leasing group . results in our all other group are affected by seasonal fluctuations , with the second and third quarters historically being the quarters with the highest revenues . 29 recent market developments demand for railcars weakened in 2019 due to uncertainty associated with global tariffs and trade policies and declining industrial production . these economic factors , combined with declining railcar loading volumes and a growing supply of underutilized railcar assets in north america , are pressuring railcar lease rates and utilization , as well as orders for new railcar equipment . we currently expect this trend to continue in the near term . we believe that our integrated rail platform is designed to respond to cyclical changes in demand and perform throughout the railcar cycle . restructuring activities in the fourth quarter of 2019 , we implemented the initial phase of efforts to streamline certain functions to support our rail-focused strategy and to begin disposing of underutilized assets and facilities . in connection with our assessment of future needs to support our go-forward business strategy , we recognized a restructuring charge of approximately $ 14.7 million , primarily from write-downs related to underutilized assets associated with our non-operational facilities , and employee transition costs . we estimate that these actions will generate future annualized cost savings of approximately $ 8 million to $ 10 million . we expect to identify additional streamlining and cost savings opportunities in 2020 . story_separator_special_tag replace_table_token_20_th the changes in our operating assets and liabilities resulted in a net use of $ 79.0 million for the year ended december 31 , 2019 , compared to a net use of $ 142.5 million for the year ended december 31 , 2018 , primarily as a result of improved working capital management . investing activities . net cash used in investing activities from continuing operations for the year ended december 31 , 2019 was $ 993.3 million compared to $ 412.3 million for the year ended december 31 , 2018 . significant investing activities are as follows : we made a net investment in the lease fleet of $ 916.5 million during the year ended december 31 , 2019 , compared to $ 717.8 million in the prior year period . our net investment in the lease fleet primarily includes new railcar additions and railcar modifications , net of deferred profit , and secondary market purchases ; and is net of proceeds from the sales of leased railcars owned more than one year at the time of sale . short-term marketable securities decreased by $ 319.5 million for the year ended december 31 , 2018 . there were no investing activities related to short-term marketable securities during the year ended december 31 , 2019 . financing activities . story_separator_special_tag through tilc , tilc 's warehouse loan facility , and our revolving credit facility . after libor is phased out , the interest rates for these obligations might be subject to change . the replacement of libor with an alternative benchmark reference rate may adversely affect interest rates and result in higher borrowing costs under these agreements and any future agreements . 41 contractual obligation and commercial commitments as of december 31 , 2019 , we had the following contractual obligations and commercial commitments : replace_table_token_21_th ( 1 ) excludes unamortized discount and debt issuance costs . ( 2 ) includes fixed rate interest obligations and interest on variable rate debt based on the outstanding balances and the applicable rates at december 31 , 2019 . ( 3 ) includes $ 483.8 million in purchase obligations for raw materials and components , primarily by the rail products group . as of december 31 , 2019 and 2018 , we had $ 5.0 million and $ 11.8 million , respectively , of tax liabilities , including interest and penalties , related to uncertain tax positions . because of the high degree of uncertainty regarding the timing of future cash outflows associated with these liabilities , we are unable to estimate the years in which settlement will occur with the respective taxing authorities , and , accordingly , such amounts are excluded from the table above . see note 9 of the consolidated financial statements . on september 4 , 2019 , our board of directors approved the termination of the pension plan , effective december 31 , 2019. the pension plan is expected to be settled between late 2020 and early 2021 , subject to required governmental approvals . any potential cash contribution that may be required to settle all of the pension plan 's obligations , is not expected to exceed $ 15.0 million and is excluded from the table above . see note 10 of the consolidated financial statements . 42 critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations discusses our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the u.s. the preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , the disclosure of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenues and expenses during the reporting period . management bases its estimates and judgments on historical experience and on various other factors that are believed to be 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 . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies , among others , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . estimate description judgment and or uncertainty potential impact if results differ income taxes we account for income taxes under the asset and liability method prescribed by asc 740. deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases and other tax attributes using currently enacted tax rates . the effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date . our net deferred tax liabilities totaled $ 780.1 million as of december 31 , 2019 , which includes valuation allowances of $ 19.5 million . for further information regarding income taxes , see note 9 of the consolidated financial statements . management is required to estimate the timing of the recognition of deferred tax assets and liabilities , make assumptions about the future deductibility of deferred tax assets and assess deferred tax liabilities based on enacted law and tax rates for the appropriate tax jurisdictions to determine the amount of such deferred tax assets and liabilities . we assess whether a valuation allowance should be established against deferred tax assets based on consideration of all available evidence , both positive and negative , using a more likely than not standard . this assessment considers , among other matters : the nature , frequency and severity of recent losses ; a forecast of future profitability ; the duration of statutory carryback and carryforward periods ; our
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2,614 | our products include vertical cavity surface emitting lasers ( “ vcsels ” ) and edge emitting lasers which are used in 3d sensing depth imaging systems . these systems simplify the way people interact with technology by enabling the use of natural user interfaces . systems are used for biometric identification , surveillance , and process efficiency , among numerous other application spaces . emerging applications for this technology include various mobile device applications , autonomous vehicles , self-navigating robotics and drones in industrial applications and 3d capture of objects coupled with 3d printing . in addition , our industrial diode lasers are used primarily as pump sources for pulsed and kilowatt class fiber lasers . our opcomms customers include alphabet , apple , ciena , cisco systems ( which announced the acquisition of acacia communications , another customer of ours ) , huawei technologies ( including hisilicon ) , infinera , innolight , nokia networks ( including alcatel-lucent international ) , o-net , and zte . 35 following the acquisition of oclaro , during our fiscal 2019 , we made several strategic changes to our opcomms business to better position it for growth and profitability . these changes included attaining acquisition cost synergies related to redundant capabilities and divestiture of telecom lithium niobate modulators and datacom transceiver modules because of their muted growth and profitability trends . these changes were substantially completed in fiscal 2020. we expect our indium phosphide photonic integrated circuits will continue to replace lithium niobate modulators over time and focusing on the development and sale of datacom chips has enabled us to participate in the growth of the datacom and 5g wireless markets . related to the strategic changes in our opcomms business , we entered into two strategic transactions to sell some of the discontinued product lines . in the second quarter of fiscal year 2020 , we entered into an agreement with advanced fiber resources ( zhuhai ) ltd. ( “ afr ” ) , a leading provider of passive optical components , to sell the assets associated with certain lithium niobate product lines manufactured by our san donato site for $ 17.0 million . the transaction was closed in the third quarter of fiscal year 2020. for further information regarding this transaction , refer to “ note 5. assets and liabilities held for sale ” in the notes to consolidated financial statements . on april 18 , 2019 , we closed a transaction selling many of our datacom transceiver module product lines to cambridge industries group ( “ cig ” ) . for further information regarding this transaction , refer to “ note 4. business combinations ” in the notes to consolidated financial statements . lasers our lasers products serve our customers in markets and applications such as sheet metal processing , general manufacturing , biotechnology , graphics and imaging , remote sensing , and precision machining such as drilling in printed circuit boards , wafer singulation , glass cutting and solar cell scribing . our lasers products are used in a variety of oem applications including diode-pumped solid-state , fiber , diode , direct-diode and gas lasers such as argon-ion and helium-neon lasers . fiber lasers provide kw-class output powers combined with excellent beam quality and are used in sheet metal processing and metal welding applications . diode-pumped solid-state lasers provide excellent beam quality , low noise and exceptional reliability and are used in biotechnology , graphics and imaging , remote sensing , materials processing and precision machining applications . diode and direct-diode lasers address a wide variety of applications , including laser pumping , thermal exposure , illumination , ophthalmology , image recording , printing , plastic welding and selective soldering . gas lasers such as argon-ion and helium-neon lasers provide a stable , low-cost and reliable solution over a wide range of operating conditions , making them well-suited for complex , high-resolution oem applications such as flow cytometry , dna sequencing , graphics and imaging and semiconductor inspection . we also provide high-powered and ultrafast lasers for the industrial and scientific markets . manufacturers use high-power , ultrafast lasers to create micro parts for consumer electronics and to process semiconductor , led , and other types of chips . use of ultrafast lasers for micromachining applications is being driven primarily by the increasing use of consumer electronics and connected devices globally . our lasers customers include amada , asml holding , beckman coulter , disco , electro scientific industries ( recently acquired by mks instruments , a competitor of ours ) , han 's laser technology , kla-tencor , lasertec , life technologies , and nr electric . impact of covid-19 to our business the outbreak of the covid-19 has been declared a pandemic by the world health organization and continues to spread globally . the spread of covid-19 has caused public health officials to recommend , and governments to enact , precautions to mitigate the spread of the virus , including travel restrictions and bans , extensive social distancing guidelines and issuing a “ shelter-in-place ” order in many regions of the world . the pandemic and these related responses have caused , and are expected to continue to cause a global slowdown of economic activity ( including the decrease in demand for a broad variety of goods and services ) , disruptions in global supply chains and significant volatility and disruption of financial markets . we have adopted several measures in response to the covid-19 outbreak including complying with local , state or federal orders that require employees to work from home , instructing employees to work from home in certain jurisdictions , limiting the number of employees onsite which slowed our manufacturing operations in certain countries , enhanced use of personal protective equipment and restricting non-critical business travel by our employees . story_separator_special_tag unanticipated events and circumstances may occur that affect the accuracy of our assumptions , estimates and judgments . for example , if the price of our common stock were to significantly decrease combined with other adverse changes in market conditions , thus indicating that the underlying fair value of our reporting units may have decreased , we might be required to reassess the value of our goodwill in the period such circumstances were identified . if we determine that as a result of the qualitative assessment that it is more likely than not ( i.e . , greater than 50 % likelihood ) that the fair value of a reporting unit is less than its carrying amount , then the quantitative test is required . otherwise , no further testing is required . the quantitative goodwill impairment test requires us to estimate the fair value of our reporting units . if the carrying value of a reporting unit exceeds its fair value , the goodwill of that reporting unit is potentially impaired and we record an impairment loss equal to the excess of the carrying value of the reporting unit 's goodwill over its fair value , not to exceed the carrying amount of goodwill . the fair value of each of our goodwill reporting units is generally estimated using a combination of public company multiples and discounted cash flow methodologies . 40 based on the impairment analysis performed in the fourth quarter of each year presented , the fair value of our reporting units substantially exceeded the carrying value ; as such , our annual qualitative assessment did not indicate that a more detailed quantitative analysis was necessary . in many cases , the accounting treatment of a particular transaction is specifically dictated by gaap and does not require management 's judgment in its application . there are also areas in which management 's judgment in selecting among available alternatives would not produce a materially different result . our senior management has reviewed our critical accounting policies and related disclosures with the audit committee of our board of directors . recently issued accounting pronouncements refer to “ note 2. recently issued accounting pronouncements ” in the notes to consolidated financial statements . results of operations the results of operations for the periods presented are not necessarily indicative of results to be expected for future periods . the following table summarizes selected consolidated statements of operations items as a percentage of net revenue : 41 replace_table_token_5_th 42 financial data for fiscal 2020 , 2019 and 2018 the following table summarizes selected consolidated statements of operations items ( in millions , except for percentages ) : replace_table_token_6_th net revenue net revenue increased by $ 113.3 million , or 7.2 % , during fiscal 2020 compared to fiscal 2019. this increase was primarily due to the increased sales of telecom and datacom of $ 68.9 million and consumer and industrial of $ 76.0 million , offset by decreased sales of lasers of $ 31.6 million . opcomms net revenue increased by $ 144.9 million , or 10.6 % , during fiscal 2020 compared to fiscal 2019 , primarily driven by increased sales of telecom and datacom products , driven by the acquisition of oclaro , as well as increased sales in 3d sensing products for mobile devices . lasers net revenue decreased by $ 31.6 million , or 16.2 % , during fiscal 2020 compared to fiscal 2019 , primarily due to decreased sales of our kilowatt class fiber lasers . net revenue increased by $ 317.6 million , or 25.5 % , during fiscal 2019 compared to fiscal 2018. this increase was primarily due to the acquisition of oclaro , which closed in december 2018 , and organic growth in our telecom business . opcomms net revenue increased by $ 311.0 million , or 29.4 % , during fiscal 2019 compared to fiscal 2018 , primarily driven by increased sales of telecom products of $ 310.2 million , specifically roadm products . opcomms net revenue in fiscal 2019 includes $ 250.1 million from the acquisition of oclaro from the date of closing . 43 lasers net revenue increased by $ 6.6 million , or 3.5 % , during fiscal 2019 compared to fiscal 2018 , primarily due to increased sales of our kilowatt class fiber lasers , offset by lower sales of our solid state lasers products . during our fiscal 2020 , 2019 , and 2018 , net revenue generated from a single customer which represented 10 % or greater of total net revenue is summarized as follows : replace_table_token_7_th revenue by region we operate in three geographic regions : americas , asia-pacific and emea . net revenue is assigned to the geographic region and country where our product is initially shipped . for example , certain customers may request shipment of our product to a contract manufacturer in one country , however , the location of the end customers may differ . the following table presents net revenue by the three geographic regions we operate in and net revenue from countries within those regions that represented 10 % or more of our total net revenue ( in millions , except for percentages ) : replace_table_token_8_th during fiscal 2020 , 2019 and 2018 , net revenue from customers outside the united states , based on customer shipping location , represented 91.1 % , 93.6 % and 90.8 % of net revenue , respectively . 44 gross margin and segment gross margin the following table summarizes segment gross margin for fiscal 2020 , 2019 and 2018 ( in millions , except for percentages ) : replace_table_token_9_th ( 1 ) in fiscal 2020 and 2019 , we recorded inventory and fixed assets write down charges of $ 7.0 million and $ 20.8 million related to the decision to exit the datacom module and lithium niobate product lines . ( 2 ) “ other charges ” of unallocated corporate items for the year
| cash provided by operating activities of $ 524.3 million during the year ended june 27 , 2020 , primarily resulted from $ 323.4 million of non-cash items ( such as depreciation , stock-based compensation , amortization of intangibles , amortization of debt discount and debt issuance costs on our term loan and the notes , and other non-cash items ) , net income of $ 135.5 million , and $ 65.4 million of changes in our operating assets and liabilities . cash used in investing activities of $ 987.7 million during the year ended june 27 , 2020 , was primarily attributable to purchases of short-term investments , net of sales and maturities of $ 917.8 million . in addition , we had capital expenditures of $ 86.0 million , payment for asset acquisition of $ 4.0 million , offset by proceeds from sales of product lines of $ 20.1 million . cash provided by financing activities of $ 328.8 million during the year ended june 27 , 2020 , primarily resulted from the proceeds of the issuance of the 2026 notes of $ 1,042.2 million , net of issuance costs , offset by repayment of our term loan facility of $ 497.5 million and the repurchase of shares of our common stock of $ 200.0 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.
```cash provided by operating activities of $ 524.3 million during the year ended june 27 , 2020 , primarily resulted from $ 323.4 million of non-cash items ( such as depreciation , stock-based compensation , amortization of intangibles , amortization of debt discount and debt issuance costs on our term loan and the notes , and other non-cash items ) , net income of $ 135.5 million , and $ 65.4 million of changes in our operating assets and liabilities . cash used in investing activities of $ 987.7 million during the year ended june 27 , 2020 , was primarily attributable to purchases of short-term investments , net of sales and maturities of $ 917.8 million . in addition , we had capital expenditures of $ 86.0 million , payment for asset acquisition of $ 4.0 million , offset by proceeds from sales of product lines of $ 20.1 million . cash provided by financing activities of $ 328.8 million during the year ended june 27 , 2020 , primarily resulted from the proceeds of the issuance of the 2026 notes of $ 1,042.2 million , net of issuance costs , offset by repayment of our term loan facility of $ 497.5 million and the repurchase of shares of our common stock of $ 200.0 million .
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Suspicious Activity Report : our products include vertical cavity surface emitting lasers ( “ vcsels ” ) and edge emitting lasers which are used in 3d sensing depth imaging systems . these systems simplify the way people interact with technology by enabling the use of natural user interfaces . systems are used for biometric identification , surveillance , and process efficiency , among numerous other application spaces . emerging applications for this technology include various mobile device applications , autonomous vehicles , self-navigating robotics and drones in industrial applications and 3d capture of objects coupled with 3d printing . in addition , our industrial diode lasers are used primarily as pump sources for pulsed and kilowatt class fiber lasers . our opcomms customers include alphabet , apple , ciena , cisco systems ( which announced the acquisition of acacia communications , another customer of ours ) , huawei technologies ( including hisilicon ) , infinera , innolight , nokia networks ( including alcatel-lucent international ) , o-net , and zte . 35 following the acquisition of oclaro , during our fiscal 2019 , we made several strategic changes to our opcomms business to better position it for growth and profitability . these changes included attaining acquisition cost synergies related to redundant capabilities and divestiture of telecom lithium niobate modulators and datacom transceiver modules because of their muted growth and profitability trends . these changes were substantially completed in fiscal 2020. we expect our indium phosphide photonic integrated circuits will continue to replace lithium niobate modulators over time and focusing on the development and sale of datacom chips has enabled us to participate in the growth of the datacom and 5g wireless markets . related to the strategic changes in our opcomms business , we entered into two strategic transactions to sell some of the discontinued product lines . in the second quarter of fiscal year 2020 , we entered into an agreement with advanced fiber resources ( zhuhai ) ltd. ( “ afr ” ) , a leading provider of passive optical components , to sell the assets associated with certain lithium niobate product lines manufactured by our san donato site for $ 17.0 million . the transaction was closed in the third quarter of fiscal year 2020. for further information regarding this transaction , refer to “ note 5. assets and liabilities held for sale ” in the notes to consolidated financial statements . on april 18 , 2019 , we closed a transaction selling many of our datacom transceiver module product lines to cambridge industries group ( “ cig ” ) . for further information regarding this transaction , refer to “ note 4. business combinations ” in the notes to consolidated financial statements . lasers our lasers products serve our customers in markets and applications such as sheet metal processing , general manufacturing , biotechnology , graphics and imaging , remote sensing , and precision machining such as drilling in printed circuit boards , wafer singulation , glass cutting and solar cell scribing . our lasers products are used in a variety of oem applications including diode-pumped solid-state , fiber , diode , direct-diode and gas lasers such as argon-ion and helium-neon lasers . fiber lasers provide kw-class output powers combined with excellent beam quality and are used in sheet metal processing and metal welding applications . diode-pumped solid-state lasers provide excellent beam quality , low noise and exceptional reliability and are used in biotechnology , graphics and imaging , remote sensing , materials processing and precision machining applications . diode and direct-diode lasers address a wide variety of applications , including laser pumping , thermal exposure , illumination , ophthalmology , image recording , printing , plastic welding and selective soldering . gas lasers such as argon-ion and helium-neon lasers provide a stable , low-cost and reliable solution over a wide range of operating conditions , making them well-suited for complex , high-resolution oem applications such as flow cytometry , dna sequencing , graphics and imaging and semiconductor inspection . we also provide high-powered and ultrafast lasers for the industrial and scientific markets . manufacturers use high-power , ultrafast lasers to create micro parts for consumer electronics and to process semiconductor , led , and other types of chips . use of ultrafast lasers for micromachining applications is being driven primarily by the increasing use of consumer electronics and connected devices globally . our lasers customers include amada , asml holding , beckman coulter , disco , electro scientific industries ( recently acquired by mks instruments , a competitor of ours ) , han 's laser technology , kla-tencor , lasertec , life technologies , and nr electric . impact of covid-19 to our business the outbreak of the covid-19 has been declared a pandemic by the world health organization and continues to spread globally . the spread of covid-19 has caused public health officials to recommend , and governments to enact , precautions to mitigate the spread of the virus , including travel restrictions and bans , extensive social distancing guidelines and issuing a “ shelter-in-place ” order in many regions of the world . the pandemic and these related responses have caused , and are expected to continue to cause a global slowdown of economic activity ( including the decrease in demand for a broad variety of goods and services ) , disruptions in global supply chains and significant volatility and disruption of financial markets . we have adopted several measures in response to the covid-19 outbreak including complying with local , state or federal orders that require employees to work from home , instructing employees to work from home in certain jurisdictions , limiting the number of employees onsite which slowed our manufacturing operations in certain countries , enhanced use of personal protective equipment and restricting non-critical business travel by our employees . story_separator_special_tag unanticipated events and circumstances may occur that affect the accuracy of our assumptions , estimates and judgments . for example , if the price of our common stock were to significantly decrease combined with other adverse changes in market conditions , thus indicating that the underlying fair value of our reporting units may have decreased , we might be required to reassess the value of our goodwill in the period such circumstances were identified . if we determine that as a result of the qualitative assessment that it is more likely than not ( i.e . , greater than 50 % likelihood ) that the fair value of a reporting unit is less than its carrying amount , then the quantitative test is required . otherwise , no further testing is required . the quantitative goodwill impairment test requires us to estimate the fair value of our reporting units . if the carrying value of a reporting unit exceeds its fair value , the goodwill of that reporting unit is potentially impaired and we record an impairment loss equal to the excess of the carrying value of the reporting unit 's goodwill over its fair value , not to exceed the carrying amount of goodwill . the fair value of each of our goodwill reporting units is generally estimated using a combination of public company multiples and discounted cash flow methodologies . 40 based on the impairment analysis performed in the fourth quarter of each year presented , the fair value of our reporting units substantially exceeded the carrying value ; as such , our annual qualitative assessment did not indicate that a more detailed quantitative analysis was necessary . in many cases , the accounting treatment of a particular transaction is specifically dictated by gaap and does not require management 's judgment in its application . there are also areas in which management 's judgment in selecting among available alternatives would not produce a materially different result . our senior management has reviewed our critical accounting policies and related disclosures with the audit committee of our board of directors . recently issued accounting pronouncements refer to “ note 2. recently issued accounting pronouncements ” in the notes to consolidated financial statements . results of operations the results of operations for the periods presented are not necessarily indicative of results to be expected for future periods . the following table summarizes selected consolidated statements of operations items as a percentage of net revenue : 41 replace_table_token_5_th 42 financial data for fiscal 2020 , 2019 and 2018 the following table summarizes selected consolidated statements of operations items ( in millions , except for percentages ) : replace_table_token_6_th net revenue net revenue increased by $ 113.3 million , or 7.2 % , during fiscal 2020 compared to fiscal 2019. this increase was primarily due to the increased sales of telecom and datacom of $ 68.9 million and consumer and industrial of $ 76.0 million , offset by decreased sales of lasers of $ 31.6 million . opcomms net revenue increased by $ 144.9 million , or 10.6 % , during fiscal 2020 compared to fiscal 2019 , primarily driven by increased sales of telecom and datacom products , driven by the acquisition of oclaro , as well as increased sales in 3d sensing products for mobile devices . lasers net revenue decreased by $ 31.6 million , or 16.2 % , during fiscal 2020 compared to fiscal 2019 , primarily due to decreased sales of our kilowatt class fiber lasers . net revenue increased by $ 317.6 million , or 25.5 % , during fiscal 2019 compared to fiscal 2018. this increase was primarily due to the acquisition of oclaro , which closed in december 2018 , and organic growth in our telecom business . opcomms net revenue increased by $ 311.0 million , or 29.4 % , during fiscal 2019 compared to fiscal 2018 , primarily driven by increased sales of telecom products of $ 310.2 million , specifically roadm products . opcomms net revenue in fiscal 2019 includes $ 250.1 million from the acquisition of oclaro from the date of closing . 43 lasers net revenue increased by $ 6.6 million , or 3.5 % , during fiscal 2019 compared to fiscal 2018 , primarily due to increased sales of our kilowatt class fiber lasers , offset by lower sales of our solid state lasers products . during our fiscal 2020 , 2019 , and 2018 , net revenue generated from a single customer which represented 10 % or greater of total net revenue is summarized as follows : replace_table_token_7_th revenue by region we operate in three geographic regions : americas , asia-pacific and emea . net revenue is assigned to the geographic region and country where our product is initially shipped . for example , certain customers may request shipment of our product to a contract manufacturer in one country , however , the location of the end customers may differ . the following table presents net revenue by the three geographic regions we operate in and net revenue from countries within those regions that represented 10 % or more of our total net revenue ( in millions , except for percentages ) : replace_table_token_8_th during fiscal 2020 , 2019 and 2018 , net revenue from customers outside the united states , based on customer shipping location , represented 91.1 % , 93.6 % and 90.8 % of net revenue , respectively . 44 gross margin and segment gross margin the following table summarizes segment gross margin for fiscal 2020 , 2019 and 2018 ( in millions , except for percentages ) : replace_table_token_9_th ( 1 ) in fiscal 2020 and 2019 , we recorded inventory and fixed assets write down charges of $ 7.0 million and $ 20.8 million related to the decision to exit the datacom module and lithium niobate product lines . ( 2 ) “ other charges ” of unallocated corporate items for the year
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2,615 | are made to customers located outside of the united states , primarily in asia . sales to customers in asia represented approximately 95 % , 90 % and 88 % of our net revenue for fiscal 2014 , 2013 and 2012 , respectively . because many manufacturers and manufacturing subcontractors of our customers are located in asia , we expect that most of our net revenue will continue to be represented by sales to our customers in that region . substantially all of our sales are denominated in u.s. dollars . a significant number of our products are being incorporated into consumer electronics products , including gaming devices and personal computers , which are subject to significant seasonality and fluctuations in demand . holiday and back to school buying trends may at times negatively impact our results in the first and fourth quarter and positively impact our results in the second and third quarter of our fiscal years . in addition , consumer electronics sales are heavily dependent on new product launch timelines and product refreshes . for example , our sales of wireless connectivity products may increase significantly during a period when one of our consumers launches a new gaming console , and these sales may taper significantly after the initial launch period . a relatively large portion of our sales have historically been made on the basis of purchase orders rather than long-term agreements . in addition , the sales cycle for our products is long , which may cause us to experience a delay between the time we incur expenses and the time revenue is generated from these 40 expenditures . we anticipate that the rate of new orders may vary significantly from quarter to quarter . consequently , if anticipated sales and shipments in any quarter do not occur when expected , expenses and inventory levels could be disproportionately high , and our operating results for that quarter and future quarters may be adversely affected . our fiscal year is the 52- or 53-week period ending on the saturday closest to january 31. in a 52-week year , each fiscal quarter consists of 13 weeks . the additional week in a 53-week year is added to the fourth quarter , making such quarter consist of 14 weeks . fiscal 2014 and fiscal 2012 had a 52-week period , and fiscal 2013 had a 53-week period . critical accounting policies and estimates the preparation of consolidated financial statements in conformity with gaap requires management to make estimates , judgments and assumptions 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 performance-based compensation , revenue recognition , provisions for sales returns and allowances , inventory excess and obsolescence , investment fair values , goodwill and other intangible assets , restructuring , income taxes , litigation and other contingencies . in addition , we use assumptions when employing the monte carlo simulation and black-scholes valuation models to calculate the fair value of share-based awards granted . we base our estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that are believed to be reasonable under the circumstances when these carrying values are not readily available from other sources . actual results could differ from these estimates , and such differences could affect the results of operations reported in future periods . we believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . revenue recognition . we recognize revenue when there is persuasive evidence of an arrangement , delivery has occurred , the fee is fixed or determinable , and collection is reasonably assured . product revenue is generally recognized upon shipment of product to customers , net of accruals for estimated sales returns and rebates . however , some of our sales are made through distributors under agreements allowing for price protection , shipped from stock pricing adjustment rights , and limited rights of stock rotation on product unsold by the distributors . although title passes to the distributor upon shipment terms and payment by our distributors is not contingent on resale of the product , product revenue on sales made through distributors with price protection , shipped from stock pricing adjustment rights and stock rotation rights are deferred until the distributors sell the product to end customers . deferred revenue less the related cost of the inventories is reported as deferred income . we do not believe that there is any significant exposure related to impairment of deferred cost of sales , as our historical returns have been minimal and inventory turnover for our distributors generally ranges from 60 to 90 days . our sales to direct customers are made primarily pursuant to standard purchase orders for delivery of products . a portion of our net revenue is derived from sales through third-party logistics providers , who maintain warehouses in close proximity to our customer 's facilities . revenue from sales through these third-party logistics providers is not recognized until the product is pulled from stock by the customer . the provision for estimated sales returns and allowances on product sales is recorded in the same period the related revenues are recorded . these estimates are based on historical sales returns , analysis of credit memo data and other known factors . in addition , quality issues covered by warranties to our customers may be recorded as a reduction of revenue , in cases where the related products are not returned to us and or the amount of the payment is not sufficiently supported by evidence of fair value . actual returns could differ from these estimates . we account for rebates by recording reductions to revenue in the same period that the related revenue is recorded . story_separator_special_tag we expect wireless connectivity and other advanced features in these new game consoles to help drive growth for us in the industry in the upcoming year . in addition , in the smartphone market , we have ongoing 100 % attach rates on our new mobile platforms for our connectivity solutions with our 3g and 4g mobile platforms . we are seeing new opportunities for our connectivity solutions across multiple market segments . 45 in the storage market , we continue to execute well as the overall drive industry seems to have stabilized . we continue to grow within the hdd market as we have seen strong demand for our 500 gigabyte per platter products . in addition , we are seeing increased demand on enterprise drives at a top north america based hdd customer . within the ssd market , our revenue has continued to grow and our strategy of partnering with top tier oems has resulted in excellent traction for our advanced ssd solutions . our pcie ssd solutions are now in mass production and we believe we have a lead in the market . we are also leveraging our technology leadership in hdd and ssd to help our customer migrate to hybrid storage devices . here we are developing a single-chip solution that we believe will drive lower price points and allow the market to grow . we believe this will allow us to further increase our share and solidify our leadership position in the market . in the networking market , we experienced softer than expected demand from some of our enterprise networking customers in fiscal 2014 due to a weaker market overall . we continue to make strong progress with development design activity for our product portfolio addressing the infrastructure portion of the market . we announced our first 28nm network processor and traffic management solutions with our xelerated ax and hx family of products targeting the infrastructure market , where we have engaged with tier-1 customers on these new high-performance products for their next generation networking equipment . we continue to increase our footprint in the service provider market and are benefiting from modest improvements in the enterprise end market . we expect these new initiatives to drive better results starting in the second half of fiscal 2015. our cost of goods sold as a percentage of net revenue in fiscal 2014 was higher compared to fiscal 2013. as we expand our presence and grow revenue in the consumer space , we expect our gross margin to face downward pressure , as these end markets generally have lower average gross margins than the rest of our business . however , we expect growth in the consumer space will result in improvement to total gross margin dollars and operating profit . in addition , we are focused on efforts to improve both aspects of our gross profit , including through cost improvement and pricing . our financial position is strong and we remain committed to deliver shareholder value through our share repurchase and dividend programs . our cash , cash equivalents and short-term investments were $ 2.0 billion at february 1 , 2014 and we generated cash flows from operations of $ 448.0 million in fiscal 2014. we paid a cumulative cash dividend of $ 0.24 per share for a total of $ 119.4 million during fiscal 2014 and we recently announced a dividend of $ 0.06 per share to be paid in the first quarter of fiscal 2015. we repurchased a total of 33.1 million of our common shares for $ 354.1 million in cash during fiscal 2014. we are currently involved in a patent litigation action with carnegie mellon university ( cmu ) ( see risk factors under part i , item 1a of this annual report on form 10-k and note 10 commitments and contingencies in the notes to consolidated financial statements for a further discussion of the risks associated with this matter and other patent litigation matters ) . a jury has awarded past damages of $ 1.17 billion , and cmu has sought pre-judgment damages of up to $ 322 million , post-judgment interest , attorneys ' fees , and an injunction and or ongoing royalties . due to the finding of willfulness during post-trial proceedings , the judge could enhance the damages by an amount up to triple the damages awarded by the jury at trial . we intend to appeal the final judgment and we would seek to stay any award of damages pending the appeal . we strongly believe that we do not infringe on the methods described in the cmu patents and that our products use our own internally developed patented read channel technology . 46 the following table sets forth information derived from our consolidated statements of operations expressed as a percentage of net revenue . replace_table_token_6_th years ended february 1 , 2014 and february 2 , 2013 net revenue year ended february 1 , 2014 february 2 , 2013 % change in 2014 ( in thousands , except percentage ) net revenue $ 3,404,400 $ 3,168,630 7.4 % net revenue is gross revenue , net of accruals for estimated sales returns and rebates . the increase in net revenue during fiscal 2014 was driven by an increase in sales of our storage products , as we continued to see growth for our 500-gigabyte-per-platter products and increased demand for enterprise drives at a top north america based hdd customer . in addition , revenue for solid-state drive controllers increased significantly compared to the prior year , as these products continue to gain traction and popularity . we experienced growth in revenue for our mobile and wireless products in the second half of fiscal 2014 due to successful launches of our new multi-core 3g mobile devices with key oem 's into mobile handsets and tablets . in addition , we saw increased demand for our wireless products driven by the holiday ramp up of new
| net cash provided by operating activities net cash provided by operating activities was $ 448.0 million for fiscal 2014 compared to $ 729.0 million for fiscal 2013 and $ 771.2 million for fiscal 2012. the cash inflows from operations for fiscal 2014 were primarily due to $ 623.0 million of net income adjusted for non-cash items and negative working capital changes of $ 175.0 million . the negative impact on working capital was primarily driven by an increase in accounts receivable from higher revenue levels and higher inventories due to the ramp up of new products . the cash inflows from operations for fiscal 2013 were primarily due to $ 592.0 million of net income adjusted for non-cash items and positive working capital changes of $ 137.0 million . the positive change in working capital for fiscal 2013 was primarily driven by a decrease in inventories due to increased shipment towards the end of the current year and a decrease in accounts receivable due to improved collections in the fourth quarter of fiscal 2013 compared to the fourth quarter of fiscal 2012. the cash inflows from operations for fiscal 2012 were primarily due to $ 884.5 million of net income adjusted for non-cash items . within working capital during fiscal 2012 , accounts receivable decreased due to lower levels of revenue in the fourth quarter of fiscal 2012. inventories increased due primarily to two factors : ( 1 ) the floods in thailand which increased our inventories of hard drive products at the end of fiscal 2012 , and ( 2 ) the increased use of hubs managed by third-party logistics providers . when products are shipped to these third-party managed locations , the inventory remains on our books until pulled by the customer .
| 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 was $ 448.0 million for fiscal 2014 compared to $ 729.0 million for fiscal 2013 and $ 771.2 million for fiscal 2012. the cash inflows from operations for fiscal 2014 were primarily due to $ 623.0 million of net income adjusted for non-cash items and negative working capital changes of $ 175.0 million . the negative impact on working capital was primarily driven by an increase in accounts receivable from higher revenue levels and higher inventories due to the ramp up of new products . the cash inflows from operations for fiscal 2013 were primarily due to $ 592.0 million of net income adjusted for non-cash items and positive working capital changes of $ 137.0 million . the positive change in working capital for fiscal 2013 was primarily driven by a decrease in inventories due to increased shipment towards the end of the current year and a decrease in accounts receivable due to improved collections in the fourth quarter of fiscal 2013 compared to the fourth quarter of fiscal 2012. the cash inflows from operations for fiscal 2012 were primarily due to $ 884.5 million of net income adjusted for non-cash items . within working capital during fiscal 2012 , accounts receivable decreased due to lower levels of revenue in the fourth quarter of fiscal 2012. inventories increased due primarily to two factors : ( 1 ) the floods in thailand which increased our inventories of hard drive products at the end of fiscal 2012 , and ( 2 ) the increased use of hubs managed by third-party logistics providers . when products are shipped to these third-party managed locations , the inventory remains on our books until pulled by the customer .
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Suspicious Activity Report : are made to customers located outside of the united states , primarily in asia . sales to customers in asia represented approximately 95 % , 90 % and 88 % of our net revenue for fiscal 2014 , 2013 and 2012 , respectively . because many manufacturers and manufacturing subcontractors of our customers are located in asia , we expect that most of our net revenue will continue to be represented by sales to our customers in that region . substantially all of our sales are denominated in u.s. dollars . a significant number of our products are being incorporated into consumer electronics products , including gaming devices and personal computers , which are subject to significant seasonality and fluctuations in demand . holiday and back to school buying trends may at times negatively impact our results in the first and fourth quarter and positively impact our results in the second and third quarter of our fiscal years . in addition , consumer electronics sales are heavily dependent on new product launch timelines and product refreshes . for example , our sales of wireless connectivity products may increase significantly during a period when one of our consumers launches a new gaming console , and these sales may taper significantly after the initial launch period . a relatively large portion of our sales have historically been made on the basis of purchase orders rather than long-term agreements . in addition , the sales cycle for our products is long , which may cause us to experience a delay between the time we incur expenses and the time revenue is generated from these 40 expenditures . we anticipate that the rate of new orders may vary significantly from quarter to quarter . consequently , if anticipated sales and shipments in any quarter do not occur when expected , expenses and inventory levels could be disproportionately high , and our operating results for that quarter and future quarters may be adversely affected . our fiscal year is the 52- or 53-week period ending on the saturday closest to january 31. in a 52-week year , each fiscal quarter consists of 13 weeks . the additional week in a 53-week year is added to the fourth quarter , making such quarter consist of 14 weeks . fiscal 2014 and fiscal 2012 had a 52-week period , and fiscal 2013 had a 53-week period . critical accounting policies and estimates the preparation of consolidated financial statements in conformity with gaap requires management to make estimates , judgments and assumptions 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 performance-based compensation , revenue recognition , provisions for sales returns and allowances , inventory excess and obsolescence , investment fair values , goodwill and other intangible assets , restructuring , income taxes , litigation and other contingencies . in addition , we use assumptions when employing the monte carlo simulation and black-scholes valuation models to calculate the fair value of share-based awards granted . we base our estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that are believed to be reasonable under the circumstances when these carrying values are not readily available from other sources . actual results could differ from these estimates , and such differences could affect the results of operations reported in future periods . we believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . revenue recognition . we recognize revenue when there is persuasive evidence of an arrangement , delivery has occurred , the fee is fixed or determinable , and collection is reasonably assured . product revenue is generally recognized upon shipment of product to customers , net of accruals for estimated sales returns and rebates . however , some of our sales are made through distributors under agreements allowing for price protection , shipped from stock pricing adjustment rights , and limited rights of stock rotation on product unsold by the distributors . although title passes to the distributor upon shipment terms and payment by our distributors is not contingent on resale of the product , product revenue on sales made through distributors with price protection , shipped from stock pricing adjustment rights and stock rotation rights are deferred until the distributors sell the product to end customers . deferred revenue less the related cost of the inventories is reported as deferred income . we do not believe that there is any significant exposure related to impairment of deferred cost of sales , as our historical returns have been minimal and inventory turnover for our distributors generally ranges from 60 to 90 days . our sales to direct customers are made primarily pursuant to standard purchase orders for delivery of products . a portion of our net revenue is derived from sales through third-party logistics providers , who maintain warehouses in close proximity to our customer 's facilities . revenue from sales through these third-party logistics providers is not recognized until the product is pulled from stock by the customer . the provision for estimated sales returns and allowances on product sales is recorded in the same period the related revenues are recorded . these estimates are based on historical sales returns , analysis of credit memo data and other known factors . in addition , quality issues covered by warranties to our customers may be recorded as a reduction of revenue , in cases where the related products are not returned to us and or the amount of the payment is not sufficiently supported by evidence of fair value . actual returns could differ from these estimates . we account for rebates by recording reductions to revenue in the same period that the related revenue is recorded . story_separator_special_tag we expect wireless connectivity and other advanced features in these new game consoles to help drive growth for us in the industry in the upcoming year . in addition , in the smartphone market , we have ongoing 100 % attach rates on our new mobile platforms for our connectivity solutions with our 3g and 4g mobile platforms . we are seeing new opportunities for our connectivity solutions across multiple market segments . 45 in the storage market , we continue to execute well as the overall drive industry seems to have stabilized . we continue to grow within the hdd market as we have seen strong demand for our 500 gigabyte per platter products . in addition , we are seeing increased demand on enterprise drives at a top north america based hdd customer . within the ssd market , our revenue has continued to grow and our strategy of partnering with top tier oems has resulted in excellent traction for our advanced ssd solutions . our pcie ssd solutions are now in mass production and we believe we have a lead in the market . we are also leveraging our technology leadership in hdd and ssd to help our customer migrate to hybrid storage devices . here we are developing a single-chip solution that we believe will drive lower price points and allow the market to grow . we believe this will allow us to further increase our share and solidify our leadership position in the market . in the networking market , we experienced softer than expected demand from some of our enterprise networking customers in fiscal 2014 due to a weaker market overall . we continue to make strong progress with development design activity for our product portfolio addressing the infrastructure portion of the market . we announced our first 28nm network processor and traffic management solutions with our xelerated ax and hx family of products targeting the infrastructure market , where we have engaged with tier-1 customers on these new high-performance products for their next generation networking equipment . we continue to increase our footprint in the service provider market and are benefiting from modest improvements in the enterprise end market . we expect these new initiatives to drive better results starting in the second half of fiscal 2015. our cost of goods sold as a percentage of net revenue in fiscal 2014 was higher compared to fiscal 2013. as we expand our presence and grow revenue in the consumer space , we expect our gross margin to face downward pressure , as these end markets generally have lower average gross margins than the rest of our business . however , we expect growth in the consumer space will result in improvement to total gross margin dollars and operating profit . in addition , we are focused on efforts to improve both aspects of our gross profit , including through cost improvement and pricing . our financial position is strong and we remain committed to deliver shareholder value through our share repurchase and dividend programs . our cash , cash equivalents and short-term investments were $ 2.0 billion at february 1 , 2014 and we generated cash flows from operations of $ 448.0 million in fiscal 2014. we paid a cumulative cash dividend of $ 0.24 per share for a total of $ 119.4 million during fiscal 2014 and we recently announced a dividend of $ 0.06 per share to be paid in the first quarter of fiscal 2015. we repurchased a total of 33.1 million of our common shares for $ 354.1 million in cash during fiscal 2014. we are currently involved in a patent litigation action with carnegie mellon university ( cmu ) ( see risk factors under part i , item 1a of this annual report on form 10-k and note 10 commitments and contingencies in the notes to consolidated financial statements for a further discussion of the risks associated with this matter and other patent litigation matters ) . a jury has awarded past damages of $ 1.17 billion , and cmu has sought pre-judgment damages of up to $ 322 million , post-judgment interest , attorneys ' fees , and an injunction and or ongoing royalties . due to the finding of willfulness during post-trial proceedings , the judge could enhance the damages by an amount up to triple the damages awarded by the jury at trial . we intend to appeal the final judgment and we would seek to stay any award of damages pending the appeal . we strongly believe that we do not infringe on the methods described in the cmu patents and that our products use our own internally developed patented read channel technology . 46 the following table sets forth information derived from our consolidated statements of operations expressed as a percentage of net revenue . replace_table_token_6_th years ended february 1 , 2014 and february 2 , 2013 net revenue year ended february 1 , 2014 february 2 , 2013 % change in 2014 ( in thousands , except percentage ) net revenue $ 3,404,400 $ 3,168,630 7.4 % net revenue is gross revenue , net of accruals for estimated sales returns and rebates . the increase in net revenue during fiscal 2014 was driven by an increase in sales of our storage products , as we continued to see growth for our 500-gigabyte-per-platter products and increased demand for enterprise drives at a top north america based hdd customer . in addition , revenue for solid-state drive controllers increased significantly compared to the prior year , as these products continue to gain traction and popularity . we experienced growth in revenue for our mobile and wireless products in the second half of fiscal 2014 due to successful launches of our new multi-core 3g mobile devices with key oem 's into mobile handsets and tablets . in addition , we saw increased demand for our wireless products driven by the holiday ramp up of new
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2,616 | they rely on our technology to manage employee corporate identity and to protect their corporate data . and , increasingly , businesses of all sizes are looking to microsoft to realize the benefits of the cloud . helping businesses move to the cloud is one of our largest opportunities . cloud-based solutions provide customers with software , services , and content over the internet by way of shared computing resources located in centralized data centers . the shift to the cloud is driven by three important economies of scale : larger data centers can deploy computational resources at significantly lower cost per unit than smaller ones ; larger data centers can coordinate and aggregate diverse customer , geographic , and application demand patterns improving the utilization of computing , storage , and network resources ; and multi-tenancy lowers application maintenance labor costs for large public clouds . because of the improved economics , the cloud offers unique levels of elasticity and agility that enable new solutions and applications . for businesses of all sizes , the cloud creates the opportunity to focus on innovation while leaving non-differentiating activities to reliable and cost-effective providers . unique to microsoft , we continue to design and deliver cloud solutions that allow our customers to use both the cloud and their on-premise assets however best suits their own needs . for example , a company can choose to deploy office or microsoft dynamics on premise , as a cloud service , or a combination of both . with windows server 2012 , windows azure , and system center infrastructure , businesses can deploy applications in their own datacenter , a partner 's datacenter , or in microsoft 's datacenter with common security , management , and administration across all environments , with the flexibility and scale they desire . these hybrid capabilities allow customers to fully harness the power of the cloud so they can achieve greater levels of efficiency and tap new areas of growth . our future opportunity there are several distinct areas of technology that we are focused on driving forward . our goal is to lead the industry in these areas over the long-term , which we expect will translate to sustained growth well into the future . we are investing significant resources in : developing new form factors that have increasingly natural ways to use them , including touch , gesture , and speech . applying machine learning to make technology more intuitive and able to act on our behalf , instead of at our command . building and running cloud-based services in ways that unleash new experiences and opportunities for businesses and individuals . establishing our windows platform across the pc , tablet , phone , server , and cloud to drive a thriving ecosystem of developers , unify the cross-device user experience , and increase agility when bringing new advances to market . delivering new high-value experiences with improvements in how people learn , work , play , and interact with one another . we believe the breadth of our devices and services portfolio , our large , global partner and customer base , and the growing windows ecosystem position us to be a leader in these areas . economic conditions , challenges , and risks the market for software , devices , and cloud-based services is dynamic and highly competitive . some of our traditional businesses such as the windows operating system are in a period of transition . our competitors are developing new devices and deploy competing cloud-based services for consumers and businesses . the devices and form factors customers prefer evolve rapidly , and influence how users access services in the cloud and in some cases the user 's choice of which suite of cloud-based services to use . the windows ecosystem must continue to evolve and adapt , over an extended time , in pace with this changing environment . to support our strategy of offering 25 part ii item 7 a family of devices and services designed to empower our customers for the activities they value most , we announced a functional realignment in july 2013. through this realignment our goal is to become more nimble , collaborative , communicative , motivated , and decisive . even if we achieve these benefits , the investments we are making in devices and infrastructure to support our cloud-based services will increase our operating costs and may decrease our operation margins . we prioritize our investments among the highest long-term growth opportunities . these investments require significant resources and are multi-year in nature . the products and services we bring to market may be developed internally , as part of a partnership or alliance , or through acquisition . our success is highly dependent on our ability to attract and retain qualified employees . we hire a mix of university and industry talent worldwide . microsoft competes for talented individuals worldwide by offering broad customer reach , scale in resources , and competitive compensation . aggregate demand for our software , services , and hardware is correlated to global macroeconomic factors , which remain dynamic . see a discussion of these factors and other risks under risk factors ( part i , item 1a of this form 10-k ) . seasonality our revenue historically has fluctuated quarterly and has generally been highest in the second quarter of our fiscal year due to corporate calendar year-end spending trends in our major markets and holiday season spending by consumers . our entertainment and devices division is particularly seasonal as its products are aimed at the consumer market and are in highest demand during the holiday shopping season . typically , the entertainment and devices division has generated approximately 40 % of its yearly revenue in our second fiscal quarter . unearned revenue quarterly and annual revenue may be impacted by the deferral of revenue . story_separator_special_tag mbd revenue for the year ended june 30 , 2012 included a favorable foreign currency impact of $ 506 million . mbd operating income increased , primarily due to revenue growth , offset in part by higher cost of revenue and research and development expenses . cost of revenue increased $ 278 million or 17 % , primarily due to higher online operation and support costs . research and development expenses increased , due mainly to an increase in headcount-related expenses . entertainment and devices division replace_table_token_6_th entertainment and devices division ( edd ) develops and markets products and services designed to entertain and connect people . edd offerings include the xbox entertainment platform ( which includes the xbox 360 gaming and entertainment console , kinect for xbox 360 , xbox 360 video games , xbox live , and xbox 360 accessories ) , skype , and windows phone , including related patent licensing revenue . we acquired skype on october 13 , 2011 , and its results of operations from that date are reflected in our results discussed below . in june 2013 , we announced that we expect our next generation console , xbox one , to be available for purchase in the second quarter of fiscal year 2014. fiscal year 2013 compared with fiscal year 2012 edd revenue increased , due to higher windows phone and skype revenue , offset in part by lower xbox 360 platform revenue . windows phone revenue increased $ 1.2 billion , including an increase in patent licensing revenue and sales of windows phone licenses . skype revenue increased , due primarily to including a full year of results in fiscal year 2013. xbox 360 platform revenue decreased $ 950 million or 12 % , due mainly to lower volumes of consoles sold , offset in part by higher xbox live revenue . we shipped 9.8 million xbox 360 consoles during fiscal year 2013 , compared with 13.0 million xbox 360 consoles during fiscal year 2012. edd operating income increased , primarily due to revenue growth and lower cost of revenue , offset in part by higher operating expenses . sales and marketing expenses decreased $ 176 million or 16 % , reflecting a $ 248 million 31 part ii item 7 decrease in xbox 360 platform marketing . cost of revenue decreased $ 143 million or 2 % , due mainly to a $ 1.0 billion decrease in manufacturing and distribution costs associated with lower volumes of xbox 360 consoles sold , offset in part by a $ 375 million increase in expenses for payments made to nokia related to joint strategic initiatives and a $ 273 million increase in royalties on xbox live content . research and development expenses increased $ 432 million or 28 % , reflecting $ 246 million higher headcount-related expenses , resulting mainly from increased headcount in connection with the xbox platform and skype . fiscal year 2012 compared with fiscal year 2011 edd revenue increased primarily reflecting skype and windows phone revenue , offset in part by lower xbox 360 platform revenue . xbox 360 platform revenue decreased $ 107 million , due mainly to decreased volumes of kinect for xbox 360 sold and lower video game revenue , offset in part by higher xbox live revenue . we shipped 13.0 million xbox 360 consoles during fiscal year 2012 , compared with 13.7 million xbox 360 consoles during fiscal year 2011. video game revenue decreased due to strong sales of halo reach in the prior year . edd operating income decreased reflecting higher cost of revenue and operating expenses , offset in part by revenue growth . cost of revenue grew $ 896 million or 16 % , primarily due to changes in the mix of products and services sold and payments made to nokia related to joint strategic initiatives . research and development expenses increased $ 366 million or 31 % , primarily reflecting higher headcount-related expenses . sales and marketing expenses increased $ 242 million or 27 % , primarily reflecting the inclusion of skype expenses . corporate-level activity replace_table_token_7_th certain corporate-level activity is not allocated to our segments , including costs of : broad-based sales and marketing ; product support services ; human resources ; legal ; finance ; information technology ; corporate development and procurement activities ; research and development ; costs of operating our retail stores ; and legal settlements and contingencies . fiscal year 2013 compared with fiscal year 2012 corporate-level expenses increased , primarily due to higher legal charges from the european commission fine of 561 million ( approximately $ 733 million ) for failure to comply with our 2009 agreement to display a browser choice screen on windows pcs where internet explorer is the default browser ( the eu fine ) . corporate-level expenses also grew due to a $ 350 million increase in retail stores expenses and $ 287 million higher intellectual property licensing costs . fiscal year 2012 compared with fiscal year 2011 corporate-level expenses increased due mainly to full year puerto rican excise taxes , higher headcount-related expenses , and changes in foreign currency exchange rates . these increases were offset in part by lower legal charges , which were $ 56 million in fiscal year 2012 compared with $ 332 million in fiscal year 2011. cost of revenue cost of revenue replace_table_token_8_th 32 part ii item 7 cost of revenue includes : manufacturing and distribution costs for products sold , including xbox and surface , and programs licensed ; operating costs related to product support service centers and product distribution centers ; costs incurred to include software on pcs sold by oems , to drive traffic to our websites , and to acquire online advertising space ( traffic acquisition costs ) ; costs incurred to support and maintain internet-based products and services , including datacenter costs and royalties ; warranty costs ; inventory valuation adjustments ; costs associated with the delivery of
| cash flows fiscal year 2013 compared with fiscal year 2012 cash flows from operations decreased $ 2.8 billion during the current fiscal year to $ 28.8 billion , due mainly to changes in working capital , including increases in inventory and other current assets . cash used for financing decreased $ 1.3 billion to $ 8.1 billion , due mainly to a $ 3.5 billion increase in proceeds from issuances of debt , net of repayments , offset in part by a $ 1.1 billion increase in dividends paid and a $ 982 million decrease in proceeds from the issuance of common stock . cash used in investing decreased $ 975 million to $ 23.8 billion , due mainly to an $ 8.5 billion decrease in cash used for acquisitions of companies and purchases of intangible and other assets , offset in part by a $ 5.8 billion increase in cash used for net investment purchases , maturities , and sales and a $ 2.0 billion increase in cash used for additions to property and equipment . fiscal year 2012 compared with fiscal year 2011 cash flows from operations increased $ 4.6 billion during fiscal year 2012 to $ 31.6 billion , due mainly to increased revenue and cash collections from customers . cash used for financing increased $ 1.0 billion to $ 9.4 billion , due mainly to a $ 6.0 billion net decrease in proceeds from issuances of debt and a $ 1.2 billion increase in dividends paid , offset in part by a $ 6.5 billion decrease in cash used for common stock repurchases .
| 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 year 2013 compared with fiscal year 2012 cash flows from operations decreased $ 2.8 billion during the current fiscal year to $ 28.8 billion , due mainly to changes in working capital , including increases in inventory and other current assets . cash used for financing decreased $ 1.3 billion to $ 8.1 billion , due mainly to a $ 3.5 billion increase in proceeds from issuances of debt , net of repayments , offset in part by a $ 1.1 billion increase in dividends paid and a $ 982 million decrease in proceeds from the issuance of common stock . cash used in investing decreased $ 975 million to $ 23.8 billion , due mainly to an $ 8.5 billion decrease in cash used for acquisitions of companies and purchases of intangible and other assets , offset in part by a $ 5.8 billion increase in cash used for net investment purchases , maturities , and sales and a $ 2.0 billion increase in cash used for additions to property and equipment . fiscal year 2012 compared with fiscal year 2011 cash flows from operations increased $ 4.6 billion during fiscal year 2012 to $ 31.6 billion , due mainly to increased revenue and cash collections from customers . cash used for financing increased $ 1.0 billion to $ 9.4 billion , due mainly to a $ 6.0 billion net decrease in proceeds from issuances of debt and a $ 1.2 billion increase in dividends paid , offset in part by a $ 6.5 billion decrease in cash used for common stock repurchases .
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Suspicious Activity Report : they rely on our technology to manage employee corporate identity and to protect their corporate data . and , increasingly , businesses of all sizes are looking to microsoft to realize the benefits of the cloud . helping businesses move to the cloud is one of our largest opportunities . cloud-based solutions provide customers with software , services , and content over the internet by way of shared computing resources located in centralized data centers . the shift to the cloud is driven by three important economies of scale : larger data centers can deploy computational resources at significantly lower cost per unit than smaller ones ; larger data centers can coordinate and aggregate diverse customer , geographic , and application demand patterns improving the utilization of computing , storage , and network resources ; and multi-tenancy lowers application maintenance labor costs for large public clouds . because of the improved economics , the cloud offers unique levels of elasticity and agility that enable new solutions and applications . for businesses of all sizes , the cloud creates the opportunity to focus on innovation while leaving non-differentiating activities to reliable and cost-effective providers . unique to microsoft , we continue to design and deliver cloud solutions that allow our customers to use both the cloud and their on-premise assets however best suits their own needs . for example , a company can choose to deploy office or microsoft dynamics on premise , as a cloud service , or a combination of both . with windows server 2012 , windows azure , and system center infrastructure , businesses can deploy applications in their own datacenter , a partner 's datacenter , or in microsoft 's datacenter with common security , management , and administration across all environments , with the flexibility and scale they desire . these hybrid capabilities allow customers to fully harness the power of the cloud so they can achieve greater levels of efficiency and tap new areas of growth . our future opportunity there are several distinct areas of technology that we are focused on driving forward . our goal is to lead the industry in these areas over the long-term , which we expect will translate to sustained growth well into the future . we are investing significant resources in : developing new form factors that have increasingly natural ways to use them , including touch , gesture , and speech . applying machine learning to make technology more intuitive and able to act on our behalf , instead of at our command . building and running cloud-based services in ways that unleash new experiences and opportunities for businesses and individuals . establishing our windows platform across the pc , tablet , phone , server , and cloud to drive a thriving ecosystem of developers , unify the cross-device user experience , and increase agility when bringing new advances to market . delivering new high-value experiences with improvements in how people learn , work , play , and interact with one another . we believe the breadth of our devices and services portfolio , our large , global partner and customer base , and the growing windows ecosystem position us to be a leader in these areas . economic conditions , challenges , and risks the market for software , devices , and cloud-based services is dynamic and highly competitive . some of our traditional businesses such as the windows operating system are in a period of transition . our competitors are developing new devices and deploy competing cloud-based services for consumers and businesses . the devices and form factors customers prefer evolve rapidly , and influence how users access services in the cloud and in some cases the user 's choice of which suite of cloud-based services to use . the windows ecosystem must continue to evolve and adapt , over an extended time , in pace with this changing environment . to support our strategy of offering 25 part ii item 7 a family of devices and services designed to empower our customers for the activities they value most , we announced a functional realignment in july 2013. through this realignment our goal is to become more nimble , collaborative , communicative , motivated , and decisive . even if we achieve these benefits , the investments we are making in devices and infrastructure to support our cloud-based services will increase our operating costs and may decrease our operation margins . we prioritize our investments among the highest long-term growth opportunities . these investments require significant resources and are multi-year in nature . the products and services we bring to market may be developed internally , as part of a partnership or alliance , or through acquisition . our success is highly dependent on our ability to attract and retain qualified employees . we hire a mix of university and industry talent worldwide . microsoft competes for talented individuals worldwide by offering broad customer reach , scale in resources , and competitive compensation . aggregate demand for our software , services , and hardware is correlated to global macroeconomic factors , which remain dynamic . see a discussion of these factors and other risks under risk factors ( part i , item 1a of this form 10-k ) . seasonality our revenue historically has fluctuated quarterly and has generally been highest in the second quarter of our fiscal year due to corporate calendar year-end spending trends in our major markets and holiday season spending by consumers . our entertainment and devices division is particularly seasonal as its products are aimed at the consumer market and are in highest demand during the holiday shopping season . typically , the entertainment and devices division has generated approximately 40 % of its yearly revenue in our second fiscal quarter . unearned revenue quarterly and annual revenue may be impacted by the deferral of revenue . story_separator_special_tag mbd revenue for the year ended june 30 , 2012 included a favorable foreign currency impact of $ 506 million . mbd operating income increased , primarily due to revenue growth , offset in part by higher cost of revenue and research and development expenses . cost of revenue increased $ 278 million or 17 % , primarily due to higher online operation and support costs . research and development expenses increased , due mainly to an increase in headcount-related expenses . entertainment and devices division replace_table_token_6_th entertainment and devices division ( edd ) develops and markets products and services designed to entertain and connect people . edd offerings include the xbox entertainment platform ( which includes the xbox 360 gaming and entertainment console , kinect for xbox 360 , xbox 360 video games , xbox live , and xbox 360 accessories ) , skype , and windows phone , including related patent licensing revenue . we acquired skype on october 13 , 2011 , and its results of operations from that date are reflected in our results discussed below . in june 2013 , we announced that we expect our next generation console , xbox one , to be available for purchase in the second quarter of fiscal year 2014. fiscal year 2013 compared with fiscal year 2012 edd revenue increased , due to higher windows phone and skype revenue , offset in part by lower xbox 360 platform revenue . windows phone revenue increased $ 1.2 billion , including an increase in patent licensing revenue and sales of windows phone licenses . skype revenue increased , due primarily to including a full year of results in fiscal year 2013. xbox 360 platform revenue decreased $ 950 million or 12 % , due mainly to lower volumes of consoles sold , offset in part by higher xbox live revenue . we shipped 9.8 million xbox 360 consoles during fiscal year 2013 , compared with 13.0 million xbox 360 consoles during fiscal year 2012. edd operating income increased , primarily due to revenue growth and lower cost of revenue , offset in part by higher operating expenses . sales and marketing expenses decreased $ 176 million or 16 % , reflecting a $ 248 million 31 part ii item 7 decrease in xbox 360 platform marketing . cost of revenue decreased $ 143 million or 2 % , due mainly to a $ 1.0 billion decrease in manufacturing and distribution costs associated with lower volumes of xbox 360 consoles sold , offset in part by a $ 375 million increase in expenses for payments made to nokia related to joint strategic initiatives and a $ 273 million increase in royalties on xbox live content . research and development expenses increased $ 432 million or 28 % , reflecting $ 246 million higher headcount-related expenses , resulting mainly from increased headcount in connection with the xbox platform and skype . fiscal year 2012 compared with fiscal year 2011 edd revenue increased primarily reflecting skype and windows phone revenue , offset in part by lower xbox 360 platform revenue . xbox 360 platform revenue decreased $ 107 million , due mainly to decreased volumes of kinect for xbox 360 sold and lower video game revenue , offset in part by higher xbox live revenue . we shipped 13.0 million xbox 360 consoles during fiscal year 2012 , compared with 13.7 million xbox 360 consoles during fiscal year 2011. video game revenue decreased due to strong sales of halo reach in the prior year . edd operating income decreased reflecting higher cost of revenue and operating expenses , offset in part by revenue growth . cost of revenue grew $ 896 million or 16 % , primarily due to changes in the mix of products and services sold and payments made to nokia related to joint strategic initiatives . research and development expenses increased $ 366 million or 31 % , primarily reflecting higher headcount-related expenses . sales and marketing expenses increased $ 242 million or 27 % , primarily reflecting the inclusion of skype expenses . corporate-level activity replace_table_token_7_th certain corporate-level activity is not allocated to our segments , including costs of : broad-based sales and marketing ; product support services ; human resources ; legal ; finance ; information technology ; corporate development and procurement activities ; research and development ; costs of operating our retail stores ; and legal settlements and contingencies . fiscal year 2013 compared with fiscal year 2012 corporate-level expenses increased , primarily due to higher legal charges from the european commission fine of 561 million ( approximately $ 733 million ) for failure to comply with our 2009 agreement to display a browser choice screen on windows pcs where internet explorer is the default browser ( the eu fine ) . corporate-level expenses also grew due to a $ 350 million increase in retail stores expenses and $ 287 million higher intellectual property licensing costs . fiscal year 2012 compared with fiscal year 2011 corporate-level expenses increased due mainly to full year puerto rican excise taxes , higher headcount-related expenses , and changes in foreign currency exchange rates . these increases were offset in part by lower legal charges , which were $ 56 million in fiscal year 2012 compared with $ 332 million in fiscal year 2011. cost of revenue cost of revenue replace_table_token_8_th 32 part ii item 7 cost of revenue includes : manufacturing and distribution costs for products sold , including xbox and surface , and programs licensed ; operating costs related to product support service centers and product distribution centers ; costs incurred to include software on pcs sold by oems , to drive traffic to our websites , and to acquire online advertising space ( traffic acquisition costs ) ; costs incurred to support and maintain internet-based products and services , including datacenter costs and royalties ; warranty costs ; inventory valuation adjustments ; costs associated with the delivery of
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2,617 | given the uncertainty of current claim trends , the industry needs further rate increases to provide insurers an adequate buffer and a positive risk-reward proposition . in this kind of environment , risk selection and active capital allocation remain critical to generating superior returns . strengthening market conditions are evident to us from both the rise in our submission activity and our ability to achieve significant rate increases across numerous lines of business . reinsurance pricing tends to follow that of the primary insurance industry although catastrophe and large attritional losses , such as the japanese typhoons this year , can disproportionately affect results and create opportunities in the reinsurance market . we believe that property facultative and marine businesses are examples of improving markets . our underwriting teams continue to execute a disciplined strategy by emphasizing small and medium-sized accounts over large accounts , shrinking premiums in more commoditized arch capital 55 2019 form 10-k lines such as general liability and by utilizing reinsurance purchases to reduce volatility on large account , high capacity business . the spread between rate changes and loss trend continues to be a key variable in assessing expected returns and can be difficult to quantify precisely , particularly in specialty lines . our mortgage segment continues to experience generally favorable market conditions . although pricing remains competitive in the u.s. , borrower credit quality and the general economy remain strong . our results continue to reflect our success in making high quality credit underwriting risk decisions and building customer relationships . arch remains committed to providing solutions across many offerings as the marketplace evolves , including new mortgage credit risk transfer programs initiated by government sponsored enterprises , or “ gses , ” in 2018. such programs have begun generating business with banks developing new systems to handle the programs and momentum beginning to build . in addition , we completed multiple bellemeade risk transfers to the capital markets throughout 2019 , increasing our protection for mortgage tail risk . financial measures management uses the following three key financial indicators in evaluating our performance and measuring the overall growth in value generated for arch capital 's common shareholders : book value per share book value per share represents total common shareholders ' equity available to arch divided by the number of common shares and common share equivalents outstanding . management uses growth in book value per share as a key measure of the value generated for our common shareholders each period and believes that book value per share is the key driver of arch capital 's share price over time . book value per share is impacted by , among other factors , our underwriting results , investment returns and share repurchase activity , which has an accretive or dilutive impact on book value per share depending on the purchase price . book value per share was $ 26.42 at december 31 , 2019 , a 22.8 % increase from $ 21.52 at december 31 , 2018 . the growth in 2019 reflected strong mortgage insurance underwriting performance and investment returns . operating return on average common equity operating return on average common equity ( “ operating roae ” ) represents annualized after-tax operating income available to arch common shareholders divided by average common shareholders ' equity available to arch during the period . after-tax operating income available to arch common shareholders , a “ non-gaap measure ” as defined in the sec rules , represents net income available to arch common shareholders , excluding net realized gains or losses , net impairment losses recognized in earnings , equity in net income or loss of investments accounted for using the equity method , net foreign exchange gains or losses and transaction costs and other , net of income taxes . management uses operating roae as a key measure of the return generated to arch common shareholders . see “ comment on non-gaap financial measures . ” our operating roae was 12.0 % for 2019 , compared to 10.7 % for 2018 . the higher operating roae for 2019 reflected favorable mortgage insurance market conditions , strong investment returns and a lower level of catastrophic activity . total return on investments total return on investments includes investment income , equity in net income or loss of investments accounted for using the equity method , net realized gains and losses and the change in unrealized gains and losses generated by arch 's investment portfolio . total return is calculated on a pre-tax basis and before investment expenses excluding amounts reflected in the ‘ other ' segment , and reflects the effect of financial market conditions along with foreign currency fluctuations . management uses total return on investments as a key measure of the return generated to arch common shareholders on the capital held in the business , and compares the return generated by our investment portfolio against benchmark returns which we measured our portfolio against during the periods . the following table summarizes the pre-tax total return ( before investment expenses ) of investment held by arch compared to the benchmark return ( both based in u.s. dollars ) against which we measured our portfolio during the periods : replace_table_token_5_th ( 1 ) our investment expenses were approximately 0.33 % and 0.36 % , respectively , of average invested assets in 2019 and 2018 . total return for our investment portfolio was in line with the benchmark return index in 2019 and reflected strong total returns on our investment grade fixed income and equity portfolios . the benchmark return index is a customized combination of indices intended to approximate a target portfolio by asset mix and average credit quality while also matching the approximate estimated duration and currency mix of our insurance and reinsurance liabilities . story_separator_special_tag the balance of the change in the 2019 current year loss ratio resulted , in part , from the effects of market conditions and changes in the mix of business . arch capital 61 2019 form 10-k prior period reserve development . the reinsurance segment 's net favorable development was $ 46.4 million , or 3.2 points , for 2019 , compared to $ 138.5 million , or 11.0 points , for 2018 , see note 5 , “ reserve for losses and loss adjustment expenses , ” to our consolidated financial statements in item 8 for information about the reinsurance segment 's prior year reserve development . underwriting expenses . the underwriting expense ratio for the reinsurance segment was 25.9 % in 2019 , compared to 27.4 % in 2018 , reflecting growth in net premiums earned and changes in mix of business . mortgage segment our mortgage operations include u.s. and international mortgage insurance and reinsurance operations as well as participation in gse credit risk-sharing transactions . our mortgage group includes direct mortgage insurance in the u.s. primarily through arch mortgage insurance company and united guaranty residential insurance company ( together , “ arch mi u.s. ” ) ; mortgage reinsurance through arch re bermuda to mortgage insurers on both a proportional and non-proportional basis globally ; direct mortgage insurance in europe through arch insurance ( eu ) and in hong kong through arch mi asia ; and participation in various gse credit risk-sharing products primarily through arch re bermuda . the following tables set forth our mortgage segment 's underwriting results . replace_table_token_16_th premiums written . the following table sets forth our mortgage segment 's net premiums written by underwriting location ( i.e . , where the business is underwritten ) : replace_table_token_17_th gross premiums written by the mortgage segment in 2019 were 7.8 % higher than in 2018 . net premiums written for 2019 were 9.0 % higher than in the 2018 period and reflected an increase in monthly premium business due to growth in insurance in force . the persistency rate of the primary portfolio of mortgage loans of arch mi u.s. was 75.7 % at december 31 , 2019 compared to 81.5 % at december 31 , 2018 . the persistency rate represents the percentage of mortgage insurance in force at the beginning of a 12-month period that remains in force at the end of such period . net premiums earned . the following table sets forth our mortgage segment 's net premiums earned by underwriting location ( i.e . , where the business is underwritten ) : replace_table_token_18_th net premiums earned for 2019 were 15.2 % higher than in 2018 . the increase in net premiums earned reflected the growth in insurance in force in the u.s. over the last twelve months combined with higher single premium earned as a result of policy terminations due to mortgage refinance activity . other underwriting income . other underwriting income , which is primarily related to gse risk-sharing transactions receiving derivative accounting treatment , was $ 16.0 million for 2019 , compared to $ 13.0 million for 2018 . arch capital 62 2019 form 10-k losses and loss adjustment expenses . the table below shows the components of the mortgage segment 's loss ratio : replace_table_token_19_th unlike property and casualty business for which we estimate ultimate losses on premiums earned , losses on mortgage insurance business are only recorded at the time a borrower is delinquent on their mortgage , in accordance with primary mortgage insurance industry practice . because our primary mortgage insurance reserving process does not take into account the impact of future losses from loans that are not delinquent , mortgage insurance loss reserves are not an estimate of ultimate losses . in addition to establishing loss reserves for delinquent loans , under gaap , we are required to establish a premium deficiency reserve for our mortgage insurance products if the amount of expected future losses and maintenance costs exceeds expected future premiums , existing reserves and the anticipated investment income for such product . we assess the need for a premium deficiency reserve on a quarterly basis and perform a full analysis annually . no such reserve was established during 2019 and 2018 . current year loss ratio . the mortgage segment 's current year loss ratio was 2.9 points lower in 2019 compared to 2018 . the current year loss ratio for 2019 reflects the current favorable macroeconomic environment as the percentage of loans in default on first lien business decreased from 1.60 % at december 31 , 2018 to 1.54 % at december 31 , 2019. we insure mortgages for homes in areas that have been impacted by catastrophic events , including 2018 events such as hurricanes florence and michael and the california wildfires . generally , mortgage insurance losses occur only when a credit event occurs and , following a physical damage event , when the home is restored to pre-storm condition . our ultimate claims exposure will depend on the number of delinquency notices received and the ultimate claim rate related to such notices . in the event of natural disasters , cure rates are influenced by the adequacy of homeowners and flood insurance carried on a related property , and a borrower 's access to aid from government entities and private organizations , in addition to other factors which generally impact cure rates in unaffected areas . prior period reserve development . the mortgage segment 's net favorable development was $ 125.2 million , or 9.2 points , for 2019 , compared to $ 107.6 million , or 9.1 points , for 2018 . see note 5 , “ reserve for losses and loss adjustment expenses , ” to our consolidated financial statements in item 8 for information about the mortgage segment 's prior year reserve development . underwriting expenses . the underwriting expense ratio for the mortgage segment was 21.0 % for 2019 , compared to
| cash provided by financing activities for 2019 was higher than the cash used in 2018. the 2018 period reflected $ 375.0 million of paydowns on our revolving credit agreement borrowings , $ 282.8 million of repurchases under our share repurchase program and $ 92.6 million related to redemption of our series c preferred shares . investments at december 31 , 2019 , our investable assets were $ 22.29 billion , excluding the $ 2.70 billion of investable assets related to the ‘ other ' segment . the primary goals of our asset liability management process are to satisfy the insurance liabilities , manage the interest rate risk embedded in those insurance liabilities and maintain sufficient liquidity to cover fluctuations in projected liability cash flows , including debt service obligations . generally , the expected principal and interest payments produced by our fixed income portfolio adequately fund the estimated runoff of our insurance reserves . although this is not an exact cash flow match in each period , the substantial degree by which the fair value of the fixed income portfolio exceeds the expected present value of the net insurance liabilities , as well as the positive cash flow from newly sold policies and the large amount of high quality liquid bonds , provide assurance of our ability to fund the payment of claims and to service our outstanding debt without having to sell securities at distressed prices or access credit facilities . please refer to item 1a “ risk factors ” for a discussion of other risks relating to our business and investment portfolio . capital resources this section does not include information specific to watford . we do not guarantee or provide credit support for watford , and our financial exposure to watford is limited to our investment in watford 's senior notes , common and preferred shares and counterparty credit risk ( mitigated by collateral ) arising from reinsurance transactions with watford . arch capital 77 2019 form 10-k the following table provides an analysis of our capital structure : replace_table_token_48_th ( 1 ) fully and unconditionally guaranteed by arch capital . ( 2 ) $ 500 million unsecured facility for revolving loans and letters of credit .
| 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 financing activities for 2019 was higher than the cash used in 2018. the 2018 period reflected $ 375.0 million of paydowns on our revolving credit agreement borrowings , $ 282.8 million of repurchases under our share repurchase program and $ 92.6 million related to redemption of our series c preferred shares . investments at december 31 , 2019 , our investable assets were $ 22.29 billion , excluding the $ 2.70 billion of investable assets related to the ‘ other ' segment . the primary goals of our asset liability management process are to satisfy the insurance liabilities , manage the interest rate risk embedded in those insurance liabilities and maintain sufficient liquidity to cover fluctuations in projected liability cash flows , including debt service obligations . generally , the expected principal and interest payments produced by our fixed income portfolio adequately fund the estimated runoff of our insurance reserves . although this is not an exact cash flow match in each period , the substantial degree by which the fair value of the fixed income portfolio exceeds the expected present value of the net insurance liabilities , as well as the positive cash flow from newly sold policies and the large amount of high quality liquid bonds , provide assurance of our ability to fund the payment of claims and to service our outstanding debt without having to sell securities at distressed prices or access credit facilities . please refer to item 1a “ risk factors ” for a discussion of other risks relating to our business and investment portfolio . capital resources this section does not include information specific to watford . we do not guarantee or provide credit support for watford , and our financial exposure to watford is limited to our investment in watford 's senior notes , common and preferred shares and counterparty credit risk ( mitigated by collateral ) arising from reinsurance transactions with watford . arch capital 77 2019 form 10-k the following table provides an analysis of our capital structure : replace_table_token_48_th ( 1 ) fully and unconditionally guaranteed by arch capital . ( 2 ) $ 500 million unsecured facility for revolving loans and letters of credit .
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Suspicious Activity Report : given the uncertainty of current claim trends , the industry needs further rate increases to provide insurers an adequate buffer and a positive risk-reward proposition . in this kind of environment , risk selection and active capital allocation remain critical to generating superior returns . strengthening market conditions are evident to us from both the rise in our submission activity and our ability to achieve significant rate increases across numerous lines of business . reinsurance pricing tends to follow that of the primary insurance industry although catastrophe and large attritional losses , such as the japanese typhoons this year , can disproportionately affect results and create opportunities in the reinsurance market . we believe that property facultative and marine businesses are examples of improving markets . our underwriting teams continue to execute a disciplined strategy by emphasizing small and medium-sized accounts over large accounts , shrinking premiums in more commoditized arch capital 55 2019 form 10-k lines such as general liability and by utilizing reinsurance purchases to reduce volatility on large account , high capacity business . the spread between rate changes and loss trend continues to be a key variable in assessing expected returns and can be difficult to quantify precisely , particularly in specialty lines . our mortgage segment continues to experience generally favorable market conditions . although pricing remains competitive in the u.s. , borrower credit quality and the general economy remain strong . our results continue to reflect our success in making high quality credit underwriting risk decisions and building customer relationships . arch remains committed to providing solutions across many offerings as the marketplace evolves , including new mortgage credit risk transfer programs initiated by government sponsored enterprises , or “ gses , ” in 2018. such programs have begun generating business with banks developing new systems to handle the programs and momentum beginning to build . in addition , we completed multiple bellemeade risk transfers to the capital markets throughout 2019 , increasing our protection for mortgage tail risk . financial measures management uses the following three key financial indicators in evaluating our performance and measuring the overall growth in value generated for arch capital 's common shareholders : book value per share book value per share represents total common shareholders ' equity available to arch divided by the number of common shares and common share equivalents outstanding . management uses growth in book value per share as a key measure of the value generated for our common shareholders each period and believes that book value per share is the key driver of arch capital 's share price over time . book value per share is impacted by , among other factors , our underwriting results , investment returns and share repurchase activity , which has an accretive or dilutive impact on book value per share depending on the purchase price . book value per share was $ 26.42 at december 31 , 2019 , a 22.8 % increase from $ 21.52 at december 31 , 2018 . the growth in 2019 reflected strong mortgage insurance underwriting performance and investment returns . operating return on average common equity operating return on average common equity ( “ operating roae ” ) represents annualized after-tax operating income available to arch common shareholders divided by average common shareholders ' equity available to arch during the period . after-tax operating income available to arch common shareholders , a “ non-gaap measure ” as defined in the sec rules , represents net income available to arch common shareholders , excluding net realized gains or losses , net impairment losses recognized in earnings , equity in net income or loss of investments accounted for using the equity method , net foreign exchange gains or losses and transaction costs and other , net of income taxes . management uses operating roae as a key measure of the return generated to arch common shareholders . see “ comment on non-gaap financial measures . ” our operating roae was 12.0 % for 2019 , compared to 10.7 % for 2018 . the higher operating roae for 2019 reflected favorable mortgage insurance market conditions , strong investment returns and a lower level of catastrophic activity . total return on investments total return on investments includes investment income , equity in net income or loss of investments accounted for using the equity method , net realized gains and losses and the change in unrealized gains and losses generated by arch 's investment portfolio . total return is calculated on a pre-tax basis and before investment expenses excluding amounts reflected in the ‘ other ' segment , and reflects the effect of financial market conditions along with foreign currency fluctuations . management uses total return on investments as a key measure of the return generated to arch common shareholders on the capital held in the business , and compares the return generated by our investment portfolio against benchmark returns which we measured our portfolio against during the periods . the following table summarizes the pre-tax total return ( before investment expenses ) of investment held by arch compared to the benchmark return ( both based in u.s. dollars ) against which we measured our portfolio during the periods : replace_table_token_5_th ( 1 ) our investment expenses were approximately 0.33 % and 0.36 % , respectively , of average invested assets in 2019 and 2018 . total return for our investment portfolio was in line with the benchmark return index in 2019 and reflected strong total returns on our investment grade fixed income and equity portfolios . the benchmark return index is a customized combination of indices intended to approximate a target portfolio by asset mix and average credit quality while also matching the approximate estimated duration and currency mix of our insurance and reinsurance liabilities . story_separator_special_tag the balance of the change in the 2019 current year loss ratio resulted , in part , from the effects of market conditions and changes in the mix of business . arch capital 61 2019 form 10-k prior period reserve development . the reinsurance segment 's net favorable development was $ 46.4 million , or 3.2 points , for 2019 , compared to $ 138.5 million , or 11.0 points , for 2018 , see note 5 , “ reserve for losses and loss adjustment expenses , ” to our consolidated financial statements in item 8 for information about the reinsurance segment 's prior year reserve development . underwriting expenses . the underwriting expense ratio for the reinsurance segment was 25.9 % in 2019 , compared to 27.4 % in 2018 , reflecting growth in net premiums earned and changes in mix of business . mortgage segment our mortgage operations include u.s. and international mortgage insurance and reinsurance operations as well as participation in gse credit risk-sharing transactions . our mortgage group includes direct mortgage insurance in the u.s. primarily through arch mortgage insurance company and united guaranty residential insurance company ( together , “ arch mi u.s. ” ) ; mortgage reinsurance through arch re bermuda to mortgage insurers on both a proportional and non-proportional basis globally ; direct mortgage insurance in europe through arch insurance ( eu ) and in hong kong through arch mi asia ; and participation in various gse credit risk-sharing products primarily through arch re bermuda . the following tables set forth our mortgage segment 's underwriting results . replace_table_token_16_th premiums written . the following table sets forth our mortgage segment 's net premiums written by underwriting location ( i.e . , where the business is underwritten ) : replace_table_token_17_th gross premiums written by the mortgage segment in 2019 were 7.8 % higher than in 2018 . net premiums written for 2019 were 9.0 % higher than in the 2018 period and reflected an increase in monthly premium business due to growth in insurance in force . the persistency rate of the primary portfolio of mortgage loans of arch mi u.s. was 75.7 % at december 31 , 2019 compared to 81.5 % at december 31 , 2018 . the persistency rate represents the percentage of mortgage insurance in force at the beginning of a 12-month period that remains in force at the end of such period . net premiums earned . the following table sets forth our mortgage segment 's net premiums earned by underwriting location ( i.e . , where the business is underwritten ) : replace_table_token_18_th net premiums earned for 2019 were 15.2 % higher than in 2018 . the increase in net premiums earned reflected the growth in insurance in force in the u.s. over the last twelve months combined with higher single premium earned as a result of policy terminations due to mortgage refinance activity . other underwriting income . other underwriting income , which is primarily related to gse risk-sharing transactions receiving derivative accounting treatment , was $ 16.0 million for 2019 , compared to $ 13.0 million for 2018 . arch capital 62 2019 form 10-k losses and loss adjustment expenses . the table below shows the components of the mortgage segment 's loss ratio : replace_table_token_19_th unlike property and casualty business for which we estimate ultimate losses on premiums earned , losses on mortgage insurance business are only recorded at the time a borrower is delinquent on their mortgage , in accordance with primary mortgage insurance industry practice . because our primary mortgage insurance reserving process does not take into account the impact of future losses from loans that are not delinquent , mortgage insurance loss reserves are not an estimate of ultimate losses . in addition to establishing loss reserves for delinquent loans , under gaap , we are required to establish a premium deficiency reserve for our mortgage insurance products if the amount of expected future losses and maintenance costs exceeds expected future premiums , existing reserves and the anticipated investment income for such product . we assess the need for a premium deficiency reserve on a quarterly basis and perform a full analysis annually . no such reserve was established during 2019 and 2018 . current year loss ratio . the mortgage segment 's current year loss ratio was 2.9 points lower in 2019 compared to 2018 . the current year loss ratio for 2019 reflects the current favorable macroeconomic environment as the percentage of loans in default on first lien business decreased from 1.60 % at december 31 , 2018 to 1.54 % at december 31 , 2019. we insure mortgages for homes in areas that have been impacted by catastrophic events , including 2018 events such as hurricanes florence and michael and the california wildfires . generally , mortgage insurance losses occur only when a credit event occurs and , following a physical damage event , when the home is restored to pre-storm condition . our ultimate claims exposure will depend on the number of delinquency notices received and the ultimate claim rate related to such notices . in the event of natural disasters , cure rates are influenced by the adequacy of homeowners and flood insurance carried on a related property , and a borrower 's access to aid from government entities and private organizations , in addition to other factors which generally impact cure rates in unaffected areas . prior period reserve development . the mortgage segment 's net favorable development was $ 125.2 million , or 9.2 points , for 2019 , compared to $ 107.6 million , or 9.1 points , for 2018 . see note 5 , “ reserve for losses and loss adjustment expenses , ” to our consolidated financial statements in item 8 for information about the mortgage segment 's prior year reserve development . underwriting expenses . the underwriting expense ratio for the mortgage segment was 21.0 % for 2019 , compared to
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2,618 | residential 's business objective is to provide attractive returns to its shareholders primarily through dividends . as residential 's asset manager , we believe we can accomplish this on residential 's behalf with the following strategy : we expect to acquire single-family rental assets for residential primarily through the acquisition of non-performing loan portfolios . we believe that the non-performing loan acquisition channel will give residential a cost advantage over other acquisition channels such as foreclosure auctions and other real-estate owned , or “ reo , ” acquisitions because : ◦ we believe residential will be able to purchase single-family assets at a lower price because there are fewer participants in the non-performing loan marketplace leading to a higher discount rate and ◦ we believe residential will be able to purchase non-performing loans at a lower price because the seller does not have to pay the broker commissions and closing costs of up to 10 % of gross proceeds that typically are incurred when selling reo after foreclosure . we expect to generate near-term cash-flow for residential through the modification of non-performing loans and subsequently refinance them at or near the value of the underlying property without waiting for entire loan portfolios to reach stabilized rental state . we expect to operate and manage single-family rental properties for residential at a predictable and attractive cost structure after converting non-performing loans to rental properties due to the competitive property management fees offered to residential under its services agreement with altisource . ◦ residential 's management of single-family rental properties using altisource 's nationwide vendor network is not dependent upon scale . unlike many of residential 's competitors , residential will not require a critical size of single-family rental assets in a geographic area to attain operating efficiencies and ◦ non-performing loan pools typically contain properties that are geographically dispersed requiring a cost-effective nationwide property management system . because of residential 's arrangement with altisource , it is 19 ( ) positioned to acquire properties throughout the united states allowing it to bid on large distributed portfolios that geographically constrained competitors can not . we expect to generate a stable cash flow stream for residential through our management of its preferred investment in a title insurance and reinsurance business that is positioned to perform the title search and insurance services for residential 's network of single-family assets . we believe that our management of these strategies for residential will translate into earnings potential for us and our shareholders through the incentive management fees we earn under the residential asset management agreement . as further described in “ item 1. business , ” we believe that ocwen 's mortgage servicing experience will enable residential to shorten non-performing loan resolution timelines by ( 1 ) converting a portion of the non-performing loan portfolio to performing status and ( 2 ) managing the foreclosure process and timelines with respect to the remainder of the portfolio . we also expect that residential 's 15-year master services agreement with altisource for construction management , leasing and property management services will allow it to operate single-family rental assets at a lower cost than its competitors due to altisource 's established real property management experience and centralized vendor management model . further , because of altisource 's widely-distributed established vendor model , residential can acquire assets nationwide . we believe that this will enable residential to competitively bid on large sub-performing or non-performing mortgage portfolios with assets dispersed throughout the united states . our operating results depend heavily on residential 's operating results . we expect residential 's operating results to be affected by various factors , many of which are beyond its control . generally , we expect that residential 's mortgage loan portfolio may grow at an uneven pace , as opportunities to acquire distressed mortgage loans may be irregularly timed and may involve large portfolios of loans , and the timing and extent of residential 's success in acquiring such loans can not be predicted . residential 's operating results will depend heavily on sourcing sub-performing and non-performing loans . as a result of the economic crisis in 2008 that continues through today , we believe that there is currently a large supply of sub-performing and non-performing loans available to residential for acquisition . a recent study estimates that the average pre-reo delinquency levels that are in excess of levels typically experienced in a balanced market , known as shadow inventory , were approximately 5.1 million units over the past four years . the available amount of shadow inventory provides for a steady acquisition pipeline of assets since residential plans on targeting just a small percentage of the population . because we believe that the majority of acquired loans will be converted into rental property , the key components that will af fect residential 's rental and other revenues over the long-term will be average occupancy and rental rates . we believe that demand for single-family rental assets will either increase or at least remain relatively constant in the future . in response to the economic crisis , the origination of subprime mortgage loans has dramatically declined . in addition , lenders have increased their credit standards for originating new loans . furthermore , a significant number of families can not obtain a new mortgage due to impairment of credit history caused by foreclosure on past loans or the lack of savings to make a down payment . all of the above factors and the shift in demographics point towards a continued robust demand for single family rentals in the future . story_separator_special_tag should residential be successful in acquiring sub-performing and non-performing loans at attractive prices and converting the majority of the collateral to single-family homes , the key components that will affect residential 's rental and other revenues will be average occupancy and rental rates . average occupancy generally increases during times of improving economic growth , as residential 's ability to lease outpaces vacancies that occur upon the expirations of existing leases . average occupancy generally declines during times of slower economic growth , when new vacancies tend to outpace our ability to lease . our expenses will primarily consist of general and administrative expenses , the majority of which will be reimbursed by residential . residential 's expenses will primarily consist of loan servicing fees , rental property expenses , depreciation and amortization , general and administrative expenses fees and interest expense . from time to time , residential 's expenses also will include impairments of assets held for use . loan servicing fees are those expenses residential pays to ocwen to service its acquired loans . rental property operating expenses are expenses associated with residential 's ownership and operation of rental properties and include expenses that are either impacted by occupancy levels such as utilities and turnover costs and expenses that do not vary based on occupancy such as property taxes , insurance and hoa dues . depreciation and amortization is a non-cash expense associated with the ownership of real estate and generally remains relatively consistent each year at an asset level , unless residential makes capital improvements , since residential depreciates its properties on a straight-line basis over a fixed life . general and administrative expenses consist of those costs related to the general operation and overall administration of the business . interest expense consists of the costs to borrow money . 20 ( ) other factors influencing our results the avenue through which a non-performing loan is resolved impacts the amount and timing of revenue residential will receive . the avenue will be dependent on a number of factors that are beyond residential 's control including interest rates , conditions in the financial markets and other factors . in addition , we expect that residential 's real estate assets would decline in value in a rising interest rate environment and that its net income could decline in a rising interest rate environment to the extent such real estate assets are financed with floating rate debt and there is no accompanying increase in rental yield . the state of the real estate market/home prices will determine residential 's proceeds from sale of real estate acquired in settlement of loans . while we make extensive efforts at anticipating real estate price trends and estimate the effects of those trends on the valuations of residential 's portfolios of mortgage loans , future real estate values are subject to influences beyond residential 's control . generally , rising home prices are expected to positively affect residential 's results of real estate acquired in settlement of loans . conversely , declining home prices are expected to negatively affect residential 's results of real estate acquired in settlement of loans . the size of residential 's investment portfolio will also be a key revenue driver for both residential and us . generally , as the size of residential 's investment portfolio grows , the amount of revenue residential expects to generate will increase which thereby would increase our revenues . the larger investment portfolio , however , will drive increased expenses including servicing fees to ocwen and property management fees to altisource . residential may also incur additional interest expense to finance the purchase of its assets which would affect the incentive management fees payable to us . completion of spin-off as of the close of business on december 21 , 2012 , we completed our spin-off from altisource . our shares began “ regular way ” trading on the otcqx market tier operated by otc markets group , inc under the ticker symbol “ aamc ” on december 24 , 2012. the spin-off was treated as a taxable pro rata distribution by altisource of all of our outstanding shares of common stock to the shareholders of record of altisource as of the record date of december 17 , 2012. the shareholders of altisource received one share of our common stock for every 10 shares of altisource common stock held and cash in lieu of fractional shares . results of operations the following sets forth discussion of our results of operations from inception on march 15 , 2012 through december 31 , 2012. because the results of residential are consolidated into our financial statements , the results of operations disclosures set forth below include the results of residential . rental revenues residential has generated no rental revenues for the period from inception to december 31 , 2012. we expect residential to generate rental revenues in 2013 upon acquisition of non-performing loans and conversion to single-family rental properties . gains on acquisition of property residential has generated no gains on acquisition of property for the period from inception to december 31 , 2012. we expect residential to generate gains from acquisition of property in 2013 upon acquisition of non-performing loans and conversion to single-family rental properties . gains on repayment of non-performing loans residential has generated no gains on repayment of non-performing loans for the period from inception to december 31 , 2012. we expect residential to generate gains on repayment of non-performing loans in 2013 through short sales or through modification and refinancing . gains on disposition of property residential generated no gains on disposition of property for the period from inception to december 31 , 2012. we expect residential to generate gains on disposition of property in 2013 through liquidation of the underlying collateral of non-performing loans . 21 ( ) loan servicing fees residential has incurred no loan servicing fees for the period from inception to december 31 , 2012. we
| liquidity and capital resources in conjunction with the separation , we received a capital contribution from altisource of $ 5 million and residential received a capital contribution from altisource of $ 100 million which is unrestricted for each entity 's use . we intend to use the proceeds from this capital contribution to fund operating costs and fund our investment in newsource . residential intends to use the proceeds from its capital contribution to invest in sub-performing and non-performing loans , renovate acquired real estate , fund operating costs and fund its preferred investment in newsource . as a reit , residential generally will need to distribute at least 90 % of its taxable income each year ( subject to certain adjustments ) to its shareholders to qualify as a reit under the code . this distribution requirement limits residential 's ability to retain earnings and thereby replenish or increase capital to support its activities . as a result , in the event residential decides to grow its business , it will evaluate a number of potential capital raising alternatives including the issuance of equity securities , the issuance and sale of debt securities and entering into credit facilities with banks or other lending institutions . because residential 's decision to issue equity through accessing the capital markets or debt through entering into credit agreements will depend on our advice with respect to market conditions and other factors beyond our control , we can not predict or estimate residential 's future capital structure . cash flows our primary cash flow to date has been the capital contributions we and residential received from altisource in conjunction with the separation . 22 ( ) capitalization the following table sets forth our capitalization ( in thousands , except per share amounts ) : december 31 , 2012 common stock outstanding 2,343,213 per share stock price $ 82.00 total capitalization $ 192,143 recent financing activity on december 21 , 2012 , we issued 2.3 million shares of common stock in connection with our separation from altisource . altisource contributed total cash to us of $ 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 in conjunction with the separation , we received a capital contribution from altisource of $ 5 million and residential received a capital contribution from altisource of $ 100 million which is unrestricted for each entity 's use . we intend to use the proceeds from this capital contribution to fund operating costs and fund our investment in newsource . residential intends to use the proceeds from its capital contribution to invest in sub-performing and non-performing loans , renovate acquired real estate , fund operating costs and fund its preferred investment in newsource . as a reit , residential generally will need to distribute at least 90 % of its taxable income each year ( subject to certain adjustments ) to its shareholders to qualify as a reit under the code . this distribution requirement limits residential 's ability to retain earnings and thereby replenish or increase capital to support its activities . as a result , in the event residential decides to grow its business , it will evaluate a number of potential capital raising alternatives including the issuance of equity securities , the issuance and sale of debt securities and entering into credit facilities with banks or other lending institutions . because residential 's decision to issue equity through accessing the capital markets or debt through entering into credit agreements will depend on our advice with respect to market conditions and other factors beyond our control , we can not predict or estimate residential 's future capital structure . cash flows our primary cash flow to date has been the capital contributions we and residential received from altisource in conjunction with the separation . 22 ( ) capitalization the following table sets forth our capitalization ( in thousands , except per share amounts ) : december 31 , 2012 common stock outstanding 2,343,213 per share stock price $ 82.00 total capitalization $ 192,143 recent financing activity on december 21 , 2012 , we issued 2.3 million shares of common stock in connection with our separation from altisource . altisource contributed total cash to us of $ 5 million .
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Suspicious Activity Report : residential 's business objective is to provide attractive returns to its shareholders primarily through dividends . as residential 's asset manager , we believe we can accomplish this on residential 's behalf with the following strategy : we expect to acquire single-family rental assets for residential primarily through the acquisition of non-performing loan portfolios . we believe that the non-performing loan acquisition channel will give residential a cost advantage over other acquisition channels such as foreclosure auctions and other real-estate owned , or “ reo , ” acquisitions because : ◦ we believe residential will be able to purchase single-family assets at a lower price because there are fewer participants in the non-performing loan marketplace leading to a higher discount rate and ◦ we believe residential will be able to purchase non-performing loans at a lower price because the seller does not have to pay the broker commissions and closing costs of up to 10 % of gross proceeds that typically are incurred when selling reo after foreclosure . we expect to generate near-term cash-flow for residential through the modification of non-performing loans and subsequently refinance them at or near the value of the underlying property without waiting for entire loan portfolios to reach stabilized rental state . we expect to operate and manage single-family rental properties for residential at a predictable and attractive cost structure after converting non-performing loans to rental properties due to the competitive property management fees offered to residential under its services agreement with altisource . ◦ residential 's management of single-family rental properties using altisource 's nationwide vendor network is not dependent upon scale . unlike many of residential 's competitors , residential will not require a critical size of single-family rental assets in a geographic area to attain operating efficiencies and ◦ non-performing loan pools typically contain properties that are geographically dispersed requiring a cost-effective nationwide property management system . because of residential 's arrangement with altisource , it is 19 ( ) positioned to acquire properties throughout the united states allowing it to bid on large distributed portfolios that geographically constrained competitors can not . we expect to generate a stable cash flow stream for residential through our management of its preferred investment in a title insurance and reinsurance business that is positioned to perform the title search and insurance services for residential 's network of single-family assets . we believe that our management of these strategies for residential will translate into earnings potential for us and our shareholders through the incentive management fees we earn under the residential asset management agreement . as further described in “ item 1. business , ” we believe that ocwen 's mortgage servicing experience will enable residential to shorten non-performing loan resolution timelines by ( 1 ) converting a portion of the non-performing loan portfolio to performing status and ( 2 ) managing the foreclosure process and timelines with respect to the remainder of the portfolio . we also expect that residential 's 15-year master services agreement with altisource for construction management , leasing and property management services will allow it to operate single-family rental assets at a lower cost than its competitors due to altisource 's established real property management experience and centralized vendor management model . further , because of altisource 's widely-distributed established vendor model , residential can acquire assets nationwide . we believe that this will enable residential to competitively bid on large sub-performing or non-performing mortgage portfolios with assets dispersed throughout the united states . our operating results depend heavily on residential 's operating results . we expect residential 's operating results to be affected by various factors , many of which are beyond its control . generally , we expect that residential 's mortgage loan portfolio may grow at an uneven pace , as opportunities to acquire distressed mortgage loans may be irregularly timed and may involve large portfolios of loans , and the timing and extent of residential 's success in acquiring such loans can not be predicted . residential 's operating results will depend heavily on sourcing sub-performing and non-performing loans . as a result of the economic crisis in 2008 that continues through today , we believe that there is currently a large supply of sub-performing and non-performing loans available to residential for acquisition . a recent study estimates that the average pre-reo delinquency levels that are in excess of levels typically experienced in a balanced market , known as shadow inventory , were approximately 5.1 million units over the past four years . the available amount of shadow inventory provides for a steady acquisition pipeline of assets since residential plans on targeting just a small percentage of the population . because we believe that the majority of acquired loans will be converted into rental property , the key components that will af fect residential 's rental and other revenues over the long-term will be average occupancy and rental rates . we believe that demand for single-family rental assets will either increase or at least remain relatively constant in the future . in response to the economic crisis , the origination of subprime mortgage loans has dramatically declined . in addition , lenders have increased their credit standards for originating new loans . furthermore , a significant number of families can not obtain a new mortgage due to impairment of credit history caused by foreclosure on past loans or the lack of savings to make a down payment . all of the above factors and the shift in demographics point towards a continued robust demand for single family rentals in the future . story_separator_special_tag should residential be successful in acquiring sub-performing and non-performing loans at attractive prices and converting the majority of the collateral to single-family homes , the key components that will affect residential 's rental and other revenues will be average occupancy and rental rates . average occupancy generally increases during times of improving economic growth , as residential 's ability to lease outpaces vacancies that occur upon the expirations of existing leases . average occupancy generally declines during times of slower economic growth , when new vacancies tend to outpace our ability to lease . our expenses will primarily consist of general and administrative expenses , the majority of which will be reimbursed by residential . residential 's expenses will primarily consist of loan servicing fees , rental property expenses , depreciation and amortization , general and administrative expenses fees and interest expense . from time to time , residential 's expenses also will include impairments of assets held for use . loan servicing fees are those expenses residential pays to ocwen to service its acquired loans . rental property operating expenses are expenses associated with residential 's ownership and operation of rental properties and include expenses that are either impacted by occupancy levels such as utilities and turnover costs and expenses that do not vary based on occupancy such as property taxes , insurance and hoa dues . depreciation and amortization is a non-cash expense associated with the ownership of real estate and generally remains relatively consistent each year at an asset level , unless residential makes capital improvements , since residential depreciates its properties on a straight-line basis over a fixed life . general and administrative expenses consist of those costs related to the general operation and overall administration of the business . interest expense consists of the costs to borrow money . 20 ( ) other factors influencing our results the avenue through which a non-performing loan is resolved impacts the amount and timing of revenue residential will receive . the avenue will be dependent on a number of factors that are beyond residential 's control including interest rates , conditions in the financial markets and other factors . in addition , we expect that residential 's real estate assets would decline in value in a rising interest rate environment and that its net income could decline in a rising interest rate environment to the extent such real estate assets are financed with floating rate debt and there is no accompanying increase in rental yield . the state of the real estate market/home prices will determine residential 's proceeds from sale of real estate acquired in settlement of loans . while we make extensive efforts at anticipating real estate price trends and estimate the effects of those trends on the valuations of residential 's portfolios of mortgage loans , future real estate values are subject to influences beyond residential 's control . generally , rising home prices are expected to positively affect residential 's results of real estate acquired in settlement of loans . conversely , declining home prices are expected to negatively affect residential 's results of real estate acquired in settlement of loans . the size of residential 's investment portfolio will also be a key revenue driver for both residential and us . generally , as the size of residential 's investment portfolio grows , the amount of revenue residential expects to generate will increase which thereby would increase our revenues . the larger investment portfolio , however , will drive increased expenses including servicing fees to ocwen and property management fees to altisource . residential may also incur additional interest expense to finance the purchase of its assets which would affect the incentive management fees payable to us . completion of spin-off as of the close of business on december 21 , 2012 , we completed our spin-off from altisource . our shares began “ regular way ” trading on the otcqx market tier operated by otc markets group , inc under the ticker symbol “ aamc ” on december 24 , 2012. the spin-off was treated as a taxable pro rata distribution by altisource of all of our outstanding shares of common stock to the shareholders of record of altisource as of the record date of december 17 , 2012. the shareholders of altisource received one share of our common stock for every 10 shares of altisource common stock held and cash in lieu of fractional shares . results of operations the following sets forth discussion of our results of operations from inception on march 15 , 2012 through december 31 , 2012. because the results of residential are consolidated into our financial statements , the results of operations disclosures set forth below include the results of residential . rental revenues residential has generated no rental revenues for the period from inception to december 31 , 2012. we expect residential to generate rental revenues in 2013 upon acquisition of non-performing loans and conversion to single-family rental properties . gains on acquisition of property residential has generated no gains on acquisition of property for the period from inception to december 31 , 2012. we expect residential to generate gains from acquisition of property in 2013 upon acquisition of non-performing loans and conversion to single-family rental properties . gains on repayment of non-performing loans residential has generated no gains on repayment of non-performing loans for the period from inception to december 31 , 2012. we expect residential to generate gains on repayment of non-performing loans in 2013 through short sales or through modification and refinancing . gains on disposition of property residential generated no gains on disposition of property for the period from inception to december 31 , 2012. we expect residential to generate gains on disposition of property in 2013 through liquidation of the underlying collateral of non-performing loans . 21 ( ) loan servicing fees residential has incurred no loan servicing fees for the period from inception to december 31 , 2012. we
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2,619 | the panel 's recommendation of class iii for this category of device is consistent with the current class iii designation for these device types . if the fda accepts the panel 's determination and issues a final order classifying these devices in class iii , we will be required to file a pma application for impella 2.5. under the 515 program initiative , we will be permitted to continue to market our impella products pursuant to the 510 ( k ) clearance for a sufficient period of time to allow for the submission and review of pma applications relating to our impella products . we intend to submit a modular pma submission for impella by the end of fiscal 2014. a modular pma allows for a parallel submission of preclinical and manufacturing data for review while still preparing the clinical module . we are working with the fda to prepare this modular pma application for our impella products . in november 2011 , we announced symphony , a synchronized minimally invasive implantable cardiac assist device designed to treat chronic patients with moderate heart failure by improving patient hemodynamics and potentially improving their quality of life . the device is designed with the primary goal of stabilizing the progression of heart failure and recovering or remodeling the heart . we are currently conducting first-in-human clinical trials of symphony outside the u.s. this product is not currently approved by the fda for sale in the u.s. on october 26 , 2012 , we were informed that the united states attorney 's office for the district of columbia is conducting an investigation that is focused on the company 's marketing and labeling of the impella 2.5. on october 31 , 2012 , we accepted service of a subpoena related to this investigation . the subpoena seeks documents related to the impella 2.5. we are in the process of responding and we intend to cooperate fully with the subpoena . on november 16 and 19 , 2012 , two purported class action complaints were filed against us and certain of our officers in the u.s. district court for the district of massachusetts by alleged purchasers of our common stock , on behalf of themselves and persons or entities that purchased or acquired our securities between august 5 , 2011 and october 31 , 2012. the complaints allege that the defendants violated the 30 federal securities laws in connection with disclosures related to the fda and the marketing and labeling of our impella 2.5 product and seek damages in an unspecified amount . the court has consolidated these complaints . a consolidated amended complaint was filed by the plaintiffs on may 20 , 2013. additionally , on february 4 , 2013 , an alleged holder of our common stock filed a derivative action on our behalf against each of our directors in the u.s. district court for the district of massachusetts . the complaint alleges that the directors breached their fiduciary duties to us and our stockholders in connection with disclosures related to the fda and the marketing and labeling of our impella 2.5 product and seeks damages in an unspecified amount . we have moved to dismiss the complaint in its entirety , and that motion has been briefed , argued and is under advisement by the court . separately , on january 21 , 2013 and february 5 , 2013 , we received demands from purported stockholders to inspect certain of our books and records related to these matters . in november 2012 , we announced that the impella rp received investigational device exemption , or ide , approval from the fda for use in a pivotal clinical study in the u.s. the impella rp is a percutaneous catheter-based axial flow pump that is designed to allow greater than four liters of flow per minute and is intended to provide the flow and pressure needed to compensate for right side heart failure . during the fourth quarter of fiscal 2013 , we announced the enrollment of the first patient in recover right , an investigational device exemption ( ide ) study of impella rp ( right peripheral ) . we are also conducting initial patient use trials of the impella rp outside of the u.s. this product is not currently available for commercial use . our revenues are primarily generated from our impella line of products . revenues from our non-impella products , largely focused on the heart surgery suite , have been lower recently as we have strategically shifted our sales and marketing efforts towards our impella products and the cath lab . we expect revenues from our non-impella products , including bvs and ab5000 , will continue to decrease as we continue to focus on our impella products . for the year ended march 31 , 2013 , we recognized net income of $ 15.0 million . with the exception of fiscal 2012 and 2013 , we have incurred net losses since our inception . even though we were profitable in fiscal 2013 , we may incur additional losses in the future as we continue to invest in research and development related to our products , conduct clinical studies and registries on our products , expand our commercial infrastructure , pay additional excise taxes as a result of the implementation of the medical device tax in the u.s. in january 2013 , incur additional legal fees to comply with the subpoena received from the department of justice in october 2012 , defend ourselves from other legal claims and invest in new markets such as japan . critical accounting policies and estimates significant estimates our discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements . story_separator_special_tag and defend ourselves from other legal claims and invest in new markets such as japan . fiscal years ended march 31 , 2012 and march 31 , 2011 ( fiscal 2012 and fiscal 2011 ) revenue our revenues are comprised of the following : replace_table_token_7_th total revenues for fiscal 2012 increased by $ 25.2 million , or 25 % , to $ 126.4 million from $ 101.2 million for fiscal 2011. the increase in total revenue was primarily due to higher impella revenue due to greater utilization in the u.s. impella product revenues for fiscal 2012 increased by $ 28.7 million , or 37 % , to $ 106.9 million from $ 78.2 million for fiscal 2011. most of our impella revenue was from disposable product sales of impella 2.5 in the u.s. , as we focused on controlled rollouts for new sites and increasing utilization of these products through continued investment in our sales force and physician training . other product revenues for fiscal 2012 decreased by $ 4.7 million or 30 % , to $ 11.1 million from $ 15.8 million for fiscal 2011. the decrease in other revenue was due to a decline in bvs and ab5000 disposable sales . service and other revenue for fiscal 2012 increased by $ 1.4 million , or 24 % , to $ 7.3 million from $ 5.9 million for fiscal 2011. the increase in service revenue was primarily due to an increase in service contracts , primarily for impella consoles . cost of product revenue cost of product revenue for fiscal 2012 increased by $ 2.5 million or 12 % , to $ 24.5 million from $ 22.0 million for fiscal 2011. gross margin for fiscal 2012 was 81 % compared to 78 % for fiscal 2011. the increase in gross margin was primarily due to higher reorders of impella product disposable pumps and improved manufacturing efficiency . research and development expenses research and development expenses for fiscal 2012 increased by $ 0.5 million , or 2 % , to $ 27.2 million from $ 26.7 million in fiscal 2011. the increase in research and development expenses was due to an increase in spending on product development initiatives associated with 35 impella rp , impella cvad and symphony , and was partially offset by a decrease in clinical trial expenditures as we completed our work associated with the protect ii trial for the impella 2.5. research and development expenses for fiscal 2012 and 2011 included $ 4.9 million and $ 8.8 million , respectively , in clinical trial costs primarily associated with our impella 2.5 u.s. trials . selling , general and administrative expenses selling , general and administrative expenses for fiscal 2012 increased by $ 9.4 million , or 15 % , to $ 71.7 million from $ 62.3 million in fiscal 2011. the increase in selling , general and administrative expenses was primarily due to an increased field headcount as we concentrated our commercial efforts in the u.s. and increased spending on marketing initiatives as we continued to educate physicians on the benefits of hemodynamic support . amortization of intangibles amortization of intangible assets for fiscal 2012 decreased by $ 0.1 million , or 6 % , to $ 1.5 million from $ 1.4 million for fiscal 2011. amortization primarily relates to specifically identified assets from the impella acquisition . gain on sale of worldheart stock in december 2007 , we made a $ 5.0 million investment in worldheart , a developer of an implantable mechanical circulatory support system for chronic heart failure patients . we recorded an impairment charge of $ 5.0 million in fiscal 2008 , reducing the carrying value of the investment to zero . in july 2008 , the note receivable and warrant were converted into common stock of worldheart . in fiscal 2010 we sold 2,543,496 shares of worldheart common stock , which resulted in a gain of $ 6.4 million . in fiscal 2011 we sold our remaining 188,170 shares of worldheart common stock , which resulted in a gain of $ 0.5 million . gain on settlement of investment in december 2011 , we received $ 1.0 million in proceeds in conjunction with a settlement agreement on an investment . income tax provision during fiscal 2012 and 2011 , we recorded a provision for income taxes of $ 1.0 million and $ 0.9 million , respectively . the income tax provision is primarily due to income taxes in germany that we do not expect will be offset by our net operating loss carryforwards in germany and therefore we expect to have a tax liability that we will pay in cash . we have also recorded provisions for income taxes related to our deferred tax liability on our goodwill and alternative minimum tax in the u.s. net income ( loss ) during fiscal 2012 , we incurred net income of $ 1.5 million , or $ 0.04 per basic and diluted share compared to a net loss of $ 11.8 million , or $ 0.32 per share , for the prior fiscal year . the increase in the net income in fiscal 2012 compared to the net loss in fiscal 2011 was due primarily to increased impella sales due to greater demand in the u.s. story_separator_special_tag size= `` 1 `` style= `` font-family : times new roman `` > our operating lease for our facility in danvers , massachusetts expires on february 28 , 2016. monthly rent is as follows : the base rent for november 2008 through june 2010 was $ 40,000 per month ; the base rent for july 2010 through february 2014 is $ 64,350 per month ; and the base rent for march 2014 through february 2016 will be $ 66,000 per month . in addition , we have certain rights to terminate the lease early , subject to the payment of a specified termination fee based on the timing of the termination , as further outlined in
| liquidity and capital resources at march 31 , 2013 , our cash , cash equivalents , and short and long-term marketable securities totaled $ 88.1 million , an increase of $ 10.9 million compared to $ 77.2 million in cash , cash equivalents and short-term marketable securities at march 31 , 2012. we believe that our revenue from product sales together with existing resources will be sufficient to fund our operations for at least the next twelve months , exclusive of activities involving any future acquisitions of products or companies that complement or augment our existing line of products . our primary liquidity requirements are to fund the expansion of our commercial infrastructure in the u.s. , increase our impella manufacturing capacity , increase our inventory levels in order to meet increasing customer demand for impella in the u.s. , fund new product development , pay for fees related to the department of justice investigation , our defense of purported class actions and a derivative action , and our response to information requests and provide for general working capital needs . through march 31 , 2013 , we have funded our operations principally from product sales and through the sale of equity securities . we also generate cash through funded research and development revenue . in november 2012 , our board of directors authorized a stock repurchase program for up to $ 15.0 million of our common stock . we financed the stock repurchase program with our available cash . during the year ended march 31 , 2013 , we repurchased 1,123,587 shares for 36 $ 15.0 million in open market purchases at an average cost of $ 13.39 per share , including commission expense . we completed the purchase of common stock under this stock repurchase program in january 2013. marketable securities at march 31 , 2013 consisted of $ 78.7 million held in funds that invest in u.s. treasury and government-backed securities . we are not a party to any interest rate swaps , currency hedges or derivative contracts of any type and have no exposure to commercial paper or auction rate securities markets .
| 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 march 31 , 2013 , our cash , cash equivalents , and short and long-term marketable securities totaled $ 88.1 million , an increase of $ 10.9 million compared to $ 77.2 million in cash , cash equivalents and short-term marketable securities at march 31 , 2012. we believe that our revenue from product sales together with existing resources will be sufficient to fund our operations for at least the next twelve months , exclusive of activities involving any future acquisitions of products or companies that complement or augment our existing line of products . our primary liquidity requirements are to fund the expansion of our commercial infrastructure in the u.s. , increase our impella manufacturing capacity , increase our inventory levels in order to meet increasing customer demand for impella in the u.s. , fund new product development , pay for fees related to the department of justice investigation , our defense of purported class actions and a derivative action , and our response to information requests and provide for general working capital needs . through march 31 , 2013 , we have funded our operations principally from product sales and through the sale of equity securities . we also generate cash through funded research and development revenue . in november 2012 , our board of directors authorized a stock repurchase program for up to $ 15.0 million of our common stock . we financed the stock repurchase program with our available cash . during the year ended march 31 , 2013 , we repurchased 1,123,587 shares for 36 $ 15.0 million in open market purchases at an average cost of $ 13.39 per share , including commission expense . we completed the purchase of common stock under this stock repurchase program in january 2013. marketable securities at march 31 , 2013 consisted of $ 78.7 million held in funds that invest in u.s. treasury and government-backed securities . we are not a party to any interest rate swaps , currency hedges or derivative contracts of any type and have no exposure to commercial paper or auction rate securities markets .
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Suspicious Activity Report : the panel 's recommendation of class iii for this category of device is consistent with the current class iii designation for these device types . if the fda accepts the panel 's determination and issues a final order classifying these devices in class iii , we will be required to file a pma application for impella 2.5. under the 515 program initiative , we will be permitted to continue to market our impella products pursuant to the 510 ( k ) clearance for a sufficient period of time to allow for the submission and review of pma applications relating to our impella products . we intend to submit a modular pma submission for impella by the end of fiscal 2014. a modular pma allows for a parallel submission of preclinical and manufacturing data for review while still preparing the clinical module . we are working with the fda to prepare this modular pma application for our impella products . in november 2011 , we announced symphony , a synchronized minimally invasive implantable cardiac assist device designed to treat chronic patients with moderate heart failure by improving patient hemodynamics and potentially improving their quality of life . the device is designed with the primary goal of stabilizing the progression of heart failure and recovering or remodeling the heart . we are currently conducting first-in-human clinical trials of symphony outside the u.s. this product is not currently approved by the fda for sale in the u.s. on october 26 , 2012 , we were informed that the united states attorney 's office for the district of columbia is conducting an investigation that is focused on the company 's marketing and labeling of the impella 2.5. on october 31 , 2012 , we accepted service of a subpoena related to this investigation . the subpoena seeks documents related to the impella 2.5. we are in the process of responding and we intend to cooperate fully with the subpoena . on november 16 and 19 , 2012 , two purported class action complaints were filed against us and certain of our officers in the u.s. district court for the district of massachusetts by alleged purchasers of our common stock , on behalf of themselves and persons or entities that purchased or acquired our securities between august 5 , 2011 and october 31 , 2012. the complaints allege that the defendants violated the 30 federal securities laws in connection with disclosures related to the fda and the marketing and labeling of our impella 2.5 product and seek damages in an unspecified amount . the court has consolidated these complaints . a consolidated amended complaint was filed by the plaintiffs on may 20 , 2013. additionally , on february 4 , 2013 , an alleged holder of our common stock filed a derivative action on our behalf against each of our directors in the u.s. district court for the district of massachusetts . the complaint alleges that the directors breached their fiduciary duties to us and our stockholders in connection with disclosures related to the fda and the marketing and labeling of our impella 2.5 product and seeks damages in an unspecified amount . we have moved to dismiss the complaint in its entirety , and that motion has been briefed , argued and is under advisement by the court . separately , on january 21 , 2013 and february 5 , 2013 , we received demands from purported stockholders to inspect certain of our books and records related to these matters . in november 2012 , we announced that the impella rp received investigational device exemption , or ide , approval from the fda for use in a pivotal clinical study in the u.s. the impella rp is a percutaneous catheter-based axial flow pump that is designed to allow greater than four liters of flow per minute and is intended to provide the flow and pressure needed to compensate for right side heart failure . during the fourth quarter of fiscal 2013 , we announced the enrollment of the first patient in recover right , an investigational device exemption ( ide ) study of impella rp ( right peripheral ) . we are also conducting initial patient use trials of the impella rp outside of the u.s. this product is not currently available for commercial use . our revenues are primarily generated from our impella line of products . revenues from our non-impella products , largely focused on the heart surgery suite , have been lower recently as we have strategically shifted our sales and marketing efforts towards our impella products and the cath lab . we expect revenues from our non-impella products , including bvs and ab5000 , will continue to decrease as we continue to focus on our impella products . for the year ended march 31 , 2013 , we recognized net income of $ 15.0 million . with the exception of fiscal 2012 and 2013 , we have incurred net losses since our inception . even though we were profitable in fiscal 2013 , we may incur additional losses in the future as we continue to invest in research and development related to our products , conduct clinical studies and registries on our products , expand our commercial infrastructure , pay additional excise taxes as a result of the implementation of the medical device tax in the u.s. in january 2013 , incur additional legal fees to comply with the subpoena received from the department of justice in october 2012 , defend ourselves from other legal claims and invest in new markets such as japan . critical accounting policies and estimates significant estimates our discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements . story_separator_special_tag and defend ourselves from other legal claims and invest in new markets such as japan . fiscal years ended march 31 , 2012 and march 31 , 2011 ( fiscal 2012 and fiscal 2011 ) revenue our revenues are comprised of the following : replace_table_token_7_th total revenues for fiscal 2012 increased by $ 25.2 million , or 25 % , to $ 126.4 million from $ 101.2 million for fiscal 2011. the increase in total revenue was primarily due to higher impella revenue due to greater utilization in the u.s. impella product revenues for fiscal 2012 increased by $ 28.7 million , or 37 % , to $ 106.9 million from $ 78.2 million for fiscal 2011. most of our impella revenue was from disposable product sales of impella 2.5 in the u.s. , as we focused on controlled rollouts for new sites and increasing utilization of these products through continued investment in our sales force and physician training . other product revenues for fiscal 2012 decreased by $ 4.7 million or 30 % , to $ 11.1 million from $ 15.8 million for fiscal 2011. the decrease in other revenue was due to a decline in bvs and ab5000 disposable sales . service and other revenue for fiscal 2012 increased by $ 1.4 million , or 24 % , to $ 7.3 million from $ 5.9 million for fiscal 2011. the increase in service revenue was primarily due to an increase in service contracts , primarily for impella consoles . cost of product revenue cost of product revenue for fiscal 2012 increased by $ 2.5 million or 12 % , to $ 24.5 million from $ 22.0 million for fiscal 2011. gross margin for fiscal 2012 was 81 % compared to 78 % for fiscal 2011. the increase in gross margin was primarily due to higher reorders of impella product disposable pumps and improved manufacturing efficiency . research and development expenses research and development expenses for fiscal 2012 increased by $ 0.5 million , or 2 % , to $ 27.2 million from $ 26.7 million in fiscal 2011. the increase in research and development expenses was due to an increase in spending on product development initiatives associated with 35 impella rp , impella cvad and symphony , and was partially offset by a decrease in clinical trial expenditures as we completed our work associated with the protect ii trial for the impella 2.5. research and development expenses for fiscal 2012 and 2011 included $ 4.9 million and $ 8.8 million , respectively , in clinical trial costs primarily associated with our impella 2.5 u.s. trials . selling , general and administrative expenses selling , general and administrative expenses for fiscal 2012 increased by $ 9.4 million , or 15 % , to $ 71.7 million from $ 62.3 million in fiscal 2011. the increase in selling , general and administrative expenses was primarily due to an increased field headcount as we concentrated our commercial efforts in the u.s. and increased spending on marketing initiatives as we continued to educate physicians on the benefits of hemodynamic support . amortization of intangibles amortization of intangible assets for fiscal 2012 decreased by $ 0.1 million , or 6 % , to $ 1.5 million from $ 1.4 million for fiscal 2011. amortization primarily relates to specifically identified assets from the impella acquisition . gain on sale of worldheart stock in december 2007 , we made a $ 5.0 million investment in worldheart , a developer of an implantable mechanical circulatory support system for chronic heart failure patients . we recorded an impairment charge of $ 5.0 million in fiscal 2008 , reducing the carrying value of the investment to zero . in july 2008 , the note receivable and warrant were converted into common stock of worldheart . in fiscal 2010 we sold 2,543,496 shares of worldheart common stock , which resulted in a gain of $ 6.4 million . in fiscal 2011 we sold our remaining 188,170 shares of worldheart common stock , which resulted in a gain of $ 0.5 million . gain on settlement of investment in december 2011 , we received $ 1.0 million in proceeds in conjunction with a settlement agreement on an investment . income tax provision during fiscal 2012 and 2011 , we recorded a provision for income taxes of $ 1.0 million and $ 0.9 million , respectively . the income tax provision is primarily due to income taxes in germany that we do not expect will be offset by our net operating loss carryforwards in germany and therefore we expect to have a tax liability that we will pay in cash . we have also recorded provisions for income taxes related to our deferred tax liability on our goodwill and alternative minimum tax in the u.s. net income ( loss ) during fiscal 2012 , we incurred net income of $ 1.5 million , or $ 0.04 per basic and diluted share compared to a net loss of $ 11.8 million , or $ 0.32 per share , for the prior fiscal year . the increase in the net income in fiscal 2012 compared to the net loss in fiscal 2011 was due primarily to increased impella sales due to greater demand in the u.s. story_separator_special_tag size= `` 1 `` style= `` font-family : times new roman `` > our operating lease for our facility in danvers , massachusetts expires on february 28 , 2016. monthly rent is as follows : the base rent for november 2008 through june 2010 was $ 40,000 per month ; the base rent for july 2010 through february 2014 is $ 64,350 per month ; and the base rent for march 2014 through february 2016 will be $ 66,000 per month . in addition , we have certain rights to terminate the lease early , subject to the payment of a specified termination fee based on the timing of the termination , as further outlined in
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2,620 | pursuant to the terms of a merger agreement , velox acquisition corp. , opgen 's wholly-owned subsidiary formed for the express purpose of effecting the merger , merged with and into advandx with advandx surviving as opgen 's wholly-owned subsidiary . opgen and advandx are collectively referred to hereinafter as the “ company . ” the company 's headquarters and principal operations are in gaithersburg , maryland . the company also has operations in copenhagen , denmark , and bogota , colombia . the company operates in one business segment . opgen is a precision medicine company using molecular diagnostics and informatics to help combat infectious disease . the company is developing molecular information products and services for global healthcare settings , helping to guide clinicians with more rapid and actionable information about life threatening infections , improve patient outcomes , and decrease the spread of infections caused by multidrug-resistant microorganisms , or mdros . the company 's proprietary dna tests and informatics address the rising threat of antibiotic resistance by helping physicians and other healthcare providers optimize care decisions for patients with acute infections . the company 's molecular diagnostics and informatics products , product candidates and services combine its acuitas molecular diagnostics and acuitas lighthouse informatics platform for use with its proprietary , curated mdro knowledgebase . the company is working to deliver products and services , some in development , to a global network of customers and partners . the company 's molecular diagnostic tests provide rapid microbial identification and antibiotic resistance gene information . these products include its acuitas antimicrobial resistance , or amr , gene panel ( urine ) test in development for patients at risk for complicated urinary tract infections , or cuti , its acuitas amr gene panel ( isolates ) test in development for testing bacterial isolates , and its quickfish and pna fish fda-cleared and ce-marked diagnostics used to rapidly detect pathogens in positive blood cultures . each of its acuitas amr gene panel tests is available for sale for research use only , or ruo . the company 's acuitas lighthouse informatics systems are cloud-based hipaa compliant informatics offerings that combine clinical lab test results with patient and hospital information to provide analytics and actionable insights to help manage mdros in the hospital and patient care environment . components of the informatics systems include the acuitas lighthouse knowledgebase and the acuitas lighthouse software . the acuitas lighthouse knowledgebase is a relational database management system and a proprietary data warehouse of genomic data matched with antibiotic susceptibility information for bacterial pathogens . the acuitas lighthouse software system includes the acuitas lighthouse portal , a suite of web applications and dashboards , the acuitas lighthouse prediction engine , which is a data analysis software , and other supporting software components . the acuitas lighthouse software can be customized and made specific to a healthcare facility or collaborator , such as a pharmaceutical company . the acuitas lighthouse software is not distributed commercially for antibiotic resistance prediction and is not for use in diagnostic procedures . in july 2019 , it received an additional information , or ai , request from the fda detailing a number of questions related to the submission . at the time , questions from the fda focused on the intended use of the test including the correlation between marker detection and antibiotic resistance , the level of evidence to support resistance marker/organism claims , whole genome sequencing , or wgs , test validation and use as a comparator method , clinical performance of the test compared to wgs and further analysis of individual study results , in silico analysis to support test evaluations , further analysis of analytical study results , additional information regarding instrumentation for use with the test , and test reporting and labeling . on january 6 , 2020 , opgen filed a formal response to the fda 's july 2019 ai request . subsequently , the fda issued a second ai request on january 17 , 2020 to formalize additional questions and remaining requests for information from the earlier july 2019 ai request . the issuance of the january 2020 ai letter effectively placed the acuitas amr gene panel ( isolates ) 510 ( k ) submission on hold until opgen provided a formal response to the questions posed or a 180-day hold period ends , after which the acuitas amr gene panel ( isolates ) 510 ( k ) submission may be considered withdrawn and a second submission required . opgen is continuing to work interactively with the fda to finalize its formal response to the january 2020 ai letter to provide the required responses as well as answering additional questions that arose through this second interactive response review process . opgen is continuing to work with the fda to address additional questions that have arisen during the interactive review process . the fda shared with opgen a working plan to complete the fda 's review of 46 the acuitas amr gene panel ( isolates ) 510 ( k ) submission . however , we anticipate delays to the planned timeline as a result of the ongoing coronavirus pandemic . consequently , the anticipated timeline for the remainder of the second interactive resp onse review , and ultimately the clearance of the acuitas amr gene panel ( isolates ) diagnostic test is currently unknown , although we anticipate that the extensive review process is nearing completion . the company 's operations are subject to certain risks and uncertainties . story_separator_special_tag see additional discussion of the use of estimates relating to share-based compensation , and a discussion of management 's methodology for developing each of the assumptions used in such estimates , in note 3 to the accompanying consolidated financial statements . recent accounting pronouncements on january 1 , 2018 , the company adopted financial accounting standards board ( “ fasb ” ) accounting standards update ( “ asu ” ) 2014-09 , revenue from contracts with customers ( “ asc 606 ” ) , using the modified retrospective method . in adopting the guidance , the company applied the guidance to all contracts and used available practical expedients including assessing contracts with similar terms and conditions on a “ portfolio ” basis . the adoption of this new guidance did not have a material impact on the company 's consolidated financial statements . prior period amounts have not been adjusted in connection with the adoption of this standard . on january 1 , 2018 , the company adopted asu 2016-18 , statement of cash flows : restricted cash , using a retrospective transition method and applied to the periods presented on the condensed consolidated statements of cash flows . restricted cash includes cash and cash equivalents that is restricted through legal contracts , regulations or the company 's intention to use the cash for a specific purpose . the company 's restricted cash primarily related to funds held as collateral for letters of credit . in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) ( “ asc 842 ” ) , which amended the existing accounting standards for leases . the new standard requires lessees to record a right-of-use ( “ rou ” ) asset and a corresponding lease liability on the balance sheet ( with the exception of short-term leases ) , whereas under previous accounting standards , the company 's lease portfolio consisting of operating leases were not recognized on its consolidated balance sheets . the new standard required expanded disclosures regarding leasing arrangements . the new standard was effective for the company beginning january 1 , 2019. the company adopted this guidance effective january 1 , 2019 using the modified retrospective transition method and the following practical expedients : the company did not reassess if any expired or existing contracts are or contain leases . the company did not reassess the classification of any expired or existing leases . additionally , the company made ongoing accounting policy elections whereby the company ( i ) does not recognize rou assets or lease liabilities for short-term leases ( those with original terms of 12 months or less ) and ( ii ) combines lease and non-lease elements of our operating leases . upon adoption of the new guidance on january 1 , 2019 , the company recorded an operating lease right of use asset of approximately $ 2.2 million ( net of existing deferred rent ) and recognized a lease liability of approximately $ 2.5 million . prior to the adoption of asc 842 , deferred rent was recorded and amortized to the extent the total minimum rental payments allocated to the period on a straight-line basis exceeded or were less than the cash payments required . in june 2016 , the fasb issued asu no . 2016-13 , financial instruments - credit losses : measurement of credit losses on financial instruments ( `` asu 2016-13 `` ) . asu 2016-13 requires an entity to measure and recognize expected credit losses for certain financial instruments , including trade receivables , as an allowance that reflects the entity 's current estimate of credit losses expected to be incurred . for available-for-sale debt securities with unrealized losses , the standard requires allowances to be recorded through net income instead of directly reducing the amortized cost of the investment under the current other-than-temporary impairment model . the standard is effective for fiscal years , and interim periods within those fiscal years , beginning after december 15 , 2019 , with early adoption permitted . the company does not expect the adoption of this standard to have a significant impact on its consolidated financial statements . 51 the company has evaluated all other issued and unadopted asus and believes the adoption of these standards will not have a material impact on its results of operations , financial position or cash flows . off-balance sheet arrangements as of december 31 , 2019 and 2018 , the company did not have any off-balance sheet arrangements . jobs act on april 5 , 2012 , the jobs act was enacted . section 107 of the jobs act provides that an “ emerging growth company ” 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 “ emerging growth company ” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies . the company has elected to use the extended transition period for complying with new or revised accounting standards under section 102 ( b ) ( 1 ) of the jobs act . this election allows it to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies . as a result of this election , the company 's financial statements may not be comparable to companies that comply with public company effective dates . subject to certain conditions set forth in the jobs act , as an “ emerging growth company , ” the company intends to rely on certain of these exemptions , including without limitation , ( i ) providing an auditor 's attestation report on our system of internal controls over financial reporting pursuant to section 404 ( b ) of the sarbanes-oxley
| liquidity and capital resources at december 31 , 2019 , the company had cash and cash equivalents of $ 2.7 million , compared to $ 4.6 million at december 31 , 2018. the company has funded its operations primarily through external investor financing arrangements and has raised significant funds in 2019 and 2018 , including : on october 28 , 2019 , the company closed the october 2019 public offering of 2,590,170 units at $ 2.00 per unit and 2,109,830 pre-funded units at $ 1.99 per pre-funded unit . the offering raised gross proceeds of approximately $ 9.4 million and net proceeds of approximately $ 8.3 million . on march 29 , 2019 , the company closed the march 2019 public offering of 450,000 shares of its common stock at a public offering price of $ 12.00 per share . the offering raised gross proceeds of $ 5.4 million and net proceeds of approximately $ 4.8 million . 48 on october 22 , 2018 , the company closed its october 2018 public offering of 11 0 ,000 shares of its common stock at a public offering price of $ 1.45 per share . the offering raised gross proceeds of approximately $ 3.2 million and net proceeds of a pproximately $ 2.8 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 at december 31 , 2019 , the company had cash and cash equivalents of $ 2.7 million , compared to $ 4.6 million at december 31 , 2018. the company has funded its operations primarily through external investor financing arrangements and has raised significant funds in 2019 and 2018 , including : on october 28 , 2019 , the company closed the october 2019 public offering of 2,590,170 units at $ 2.00 per unit and 2,109,830 pre-funded units at $ 1.99 per pre-funded unit . the offering raised gross proceeds of approximately $ 9.4 million and net proceeds of approximately $ 8.3 million . on march 29 , 2019 , the company closed the march 2019 public offering of 450,000 shares of its common stock at a public offering price of $ 12.00 per share . the offering raised gross proceeds of $ 5.4 million and net proceeds of approximately $ 4.8 million . 48 on october 22 , 2018 , the company closed its october 2018 public offering of 11 0 ,000 shares of its common stock at a public offering price of $ 1.45 per share . the offering raised gross proceeds of approximately $ 3.2 million and net proceeds of a pproximately $ 2.8 million .
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Suspicious Activity Report : pursuant to the terms of a merger agreement , velox acquisition corp. , opgen 's wholly-owned subsidiary formed for the express purpose of effecting the merger , merged with and into advandx with advandx surviving as opgen 's wholly-owned subsidiary . opgen and advandx are collectively referred to hereinafter as the “ company . ” the company 's headquarters and principal operations are in gaithersburg , maryland . the company also has operations in copenhagen , denmark , and bogota , colombia . the company operates in one business segment . opgen is a precision medicine company using molecular diagnostics and informatics to help combat infectious disease . the company is developing molecular information products and services for global healthcare settings , helping to guide clinicians with more rapid and actionable information about life threatening infections , improve patient outcomes , and decrease the spread of infections caused by multidrug-resistant microorganisms , or mdros . the company 's proprietary dna tests and informatics address the rising threat of antibiotic resistance by helping physicians and other healthcare providers optimize care decisions for patients with acute infections . the company 's molecular diagnostics and informatics products , product candidates and services combine its acuitas molecular diagnostics and acuitas lighthouse informatics platform for use with its proprietary , curated mdro knowledgebase . the company is working to deliver products and services , some in development , to a global network of customers and partners . the company 's molecular diagnostic tests provide rapid microbial identification and antibiotic resistance gene information . these products include its acuitas antimicrobial resistance , or amr , gene panel ( urine ) test in development for patients at risk for complicated urinary tract infections , or cuti , its acuitas amr gene panel ( isolates ) test in development for testing bacterial isolates , and its quickfish and pna fish fda-cleared and ce-marked diagnostics used to rapidly detect pathogens in positive blood cultures . each of its acuitas amr gene panel tests is available for sale for research use only , or ruo . the company 's acuitas lighthouse informatics systems are cloud-based hipaa compliant informatics offerings that combine clinical lab test results with patient and hospital information to provide analytics and actionable insights to help manage mdros in the hospital and patient care environment . components of the informatics systems include the acuitas lighthouse knowledgebase and the acuitas lighthouse software . the acuitas lighthouse knowledgebase is a relational database management system and a proprietary data warehouse of genomic data matched with antibiotic susceptibility information for bacterial pathogens . the acuitas lighthouse software system includes the acuitas lighthouse portal , a suite of web applications and dashboards , the acuitas lighthouse prediction engine , which is a data analysis software , and other supporting software components . the acuitas lighthouse software can be customized and made specific to a healthcare facility or collaborator , such as a pharmaceutical company . the acuitas lighthouse software is not distributed commercially for antibiotic resistance prediction and is not for use in diagnostic procedures . in july 2019 , it received an additional information , or ai , request from the fda detailing a number of questions related to the submission . at the time , questions from the fda focused on the intended use of the test including the correlation between marker detection and antibiotic resistance , the level of evidence to support resistance marker/organism claims , whole genome sequencing , or wgs , test validation and use as a comparator method , clinical performance of the test compared to wgs and further analysis of individual study results , in silico analysis to support test evaluations , further analysis of analytical study results , additional information regarding instrumentation for use with the test , and test reporting and labeling . on january 6 , 2020 , opgen filed a formal response to the fda 's july 2019 ai request . subsequently , the fda issued a second ai request on january 17 , 2020 to formalize additional questions and remaining requests for information from the earlier july 2019 ai request . the issuance of the january 2020 ai letter effectively placed the acuitas amr gene panel ( isolates ) 510 ( k ) submission on hold until opgen provided a formal response to the questions posed or a 180-day hold period ends , after which the acuitas amr gene panel ( isolates ) 510 ( k ) submission may be considered withdrawn and a second submission required . opgen is continuing to work interactively with the fda to finalize its formal response to the january 2020 ai letter to provide the required responses as well as answering additional questions that arose through this second interactive response review process . opgen is continuing to work with the fda to address additional questions that have arisen during the interactive review process . the fda shared with opgen a working plan to complete the fda 's review of 46 the acuitas amr gene panel ( isolates ) 510 ( k ) submission . however , we anticipate delays to the planned timeline as a result of the ongoing coronavirus pandemic . consequently , the anticipated timeline for the remainder of the second interactive resp onse review , and ultimately the clearance of the acuitas amr gene panel ( isolates ) diagnostic test is currently unknown , although we anticipate that the extensive review process is nearing completion . the company 's operations are subject to certain risks and uncertainties . story_separator_special_tag see additional discussion of the use of estimates relating to share-based compensation , and a discussion of management 's methodology for developing each of the assumptions used in such estimates , in note 3 to the accompanying consolidated financial statements . recent accounting pronouncements on january 1 , 2018 , the company adopted financial accounting standards board ( “ fasb ” ) accounting standards update ( “ asu ” ) 2014-09 , revenue from contracts with customers ( “ asc 606 ” ) , using the modified retrospective method . in adopting the guidance , the company applied the guidance to all contracts and used available practical expedients including assessing contracts with similar terms and conditions on a “ portfolio ” basis . the adoption of this new guidance did not have a material impact on the company 's consolidated financial statements . prior period amounts have not been adjusted in connection with the adoption of this standard . on january 1 , 2018 , the company adopted asu 2016-18 , statement of cash flows : restricted cash , using a retrospective transition method and applied to the periods presented on the condensed consolidated statements of cash flows . restricted cash includes cash and cash equivalents that is restricted through legal contracts , regulations or the company 's intention to use the cash for a specific purpose . the company 's restricted cash primarily related to funds held as collateral for letters of credit . in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) ( “ asc 842 ” ) , which amended the existing accounting standards for leases . the new standard requires lessees to record a right-of-use ( “ rou ” ) asset and a corresponding lease liability on the balance sheet ( with the exception of short-term leases ) , whereas under previous accounting standards , the company 's lease portfolio consisting of operating leases were not recognized on its consolidated balance sheets . the new standard required expanded disclosures regarding leasing arrangements . the new standard was effective for the company beginning january 1 , 2019. the company adopted this guidance effective january 1 , 2019 using the modified retrospective transition method and the following practical expedients : the company did not reassess if any expired or existing contracts are or contain leases . the company did not reassess the classification of any expired or existing leases . additionally , the company made ongoing accounting policy elections whereby the company ( i ) does not recognize rou assets or lease liabilities for short-term leases ( those with original terms of 12 months or less ) and ( ii ) combines lease and non-lease elements of our operating leases . upon adoption of the new guidance on january 1 , 2019 , the company recorded an operating lease right of use asset of approximately $ 2.2 million ( net of existing deferred rent ) and recognized a lease liability of approximately $ 2.5 million . prior to the adoption of asc 842 , deferred rent was recorded and amortized to the extent the total minimum rental payments allocated to the period on a straight-line basis exceeded or were less than the cash payments required . in june 2016 , the fasb issued asu no . 2016-13 , financial instruments - credit losses : measurement of credit losses on financial instruments ( `` asu 2016-13 `` ) . asu 2016-13 requires an entity to measure and recognize expected credit losses for certain financial instruments , including trade receivables , as an allowance that reflects the entity 's current estimate of credit losses expected to be incurred . for available-for-sale debt securities with unrealized losses , the standard requires allowances to be recorded through net income instead of directly reducing the amortized cost of the investment under the current other-than-temporary impairment model . the standard is effective for fiscal years , and interim periods within those fiscal years , beginning after december 15 , 2019 , with early adoption permitted . the company does not expect the adoption of this standard to have a significant impact on its consolidated financial statements . 51 the company has evaluated all other issued and unadopted asus and believes the adoption of these standards will not have a material impact on its results of operations , financial position or cash flows . off-balance sheet arrangements as of december 31 , 2019 and 2018 , the company did not have any off-balance sheet arrangements . jobs act on april 5 , 2012 , the jobs act was enacted . section 107 of the jobs act provides that an “ emerging growth company ” 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 “ emerging growth company ” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies . the company has elected to use the extended transition period for complying with new or revised accounting standards under section 102 ( b ) ( 1 ) of the jobs act . this election allows it to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies . as a result of this election , the company 's financial statements may not be comparable to companies that comply with public company effective dates . subject to certain conditions set forth in the jobs act , as an “ emerging growth company , ” the company intends to rely on certain of these exemptions , including without limitation , ( i ) providing an auditor 's attestation report on our system of internal controls over financial reporting pursuant to section 404 ( b ) of the sarbanes-oxley
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2,621 | 33 non-gaap financial measures in addition to our results determined in accordance with u.s. generally accepted accounting principles ( gaap ) , we believe the following non-gaap financial measures are useful in evaluating our operating performance . annualized recurring revenue ( arr ) is the primary metric that management uses to monitor customer retention and growth and to make operational decisions related to our business . arr equals the annualized value of recurring subscription contracts with active entitlements as of the end of the applicable period . arr provides a normalized and composite view of customer retention , renewal and expansion as well as growth from new customers , that is a supplement to reported revenue . as of change january 31 , 2021 january 31 , 2020 amount % ( in thousands , except percentages ) annualized recurring revenue $ 778,042 $ 705,882 $ 72,160 10 % approximately 7 percentage points of the 10 % increase in arr was due to existing customers expanding their use of cloudera products with the remainder of the increase due to new customers . non-gaap operating income ( loss ) is our income ( loss ) from operations before stock-based compensation expense , amortization of acquired intangible assets an d non-cash real estate impairment charges . w e believe that this non-gaap financial measure , when taken together with the corresponding gaap financial measure , provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business , operating results or future outlook . our management uses , and believes that investors benefit from referring to , this non-gaap financial measure in evaluating our operating results , as well as when planning , forecasting , budgeting and analyzing future periods . we also use non-gaap operating income ( loss ) in conjunction with traditional gaap measures to communicate with our board of directors regarding our financial performance . years ended january 31 , change 2021 2020 amount % ( in thousands , except percentages ) non-gaap operating income ( loss ) $ 146,804 $ ( 39,376 ) $ 186,180 ( 473 ) % we believe non-gaap operating income ( loss ) provides investors and other users of our financial information consistency and comparability with our past financial performance and facilitates period to period comparisons of operations . we believe non-gaap operating income ( loss ) is useful in evaluating our operating performance compared to that of other companies in our industry as this metric generally eliminates the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance . our definition may differ from the definitions used by other companies and therefore comparability may be limited . in addition , other companies may not publish this or similar metrics . thus , our non-gaap operating income ( loss ) should be considered in addition to , not as a substitute for or in isolation from , measures prepared in accordance with gaap . we compensate for these limitations by providing investors and other users of our financial information a reconciliation of loss from operations , the related gaap financial measure , to non-gaap operating income ( loss ) . we encourage investors and others to review our financial information in its entirety , not to rely on any single financial measure and to view non-gaap operating income ( loss ) in conjunction with loss from operations . the following table provides a reconciliation of loss from operations to non-gaap operating ( income ) loss : 34 replace_table_token_3_th for the reasons set forth below , we believe that excluding the components described provides useful information to investors and others in understanding and evaluating our operating results and future prospects in the same manner as we do and in comparing our financial results across accounting periods and to financial results of peer companies . stock-based compensation expense . we exclude stock-based compensation expense from our non-gaap financial measures consistent with how we evaluate our operating results and prepare our operating plans , forecasts and budgets . further , when considering the impact of equity award grants , we focus on overall stockholder dilution rather than the accounting charges associated with such equity grants . the exclusion of the expense facilitates the comparison of results and business outlook for future periods with results for prior periods in order to better understand the long-term performance of our business . amortization of acquired intangible assets . we exclude the amortization of acquired intangible assets from our non-gaap financial measures . although the purchase accounting for an acquisition necessarily reflects the accounting value assigned to intangible assets , our management team excludes the gaap impact of acquired intangible assets when evaluating our operating results . likewise , our management team excludes amortization of acquired intangible assets from our operating plans , forecasts and budgets . the exclusion of the expense facilitates the comparison of results and business outlook for future periods with results for prior periods in order to bet ter understand the long-term performance of our business . non-cash real estate impairment charges . we exclude non-cash real estate impairment charges from our non-gaap financial measures . non-cash real estate impairment charges relate to charges that we incur as a result of activities with respect to our leased office locations . the exclusion of the impairment charges facilitates the comparison of results and business outlook for future periods with results for prior periods in order to better understand the long-term performance of our business . covid-19 update the united states and the global communities in which we operate continue to face severe challenges posed by the covid-19 coronavirus pandemic ( covid-19 or covid-19 pandemic ) . story_separator_special_tag critical accounting policies and estimates our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the united states ( gaap ) . the preparation of these financial statements requires our management to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenue , costs and expenses and related disclosures . our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these judgments and estimates under different assumptions or conditions and any such differences may be material . we believe that our significant accounting policies , which are discussed in note 1 of our “ notes to consolidated financial statements ” included in part ii , item 8 of this annual report on form 10-k , and the accounting policies discussed below , involve a greater degree of complexity , involving management 's judgments and estimates . accordingly , these are the policies we believe are critical to understanding our financial condition and historical and future results of operations . revenue recognition we generate revenue from subscriptions and services . subscription revenue relates to term ( or time-based ) subscription agreements for both open source and propriety software including support and , to a lesser extent , consumption-based revenue from our cloud offerings . services revenue relat es to professional services for the implementation and use of our subscriptions , machine learning expertise and consultation , training and education services and related reimbursable travel costs . we price our subscription offerings based on the number of servers in a cluster , or nodes , core or edge devices , data under management and or the scope of support provi ded and or on a consumption basis for our cloud-based solutions . our consulting services are priced primarily on a time and materials basis , and to a lesser extent , a fixed fee basis , and training services are generally priced based on attenda nce . the transaction price is the total amount of consideration we expect to be entitled to in exchange for the product offerings in a contract . in the instance where our contracts with customers contain variable consideration , we estimate variable consideration primarily using the expected value method . once we have determined the transaction price , the total transaction price is allocated to each performance obligation in a manner depicting the amount of consideration to which we expect to be entitled in exchange for transferring the product ( s ) or service ( s ) to the customer ( allocation objective ) . if the allocation objective is met at contractual prices , no allocations are performed . otherwise , we allocate the transaction price to each performance obligation identified in the contract on a relative stand-alone selling price basis . 43 in order to determine the stand-alone selling price , we conduct a periodic analysis that requires judgment and considers multiple factors that are reasonably available and maximizes the use of observable inputs that may vary over time depending upon the unique facts and circumstances related to each performance obligation . to have observable inputs , we require that a substantial majority of the stand-alone selling prices for a product offering fall within a pricing range . if a directly observable stand-alone selling price does not exist , we estimate a stand-alone selling price range by reviewing external and internal market factor categories , which may include pricing practices , historical discounting , industry practices , service groups and geographic considerations . there is also no hierarchy for how to estimate or otherwise determine the stand-alone selling price for product offerings that are not sold separately , however , we maximize the use of observable data . we believe that this analysis results in an estimate that approximates the price we would charge for the product offerings if they were sold separately . business combinations , goodwill and intangible assets we allocate the fair value of purchase consideration in a business combination to tangible assets , liabilities assumed , and intangible assets acquired based on their estimated fair values . the excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is allocated to goodwill . the allocation of the purchase consideration requires management to make significant estimates and assumptions , especially with respect to intangible assets . these estimates can include , but are not limited to , future expected cash flows from acquired customers and acquired technology from a market participant perspective , useful lives and discount rates . management 's estimates of fair value are based upon assumptions believed to be reasonable , but which are inherently uncertain and unpredictable , and , as a result , actual results may differ from estimates . during the measurement period , which is up to one year from the acquisition or merger closing date , we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill . upon the conclusion of the measurement period , any subsequent adjustments are recorded to earnings . we review our goodwill for impairment annually during our fourth quarter of each fiscal year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of any one of our reporting units below its respective carrying amount . in performing our goodwill impairment test , we may first perform a qualitative assessment , which requires that we consider events or circumstances including macroeconomic conditions , industry and market considerations , cost factors , overall financial performance , changes in management or key personnel , changes in strategy , changes in customers ,
| liquidity and capital resources as of january 31 , 2021 , our principal sources of liquidity were cash , cash equivalents and marketable securities totaling $ 769.7 million which are held for working capital purposes . our cash equivalents are comprised primarily of money market funds and our marketable securities are comprised of corporate notes and obligations , u.s. agency obligations , certificates of deposit , commercial paper , municipal securities , u.s. treasury securities and asset-backed securities . to date , our principal sources of liquidity has been payments received from customers in addition to amounts raised in our debt and equity offerings . on december 22 , 2020 , we entered into a senior secured credit facility , which provides for a $ 500.0 million term loan facility with a syndicate of lenders ( term loan ) and borrowed the full amount on december 22 , 2020 to be used for general corporate purposes , including to fund repurchases of our common stock and to pay transaction costs and expenses in connection therewith . repayments made under the term loan are equal to 1.0 % of the principal amount in equal quarterly installments for the life of the term loan , with remainder due at maturity on december 22 , 2027. at our option , the term loan will bear interest at a per annum rate equal to a eurocurrency rate plus 2.50 % or a base rate plus 1.50 % , both subject to a 3.25 % floor .
| 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 january 31 , 2021 , our principal sources of liquidity were cash , cash equivalents and marketable securities totaling $ 769.7 million which are held for working capital purposes . our cash equivalents are comprised primarily of money market funds and our marketable securities are comprised of corporate notes and obligations , u.s. agency obligations , certificates of deposit , commercial paper , municipal securities , u.s. treasury securities and asset-backed securities . to date , our principal sources of liquidity has been payments received from customers in addition to amounts raised in our debt and equity offerings . on december 22 , 2020 , we entered into a senior secured credit facility , which provides for a $ 500.0 million term loan facility with a syndicate of lenders ( term loan ) and borrowed the full amount on december 22 , 2020 to be used for general corporate purposes , including to fund repurchases of our common stock and to pay transaction costs and expenses in connection therewith . repayments made under the term loan are equal to 1.0 % of the principal amount in equal quarterly installments for the life of the term loan , with remainder due at maturity on december 22 , 2027. at our option , the term loan will bear interest at a per annum rate equal to a eurocurrency rate plus 2.50 % or a base rate plus 1.50 % , both subject to a 3.25 % floor .
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Suspicious Activity Report : 33 non-gaap financial measures in addition to our results determined in accordance with u.s. generally accepted accounting principles ( gaap ) , we believe the following non-gaap financial measures are useful in evaluating our operating performance . annualized recurring revenue ( arr ) is the primary metric that management uses to monitor customer retention and growth and to make operational decisions related to our business . arr equals the annualized value of recurring subscription contracts with active entitlements as of the end of the applicable period . arr provides a normalized and composite view of customer retention , renewal and expansion as well as growth from new customers , that is a supplement to reported revenue . as of change january 31 , 2021 january 31 , 2020 amount % ( in thousands , except percentages ) annualized recurring revenue $ 778,042 $ 705,882 $ 72,160 10 % approximately 7 percentage points of the 10 % increase in arr was due to existing customers expanding their use of cloudera products with the remainder of the increase due to new customers . non-gaap operating income ( loss ) is our income ( loss ) from operations before stock-based compensation expense , amortization of acquired intangible assets an d non-cash real estate impairment charges . w e believe that this non-gaap financial measure , when taken together with the corresponding gaap financial measure , provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business , operating results or future outlook . our management uses , and believes that investors benefit from referring to , this non-gaap financial measure in evaluating our operating results , as well as when planning , forecasting , budgeting and analyzing future periods . we also use non-gaap operating income ( loss ) in conjunction with traditional gaap measures to communicate with our board of directors regarding our financial performance . years ended january 31 , change 2021 2020 amount % ( in thousands , except percentages ) non-gaap operating income ( loss ) $ 146,804 $ ( 39,376 ) $ 186,180 ( 473 ) % we believe non-gaap operating income ( loss ) provides investors and other users of our financial information consistency and comparability with our past financial performance and facilitates period to period comparisons of operations . we believe non-gaap operating income ( loss ) is useful in evaluating our operating performance compared to that of other companies in our industry as this metric generally eliminates the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance . our definition may differ from the definitions used by other companies and therefore comparability may be limited . in addition , other companies may not publish this or similar metrics . thus , our non-gaap operating income ( loss ) should be considered in addition to , not as a substitute for or in isolation from , measures prepared in accordance with gaap . we compensate for these limitations by providing investors and other users of our financial information a reconciliation of loss from operations , the related gaap financial measure , to non-gaap operating income ( loss ) . we encourage investors and others to review our financial information in its entirety , not to rely on any single financial measure and to view non-gaap operating income ( loss ) in conjunction with loss from operations . the following table provides a reconciliation of loss from operations to non-gaap operating ( income ) loss : 34 replace_table_token_3_th for the reasons set forth below , we believe that excluding the components described provides useful information to investors and others in understanding and evaluating our operating results and future prospects in the same manner as we do and in comparing our financial results across accounting periods and to financial results of peer companies . stock-based compensation expense . we exclude stock-based compensation expense from our non-gaap financial measures consistent with how we evaluate our operating results and prepare our operating plans , forecasts and budgets . further , when considering the impact of equity award grants , we focus on overall stockholder dilution rather than the accounting charges associated with such equity grants . the exclusion of the expense facilitates the comparison of results and business outlook for future periods with results for prior periods in order to better understand the long-term performance of our business . amortization of acquired intangible assets . we exclude the amortization of acquired intangible assets from our non-gaap financial measures . although the purchase accounting for an acquisition necessarily reflects the accounting value assigned to intangible assets , our management team excludes the gaap impact of acquired intangible assets when evaluating our operating results . likewise , our management team excludes amortization of acquired intangible assets from our operating plans , forecasts and budgets . the exclusion of the expense facilitates the comparison of results and business outlook for future periods with results for prior periods in order to bet ter understand the long-term performance of our business . non-cash real estate impairment charges . we exclude non-cash real estate impairment charges from our non-gaap financial measures . non-cash real estate impairment charges relate to charges that we incur as a result of activities with respect to our leased office locations . the exclusion of the impairment charges facilitates the comparison of results and business outlook for future periods with results for prior periods in order to better understand the long-term performance of our business . covid-19 update the united states and the global communities in which we operate continue to face severe challenges posed by the covid-19 coronavirus pandemic ( covid-19 or covid-19 pandemic ) . story_separator_special_tag critical accounting policies and estimates our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the united states ( gaap ) . the preparation of these financial statements requires our management to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenue , costs and expenses and related disclosures . our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these judgments and estimates under different assumptions or conditions and any such differences may be material . we believe that our significant accounting policies , which are discussed in note 1 of our “ notes to consolidated financial statements ” included in part ii , item 8 of this annual report on form 10-k , and the accounting policies discussed below , involve a greater degree of complexity , involving management 's judgments and estimates . accordingly , these are the policies we believe are critical to understanding our financial condition and historical and future results of operations . revenue recognition we generate revenue from subscriptions and services . subscription revenue relates to term ( or time-based ) subscription agreements for both open source and propriety software including support and , to a lesser extent , consumption-based revenue from our cloud offerings . services revenue relat es to professional services for the implementation and use of our subscriptions , machine learning expertise and consultation , training and education services and related reimbursable travel costs . we price our subscription offerings based on the number of servers in a cluster , or nodes , core or edge devices , data under management and or the scope of support provi ded and or on a consumption basis for our cloud-based solutions . our consulting services are priced primarily on a time and materials basis , and to a lesser extent , a fixed fee basis , and training services are generally priced based on attenda nce . the transaction price is the total amount of consideration we expect to be entitled to in exchange for the product offerings in a contract . in the instance where our contracts with customers contain variable consideration , we estimate variable consideration primarily using the expected value method . once we have determined the transaction price , the total transaction price is allocated to each performance obligation in a manner depicting the amount of consideration to which we expect to be entitled in exchange for transferring the product ( s ) or service ( s ) to the customer ( allocation objective ) . if the allocation objective is met at contractual prices , no allocations are performed . otherwise , we allocate the transaction price to each performance obligation identified in the contract on a relative stand-alone selling price basis . 43 in order to determine the stand-alone selling price , we conduct a periodic analysis that requires judgment and considers multiple factors that are reasonably available and maximizes the use of observable inputs that may vary over time depending upon the unique facts and circumstances related to each performance obligation . to have observable inputs , we require that a substantial majority of the stand-alone selling prices for a product offering fall within a pricing range . if a directly observable stand-alone selling price does not exist , we estimate a stand-alone selling price range by reviewing external and internal market factor categories , which may include pricing practices , historical discounting , industry practices , service groups and geographic considerations . there is also no hierarchy for how to estimate or otherwise determine the stand-alone selling price for product offerings that are not sold separately , however , we maximize the use of observable data . we believe that this analysis results in an estimate that approximates the price we would charge for the product offerings if they were sold separately . business combinations , goodwill and intangible assets we allocate the fair value of purchase consideration in a business combination to tangible assets , liabilities assumed , and intangible assets acquired based on their estimated fair values . the excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is allocated to goodwill . the allocation of the purchase consideration requires management to make significant estimates and assumptions , especially with respect to intangible assets . these estimates can include , but are not limited to , future expected cash flows from acquired customers and acquired technology from a market participant perspective , useful lives and discount rates . management 's estimates of fair value are based upon assumptions believed to be reasonable , but which are inherently uncertain and unpredictable , and , as a result , actual results may differ from estimates . during the measurement period , which is up to one year from the acquisition or merger closing date , we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill . upon the conclusion of the measurement period , any subsequent adjustments are recorded to earnings . we review our goodwill for impairment annually during our fourth quarter of each fiscal year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of any one of our reporting units below its respective carrying amount . in performing our goodwill impairment test , we may first perform a qualitative assessment , which requires that we consider events or circumstances including macroeconomic conditions , industry and market considerations , cost factors , overall financial performance , changes in management or key personnel , changes in strategy , changes in customers ,
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2,622 | we record customer rebates and discounts as a component of net sales and record vendor rebates and discounts as a component of cost of sales . selling , general and administrative expenses are comprised mainly of employee salaries , commissions and other employee related expenses , facility costs , costs to maintain our it infrastructure , public company compliance costs and professional fees . we monitor our level of accounts payable , inventory turnover and accounts receivable turnover which are measures of how efficiently we utilize capital in our business . the company 's sales , gross profit and results of operations have fluctuated and are expected to continue to fluctuate on a quarterly basis as a result of a number of factors , including but not limited to : the condition of the software industry in general , shifts in demand for software products , pricing , industry shipments of new software products or upgrades , fluctuations in merchandise returns , adverse weather conditions that affect response , distribution or shipping , shifts in the timing of holidays and changes in the company 's product offerings . the company 's operating expenditures are based on sales forecasts . if sales do not meet expectations in any given quarter , operating results may be materially adversely affected . dividend policy and share repurchase program . historically we have sought to return value to investors through the payment of quarterly dividends and share repurchases . total dividends paid and the dollar value of shares repurchased were $ 3.0 million and $ 3.7 million for the year ended december 31 , 2020 , respectively , and $ 3.1 and $ 0.1 million for the year ended december 31 , 2019 , respectively . the payment of future dividends is at the discretion of our board of directors and dependent on results of operations , projected capital requirements and other factors the board of directors may find relevant . stock volatility . the technology , distribution and services sectors of the united states stock markets is subject to substantial volatility . numerous conditions which impact these sectors or the stock market in general or the company in particular , whether or not such events relate to or reflect upon the company 's operating performance , could adversely affect the market price of the company 's common stock . furthermore , fluctuations in the company 's operating results , announcements regarding litigation , the loss of a significant vendor partner or customer , increased competition , reduced vendor incentives and trade credit , higher operating expenses , and other developments , could have a significant impact on the market price of our common stock . 19 financial overview net sales increased 21 % , or $ 42.8 million , to $ 251.6 million for the year ended december 31 , 2020 , compared to $ 208.8 million for the same period in 2019. gross profit increased 10 % , or $ 3.0 million , to $ 33.0 million for the year ended december 31 , 2020 , compared to $ 30.0 million for the same period in 2019. selling , general and administrative ( “ sg & a ” ) expenses increased 15 % , or $ 3.0 million , to $ 23.9 million for the year ended december 31 , 2020 , compared to $ 20.9 million for the same period in 2019. legal and financial advisory expenses , net - unsolicited bid and related matters were $ 1.6 million for the year ended december 31 , 2020 compared to no expense for the same period in 2019. acquisition related costs were $ 1.5 million for the year ended december 31 , 2020 compared to no expense for the same period in 2019. amortization and depreciation expense increased $ 0.2 million to $ 0.7 million for the year ended december 31 , 2020 compared to $ 0.5 million for the same period in the prior year . net income was $ 4.5 million for the year ended december 31 , 2020 compared to $ 6.8 million for the same period in 2019. weighted average diluted shares outstanding decreased by 3 % from the prior year . income per diluted share was $ 1.01 for the year ended december 31 , 2020 compared to $ 1.51 for the same period in 2019 . critical accounting policies and estimates management 's discussion and analysis of the company 's financial condition and results of operations are based upon the company 's consolidated financial statements that have been prepared in accordance with generally accepted accounting principles in the united states of america ( “ us gaap ” ) . the preparation of these financial statements requires the company 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 on-going basis , the company evaluates its estimates , including those related to product returns , bad debts , inventories , investments , intangible assets , income taxes , stock-based compensation , contingencies and litigation . the company bases its estimates on historical experience and on various other assumptions that are believed to be 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 . actual results may differ from these estimates . the company believes the following critical accounting policies used in the preparation of its consolidated financial statements affect its more significant judgments and estimates . revenue the company utilizes judgment regarding performance obligations inherent in the products for services it sells including , whether ongoing maintenance obligations performed by third party vendors are distinct from the related software licenses , and allocation of sales prices among distinct performance obligations . story_separator_special_tag one major customer accounted for 24 % and the other for 14 % , of our total net sales during the year ended december 31 , 2020. these same customers accounted for 19 % and 9 % , of total net accounts receivable as of december 31 , 2020 . gross profit gross profit for the year ended december 31 , 2020 increased 10 % , or $ 3.0 million , to $ 33.0 million compared to $ 30.0 million for the same period in 2019. distribution segment gross profit for the year ended december 31 , 2020 increased 9 % , or $ 2.3 million , to $ 29.1 million compared to $ 26.8 million for the same period in 2019 due to higher net sales discussed above , which were partially offset by the impact of lower gross margin as a percentage of net sales . the decline in gross margin as a percentage of net sales was partially attributable to early pay discount programs implemented in 2020 , resulting in lower accounts receivable and increased cash and liquidity ( see liquidity and capital resources ) . solutions segment gross profit for the year ended december 31 , 2020 increased 22 % , or $ 0.7 million , to $ 3.9 million compared to $ 3.2 million for the same period in 2019 due to the increased level of net sales discussed above and a higher 25 gross margin as a percentage of net sales resulting from the inclusion of the cdf business . cdf solutions sales gross profit as a percentage of net sales is generally higher than our historical average . customer rebates and discounts for the year ended december 31 , 2020 were $ 6.3 million compared to $ 3.8 million for the same period in the prior year . this increase is attributable to a change in payment terms with one of our larger customers during the second quarter of 2020 and timing of payments from other larger customers . customer rebates and discounts vary based on terms of rebate and early pay discount programs offered to customers and timing of payments ultimately received from our customers . vendor rebates and discounts for the year ended december 31 , 2020 were $ 3.9 million compared to $ 3.3 million for the same period in 2019. vendor rebates are dependent on reaching certain targets set by our vendors . the company monitors vendor rebate levels , competitive pricing , and gross profit margins carefully . we anticipate that price competition in our market will continue in both of our business segments . selling , general and administrative expenses sg & a expenses for the year ended december 31 , 2020 increased 15 % , or $ 3.0 million , to $ 23.9 million , compared to $ 20.9 million for the same period in 2019 primarily due to expenses from interwork and cdf for the period from acquisition to december 31 , 2020. sales related salaries and commissions , higher stock compensation expense and higher professional fees related to our obligations as a public company also increased during the period . sg & a expenses were 9.5 % of net sales for the year ended december 31 , 2020 , compared to 10.0 % for the same period in 2019 . the company expects that its sg & a expenses , as a percentage of net sales , may vary depending on changes in sales volume , as well as the levels of continuing investments in key growth initiatives . we plan to continue to expand our investment in information technology and sales marketing to support the growth of our business . legal and financial advisory expenses , net – unsolicited bid and related matters legal and financial advisory expenses , net – unsolicited bid and related matters for year ended december 31 , 2020 were $ 1.6 million compared to no expense for the same period in the prior year . these expenses relate to the costs incurred in conjunction with the unsolicited bid and shareholder demand discussed below . acquisition related costs acquisition related costs for the year ended december 31 , 2020 were $ 1.5 million compared to no expense for the same period in the prior year . these expenses relate to costs incurred in conjunction with the acquisition of interwork and cdf . foreign currency transaction gain foreign currency transaction gain for the year ended december 31 , 2020 was $ 0.8 million compared to $ 0.1 million in for the same period in 2019. these expenses primarily relate to the change in the value of accounts payable and other monetary assets and liabilities denominated in currencies other than their functional currency between the date of origination and settlement . income taxes for the year ended december 31 , 2020 , the company recorded a provision for income taxes of $ 1.7 million , or 28.1 % of income before taxes , compared to $ 2.3 million , or 25.0 % of income before taxes for the same period in 2019. the company 's effective tax rate for the year ended december 31 , 2020 was impacted by limitations on the deductibility of certain facilitative acquisition related costs . 26 unsolicited bid and shareholder demand on july 15 , 2019 and august 23 , 2019 , the company received letters from shepherd kaplan krochuk , llc ( “ skk ” ) and north & webster ssg , llc ( “ n & w ” ) announcing an unsolicited bid to acquire the company . the proposal was subject to a number of contingencies , including the need for skk and n & w to secure financing to complete a transaction . on november 27 , 2019 , skk , n & w , and messrs. shepherd , kaplan , krochuk and kidston
| liquidity and capital resources our cash and cash equivalents increased by $ 14.3 million to $ 29.3 million at december 31 , 2020 from $ 15.0 million at december 31 , 2019. the increase in cash and cash equivalents was primarily the result of $ 38.0 million of cash and cash equivalents provided by operating activities resulting from a change in payment terms with one of our customers , offset by $ 16.8 million of cash for acquisitions , $ 3.7 million of cash used to purchase treasury stock and $ 3.0 million of cash used for dividends . net cash provided by operating activities for the year ended december 31 , 2020 was $ 38.0 million , comprised of net income adjusted for non-cash items of $ 6.7 million and changes in operating assets and liabilities of $ 31.3 million . during the second quarter of 2020 , we implemented a change in the payment terms with one of our large customers . the impact of this change in payment terms resulted in a reduction of our accounts receivable and corresponding increase in cash of approximately $ 30 million from the date the program was implemented . this change in terms also had the impact of reducing our net sales and gross profit by approximately $ 1.1 million for the year ended december 31 , 2020 , however , we believe the additional liquidity will improve our return on equity and provide us greater flexibility in pursuing our strategic objectives . net cash and cash equivalents used in investing activities during the year ended december 31 , 2020 primarily consisted of payments for acquisitions . on april 30 , 2020 , the company completed the purchase of interwork us and interwork canada for an aggregate purchase price of $ 5 million canadian dollar ( equivalent to $ 3.6 million usd ) , subject to certain working capital adjustments , paid at closing plus a potential post-closing $ 1.1 million canadian dollar ( equivalent to $ 0.8 million usd ) earn-out .
| 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 cash and cash equivalents increased by $ 14.3 million to $ 29.3 million at december 31 , 2020 from $ 15.0 million at december 31 , 2019. the increase in cash and cash equivalents was primarily the result of $ 38.0 million of cash and cash equivalents provided by operating activities resulting from a change in payment terms with one of our customers , offset by $ 16.8 million of cash for acquisitions , $ 3.7 million of cash used to purchase treasury stock and $ 3.0 million of cash used for dividends . net cash provided by operating activities for the year ended december 31 , 2020 was $ 38.0 million , comprised of net income adjusted for non-cash items of $ 6.7 million and changes in operating assets and liabilities of $ 31.3 million . during the second quarter of 2020 , we implemented a change in the payment terms with one of our large customers . the impact of this change in payment terms resulted in a reduction of our accounts receivable and corresponding increase in cash of approximately $ 30 million from the date the program was implemented . this change in terms also had the impact of reducing our net sales and gross profit by approximately $ 1.1 million for the year ended december 31 , 2020 , however , we believe the additional liquidity will improve our return on equity and provide us greater flexibility in pursuing our strategic objectives . net cash and cash equivalents used in investing activities during the year ended december 31 , 2020 primarily consisted of payments for acquisitions . on april 30 , 2020 , the company completed the purchase of interwork us and interwork canada for an aggregate purchase price of $ 5 million canadian dollar ( equivalent to $ 3.6 million usd ) , subject to certain working capital adjustments , paid at closing plus a potential post-closing $ 1.1 million canadian dollar ( equivalent to $ 0.8 million usd ) earn-out .
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Suspicious Activity Report : we record customer rebates and discounts as a component of net sales and record vendor rebates and discounts as a component of cost of sales . selling , general and administrative expenses are comprised mainly of employee salaries , commissions and other employee related expenses , facility costs , costs to maintain our it infrastructure , public company compliance costs and professional fees . we monitor our level of accounts payable , inventory turnover and accounts receivable turnover which are measures of how efficiently we utilize capital in our business . the company 's sales , gross profit and results of operations have fluctuated and are expected to continue to fluctuate on a quarterly basis as a result of a number of factors , including but not limited to : the condition of the software industry in general , shifts in demand for software products , pricing , industry shipments of new software products or upgrades , fluctuations in merchandise returns , adverse weather conditions that affect response , distribution or shipping , shifts in the timing of holidays and changes in the company 's product offerings . the company 's operating expenditures are based on sales forecasts . if sales do not meet expectations in any given quarter , operating results may be materially adversely affected . dividend policy and share repurchase program . historically we have sought to return value to investors through the payment of quarterly dividends and share repurchases . total dividends paid and the dollar value of shares repurchased were $ 3.0 million and $ 3.7 million for the year ended december 31 , 2020 , respectively , and $ 3.1 and $ 0.1 million for the year ended december 31 , 2019 , respectively . the payment of future dividends is at the discretion of our board of directors and dependent on results of operations , projected capital requirements and other factors the board of directors may find relevant . stock volatility . the technology , distribution and services sectors of the united states stock markets is subject to substantial volatility . numerous conditions which impact these sectors or the stock market in general or the company in particular , whether or not such events relate to or reflect upon the company 's operating performance , could adversely affect the market price of the company 's common stock . furthermore , fluctuations in the company 's operating results , announcements regarding litigation , the loss of a significant vendor partner or customer , increased competition , reduced vendor incentives and trade credit , higher operating expenses , and other developments , could have a significant impact on the market price of our common stock . 19 financial overview net sales increased 21 % , or $ 42.8 million , to $ 251.6 million for the year ended december 31 , 2020 , compared to $ 208.8 million for the same period in 2019. gross profit increased 10 % , or $ 3.0 million , to $ 33.0 million for the year ended december 31 , 2020 , compared to $ 30.0 million for the same period in 2019. selling , general and administrative ( “ sg & a ” ) expenses increased 15 % , or $ 3.0 million , to $ 23.9 million for the year ended december 31 , 2020 , compared to $ 20.9 million for the same period in 2019. legal and financial advisory expenses , net - unsolicited bid and related matters were $ 1.6 million for the year ended december 31 , 2020 compared to no expense for the same period in 2019. acquisition related costs were $ 1.5 million for the year ended december 31 , 2020 compared to no expense for the same period in 2019. amortization and depreciation expense increased $ 0.2 million to $ 0.7 million for the year ended december 31 , 2020 compared to $ 0.5 million for the same period in the prior year . net income was $ 4.5 million for the year ended december 31 , 2020 compared to $ 6.8 million for the same period in 2019. weighted average diluted shares outstanding decreased by 3 % from the prior year . income per diluted share was $ 1.01 for the year ended december 31 , 2020 compared to $ 1.51 for the same period in 2019 . critical accounting policies and estimates management 's discussion and analysis of the company 's financial condition and results of operations are based upon the company 's consolidated financial statements that have been prepared in accordance with generally accepted accounting principles in the united states of america ( “ us gaap ” ) . the preparation of these financial statements requires the company 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 on-going basis , the company evaluates its estimates , including those related to product returns , bad debts , inventories , investments , intangible assets , income taxes , stock-based compensation , contingencies and litigation . the company bases its estimates on historical experience and on various other assumptions that are believed to be 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 . actual results may differ from these estimates . the company believes the following critical accounting policies used in the preparation of its consolidated financial statements affect its more significant judgments and estimates . revenue the company utilizes judgment regarding performance obligations inherent in the products for services it sells including , whether ongoing maintenance obligations performed by third party vendors are distinct from the related software licenses , and allocation of sales prices among distinct performance obligations . story_separator_special_tag one major customer accounted for 24 % and the other for 14 % , of our total net sales during the year ended december 31 , 2020. these same customers accounted for 19 % and 9 % , of total net accounts receivable as of december 31 , 2020 . gross profit gross profit for the year ended december 31 , 2020 increased 10 % , or $ 3.0 million , to $ 33.0 million compared to $ 30.0 million for the same period in 2019. distribution segment gross profit for the year ended december 31 , 2020 increased 9 % , or $ 2.3 million , to $ 29.1 million compared to $ 26.8 million for the same period in 2019 due to higher net sales discussed above , which were partially offset by the impact of lower gross margin as a percentage of net sales . the decline in gross margin as a percentage of net sales was partially attributable to early pay discount programs implemented in 2020 , resulting in lower accounts receivable and increased cash and liquidity ( see liquidity and capital resources ) . solutions segment gross profit for the year ended december 31 , 2020 increased 22 % , or $ 0.7 million , to $ 3.9 million compared to $ 3.2 million for the same period in 2019 due to the increased level of net sales discussed above and a higher 25 gross margin as a percentage of net sales resulting from the inclusion of the cdf business . cdf solutions sales gross profit as a percentage of net sales is generally higher than our historical average . customer rebates and discounts for the year ended december 31 , 2020 were $ 6.3 million compared to $ 3.8 million for the same period in the prior year . this increase is attributable to a change in payment terms with one of our larger customers during the second quarter of 2020 and timing of payments from other larger customers . customer rebates and discounts vary based on terms of rebate and early pay discount programs offered to customers and timing of payments ultimately received from our customers . vendor rebates and discounts for the year ended december 31 , 2020 were $ 3.9 million compared to $ 3.3 million for the same period in 2019. vendor rebates are dependent on reaching certain targets set by our vendors . the company monitors vendor rebate levels , competitive pricing , and gross profit margins carefully . we anticipate that price competition in our market will continue in both of our business segments . selling , general and administrative expenses sg & a expenses for the year ended december 31 , 2020 increased 15 % , or $ 3.0 million , to $ 23.9 million , compared to $ 20.9 million for the same period in 2019 primarily due to expenses from interwork and cdf for the period from acquisition to december 31 , 2020. sales related salaries and commissions , higher stock compensation expense and higher professional fees related to our obligations as a public company also increased during the period . sg & a expenses were 9.5 % of net sales for the year ended december 31 , 2020 , compared to 10.0 % for the same period in 2019 . the company expects that its sg & a expenses , as a percentage of net sales , may vary depending on changes in sales volume , as well as the levels of continuing investments in key growth initiatives . we plan to continue to expand our investment in information technology and sales marketing to support the growth of our business . legal and financial advisory expenses , net – unsolicited bid and related matters legal and financial advisory expenses , net – unsolicited bid and related matters for year ended december 31 , 2020 were $ 1.6 million compared to no expense for the same period in the prior year . these expenses relate to the costs incurred in conjunction with the unsolicited bid and shareholder demand discussed below . acquisition related costs acquisition related costs for the year ended december 31 , 2020 were $ 1.5 million compared to no expense for the same period in the prior year . these expenses relate to costs incurred in conjunction with the acquisition of interwork and cdf . foreign currency transaction gain foreign currency transaction gain for the year ended december 31 , 2020 was $ 0.8 million compared to $ 0.1 million in for the same period in 2019. these expenses primarily relate to the change in the value of accounts payable and other monetary assets and liabilities denominated in currencies other than their functional currency between the date of origination and settlement . income taxes for the year ended december 31 , 2020 , the company recorded a provision for income taxes of $ 1.7 million , or 28.1 % of income before taxes , compared to $ 2.3 million , or 25.0 % of income before taxes for the same period in 2019. the company 's effective tax rate for the year ended december 31 , 2020 was impacted by limitations on the deductibility of certain facilitative acquisition related costs . 26 unsolicited bid and shareholder demand on july 15 , 2019 and august 23 , 2019 , the company received letters from shepherd kaplan krochuk , llc ( “ skk ” ) and north & webster ssg , llc ( “ n & w ” ) announcing an unsolicited bid to acquire the company . the proposal was subject to a number of contingencies , including the need for skk and n & w to secure financing to complete a transaction . on november 27 , 2019 , skk , n & w , and messrs. shepherd , kaplan , krochuk and kidston
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2,623 | we believe that we must continue to invest in our tommy bahama and lilly pulitzer lifestyle brands in order to take advantage of their long-term growth opportunities . investments include capital expenditures primarily related to the direct to consumer operations such as retail store build-out and distribution center and technology enhancements as well as increased employment , advertising and other costs in key functions to provide future net sales growth and support the ongoing business operations . we expect that the investments will continue to put downward pressure on our operating margins in the near future until we have sufficient sales to leverage the operating costs . we believe that there are opportunities for modest sales growth for lanier clothes through new product programs , including pants ; however , we also believe that the tailored clothing environment will continue to be very challenging , which may negatively impact net sales , operating income and operating margin . the ben sherman lifestyle brand has faced challenges in recent years with sales and operating results on a downward trajectory . during fiscal 2013 , we appointed a new ceo and strengthened the management team of the brand , refocused the business on its core consumer , reduced operating expenses and improved the operation of the ben sherman retail stores . much work remains to generate satisfactory financial results in the long-term ; however , we believe , as a result of these actions , that ben sherman has ample opportunities to increase sales and thereby generate significantly improved operating results in the future . we continue to believe that it is important to maintain a strong balance sheet and liquidity . we believe that our positive cash flow from operations coupled with the strength of our balance sheet and liquidity will provide us with ample resources to fund future investments in our lifestyle brands . in the future , we may add additional lifestyle brands to our portfolio , if we 37 identify appropriate targets which meet our investment criteria ; however , we believe that we have significant opportunities to appropriately deploy our capital and resources in our existing lifestyle brands . the following table sets forth our consolidated operating results ( in thousands , except per share amounts ) for the 52-week fiscal 2013 compared to the 53-week fiscal 2012 : replace_table_token_19_th the primary reasons for the higher earnings in fiscal 2013 were : net sales increases in excess of 10 % in both the tommy bahama and lilly pulitzer operating groups ; fiscal 2012 including a charge of $ 9.1 million related to a loss on the repurchase of senior notes , which resulted from our july 2012 redemption of the remaining $ 105 million in aggregate principal amount of our 11.375 % senior secured notes ( `` senior secured notes `` ) primarily using borrowings under our u.s. revolving credit agreement , with no loss on repurchase of senior notes in fiscal 2013 ; a $ 6.0 million reduction in the charge for the change in the fair value of contingent consideration in fiscal 2013 ; a $ 4.8 million reduction in interest expense in fiscal 2013 to $ 4.2 million primarily due to our borrowing at lower interest rates for the first half of fiscal 2013 compared to the first half of fiscal 2012 as a result of our july 2012 senior secured notes redemption ; a $ 4.1 million reduction in the lifo accounting charge in fiscal 2013 as there was no significant lifo accounting impact in fiscal 2013 ; sg & a reductions in ben sherman , primarily due to certain cost savings initiatives , and corporate and other , primarily due to lower incentive compensation amounts earned ; and fiscal 2013 including a $ 1.6 million gain on the sale of property and equipment . these items were partially offset by : an increase in sg & a for tommy bahama and lilly pulitzer which was primarily due to $ 30.8 million of incremental sg & a associated with the operation of retail stores opened in fiscal 2013 and fiscal 2012 and other sg & a increases to support the growing tommy bahama and lilly pulitzer businesses ; a $ 14.7 million decrease in net sales in ben sherman ; our effective tax rate increasing to 43.7 % in fiscal 2013 compared to 38.5 % in fiscal 2012 ; although both years reflect the unfavorable impact of foreign losses for which we were not able to recognize an income tax benefit and the favorable impact of a decrease in the enacted tax rate in the united kingdom , fiscal 2012 also benefited from certain other favorable discrete items which reduced the effective tax rate ; and $ 2.1 million of charges in the aggregate incurred in fiscal 2013 related to an inventory step-up charge and amortization of intangible assets as a result of our acquisition of the tommy bahama operations in canada in the second quarter of fiscal 2013. operating groups our business is primarily operated through our four operating groups : tommy bahama , lilly pulitzer , lanier clothes and ben sherman . we identify our operating groups based on the way our management organizes the components of our business for purposes of allocating resources and assessing performance . our operating group structure reflects a brand-focused 38 management approach , emphasizing operational coordination and resource allocation across each brand 's direct to consumer , wholesale and licensing operations . tommy bahama designs , sources , markets and distributes men 's and women 's sportswear and related products . the target consumers of tommy bahama are primarily affluent men and women age 35 and older who embrace a relaxed and casual approach to daily living . tommy bahama products can be found in our tommy bahama stores and on our tommy bahama e-commerce website , tommybahama.com , as well as in better department stores and independent specialty stores throughout the united states . story_separator_special_tag corporate and other : the gross profit in corporate and other in each period primarily reflects the impact on gross profit of our oxford golf and lyons , georgia distribution center operations and the impact of lifo accounting adjustments . the increase in the gross profit for corporate and other was primarily due to ( 1 ) fiscal 2012 being impacted by a $ 4.0 million lifo accounting charge with no significant lifo accounting charge in fiscal 2013 and ( 2 ) higher sales and gross margin in the oxford golf business in fiscal 2013 . sg & a replace_table_token_28_th the increase in sg & a was primarily due to ( 1 ) $ 30.8 million of incremental sg & a in fiscal 2013 associated with operating additional tommy bahama retail stores and restaurants and lilly pulitzer retail stores and ( 2 ) higher costs to support the growing tommy bahama and lilly pulitzer businesses . the increases in sg & a for tommy bahama and lilly pulitzer were partially offset by sg & a reductions in ben sherman and corporate and other . sg & a for fiscal 2012 was unfavorably impacted by the inclusion of a 53rd week , which we estimate resulted in an additional $ 7 million of sg & a . further , sg & a was impacted by $ 7.2 million reduction in incentive compensation in fiscal 2013 as compared to fiscal 2012 , primarily reflecting lower incentive compensation for both tommy bahama and corporate and other . sg & a included $ 2.2 million of amortization of intangible assets in fiscal 2013 compared to $ 1.0 million in fiscal 2012 with the increase primarily being $ 1.4 million of amortization associated with the intangible assets acquired as part of the tommy bahama canada acquisition . we anticipate that amortization of intangible assets for fiscal 2014 will be approximately $ 2.5 million with approximately $ 2.0 million of the amortization reflecting amortization of the intangible assets acquired as part of the tommy bahama canada acquisition . change in fair value of contingent consideration fiscal 2013 fiscal 2012 $ change % change change in fair value of contingent consideration included in lilly pulitzer $ 275 $ 6,285 $ ( 6,010 ) ( 95.6 ) % in connection with our acquisition of the lilly pulitzer brand and operations in fiscal 2010 , we entered into a contingent consideration agreement with the sellers , under which we are obligated to pay certain contingent consideration amounts based on the achievement of certain performance criteria by our lilly pulitzer operating group , which payments may be as much as $ 20 million in the aggregate over the four years subsequent to the acquisition . in accordance with gaap , we have recognized a liability in our consolidated balance sheets for the fair value of this liability at each balance sheet date . generally , this liability increases in fair value as we approach the date of anticipated payment , resulting in a charge to our consolidated statements of earnings during that period . further , if we determine that the probability of the amounts being earned changes , it would impact our assessment of the fair value in our consolidated balance sheet , resulting in a charge or 44 income in our consolidated statement of earnings at that time . thus , change in fair value of contingent consideration reflects the current period impact of the change in the fair value of any contingent consideration obligations . the $ 6.0 million decrease in the charge for the change in fair value of contingent consideration during fiscal 2013 was primarily a result of fiscal 2012 including a a significant increase in the fair value of the contingent consideration , while fiscal 2013 generally only reflected the passage of time as we approach the anticipated payments . during fiscal 2012 , we increased the fair value of the contingent consideration by $ 6.3 million to reflect not only the passage of time , but also our determination that the certainty of the payment of the contingent consideration related to the lilly pulitzer acquisition was more probable than we had determined in prior years based on our consideration of , among other things , ( 1 ) the fiscal 2011 and fiscal 2012 operating results of the lilly pulitzer operating group , ( 2 ) projected operating results for lilly pulitzer for fiscal 2013 and fiscal 2014 , ( 3 ) the operating results criteria for the fiscal 2013 and fiscal 2014 amounts to be earned and ( 4 ) the shorter remaining term of the contingent consideration agreement . we anticipate that the change in contingent consideration for fiscal 2014 will be approximately $ 0.3 million . royalties and other operating income fiscal 2013 fiscal 2012 $ change % change royalties and other operating income $ 19,016 $ 16,436 $ 2,580 15.7 % gain on sale of real estate included in corporate and other $ 1,611 $ — royalties and other operating income in fiscal 2013 increased by $ 2.6 million primarily due to ( 1 ) fiscal 2013 including a gain on sale of real estate of $ 1.6 million , ( 2 ) higher royalty income for both tommy bahama and lilly pulitzer and ( 3 ) higher other income in corporate and other . these increases were partially offset by lower royalty income for ben sherman in fiscal 2013 . royalty and other operating income primarily consists of royalty income received from third parties from the licensing of our tommy bahama , ben sherman and lilly pulitzer brands . operating income ( loss ) replace_table_token_29_th operating income , on a consolidated basis , was $ 84.7 million in fiscal 2013 compared to $ 69.0 million in fiscal 2012 . the 22.8 % increase in operating income was primarily due to the improved operating income in corporate and other , lilly pulitzer and tommy bahama , partially offset by
| liquidity and capital resources the table below sets forth the amounts outstanding under our financing arrangements ( in thousands ) as of february 1 , 2014 : $ 235 million u.s. secured revolving credit facility ( `` u.s. revolving credit agreement '' ) $ 137,592 £7 million senior secured revolving credit facility ( `` u.k. revolving credit agreement '' ) 3,993 total debt 141,585 short-term debt ( 3,993 ) long-term debt $ 137,592 the u.s. revolving credit agreement , entered into in june 2012 and amended in november 2013 , amended and restated our prior $ 175 million u.s. revolving credit facility . the u.s. revolving credit agreement generally ( i ) is limited to a borrowing base consisting of specified percentages of eligible categories of assets ; ( ii ) accrues variable-rate interest ( 2.1 % as of february 1 , 2014 ) , unused line fees and letter of credit fees based upon a pricing grid which is tied to average unused availability and or utilization ; ( iii ) requires periodic interest payments with principal due at maturity ( november 2018 ) ; and ( iv ) is generally secured by a first priority security interest in the accounts receivable , inventory , general intangibles and eligible 58 trademarks , investment property ( including the equity interests of certain subsidiaries ) , deposit accounts , intercompany obligations , equipment , goods , documents , contracts , books and records and other personal property of oxford industries , inc. and substantially all of its domestic subsidiaries . the u.s. revolving credit agreement was amended in november 2013 primarily to ( 1 ) extend the maturity date of the facility from june 2017 to november 2018 , ( 2 ) reduce the applicable margin ( by 25 to 50 basis points , depending on excess availability under the facility at the time of determination ) used to determine the applicable interest rate ( s ) ; and ( 3 ) modify certain other provisions and restrictions under the u.s. revolving credit agreement in a manner that is more favorable to and or less restrictive on 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 the table below sets forth the amounts outstanding under our financing arrangements ( in thousands ) as of february 1 , 2014 : $ 235 million u.s. secured revolving credit facility ( `` u.s. revolving credit agreement '' ) $ 137,592 £7 million senior secured revolving credit facility ( `` u.k. revolving credit agreement '' ) 3,993 total debt 141,585 short-term debt ( 3,993 ) long-term debt $ 137,592 the u.s. revolving credit agreement , entered into in june 2012 and amended in november 2013 , amended and restated our prior $ 175 million u.s. revolving credit facility . the u.s. revolving credit agreement generally ( i ) is limited to a borrowing base consisting of specified percentages of eligible categories of assets ; ( ii ) accrues variable-rate interest ( 2.1 % as of february 1 , 2014 ) , unused line fees and letter of credit fees based upon a pricing grid which is tied to average unused availability and or utilization ; ( iii ) requires periodic interest payments with principal due at maturity ( november 2018 ) ; and ( iv ) is generally secured by a first priority security interest in the accounts receivable , inventory , general intangibles and eligible 58 trademarks , investment property ( including the equity interests of certain subsidiaries ) , deposit accounts , intercompany obligations , equipment , goods , documents , contracts , books and records and other personal property of oxford industries , inc. and substantially all of its domestic subsidiaries . the u.s. revolving credit agreement was amended in november 2013 primarily to ( 1 ) extend the maturity date of the facility from june 2017 to november 2018 , ( 2 ) reduce the applicable margin ( by 25 to 50 basis points , depending on excess availability under the facility at the time of determination ) used to determine the applicable interest rate ( s ) ; and ( 3 ) modify certain other provisions and restrictions under the u.s. revolving credit agreement in a manner that is more favorable to and or less restrictive on us .
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Suspicious Activity Report : we believe that we must continue to invest in our tommy bahama and lilly pulitzer lifestyle brands in order to take advantage of their long-term growth opportunities . investments include capital expenditures primarily related to the direct to consumer operations such as retail store build-out and distribution center and technology enhancements as well as increased employment , advertising and other costs in key functions to provide future net sales growth and support the ongoing business operations . we expect that the investments will continue to put downward pressure on our operating margins in the near future until we have sufficient sales to leverage the operating costs . we believe that there are opportunities for modest sales growth for lanier clothes through new product programs , including pants ; however , we also believe that the tailored clothing environment will continue to be very challenging , which may negatively impact net sales , operating income and operating margin . the ben sherman lifestyle brand has faced challenges in recent years with sales and operating results on a downward trajectory . during fiscal 2013 , we appointed a new ceo and strengthened the management team of the brand , refocused the business on its core consumer , reduced operating expenses and improved the operation of the ben sherman retail stores . much work remains to generate satisfactory financial results in the long-term ; however , we believe , as a result of these actions , that ben sherman has ample opportunities to increase sales and thereby generate significantly improved operating results in the future . we continue to believe that it is important to maintain a strong balance sheet and liquidity . we believe that our positive cash flow from operations coupled with the strength of our balance sheet and liquidity will provide us with ample resources to fund future investments in our lifestyle brands . in the future , we may add additional lifestyle brands to our portfolio , if we 37 identify appropriate targets which meet our investment criteria ; however , we believe that we have significant opportunities to appropriately deploy our capital and resources in our existing lifestyle brands . the following table sets forth our consolidated operating results ( in thousands , except per share amounts ) for the 52-week fiscal 2013 compared to the 53-week fiscal 2012 : replace_table_token_19_th the primary reasons for the higher earnings in fiscal 2013 were : net sales increases in excess of 10 % in both the tommy bahama and lilly pulitzer operating groups ; fiscal 2012 including a charge of $ 9.1 million related to a loss on the repurchase of senior notes , which resulted from our july 2012 redemption of the remaining $ 105 million in aggregate principal amount of our 11.375 % senior secured notes ( `` senior secured notes `` ) primarily using borrowings under our u.s. revolving credit agreement , with no loss on repurchase of senior notes in fiscal 2013 ; a $ 6.0 million reduction in the charge for the change in the fair value of contingent consideration in fiscal 2013 ; a $ 4.8 million reduction in interest expense in fiscal 2013 to $ 4.2 million primarily due to our borrowing at lower interest rates for the first half of fiscal 2013 compared to the first half of fiscal 2012 as a result of our july 2012 senior secured notes redemption ; a $ 4.1 million reduction in the lifo accounting charge in fiscal 2013 as there was no significant lifo accounting impact in fiscal 2013 ; sg & a reductions in ben sherman , primarily due to certain cost savings initiatives , and corporate and other , primarily due to lower incentive compensation amounts earned ; and fiscal 2013 including a $ 1.6 million gain on the sale of property and equipment . these items were partially offset by : an increase in sg & a for tommy bahama and lilly pulitzer which was primarily due to $ 30.8 million of incremental sg & a associated with the operation of retail stores opened in fiscal 2013 and fiscal 2012 and other sg & a increases to support the growing tommy bahama and lilly pulitzer businesses ; a $ 14.7 million decrease in net sales in ben sherman ; our effective tax rate increasing to 43.7 % in fiscal 2013 compared to 38.5 % in fiscal 2012 ; although both years reflect the unfavorable impact of foreign losses for which we were not able to recognize an income tax benefit and the favorable impact of a decrease in the enacted tax rate in the united kingdom , fiscal 2012 also benefited from certain other favorable discrete items which reduced the effective tax rate ; and $ 2.1 million of charges in the aggregate incurred in fiscal 2013 related to an inventory step-up charge and amortization of intangible assets as a result of our acquisition of the tommy bahama operations in canada in the second quarter of fiscal 2013. operating groups our business is primarily operated through our four operating groups : tommy bahama , lilly pulitzer , lanier clothes and ben sherman . we identify our operating groups based on the way our management organizes the components of our business for purposes of allocating resources and assessing performance . our operating group structure reflects a brand-focused 38 management approach , emphasizing operational coordination and resource allocation across each brand 's direct to consumer , wholesale and licensing operations . tommy bahama designs , sources , markets and distributes men 's and women 's sportswear and related products . the target consumers of tommy bahama are primarily affluent men and women age 35 and older who embrace a relaxed and casual approach to daily living . tommy bahama products can be found in our tommy bahama stores and on our tommy bahama e-commerce website , tommybahama.com , as well as in better department stores and independent specialty stores throughout the united states . story_separator_special_tag corporate and other : the gross profit in corporate and other in each period primarily reflects the impact on gross profit of our oxford golf and lyons , georgia distribution center operations and the impact of lifo accounting adjustments . the increase in the gross profit for corporate and other was primarily due to ( 1 ) fiscal 2012 being impacted by a $ 4.0 million lifo accounting charge with no significant lifo accounting charge in fiscal 2013 and ( 2 ) higher sales and gross margin in the oxford golf business in fiscal 2013 . sg & a replace_table_token_28_th the increase in sg & a was primarily due to ( 1 ) $ 30.8 million of incremental sg & a in fiscal 2013 associated with operating additional tommy bahama retail stores and restaurants and lilly pulitzer retail stores and ( 2 ) higher costs to support the growing tommy bahama and lilly pulitzer businesses . the increases in sg & a for tommy bahama and lilly pulitzer were partially offset by sg & a reductions in ben sherman and corporate and other . sg & a for fiscal 2012 was unfavorably impacted by the inclusion of a 53rd week , which we estimate resulted in an additional $ 7 million of sg & a . further , sg & a was impacted by $ 7.2 million reduction in incentive compensation in fiscal 2013 as compared to fiscal 2012 , primarily reflecting lower incentive compensation for both tommy bahama and corporate and other . sg & a included $ 2.2 million of amortization of intangible assets in fiscal 2013 compared to $ 1.0 million in fiscal 2012 with the increase primarily being $ 1.4 million of amortization associated with the intangible assets acquired as part of the tommy bahama canada acquisition . we anticipate that amortization of intangible assets for fiscal 2014 will be approximately $ 2.5 million with approximately $ 2.0 million of the amortization reflecting amortization of the intangible assets acquired as part of the tommy bahama canada acquisition . change in fair value of contingent consideration fiscal 2013 fiscal 2012 $ change % change change in fair value of contingent consideration included in lilly pulitzer $ 275 $ 6,285 $ ( 6,010 ) ( 95.6 ) % in connection with our acquisition of the lilly pulitzer brand and operations in fiscal 2010 , we entered into a contingent consideration agreement with the sellers , under which we are obligated to pay certain contingent consideration amounts based on the achievement of certain performance criteria by our lilly pulitzer operating group , which payments may be as much as $ 20 million in the aggregate over the four years subsequent to the acquisition . in accordance with gaap , we have recognized a liability in our consolidated balance sheets for the fair value of this liability at each balance sheet date . generally , this liability increases in fair value as we approach the date of anticipated payment , resulting in a charge to our consolidated statements of earnings during that period . further , if we determine that the probability of the amounts being earned changes , it would impact our assessment of the fair value in our consolidated balance sheet , resulting in a charge or 44 income in our consolidated statement of earnings at that time . thus , change in fair value of contingent consideration reflects the current period impact of the change in the fair value of any contingent consideration obligations . the $ 6.0 million decrease in the charge for the change in fair value of contingent consideration during fiscal 2013 was primarily a result of fiscal 2012 including a a significant increase in the fair value of the contingent consideration , while fiscal 2013 generally only reflected the passage of time as we approach the anticipated payments . during fiscal 2012 , we increased the fair value of the contingent consideration by $ 6.3 million to reflect not only the passage of time , but also our determination that the certainty of the payment of the contingent consideration related to the lilly pulitzer acquisition was more probable than we had determined in prior years based on our consideration of , among other things , ( 1 ) the fiscal 2011 and fiscal 2012 operating results of the lilly pulitzer operating group , ( 2 ) projected operating results for lilly pulitzer for fiscal 2013 and fiscal 2014 , ( 3 ) the operating results criteria for the fiscal 2013 and fiscal 2014 amounts to be earned and ( 4 ) the shorter remaining term of the contingent consideration agreement . we anticipate that the change in contingent consideration for fiscal 2014 will be approximately $ 0.3 million . royalties and other operating income fiscal 2013 fiscal 2012 $ change % change royalties and other operating income $ 19,016 $ 16,436 $ 2,580 15.7 % gain on sale of real estate included in corporate and other $ 1,611 $ — royalties and other operating income in fiscal 2013 increased by $ 2.6 million primarily due to ( 1 ) fiscal 2013 including a gain on sale of real estate of $ 1.6 million , ( 2 ) higher royalty income for both tommy bahama and lilly pulitzer and ( 3 ) higher other income in corporate and other . these increases were partially offset by lower royalty income for ben sherman in fiscal 2013 . royalty and other operating income primarily consists of royalty income received from third parties from the licensing of our tommy bahama , ben sherman and lilly pulitzer brands . operating income ( loss ) replace_table_token_29_th operating income , on a consolidated basis , was $ 84.7 million in fiscal 2013 compared to $ 69.0 million in fiscal 2012 . the 22.8 % increase in operating income was primarily due to the improved operating income in corporate and other , lilly pulitzer and tommy bahama , partially offset by
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2,624 | the company is targeting national price increases of approximately 2 % to offset anticipated upward pressures on ingredients , packaging and freight costs , as well as increased investments behind the company 's brands . full-year 2014 gross margins are currently expected to be between 51 % and 53 % . the company intends to increase advertising , promotional and selling expenses by between $ 34 million and $ 42 million for the full year 2014 , which does not include any increases in freight costs for the shipment of products to its distributors . the company estimates increased investments of between $ 5 million and $ 7 million in existing brands developed by alchemy & science , which are included in our full year estimated increases in advertising , promotional and selling expenses . brand investments in the alchemy & science brands could vary significantly from current estimates . the company intends to increase its investment in its brands in 2014 commensurate with the opportunities for growth that it sees , but there is no guarantee that such increased investments will result in increased volumes . the company estimates a full-year 2014 effective tax rate of approximately 38 % . the company is continuing to evaluate 2014 capital expenditures . its current estimates are between $ 160 million and $ 220 million , consisting mostly of continued investments in the company 's breweries , as well additional keg purchases in support of growth . these estimates include capital investments for existing alchemy & science projects of between $ 7 million and $ 9 million . the actual total amount spent on 2014 capital expenditures may well be different from these estimates . based on information currently available , the company believes that its capacity requirements for 2014 can be covered by its company-owned breweries and existing contracted capacity at third-party brewers . results of operations boston beer 's flagship product is samuel adams boston lager . for purposes of this discussion , boston beer 's core brands or core products include all products sold under the samuel adams , twisted tea , angry orchard and various alchemy & science trade names . core products do not include the products brewed or packaged at the company 's brewery in cincinnati , ohio ( the cincinnati brewery ) under a contract arrangement for a third party . sales of such products are not significant to the company 's net revenues . 22 the following table sets forth certain items included in the company 's consolidated statements of income as a percentage of net revenue : replace_table_token_5_th year ended december 28 , 2013 ( 52 weeks ) compared to year ended december 29 , 2012 ( 52 weeks ) fiscal periods . the 2013 and 2012 fiscal years consisted of 52 weeks as compared to 53 weeks in fiscal 2011. net revenue . net revenue increased by $ 158.9 million , or 27.4 % , to $ 739.1 million for the year ended december 28 , 2013 , as compared to $ 580.2 million for the year ended december 29 , 2012 , due primarily to increased shipments . volume . total shipment volume of 3,416,000 barrels for the year ended december 28 , 2013 includes shipments of core brands of 3,403,000 barrels and other shipments of 13,000 barrels . shipment volume for core brands increased by 24.8 % over comparable 2012 levels to 3,403,000 barrels , due primarily to increases in shipments of angry orchard , samuel adams and twisted tea brand products . depletions , or sales by distributors to retailers , of the company 's core products for the year ended december 28 , 2013 increased by approximately 23 % compared to the prior year , primarily due to increases in depletions of angry orchard , twisted tea and samuel adams brand products . net revenue per barrel . the net revenue per barrel for core brands increased by 2.2 % to $ 216.94 per barrel for the year ended december 28 , 2013 , as compared to $ 212.37 per barrel for the comparable period in 2012 , due primarily to price increases and changes in product and package mix , partially offset by $ 7.0 million of increased customer programs and incentive costs . significant changes in the package mix could have a material effect on net revenue . the company primarily packages its core brands in kegs , bottles and cans . assuming the same level of production , a shift in the mix from 23 bottles and cans to kegs would effectively decrease revenue per barrel , as the price per equivalent barrel is lower for kegs than for bottles and cans . the percentage of bottles and cans to total shipments increased by 2.4 % to 75.9 % of total shipments for the year ended december 28 , 2013 as compared to 2012. gross profit . gross profit for core products was $ 113.03 per barrel for the year ended december 28 , 2013 , as compared to $ 115.50 per barrel for the year ended december 29 , 2012. gross margin for core products was 52.1 % for the year ended december 28 , 2013 , as compared to 54.4 % for the year ended december 29 , 2012. the decrease in gross profit per barrel of $ 2.47 is primarily due to an increase in cost of goods sold per barrel , partially offset by an increase in net revenue per barrel . cost of goods sold for core brands was $ 103.91 per barrel for the year ended december 28 , 2013 , as compared to $ 96.87 per barrel for the year ended december 29 , 2012. the 2013 increase in cost of goods sold of $ 7.04 per barrel of core product is due to increased ingredients costs , product mix effects and inefficiencies in the company 's operations resulting from the higher than expected growth . story_separator_special_tag periodically , the company grants performance-based stock options , related to which it only recognizes compensation expense if it is probable that performance targets will be met . consequently , at the end of each reporting period , the company estimates whether it is probable that performance targets will be met . changes in the subjective assumptions and estimates can materially affect the amount of stock-based compensation expense recognized in the consolidated statements of income . income taxes income tax expense was $ 42.1 million , $ 36.0 million and $ 37.4 million in fiscal years 2013 , 2012 , and 2011 , respectively . the company provides for deferred taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the company 's consolidated financial statements or tax returns . this results in differences between the book and tax basis of the company 's assets , liabilities and carry-forwards such as tax credits . in estimating future tax consequences , all expected future events , other than enactment of changes in the tax laws or rates , are generally considered . valuation allowances are provided to the extent deemed necessary when realization of deferred tax assets appears unlikely . 29 the calculation of the company 's tax liabilities involves dealing with uncertainties in the application of complex tax regulations in several different state tax jurisdictions . the company is periodically reviewed by tax authorities regarding the amount of taxes due . these reviews include inquiries regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions . the company records estimated reserves for exposures associated with positions that it takes on its income tax returns . historically , the valuation allowances and reserves for uncertain tax positions have been adequate to cover the related tax exposures . business environment the alcoholic beverage industry is highly regulated at the federal , state and local levels . the ttb and the justice department 's bureau of alcohol , tobacco , firearms and explosives enforce laws under the federal alcohol administration act . the ttb is responsible for administering and enforcing excise tax laws that directly affect the company 's results of operations . state and regulatory authorities have the ability to suspend or revoke the company 's licenses and permits or impose substantial fines for violations . the company has established strict policies , procedures and guidelines in efforts to ensure compliance with all applicable state and federal laws . however , the loss or revocation of any existing license or permit could have a material adverse effect on the company 's business , results of operations , cash flows and financial position . the better beer category is highly competitive due to the large number of regional craft and specialty brewers and the brewers of imported beers who distribute similar products that have similar pricing and target drinkers . the company believes that its pricing is appropriate given the quality and reputation of its core brands , while realizing that economic pricing pressures may affect future pricing levels . certain major domestic brewers have also developed brands to compete within the better beer , fmb and cider categories and have acquired interests in craft beers and cider makers , or importation rights to foreign brands . import brewers and major domestic brewers are able to compete more aggressively than the company , as they have substantially greater resources , marketing strength and distribution networks than the company . the company anticipates craft beer competition increasing as craft brewers have benefited from nine years of healthy growth and are looking to maintain these trends . the company also increasingly competes with wine and spirits companies , some of which have significantly greater resources than the company . this competitive environment may affect the company 's overall performance within the better beer category . as the market matures and the better beer category continues to consolidate , the company believes that companies that are well-positioned in terms of brand equity , marketing and distribution will have greater success than those who do not . with approximately 350 distributors nationwide and the company 's sales force of approximately 380 people , a commitment to maintaining brand equity and the quality of its beer , the company believes it is well positioned to compete in the better beer market . the demand for the company 's products is also subject to changes in drinkers ' tastes . the potential impact of known facts , commitments , events and uncertainties hops purchase commitments the company utilizes several varieties of hops in the production of its products . to ensure adequate supplies of these varieties , the company enters into advance multi-year purchase commitments based on forecasted future hop requirements , among other factors . during 2013 , the company entered into several hops future contracts in the normal course of business . the total value of the contracts entered into as of december 28 , 2013 , which are denominated in euros , british pounds sterling and u.s. dollars , was $ 33.6 million . the company has no forward exchange contracts in place as of december 28 , 2013 and currently intends to purchase future hops using the exchange rate at the time of purchase . these contracts were deemed necessary in order to bring hop inventory levels and purchase commitments into balance with the company 's current brewing volume and hop usage forecasts . in addition , these contracts enable the company to secure its position for future supply with hop vendors in the face of some competitive buying activity . 30 the company 's accounting policy for hop inventory and purchase commitments is to recognize a loss by establishing a reserve for aged hops and to the extent inventory levels and commitments exceed forecasted needs . the computation
| liquidity and capital resources cash decreased to $ 49.5 million as of december 28 , 2013 from $ 74.5 million as of december 29 , 2012 , reflecting purchases of property , plant and equipment and repurchases of class a common stock that were only partially offset by cash provided by operating activities . cash provided by or used in operating activities consists of net income , adjusted for certain non-cash items , such as depreciation and amortization , stock-based compensation expense and related excess tax benefit , other non-cash items included in operating results , and changes in operating assets and liabilities , such as accounts receivable , inventory , accounts payable and accrued expenses . cash provided by operating activities in 2013 was $ 100.0 million and primarily consisted of net income of $ 70.4 million and non-cash items of $ 41.6 million , partially offset by a net increase in operating assets and liabilities of $ 12.0 million . the company 's inventories have increased at a rate higher than revenue growth primarily due to increases in finished goods and raw materials . the company 's accounts receivable have increased at a rate higher than its net revenue growth primarily due to increased international accounts receivable . cash provided by operating activities in 2012 totaled $ 95.3 million and primarily consisted of net income of $ 59.5 million , and non-cash items of $ 21.2 million , and a net decrease in operating assets and liabilities of $ 14.7 million . the company used $ 103.3 million in investing activities during 2013 , as compared to $ 67.3 million during 2012. investing activities primarily consisted of discretionary equipment purchases to increase capacity of the company-owned breweries and the purchase of additional kegs . 26 cash used in financing activities was $ 21.6 million during 2013 , as compared to $ 3.0 million during 2012. the $ 18.6 million difference in financing cash flow in 2013 from 2012 is primarily due an increase in stock repurchases under the company 's stock repurchase program and a decrease in proceeds from the exercise of stock options and the related tax benefits .
| 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 decreased to $ 49.5 million as of december 28 , 2013 from $ 74.5 million as of december 29 , 2012 , reflecting purchases of property , plant and equipment and repurchases of class a common stock that were only partially offset by cash provided by operating activities . cash provided by or used in operating activities consists of net income , adjusted for certain non-cash items , such as depreciation and amortization , stock-based compensation expense and related excess tax benefit , other non-cash items included in operating results , and changes in operating assets and liabilities , such as accounts receivable , inventory , accounts payable and accrued expenses . cash provided by operating activities in 2013 was $ 100.0 million and primarily consisted of net income of $ 70.4 million and non-cash items of $ 41.6 million , partially offset by a net increase in operating assets and liabilities of $ 12.0 million . the company 's inventories have increased at a rate higher than revenue growth primarily due to increases in finished goods and raw materials . the company 's accounts receivable have increased at a rate higher than its net revenue growth primarily due to increased international accounts receivable . cash provided by operating activities in 2012 totaled $ 95.3 million and primarily consisted of net income of $ 59.5 million , and non-cash items of $ 21.2 million , and a net decrease in operating assets and liabilities of $ 14.7 million . the company used $ 103.3 million in investing activities during 2013 , as compared to $ 67.3 million during 2012. investing activities primarily consisted of discretionary equipment purchases to increase capacity of the company-owned breweries and the purchase of additional kegs . 26 cash used in financing activities was $ 21.6 million during 2013 , as compared to $ 3.0 million during 2012. the $ 18.6 million difference in financing cash flow in 2013 from 2012 is primarily due an increase in stock repurchases under the company 's stock repurchase program and a decrease in proceeds from the exercise of stock options and the related tax benefits .
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Suspicious Activity Report : the company is targeting national price increases of approximately 2 % to offset anticipated upward pressures on ingredients , packaging and freight costs , as well as increased investments behind the company 's brands . full-year 2014 gross margins are currently expected to be between 51 % and 53 % . the company intends to increase advertising , promotional and selling expenses by between $ 34 million and $ 42 million for the full year 2014 , which does not include any increases in freight costs for the shipment of products to its distributors . the company estimates increased investments of between $ 5 million and $ 7 million in existing brands developed by alchemy & science , which are included in our full year estimated increases in advertising , promotional and selling expenses . brand investments in the alchemy & science brands could vary significantly from current estimates . the company intends to increase its investment in its brands in 2014 commensurate with the opportunities for growth that it sees , but there is no guarantee that such increased investments will result in increased volumes . the company estimates a full-year 2014 effective tax rate of approximately 38 % . the company is continuing to evaluate 2014 capital expenditures . its current estimates are between $ 160 million and $ 220 million , consisting mostly of continued investments in the company 's breweries , as well additional keg purchases in support of growth . these estimates include capital investments for existing alchemy & science projects of between $ 7 million and $ 9 million . the actual total amount spent on 2014 capital expenditures may well be different from these estimates . based on information currently available , the company believes that its capacity requirements for 2014 can be covered by its company-owned breweries and existing contracted capacity at third-party brewers . results of operations boston beer 's flagship product is samuel adams boston lager . for purposes of this discussion , boston beer 's core brands or core products include all products sold under the samuel adams , twisted tea , angry orchard and various alchemy & science trade names . core products do not include the products brewed or packaged at the company 's brewery in cincinnati , ohio ( the cincinnati brewery ) under a contract arrangement for a third party . sales of such products are not significant to the company 's net revenues . 22 the following table sets forth certain items included in the company 's consolidated statements of income as a percentage of net revenue : replace_table_token_5_th year ended december 28 , 2013 ( 52 weeks ) compared to year ended december 29 , 2012 ( 52 weeks ) fiscal periods . the 2013 and 2012 fiscal years consisted of 52 weeks as compared to 53 weeks in fiscal 2011. net revenue . net revenue increased by $ 158.9 million , or 27.4 % , to $ 739.1 million for the year ended december 28 , 2013 , as compared to $ 580.2 million for the year ended december 29 , 2012 , due primarily to increased shipments . volume . total shipment volume of 3,416,000 barrels for the year ended december 28 , 2013 includes shipments of core brands of 3,403,000 barrels and other shipments of 13,000 barrels . shipment volume for core brands increased by 24.8 % over comparable 2012 levels to 3,403,000 barrels , due primarily to increases in shipments of angry orchard , samuel adams and twisted tea brand products . depletions , or sales by distributors to retailers , of the company 's core products for the year ended december 28 , 2013 increased by approximately 23 % compared to the prior year , primarily due to increases in depletions of angry orchard , twisted tea and samuel adams brand products . net revenue per barrel . the net revenue per barrel for core brands increased by 2.2 % to $ 216.94 per barrel for the year ended december 28 , 2013 , as compared to $ 212.37 per barrel for the comparable period in 2012 , due primarily to price increases and changes in product and package mix , partially offset by $ 7.0 million of increased customer programs and incentive costs . significant changes in the package mix could have a material effect on net revenue . the company primarily packages its core brands in kegs , bottles and cans . assuming the same level of production , a shift in the mix from 23 bottles and cans to kegs would effectively decrease revenue per barrel , as the price per equivalent barrel is lower for kegs than for bottles and cans . the percentage of bottles and cans to total shipments increased by 2.4 % to 75.9 % of total shipments for the year ended december 28 , 2013 as compared to 2012. gross profit . gross profit for core products was $ 113.03 per barrel for the year ended december 28 , 2013 , as compared to $ 115.50 per barrel for the year ended december 29 , 2012. gross margin for core products was 52.1 % for the year ended december 28 , 2013 , as compared to 54.4 % for the year ended december 29 , 2012. the decrease in gross profit per barrel of $ 2.47 is primarily due to an increase in cost of goods sold per barrel , partially offset by an increase in net revenue per barrel . cost of goods sold for core brands was $ 103.91 per barrel for the year ended december 28 , 2013 , as compared to $ 96.87 per barrel for the year ended december 29 , 2012. the 2013 increase in cost of goods sold of $ 7.04 per barrel of core product is due to increased ingredients costs , product mix effects and inefficiencies in the company 's operations resulting from the higher than expected growth . story_separator_special_tag periodically , the company grants performance-based stock options , related to which it only recognizes compensation expense if it is probable that performance targets will be met . consequently , at the end of each reporting period , the company estimates whether it is probable that performance targets will be met . changes in the subjective assumptions and estimates can materially affect the amount of stock-based compensation expense recognized in the consolidated statements of income . income taxes income tax expense was $ 42.1 million , $ 36.0 million and $ 37.4 million in fiscal years 2013 , 2012 , and 2011 , respectively . the company provides for deferred taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the company 's consolidated financial statements or tax returns . this results in differences between the book and tax basis of the company 's assets , liabilities and carry-forwards such as tax credits . in estimating future tax consequences , all expected future events , other than enactment of changes in the tax laws or rates , are generally considered . valuation allowances are provided to the extent deemed necessary when realization of deferred tax assets appears unlikely . 29 the calculation of the company 's tax liabilities involves dealing with uncertainties in the application of complex tax regulations in several different state tax jurisdictions . the company is periodically reviewed by tax authorities regarding the amount of taxes due . these reviews include inquiries regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions . the company records estimated reserves for exposures associated with positions that it takes on its income tax returns . historically , the valuation allowances and reserves for uncertain tax positions have been adequate to cover the related tax exposures . business environment the alcoholic beverage industry is highly regulated at the federal , state and local levels . the ttb and the justice department 's bureau of alcohol , tobacco , firearms and explosives enforce laws under the federal alcohol administration act . the ttb is responsible for administering and enforcing excise tax laws that directly affect the company 's results of operations . state and regulatory authorities have the ability to suspend or revoke the company 's licenses and permits or impose substantial fines for violations . the company has established strict policies , procedures and guidelines in efforts to ensure compliance with all applicable state and federal laws . however , the loss or revocation of any existing license or permit could have a material adverse effect on the company 's business , results of operations , cash flows and financial position . the better beer category is highly competitive due to the large number of regional craft and specialty brewers and the brewers of imported beers who distribute similar products that have similar pricing and target drinkers . the company believes that its pricing is appropriate given the quality and reputation of its core brands , while realizing that economic pricing pressures may affect future pricing levels . certain major domestic brewers have also developed brands to compete within the better beer , fmb and cider categories and have acquired interests in craft beers and cider makers , or importation rights to foreign brands . import brewers and major domestic brewers are able to compete more aggressively than the company , as they have substantially greater resources , marketing strength and distribution networks than the company . the company anticipates craft beer competition increasing as craft brewers have benefited from nine years of healthy growth and are looking to maintain these trends . the company also increasingly competes with wine and spirits companies , some of which have significantly greater resources than the company . this competitive environment may affect the company 's overall performance within the better beer category . as the market matures and the better beer category continues to consolidate , the company believes that companies that are well-positioned in terms of brand equity , marketing and distribution will have greater success than those who do not . with approximately 350 distributors nationwide and the company 's sales force of approximately 380 people , a commitment to maintaining brand equity and the quality of its beer , the company believes it is well positioned to compete in the better beer market . the demand for the company 's products is also subject to changes in drinkers ' tastes . the potential impact of known facts , commitments , events and uncertainties hops purchase commitments the company utilizes several varieties of hops in the production of its products . to ensure adequate supplies of these varieties , the company enters into advance multi-year purchase commitments based on forecasted future hop requirements , among other factors . during 2013 , the company entered into several hops future contracts in the normal course of business . the total value of the contracts entered into as of december 28 , 2013 , which are denominated in euros , british pounds sterling and u.s. dollars , was $ 33.6 million . the company has no forward exchange contracts in place as of december 28 , 2013 and currently intends to purchase future hops using the exchange rate at the time of purchase . these contracts were deemed necessary in order to bring hop inventory levels and purchase commitments into balance with the company 's current brewing volume and hop usage forecasts . in addition , these contracts enable the company to secure its position for future supply with hop vendors in the face of some competitive buying activity . 30 the company 's accounting policy for hop inventory and purchase commitments is to recognize a loss by establishing a reserve for aged hops and to the extent inventory levels and commitments exceed forecasted needs . the computation
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2,625 | on an on-going basis , we evaluate our estimates and judgments , including those related to revenue recognition , allowances for sales returns and doubtful accounts , inventory valuation , our review for impairment of long-lived assets , intangible assets and goodwill , business combinations , income taxes , stock-based compensation expense and performance-based common stock warrants . actual results may differ from these judgments and estimates , and they may be adjusted as more information becomes available . any adjustment may be significant and may have a material impact on our consolidated financial position or results of operations . an accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made , if different estimates reasonably may have been used , or if changes in the estimate that are reasonably likely to occur may materially impact the financial statements . management believes the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . in addition to the accounting policies mentioned below , see `` item 8. financial statements and supplementary data — notes to consolidated financial statements — note 2 `` for other significant accounting policies . revenue recognition we recognize revenue on the sale of products when title of the goods has transferred , there is persuasive evidence of an arrangement ( such as a purchase order from the customer ) , the sales price is fixed or determinable and collectability is reasonably assured . a provision is recorded for estimated sales returns and allowances and is deducted from gross sales to arrive at net sales in the period the related revenue is recorded . these estimates are based on historical sales returns and allowances , analysis of credit memo data and other known factors . actual returns and claims in any future period are inherently uncertain and thus may differ from our estimates . if actual or expected future returns and claims are significantly greater or lower than the reserves that we have established , we will record a reduction or increase to net revenues in the period in which we make such a determination . we accrue for discounts and rebates based on historical experience and our expectations regarding future sales to our customers . these accruals are recorded as a reduction to sales in the same period as the related revenues . changes in such accruals may be required if future rebates and incentives differ from our estimates . revenue for the sale of tooling is recognized when the related tooling has been provided , customer acceptance documentation has been obtained , the sales price is fixed or determinable and collectability is reasonably assured . we generate service revenue , which is paid monthly , as a result of providing consumer support programs to some of our customers through our call centers . these service revenues are recognized when services are performed , persuasive evidence of an arrangement exists ( such as when a signed agreement is received from the customer ) , the sales price is fixed or determinable , and collectability is reasonably assured . we license our intellectual property including our patented technologies , trademarks , and database of control codes . when our license fees are paid on a per unit basis we record license revenue when our customers ship a product incorporating our intellectual property , persuasive evidence of an arrangement exists , the sales price is fixed or determinable , and collectability is reasonably assured . when a fixed upfront license fee is received in exchange for the delivery of a particular database of infrared codes that represents the culmination of the earnings process , we record revenues when delivery has occurred , persuasive evidence of an arrangement exists , the sales price is fixed or determinable and collectability is reasonably assured . revenue for term license fees is recognized on a straight-line basis over the effective term of the license when we can not reliably predict in which periods , within the term of the license , the licensee will benefit from the use of our patented inventions . allowance for doubtful accounts we maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make payments for products sold or services rendered . the allowance for doubtful accounts is estimated based on a variety of factors , including credit reviews , historical experience , length of time receivables are past due , current economic trends and changes in customer payment behavior . we also record specific provisions for individual accounts when we become aware of a customer 's inability to meet its financial obligations to us , such as in the case of bankruptcy filings or deterioration in the customer 's operating results or financial position . our historical reserves have been sufficient to cover losses from uncollectible accounts . however , because we can not predict future changes in the financial stability of our customers , actual future losses from uncollectible accounts may differ from our estimates and may have a material effect on our consolidated financial position , results of operations and cash flows . 27 inventories our finished good , component part , and raw material inventories are valued at the lower of cost or market value . cost is determined using the first-in , first-out method . we write-down our inventory for the estimated difference between cost and estimated market value based upon our best estimates of future demand and market conditions . we carry inventory in amounts necessary to satisfy our customers ' inventory requirements on a timely basis . we continually monitor our inventory status to control inventory levels and write-down any excess or obsolete inventories on hand . story_separator_special_tag this change was driven primarily by foreign currency gains associated with fluctuations in the chinese yuan renminbi exchange rate versus the u.s. dollar . income tax expense . income tax expense was $ 4.8 million in 2016 compared to $ 6.8 million in 2015 . our effective tax rate was consistent at 19.1 % in 2016 compared to 18.9 % in 2015 . year ended december 31 , 2015 compared to year ended december 31 , 2014 ( `` 2014 `` ) net sales . net sales for 2015 were $ 602.8 million , an increase of 7.2 % compared to $ 562.3 million in 2014. net sales by our business and consumer lines were as follows : replace_table_token_8_th net sales in our business lines ( subscription broadcasting , oem , and computing companies ) were 91.4 % of net sales in 2015 compared to 90.2 % in 2014. net sales in our business lines in 2015 increased by 8.7 % to $ 551.0 million from $ 507.1 million in 2014 driven primarily by strong demand and increased market share with north american subscription broadcasters as more customers transition from lower end platforms to higher end platforms . partially offsetting this improvement was a decrease in net sales to consumer electronics companies in asia . net sales in our consumer lines ( one for all ® retail and private label ) were 8.6 % of net sales in 2015 compared to 9.8 % in 2014. net sales in our consumer lines in 2015 decreased by 6.2 % to $ 51.8 million from $ 55.2 million in 2014. this decrease was driven primarily by the weakening of the euro and the british pound compared to the u.s. dollar , which negatively impacted sales in 2015 by $ 5.3 million . this unfavorable currency impact was partially offset by increased sales in the european market . gross profit . gross profit in 2015 was $ 166.7 million compared to $ 166.9 million in 2014. gross profit as a percent of sales decreased to 27.7 % in 2015 from 29.7 % in 2014. the gross margin percentage was unfavorably impacted by an increase in sales to certain large customers that yield a lower gross margin rate than our company average , labor inflation in china where our four manufacturing facilities are located , and a decrease in royalty revenue associated with the tv and mobile device markets . the impact of these unfavorable items was partially offset by the weakening of the chinese yuan renminbi relative to the u.s. dollar . research and development expenses . r & d expenses increased 6.9 % to $ 18.1 million in 2015 from $ 17.0 million in 2014 as a result of our research and development efforts in existing categories as well as new categories such as the home security channel . selling , general and administrative expenses . sg & a expenses increased 3.7 % to $ 112.7 million in 2015 from $ 108.6 million in 2014. this increase was attributable primarily to an unfavorable court order in a patent litigation lawsuit of $ 4.6 million in the third quarter of 2015 as well as increased payroll costs driven by additional headcount to support product development efforts and annual merit increases . sg & a expenses also increased due to increased delivery expenses as a result of the additional sales to north american subscription broadcasting customers in 2015 and the rerouting of certain shipments in the first quarter of 2015 due to temporary port congestion in los angeles , california . these increases were partially offset by the weakening of the euro and brazilian real and a decrease in incentive compensation costs . interest income ( expense ) , net . net interest income was $ 63 thousand in 2015 compared to net interest income of $ 11 thousand in 2014 . 32 other income ( expense ) , net . net other expense was $ 7 thousand in 2015 compared to net other expense of $ 0.8 million in 2014. this change was driven primarily by a decrease in foreign currency losses associated with fluctuations in foreign currency exchange rates related to the euro , chinese yuan renminbi and british pound . income tax expense . income tax expense was $ 6.8 million in 2015 compared to $ 7.9 million in 2014 , and our effective tax rate was 18.9 % in 2015 compared to 19.6 % in 2014. the decrease in our effective tax rate was due primarily to the recording of $ 0.5 million in tax refunds in 2015 related to tax incentives in china for the years 2012 through 2014. liquidity and capital resources story_separator_special_tag style= `` line-height:120 % ; font-size:10pt ; `` > ( 1 ) purchase obligations consist of contractual payments to purchase tooling and other fixed assets . ( 2 ) contingent consideration consists of contingent payments related to our purchase of the net assets of ecolink . liquidity historically , we have utilized cash provided from operations as our primary source of liquidity , as internally generated cash flows have been sufficient to support our business operations , capital expenditures and discretionary share repurchases . more recently we have utilized our revolving line of credit to fund an increased level of share repurchases and our acquisition of the net assets of ecolink . we anticipate that we will continue to utilize both cash flows from operations and our revolving line of credit to support ongoing business operations , capital expenditures and future discretionary share repurchases . our working capital needs have typically been greatest during the third and fourth quarters when accounts receivable and inventories increase in connection with the fourth quarter holiday selling season . in addition , inventory levels typically increase in anticipation of factory closures in observance of chinese new year . we believe our current cash balances , anticipated cash flow to be generated from operations and available borrowing resources will be sufficient
| sources and uses of cash replace_table_token_9_th replace_table_token_10_th net cash provided by operating activities increased $ 23.4 million in 2016 when compared to 2015 , primarily due to the net impact of changes in working capital needs associated with accounts receivable , inventories and accounts payable . with respect to accounts receivable , although net sales increased by 8.1 % in 2016 compared to 2015 , accounts receivable only increased by 2.3 % due to the timing of sales in the current year period . additionally , we experienced a greater growth in accounts receivable in 2015 as a result of us extending longer payment terms to certain significant customers . at december 31 , 2016 , days sales outstanding was 70 days compared to 68 days at december 31 , 2015. cash outflows associated with inventories were greater in 2015 compared to 2016 primarily due to preparation in 2015 for the manufacturing transition of certain products from our southern china factory to our other three factories located in china . the decrease in cash inflows associated with accounts payable were largely driven by the decrease in cash outflows associated with inventories . net cash provided by operating activities decreased $ 37.4 million in 2015 when compared to 2014 , primarily due to the net impact of changes in working capital needs associated with inventories , accounts receivable and 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.
```sources and uses of cash replace_table_token_9_th replace_table_token_10_th net cash provided by operating activities increased $ 23.4 million in 2016 when compared to 2015 , primarily due to the net impact of changes in working capital needs associated with accounts receivable , inventories and accounts payable . with respect to accounts receivable , although net sales increased by 8.1 % in 2016 compared to 2015 , accounts receivable only increased by 2.3 % due to the timing of sales in the current year period . additionally , we experienced a greater growth in accounts receivable in 2015 as a result of us extending longer payment terms to certain significant customers . at december 31 , 2016 , days sales outstanding was 70 days compared to 68 days at december 31 , 2015. cash outflows associated with inventories were greater in 2015 compared to 2016 primarily due to preparation in 2015 for the manufacturing transition of certain products from our southern china factory to our other three factories located in china . the decrease in cash inflows associated with accounts payable were largely driven by the decrease in cash outflows associated with inventories . net cash provided by operating activities decreased $ 37.4 million in 2015 when compared to 2014 , primarily due to the net impact of changes in working capital needs associated with inventories , accounts receivable and accounts payable .
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Suspicious Activity Report : on an on-going basis , we evaluate our estimates and judgments , including those related to revenue recognition , allowances for sales returns and doubtful accounts , inventory valuation , our review for impairment of long-lived assets , intangible assets and goodwill , business combinations , income taxes , stock-based compensation expense and performance-based common stock warrants . actual results may differ from these judgments and estimates , and they may be adjusted as more information becomes available . any adjustment may be significant and may have a material impact on our consolidated financial position or results of operations . an accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made , if different estimates reasonably may have been used , or if changes in the estimate that are reasonably likely to occur may materially impact the financial statements . management believes the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . in addition to the accounting policies mentioned below , see `` item 8. financial statements and supplementary data — notes to consolidated financial statements — note 2 `` for other significant accounting policies . revenue recognition we recognize revenue on the sale of products when title of the goods has transferred , there is persuasive evidence of an arrangement ( such as a purchase order from the customer ) , the sales price is fixed or determinable and collectability is reasonably assured . a provision is recorded for estimated sales returns and allowances and is deducted from gross sales to arrive at net sales in the period the related revenue is recorded . these estimates are based on historical sales returns and allowances , analysis of credit memo data and other known factors . actual returns and claims in any future period are inherently uncertain and thus may differ from our estimates . if actual or expected future returns and claims are significantly greater or lower than the reserves that we have established , we will record a reduction or increase to net revenues in the period in which we make such a determination . we accrue for discounts and rebates based on historical experience and our expectations regarding future sales to our customers . these accruals are recorded as a reduction to sales in the same period as the related revenues . changes in such accruals may be required if future rebates and incentives differ from our estimates . revenue for the sale of tooling is recognized when the related tooling has been provided , customer acceptance documentation has been obtained , the sales price is fixed or determinable and collectability is reasonably assured . we generate service revenue , which is paid monthly , as a result of providing consumer support programs to some of our customers through our call centers . these service revenues are recognized when services are performed , persuasive evidence of an arrangement exists ( such as when a signed agreement is received from the customer ) , the sales price is fixed or determinable , and collectability is reasonably assured . we license our intellectual property including our patented technologies , trademarks , and database of control codes . when our license fees are paid on a per unit basis we record license revenue when our customers ship a product incorporating our intellectual property , persuasive evidence of an arrangement exists , the sales price is fixed or determinable , and collectability is reasonably assured . when a fixed upfront license fee is received in exchange for the delivery of a particular database of infrared codes that represents the culmination of the earnings process , we record revenues when delivery has occurred , persuasive evidence of an arrangement exists , the sales price is fixed or determinable and collectability is reasonably assured . revenue for term license fees is recognized on a straight-line basis over the effective term of the license when we can not reliably predict in which periods , within the term of the license , the licensee will benefit from the use of our patented inventions . allowance for doubtful accounts we maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make payments for products sold or services rendered . the allowance for doubtful accounts is estimated based on a variety of factors , including credit reviews , historical experience , length of time receivables are past due , current economic trends and changes in customer payment behavior . we also record specific provisions for individual accounts when we become aware of a customer 's inability to meet its financial obligations to us , such as in the case of bankruptcy filings or deterioration in the customer 's operating results or financial position . our historical reserves have been sufficient to cover losses from uncollectible accounts . however , because we can not predict future changes in the financial stability of our customers , actual future losses from uncollectible accounts may differ from our estimates and may have a material effect on our consolidated financial position , results of operations and cash flows . 27 inventories our finished good , component part , and raw material inventories are valued at the lower of cost or market value . cost is determined using the first-in , first-out method . we write-down our inventory for the estimated difference between cost and estimated market value based upon our best estimates of future demand and market conditions . we carry inventory in amounts necessary to satisfy our customers ' inventory requirements on a timely basis . we continually monitor our inventory status to control inventory levels and write-down any excess or obsolete inventories on hand . story_separator_special_tag this change was driven primarily by foreign currency gains associated with fluctuations in the chinese yuan renminbi exchange rate versus the u.s. dollar . income tax expense . income tax expense was $ 4.8 million in 2016 compared to $ 6.8 million in 2015 . our effective tax rate was consistent at 19.1 % in 2016 compared to 18.9 % in 2015 . year ended december 31 , 2015 compared to year ended december 31 , 2014 ( `` 2014 `` ) net sales . net sales for 2015 were $ 602.8 million , an increase of 7.2 % compared to $ 562.3 million in 2014. net sales by our business and consumer lines were as follows : replace_table_token_8_th net sales in our business lines ( subscription broadcasting , oem , and computing companies ) were 91.4 % of net sales in 2015 compared to 90.2 % in 2014. net sales in our business lines in 2015 increased by 8.7 % to $ 551.0 million from $ 507.1 million in 2014 driven primarily by strong demand and increased market share with north american subscription broadcasters as more customers transition from lower end platforms to higher end platforms . partially offsetting this improvement was a decrease in net sales to consumer electronics companies in asia . net sales in our consumer lines ( one for all ® retail and private label ) were 8.6 % of net sales in 2015 compared to 9.8 % in 2014. net sales in our consumer lines in 2015 decreased by 6.2 % to $ 51.8 million from $ 55.2 million in 2014. this decrease was driven primarily by the weakening of the euro and the british pound compared to the u.s. dollar , which negatively impacted sales in 2015 by $ 5.3 million . this unfavorable currency impact was partially offset by increased sales in the european market . gross profit . gross profit in 2015 was $ 166.7 million compared to $ 166.9 million in 2014. gross profit as a percent of sales decreased to 27.7 % in 2015 from 29.7 % in 2014. the gross margin percentage was unfavorably impacted by an increase in sales to certain large customers that yield a lower gross margin rate than our company average , labor inflation in china where our four manufacturing facilities are located , and a decrease in royalty revenue associated with the tv and mobile device markets . the impact of these unfavorable items was partially offset by the weakening of the chinese yuan renminbi relative to the u.s. dollar . research and development expenses . r & d expenses increased 6.9 % to $ 18.1 million in 2015 from $ 17.0 million in 2014 as a result of our research and development efforts in existing categories as well as new categories such as the home security channel . selling , general and administrative expenses . sg & a expenses increased 3.7 % to $ 112.7 million in 2015 from $ 108.6 million in 2014. this increase was attributable primarily to an unfavorable court order in a patent litigation lawsuit of $ 4.6 million in the third quarter of 2015 as well as increased payroll costs driven by additional headcount to support product development efforts and annual merit increases . sg & a expenses also increased due to increased delivery expenses as a result of the additional sales to north american subscription broadcasting customers in 2015 and the rerouting of certain shipments in the first quarter of 2015 due to temporary port congestion in los angeles , california . these increases were partially offset by the weakening of the euro and brazilian real and a decrease in incentive compensation costs . interest income ( expense ) , net . net interest income was $ 63 thousand in 2015 compared to net interest income of $ 11 thousand in 2014 . 32 other income ( expense ) , net . net other expense was $ 7 thousand in 2015 compared to net other expense of $ 0.8 million in 2014. this change was driven primarily by a decrease in foreign currency losses associated with fluctuations in foreign currency exchange rates related to the euro , chinese yuan renminbi and british pound . income tax expense . income tax expense was $ 6.8 million in 2015 compared to $ 7.9 million in 2014 , and our effective tax rate was 18.9 % in 2015 compared to 19.6 % in 2014. the decrease in our effective tax rate was due primarily to the recording of $ 0.5 million in tax refunds in 2015 related to tax incentives in china for the years 2012 through 2014. liquidity and capital resources story_separator_special_tag style= `` line-height:120 % ; font-size:10pt ; `` > ( 1 ) purchase obligations consist of contractual payments to purchase tooling and other fixed assets . ( 2 ) contingent consideration consists of contingent payments related to our purchase of the net assets of ecolink . liquidity historically , we have utilized cash provided from operations as our primary source of liquidity , as internally generated cash flows have been sufficient to support our business operations , capital expenditures and discretionary share repurchases . more recently we have utilized our revolving line of credit to fund an increased level of share repurchases and our acquisition of the net assets of ecolink . we anticipate that we will continue to utilize both cash flows from operations and our revolving line of credit to support ongoing business operations , capital expenditures and future discretionary share repurchases . our working capital needs have typically been greatest during the third and fourth quarters when accounts receivable and inventories increase in connection with the fourth quarter holiday selling season . in addition , inventory levels typically increase in anticipation of factory closures in observance of chinese new year . we believe our current cash balances , anticipated cash flow to be generated from operations and available borrowing resources will be sufficient
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2,626 | basis of presentation our results on a “ predecessor ” basis relate to the assets acquired and liabilities assumed by warrior met coal , llc from walter energy in the asset acquisition and the related periods ending on or prior to march 31 , 2016. our results on a “ successor ” basis relate to warrior met coal , llc and its subsidiaries for periods beginning as of april 1 , 2016 and warrior met coal , inc. after giving effect to our corporate conversion on april 12 , 2017 from a delaware limited liability company into a delaware corporation . our results for the predecessor and successor periods have been separated by a vertical line to identify these different bases of accounting . the historical costs and expenses reflected in the predecessor combined results of operations include an allocation for certain corporate functions historically provided by walter energy . substantially all of the predecessor 's senior management were employed by walter energy and certain functions critical to the predecessor 's operations were centralized and managed by walter energy . historically , the centralized functions have included executive senior management , financial reporting , financial planning and analysis , accounting , shared services , information technology , tax , risk management , treasury , legal , human resources , and strategy and development . the costs of each of these services have been allocated to the predecessor on the basis of the predecessor 's relative headcount , revenue and total assets to that of walter energy . the combined financial statements of our predecessor included elsewhere in this annual report and the other historical predecessor combined financial information presented and discussed in this management 's discussion and analysis may not be indicative of what our financial condition , results of operations and cash flows would actually have been had we been a separate stand-alone entity , nor are they indicative of what our financial position , results of operations and cash flows may be in the future . 61 factors affecting the comparability of our financial statements asset acquisition on march 31 , 2016 , we consummated the acquisition of the predecessor on a debt free basis with minimum legacy liabilities . the asset acquisition included mine no . 4 and mine no . 7 , which management believes to be two of the highest quality and lowest cost met coal mines in the united states . prior to the asset acquisition , the company had no operations and nominal assets . we acquired the predecessor for an aggregate cash consideration of $ 50.8 million and the release of claims associated with the 2011 credit agreement and walter energy 's 9.50 % senior secured notes due 2019. in connection with the closing of the asset acquisition and in exchange for a portion of the outstanding first lien debt , walter energy 's first lien lenders were entitled to receive , on a pro rata basis , a distribution of our class a units . we accounted for the asset acquisition as a business combination under accounting standard codification ( “ asc ” ) topic 805 , business combinations . as part of the asset acquisition , we incurred transaction costs related to professional fees in the amount of $ 10.5 million for the nine months ended december 31 , 2016 , which is recorded in transaction and other costs on the statement of operations . rights offerings as part of the asset acquisition , we also conducted the rights offerings . the rights offerings gave walter energy 's first lien lenders and certain qualified unsecured creditors the option to purchase an aggregate 2,500,004 class b units for $ 80.00 per unit and irrevocably commit to purchase , on the same pro rata basis , class a units in one or more capital raising transactions at such later date and on such terms and subject to such conditions as determined by a supermajority vote of our board of managers . the $ 200.0 million raised from the rights offerings was used to pay cash consideration of $ 50.8 million for the asset acquisition , including repayment of certain debtor-in-possession credit agreements of walter energy , to sustain our coal mining operations following consummation of the asset acquisition and for general corporate purposes . corporate conversion and ipo on april 12 , 2017 , in connection with the ipo , warrior met coal , llc filed a certificate of conversion , whereby warrior met coal , llc effected a corporate conversion from a delaware limited liability company to a delaware corporation and changed its name to warrior met coal , inc. as part of the corporate conversion , holders of class a , class b units ( which included the class b units which had converted into class a units ) and class c units of warrior met coal , llc received shares of our common stock for each unit held immediately prior to the corporate conversion using an approximate 13.9459-to-one conversion ratio . in connection with this corporate conversion , the company filed a certificate of incorporation . pursuant to the company 's certificate of incorporation , the company is authorized to issue up to 140,000,000 shares of common stock , $ 0.01 par value per share , and 10,000,000 shares of preferred stock , $ 0.01 par value per share . all references in this “ management 's discussion and analysis of financial condition and results of operations ” to the number of shares and per share amounts of common stock have been retroactively recast to reflect the corporate conversion . on april 19 , 2017 , the company completed its ipo , whereby certain selling stockholders sold 16,666,667 shares of common stock at a price to the public of $ 19.00 per share . the company did not receive any proceeds from the sale of common stock in the ipo . story_separator_special_tag transaction and other costs were $ 12.9 million , or 1.1 % for the year ended december 31 , 2017 which was comprised primarily of professional fees incurred in connection with our ipo and with the issuance of the existing notes ( as defined in note 16 to the consolidated financial statements ) . interest expense , net was $ 37.3 million , or 2.7 % of total revenues , for the year ended december 31 , 2018 , compared to $ 6.9 million , or 0.6 % of total revenues , for the year ended december 31 , 2017 . the $ 30.4 million increase was primarily driven by $ 36.3 million of additional interest expense on the notes due to the issuance of $ 125.0 million in aggregate principal amount on march 1 , 2018 and the issuance of $ 350.0 million aggregate principal amount on november 2 , 2017. income tax benefit for the year ended december 31 , 2018 was $ 225.8 million or an effective tax rate of ( 47.9 ) % compared to an income tax benefit of $ 38.6 million or an effective tax rate of ( 9.27 ) % for the year ended december 31 , 2017 . during the fourth quarter of 2018 , we concluded that our deferred income tax assets are more likely than not to be realized . in making such determination , we considered all available positive and negative evidence , including scheduled reversals of deferred tax liabilities , projected future taxable income and our continued strong financial performance which contributed to a cumulative three-year income position . accordingly , at december 31 , 2018 , we released all of our valuation allowance against our deferred income tax assets . the release of the valuation allowance primarily resulted in a net income tax benefit of $ 225.8 million that was recorded in income tax benefit ( expense ) in our consolidated statement of operations . beginning in 2019 , we expect to record income tax expense with an effective tax rate of 23 % -25 % . at december 31 , 2018 , we had $ 1.1 billion of u.s. federal pre-tax net operating loss carryforwards . accordingly , we believe we will not pay any cash federal income taxes during the next several years . our u.s. federal pre-tax net operating loss carryforwards do not begin to expire until 2034. see note 8 of the notes to the consolidated financial statements for more information . the tax cuts and jobs act was enacted on december 22 , 2017 and significantly revised the u.s. corporate income tax regime by , among other things , lowering the u.s. corporate tax rate from 35 % to 21 % effective january 1 , 2018 , while also repealing the deduction for domestic production activities , implementing a territorial tax system , limiting the deduction for interest expense , limiting the use of net operating losses generated on or after january 1 , 2018 to offset taxable income and repealing the corporate amt and triggering refunding provisions for existing amt credits . in the fourth quarter of 2017 , we 68 recorded an income tax benefit of approximately $ 1.7 million due to the remeasurement of the deferred tax liability associated with the indefinitely lived asset that will now reverse at the new 21 % rate . on january 14 , 2019 , the irs issued a statement that amt refunds for taxable years beginning after december 31 , 2017 will not be subject to sequestration which reversed an earlier irs announcement that refundable amt credits would be subject to sequestration . as a result , we completed our accounting for the income tax effects of the tax cuts and jobs act and recorded a measurement period adjustment recognizing an income tax receivable and related income tax benefit of $ 2.8 million . as of december 31 , 2018 , we have a current income tax receivable of $ 21.6 million and a non-current income tax receivable of $ 21.3 million which represents our total amt credits expected to be received in 2019 to 2022. on march 31 , 2016 , we experienced an ownership change for purposes of section 382 of the code . as a result of such ownership change , absent an applicable exception to such rules , an annual limitation under section 382 would apply for federal and certain state income tax purposes with respect to the utilization of nols . in 2017 , we had requested a private letter ruling ( “ plr ” ) from the irs to clarify certain matters , that if ruled favorably on by the irs , would allow us to qualify for an exception to the aforementioned rules limiting its utilization of its nols . on september 18 , 2017 , the irs issued to us a favorable plr . prior to the issuance of the plr , we operated and prepared our financial statements based on an assumption that an annual limitation on the utilization of the nols existed . based on the receipt of the favorable plr , we now believe that we qualify for an exception to such nol limitation rules and as such , no annual code section 382 limitation to the utilization of our federal nols applies . as a result of qualifying for such exception and due to the reduction in the corporate income tax rate , our federal and state nols were revised downward to approximately $ 1.9 billion and $ 2.0 billion , respectively , as of december 31 , 2016. if we were to undergo a subsequent ownership change our nols and other tax attributes could be subject to severe limitations . see `` part i , item 1a . risk factors - we may be unable to generate sufficient taxable income from future operations , or other circumstances could arise , which may limit or eliminate our ability to utilize
| net cash used in investing activities was $ 30.9 million for the nine months ended december 31 , 2016 , primarily as a result of the cash used in connection with the asset acquisition and the purchase of u.s. treasury bills posted as collateral for the self-insured black lung claims that were assumed in the asset acquisition of $ 17.5 million . net cash used in investing activities was $ 5.4 million for the three months ended march 31 , 2016 ( predecessor ) primarily due to purchases of property , plant and equipment . financing activities net cash used in financing activities was $ 281.6 million for the year ended december 31 , 2018 , primarily due to the payment of dividends totaling $ 360.6 million in the aggregate , common shares repurchased of $ 38.0 million , payment of debt issuance costs of $ 3.7 million , retirements of debt of $ 3.1 million , offset partially by the net proceeds received from the issuance of the new notes of $ 128.8 million . net cash used in financing activities was $ 458.3 million for the year ended december 31 , 2017 , primarily due to the payment of the march special distribution , november special dividend and quarterly dividends totaling $ 796.9 million in the aggregate , payment of debt issuance costs of $ 2.6 million , retirements of debt of $ 3.1 million , offset partially by 74 the net proceeds from the notes offering of $ 344.8 million . net cash provided by financing activities was $ 192.7 million for the nine months ended december 31 , 2016 , primarily due to the proceeds received from the rights offerings offset by payments of debt issuance costs .
| 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 was $ 30.9 million for the nine months ended december 31 , 2016 , primarily as a result of the cash used in connection with the asset acquisition and the purchase of u.s. treasury bills posted as collateral for the self-insured black lung claims that were assumed in the asset acquisition of $ 17.5 million . net cash used in investing activities was $ 5.4 million for the three months ended march 31 , 2016 ( predecessor ) primarily due to purchases of property , plant and equipment . financing activities net cash used in financing activities was $ 281.6 million for the year ended december 31 , 2018 , primarily due to the payment of dividends totaling $ 360.6 million in the aggregate , common shares repurchased of $ 38.0 million , payment of debt issuance costs of $ 3.7 million , retirements of debt of $ 3.1 million , offset partially by the net proceeds received from the issuance of the new notes of $ 128.8 million . net cash used in financing activities was $ 458.3 million for the year ended december 31 , 2017 , primarily due to the payment of the march special distribution , november special dividend and quarterly dividends totaling $ 796.9 million in the aggregate , payment of debt issuance costs of $ 2.6 million , retirements of debt of $ 3.1 million , offset partially by 74 the net proceeds from the notes offering of $ 344.8 million . net cash provided by financing activities was $ 192.7 million for the nine months ended december 31 , 2016 , primarily due to the proceeds received from the rights offerings offset by payments of debt issuance costs .
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Suspicious Activity Report : basis of presentation our results on a “ predecessor ” basis relate to the assets acquired and liabilities assumed by warrior met coal , llc from walter energy in the asset acquisition and the related periods ending on or prior to march 31 , 2016. our results on a “ successor ” basis relate to warrior met coal , llc and its subsidiaries for periods beginning as of april 1 , 2016 and warrior met coal , inc. after giving effect to our corporate conversion on april 12 , 2017 from a delaware limited liability company into a delaware corporation . our results for the predecessor and successor periods have been separated by a vertical line to identify these different bases of accounting . the historical costs and expenses reflected in the predecessor combined results of operations include an allocation for certain corporate functions historically provided by walter energy . substantially all of the predecessor 's senior management were employed by walter energy and certain functions critical to the predecessor 's operations were centralized and managed by walter energy . historically , the centralized functions have included executive senior management , financial reporting , financial planning and analysis , accounting , shared services , information technology , tax , risk management , treasury , legal , human resources , and strategy and development . the costs of each of these services have been allocated to the predecessor on the basis of the predecessor 's relative headcount , revenue and total assets to that of walter energy . the combined financial statements of our predecessor included elsewhere in this annual report and the other historical predecessor combined financial information presented and discussed in this management 's discussion and analysis may not be indicative of what our financial condition , results of operations and cash flows would actually have been had we been a separate stand-alone entity , nor are they indicative of what our financial position , results of operations and cash flows may be in the future . 61 factors affecting the comparability of our financial statements asset acquisition on march 31 , 2016 , we consummated the acquisition of the predecessor on a debt free basis with minimum legacy liabilities . the asset acquisition included mine no . 4 and mine no . 7 , which management believes to be two of the highest quality and lowest cost met coal mines in the united states . prior to the asset acquisition , the company had no operations and nominal assets . we acquired the predecessor for an aggregate cash consideration of $ 50.8 million and the release of claims associated with the 2011 credit agreement and walter energy 's 9.50 % senior secured notes due 2019. in connection with the closing of the asset acquisition and in exchange for a portion of the outstanding first lien debt , walter energy 's first lien lenders were entitled to receive , on a pro rata basis , a distribution of our class a units . we accounted for the asset acquisition as a business combination under accounting standard codification ( “ asc ” ) topic 805 , business combinations . as part of the asset acquisition , we incurred transaction costs related to professional fees in the amount of $ 10.5 million for the nine months ended december 31 , 2016 , which is recorded in transaction and other costs on the statement of operations . rights offerings as part of the asset acquisition , we also conducted the rights offerings . the rights offerings gave walter energy 's first lien lenders and certain qualified unsecured creditors the option to purchase an aggregate 2,500,004 class b units for $ 80.00 per unit and irrevocably commit to purchase , on the same pro rata basis , class a units in one or more capital raising transactions at such later date and on such terms and subject to such conditions as determined by a supermajority vote of our board of managers . the $ 200.0 million raised from the rights offerings was used to pay cash consideration of $ 50.8 million for the asset acquisition , including repayment of certain debtor-in-possession credit agreements of walter energy , to sustain our coal mining operations following consummation of the asset acquisition and for general corporate purposes . corporate conversion and ipo on april 12 , 2017 , in connection with the ipo , warrior met coal , llc filed a certificate of conversion , whereby warrior met coal , llc effected a corporate conversion from a delaware limited liability company to a delaware corporation and changed its name to warrior met coal , inc. as part of the corporate conversion , holders of class a , class b units ( which included the class b units which had converted into class a units ) and class c units of warrior met coal , llc received shares of our common stock for each unit held immediately prior to the corporate conversion using an approximate 13.9459-to-one conversion ratio . in connection with this corporate conversion , the company filed a certificate of incorporation . pursuant to the company 's certificate of incorporation , the company is authorized to issue up to 140,000,000 shares of common stock , $ 0.01 par value per share , and 10,000,000 shares of preferred stock , $ 0.01 par value per share . all references in this “ management 's discussion and analysis of financial condition and results of operations ” to the number of shares and per share amounts of common stock have been retroactively recast to reflect the corporate conversion . on april 19 , 2017 , the company completed its ipo , whereby certain selling stockholders sold 16,666,667 shares of common stock at a price to the public of $ 19.00 per share . the company did not receive any proceeds from the sale of common stock in the ipo . story_separator_special_tag transaction and other costs were $ 12.9 million , or 1.1 % for the year ended december 31 , 2017 which was comprised primarily of professional fees incurred in connection with our ipo and with the issuance of the existing notes ( as defined in note 16 to the consolidated financial statements ) . interest expense , net was $ 37.3 million , or 2.7 % of total revenues , for the year ended december 31 , 2018 , compared to $ 6.9 million , or 0.6 % of total revenues , for the year ended december 31 , 2017 . the $ 30.4 million increase was primarily driven by $ 36.3 million of additional interest expense on the notes due to the issuance of $ 125.0 million in aggregate principal amount on march 1 , 2018 and the issuance of $ 350.0 million aggregate principal amount on november 2 , 2017. income tax benefit for the year ended december 31 , 2018 was $ 225.8 million or an effective tax rate of ( 47.9 ) % compared to an income tax benefit of $ 38.6 million or an effective tax rate of ( 9.27 ) % for the year ended december 31 , 2017 . during the fourth quarter of 2018 , we concluded that our deferred income tax assets are more likely than not to be realized . in making such determination , we considered all available positive and negative evidence , including scheduled reversals of deferred tax liabilities , projected future taxable income and our continued strong financial performance which contributed to a cumulative three-year income position . accordingly , at december 31 , 2018 , we released all of our valuation allowance against our deferred income tax assets . the release of the valuation allowance primarily resulted in a net income tax benefit of $ 225.8 million that was recorded in income tax benefit ( expense ) in our consolidated statement of operations . beginning in 2019 , we expect to record income tax expense with an effective tax rate of 23 % -25 % . at december 31 , 2018 , we had $ 1.1 billion of u.s. federal pre-tax net operating loss carryforwards . accordingly , we believe we will not pay any cash federal income taxes during the next several years . our u.s. federal pre-tax net operating loss carryforwards do not begin to expire until 2034. see note 8 of the notes to the consolidated financial statements for more information . the tax cuts and jobs act was enacted on december 22 , 2017 and significantly revised the u.s. corporate income tax regime by , among other things , lowering the u.s. corporate tax rate from 35 % to 21 % effective january 1 , 2018 , while also repealing the deduction for domestic production activities , implementing a territorial tax system , limiting the deduction for interest expense , limiting the use of net operating losses generated on or after january 1 , 2018 to offset taxable income and repealing the corporate amt and triggering refunding provisions for existing amt credits . in the fourth quarter of 2017 , we 68 recorded an income tax benefit of approximately $ 1.7 million due to the remeasurement of the deferred tax liability associated with the indefinitely lived asset that will now reverse at the new 21 % rate . on january 14 , 2019 , the irs issued a statement that amt refunds for taxable years beginning after december 31 , 2017 will not be subject to sequestration which reversed an earlier irs announcement that refundable amt credits would be subject to sequestration . as a result , we completed our accounting for the income tax effects of the tax cuts and jobs act and recorded a measurement period adjustment recognizing an income tax receivable and related income tax benefit of $ 2.8 million . as of december 31 , 2018 , we have a current income tax receivable of $ 21.6 million and a non-current income tax receivable of $ 21.3 million which represents our total amt credits expected to be received in 2019 to 2022. on march 31 , 2016 , we experienced an ownership change for purposes of section 382 of the code . as a result of such ownership change , absent an applicable exception to such rules , an annual limitation under section 382 would apply for federal and certain state income tax purposes with respect to the utilization of nols . in 2017 , we had requested a private letter ruling ( “ plr ” ) from the irs to clarify certain matters , that if ruled favorably on by the irs , would allow us to qualify for an exception to the aforementioned rules limiting its utilization of its nols . on september 18 , 2017 , the irs issued to us a favorable plr . prior to the issuance of the plr , we operated and prepared our financial statements based on an assumption that an annual limitation on the utilization of the nols existed . based on the receipt of the favorable plr , we now believe that we qualify for an exception to such nol limitation rules and as such , no annual code section 382 limitation to the utilization of our federal nols applies . as a result of qualifying for such exception and due to the reduction in the corporate income tax rate , our federal and state nols were revised downward to approximately $ 1.9 billion and $ 2.0 billion , respectively , as of december 31 , 2016. if we were to undergo a subsequent ownership change our nols and other tax attributes could be subject to severe limitations . see `` part i , item 1a . risk factors - we may be unable to generate sufficient taxable income from future operations , or other circumstances could arise , which may limit or eliminate our ability to utilize
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2,627 | used for espionage and information theft ; and rugged small-form factor embedded computing solutions . our results of operations in fiscal 2020 were significantly affected by the covid-19 global pandemic ( the “ pandemic ” ) . the effects of the pandemic and related actions by governments around the world to mitigate its spread have impacted our employees , customers , suppliers and manufacturers . in response to the economic impact from the pandemic , we implemented certain cost reduction efforts , including layoffs , temporary reduced work hours and temporary pay reductions within various departments of our business , including within our executive management team and our board of directors . additionally , our response to the pandemic included the implementation of varying health and safety measures at our facilities , including : supplying and requiring the use of personal protective equipment ; staggering work shifts ; body temperature taking ; increasing work-from-home capabilities ; consistent and ongoing cleaning of work spaces and high-touch areas ; and establishing processes aligned with the centers for disease and control guidelines to work with any individual exposed to covid-19 on their necessary quarantine period and the process for the individual to return to work . with respect to our results of operations , approximately 59 % of our net sales in fiscal 2020 were derived from defense , space and other industrial markets including electronics , medical and telecommunications . although demand for these products was slightly moderated in fiscal 2020 , our overall results from this portion of our business were not materially impacted by the pandemic . however , we experienced , and expect to continue experiencing , periodic operational disruptions resulting from supply chain disturbances , staffing challenges - including at some of our customers , temporary facility closures , transportation interruptions and other conditions which slow production and orders , or increase costs . the remaining portion of our fiscal 2020 net sales was derived from commercial aviation products and services . the pandemic has caused significant volatility and a substantial decline in value across global markets . most notably , the commercial aerospace industry experienced an ongoing substantial decline in demand resulting from a significant number of aircraft in the 34 index global fleet being grounded during fiscal 2020. our businesses that operate within the commercial aerospace industry were materially impacted by the significant decline in global commercial air travel that began in march 2020. consolidated net sales for our businesses that operate within the commercial aerospace industry decreased by approximately 32 % during fiscal 2020. as we look ahead to fiscal 2021 , the extent to which the pandemic may have a material adverse effect on our future business , financial condition and results of operations will depend on many factors that are not within heico 's control , including but not limited to the duration , spread and severity of the pandemic , government responses and other actions to mitigate the spread of and to treat the pandemic , and when and to what extent normal business , economic and social activity and conditions resume . however , we are cautiously optimistic that the recent vaccine progress may generate increased commercial air travel and result in a gradual recovery in demand for our commercial aerospace parts and services commencing in fiscal 2021. additionally , our results of operations in fiscal 2020 have been affected by recent acquisitions as further detailed in note 2 , acquisitions , of the notes to consolidated financial statements . presentation of results of operations and liquidity and capital resources the following discussion and analysis of our results of operations and liquidity and capital resources includes a comparison of fiscal 2020 to fiscal 2019. a similar discussion and analysis that compares fiscal 2019 to fiscal 2018 may be found in item 7 , `` management 's discussion and analysis of financial condition and results of operations , ” of our form 10-k for the fiscal year ended october 31 , 2019 . 35 index results of operations the following table sets forth the results of our operations , net sales and operating income by segment and the percentage of net sales represented by the respective items in our consolidated statements of operations ( in thousands ) : replace_table_token_9_th 36 index comparison of fiscal 2020 to fiscal 2019 net sales our consolidated net sales in fiscal 2020 decreased by 13 % to $ 1,787.0 million , as compared to net sales of $ 2,055.6 million in fiscal 2019. the decrease in consolidated net sales principally reflects a decrease of $ 315.4 million ( a 25 % decrease ) to $ 924.8 million in net sales within the fsg partially offset by an increase of $ 40.5 million ( a 5 % increase ) to a record $ 875.0 million in net sales within the etg . the net sales decrease in the fsg is principally organic and reflects lower demand for the majority of our products and services resulting from the significant decline in global commercial air travel beginning in march 2020 due to the pandemic . as a result , organic net sales of our aftermarket replacement parts , repair and overhaul parts and services , and specialty products product lines decreased by $ 154.0 million , $ 106.2 million , and $ 58.8 million , respectively . the net sales increase in the etg principally reflects $ 52.8 million contributed by our fiscal 2020 and 2019 acquisitions and higher demand for our defense products resulting in an organic net sales increase of $ 13.6 million partially offset by lower demand for our commercial aerospace and medical products resulting in organic net sales decreases of $ 12.9 million and $ 5.6 million , respectively , largely attributable to the pandemic . story_separator_special_tag our performance obligations are satisfied and control is transferred either at a point-in-time or over-time . the majority of our revenue is recognized at a point-in-time when control is transferred , which is generally evidenced by the shipment or delivery of the product to the customer , a transfer of title , a transfer of the significant risks and rewards of ownership , and customer acceptance . for certain contracts under which we produce products with no alternative use and for which we have an enforceable right to recover costs incurred plus a reasonable profit margin for work completed to date and for certain other contracts under which we create or enhance a customer-owned asset while performing repair and overhaul services , control is transferred to the customer over-time . heico recognizes revenue using an over-time recognition model for these types of contracts . we utilize the cost-to-cost method as a measure of progress for performance obligations that are satisfied over-time as we believe this input method best represents the transfer of control to the customer . under this method , revenue for the current period is recorded at an amount equal to the ratio of costs incurred to date divided by total estimated contract costs multiplied by ( i ) the transaction price , less ( ii ) cumulative revenue recognized in prior periods . contract costs include all direct material and labor costs and those indirect costs related to contract performance , such as indirect labor , supplies , tools , repairs and depreciation . under the cost-to-cost method , the extent of progress toward completion is measured based on the proportion of costs incurred to date to the total estimated costs at completion of the performance obligation . these projections require management to make numerous assumptions and estimates relating to items such as the complexity of design and related development costs , performance of subcontractors , availability and cost of materials , labor productivity and cost , overhead , capital costs , and manufacturing efficiency . we review our cost estimates on a periodic basis , or when circumstances change and warrant a modification to a previous estimate . cost estimates are largely based on negotiated or estimated purchase contract terms , historical performance trends and other economic projections . for certain contracts with similar characteristics and for which revenue is recognized using an over-time model , we use a portfolio approach to estimate the amount of revenue to recognize . for each portfolio of contracts , the respective work in process and or finished goods inventory balances are identified and the portfolio-specific margin is applied to estimate the pro rata portion of the transaction price to recognize in relation to the costs incurred . this approach is utilized only when the resulting revenue recognition is not expected to be materially different than if the accounting was applied to the individual contracts . certain of our contracts give rise to variable consideration when they contain items such as customer rebates , credits , volume purchase discounts , penalties and other provisions that may impact the total consideration we will receive . we include variable consideration in the transaction price generally by applying the most likely amount method of the consideration that we expect to be entitled to receive based on an assessment of all available information ( i.e . , historical experience , current and forecasted performance ) and only to the extent it is probable 45 index that a significant reversal of revenue recognized will not occur when the uncertainty is resolved . we estimate variable consideration by applying the most likely amount method when there are a limited number of outcomes related to the resolution of the variable consideration . changes in estimates that result in adjustments to net sales and cost of sales are recognized as necessary in the period they become known on a cumulative catch-up basis . changes in estimates did not have a material effect on net income from consolidated operations in fiscal 2020 , 2019 and 2018. valuation of inventory inventory is stated at the lower of cost or net realizable value , with cost being determined on the first-in , first-out or the average cost basis . losses , if any , are recognized fully in the period when identified . we periodically evaluate the carrying value of inventory , giving consideration to factors such as its physical condition , sales patterns and expected future demand in order to estimate the amount necessary to write down any slow moving , obsolete or damaged inventory . these estimates could vary significantly from actual amounts based upon future economic conditions , customer inventory levels , or competitive factors that were not foreseen or did not exist when the estimated write-downs were made . in accordance with industry practice , all inventories are classified as a current asset including portions with long production cycles , some of which may not be realized within one year . business combinations we allocate the purchase price of acquired entities to the underlying tangible and identifiable intangible assets acquired and liabilities and any noncontrolling interests assumed based on their estimated fair values , with any excess recorded as goodwill . determining the fair value of assets acquired and liabilities and noncontrolling interests assumed requires management 's judgment and often involves the use of significant estimates and assumptions , including assumptions with respect to future cash inflows and outflows , discount rates , asset lives and market multiples , among other items . we determine the fair values of intangible assets acquired generally in consultation with third-party valuation advisors . as part of the agreement to acquire certain subsidiaries , we may be obligated to pay contingent consideration should the acquired entity meet certain earnings objectives subsequent to the date of acquisition . as of the acquisition date , contingent consideration is recorded at fair value as determined through the use of a probability-based scenario analysis approach
| liquidity and capital resources the following table summarizes our capitalization ( in thousands ) : replace_table_token_10_th our principal uses of cash include acquisitions , capital expenditures , cash dividends , distributions to noncontrolling interests and working capital needs . capital expenditures in fiscal 2021 are anticipated to approximate $ 40 million . we finance our activities primarily from our operating and financing activities , including borrowings under our revolving credit facility . as of december 22 , 2020 , we had approximately $ 755 million of unused committed availability under the terms of our revolving credit facility . based on our current outlook , we believe that net cash provided by operating activities and available borrowings under our revolving credit facility will be sufficient to fund our cash requirements for at least the next twelve months . 40 index operating activities net cash provided by operating activities was $ 409.1 million in fiscal 2020 and consisted primarily of net income from consolidated operations of $ 335.9 million , depreciation and amortization expense of $ 88.6 million ( a non-cash item ) , net changes in other long-term liabilities and assets related to the heico leadership compensation plan ( “ lcp ” ) of $ 14.8 million ( principally participant deferrals and employer contributions ) , $ 10.1 million in share-based compensation expense ( a non-cash item ) , and $ 9.6 million in employer contributions to the heico savings and investment plan ( a non-cash item ) , partially offset by a $ 48.5 million increase in working capital .
| 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 following table summarizes our capitalization ( in thousands ) : replace_table_token_10_th our principal uses of cash include acquisitions , capital expenditures , cash dividends , distributions to noncontrolling interests and working capital needs . capital expenditures in fiscal 2021 are anticipated to approximate $ 40 million . we finance our activities primarily from our operating and financing activities , including borrowings under our revolving credit facility . as of december 22 , 2020 , we had approximately $ 755 million of unused committed availability under the terms of our revolving credit facility . based on our current outlook , we believe that net cash provided by operating activities and available borrowings under our revolving credit facility will be sufficient to fund our cash requirements for at least the next twelve months . 40 index operating activities net cash provided by operating activities was $ 409.1 million in fiscal 2020 and consisted primarily of net income from consolidated operations of $ 335.9 million , depreciation and amortization expense of $ 88.6 million ( a non-cash item ) , net changes in other long-term liabilities and assets related to the heico leadership compensation plan ( “ lcp ” ) of $ 14.8 million ( principally participant deferrals and employer contributions ) , $ 10.1 million in share-based compensation expense ( a non-cash item ) , and $ 9.6 million in employer contributions to the heico savings and investment plan ( a non-cash item ) , partially offset by a $ 48.5 million increase in working capital .
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Suspicious Activity Report : used for espionage and information theft ; and rugged small-form factor embedded computing solutions . our results of operations in fiscal 2020 were significantly affected by the covid-19 global pandemic ( the “ pandemic ” ) . the effects of the pandemic and related actions by governments around the world to mitigate its spread have impacted our employees , customers , suppliers and manufacturers . in response to the economic impact from the pandemic , we implemented certain cost reduction efforts , including layoffs , temporary reduced work hours and temporary pay reductions within various departments of our business , including within our executive management team and our board of directors . additionally , our response to the pandemic included the implementation of varying health and safety measures at our facilities , including : supplying and requiring the use of personal protective equipment ; staggering work shifts ; body temperature taking ; increasing work-from-home capabilities ; consistent and ongoing cleaning of work spaces and high-touch areas ; and establishing processes aligned with the centers for disease and control guidelines to work with any individual exposed to covid-19 on their necessary quarantine period and the process for the individual to return to work . with respect to our results of operations , approximately 59 % of our net sales in fiscal 2020 were derived from defense , space and other industrial markets including electronics , medical and telecommunications . although demand for these products was slightly moderated in fiscal 2020 , our overall results from this portion of our business were not materially impacted by the pandemic . however , we experienced , and expect to continue experiencing , periodic operational disruptions resulting from supply chain disturbances , staffing challenges - including at some of our customers , temporary facility closures , transportation interruptions and other conditions which slow production and orders , or increase costs . the remaining portion of our fiscal 2020 net sales was derived from commercial aviation products and services . the pandemic has caused significant volatility and a substantial decline in value across global markets . most notably , the commercial aerospace industry experienced an ongoing substantial decline in demand resulting from a significant number of aircraft in the 34 index global fleet being grounded during fiscal 2020. our businesses that operate within the commercial aerospace industry were materially impacted by the significant decline in global commercial air travel that began in march 2020. consolidated net sales for our businesses that operate within the commercial aerospace industry decreased by approximately 32 % during fiscal 2020. as we look ahead to fiscal 2021 , the extent to which the pandemic may have a material adverse effect on our future business , financial condition and results of operations will depend on many factors that are not within heico 's control , including but not limited to the duration , spread and severity of the pandemic , government responses and other actions to mitigate the spread of and to treat the pandemic , and when and to what extent normal business , economic and social activity and conditions resume . however , we are cautiously optimistic that the recent vaccine progress may generate increased commercial air travel and result in a gradual recovery in demand for our commercial aerospace parts and services commencing in fiscal 2021. additionally , our results of operations in fiscal 2020 have been affected by recent acquisitions as further detailed in note 2 , acquisitions , of the notes to consolidated financial statements . presentation of results of operations and liquidity and capital resources the following discussion and analysis of our results of operations and liquidity and capital resources includes a comparison of fiscal 2020 to fiscal 2019. a similar discussion and analysis that compares fiscal 2019 to fiscal 2018 may be found in item 7 , `` management 's discussion and analysis of financial condition and results of operations , ” of our form 10-k for the fiscal year ended october 31 , 2019 . 35 index results of operations the following table sets forth the results of our operations , net sales and operating income by segment and the percentage of net sales represented by the respective items in our consolidated statements of operations ( in thousands ) : replace_table_token_9_th 36 index comparison of fiscal 2020 to fiscal 2019 net sales our consolidated net sales in fiscal 2020 decreased by 13 % to $ 1,787.0 million , as compared to net sales of $ 2,055.6 million in fiscal 2019. the decrease in consolidated net sales principally reflects a decrease of $ 315.4 million ( a 25 % decrease ) to $ 924.8 million in net sales within the fsg partially offset by an increase of $ 40.5 million ( a 5 % increase ) to a record $ 875.0 million in net sales within the etg . the net sales decrease in the fsg is principally organic and reflects lower demand for the majority of our products and services resulting from the significant decline in global commercial air travel beginning in march 2020 due to the pandemic . as a result , organic net sales of our aftermarket replacement parts , repair and overhaul parts and services , and specialty products product lines decreased by $ 154.0 million , $ 106.2 million , and $ 58.8 million , respectively . the net sales increase in the etg principally reflects $ 52.8 million contributed by our fiscal 2020 and 2019 acquisitions and higher demand for our defense products resulting in an organic net sales increase of $ 13.6 million partially offset by lower demand for our commercial aerospace and medical products resulting in organic net sales decreases of $ 12.9 million and $ 5.6 million , respectively , largely attributable to the pandemic . story_separator_special_tag our performance obligations are satisfied and control is transferred either at a point-in-time or over-time . the majority of our revenue is recognized at a point-in-time when control is transferred , which is generally evidenced by the shipment or delivery of the product to the customer , a transfer of title , a transfer of the significant risks and rewards of ownership , and customer acceptance . for certain contracts under which we produce products with no alternative use and for which we have an enforceable right to recover costs incurred plus a reasonable profit margin for work completed to date and for certain other contracts under which we create or enhance a customer-owned asset while performing repair and overhaul services , control is transferred to the customer over-time . heico recognizes revenue using an over-time recognition model for these types of contracts . we utilize the cost-to-cost method as a measure of progress for performance obligations that are satisfied over-time as we believe this input method best represents the transfer of control to the customer . under this method , revenue for the current period is recorded at an amount equal to the ratio of costs incurred to date divided by total estimated contract costs multiplied by ( i ) the transaction price , less ( ii ) cumulative revenue recognized in prior periods . contract costs include all direct material and labor costs and those indirect costs related to contract performance , such as indirect labor , supplies , tools , repairs and depreciation . under the cost-to-cost method , the extent of progress toward completion is measured based on the proportion of costs incurred to date to the total estimated costs at completion of the performance obligation . these projections require management to make numerous assumptions and estimates relating to items such as the complexity of design and related development costs , performance of subcontractors , availability and cost of materials , labor productivity and cost , overhead , capital costs , and manufacturing efficiency . we review our cost estimates on a periodic basis , or when circumstances change and warrant a modification to a previous estimate . cost estimates are largely based on negotiated or estimated purchase contract terms , historical performance trends and other economic projections . for certain contracts with similar characteristics and for which revenue is recognized using an over-time model , we use a portfolio approach to estimate the amount of revenue to recognize . for each portfolio of contracts , the respective work in process and or finished goods inventory balances are identified and the portfolio-specific margin is applied to estimate the pro rata portion of the transaction price to recognize in relation to the costs incurred . this approach is utilized only when the resulting revenue recognition is not expected to be materially different than if the accounting was applied to the individual contracts . certain of our contracts give rise to variable consideration when they contain items such as customer rebates , credits , volume purchase discounts , penalties and other provisions that may impact the total consideration we will receive . we include variable consideration in the transaction price generally by applying the most likely amount method of the consideration that we expect to be entitled to receive based on an assessment of all available information ( i.e . , historical experience , current and forecasted performance ) and only to the extent it is probable 45 index that a significant reversal of revenue recognized will not occur when the uncertainty is resolved . we estimate variable consideration by applying the most likely amount method when there are a limited number of outcomes related to the resolution of the variable consideration . changes in estimates that result in adjustments to net sales and cost of sales are recognized as necessary in the period they become known on a cumulative catch-up basis . changes in estimates did not have a material effect on net income from consolidated operations in fiscal 2020 , 2019 and 2018. valuation of inventory inventory is stated at the lower of cost or net realizable value , with cost being determined on the first-in , first-out or the average cost basis . losses , if any , are recognized fully in the period when identified . we periodically evaluate the carrying value of inventory , giving consideration to factors such as its physical condition , sales patterns and expected future demand in order to estimate the amount necessary to write down any slow moving , obsolete or damaged inventory . these estimates could vary significantly from actual amounts based upon future economic conditions , customer inventory levels , or competitive factors that were not foreseen or did not exist when the estimated write-downs were made . in accordance with industry practice , all inventories are classified as a current asset including portions with long production cycles , some of which may not be realized within one year . business combinations we allocate the purchase price of acquired entities to the underlying tangible and identifiable intangible assets acquired and liabilities and any noncontrolling interests assumed based on their estimated fair values , with any excess recorded as goodwill . determining the fair value of assets acquired and liabilities and noncontrolling interests assumed requires management 's judgment and often involves the use of significant estimates and assumptions , including assumptions with respect to future cash inflows and outflows , discount rates , asset lives and market multiples , among other items . we determine the fair values of intangible assets acquired generally in consultation with third-party valuation advisors . as part of the agreement to acquire certain subsidiaries , we may be obligated to pay contingent consideration should the acquired entity meet certain earnings objectives subsequent to the date of acquisition . as of the acquisition date , contingent consideration is recorded at fair value as determined through the use of a probability-based scenario analysis approach
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2,628 | we do not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this annual report on form 10-k. all share amounts give effect to the 1-for-4 reverse stock split of our outstanding shares of common stock that occurred on april 8 , 2015 . introduction this management 's discussion and analysis of our financial condition and results of operations are based on our financial statements , which management has prepared in accordance with u.s. generally accepted accounting principles . the preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported revenues and expenses during the reporting periods . on an ongoing basis , we evaluate such estimates and judgments , including those described in greater detail below . we base estimates on historical experience and on various other factors that management believes are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . business overview we are a research and clinical-stage biomaterials and biotechnology company with a focus on treatment of spinal cord injuries ( sci ) . our mission is to redefine the life of the sci patient , and we are developing treatment options intended to provide meaningful improvement in patient outcomes following sci . our approach to treating acute scis is based on our investigational neuro spinal scaffold implant , an investigational bioresorbable polymer scaffold that is designed for implantation at the site of injury within a spinal cord contusion and is intended to treat acute spinal cord injury . we believe the neuro spinal scaffold implant is the only sci therapy in development focused solely on treating acute sci directly at the epicenter of the injury , and incorporates intellectual property licensed under an exclusive , world wide license from boston children 's hospital ( `` bch `` ) and the massachusetts institute of technology ( `` mit `` ) . we are continually evaluating other technologies and therapeutics that may be complementary to our development of the neuro-spinal scaffold implant or offer the potential to bring us closer to our goal of redefining the life of the sci patient . recently we entered into exclusive license/assignment agreements with the university of california , san diego and james guest , m.d . , ph.d. covering delivery methods and devices for our preclinical bioengineered neural trails injection program . overall , we expect our research and development expenses to be substantial and to increase for the foreseeable future as we continue the development and clinical investigation of our current and future products . however , expenditures on research and development programs are subject to many uncertainties , including whether we develop our products with a partner or independently or acquire products . at this time , due to the uncertainties and inherent risks involved in our business , we can not estimate in a meaningful way the duration of , or the costs to complete , our research and development 46 programs or whether , when or to what extent we will generate revenues or cash inflows from the commercialization and sale of any of our products . while we are currently focused on advancing our neuro-spinal scaffold implant , our future research and development expenses will depend on the determinations we make as to the scientific and clinical prospects of each product candidate , as well as our ongoing assessment of the regulatory requirements and each product 's commercial potential . in addition , we may make acquisitions of businesses , technologies or intellectual property rights that we believe would be necessary , useful or complementary to our current business . any investment made in a potential acquisition could affect our results of operations and reduce our limited capital resources , and any issuance of equity securities in connection with a potential acquisition could be substantially dilutive to our stockholders . there can be no assurance that we will be able to successfully develop or acquire any product , or that we will be able to recover our development or acquisition costs , whether upon commercialization of a developed product or otherwise . we can not provide assurance that any of our programs under development or any acquired technologies or products will result in products that can be marketed or marketed profitably . if our development-stage programs or any acquired products or technologies do not result in commercially viable products , our results of operations could be materially adversely affected . we were incorporated on april 2 , 2003 , under the name of design source , inc. on october 26 , 2010 , we acquired the business of invivo therapeutics corporation , which was founded in 2005 , and continued the existing business operations of invivo therapeutics corporation as our wholly-owned subsidiary . critical accounting policies and estimates our consolidated financial statements , which appear in item 8 of this annual report on form 10-k , have been prepared in accordance with accounting principles generally accepted in the united states , which require that the management make certain assumptions and estimates and , in connection therewith , adopt certain accounting policies . our significant accounting policies are set forth in note 2 in the notes to consolidated financial statements . story_separator_special_tag we anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support our continued research and development and potential commercialization of our product candidates . additionally , if and when we believe a regulatory approval of the first product candidate appears likely , we anticipate an increase in payroll and related expenses as a result of our preparation for commercial operations , especially as it relates to the sales and marketing of our product candidates . recent accounting pronouncements in august 2014 , the fasb issued asu 2014-15 , presentation of financial statementsgoing concern , on disclosure of uncertainties about an entity 's ability to continue as a going concern . this guidance addresses management 's responsibility in evaluating whether there is substantial doubt about a company 's ability to continue as a going concern and to provide related footnote disclosures . the guidance is effective for fiscal years ending after december 15 , 2016 and for annual and interim periods thereafter , with early adoption permitted . the company is currently in the process of evaluating the impact of the adoption of this asu on the financial statements . in april 2015 , the financial accounting standards board ( the `` fasb `` ) issued accounting standards update ( `` asu `` ) 2015-03 , `` interestimputation of interest ( subtopic 835-30 ) : simplifying the presentation of debt issuance costs `` . asu 2015-03 is intended to simplify the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability , consistent with debt discounts . the recognition and measurement guidance for debt issuance costs are not affected by the amendments in this asu . this new guidance is effective for fiscal years beginning after december 15 , 2015 and interim periods within those fiscal years . early adoption is permitted . the company is currently in the process of evaluating the impact of the adoption of this asu on the financial statements . results of operations comparison of the years ended december 31 , 2015 and 2014 ( in thousands , except share and per share amounts ) research and development expenses research and development expenses decreased by $ 215 to $ 10,058 for the year ended december 31 , 2015 from $ 10,273 for the year ended december 31 , 2014. after adjusting for the insurance settlement related to business interruption , ( $ 621 for 2014 ) , the research and development expenses were $ 10,894 for 2014. the decrease in adjusted research and development expenses for 2015 of $ 836 is primarily attributable to lower consulting costs ( $ 612 ) , testing costs ( $ 375 ) , packaging and lab supplies ( $ 359 ) and lower compensation related expenses related to the 2014 reduction in force ( $ 564 ) and other various expenses ( $ 338 ) . these reductions were partly offset by higher clinical trial costs ( $ 729 ) , stock comp expense ( $ 147 ) and bonuses ( $ 536 ) . there was a higher bonus expense in 49 2015 compared to 2014 due to the fact that in 2014 the accrual which related to the 2013 bonus accrual was reversed because of the company 's decision not paying out the 2013 bonuses . general and administrative expenses general and administrative expenses increased by $ 4,774 to $ 12,340 for the year ended december 31 , 2015 from $ 7,566 for the year ended december 31 , 2014. the increase in general and administrative expenses for 2015 is primarily attributable to higher legal costs ( $ 1,361 ) , related to the sec and msd inquiries as well as the class action law suit , higher stock compensation expense ( $ 1,789 ) , higher investor relation expense and nasdaq listing fees ( $ 425 ) , an increase in board and audit fees ( $ 251 ) , consulting costs ( $ 387 ) and other various expenses ( $ 561 ) . interest income interest income increased by $ 55 to $ 60 for the year ended december 31 , 2015 from $ 5 for the year ended december 31 , 2014. the increase is related to interest earned on our short-term investments . interest expense interest expense increased by $ 36 to $ 172 for the year ended december 31 , 2015 from $ 136 for the year ended december 31 , 2014. the increase in interest expense is due the amortization of the premium or discount values of our short-term investments compared to the maturity value . derivatives gain ( loss ) derivative losses increased by $ 10,428 to a loss of $ 10,804 for the year ended december 31 , 2015 from a loss of $ 376 for the year ended december 31 , 2014. the 2015 loss of $ 10,804 reflects the increase in the fair value of derivative warrant liability which was due primarily to the increase in the fair value of the underlying common stock , the decreasing term to expiration of the warrants as well as the exercise of approximately 78 % of the outstanding warrants during 2015. comparison of the years ended december 31 , 2014 and 2013 ( in thousands , except share and per share amounts ) research and development expenses research and development expenses , as reported , decreased by $ 260 to $ 10,273 for the year ended december 31 , 2014 from $ 10,533 for the year ended december 31 , 2013. after adjusting for the insurance settlements related to business interruption , ( $ 621 for 2014 and $ 1,100 for 2013 ) , the research and development expenses were $ 10,894 and $ 11,633 for 2014 and 2013 respectively . the decrease in adjusted research
| liquidity and capital resources since inception , we have devoted substantially all of our efforts to business planning , research and development , recruiting management and technical staff , acquiring operating assets and raising capital . at december 31 , 2015 , our accumulated deficit was $ 133,569. at december 31 , 2015 , we had total assets of $ 21,792 and total liabilities of $ 4,863 , resulting in stockholders ' equity of $ 16,929 , and had a net loss of $ 33,314 for the year ended december 31 , 2015. we have not achieved profitability and may not be able to realize sufficient revenue to achieve or sustain profitability in the future . we do not expect to be profitable in the next several years , but rather expect to incur additional operating losses . we have limited liquidity and capital resources and must obtain significant additional capital resources in order to fund our operations and sustain our product development efforts , for acquisition of technologies and intellectual property rights , for preclinical and clinical testing of our anticipated products , pursuit of regulatory approvals , acquisition of capital equipment , laboratory and office facilities , establishment of production capabilities , for selling , general and administrative expenses and other working capital requirements . we also expect that we will need to raise additional capital through a combination of equity offerings , debt financings , other third party funding , marketing and distribution arrangements and other collaborations , strategic alliances and licensing arrangements since our inception , we have historically financed our operations primarily through the sale of equity-related securities .
| 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 inception , we have devoted substantially all of our efforts to business planning , research and development , recruiting management and technical staff , acquiring operating assets and raising capital . at december 31 , 2015 , our accumulated deficit was $ 133,569. at december 31 , 2015 , we had total assets of $ 21,792 and total liabilities of $ 4,863 , resulting in stockholders ' equity of $ 16,929 , and had a net loss of $ 33,314 for the year ended december 31 , 2015. we have not achieved profitability and may not be able to realize sufficient revenue to achieve or sustain profitability in the future . we do not expect to be profitable in the next several years , but rather expect to incur additional operating losses . we have limited liquidity and capital resources and must obtain significant additional capital resources in order to fund our operations and sustain our product development efforts , for acquisition of technologies and intellectual property rights , for preclinical and clinical testing of our anticipated products , pursuit of regulatory approvals , acquisition of capital equipment , laboratory and office facilities , establishment of production capabilities , for selling , general and administrative expenses and other working capital requirements . we also expect that we will need to raise additional capital through a combination of equity offerings , debt financings , other third party funding , marketing and distribution arrangements and other collaborations , strategic alliances and licensing arrangements since our inception , we have historically financed our operations primarily through the sale of equity-related securities .
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Suspicious Activity Report : we do not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this annual report on form 10-k. all share amounts give effect to the 1-for-4 reverse stock split of our outstanding shares of common stock that occurred on april 8 , 2015 . introduction this management 's discussion and analysis of our financial condition and results of operations are based on our financial statements , which management has prepared in accordance with u.s. generally accepted accounting principles . the preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported revenues and expenses during the reporting periods . on an ongoing basis , we evaluate such estimates and judgments , including those described in greater detail below . we base estimates on historical experience and on various other factors that management believes are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . business overview we are a research and clinical-stage biomaterials and biotechnology company with a focus on treatment of spinal cord injuries ( sci ) . our mission is to redefine the life of the sci patient , and we are developing treatment options intended to provide meaningful improvement in patient outcomes following sci . our approach to treating acute scis is based on our investigational neuro spinal scaffold implant , an investigational bioresorbable polymer scaffold that is designed for implantation at the site of injury within a spinal cord contusion and is intended to treat acute spinal cord injury . we believe the neuro spinal scaffold implant is the only sci therapy in development focused solely on treating acute sci directly at the epicenter of the injury , and incorporates intellectual property licensed under an exclusive , world wide license from boston children 's hospital ( `` bch `` ) and the massachusetts institute of technology ( `` mit `` ) . we are continually evaluating other technologies and therapeutics that may be complementary to our development of the neuro-spinal scaffold implant or offer the potential to bring us closer to our goal of redefining the life of the sci patient . recently we entered into exclusive license/assignment agreements with the university of california , san diego and james guest , m.d . , ph.d. covering delivery methods and devices for our preclinical bioengineered neural trails injection program . overall , we expect our research and development expenses to be substantial and to increase for the foreseeable future as we continue the development and clinical investigation of our current and future products . however , expenditures on research and development programs are subject to many uncertainties , including whether we develop our products with a partner or independently or acquire products . at this time , due to the uncertainties and inherent risks involved in our business , we can not estimate in a meaningful way the duration of , or the costs to complete , our research and development 46 programs or whether , when or to what extent we will generate revenues or cash inflows from the commercialization and sale of any of our products . while we are currently focused on advancing our neuro-spinal scaffold implant , our future research and development expenses will depend on the determinations we make as to the scientific and clinical prospects of each product candidate , as well as our ongoing assessment of the regulatory requirements and each product 's commercial potential . in addition , we may make acquisitions of businesses , technologies or intellectual property rights that we believe would be necessary , useful or complementary to our current business . any investment made in a potential acquisition could affect our results of operations and reduce our limited capital resources , and any issuance of equity securities in connection with a potential acquisition could be substantially dilutive to our stockholders . there can be no assurance that we will be able to successfully develop or acquire any product , or that we will be able to recover our development or acquisition costs , whether upon commercialization of a developed product or otherwise . we can not provide assurance that any of our programs under development or any acquired technologies or products will result in products that can be marketed or marketed profitably . if our development-stage programs or any acquired products or technologies do not result in commercially viable products , our results of operations could be materially adversely affected . we were incorporated on april 2 , 2003 , under the name of design source , inc. on october 26 , 2010 , we acquired the business of invivo therapeutics corporation , which was founded in 2005 , and continued the existing business operations of invivo therapeutics corporation as our wholly-owned subsidiary . critical accounting policies and estimates our consolidated financial statements , which appear in item 8 of this annual report on form 10-k , have been prepared in accordance with accounting principles generally accepted in the united states , which require that the management make certain assumptions and estimates and , in connection therewith , adopt certain accounting policies . our significant accounting policies are set forth in note 2 in the notes to consolidated financial statements . story_separator_special_tag we anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support our continued research and development and potential commercialization of our product candidates . additionally , if and when we believe a regulatory approval of the first product candidate appears likely , we anticipate an increase in payroll and related expenses as a result of our preparation for commercial operations , especially as it relates to the sales and marketing of our product candidates . recent accounting pronouncements in august 2014 , the fasb issued asu 2014-15 , presentation of financial statementsgoing concern , on disclosure of uncertainties about an entity 's ability to continue as a going concern . this guidance addresses management 's responsibility in evaluating whether there is substantial doubt about a company 's ability to continue as a going concern and to provide related footnote disclosures . the guidance is effective for fiscal years ending after december 15 , 2016 and for annual and interim periods thereafter , with early adoption permitted . the company is currently in the process of evaluating the impact of the adoption of this asu on the financial statements . in april 2015 , the financial accounting standards board ( the `` fasb `` ) issued accounting standards update ( `` asu `` ) 2015-03 , `` interestimputation of interest ( subtopic 835-30 ) : simplifying the presentation of debt issuance costs `` . asu 2015-03 is intended to simplify the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability , consistent with debt discounts . the recognition and measurement guidance for debt issuance costs are not affected by the amendments in this asu . this new guidance is effective for fiscal years beginning after december 15 , 2015 and interim periods within those fiscal years . early adoption is permitted . the company is currently in the process of evaluating the impact of the adoption of this asu on the financial statements . results of operations comparison of the years ended december 31 , 2015 and 2014 ( in thousands , except share and per share amounts ) research and development expenses research and development expenses decreased by $ 215 to $ 10,058 for the year ended december 31 , 2015 from $ 10,273 for the year ended december 31 , 2014. after adjusting for the insurance settlement related to business interruption , ( $ 621 for 2014 ) , the research and development expenses were $ 10,894 for 2014. the decrease in adjusted research and development expenses for 2015 of $ 836 is primarily attributable to lower consulting costs ( $ 612 ) , testing costs ( $ 375 ) , packaging and lab supplies ( $ 359 ) and lower compensation related expenses related to the 2014 reduction in force ( $ 564 ) and other various expenses ( $ 338 ) . these reductions were partly offset by higher clinical trial costs ( $ 729 ) , stock comp expense ( $ 147 ) and bonuses ( $ 536 ) . there was a higher bonus expense in 49 2015 compared to 2014 due to the fact that in 2014 the accrual which related to the 2013 bonus accrual was reversed because of the company 's decision not paying out the 2013 bonuses . general and administrative expenses general and administrative expenses increased by $ 4,774 to $ 12,340 for the year ended december 31 , 2015 from $ 7,566 for the year ended december 31 , 2014. the increase in general and administrative expenses for 2015 is primarily attributable to higher legal costs ( $ 1,361 ) , related to the sec and msd inquiries as well as the class action law suit , higher stock compensation expense ( $ 1,789 ) , higher investor relation expense and nasdaq listing fees ( $ 425 ) , an increase in board and audit fees ( $ 251 ) , consulting costs ( $ 387 ) and other various expenses ( $ 561 ) . interest income interest income increased by $ 55 to $ 60 for the year ended december 31 , 2015 from $ 5 for the year ended december 31 , 2014. the increase is related to interest earned on our short-term investments . interest expense interest expense increased by $ 36 to $ 172 for the year ended december 31 , 2015 from $ 136 for the year ended december 31 , 2014. the increase in interest expense is due the amortization of the premium or discount values of our short-term investments compared to the maturity value . derivatives gain ( loss ) derivative losses increased by $ 10,428 to a loss of $ 10,804 for the year ended december 31 , 2015 from a loss of $ 376 for the year ended december 31 , 2014. the 2015 loss of $ 10,804 reflects the increase in the fair value of derivative warrant liability which was due primarily to the increase in the fair value of the underlying common stock , the decreasing term to expiration of the warrants as well as the exercise of approximately 78 % of the outstanding warrants during 2015. comparison of the years ended december 31 , 2014 and 2013 ( in thousands , except share and per share amounts ) research and development expenses research and development expenses , as reported , decreased by $ 260 to $ 10,273 for the year ended december 31 , 2014 from $ 10,533 for the year ended december 31 , 2013. after adjusting for the insurance settlements related to business interruption , ( $ 621 for 2014 and $ 1,100 for 2013 ) , the research and development expenses were $ 10,894 and $ 11,633 for 2014 and 2013 respectively . the decrease in adjusted research
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2,629 | our fiscal 2018 pre-tax margin ( the ratio of pre-tax income to net sales ) was 10.8 % , a 0.4 percentage point decrease compared to 11.2 % in fiscal 2017. the impairment charge relating to stp and the cost of incremental investments we made in connection with the 2017 tax act collectively reduced pre-tax margin by 0.6 percentage points while the 53 rd week in the fiscal 2018 calendar lifted pretax margin by approximately 0.1 percentage point . fiscal 2017 pre-tax margin was reduced by 0.3 percentage points due to the two third quarter charges referred to above . our cost of sales , including buying and occupancy costs , ratio for fiscal 2018 was 71.1 % , a 0.1 percentage point increase compared to 71.0 % in fiscal 2017. this increase was driven by higher supply chain costs partially offset by the favorable impact of mark-to-market of inventory derivatives and a benefit from the 53 rd week in the fiscal 2018 calendar . merchandise margins were flat compared to fiscal 2017 . our selling , general and administrative ( sg & a ) expense ratio for fiscal 2018 was 17.8 % , a 0.4 percentage point increase from 17.4 % in fiscal 2017. the incremental investments described below related to the 2017 tax act increased the fiscal 2018 expense ratio by 0.3 percentage points . the remaining increase is primarily due to higher store payroll costs due to wage increases . our consolidated average per store inventories , including inventory on hand at our distribution centers ( which excludes inventory in transit ) and excluding our e-commerce businesses , increased 6 % on a reported basis and increased 4 % on a constant currency basis at the end of fiscal 2018 as compared to the prior year . during fiscal 2018 , we repurchased 22.3 million shares of our common stock for $ 1.7 billion , on a trade date basis . earnings per share reflect the benefit of the stock repurchase program . with $ 1.1 billion remaining under previously announced stock repurchase programs , our board of directors approved our 19 th stock repurchase program that authorizes the repurchase of up to an additional $ 3.0 billion . 27 the following is a discussion of our consolidated operating results , followed by a discussion of our segment operating results . tax cuts and jobs act of 2017 : on december 22 , 2017 , the 2017 tax act was enacted into law which , among other things , includes a one-time mandatory transition tax on accumulated foreign undistributed earnings and a reduction of the u.s. corporate income tax rate to 21 percent , effective january 1 , 2018. the change in the u.s. income tax rate also requires us to revalue our deferred tax assets and liabilities . although we are still evaluating the impact of the 2017 tax act on tjx , the company has estimated the impact of the 2017 tax act which resulted in a reduction of the full year tax provision . the company has reinvested a portion of these tax benefits by approving a discretionary bonus to eligible non-bonus plan associates globally , providing an incremental contribution to the company 's defined contribution retirement plans for eligible associates in the u.s. and internationally , as well as making contributions to the company 's charitable foundations , collectively referred to as incremental investments related to the 2017 tax act. the tax benefits recognized due to the 2017 tax act , offset by the after-tax impact of incremental investments we made related to the 2017 tax act , resulted in a net benefit to net income of $ 0.17 per share for the fiscal 2018 fourth quarter and full year . net sales : consolidated net sales for fiscal 2018 totaled $ 35.9 billion , an 8 % increase over $ 33.2 billion in fiscal 2017. the increase reflected a 4 % increase from new stores , a 2 % increase from comp sales , and a 2 % increase from the impact of the 53 rd week in the fiscal 2018 calendar . foreign currency had a neutral impact in fiscal 2018. net sales from our e-commerce businesses amounted to approximately 2 % of total sales and had an immaterial impact on fiscal 2018 sales growth . consolidated net sales for fiscal 2017 totaled $ 33.2 billion , a 7 % increase over $ 30.9 billion in fiscal 2016. the increase reflected a 5 % increase from comp sales and a 4 % increase from new stores , offset by a 2 % negative impact from foreign currency exchange rates . comparable store sales : we define comparable store sales ( comp sales ) , formerly referred to as same-store sales , to be sales of stores that have been in operation for all or a portion of two consecutive fiscal years , or in other words , stores that are starting their third fiscal year of operation . we calculate comp sales on a 52-week basis by comparing the current and prior year weekly periods that are most closely aligned . relocated stores and stores that have changed in size are generally classified in the same way as the original store , and we believe that the impact of these stores on the consolidated comp percentage is immaterial . we define customer traffic to be the number of transactions in stores included in the comp sales calculation and average ticket to be the average retail price of the units sold . we define average transaction or average basket to be the average dollar value of transactions included in the comp sales calculation . story_separator_special_tag 32 homegoods replace_table_token_13_th homegoods ' net sales increased 16 % in fiscal 2018 , on top of a 12 % increase in fiscal 2017. the increase in fiscal 2018 reflected a 10 % increase from new store sales , a 4 % increase from comp sales and a 2 % increase due to the 53 rd week . the sales increase of 12 % in fiscal 2017 reflected a 6 % increase from new store sales and a 6 % increase from comp sales . comp sales growth at homegoods for fiscal 2018 was due to a 4 % increase in customer traffic on top of a 5 % increase in customer traffic in fiscal 2017. comp sales growth in fiscal 2018 and fiscal 2017 was also due to an increase in units sold , which was partially offset by a decrease in the average ticket . segment profit margin decreased to 13.2 % for fiscal 2018 compared to 13.9 % for fiscal 2017. the decrease in segment margin for fiscal 2018 includes a decline in merchandise margin of 0.5 percentage points , primarily as a result of increased freight costs . in addition , higher distribution center costs primarily due to opening a new distribution center , higher store payroll costs , primarily due to wage increases , as well as costs in connection with opening more stores as compared to fiscal 2017 , including our first homesense stores , collectively reduced segment margin by approximately 0.8 percentage points . these costs were partially offset by expense leverage on comp sales growth as well as the benefit of the 53 rd week which lifted segment margin by approximately 0.2 percentage points . segment profit margin for fiscal 2017 was 13.9 % compared to 14.0 % for fiscal 2016. segment margin for fiscal 2017 was favorably impacted by an increase in merchandise margin and expense leverage , primarily occupancy costs , on strong comp sales growth . these increases in segment margin were more than offset by higher payroll costs related to wage increases , an increase in distribution costs , which includes the opening of a new distribution center in fiscal 2017 , and an increase in credit card chargeback costs . in fiscal 2019 , we plan an increase of approximately 85 homegoods stores and 15 homesense stores , which would increase selling square footage by approximately 18 % . 33 foreign segments : tjx canada replace_table_token_14_th net sales for tjx canada increased 15 % in fiscal 2018 , on top of an 11 % increase in fiscal 2017. the increase in sales for fiscal 2018 reflected comp sales growth of 5 % , a 5 % increase from new stores , 3 % from the positive impact of foreign currency translation and a 2 % impact of the 53 rd week . the increase in sales for fiscal 2017 reflected comp sales growth of 8 % and a 5 % increase from new stores offset by 2 % from the negative impact of foreign currency translation . the comp sales increases in fiscal 2018 and fiscal 2017 were primarily due to an increase in customer traffic . segment profit margin increased 1.6 percentage points to 14.6 % in fiscal 2018 compared to 13.0 % in fiscal 2017. the increase in segment margin was primarily due to the combination of an increase in merchandise margin of 0.6 percentage points , which benefitted from the year-over-year increase in the canadian dollar , and expense leverage on the strong comp sales . the increase in the segment margin also included a favorable impact of 0.3 percentage points due to foreign currency , primarily the mark-to-market impact of the inventory derivatives . the fiscal 2018 segment margin also benefitted from the 53 rd week , which lifted the segment margin by approximately 0.1 percentage point . segment profit margin decreased 0.1 percentage point to 13.0 % in fiscal 2017. the decline in segment margin was driven by a decrease in merchandise margin and higher supply chain and distribution center costs , which included the opening of a new distribution center . the decline in merchandise margin was primarily due to transactional foreign exchange as the year-over-year changes in currency exchange rates increased tjx canada 's cost of merchandise purchased in u.s. dollars . these declines in segment margin were largely offset by expense leverage , primarily buying and occupancy costs , on the comp sales growth , as well as the benefit of transactional foreign currency activity resulting in foreign currency gains in fiscal 2017 as compared to foreign currency losses in fiscal 2016. these foreign currency gains and losses result from the timing and settlement of payables denominated in currencies other than the canadian dollar . in fiscal 2019 , we plan an increase of approximately 30 stores in canada , which would increase selling square footage by approximately 6 % . 34 tjx international replace_table_token_15_th net sales for tjx international increased 11 % in fiscal 2018 on top of a 3 % increase in fiscal 2017. the increase in sales for fiscal 2018 reflected a 7 % increase from new stores , comp sales growth of 2 % , and a 2 % benefit from the 53 rd week . foreign currency translation had a neutral impact on fiscal 2018 sales growth . the increase in comp sales for fiscal 2018 was primarily driven by an increase in customer traffic . e-commerce sales represent less than 3 % of tjx international 's net sales . the increase in fiscal 2017 reflected a 12 % increase from new store sales ( which includes a full fiscal year of t.k . maxx in australia ) and a 2 % increase from comp sales , offset by the unfavorable impact from currency translation of 11 % . the increase in comp sales for fiscal 2017 was primarily driven by an increase in customer traffic . segment profit margin decreased to 5.1 %
| liquidity and capital resources our liquidity requirements have traditionally been funded through cash generated from operations , supplemented , as needed , by short-term bank borrowings and the issuance of commercial paper . as of february 3 , 2018 , there were no short-term bank borrowings or commercial paper outstanding . we believe our existing cash and cash equivalents , internally generated funds and our credit facilities , described in note j long term debt and credit lines of notes to consolidated financial statements , are more than adequate to meet our operating needs over the next fiscal year . as of february 3 , 2018 , tjx held $ 2.8 billion in cash and $ 0.5 billion in short-term investments . approximately $ 1.8 billion of our cash was held by our foreign subsidiaries with $ 398.6 million held in countries where we provisionally intend to indefinitely reinvest any undistributed earnings . tjx has provided for all applicable state and foreign withholding taxes on all undistributed earnings of its foreign subsidiaries in canada , puerto rico , italy , india , hong kong and vietnam through february 3 , 2018. if we repatriate cash from such subsidiaries , we should not incur additional tax expense and our cash would be reduced by the amount of withholding taxes paid . we expect to repatriate more than $ 1 billion in cash from our subsidiary in canada during fiscal 2019. additionally , as part of the 2017 tax act we recorded a transition tax related to the undistributed earnings of our foreign subsidiaries of $ 193 million which is payable over 8 years . operating activities : net cash provided by operating activities was $ 3.0 billion in fiscal 2018 , $ 3.6 billion in fiscal 2017 and $ 3.0 billion in fiscal 2016. the cash generated from operating activities in each of these fiscal years was largely due to operating earnings .
| 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 liquidity requirements have traditionally been funded through cash generated from operations , supplemented , as needed , by short-term bank borrowings and the issuance of commercial paper . as of february 3 , 2018 , there were no short-term bank borrowings or commercial paper outstanding . we believe our existing cash and cash equivalents , internally generated funds and our credit facilities , described in note j long term debt and credit lines of notes to consolidated financial statements , are more than adequate to meet our operating needs over the next fiscal year . as of february 3 , 2018 , tjx held $ 2.8 billion in cash and $ 0.5 billion in short-term investments . approximately $ 1.8 billion of our cash was held by our foreign subsidiaries with $ 398.6 million held in countries where we provisionally intend to indefinitely reinvest any undistributed earnings . tjx has provided for all applicable state and foreign withholding taxes on all undistributed earnings of its foreign subsidiaries in canada , puerto rico , italy , india , hong kong and vietnam through february 3 , 2018. if we repatriate cash from such subsidiaries , we should not incur additional tax expense and our cash would be reduced by the amount of withholding taxes paid . we expect to repatriate more than $ 1 billion in cash from our subsidiary in canada during fiscal 2019. additionally , as part of the 2017 tax act we recorded a transition tax related to the undistributed earnings of our foreign subsidiaries of $ 193 million which is payable over 8 years . operating activities : net cash provided by operating activities was $ 3.0 billion in fiscal 2018 , $ 3.6 billion in fiscal 2017 and $ 3.0 billion in fiscal 2016. the cash generated from operating activities in each of these fiscal years was largely due to operating earnings .
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Suspicious Activity Report : our fiscal 2018 pre-tax margin ( the ratio of pre-tax income to net sales ) was 10.8 % , a 0.4 percentage point decrease compared to 11.2 % in fiscal 2017. the impairment charge relating to stp and the cost of incremental investments we made in connection with the 2017 tax act collectively reduced pre-tax margin by 0.6 percentage points while the 53 rd week in the fiscal 2018 calendar lifted pretax margin by approximately 0.1 percentage point . fiscal 2017 pre-tax margin was reduced by 0.3 percentage points due to the two third quarter charges referred to above . our cost of sales , including buying and occupancy costs , ratio for fiscal 2018 was 71.1 % , a 0.1 percentage point increase compared to 71.0 % in fiscal 2017. this increase was driven by higher supply chain costs partially offset by the favorable impact of mark-to-market of inventory derivatives and a benefit from the 53 rd week in the fiscal 2018 calendar . merchandise margins were flat compared to fiscal 2017 . our selling , general and administrative ( sg & a ) expense ratio for fiscal 2018 was 17.8 % , a 0.4 percentage point increase from 17.4 % in fiscal 2017. the incremental investments described below related to the 2017 tax act increased the fiscal 2018 expense ratio by 0.3 percentage points . the remaining increase is primarily due to higher store payroll costs due to wage increases . our consolidated average per store inventories , including inventory on hand at our distribution centers ( which excludes inventory in transit ) and excluding our e-commerce businesses , increased 6 % on a reported basis and increased 4 % on a constant currency basis at the end of fiscal 2018 as compared to the prior year . during fiscal 2018 , we repurchased 22.3 million shares of our common stock for $ 1.7 billion , on a trade date basis . earnings per share reflect the benefit of the stock repurchase program . with $ 1.1 billion remaining under previously announced stock repurchase programs , our board of directors approved our 19 th stock repurchase program that authorizes the repurchase of up to an additional $ 3.0 billion . 27 the following is a discussion of our consolidated operating results , followed by a discussion of our segment operating results . tax cuts and jobs act of 2017 : on december 22 , 2017 , the 2017 tax act was enacted into law which , among other things , includes a one-time mandatory transition tax on accumulated foreign undistributed earnings and a reduction of the u.s. corporate income tax rate to 21 percent , effective january 1 , 2018. the change in the u.s. income tax rate also requires us to revalue our deferred tax assets and liabilities . although we are still evaluating the impact of the 2017 tax act on tjx , the company has estimated the impact of the 2017 tax act which resulted in a reduction of the full year tax provision . the company has reinvested a portion of these tax benefits by approving a discretionary bonus to eligible non-bonus plan associates globally , providing an incremental contribution to the company 's defined contribution retirement plans for eligible associates in the u.s. and internationally , as well as making contributions to the company 's charitable foundations , collectively referred to as incremental investments related to the 2017 tax act. the tax benefits recognized due to the 2017 tax act , offset by the after-tax impact of incremental investments we made related to the 2017 tax act , resulted in a net benefit to net income of $ 0.17 per share for the fiscal 2018 fourth quarter and full year . net sales : consolidated net sales for fiscal 2018 totaled $ 35.9 billion , an 8 % increase over $ 33.2 billion in fiscal 2017. the increase reflected a 4 % increase from new stores , a 2 % increase from comp sales , and a 2 % increase from the impact of the 53 rd week in the fiscal 2018 calendar . foreign currency had a neutral impact in fiscal 2018. net sales from our e-commerce businesses amounted to approximately 2 % of total sales and had an immaterial impact on fiscal 2018 sales growth . consolidated net sales for fiscal 2017 totaled $ 33.2 billion , a 7 % increase over $ 30.9 billion in fiscal 2016. the increase reflected a 5 % increase from comp sales and a 4 % increase from new stores , offset by a 2 % negative impact from foreign currency exchange rates . comparable store sales : we define comparable store sales ( comp sales ) , formerly referred to as same-store sales , to be sales of stores that have been in operation for all or a portion of two consecutive fiscal years , or in other words , stores that are starting their third fiscal year of operation . we calculate comp sales on a 52-week basis by comparing the current and prior year weekly periods that are most closely aligned . relocated stores and stores that have changed in size are generally classified in the same way as the original store , and we believe that the impact of these stores on the consolidated comp percentage is immaterial . we define customer traffic to be the number of transactions in stores included in the comp sales calculation and average ticket to be the average retail price of the units sold . we define average transaction or average basket to be the average dollar value of transactions included in the comp sales calculation . story_separator_special_tag 32 homegoods replace_table_token_13_th homegoods ' net sales increased 16 % in fiscal 2018 , on top of a 12 % increase in fiscal 2017. the increase in fiscal 2018 reflected a 10 % increase from new store sales , a 4 % increase from comp sales and a 2 % increase due to the 53 rd week . the sales increase of 12 % in fiscal 2017 reflected a 6 % increase from new store sales and a 6 % increase from comp sales . comp sales growth at homegoods for fiscal 2018 was due to a 4 % increase in customer traffic on top of a 5 % increase in customer traffic in fiscal 2017. comp sales growth in fiscal 2018 and fiscal 2017 was also due to an increase in units sold , which was partially offset by a decrease in the average ticket . segment profit margin decreased to 13.2 % for fiscal 2018 compared to 13.9 % for fiscal 2017. the decrease in segment margin for fiscal 2018 includes a decline in merchandise margin of 0.5 percentage points , primarily as a result of increased freight costs . in addition , higher distribution center costs primarily due to opening a new distribution center , higher store payroll costs , primarily due to wage increases , as well as costs in connection with opening more stores as compared to fiscal 2017 , including our first homesense stores , collectively reduced segment margin by approximately 0.8 percentage points . these costs were partially offset by expense leverage on comp sales growth as well as the benefit of the 53 rd week which lifted segment margin by approximately 0.2 percentage points . segment profit margin for fiscal 2017 was 13.9 % compared to 14.0 % for fiscal 2016. segment margin for fiscal 2017 was favorably impacted by an increase in merchandise margin and expense leverage , primarily occupancy costs , on strong comp sales growth . these increases in segment margin were more than offset by higher payroll costs related to wage increases , an increase in distribution costs , which includes the opening of a new distribution center in fiscal 2017 , and an increase in credit card chargeback costs . in fiscal 2019 , we plan an increase of approximately 85 homegoods stores and 15 homesense stores , which would increase selling square footage by approximately 18 % . 33 foreign segments : tjx canada replace_table_token_14_th net sales for tjx canada increased 15 % in fiscal 2018 , on top of an 11 % increase in fiscal 2017. the increase in sales for fiscal 2018 reflected comp sales growth of 5 % , a 5 % increase from new stores , 3 % from the positive impact of foreign currency translation and a 2 % impact of the 53 rd week . the increase in sales for fiscal 2017 reflected comp sales growth of 8 % and a 5 % increase from new stores offset by 2 % from the negative impact of foreign currency translation . the comp sales increases in fiscal 2018 and fiscal 2017 were primarily due to an increase in customer traffic . segment profit margin increased 1.6 percentage points to 14.6 % in fiscal 2018 compared to 13.0 % in fiscal 2017. the increase in segment margin was primarily due to the combination of an increase in merchandise margin of 0.6 percentage points , which benefitted from the year-over-year increase in the canadian dollar , and expense leverage on the strong comp sales . the increase in the segment margin also included a favorable impact of 0.3 percentage points due to foreign currency , primarily the mark-to-market impact of the inventory derivatives . the fiscal 2018 segment margin also benefitted from the 53 rd week , which lifted the segment margin by approximately 0.1 percentage point . segment profit margin decreased 0.1 percentage point to 13.0 % in fiscal 2017. the decline in segment margin was driven by a decrease in merchandise margin and higher supply chain and distribution center costs , which included the opening of a new distribution center . the decline in merchandise margin was primarily due to transactional foreign exchange as the year-over-year changes in currency exchange rates increased tjx canada 's cost of merchandise purchased in u.s. dollars . these declines in segment margin were largely offset by expense leverage , primarily buying and occupancy costs , on the comp sales growth , as well as the benefit of transactional foreign currency activity resulting in foreign currency gains in fiscal 2017 as compared to foreign currency losses in fiscal 2016. these foreign currency gains and losses result from the timing and settlement of payables denominated in currencies other than the canadian dollar . in fiscal 2019 , we plan an increase of approximately 30 stores in canada , which would increase selling square footage by approximately 6 % . 34 tjx international replace_table_token_15_th net sales for tjx international increased 11 % in fiscal 2018 on top of a 3 % increase in fiscal 2017. the increase in sales for fiscal 2018 reflected a 7 % increase from new stores , comp sales growth of 2 % , and a 2 % benefit from the 53 rd week . foreign currency translation had a neutral impact on fiscal 2018 sales growth . the increase in comp sales for fiscal 2018 was primarily driven by an increase in customer traffic . e-commerce sales represent less than 3 % of tjx international 's net sales . the increase in fiscal 2017 reflected a 12 % increase from new store sales ( which includes a full fiscal year of t.k . maxx in australia ) and a 2 % increase from comp sales , offset by the unfavorable impact from currency translation of 11 % . the increase in comp sales for fiscal 2017 was primarily driven by an increase in customer traffic . segment profit margin decreased to 5.1 %
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2,630 | the united kingdom plan is closed to future service accrual , but has a large number of deferred and current pensioners . movements in the underlying plan asset value and projected benefit obligation ( pbo ) are dependent on actual return on investments as well as our assumptions in respect of the discount rate , annual member mortality rates , future return on assets and future inflation . a change in any one of these assumptions could impact the plan asset value , pbo and pension charge recognized in the income statement . such changes could adversely impact our results of operations and financial position . for example , a 0.25 % change in the discount rate assumption would change the pbo by approximately $ 26 million while the net pension credit for 2017 would change by approximately $ 0.2 million . a 0.25 % change in the level of price inflation assumption would change the pbo by approximately $ 19 million and the net pension credit for 2017 would change by approximately $ 0.2 million . further information is provided in note 9 of the notes to the consolidated financial statements . 26 deferred tax and uncertain income tax positions as at december 31 , 2016 , no deferred taxes have been provided for on the unremitted earnings of our overseas subsidiaries as any tax basis differences relating to investments in these overseas subsidiaries are considered to be permanent in duration . we have no current intention to repatriate past or future earnings of our overseas subsidiaries and consider that these earnings have been reinvested overseas . if circumstances were to change that would cause these earnings to be repatriated an additional u.s. tax liability could be incurred , and we continue to monitor this position . the calculation of our tax liabilities involves evaluating uncertainties in the application of complex tax regulations . we recognize liabilities for anticipated tax audit issues based on our estimate of whether , and the extent to which , additional taxes will be required . if we ultimately determine that payment of these amounts is unnecessary , we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary . we also recognize tax benefits to the extent that it is more likely than not that our positions will be sustained , based on technical merits , when challenged by the taxing authorities . to the extent that we prevail in matters for which liabilities have been established , or are required to pay amounts in excess of our liabilities , our effective tax rate in a given period may be materially affected . an unfavorable tax settlement may require cash payments and result in an increase in our effective tax rate in the year of resolution . a favorable tax settlement may be recognized as a reduction in our effective tax rate in the year of resolution . we report interest and penalties related to uncertain income tax positions as income taxes . for additional information regarding uncertain income tax positions , see note 10 of the notes to the consolidated financial statements . goodwill the company 's reporting units , the level at which goodwill is assessed for potential impairment , are consistent with the reportable segments . the components in each segment ( including products , markets and competitors ) have similar economic characteristics and the segments , therefore , reflect the lowest level at which operations and cash flows can be sufficiently distinguished , operationally and for financial reporting purposes , from the rest of the company . initially the company performs a qualitative assessment to determine whether it is more likely than not that the fair value of a segment is less than the carrying amount prior to performing the two-step goodwill impairment test . if a two-step test is required we assess the fair value based on projected post-tax cash flows discounted at the company 's weighted average cost of capital . at december 31 , 2016 we had $ 374.8 million of goodwill relating to our fuel specialties , performance chemicals and oilfield services segments . our impairment assessment concluded that there had been no impairment of goodwill in respect of those reporting segments . 27 while we believe our assumptions for impairment assessments are reasonable , they are subjective judgments , and it is possible that variations in any of the assumptions may result in materially different calculations of any potential impairment charges . property , plant and equipment and other intangible assets ( net of depreciation and amortization , respectively ) as at december 31 , 2016 we had $ 157.4 million of property , plant and equipment and $ 144.4 million of other intangible assets ( net of depreciation and amortization , respectively ) , that are discussed in notes 6 and 8 of the notes to the consolidated financial statements , respectively . these long-lived assets relate to all of our reporting segments and are being amortized or depreciated straight-line over periods of up to 17 years in respect of the other intangible assets and up to 25 years in respect of the property , plant and equipment . we continually assess the markets and products related to these long-lived assets , as well as their specific carrying values , and have concluded that these carrying values , and amortization and depreciation periods , remain appropriate . we also test these long-lived assets for any potential impairment when events occur or circumstances change which suggests that impairment may have occurred . story_separator_special_tag octane additives net sales : the year on year increase of $ 4.3 million was primarily due to the timing of demand with our one remaining refinery customer . gross margin : the year on year decrease of 3.9 percentage points is primarily driven by the timing and efficiency of production for our one remaining refinery customer . operating expenses : the year on year decrease of $ 2.2 million was due to the continuing efficient management of the cost base . other income statement captions pension credit/ ( charge ) : is non-cash , and was a $ 0.2 million net credit in 2015 compared to $ 3.3 million net charge in 2014 , primarily driven by lower interest cost on the projected benefit obligation . corporate costs : the year on year decrease of $ 0.4 million , related to $ 1.1 million lower legal , professional and other expenses in 2015 driven by the recovery of legal fees ; $ 1.8 million non-recurring professional costs in 2014 related to the acquisition of our independence business ; $ 1.4 million lower insurance claims due to non-recurring charges in 2014 relating to self-insured incidents ; which were partly offset by $ 3.1 million higher personnel-related compensation , including higher accruals for share-based compensation ; and the net $ 0.8 million release of a severance provision in 2014 . 37 adjustment to fair value of contingent consideration : the credit of $ 40.7 million relates to an adjustment of the carrying value of our liability for contingent consideration related to our independence acquisition of $ 51.4 million , partly offset by the accretion charge of $ 10.7 million . the carrying value of the contingent consideration is based on the estimated ebitda and free cash flow generated by the independence business through the period to october 31 , 2016. the contingent consideration payable is based on management 's latest forecasts of the business and on the current trading performance . the results of the business are particularly sensitive to the level of exploration , development and production activity of our customers in the oil and gas sector , this is directly affected by trends in oil prices . profit on disposal of subsidiary : the disposal of our aroma chemicals business generated a profit on disposal of $ 1.6 million in the third quarter . other net income/ ( expense ) : other net expense of $ 0.0 million primarily related to $ 1.4 million of losses on translation of net assets denominated in non-functional currencies in our european businesses , offset by gains of $ 1.4 million on foreign currency forward exchange contracts . in 2014 , other net income of $ 1.8 million primarily related to net gains of $ 3.4 million on foreign currency forward exchange contracts , partly offset by $ 1.6 million of losses on translation of net assets denominated in non-functional currencies in our european businesses . interest expense , net : was $ 4.0 million in 2015 and $ 3.4 million in 2014 , being primarily driven by higher borrowing in 2015 resulting from the funding required for the acquisition of our independence business in the fourth quarter of 2014. income taxes : the effective tax rate was 21.5 % and 24.2 % in 2015 and 2014 , respectively . the effective tax rate , as adjusted for changes to the fair value of contingent consideration , adjustments to income tax positions and the tax impact of other discrete items , was 20.1 % in 2015 compared with 24.9 % in 2014. the company believes that this adjusted effective tax rate , a non-gaap financial measure , provides useful information to investors and may assist them in evaluating the company 's underlying performance and identifying operating trends . in addition , management uses this non-gaap financial measure internally to evaluate the performance of the company 's operations and for planning and forecasting in subsequent periods . 38 replace_table_token_18_th in addition to those mentioned above , the following factors had a significant impact on the company 's effective tax rate as compared to the u.s. federal income tax rate of 35 % : replace_table_token_19_th the impact on the effective tax rate from profits earned in foreign jurisdictions with lower tax rates varies as the geographical mix of the company 's profits changes year on year . in 2015 , the company 's income tax expense benefited to a lesser degree from a proportion of its overall profits arising in switzerland than in 2014. this resulted in a $ 7.5 million benefit in switzerland ( 2014 $ 9.4 million ) . in addition , there was a $ 6.8 million benefit in relation to the united kingdom ( 2014 $ 7.9 million ) and a $ 0.3 million benefit in relation to germany ( 2014 $ 0.4 million ) , offset by a $ 0.1 million reduction in other jurisdictions . foreign income inclusions arise each year from certain types of income earned overseas being taxable under u.s. tax regulations . these types of income include subpart f income , principally from foreign based company sales in the united kingdom , including the associated section 78 tax gross up , and also from the income earned by certain overseas subsidiaries taxable under the u.s. tax regime . in 2015 , subpart f income and the associated section 78 gross up resulted in u.s. taxation of $ 4.7 million ( 2014 $ 5.0 million ) . certain overseas subsidiaries taxable under the u.s. tax regime incurred losses of $ 0.2 million ( 2014 $ 2.1 million income ) . foreign tax credits can fully or partially offset these incremental u.s. taxes from foreign income inclusions . the utilization of foreign tax credits varies year on year as this is dependent on a number of variable factors which are difficult to predict and may in certain 39 years prevent any offset of
| liquidity and financial condition working capital the company believes that adjusted working capital , a non-gaap financial measure , provides useful information to investors in evaluating the company 's underlying performance and identifying operating trends . management uses this non-gaap financial measure internally to allocate resources and evaluate the performance of the company 's operations . items excluded from the adjusted working capital calculation are listed in the table below and represent factors which do not fluctuate in line with the day to day working capital needs of the business . replace_table_token_20_th in 2016 our working capital increased by $ 5.4 million driven by the acquisition of huntsman together with various movements year on year , some of which are included in the 40 reconciliation above to adjust our working capital to better represent the operational activity of the company . adjusted working capital shown above has increased by $ 13.4 million , with $ 12.2 million being related to the acquisition of huntsman . excluding the acquisition our adjusted working capital increased by $ 1.2 million , being primarily driven by higher receivables as the company ended the year with high demand from customers , partly offset by lower inventories year on year . excluding the huntsman acquisition , we had a $ 6.0 million increase in trade and other accounts receivable in 2016 primarily in our oilfield services segment . days ' sales outstanding in our fuel specialties segment decreased from 47 days to 45 days ; increased from 43 days to 55 days in our performance chemicals segment ; and increased from 44 days to 54 in our oilfield services segment . excluding the huntsman acquisition , we had a $ 7.3 million decrease in inventories in 2016 , which is primarily related to lower inventory in our fuel specialties business partly offset by increased inventory from the higher production volumes in our octane additives segment .
| 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 financial condition working capital the company believes that adjusted working capital , a non-gaap financial measure , provides useful information to investors in evaluating the company 's underlying performance and identifying operating trends . management uses this non-gaap financial measure internally to allocate resources and evaluate the performance of the company 's operations . items excluded from the adjusted working capital calculation are listed in the table below and represent factors which do not fluctuate in line with the day to day working capital needs of the business . replace_table_token_20_th in 2016 our working capital increased by $ 5.4 million driven by the acquisition of huntsman together with various movements year on year , some of which are included in the 40 reconciliation above to adjust our working capital to better represent the operational activity of the company . adjusted working capital shown above has increased by $ 13.4 million , with $ 12.2 million being related to the acquisition of huntsman . excluding the acquisition our adjusted working capital increased by $ 1.2 million , being primarily driven by higher receivables as the company ended the year with high demand from customers , partly offset by lower inventories year on year . excluding the huntsman acquisition , we had a $ 6.0 million increase in trade and other accounts receivable in 2016 primarily in our oilfield services segment . days ' sales outstanding in our fuel specialties segment decreased from 47 days to 45 days ; increased from 43 days to 55 days in our performance chemicals segment ; and increased from 44 days to 54 in our oilfield services segment . excluding the huntsman acquisition , we had a $ 7.3 million decrease in inventories in 2016 , which is primarily related to lower inventory in our fuel specialties business partly offset by increased inventory from the higher production volumes in our octane additives segment .
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Suspicious Activity Report : the united kingdom plan is closed to future service accrual , but has a large number of deferred and current pensioners . movements in the underlying plan asset value and projected benefit obligation ( pbo ) are dependent on actual return on investments as well as our assumptions in respect of the discount rate , annual member mortality rates , future return on assets and future inflation . a change in any one of these assumptions could impact the plan asset value , pbo and pension charge recognized in the income statement . such changes could adversely impact our results of operations and financial position . for example , a 0.25 % change in the discount rate assumption would change the pbo by approximately $ 26 million while the net pension credit for 2017 would change by approximately $ 0.2 million . a 0.25 % change in the level of price inflation assumption would change the pbo by approximately $ 19 million and the net pension credit for 2017 would change by approximately $ 0.2 million . further information is provided in note 9 of the notes to the consolidated financial statements . 26 deferred tax and uncertain income tax positions as at december 31 , 2016 , no deferred taxes have been provided for on the unremitted earnings of our overseas subsidiaries as any tax basis differences relating to investments in these overseas subsidiaries are considered to be permanent in duration . we have no current intention to repatriate past or future earnings of our overseas subsidiaries and consider that these earnings have been reinvested overseas . if circumstances were to change that would cause these earnings to be repatriated an additional u.s. tax liability could be incurred , and we continue to monitor this position . the calculation of our tax liabilities involves evaluating uncertainties in the application of complex tax regulations . we recognize liabilities for anticipated tax audit issues based on our estimate of whether , and the extent to which , additional taxes will be required . if we ultimately determine that payment of these amounts is unnecessary , we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary . we also recognize tax benefits to the extent that it is more likely than not that our positions will be sustained , based on technical merits , when challenged by the taxing authorities . to the extent that we prevail in matters for which liabilities have been established , or are required to pay amounts in excess of our liabilities , our effective tax rate in a given period may be materially affected . an unfavorable tax settlement may require cash payments and result in an increase in our effective tax rate in the year of resolution . a favorable tax settlement may be recognized as a reduction in our effective tax rate in the year of resolution . we report interest and penalties related to uncertain income tax positions as income taxes . for additional information regarding uncertain income tax positions , see note 10 of the notes to the consolidated financial statements . goodwill the company 's reporting units , the level at which goodwill is assessed for potential impairment , are consistent with the reportable segments . the components in each segment ( including products , markets and competitors ) have similar economic characteristics and the segments , therefore , reflect the lowest level at which operations and cash flows can be sufficiently distinguished , operationally and for financial reporting purposes , from the rest of the company . initially the company performs a qualitative assessment to determine whether it is more likely than not that the fair value of a segment is less than the carrying amount prior to performing the two-step goodwill impairment test . if a two-step test is required we assess the fair value based on projected post-tax cash flows discounted at the company 's weighted average cost of capital . at december 31 , 2016 we had $ 374.8 million of goodwill relating to our fuel specialties , performance chemicals and oilfield services segments . our impairment assessment concluded that there had been no impairment of goodwill in respect of those reporting segments . 27 while we believe our assumptions for impairment assessments are reasonable , they are subjective judgments , and it is possible that variations in any of the assumptions may result in materially different calculations of any potential impairment charges . property , plant and equipment and other intangible assets ( net of depreciation and amortization , respectively ) as at december 31 , 2016 we had $ 157.4 million of property , plant and equipment and $ 144.4 million of other intangible assets ( net of depreciation and amortization , respectively ) , that are discussed in notes 6 and 8 of the notes to the consolidated financial statements , respectively . these long-lived assets relate to all of our reporting segments and are being amortized or depreciated straight-line over periods of up to 17 years in respect of the other intangible assets and up to 25 years in respect of the property , plant and equipment . we continually assess the markets and products related to these long-lived assets , as well as their specific carrying values , and have concluded that these carrying values , and amortization and depreciation periods , remain appropriate . we also test these long-lived assets for any potential impairment when events occur or circumstances change which suggests that impairment may have occurred . story_separator_special_tag octane additives net sales : the year on year increase of $ 4.3 million was primarily due to the timing of demand with our one remaining refinery customer . gross margin : the year on year decrease of 3.9 percentage points is primarily driven by the timing and efficiency of production for our one remaining refinery customer . operating expenses : the year on year decrease of $ 2.2 million was due to the continuing efficient management of the cost base . other income statement captions pension credit/ ( charge ) : is non-cash , and was a $ 0.2 million net credit in 2015 compared to $ 3.3 million net charge in 2014 , primarily driven by lower interest cost on the projected benefit obligation . corporate costs : the year on year decrease of $ 0.4 million , related to $ 1.1 million lower legal , professional and other expenses in 2015 driven by the recovery of legal fees ; $ 1.8 million non-recurring professional costs in 2014 related to the acquisition of our independence business ; $ 1.4 million lower insurance claims due to non-recurring charges in 2014 relating to self-insured incidents ; which were partly offset by $ 3.1 million higher personnel-related compensation , including higher accruals for share-based compensation ; and the net $ 0.8 million release of a severance provision in 2014 . 37 adjustment to fair value of contingent consideration : the credit of $ 40.7 million relates to an adjustment of the carrying value of our liability for contingent consideration related to our independence acquisition of $ 51.4 million , partly offset by the accretion charge of $ 10.7 million . the carrying value of the contingent consideration is based on the estimated ebitda and free cash flow generated by the independence business through the period to october 31 , 2016. the contingent consideration payable is based on management 's latest forecasts of the business and on the current trading performance . the results of the business are particularly sensitive to the level of exploration , development and production activity of our customers in the oil and gas sector , this is directly affected by trends in oil prices . profit on disposal of subsidiary : the disposal of our aroma chemicals business generated a profit on disposal of $ 1.6 million in the third quarter . other net income/ ( expense ) : other net expense of $ 0.0 million primarily related to $ 1.4 million of losses on translation of net assets denominated in non-functional currencies in our european businesses , offset by gains of $ 1.4 million on foreign currency forward exchange contracts . in 2014 , other net income of $ 1.8 million primarily related to net gains of $ 3.4 million on foreign currency forward exchange contracts , partly offset by $ 1.6 million of losses on translation of net assets denominated in non-functional currencies in our european businesses . interest expense , net : was $ 4.0 million in 2015 and $ 3.4 million in 2014 , being primarily driven by higher borrowing in 2015 resulting from the funding required for the acquisition of our independence business in the fourth quarter of 2014. income taxes : the effective tax rate was 21.5 % and 24.2 % in 2015 and 2014 , respectively . the effective tax rate , as adjusted for changes to the fair value of contingent consideration , adjustments to income tax positions and the tax impact of other discrete items , was 20.1 % in 2015 compared with 24.9 % in 2014. the company believes that this adjusted effective tax rate , a non-gaap financial measure , provides useful information to investors and may assist them in evaluating the company 's underlying performance and identifying operating trends . in addition , management uses this non-gaap financial measure internally to evaluate the performance of the company 's operations and for planning and forecasting in subsequent periods . 38 replace_table_token_18_th in addition to those mentioned above , the following factors had a significant impact on the company 's effective tax rate as compared to the u.s. federal income tax rate of 35 % : replace_table_token_19_th the impact on the effective tax rate from profits earned in foreign jurisdictions with lower tax rates varies as the geographical mix of the company 's profits changes year on year . in 2015 , the company 's income tax expense benefited to a lesser degree from a proportion of its overall profits arising in switzerland than in 2014. this resulted in a $ 7.5 million benefit in switzerland ( 2014 $ 9.4 million ) . in addition , there was a $ 6.8 million benefit in relation to the united kingdom ( 2014 $ 7.9 million ) and a $ 0.3 million benefit in relation to germany ( 2014 $ 0.4 million ) , offset by a $ 0.1 million reduction in other jurisdictions . foreign income inclusions arise each year from certain types of income earned overseas being taxable under u.s. tax regulations . these types of income include subpart f income , principally from foreign based company sales in the united kingdom , including the associated section 78 tax gross up , and also from the income earned by certain overseas subsidiaries taxable under the u.s. tax regime . in 2015 , subpart f income and the associated section 78 gross up resulted in u.s. taxation of $ 4.7 million ( 2014 $ 5.0 million ) . certain overseas subsidiaries taxable under the u.s. tax regime incurred losses of $ 0.2 million ( 2014 $ 2.1 million income ) . foreign tax credits can fully or partially offset these incremental u.s. taxes from foreign income inclusions . the utilization of foreign tax credits varies year on year as this is dependent on a number of variable factors which are difficult to predict and may in certain 39 years prevent any offset of
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2,631 | on october 5 , 2017 , in connection with the entry into the october 2017 purchase agreement , the investor purchased 212 shares of series c preferred stock for $ 2 million ( the “ initial closing ” ) ; on november 21 , 2017 , pursuant to the terms of the october 2017 purchase agreement , we sold the investor an additional 106 shares of series c preferred stock for $ 1 million ( the “ second closing ” ) ; on december 27 , 2017 , pursuant to the terms of the october 2017 purchase agreement , we sold the investor an additional 105 shares of series c preferred stock for $ 1 million ( the “ third closing ” ) ; on january 31 , 2018 , pursuant to the terms of the october 2017 purchase agreement , we sold the investor an additional 105 shares of series c preferred stock for $ 1 million ( the “ fourth closing ” ) ; on february 22 , 2018 , pursuant to the terms of the october 2017 purchase agreement , we sold the investor an additional 105 shares of series c preferred stock for $ 1 million ( the “ fifth closing ” ) ; on march 9 , 2018 , the company sold the investor an additional 105 shares of series c preferred stock for $ 1 million ( the “ sixth closing ” ) ; on april 10 , 2018 , the company sold the investor an additional 105 shares of series c preferred stock for $ 1 million ( the “ seventh closing ” ) ; and on may 22 , 2018 , the company sold the investor an additional 105 shares of series c preferred stock for $ 1 million ( the “ eighth closing ” ) . 56 the sixth closing , seventh closing and eighth closing occurred notwithstanding the terms of the october 2017 purchase agreement which required the sixth closing to be for a total of $ 5 million ( the “ $ 5 million closing ” ) , as the parties mutually agreed to the sales of only $ 1 million of series c preferred stock to be sold pursuant to the $ 5 million closing , at the sixth closing , seventh closing and eighth closing . on march 2 , 2018 , the company and the investor entered into an amendment to the october 2017 purchase agreement ( the “ amendment ” ) , pursuant to which the investor ( a ) waived any and all trigger events ( as defined in the certificate of designation of the series c preferred stock ( the “ designation ” ) ) that had occurred prior to march 2 , 2018 , ( b ) agreed that all calculations provided for in the designation would be made as if no such trigger event had occurred , and ( c ) waived any right to receive any additional shares of common stock based upon any such trigger event , with respect to all shares of series c preferred stock , other than any which have already been converted . the investor also agreed , pursuant to the amendment , that the conversion rate of conversion premiums pursuant to the designation would remain 95 % of the average of the lowest 5 individual daily volume weighted average prices during the applicable measuring period ( as defined in the designation ) , not to exceed 100 % of the lowest sales prices on the last day of the measuring period , less $ 0.05 per share of common stock , unless a triggering event has occurred , and that such $ 0.05 per share discount would not be adjusted in connection with the company 's previously reported 1-for-25 reverse stock split affected on march 5 , 2018. the company plans to use the proceeds from the sale of the series c preferred stock for working capital , workovers on existing wells , drilling and completion of additional wells , acquisitions , repayment of vendor balances and payments to ibc , in anticipation of regaining compliance . on august 2 , 2017 , and effective june 13 , 2017 , the company entered into an agreement with vantage fund , llc ( “ vantage ” and the “ vantage agreement ” ) , pursuant to which vantage agreed to provide up to $ 6 million of funding to the company , in the sole discretion of vantage , with $ 400,000 provided in the initial tranche ( the “ initial tranche ” ) . the consideration for the initial tranche of funding was the assignment to vantage of all of the company 's rights and ownership in its wholly-owned subsidiary camber permian ii , llc ( “ camber permian ” ) which included leaseholds and potential participation rights in undeveloped oil and gas property known as arrowhead . the vantage agreement contained customary indemnification requirements . on july 17 , 2017 , vantage provided $ 120,000 to the company under the vantage note and on july 20 , 2017 , vantage provided $ 30,000 to the company under the vantage note . vantage was granted a second lien on the jackrabbit property in connection with the financing . on november 9 , 2017 , in connection with the sale of the jackrabbit acreage , the company paid vantage the full amount due on the vantage note of $ 150,000. operations camber 's objective for our current producing wells is to operate as efficiently as possible , look for technological advancements to increase the life of the wells , evaluate the economic viability of these wells and consider adding to or working over our low producing assets . story_separator_special_tag dd & a decreased for the current year as compared to the prior year period by $ 1.2 million or 45 % primarily related to the decrease in total depreciable assets caused by the release with rogers . impairment of oil and gas properties . during the year ended march 31 , 2018 , the company recorded impairments totaling $ 8.1 million primarily related to unproved properties due to expirations of leaseholds . during the year ended march 31 , 2017 , the company recorded impairments totaling $ 79.1 million , which represented $ 10.9 million related to proved properties , $ 18.7 million related to unproved properties , and $ 49.5 million in conjunction with the acquisition , primarily due to continued low commodity prices during the fiscal year . loss on sale of property and equipment . during the year ended march 31 , 2018 , the company recorded a loss on sale of property and equipment of $ 3,559,083. during the year ended march 31 , 2017 , the company recorded a loss on sale of property and equipment of $ -0-. general and administrative expenses ( “ g & a ” ) ( excluding share-based compensation ) . g & a expenses for the current period increased by approximately $ 2.1 million or 52 % primarily related to professional fees from our financing transactions , and consulting , investor relations , and marketing expenses . share-based compensation . share-based compensation , which is included in general and administrative expenses in the statements of operations increased approximately $ 1.1 million or 940 % for the year ended march 31 , 2018 , as compared to the prior year primarily due to shares granted to consultants as compensation for services performed for the company . share-based compensation is utilized for the purpose of conserving cash resources for use in field development activities and operations . 61 interest expense . interest expense for the year ended march 31 , 2018 increased by $ 2.8 million or 90 % , when compared to the prior year primarily due to the approximate $ 2.1 million of default interest related to the rogers foreclosure , additional interest payments on the ibc loan ( which was only outstanding for part of the year ended march 31 , 2017 ) and the amortization of various loan discounts for outstanding and recently retired payables . other expense . other expense for the year ended march 31 , 2018 decreased by approximately $ 1.8 million when compared to the prior period primarily due to the settlement of costs incurred in the prior year related to the acquisition . story_separator_special_tag inherently uncertain because the future resolution of such matters is unknown . management routinely discusses the development , selection and disclosure of each of the critical accounting policies . following is a discussion of camber 's most critical accounting policies : proved oil and natural gas reserves camber 's independent petroleum consultants estimate proved oil and gas reserves , which directly impact financial accounting estimates , including depreciation , depletion and amortization . proved reserves represent estimated quantities of crude oil and condensate , natural gas liquids and natural gas that geological and engineering data demonstrate , with reasonable certainty , to be recoverable in future years from known reservoirs under economic and operating conditions existing at the time the estimates were made . the process of estimating quantities of proved oil and gas reserves is very complex , requiring significant subjective decisions in the evaluation of all available geological , engineering and economic data for each reservoir . the data for a given reservoir may also change substantially over time as a result of numerous factors including , but not limited to , additional development activity , evolving production history and continual reassessment of the viability of production under varying economic conditions . consequently , material revisions ( upward or downward ) to existing reserve estimates may occur from time to time . for related discussion , see “ item 1a . risk factors ” . 63 full cost accounting method camber uses the full cost method of accounting for oil and gas producing activities . costs to acquire mineral interests in oil and gas properties , to drill and equip exploratory wells used to find proved reserves , and to drill and equip development wells including directly related overhead costs and related asset retirement costs are capitalized . under this method , all costs , including internal costs directly related to acquisition , exploration and development activities are capitalized as oil and gas property costs on a country-by-country basis . properties not subject to amortization consist of exploration and development costs , which are evaluated on a property-by-property basis . amortization of these unproved property costs begins when the properties become proved or their values become impaired . camber assesses overall values of unproved properties , if any , on at least an annual basis or when there has been an indication that impairment in value may have occurred . impairment of unproved properties is assessed based on management 's intention with regard to future development of individually significant properties and the ability of camber to obtain funds to finance their programs . if the results of an assessment indicate that the properties are impaired , the amount of the impairment is added to the capitalized costs to be amortized . costs of oil and gas properties are amortized using the units of production method . sales of oil and natural gas properties are accounted for as adjustments to the net full cost pool with no gain or loss recognized , unless the adjustment would significantly alter the relationship between capitalized costs and proved reserves . full cost ceiling test limitation in applying the full cost method , camber performs an impairment test ( ceiling test ) at each reporting date , whereby the carrying value of property and equipment is compared to the “
| liquidity and capital resources the accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the united states of america on a going concern basis , which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business . accordingly , the financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the company be unable to continue as a going concern . our primary sources of cash for the year ended march 31 , 2018 were from funds generated from the sale of preferred stock , the sale of natural gas and crude oil production and funds borrowed under funding agreements . the primary uses of cash were funds used in operations . working capital at march 31 , 2018 , the company 's total current liabilities of $ 40.0 million exceeded its total current assets of approximately $ 1.7 million , resulting in a working capital deficit of $ 38.3 million , while at march 31 , 2017 , the company 's total current liabilities of $ 48.2 million exceeded its total current assets of $ 3.9 million , resulting in a working capital deficit of $ 44.3 million . the $ 6 million decrease in the working capital deficit is primarily related to the settlement of the debt related to the rogers loan , described in greater detail above under `` part i '' - `` item 1. business '' - `` recent events '' - `` rogers loan default and foreclosure '' .
| 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 accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the united states of america on a going concern basis , which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business . accordingly , the financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the company be unable to continue as a going concern . our primary sources of cash for the year ended march 31 , 2018 were from funds generated from the sale of preferred stock , the sale of natural gas and crude oil production and funds borrowed under funding agreements . the primary uses of cash were funds used in operations . working capital at march 31 , 2018 , the company 's total current liabilities of $ 40.0 million exceeded its total current assets of approximately $ 1.7 million , resulting in a working capital deficit of $ 38.3 million , while at march 31 , 2017 , the company 's total current liabilities of $ 48.2 million exceeded its total current assets of $ 3.9 million , resulting in a working capital deficit of $ 44.3 million . the $ 6 million decrease in the working capital deficit is primarily related to the settlement of the debt related to the rogers loan , described in greater detail above under `` part i '' - `` item 1. business '' - `` recent events '' - `` rogers loan default and foreclosure '' .
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Suspicious Activity Report : on october 5 , 2017 , in connection with the entry into the october 2017 purchase agreement , the investor purchased 212 shares of series c preferred stock for $ 2 million ( the “ initial closing ” ) ; on november 21 , 2017 , pursuant to the terms of the october 2017 purchase agreement , we sold the investor an additional 106 shares of series c preferred stock for $ 1 million ( the “ second closing ” ) ; on december 27 , 2017 , pursuant to the terms of the october 2017 purchase agreement , we sold the investor an additional 105 shares of series c preferred stock for $ 1 million ( the “ third closing ” ) ; on january 31 , 2018 , pursuant to the terms of the october 2017 purchase agreement , we sold the investor an additional 105 shares of series c preferred stock for $ 1 million ( the “ fourth closing ” ) ; on february 22 , 2018 , pursuant to the terms of the october 2017 purchase agreement , we sold the investor an additional 105 shares of series c preferred stock for $ 1 million ( the “ fifth closing ” ) ; on march 9 , 2018 , the company sold the investor an additional 105 shares of series c preferred stock for $ 1 million ( the “ sixth closing ” ) ; on april 10 , 2018 , the company sold the investor an additional 105 shares of series c preferred stock for $ 1 million ( the “ seventh closing ” ) ; and on may 22 , 2018 , the company sold the investor an additional 105 shares of series c preferred stock for $ 1 million ( the “ eighth closing ” ) . 56 the sixth closing , seventh closing and eighth closing occurred notwithstanding the terms of the october 2017 purchase agreement which required the sixth closing to be for a total of $ 5 million ( the “ $ 5 million closing ” ) , as the parties mutually agreed to the sales of only $ 1 million of series c preferred stock to be sold pursuant to the $ 5 million closing , at the sixth closing , seventh closing and eighth closing . on march 2 , 2018 , the company and the investor entered into an amendment to the october 2017 purchase agreement ( the “ amendment ” ) , pursuant to which the investor ( a ) waived any and all trigger events ( as defined in the certificate of designation of the series c preferred stock ( the “ designation ” ) ) that had occurred prior to march 2 , 2018 , ( b ) agreed that all calculations provided for in the designation would be made as if no such trigger event had occurred , and ( c ) waived any right to receive any additional shares of common stock based upon any such trigger event , with respect to all shares of series c preferred stock , other than any which have already been converted . the investor also agreed , pursuant to the amendment , that the conversion rate of conversion premiums pursuant to the designation would remain 95 % of the average of the lowest 5 individual daily volume weighted average prices during the applicable measuring period ( as defined in the designation ) , not to exceed 100 % of the lowest sales prices on the last day of the measuring period , less $ 0.05 per share of common stock , unless a triggering event has occurred , and that such $ 0.05 per share discount would not be adjusted in connection with the company 's previously reported 1-for-25 reverse stock split affected on march 5 , 2018. the company plans to use the proceeds from the sale of the series c preferred stock for working capital , workovers on existing wells , drilling and completion of additional wells , acquisitions , repayment of vendor balances and payments to ibc , in anticipation of regaining compliance . on august 2 , 2017 , and effective june 13 , 2017 , the company entered into an agreement with vantage fund , llc ( “ vantage ” and the “ vantage agreement ” ) , pursuant to which vantage agreed to provide up to $ 6 million of funding to the company , in the sole discretion of vantage , with $ 400,000 provided in the initial tranche ( the “ initial tranche ” ) . the consideration for the initial tranche of funding was the assignment to vantage of all of the company 's rights and ownership in its wholly-owned subsidiary camber permian ii , llc ( “ camber permian ” ) which included leaseholds and potential participation rights in undeveloped oil and gas property known as arrowhead . the vantage agreement contained customary indemnification requirements . on july 17 , 2017 , vantage provided $ 120,000 to the company under the vantage note and on july 20 , 2017 , vantage provided $ 30,000 to the company under the vantage note . vantage was granted a second lien on the jackrabbit property in connection with the financing . on november 9 , 2017 , in connection with the sale of the jackrabbit acreage , the company paid vantage the full amount due on the vantage note of $ 150,000. operations camber 's objective for our current producing wells is to operate as efficiently as possible , look for technological advancements to increase the life of the wells , evaluate the economic viability of these wells and consider adding to or working over our low producing assets . story_separator_special_tag dd & a decreased for the current year as compared to the prior year period by $ 1.2 million or 45 % primarily related to the decrease in total depreciable assets caused by the release with rogers . impairment of oil and gas properties . during the year ended march 31 , 2018 , the company recorded impairments totaling $ 8.1 million primarily related to unproved properties due to expirations of leaseholds . during the year ended march 31 , 2017 , the company recorded impairments totaling $ 79.1 million , which represented $ 10.9 million related to proved properties , $ 18.7 million related to unproved properties , and $ 49.5 million in conjunction with the acquisition , primarily due to continued low commodity prices during the fiscal year . loss on sale of property and equipment . during the year ended march 31 , 2018 , the company recorded a loss on sale of property and equipment of $ 3,559,083. during the year ended march 31 , 2017 , the company recorded a loss on sale of property and equipment of $ -0-. general and administrative expenses ( “ g & a ” ) ( excluding share-based compensation ) . g & a expenses for the current period increased by approximately $ 2.1 million or 52 % primarily related to professional fees from our financing transactions , and consulting , investor relations , and marketing expenses . share-based compensation . share-based compensation , which is included in general and administrative expenses in the statements of operations increased approximately $ 1.1 million or 940 % for the year ended march 31 , 2018 , as compared to the prior year primarily due to shares granted to consultants as compensation for services performed for the company . share-based compensation is utilized for the purpose of conserving cash resources for use in field development activities and operations . 61 interest expense . interest expense for the year ended march 31 , 2018 increased by $ 2.8 million or 90 % , when compared to the prior year primarily due to the approximate $ 2.1 million of default interest related to the rogers foreclosure , additional interest payments on the ibc loan ( which was only outstanding for part of the year ended march 31 , 2017 ) and the amortization of various loan discounts for outstanding and recently retired payables . other expense . other expense for the year ended march 31 , 2018 decreased by approximately $ 1.8 million when compared to the prior period primarily due to the settlement of costs incurred in the prior year related to the acquisition . story_separator_special_tag inherently uncertain because the future resolution of such matters is unknown . management routinely discusses the development , selection and disclosure of each of the critical accounting policies . following is a discussion of camber 's most critical accounting policies : proved oil and natural gas reserves camber 's independent petroleum consultants estimate proved oil and gas reserves , which directly impact financial accounting estimates , including depreciation , depletion and amortization . proved reserves represent estimated quantities of crude oil and condensate , natural gas liquids and natural gas that geological and engineering data demonstrate , with reasonable certainty , to be recoverable in future years from known reservoirs under economic and operating conditions existing at the time the estimates were made . the process of estimating quantities of proved oil and gas reserves is very complex , requiring significant subjective decisions in the evaluation of all available geological , engineering and economic data for each reservoir . the data for a given reservoir may also change substantially over time as a result of numerous factors including , but not limited to , additional development activity , evolving production history and continual reassessment of the viability of production under varying economic conditions . consequently , material revisions ( upward or downward ) to existing reserve estimates may occur from time to time . for related discussion , see “ item 1a . risk factors ” . 63 full cost accounting method camber uses the full cost method of accounting for oil and gas producing activities . costs to acquire mineral interests in oil and gas properties , to drill and equip exploratory wells used to find proved reserves , and to drill and equip development wells including directly related overhead costs and related asset retirement costs are capitalized . under this method , all costs , including internal costs directly related to acquisition , exploration and development activities are capitalized as oil and gas property costs on a country-by-country basis . properties not subject to amortization consist of exploration and development costs , which are evaluated on a property-by-property basis . amortization of these unproved property costs begins when the properties become proved or their values become impaired . camber assesses overall values of unproved properties , if any , on at least an annual basis or when there has been an indication that impairment in value may have occurred . impairment of unproved properties is assessed based on management 's intention with regard to future development of individually significant properties and the ability of camber to obtain funds to finance their programs . if the results of an assessment indicate that the properties are impaired , the amount of the impairment is added to the capitalized costs to be amortized . costs of oil and gas properties are amortized using the units of production method . sales of oil and natural gas properties are accounted for as adjustments to the net full cost pool with no gain or loss recognized , unless the adjustment would significantly alter the relationship between capitalized costs and proved reserves . full cost ceiling test limitation in applying the full cost method , camber performs an impairment test ( ceiling test ) at each reporting date , whereby the carrying value of property and equipment is compared to the “
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2,632 | every person who ta kes a survey is a potential future customer , and we seek to capitalize on that opportunity through end of survey marketing designed to engage further with respondents and encourage them to create accounts and become new users . we invest in new features and improvements to our product functionality as well as targeted marketing campaigns to drive conversion of unpaid users to paid users . as a result , we have a predictable , high-visibility revenue model where we generate more than 90 % our revenue from sales o f subscriptions to our products . we have a broad and diverse customer base and no customer represented more than 1 % of our revenue in any of the periods presented . we supplement our self-serve channel with a targeted sales effort to upsell organizations to surveymonkey enterprise , to expand deployments of surveymonkey enterprise within organizations and to cross-sell purpose-built solutions within organizations . we believe our existing user base represents a significant opportunity to expand our business and increase our revenue . we have 646,727 paying users in more than 345,000 organizational domains and believe the individual paying users within organizational domains represent an opportunity to significantly increase conversion from individual subscriptions to our enterprise offerings . key business metric we review a number of operating and financial metrics , including the following key metric to evaluate our business , measure our performance , identify trends affecting our business , formulate our business plan and make strategic decisions . replace_table_token_6_th paying users we define a paying user as an individual customer of our survey platform or form-based application , a seat within a surveymonkey enterprise deployment or a subscription to one of our purpose-built solutions , in each case as of the end of a period . one person would count as multiple paying users if the person had more than one paid license at the end of the period . for example , if an individual paying user also had a designated seat in a surveymonkey enterprise deployment , we would count that person as two paying users . paying users is an indicator of the scale of our business and an important factor in our ability to increase our revenue . non-gaap financial measures we believe that , in addition to our results determined in accordance with gaap , core revenue , average revenue per paying user , free cash flow and adjusted ebitda , all of which are non-gaap financial measures , are useful in evaluating our business , results of operations and financial condition . replace_table_token_7_th core revenue we define core revenue as revenue from our survey platform , form-based application and purpose-built solutions , excluding the non-self-serve portion of surveymonkey audience , which we generally ceased offering at the end of the second quarter of 2017. we consider core revenue to be an important measure because it excludes revenue from an offering that we generally no longer provide , and so provides a better understanding of our current 45 business and provides comparability of our results of operations over ti me . core revenue has limitations as an analytical tool , and it should not be considered in isolation or as a substitute for analysis of other gaap financial measures , such as revenue . some of the limitations of core revenue are that it does not reflect all of our revenue in the periods presented and that our results of operations for the periods presented reflect expenses that we incurred to generate revenue that is excluded fr om core revenue . the following is a reconciliation of core revenue to the most comparable gaap measure , revenue : replace_table_token_8_th average revenue per paying user we define average revenue per paying user , or arpu , as core revenue divided by the average number of paying users during the period . for interim periods , we use annualized core revenue which is calculated by dividing the core revenue for the period by the number of days in that period and multiplying this value by 365 days . we calculate the average number of paying users by adding the number of paying users as of the end of the prior period to the number of paying users as of the end of the current period , and then dividing by two . we consider arpu to be an important measure because it helps illustrate underlying trends in our business by showing investors the changes in per-user revenue , which is a reflection of our ability to successfully upsell or cross-sell our products and purpose-built solutions . arpu has limitations as an analytic tool , and it should not be considered in isolation or as a substitute for analysis of other gaap financial measures . some of the limitations of arpu are that it is a calculation that does not reflect revenue from the non-self-serve portion of our surveymonkey audience solution in any of the periods presented , and also does not reflect expenses that we incurred to generate revenue that is excluded from core revenue . free cash flow we define free cash flow as gaap net cash provided by operating activities less purchases of property and equipment , net of tenant improvement reimbursements , and capitalized internal-use software . we consider free cash flow to be an important measure because it measures our liquidity after deducting capital expenditures for purchases of property and equipment and capitalized software development costs , which we believe provides a more accurate view of our cash generation and cash available to grow our business . for the years ended december 31 , 2018 , 2017 and 2016 , our free cash flow included cash payments for interest on our long-term debt of $ 20.5 million , $ 19.9 million and $ 19.8 million , respectively . story_separator_special_tag in addition , we incurred $ 3.2 million of transaction fees during the year ended december 31 , 2017 related to our 2017 credit facility as compared to $ 0.9 million incurred during the year ended december 31 , 2018 , related to our 2018 credit facility . restructuring year ended december 31 , ( dollars in thousands ) 2018 2017 change % change restructuring $ 3,525 $ 1,785 $ 1,740 97 % restructuring expenses increased for the year ended december 31 , 2018 compared to the prior year , primarily due to the $ 2.8 million write-off of leasehold improvements related to our november 2017 restructuring plan . 52 interest expense year ended december 31 , ( dollars in thousands ) 2018 2017 change % change interest expense $ 27,801 $ 26,865 $ 936 3 % interest expense increased for the year ended december 31 , 2018 compared to the prior year , primarily due to higher average interest rates . we expect future interest expense to decrease resulting from the repayment of a portion of our outstanding indebtedness under our credit facilities and our adoption of the new leasing standard , asc 842. for additional information regarding our credit facilities and financing obligations , see notes 8 and 9 , respectively , of the notes to consolidated financial statements included elsewhere in this annual report on form 10-k. other non-operating income , net year ended december 31 , ( dollars in thousands ) 2018 2017 change % change other non-operating income ( expense ) , net $ ( 298 ) $ 7,610 $ ( 7,908 ) ( 104 ) % other non-operating income , net decreased for the year ended december 31 , 2018 compared to the prior year , primarily due to a decrease of $ 5.6 million gain on our sale of a private company investment , an increase in foreign currency losses of $ 1.5 million , an increase in loss on debt refinancing of $ 0.8 million , partially offset by an increase in interest income of $ 1.1 million resulting from higher average cash balances . provision for income taxes replace_table_token_16_th the provision for income taxes increased for the year ended december 31 , 2018 compared to the prior year , primarily due to certain provisions in the tax act , including a decrease in the u.s. statutory tax rate from 35 % to 21 % and changes to our valuation allowance . comparison of the year ended december 31 , 2017 and 2016 revenue and cost of revenue replace_table_token_17_th revenue increased for the year ended december 31 , 2017 compared to the prior year primarily due to a 5 % increase the number of paying users from 574,872 in 2016 to 606,077 in 2017. the increase in revenue was also due in part to a 4 % increase in arpu from $ 349 in 2016 to $ 362 in 2017 , which was largely driven by a change to our individual user plans in 2017 that offered paying users new plans with more functionality and required our users to renew their subscriptions at higher price points . the increase in revenue was partially offset by a $ 10.5 million decrease in revenue relating to us having ceased offering our non-self-serve version of our surveymonkey audience solution at the end of the second quarter of 2017. during the year ended december 31 , 2017 , we 53 generated over 75 % of our revenue from individuals and organizations that were customers in 2016 , with the remainder of our revenue coming from new customers . cost of revenue decreased for the year ended december 31 , 2017 compared to the prior year , primarily due to a $ 2.5 million decrease in amortization of developed technology due to the de-recognition of acquired intangibles , a $ 2.0 million decrease in external sample costs as we generally ceased offering our non-self-serve version of our surveymonkey audience solution at the end of the second quarter of 2017 , a $ 2.9 million decrease in personnel costs due to a decrease in headcount and a $ 1.2 million decrease in external services . these decreases were partially offset by increases of $ 2.2 million in the amortization of capitalized software , $ 0.7 million in facilities costs and $ 0.6 million in payment processing fees due to increased sales . as a result of the increase in our revenue and the decrease in our cost of revenue , our gross margin increased for the year ended december 31 , 2017 as compared to the prior year . research and development year ended december 31 , ( dollars in thousands ) 2017 2016 change % change research and development $ 53,660 $ 37,985 $ 15,675 41 % research and development expenses increased for the year ended december 31 , 2017 compared to the prior year primarily due to an increase of $ 9.7 million in personnel costs due to headcount growth , a $ 2.6 million decrease in the software development costs that qualified for capitalization and a $ 3.7 million increase in facilities costs related to the relocation of our headquarters . these increases were partially offset by acquisition-related deferred compensation becoming fully amortized in 2016. sales and marketing year ended december 31 , ( dollars in thousands ) 2017 2016 change % change sales and marketing $ 73,511 $ 73,970 $ ( 459 ) ( 1 ) % sales and marketing expenses decreased for the year ended december 31 , 2017 compared to the prior year , primarily due to decreases of $ 5.0 million in acquisition-related expenses due to deferred compensation related to past acquisitions becoming fully amortized in 2016 , $ 1.8 million in intangible asset amortization due to certain acquired intangible assets becoming fully amortized in 2016 , $ 1.0 million in commissions expense related to our non-self-serve version of surveymonkey audience solution , which we generally ceased offering at the end
| cash flows from operating activities our largest source of operating cash is cash collections from our customers for subscriptions to our products . our primary uses of cash in operating activities are for employee-related expenditures , marketing expenses and third-party hosting costs . historically , we have generated positive cash flows from operating activities . net cash provided by operating activities is impacted by our net loss adjusted for certain non-cash items , including depreciation and amortization expenses , stock-based compensation , the derecognition of goodwill and intangible assets in 2016 , deferred income taxes , as well as the effect of changes in operating assets and liabilities . during the year ended december 31 , 2018 , cash provided by operating activities was $ 45.4 million , primarily due to our net loss of $ 154.7 million , adjusted for non-cash charges of $ 183.9 million and net cash inflows of $ 16.2 million provided by changes in our operating assets and liabilities . non-cash charges primarily consisted of depreciation and amortization of property and equipment , capitalized internal-use software and intangible assets , and stock-based compensation . the primary drivers of the changes in operating assets and liabilities related to cash provided by a $ 16.4 million increase in deferred revenue , a $ 5.2 million increase in accrued compensation and a $ 3.6 million increase in accounts payable and accrued liabilities , partially offset by cash used for prepaid expenses and other assets of $ 5.6 million , as well as an increase in accounts receivable of $ 2.0 million and a decrease of $ 1.4 million in accrued interest on financing lease obligation . during the year ended december 31 , 2017 , cash provided by operating activities was $ 45.0 million , primarily due to our net loss of $ 24.0 million , adjusted for non-cash charges of $ 54.0 million and net cash inflows of $ 15.0 million provided by changes in our operating assets and 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.
```cash flows from operating activities our largest source of operating cash is cash collections from our customers for subscriptions to our products . our primary uses of cash in operating activities are for employee-related expenditures , marketing expenses and third-party hosting costs . historically , we have generated positive cash flows from operating activities . net cash provided by operating activities is impacted by our net loss adjusted for certain non-cash items , including depreciation and amortization expenses , stock-based compensation , the derecognition of goodwill and intangible assets in 2016 , deferred income taxes , as well as the effect of changes in operating assets and liabilities . during the year ended december 31 , 2018 , cash provided by operating activities was $ 45.4 million , primarily due to our net loss of $ 154.7 million , adjusted for non-cash charges of $ 183.9 million and net cash inflows of $ 16.2 million provided by changes in our operating assets and liabilities . non-cash charges primarily consisted of depreciation and amortization of property and equipment , capitalized internal-use software and intangible assets , and stock-based compensation . the primary drivers of the changes in operating assets and liabilities related to cash provided by a $ 16.4 million increase in deferred revenue , a $ 5.2 million increase in accrued compensation and a $ 3.6 million increase in accounts payable and accrued liabilities , partially offset by cash used for prepaid expenses and other assets of $ 5.6 million , as well as an increase in accounts receivable of $ 2.0 million and a decrease of $ 1.4 million in accrued interest on financing lease obligation . during the year ended december 31 , 2017 , cash provided by operating activities was $ 45.0 million , primarily due to our net loss of $ 24.0 million , adjusted for non-cash charges of $ 54.0 million and net cash inflows of $ 15.0 million provided by changes in our operating assets and liabilities .
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Suspicious Activity Report : every person who ta kes a survey is a potential future customer , and we seek to capitalize on that opportunity through end of survey marketing designed to engage further with respondents and encourage them to create accounts and become new users . we invest in new features and improvements to our product functionality as well as targeted marketing campaigns to drive conversion of unpaid users to paid users . as a result , we have a predictable , high-visibility revenue model where we generate more than 90 % our revenue from sales o f subscriptions to our products . we have a broad and diverse customer base and no customer represented more than 1 % of our revenue in any of the periods presented . we supplement our self-serve channel with a targeted sales effort to upsell organizations to surveymonkey enterprise , to expand deployments of surveymonkey enterprise within organizations and to cross-sell purpose-built solutions within organizations . we believe our existing user base represents a significant opportunity to expand our business and increase our revenue . we have 646,727 paying users in more than 345,000 organizational domains and believe the individual paying users within organizational domains represent an opportunity to significantly increase conversion from individual subscriptions to our enterprise offerings . key business metric we review a number of operating and financial metrics , including the following key metric to evaluate our business , measure our performance , identify trends affecting our business , formulate our business plan and make strategic decisions . replace_table_token_6_th paying users we define a paying user as an individual customer of our survey platform or form-based application , a seat within a surveymonkey enterprise deployment or a subscription to one of our purpose-built solutions , in each case as of the end of a period . one person would count as multiple paying users if the person had more than one paid license at the end of the period . for example , if an individual paying user also had a designated seat in a surveymonkey enterprise deployment , we would count that person as two paying users . paying users is an indicator of the scale of our business and an important factor in our ability to increase our revenue . non-gaap financial measures we believe that , in addition to our results determined in accordance with gaap , core revenue , average revenue per paying user , free cash flow and adjusted ebitda , all of which are non-gaap financial measures , are useful in evaluating our business , results of operations and financial condition . replace_table_token_7_th core revenue we define core revenue as revenue from our survey platform , form-based application and purpose-built solutions , excluding the non-self-serve portion of surveymonkey audience , which we generally ceased offering at the end of the second quarter of 2017. we consider core revenue to be an important measure because it excludes revenue from an offering that we generally no longer provide , and so provides a better understanding of our current 45 business and provides comparability of our results of operations over ti me . core revenue has limitations as an analytical tool , and it should not be considered in isolation or as a substitute for analysis of other gaap financial measures , such as revenue . some of the limitations of core revenue are that it does not reflect all of our revenue in the periods presented and that our results of operations for the periods presented reflect expenses that we incurred to generate revenue that is excluded fr om core revenue . the following is a reconciliation of core revenue to the most comparable gaap measure , revenue : replace_table_token_8_th average revenue per paying user we define average revenue per paying user , or arpu , as core revenue divided by the average number of paying users during the period . for interim periods , we use annualized core revenue which is calculated by dividing the core revenue for the period by the number of days in that period and multiplying this value by 365 days . we calculate the average number of paying users by adding the number of paying users as of the end of the prior period to the number of paying users as of the end of the current period , and then dividing by two . we consider arpu to be an important measure because it helps illustrate underlying trends in our business by showing investors the changes in per-user revenue , which is a reflection of our ability to successfully upsell or cross-sell our products and purpose-built solutions . arpu has limitations as an analytic tool , and it should not be considered in isolation or as a substitute for analysis of other gaap financial measures . some of the limitations of arpu are that it is a calculation that does not reflect revenue from the non-self-serve portion of our surveymonkey audience solution in any of the periods presented , and also does not reflect expenses that we incurred to generate revenue that is excluded from core revenue . free cash flow we define free cash flow as gaap net cash provided by operating activities less purchases of property and equipment , net of tenant improvement reimbursements , and capitalized internal-use software . we consider free cash flow to be an important measure because it measures our liquidity after deducting capital expenditures for purchases of property and equipment and capitalized software development costs , which we believe provides a more accurate view of our cash generation and cash available to grow our business . for the years ended december 31 , 2018 , 2017 and 2016 , our free cash flow included cash payments for interest on our long-term debt of $ 20.5 million , $ 19.9 million and $ 19.8 million , respectively . story_separator_special_tag in addition , we incurred $ 3.2 million of transaction fees during the year ended december 31 , 2017 related to our 2017 credit facility as compared to $ 0.9 million incurred during the year ended december 31 , 2018 , related to our 2018 credit facility . restructuring year ended december 31 , ( dollars in thousands ) 2018 2017 change % change restructuring $ 3,525 $ 1,785 $ 1,740 97 % restructuring expenses increased for the year ended december 31 , 2018 compared to the prior year , primarily due to the $ 2.8 million write-off of leasehold improvements related to our november 2017 restructuring plan . 52 interest expense year ended december 31 , ( dollars in thousands ) 2018 2017 change % change interest expense $ 27,801 $ 26,865 $ 936 3 % interest expense increased for the year ended december 31 , 2018 compared to the prior year , primarily due to higher average interest rates . we expect future interest expense to decrease resulting from the repayment of a portion of our outstanding indebtedness under our credit facilities and our adoption of the new leasing standard , asc 842. for additional information regarding our credit facilities and financing obligations , see notes 8 and 9 , respectively , of the notes to consolidated financial statements included elsewhere in this annual report on form 10-k. other non-operating income , net year ended december 31 , ( dollars in thousands ) 2018 2017 change % change other non-operating income ( expense ) , net $ ( 298 ) $ 7,610 $ ( 7,908 ) ( 104 ) % other non-operating income , net decreased for the year ended december 31 , 2018 compared to the prior year , primarily due to a decrease of $ 5.6 million gain on our sale of a private company investment , an increase in foreign currency losses of $ 1.5 million , an increase in loss on debt refinancing of $ 0.8 million , partially offset by an increase in interest income of $ 1.1 million resulting from higher average cash balances . provision for income taxes replace_table_token_16_th the provision for income taxes increased for the year ended december 31 , 2018 compared to the prior year , primarily due to certain provisions in the tax act , including a decrease in the u.s. statutory tax rate from 35 % to 21 % and changes to our valuation allowance . comparison of the year ended december 31 , 2017 and 2016 revenue and cost of revenue replace_table_token_17_th revenue increased for the year ended december 31 , 2017 compared to the prior year primarily due to a 5 % increase the number of paying users from 574,872 in 2016 to 606,077 in 2017. the increase in revenue was also due in part to a 4 % increase in arpu from $ 349 in 2016 to $ 362 in 2017 , which was largely driven by a change to our individual user plans in 2017 that offered paying users new plans with more functionality and required our users to renew their subscriptions at higher price points . the increase in revenue was partially offset by a $ 10.5 million decrease in revenue relating to us having ceased offering our non-self-serve version of our surveymonkey audience solution at the end of the second quarter of 2017. during the year ended december 31 , 2017 , we 53 generated over 75 % of our revenue from individuals and organizations that were customers in 2016 , with the remainder of our revenue coming from new customers . cost of revenue decreased for the year ended december 31 , 2017 compared to the prior year , primarily due to a $ 2.5 million decrease in amortization of developed technology due to the de-recognition of acquired intangibles , a $ 2.0 million decrease in external sample costs as we generally ceased offering our non-self-serve version of our surveymonkey audience solution at the end of the second quarter of 2017 , a $ 2.9 million decrease in personnel costs due to a decrease in headcount and a $ 1.2 million decrease in external services . these decreases were partially offset by increases of $ 2.2 million in the amortization of capitalized software , $ 0.7 million in facilities costs and $ 0.6 million in payment processing fees due to increased sales . as a result of the increase in our revenue and the decrease in our cost of revenue , our gross margin increased for the year ended december 31 , 2017 as compared to the prior year . research and development year ended december 31 , ( dollars in thousands ) 2017 2016 change % change research and development $ 53,660 $ 37,985 $ 15,675 41 % research and development expenses increased for the year ended december 31 , 2017 compared to the prior year primarily due to an increase of $ 9.7 million in personnel costs due to headcount growth , a $ 2.6 million decrease in the software development costs that qualified for capitalization and a $ 3.7 million increase in facilities costs related to the relocation of our headquarters . these increases were partially offset by acquisition-related deferred compensation becoming fully amortized in 2016. sales and marketing year ended december 31 , ( dollars in thousands ) 2017 2016 change % change sales and marketing $ 73,511 $ 73,970 $ ( 459 ) ( 1 ) % sales and marketing expenses decreased for the year ended december 31 , 2017 compared to the prior year , primarily due to decreases of $ 5.0 million in acquisition-related expenses due to deferred compensation related to past acquisitions becoming fully amortized in 2016 , $ 1.8 million in intangible asset amortization due to certain acquired intangible assets becoming fully amortized in 2016 , $ 1.0 million in commissions expense related to our non-self-serve version of surveymonkey audience solution , which we generally ceased offering at the end
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2,633 | in may 2013 , the speed of ibiolaunch production was demonstrated when a third party laboratory using the ibiolaunch platform was able , in a 21 day period from receipt of antigen sequence information to purification of recombinant protein , to successfully produce a vaccine candidate for the newly emerged h7n9 influenza virus . we believe the successful production of this vaccine candidate demonstrates , among other things , that it is possible to utilize the ibiolaunch platform to produce vaccine doses for emergency use against pandemic and bioterrorism threats in weeks rather than the months necessary with the use of engineered or attenuated virus strains . further , we believe that the capital investment required to construct facilities that will manufacture proteins on the ibiolaunch platform will be substantially less than the capital investment which would be required for the construction of similar capacity facilities utilizing conventional manufacturing methods dependent upon animal cells , bacterial fermenters and chicken eggs . additionally , operating costs in a manufacturing facility using the ibiolaunch platform are expected to be reduced significantly in comparison to conventional manufacturing processes due to the rapid nature of the ibiolaunch production cycle and the elimination of the expenses associated with the operation and maintenance of bioreactors , fermenters , sterile liquid handling systems and other expensive equipment which is not required in connection with the use of the ibiolaunch platform . the ability of the ibiolaunch platform to manufacture proteins that are difficult or impossible to produce on a commercially practicable basis with conventional manufacturing systems has been demonstrated by the production of antigens for vaccine candidates for both hookworm and malaria . these ibiolaunch-produced vaccine candidates are being developed by the sabin institute and the bill and melinda gates foundation , respectively . phase 1 clinical trials for each have commenced . in addition to the clinical development of these vaccine candidates , bio-manguinhos/fiocruz , or fiocruz , a unit of the oswaldo cruz foundation , a central agency of the ministry of health of brazil , is sponsoring the development an ibiolaunch-produced yellow fever vaccine to replace the vaccine it currently makes in chicken eggs for the populations of brazil and more than 20 other nations . these advances are occurring subsequent to the demonstration of safety of ibiolaunch-produced vaccine candidates against each of the h1n1 “ swine ” flu virus and the h5n1 avian flu virus in successfully completed phase 1 clinical trials . we developed our ibiomodulator technology based on the use of a modified form of the cellulose degrading enzyme lichenase , or lickm , from clostridium thermocellum , a thermophilic and anaerobic bacterium . ibiomodulator enables an adjuvant component to be fused directly to preferred recombinant antigens to create a single protein for use in vaccine applications . multiple proteins or antigenic domains of proteins can be fused to various portions of lickm to enhance vaccine performance . the ibiomodulator platform has been shown to be applicable to a range of vaccine proteins and can significantly modify the immune response to a vaccine in two important ways . animal efficacy studies have demonstrated that it can increase the strength of the initial immune response to a vaccine antigen ( as measured by antibody titer ) and also extend the duration of the immune response . these results suggest the possibility that use of the ibiomodulator platform may lower vaccine antigen requirements and enable fewer doses to establish prolonged protective immunity . we believe that the ability to provide better immune response and longer-term protection with fewer or zero booster inoculations would add significant value to a vaccine by reducing the overall costs and logistical difficulties of its use . our near-term focus is to realize two key objectives : ( 1 ) the establishment of additional business arrangements pursuant to which commercial , government and not-for-profit licensees will utilize ibiolaunch and ibiomodulator in connection with the production and development of therapeutic proteins and vaccine products ; and ( 2 ) the further development of select product candidates based upon or enhanced by our technology platforms . these objectives are the core components of our strategy to commercialize the proprietary technology we have developed and validated . our strategy to engage in partnering and out-licensing of our technology platforms seeks to preserve the opportunity for ibio to share in the successful development and commercialization of product candidates by our licensees while enhancing our own capital and financial resources for development , alone or through commercial alliances with others , of high-potential product candidates based upon our platforms . in addition to financial resources we may receive in connection with the license of our platform technologies , we believe that successful development by third party licensees of ibiolaunch-derived and ibiomodulator-enhanced product candidates will further validate our technology , increase awareness of the advantages that may be realized by the use of such platforms and promote broader adoption of our technologies by additional third parties . the advancement of ibiolaunch-derived and ibiomodulator-enhanced product candidates is a key element of our strategy . we believe that selecting and developing products which individually have substantial commercial value and are representative of classes of pharmaceuticals that can be successfully produced using either or both of our technology platforms will allow us to maximize the near and longer term value of each platform while exploiting individual product opportunities . to realize this result , we are currently advancing designated product candidates through the preclinical phase of development and undertaking the studies required for submission of investigational new drug applications , or inds . the most advanced product candidate we are currently internally advancing through preclinical ind enabling studies is a proprietary recombinant protein we call ibio-cfb03 for treatment of idiopathic pulmonary fibrosis , systemic sclerosis , and potentially other fibrotic diseases . story_separator_special_tag to the extent that we anticipate the opportunity to realize additional value , we may elect to further the development of this or other product candidates through the early stages of clinical development before seeking to license the product candidate to other industry participants for late stage clinical development and if successful , commercialization . 29 results of operations revenue gross revenue for 2015 and 2014 was approximately $ 1.85 million and $ 205,000 , respectively . revenue has been attributable to technology services provided to fiocruz in connection with the development by fiocruz of a yellow fever vaccine using our ibiolaunch technology . to fulfill our obligations , we engage fraunhofer usa inc. as a subcontractor to perform the services required . during 2013 , the company , fiocruz and fraunhofer were awaiting approval by the brazilian government of a contract amendment reflecting the agreed modifications to the work plan . during this waiting period , no revenues were recognized by the company in connection with services provided to fiocruz through the subcontract arrangement with fraunhofer . in june 2014 , the company , fiocruz and fraunhofer amended their collaboration and license agreement reflecting the agreed modifications to the work plan and work was resumed by fraunhofer for the company to continue development of a yellow fever vaccine using the company 's ibiolaunch technology . research and development expenses research and development expenses for 2015 were $ 3.5 million . research and development expenses for 2014 were approximately ( $ 150,000 ) . however , research and development expenses for 2014 included ( i ) a credit of $ 1.04 million resulting from the reversal of expenses accrued through june 30 , 2013 under the tta prior to the settlement agreement with fraunhofer completed in september 2013 and ( ii ) the reversal of expenses totaling $ 1.007 million incurred during 2013 as the result of the amendment discussed above . adjusting for this , research and development spending was approximately $ 1.9 million for 2014 , an increase of approximately $ 1.6 million . the increase was primarily related to the modifications to the work plan described above . general and administrative expenses general and administrative expenses for 2015 were approximately $ 5.0 million , as compared to approximately $ 4.2 million for 2014. however , general and administrative expenses for the prior year included ( i ) a credit of $ 700,000 resulting from the reversal of royalty expenses accrued through june 30 , 2013 under the tta prior to the settlement agreement with fraunhofer completed in september 2013 and ( ii ) the write-off of an accounts receivable of $ 1.007 million recorded in 2013 as a result of the amendment discussed above . adjusting for this , general and administrative spending was approximately $ 3.9 million for 2014 , an increase in the current period of approximately $ 1.1 million over the adjusted results of 2014. the increase is attributable primarily to legal fees . general and administrative expenses principally include officer and employee salaries and benefits , legal and accounting fees , insurance , consulting services , investor and public relations services , and other costs associated with being a publicly traded company . other income ( expense ) other income for 2015 was approximately $ 41,000 , as compared to other income of approximately $ 174,000 for 2014. however , other income for the prior period included a credit of $ 122,000 resulting from the reversal in interest expense accrued through june 30 , 2013 under the tta prior to the settlement agreement with fraunhofer completed in september 2013. adjusting for this , other income was approximately $ 52,000 for the prior period . story_separator_special_tag text-indent : 0.5in `` > our financial statements are presented in accordance with accounting principles that are generally accepted in the u.s. ( “ u.s . gaap ” ) . all applicable u.s. gaap accounting standards effective as of june 30 , 2015 have been taken into consideration in preparing the financial statements . the preparation financial statements requires estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , expenses and related disclosures . some of those estimates are subjective and complex , and , consequently , actual results could differ from those estimates . the following accounting policies and estimates have been highlighted as significant because changes to certain judgments and assumptions inherent in these policies could affect our financial statements . 31 we base our estimates , to the extent possible , on historical experience . historical information is modified as appropriate based on current business factors and various assumptions that we believe are necessary to form a basis for making judgments about the carrying value of assets and liabilities . we evaluate our estimates on an ongoing basis and make changes when necessary . actual results could differ from our estimates . intangible assets the company accounts for intangible assets at their historical cost and records amortization utilizing the straight-line method based upon their estimated useful lives . patents are amortized over a period of ten years and other intellectual property is amortized over a period from 16 to 23 years . the company reviews the carrying value of its intangible assets for impairment whenever events or changes in business circumstances indicate the carrying amount of such assets may not be fully recoverable . evaluating for impairment requires judgment , and recoverability is assessed by comparing the projected undiscounted net cash flows of the assets over the remaining useful life to the carrying amount . impairments , if any , are based on the excess of the carrying amount over the fair value of the assets . revenue recognition the company recognizes revenue when persuasive evidence of an arrangement exists , delivery has occurred , the fee is fixed or determinable , and collectability is reasonably assured . deferred revenue represents billings to a customer to whom the services have
| liquidity and capital resources as of june 30 , 2015 , we had cash of $ 9.5 million as compared to $ 3.6 million as of june 30 , 2014 . 30 net cash used in operating activities net cash used in operating activities was $ 4.7 million . the decrease in cash was primarily attributable to funding the loss for the period . net cash used in investing activities net cash used in investing activities was approximately $ 215,000. cash used in investing activities was attributable to additions to intangible assets of $ 202,000 and purchases of fixed assets for ibio brazil of $ 13,000. net cash provided by financing activities net cash provided by financing activities was $ 10.9 million . aspire capital purchased 8,768,806 shares of common stock for $ 10 million pursuant to the terms of the common stock purchase agreement entered into with aspire capital on august 25 , 2014 ( the “ 2014 aspire purchase agreement ” ) , fulfilling its commitment under the 2014 aspire purchase agreement . in addition , the company issued 1,663,000 shares of common stock for the exercise of warrants and received proceeds of approximately $ 867,000. on may 15 , 2015 , the company entered into a common stock purchase agreement ( the “ 2015 aspire purchase agreement ” ) with aspire capital described under item 1. business – overview – recent business highlights , pursuant to which the company has the option to require aspire capital to purchase up to an aggregate of $ 15.0 million of shares of its common stock upon and subject to the terms of the 2015 aspire purchase agreement . as of the date of the filing of this report , aspire capital has not purchased any shares under 2015 aspire purchase agreement .
| 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 june 30 , 2015 , we had cash of $ 9.5 million as compared to $ 3.6 million as of june 30 , 2014 . 30 net cash used in operating activities net cash used in operating activities was $ 4.7 million . the decrease in cash was primarily attributable to funding the loss for the period . net cash used in investing activities net cash used in investing activities was approximately $ 215,000. cash used in investing activities was attributable to additions to intangible assets of $ 202,000 and purchases of fixed assets for ibio brazil of $ 13,000. net cash provided by financing activities net cash provided by financing activities was $ 10.9 million . aspire capital purchased 8,768,806 shares of common stock for $ 10 million pursuant to the terms of the common stock purchase agreement entered into with aspire capital on august 25 , 2014 ( the “ 2014 aspire purchase agreement ” ) , fulfilling its commitment under the 2014 aspire purchase agreement . in addition , the company issued 1,663,000 shares of common stock for the exercise of warrants and received proceeds of approximately $ 867,000. on may 15 , 2015 , the company entered into a common stock purchase agreement ( the “ 2015 aspire purchase agreement ” ) with aspire capital described under item 1. business – overview – recent business highlights , pursuant to which the company has the option to require aspire capital to purchase up to an aggregate of $ 15.0 million of shares of its common stock upon and subject to the terms of the 2015 aspire purchase agreement . as of the date of the filing of this report , aspire capital has not purchased any shares under 2015 aspire purchase agreement .
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Suspicious Activity Report : in may 2013 , the speed of ibiolaunch production was demonstrated when a third party laboratory using the ibiolaunch platform was able , in a 21 day period from receipt of antigen sequence information to purification of recombinant protein , to successfully produce a vaccine candidate for the newly emerged h7n9 influenza virus . we believe the successful production of this vaccine candidate demonstrates , among other things , that it is possible to utilize the ibiolaunch platform to produce vaccine doses for emergency use against pandemic and bioterrorism threats in weeks rather than the months necessary with the use of engineered or attenuated virus strains . further , we believe that the capital investment required to construct facilities that will manufacture proteins on the ibiolaunch platform will be substantially less than the capital investment which would be required for the construction of similar capacity facilities utilizing conventional manufacturing methods dependent upon animal cells , bacterial fermenters and chicken eggs . additionally , operating costs in a manufacturing facility using the ibiolaunch platform are expected to be reduced significantly in comparison to conventional manufacturing processes due to the rapid nature of the ibiolaunch production cycle and the elimination of the expenses associated with the operation and maintenance of bioreactors , fermenters , sterile liquid handling systems and other expensive equipment which is not required in connection with the use of the ibiolaunch platform . the ability of the ibiolaunch platform to manufacture proteins that are difficult or impossible to produce on a commercially practicable basis with conventional manufacturing systems has been demonstrated by the production of antigens for vaccine candidates for both hookworm and malaria . these ibiolaunch-produced vaccine candidates are being developed by the sabin institute and the bill and melinda gates foundation , respectively . phase 1 clinical trials for each have commenced . in addition to the clinical development of these vaccine candidates , bio-manguinhos/fiocruz , or fiocruz , a unit of the oswaldo cruz foundation , a central agency of the ministry of health of brazil , is sponsoring the development an ibiolaunch-produced yellow fever vaccine to replace the vaccine it currently makes in chicken eggs for the populations of brazil and more than 20 other nations . these advances are occurring subsequent to the demonstration of safety of ibiolaunch-produced vaccine candidates against each of the h1n1 “ swine ” flu virus and the h5n1 avian flu virus in successfully completed phase 1 clinical trials . we developed our ibiomodulator technology based on the use of a modified form of the cellulose degrading enzyme lichenase , or lickm , from clostridium thermocellum , a thermophilic and anaerobic bacterium . ibiomodulator enables an adjuvant component to be fused directly to preferred recombinant antigens to create a single protein for use in vaccine applications . multiple proteins or antigenic domains of proteins can be fused to various portions of lickm to enhance vaccine performance . the ibiomodulator platform has been shown to be applicable to a range of vaccine proteins and can significantly modify the immune response to a vaccine in two important ways . animal efficacy studies have demonstrated that it can increase the strength of the initial immune response to a vaccine antigen ( as measured by antibody titer ) and also extend the duration of the immune response . these results suggest the possibility that use of the ibiomodulator platform may lower vaccine antigen requirements and enable fewer doses to establish prolonged protective immunity . we believe that the ability to provide better immune response and longer-term protection with fewer or zero booster inoculations would add significant value to a vaccine by reducing the overall costs and logistical difficulties of its use . our near-term focus is to realize two key objectives : ( 1 ) the establishment of additional business arrangements pursuant to which commercial , government and not-for-profit licensees will utilize ibiolaunch and ibiomodulator in connection with the production and development of therapeutic proteins and vaccine products ; and ( 2 ) the further development of select product candidates based upon or enhanced by our technology platforms . these objectives are the core components of our strategy to commercialize the proprietary technology we have developed and validated . our strategy to engage in partnering and out-licensing of our technology platforms seeks to preserve the opportunity for ibio to share in the successful development and commercialization of product candidates by our licensees while enhancing our own capital and financial resources for development , alone or through commercial alliances with others , of high-potential product candidates based upon our platforms . in addition to financial resources we may receive in connection with the license of our platform technologies , we believe that successful development by third party licensees of ibiolaunch-derived and ibiomodulator-enhanced product candidates will further validate our technology , increase awareness of the advantages that may be realized by the use of such platforms and promote broader adoption of our technologies by additional third parties . the advancement of ibiolaunch-derived and ibiomodulator-enhanced product candidates is a key element of our strategy . we believe that selecting and developing products which individually have substantial commercial value and are representative of classes of pharmaceuticals that can be successfully produced using either or both of our technology platforms will allow us to maximize the near and longer term value of each platform while exploiting individual product opportunities . to realize this result , we are currently advancing designated product candidates through the preclinical phase of development and undertaking the studies required for submission of investigational new drug applications , or inds . the most advanced product candidate we are currently internally advancing through preclinical ind enabling studies is a proprietary recombinant protein we call ibio-cfb03 for treatment of idiopathic pulmonary fibrosis , systemic sclerosis , and potentially other fibrotic diseases . story_separator_special_tag to the extent that we anticipate the opportunity to realize additional value , we may elect to further the development of this or other product candidates through the early stages of clinical development before seeking to license the product candidate to other industry participants for late stage clinical development and if successful , commercialization . 29 results of operations revenue gross revenue for 2015 and 2014 was approximately $ 1.85 million and $ 205,000 , respectively . revenue has been attributable to technology services provided to fiocruz in connection with the development by fiocruz of a yellow fever vaccine using our ibiolaunch technology . to fulfill our obligations , we engage fraunhofer usa inc. as a subcontractor to perform the services required . during 2013 , the company , fiocruz and fraunhofer were awaiting approval by the brazilian government of a contract amendment reflecting the agreed modifications to the work plan . during this waiting period , no revenues were recognized by the company in connection with services provided to fiocruz through the subcontract arrangement with fraunhofer . in june 2014 , the company , fiocruz and fraunhofer amended their collaboration and license agreement reflecting the agreed modifications to the work plan and work was resumed by fraunhofer for the company to continue development of a yellow fever vaccine using the company 's ibiolaunch technology . research and development expenses research and development expenses for 2015 were $ 3.5 million . research and development expenses for 2014 were approximately ( $ 150,000 ) . however , research and development expenses for 2014 included ( i ) a credit of $ 1.04 million resulting from the reversal of expenses accrued through june 30 , 2013 under the tta prior to the settlement agreement with fraunhofer completed in september 2013 and ( ii ) the reversal of expenses totaling $ 1.007 million incurred during 2013 as the result of the amendment discussed above . adjusting for this , research and development spending was approximately $ 1.9 million for 2014 , an increase of approximately $ 1.6 million . the increase was primarily related to the modifications to the work plan described above . general and administrative expenses general and administrative expenses for 2015 were approximately $ 5.0 million , as compared to approximately $ 4.2 million for 2014. however , general and administrative expenses for the prior year included ( i ) a credit of $ 700,000 resulting from the reversal of royalty expenses accrued through june 30 , 2013 under the tta prior to the settlement agreement with fraunhofer completed in september 2013 and ( ii ) the write-off of an accounts receivable of $ 1.007 million recorded in 2013 as a result of the amendment discussed above . adjusting for this , general and administrative spending was approximately $ 3.9 million for 2014 , an increase in the current period of approximately $ 1.1 million over the adjusted results of 2014. the increase is attributable primarily to legal fees . general and administrative expenses principally include officer and employee salaries and benefits , legal and accounting fees , insurance , consulting services , investor and public relations services , and other costs associated with being a publicly traded company . other income ( expense ) other income for 2015 was approximately $ 41,000 , as compared to other income of approximately $ 174,000 for 2014. however , other income for the prior period included a credit of $ 122,000 resulting from the reversal in interest expense accrued through june 30 , 2013 under the tta prior to the settlement agreement with fraunhofer completed in september 2013. adjusting for this , other income was approximately $ 52,000 for the prior period . story_separator_special_tag text-indent : 0.5in `` > our financial statements are presented in accordance with accounting principles that are generally accepted in the u.s. ( “ u.s . gaap ” ) . all applicable u.s. gaap accounting standards effective as of june 30 , 2015 have been taken into consideration in preparing the financial statements . the preparation financial statements requires estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , expenses and related disclosures . some of those estimates are subjective and complex , and , consequently , actual results could differ from those estimates . the following accounting policies and estimates have been highlighted as significant because changes to certain judgments and assumptions inherent in these policies could affect our financial statements . 31 we base our estimates , to the extent possible , on historical experience . historical information is modified as appropriate based on current business factors and various assumptions that we believe are necessary to form a basis for making judgments about the carrying value of assets and liabilities . we evaluate our estimates on an ongoing basis and make changes when necessary . actual results could differ from our estimates . intangible assets the company accounts for intangible assets at their historical cost and records amortization utilizing the straight-line method based upon their estimated useful lives . patents are amortized over a period of ten years and other intellectual property is amortized over a period from 16 to 23 years . the company reviews the carrying value of its intangible assets for impairment whenever events or changes in business circumstances indicate the carrying amount of such assets may not be fully recoverable . evaluating for impairment requires judgment , and recoverability is assessed by comparing the projected undiscounted net cash flows of the assets over the remaining useful life to the carrying amount . impairments , if any , are based on the excess of the carrying amount over the fair value of the assets . revenue recognition the company recognizes revenue when persuasive evidence of an arrangement exists , delivery has occurred , the fee is fixed or determinable , and collectability is reasonably assured . deferred revenue represents billings to a customer to whom the services have
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2,634 | estimating the allowance for doubtful accounts and contract losses . we make estimates of our ability to collect accounts receivable and our unbilled but recognized work-in-process . in circumstances where we are aware of a specific customer 's inability to meet its financial obligations to us or for disputes with customers that affect our ability to fully collect our accounts receivable and unbilled work-in-process , we record a specific allowance to reduce the net recognized receivable to the amount we reasonably believe will be collected . for all other customers we recognize allowances for doubtful accounts and contract losses taking into consideration factors such as historical write-offs , customer concentration , customer credit-worthiness , current economic conditions , and aging of amounts due . 21 the following table sets forth , for the periods indicated , the percentage of revenues of certain items in our consolidated statements of income and the percentage increase ( decrease ) in the dollar amount of such items year to year : replace_table_token_3_th executive summary revenues for fiscal 2015 increased 3 % and revenues before reimbursements increased 2 % as compared to the prior year . the increase in revenues before reimbursements was due to an increase in billable hours and an increase in billing rates . we experienced demand for our consulting services from a diverse set of clients for both reactive and proactive projects . during fiscal 2015 , we experienced demand for our reactive services performing high profile accident and failure investigations and evaluating potentially significant product recalls . we also experienced demand for our proactive consulting services , performing design evaluations of consumer electronics and medical devices in addition to regulatory consulting for the chemical and food industries . during fiscal 2015 , we had notable performances in several practices including our materials & corrosion engineering , biomedical engineering , and polymer science & materials chemistry practices , as well as our infrastructure group . we experienced strong demand from the consumer electronics industry , as our clients broadened their product offerings and needed assistance with the use of new materials . we also continued to assist clients in the biomedical industry with regulatory approvals and assessing the field performance of their products . our infrastructure group benefited from increased commercial construction and infrastructure spending . the low growth rate in revenues was due to one of our major investigations in our environmental and health segment ending in july of 2015 and a continued step down in the level of activity in our technology development practice due to constraints on defense spending and the withdrawal of united states and united kingdom combat troops from afghanistan . the increase in revenues before reimbursements and low expense growth resulted in a 7 % increase in net income to $ 43,599,000 during fiscal 2015 as compared to $ 40,701,000 during the prior year . diluted earnings per share increased to $ 1.60 per share as compared to $ 1.47 during the prior year due to the increase in net income and the decrease to our share count from our ongoing share repurchase program . 22 we remain focused on selectively adding top talent and developing the skills necessary to expand upon our market position , providing clients with in-depth scientific research and analysis to determine what happened and how to prevent failures or exposures in the future , capitalizing on emerging growth areas , managing other operating expenses , generating cash from operations , maintaining a strong balance sheet and undertaking activities such as share repurchases and dividends to enhance shareholder value . overview of the year ended january 1 , 2016 our revenues consist of professional fees earned on consulting engagements , fees for use of our equipment and facilities , and reimbursements for outside direct expenses associated with the services performed that are billed to our clients . we operate on a 52-53 week fiscal year with each year ending on the friday closest to december 31 st . the fiscal years ended january 1 , 2016 and january 2 , 2015 included 52 weeks of activity . the fiscal year ended january 3 , 2014 included 53 weeks of activity . fiscal 2016 will end on friday , december 30 , 2016. during fiscal 2015 , billable hours increased 1.6 % to 1,125,000 as compared to 1,107,000 during fiscal 2014. the increase in billable hours was due to continued demand for our proactive and reactive consulting services . our utilization was 72 % for fiscal 2015 and 2014. technical full-time equivalent employees increased 1.3 % to 751 during fiscal 2015 as compared to 741 during fiscal 2014 due to our recruiting and retention efforts . we continue to selectively hire key talent to expand our capabilities . fiscal years ended january 1 , 2016 , and january 2 , 2015 revenues replace_table_token_4_th the increase in revenues for our engineering and other scientific segment was due to an increase in billable hours and an increase in billing rates . during fiscal 2015 , billable hours for this segment increased by 5.2 % to 835,000 as compared to 794,000 during fiscal 2014. the increase was due to demand for services in our materials & corrosion engineering , biomedical engineering , polymer science & materials chemistry practices , as well as our infrastructure group . utilization increased to 75 % for fiscal 2015 as compared to 74 % for fiscal 2014. technical full-time equivalents increased 3.5 % to 537 for fiscal 2015 from 519 for fiscal 2014 due to our recruiting and retention efforts . the decrease in revenues from our environmental and health segment was due to a decrease in billable hours . story_separator_special_tag 24 income taxes replace_table_token_5_th the decrease in our effective tax rate was due to an increase in foreign earnings in jurisdictions with lower income tax rates and a decrease in state income taxes . fiscal years ended january 2 , 2015 , and january 3 , 2014 revenues replace_table_token_6_th the increase in revenues for our engineering and other scientific segment was due to an increase in billable hours and an increase in billing rates partially offset by fiscal 2014 having one less week of activity than fiscal 2013. during fiscal 2014 , billable hours for this segment increased by 2.1 % to 794,000 as compared to 778,000 during fiscal 2013. the increase was due to demand for services in our materials & corrosion engineering , biomedical engineering , polymer science & materials chemistry , human factors , and construction consulting practices . utilization was 74 % for both fiscal 2014 and fiscal 2013. technical full-time equivalents increased 4.6 % to 519 for fiscal 2014 from 496 for fiscal 2013 due to our recruiting and retention efforts . the increase in revenues from our environmental and health segment was due to an increase in billable hours and an increase in billing rates partially offset by fiscal 2014 having one less week of activity than fiscal 2013. during fiscal 2014 , billable hours for this segment increased by 1.3 % to 313,000 as compared to 309,000 during fiscal 2013. utilization increased to 68 % for fiscal 2014 as compared to 65 % for fiscal 2013. the increase in billable hours and utilization was due to demand for our services in our environmental sciences and ecological sciences practices . technical full-time equivalents were 222 during fiscal 2014 as compared to 223 for fiscal 2013. compensation and related expenses fiscal years percent ( in thousands except percentages ) 2014 2013 change compensation and related expenses $ 183,533 $ 184,084 ( 0.3 ) % percentage of total revenues 60.2 % 62.2 % the decrease in compensation and related expenses during fiscal 2014 was due to a change in the value of assets associated with our deferred compensation plan partially offset by an increase in payroll and bonus expense . during fiscal 2014 , deferred compensation expense decreased $ 3,519,000 with a corresponding decrease to other income ( expense ) , net , as compared with the prior year due to the change in value of assets associated with our deferred compensation plan . this decrease consisted of an increase in the value of the plan assets of $ 2,525,000 during fiscal 2014 as compared to an increase in the value of the plan assets of $ 6,044,000 during fiscal 2013. payroll increased $ 1,657,000 due to a 3.1 % increase in technical full-time equivalent employees and the impact of our annual salary increases partially offset by fiscal 2014 having one less week of activity than fiscal 2013. bonuses increased $ 1,503,000 due to a corresponding increase in profitability . other operating expenses fiscal years percent ( in thousands except percentages ) 2014 2013 change other operating expenses $ 26,285 $ 25,299 3.9 % percentage of total revenues 8.6 % 8.5 % other operating expenses include facilities-related costs , technical materials , computer-related expenses and depreciation and amortization of property , equipment and leasehold improvements . the increase in other operating expenses was primarily due to an increase in occupancy expense of $ 514,000 and an increase in depreciation and amortization of $ 454,000. the increases in occupancy expense and depreciation and amortization were due to the continued expansion of our facilities to accommodate the increase in technical full-time equivalent employees . 25 reimbursable expenses fiscal years percent ( in thousands except percentages ) 2014 2013 change reimbursable expenses $ 15,495 $ 16,125 ( 3.9 ) % percentage of total revenues 5.1 % 5.4 % the decrease in reimbursable expenses was primarily due to a decrease in project-related costs in our technology development practice in our engineering and other scientific segment . the amount of reimbursable expenses will vary from year to year depending on the nature of our projects . general and administrative expenses fiscal years percent ( in thousands except percentages ) 2014 2013 change general and administrative expenses $ 15,842 $ 14,714 7.7 % percentage of total revenues 5.2 % 5.0 % the increase in general and administrative expenses during fiscal 2014 was primarily due to an increase in travel and meals of $ 561,000 and an increase in contributions of $ 506,000. the increase in travel and meals was due to a firm-wide managers ' meeting held during the third quarter of 2014. other income ( expense ) , net fiscal years percent ( in thousands except percentages ) 2014 2013 change other income and expense , net $ 4,416 $ 7,999 ( 44.8 ) % percentage of total revenues 1.4 % 2.7 % other income ( expense ) , net , consists primarily of interest income earned on available cash , cash equivalents and short-term investments , changes in the value of assets associated with our deferred compensation plan and rental income from leasing excess space in our silicon valley facility . the decrease in other income ( expense ) , net , was primarily due to the change in value of assets associated with our deferred compensation plan . this change consisted of an increase in the value of the plan assets of $ 2,525,000 during fiscal 2014 as compared to an increase in the value of the plan assets of $ 6,044,000 during fiscal 2013. income taxes replace_table_token_7_th the increase in income taxes was due to a corresponding increase in pre-tax income . the increase in our effective tax rate was due to manufacturing deductions claimed in fiscal 2013. these manufacturing deductions were non-recurring . story_separator_special_tag information . generally , a non-gaap financial measure is a numerical measure of a company 's performance , financial position or cash flow that either excludes or includes amounts that are not normally
| liquidity and capital resources replace_table_token_8_th we financed our business in fiscal 2015 through available cash and cash flows from operating activities . we invest our excess cash in cash equivalents and short-term investments . as of january 1 , 2016 , our cash , cash equivalents and short-term investments were $ 171,593,000 compared to $ 154,403,000 at january 2 , 2015. we believe our existing balances of cash , cash equivalents and short-term investments will be sufficient to satisfy our working capital needs , capital expenditures , outstanding commitments , stock repurchases , dividends and other liquidity requirements over at least the next 12 months . generally , our net cash provided by operating activities is used to fund our day-to-day operating activities . first quarter operating cash requirements are generally higher due to payment of our annual bonuses accrued during the prior year . our largest source of operating cash flows is cash collections from our clients . our primary uses of cash from operating activities are for employee-related expenditures , leased facilities , taxes , and general operating expenses including marketing and travel . net cash provided by operating activities was $ 60.5 million for fiscal 2015 as compared to $ 48.3 million and $ 61.8 million in fiscal 2014 and 2013 , respectively . the increase in net cash provided by operating activities during fiscal 2015 as compared to fiscal 2014 was primarily due to an increase in cash receipts from clients . the decrease in net cash provided by operating activities during fiscal 2014 , as compared to fiscal 2013 , was due to a decrease in cash receipts from clients . accounts receivable increased during fiscal 2014 as compared to a decrease during fiscal 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.
```liquidity and capital resources replace_table_token_8_th we financed our business in fiscal 2015 through available cash and cash flows from operating activities . we invest our excess cash in cash equivalents and short-term investments . as of january 1 , 2016 , our cash , cash equivalents and short-term investments were $ 171,593,000 compared to $ 154,403,000 at january 2 , 2015. we believe our existing balances of cash , cash equivalents and short-term investments will be sufficient to satisfy our working capital needs , capital expenditures , outstanding commitments , stock repurchases , dividends and other liquidity requirements over at least the next 12 months . generally , our net cash provided by operating activities is used to fund our day-to-day operating activities . first quarter operating cash requirements are generally higher due to payment of our annual bonuses accrued during the prior year . our largest source of operating cash flows is cash collections from our clients . our primary uses of cash from operating activities are for employee-related expenditures , leased facilities , taxes , and general operating expenses including marketing and travel . net cash provided by operating activities was $ 60.5 million for fiscal 2015 as compared to $ 48.3 million and $ 61.8 million in fiscal 2014 and 2013 , respectively . the increase in net cash provided by operating activities during fiscal 2015 as compared to fiscal 2014 was primarily due to an increase in cash receipts from clients . the decrease in net cash provided by operating activities during fiscal 2014 , as compared to fiscal 2013 , was due to a decrease in cash receipts from clients . accounts receivable increased during fiscal 2014 as compared to a decrease during fiscal 2013 .
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Suspicious Activity Report : estimating the allowance for doubtful accounts and contract losses . we make estimates of our ability to collect accounts receivable and our unbilled but recognized work-in-process . in circumstances where we are aware of a specific customer 's inability to meet its financial obligations to us or for disputes with customers that affect our ability to fully collect our accounts receivable and unbilled work-in-process , we record a specific allowance to reduce the net recognized receivable to the amount we reasonably believe will be collected . for all other customers we recognize allowances for doubtful accounts and contract losses taking into consideration factors such as historical write-offs , customer concentration , customer credit-worthiness , current economic conditions , and aging of amounts due . 21 the following table sets forth , for the periods indicated , the percentage of revenues of certain items in our consolidated statements of income and the percentage increase ( decrease ) in the dollar amount of such items year to year : replace_table_token_3_th executive summary revenues for fiscal 2015 increased 3 % and revenues before reimbursements increased 2 % as compared to the prior year . the increase in revenues before reimbursements was due to an increase in billable hours and an increase in billing rates . we experienced demand for our consulting services from a diverse set of clients for both reactive and proactive projects . during fiscal 2015 , we experienced demand for our reactive services performing high profile accident and failure investigations and evaluating potentially significant product recalls . we also experienced demand for our proactive consulting services , performing design evaluations of consumer electronics and medical devices in addition to regulatory consulting for the chemical and food industries . during fiscal 2015 , we had notable performances in several practices including our materials & corrosion engineering , biomedical engineering , and polymer science & materials chemistry practices , as well as our infrastructure group . we experienced strong demand from the consumer electronics industry , as our clients broadened their product offerings and needed assistance with the use of new materials . we also continued to assist clients in the biomedical industry with regulatory approvals and assessing the field performance of their products . our infrastructure group benefited from increased commercial construction and infrastructure spending . the low growth rate in revenues was due to one of our major investigations in our environmental and health segment ending in july of 2015 and a continued step down in the level of activity in our technology development practice due to constraints on defense spending and the withdrawal of united states and united kingdom combat troops from afghanistan . the increase in revenues before reimbursements and low expense growth resulted in a 7 % increase in net income to $ 43,599,000 during fiscal 2015 as compared to $ 40,701,000 during the prior year . diluted earnings per share increased to $ 1.60 per share as compared to $ 1.47 during the prior year due to the increase in net income and the decrease to our share count from our ongoing share repurchase program . 22 we remain focused on selectively adding top talent and developing the skills necessary to expand upon our market position , providing clients with in-depth scientific research and analysis to determine what happened and how to prevent failures or exposures in the future , capitalizing on emerging growth areas , managing other operating expenses , generating cash from operations , maintaining a strong balance sheet and undertaking activities such as share repurchases and dividends to enhance shareholder value . overview of the year ended january 1 , 2016 our revenues consist of professional fees earned on consulting engagements , fees for use of our equipment and facilities , and reimbursements for outside direct expenses associated with the services performed that are billed to our clients . we operate on a 52-53 week fiscal year with each year ending on the friday closest to december 31 st . the fiscal years ended january 1 , 2016 and january 2 , 2015 included 52 weeks of activity . the fiscal year ended january 3 , 2014 included 53 weeks of activity . fiscal 2016 will end on friday , december 30 , 2016. during fiscal 2015 , billable hours increased 1.6 % to 1,125,000 as compared to 1,107,000 during fiscal 2014. the increase in billable hours was due to continued demand for our proactive and reactive consulting services . our utilization was 72 % for fiscal 2015 and 2014. technical full-time equivalent employees increased 1.3 % to 751 during fiscal 2015 as compared to 741 during fiscal 2014 due to our recruiting and retention efforts . we continue to selectively hire key talent to expand our capabilities . fiscal years ended january 1 , 2016 , and january 2 , 2015 revenues replace_table_token_4_th the increase in revenues for our engineering and other scientific segment was due to an increase in billable hours and an increase in billing rates . during fiscal 2015 , billable hours for this segment increased by 5.2 % to 835,000 as compared to 794,000 during fiscal 2014. the increase was due to demand for services in our materials & corrosion engineering , biomedical engineering , polymer science & materials chemistry practices , as well as our infrastructure group . utilization increased to 75 % for fiscal 2015 as compared to 74 % for fiscal 2014. technical full-time equivalents increased 3.5 % to 537 for fiscal 2015 from 519 for fiscal 2014 due to our recruiting and retention efforts . the decrease in revenues from our environmental and health segment was due to a decrease in billable hours . story_separator_special_tag 24 income taxes replace_table_token_5_th the decrease in our effective tax rate was due to an increase in foreign earnings in jurisdictions with lower income tax rates and a decrease in state income taxes . fiscal years ended january 2 , 2015 , and january 3 , 2014 revenues replace_table_token_6_th the increase in revenues for our engineering and other scientific segment was due to an increase in billable hours and an increase in billing rates partially offset by fiscal 2014 having one less week of activity than fiscal 2013. during fiscal 2014 , billable hours for this segment increased by 2.1 % to 794,000 as compared to 778,000 during fiscal 2013. the increase was due to demand for services in our materials & corrosion engineering , biomedical engineering , polymer science & materials chemistry , human factors , and construction consulting practices . utilization was 74 % for both fiscal 2014 and fiscal 2013. technical full-time equivalents increased 4.6 % to 519 for fiscal 2014 from 496 for fiscal 2013 due to our recruiting and retention efforts . the increase in revenues from our environmental and health segment was due to an increase in billable hours and an increase in billing rates partially offset by fiscal 2014 having one less week of activity than fiscal 2013. during fiscal 2014 , billable hours for this segment increased by 1.3 % to 313,000 as compared to 309,000 during fiscal 2013. utilization increased to 68 % for fiscal 2014 as compared to 65 % for fiscal 2013. the increase in billable hours and utilization was due to demand for our services in our environmental sciences and ecological sciences practices . technical full-time equivalents were 222 during fiscal 2014 as compared to 223 for fiscal 2013. compensation and related expenses fiscal years percent ( in thousands except percentages ) 2014 2013 change compensation and related expenses $ 183,533 $ 184,084 ( 0.3 ) % percentage of total revenues 60.2 % 62.2 % the decrease in compensation and related expenses during fiscal 2014 was due to a change in the value of assets associated with our deferred compensation plan partially offset by an increase in payroll and bonus expense . during fiscal 2014 , deferred compensation expense decreased $ 3,519,000 with a corresponding decrease to other income ( expense ) , net , as compared with the prior year due to the change in value of assets associated with our deferred compensation plan . this decrease consisted of an increase in the value of the plan assets of $ 2,525,000 during fiscal 2014 as compared to an increase in the value of the plan assets of $ 6,044,000 during fiscal 2013. payroll increased $ 1,657,000 due to a 3.1 % increase in technical full-time equivalent employees and the impact of our annual salary increases partially offset by fiscal 2014 having one less week of activity than fiscal 2013. bonuses increased $ 1,503,000 due to a corresponding increase in profitability . other operating expenses fiscal years percent ( in thousands except percentages ) 2014 2013 change other operating expenses $ 26,285 $ 25,299 3.9 % percentage of total revenues 8.6 % 8.5 % other operating expenses include facilities-related costs , technical materials , computer-related expenses and depreciation and amortization of property , equipment and leasehold improvements . the increase in other operating expenses was primarily due to an increase in occupancy expense of $ 514,000 and an increase in depreciation and amortization of $ 454,000. the increases in occupancy expense and depreciation and amortization were due to the continued expansion of our facilities to accommodate the increase in technical full-time equivalent employees . 25 reimbursable expenses fiscal years percent ( in thousands except percentages ) 2014 2013 change reimbursable expenses $ 15,495 $ 16,125 ( 3.9 ) % percentage of total revenues 5.1 % 5.4 % the decrease in reimbursable expenses was primarily due to a decrease in project-related costs in our technology development practice in our engineering and other scientific segment . the amount of reimbursable expenses will vary from year to year depending on the nature of our projects . general and administrative expenses fiscal years percent ( in thousands except percentages ) 2014 2013 change general and administrative expenses $ 15,842 $ 14,714 7.7 % percentage of total revenues 5.2 % 5.0 % the increase in general and administrative expenses during fiscal 2014 was primarily due to an increase in travel and meals of $ 561,000 and an increase in contributions of $ 506,000. the increase in travel and meals was due to a firm-wide managers ' meeting held during the third quarter of 2014. other income ( expense ) , net fiscal years percent ( in thousands except percentages ) 2014 2013 change other income and expense , net $ 4,416 $ 7,999 ( 44.8 ) % percentage of total revenues 1.4 % 2.7 % other income ( expense ) , net , consists primarily of interest income earned on available cash , cash equivalents and short-term investments , changes in the value of assets associated with our deferred compensation plan and rental income from leasing excess space in our silicon valley facility . the decrease in other income ( expense ) , net , was primarily due to the change in value of assets associated with our deferred compensation plan . this change consisted of an increase in the value of the plan assets of $ 2,525,000 during fiscal 2014 as compared to an increase in the value of the plan assets of $ 6,044,000 during fiscal 2013. income taxes replace_table_token_7_th the increase in income taxes was due to a corresponding increase in pre-tax income . the increase in our effective tax rate was due to manufacturing deductions claimed in fiscal 2013. these manufacturing deductions were non-recurring . story_separator_special_tag information . generally , a non-gaap financial measure is a numerical measure of a company 's performance , financial position or cash flow that either excludes or includes amounts that are not normally
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2,635 | 33 key financial metrics and drivers as discussed in the previous section , we utilize a portfolio of key financial metrics to manage the company , including gaap and non-gaap measures . as detailed below , we review revenues by type and by segment , or by major product line . we also review expenses by activity , which provides more transparency into how resources are being deployed . in addition , we utilize operating metrics including run rate , subscription sales and retention rate to analyze past performance and to provide insight into our latest reported portfolio of recurring business . in the discussion that follows , we provide certain variances excluding the impact of foreign currency exchange rate fluctuations . foreign currency exchange rate fluctuations reflect the difference between the current period results as reported compared to the current period results recalculated using the foreign currency exchange rates in effect for the comparable prior period . while operating revenues adjusted for the impact of foreign currency fluctuations includes asset-based fees that have been adjusted for the impact of foreign currency fluctuations , the underlying aum , which is the primary component of asset-based fees , is not adjusted for foreign currency fluctuations . approximately two-thirds of the aum are invested in securities denominated in currencies other than the u.s. dollar , and accordingly , any such impact is excluded from the disclosed foreign currency-adjusted variances . revenues our revenues are characterized by type , which broadly reflects the nature of how they are recognized or earned . our revenue types are recurring subscription , asset-based fees and non-recurring revenues . we also group our revenues by segment and provide the revenue type within each segment . recurring subscription revenues represent fees earned from clients primarily under renewable contracts and are generally recognized ratably over the term of the license or service pursuant to the contract terms . the fees are recognized as we provide the product and service to the client over the license period and are generally billed in advance , prior to the license start date . asset-based fees represent fees earned on the aum linked to our indexes from independent third-party sources or the most recently reported information provided by the client . asset-based fees also include revenues related to futures and options contracts linked to our indexes , which are primarily based on trading volumes . non-recurring revenues primarily represent fees earned on products and services where we do not have renewal contracts and primarily include revenues for providing historical data , certain implementation services and other special client requests , which are generally recognized at a point in time . operating expenses we group our operating expenses into the following activity categories : cost of revenues ; selling and marketing ; research and development ( “ r & d ” ) ; general and administrative ( “ g & a ” ) ; amortization of intangible assets ; and depreciation and amortization of property , equipment and leasehold improvements . costs are assigned to these activity categories based on the nature of the expense or , when not directly attributable , an estimated allocation based on the type of effort involved . 34 cost of revenues cost of revenues expenses consist of costs related to the production and servicing of our products and services and primarily includes related information technology costs , including data center , platform and infrastructure costs ; costs to acquire , produce and maintain market data information ; costs of research to support and maintain existing products ; costs of product management teams ; costs of client service and consultant teams to support customer needs ; as well as other support costs directly attributable to the cost of revenues including certain human resources , finance and legal costs . selling and marketing selling and marketing expenses consist of costs associated with acquiring new clients or selling new products or product renewals to existing clients and primarily includes the costs of our sales and marketing teams , as well as costs incurred in other groups associated with acquiring new business , including product management , research , technology and sales operations . research and development r & d expenses consist of costs to develop new or enhance existing products and costs to develop new or improved technology and service platforms for the delivery of our products and services and primarily include the costs of development , research , product management , project management and the technology support associated with these efforts . general and administrative g & a expenses consist of costs primarily related to finance operations , human resources , office of the ceo , legal , corporate technology , corporate development and certain other administrative costs that are not directly attributed , but are instead allocated , to a product or service . amortization of intangible assets amortization of intangible assets expense relates to definite-lived intangible assets arising from past acquisitions and internal capitalized software projects . intangibles arising from past acquisitions consist of customer relationships , trademarks and trade names , technology and software , proprietary processes and data and non-competition agreements . we amortize definite-lived intangible assets over their estimated useful lives . definite-lived intangible assets are tested for impairment when impairment indicators are present , and , if impaired , written down to fair value based on either discounted cash flows or appraised values . we have no indefinite-lived intangible assets . depreciation and amortization of property , equipment and leasehold improvements this category consists of expenses related to depreciating or amortizing the cost of furniture and fixtures , computer and related equipment and leasehold improvements over the estimated useful life of the assets . story_separator_special_tag depreciation and amortization of property , equipment and leasehold improvements depreciation and amortization of property , equipment and leasehold improvements for the year ended december 31 , 2019 and 2018 was $ 30.0 million and $ 31.3 million , respectively . other expense ( income ) , net other expense ( income ) , net for the year ended december 31 , 2019 increased 167.3 % to $ 152.4 million compared to $ 57.0 million for the year ended december 31 , 2018. the increase was primarily driven by the absence of the $ 46.6 million and $ 10.6 million of gains realized from the investorforce and fea divestitures , respectively , which occurred in 2018. the increase was also driven by the $ 16.8 million loss on extinguishment associated with the partial pre-maturity redemption of the 2024 senior notes which included approximately $ 13.1 million of call premium paid in accordance with the redemption prices set forth in the indenture and the write-off of approximately $ 3.7 million of unamortized costs associated with the 2024 senior notes . in addition , the increase also reflects higher interest expense associated with higher outstanding debt and higher foreign currency exchange losses . income taxes the provision for income tax decreased 67.5 % to $ 39.7 million for the year ended december 31 , 2019 compared to $ 122.0 million for the year ended december 31 , 2018. these amounts reflect effective tax rates of 6.6 % and 19.4 % for the years ended december 31 , 2019 and 2018 , respectively . the effective tax rate of 6.6 % for the year ended december 31 , 2019 reflects the impact of certain favorable discrete items totaling $ 85.7 million . these discrete items primarily relate to $ 66.6 million of excess tax benefits recognized upon vesting of the 2016 multi-year psus and $ 16.1 million of excess tax benefits on other share-based compensation recognized during the period . in addition , the effective tax rate was impacted by a beneficial geographic mix of earnings . the effective tax rate of 19.4 % for the year ended december 31 , 2018 reflects the impact of certain favorable discrete items totaling $ 31.9 million . these discrete items include $ 8.8 million of excess tax benefits related to stock-based compensation , $ 11.9 million related to the release of valuation allowances previously recorded on capital loss carryforwards and $ 11.2 million related to the final impact of tax reform . 42 net income as a result of the factors described above , net income for the year ended december 31 , 2019 increased 11.0 % to $ 563.6 million compared to $ 507.9 million for the year ended december 31 , 2018. adjusted ebitda the following table presents the calculation of the non-gaap adjusted ebitda measure for the years indicated : replace_table_token_12_th adjusted ebitda increased 10.1 % to $ 850.5 million for the year ended december 31 , 2019 compared to $ 772.4 million for the year ended december 31 , 2018. adjusted ebitda margin increased to 54.6 % for the year ended december 31 , 2019 compared to 53.9 % for the year ended december 31 , 2018. the increase in adjusted ebitda margin reflects a higher rate of growth in operating revenues as compared to the rate of growth of adjusted ebitda expenses . reconciliation of adjusted ebitda to net income and adjusted ebitda expenses to operating expenses the following table presents the reconciliation of adjusted ebitda to net income for the years indicated : replace_table_token_13_th 43 the following table presents the reconciliation of adjusted ebitda expenses to operating expenses for the years indicated : replace_table_token_14_th segment results the results for each of our three reportable segments for the years ended december 31 , 2019 and 2018 are presented below : index segment the following table presents the results for the index segment for the years indicated : replace_table_token_15_th revenues related to index products increased 10.2 % to $ 920.9 million for the year ended december 31 , 2019 compared to $ 835.5 million for the year ended december 31 , 2018. revenues from recurring subscriptions were up 11.2 % to $ 531.0 million for the year ended december 31 , 2019 compared to $ 477.6 million for the year ended december 31 , 2018. the increase was driven by strong growth in core developed market modules , factor and esg index products and emerging market modules . the impact of foreign currency exchange rate fluctuations on revenues from recurring subscriptions was negligible . 44 revenues from asset-based fees increased 7.5 % to $ 361.9 million for the year ended december 31 , 2019 compared to $ 336.6 million for the year ended december 31 , 2018. the increase in asset-based fees was primarily driven by an increase in revenues from exchange traded futures and options contracts linked to msci indexes . the increase in revenues from futures and options contracts was driven by approximately $ 5.0 million in additional fees associated with prior periods attributed to a retrospective price increase from a renegotiated contract entered into during the year ended december 31 , 2019 , as well as the cumulative impact of price and volume increases . the increase in revenues from asset-based fees was also driven by higher revenues from etfs linked to msci indexes , which was driven by a 7 . 6 % increase in average aum , partially offset by the impact of a change in product mix . in addition , the increase in revenues from asset-based fees was driven by higher revenues from non-etf passive products linked to msci indexes . the impact of foreign currency exchange rate fluctuations on revenues from asset-based fees was negligible . index segment adjusted ebitda expenses increased 10.2 % to $ 250.7 million for the year ended december 31 , 2019 compared to $ 227.6 million for the year ended december 31 , 2018 , reflecting higher expenses
| liquidity and capital resources we require capital to fund ongoing operations , internal growth initiatives and acquisitions . our primary sources of liquidity are cash flows generated from our operations , existing cash and cash equivalents and credit capacity under our existing credit facilities . in addition , we believe we have access to additional funding in the public and private markets . we intend to use these sources of liquidity to , among other things , service our existing and future debt obligations , fund our working capital requirements for capital expenditures , investments , acquisitions , dividend payments and repurchases of our common stock . in connection with our business strategy , we regularly evaluate acquisition and strategic partnership opportunities . we believe our liquidity , along with other financing alternatives , will provide the necessary capital to fund these transactions and achieve our planned growth . senior notes and credit agreement we have an aggregate of $ 3,100.0 million in senior unsecured notes ( collectively , the “ senior notes ” ) consisting of five discrete private placement offerings and entered into a $ 400.0 million revolving credit agreement with a syndicate of banks . see note 5 , “ commitments and contingencies , ” of the notes to consolidated financial statements included herein for additional information on our senior notes and revolving credit agreement . the senior notes and the revolving credit agreement are fully and unconditionally , and jointly and severally , guaranteed by our direct or indirect wholly-owned domestic subsidiaries that account for more than 5 % of our and our subsidiaries ' consolidated assets , other than certain excluded subsidiaries ( the “ subsidiary guarantors ” ) . amounts due under the revolving credit agreement are our and the subsidiary guarantors ' senior unsecured obligations and rank equally with the senior notes and any of our other unsecured , unsubordinated debt , senior to any of our subordinated debt and effectively subordinated to our secured debt to the extent of the assets securing such 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.
```liquidity and capital resources we require capital to fund ongoing operations , internal growth initiatives and acquisitions . our primary sources of liquidity are cash flows generated from our operations , existing cash and cash equivalents and credit capacity under our existing credit facilities . in addition , we believe we have access to additional funding in the public and private markets . we intend to use these sources of liquidity to , among other things , service our existing and future debt obligations , fund our working capital requirements for capital expenditures , investments , acquisitions , dividend payments and repurchases of our common stock . in connection with our business strategy , we regularly evaluate acquisition and strategic partnership opportunities . we believe our liquidity , along with other financing alternatives , will provide the necessary capital to fund these transactions and achieve our planned growth . senior notes and credit agreement we have an aggregate of $ 3,100.0 million in senior unsecured notes ( collectively , the “ senior notes ” ) consisting of five discrete private placement offerings and entered into a $ 400.0 million revolving credit agreement with a syndicate of banks . see note 5 , “ commitments and contingencies , ” of the notes to consolidated financial statements included herein for additional information on our senior notes and revolving credit agreement . the senior notes and the revolving credit agreement are fully and unconditionally , and jointly and severally , guaranteed by our direct or indirect wholly-owned domestic subsidiaries that account for more than 5 % of our and our subsidiaries ' consolidated assets , other than certain excluded subsidiaries ( the “ subsidiary guarantors ” ) . amounts due under the revolving credit agreement are our and the subsidiary guarantors ' senior unsecured obligations and rank equally with the senior notes and any of our other unsecured , unsubordinated debt , senior to any of our subordinated debt and effectively subordinated to our secured debt to the extent of the assets securing such debt .
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Suspicious Activity Report : 33 key financial metrics and drivers as discussed in the previous section , we utilize a portfolio of key financial metrics to manage the company , including gaap and non-gaap measures . as detailed below , we review revenues by type and by segment , or by major product line . we also review expenses by activity , which provides more transparency into how resources are being deployed . in addition , we utilize operating metrics including run rate , subscription sales and retention rate to analyze past performance and to provide insight into our latest reported portfolio of recurring business . in the discussion that follows , we provide certain variances excluding the impact of foreign currency exchange rate fluctuations . foreign currency exchange rate fluctuations reflect the difference between the current period results as reported compared to the current period results recalculated using the foreign currency exchange rates in effect for the comparable prior period . while operating revenues adjusted for the impact of foreign currency fluctuations includes asset-based fees that have been adjusted for the impact of foreign currency fluctuations , the underlying aum , which is the primary component of asset-based fees , is not adjusted for foreign currency fluctuations . approximately two-thirds of the aum are invested in securities denominated in currencies other than the u.s. dollar , and accordingly , any such impact is excluded from the disclosed foreign currency-adjusted variances . revenues our revenues are characterized by type , which broadly reflects the nature of how they are recognized or earned . our revenue types are recurring subscription , asset-based fees and non-recurring revenues . we also group our revenues by segment and provide the revenue type within each segment . recurring subscription revenues represent fees earned from clients primarily under renewable contracts and are generally recognized ratably over the term of the license or service pursuant to the contract terms . the fees are recognized as we provide the product and service to the client over the license period and are generally billed in advance , prior to the license start date . asset-based fees represent fees earned on the aum linked to our indexes from independent third-party sources or the most recently reported information provided by the client . asset-based fees also include revenues related to futures and options contracts linked to our indexes , which are primarily based on trading volumes . non-recurring revenues primarily represent fees earned on products and services where we do not have renewal contracts and primarily include revenues for providing historical data , certain implementation services and other special client requests , which are generally recognized at a point in time . operating expenses we group our operating expenses into the following activity categories : cost of revenues ; selling and marketing ; research and development ( “ r & d ” ) ; general and administrative ( “ g & a ” ) ; amortization of intangible assets ; and depreciation and amortization of property , equipment and leasehold improvements . costs are assigned to these activity categories based on the nature of the expense or , when not directly attributable , an estimated allocation based on the type of effort involved . 34 cost of revenues cost of revenues expenses consist of costs related to the production and servicing of our products and services and primarily includes related information technology costs , including data center , platform and infrastructure costs ; costs to acquire , produce and maintain market data information ; costs of research to support and maintain existing products ; costs of product management teams ; costs of client service and consultant teams to support customer needs ; as well as other support costs directly attributable to the cost of revenues including certain human resources , finance and legal costs . selling and marketing selling and marketing expenses consist of costs associated with acquiring new clients or selling new products or product renewals to existing clients and primarily includes the costs of our sales and marketing teams , as well as costs incurred in other groups associated with acquiring new business , including product management , research , technology and sales operations . research and development r & d expenses consist of costs to develop new or enhance existing products and costs to develop new or improved technology and service platforms for the delivery of our products and services and primarily include the costs of development , research , product management , project management and the technology support associated with these efforts . general and administrative g & a expenses consist of costs primarily related to finance operations , human resources , office of the ceo , legal , corporate technology , corporate development and certain other administrative costs that are not directly attributed , but are instead allocated , to a product or service . amortization of intangible assets amortization of intangible assets expense relates to definite-lived intangible assets arising from past acquisitions and internal capitalized software projects . intangibles arising from past acquisitions consist of customer relationships , trademarks and trade names , technology and software , proprietary processes and data and non-competition agreements . we amortize definite-lived intangible assets over their estimated useful lives . definite-lived intangible assets are tested for impairment when impairment indicators are present , and , if impaired , written down to fair value based on either discounted cash flows or appraised values . we have no indefinite-lived intangible assets . depreciation and amortization of property , equipment and leasehold improvements this category consists of expenses related to depreciating or amortizing the cost of furniture and fixtures , computer and related equipment and leasehold improvements over the estimated useful life of the assets . story_separator_special_tag depreciation and amortization of property , equipment and leasehold improvements depreciation and amortization of property , equipment and leasehold improvements for the year ended december 31 , 2019 and 2018 was $ 30.0 million and $ 31.3 million , respectively . other expense ( income ) , net other expense ( income ) , net for the year ended december 31 , 2019 increased 167.3 % to $ 152.4 million compared to $ 57.0 million for the year ended december 31 , 2018. the increase was primarily driven by the absence of the $ 46.6 million and $ 10.6 million of gains realized from the investorforce and fea divestitures , respectively , which occurred in 2018. the increase was also driven by the $ 16.8 million loss on extinguishment associated with the partial pre-maturity redemption of the 2024 senior notes which included approximately $ 13.1 million of call premium paid in accordance with the redemption prices set forth in the indenture and the write-off of approximately $ 3.7 million of unamortized costs associated with the 2024 senior notes . in addition , the increase also reflects higher interest expense associated with higher outstanding debt and higher foreign currency exchange losses . income taxes the provision for income tax decreased 67.5 % to $ 39.7 million for the year ended december 31 , 2019 compared to $ 122.0 million for the year ended december 31 , 2018. these amounts reflect effective tax rates of 6.6 % and 19.4 % for the years ended december 31 , 2019 and 2018 , respectively . the effective tax rate of 6.6 % for the year ended december 31 , 2019 reflects the impact of certain favorable discrete items totaling $ 85.7 million . these discrete items primarily relate to $ 66.6 million of excess tax benefits recognized upon vesting of the 2016 multi-year psus and $ 16.1 million of excess tax benefits on other share-based compensation recognized during the period . in addition , the effective tax rate was impacted by a beneficial geographic mix of earnings . the effective tax rate of 19.4 % for the year ended december 31 , 2018 reflects the impact of certain favorable discrete items totaling $ 31.9 million . these discrete items include $ 8.8 million of excess tax benefits related to stock-based compensation , $ 11.9 million related to the release of valuation allowances previously recorded on capital loss carryforwards and $ 11.2 million related to the final impact of tax reform . 42 net income as a result of the factors described above , net income for the year ended december 31 , 2019 increased 11.0 % to $ 563.6 million compared to $ 507.9 million for the year ended december 31 , 2018. adjusted ebitda the following table presents the calculation of the non-gaap adjusted ebitda measure for the years indicated : replace_table_token_12_th adjusted ebitda increased 10.1 % to $ 850.5 million for the year ended december 31 , 2019 compared to $ 772.4 million for the year ended december 31 , 2018. adjusted ebitda margin increased to 54.6 % for the year ended december 31 , 2019 compared to 53.9 % for the year ended december 31 , 2018. the increase in adjusted ebitda margin reflects a higher rate of growth in operating revenues as compared to the rate of growth of adjusted ebitda expenses . reconciliation of adjusted ebitda to net income and adjusted ebitda expenses to operating expenses the following table presents the reconciliation of adjusted ebitda to net income for the years indicated : replace_table_token_13_th 43 the following table presents the reconciliation of adjusted ebitda expenses to operating expenses for the years indicated : replace_table_token_14_th segment results the results for each of our three reportable segments for the years ended december 31 , 2019 and 2018 are presented below : index segment the following table presents the results for the index segment for the years indicated : replace_table_token_15_th revenues related to index products increased 10.2 % to $ 920.9 million for the year ended december 31 , 2019 compared to $ 835.5 million for the year ended december 31 , 2018. revenues from recurring subscriptions were up 11.2 % to $ 531.0 million for the year ended december 31 , 2019 compared to $ 477.6 million for the year ended december 31 , 2018. the increase was driven by strong growth in core developed market modules , factor and esg index products and emerging market modules . the impact of foreign currency exchange rate fluctuations on revenues from recurring subscriptions was negligible . 44 revenues from asset-based fees increased 7.5 % to $ 361.9 million for the year ended december 31 , 2019 compared to $ 336.6 million for the year ended december 31 , 2018. the increase in asset-based fees was primarily driven by an increase in revenues from exchange traded futures and options contracts linked to msci indexes . the increase in revenues from futures and options contracts was driven by approximately $ 5.0 million in additional fees associated with prior periods attributed to a retrospective price increase from a renegotiated contract entered into during the year ended december 31 , 2019 , as well as the cumulative impact of price and volume increases . the increase in revenues from asset-based fees was also driven by higher revenues from etfs linked to msci indexes , which was driven by a 7 . 6 % increase in average aum , partially offset by the impact of a change in product mix . in addition , the increase in revenues from asset-based fees was driven by higher revenues from non-etf passive products linked to msci indexes . the impact of foreign currency exchange rate fluctuations on revenues from asset-based fees was negligible . index segment adjusted ebitda expenses increased 10.2 % to $ 250.7 million for the year ended december 31 , 2019 compared to $ 227.6 million for the year ended december 31 , 2018 , reflecting higher expenses
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2,636 | these results were driven by continued growth in our regulated businesses from infrastructure investment , acquisitions and organic growth , combined with growth in our market-based businesses from our homeowner services group and keystone . these increases were partially offset by lower water services demand in our regulated businesses and lower capital upgrades in our military services group . adjustments to gaap adjusted diluted earnings per share represents a non-gaap financial measure and is calculated as gaap diluted earnings per share , excluding the impact of one or more of the following events : ( i ) a gain in the third quarter of 2018 on the sale of the majority of our contract services group 's o & m contracts ; ( ii ) a goodwill and intangible impairment charge in the third quarter of 2018 resulting from narrowing the scope of the keystone business ; ( iii ) insurance settlements received in the third quarter of 2017 and the second quarter of 2018 related to the freedom industries chemical spill in west virginia ; ( iv ) non-cash re-measurement charges recorded in the fourth quarters of 2017 and 2018 resulting from the impact of the change in the federal corporate income tax rate on the company 's deferred income taxes from the enactment of the tcja ; ( v ) an early extinguishment of debt charge at the parent company in the third quarter of 2017 ; and ( vi ) a charge in the fourth quarter of 2016 related to the binding global agreement in principle to settle claims related to the freedom industries chemical spill . we believe that this non-gaap measure provides investors with useful information by excluding certain matters that may not be indicative of our ongoing operating results , and that providing this non-gaap measure will allow investors to understand better our businesses ' operating performance and facilitate a meaningful year-to-year comparison of our results of operations . although management uses this non-gaap financial measure internally to evaluate our results of operations , we do not intend results excluding the adjustments to represent results as defined by gaap , and the reader should not consider them as indicators of performance . this non-gaap financial measure is derived from our consolidated financial information and it should be considered in addition to , and not as a substitute for , measures of financial performance prepared in accordance with gaap . in addition , this non-gaap financial measure as defined and used above may not be comparable to similarly titled non-gaap measures used by other companies , and , accordingly , it may have significant limitations on its use . achievements and strategic focus we believe our success has , and will continue to be , guided by the following strategic philosophies : purpose driven— “ we keep life flowing ” is our trademark purpose , for our customers and our communities , because we provide the most precious of life 's critical needs . people powered—a company is its people . people who have a safe place to work , both physically and emotionally . customer obsessed—without customers , we do n't exist . they are why we are here . trusted source of everything water— best in class , ensuring we have safe , reliable and affordable water . 43 our strategy , which is driven by our vision and values , will continue to be anchored on our five central themes : safety—safety is both a strategy and a value at american water . we put safety first in everything that we do . in 2018 , we : finished the year with fewer employee injuries than the prior year , improving both our occupational safety and health administration recordable incident rate ( “ orir ” ) and days away , restricted or transferred ( “ dart ” ) injury severity rate ; continued to strengthen our safety culture as measured by employee responses to safety-related questions in the company 's culture survey , and feedback from our in-person , labor-management conferences ; initiated a frontline safety leadership strategic action group , developed to provide recommendations to improve safety leadership training , tools , and engagement ; and championed , through our safety council which consists of management and labor employees , our annual safety day , the ceo safety award and other recognition programs . looking forward , we will : strive toward zero workplace incidents and eliminate hazards to reduce the potential for incidents ; continue our focus on “ near miss reporting ” and promoting continuous learning and corrective action regarding potential safety hazards before incidents can occur ; improve toward the achievement of our orir and dart targets ; continue our focus on requiring contractors that perform work for the company be held to the same safety standards as our employees ; and continue to promote the company 's employee stop work authority , where every employee is empowered to stop any work he or she perceives as unsafe , and to initiate a review to resolve concerns and to eliminate safety hazards . customer—our customers are at the center of everything we plan and do . customer input , their ideas and experiences will drive how we improve our processes and systems . we want to be the best , and if our customers have a choice as to who serves them , we want it to be us . in 2018 , we : achieved a customer satisfaction rating in the top quartile among our industry peer group ; expanded our customer experience initiative , designed to make it easier for customers to do business with us , and enhanced our quality of service through implementation and upgrades of technology tools ; and continued to make needed infrastructure investments while implementing operational efficiency improvements to keep customer bills affordable . story_separator_special_tag 49 infrastructure surcharges a number of states have authorized the use of regulatory mechanisms that permit rates to be adjusted outside of a general rate case for certain costs and investments , such as infrastructure surcharge mechanisms that permit recovery of capital investments to replace aging infrastructure . the following table provides annualized incremental revenues resulting from infrastructure surcharge authorizations that became effective during 2016 through 2018 , assuming a constant water sales volume : replace_table_token_7_th ( a ) in 2018 , the effective date was january 1. in 2016 , $ 1 million was effective january 1 and $ 6 million was effective august 1 . ( b ) in 2017 , $ 10 million was effective june 1 and $ 4 million was effective december 10. in 2016 , $ 9 million was effective june 1 and $ 10 million was effective december 1 . ( c ) in 2017 , the effective date was january 1. in 2016 , $ 11 million , $ 2 million , $ 6 million and $ 9 million were effective january 1 , april 1 , july 1 and october 1 , respectively . on february 8 , 2019 , our west virginia subsidiary received authorization for additional annualized revenues of $ 2 million from an infrastructure surcharge filing , effective january 1 , 2019 . on december 20 , 2018 , our illinois subsidiary filed for an infrastructure surcharge requesting $ 8 million in additional annualized revenues , which will become effective on january 1 , 2019 . pending infrastructure surcharge filings on november 16 , 2018 , our tennessee subsidiary filed for an infrastructure surcharge requesting $ 2 million in additional annualized revenues . there is no assurance that all or any portion of these requests will be granted . tax matters tax cuts and jobs act on december 22 , 2017 , the tcja was signed into law , which , among other things , enacted significant and complex changes to the internal revenue code of 1986 , including a reduction in the federal corporate income tax rate from 35 % to 21 % as of january 1 , 2018 , and certain other provisions related specifically to the public utility industry , including continuation of interest expense deductibility , the exclusion from utilizing bonus depreciation and the normalization of deferred income tax . the enactment of the tcja required a re-measurement of our deferred income taxes that materially impacted our 2017 results of operations and financial position . the portion of this re-measurement related to our regulated businesses was substantially offset by a regulatory liability , as we believe it is probable that the deferred income tax excesses created by the tcja will benefit our regulated customers in future rates . the remaining portion of this re-measurement of the net deferred income tax liability was recorded as a non-cash charge to earnings during the fourth quarter of 2017. during 2018 , we continued to gather , assess and evaluate additional guidance and regulations related to the changes related to the tcja . as a result of this process , we have recorded additional adjustments to finalize our initial 2017 estimates . see note 14—income taxes in the notes to consolidated financial statements for additional information . 50 during 2018 , the company 's 14 regulatory jurisdictions began to consider the impacts of the tcja . the company has adjusted customer rates to reflect the lower income tax rate in 10 states . in one of those 10 states , a portion of the tax savings is being used to reduce certain regulatory assets . in one additional state , we are using the tax savings to offset additional capital investment and to reduce a regulatory asset . proceedings in the other three jurisdictions remain pending . with respect to excess accumulated deferred income taxes , regulators in the eight states that have considered the issue have agreed with our overall timeline of passing the excess back to customers beginning no earlier than 2019 , when the company is able to produce the normalization schedule using the average rate assumption method . in one of those states , we will use the amortization of the excess accumulated deferred income taxes to offset future infrastructure investments . on march 23 , 2018 , president trump signed the consolidated appropriations act of 2018 ( the “ caa ” ) . the caa corrects and clarifies some aspects of the tcja related to bonus depreciation eligibility . specifically , property that was acquired , or the construction began , prior to september 27 , 2017 , is eligible for bonus depreciation . this clarification allowed the company to benefit from additional bonus depreciation deductions on the 2017 tax return , and as a result , we believe that we will likely begin paying federal income taxes towards the end of 2019 , when we expect our federal nol carryforwards balance will be fully used , and expect to be a full year cash taxpayer by 2020 , although this timing could be impacted by any significant changes in our future results of operations and the outcome of pending regulatory proceedings regarding the tcja . on november 26 , 2018 , the u.s. department of the treasury released proposed regulations concerning interest expense limitation rules . the tcja revised and broadened the existing interest expense limitation regulations . the company has considered all the rules set forth in the proposed regulation including allocated interest expense and interest income based on the relative amounts of the company 's adjusted basis in the assets used in its excepted and non-excepted trades or business , or our regulated businesses and market-based businesses . based on our interpretation of the new guidance , the company reasonably believes the deductibility of its interest expense will not be limited under the new regulations . other tax matters on june 1 , 2018 , the state of missouri enacted
| cash flows used in investing activities the following table provides a summary of the major items affecting our cash flows used in investing activities : replace_table_token_18_th ( a ) includes removal costs from property , plant and equipment retirements and proceeds from sale of assets . 62 in 2018 and 2017 , cash flows used in investing activities increased primarily due to an increase in our regulated capital expenditures , principally from incremental investments associated with the replacement and renewal of our transmission and distribution infrastructure in our regulated businesses , as well as acquisitions in both our regulated businesses and market-based businesses , as discussed below . our infrastructure investment plan consists of both infrastructure renewal programs , where we replace infrastructure , as needed , and major capital investment projects , where we construct new water and wastewater treatment and delivery facilities to meet new customer growth and water quality regulations . our projected capital expenditures and other investments are subject to periodic review and revision to reflect changes in economic conditions and other factors . the following table provides a summary of our historical capital expenditures related to the upgrading of our infrastructure and systems : replace_table_token_19_th in 2018 , our capital expenditures increased $ 152 million , or 10.6 % , primarily due to investment across the majority of our infrastructure categories .
| 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 used in investing activities the following table provides a summary of the major items affecting our cash flows used in investing activities : replace_table_token_18_th ( a ) includes removal costs from property , plant and equipment retirements and proceeds from sale of assets . 62 in 2018 and 2017 , cash flows used in investing activities increased primarily due to an increase in our regulated capital expenditures , principally from incremental investments associated with the replacement and renewal of our transmission and distribution infrastructure in our regulated businesses , as well as acquisitions in both our regulated businesses and market-based businesses , as discussed below . our infrastructure investment plan consists of both infrastructure renewal programs , where we replace infrastructure , as needed , and major capital investment projects , where we construct new water and wastewater treatment and delivery facilities to meet new customer growth and water quality regulations . our projected capital expenditures and other investments are subject to periodic review and revision to reflect changes in economic conditions and other factors . the following table provides a summary of our historical capital expenditures related to the upgrading of our infrastructure and systems : replace_table_token_19_th in 2018 , our capital expenditures increased $ 152 million , or 10.6 % , primarily due to investment across the majority of our infrastructure categories .
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Suspicious Activity Report : these results were driven by continued growth in our regulated businesses from infrastructure investment , acquisitions and organic growth , combined with growth in our market-based businesses from our homeowner services group and keystone . these increases were partially offset by lower water services demand in our regulated businesses and lower capital upgrades in our military services group . adjustments to gaap adjusted diluted earnings per share represents a non-gaap financial measure and is calculated as gaap diluted earnings per share , excluding the impact of one or more of the following events : ( i ) a gain in the third quarter of 2018 on the sale of the majority of our contract services group 's o & m contracts ; ( ii ) a goodwill and intangible impairment charge in the third quarter of 2018 resulting from narrowing the scope of the keystone business ; ( iii ) insurance settlements received in the third quarter of 2017 and the second quarter of 2018 related to the freedom industries chemical spill in west virginia ; ( iv ) non-cash re-measurement charges recorded in the fourth quarters of 2017 and 2018 resulting from the impact of the change in the federal corporate income tax rate on the company 's deferred income taxes from the enactment of the tcja ; ( v ) an early extinguishment of debt charge at the parent company in the third quarter of 2017 ; and ( vi ) a charge in the fourth quarter of 2016 related to the binding global agreement in principle to settle claims related to the freedom industries chemical spill . we believe that this non-gaap measure provides investors with useful information by excluding certain matters that may not be indicative of our ongoing operating results , and that providing this non-gaap measure will allow investors to understand better our businesses ' operating performance and facilitate a meaningful year-to-year comparison of our results of operations . although management uses this non-gaap financial measure internally to evaluate our results of operations , we do not intend results excluding the adjustments to represent results as defined by gaap , and the reader should not consider them as indicators of performance . this non-gaap financial measure is derived from our consolidated financial information and it should be considered in addition to , and not as a substitute for , measures of financial performance prepared in accordance with gaap . in addition , this non-gaap financial measure as defined and used above may not be comparable to similarly titled non-gaap measures used by other companies , and , accordingly , it may have significant limitations on its use . achievements and strategic focus we believe our success has , and will continue to be , guided by the following strategic philosophies : purpose driven— “ we keep life flowing ” is our trademark purpose , for our customers and our communities , because we provide the most precious of life 's critical needs . people powered—a company is its people . people who have a safe place to work , both physically and emotionally . customer obsessed—without customers , we do n't exist . they are why we are here . trusted source of everything water— best in class , ensuring we have safe , reliable and affordable water . 43 our strategy , which is driven by our vision and values , will continue to be anchored on our five central themes : safety—safety is both a strategy and a value at american water . we put safety first in everything that we do . in 2018 , we : finished the year with fewer employee injuries than the prior year , improving both our occupational safety and health administration recordable incident rate ( “ orir ” ) and days away , restricted or transferred ( “ dart ” ) injury severity rate ; continued to strengthen our safety culture as measured by employee responses to safety-related questions in the company 's culture survey , and feedback from our in-person , labor-management conferences ; initiated a frontline safety leadership strategic action group , developed to provide recommendations to improve safety leadership training , tools , and engagement ; and championed , through our safety council which consists of management and labor employees , our annual safety day , the ceo safety award and other recognition programs . looking forward , we will : strive toward zero workplace incidents and eliminate hazards to reduce the potential for incidents ; continue our focus on “ near miss reporting ” and promoting continuous learning and corrective action regarding potential safety hazards before incidents can occur ; improve toward the achievement of our orir and dart targets ; continue our focus on requiring contractors that perform work for the company be held to the same safety standards as our employees ; and continue to promote the company 's employee stop work authority , where every employee is empowered to stop any work he or she perceives as unsafe , and to initiate a review to resolve concerns and to eliminate safety hazards . customer—our customers are at the center of everything we plan and do . customer input , their ideas and experiences will drive how we improve our processes and systems . we want to be the best , and if our customers have a choice as to who serves them , we want it to be us . in 2018 , we : achieved a customer satisfaction rating in the top quartile among our industry peer group ; expanded our customer experience initiative , designed to make it easier for customers to do business with us , and enhanced our quality of service through implementation and upgrades of technology tools ; and continued to make needed infrastructure investments while implementing operational efficiency improvements to keep customer bills affordable . story_separator_special_tag 49 infrastructure surcharges a number of states have authorized the use of regulatory mechanisms that permit rates to be adjusted outside of a general rate case for certain costs and investments , such as infrastructure surcharge mechanisms that permit recovery of capital investments to replace aging infrastructure . the following table provides annualized incremental revenues resulting from infrastructure surcharge authorizations that became effective during 2016 through 2018 , assuming a constant water sales volume : replace_table_token_7_th ( a ) in 2018 , the effective date was january 1. in 2016 , $ 1 million was effective january 1 and $ 6 million was effective august 1 . ( b ) in 2017 , $ 10 million was effective june 1 and $ 4 million was effective december 10. in 2016 , $ 9 million was effective june 1 and $ 10 million was effective december 1 . ( c ) in 2017 , the effective date was january 1. in 2016 , $ 11 million , $ 2 million , $ 6 million and $ 9 million were effective january 1 , april 1 , july 1 and october 1 , respectively . on february 8 , 2019 , our west virginia subsidiary received authorization for additional annualized revenues of $ 2 million from an infrastructure surcharge filing , effective january 1 , 2019 . on december 20 , 2018 , our illinois subsidiary filed for an infrastructure surcharge requesting $ 8 million in additional annualized revenues , which will become effective on january 1 , 2019 . pending infrastructure surcharge filings on november 16 , 2018 , our tennessee subsidiary filed for an infrastructure surcharge requesting $ 2 million in additional annualized revenues . there is no assurance that all or any portion of these requests will be granted . tax matters tax cuts and jobs act on december 22 , 2017 , the tcja was signed into law , which , among other things , enacted significant and complex changes to the internal revenue code of 1986 , including a reduction in the federal corporate income tax rate from 35 % to 21 % as of january 1 , 2018 , and certain other provisions related specifically to the public utility industry , including continuation of interest expense deductibility , the exclusion from utilizing bonus depreciation and the normalization of deferred income tax . the enactment of the tcja required a re-measurement of our deferred income taxes that materially impacted our 2017 results of operations and financial position . the portion of this re-measurement related to our regulated businesses was substantially offset by a regulatory liability , as we believe it is probable that the deferred income tax excesses created by the tcja will benefit our regulated customers in future rates . the remaining portion of this re-measurement of the net deferred income tax liability was recorded as a non-cash charge to earnings during the fourth quarter of 2017. during 2018 , we continued to gather , assess and evaluate additional guidance and regulations related to the changes related to the tcja . as a result of this process , we have recorded additional adjustments to finalize our initial 2017 estimates . see note 14—income taxes in the notes to consolidated financial statements for additional information . 50 during 2018 , the company 's 14 regulatory jurisdictions began to consider the impacts of the tcja . the company has adjusted customer rates to reflect the lower income tax rate in 10 states . in one of those 10 states , a portion of the tax savings is being used to reduce certain regulatory assets . in one additional state , we are using the tax savings to offset additional capital investment and to reduce a regulatory asset . proceedings in the other three jurisdictions remain pending . with respect to excess accumulated deferred income taxes , regulators in the eight states that have considered the issue have agreed with our overall timeline of passing the excess back to customers beginning no earlier than 2019 , when the company is able to produce the normalization schedule using the average rate assumption method . in one of those states , we will use the amortization of the excess accumulated deferred income taxes to offset future infrastructure investments . on march 23 , 2018 , president trump signed the consolidated appropriations act of 2018 ( the “ caa ” ) . the caa corrects and clarifies some aspects of the tcja related to bonus depreciation eligibility . specifically , property that was acquired , or the construction began , prior to september 27 , 2017 , is eligible for bonus depreciation . this clarification allowed the company to benefit from additional bonus depreciation deductions on the 2017 tax return , and as a result , we believe that we will likely begin paying federal income taxes towards the end of 2019 , when we expect our federal nol carryforwards balance will be fully used , and expect to be a full year cash taxpayer by 2020 , although this timing could be impacted by any significant changes in our future results of operations and the outcome of pending regulatory proceedings regarding the tcja . on november 26 , 2018 , the u.s. department of the treasury released proposed regulations concerning interest expense limitation rules . the tcja revised and broadened the existing interest expense limitation regulations . the company has considered all the rules set forth in the proposed regulation including allocated interest expense and interest income based on the relative amounts of the company 's adjusted basis in the assets used in its excepted and non-excepted trades or business , or our regulated businesses and market-based businesses . based on our interpretation of the new guidance , the company reasonably believes the deductibility of its interest expense will not be limited under the new regulations . other tax matters on june 1 , 2018 , the state of missouri enacted
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2,637 | customers can purchase extended warranties , which provide for replacement or repair of the unit beyond the period provided by the unconditional warranty . warranties can be purchased for various periods but generally they are for one year period that begins after any other warranties expire . during fiscal year ended december 31 , 2015 , we received 63 % of our sales revenue from the sales of the viewscan . the balance of our revenue came from service and sales of warranties .. thus , this may result in a significant decrease in future revenue in subsequent years and result in a material effect on our financial results . our strategy for 2015 for viewscan will be to extend our service provisions . we have continued to offer extended warranties to our customers . in the short term , management plans to raise funds through sales of our common stock for fulfillment ( manufacturing , packaging and shipment ) , which will set the stage for future orders to become self funding . then the next phase of our business plan will be to raise additional funds through common stock offerings to provide working capital to finance several acquisitions . we also intend to continue to strengthen our balance sheet by paying off debt either through exchange of equity for cancellation of debt obligations or the payment of debt obligations with cash . when possible we have conserved our cash by paying employees , consultants , and independent contractors with our common stock . as of march 2010 , our outstanding equity compensation and equity incentive plans established in 1999 and 2000 had expired by their terms . we implemented two new plans in april and june 2010 , respectively . on april 2 , 2010 , by majority shareholder consent , we adopted our 2010 equity incentive plan . reserved for equity issuances under the equity incentive plan are 50,000,000 shares of our common stock . on june 1 , 2010 , by majority shareholder consent , we adopted our 2010 service provider stock compensation plan . reserved for equity issuances under the service provider stock compensation plan are 50,000,000 shares of our common stock . on july 21 , 2010 , we registered the common stock issuable under the 2010 equity incentive plan and the 2010 service provider stock compensation plan . a total of 100,000,000 shares are reserved for issuances under the two plans . 24 merger or acquisition pending in 2016 we entered into an agreement to acquire a company called ym advantage that proposed to acquire and operate clinics in the erectile dysfunction ( ed ) medical market . our board of directors has two doctors that investigated the acquisition and decided that the acquisition was not in the best interest of the company . however , as the result of the investigation we found that the ed market was lucrative and easy to get into . as a consequence of this decision we cancelled the intended acquisition of ym advantage . as of this date there are no pending acquisitions at the time of this filing . manufacturing we no longer manufacture the viewscan since we have determined a new improved model is needed to continue in the walk through portal security market . since we do not have funds to set up a new manufacturing process we are quiescent in our manufacturing activities . form s-1 registration statement declared effective on march 10 , 2014 , we filed a registration statement with the securities and exchange commission form s-1 to register 100,000,000 shares of our common stock at a per share price of $ 0.04 to raise up to $ 4,000,000.00 in proceeds and to register 6,000,000 shares on behalf of two selling shareholders . the sec file number of the registration statement is 333-169804. the form s-1 registration statement was declared effective by the sec on august 14 , 2014. the stated primary purposes of the offering are to obtain additional capital to : ( 1 ) facilitate product fulfillment ( manufacturing , packaging and shipment ) , which we anticipate will enable future orders to be self funding ; ( 2 ) provide working capital to finance corporate acquisitions and the integration of new technologies ; and ( 3 ) retire debt through cash payment or the exchange of debt obligations with payment in registered common stock . the offering price for our shares registered in the offering is $ 0.04 per share for an aggregate offering price of $ 4,000,000.00. having our registration statement declared effective proved to be only the first step in pursuit of restructuring our debts with the help of a registered securities offering . two circumstances , which may be related , prevented our progress : ( 1 ) we have not secured a suitable investment banking relationship through which to underwrite all or part of the offering ; and ( 2 ) our common stock traded in 2011 at share prices below the $ 0.02 per share fixed price of the offering , making it impossible to find public buyers for registered stock . we anticipate that we will have greater success in 2014 in selling stock registered in an offering because in our first quarter of 2012 we made our first sales of our registered shares . results of operations for fiscal years ended december 31 , 2014 and december 31 , 2013 the following discussions are based on the consolidated financial statements of view systems and its subsidiaries . story_separator_special_tag these operating expenses incurred during fiscal year ended december 31 , 2015 consisted of : ( i ) general and administrative expenses of $ 130,901 ( 2014 : $ 279,082 ) ; ( ii ) professional fees of $ 180,020 ( 2014 : $ 817,237 ) ; and ( iii ) salaries and benefits of $ 230,523 ( 2014 : $ 527,323 ) . operating expenses incurred during fiscal year ended december 31 , 2015 compared to fiscal year ended december 31 , 2014 decreased primarily due to the decrease in professional fees of $ 637,217. thus , our loss from operations during fiscal year ended december 31 , 2015 was ( $ 387,385 ) compared to a loss from operations of ( $ 1,316,425 ) during fiscal year ended december 31 , 2014. during fiscal year ended december 31 , 2015 , we realized other expense in the total amount of ( $ 31,414 ) . during fiscal year ended december 31 , 2014 , we realized other expense in the total amount of ( $ 21,720 ) . the difference being mostly due a gain realized from a renegotiated debt of $ 9,234. after deducting other expense , we realized a net loss of ( $ 418,799 ) or ( $ 0.00 ) for fiscal year ended december 31 , 2015 compared to a net loss of ( $ 1,338,145 ) or ( $ 0.01 ) for fiscal year ended december 31 , 2014. the weighted average number of shares outstanding was 296,940,184 for fiscal year ended december 31 , 2015 compared to 261,754,044 for fiscal year ended december 31 , 2014. liquidity , capital resources and going concern fiscal year ended december 31 , 2015 as of december 31 , 2015 , our current assets were $ 10,780 and our current liabilities were $ 1,659,742 , which resulted in a working capital deficit of $ 1,648,962. as of december 31 , 2015 , current assets were comprised of : ( i ) $ 2,617 in cash ; ( ii ) $ 7,075 in accounts receivable ( net of allowance for doubtful accounts of $ -0- ) ; and ( iii ) $ 1,088 in inventory . as of december 31 , 2015 , current liabilities were comprised of : ( i ) $ 398,702 in accounts payable and accrued expenses ; ( ii ) $ 37,835 in deferred compensation ; ( iii ) $ 181,809 in accrued and withheld payroll taxes payable ; ( iv ) $ 95,625 in accrued interest payable ; ( v ) $ 225,000 in accrued royalties payable ; ( vi ) $ 564,703 in loans from stockholders ; ( vii ) $ 61,095 in notes payable ; and ( viii ) deferred revenue of $ 94,973. as of december 31 , 2015 , our total assets were $ 15,372 comprised of : ( i ) $ 10,780 in current assets ; ( ii ) property and equipment ( net ) of $ 2,997 ; and ( iii ) $ 1,595 in deposits . the decrease in total assets during fiscal year ended december 31 , 2015 from fiscal year ended december 31 , 2014 was primarily due to the substantial decrease in cash and receivables . as of december 31 , 2015 , our total liabilities were $ 1,659,742 comprised of current liabilities . the increase in liabilities during fiscal year ended december 31 , 2015 from fiscal year ended december 31 , 2014 was primarily due to the increase in accounts payable and accrued expenses and loans from stockholders . 27 stockholders ' deficit increased from ( $ 1,512,321 ) for fiscal year ended december 31 , 2014 to ( $ 1,644,370 ) for fiscal year ended december 31 , 2015. story_separator_special_tag font-family : 'times new roman ' , times , serif ; text-align : left `` > a term loan secured by a stockholder , payable in monthly installments of $ 2,587 commencing in december 25 , 2009 but refinanced in may 2011. the loan is due in full on may 18 , 2016 and interest accrues monthly at 5.0 % per annum . as of the date of this filing the loan with the bank has been paid in full . 11,095 stockholder demand loan payable with interest at 5 % per month dated september 18 , 2009. the loan is secured by the company 's accounts receivable . the note was payable in full on december 17 , 2009 and is currently in default 50,000 off balance sheet arrangements we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources that is material to investors . contractual obligations as a `` smaller reporting company `` as defined by item 10 of regulation s-k , we are not required to provide this information . 29 critical accounting policies we have three main products , namely the concealed weapons detection system , the visual first responder system and the viewmaxx digital video system . in all cases revenue is considered earned when the product is shipped to the customer , installed ( if necessary ) and accepted by the customer as a completed sale . the concealed weapons detection system and the digital video system each require installation and training . the customer can engage us for installation and training , which is a revenue source separate and apart from the sale of the product . in those cases revenue is recognized at the completion of the installation and training and acceptance by the customer . however , the customer can also self-install or can engage another firm to provide installation and training . each product has an unconditional 30 day warranty , during which time the product can be returned for a complete refund
| cash flows from operating activities we have not generated positive cash flows from operating activities . for fiscal year ended december 31 , 2015 , net cash flows used in operating activities was $ 121,375 compared to $ 172,367 for fiscal year ended december 31 , 2014. net cash flows used in operating activities consisted primarily of a net loss of $ 418,799 ( 2014 : $ 1,338,145 ) , which was partially adjusted by : ( i ) $ 925 ( 2014 : $ 6,470 ) in depreciation ; ( ii ) $ 26,750 ( 2014 : $ 591,930 ) in common stock issued for payment of services ; ( ii ) $ 75,000 ( 2014 : $ 480,000 ) in preferred stock issued for services ; ( iii ) $ -0- ( 2015 : $ -0- ) in stock option expense ; ( iv ) $ -0- ( 2014 : $ -0- ) in bad debt ; ( v ) a gain of ( $ -0- ) ( 2014 : ( $ 9,234 ) ) from re-negotiated debt ; and ( vi ) $ 1,408 ( 2014 : $ 2,841 ) in interest expense paid with 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 from operating activities we have not generated positive cash flows from operating activities . for fiscal year ended december 31 , 2015 , net cash flows used in operating activities was $ 121,375 compared to $ 172,367 for fiscal year ended december 31 , 2014. net cash flows used in operating activities consisted primarily of a net loss of $ 418,799 ( 2014 : $ 1,338,145 ) , which was partially adjusted by : ( i ) $ 925 ( 2014 : $ 6,470 ) in depreciation ; ( ii ) $ 26,750 ( 2014 : $ 591,930 ) in common stock issued for payment of services ; ( ii ) $ 75,000 ( 2014 : $ 480,000 ) in preferred stock issued for services ; ( iii ) $ -0- ( 2015 : $ -0- ) in stock option expense ; ( iv ) $ -0- ( 2014 : $ -0- ) in bad debt ; ( v ) a gain of ( $ -0- ) ( 2014 : ( $ 9,234 ) ) from re-negotiated debt ; and ( vi ) $ 1,408 ( 2014 : $ 2,841 ) in interest expense paid with debt .
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Suspicious Activity Report : customers can purchase extended warranties , which provide for replacement or repair of the unit beyond the period provided by the unconditional warranty . warranties can be purchased for various periods but generally they are for one year period that begins after any other warranties expire . during fiscal year ended december 31 , 2015 , we received 63 % of our sales revenue from the sales of the viewscan . the balance of our revenue came from service and sales of warranties .. thus , this may result in a significant decrease in future revenue in subsequent years and result in a material effect on our financial results . our strategy for 2015 for viewscan will be to extend our service provisions . we have continued to offer extended warranties to our customers . in the short term , management plans to raise funds through sales of our common stock for fulfillment ( manufacturing , packaging and shipment ) , which will set the stage for future orders to become self funding . then the next phase of our business plan will be to raise additional funds through common stock offerings to provide working capital to finance several acquisitions . we also intend to continue to strengthen our balance sheet by paying off debt either through exchange of equity for cancellation of debt obligations or the payment of debt obligations with cash . when possible we have conserved our cash by paying employees , consultants , and independent contractors with our common stock . as of march 2010 , our outstanding equity compensation and equity incentive plans established in 1999 and 2000 had expired by their terms . we implemented two new plans in april and june 2010 , respectively . on april 2 , 2010 , by majority shareholder consent , we adopted our 2010 equity incentive plan . reserved for equity issuances under the equity incentive plan are 50,000,000 shares of our common stock . on june 1 , 2010 , by majority shareholder consent , we adopted our 2010 service provider stock compensation plan . reserved for equity issuances under the service provider stock compensation plan are 50,000,000 shares of our common stock . on july 21 , 2010 , we registered the common stock issuable under the 2010 equity incentive plan and the 2010 service provider stock compensation plan . a total of 100,000,000 shares are reserved for issuances under the two plans . 24 merger or acquisition pending in 2016 we entered into an agreement to acquire a company called ym advantage that proposed to acquire and operate clinics in the erectile dysfunction ( ed ) medical market . our board of directors has two doctors that investigated the acquisition and decided that the acquisition was not in the best interest of the company . however , as the result of the investigation we found that the ed market was lucrative and easy to get into . as a consequence of this decision we cancelled the intended acquisition of ym advantage . as of this date there are no pending acquisitions at the time of this filing . manufacturing we no longer manufacture the viewscan since we have determined a new improved model is needed to continue in the walk through portal security market . since we do not have funds to set up a new manufacturing process we are quiescent in our manufacturing activities . form s-1 registration statement declared effective on march 10 , 2014 , we filed a registration statement with the securities and exchange commission form s-1 to register 100,000,000 shares of our common stock at a per share price of $ 0.04 to raise up to $ 4,000,000.00 in proceeds and to register 6,000,000 shares on behalf of two selling shareholders . the sec file number of the registration statement is 333-169804. the form s-1 registration statement was declared effective by the sec on august 14 , 2014. the stated primary purposes of the offering are to obtain additional capital to : ( 1 ) facilitate product fulfillment ( manufacturing , packaging and shipment ) , which we anticipate will enable future orders to be self funding ; ( 2 ) provide working capital to finance corporate acquisitions and the integration of new technologies ; and ( 3 ) retire debt through cash payment or the exchange of debt obligations with payment in registered common stock . the offering price for our shares registered in the offering is $ 0.04 per share for an aggregate offering price of $ 4,000,000.00. having our registration statement declared effective proved to be only the first step in pursuit of restructuring our debts with the help of a registered securities offering . two circumstances , which may be related , prevented our progress : ( 1 ) we have not secured a suitable investment banking relationship through which to underwrite all or part of the offering ; and ( 2 ) our common stock traded in 2011 at share prices below the $ 0.02 per share fixed price of the offering , making it impossible to find public buyers for registered stock . we anticipate that we will have greater success in 2014 in selling stock registered in an offering because in our first quarter of 2012 we made our first sales of our registered shares . results of operations for fiscal years ended december 31 , 2014 and december 31 , 2013 the following discussions are based on the consolidated financial statements of view systems and its subsidiaries . story_separator_special_tag these operating expenses incurred during fiscal year ended december 31 , 2015 consisted of : ( i ) general and administrative expenses of $ 130,901 ( 2014 : $ 279,082 ) ; ( ii ) professional fees of $ 180,020 ( 2014 : $ 817,237 ) ; and ( iii ) salaries and benefits of $ 230,523 ( 2014 : $ 527,323 ) . operating expenses incurred during fiscal year ended december 31 , 2015 compared to fiscal year ended december 31 , 2014 decreased primarily due to the decrease in professional fees of $ 637,217. thus , our loss from operations during fiscal year ended december 31 , 2015 was ( $ 387,385 ) compared to a loss from operations of ( $ 1,316,425 ) during fiscal year ended december 31 , 2014. during fiscal year ended december 31 , 2015 , we realized other expense in the total amount of ( $ 31,414 ) . during fiscal year ended december 31 , 2014 , we realized other expense in the total amount of ( $ 21,720 ) . the difference being mostly due a gain realized from a renegotiated debt of $ 9,234. after deducting other expense , we realized a net loss of ( $ 418,799 ) or ( $ 0.00 ) for fiscal year ended december 31 , 2015 compared to a net loss of ( $ 1,338,145 ) or ( $ 0.01 ) for fiscal year ended december 31 , 2014. the weighted average number of shares outstanding was 296,940,184 for fiscal year ended december 31 , 2015 compared to 261,754,044 for fiscal year ended december 31 , 2014. liquidity , capital resources and going concern fiscal year ended december 31 , 2015 as of december 31 , 2015 , our current assets were $ 10,780 and our current liabilities were $ 1,659,742 , which resulted in a working capital deficit of $ 1,648,962. as of december 31 , 2015 , current assets were comprised of : ( i ) $ 2,617 in cash ; ( ii ) $ 7,075 in accounts receivable ( net of allowance for doubtful accounts of $ -0- ) ; and ( iii ) $ 1,088 in inventory . as of december 31 , 2015 , current liabilities were comprised of : ( i ) $ 398,702 in accounts payable and accrued expenses ; ( ii ) $ 37,835 in deferred compensation ; ( iii ) $ 181,809 in accrued and withheld payroll taxes payable ; ( iv ) $ 95,625 in accrued interest payable ; ( v ) $ 225,000 in accrued royalties payable ; ( vi ) $ 564,703 in loans from stockholders ; ( vii ) $ 61,095 in notes payable ; and ( viii ) deferred revenue of $ 94,973. as of december 31 , 2015 , our total assets were $ 15,372 comprised of : ( i ) $ 10,780 in current assets ; ( ii ) property and equipment ( net ) of $ 2,997 ; and ( iii ) $ 1,595 in deposits . the decrease in total assets during fiscal year ended december 31 , 2015 from fiscal year ended december 31 , 2014 was primarily due to the substantial decrease in cash and receivables . as of december 31 , 2015 , our total liabilities were $ 1,659,742 comprised of current liabilities . the increase in liabilities during fiscal year ended december 31 , 2015 from fiscal year ended december 31 , 2014 was primarily due to the increase in accounts payable and accrued expenses and loans from stockholders . 27 stockholders ' deficit increased from ( $ 1,512,321 ) for fiscal year ended december 31 , 2014 to ( $ 1,644,370 ) for fiscal year ended december 31 , 2015. story_separator_special_tag font-family : 'times new roman ' , times , serif ; text-align : left `` > a term loan secured by a stockholder , payable in monthly installments of $ 2,587 commencing in december 25 , 2009 but refinanced in may 2011. the loan is due in full on may 18 , 2016 and interest accrues monthly at 5.0 % per annum . as of the date of this filing the loan with the bank has been paid in full . 11,095 stockholder demand loan payable with interest at 5 % per month dated september 18 , 2009. the loan is secured by the company 's accounts receivable . the note was payable in full on december 17 , 2009 and is currently in default 50,000 off balance sheet arrangements we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources that is material to investors . contractual obligations as a `` smaller reporting company `` as defined by item 10 of regulation s-k , we are not required to provide this information . 29 critical accounting policies we have three main products , namely the concealed weapons detection system , the visual first responder system and the viewmaxx digital video system . in all cases revenue is considered earned when the product is shipped to the customer , installed ( if necessary ) and accepted by the customer as a completed sale . the concealed weapons detection system and the digital video system each require installation and training . the customer can engage us for installation and training , which is a revenue source separate and apart from the sale of the product . in those cases revenue is recognized at the completion of the installation and training and acceptance by the customer . however , the customer can also self-install or can engage another firm to provide installation and training . each product has an unconditional 30 day warranty , during which time the product can be returned for a complete refund
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2,638 | the company had no bank debt as of december 31 , 2017. the $ 137.4 million of aggregate cash generated by operating activities over the past three years was utilized primarily to pay dividends , fund the company 's defined benefit pension plan , purchase productivity-enhancing capital equipment , entirely repay acquisitions-related short-term debt and fund growth-oriented acquisitions . the company 's cash position increased $ 22.1 million during 2017 to $ 79.7 million at december 31 , 2017. the company generated $ 62.6 million in adjusted earnings before interest , taxes , depreciation and amortization during 2017. from these earnings , the company invested $ 7.8 million primarily in machinery and equipment and returned $ 12.3 million in dividends to shareholders . capital additions for 2018 are presently planned to be in the range of $ 10- $ 15 million primarily for building expansion and machinery and equipment purchases , and are expected to be financed through internally-generated funds and existing lines of credit . net sales for the year ended december 31 , 2017 were $ 379.4 million compared to $ 382.1 million for 2016 , a decrease of 0.7 % or $ 2.7 million . excluding sales from the pccp project of $ 0.7 million in 2017 and $ 9.9 million in 2016 , net sales in 2017 increased 1.8 % or $ 6.5 million . domestic sales , excluding pccp , increased $ 0.1 million while international sales increased 4.9 % or $ 6.4 million . gross profit was $ 98.7 million for 2017 , resulting in gross margin of 26.0 % , compared to gross profit of $ 92.0 million and gross margin of 24.1 % for 2016. gross margin included a non-cash pension settlement charge of $ 2.6 million or 70 basis points in 2017 which did not occur in 2016. excluding the non-cash pension settlement charge , gross margin increased by 260 basis points due principally to favorable sales mix . sg & a was $ 56.8 million and 15.0 % of net sales for 2017 compared to $ 54.5 million and 14.3 % of net sales for 2016. sg & a included a non-cash pension settlement charge of $ 1.4 million or 40 basis points in 2017 which did not occur last year . sg & a included a gain on the sale of property , plant and equipment of $ 1.0 million or 30 basis points in 2016. excluding these items , sg & a decreased slightly compared to last year and as a percentage of sales was flat . operating income was $ 37.9 million , resulting in operating margin of 10.0 % for the 2017 , compared to operating income of $ 35.7 million and operating margin of 9.3 % for 2016. in 2017 , operating income included non-cash impairment charges of $ 4.1 million or 100 basis points and a non-cash pension settlement charge of $ 4.0 million or 110 basis points . in 2016 , operating income included a non-cash impairment charge of $ 1.8 million or 50 basis points and a gain on the sale of property , plant and equipment of $ 0.6 million or 20 basis points . excluding these items , operating income improved $ 9.1 million or 250 basis points due principally to improved gross margin . net income was $ 26.6 million for 2017 compared to $ 24.9 million in 2016 , and earnings per share were $ 1.02 and $ 0.95 for the respective periods . earnings per share for 2017 included non-cash impairment charges of $ 0.10 per share and a non-cash pension settlement charge of $ 0.10 per share . earnings per share for 2016 included a non-cash impairment charge of $ 0.05 per share . the company 's backlog of orders was $ 114.0 million at december 31 , 2017 compared to $ 98.8 million at december 31 , 2016 , an increase of 15.4 % . the increase in backlog was primarily due to increases in the fire protection , municipal and construction markets principally driven by improved economic conditions both domestically and internationally . on january 25 , 2018 , the board of directors authorized the payment of a quarterly dividend of $ 0.125 per share , representing the 272nd consecutive quarterly dividend to be paid by the company . during 2017 , the 14 company again paid increased dividends and thereby attained its 45th consecutive year of increased dividends . these consecutive years of increases continue to position gorman-rupp in the top 50 of all u.s. public companies with respect to number of years of increased dividend payments . the dividend yield at december 31 , 2017 was 1.5 % . the company currently expects to continue its exceptional history of paying regular quarterly dividends and increased annual dividends . however , any future dividends will be reviewed individually and declared by our board of directors at its discretion , dependent on our assessment of the company 's financial condition and business outlook at the applicable time . outlook overall business conditions have continued to improve during 2017 and we are optimistic about our incoming order rate as we enter 2018. however , we continue to experience some softness in the agriculture and certain oil and gas driven markets . increased emphasis on infrastructure improvements at both the federal and state levels coupled with the newly enacted u.s. tax legislation could be additional positive factors over the next several years . the company remains focused on operational efficiencies and will continue to manage expenses closely . our underlying fundamentals remain strong and we remain well positioned to drive long-term growth . story_separator_special_tag income taxes the basic principles related to accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity 's financial statements or tax returns . 22 realization of the company 's deferred tax assets is principally dependent upon the company 's achievement of projected future taxable income , which management believes will be sufficient to fully utilize the deferred tax assets recorded , with the exception of deferred tax associated with certain state tax credits for which a valuation allowance has been recognized . on december 22 , 2017 , the u.s. tax cuts and jobs act ( the tax act ) was enacted . the tax act reduces the federal corporate tax rate on u.s. earnings to 21 % and moves from a global taxation regime to a modified territorial regime . as part of the tax act , u.s. companies are required to pay a tax on historical earnings generated offshore that have not been repatriated to the u.s. companies are required to re-measure their deferred tax assets and liabilities to reflect the lower federal base rate of 21 % . the company recorded provisional estimates based on its initial analysis of the tax act . given the significant complexity of the tax act , anticipated guidance from the u. s. treasury about implementing the tax act , and the potential for additional guidance from the securities and exchange commission or the financial accounting standards board related to the tax act , these estimates may be adjusted during 2018. goodwill and other intangibles the company accounts for goodwill in a purchase business combination as the excess of the cost over the fair value of net assets acquired . business combinations can also result in other intangible assets being recognized . amortization of intangible assets , if applicable , occurs over their estimated useful lives . goodwill is tested annually for impairment as of october 1 , or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with asc 350 , intangibles - goodwill and other . goodwill is tested for impairment at the reporting unit level and is based on the net assets for each reporting unit , including goodwill and intangible assets . the company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount . if , after assessing the totality of events or circumstances , an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount , then performing a quantitative impairment assessment is unnecessary . in assessing the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount , we identify and assess relevant drivers of fair value and events and circumstances that may impact the fair value and the carrying amount of the reporting unit . the identification of relevant events and circumstances and how these may impact a reporting unit 's fair value or carrying amount involve significant judgments and assumptions . the judgments and assumptions include the identification of macroeconomic conditions , industry and market considerations , cost factors , overall financial performance , company-specific events and share price trends and making the assessment on whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact . when performing a quantitative assessment of goodwill impairment if necessary , or in years where we elect to do so , a discounted cash flow model is used to estimate the fair value of each reporting unit , which considers forecasted cash flows discounted at an estimated weighted-average cost of capital . the forecasted cash flows are based on the company 's long-term operating plan and the weighted-average cost of capital is an estimate of the overall after-tax rate of return . other valuation techniques including comparative market multiples are used when appropriate . discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units . based upon our fiscal 2017 and 2016 quantitative and qualitative impairment analyses , except for the bayou reporting unit , the company concluded that it is more likely than not that the fair value of our reporting units continues to exceed the respective carrying amounts . in 2017 and 2016 , due primarily to the decreased demand 23 for barge pumps for the marine transportation market driven by low oil prices and overcapacity of inland barges , the bayou reporting unit recorded pre-tax non-cash goodwill impairment charges of $ 0.9 million and $ 1.8 million , respectively . the company 's annual impairment analysis performed as of october 1 , 2017 concluded that national pump company 's ( national ) fair value exceeded its carrying value by approximately 7 % . a sensitivity analysis was performed for the national reporting unit , assuming a hypothetical 50 basis point decrease in the expected long-term growth rate or a hypothetical 50 basis point increase in the weighted average cost of capital , and both scenarios independently yielded an estimated fair value for the national reporting unit slightly above carrying value . if recently depressed u.s. agricultural conditions continue for an extended time , this market 's related growth and profitability assumptions may reduce national 's indicated fair value to require a potential future impairment charge . goodwill relating to the national reporting unit represents 3 % of the company 's december 31 , 2017 total assets . see note 8 , to the consolidated financial
| liquidity and sources of capital cash and cash equivalents totaled $ 79.7 million and there was no outstanding bank debt at december 31 , 2017. in addition , the company had $ 21.8 million available in bank lines of credit after deducting $ 9.2 million in outstanding letters of credit primarily related to customer orders . the company was in compliance with its debt covenants , including limits on additional borrowings and maintenance of certain operating and financial ratios , at all times in 2017 and 2016. capital expenditures for 2018 , which are expected to consist principally of building expansion and machinery and equipment purchases , are estimated to be in the range of $ 10- $ 15 million and are expected to be financed through internally generated funds and existing lines of credit . during 2017 , 2016 and 2015 , the company financed its capital improvements and working capital requirements principally through internally generated funds . free cash flow , a non-gaap measure for reporting cash flow , is defined by the company as adjusted earnings before interest , income taxes and depreciation and amortization , less capital expenditures and dividends . the company believes free cash flow provides investors with an important perspective on cash available for investments , acquisitions and working capital requirements . 19 the following table reconciles adjusted earnings before interest , income taxes and depreciation and amortization as reconciled above to free cash flow : replace_table_token_16_th financial cash flow replace_table_token_17_th the change in cash provided by operating activities in 2017 compared to 2016 was primarily due to a decrease in accounts receivable , more than offset by increased inventories and decreased commissions payable and benefit obligations . the change in cash provided by operating activities in 2016 compared to 2015 was primarily due to reductions in inventories and accounts receivable driven by lower sales volume , partially offset by contributions to the company 's defined benefit pension plan .
| 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 sources of capital cash and cash equivalents totaled $ 79.7 million and there was no outstanding bank debt at december 31 , 2017. in addition , the company had $ 21.8 million available in bank lines of credit after deducting $ 9.2 million in outstanding letters of credit primarily related to customer orders . the company was in compliance with its debt covenants , including limits on additional borrowings and maintenance of certain operating and financial ratios , at all times in 2017 and 2016. capital expenditures for 2018 , which are expected to consist principally of building expansion and machinery and equipment purchases , are estimated to be in the range of $ 10- $ 15 million and are expected to be financed through internally generated funds and existing lines of credit . during 2017 , 2016 and 2015 , the company financed its capital improvements and working capital requirements principally through internally generated funds . free cash flow , a non-gaap measure for reporting cash flow , is defined by the company as adjusted earnings before interest , income taxes and depreciation and amortization , less capital expenditures and dividends . the company believes free cash flow provides investors with an important perspective on cash available for investments , acquisitions and working capital requirements . 19 the following table reconciles adjusted earnings before interest , income taxes and depreciation and amortization as reconciled above to free cash flow : replace_table_token_16_th financial cash flow replace_table_token_17_th the change in cash provided by operating activities in 2017 compared to 2016 was primarily due to a decrease in accounts receivable , more than offset by increased inventories and decreased commissions payable and benefit obligations . the change in cash provided by operating activities in 2016 compared to 2015 was primarily due to reductions in inventories and accounts receivable driven by lower sales volume , partially offset by contributions to the company 's defined benefit pension plan .
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Suspicious Activity Report : the company had no bank debt as of december 31 , 2017. the $ 137.4 million of aggregate cash generated by operating activities over the past three years was utilized primarily to pay dividends , fund the company 's defined benefit pension plan , purchase productivity-enhancing capital equipment , entirely repay acquisitions-related short-term debt and fund growth-oriented acquisitions . the company 's cash position increased $ 22.1 million during 2017 to $ 79.7 million at december 31 , 2017. the company generated $ 62.6 million in adjusted earnings before interest , taxes , depreciation and amortization during 2017. from these earnings , the company invested $ 7.8 million primarily in machinery and equipment and returned $ 12.3 million in dividends to shareholders . capital additions for 2018 are presently planned to be in the range of $ 10- $ 15 million primarily for building expansion and machinery and equipment purchases , and are expected to be financed through internally-generated funds and existing lines of credit . net sales for the year ended december 31 , 2017 were $ 379.4 million compared to $ 382.1 million for 2016 , a decrease of 0.7 % or $ 2.7 million . excluding sales from the pccp project of $ 0.7 million in 2017 and $ 9.9 million in 2016 , net sales in 2017 increased 1.8 % or $ 6.5 million . domestic sales , excluding pccp , increased $ 0.1 million while international sales increased 4.9 % or $ 6.4 million . gross profit was $ 98.7 million for 2017 , resulting in gross margin of 26.0 % , compared to gross profit of $ 92.0 million and gross margin of 24.1 % for 2016. gross margin included a non-cash pension settlement charge of $ 2.6 million or 70 basis points in 2017 which did not occur in 2016. excluding the non-cash pension settlement charge , gross margin increased by 260 basis points due principally to favorable sales mix . sg & a was $ 56.8 million and 15.0 % of net sales for 2017 compared to $ 54.5 million and 14.3 % of net sales for 2016. sg & a included a non-cash pension settlement charge of $ 1.4 million or 40 basis points in 2017 which did not occur last year . sg & a included a gain on the sale of property , plant and equipment of $ 1.0 million or 30 basis points in 2016. excluding these items , sg & a decreased slightly compared to last year and as a percentage of sales was flat . operating income was $ 37.9 million , resulting in operating margin of 10.0 % for the 2017 , compared to operating income of $ 35.7 million and operating margin of 9.3 % for 2016. in 2017 , operating income included non-cash impairment charges of $ 4.1 million or 100 basis points and a non-cash pension settlement charge of $ 4.0 million or 110 basis points . in 2016 , operating income included a non-cash impairment charge of $ 1.8 million or 50 basis points and a gain on the sale of property , plant and equipment of $ 0.6 million or 20 basis points . excluding these items , operating income improved $ 9.1 million or 250 basis points due principally to improved gross margin . net income was $ 26.6 million for 2017 compared to $ 24.9 million in 2016 , and earnings per share were $ 1.02 and $ 0.95 for the respective periods . earnings per share for 2017 included non-cash impairment charges of $ 0.10 per share and a non-cash pension settlement charge of $ 0.10 per share . earnings per share for 2016 included a non-cash impairment charge of $ 0.05 per share . the company 's backlog of orders was $ 114.0 million at december 31 , 2017 compared to $ 98.8 million at december 31 , 2016 , an increase of 15.4 % . the increase in backlog was primarily due to increases in the fire protection , municipal and construction markets principally driven by improved economic conditions both domestically and internationally . on january 25 , 2018 , the board of directors authorized the payment of a quarterly dividend of $ 0.125 per share , representing the 272nd consecutive quarterly dividend to be paid by the company . during 2017 , the 14 company again paid increased dividends and thereby attained its 45th consecutive year of increased dividends . these consecutive years of increases continue to position gorman-rupp in the top 50 of all u.s. public companies with respect to number of years of increased dividend payments . the dividend yield at december 31 , 2017 was 1.5 % . the company currently expects to continue its exceptional history of paying regular quarterly dividends and increased annual dividends . however , any future dividends will be reviewed individually and declared by our board of directors at its discretion , dependent on our assessment of the company 's financial condition and business outlook at the applicable time . outlook overall business conditions have continued to improve during 2017 and we are optimistic about our incoming order rate as we enter 2018. however , we continue to experience some softness in the agriculture and certain oil and gas driven markets . increased emphasis on infrastructure improvements at both the federal and state levels coupled with the newly enacted u.s. tax legislation could be additional positive factors over the next several years . the company remains focused on operational efficiencies and will continue to manage expenses closely . our underlying fundamentals remain strong and we remain well positioned to drive long-term growth . story_separator_special_tag income taxes the basic principles related to accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity 's financial statements or tax returns . 22 realization of the company 's deferred tax assets is principally dependent upon the company 's achievement of projected future taxable income , which management believes will be sufficient to fully utilize the deferred tax assets recorded , with the exception of deferred tax associated with certain state tax credits for which a valuation allowance has been recognized . on december 22 , 2017 , the u.s. tax cuts and jobs act ( the tax act ) was enacted . the tax act reduces the federal corporate tax rate on u.s. earnings to 21 % and moves from a global taxation regime to a modified territorial regime . as part of the tax act , u.s. companies are required to pay a tax on historical earnings generated offshore that have not been repatriated to the u.s. companies are required to re-measure their deferred tax assets and liabilities to reflect the lower federal base rate of 21 % . the company recorded provisional estimates based on its initial analysis of the tax act . given the significant complexity of the tax act , anticipated guidance from the u. s. treasury about implementing the tax act , and the potential for additional guidance from the securities and exchange commission or the financial accounting standards board related to the tax act , these estimates may be adjusted during 2018. goodwill and other intangibles the company accounts for goodwill in a purchase business combination as the excess of the cost over the fair value of net assets acquired . business combinations can also result in other intangible assets being recognized . amortization of intangible assets , if applicable , occurs over their estimated useful lives . goodwill is tested annually for impairment as of october 1 , or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with asc 350 , intangibles - goodwill and other . goodwill is tested for impairment at the reporting unit level and is based on the net assets for each reporting unit , including goodwill and intangible assets . the company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount . if , after assessing the totality of events or circumstances , an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount , then performing a quantitative impairment assessment is unnecessary . in assessing the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount , we identify and assess relevant drivers of fair value and events and circumstances that may impact the fair value and the carrying amount of the reporting unit . the identification of relevant events and circumstances and how these may impact a reporting unit 's fair value or carrying amount involve significant judgments and assumptions . the judgments and assumptions include the identification of macroeconomic conditions , industry and market considerations , cost factors , overall financial performance , company-specific events and share price trends and making the assessment on whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact . when performing a quantitative assessment of goodwill impairment if necessary , or in years where we elect to do so , a discounted cash flow model is used to estimate the fair value of each reporting unit , which considers forecasted cash flows discounted at an estimated weighted-average cost of capital . the forecasted cash flows are based on the company 's long-term operating plan and the weighted-average cost of capital is an estimate of the overall after-tax rate of return . other valuation techniques including comparative market multiples are used when appropriate . discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units . based upon our fiscal 2017 and 2016 quantitative and qualitative impairment analyses , except for the bayou reporting unit , the company concluded that it is more likely than not that the fair value of our reporting units continues to exceed the respective carrying amounts . in 2017 and 2016 , due primarily to the decreased demand 23 for barge pumps for the marine transportation market driven by low oil prices and overcapacity of inland barges , the bayou reporting unit recorded pre-tax non-cash goodwill impairment charges of $ 0.9 million and $ 1.8 million , respectively . the company 's annual impairment analysis performed as of october 1 , 2017 concluded that national pump company 's ( national ) fair value exceeded its carrying value by approximately 7 % . a sensitivity analysis was performed for the national reporting unit , assuming a hypothetical 50 basis point decrease in the expected long-term growth rate or a hypothetical 50 basis point increase in the weighted average cost of capital , and both scenarios independently yielded an estimated fair value for the national reporting unit slightly above carrying value . if recently depressed u.s. agricultural conditions continue for an extended time , this market 's related growth and profitability assumptions may reduce national 's indicated fair value to require a potential future impairment charge . goodwill relating to the national reporting unit represents 3 % of the company 's december 31 , 2017 total assets . see note 8 , to the consolidated financial
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2,639 | as our nwfcs credit facility and the timber funds ' mortgages payable . story_separator_special_tag style= `` color : # 000000 ; font-family : 'arial ' , sans-serif ; font-size:10pt ; font-weight:400 ; line-height:120 % `` > 52 cash income tax payments in 2021 are expected to be between $ 13 million and $ 15 million , primarily due to the new zealand subsidiary . performance and liquidity indicators the discussion below is presented to enhance the reader 's understanding of our operating performance , liquidity , ability to generate cash and satisfy rating agency and creditor requirements . this information includes two measures of financial results : adjusted earnings before interest , taxes , depreciation , depletion and amortization ( “ adjusted ebitda ” ) , and cash available for distribution ( “ cad ” ) . these measures are not defined by gaap and the discussion of adjusted ebitda and cad is not intended to conflict with or change any of the gaap disclosures described above . management considers these measures to be important to estimate the enterprise and shareholder values and of our core segments , and for allocating capital resources . in addition , analysts , investors and creditors use these measures when analyzing our operating performance , financial condition and cash generating ability . management uses adjusted ebitda as a performance measure and cad as a liquidity measure . adjusted ebitda and cad as defined may not be comparable to similarly titled measures reported by other companies . these measures should not be considered in isolation from , and are not intended to represent an alternative to , our results reported in accordance with gaap . adjusted ebitda is defined as earnings before interest , taxes , depreciation , depletion , amortization , the non-cash cost of land and improved development , non-operating income and expense , operating loss attributable to noncontrolling interest in timber funds , costs related to the merger with pope resources , timber write-offs resulting from casualty events , and large dispositions . below is a reconciliation of net income to adjusted ebitda for the three years ended december 31 ( in millions of dollars ) : replace_table_token_32_th ( a ) timber write-offs resulting from casualty events include the write-off of merchantable and pre-merchantable timber volume destroyed by casualty events which can not be salvaged . ( b ) costs related to the merger with pope resources include legal , accounting , due diligence , consulting and other costs related to the merger with pope resources . ( c ) large dispositions are defined as transactions involving the sale of timberland that exceed $ 20 million in size and do not have a demonstrable premium relative to timberland value . 53 the following tables provide a reconciliation of operating income ( loss ) by segment to adjusted ebitda by segment for the three years ended december 31 ( in millions of dollars ) : replace_table_token_33_th ( a ) timber funds includes $ 7.3 million related to timber write-offs resulting from casualty events . ( b ) timber write-offs resulting from casualty events includes the write-off of merchantable and pre-merchantable timber volume destroyed by casualty events which can not be salvaged . ( c ) costs related to the merger with pope resources include legal , accounting , due diligence , consulting and other costs related to the merger with pope resources . ( d ) large dispositions are defined as transactions involving the sale of timberland that exceed $ 20 million in size and do not have a demonstrable premium relative to timberland value . cash available for distribution ( cad ) is defined as cash provided by operating activities adjusted for capital spending ( excluding timberland acquisitions and real estate development investments ) , cad attributable to noncontrolling interest in timber funds and working capital and other balance sheet changes . cad is a non-gaap measure of cash generated during a period that is available for common stock dividends , distributions to noncontrolling interest in the operating partnership , distributions to the new zealand minority shareholder , repurchase of the company 's common shares , debt reduction , timberland acquisitions and real estate development investments . in compliance with sec requirements for non-gaap measures , we reduce cad by mandatory debt repayments , which results in the measure entitled “ adjusted cad . ” cad and adjusted cad generated in any period is not necessarily indicative of the cad that may be generated in future periods . 54 below is a reconciliation of cash provided by operating activities to adjusted cad for the three years ended december 31 ( in millions ) : replace_table_token_34_th replace_table_token_35_th ( a ) capital expenditures exclude timberland acquisitions and real estate development investments . ( b ) costs related to the merger with pope resources include legal , accounting , due diligence , consulting and other costs related to the merger with pope resources . ( c ) excludes debt repayments on the new zealand subsidiary noncontrolling interest shareholder loan . the following table provides supplemental cash flow data for the three years ended december 31 ( in millions ) : replace_table_token_36_th ( a ) includes debt repayments on the new zealand subsidiary noncontrolling interest shareholder loan . off-balance sheet arrangements we utilize off-balance sheet arrangements to provide credit support for certain suppliers and vendors in case of their default on critical obligations , and collateral for outstanding claims under our previous workers ' compensation self-insurance programs . these arrangements consist of standby letters of credit and surety bonds . as part of our ongoing operations , we also periodically issue guarantees to third parties . off-balance sheet arrangements are not considered a source of liquidity or capital resources and do not expose us to material risks or material unfavorable financial impacts . see note 14 — guarantees for further discussion . 55 contractual financial obligations in addition to using cash flow from operations , proceeds story_separator_special_tag as our nwfcs credit facility and the timber funds ' mortgages payable . story_separator_special_tag style= `` color : # 000000 ; font-family : 'arial ' , sans-serif ; font-size:10pt ; font-weight:400 ; line-height:120 % `` > 52 cash income tax payments in 2021 are expected to be between $ 13 million and $ 15 million , primarily due to the new zealand subsidiary . performance and liquidity indicators the discussion below is presented to enhance the reader 's understanding of our operating performance , liquidity , ability to generate cash and satisfy rating agency and creditor requirements . this information includes two measures of financial results : adjusted earnings before interest , taxes , depreciation , depletion and amortization ( “ adjusted ebitda ” ) , and cash available for distribution ( “ cad ” ) . these measures are not defined by gaap and the discussion of adjusted ebitda and cad is not intended to conflict with or change any of the gaap disclosures described above . management considers these measures to be important to estimate the enterprise and shareholder values and of our core segments , and for allocating capital resources . in addition , analysts , investors and creditors use these measures when analyzing our operating performance , financial condition and cash generating ability . management uses adjusted ebitda as a performance measure and cad as a liquidity measure . adjusted ebitda and cad as defined may not be comparable to similarly titled measures reported by other companies . these measures should not be considered in isolation from , and are not intended to represent an alternative to , our results reported in accordance with gaap . adjusted ebitda is defined as earnings before interest , taxes , depreciation , depletion , amortization , the non-cash cost of land and improved development , non-operating income and expense , operating loss attributable to noncontrolling interest in timber funds , costs related to the merger with pope resources , timber write-offs resulting from casualty events , and large dispositions . below is a reconciliation of net income to adjusted ebitda for the three years ended december 31 ( in millions of dollars ) : replace_table_token_32_th ( a ) timber write-offs resulting from casualty events include the write-off of merchantable and pre-merchantable timber volume destroyed by casualty events which can not be salvaged . ( b ) costs related to the merger with pope resources include legal , accounting , due diligence , consulting and other costs related to the merger with pope resources . ( c ) large dispositions are defined as transactions involving the sale of timberland that exceed $ 20 million in size and do not have a demonstrable premium relative to timberland value . 53 the following tables provide a reconciliation of operating income ( loss ) by segment to adjusted ebitda by segment for the three years ended december 31 ( in millions of dollars ) : replace_table_token_33_th ( a ) timber funds includes $ 7.3 million related to timber write-offs resulting from casualty events . ( b ) timber write-offs resulting from casualty events includes the write-off of merchantable and pre-merchantable timber volume destroyed by casualty events which can not be salvaged . ( c ) costs related to the merger with pope resources include legal , accounting , due diligence , consulting and other costs related to the merger with pope resources . ( d ) large dispositions are defined as transactions involving the sale of timberland that exceed $ 20 million in size and do not have a demonstrable premium relative to timberland value . cash available for distribution ( cad ) is defined as cash provided by operating activities adjusted for capital spending ( excluding timberland acquisitions and real estate development investments ) , cad attributable to noncontrolling interest in timber funds and working capital and other balance sheet changes . cad is a non-gaap measure of cash generated during a period that is available for common stock dividends , distributions to noncontrolling interest in the operating partnership , distributions to the new zealand minority shareholder , repurchase of the company 's common shares , debt reduction , timberland acquisitions and real estate development investments . in compliance with sec requirements for non-gaap measures , we reduce cad by mandatory debt repayments , which results in the measure entitled “ adjusted cad . ” cad and adjusted cad generated in any period is not necessarily indicative of the cad that may be generated in future periods . 54 below is a reconciliation of cash provided by operating activities to adjusted cad for the three years ended december 31 ( in millions ) : replace_table_token_34_th replace_table_token_35_th ( a ) capital expenditures exclude timberland acquisitions and real estate development investments . ( b ) costs related to the merger with pope resources include legal , accounting , due diligence , consulting and other costs related to the merger with pope resources . ( c ) excludes debt repayments on the new zealand subsidiary noncontrolling interest shareholder loan . the following table provides supplemental cash flow data for the three years ended december 31 ( in millions ) : replace_table_token_36_th ( a ) includes debt repayments on the new zealand subsidiary noncontrolling interest shareholder loan . off-balance sheet arrangements we utilize off-balance sheet arrangements to provide credit support for certain suppliers and vendors in case of their default on critical obligations , and collateral for outstanding claims under our previous workers ' compensation self-insurance programs . these arrangements consist of standby letters of credit and surety bonds . as part of our ongoing operations , we also periodically issue guarantees to third parties . off-balance sheet arrangements are not considered a source of liquidity or capital resources and do not expose us to material risks or material unfavorable financial impacts . see note 14 — guarantees for further discussion . 55 contractual financial obligations in addition to using cash flow from operations , proceeds
| cash flows the following table summarizes our cash flows from operating , investing and financing activities for each of the three years ended december 31 ( in millions of dollars ) : replace_table_token_31_th 51 cash provided by operating activities cash provided by operating activities decreased $ 10.1 million versus the prior year primarily due to $ 17.2 million of merger-related costs , changes in working capital and other assets and liabilities ( $ 6.7 million ) and other items ( $ 5.8 million ) , partially offset by higher adjusted ebitda ( $ 19.6 million ) . cash used for investing activities cash used for investing activities decreased $ 5.8 million versus the prior year primarily due to proceeds from a large disposition ( $ 115.7 million ) , a decrease in timberland acquisitions ( $ 117.6 million ) , lower real estate development investments ( $ 0.3 million ) and other investing activities ( $ 5.8 million ) , partially offset by the net cash consideration transferred in our merger with pope resources ( $ 231.1 million ) and higher capital expenditures ( $ 2.5 million ) . cash provided by financing activities cash provided by financing activities increased $ 106.6 million versus the prior year primarily due to an increase in net borrowings ( $ 86.0 million ) , proceeds from the issuance of common shares under the atm equity offering program ( $ 32.6 million ) and decreases in share repurchases ( $ 7.9 million ) , partially offset by higher dividends paid on common stock ( $ 5.3 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 summarizes our cash flows from operating , investing and financing activities for each of the three years ended december 31 ( in millions of dollars ) : replace_table_token_31_th 51 cash provided by operating activities cash provided by operating activities decreased $ 10.1 million versus the prior year primarily due to $ 17.2 million of merger-related costs , changes in working capital and other assets and liabilities ( $ 6.7 million ) and other items ( $ 5.8 million ) , partially offset by higher adjusted ebitda ( $ 19.6 million ) . cash used for investing activities cash used for investing activities decreased $ 5.8 million versus the prior year primarily due to proceeds from a large disposition ( $ 115.7 million ) , a decrease in timberland acquisitions ( $ 117.6 million ) , lower real estate development investments ( $ 0.3 million ) and other investing activities ( $ 5.8 million ) , partially offset by the net cash consideration transferred in our merger with pope resources ( $ 231.1 million ) and higher capital expenditures ( $ 2.5 million ) . cash provided by financing activities cash provided by financing activities increased $ 106.6 million versus the prior year primarily due to an increase in net borrowings ( $ 86.0 million ) , proceeds from the issuance of common shares under the atm equity offering program ( $ 32.6 million ) and decreases in share repurchases ( $ 7.9 million ) , partially offset by higher dividends paid on common stock ( $ 5.3 million ) ,
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Suspicious Activity Report : as our nwfcs credit facility and the timber funds ' mortgages payable . story_separator_special_tag style= `` color : # 000000 ; font-family : 'arial ' , sans-serif ; font-size:10pt ; font-weight:400 ; line-height:120 % `` > 52 cash income tax payments in 2021 are expected to be between $ 13 million and $ 15 million , primarily due to the new zealand subsidiary . performance and liquidity indicators the discussion below is presented to enhance the reader 's understanding of our operating performance , liquidity , ability to generate cash and satisfy rating agency and creditor requirements . this information includes two measures of financial results : adjusted earnings before interest , taxes , depreciation , depletion and amortization ( “ adjusted ebitda ” ) , and cash available for distribution ( “ cad ” ) . these measures are not defined by gaap and the discussion of adjusted ebitda and cad is not intended to conflict with or change any of the gaap disclosures described above . management considers these measures to be important to estimate the enterprise and shareholder values and of our core segments , and for allocating capital resources . in addition , analysts , investors and creditors use these measures when analyzing our operating performance , financial condition and cash generating ability . management uses adjusted ebitda as a performance measure and cad as a liquidity measure . adjusted ebitda and cad as defined may not be comparable to similarly titled measures reported by other companies . these measures should not be considered in isolation from , and are not intended to represent an alternative to , our results reported in accordance with gaap . adjusted ebitda is defined as earnings before interest , taxes , depreciation , depletion , amortization , the non-cash cost of land and improved development , non-operating income and expense , operating loss attributable to noncontrolling interest in timber funds , costs related to the merger with pope resources , timber write-offs resulting from casualty events , and large dispositions . below is a reconciliation of net income to adjusted ebitda for the three years ended december 31 ( in millions of dollars ) : replace_table_token_32_th ( a ) timber write-offs resulting from casualty events include the write-off of merchantable and pre-merchantable timber volume destroyed by casualty events which can not be salvaged . ( b ) costs related to the merger with pope resources include legal , accounting , due diligence , consulting and other costs related to the merger with pope resources . ( c ) large dispositions are defined as transactions involving the sale of timberland that exceed $ 20 million in size and do not have a demonstrable premium relative to timberland value . 53 the following tables provide a reconciliation of operating income ( loss ) by segment to adjusted ebitda by segment for the three years ended december 31 ( in millions of dollars ) : replace_table_token_33_th ( a ) timber funds includes $ 7.3 million related to timber write-offs resulting from casualty events . ( b ) timber write-offs resulting from casualty events includes the write-off of merchantable and pre-merchantable timber volume destroyed by casualty events which can not be salvaged . ( c ) costs related to the merger with pope resources include legal , accounting , due diligence , consulting and other costs related to the merger with pope resources . ( d ) large dispositions are defined as transactions involving the sale of timberland that exceed $ 20 million in size and do not have a demonstrable premium relative to timberland value . cash available for distribution ( cad ) is defined as cash provided by operating activities adjusted for capital spending ( excluding timberland acquisitions and real estate development investments ) , cad attributable to noncontrolling interest in timber funds and working capital and other balance sheet changes . cad is a non-gaap measure of cash generated during a period that is available for common stock dividends , distributions to noncontrolling interest in the operating partnership , distributions to the new zealand minority shareholder , repurchase of the company 's common shares , debt reduction , timberland acquisitions and real estate development investments . in compliance with sec requirements for non-gaap measures , we reduce cad by mandatory debt repayments , which results in the measure entitled “ adjusted cad . ” cad and adjusted cad generated in any period is not necessarily indicative of the cad that may be generated in future periods . 54 below is a reconciliation of cash provided by operating activities to adjusted cad for the three years ended december 31 ( in millions ) : replace_table_token_34_th replace_table_token_35_th ( a ) capital expenditures exclude timberland acquisitions and real estate development investments . ( b ) costs related to the merger with pope resources include legal , accounting , due diligence , consulting and other costs related to the merger with pope resources . ( c ) excludes debt repayments on the new zealand subsidiary noncontrolling interest shareholder loan . the following table provides supplemental cash flow data for the three years ended december 31 ( in millions ) : replace_table_token_36_th ( a ) includes debt repayments on the new zealand subsidiary noncontrolling interest shareholder loan . off-balance sheet arrangements we utilize off-balance sheet arrangements to provide credit support for certain suppliers and vendors in case of their default on critical obligations , and collateral for outstanding claims under our previous workers ' compensation self-insurance programs . these arrangements consist of standby letters of credit and surety bonds . as part of our ongoing operations , we also periodically issue guarantees to third parties . off-balance sheet arrangements are not considered a source of liquidity or capital resources and do not expose us to material risks or material unfavorable financial impacts . see note 14 — guarantees for further discussion . 55 contractual financial obligations in addition to using cash flow from operations , proceeds story_separator_special_tag as our nwfcs credit facility and the timber funds ' mortgages payable . story_separator_special_tag style= `` color : # 000000 ; font-family : 'arial ' , sans-serif ; font-size:10pt ; font-weight:400 ; line-height:120 % `` > 52 cash income tax payments in 2021 are expected to be between $ 13 million and $ 15 million , primarily due to the new zealand subsidiary . performance and liquidity indicators the discussion below is presented to enhance the reader 's understanding of our operating performance , liquidity , ability to generate cash and satisfy rating agency and creditor requirements . this information includes two measures of financial results : adjusted earnings before interest , taxes , depreciation , depletion and amortization ( “ adjusted ebitda ” ) , and cash available for distribution ( “ cad ” ) . these measures are not defined by gaap and the discussion of adjusted ebitda and cad is not intended to conflict with or change any of the gaap disclosures described above . management considers these measures to be important to estimate the enterprise and shareholder values and of our core segments , and for allocating capital resources . in addition , analysts , investors and creditors use these measures when analyzing our operating performance , financial condition and cash generating ability . management uses adjusted ebitda as a performance measure and cad as a liquidity measure . adjusted ebitda and cad as defined may not be comparable to similarly titled measures reported by other companies . these measures should not be considered in isolation from , and are not intended to represent an alternative to , our results reported in accordance with gaap . adjusted ebitda is defined as earnings before interest , taxes , depreciation , depletion , amortization , the non-cash cost of land and improved development , non-operating income and expense , operating loss attributable to noncontrolling interest in timber funds , costs related to the merger with pope resources , timber write-offs resulting from casualty events , and large dispositions . below is a reconciliation of net income to adjusted ebitda for the three years ended december 31 ( in millions of dollars ) : replace_table_token_32_th ( a ) timber write-offs resulting from casualty events include the write-off of merchantable and pre-merchantable timber volume destroyed by casualty events which can not be salvaged . ( b ) costs related to the merger with pope resources include legal , accounting , due diligence , consulting and other costs related to the merger with pope resources . ( c ) large dispositions are defined as transactions involving the sale of timberland that exceed $ 20 million in size and do not have a demonstrable premium relative to timberland value . 53 the following tables provide a reconciliation of operating income ( loss ) by segment to adjusted ebitda by segment for the three years ended december 31 ( in millions of dollars ) : replace_table_token_33_th ( a ) timber funds includes $ 7.3 million related to timber write-offs resulting from casualty events . ( b ) timber write-offs resulting from casualty events includes the write-off of merchantable and pre-merchantable timber volume destroyed by casualty events which can not be salvaged . ( c ) costs related to the merger with pope resources include legal , accounting , due diligence , consulting and other costs related to the merger with pope resources . ( d ) large dispositions are defined as transactions involving the sale of timberland that exceed $ 20 million in size and do not have a demonstrable premium relative to timberland value . cash available for distribution ( cad ) is defined as cash provided by operating activities adjusted for capital spending ( excluding timberland acquisitions and real estate development investments ) , cad attributable to noncontrolling interest in timber funds and working capital and other balance sheet changes . cad is a non-gaap measure of cash generated during a period that is available for common stock dividends , distributions to noncontrolling interest in the operating partnership , distributions to the new zealand minority shareholder , repurchase of the company 's common shares , debt reduction , timberland acquisitions and real estate development investments . in compliance with sec requirements for non-gaap measures , we reduce cad by mandatory debt repayments , which results in the measure entitled “ adjusted cad . ” cad and adjusted cad generated in any period is not necessarily indicative of the cad that may be generated in future periods . 54 below is a reconciliation of cash provided by operating activities to adjusted cad for the three years ended december 31 ( in millions ) : replace_table_token_34_th replace_table_token_35_th ( a ) capital expenditures exclude timberland acquisitions and real estate development investments . ( b ) costs related to the merger with pope resources include legal , accounting , due diligence , consulting and other costs related to the merger with pope resources . ( c ) excludes debt repayments on the new zealand subsidiary noncontrolling interest shareholder loan . the following table provides supplemental cash flow data for the three years ended december 31 ( in millions ) : replace_table_token_36_th ( a ) includes debt repayments on the new zealand subsidiary noncontrolling interest shareholder loan . off-balance sheet arrangements we utilize off-balance sheet arrangements to provide credit support for certain suppliers and vendors in case of their default on critical obligations , and collateral for outstanding claims under our previous workers ' compensation self-insurance programs . these arrangements consist of standby letters of credit and surety bonds . as part of our ongoing operations , we also periodically issue guarantees to third parties . off-balance sheet arrangements are not considered a source of liquidity or capital resources and do not expose us to material risks or material unfavorable financial impacts . see note 14 — guarantees for further discussion . 55 contractual financial obligations in addition to using cash flow from operations , proceeds
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2,640 | for the calendar year , blizzard entertainment had two top-10 pc games in north america and europe with starcraft ii : wings of liberty® and world of warcraft : cataclysm® . additional highlights on february 2 , 2012 , our board of directors authorized a new stock repurchase program under which we may repurchase up to $ 1 billion of our common stock , on terms and conditions to be determined by the company , during the period between april 1 , 2012 and the earlier of march 31 , 2013 or a determination by the board of directors to discontinue the repurchase program . on february 9 , 2012 , the board of directors declared a cash dividend of $ 0.18 per common share to be paid on may 16 , 2012 to shareholders of record at the close of business on march 21 , 2012. on february 3 , 2011 , our board of directors authorized a new stock repurchase program ( the `` 2011 stock repurchase program `` ) under which we may repurchase up to $ 1.5 billion of our common stock until the earlier of march 31 , 2012 or a determination by the board of directors to discontinue the repurchase program . as of december 31 , 2011 , we have repurchased 59 million shares of common stock under this program at an aggregate purchase price of approximately $ 670 million . additionally , in january 2012 , we settled the purchase of 1 million shares of our common stock that we had committed to repurchase in december 2011 pursuant to the 2011 stock repurchase program for $ 12 million . in january 2011 , we settled a $ 22 million purchase of 1.8 million shares of our common stock that we had agreed to repurchase in december 2010 pursuant to a stock repurchase program under which , until december 31 , 2010 , we were authorized to repurchase up to $ 1 billion of our common stock . on february 9 , 2011 , the board of directors declared a cash dividend of $ 0.165 per common share to be paid on may 11 , 2011 to shareholders of record at the close of business on march 16 , 2011. on may 11 , 2011 , we made an aggregate cash dividend payment of $ 192 million to such shareholders . on august 12 , 2011 , we made dividend equivalent payments of $ 2 million related to this cash dividend to the holders of restricted stock units . product release highlights the following games , among other titles , were released during the year ended december 31 , 2011 : activision : cabela's® adventure camp nascar® the game 2011 cabela's® big game hunter 2012 rapala ® for kinect cabela's® big game hunter hunting party skylanders spyro 's adventure 41 cabela's® survival : shadows of katmai spiderman : edge of time call of duty : black ops content packs transformers : dark of the moon call of duty elite x-men : destiny call of duty : modern warfare 3 wipeout : in the zone goldeneye 007 : reloaded wipeout : season 2 lego star wars iii ( a lucas arts title ) in 2011 , we launched skylanders spyro 's adventure , a game that combines the use of toys with video games , delivering a new game play experience to our audiences . we also debuted call of duty elite , a digital service that provides both free and paid subscription-based content and features for the call of duty franchise . in march 2012 , activision expects to release the first call of duty modern warfare 3 content collection , a compilation of content previously released to call of duty elite premium members , on the xbox 360. in april 2012 , we also plan to release prototype ® 2 , the sequel to our popular open-world action game that was originally released in 2009. recently , blizzard has announced its intention to ship diablo iii in the second quarter of 2012 , released a trailer showcasing the multiplayer aspect of its starcraft ii expansion , heart of the swarm , and announced plans for the fourth world of warcraft expansion pack world of warcraft : mists of pandaria . in addition to developing these games , blizzard is currently developing a new massive multiplayer online game . international operations international sales are a fundamental part of our business . net revenues from international sales accounted for approximately 50 % , 46 % , and 48 % of our total consolidated net revenues for the years ended december 31 , 2011 , 2010 and 2009 , respectively . we maintain significant operations in the united states ( `` u.s. `` ) , canada , the united kingdom ( `` u.k. `` ) , france , germany , ireland , italy , sweden , spain , the netherlands , australia , south korea and china . an important element of our strategy is to develop content locally that is specifically directed toward local cultures and customs to succeed internationally . our international business is subject to risks typical of an international business , including , but not limited to , foreign currency exchange rate volatility . accordingly , our future results could be materially and adversely affected by changes in foreign currency exchange rates . management 's overview of business trends online content and digital downloads we provide our products through both the retail channel and through digital online delivery methods . many of our video games that are available through retailers as physical `` boxed `` software products , such as dvds , are also available through direct digital download over the internet ( both from websites that we own and sites owned by third parties ) . we also offer downloadable content as add-ons to our products ( e.g . , new multi-player content packs ) . story_separator_special_tag 48 these negative impacts on operating income were partially offset by : stronger performance from our call of duty franchise in both retail and digital channels ; a positive shift in the sales mix to higher-margin digital products ; lower sales and marketing expenses as a result of fewer releases ; and savings realized from headcount reductions within certain administrative functions in the first quarter of 2010. blizzard blizzard 's operating income decreased for 2011 as compared to 2010 primarily due to lower revenues as described above . these negative impacts on operating income were partially offset by : a decrease in sales and marketing expenses , as higher sales and marketing expenses were incurred in 2010 to support the release of world of warcraft : cataclysm in the fourth quarter and starcraft ii : wings of liberty in the third quarter ; and lower customer support costs incurred . blizzard 's operating income increased for 2010 as compared to 2009 primarily due to : the release of world of warcraft : cataclysm in the fourth quarter of 2010 and starcraft ii : wings of liberty in the third quarter of 2010 ; an increase in sales of value-added services related to world of warcraft ; and the china region business being back `` on line `` for full year of 2010 and the successful launch of world of warcraft : wrath of the lich king in china in august 2010. non-gaap financial measures the analysis of revenues by distribution channel is presented both on a gaap ( including the impact from change in deferred revenues ) and non-gaap ( excluding the impact from change in deferred revenues ) basis . we use this non-gaap measure internally when evaluating our operating performance , when planning , forecasting and analyzing future periods , and when assessing the performance of our management team . we believe this is appropriate because this non-gaap measure enables an analysis of performance based on the timing of actual transactions with our customers , which is consistent with the way the company is measured by investment analysts and industry data sources , and facilitates comparison of operating performance between periods . in addition , excluding the impact from change in deferred net revenue provides a much more timely indication of trends in our sales and other operating results . while we believe that this non-gaap measure is useful in evaluating our business , this information should be considered as supplemental in nature and is not meant to be considered in isolation from , as a substitute for , or as more important than , the related financial information prepared in accordance with gaap . in addition , this non-gaap financial measure may not be the same as any non-gaap measure presented by another company . this non-gaap financial measure has limitations in that it does not reflect all of the items associated with our gaap revenues . we compensate for the limitations resulting from the exclusion of the change in deferred revenues by considering the impact of that item separately and by considering our gaap , as well as non-gaap , revenues . 49 results of operationsyears ended december 31 , 2011 , 2010 , and 2009 non-gaap financial measures we currently define digital online channels-related sales as revenues from subscriptions and memberships , licensing royalties , value-added services , downloadable content , digitally distributed products , and wireless devices . the following table provides reconciliation between gaap and non-gaap net revenues by distribution channel for the years ended december 31 , 2011 , 2010 , and 2009 ( amounts in millions ) : replace_table_token_8_th ( 1 ) total non-gaap net revenues presented also represents our total operating segment net revenues . the increase in gaap net revenues from digital online channels for 2011 as compared to 2010 was primarily due to the continuing success of the call of duty franchise , including the stronger performance and greater number of downloadable content packs associated with call of duty : black ops released in 2011 versus call of duty : modern warfare 2 in the prior year , and a higher number of full game downloads from the call of duty catalogue titles . in addition , revenues generated from the world of warcraft franchise , particularly from the digital release of world of warcraft : cataclysm in december 2010 , as well as the digital release of starcraft ii : wings of liberty in july 2010 , resulted in more deferred revenues recognized in 2011 as compared to 2010. the increase in gaap net revenues from retail channels for 2011 as compared to 2010 was the result of the continued strong performance of the call of duty franchise as described above , recognition of deferred revenues from the 2010 launches of starcraft ii : wings of liberty and world of warcraft : cataclysm , and revenues generated from the launch of skylanders spyro 's adventure , partially offset by the release of fewer key titles . 50 the decrease in non-gaap net revenues from retail channels for 2011 as compared to 2010 was the result of our more focused slate , with the release of fewer key titles , and lower revenues generated from the casual `` value `` titles . the decrease was partially offset by the continued strong performance of the call of duty franchise and revenues generated from skylanders spyro 's adventure . the increase in non-gaap net revenues from digital online channels for 2011 as compared to 2010 was attributable to the stronger performance and greater number of downloadable content packs associated with call of duty : black ops released in 2011 versus call of duty : modern warfare 2 in the prior year , and a higher number of full game downloads from the call of duty catalogue titles . this increase was partially offset by the unfavorable impact of the decrease in world of warcraft 's subscriber base , the decrease
| cash flows provided by operating activities for 2011 , the primary drivers of cash flows provided by operating activities included the collection of customer receivables generated by the sale of our products and digital and subscription revenues , partially offset by payments to vendors for the manufacture , distribution and marketing of our products , payments to third-party developers and intellectual property holders , tax liabilities , and payments to our workforce . a significant operating use of our cash relates to our continued focus on customer service for our subscribers , and investment in software development and intellectual property licenses . cash flows provided by operating activities were lower for 2011 as compared to 2010. our source of cash inflow varies with our release schedule . for example , blizzard 's two major releases of starcraft ii and world of world : cataclysm during 2010 contributed to the higher cash inflow for 2010 as compared to 2011 as there was no major current year releases from blizzard . the lower cash from operating activities was also attributable to the increased use of cash in our operations , such as for inventory , the payment of taxes , restructuring expenses , and operating expenses for which we had previously accrued . cash flows provided by ( used in ) investing activities the primary drivers of cash flows from investing activities have typically included capital expenditures , acquisitions and the net effect of purchases and sales/maturities of short-term investments . cash flows provided by investing activities were higher for 2011 as compared to 2010 , primarily due to increased proceeds from the maturity of investments , decreased purchases of 59 short-term investments and lower capital expenditures . proceeds from the maturity of investments were $ 740 million , the majority of which consisted of u.s. treasury and other government agency securities , while the purchase of short-term investments totaled $ 417 million and capital expenditures , primarily related to property and equipment , were $ 72 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 provided by operating activities for 2011 , the primary drivers of cash flows provided by operating activities included the collection of customer receivables generated by the sale of our products and digital and subscription revenues , partially offset by payments to vendors for the manufacture , distribution and marketing of our products , payments to third-party developers and intellectual property holders , tax liabilities , and payments to our workforce . a significant operating use of our cash relates to our continued focus on customer service for our subscribers , and investment in software development and intellectual property licenses . cash flows provided by operating activities were lower for 2011 as compared to 2010. our source of cash inflow varies with our release schedule . for example , blizzard 's two major releases of starcraft ii and world of world : cataclysm during 2010 contributed to the higher cash inflow for 2010 as compared to 2011 as there was no major current year releases from blizzard . the lower cash from operating activities was also attributable to the increased use of cash in our operations , such as for inventory , the payment of taxes , restructuring expenses , and operating expenses for which we had previously accrued . cash flows provided by ( used in ) investing activities the primary drivers of cash flows from investing activities have typically included capital expenditures , acquisitions and the net effect of purchases and sales/maturities of short-term investments . cash flows provided by investing activities were higher for 2011 as compared to 2010 , primarily due to increased proceeds from the maturity of investments , decreased purchases of 59 short-term investments and lower capital expenditures . proceeds from the maturity of investments were $ 740 million , the majority of which consisted of u.s. treasury and other government agency securities , while the purchase of short-term investments totaled $ 417 million and capital expenditures , primarily related to property and equipment , were $ 72 million .
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Suspicious Activity Report : for the calendar year , blizzard entertainment had two top-10 pc games in north america and europe with starcraft ii : wings of liberty® and world of warcraft : cataclysm® . additional highlights on february 2 , 2012 , our board of directors authorized a new stock repurchase program under which we may repurchase up to $ 1 billion of our common stock , on terms and conditions to be determined by the company , during the period between april 1 , 2012 and the earlier of march 31 , 2013 or a determination by the board of directors to discontinue the repurchase program . on february 9 , 2012 , the board of directors declared a cash dividend of $ 0.18 per common share to be paid on may 16 , 2012 to shareholders of record at the close of business on march 21 , 2012. on february 3 , 2011 , our board of directors authorized a new stock repurchase program ( the `` 2011 stock repurchase program `` ) under which we may repurchase up to $ 1.5 billion of our common stock until the earlier of march 31 , 2012 or a determination by the board of directors to discontinue the repurchase program . as of december 31 , 2011 , we have repurchased 59 million shares of common stock under this program at an aggregate purchase price of approximately $ 670 million . additionally , in january 2012 , we settled the purchase of 1 million shares of our common stock that we had committed to repurchase in december 2011 pursuant to the 2011 stock repurchase program for $ 12 million . in january 2011 , we settled a $ 22 million purchase of 1.8 million shares of our common stock that we had agreed to repurchase in december 2010 pursuant to a stock repurchase program under which , until december 31 , 2010 , we were authorized to repurchase up to $ 1 billion of our common stock . on february 9 , 2011 , the board of directors declared a cash dividend of $ 0.165 per common share to be paid on may 11 , 2011 to shareholders of record at the close of business on march 16 , 2011. on may 11 , 2011 , we made an aggregate cash dividend payment of $ 192 million to such shareholders . on august 12 , 2011 , we made dividend equivalent payments of $ 2 million related to this cash dividend to the holders of restricted stock units . product release highlights the following games , among other titles , were released during the year ended december 31 , 2011 : activision : cabela's® adventure camp nascar® the game 2011 cabela's® big game hunter 2012 rapala ® for kinect cabela's® big game hunter hunting party skylanders spyro 's adventure 41 cabela's® survival : shadows of katmai spiderman : edge of time call of duty : black ops content packs transformers : dark of the moon call of duty elite x-men : destiny call of duty : modern warfare 3 wipeout : in the zone goldeneye 007 : reloaded wipeout : season 2 lego star wars iii ( a lucas arts title ) in 2011 , we launched skylanders spyro 's adventure , a game that combines the use of toys with video games , delivering a new game play experience to our audiences . we also debuted call of duty elite , a digital service that provides both free and paid subscription-based content and features for the call of duty franchise . in march 2012 , activision expects to release the first call of duty modern warfare 3 content collection , a compilation of content previously released to call of duty elite premium members , on the xbox 360. in april 2012 , we also plan to release prototype ® 2 , the sequel to our popular open-world action game that was originally released in 2009. recently , blizzard has announced its intention to ship diablo iii in the second quarter of 2012 , released a trailer showcasing the multiplayer aspect of its starcraft ii expansion , heart of the swarm , and announced plans for the fourth world of warcraft expansion pack world of warcraft : mists of pandaria . in addition to developing these games , blizzard is currently developing a new massive multiplayer online game . international operations international sales are a fundamental part of our business . net revenues from international sales accounted for approximately 50 % , 46 % , and 48 % of our total consolidated net revenues for the years ended december 31 , 2011 , 2010 and 2009 , respectively . we maintain significant operations in the united states ( `` u.s. `` ) , canada , the united kingdom ( `` u.k. `` ) , france , germany , ireland , italy , sweden , spain , the netherlands , australia , south korea and china . an important element of our strategy is to develop content locally that is specifically directed toward local cultures and customs to succeed internationally . our international business is subject to risks typical of an international business , including , but not limited to , foreign currency exchange rate volatility . accordingly , our future results could be materially and adversely affected by changes in foreign currency exchange rates . management 's overview of business trends online content and digital downloads we provide our products through both the retail channel and through digital online delivery methods . many of our video games that are available through retailers as physical `` boxed `` software products , such as dvds , are also available through direct digital download over the internet ( both from websites that we own and sites owned by third parties ) . we also offer downloadable content as add-ons to our products ( e.g . , new multi-player content packs ) . story_separator_special_tag 48 these negative impacts on operating income were partially offset by : stronger performance from our call of duty franchise in both retail and digital channels ; a positive shift in the sales mix to higher-margin digital products ; lower sales and marketing expenses as a result of fewer releases ; and savings realized from headcount reductions within certain administrative functions in the first quarter of 2010. blizzard blizzard 's operating income decreased for 2011 as compared to 2010 primarily due to lower revenues as described above . these negative impacts on operating income were partially offset by : a decrease in sales and marketing expenses , as higher sales and marketing expenses were incurred in 2010 to support the release of world of warcraft : cataclysm in the fourth quarter and starcraft ii : wings of liberty in the third quarter ; and lower customer support costs incurred . blizzard 's operating income increased for 2010 as compared to 2009 primarily due to : the release of world of warcraft : cataclysm in the fourth quarter of 2010 and starcraft ii : wings of liberty in the third quarter of 2010 ; an increase in sales of value-added services related to world of warcraft ; and the china region business being back `` on line `` for full year of 2010 and the successful launch of world of warcraft : wrath of the lich king in china in august 2010. non-gaap financial measures the analysis of revenues by distribution channel is presented both on a gaap ( including the impact from change in deferred revenues ) and non-gaap ( excluding the impact from change in deferred revenues ) basis . we use this non-gaap measure internally when evaluating our operating performance , when planning , forecasting and analyzing future periods , and when assessing the performance of our management team . we believe this is appropriate because this non-gaap measure enables an analysis of performance based on the timing of actual transactions with our customers , which is consistent with the way the company is measured by investment analysts and industry data sources , and facilitates comparison of operating performance between periods . in addition , excluding the impact from change in deferred net revenue provides a much more timely indication of trends in our sales and other operating results . while we believe that this non-gaap measure is useful in evaluating our business , this information should be considered as supplemental in nature and is not meant to be considered in isolation from , as a substitute for , or as more important than , the related financial information prepared in accordance with gaap . in addition , this non-gaap financial measure may not be the same as any non-gaap measure presented by another company . this non-gaap financial measure has limitations in that it does not reflect all of the items associated with our gaap revenues . we compensate for the limitations resulting from the exclusion of the change in deferred revenues by considering the impact of that item separately and by considering our gaap , as well as non-gaap , revenues . 49 results of operationsyears ended december 31 , 2011 , 2010 , and 2009 non-gaap financial measures we currently define digital online channels-related sales as revenues from subscriptions and memberships , licensing royalties , value-added services , downloadable content , digitally distributed products , and wireless devices . the following table provides reconciliation between gaap and non-gaap net revenues by distribution channel for the years ended december 31 , 2011 , 2010 , and 2009 ( amounts in millions ) : replace_table_token_8_th ( 1 ) total non-gaap net revenues presented also represents our total operating segment net revenues . the increase in gaap net revenues from digital online channels for 2011 as compared to 2010 was primarily due to the continuing success of the call of duty franchise , including the stronger performance and greater number of downloadable content packs associated with call of duty : black ops released in 2011 versus call of duty : modern warfare 2 in the prior year , and a higher number of full game downloads from the call of duty catalogue titles . in addition , revenues generated from the world of warcraft franchise , particularly from the digital release of world of warcraft : cataclysm in december 2010 , as well as the digital release of starcraft ii : wings of liberty in july 2010 , resulted in more deferred revenues recognized in 2011 as compared to 2010. the increase in gaap net revenues from retail channels for 2011 as compared to 2010 was the result of the continued strong performance of the call of duty franchise as described above , recognition of deferred revenues from the 2010 launches of starcraft ii : wings of liberty and world of warcraft : cataclysm , and revenues generated from the launch of skylanders spyro 's adventure , partially offset by the release of fewer key titles . 50 the decrease in non-gaap net revenues from retail channels for 2011 as compared to 2010 was the result of our more focused slate , with the release of fewer key titles , and lower revenues generated from the casual `` value `` titles . the decrease was partially offset by the continued strong performance of the call of duty franchise and revenues generated from skylanders spyro 's adventure . the increase in non-gaap net revenues from digital online channels for 2011 as compared to 2010 was attributable to the stronger performance and greater number of downloadable content packs associated with call of duty : black ops released in 2011 versus call of duty : modern warfare 2 in the prior year , and a higher number of full game downloads from the call of duty catalogue titles . this increase was partially offset by the unfavorable impact of the decrease in world of warcraft 's subscriber base , the decrease
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2,641 | the company recognizes revenue on sales of products when title passes , which can occur at the time of shipment , or when the goods arrive at the customer location depending on the agreement with the customer . the company sells its products to both distributors and end-users . sales to distributors and end-users are recorded based upon the criteria governed by the sales , delivery , and payment terms stated on the invoices from the company to the purchaser . in addition to transfer of title / risk of loss , all revenue is recorded in accordance with the criteria outlined within sab 104 and fasb asc 605 , revenue recognition : ( a ) persuasive evidence of an arrangement ( principally in the form of customer sales orders and the company 's sales invoices ) ; ( b ) delivery and performance ( evidenced by proof of delivery , e.g . the shipment of film and substrates with bill of lading used for proof of delivery for fob shipping point terms , and the carrier booking confirmation report used for fob destination terms ) . once the finished product is shipped and physically delivered under the terms of the invoice and sales order , the company has no additional performance or service obligations to complete ; ( c ) a fixed and determinable sales price ( the company 's pricing is established and is not based on variable terms , as evidenced in either the company 's invoices or the limited number of distribution agreements ; the company rarely grants extended payment terms and has no history of concessions ) ; and ( d ) a reasonable likelihood of payment ( the company 's terms are standard , and the company does not have a substantial history of customer defaults or non-payment ) . sales are reported on a net basis by deducting credits , estimated normal returns and discounts . the company 's return policy does not vary by geography . the customer has no rotation or price protection rights and the company is not under a warranty obligation . freight billed to customers is included in sales . shipping costs are included in cost of goods sold . trade receivables . the company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customer 's current credit worthiness , as determined by review of the current credit information . the company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses based upon historical experience and any specific customer collection issues that have been identified . while such credit losses have historically been within expectations and the provisions established , the company can not guarantee that it will continue to experience the same collection history that has occurred in the past . the general payment terms are net 30-45 days for domestic customers and net 30-90 days for foreign customers . a small percentage of the trade receivables balance is denominated in a foreign currency with no concentration in any given country . at the end of each reporting period , the company analyzes the receivable balance for customers paying in a foreign currency . these balances are adjusted to each quarter or year-end spot rate . the company also maintains a provision based upon historical experience and any specifically identified issues for any customer related returns , refunds or credits . inventories . inventories are valued at the lower of cost or market value using the last in , first out ( lifo ) method . the company monitors its inventory for obsolescence and records reductions from cost when required . income taxes . deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are 13 recognized for taxable temporary differences . temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis . deferred tax assets are reduced by a valuation allowance when , in the opinion of management , it is more likely than not that some portion or all of the deferred tax assets will not be realized . deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment . the tax cut and jobs act of 2017 ( the “ tax reform act ” ) was enacted december 22 , 2017. this legislation makes significant changes in u.s. tax law including a reduction in the corporate tax rates , changes to net operating loss carryforwards and carrybacks and a repeal of the corporate alternative minimum tax . the legislation reduced the u.s. corporate tax rate from the current rate of 34 % and 35 % to 21 % . as a result of the enacted law , the company was required to revalue deferred tax assets and liabilities at the newly enacted rate . this revaluation resulted in a benefit of $ 115,000 to income tax expense in continuing operations and a corresponding reduction in the deferred tax liability . the other provisions of the tax reform act did not have a material impact on the 2017 consolidated financial statements . results of operations year ended december 31 , 2017 compared to year ended december 31 , 2016 sales . story_separator_special_tag the company expects capital expenditures in 2018 of approximately $ 658,000. the planned expenditures primarily will be to upgrade the heating , cooling and ventilation system at the company 's main facility and manufacturing equipment to improve processes and capabilities . these commitments are expected to be funded with cash generated from operating activities . international activity the company markets its products in numerous countries in various regions of the world , including north america , europe , latin america , and asia . the company 's 2017 foreign sales of $ 5.4 million were approximately 30.5 % of total sales , compared to the 2016 foreign sales of $ 4.9 million , which were 28.0 % of total sales . the company realized an increase in foreign sales due to the sale of two dtx printers into europe and improved consumable sales to asia . the company 's foreign transactions are primarily negotiated , invoiced and paid in u.s. dollars , though a portion is transacted in euros . ikonics has not implemented an economic hedging strategy to reduce the risk of foreign currency translation exposures , which management does not believe to be significant based on the scope and geographic diversity of the company 's foreign operations . furthermore , the impact of foreign exchange on the company 's balance sheet and operating results was not material in either 2017 or 2016. future outlook ikonics has spent an average of approximately 4.0 % of annual sales in research and development and has made capital expenditures related to new products and programs . the company plans to maintain its efforts in these 16 areas to expedite internal product development as well as to form technological alliances with outside entities to commercialize new product opportunities . the company continues to make progress on its ams business initiative . although ams experienced a short-term drop in sales during 2017 due to temporary inventory overstocking by a major customer , these sales have returned to expected levels , and the company anticipates continued growth over the long term . the company has two long-term sales agreements in place for its technology with major aerospace companies and is negotiating a third . in anticipation of this growing business , the company increased its ams capacity with a 27,300 square foot expansion at its morgan park site in 2016. the company is also continuing to pursue dtx-related business initiatives and expects increased consumable sales as a result of the sale of two dtx printers in 2017. in addition to making efforts towards growing the inkjet technology business , the company offers a range of products for creating texture surfaces and has introduced a fluid for use in prototyping . the company is currently working on production improvements to enhance its customer offerings . the company has been awarded european , japanese , and united states patents on its dtx technologies . the company has also modified its dtx technology to facilitate entry into the market for prototyping . both the domestic and ikonics imaging units remain profitable in mature markets . although these business units require aggressive strategies to grow market share , both are developing new products and business relationships that we believe will contribute to growth . in october 2017 , the company introduced subthat ! , a patent-pending product for the dye-sublimation market . response to subthat ! has been very encouraging , with the company realizing subthat ! sales of $ 258,000 in the fourth quarter of 2017. in addition to its traditional emphasis on domestic markets , the company will continue efforts to grow its business internationally by attempting to develop new markets and expanding market share where it has already established a presence . however , the strong u.s. dollar has made this challenging . other future activities undertaken to expand the company 's business may include acquisitions , building improvements , equipment additions , new product development and marketing opportunities . off-balance sheet arrangements the company has no off-balance sheet arrangements . recent accounting pronouncements in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers . asu 2014‑09 supersedes the revenue recognition requirements in revenue recognition ( topic 605 ) , and requires entities to recognize revenue in a way 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 to in exchange for those goods or services . in august 2015 , the fasb issued asu 2015-14 , revenue from contracts with customers : deferral of the effective date , which defers the adoption of asu 2014-09 to annual reporting periods beginning after december 15 , 2017 , including interim reporting periods within that reporting period . the standard permits two methods of adoption : retrospectively to each prior reporting period presented ( full retrospective method ) , or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application ( the modified retrospective method ) . the standard also requires expanded disclosures relating to the nature , amount , timing , and uncertainty of revenue and cash flows arising from contracts with customers . additionally , qualitative and quantitative disclosures are required about customer contracts , significant judgments and changes in judgments , and assets recognized from the costs to obtain or fulfill a contract . the company will adopt the provisions of asu 2014-09 on january 1 , 2018 using the modified retrospective method . while most of the company 's revenue is contracted with customers through one-time purchase orders and short-term contracts , the company does have long-term contracts with certain customers . the company is nearly complete with its evaluation of the effect of adoption on its financial statements , and will expand its financial statement disclosures in future periods in order to comply with the new standard . for the revenue streams
| liquidity and capital resources outside of the 2016 building expansion , for which $ 3.4 million in financing was obtained , the company has financed its operations principally with funds generated from operations . these funds have been sufficient to cover the company 's normal operating expenditures , annual capital requirements , and research and development expenditures . cash and cash equivalents were $ 930,000 and $ 1.0 million at december 31 , 2017 and 2016 , respectively . in addition to its cash , the company held $ 2.9 million and $ 3.2 million of short-term investments as of december 31 , 2017 and 2016 , respectively . the company generated $ 205,000 in cash from operating activities during 2017 , compared to generating $ 917,000 of cash from operating activities in 2016. cash provided by operating activities is primarily the result of the net loss adjusted for non-cash depreciation and amortization , deferred taxes , and certain changes in working capital components discussed in the following paragraph . during 2017 , improved collections resulted in a $ 146,000 trade receivables decrease . inventories increased by $ 100,000 related to an increase in finished goods inventories compared to 2016. accounts payable decreased from 2016 to 2017 by $ 409,000 due to the timing of payments to and purchases from vendors , mainly related to raw materials . prepaid expenses and other assets decreased $ 194,000 from 2016 to 2017. the decrease is mainly related to 2016 prepayments on equipment being manufactured that was sold in 2017. compared to 2016 , accrued expenses decreased $ 33,000 reflecting the timing of compensation payments . income taxes receivables decreased $ 64,000 due to the timing of estimated 2017 tax payments compared to the calculated 2017 tax liability . during 2016 , inventories decreased by $ 134,000 related to a decrease in raw material inventories compared to 2015. the timing of collections resulted in a $ 171,000 trade receivables increase in 2016 versus 2015. accounts payable increased from 2015 to 2016 by $ 310,000 due to the timing of payments to and purchases from vendors .
| 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 outside of the 2016 building expansion , for which $ 3.4 million in financing was obtained , the company has financed its operations principally with funds generated from operations . these funds have been sufficient to cover the company 's normal operating expenditures , annual capital requirements , and research and development expenditures . cash and cash equivalents were $ 930,000 and $ 1.0 million at december 31 , 2017 and 2016 , respectively . in addition to its cash , the company held $ 2.9 million and $ 3.2 million of short-term investments as of december 31 , 2017 and 2016 , respectively . the company generated $ 205,000 in cash from operating activities during 2017 , compared to generating $ 917,000 of cash from operating activities in 2016. cash provided by operating activities is primarily the result of the net loss adjusted for non-cash depreciation and amortization , deferred taxes , and certain changes in working capital components discussed in the following paragraph . during 2017 , improved collections resulted in a $ 146,000 trade receivables decrease . inventories increased by $ 100,000 related to an increase in finished goods inventories compared to 2016. accounts payable decreased from 2016 to 2017 by $ 409,000 due to the timing of payments to and purchases from vendors , mainly related to raw materials . prepaid expenses and other assets decreased $ 194,000 from 2016 to 2017. the decrease is mainly related to 2016 prepayments on equipment being manufactured that was sold in 2017. compared to 2016 , accrued expenses decreased $ 33,000 reflecting the timing of compensation payments . income taxes receivables decreased $ 64,000 due to the timing of estimated 2017 tax payments compared to the calculated 2017 tax liability . during 2016 , inventories decreased by $ 134,000 related to a decrease in raw material inventories compared to 2015. the timing of collections resulted in a $ 171,000 trade receivables increase in 2016 versus 2015. accounts payable increased from 2015 to 2016 by $ 310,000 due to the timing of payments to and purchases from vendors .
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Suspicious Activity Report : the company recognizes revenue on sales of products when title passes , which can occur at the time of shipment , or when the goods arrive at the customer location depending on the agreement with the customer . the company sells its products to both distributors and end-users . sales to distributors and end-users are recorded based upon the criteria governed by the sales , delivery , and payment terms stated on the invoices from the company to the purchaser . in addition to transfer of title / risk of loss , all revenue is recorded in accordance with the criteria outlined within sab 104 and fasb asc 605 , revenue recognition : ( a ) persuasive evidence of an arrangement ( principally in the form of customer sales orders and the company 's sales invoices ) ; ( b ) delivery and performance ( evidenced by proof of delivery , e.g . the shipment of film and substrates with bill of lading used for proof of delivery for fob shipping point terms , and the carrier booking confirmation report used for fob destination terms ) . once the finished product is shipped and physically delivered under the terms of the invoice and sales order , the company has no additional performance or service obligations to complete ; ( c ) a fixed and determinable sales price ( the company 's pricing is established and is not based on variable terms , as evidenced in either the company 's invoices or the limited number of distribution agreements ; the company rarely grants extended payment terms and has no history of concessions ) ; and ( d ) a reasonable likelihood of payment ( the company 's terms are standard , and the company does not have a substantial history of customer defaults or non-payment ) . sales are reported on a net basis by deducting credits , estimated normal returns and discounts . the company 's return policy does not vary by geography . the customer has no rotation or price protection rights and the company is not under a warranty obligation . freight billed to customers is included in sales . shipping costs are included in cost of goods sold . trade receivables . the company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customer 's current credit worthiness , as determined by review of the current credit information . the company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses based upon historical experience and any specific customer collection issues that have been identified . while such credit losses have historically been within expectations and the provisions established , the company can not guarantee that it will continue to experience the same collection history that has occurred in the past . the general payment terms are net 30-45 days for domestic customers and net 30-90 days for foreign customers . a small percentage of the trade receivables balance is denominated in a foreign currency with no concentration in any given country . at the end of each reporting period , the company analyzes the receivable balance for customers paying in a foreign currency . these balances are adjusted to each quarter or year-end spot rate . the company also maintains a provision based upon historical experience and any specifically identified issues for any customer related returns , refunds or credits . inventories . inventories are valued at the lower of cost or market value using the last in , first out ( lifo ) method . the company monitors its inventory for obsolescence and records reductions from cost when required . income taxes . deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are 13 recognized for taxable temporary differences . temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis . deferred tax assets are reduced by a valuation allowance when , in the opinion of management , it is more likely than not that some portion or all of the deferred tax assets will not be realized . deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment . the tax cut and jobs act of 2017 ( the “ tax reform act ” ) was enacted december 22 , 2017. this legislation makes significant changes in u.s. tax law including a reduction in the corporate tax rates , changes to net operating loss carryforwards and carrybacks and a repeal of the corporate alternative minimum tax . the legislation reduced the u.s. corporate tax rate from the current rate of 34 % and 35 % to 21 % . as a result of the enacted law , the company was required to revalue deferred tax assets and liabilities at the newly enacted rate . this revaluation resulted in a benefit of $ 115,000 to income tax expense in continuing operations and a corresponding reduction in the deferred tax liability . the other provisions of the tax reform act did not have a material impact on the 2017 consolidated financial statements . results of operations year ended december 31 , 2017 compared to year ended december 31 , 2016 sales . story_separator_special_tag the company expects capital expenditures in 2018 of approximately $ 658,000. the planned expenditures primarily will be to upgrade the heating , cooling and ventilation system at the company 's main facility and manufacturing equipment to improve processes and capabilities . these commitments are expected to be funded with cash generated from operating activities . international activity the company markets its products in numerous countries in various regions of the world , including north america , europe , latin america , and asia . the company 's 2017 foreign sales of $ 5.4 million were approximately 30.5 % of total sales , compared to the 2016 foreign sales of $ 4.9 million , which were 28.0 % of total sales . the company realized an increase in foreign sales due to the sale of two dtx printers into europe and improved consumable sales to asia . the company 's foreign transactions are primarily negotiated , invoiced and paid in u.s. dollars , though a portion is transacted in euros . ikonics has not implemented an economic hedging strategy to reduce the risk of foreign currency translation exposures , which management does not believe to be significant based on the scope and geographic diversity of the company 's foreign operations . furthermore , the impact of foreign exchange on the company 's balance sheet and operating results was not material in either 2017 or 2016. future outlook ikonics has spent an average of approximately 4.0 % of annual sales in research and development and has made capital expenditures related to new products and programs . the company plans to maintain its efforts in these 16 areas to expedite internal product development as well as to form technological alliances with outside entities to commercialize new product opportunities . the company continues to make progress on its ams business initiative . although ams experienced a short-term drop in sales during 2017 due to temporary inventory overstocking by a major customer , these sales have returned to expected levels , and the company anticipates continued growth over the long term . the company has two long-term sales agreements in place for its technology with major aerospace companies and is negotiating a third . in anticipation of this growing business , the company increased its ams capacity with a 27,300 square foot expansion at its morgan park site in 2016. the company is also continuing to pursue dtx-related business initiatives and expects increased consumable sales as a result of the sale of two dtx printers in 2017. in addition to making efforts towards growing the inkjet technology business , the company offers a range of products for creating texture surfaces and has introduced a fluid for use in prototyping . the company is currently working on production improvements to enhance its customer offerings . the company has been awarded european , japanese , and united states patents on its dtx technologies . the company has also modified its dtx technology to facilitate entry into the market for prototyping . both the domestic and ikonics imaging units remain profitable in mature markets . although these business units require aggressive strategies to grow market share , both are developing new products and business relationships that we believe will contribute to growth . in october 2017 , the company introduced subthat ! , a patent-pending product for the dye-sublimation market . response to subthat ! has been very encouraging , with the company realizing subthat ! sales of $ 258,000 in the fourth quarter of 2017. in addition to its traditional emphasis on domestic markets , the company will continue efforts to grow its business internationally by attempting to develop new markets and expanding market share where it has already established a presence . however , the strong u.s. dollar has made this challenging . other future activities undertaken to expand the company 's business may include acquisitions , building improvements , equipment additions , new product development and marketing opportunities . off-balance sheet arrangements the company has no off-balance sheet arrangements . recent accounting pronouncements in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers . asu 2014‑09 supersedes the revenue recognition requirements in revenue recognition ( topic 605 ) , and requires entities to recognize revenue in a way 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 to in exchange for those goods or services . in august 2015 , the fasb issued asu 2015-14 , revenue from contracts with customers : deferral of the effective date , which defers the adoption of asu 2014-09 to annual reporting periods beginning after december 15 , 2017 , including interim reporting periods within that reporting period . the standard permits two methods of adoption : retrospectively to each prior reporting period presented ( full retrospective method ) , or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application ( the modified retrospective method ) . the standard also requires expanded disclosures relating to the nature , amount , timing , and uncertainty of revenue and cash flows arising from contracts with customers . additionally , qualitative and quantitative disclosures are required about customer contracts , significant judgments and changes in judgments , and assets recognized from the costs to obtain or fulfill a contract . the company will adopt the provisions of asu 2014-09 on january 1 , 2018 using the modified retrospective method . while most of the company 's revenue is contracted with customers through one-time purchase orders and short-term contracts , the company does have long-term contracts with certain customers . the company is nearly complete with its evaluation of the effect of adoption on its financial statements , and will expand its financial statement disclosures in future periods in order to comply with the new standard . for the revenue streams
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2,642 | service provider technology includes our airmax , edgemax and airfiber platforms , as well as embedded radio products and other 802.11 standard products including base stations , radios , backhaul equipment and customer premise equipment ( “ cpe ” ) . additionally , service provider technology includes antennas and other products in the 0.9 to 6.0ghz spectrum and miscellaneous products such as mounting brackets , cables and power over ethernet adapters . service provider technology also includes solar products ( sales of which have not been material to date ) and revenues that are attributable to pcs . enterprise technology includes our unifi and mfi platforms , including unifi enterprise wi-fi products , unifi video products , and unifi switching and routing solutions . enterprise technology also includes revenues that are attributable to pcs . 33 we sell our products and solutions globally to service providers and enterprises primarily through our extensive network of distributors , and , to a lesser extent , direct customers . sales to distributors accounted for 99 % of our revenues in the year ended june 30 , 2016 . other channel partners , such as resellers , largely accounted for the balance of our revenues . cost of revenues our cost of revenues is comprised primarily of the costs of procuring finished goods from our contract manufacturers and chipsets that we consign to certain of our contract manufacturers . in addition , cost of revenues includes tooling , labor and other costs associated with engineering , testing and quality assurance , warranty costs , stock-based compensation , logistics related fees and excess and obsolete inventory . in addition to utilizing contract manufacturers , we outsource most of our logistics warehousing and order fulfillment functions , which are located primarily in china , and to a lesser extent , taiwan and united states . we also evaluate and utilize other vendors for various portions of our supply chain from time to time . our operations organization consists of employees and consultants engaged in the management of our contract manufacturers , new product introduction activities , logistical support and engineering . gross profit our gross profit has been , and may in the future be , influenced by several factors including changes in product mix , target end markets for our products , pricing due to competitive pressure , production costs and global demand for electronic components . although we procure and sell our products in u.s. dollars , our contract manufacturers incur many costs , including labor costs , in other currencies . to the extent that the exchange rates move unfavorably for our contract manufacturers , they may try to pass these additional costs on to us , which could have a material impact on our future average selling prices and unit costs . operating expenses we classify our operating expenses as research and development , sales , general and administrative expenses and expense related to the business email compromise fraud loss . research and development expenses consist primarily of salary and benefit expenses , including stock-based compensation , for employees and costs for contractors engaged in research , design and development activities , as well as costs for prototypes , licensed or purchased intellectual property , facilities and travel . over time , we expect our research and development costs to increase as we continue making significant investments in developing new products in addition to new versions of our existing products . sales , general and administrative expenses include salary and benefit expenses , including stock-based compensation , for employees and costs for contractors engaged in sales , marketing and general and administrative activities , as well as the costs of legal expenses , trade shows , marketing programs , promotional materials , bad debt expense , professional services , facilities , general liability insurance and travel . as our product portfolio and targeted markets expand , we may need to employ different sales models , such as building a direct sales force . these sales models would likely increase our costs . over time , we expect our sales , general and administrative expenses to increase in absolute dollars due to continued growth in headcount , expansion of our efforts to register and defend trademarks and patents and to support our business and operations . business e-mail compromise fraud ( recovery ) loss - in june 2015 , we determined that we were the victim of criminal fraud known to law enforcement authorities as business e-mail compromise fraud which involved employee impersonation and fraudulent requests targeting our finance department . the fraud resulted in transfers of funds aggregating $ 46.7 million held by a company subsidiary incorporated in hong kong to other overseas accounts held by third parties , of which we recovered $ 8.1 million in fiscal 2015. as a result , we recorded a charge of $ 39.1 million in the fourth quarter of 2015 , including additional expenses consisting of professional service fees associated with the fraud loss . in fiscal 2016 , the company recorded a net recovery of an additional $ 8.3 million , comprised of an $ 8.6 million recovery less $ 0.3 million of professional service fees associated with the recovery . the company is continuing to pursue the recovery of the remaining $ 30.0 million and is cooperating with u.s. federal and numerous overseas law enforcement authorities who are actively pursuing a multi-agency criminal investigation . however , any additional recoveries are likely remote and , therefore , can not be assured . 34 deferred revenues we recognize revenues when persuasive evidence of an arrangement exists , delivery has occurred , the sales price is fixed or determinable and the collectability of the resulting receivable is reasonably assured . in cases where we lack evidence that all of these criteria have been met , we defer recognition of revenue . story_separator_special_tag this increase in absolute dollar expenditures is primarily driven by a $ 2.5 million impairment charge for capitalized software and software in development costs recognized in the second quarter of fiscal 2016 due to the cancellation of the commercial launch of certain software in development . over time , we expect our research and development costs to continue to increase in absolute dollars as we continue making investments in developing new products in addition to new versions of our existing products . sales , general and administrative sales , general and administrative expenses increased $ 11.7 million , or 54 % , from $ 21.6 million in fiscal 2015 to $ 33.3 million in fiscal 2016 . as a percentage of revenues , sales , general and administrative expenses increased to 5 % in fiscal 2016 , compared to 4 % in fiscal 2015 . the increase in sales , general and administrative expenses in absolute dollars and as a percentage of revenues was due to higher consulting fees incurred to support the finance team and to assist with material weakness remediation , higher legal costs , and an increase in headcount in the business development organization . during fiscal 2017 , we expect our sales , general and administrative expenses to stabilize as we anticipate lower consulting related fees . however , as the business grows , additional costs will be necessary to support this business , to register and defend trademarks and patents and to support our business and operations . business e-mail compromise fraud ( recovery ) loss in june 2015 , we determined that we were the victim of criminal fraud known to law enforcement authorities as business e-mail compromise fraud which involved employee impersonation and fraudulent requests targeting our finance department . the fraud resulted in transfers of funds aggregating $ 46.7 million held by a company subsidiary incorporated in hong kong to other overseas accounts held by third parties . the company recovered $ 8.1 million in fiscal 2015 and recorded a charge of $ 39.1 million in the fourth quarter of fiscal 2015 , including additional expenses consisting of professional service fees associated with the fraud loss . in fiscal 2016 , the company recorded a net recovery of an additional $ 8.3 million , comprised of an $ 8.6 million recovery less $ 0.3 million of professional service fees associated with the recovery . the company is continuing to pursue the recovery of the remaining $ 30.0 million and is cooperating with u.s. federal and numerous overseas law enforcement authorities who are actively pursuing a multi-agency criminal investigation . however , any additional recoveries are likely remote and therefore can not be assured . provision for income taxes our provision for income taxes increased $ 10.2 million from $ 16.1 million for fiscal 2015 to $ 26.3 million for fiscal 2016 . our effective tax rate remained flat at 11 % in both fiscal 2016 and fiscal 2015 because the company 's ratio of domestic and foreign income remained relatively constant for fiscal 2015 and fiscal 2016 . overall , the rate benefit is due to income in foreign jurisdictions that have lower tax rates than the u.s. 39 comparison of years ended june 30 , 2015 and 2014 replace_table_token_9_th revenues revenues increased $ 23.5 million , or 4 % , from $ 572.5 million in fiscal 2014 to $ 595.9 million in fiscal 2015 . we believe the overall increase in revenues during fiscal 2015 was driven by increased adoption of our enterprise technologies , partially offset by a decrease in sales of our service provider technologies due to lower demand from our service provider customers outside of north america , including as a result of political and economic instability in some of those regions . in fiscal 2014 , flytec computers inc. represented 13 % of our revenues . no other distributor or customer represented more than 10 % of our revenues in fiscal 2015 or fiscal 2014 . revenues by product type replace_table_token_10_th service provider technology revenues decreased $ 32.6 million , or 7 % , during fiscal 2015. the decline in revenues from service provider technologies was primarily due to lower demand from our service provider customers outside of north america , including as a result of political and economic instability in some of those regions and the strength of the us dollar during the fiscal year compared to some of the currencies in these regions . enterprise technology revenues increased $ 56.1 million , or 46 % , during fiscal 2015 , primarily due to product expansion and further adoption of our unifi technology platform . 40 revenues by geography we have determined the geographical distribution of our product revenues based on our customers ' ship-to destinations . a majority of our sales are to distributors who in turn sell to resellers or directly to end customers , which may be different countries than the initial ship-to destination . the following are our revenues by geography for fiscal 2015 and fiscal 2014 ( in thousands , except percentages ) : replace_table_token_11_th ( 1 ) revenue for the united states was $ 187.3 million and $ 136.6 million in fiscal 2015 and fiscal 2014 , respectively . north america revenues in north america increased $ 55.3 million , or 39 % , from $ 142.4 million in fiscal 2014 to $ 197.7 million in fiscal 2015. the increase in revenues in north america in fiscal 2015 compared to fiscal 2014 was due to increased adoption of our service provider technologies and enterprise technologies . south america revenues in south america decreased $ 12.5 million , or 11 % , from $ 109.6 million in fiscal 2014 to $ 97.1 million in fiscal 2015. we believe the decrease in revenues in south america in fiscal 2015 compared to fiscal 2014 was primarily due to decreased demand for our service provider technologies due in part to economic instability and partially
| cash flows from operating activities net cash provided by operating activities in fiscal 2016 consisted primarily of net income of $ 213.6 million partially offset by net changes in operating assets and liabilities that resulted in net cash outflows of $ 27.1 million . this net change was primarily driven by outflows arising from a $ 20.0 million increase in inventory , and a $ 9.3 million increase in vendor deposits due to our strategic efforts to reduce lead times and maximize order fulfillments , a $ 16.7 million increase in accounts receivable due to our overall increase in revenue . these outflows were offset by changes in operating assets and liabilities resulting in cash inflows , including a $ 11.0 million increase in accounts payable and accrued liabilities due to the timing of payments with our vendors , a $ 7.0 million net increase in taxes payable and decrease in prepaid income taxes due the timing of federal tax payments , a $ 0.7 million increase in deferred revenue due to additional pcs revenue deferrals during the year and a $ 0.2 million decrease in prepaid expenses and other current assets due to timing of deposit payments with our suppliers . overall , cash inflows from operating activities were driven by our net income , which included non-cash adjustments due to stock-based compensation , depreciation and amortization , increases to our provision for inventory obsolescence , decreases to our provision for losses on deposits with our vendors , decreases in our allowance for doubtful accounts and taxes .
| 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 net cash provided by operating activities in fiscal 2016 consisted primarily of net income of $ 213.6 million partially offset by net changes in operating assets and liabilities that resulted in net cash outflows of $ 27.1 million . this net change was primarily driven by outflows arising from a $ 20.0 million increase in inventory , and a $ 9.3 million increase in vendor deposits due to our strategic efforts to reduce lead times and maximize order fulfillments , a $ 16.7 million increase in accounts receivable due to our overall increase in revenue . these outflows were offset by changes in operating assets and liabilities resulting in cash inflows , including a $ 11.0 million increase in accounts payable and accrued liabilities due to the timing of payments with our vendors , a $ 7.0 million net increase in taxes payable and decrease in prepaid income taxes due the timing of federal tax payments , a $ 0.7 million increase in deferred revenue due to additional pcs revenue deferrals during the year and a $ 0.2 million decrease in prepaid expenses and other current assets due to timing of deposit payments with our suppliers . overall , cash inflows from operating activities were driven by our net income , which included non-cash adjustments due to stock-based compensation , depreciation and amortization , increases to our provision for inventory obsolescence , decreases to our provision for losses on deposits with our vendors , decreases in our allowance for doubtful accounts and taxes .
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Suspicious Activity Report : service provider technology includes our airmax , edgemax and airfiber platforms , as well as embedded radio products and other 802.11 standard products including base stations , radios , backhaul equipment and customer premise equipment ( “ cpe ” ) . additionally , service provider technology includes antennas and other products in the 0.9 to 6.0ghz spectrum and miscellaneous products such as mounting brackets , cables and power over ethernet adapters . service provider technology also includes solar products ( sales of which have not been material to date ) and revenues that are attributable to pcs . enterprise technology includes our unifi and mfi platforms , including unifi enterprise wi-fi products , unifi video products , and unifi switching and routing solutions . enterprise technology also includes revenues that are attributable to pcs . 33 we sell our products and solutions globally to service providers and enterprises primarily through our extensive network of distributors , and , to a lesser extent , direct customers . sales to distributors accounted for 99 % of our revenues in the year ended june 30 , 2016 . other channel partners , such as resellers , largely accounted for the balance of our revenues . cost of revenues our cost of revenues is comprised primarily of the costs of procuring finished goods from our contract manufacturers and chipsets that we consign to certain of our contract manufacturers . in addition , cost of revenues includes tooling , labor and other costs associated with engineering , testing and quality assurance , warranty costs , stock-based compensation , logistics related fees and excess and obsolete inventory . in addition to utilizing contract manufacturers , we outsource most of our logistics warehousing and order fulfillment functions , which are located primarily in china , and to a lesser extent , taiwan and united states . we also evaluate and utilize other vendors for various portions of our supply chain from time to time . our operations organization consists of employees and consultants engaged in the management of our contract manufacturers , new product introduction activities , logistical support and engineering . gross profit our gross profit has been , and may in the future be , influenced by several factors including changes in product mix , target end markets for our products , pricing due to competitive pressure , production costs and global demand for electronic components . although we procure and sell our products in u.s. dollars , our contract manufacturers incur many costs , including labor costs , in other currencies . to the extent that the exchange rates move unfavorably for our contract manufacturers , they may try to pass these additional costs on to us , which could have a material impact on our future average selling prices and unit costs . operating expenses we classify our operating expenses as research and development , sales , general and administrative expenses and expense related to the business email compromise fraud loss . research and development expenses consist primarily of salary and benefit expenses , including stock-based compensation , for employees and costs for contractors engaged in research , design and development activities , as well as costs for prototypes , licensed or purchased intellectual property , facilities and travel . over time , we expect our research and development costs to increase as we continue making significant investments in developing new products in addition to new versions of our existing products . sales , general and administrative expenses include salary and benefit expenses , including stock-based compensation , for employees and costs for contractors engaged in sales , marketing and general and administrative activities , as well as the costs of legal expenses , trade shows , marketing programs , promotional materials , bad debt expense , professional services , facilities , general liability insurance and travel . as our product portfolio and targeted markets expand , we may need to employ different sales models , such as building a direct sales force . these sales models would likely increase our costs . over time , we expect our sales , general and administrative expenses to increase in absolute dollars due to continued growth in headcount , expansion of our efforts to register and defend trademarks and patents and to support our business and operations . business e-mail compromise fraud ( recovery ) loss - in june 2015 , we determined that we were the victim of criminal fraud known to law enforcement authorities as business e-mail compromise fraud which involved employee impersonation and fraudulent requests targeting our finance department . the fraud resulted in transfers of funds aggregating $ 46.7 million held by a company subsidiary incorporated in hong kong to other overseas accounts held by third parties , of which we recovered $ 8.1 million in fiscal 2015. as a result , we recorded a charge of $ 39.1 million in the fourth quarter of 2015 , including additional expenses consisting of professional service fees associated with the fraud loss . in fiscal 2016 , the company recorded a net recovery of an additional $ 8.3 million , comprised of an $ 8.6 million recovery less $ 0.3 million of professional service fees associated with the recovery . the company is continuing to pursue the recovery of the remaining $ 30.0 million and is cooperating with u.s. federal and numerous overseas law enforcement authorities who are actively pursuing a multi-agency criminal investigation . however , any additional recoveries are likely remote and , therefore , can not be assured . 34 deferred revenues we recognize revenues when persuasive evidence of an arrangement exists , delivery has occurred , the sales price is fixed or determinable and the collectability of the resulting receivable is reasonably assured . in cases where we lack evidence that all of these criteria have been met , we defer recognition of revenue . story_separator_special_tag this increase in absolute dollar expenditures is primarily driven by a $ 2.5 million impairment charge for capitalized software and software in development costs recognized in the second quarter of fiscal 2016 due to the cancellation of the commercial launch of certain software in development . over time , we expect our research and development costs to continue to increase in absolute dollars as we continue making investments in developing new products in addition to new versions of our existing products . sales , general and administrative sales , general and administrative expenses increased $ 11.7 million , or 54 % , from $ 21.6 million in fiscal 2015 to $ 33.3 million in fiscal 2016 . as a percentage of revenues , sales , general and administrative expenses increased to 5 % in fiscal 2016 , compared to 4 % in fiscal 2015 . the increase in sales , general and administrative expenses in absolute dollars and as a percentage of revenues was due to higher consulting fees incurred to support the finance team and to assist with material weakness remediation , higher legal costs , and an increase in headcount in the business development organization . during fiscal 2017 , we expect our sales , general and administrative expenses to stabilize as we anticipate lower consulting related fees . however , as the business grows , additional costs will be necessary to support this business , to register and defend trademarks and patents and to support our business and operations . business e-mail compromise fraud ( recovery ) loss in june 2015 , we determined that we were the victim of criminal fraud known to law enforcement authorities as business e-mail compromise fraud which involved employee impersonation and fraudulent requests targeting our finance department . the fraud resulted in transfers of funds aggregating $ 46.7 million held by a company subsidiary incorporated in hong kong to other overseas accounts held by third parties . the company recovered $ 8.1 million in fiscal 2015 and recorded a charge of $ 39.1 million in the fourth quarter of fiscal 2015 , including additional expenses consisting of professional service fees associated with the fraud loss . in fiscal 2016 , the company recorded a net recovery of an additional $ 8.3 million , comprised of an $ 8.6 million recovery less $ 0.3 million of professional service fees associated with the recovery . the company is continuing to pursue the recovery of the remaining $ 30.0 million and is cooperating with u.s. federal and numerous overseas law enforcement authorities who are actively pursuing a multi-agency criminal investigation . however , any additional recoveries are likely remote and therefore can not be assured . provision for income taxes our provision for income taxes increased $ 10.2 million from $ 16.1 million for fiscal 2015 to $ 26.3 million for fiscal 2016 . our effective tax rate remained flat at 11 % in both fiscal 2016 and fiscal 2015 because the company 's ratio of domestic and foreign income remained relatively constant for fiscal 2015 and fiscal 2016 . overall , the rate benefit is due to income in foreign jurisdictions that have lower tax rates than the u.s. 39 comparison of years ended june 30 , 2015 and 2014 replace_table_token_9_th revenues revenues increased $ 23.5 million , or 4 % , from $ 572.5 million in fiscal 2014 to $ 595.9 million in fiscal 2015 . we believe the overall increase in revenues during fiscal 2015 was driven by increased adoption of our enterprise technologies , partially offset by a decrease in sales of our service provider technologies due to lower demand from our service provider customers outside of north america , including as a result of political and economic instability in some of those regions . in fiscal 2014 , flytec computers inc. represented 13 % of our revenues . no other distributor or customer represented more than 10 % of our revenues in fiscal 2015 or fiscal 2014 . revenues by product type replace_table_token_10_th service provider technology revenues decreased $ 32.6 million , or 7 % , during fiscal 2015. the decline in revenues from service provider technologies was primarily due to lower demand from our service provider customers outside of north america , including as a result of political and economic instability in some of those regions and the strength of the us dollar during the fiscal year compared to some of the currencies in these regions . enterprise technology revenues increased $ 56.1 million , or 46 % , during fiscal 2015 , primarily due to product expansion and further adoption of our unifi technology platform . 40 revenues by geography we have determined the geographical distribution of our product revenues based on our customers ' ship-to destinations . a majority of our sales are to distributors who in turn sell to resellers or directly to end customers , which may be different countries than the initial ship-to destination . the following are our revenues by geography for fiscal 2015 and fiscal 2014 ( in thousands , except percentages ) : replace_table_token_11_th ( 1 ) revenue for the united states was $ 187.3 million and $ 136.6 million in fiscal 2015 and fiscal 2014 , respectively . north america revenues in north america increased $ 55.3 million , or 39 % , from $ 142.4 million in fiscal 2014 to $ 197.7 million in fiscal 2015. the increase in revenues in north america in fiscal 2015 compared to fiscal 2014 was due to increased adoption of our service provider technologies and enterprise technologies . south america revenues in south america decreased $ 12.5 million , or 11 % , from $ 109.6 million in fiscal 2014 to $ 97.1 million in fiscal 2015. we believe the decrease in revenues in south america in fiscal 2015 compared to fiscal 2014 was primarily due to decreased demand for our service provider technologies due in part to economic instability and partially
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2,643 | we believe that the principal competitive factors in the consumer and small and medium business markets for networking products include product breadth , price points , size and scope of the sales channel , brand name , timeliness of new product introductions , product availability , performance , features , functionality and reliability , ease-of-installation , maintenance and use , security , and customer service and support . to remain competitive , we believe we must continue to aggressively invest resources in developing new products and subscription services , enhancing our current products , expanding our channels and maintaining customer satisfaction worldwide . our investments reflect our enhanced focus on cybersecurity relating to our products and systems , as the threat of cyber-attacks and exploitation of potential security vulnerabilities in our industry is on the rise and is increasingly a significant consumer concern . 44 we sell our products through multiple sales channels worldwide , including traditional retailers , online retailers , wholesale distributors , direct market resellers ( “ dmrs ” ) , value-added resellers ( “ vars ” ) , broadband service providers and our webstore at www.netgear.com . our retail channel includes traditional retail locations domestically and internationally , such as best buy , costco , wal-mart , staples , office depot , target , fnac ( europe ) , mediamarkt ( europe ) , darty ( france ) , jb hifi ( australia ) , elkjop ( norway ) and sunning and guomei ( china ) . online retailers include amazon.com worldwide , newegg.com ( us ) , jd.com and alibaba ( china ) , as well as coolblue.com ( netherlands ) . our dmrs include cdw corporation , insight corporation and pc connection in domestic markets . our main wholesale distributors include ingram micro , d & h , tech data , exertis ( u.k. ) and synnex . in addition , we also sell our products through broadband service providers , such as multiple system operators ( “ msos ” ) , xdsl , mobile , and other broadband technology operators domestically and internationally . some of these retailers and broadband service providers purchase directly from us , while others are fulfilled through wholesale distributors around the world . a substantial portion of our net revenue is derived from a limited number of wholesale distributors , service providers and retailers . we expect this trend will continue in the foreseeable future . financial overview during fiscal 2019 , our net revenue decreased by $ 60.1 million , or 5.7 % , while income from operations declined $ 12.5 million , or 32.4 % , compared with the prior year . the decrease in net revenue was mainly attributable to the performance of the connected home segment which experienced net revenue decline of 7.7 % while smb segment net revenue remained flat . the decrease in connected home net revenue was primarily driven by a decline in net revenue from our home wireless , mobile and broadband modem and gateway products . gross margin decreased from 32.3 % in the prior year to 29.5 % , primarily due to higher product acquisition costs , mainly as a result of the imposition of section 301 tariffs , and higher channel promotional activities relative to revenue . the decline in gross margin was partially offset by a decrease of $ 34.9 million in operating expenses , primarily due to lower expenditures in general and administrative of $ 15.4 million , sales and marketing of $ 14.4 million , and research and development of $ 4.4 million . the decline in operating expenses was mainly due to lower personnel-related expenditures resulting from reduced headcount , and lower it and facilities expenditures post separation with arlo . on a geographic basis , net revenue decreased in all three regions during fiscal 2019 compared to the prior year . the decline in net revenue in north america was precipitated by a contraction of the north american wifi market on a year over year basis and lower sales to service providers , while international territories were affected by the strengthening of the u.s. dollar in emea and geopolitical challenges in the greater china region . the decrease in the americas net revenue was primarily driven by lower net revenue of our home wireless and mobile products , partially offset by higher net revenue of our broadband modem and gateway products . the decline in emea net revenue was primarily attributable to lower net revenue of our home wireless products , partially offset by increased net revenue of our mobile products . apac net revenue decreased due to lower net revenue of our broadband modem and gateway , home wireless products and network storage products , partially offset by higher net revenue of our mobile products and switches . looking forward , we are targeting low single digit growth in fiscal 2020 for both connected home and smb combined . we expect gross margin to improve as our u.s. bound inventory will primarily not be subject to section 301 tariffs in fiscal 2020. we will look to continue to capitalize on the technological inflection points of wifi 6 , 5g and pro-av switching through new product introductions and to develop and roll out service offerings to build recurring service revenue streams . we expect service provider net revenue to average approximately $ 25 million for connected home and smb combined per quarter in the first half of 2020. critical accounting policies and estimates our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the united states of america and pursuant to the rules and regulations of the u.s. securities and exchange commission ( `` sec `` ) . the preparation of these financial statements requires management to make assumptions , judgments and estimates that can have a significant impact on the reported amounts of assets , liabilities , revenues and expenses . story_separator_special_tag the lower net revenue was primarily attributable to lower net revenue of our home wireless and mobile products , partially offset by higher net revenue of our broadband modem and gateway products . the contraction in the north american wifi market in fiscal 2019 impacted demand for home wireless products to non-service provider customers . the mobile product decrease was mainly attributable to service provider customers . net revenue from service providers declined by $ 28.8 million across all products in fiscal 2019 , primarily driven by the culmination of a supply agreement with one of our north american partners . additionally , net revenue was negatively impacted by increased channel promotional activities and sales returns deemed to be a reduction of revenue compared to the prior year . on a segment basis , net revenue from connected home and smb fell by 8.1 % and 1.0 % compared to the prior year , respectively . net revenue in emea decreased for the year ended december 31 , 2019 compared to the prior year . net revenue in emea was negatively impacted by $ 8.3 million due to the strengthening of the u.s. dollar compared to the prior year . the decrease in emea was primarily attributable to lower net revenue of our home wireless products , partially offset by increased net revenue of our mobile products . on a segment basis , net revenue from connected home and smb fell by 6.5 % and 1.0 % compared to the prior year , respectively . apac net revenue decreased for the year ended december 31 , 2019 compared to the prior year . net revenue in the greater china region declined in the second half of 2019 impacted by geopolitical challenges . the fall in apac was primarily attributable to lower net revenue of our broadband modem and gateway and home wireless products , partially offset by higher net revenue of mobile and switches . on a segment basis , net revenue from connected home and smb fell by 7.0 % and increased by 3.6 % compared to the prior year , respectively . 2018 vs 2017 the increase in americas net revenue for the year ended december 31 , 2018 compared to the prior year was due to higher net revenue of home wireless , broadband modem and gateway products , and switches . the increase in net revenue was driven by sales to non-service provider customers , with sales to service provider customers falling by $ 6.4 million compared to the prior year . net revenue to non-service provider customers increased mainly due to home wireless products which experienced strong performance in wi-fi systems . net revenue was negatively impacted by channel promotion activities deemed to be a reduction of revenue increasing disproportionately compared to the prior year . emea net revenue increased for the year ended december 31 , 2018 , compared to the prior year , driven by increased net revenue of home wireless products and switches , partially offset by slight declines in net revenue of our broadband modem and gateway products . connected home and smb net revenue increased by 6.9 % and 8.4 % , respectively , mainly due to growth in the aforementioned product categories . the growth in net revenue was driven by non-service provider customers with net revenue from service providers falling slightly compared to the prior year . apac net revenue decreased for the year ended december 31 , 2018 , compared to the prior year . the decrease was primarily attributable to lower net revenue of our mobile , broadband modem and gateway , and home wireless products , partially offset by higher net revenue of switches . the fall in net revenue from mobile , broadband modem and gateway products was due to lower net revenue from service provider customers which fell approximately $ 23.4 million compared to the prior year . cost of revenue and gross margin cost of revenue consists primarily of the following : the cost of finished products from our third party manufacturers ; overhead costs , including purchasing , product planning , inventory control , warehousing and distribution logistics ; third-party software licensing fees ; inbound freight ; import duties/tariffs ; warranty costs associated with returned goods ; write-downs for excess and obsolete inventory ; amortization of certain acquired intangibles and capitalized software development cost ; and costs attributable to the provision of service offerings . 50 we outsource our manufacturing , warehousing and distribution logistics . we believe this outsourcing strategy allows us to better manage our product costs and gross margin . our gross margin can be affected by a number of factors , including fluctuation in foreign exchange rates , sales returns , changes in average selling prices , end-user customer rebates and othe r channel sales incentives , changes in our cost of goods sold due to fluctuations in prices paid for components , net of vendor rebates , warranty and overhead costs , inbound freight and duty/tariffs , conversion costs , charges for excess or obsolete inventory and amortization of acquired intangibles . the following table presents costs of revenue and gross margin , for the periods indicated : replace_table_token_7_th 2019 vs 2018 cost of revenue decreased for the year ended december 31 , 2019 , compared to the prior year , primarily due to net revenue declining . gross margin decreased for the year ended december 31 , 2019 compared to the prior year . gross margin was negatively impacted by the imposition of section 301 tariffs originally announced in late 2018 and cost inefficiencies experienced in our new manufacturing locations outside of china , an increase in channel promotional activities relative to revenue as well as foreign exchange headwinds due to the strengthening of the u.s. dollar . 2018 vs 2017 cost of revenue decreased for the year ended december 31 , 2018 primarily due to improved product margin performance , lower proportionate provisions for
| liquidity and capital resources our principal sources of liquidity are cash , cash equivalents , short-term investments , and cash generated from operations . as of december 31 , 2019 , we had cash , cash equivalents and short-term investments totaling $ 195.7 million . our cash and cash equivalents balance decreased from $ 201.0 million as of december 31 , 2018 to $ 190.2 million as of december 31 , 2019. our short-term investments decreased from $ 73.3 million as of december 31 , 2018 to $ 5.5 million as of december 31 , 2019. the decrease of $ 78.7 million in cash , cash equivalents , short-term investments as of december 31 , 2019 from december 31 , 2018 was mainly attributable to repurchases of common stock of $ 75.9 million in 2019. cash from net income of $ 25.8 million was largely offset by uses in working capital mainly relating to higher payments to trade suppliers . as of december 31 , 2019 , approximately 63 % of our cash and cash equivalents and short-term investments were outside of the u.s. the cash and cash equivalents and short-term investments balances outside of the u.s. are subject to fluctuation based on the settlement of intercompany balances . as we repatriate these funds in accordance with our designation of funds not permanently reinvested outside of the us , we will be required to pay income taxes in certain u.s. states and applicable foreign withholding taxes during the period when such repatriation occurs . we have recorded deferred taxes for the tax effect of repatriating the funds to the u.s. the following table presents our cash flows for the periods presented : replace_table_token_16_th continuing operating activities net cash provided by continuing operating activities was $ 13.5 million for fiscal 2019 as compared to net cash used in continuing operating activities of $ 15.1 million in fiscal 2018. the increase in cash inflows from continuing operating activities was primarily due to favorable working capital movements and higher net 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.
```liquidity and capital resources our principal sources of liquidity are cash , cash equivalents , short-term investments , and cash generated from operations . as of december 31 , 2019 , we had cash , cash equivalents and short-term investments totaling $ 195.7 million . our cash and cash equivalents balance decreased from $ 201.0 million as of december 31 , 2018 to $ 190.2 million as of december 31 , 2019. our short-term investments decreased from $ 73.3 million as of december 31 , 2018 to $ 5.5 million as of december 31 , 2019. the decrease of $ 78.7 million in cash , cash equivalents , short-term investments as of december 31 , 2019 from december 31 , 2018 was mainly attributable to repurchases of common stock of $ 75.9 million in 2019. cash from net income of $ 25.8 million was largely offset by uses in working capital mainly relating to higher payments to trade suppliers . as of december 31 , 2019 , approximately 63 % of our cash and cash equivalents and short-term investments were outside of the u.s. the cash and cash equivalents and short-term investments balances outside of the u.s. are subject to fluctuation based on the settlement of intercompany balances . as we repatriate these funds in accordance with our designation of funds not permanently reinvested outside of the us , we will be required to pay income taxes in certain u.s. states and applicable foreign withholding taxes during the period when such repatriation occurs . we have recorded deferred taxes for the tax effect of repatriating the funds to the u.s. the following table presents our cash flows for the periods presented : replace_table_token_16_th continuing operating activities net cash provided by continuing operating activities was $ 13.5 million for fiscal 2019 as compared to net cash used in continuing operating activities of $ 15.1 million in fiscal 2018. the increase in cash inflows from continuing operating activities was primarily due to favorable working capital movements and higher net income .
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Suspicious Activity Report : we believe that the principal competitive factors in the consumer and small and medium business markets for networking products include product breadth , price points , size and scope of the sales channel , brand name , timeliness of new product introductions , product availability , performance , features , functionality and reliability , ease-of-installation , maintenance and use , security , and customer service and support . to remain competitive , we believe we must continue to aggressively invest resources in developing new products and subscription services , enhancing our current products , expanding our channels and maintaining customer satisfaction worldwide . our investments reflect our enhanced focus on cybersecurity relating to our products and systems , as the threat of cyber-attacks and exploitation of potential security vulnerabilities in our industry is on the rise and is increasingly a significant consumer concern . 44 we sell our products through multiple sales channels worldwide , including traditional retailers , online retailers , wholesale distributors , direct market resellers ( “ dmrs ” ) , value-added resellers ( “ vars ” ) , broadband service providers and our webstore at www.netgear.com . our retail channel includes traditional retail locations domestically and internationally , such as best buy , costco , wal-mart , staples , office depot , target , fnac ( europe ) , mediamarkt ( europe ) , darty ( france ) , jb hifi ( australia ) , elkjop ( norway ) and sunning and guomei ( china ) . online retailers include amazon.com worldwide , newegg.com ( us ) , jd.com and alibaba ( china ) , as well as coolblue.com ( netherlands ) . our dmrs include cdw corporation , insight corporation and pc connection in domestic markets . our main wholesale distributors include ingram micro , d & h , tech data , exertis ( u.k. ) and synnex . in addition , we also sell our products through broadband service providers , such as multiple system operators ( “ msos ” ) , xdsl , mobile , and other broadband technology operators domestically and internationally . some of these retailers and broadband service providers purchase directly from us , while others are fulfilled through wholesale distributors around the world . a substantial portion of our net revenue is derived from a limited number of wholesale distributors , service providers and retailers . we expect this trend will continue in the foreseeable future . financial overview during fiscal 2019 , our net revenue decreased by $ 60.1 million , or 5.7 % , while income from operations declined $ 12.5 million , or 32.4 % , compared with the prior year . the decrease in net revenue was mainly attributable to the performance of the connected home segment which experienced net revenue decline of 7.7 % while smb segment net revenue remained flat . the decrease in connected home net revenue was primarily driven by a decline in net revenue from our home wireless , mobile and broadband modem and gateway products . gross margin decreased from 32.3 % in the prior year to 29.5 % , primarily due to higher product acquisition costs , mainly as a result of the imposition of section 301 tariffs , and higher channel promotional activities relative to revenue . the decline in gross margin was partially offset by a decrease of $ 34.9 million in operating expenses , primarily due to lower expenditures in general and administrative of $ 15.4 million , sales and marketing of $ 14.4 million , and research and development of $ 4.4 million . the decline in operating expenses was mainly due to lower personnel-related expenditures resulting from reduced headcount , and lower it and facilities expenditures post separation with arlo . on a geographic basis , net revenue decreased in all three regions during fiscal 2019 compared to the prior year . the decline in net revenue in north america was precipitated by a contraction of the north american wifi market on a year over year basis and lower sales to service providers , while international territories were affected by the strengthening of the u.s. dollar in emea and geopolitical challenges in the greater china region . the decrease in the americas net revenue was primarily driven by lower net revenue of our home wireless and mobile products , partially offset by higher net revenue of our broadband modem and gateway products . the decline in emea net revenue was primarily attributable to lower net revenue of our home wireless products , partially offset by increased net revenue of our mobile products . apac net revenue decreased due to lower net revenue of our broadband modem and gateway , home wireless products and network storage products , partially offset by higher net revenue of our mobile products and switches . looking forward , we are targeting low single digit growth in fiscal 2020 for both connected home and smb combined . we expect gross margin to improve as our u.s. bound inventory will primarily not be subject to section 301 tariffs in fiscal 2020. we will look to continue to capitalize on the technological inflection points of wifi 6 , 5g and pro-av switching through new product introductions and to develop and roll out service offerings to build recurring service revenue streams . we expect service provider net revenue to average approximately $ 25 million for connected home and smb combined per quarter in the first half of 2020. critical accounting policies and estimates our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the united states of america and pursuant to the rules and regulations of the u.s. securities and exchange commission ( `` sec `` ) . the preparation of these financial statements requires management to make assumptions , judgments and estimates that can have a significant impact on the reported amounts of assets , liabilities , revenues and expenses . story_separator_special_tag the lower net revenue was primarily attributable to lower net revenue of our home wireless and mobile products , partially offset by higher net revenue of our broadband modem and gateway products . the contraction in the north american wifi market in fiscal 2019 impacted demand for home wireless products to non-service provider customers . the mobile product decrease was mainly attributable to service provider customers . net revenue from service providers declined by $ 28.8 million across all products in fiscal 2019 , primarily driven by the culmination of a supply agreement with one of our north american partners . additionally , net revenue was negatively impacted by increased channel promotional activities and sales returns deemed to be a reduction of revenue compared to the prior year . on a segment basis , net revenue from connected home and smb fell by 8.1 % and 1.0 % compared to the prior year , respectively . net revenue in emea decreased for the year ended december 31 , 2019 compared to the prior year . net revenue in emea was negatively impacted by $ 8.3 million due to the strengthening of the u.s. dollar compared to the prior year . the decrease in emea was primarily attributable to lower net revenue of our home wireless products , partially offset by increased net revenue of our mobile products . on a segment basis , net revenue from connected home and smb fell by 6.5 % and 1.0 % compared to the prior year , respectively . apac net revenue decreased for the year ended december 31 , 2019 compared to the prior year . net revenue in the greater china region declined in the second half of 2019 impacted by geopolitical challenges . the fall in apac was primarily attributable to lower net revenue of our broadband modem and gateway and home wireless products , partially offset by higher net revenue of mobile and switches . on a segment basis , net revenue from connected home and smb fell by 7.0 % and increased by 3.6 % compared to the prior year , respectively . 2018 vs 2017 the increase in americas net revenue for the year ended december 31 , 2018 compared to the prior year was due to higher net revenue of home wireless , broadband modem and gateway products , and switches . the increase in net revenue was driven by sales to non-service provider customers , with sales to service provider customers falling by $ 6.4 million compared to the prior year . net revenue to non-service provider customers increased mainly due to home wireless products which experienced strong performance in wi-fi systems . net revenue was negatively impacted by channel promotion activities deemed to be a reduction of revenue increasing disproportionately compared to the prior year . emea net revenue increased for the year ended december 31 , 2018 , compared to the prior year , driven by increased net revenue of home wireless products and switches , partially offset by slight declines in net revenue of our broadband modem and gateway products . connected home and smb net revenue increased by 6.9 % and 8.4 % , respectively , mainly due to growth in the aforementioned product categories . the growth in net revenue was driven by non-service provider customers with net revenue from service providers falling slightly compared to the prior year . apac net revenue decreased for the year ended december 31 , 2018 , compared to the prior year . the decrease was primarily attributable to lower net revenue of our mobile , broadband modem and gateway , and home wireless products , partially offset by higher net revenue of switches . the fall in net revenue from mobile , broadband modem and gateway products was due to lower net revenue from service provider customers which fell approximately $ 23.4 million compared to the prior year . cost of revenue and gross margin cost of revenue consists primarily of the following : the cost of finished products from our third party manufacturers ; overhead costs , including purchasing , product planning , inventory control , warehousing and distribution logistics ; third-party software licensing fees ; inbound freight ; import duties/tariffs ; warranty costs associated with returned goods ; write-downs for excess and obsolete inventory ; amortization of certain acquired intangibles and capitalized software development cost ; and costs attributable to the provision of service offerings . 50 we outsource our manufacturing , warehousing and distribution logistics . we believe this outsourcing strategy allows us to better manage our product costs and gross margin . our gross margin can be affected by a number of factors , including fluctuation in foreign exchange rates , sales returns , changes in average selling prices , end-user customer rebates and othe r channel sales incentives , changes in our cost of goods sold due to fluctuations in prices paid for components , net of vendor rebates , warranty and overhead costs , inbound freight and duty/tariffs , conversion costs , charges for excess or obsolete inventory and amortization of acquired intangibles . the following table presents costs of revenue and gross margin , for the periods indicated : replace_table_token_7_th 2019 vs 2018 cost of revenue decreased for the year ended december 31 , 2019 , compared to the prior year , primarily due to net revenue declining . gross margin decreased for the year ended december 31 , 2019 compared to the prior year . gross margin was negatively impacted by the imposition of section 301 tariffs originally announced in late 2018 and cost inefficiencies experienced in our new manufacturing locations outside of china , an increase in channel promotional activities relative to revenue as well as foreign exchange headwinds due to the strengthening of the u.s. dollar . 2018 vs 2017 cost of revenue decreased for the year ended december 31 , 2018 primarily due to improved product margin performance , lower proportionate provisions for
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2,644 | the majority of revenue from our pandora business is generated from advertising on our pandora ad-supported radio service . in addition , through adswizz , pandora provides a comprehensive digital audio advertising technology platform , which connects audio publishers and advertisers . as of december 31 , 2019 , our pandora business had approximately 63.5 million monthly active users . liberty media as of december 31 , 2019 , liberty media beneficially owned , directly and indirectly , approximately 72 % of the outstanding shares of our common stock . as a result , we are a “ controlled company ” for the purposes of the nasdaq corporate governance requirements . 32 results of operations actual results set forth below are our results of operations for the year ended december 31 , 2019 compared with the year ended december 31 , 2018 and for the year ended december 31 , 2018 compared with the year ended december 31 , 2017 . the inclusion of pandora 's results in the year ended december 31 , 2019 ( since the date of the pandora acquisition on february 1 , 2019 ) may render direct comparisons with results for prior periods less meaningful . the results of operations are presented for each of our reporting segments for revenue and cost of services and on a consolidated basis for all other items . replace_table_token_3_th 33 nm - not meaningful sirius xm revenue refer to page 38 for our discussion on sirius xm revenue . pandora revenue pandora revenue includes actual results for the period from the acquisition date to december 31 , 2019. refer to page 40 for our discussion on pandora revenue . sirius xm cost of services refer to page 40 for our discussion on sirius xm cost of services . pandora cost of services pandora cost of services includes actual results for the period from the acquisition date to december 31 , 2019. refer to page 42 for our discussion on pandora cost of services . operating costs subscriber acquisition costs are costs associated with our satellite radio service and include hardware subsidies paid to radio manufacturers , distributors and automakers ; subsidies paid for chipsets and certain other components used in manufacturing radios ; device royalties for certain radios and chipsets ; product warranty obligations ; and freight . the majority of subscriber acquisition costs are incurred and expensed in advance of acquiring a subscriber . subscriber acquisition costs do not include advertising costs , marketing , loyalty payments to distributors and dealers of satellite radios or revenue share payments to automakers and retailers of satellite radios . 2019 vs. 2018 : for the years ended december 31 , 2019 and 2018 , subscriber acquisition costs were $ 427 and $ 470 , respectively , a decrease of 9 % , or $ 43 , and decreased as a percentage of total revenue . the decrease was driven by reductions to oem hardware subsidy rates , lower subsidized costs related to the transition of chipsets , and a decrease in the volume of satellite radio installations . 2018 vs. 2017 : for the years ended december 31 , 2018 and 2017 , subscriber acquisition costs were $ 470 and $ 499 , respectively , a decrease of 6 % , or $ 29 , and decreased as a percentage of total revenue . the decrease was driven by reductions to oem hardware subsidy rates , lower subsidized costs related to the transition of chipsets , and a decrease in the volume of satellite radio installations . we expect subscriber acquisition costs to fluctuate with oem installations ; however , the subsidized chipsets cost is expected to decline as we transition to a new generation of chipsets . we intend to continue to offer subsidies and other incentives to induce oems to include our technology in their vehicles . sales and marketing includes costs for marketing , advertising , media and production , including promotional events and sponsorships ; cooperative and artist marketing ; and personnel related costs including salaries , commissions , and sales support . marketing costs include expenses related to direct mail , outbound telemarketing , email communications , and digital performance media . 2019 vs. 2018 : for the years ended december 31 , 2019 and 2018 , sales and marketing expenses were $ 937 and $ 484 , respectively , an increase of 94 % , or $ 453 , and increased as a percentage of total revenue . the increase was primarily due to the inclusion of pandora , and additional subscriber communications and acquisition campaigns . 2018 vs. 2017 : for the years ended december 31 , 2018 and 2017 , sales and marketing expenses were $ 484 and $ 438 , respectively , an increase of 11 % , or $ 46 , and increased as a percentage of total revenue . the increase was primarily due to additional subscriber communications , retention programs and acquisition campaigns as well as higher personnel-related costs . 34 we anticipate that sales and marketing expenses will increase as we expand programs to retain our existing subscribers , win back former subscribers , and attract new subscribers . engineering , design and development consists primarily of compensation and related costs to develop chipsets and new products and services , including streaming and connected vehicle services , research and development for broadcast information systems and the design and development costs to incorporate sirius xm radios into new vehicles manufactured by automakers . 2019 vs. 2018 : for the years ended december 31 , 2019 and 2018 , engineering , design and development expenses were $ 280 and $ 123 , respectively , an increase of 128 % , or $ 157 , and increased as a percentage of total revenue . the increase was driven primarily by the inclusion of pandora . story_separator_special_tag total consolidated revenue total consolidated revenue for the years ended december 31 , 2019 and 2018 , was $ 7,921 and $ 7,348 , respectively , an increase of 8 % , or $ 573 . total consolidated revenue for the years ended december 31 , 2018 and 2017 , was $ 7,348 and $ 6,818 , respectively , an increase of 8 % , or $ 530 . sirius xm cost of services sirius xm cost of services includes revenue share and royalties , programming and content , customer service and billing and transmission expenses . sirius xm revenue share and royalties include royalties for transmitting content , including streaming royalties , as well as automaker , content provider and advertising revenue share . 2019 vs. 2018 : for the years ended december 31 , 2019 and 2018 , revenue share and royalties were $ 1,431 and $ 1,394 , respectively , an increase of 3 % , or $ 37 , but decreased as a percentage of total sirius xm revenue . the increase was driven by overall greater revenues subject to royalties and revenue share . the increase was partially offset by a $ 69 charge during the second quarter of 2018 related to the legal settlement that resolved all outstanding claims , including ongoing audits , under sirius xm 's statutory license for sound recordings for the period january 1 , 2007 through december 31 , 2017 . 2018 vs. 2017 : for the years ended december 31 , 2018 and 2017 , revenue share and royalties were $ 1,394 and $ 1,210 , respectively , an increase of 15 % , or $ 184 , and increased as a percentage of total sirius xm revenue . the increase was driven by an increase in the statutory royalty rate applicable to our use of post-1972 recordings , which increased from 11 % in 2017 to 15.5 % in 2018 , and overall greater revenues subject to revenue share with the automakers . included in the increase was a $ 69 charge related to the legal settlement that resolved outstanding claims , including ongoing audits , under our statutory license for sound recordings for the period january 1 , 2007 through december 31 , 2017. in 2017 , we recorded $ 45 of expense related to music royalty legal settlements and related reserves . the increase was partially offset by approximately $ 88 for the year ended december 31 , 2018 , related to the adoption of asu 2014‑09 , which established accounting standard codification ( asc ) topic 606 , revenue ‑ revenue from contracts with customers , effective as of january 1 , 2018 . 40 we expect our sirius xm revenue share and royalty costs to increase as our revenues grow . sirius xm programming and content includes costs to acquire , create , promote and produce content . we have entered into various agreements with third parties for music and non-music programming that require us to pay license fees and other amounts . 2019 vs. 2018 : for the years ended december 31 , 2019 and 2018 , programming and content expenses were $ 444 and $ 406 , respectively , an increase of 9 % , or $ 38 , and increased as a percentage of total sirius xm revenue . the increase was primarily driven by higher content licensing costs as well as greater personnel-related costs . 2018 vs. 2017 : for the years ended december 31 , 2018 and 2017 , programming and content expenses were $ 406 and $ 388 , respectively , an increase of 5 % , or $ 18 , but decreased as a percentage of total sirius xm revenue . the increase was driven primarily by personnel-related costs , and higher music licensing costs . we expect our sirius xm programming and content expenses to increase as we offer additional programming and renew or replace expiring agreements . sirius xm customer service and billing includes costs associated with the operation and management of internal and third party customer service centers , and our subscriber management systems as well as billing and collection costs , bad debt expense , and transaction fees . 2019 vs. 2018 : for the years ended december 31 , 2019 and 2018 , customer service and billing expenses were $ 398 and $ 382 , respectively , an increase of 4 % , or $ 16 , but decreased as a percentage of total sirius xm revenue . the increase was driven by increased transaction fees from a larger subscriber base and higher bad debt expense . 2018 vs. 2017 : for the years ended december 31 , 2018 and 2017 , customer service and billing expenses were $ 382 and $ 385 , respectively , a decrease of 1 % , or $ 3 , and decreased as a percentage of total sirius xm revenue . the decrease was primarily driven by lower call center costs due to lower agent rates , increased customer self-service and improved non-pay processes driving lower bad debt expense , partially offset by increased transaction fees from a larger subscriber base and personnel-related costs . we expect our sirius xm customer service and billing expenses to increase as our subscriber base grows . sirius xm transmission consists of costs associated with the operation and maintenance of our terrestrial repeater networks ; satellites ; satellite telemetry , tracking and control systems ; satellite uplink facilities ; studios ; and delivery of our internet streaming and connected vehicle services . 2019 vs. 2018 : for the years ended december 31 , 2019 and 2018 , transmission expenses were $ 112 and $ 96 , respectively , an increase of 17 % , or $ 16 , and increased as a percentage of total sirius xm revenue . the increase was primarily driven by higher cloud hosting and costs associated with our streaming services and higher repeater network
| cash flows for the year ended december 31 , 2019 compared with the year ended december 31 , 2018 and for the year ended december 31 , 2018 compared with the year ended december 31 , 2017 . the following table presents a summary of our cash flow activity for the periods set forth below : replace_table_token_10_th cash flows provided by operating activities cash flows provided by operating activities increased by $ 137 to $ 2,017 for the year ended december 31 , 2019 from $ 1,880 for the year ended december 31 , 2018 . cash flows provided by operating activities increased by $ 24 to $ 1,880 for the year ended december 31 , 2018 from $ 1,856 for the year ended december 31 , 2017 . our largest source of cash provided by operating activities is cash generated by subscription and subscription-related revenues . we also generate cash from the sale of advertising on pandora , advertising on certain non-music channels on sirius xm and the sale of satellite radios , components and accessories . our primary uses of cash from operating activities include revenue share and royalty payments to distributors , programming and content providers , and payments to radio manufacturers , distributors and automakers . in addition , uses of cash from operating activities include payments to vendors to service , maintain and acquire listeners and subscribers , general corporate expenditures , and compensation and related costs .
| 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 for the year ended december 31 , 2019 compared with the year ended december 31 , 2018 and for the year ended december 31 , 2018 compared with the year ended december 31 , 2017 . the following table presents a summary of our cash flow activity for the periods set forth below : replace_table_token_10_th cash flows provided by operating activities cash flows provided by operating activities increased by $ 137 to $ 2,017 for the year ended december 31 , 2019 from $ 1,880 for the year ended december 31 , 2018 . cash flows provided by operating activities increased by $ 24 to $ 1,880 for the year ended december 31 , 2018 from $ 1,856 for the year ended december 31 , 2017 . our largest source of cash provided by operating activities is cash generated by subscription and subscription-related revenues . we also generate cash from the sale of advertising on pandora , advertising on certain non-music channels on sirius xm and the sale of satellite radios , components and accessories . our primary uses of cash from operating activities include revenue share and royalty payments to distributors , programming and content providers , and payments to radio manufacturers , distributors and automakers . in addition , uses of cash from operating activities include payments to vendors to service , maintain and acquire listeners and subscribers , general corporate expenditures , and compensation and related costs .
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Suspicious Activity Report : the majority of revenue from our pandora business is generated from advertising on our pandora ad-supported radio service . in addition , through adswizz , pandora provides a comprehensive digital audio advertising technology platform , which connects audio publishers and advertisers . as of december 31 , 2019 , our pandora business had approximately 63.5 million monthly active users . liberty media as of december 31 , 2019 , liberty media beneficially owned , directly and indirectly , approximately 72 % of the outstanding shares of our common stock . as a result , we are a “ controlled company ” for the purposes of the nasdaq corporate governance requirements . 32 results of operations actual results set forth below are our results of operations for the year ended december 31 , 2019 compared with the year ended december 31 , 2018 and for the year ended december 31 , 2018 compared with the year ended december 31 , 2017 . the inclusion of pandora 's results in the year ended december 31 , 2019 ( since the date of the pandora acquisition on february 1 , 2019 ) may render direct comparisons with results for prior periods less meaningful . the results of operations are presented for each of our reporting segments for revenue and cost of services and on a consolidated basis for all other items . replace_table_token_3_th 33 nm - not meaningful sirius xm revenue refer to page 38 for our discussion on sirius xm revenue . pandora revenue pandora revenue includes actual results for the period from the acquisition date to december 31 , 2019. refer to page 40 for our discussion on pandora revenue . sirius xm cost of services refer to page 40 for our discussion on sirius xm cost of services . pandora cost of services pandora cost of services includes actual results for the period from the acquisition date to december 31 , 2019. refer to page 42 for our discussion on pandora cost of services . operating costs subscriber acquisition costs are costs associated with our satellite radio service and include hardware subsidies paid to radio manufacturers , distributors and automakers ; subsidies paid for chipsets and certain other components used in manufacturing radios ; device royalties for certain radios and chipsets ; product warranty obligations ; and freight . the majority of subscriber acquisition costs are incurred and expensed in advance of acquiring a subscriber . subscriber acquisition costs do not include advertising costs , marketing , loyalty payments to distributors and dealers of satellite radios or revenue share payments to automakers and retailers of satellite radios . 2019 vs. 2018 : for the years ended december 31 , 2019 and 2018 , subscriber acquisition costs were $ 427 and $ 470 , respectively , a decrease of 9 % , or $ 43 , and decreased as a percentage of total revenue . the decrease was driven by reductions to oem hardware subsidy rates , lower subsidized costs related to the transition of chipsets , and a decrease in the volume of satellite radio installations . 2018 vs. 2017 : for the years ended december 31 , 2018 and 2017 , subscriber acquisition costs were $ 470 and $ 499 , respectively , a decrease of 6 % , or $ 29 , and decreased as a percentage of total revenue . the decrease was driven by reductions to oem hardware subsidy rates , lower subsidized costs related to the transition of chipsets , and a decrease in the volume of satellite radio installations . we expect subscriber acquisition costs to fluctuate with oem installations ; however , the subsidized chipsets cost is expected to decline as we transition to a new generation of chipsets . we intend to continue to offer subsidies and other incentives to induce oems to include our technology in their vehicles . sales and marketing includes costs for marketing , advertising , media and production , including promotional events and sponsorships ; cooperative and artist marketing ; and personnel related costs including salaries , commissions , and sales support . marketing costs include expenses related to direct mail , outbound telemarketing , email communications , and digital performance media . 2019 vs. 2018 : for the years ended december 31 , 2019 and 2018 , sales and marketing expenses were $ 937 and $ 484 , respectively , an increase of 94 % , or $ 453 , and increased as a percentage of total revenue . the increase was primarily due to the inclusion of pandora , and additional subscriber communications and acquisition campaigns . 2018 vs. 2017 : for the years ended december 31 , 2018 and 2017 , sales and marketing expenses were $ 484 and $ 438 , respectively , an increase of 11 % , or $ 46 , and increased as a percentage of total revenue . the increase was primarily due to additional subscriber communications , retention programs and acquisition campaigns as well as higher personnel-related costs . 34 we anticipate that sales and marketing expenses will increase as we expand programs to retain our existing subscribers , win back former subscribers , and attract new subscribers . engineering , design and development consists primarily of compensation and related costs to develop chipsets and new products and services , including streaming and connected vehicle services , research and development for broadcast information systems and the design and development costs to incorporate sirius xm radios into new vehicles manufactured by automakers . 2019 vs. 2018 : for the years ended december 31 , 2019 and 2018 , engineering , design and development expenses were $ 280 and $ 123 , respectively , an increase of 128 % , or $ 157 , and increased as a percentage of total revenue . the increase was driven primarily by the inclusion of pandora . story_separator_special_tag total consolidated revenue total consolidated revenue for the years ended december 31 , 2019 and 2018 , was $ 7,921 and $ 7,348 , respectively , an increase of 8 % , or $ 573 . total consolidated revenue for the years ended december 31 , 2018 and 2017 , was $ 7,348 and $ 6,818 , respectively , an increase of 8 % , or $ 530 . sirius xm cost of services sirius xm cost of services includes revenue share and royalties , programming and content , customer service and billing and transmission expenses . sirius xm revenue share and royalties include royalties for transmitting content , including streaming royalties , as well as automaker , content provider and advertising revenue share . 2019 vs. 2018 : for the years ended december 31 , 2019 and 2018 , revenue share and royalties were $ 1,431 and $ 1,394 , respectively , an increase of 3 % , or $ 37 , but decreased as a percentage of total sirius xm revenue . the increase was driven by overall greater revenues subject to royalties and revenue share . the increase was partially offset by a $ 69 charge during the second quarter of 2018 related to the legal settlement that resolved all outstanding claims , including ongoing audits , under sirius xm 's statutory license for sound recordings for the period january 1 , 2007 through december 31 , 2017 . 2018 vs. 2017 : for the years ended december 31 , 2018 and 2017 , revenue share and royalties were $ 1,394 and $ 1,210 , respectively , an increase of 15 % , or $ 184 , and increased as a percentage of total sirius xm revenue . the increase was driven by an increase in the statutory royalty rate applicable to our use of post-1972 recordings , which increased from 11 % in 2017 to 15.5 % in 2018 , and overall greater revenues subject to revenue share with the automakers . included in the increase was a $ 69 charge related to the legal settlement that resolved outstanding claims , including ongoing audits , under our statutory license for sound recordings for the period january 1 , 2007 through december 31 , 2017. in 2017 , we recorded $ 45 of expense related to music royalty legal settlements and related reserves . the increase was partially offset by approximately $ 88 for the year ended december 31 , 2018 , related to the adoption of asu 2014‑09 , which established accounting standard codification ( asc ) topic 606 , revenue ‑ revenue from contracts with customers , effective as of january 1 , 2018 . 40 we expect our sirius xm revenue share and royalty costs to increase as our revenues grow . sirius xm programming and content includes costs to acquire , create , promote and produce content . we have entered into various agreements with third parties for music and non-music programming that require us to pay license fees and other amounts . 2019 vs. 2018 : for the years ended december 31 , 2019 and 2018 , programming and content expenses were $ 444 and $ 406 , respectively , an increase of 9 % , or $ 38 , and increased as a percentage of total sirius xm revenue . the increase was primarily driven by higher content licensing costs as well as greater personnel-related costs . 2018 vs. 2017 : for the years ended december 31 , 2018 and 2017 , programming and content expenses were $ 406 and $ 388 , respectively , an increase of 5 % , or $ 18 , but decreased as a percentage of total sirius xm revenue . the increase was driven primarily by personnel-related costs , and higher music licensing costs . we expect our sirius xm programming and content expenses to increase as we offer additional programming and renew or replace expiring agreements . sirius xm customer service and billing includes costs associated with the operation and management of internal and third party customer service centers , and our subscriber management systems as well as billing and collection costs , bad debt expense , and transaction fees . 2019 vs. 2018 : for the years ended december 31 , 2019 and 2018 , customer service and billing expenses were $ 398 and $ 382 , respectively , an increase of 4 % , or $ 16 , but decreased as a percentage of total sirius xm revenue . the increase was driven by increased transaction fees from a larger subscriber base and higher bad debt expense . 2018 vs. 2017 : for the years ended december 31 , 2018 and 2017 , customer service and billing expenses were $ 382 and $ 385 , respectively , a decrease of 1 % , or $ 3 , and decreased as a percentage of total sirius xm revenue . the decrease was primarily driven by lower call center costs due to lower agent rates , increased customer self-service and improved non-pay processes driving lower bad debt expense , partially offset by increased transaction fees from a larger subscriber base and personnel-related costs . we expect our sirius xm customer service and billing expenses to increase as our subscriber base grows . sirius xm transmission consists of costs associated with the operation and maintenance of our terrestrial repeater networks ; satellites ; satellite telemetry , tracking and control systems ; satellite uplink facilities ; studios ; and delivery of our internet streaming and connected vehicle services . 2019 vs. 2018 : for the years ended december 31 , 2019 and 2018 , transmission expenses were $ 112 and $ 96 , respectively , an increase of 17 % , or $ 16 , and increased as a percentage of total sirius xm revenue . the increase was primarily driven by higher cloud hosting and costs associated with our streaming services and higher repeater network
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2,645 | also , historically we have experienced fewer billable hours in our fiscal quarter that includes the holiday season , which was the fourth quarter in each of fiscal 2013 , fiscal 2012 and fiscal 2011. international operations revenues outside of the u.s. accounted for approximately 22 % , 23 % , and 26 % of our total revenues in fiscal 2013 , fiscal 2012 , and fiscal 2011 , respectively . revenue by country is detailed in note 13 to our notes to consolidated financial statements . 29 noncontrolling interest our ownership interest in neuco is 55.89 % and constitutes control under gaap ; therefore , neuco 's financial results have been consolidated with ours and the portion of neuco 's results allocable to its other owners is shown as `` noncontrolling interest . `` neuco 's revenues included in our consolidated statements of operations for fiscal 2013 , fiscal 2012 , and fiscal 2011 totaled approximately $ 5.1 million , $ 5.5 million , and $ 6.2 million , respectively . neuco 's net loss included in our consolidated statements of operations for fiscal 2013 was approximately $ 0.3 million . neuco 's net income included in our consolidated statements of operations for fiscal 2012 and fiscal 2011 was approximately $ 0.3 million and $ 0.2 million , respectively . neuco 's net loss , net of amounts allocable to its other owners , included in our consolidated statements of operations for fiscal 2013 was approximately $ 0.2 million . neuco 's net income , net of amounts allocable to its other owners , included in our consolidated statements of operations for fiscal 2012 and fiscal 2011 was approximately $ 0.2 million and $ 0.1 million , respectively . critical accounting policies the discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with u.s. gaap . the preparation of these financial statements requires us to make significant estimates and judgments that affect the reported amounts of assets , liabilities , revenues , and expenses , as well as related disclosure of contingent assets and liabilities . estimates in these consolidated financial statements include , but are not limited to , accounts and unbilled receivable allowances , revenue recognition on fixed price contracts , depreciation of property and equipment , share-based compensation , valuation of acquired intangible assets , impairment of long-lived assets and goodwill , accrued and deferred income taxes , valuation allowances on deferred tax assets , accrued compensation , accrued exit costs , and other accrued expenses . these items are monitored and analyzed by management for changes in facts and circumstances , and material changes in these estimates could occur in the future . changes in estimates are recorded in the period in which they become known . we base our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances . actual results may differ from our estimates if our assumptions based on past experience or our other assumptions do not turn out to be substantially accurate . a summary of the accounting policies that we believe are most critical to understanding and evaluating our financial results is set forth below . this summary should be read in conjunction with our consolidated financial statements and the related notes included in item 8 of this annual report on form 10-k. revenue recognition and accounts receivable allowances . we derive substantially all of our revenues from the performance of professional services . the contracts that we enter into and operate under specify whether the engagement will be billed on a time-and-materials or fixed-price basis . these engagements generally last three to six months , although some of our engagements can be much longer in duration . each contract must be approved by one of our vice presidents . we recognize substantially all of our revenues under written service contracts with our clients where the fee is fixed or determinable , as the services are provided , and only in those situations where collection from the client is reasonably assured . in certain cases we provide services to our clients without sufficient contractual documentation , or fees are tied to performance-based criteria , which require us to defer revenue in accordance with u.s. gaap . in these cases , these amounts are fully reserved until all criteria for recognizing revenue are met . our revenues include projects secured by our non-employee experts as well as projects secured by our employees . we recognize all project revenue on a gross basis based on the consideration of the criteria set forth in accounting standards codification ( `` asc `` ) topic 605-45 , principal agent considerations . 30 most of our revenue is derived from time-and-materials service contracts . revenues from time-and-materials service contracts are recognized as the services are provided based upon hours worked and contractually agreed-upon hourly rates , as well as indirect fees based upon hours worked . revenues from a majority of our fixed-price engagements are recognized on a proportional performance method based on the ratio of costs incurred , substantially all of which are labor-related , to the total estimated project costs . we derived approximately 13 % , 15 % , and 22 % of revenues from fixed-price engagements in fiscal 2013 , fiscal 2012 , and fiscal 2011 , respectively . in general , project costs are classified in costs of services and are based on the direct salary of the consultants on the engagement plus all direct expenses incurred to complete the engagement , including any amounts billed to us by our non-employee experts . story_separator_special_tag 2013-02 , comprehensive income ( topic 220 ) : reporting of amounts reclassified out of accumulated other comprehensive income ( `` asu 2013-02 `` ) . asu 2013-02 requires an entity disclose in a single location ( either on the face of the financial statement that reports net income or in the notes ) the effects of reclassifications out of accumulated other comprehensive income . for items reclassified out of accumulated other comprehensive income and into net income in their entirety , entities must disclose the effect of the reclassification on each affected net income item . for accumulated other comprehensive income reclassification items that are not reclassified in their entirety into net income , entities must provide a cross reference to other required u.s. gaap disclosures . there is no change in the requirement to present the components of net income and other comprehensive income in either a single continuous statement or two separate consecutive statements . asu 2013- 02 is effective for fiscal years , and interim periods within those years , beginning after december 15 , 2012 and should be applied prospectively . our adoption of asu 2013-02 in the first quarter of fiscal 2013 had no impact on our financial position , results of operations , cash flows , or disclosures . cumulative translation adjustment in march 2013 , the fasb issued asu no . 2013-05 , parent 's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity ( `` asu 2013-05 `` ) . asu 2013-05 addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity . asu 2013-05 is effective for fiscal years , and interim periods within those years , beginning after december 15 , 2013 and should be applied prospectively . early adoption is permitted . we believe the adoption of asu 2013-05 will have no impact on our financial position , results of operations , cash flows , or disclosures . intangibles in july 2012 , the fasb issued asu no . 2012-02 , intangiblesgoodwill and other ( topic 350 ) : testing indefinite-lived intangible assets for impairment ( `` asu 2012-02 `` ) to simplify the guidance for testing the decline in the realizable value ( impairment ) of indefinite-lived intangible assets other than goodwill . under former guidance , an organization was required to test an indefinite-lived intangible asset for impairment on at least an annual basis by comparing the fair value of the asset with its carrying amount . if the carrying amount of an indefinite-lived intangible asset exceeded its fair value , an impairment loss was recognized in an amount equal to the difference . asu 2012-02 allows an organization the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test . an organization electing to perform a qualitative assessment is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the organization determines , based on a qualitative assessment , that it is `` more likely than not `` that the asset is impaired . asu 2012-02 was effective for annual and interim impairment tests performed for fiscal years beginning after september 15 , 2012. our adoption of asu 2012-02 in fiscal 2013 had no impact on our financial position , results of operations , cash flows , or disclosures . 35 results of operations the following table provides operating information as a percentage of revenues for the periods indicated : replace_table_token_6_th fiscal 2013 compared to fiscal 2012 revenues . revenues increased by $ 8.0 million , or 3.0 % , to $ 278.4 million for fiscal 2013 from $ 270.4 million for fiscal 2012 primarily due to increased revenue in our litigation , regulatory , and financial consulting business in the second half of fiscal 2013 , reflecting organic growth and increasing contributions from the new senior-level hires we welcomed to cra during the latter part of fiscal 2012 and the first quarter of fiscal 2013. the increase in revenue was partially offset by a decrease of revenue in our management consulting business in fiscal 2013 as compared to fiscal 2012. although our management consulting business started fiscal 2013 slowly , it experienced improvements in project backlog toward the end of the second quarter of fiscal 2013 that continued into the second half of fiscal 2013. our utilization increased to 73 % for fiscal 2013 from 68 % for the fiscal 2012. in addition , revenues were impacted by an increase in client reimbursable expenses , which are pass-through expenses that carry little to no margin , partially offset by a decrease in revenues of $ 0.4 million for neuco in fiscal 2013 as compared to fiscal 2012. overall , revenues outside of the u.s. represented approximately 22 % of total revenues for fiscal 2013 , compared with approximately 23 % of total revenues for fiscal 2012. revenues derived from fixed- price engagements decreased to 13 % of total revenues for fiscal 2013 compared with 15 % for fiscal 2012. this decrease was due primarily to the previously mentioned decrease in our management consulting business , as the management consulting business typically has a higher concentration of fixed-price service contracts . costs of services . costs of services increased by $ 6.9 million , or 3.8 % , to $ 189.3 million for fiscal 2013 from $ 182.4 million for fiscal 2012. the increase in costs of services was due primarily to an increase in compensation expense , principally as a result of an increase in forgivable loan amortization 36 of $ 7.1 million . as is common in our industry , we have
| liquidity and capital resources we believe that current cash , cash equivalents , cash generated from operations , and amounts available under our bank line of credit will be sufficient to meet our anticipated working capital and capital expenditure requirements for at least the next 12 months . 40 general . in fiscal 2013 , cash and cash equivalents decreased by $ 4.2 million . we completed the period with cash and cash equivalents of $ 51.3 million and working capital ( defined as current assets less current liabilities ) of $ 75.0 million . of the total cash and cash equivalents of $ 51.3 million at december 28 , 2013 , $ 41.8 million was in the u.s. we have sufficient sources of cash in the u.s. to fund u.s. cash requirements without the need to repatriate any funds . as of december 28 , 2013 , a substantial portion of our cash accounts was concentrated at a single financial institution , which potentially exposes us to credit risks . the financial institution has a short-term credit rating of a-2 by standard & poor 's ratings services . we have not experienced any losses related to such accounts and we do not believe that there is significant risk of non-performance by the financial institution . our cash on deposit at this financial institution is fully liquid , and we continually monitor the credit ratings of this institution . a change in the credit worthiness of this financial institution could materially affect our liquidity and working capital . sources and uses of cash . during fiscal 2013 , net cash provided by operations was $ 18.4 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 we believe that current cash , cash equivalents , cash generated from operations , and amounts available under our bank line of credit will be sufficient to meet our anticipated working capital and capital expenditure requirements for at least the next 12 months . 40 general . in fiscal 2013 , cash and cash equivalents decreased by $ 4.2 million . we completed the period with cash and cash equivalents of $ 51.3 million and working capital ( defined as current assets less current liabilities ) of $ 75.0 million . of the total cash and cash equivalents of $ 51.3 million at december 28 , 2013 , $ 41.8 million was in the u.s. we have sufficient sources of cash in the u.s. to fund u.s. cash requirements without the need to repatriate any funds . as of december 28 , 2013 , a substantial portion of our cash accounts was concentrated at a single financial institution , which potentially exposes us to credit risks . the financial institution has a short-term credit rating of a-2 by standard & poor 's ratings services . we have not experienced any losses related to such accounts and we do not believe that there is significant risk of non-performance by the financial institution . our cash on deposit at this financial institution is fully liquid , and we continually monitor the credit ratings of this institution . a change in the credit worthiness of this financial institution could materially affect our liquidity and working capital . sources and uses of cash . during fiscal 2013 , net cash provided by operations was $ 18.4 million .
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Suspicious Activity Report : also , historically we have experienced fewer billable hours in our fiscal quarter that includes the holiday season , which was the fourth quarter in each of fiscal 2013 , fiscal 2012 and fiscal 2011. international operations revenues outside of the u.s. accounted for approximately 22 % , 23 % , and 26 % of our total revenues in fiscal 2013 , fiscal 2012 , and fiscal 2011 , respectively . revenue by country is detailed in note 13 to our notes to consolidated financial statements . 29 noncontrolling interest our ownership interest in neuco is 55.89 % and constitutes control under gaap ; therefore , neuco 's financial results have been consolidated with ours and the portion of neuco 's results allocable to its other owners is shown as `` noncontrolling interest . `` neuco 's revenues included in our consolidated statements of operations for fiscal 2013 , fiscal 2012 , and fiscal 2011 totaled approximately $ 5.1 million , $ 5.5 million , and $ 6.2 million , respectively . neuco 's net loss included in our consolidated statements of operations for fiscal 2013 was approximately $ 0.3 million . neuco 's net income included in our consolidated statements of operations for fiscal 2012 and fiscal 2011 was approximately $ 0.3 million and $ 0.2 million , respectively . neuco 's net loss , net of amounts allocable to its other owners , included in our consolidated statements of operations for fiscal 2013 was approximately $ 0.2 million . neuco 's net income , net of amounts allocable to its other owners , included in our consolidated statements of operations for fiscal 2012 and fiscal 2011 was approximately $ 0.2 million and $ 0.1 million , respectively . critical accounting policies the discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with u.s. gaap . the preparation of these financial statements requires us to make significant estimates and judgments that affect the reported amounts of assets , liabilities , revenues , and expenses , as well as related disclosure of contingent assets and liabilities . estimates in these consolidated financial statements include , but are not limited to , accounts and unbilled receivable allowances , revenue recognition on fixed price contracts , depreciation of property and equipment , share-based compensation , valuation of acquired intangible assets , impairment of long-lived assets and goodwill , accrued and deferred income taxes , valuation allowances on deferred tax assets , accrued compensation , accrued exit costs , and other accrued expenses . these items are monitored and analyzed by management for changes in facts and circumstances , and material changes in these estimates could occur in the future . changes in estimates are recorded in the period in which they become known . we base our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances . actual results may differ from our estimates if our assumptions based on past experience or our other assumptions do not turn out to be substantially accurate . a summary of the accounting policies that we believe are most critical to understanding and evaluating our financial results is set forth below . this summary should be read in conjunction with our consolidated financial statements and the related notes included in item 8 of this annual report on form 10-k. revenue recognition and accounts receivable allowances . we derive substantially all of our revenues from the performance of professional services . the contracts that we enter into and operate under specify whether the engagement will be billed on a time-and-materials or fixed-price basis . these engagements generally last three to six months , although some of our engagements can be much longer in duration . each contract must be approved by one of our vice presidents . we recognize substantially all of our revenues under written service contracts with our clients where the fee is fixed or determinable , as the services are provided , and only in those situations where collection from the client is reasonably assured . in certain cases we provide services to our clients without sufficient contractual documentation , or fees are tied to performance-based criteria , which require us to defer revenue in accordance with u.s. gaap . in these cases , these amounts are fully reserved until all criteria for recognizing revenue are met . our revenues include projects secured by our non-employee experts as well as projects secured by our employees . we recognize all project revenue on a gross basis based on the consideration of the criteria set forth in accounting standards codification ( `` asc `` ) topic 605-45 , principal agent considerations . 30 most of our revenue is derived from time-and-materials service contracts . revenues from time-and-materials service contracts are recognized as the services are provided based upon hours worked and contractually agreed-upon hourly rates , as well as indirect fees based upon hours worked . revenues from a majority of our fixed-price engagements are recognized on a proportional performance method based on the ratio of costs incurred , substantially all of which are labor-related , to the total estimated project costs . we derived approximately 13 % , 15 % , and 22 % of revenues from fixed-price engagements in fiscal 2013 , fiscal 2012 , and fiscal 2011 , respectively . in general , project costs are classified in costs of services and are based on the direct salary of the consultants on the engagement plus all direct expenses incurred to complete the engagement , including any amounts billed to us by our non-employee experts . story_separator_special_tag 2013-02 , comprehensive income ( topic 220 ) : reporting of amounts reclassified out of accumulated other comprehensive income ( `` asu 2013-02 `` ) . asu 2013-02 requires an entity disclose in a single location ( either on the face of the financial statement that reports net income or in the notes ) the effects of reclassifications out of accumulated other comprehensive income . for items reclassified out of accumulated other comprehensive income and into net income in their entirety , entities must disclose the effect of the reclassification on each affected net income item . for accumulated other comprehensive income reclassification items that are not reclassified in their entirety into net income , entities must provide a cross reference to other required u.s. gaap disclosures . there is no change in the requirement to present the components of net income and other comprehensive income in either a single continuous statement or two separate consecutive statements . asu 2013- 02 is effective for fiscal years , and interim periods within those years , beginning after december 15 , 2012 and should be applied prospectively . our adoption of asu 2013-02 in the first quarter of fiscal 2013 had no impact on our financial position , results of operations , cash flows , or disclosures . cumulative translation adjustment in march 2013 , the fasb issued asu no . 2013-05 , parent 's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity ( `` asu 2013-05 `` ) . asu 2013-05 addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity . asu 2013-05 is effective for fiscal years , and interim periods within those years , beginning after december 15 , 2013 and should be applied prospectively . early adoption is permitted . we believe the adoption of asu 2013-05 will have no impact on our financial position , results of operations , cash flows , or disclosures . intangibles in july 2012 , the fasb issued asu no . 2012-02 , intangiblesgoodwill and other ( topic 350 ) : testing indefinite-lived intangible assets for impairment ( `` asu 2012-02 `` ) to simplify the guidance for testing the decline in the realizable value ( impairment ) of indefinite-lived intangible assets other than goodwill . under former guidance , an organization was required to test an indefinite-lived intangible asset for impairment on at least an annual basis by comparing the fair value of the asset with its carrying amount . if the carrying amount of an indefinite-lived intangible asset exceeded its fair value , an impairment loss was recognized in an amount equal to the difference . asu 2012-02 allows an organization the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test . an organization electing to perform a qualitative assessment is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the organization determines , based on a qualitative assessment , that it is `` more likely than not `` that the asset is impaired . asu 2012-02 was effective for annual and interim impairment tests performed for fiscal years beginning after september 15 , 2012. our adoption of asu 2012-02 in fiscal 2013 had no impact on our financial position , results of operations , cash flows , or disclosures . 35 results of operations the following table provides operating information as a percentage of revenues for the periods indicated : replace_table_token_6_th fiscal 2013 compared to fiscal 2012 revenues . revenues increased by $ 8.0 million , or 3.0 % , to $ 278.4 million for fiscal 2013 from $ 270.4 million for fiscal 2012 primarily due to increased revenue in our litigation , regulatory , and financial consulting business in the second half of fiscal 2013 , reflecting organic growth and increasing contributions from the new senior-level hires we welcomed to cra during the latter part of fiscal 2012 and the first quarter of fiscal 2013. the increase in revenue was partially offset by a decrease of revenue in our management consulting business in fiscal 2013 as compared to fiscal 2012. although our management consulting business started fiscal 2013 slowly , it experienced improvements in project backlog toward the end of the second quarter of fiscal 2013 that continued into the second half of fiscal 2013. our utilization increased to 73 % for fiscal 2013 from 68 % for the fiscal 2012. in addition , revenues were impacted by an increase in client reimbursable expenses , which are pass-through expenses that carry little to no margin , partially offset by a decrease in revenues of $ 0.4 million for neuco in fiscal 2013 as compared to fiscal 2012. overall , revenues outside of the u.s. represented approximately 22 % of total revenues for fiscal 2013 , compared with approximately 23 % of total revenues for fiscal 2012. revenues derived from fixed- price engagements decreased to 13 % of total revenues for fiscal 2013 compared with 15 % for fiscal 2012. this decrease was due primarily to the previously mentioned decrease in our management consulting business , as the management consulting business typically has a higher concentration of fixed-price service contracts . costs of services . costs of services increased by $ 6.9 million , or 3.8 % , to $ 189.3 million for fiscal 2013 from $ 182.4 million for fiscal 2012. the increase in costs of services was due primarily to an increase in compensation expense , principally as a result of an increase in forgivable loan amortization 36 of $ 7.1 million . as is common in our industry , we have
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2,646 | the number of impressions delivered by a display is measured by the number of people passing the site during a defined period of time . for all of our billboards in the united states , we use independent , third-party auditing companies to verify the number of impressions delivered by a display . client contract terms typically range from four weeks to one year for the majority of our display inventory in the united states . generally , we own the street furniture structures and are responsible for their construction and maintenance . contracts for the right to place our street furniture and transit displays and sell advertising space on them are awarded by municipal and transit authorities in competitive bidding processes governed by local law or are negotiated with private transit operators . generally , these contracts have terms ranging from 10 to 20 years . international similar to our americas business , advertising rates generally are based on the gross ratings points of a display or group of displays . the number of impressions delivered by a display , in some countries , is weighted to account for such factors as 30 illumination , proximity to other displays and the speed and viewing angle of approaching traffic . in addition , because our international advertising operations are conducted in foreign markets , including europe and asia , management reviews the operating results from our foreign operations on a constant dollar basis . a constant dollar basis allows for comparison of operations independent of foreign exchange movements . our international display inventory is typically sold to clients through network packages , with client contract terms typically ranging from one to two weeks with terms of up to one year available as well . internationally , contracts with municipal and transit authorities for the right to place our street furniture and transit displays typically provide for terms ranging from three to 15 years . the major difference between our international and americas street furniture businesses is in the nature of the municipal contracts . in our international business , these contracts typically require us to provide the municipality with a broader range of metropolitan amenities in exchange for which we are authorized to sell advertising space on certain sections of the structures we erect in the public domain . a different regulatory environment for billboards and competitive bidding for street furniture and transit display contracts , which constitute a larger portion of our business internationally , may result in higher site lease costs in our international business . macroeconomic indicators our advertising revenue for our americas and international segments is highly correlated to changes in gross domestic product ( “ gdp ” ) as advertising spending has historically trended in line with gdp , both domestically and internationally . according to the u.s. department of commerce , estimated u.s. gdp growth for 2016 was 1.6 % . internationally , our results are impacted by fluctuations in foreign currency exchange rates as well as the economic conditions in the foreign markets in which we have operations . relationship with iheartcommunications there are several agreements which govern our relationship with iheartcommunications including the master agreement , corporate services agreement , employee matters agreement , tax matters agreement and trademark and license agreement . iheartcommunications has the right to terminate these agreements in various circumstances . as of the date of the filing of this annual report on form 10-k , no notice of termination of any of these agreements has been received from iheartcommunications . our agreements with iheartcommunications continued under the same terms and conditions subsequent to iheartcommunications ' merger . in accordance with the master agreement , our branch managers follow a corporate policy allowing iheartcommunications to use , without charge , americas ' displays they believe would otherwise be unsold . iheartcommunications bears the cost of producing the advertising and we bear the costs of installing and removing this advertising . under the corporate services agreement , iheartcommunications provides management services to us . these services are charged to us based on actual direct costs incurred or allocated by iheartcommunications based on headcount , revenue or other factors on a pro rata basis . for the years ended december 31 , 2016 , 2015 and 2014 , we recorded approximately $ 36.0 million , $ 30.1 million and $ 31.2 million , respectively , as a component of corporate expenses for these services . the trademark license agreement entitles us to use ( 1 ) on a nonexclusive basis , the `` clear channel `` trademark and the clear channel `` outdoor `` trademark logo with respect to day-to-day operations of our business worldwide and on the internet , and ( 2 ) certain other clear channel marks in connection with our business . on february 9 , 2017 , we entered into a binding option and letter of intent with iheartmedia granting us a binding option to purchase the registered trademarks and domain names owned by iheartmedia and its subsidiaries that incorporate one or more of the words `` clear `` and or `` channel , `` and any translations or derivations of any of the foregoing , together with any goodwill associated therewith . this option is exercisable in our sole and absolute discretion at any time between february 23 , 2018 and february 23 , 2019. on august 9 , 2010 , iheartcommunications announced that its board of directors approved a stock purchase program under which iheartcommunications or its subsidiaries may purchase up to an aggregate of $ 100.0 million of our class a common stock and or the class a common stock of iheartmedia . as of december 31 , 2014 , an aggregate $ 34.2 million was available under this program . in january 2015 , a subsidiary of iheartcommunications purchased an additional 2,000,000 shares of the company 's class a common stock for $ 20.4 million . story_separator_special_tag international sg & a expenses decreased $ 16.6 million during 2015 compared to 2014. excluding the $ 45.0 million impact from movements in foreign exchange rates , international sg & a expenses increased $ 28.4 million during 2015 compared to 2014 primarily due to higher compensation expense , including commissions in connection with higher revenues . 36 corporate expenses corporate expenses decreased $ 14.5 million during 2015 compared to 2014. excluding the $ 3.5 million impact from movements in foreign exchange rates , corporate expenses decreased $ 11.0 million during 2015 compared to 2014. corporate expenses were primarily impacted by lower spending related to our strategic revenue and efficiency initiatives , partially offset by higher variable compensation expense . revenue and efficiency initiatives included in the amounts for direct operating expenses , sg & a and corporate expenses discussed above are expenses of $ 20.3 million incurred in 2015 in connection with our strategic revenue and efficiency initiatives . the costs were incurred to improve revenue growth , enhance yield , reduce costs , and organize each business to maximize performance and profitability . these costs consist primarily of severance related to workforce initiatives , consolidation of locations and positions , consulting expenses and other costs incurred in connection with streamlining our businesses . these costs are expected to provide benefits in future periods as the initiative results are realized . of these costs for 2015 , $ 9.2 million are reported within direct operating expenses , $ 4.3 million are reported within sg & a and $ 6.8 million are reported within corporate expense . in 2014 , such costs totaled $ 3.5 million , $ 6.7 million , and $ 20.0 million , respectively . depreciation and amortization depreciation and amortization decreased $ 30.3 million during 2015 compared to 2014 primarily due to assets becoming fully depreciated or fully amortized as well as the impact of movements in foreign exchange rates . impairment charges we perform our annual impairment test on our goodwill , billboard permits , and other intangible assets as of july 1 of each year . in addition , we test for impairment of property , plant and equipment whenever events and circumstances indicate that depreciable assets might be impaired . as a result of these impairment tests , during 2015 , we recorded impairment charges of $ 21.6 million during 2015 related to billboard permits in one americas outdoor market . during 2014 , we recognized a $ 3.5 million other intangible assets impairment charge in our americas segment primarily related to a decline in the estimated fair value of permanent easements in two markets . please see note 2 to the consolidated financial statements included in item 8 of part ii of this annual report on form 10-k for a further description of the impairment charges . other operating income , net other operating expense , net of $ 4.8 million in 2015 primarily related to acquisition/disposition transaction costs . other operating income , net of $ 7.3 million in 2014 primarily related to the gain on the sale of certain outdoor assets in our americas segment . interest expense interest expense increased $ 2.4 million in 2015 compared to 2014. interest income on due from iheartcommunications interest income increased $ 1.3 million during 2015 compared to 2014 due to the increase in the average outstanding balance on the due from iheartcommunications note . equity in earnings ( loss ) of nonconsolidated affiliates equity in loss of nonconsolidated affiliates of $ 0.3 million for 2015 included the loss from our equity investments in our americas and international segments . equity in earnings of nonconsolidated affiliates of $ 3.8 million for 2014 included the earnings from our equity investments in our americas and international segments . other income , net other income of $ 12.4 million and $ 15.2 million for 2015 and 2014 , respectively , primarily related to foreign exchange gains on short-term intercompany accounts . 37 income tax ( expense ) benefit our operations are included in a consolidated income tax return filed by iheartmedia . however , for our financial statements , our provision for income taxes was computed as if we file separate consolidated federal income tax returns with our subsidiaries . the effective tax rate for 2015 was ( 237.5 ) % and was primarily impacted by the $ 32.9 million valuation allowance recorded during the period as additional deferred tax expense . the valuation allowance was recorded against a portion of the u.s. federal and state net operating losses due to the uncertainty of the ability to utilize those losses in future periods . additionally , the company recorded additional taxes due to the inability to benefit from losses in certain foreign jurisdictions . the effective tax rate for 2014 was ( 105.5 ) % , primarily impacted by our benefits and charges from tax amounts associated with our foreign earnings that are taxed at rates different from the federal statutory rate and an inability to benefit from losses in certain foreign jurisdictions . in addition , we recorded $ 20.0 million in net tax benefits associated with a decrease in unrecognized tax benefits resulting from the expiration of statutes of limitations to assess taxes in the united kingdom and several state jurisdictions . americas results of operations our americas operating results were as follows : replace_table_token_12_th americas revenue decreased $ 1.6 million during 2015 compared to 2014. excluding the $ 23.4 million impact from movements in foreign exchange rates , americas revenue increased $ 21.8 million during 2015 compared to 2014 driven primarily by an increase in revenues from digital billboards as a result of new deployments , as well as from our spectacolor business , partially offset by lower advertising revenues from our static bulletins and posters , and our airports business . americas direct operating expenses decreased $ 8.4 million during 2015 compared to 2014. excluding the $ 13.1 million impact from movements in
| cash provided by investing activities of $ 551.5 million during 2016 primarily reflected $ 592.3 million of net cash proceeds from the sale of nine non-strategic outdoor markets including cleveland and columbus , ohio , des moines , iowa , ft. smith , arkansas , memphis , tennessee , portland , oregon , reno , nevada , seattle , washington and wichita , kansas , and the sale of our business in australia for $ 195.7 million , net of cash retained by the purchaser and closing costs . those sale proceeds were partially offset by $ 229.8 million used for capital expenditures . we spent $ 81.4 million in our americas segment primarily related to the construction of new advertising structures such as digital displays , $ 143.8 million in our international segment primarily related to street furniture advertising structures , and $ 4.6 million by corporate primarily related to equipment and software . 40 2015 cash used for investing activities of $ 257.7 million during 2015 reflected our capital expenditures of $ 218.3 million . we spent $ 82.2 million in our americas segment primarily related to the construction of new advertising structures such as digital displays , $ 132.6 million in our international segment primarily related to street furniture advertising and digital billboard structures , and $ 3.5 million by corporate primarily related to equipment and software . other cash provided by investing activities were $ 11.3 million of proceeds from sales of other operating and fixed assets . 2014 cash used for investing activities of $ 206.4 million during 2014 reflected our capital expenditures of $ 231.2 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.
```cash provided by investing activities of $ 551.5 million during 2016 primarily reflected $ 592.3 million of net cash proceeds from the sale of nine non-strategic outdoor markets including cleveland and columbus , ohio , des moines , iowa , ft. smith , arkansas , memphis , tennessee , portland , oregon , reno , nevada , seattle , washington and wichita , kansas , and the sale of our business in australia for $ 195.7 million , net of cash retained by the purchaser and closing costs . those sale proceeds were partially offset by $ 229.8 million used for capital expenditures . we spent $ 81.4 million in our americas segment primarily related to the construction of new advertising structures such as digital displays , $ 143.8 million in our international segment primarily related to street furniture advertising structures , and $ 4.6 million by corporate primarily related to equipment and software . 40 2015 cash used for investing activities of $ 257.7 million during 2015 reflected our capital expenditures of $ 218.3 million . we spent $ 82.2 million in our americas segment primarily related to the construction of new advertising structures such as digital displays , $ 132.6 million in our international segment primarily related to street furniture advertising and digital billboard structures , and $ 3.5 million by corporate primarily related to equipment and software . other cash provided by investing activities were $ 11.3 million of proceeds from sales of other operating and fixed assets . 2014 cash used for investing activities of $ 206.4 million during 2014 reflected our capital expenditures of $ 231.2 million .
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Suspicious Activity Report : the number of impressions delivered by a display is measured by the number of people passing the site during a defined period of time . for all of our billboards in the united states , we use independent , third-party auditing companies to verify the number of impressions delivered by a display . client contract terms typically range from four weeks to one year for the majority of our display inventory in the united states . generally , we own the street furniture structures and are responsible for their construction and maintenance . contracts for the right to place our street furniture and transit displays and sell advertising space on them are awarded by municipal and transit authorities in competitive bidding processes governed by local law or are negotiated with private transit operators . generally , these contracts have terms ranging from 10 to 20 years . international similar to our americas business , advertising rates generally are based on the gross ratings points of a display or group of displays . the number of impressions delivered by a display , in some countries , is weighted to account for such factors as 30 illumination , proximity to other displays and the speed and viewing angle of approaching traffic . in addition , because our international advertising operations are conducted in foreign markets , including europe and asia , management reviews the operating results from our foreign operations on a constant dollar basis . a constant dollar basis allows for comparison of operations independent of foreign exchange movements . our international display inventory is typically sold to clients through network packages , with client contract terms typically ranging from one to two weeks with terms of up to one year available as well . internationally , contracts with municipal and transit authorities for the right to place our street furniture and transit displays typically provide for terms ranging from three to 15 years . the major difference between our international and americas street furniture businesses is in the nature of the municipal contracts . in our international business , these contracts typically require us to provide the municipality with a broader range of metropolitan amenities in exchange for which we are authorized to sell advertising space on certain sections of the structures we erect in the public domain . a different regulatory environment for billboards and competitive bidding for street furniture and transit display contracts , which constitute a larger portion of our business internationally , may result in higher site lease costs in our international business . macroeconomic indicators our advertising revenue for our americas and international segments is highly correlated to changes in gross domestic product ( “ gdp ” ) as advertising spending has historically trended in line with gdp , both domestically and internationally . according to the u.s. department of commerce , estimated u.s. gdp growth for 2016 was 1.6 % . internationally , our results are impacted by fluctuations in foreign currency exchange rates as well as the economic conditions in the foreign markets in which we have operations . relationship with iheartcommunications there are several agreements which govern our relationship with iheartcommunications including the master agreement , corporate services agreement , employee matters agreement , tax matters agreement and trademark and license agreement . iheartcommunications has the right to terminate these agreements in various circumstances . as of the date of the filing of this annual report on form 10-k , no notice of termination of any of these agreements has been received from iheartcommunications . our agreements with iheartcommunications continued under the same terms and conditions subsequent to iheartcommunications ' merger . in accordance with the master agreement , our branch managers follow a corporate policy allowing iheartcommunications to use , without charge , americas ' displays they believe would otherwise be unsold . iheartcommunications bears the cost of producing the advertising and we bear the costs of installing and removing this advertising . under the corporate services agreement , iheartcommunications provides management services to us . these services are charged to us based on actual direct costs incurred or allocated by iheartcommunications based on headcount , revenue or other factors on a pro rata basis . for the years ended december 31 , 2016 , 2015 and 2014 , we recorded approximately $ 36.0 million , $ 30.1 million and $ 31.2 million , respectively , as a component of corporate expenses for these services . the trademark license agreement entitles us to use ( 1 ) on a nonexclusive basis , the `` clear channel `` trademark and the clear channel `` outdoor `` trademark logo with respect to day-to-day operations of our business worldwide and on the internet , and ( 2 ) certain other clear channel marks in connection with our business . on february 9 , 2017 , we entered into a binding option and letter of intent with iheartmedia granting us a binding option to purchase the registered trademarks and domain names owned by iheartmedia and its subsidiaries that incorporate one or more of the words `` clear `` and or `` channel , `` and any translations or derivations of any of the foregoing , together with any goodwill associated therewith . this option is exercisable in our sole and absolute discretion at any time between february 23 , 2018 and february 23 , 2019. on august 9 , 2010 , iheartcommunications announced that its board of directors approved a stock purchase program under which iheartcommunications or its subsidiaries may purchase up to an aggregate of $ 100.0 million of our class a common stock and or the class a common stock of iheartmedia . as of december 31 , 2014 , an aggregate $ 34.2 million was available under this program . in january 2015 , a subsidiary of iheartcommunications purchased an additional 2,000,000 shares of the company 's class a common stock for $ 20.4 million . story_separator_special_tag international sg & a expenses decreased $ 16.6 million during 2015 compared to 2014. excluding the $ 45.0 million impact from movements in foreign exchange rates , international sg & a expenses increased $ 28.4 million during 2015 compared to 2014 primarily due to higher compensation expense , including commissions in connection with higher revenues . 36 corporate expenses corporate expenses decreased $ 14.5 million during 2015 compared to 2014. excluding the $ 3.5 million impact from movements in foreign exchange rates , corporate expenses decreased $ 11.0 million during 2015 compared to 2014. corporate expenses were primarily impacted by lower spending related to our strategic revenue and efficiency initiatives , partially offset by higher variable compensation expense . revenue and efficiency initiatives included in the amounts for direct operating expenses , sg & a and corporate expenses discussed above are expenses of $ 20.3 million incurred in 2015 in connection with our strategic revenue and efficiency initiatives . the costs were incurred to improve revenue growth , enhance yield , reduce costs , and organize each business to maximize performance and profitability . these costs consist primarily of severance related to workforce initiatives , consolidation of locations and positions , consulting expenses and other costs incurred in connection with streamlining our businesses . these costs are expected to provide benefits in future periods as the initiative results are realized . of these costs for 2015 , $ 9.2 million are reported within direct operating expenses , $ 4.3 million are reported within sg & a and $ 6.8 million are reported within corporate expense . in 2014 , such costs totaled $ 3.5 million , $ 6.7 million , and $ 20.0 million , respectively . depreciation and amortization depreciation and amortization decreased $ 30.3 million during 2015 compared to 2014 primarily due to assets becoming fully depreciated or fully amortized as well as the impact of movements in foreign exchange rates . impairment charges we perform our annual impairment test on our goodwill , billboard permits , and other intangible assets as of july 1 of each year . in addition , we test for impairment of property , plant and equipment whenever events and circumstances indicate that depreciable assets might be impaired . as a result of these impairment tests , during 2015 , we recorded impairment charges of $ 21.6 million during 2015 related to billboard permits in one americas outdoor market . during 2014 , we recognized a $ 3.5 million other intangible assets impairment charge in our americas segment primarily related to a decline in the estimated fair value of permanent easements in two markets . please see note 2 to the consolidated financial statements included in item 8 of part ii of this annual report on form 10-k for a further description of the impairment charges . other operating income , net other operating expense , net of $ 4.8 million in 2015 primarily related to acquisition/disposition transaction costs . other operating income , net of $ 7.3 million in 2014 primarily related to the gain on the sale of certain outdoor assets in our americas segment . interest expense interest expense increased $ 2.4 million in 2015 compared to 2014. interest income on due from iheartcommunications interest income increased $ 1.3 million during 2015 compared to 2014 due to the increase in the average outstanding balance on the due from iheartcommunications note . equity in earnings ( loss ) of nonconsolidated affiliates equity in loss of nonconsolidated affiliates of $ 0.3 million for 2015 included the loss from our equity investments in our americas and international segments . equity in earnings of nonconsolidated affiliates of $ 3.8 million for 2014 included the earnings from our equity investments in our americas and international segments . other income , net other income of $ 12.4 million and $ 15.2 million for 2015 and 2014 , respectively , primarily related to foreign exchange gains on short-term intercompany accounts . 37 income tax ( expense ) benefit our operations are included in a consolidated income tax return filed by iheartmedia . however , for our financial statements , our provision for income taxes was computed as if we file separate consolidated federal income tax returns with our subsidiaries . the effective tax rate for 2015 was ( 237.5 ) % and was primarily impacted by the $ 32.9 million valuation allowance recorded during the period as additional deferred tax expense . the valuation allowance was recorded against a portion of the u.s. federal and state net operating losses due to the uncertainty of the ability to utilize those losses in future periods . additionally , the company recorded additional taxes due to the inability to benefit from losses in certain foreign jurisdictions . the effective tax rate for 2014 was ( 105.5 ) % , primarily impacted by our benefits and charges from tax amounts associated with our foreign earnings that are taxed at rates different from the federal statutory rate and an inability to benefit from losses in certain foreign jurisdictions . in addition , we recorded $ 20.0 million in net tax benefits associated with a decrease in unrecognized tax benefits resulting from the expiration of statutes of limitations to assess taxes in the united kingdom and several state jurisdictions . americas results of operations our americas operating results were as follows : replace_table_token_12_th americas revenue decreased $ 1.6 million during 2015 compared to 2014. excluding the $ 23.4 million impact from movements in foreign exchange rates , americas revenue increased $ 21.8 million during 2015 compared to 2014 driven primarily by an increase in revenues from digital billboards as a result of new deployments , as well as from our spectacolor business , partially offset by lower advertising revenues from our static bulletins and posters , and our airports business . americas direct operating expenses decreased $ 8.4 million during 2015 compared to 2014. excluding the $ 13.1 million impact from movements in
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2,647 | the majority of our revenue is earned from subscription contracts under which we provide advertisers with access to our search , social and display advertising management platform , either directly or through the advertiser 's relationship with an agency that has a contract with us . in accordance with the subscription contracts , we charge fees generally based upon the amount of advertising spend that our customers manage through our platform . our search subscription contracts are generally one year or longer in length , while initial social and display contracts may vary in duration . under our subscription contracts with most of our direct advertisers and some of our agency customers , customers are contractually committed to a minimum monthly platform fee , which is payable on a monthly basis over the duration of the contract and is generally greater than one-half of our estimated monthly revenues from these customers , at the time the contract is signed . however , most of our subscription contracts with our advertising agency customers do not include a committed minimum monthly platform fee . our contractual arrangement is with the advertising agency and the advertiser is not a party to the terms of the contract . accordingly , most advertisers through our agency customers do not have a commitment to use our services and the advertisers may be added or removed from our platform at the discretion of the respective agency . we invoice the advertising agency for the amounts due under the contract . historically , approximately half of our revenues have been earned from advertising agency customers . our subscription fee under most contracts is variable based upon the value of advertising spend that our customers manage through our platform . our deferred revenues consist of the unearned portion of billed subscription fees . under our subscription contracts , we generally begin invoicing our customers the first day of the month following the execution of the contract . we generally invoice the greater of the minimum monthly platform fee or the percentage of advertising spend on our platform . the implementation process for new advertisers is typically four to six weeks ; however , we generally have not charged a separate implementation fee under our standard subscription contracts . 30 our implementation and customer sup port personnel , as well as costs associated with our operating infrastructure , are included in our cost of revenues . our cost of revenues and operating expenses are reflective of the headcount needed to grow our business and to increase data center capacit y to support customer revenue growth on our platform . our cost of revenues may increase in absolute dollars as we continue to invest in our growth . to grow revenues , we need to invest in ( 1 ) sales activities by adding sales representatives globally to target new advertisers and agencies and ( 2 ) research and development to improve and further expand our platform and support for additional publishers . these activities will require us to make investments , particularly in research and development and sales and marketing , and if these investments do not generate additional customers or additional advertising spend managed by our platform , our future operating results could be harmed . the majority of our revenues are derived from our advertisers in the united states . we believe the markets outside of the united states offer an opportunity for growth , and we continue investing in our international capabilities and operations to expand in these markets . advertisers from outside of the united states represented 31 % , 33 % and 34 % of total revenues for 2016 , 2015 and 2014 , respectively . we were incorporated in 2006 and initially focused on building the core elements of our cloud-based platform , which we currently use to service our customers . in september 2007 , we launched marin enterprise , which targets large advertisers and agencies . we released marin professional edition in march 2011 , which targets mid-market advertisers and agencies . we have an iterative development process and we typically release new features every month . additionally , we have expanded internationally since our incorporation , opening our hamburg , paris and sydney offices in 2011 , our dublin and tokyo offices in 2012 and our shanghai office in 2013. we completed our acquisitions of socialmoov s.a.s . and nowspots , inc. , which conducted business as perfect audience , in february 2015 and june 2014 , respectively , to complement our product offerings . these acquisitions are more fully described in note 3 to the consolidated financial statements . components of results of operations revenues we generate revenues principally from subscription contracts under which we provide advertisers with access to our search , social and display advertising management platform , either directly or through the advertiser 's relationship with an agency with whom we have a contract . under these subscription contracts , we charge fees generally based upon the amount of advertising spend that our customers manage through our platform . our search subscription contracts are generally one year or longer in length , while initial social and display contracts may vary in duration . under our contracts with advertising agencies , the advertiser is not a party to the terms of the contract . accordingly , most advertisers operating through agencies do not have a minimum commitment to use our services , and the advertisers may be added or removed from our platform at the discretion of the respective agency . we invoice the advertising agency for the amounts due under the contract . under our subscription contracts with most direct advertisers and some of our agency customers , customers contractually commit to a minimum monthly platform fee , which is generally greater than one-half of our estimated monthly revenues from these customers , at the time the contract is signed . story_separator_special_tag the remaining $ 1.8 million increase during the year is primarily the result of an increase in professional fees of $ 0.6 million due to the usage of third-party resources to support the engineering and quality assurance functions ; an increase in allocated overhead of $ 0.6 million due to the growth in headcount ; and an increase in amortization expense of $ 0.6 million related to the intangible assets acquired as part of the perfect audience and socialmoov acquisitions . general and administrative replace_table_token_24_th general and administrative expenses increased $ 1.1 million , or 5 % , respectively , as compared to 2014. this was due primarily to an increase in compensation , benefits and other employee-related expenses of $ 0.9 million during 2015 due to fluctuations in the number of general and administrative personnel and the granting of additional equity awards to our existing employees . facilities expenses increased $ 1.4 million from the prior year due to our global expansion and rent increases associated with certain of our leases , but were largely offset due to decreases in professional fees of $ 1.0 million , primarily as a result of efficiencies realized by our service providers , and recruiting costs of $ 0.4 million , due primarily to scaling back growth in headcount . interest expense , net and other income ( expenses ) , net replace_table_token_25_th other income ( expenses ) , net , primarily consists of foreign currency transaction gains and losses . during 2015 , the decrease of $ 0.7 million in interest expense , net and other income ( expenses ) , net , was primarily due to fluctuations in our net foreign currency gains and losses as a result of changes in foreign exchange rates . ( provision for ) benefit from income taxes years ended december 31 , change 2015 2014 $ % ( dollars in thousands ) ( provision for ) benefit from income taxes $ ( 1,005 ) $ 1,456 $ ( 2,461 ) ( 169 ) % the provision for income taxes for 2015 of $ 1.0 million was primarily the result of increased profits generated from our foreign operations , while the benefit from income taxes for 2014 of $ 1.4 million was primarily due to a decrease in our valuation allowances as a result of deferred tax liabilities recorded as part of the acquisition of perfect audience . 38 quarterly results of operations the following table sets forth our unaudited quarterly consolidated statements of operations data for each of the eight quarters in the period ended december 31 , 2016. we have prepared the quarterly data on a basis consistent with our audited annual financial statements , including , in the opinion of management , all normal recurring adjustments necessary for the fair statement of the financial information contained in these statements . the historical results are not necessarily indicative of future results and should be read in conjunction with our consolidated financial statements and the related notes included elsewhere in this annual report on form 10-k. replace_table_token_26_th ( 1 ) stock-based compensation expense included in the consolidated statements of operations data above was as follows : replace_table_token_27_th ( 2 ) amortization of intangible assets included in the consolidated statements of operations data above was as follows : replace_table_token_28_th 39 ( 3 ) restructuring related expenses included in the consolidated statements of operations data above was as follows : replace_table_token_29_th the following table sets forth our consolidated results of operations for the specified periods as a percentage of our revenues for those periods . percentage of revenue figures are rounded and therefore may not subtotal exactly . replace_table_token_30_th story_separator_special_tag 41 of the collection of minimum fees at the start of our subscriptio n agreements ; and ( 4 ) a net decrease in accounts payable and accrued expenses and other current and noncurrent liabilities of $ 0.1 million due to the timing of related disbursements and customer advances . this was partially offset by non-cash expenses of $ 16.5 million , which included depreciation , amortization , stock-based compensation expense and deferred income tax benefits , which increased primarily due to capital expenses and headcount growth , primarily related to continued investment in our business , a s well as the acquisition of perfect audience . investing activities during 2016 , 2015 and 2014 , investing activities primarily consisted of purchases of property and equipment , including technology hardware and software to support our business , as well as capitalized internally developed software costs . purchases of property and equipment may vary from period-to-period due to the timing of the expansion of our operations and the development cycles of our internally developed hosted software platform . we expect to continue to invest in property and equipment and developing our software platform for the foreseeable future . investing activities during 2015 and 2014 are also inclusive of cash paid for the acquisitions of socialmoov ( $ 8.9 million , net of cash acquired of $ 1.2 million ) and perfect audience ( $ 5.3 million , net of cash acquired of $ 1.1 million ) , respectively . financing activities cash used in financing activities in 2016 totaled $ 0.4 million . this was primarily due to $ 1.4 million in net repayments under our capital lease arrangements , partially offset by $ 1.1 million of proceeds from the exercise of stock options and contributions to our employee stock purchase plan . cash used in financing activities in 2015 totaled $ 1.3 million . this was primarily due to $ 3.6 million in net repayments under the loans assumed in the socialmoov acquisition , our credit facility and our capital lease arrangements , partially offset by $ 2.4 million of proceeds from the exercise of stock options and contributions to our employee stock purchase plan . cash provided by financing activities in 2014 was $ 0.9 million . this was primarily related to $ 3.9 million of
| liquidity and capital resources since our incorporation in march 2006 , we have relied primarily on sales of our capital stock to fund our operating activities . from incorporation until our ipo , we raised $ 105.7 million , net of related issuance costs , in funding through private placements of our preferred stock . in march and april 2013 , we raised net proceeds of $ 109.3 million in our ipo . from time to time , we have also utilized equipment lines and entered into capital lease arrangements to fund capital purchases . as of december 31 , 2016 , our principal sources of liquidity were our unrestricted cash and cash equivalents of $ 34.4 million and our capital lease arrangements . the approximate weighted average interest rate on our outstanding borrowings as of december 31 , 2016 was 5.6 % . our primary operating cash requirements include the payment of compensation and related costs , as well as costs for our facilities and information technology infrastructure . in december 2016 , we terminated our existing revolving credit facility , which provided access to borrowings at the lesser of $ 20.0 million or 80 % of eligible accounts receivable . no amounts were outstanding under this revolving credit facility at the date of termination , and we determined that it was no longer necessary . we maintain a $ 1.3 million irrevocable letter of credit to secure the non-cancelable lease for our corporate headquarters in san francisco , which was previously collateralized by the revolving credit facility . following the termination of that facility , we were required to restrict $ 1.3 million of our cash and cash equivalents from use to secure this letter of credit . this balance is reflected as restricted cash on the consolidated balance sheets of the accompanying consolidated financial statements . 40 we presently maintain cash balances in our foreign subsidiaries . as of december 31 , 2016 , we had $ 34.4 million of unrestricted cash and cash e quivalents in aggregate , of which $ 14.2 million was held by 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 since our incorporation in march 2006 , we have relied primarily on sales of our capital stock to fund our operating activities . from incorporation until our ipo , we raised $ 105.7 million , net of related issuance costs , in funding through private placements of our preferred stock . in march and april 2013 , we raised net proceeds of $ 109.3 million in our ipo . from time to time , we have also utilized equipment lines and entered into capital lease arrangements to fund capital purchases . as of december 31 , 2016 , our principal sources of liquidity were our unrestricted cash and cash equivalents of $ 34.4 million and our capital lease arrangements . the approximate weighted average interest rate on our outstanding borrowings as of december 31 , 2016 was 5.6 % . our primary operating cash requirements include the payment of compensation and related costs , as well as costs for our facilities and information technology infrastructure . in december 2016 , we terminated our existing revolving credit facility , which provided access to borrowings at the lesser of $ 20.0 million or 80 % of eligible accounts receivable . no amounts were outstanding under this revolving credit facility at the date of termination , and we determined that it was no longer necessary . we maintain a $ 1.3 million irrevocable letter of credit to secure the non-cancelable lease for our corporate headquarters in san francisco , which was previously collateralized by the revolving credit facility . following the termination of that facility , we were required to restrict $ 1.3 million of our cash and cash equivalents from use to secure this letter of credit . this balance is reflected as restricted cash on the consolidated balance sheets of the accompanying consolidated financial statements . 40 we presently maintain cash balances in our foreign subsidiaries . as of december 31 , 2016 , we had $ 34.4 million of unrestricted cash and cash e quivalents in aggregate , of which $ 14.2 million was held by our foreign subsidiaries .
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Suspicious Activity Report : the majority of our revenue is earned from subscription contracts under which we provide advertisers with access to our search , social and display advertising management platform , either directly or through the advertiser 's relationship with an agency that has a contract with us . in accordance with the subscription contracts , we charge fees generally based upon the amount of advertising spend that our customers manage through our platform . our search subscription contracts are generally one year or longer in length , while initial social and display contracts may vary in duration . under our subscription contracts with most of our direct advertisers and some of our agency customers , customers are contractually committed to a minimum monthly platform fee , which is payable on a monthly basis over the duration of the contract and is generally greater than one-half of our estimated monthly revenues from these customers , at the time the contract is signed . however , most of our subscription contracts with our advertising agency customers do not include a committed minimum monthly platform fee . our contractual arrangement is with the advertising agency and the advertiser is not a party to the terms of the contract . accordingly , most advertisers through our agency customers do not have a commitment to use our services and the advertisers may be added or removed from our platform at the discretion of the respective agency . we invoice the advertising agency for the amounts due under the contract . historically , approximately half of our revenues have been earned from advertising agency customers . our subscription fee under most contracts is variable based upon the value of advertising spend that our customers manage through our platform . our deferred revenues consist of the unearned portion of billed subscription fees . under our subscription contracts , we generally begin invoicing our customers the first day of the month following the execution of the contract . we generally invoice the greater of the minimum monthly platform fee or the percentage of advertising spend on our platform . the implementation process for new advertisers is typically four to six weeks ; however , we generally have not charged a separate implementation fee under our standard subscription contracts . 30 our implementation and customer sup port personnel , as well as costs associated with our operating infrastructure , are included in our cost of revenues . our cost of revenues and operating expenses are reflective of the headcount needed to grow our business and to increase data center capacit y to support customer revenue growth on our platform . our cost of revenues may increase in absolute dollars as we continue to invest in our growth . to grow revenues , we need to invest in ( 1 ) sales activities by adding sales representatives globally to target new advertisers and agencies and ( 2 ) research and development to improve and further expand our platform and support for additional publishers . these activities will require us to make investments , particularly in research and development and sales and marketing , and if these investments do not generate additional customers or additional advertising spend managed by our platform , our future operating results could be harmed . the majority of our revenues are derived from our advertisers in the united states . we believe the markets outside of the united states offer an opportunity for growth , and we continue investing in our international capabilities and operations to expand in these markets . advertisers from outside of the united states represented 31 % , 33 % and 34 % of total revenues for 2016 , 2015 and 2014 , respectively . we were incorporated in 2006 and initially focused on building the core elements of our cloud-based platform , which we currently use to service our customers . in september 2007 , we launched marin enterprise , which targets large advertisers and agencies . we released marin professional edition in march 2011 , which targets mid-market advertisers and agencies . we have an iterative development process and we typically release new features every month . additionally , we have expanded internationally since our incorporation , opening our hamburg , paris and sydney offices in 2011 , our dublin and tokyo offices in 2012 and our shanghai office in 2013. we completed our acquisitions of socialmoov s.a.s . and nowspots , inc. , which conducted business as perfect audience , in february 2015 and june 2014 , respectively , to complement our product offerings . these acquisitions are more fully described in note 3 to the consolidated financial statements . components of results of operations revenues we generate revenues principally from subscription contracts under which we provide advertisers with access to our search , social and display advertising management platform , either directly or through the advertiser 's relationship with an agency with whom we have a contract . under these subscription contracts , we charge fees generally based upon the amount of advertising spend that our customers manage through our platform . our search subscription contracts are generally one year or longer in length , while initial social and display contracts may vary in duration . under our contracts with advertising agencies , the advertiser is not a party to the terms of the contract . accordingly , most advertisers operating through agencies do not have a minimum commitment to use our services , and the advertisers may be added or removed from our platform at the discretion of the respective agency . we invoice the advertising agency for the amounts due under the contract . under our subscription contracts with most direct advertisers and some of our agency customers , customers contractually commit to a minimum monthly platform fee , which is generally greater than one-half of our estimated monthly revenues from these customers , at the time the contract is signed . story_separator_special_tag the remaining $ 1.8 million increase during the year is primarily the result of an increase in professional fees of $ 0.6 million due to the usage of third-party resources to support the engineering and quality assurance functions ; an increase in allocated overhead of $ 0.6 million due to the growth in headcount ; and an increase in amortization expense of $ 0.6 million related to the intangible assets acquired as part of the perfect audience and socialmoov acquisitions . general and administrative replace_table_token_24_th general and administrative expenses increased $ 1.1 million , or 5 % , respectively , as compared to 2014. this was due primarily to an increase in compensation , benefits and other employee-related expenses of $ 0.9 million during 2015 due to fluctuations in the number of general and administrative personnel and the granting of additional equity awards to our existing employees . facilities expenses increased $ 1.4 million from the prior year due to our global expansion and rent increases associated with certain of our leases , but were largely offset due to decreases in professional fees of $ 1.0 million , primarily as a result of efficiencies realized by our service providers , and recruiting costs of $ 0.4 million , due primarily to scaling back growth in headcount . interest expense , net and other income ( expenses ) , net replace_table_token_25_th other income ( expenses ) , net , primarily consists of foreign currency transaction gains and losses . during 2015 , the decrease of $ 0.7 million in interest expense , net and other income ( expenses ) , net , was primarily due to fluctuations in our net foreign currency gains and losses as a result of changes in foreign exchange rates . ( provision for ) benefit from income taxes years ended december 31 , change 2015 2014 $ % ( dollars in thousands ) ( provision for ) benefit from income taxes $ ( 1,005 ) $ 1,456 $ ( 2,461 ) ( 169 ) % the provision for income taxes for 2015 of $ 1.0 million was primarily the result of increased profits generated from our foreign operations , while the benefit from income taxes for 2014 of $ 1.4 million was primarily due to a decrease in our valuation allowances as a result of deferred tax liabilities recorded as part of the acquisition of perfect audience . 38 quarterly results of operations the following table sets forth our unaudited quarterly consolidated statements of operations data for each of the eight quarters in the period ended december 31 , 2016. we have prepared the quarterly data on a basis consistent with our audited annual financial statements , including , in the opinion of management , all normal recurring adjustments necessary for the fair statement of the financial information contained in these statements . the historical results are not necessarily indicative of future results and should be read in conjunction with our consolidated financial statements and the related notes included elsewhere in this annual report on form 10-k. replace_table_token_26_th ( 1 ) stock-based compensation expense included in the consolidated statements of operations data above was as follows : replace_table_token_27_th ( 2 ) amortization of intangible assets included in the consolidated statements of operations data above was as follows : replace_table_token_28_th 39 ( 3 ) restructuring related expenses included in the consolidated statements of operations data above was as follows : replace_table_token_29_th the following table sets forth our consolidated results of operations for the specified periods as a percentage of our revenues for those periods . percentage of revenue figures are rounded and therefore may not subtotal exactly . replace_table_token_30_th story_separator_special_tag 41 of the collection of minimum fees at the start of our subscriptio n agreements ; and ( 4 ) a net decrease in accounts payable and accrued expenses and other current and noncurrent liabilities of $ 0.1 million due to the timing of related disbursements and customer advances . this was partially offset by non-cash expenses of $ 16.5 million , which included depreciation , amortization , stock-based compensation expense and deferred income tax benefits , which increased primarily due to capital expenses and headcount growth , primarily related to continued investment in our business , a s well as the acquisition of perfect audience . investing activities during 2016 , 2015 and 2014 , investing activities primarily consisted of purchases of property and equipment , including technology hardware and software to support our business , as well as capitalized internally developed software costs . purchases of property and equipment may vary from period-to-period due to the timing of the expansion of our operations and the development cycles of our internally developed hosted software platform . we expect to continue to invest in property and equipment and developing our software platform for the foreseeable future . investing activities during 2015 and 2014 are also inclusive of cash paid for the acquisitions of socialmoov ( $ 8.9 million , net of cash acquired of $ 1.2 million ) and perfect audience ( $ 5.3 million , net of cash acquired of $ 1.1 million ) , respectively . financing activities cash used in financing activities in 2016 totaled $ 0.4 million . this was primarily due to $ 1.4 million in net repayments under our capital lease arrangements , partially offset by $ 1.1 million of proceeds from the exercise of stock options and contributions to our employee stock purchase plan . cash used in financing activities in 2015 totaled $ 1.3 million . this was primarily due to $ 3.6 million in net repayments under the loans assumed in the socialmoov acquisition , our credit facility and our capital lease arrangements , partially offset by $ 2.4 million of proceeds from the exercise of stock options and contributions to our employee stock purchase plan . cash provided by financing activities in 2014 was $ 0.9 million . this was primarily related to $ 3.9 million of
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2,648 | overview the following discussion and analysis summarizes significant factors affecting our consolidated operating results and financial condition for the years ended december 31 , 2017 , 2016 , and 2015. this discussion and analysis should be read in conjunction with the “ cautionary note regarding forward-looking statements ” , “ part ii , item 6 : selected financial data ” , and the consolidated financial statements and the notes thereto included in “ part ii , item 8. financial statements and supplementary data ” presented in this annual report on form 10-k. this discussion and analysis contains forward-looking statements that involve risks and uncertainties . our actual results could differ materially from those expressed or implied in any forward-looking statements due to various factors , including those set forth under “ part i , item 1a : risk factors ” in this annual report on form 10-k. the date of this discussion is as of february 26 , 2018. we prepare our consolidated financial statements in accordance with united states generally accepted accounting principles ( “ us gaap ” ) . except for gtv , which is a measure of operational performance and not a measure of financial performance , liquidity , or revenue , the amounts discussed below are based on our consolidated financial statements . unless indicated otherwise , all tabular dollar amounts , including related footnotes , presented below are expressed in thousands of united states ( “ u.s. ” ) dollars . we make reference to various non-gaap financial measures throughout this discussion and analysis . these measures do not have a standardized meaning , and are therefore unlikely to be comparable to similar measures presented by other companies . consolidated highlights financial highlights key highlights for fiscal 2017 were : · gtv of $ 4.5 billion ; a 3 % increase over 2016 · revenues of $ 610.5 million ; an increase of 8 % versus $ 566.4 million in 2016 · consolidated revenue rate of 13.66 % ; a 59 basis points ( “ bps ” ) increase over 2016 · a & m segment revenues up 6 % with segment revenue rate up 36 bps to 12.63 % versus 12.27 % in 2016 · revenues from other services of $ 46.2 million ; an increase of 34 % compared to 2016 · cash provided by operating activities of $ 146.3 million after interest expense of $ 33.2 million in 2017 resulting from the additional debt undertaken for the ironplanet acquisition · declared quarterly dividends aggregating to $ 0.68 per common share in 2017 our 2017 financial performance was influenced by a few notable factors : first , our business experienced broad-based effects of unprecedented demand for infrastructure projects . this led to high equipment utilization rates and an overall equipment shortage , principally in the united states , resulting in lower than expected full year gtv and revenue performance . other notable factors included : · our columbus , united states , live on site auction , which generated $ 76.6 million of gtv in the third quarter of 2016 compared to $ 10.5 million in the third quarter of 2017 ; · our largest-ever auction in grande prairie , canada , in march 2016 , which generated more than $ 46.0 million ( 62.0 million canadian dollars ) of gtv , with no similar auction on the calendar in 2017 ; and ritchie bros. 40 · a volume decrease in our underwritten business , most significantly in western canada , where we continued to see fewer disposals of oil and gas assets due to commodity price improvements . in addition , we completed the significant acquisition of ironplanet and immersed ourselves in the integration of the businesses . during the integration , we experienced some temporary sales productivity decline , which was expected due to the size of the acquisition . in 2017 , we generated $ 75.0 million of net income attributable to stockholders . diluted earnings per share ( “ eps ” ) attributable to stockholders was $ 0.69 including $ 38.3 million of acquisition-related costs and $ 38.3 million of interest expense , compared to a diluted eps attributable to stockholders of $ 0.85 in 2016. diluted adjusted eps attributable to stockholders 4 ( non-gaap measure ) decreased 30 % to $ 0.81 in 2017 from $ 1.15 in 2016. operational highlights in 2017 , our operational focus was on executing our a & m business while integrating the ironplanet acquisition . some notable highlights were : · completing the ironplanet acquisition – the financing of which significantly increased our debt levels – which accelerated our multi-channel evolution and digital capabilities , while providing customers with unprecedented choice in our online marketplaces . · achieving our 2017 integration milestones , which included the following accomplishments : § integrating the separate ritchie bros. and ironplanet sales teams into a single , unified , customer-facing sales force . § completing the first phase of the technology integration – the sales unification phase . this phase provides our sales teams with the ability to sell across platforms and integrate pricing and appraisal tools . § combining equipmentone and ironplanet 's daily marketplace to create our marketplace e solution ; a premium service offering unprecedented control and selection for buyers . § delivering growth of 6 % and 16 % in gtv and revenues , respectively , in our business outside of the united states and canada in 2017 compared to 2016 . § expanding rbfs capabilities to the broader customer base . § initiating a harmonization of our live on site auction transaction fee structure with that of our online marketplace . the new harmonized fee structure , which will take effect in 2018 , is intended to make customers channel agnostic with respect to purchasing equipment . the harmonization is expected to increase our fee revenues . story_separator_special_tag 2016 performance operating income decreased $ 39.1 million , or 22 % , in 2016 compared to 2015. this decrease was primarily due to the increase in sg & a expense , the recognition of an impairment loss , higher acquisition-related costs and costs of services , and a decrease in gains on disposal of property , plant and equipment in 2016 compared to 2015. this decrease was partially offset by the increase in revenues year-over-year . foreign exchange rates had a negative impact on operating income in 2016. adjusted operating income ( non-gaap measure ) decreased $ 2.5 million , or 1 % , to $ 164.0 million in 2016 compared to $ 166.5 million in 2015. primarily for the same reasons noted above , operating income margin decreased 990 bps to 24.0 % in 2016 compared to 33.9 % in 2015. adjusted operating income margin ( non-gaap measure ) decreased 340 bps to 28.9 % in 2016 from 32.3 % in 2015. other income ( expense ) other income ( expense ) is comprised of the following : replace_table_token_11_th 5 adjusted operating income is a non-gaap measure . we use income statement and balance sheet performance scorecards to align our operations with our strategic priorities . we concentrate on a limited number of metrics to ensure focus and to facilitate quarterly performance discussions . our income statement scorecard includes the performance metric , adjusted operating income . we believe that comparing adjusted operating income for different financial periods provides useful information about the growth or decline of operating income for the relevant financial period . we calculate adjusted operating income by eliminating from operating income the pre-tax effects of significant non-recurring items that we do not consider to be part of our normal operating results , such as acquisition-related costs , management reorganization costs , severance , retention , gains/losses on sale of certain property , plant and equipment , impairment losses , and certain other items , which we refer to as ‘ adjusting items ' . adjusted operating income is reconciled to the most directly comparable gaap measures in our consolidated financial statements under “ non-gaap measures ” below . 6 our income statement scorecard includes the performance metric , adjusted operating income margin , which is a non-gaap measure . we believe that comparing adjusted operating income margin for different financial periods provides useful information about the growth or decline of our operating income for the relevant financial period . we calculate adjusted operating income margin by dividing adjusted operating income ( non-gaap measure ) by revenues . adjusted operating income margin is reconciled to the most directly comparable gaap measures in our consolidated financial statements under “ non-gaap measures ” below . ritchie bros. 47 we incurred additional indebtedness to finance the acquisition . as of december 31 , 2017 , our debt was $ 819.9 million , compared to $ 619.6 million as of december 31 , 2016. the increase in interest expense in 2017 compared to 2016 is primarily due to our higher debt balances , as well as minimal increases in short-term interest rates . debt extinguishment costs were incurred in the fourth quarter of 2016 in association with the early termination of pre-existing long-term debt due in may 2022. income tax expense and effective tax rate recent tax legislation on december 22 , 2017 , the tax cuts and jobs act ( “ tcja ” ) was enacted into law , which significantly changes existing u.s. tax law and includes numerous provisions that affect our business , such as reducing the u.s. federal statutory tax rate , imposing a one-time transition tax on deemed repatriation of deferred foreign income , and adopting a territorial tax system . the tcja reduces the u.s. federal statutory tax rate from 35 % to 21 % effective january 1 , 2018. the one-time transition tax is based on our total post-1986 earnings and profits ( “ e & p ” ) of controlled foreign affiliates of our us subsidiaries that we previously deferred from us income tax . the tcja includes a provision to tax global intangible low-taxed income ( “ gilti ” ) of foreign subsidiaries and a base erosion anti-abuse tax ( “ beat ” ) measure that taxes certain payments between a u.s. corporation and its subsidiaries . in addition , the tcja disallows deductions for interest and royalty payments from u.s. companies to non-u.s. affiliates that are hybrid payments ( “ hybrid ” ) or made to hybrid entities . the gilti , beat , and hybrid provisions of the tcja will be effective for us beginning january 1 , 2018. the tcja is effective in the first quarter of fiscal year 2018. as of december 31 , 2017 , we have not completed our accounting for the tax effects of the tcja . in december 2017 , we recorded a provisional net benefit based on reasonable estimates for those tax effects . the provisional net benefit is subject to revisions as we complete our analysis of the tcja , collect and prepare necessary data , and interpret any additional guidance issued by the u.s. treasury department , internal revenue service , financial accounting standards board , and other standard-setting and regulatory bodies . adjustments may materially impact our provision for income taxes and effective tax rate in the period in which the adjustments are made . our accounting for the tax effects of the tcja will be completed during the measurement period , which should not extend beyond one year from the enactment date . during the fourth quarter of fiscal year 2017 , we recorded an estimated net benefit of $ 9.7 million related to the tcja , due to the impact of the one-time transition tax on the deemed repatriation of deferred foreign income of $ 0.3 million , and the impact of changes in the tax rate of $ 10.1 million on deferred tax assets and
| debt and credit facilities at december 31 , 2017 , our short-term debt of $ 7.0 million consisted of borrowings under our committed revolving credit facilities and had a weighted average annual interest rate of 2.7 % . this compares to current borrowings of $ 23.9 million at december 31 , 2016 with a weighted average annual interest rate of 2.2 % . as at december 31 , 2017 , we had a total of $ 812.9 million long-term debt with a weighted average annual interest rate of 4.8 % . this compares to long-term debt of $ 595.7 million as at december 31 , 2016 with a weighted average annual interest rate of 4.9 % . our long-term debt and available credit facilities at december 31 , 2017 and 2016 were as follows : replace_table_token_24_th 15 roic excluding escrowed debt is a non-gaap financial measure that we believe , by comparing on a trailing 12-month basis for different financial periods provides useful information about the after-tax return generated by our investments by removing the impact of the issue of the notes , which were held in escrow at december 31 , 2016. while the notes were in escrow and not accessible by us , they were not contributing to the generation of net income . we believe that by adjusting debt to remove funds we do not have access to , we are providing more accurate information about the after-tax return generated by our investments . we calculate roic excluding escrowed debt as adjusted net income attributable to stockholders ( non-gaap measure ) divided by adjusted average invested capital ( non-gaap measure ) . we calculate adjusted average invested capital ( non-gaap measure ) as the adjusted average long-term debt ( non-gaap measure ) and average stockholders ' equity over a trailing 12-month period . we calculate adjusted average long-term debt ( non-gaap measure ) as the average of adjusted opening long-term debt ( non-gaap measure ) and adjusted ending long-term debt ( non-gaap measure ) .
| 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 and credit facilities at december 31 , 2017 , our short-term debt of $ 7.0 million consisted of borrowings under our committed revolving credit facilities and had a weighted average annual interest rate of 2.7 % . this compares to current borrowings of $ 23.9 million at december 31 , 2016 with a weighted average annual interest rate of 2.2 % . as at december 31 , 2017 , we had a total of $ 812.9 million long-term debt with a weighted average annual interest rate of 4.8 % . this compares to long-term debt of $ 595.7 million as at december 31 , 2016 with a weighted average annual interest rate of 4.9 % . our long-term debt and available credit facilities at december 31 , 2017 and 2016 were as follows : replace_table_token_24_th 15 roic excluding escrowed debt is a non-gaap financial measure that we believe , by comparing on a trailing 12-month basis for different financial periods provides useful information about the after-tax return generated by our investments by removing the impact of the issue of the notes , which were held in escrow at december 31 , 2016. while the notes were in escrow and not accessible by us , they were not contributing to the generation of net income . we believe that by adjusting debt to remove funds we do not have access to , we are providing more accurate information about the after-tax return generated by our investments . we calculate roic excluding escrowed debt as adjusted net income attributable to stockholders ( non-gaap measure ) divided by adjusted average invested capital ( non-gaap measure ) . we calculate adjusted average invested capital ( non-gaap measure ) as the adjusted average long-term debt ( non-gaap measure ) and average stockholders ' equity over a trailing 12-month period . we calculate adjusted average long-term debt ( non-gaap measure ) as the average of adjusted opening long-term debt ( non-gaap measure ) and adjusted ending long-term debt ( non-gaap measure ) .
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Suspicious Activity Report : overview the following discussion and analysis summarizes significant factors affecting our consolidated operating results and financial condition for the years ended december 31 , 2017 , 2016 , and 2015. this discussion and analysis should be read in conjunction with the “ cautionary note regarding forward-looking statements ” , “ part ii , item 6 : selected financial data ” , and the consolidated financial statements and the notes thereto included in “ part ii , item 8. financial statements and supplementary data ” presented in this annual report on form 10-k. this discussion and analysis contains forward-looking statements that involve risks and uncertainties . our actual results could differ materially from those expressed or implied in any forward-looking statements due to various factors , including those set forth under “ part i , item 1a : risk factors ” in this annual report on form 10-k. the date of this discussion is as of february 26 , 2018. we prepare our consolidated financial statements in accordance with united states generally accepted accounting principles ( “ us gaap ” ) . except for gtv , which is a measure of operational performance and not a measure of financial performance , liquidity , or revenue , the amounts discussed below are based on our consolidated financial statements . unless indicated otherwise , all tabular dollar amounts , including related footnotes , presented below are expressed in thousands of united states ( “ u.s. ” ) dollars . we make reference to various non-gaap financial measures throughout this discussion and analysis . these measures do not have a standardized meaning , and are therefore unlikely to be comparable to similar measures presented by other companies . consolidated highlights financial highlights key highlights for fiscal 2017 were : · gtv of $ 4.5 billion ; a 3 % increase over 2016 · revenues of $ 610.5 million ; an increase of 8 % versus $ 566.4 million in 2016 · consolidated revenue rate of 13.66 % ; a 59 basis points ( “ bps ” ) increase over 2016 · a & m segment revenues up 6 % with segment revenue rate up 36 bps to 12.63 % versus 12.27 % in 2016 · revenues from other services of $ 46.2 million ; an increase of 34 % compared to 2016 · cash provided by operating activities of $ 146.3 million after interest expense of $ 33.2 million in 2017 resulting from the additional debt undertaken for the ironplanet acquisition · declared quarterly dividends aggregating to $ 0.68 per common share in 2017 our 2017 financial performance was influenced by a few notable factors : first , our business experienced broad-based effects of unprecedented demand for infrastructure projects . this led to high equipment utilization rates and an overall equipment shortage , principally in the united states , resulting in lower than expected full year gtv and revenue performance . other notable factors included : · our columbus , united states , live on site auction , which generated $ 76.6 million of gtv in the third quarter of 2016 compared to $ 10.5 million in the third quarter of 2017 ; · our largest-ever auction in grande prairie , canada , in march 2016 , which generated more than $ 46.0 million ( 62.0 million canadian dollars ) of gtv , with no similar auction on the calendar in 2017 ; and ritchie bros. 40 · a volume decrease in our underwritten business , most significantly in western canada , where we continued to see fewer disposals of oil and gas assets due to commodity price improvements . in addition , we completed the significant acquisition of ironplanet and immersed ourselves in the integration of the businesses . during the integration , we experienced some temporary sales productivity decline , which was expected due to the size of the acquisition . in 2017 , we generated $ 75.0 million of net income attributable to stockholders . diluted earnings per share ( “ eps ” ) attributable to stockholders was $ 0.69 including $ 38.3 million of acquisition-related costs and $ 38.3 million of interest expense , compared to a diluted eps attributable to stockholders of $ 0.85 in 2016. diluted adjusted eps attributable to stockholders 4 ( non-gaap measure ) decreased 30 % to $ 0.81 in 2017 from $ 1.15 in 2016. operational highlights in 2017 , our operational focus was on executing our a & m business while integrating the ironplanet acquisition . some notable highlights were : · completing the ironplanet acquisition – the financing of which significantly increased our debt levels – which accelerated our multi-channel evolution and digital capabilities , while providing customers with unprecedented choice in our online marketplaces . · achieving our 2017 integration milestones , which included the following accomplishments : § integrating the separate ritchie bros. and ironplanet sales teams into a single , unified , customer-facing sales force . § completing the first phase of the technology integration – the sales unification phase . this phase provides our sales teams with the ability to sell across platforms and integrate pricing and appraisal tools . § combining equipmentone and ironplanet 's daily marketplace to create our marketplace e solution ; a premium service offering unprecedented control and selection for buyers . § delivering growth of 6 % and 16 % in gtv and revenues , respectively , in our business outside of the united states and canada in 2017 compared to 2016 . § expanding rbfs capabilities to the broader customer base . § initiating a harmonization of our live on site auction transaction fee structure with that of our online marketplace . the new harmonized fee structure , which will take effect in 2018 , is intended to make customers channel agnostic with respect to purchasing equipment . the harmonization is expected to increase our fee revenues . story_separator_special_tag 2016 performance operating income decreased $ 39.1 million , or 22 % , in 2016 compared to 2015. this decrease was primarily due to the increase in sg & a expense , the recognition of an impairment loss , higher acquisition-related costs and costs of services , and a decrease in gains on disposal of property , plant and equipment in 2016 compared to 2015. this decrease was partially offset by the increase in revenues year-over-year . foreign exchange rates had a negative impact on operating income in 2016. adjusted operating income ( non-gaap measure ) decreased $ 2.5 million , or 1 % , to $ 164.0 million in 2016 compared to $ 166.5 million in 2015. primarily for the same reasons noted above , operating income margin decreased 990 bps to 24.0 % in 2016 compared to 33.9 % in 2015. adjusted operating income margin ( non-gaap measure ) decreased 340 bps to 28.9 % in 2016 from 32.3 % in 2015. other income ( expense ) other income ( expense ) is comprised of the following : replace_table_token_11_th 5 adjusted operating income is a non-gaap measure . we use income statement and balance sheet performance scorecards to align our operations with our strategic priorities . we concentrate on a limited number of metrics to ensure focus and to facilitate quarterly performance discussions . our income statement scorecard includes the performance metric , adjusted operating income . we believe that comparing adjusted operating income for different financial periods provides useful information about the growth or decline of operating income for the relevant financial period . we calculate adjusted operating income by eliminating from operating income the pre-tax effects of significant non-recurring items that we do not consider to be part of our normal operating results , such as acquisition-related costs , management reorganization costs , severance , retention , gains/losses on sale of certain property , plant and equipment , impairment losses , and certain other items , which we refer to as ‘ adjusting items ' . adjusted operating income is reconciled to the most directly comparable gaap measures in our consolidated financial statements under “ non-gaap measures ” below . 6 our income statement scorecard includes the performance metric , adjusted operating income margin , which is a non-gaap measure . we believe that comparing adjusted operating income margin for different financial periods provides useful information about the growth or decline of our operating income for the relevant financial period . we calculate adjusted operating income margin by dividing adjusted operating income ( non-gaap measure ) by revenues . adjusted operating income margin is reconciled to the most directly comparable gaap measures in our consolidated financial statements under “ non-gaap measures ” below . ritchie bros. 47 we incurred additional indebtedness to finance the acquisition . as of december 31 , 2017 , our debt was $ 819.9 million , compared to $ 619.6 million as of december 31 , 2016. the increase in interest expense in 2017 compared to 2016 is primarily due to our higher debt balances , as well as minimal increases in short-term interest rates . debt extinguishment costs were incurred in the fourth quarter of 2016 in association with the early termination of pre-existing long-term debt due in may 2022. income tax expense and effective tax rate recent tax legislation on december 22 , 2017 , the tax cuts and jobs act ( “ tcja ” ) was enacted into law , which significantly changes existing u.s. tax law and includes numerous provisions that affect our business , such as reducing the u.s. federal statutory tax rate , imposing a one-time transition tax on deemed repatriation of deferred foreign income , and adopting a territorial tax system . the tcja reduces the u.s. federal statutory tax rate from 35 % to 21 % effective january 1 , 2018. the one-time transition tax is based on our total post-1986 earnings and profits ( “ e & p ” ) of controlled foreign affiliates of our us subsidiaries that we previously deferred from us income tax . the tcja includes a provision to tax global intangible low-taxed income ( “ gilti ” ) of foreign subsidiaries and a base erosion anti-abuse tax ( “ beat ” ) measure that taxes certain payments between a u.s. corporation and its subsidiaries . in addition , the tcja disallows deductions for interest and royalty payments from u.s. companies to non-u.s. affiliates that are hybrid payments ( “ hybrid ” ) or made to hybrid entities . the gilti , beat , and hybrid provisions of the tcja will be effective for us beginning january 1 , 2018. the tcja is effective in the first quarter of fiscal year 2018. as of december 31 , 2017 , we have not completed our accounting for the tax effects of the tcja . in december 2017 , we recorded a provisional net benefit based on reasonable estimates for those tax effects . the provisional net benefit is subject to revisions as we complete our analysis of the tcja , collect and prepare necessary data , and interpret any additional guidance issued by the u.s. treasury department , internal revenue service , financial accounting standards board , and other standard-setting and regulatory bodies . adjustments may materially impact our provision for income taxes and effective tax rate in the period in which the adjustments are made . our accounting for the tax effects of the tcja will be completed during the measurement period , which should not extend beyond one year from the enactment date . during the fourth quarter of fiscal year 2017 , we recorded an estimated net benefit of $ 9.7 million related to the tcja , due to the impact of the one-time transition tax on the deemed repatriation of deferred foreign income of $ 0.3 million , and the impact of changes in the tax rate of $ 10.1 million on deferred tax assets and
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2,649 | other than transactions recently concluded and described below under “ recent financing developments , ” we have no arrangements or plans currently in effect and any inability to raise additional funds could have an adverse effect on our ability to execute our business objectives . in addition , no assurance can be given that we will be able to obtain funds on favorable terms , if at all . recent financing developments in october of 2016 , we raised $ 1.47 million through a private placement of 452,314 shares of our common stock . in march of 2017 , we raised $ 9.2 million in gross proceeds through a private placement of 3,588,620 shares of our common stock and 3,588,620 common stock purchase warrants ( each , a “ warrant ” ) . each warrant entitles its holder to purchase one share of common stock ( each , a “ warrant share ” ) at an exercise price of $ 3.00 per warrant share , subject to adjustment . in april of 2017 , we raised approximately $ 2,700,000 in gross proceeds through a private placement of 1,069,603 shares of our common stock and 1,069,603 warrants . critical accounting policies and recent accounting pronouncements while our significant accounting policies are more fully described in note 2 to the consolidated financial statements appearing elsewhere in this form 10-k , we believe the following accounting policies are critical to the preparation of our financial statements . research and development expenses research and development costs are expensed as incurred and are primarily comprised of , but not limited to , external research and development expenses incurred under arrangements with third parties , such as contract research organizations ( “ cros ” ) , contract manufacturing organizations ( “ cmos ” ) and consultants that conduct clinical and preclinical studies , costs associated with preclinical and development activities , costs associated with regulatory operations , depreciation expense for assets used in research and development activities and employee related expenses , including salaries and benefits for research and development personnel . costs for certain development activities , such as clinical studies , are accrued , over the service period specified in the contract and recognized based on an evaluation of the progress to completion of specific tasks using data such as patient enrollment , clinical site activations or information provided to us by our vendors on their actual costs incurred . payments for these activities are based on the terms of the individual arrangements , which may differ from the patterns of costs incurred , and are reflected in the consolidated financial statements as prepaid or accrued expense , which are reported in prepaid assets or accounts payable and other current liabilities . - 71 - income taxes our income tax expense , deferred tax assets and liabilities , and liabilities for unrecognized tax benefits reflect management 's best estimate of current and future taxes to be paid . we are subject to income taxes in the united states , for federal and various state jurisdictions . significant judgments and estimates are required in the determination of the income tax expense . deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements , which will result in taxable or deductible amounts in the future . 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 of a change in tax rates is recognized in income in the period that includes the enactment date . the assumptions about future taxable income require the use of significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses . in evaluating the objective evidence that historical results provide , we consider three years of cumulative operating income ( loss ) . a valuation allowance is provided when , after consideration of all positive and negative evidence that it is less likely than not that the benefit from federal and state net operating losses ( nols ) will be realizable . in recognition of this risk , we have provided a full valuation allowance on the deferred tax assets related to these nol carryforwards . the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in various jurisdictions . asc 740 “ income taxes ” states that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination , including resolutions of any related appeals or litigation processes , on the basis of the technical merits . we had unrecognized tax benefits of $ 617,233 and $ 331,545 at march 31 , 2017 and 2016 respectively and no unrecognized tax benefits at december 31 , 2015 and 2014. increases or decreases would not have an effect on the effective tax rate . the tax years , which currently remain subject to examination by major tax jurisdictions as of march 31 , 2017 are the period january 1 , 2016 through march 31 , 2016 , years ended december 31 , 2015 and 2014 and for the period july 26 , 2013 to december 31 , 2013. in addition , we had no income tax related penalties or interest for periods presented in these consolidated financial statements . when and if we were to recognize interest and penalties related to unrecognized tax benefits , they would be reported in tax expense . stock-based compensation we follow the authoritative guidance for accounting for stock-based compensation in asc 718 , “ compensation-stock compensation . story_separator_special_tag there were no such transaction costs incurred in the year ended december 31 , 2014. in addition , in the year ended december 31 , 2015 , we incurred costs of $ 1,468,991 for legal and accounting fees as we continue to implement our business plan . salary expense for non-research and development personnel was $ 944,561 for the year ended december 31 , 2015 , compared to $ 440,269 for the year ended december 31 , 2014 , representing a $ 504,292 increase between the comparable periods . this increase is primarily due to a higher salary in 2015 for the company 's chief operating officer and the addition of a chief financial officer in may 2015. we expect to incur further increases in salary expense for non-research and development personnel as we continue to implement our business plan . stock based compensation expense related to stock options granted was $ 485,859 for the year ended december 31 , 2015. no stock options were granted during the year ended december 31 , 2014. for the year ended december 31 , 2015 , we incurred compensation expense , half paid in common shares and half paid in cash , of $ 400,000 related to the three members of the board of directors and special advisor . there was no such expense for the year ended december 31 , 2014. other income ( expense ) interest charges for the year ended december 31 , 2015 was $ 3,503,301 , compared to $ 76,561 for the year ended december 31 , 2014. contemporaneous with the closing of the merger , the bridge note in the principal amount of $ 2,310,000 was converted into 2,310,000 shares of company common stock . on march 5 , 2015 , the mandatory conversion feature of the bridge note was amended to a set fixed conversion amount such that , upon conversion , the bridge note purchaser would receive one share of company common stock for each $ 1.00 of principal of the bridge note outstanding as of the date of the mandatory conversion . we evaluated the modification to the conversion rate as an inducement to convert the bridge note and concluded that it provided the purchaser of the bridge note an incremental value of $ 3,465,000 , which is included as interest expense on the consolidated statement of operations for year ended december 31 , 2015. we recorded interest expense of $ 38,301 on the bridge note during the year ended december 31 , 2015. other income for the year ended december 31 , 2015 was $ 376,255 , which primarily represents a gain recorded on the remeasurement of a derivative liability to $ 0 as of december 31 , 2015. the derivative was originally recorded during the quarter ended march 31 , 2015 and based on updated inputs to the valuation model used , we have determined that the derivative liability has no value at december 31 , 2015. changes in the fair value of the derivative are recognized in earnings in the current period . income tax our effective tax rate for the years ended december 31 , 2015 and 2014 was zero percent . our tax rate is affected primarily by state income taxes and changes in valuation allowance . - 76 - preparation of financial statements ; going concern our financial statements have been prepared in conformity with accounting principles generally accepted in the united states of america ( “ us gaap ” ) , which contemplates our continuation as a going concern . we have incurred losses and negative cash flows from operations since inception ( july 26 , 2013 ) and have an accumulated deficit of approximately $ 33,862,088 as of march 31 , 2017. we anticipate incurring additional losses until such time , if ever , that we can generate significant revenues from our products currently in development . our primary sources of liquidity to date have been the issuance of shares of our common stock , convertible promissory notes and contributed capital by our founders . substantial additional financing will be needed to fund our operations and to commercially develop our product candidates . there is no assurance that such financing will be available when needed or on acceptable terms . these factors raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued . the consolidated financial statements have been prepared on a going concern basis , which contemplates the realization of assets and satisfaction of liabilities in the normal course of business . the consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty . at march 31 , 2017 , we had cash and equivalents of $ 10,482,977 , and working capital and stockholders ' equity of $ 7,384,271 and $ 7,391,806 , respectively . liquidity and capital resources liquidity and capital requirements outlook we anticipate requiring additional capital in order to fund the development of our product candidates , as well as to engage in strategic transactions . the most significant funding needs are anticipated to be in connection with preparing for and conducting immediate phase ii clinical trials of our sm-88 drug candidate for prostate cancer and pancreatic cancer and additional or related studies and investigations . we are evaluating the expansion of our clinical program to other forms of cancer beyond those noted above . to meet our short and long-term liquidity needs , we currently expect to use existing cash balances and a variety of other means , including potential issuances of debt or equity securities in public or private financings , option exercises , and partnerships and or collaborations . the demand for the equity and debt of biopharmaceutical companies like ours is dependent upon many factors , including the general state
| cash flows net cash used in or provided by operating , investing and financing activities from continuing operations were as follows : - 77 - replace_table_token_6_th operating activities our cash used in operating activities in the year ended march 31 , 2017 totaled $ 5,861,127 which is the sum of ( i ) our net loss of $ 15,206,781 , adjusted for non-cash expenses totaling $ 8,076,368 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ 1,269,286. our cash used in operating activities in the three months ended march 31 , 2016 totaled $ 1,373,257 which is the sum of ( i ) our net loss of $ 2,751,127 , adjusted for non-cash expenses totaling $ 1,138,497 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ 239,373. our cash used in operating activities in the three months ended march 31 , 2015 totaled $ 2,281,683 which is the sum of ( i ) our net loss of $ 5,601,438 , adjusted for non-cash expenses totaling $ 4,141,074 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ ( 821,319 ) .
| 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 used in or provided by operating , investing and financing activities from continuing operations were as follows : - 77 - replace_table_token_6_th operating activities our cash used in operating activities in the year ended march 31 , 2017 totaled $ 5,861,127 which is the sum of ( i ) our net loss of $ 15,206,781 , adjusted for non-cash expenses totaling $ 8,076,368 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ 1,269,286. our cash used in operating activities in the three months ended march 31 , 2016 totaled $ 1,373,257 which is the sum of ( i ) our net loss of $ 2,751,127 , adjusted for non-cash expenses totaling $ 1,138,497 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ 239,373. our cash used in operating activities in the three months ended march 31 , 2015 totaled $ 2,281,683 which is the sum of ( i ) our net loss of $ 5,601,438 , adjusted for non-cash expenses totaling $ 4,141,074 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ ( 821,319 ) .
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Suspicious Activity Report : other than transactions recently concluded and described below under “ recent financing developments , ” we have no arrangements or plans currently in effect and any inability to raise additional funds could have an adverse effect on our ability to execute our business objectives . in addition , no assurance can be given that we will be able to obtain funds on favorable terms , if at all . recent financing developments in october of 2016 , we raised $ 1.47 million through a private placement of 452,314 shares of our common stock . in march of 2017 , we raised $ 9.2 million in gross proceeds through a private placement of 3,588,620 shares of our common stock and 3,588,620 common stock purchase warrants ( each , a “ warrant ” ) . each warrant entitles its holder to purchase one share of common stock ( each , a “ warrant share ” ) at an exercise price of $ 3.00 per warrant share , subject to adjustment . in april of 2017 , we raised approximately $ 2,700,000 in gross proceeds through a private placement of 1,069,603 shares of our common stock and 1,069,603 warrants . critical accounting policies and recent accounting pronouncements while our significant accounting policies are more fully described in note 2 to the consolidated financial statements appearing elsewhere in this form 10-k , we believe the following accounting policies are critical to the preparation of our financial statements . research and development expenses research and development costs are expensed as incurred and are primarily comprised of , but not limited to , external research and development expenses incurred under arrangements with third parties , such as contract research organizations ( “ cros ” ) , contract manufacturing organizations ( “ cmos ” ) and consultants that conduct clinical and preclinical studies , costs associated with preclinical and development activities , costs associated with regulatory operations , depreciation expense for assets used in research and development activities and employee related expenses , including salaries and benefits for research and development personnel . costs for certain development activities , such as clinical studies , are accrued , over the service period specified in the contract and recognized based on an evaluation of the progress to completion of specific tasks using data such as patient enrollment , clinical site activations or information provided to us by our vendors on their actual costs incurred . payments for these activities are based on the terms of the individual arrangements , which may differ from the patterns of costs incurred , and are reflected in the consolidated financial statements as prepaid or accrued expense , which are reported in prepaid assets or accounts payable and other current liabilities . - 71 - income taxes our income tax expense , deferred tax assets and liabilities , and liabilities for unrecognized tax benefits reflect management 's best estimate of current and future taxes to be paid . we are subject to income taxes in the united states , for federal and various state jurisdictions . significant judgments and estimates are required in the determination of the income tax expense . deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements , which will result in taxable or deductible amounts in the future . 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 of a change in tax rates is recognized in income in the period that includes the enactment date . the assumptions about future taxable income require the use of significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses . in evaluating the objective evidence that historical results provide , we consider three years of cumulative operating income ( loss ) . a valuation allowance is provided when , after consideration of all positive and negative evidence that it is less likely than not that the benefit from federal and state net operating losses ( nols ) will be realizable . in recognition of this risk , we have provided a full valuation allowance on the deferred tax assets related to these nol carryforwards . the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in various jurisdictions . asc 740 “ income taxes ” states that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination , including resolutions of any related appeals or litigation processes , on the basis of the technical merits . we had unrecognized tax benefits of $ 617,233 and $ 331,545 at march 31 , 2017 and 2016 respectively and no unrecognized tax benefits at december 31 , 2015 and 2014. increases or decreases would not have an effect on the effective tax rate . the tax years , which currently remain subject to examination by major tax jurisdictions as of march 31 , 2017 are the period january 1 , 2016 through march 31 , 2016 , years ended december 31 , 2015 and 2014 and for the period july 26 , 2013 to december 31 , 2013. in addition , we had no income tax related penalties or interest for periods presented in these consolidated financial statements . when and if we were to recognize interest and penalties related to unrecognized tax benefits , they would be reported in tax expense . stock-based compensation we follow the authoritative guidance for accounting for stock-based compensation in asc 718 , “ compensation-stock compensation . story_separator_special_tag there were no such transaction costs incurred in the year ended december 31 , 2014. in addition , in the year ended december 31 , 2015 , we incurred costs of $ 1,468,991 for legal and accounting fees as we continue to implement our business plan . salary expense for non-research and development personnel was $ 944,561 for the year ended december 31 , 2015 , compared to $ 440,269 for the year ended december 31 , 2014 , representing a $ 504,292 increase between the comparable periods . this increase is primarily due to a higher salary in 2015 for the company 's chief operating officer and the addition of a chief financial officer in may 2015. we expect to incur further increases in salary expense for non-research and development personnel as we continue to implement our business plan . stock based compensation expense related to stock options granted was $ 485,859 for the year ended december 31 , 2015. no stock options were granted during the year ended december 31 , 2014. for the year ended december 31 , 2015 , we incurred compensation expense , half paid in common shares and half paid in cash , of $ 400,000 related to the three members of the board of directors and special advisor . there was no such expense for the year ended december 31 , 2014. other income ( expense ) interest charges for the year ended december 31 , 2015 was $ 3,503,301 , compared to $ 76,561 for the year ended december 31 , 2014. contemporaneous with the closing of the merger , the bridge note in the principal amount of $ 2,310,000 was converted into 2,310,000 shares of company common stock . on march 5 , 2015 , the mandatory conversion feature of the bridge note was amended to a set fixed conversion amount such that , upon conversion , the bridge note purchaser would receive one share of company common stock for each $ 1.00 of principal of the bridge note outstanding as of the date of the mandatory conversion . we evaluated the modification to the conversion rate as an inducement to convert the bridge note and concluded that it provided the purchaser of the bridge note an incremental value of $ 3,465,000 , which is included as interest expense on the consolidated statement of operations for year ended december 31 , 2015. we recorded interest expense of $ 38,301 on the bridge note during the year ended december 31 , 2015. other income for the year ended december 31 , 2015 was $ 376,255 , which primarily represents a gain recorded on the remeasurement of a derivative liability to $ 0 as of december 31 , 2015. the derivative was originally recorded during the quarter ended march 31 , 2015 and based on updated inputs to the valuation model used , we have determined that the derivative liability has no value at december 31 , 2015. changes in the fair value of the derivative are recognized in earnings in the current period . income tax our effective tax rate for the years ended december 31 , 2015 and 2014 was zero percent . our tax rate is affected primarily by state income taxes and changes in valuation allowance . - 76 - preparation of financial statements ; going concern our financial statements have been prepared in conformity with accounting principles generally accepted in the united states of america ( “ us gaap ” ) , which contemplates our continuation as a going concern . we have incurred losses and negative cash flows from operations since inception ( july 26 , 2013 ) and have an accumulated deficit of approximately $ 33,862,088 as of march 31 , 2017. we anticipate incurring additional losses until such time , if ever , that we can generate significant revenues from our products currently in development . our primary sources of liquidity to date have been the issuance of shares of our common stock , convertible promissory notes and contributed capital by our founders . substantial additional financing will be needed to fund our operations and to commercially develop our product candidates . there is no assurance that such financing will be available when needed or on acceptable terms . these factors raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued . the consolidated financial statements have been prepared on a going concern basis , which contemplates the realization of assets and satisfaction of liabilities in the normal course of business . the consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty . at march 31 , 2017 , we had cash and equivalents of $ 10,482,977 , and working capital and stockholders ' equity of $ 7,384,271 and $ 7,391,806 , respectively . liquidity and capital resources liquidity and capital requirements outlook we anticipate requiring additional capital in order to fund the development of our product candidates , as well as to engage in strategic transactions . the most significant funding needs are anticipated to be in connection with preparing for and conducting immediate phase ii clinical trials of our sm-88 drug candidate for prostate cancer and pancreatic cancer and additional or related studies and investigations . we are evaluating the expansion of our clinical program to other forms of cancer beyond those noted above . to meet our short and long-term liquidity needs , we currently expect to use existing cash balances and a variety of other means , including potential issuances of debt or equity securities in public or private financings , option exercises , and partnerships and or collaborations . the demand for the equity and debt of biopharmaceutical companies like ours is dependent upon many factors , including the general state
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2,650 | if we enter into contracts for the sale of services and software or hardware , management evaluates whether each element should be accounted for separately by considering the following criteria : ( 1 ) whether the deliverables have value to the client on a stand-alone basis ; and ( 2 ) whether delivery or performance of the undelivered item or items is considered probable and substantially in our control ( only if the arrangement includes a general right of return related to the delivered item ) . further , for sales of software and services , management also evaluates whether the services are essential to the functionality of the software and has fair value evidence for each deliverable . if management concludes that the separation criteria are met , then it accounts for each deliverable in the transaction separately , based on the relevant revenue recognition policies . generally , all deliverables of our multiple element arrangements meet these criteria and are accounted for separately , with the arrangement consideration allocated among the deliverables using vendor-specific objective evidence of the selling price . as a result , we generally recognize software and hardware sales upon delivery to the customer and services consistent with the policies described herein . further , delivery of software and hardware sales , when sold contemporaneously with services , can generally occur at varying times depending on the specific client project arrangement . delivery of services generally occurs over a period of time consistent with the timeline as outlined in the client contract . there are no significant cancellation or termination-type provisions for our software and hardware sales . contracts for professional services provide for a general right , to the client or us , to cancel or terminate the contract within a given period of time ( generally 10 to 30 days ' notice is required ) . the client is responsible for any time and expenses incurred up to the date of cancellation or termination of the contract . cost of revenues cost of revenues consists primarily of cash and non-cash compensation and benefits , including bonuses and non-cash compensation related to equity awards . cost of revenues also includes the costs associated with subcontractors . third-party software and hardware costs , reimbursable expenses and other unreimbursed project-related expenses are also included in cost of revenues . project-related expenses will fluctuate generally depending on outside factors including the cost and frequency of travel and the location of our clients . cost of revenues does not include depreciation of assets used in the production of revenues which are primarily personal computers , servers , and other information technology related equipment . gross margins our gross margins for services are affected by the utilization rates of our professionals ( defined as the percentage of our professionals ' time billed to clients divided by the total available hours in the respective period ) , the salaries we pay our professionals , and the average billing rate we receive from our clients . if a project ends earlier than scheduled , we retain professionals in advance of receiving project assignments , or if demand for our services declines , our utilization rate will decline and adversely affect our gross margins . gross margin percentages of third-party software and hardware sales are typically lower than gross margin percentages for services , and the mix of services and software and hardware for a particular period can significantly impact our total combined gross margin percentage for such period . in addition , gross margin for software and hardware sales can fluctuate due to pricing and other competitive pressures . 16 selling , general , and administrative expenses selling , general and administrative ( “ sg & a ” ) expenses are primarily composed of sales-related costs , general and administrative salaries , stock compensation expense , recruiting expense , office costs , bad debts , variable compensation costs , and other miscellaneous expenses . we work to minimize selling costs by focusing on repeat business with existing clients and by accessing sales leads generated by our software vendors , most notably ibm , oracle and microsoft , whose products we use to design and implement solutions for our clients . these relationships enable us to reduce our selling costs and sales cycle times and increase win rates through leveraging our partners ' marketing efforts and endorsements . plans for growth and acquisitions our goal is to continue to build one of the leading independent information technology consulting firms by expanding our relationships with existing and new clients and through the continuation of our disciplined acquisition strategy . our future growth plan includes expanding our business with a primary focus on customers in the united states , both organically and through acquisitions . given the economic conditions during 2008 and 2009 we suspended acquisition activity pending improved visibility into the health of the economy . with the return to growth in 2010 , we resumed our disciplined acquisition strategy as evidenced by our acquisitions of kerdock consulting , llc ( “ kerdock ” ) in march 2010 , speaktech in december 2010 , exervio in april 2011 , jcb partners , llc ( “ jcb ” ) in july 2011 , pointbridge in february 2012 , nascent in june 2012 , and northridge in july 2012. we also intend to further leverage our existing offshore capabilities to support our future growth and provide our clients flexible options for project delivery . when analyzing revenue growth by base business compared to acquired companies in the results of operations section below , revenue attributable to base business is defined as revenue from an acquired company that has been owned for a full four quarters after the date of acquisition . story_separator_special_tag 22 critical accounting policies our accounting policies are described in note 2 , summary of significant accounting policies , in the notes to consolidated financial statements . we believe our most critical accounting policies include revenue recognition , accounting for goodwill and intangible assets , purchase accounting , accounting for stock-based compensation , and income taxes . revenue recognition and allowance for doubtful accounts revenues are primarily derived from professional services provided on a time and materials basis . for time and material contracts , revenues are recognized and billed by multiplying the number of hours expended in the performance of the contract by the established billing rates . for fixed fee projects , revenues are generally recognized using an input method based on the ratio of hours expended to total estimated hours . amounts invoiced and collected in excess of revenues recognized are classified as deferred revenues . on many projects we are also reimbursed for out-of-pocket expenses such as airfare , lodging , and meals . these reimbursements are included as a component of revenues . revenues from software and hardware sales are generally recorded on a gross basis considering our role as a principal in the transaction . on rare occasions , we enter into a transaction where we are not the principal . in these cases , revenue is recorded on a net basis . unbilled revenues represent the project time and expenses that have been incurred , but not yet billed to the client , prior to the end of the fiscal period . for time and materials projects , the client is invoiced for the amount of hours worked multiplied by the billing rates as stated in the contract . for fixed fee arrangements , the client is invoiced according to the agreed-upon schedule detailing the amount and timing of payments in the contract . clients are typically billed monthly for services provided during that month , but can be billed on a more or less frequent basis as determined by the contract . if the time and expenses are worked/incurred and approved at the end of a fiscal period and the invoice has not yet been sent to the client , the amount is recorded as unbilled revenue once we verify all other revenue recognition criteria have been met . revenues are recognized when the following criteria are met : ( 1 ) persuasive evidence of the customer arrangement exists ; ( 2 ) fees are fixed and determinable ; ( 3 ) delivery and acceptance have occurred ; and ( 4 ) collectability is deemed probable . our policy for revenue recognition in instances where multiple deliverables are sold contemporaneously to the same customer is in accordance with accounting standards board accounting standards codification ( “ asc ” ) subtopic 985-605 , software – revenue recognition , asc subtopic 605-25 , revenue recognition – multiple-element arrangements , and asc section 605-10-s99 ( staff accounting bulletin topic 13 , revenue recognition ) . specifically , if we enter into contracts for the sale of services and software or hardware , then we evaluate whether each element should be accounted for separately by considering the following criteria : ( 1 ) whether the deliverables have value to the client on a stand-alone basis ; and ( 2 ) whether delivery or performance of the undelivered item or items is considered probable and substantially in our control ( only if the arrangement includes a general right of return related to the delivered item ) . further , for sales of software and services , we also evaluate whether the services are essential to the functionality of the software and we have fair value evidence for each deliverable . if we have concluded that the separation criteria are met , then we account for each deliverable in the transaction separately , based on the relevant revenue recognition policies . generally , all deliverables of our multiple element arrangements meet these criteria and are accounted for separately , with the arrangement consideration allocated among the deliverables using vendor-specific objective evidence of the selling price . as a result , we generally recognize software and hardware sales upon delivery to the customer and services consistent with the policies described herein . further , delivery of software and hardware sales , when sold contemporaneously with services , can generally occur at varying times depending on the specific client project arrangement . delivery of services generally occurs over a period of time consistent with the timeline as outlined in the client contract . there are no significant cancellation or termination-type provisions for our software and hardware sales . contracts for professional services provide for a general right , to the client or to us , to cancel or terminate the contract within a given period of time ( generally 10 to 30 days ' notice is required ) . the client is responsible for any time and expenses incurred up to the date of cancellation or termination of the contract . we may provide multiple services under the terms of an arrangement and we are required to assess whether one or more units of accounting are present . service fees are typically accounted for as one unit of accounting , as fair value evidence for individual tasks or milestones is not available . we follow the guidelines discussed above in determining revenues ; however , certain judgments and estimates are made and used to determine revenues recognized in any accounting period . if estimates are revised , material differences may result in the amount and timing of revenues recognized for a given period . revenues are presented net of taxes assessed by governmental authorities . sales taxes are generally collected and subsequently remitted on all software and hardware sales and certain services transactions as appropriate . 23 allowance for doubtful accounts is based upon specific identification of likely and probable losses . each accounting period , accounts receivable is evaluated
| net cash provided by operating activities net cash provided by operating activities for the year ended december 31 , 2012 was $ 39.2 million compared to $ 14.3 million and $ 18.7 million for the years ended december 31 , 2011 and 2010 , respectively . for the year ended december 31 , 2012 , the components of operating cash flows were net income of $ 16.1 million plus non-cash charges of $ 18.5 million and net working capital reductions of $ 4.6 million . the primary components of operating cash flows for the year ended december 31 , 2011 were net income of $ 10.7 million plus non-cash charges of $ 17.6 million , partially offset by investments in working capital of $ 14.0 million . the primary components of operating cash flow for the year ended december 31 , 2010 were net income of $ 6.5 million plus non-cash charges of $ 14.3 million , partially offset by investments in working capital of $ 2.1 million . the increase in cash resulting from operating activities as of december 31 , 2012 is primarily related to the increase in accounts payable and other liabilities and decrease in accounts receivable . accounts payable and other liabilities increased due to having higher accrued software costs and variable compensation liabilities during 2012. our days sales outstanding as of december 31 , 2012 decreased to 75 days compared to 78 and 73 days as of december 31 , 2011 and 2010 , 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 provided by operating activities net cash provided by operating activities for the year ended december 31 , 2012 was $ 39.2 million compared to $ 14.3 million and $ 18.7 million for the years ended december 31 , 2011 and 2010 , respectively . for the year ended december 31 , 2012 , the components of operating cash flows were net income of $ 16.1 million plus non-cash charges of $ 18.5 million and net working capital reductions of $ 4.6 million . the primary components of operating cash flows for the year ended december 31 , 2011 were net income of $ 10.7 million plus non-cash charges of $ 17.6 million , partially offset by investments in working capital of $ 14.0 million . the primary components of operating cash flow for the year ended december 31 , 2010 were net income of $ 6.5 million plus non-cash charges of $ 14.3 million , partially offset by investments in working capital of $ 2.1 million . the increase in cash resulting from operating activities as of december 31 , 2012 is primarily related to the increase in accounts payable and other liabilities and decrease in accounts receivable . accounts payable and other liabilities increased due to having higher accrued software costs and variable compensation liabilities during 2012. our days sales outstanding as of december 31 , 2012 decreased to 75 days compared to 78 and 73 days as of december 31 , 2011 and 2010 , respectively .
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Suspicious Activity Report : if we enter into contracts for the sale of services and software or hardware , management evaluates whether each element should be accounted for separately by considering the following criteria : ( 1 ) whether the deliverables have value to the client on a stand-alone basis ; and ( 2 ) whether delivery or performance of the undelivered item or items is considered probable and substantially in our control ( only if the arrangement includes a general right of return related to the delivered item ) . further , for sales of software and services , management also evaluates whether the services are essential to the functionality of the software and has fair value evidence for each deliverable . if management concludes that the separation criteria are met , then it accounts for each deliverable in the transaction separately , based on the relevant revenue recognition policies . generally , all deliverables of our multiple element arrangements meet these criteria and are accounted for separately , with the arrangement consideration allocated among the deliverables using vendor-specific objective evidence of the selling price . as a result , we generally recognize software and hardware sales upon delivery to the customer and services consistent with the policies described herein . further , delivery of software and hardware sales , when sold contemporaneously with services , can generally occur at varying times depending on the specific client project arrangement . delivery of services generally occurs over a period of time consistent with the timeline as outlined in the client contract . there are no significant cancellation or termination-type provisions for our software and hardware sales . contracts for professional services provide for a general right , to the client or us , to cancel or terminate the contract within a given period of time ( generally 10 to 30 days ' notice is required ) . the client is responsible for any time and expenses incurred up to the date of cancellation or termination of the contract . cost of revenues cost of revenues consists primarily of cash and non-cash compensation and benefits , including bonuses and non-cash compensation related to equity awards . cost of revenues also includes the costs associated with subcontractors . third-party software and hardware costs , reimbursable expenses and other unreimbursed project-related expenses are also included in cost of revenues . project-related expenses will fluctuate generally depending on outside factors including the cost and frequency of travel and the location of our clients . cost of revenues does not include depreciation of assets used in the production of revenues which are primarily personal computers , servers , and other information technology related equipment . gross margins our gross margins for services are affected by the utilization rates of our professionals ( defined as the percentage of our professionals ' time billed to clients divided by the total available hours in the respective period ) , the salaries we pay our professionals , and the average billing rate we receive from our clients . if a project ends earlier than scheduled , we retain professionals in advance of receiving project assignments , or if demand for our services declines , our utilization rate will decline and adversely affect our gross margins . gross margin percentages of third-party software and hardware sales are typically lower than gross margin percentages for services , and the mix of services and software and hardware for a particular period can significantly impact our total combined gross margin percentage for such period . in addition , gross margin for software and hardware sales can fluctuate due to pricing and other competitive pressures . 16 selling , general , and administrative expenses selling , general and administrative ( “ sg & a ” ) expenses are primarily composed of sales-related costs , general and administrative salaries , stock compensation expense , recruiting expense , office costs , bad debts , variable compensation costs , and other miscellaneous expenses . we work to minimize selling costs by focusing on repeat business with existing clients and by accessing sales leads generated by our software vendors , most notably ibm , oracle and microsoft , whose products we use to design and implement solutions for our clients . these relationships enable us to reduce our selling costs and sales cycle times and increase win rates through leveraging our partners ' marketing efforts and endorsements . plans for growth and acquisitions our goal is to continue to build one of the leading independent information technology consulting firms by expanding our relationships with existing and new clients and through the continuation of our disciplined acquisition strategy . our future growth plan includes expanding our business with a primary focus on customers in the united states , both organically and through acquisitions . given the economic conditions during 2008 and 2009 we suspended acquisition activity pending improved visibility into the health of the economy . with the return to growth in 2010 , we resumed our disciplined acquisition strategy as evidenced by our acquisitions of kerdock consulting , llc ( “ kerdock ” ) in march 2010 , speaktech in december 2010 , exervio in april 2011 , jcb partners , llc ( “ jcb ” ) in july 2011 , pointbridge in february 2012 , nascent in june 2012 , and northridge in july 2012. we also intend to further leverage our existing offshore capabilities to support our future growth and provide our clients flexible options for project delivery . when analyzing revenue growth by base business compared to acquired companies in the results of operations section below , revenue attributable to base business is defined as revenue from an acquired company that has been owned for a full four quarters after the date of acquisition . story_separator_special_tag 22 critical accounting policies our accounting policies are described in note 2 , summary of significant accounting policies , in the notes to consolidated financial statements . we believe our most critical accounting policies include revenue recognition , accounting for goodwill and intangible assets , purchase accounting , accounting for stock-based compensation , and income taxes . revenue recognition and allowance for doubtful accounts revenues are primarily derived from professional services provided on a time and materials basis . for time and material contracts , revenues are recognized and billed by multiplying the number of hours expended in the performance of the contract by the established billing rates . for fixed fee projects , revenues are generally recognized using an input method based on the ratio of hours expended to total estimated hours . amounts invoiced and collected in excess of revenues recognized are classified as deferred revenues . on many projects we are also reimbursed for out-of-pocket expenses such as airfare , lodging , and meals . these reimbursements are included as a component of revenues . revenues from software and hardware sales are generally recorded on a gross basis considering our role as a principal in the transaction . on rare occasions , we enter into a transaction where we are not the principal . in these cases , revenue is recorded on a net basis . unbilled revenues represent the project time and expenses that have been incurred , but not yet billed to the client , prior to the end of the fiscal period . for time and materials projects , the client is invoiced for the amount of hours worked multiplied by the billing rates as stated in the contract . for fixed fee arrangements , the client is invoiced according to the agreed-upon schedule detailing the amount and timing of payments in the contract . clients are typically billed monthly for services provided during that month , but can be billed on a more or less frequent basis as determined by the contract . if the time and expenses are worked/incurred and approved at the end of a fiscal period and the invoice has not yet been sent to the client , the amount is recorded as unbilled revenue once we verify all other revenue recognition criteria have been met . revenues are recognized when the following criteria are met : ( 1 ) persuasive evidence of the customer arrangement exists ; ( 2 ) fees are fixed and determinable ; ( 3 ) delivery and acceptance have occurred ; and ( 4 ) collectability is deemed probable . our policy for revenue recognition in instances where multiple deliverables are sold contemporaneously to the same customer is in accordance with accounting standards board accounting standards codification ( “ asc ” ) subtopic 985-605 , software – revenue recognition , asc subtopic 605-25 , revenue recognition – multiple-element arrangements , and asc section 605-10-s99 ( staff accounting bulletin topic 13 , revenue recognition ) . specifically , if we enter into contracts for the sale of services and software or hardware , then we evaluate whether each element should be accounted for separately by considering the following criteria : ( 1 ) whether the deliverables have value to the client on a stand-alone basis ; and ( 2 ) whether delivery or performance of the undelivered item or items is considered probable and substantially in our control ( only if the arrangement includes a general right of return related to the delivered item ) . further , for sales of software and services , we also evaluate whether the services are essential to the functionality of the software and we have fair value evidence for each deliverable . if we have concluded that the separation criteria are met , then we account for each deliverable in the transaction separately , based on the relevant revenue recognition policies . generally , all deliverables of our multiple element arrangements meet these criteria and are accounted for separately , with the arrangement consideration allocated among the deliverables using vendor-specific objective evidence of the selling price . as a result , we generally recognize software and hardware sales upon delivery to the customer and services consistent with the policies described herein . further , delivery of software and hardware sales , when sold contemporaneously with services , can generally occur at varying times depending on the specific client project arrangement . delivery of services generally occurs over a period of time consistent with the timeline as outlined in the client contract . there are no significant cancellation or termination-type provisions for our software and hardware sales . contracts for professional services provide for a general right , to the client or to us , to cancel or terminate the contract within a given period of time ( generally 10 to 30 days ' notice is required ) . the client is responsible for any time and expenses incurred up to the date of cancellation or termination of the contract . we may provide multiple services under the terms of an arrangement and we are required to assess whether one or more units of accounting are present . service fees are typically accounted for as one unit of accounting , as fair value evidence for individual tasks or milestones is not available . we follow the guidelines discussed above in determining revenues ; however , certain judgments and estimates are made and used to determine revenues recognized in any accounting period . if estimates are revised , material differences may result in the amount and timing of revenues recognized for a given period . revenues are presented net of taxes assessed by governmental authorities . sales taxes are generally collected and subsequently remitted on all software and hardware sales and certain services transactions as appropriate . 23 allowance for doubtful accounts is based upon specific identification of likely and probable losses . each accounting period , accounts receivable is evaluated
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2,651 | our deep water port facilities on both the east and west coasts of the u.s. ( in everett , massachusetts ; providence , rhode island ; oakland , california ; portland , oregon ; and tacoma , washington ) and access to public deep water port facilities ( in kapolei , hawaii ; and salinas , puerto rico ) allow us to efficiently meet the global demand for recycled ferrous metal by shipping bulk cargoes to steel manufacturers located in europe , africa , the middle east , asia , and north , central and south america . our exports of nonferrous recycled metal are shipped in containers through various public docks to specialty steelmakers , foundries , aluminum sheet and ingot manufacturers , copper refineries and smelters , brass and bronze ingot manufacturers and wire and cable producers globally . we also transport both ferrous and nonferrous metals by truck , rail and barge in order to transfer scrap metal between our facilities for further processing , to load shipments at our export facilities and to meet regional domestic demand . 27 / schnitzer steel industries , inc. form 10-k 2016 schnitzer steel industries , inc. prior to the fourth quarter of fiscal 2015 , our internal organizational and reporting structure supported three operating and reportable segments : the metals recycling business ( `` mrb `` ) , the auto parts business ( `` apb `` ) and smb . in the fourth quarter of fiscal 2015 , we combined and integrated our auto parts and metals recycling businesses into a single operating platform . this change in organizational structure further optimized the efficiencies in our operating platform , enabling additional synergies to be captured throughout our supply chain and global sales channels and more effectively leveraging our shared services platform . the change in our internal organizational and reporting structure resulted in the formation of a new operating and reportable segment , amr , replacing the former mrb and apb operating segments . we began reporting on this new segment in the fourth quarter of fiscal 2015 as reflected in our annual report on form 10-k for the year ended august 31 , 2015. the segment data for the comparable periods presented prior to the segment change has been recast to conform to the current presentation for all activities of amr . recasting this historical information did not have an impact on the consolidated financial performance of ssi for any of the periods presented . strategic priorities as we continue to closely monitor economic conditions , we remain focused on the following core strategies to meet our business objectives : use of our seven deep water ports and ground-based logistics network to directly access customers domestically and internationally to meet demand for our products wherever it is greatest ; further optimization of our integrated operating platform to maximize opportunities for synergies , cost efficiencies and volumes ; continuous improvement initiatives to increase production efficiency , improve productivity , enhance effectiveness in our commercial activities and reduce operating expense ; technology and process improvement investments to increase the separation and recovery of recycled materials from our shredding process and to generate more value-added products ; and increase market share through initiatives to maximize volumes and through selective partnerships , alliances and acquisitions . our auto parts stores are key suppliers to our metal recycling facilities , and we opportunistically look to enhance the geographic proximity of operations among those facilities . amr has an integrated presence in the northwestern u.s. , in northern california and in the northeastern u.s. , near amr 's export facilities in tacoma , washington , portland , oregon , oakland , california and everett , massachusetts , which benefit from the synergies of this enhanced access to supply . in fiscal 2015 , we initiated and implemented restructuring initiatives consisting of idling underutilized metals recycling assets , including a shredder in johnston , rhode island and another shredder in surrey , british columbia , and closing seven auto parts stores at amr to more closely align our business to market conditions . additional cost saving and productivity improvement initiatives , including additional reductions in personnel , savings from procurement activities , streamlining of administrative and supporting services functions , and adjustments to our operating capacity through additional facility closures , were identified and initiated in fiscal 2016. facility closures in fiscal 2016 included a shredding facility in concord , new hampshire . six of the auto parts stores closed in fiscal 2015 qualified for discontinued operations reporting beginning in fiscal 2015. see note 8 - discontinued operations and note 10 - restructuring charges and other exit-related activities in the notes to the consolidated financial statements in part ii , item 8 of this report . key economic factors and trends affecting the industries in which we operate we sell recycled metals to the global steel industry for the production of finished steel . our financial results largely depend on supply of raw materials in the u.s. and western canada and demand for recycled metal in foreign and domestic markets and for finished steel products in the western u.s. and western canada . global economic conditions , changes in supply and demand conditions and the strength of the u.s. dollar affect market prices for and sales volumes of recycled ferrous and nonferrous metal in global markets and steel products in the western u.s. and western canada and can have a significant impact on the results of operations for our reportable segments . weak global demand fueled by the overproduction of low-priced billets using blast furnace technology and iron ore as the primary raw material , the limited availability of scrap metal raw materials , and the strong u.s. dollar contribute to lower sales volumes for recycled metals . story_separator_special_tag impairment charges and accelerated depreciation , excluding goodwill impairment charges , were as follows ( in thousands ) : replace_table_token_10_th ( 1 ) other asset impairment charges were incurred in the amr reportable segment , except for $ 79 thousand , $ 745 thousand and $ 532 thousand of impairment charges on other assets related to corporate recorded in fiscal 2016 , 2015 and 2014 , respectively , and $ 2,224 thousand of impairment charges on supplies inventory related to smb recorded in fiscal 2016. consolidated operating results in fiscal 2016 also included restructuring charges and other exit-related activities of $ 7 million , compared to charges of $ 13 million in fiscal 2015 . additional restructuring charges and other exit-related activities of $ 1 million were included in the results of discontinued operations in fiscal 2016 , compared to charges of $ 4 million for fiscal 2015. restructuring charges consisted of severance , contract termination and other restructuring costs . other exit-related activities of $ 2 million in fiscal 2016 consisted of asset impairments and accelerated depreciation of assets in connection with the closure of certain operations , net of gains on exit-related disposals , compared to other exit-related activities of $ 7 million for fiscal 2015. these charges relate to restructuring initiatives under three separate plans : the plans announced in the first quarter of fiscal 2014 ( the “ q1'14 plan `` ) , the “ q1'15 plan ” and the `` q2'15 plan . `` in the first quarter of fiscal 2014 , we initiated the q1'14 plan and began implementing restructuring and productivity initiatives to reduce our annual operating expenses by approximately $ 30 million , which was subsequently increased to $ 40 million later in the fiscal year . we achieved approximately $ 29 million of benefits in fiscal 2014 , with the full annual benefit achieved in fiscal 2015. the majority of the reduction in operating expenses occurred at amr and resulted from a combination of headcount reductions , implementation of operational efficiencies , reduced lease costs and other productivity improvements . since the beginning of fiscal 2015 , we have initiated and implemented a number of additional cost reduction and productivity improvement measures with a combined targeted annual improvement of $ 95 million . these initiatives included those announced as part of the q1'15 plan followed by further cost-saving and exit-related measures as part of the q2'15 plan targeting a combined benefit to annual operating performance of approximately $ 60 million , subsequently increased by $ 5 million in the first quarter of fiscal 2016. in the second quarter of fiscal 2016 , we expanded the q2'15 plan initiatives by an additional $ 30 million . 33 / schnitzer steel industries , inc. form 10-k 2016 schnitzer steel industries , inc. the cost reduction and productivity improvements associated with the q1'15 plan are driven by a combination of revenue drivers and production and sg & a cost reduction initiatives with a targeted aggregate annual improvement of $ 14 million , which was achieved in fiscal 2016. the improvements to performance associated with the q2'15 plan include two components . the first component reflects strategic actions initiated in the second quarter of fiscal 2015 consisting of idling shredding equipment and closing seven auto parts stores at amr to align our business to market conditions , targeting an improvement in annual operating performance of approximately $ 18 million , of which approximately one-third is from reduced depreciation expense . as part of the second component of the q2'15 plan , in april 2015 , we initiated measures , and also announced the integration of the mrb and apb businesses into the combined amr platform , in order to achieve operational synergies and further reduce our annual operating expenses , primarily sg & a expense , by approximately $ 28 million through personnel reductions , reducing organizational layers , consolidating shared service functions and reducing other administrative costs . we expanded the q2'15 plan and target by initiating measures in fiscal 2016 with an additional $ 35 million in expected benefits primarily through additional reductions in personnel , savings from procurement activities , streamlining of administrative and supporting services functions , and adjustments to our operating capacity through additional facility closures , with approximately two-thirds of the target coming from a reduction in sg & a expense and the rest from a reduction in production costs , primarily at amr . collectively , the initiatives commenced in the second quarter of fiscal 2015 and expanded in subsequent quarters including the initiatives commenced in fiscal 2016 are referred to as the q2'15 plan . in fiscal 2016 , we achieved approximat ely $ 78 million of combined benefits related to the q1'15 and q2'15 plans , compared to $ 28 million in fiscal 2015. we expect to achieve substantially all of the combined annual improvement target of $ 95 million associated with the q1'15 and q2'15 plans in fiscal 2017. restructuring charges and other exit-related activities incurred in connection with cost reduction and productivity improvement plans for the last three fiscal years ended august 31 were comprised of the following ( in thousands ) : replace_table_token_11_th we do not include restructuring charges and other exit-related activities in the measurement of the performance of our reportable segments . the significant majority of restructuring charges require us to make cash payments . see note 10 - restructuring charges and other exit-related activities in the notes to the consolidated financial statements in part ii , item 8 of this report . 34 / schnitzer steel industries , inc. form 10-k 2016 schnitzer steel industries , inc. fiscal 2015 compared with fiscal 2014 consolidated operating loss was $ 196 million in fiscal 2015 , compared to consolidated operating income of $ 24 million in the prior year . adjusted consolidated operating income in fiscal 2015 was $ 11 million , which excludes a goodwill impairment charge of $ 141 million
| sources and uses of cash we had cash balances of $ 27 million and $ 23 million as of august 31 , 2016 and 2015 , respectively . cash balances are intended to be used primarily for working capital , capital expenditures , acquisitions , dividends and share repurchases . we also use excess cash on hand to reduce amounts outstanding under our credit facilities . as of august 31 , 2016 , debt was $ 193 million , compared to $ 228 million as of august 31 , 2015 , and debt , net of cash , was $ 166 million compared to $ 205 million ( refer to non-gaap financial measures below ) , a decrease of $ 40 million primarily as a result of the positive cash flows generated by operating activities . our cash balances as of august 31 , 2016 and 2015 include $ 7 million and $ 5 million , respectively , which are indefinitely reinvested in puerto rico and canada . operating activities net cash provided by operating activities in fiscal 2016 was $ 99 million , compared to $ 145 million in fiscal 2015 and $ 141 million in fiscal 2014 . net cash provided by operating activities in fiscal 2016 primarily benefited from improved operating performance 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.
```sources and uses of cash we had cash balances of $ 27 million and $ 23 million as of august 31 , 2016 and 2015 , respectively . cash balances are intended to be used primarily for working capital , capital expenditures , acquisitions , dividends and share repurchases . we also use excess cash on hand to reduce amounts outstanding under our credit facilities . as of august 31 , 2016 , debt was $ 193 million , compared to $ 228 million as of august 31 , 2015 , and debt , net of cash , was $ 166 million compared to $ 205 million ( refer to non-gaap financial measures below ) , a decrease of $ 40 million primarily as a result of the positive cash flows generated by operating activities . our cash balances as of august 31 , 2016 and 2015 include $ 7 million and $ 5 million , respectively , which are indefinitely reinvested in puerto rico and canada . operating activities net cash provided by operating activities in fiscal 2016 was $ 99 million , compared to $ 145 million in fiscal 2015 and $ 141 million in fiscal 2014 . net cash provided by operating activities in fiscal 2016 primarily benefited from improved operating performance compared to the prior year .
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Suspicious Activity Report : our deep water port facilities on both the east and west coasts of the u.s. ( in everett , massachusetts ; providence , rhode island ; oakland , california ; portland , oregon ; and tacoma , washington ) and access to public deep water port facilities ( in kapolei , hawaii ; and salinas , puerto rico ) allow us to efficiently meet the global demand for recycled ferrous metal by shipping bulk cargoes to steel manufacturers located in europe , africa , the middle east , asia , and north , central and south america . our exports of nonferrous recycled metal are shipped in containers through various public docks to specialty steelmakers , foundries , aluminum sheet and ingot manufacturers , copper refineries and smelters , brass and bronze ingot manufacturers and wire and cable producers globally . we also transport both ferrous and nonferrous metals by truck , rail and barge in order to transfer scrap metal between our facilities for further processing , to load shipments at our export facilities and to meet regional domestic demand . 27 / schnitzer steel industries , inc. form 10-k 2016 schnitzer steel industries , inc. prior to the fourth quarter of fiscal 2015 , our internal organizational and reporting structure supported three operating and reportable segments : the metals recycling business ( `` mrb `` ) , the auto parts business ( `` apb `` ) and smb . in the fourth quarter of fiscal 2015 , we combined and integrated our auto parts and metals recycling businesses into a single operating platform . this change in organizational structure further optimized the efficiencies in our operating platform , enabling additional synergies to be captured throughout our supply chain and global sales channels and more effectively leveraging our shared services platform . the change in our internal organizational and reporting structure resulted in the formation of a new operating and reportable segment , amr , replacing the former mrb and apb operating segments . we began reporting on this new segment in the fourth quarter of fiscal 2015 as reflected in our annual report on form 10-k for the year ended august 31 , 2015. the segment data for the comparable periods presented prior to the segment change has been recast to conform to the current presentation for all activities of amr . recasting this historical information did not have an impact on the consolidated financial performance of ssi for any of the periods presented . strategic priorities as we continue to closely monitor economic conditions , we remain focused on the following core strategies to meet our business objectives : use of our seven deep water ports and ground-based logistics network to directly access customers domestically and internationally to meet demand for our products wherever it is greatest ; further optimization of our integrated operating platform to maximize opportunities for synergies , cost efficiencies and volumes ; continuous improvement initiatives to increase production efficiency , improve productivity , enhance effectiveness in our commercial activities and reduce operating expense ; technology and process improvement investments to increase the separation and recovery of recycled materials from our shredding process and to generate more value-added products ; and increase market share through initiatives to maximize volumes and through selective partnerships , alliances and acquisitions . our auto parts stores are key suppliers to our metal recycling facilities , and we opportunistically look to enhance the geographic proximity of operations among those facilities . amr has an integrated presence in the northwestern u.s. , in northern california and in the northeastern u.s. , near amr 's export facilities in tacoma , washington , portland , oregon , oakland , california and everett , massachusetts , which benefit from the synergies of this enhanced access to supply . in fiscal 2015 , we initiated and implemented restructuring initiatives consisting of idling underutilized metals recycling assets , including a shredder in johnston , rhode island and another shredder in surrey , british columbia , and closing seven auto parts stores at amr to more closely align our business to market conditions . additional cost saving and productivity improvement initiatives , including additional reductions in personnel , savings from procurement activities , streamlining of administrative and supporting services functions , and adjustments to our operating capacity through additional facility closures , were identified and initiated in fiscal 2016. facility closures in fiscal 2016 included a shredding facility in concord , new hampshire . six of the auto parts stores closed in fiscal 2015 qualified for discontinued operations reporting beginning in fiscal 2015. see note 8 - discontinued operations and note 10 - restructuring charges and other exit-related activities in the notes to the consolidated financial statements in part ii , item 8 of this report . key economic factors and trends affecting the industries in which we operate we sell recycled metals to the global steel industry for the production of finished steel . our financial results largely depend on supply of raw materials in the u.s. and western canada and demand for recycled metal in foreign and domestic markets and for finished steel products in the western u.s. and western canada . global economic conditions , changes in supply and demand conditions and the strength of the u.s. dollar affect market prices for and sales volumes of recycled ferrous and nonferrous metal in global markets and steel products in the western u.s. and western canada and can have a significant impact on the results of operations for our reportable segments . weak global demand fueled by the overproduction of low-priced billets using blast furnace technology and iron ore as the primary raw material , the limited availability of scrap metal raw materials , and the strong u.s. dollar contribute to lower sales volumes for recycled metals . story_separator_special_tag impairment charges and accelerated depreciation , excluding goodwill impairment charges , were as follows ( in thousands ) : replace_table_token_10_th ( 1 ) other asset impairment charges were incurred in the amr reportable segment , except for $ 79 thousand , $ 745 thousand and $ 532 thousand of impairment charges on other assets related to corporate recorded in fiscal 2016 , 2015 and 2014 , respectively , and $ 2,224 thousand of impairment charges on supplies inventory related to smb recorded in fiscal 2016. consolidated operating results in fiscal 2016 also included restructuring charges and other exit-related activities of $ 7 million , compared to charges of $ 13 million in fiscal 2015 . additional restructuring charges and other exit-related activities of $ 1 million were included in the results of discontinued operations in fiscal 2016 , compared to charges of $ 4 million for fiscal 2015. restructuring charges consisted of severance , contract termination and other restructuring costs . other exit-related activities of $ 2 million in fiscal 2016 consisted of asset impairments and accelerated depreciation of assets in connection with the closure of certain operations , net of gains on exit-related disposals , compared to other exit-related activities of $ 7 million for fiscal 2015. these charges relate to restructuring initiatives under three separate plans : the plans announced in the first quarter of fiscal 2014 ( the “ q1'14 plan `` ) , the “ q1'15 plan ” and the `` q2'15 plan . `` in the first quarter of fiscal 2014 , we initiated the q1'14 plan and began implementing restructuring and productivity initiatives to reduce our annual operating expenses by approximately $ 30 million , which was subsequently increased to $ 40 million later in the fiscal year . we achieved approximately $ 29 million of benefits in fiscal 2014 , with the full annual benefit achieved in fiscal 2015. the majority of the reduction in operating expenses occurred at amr and resulted from a combination of headcount reductions , implementation of operational efficiencies , reduced lease costs and other productivity improvements . since the beginning of fiscal 2015 , we have initiated and implemented a number of additional cost reduction and productivity improvement measures with a combined targeted annual improvement of $ 95 million . these initiatives included those announced as part of the q1'15 plan followed by further cost-saving and exit-related measures as part of the q2'15 plan targeting a combined benefit to annual operating performance of approximately $ 60 million , subsequently increased by $ 5 million in the first quarter of fiscal 2016. in the second quarter of fiscal 2016 , we expanded the q2'15 plan initiatives by an additional $ 30 million . 33 / schnitzer steel industries , inc. form 10-k 2016 schnitzer steel industries , inc. the cost reduction and productivity improvements associated with the q1'15 plan are driven by a combination of revenue drivers and production and sg & a cost reduction initiatives with a targeted aggregate annual improvement of $ 14 million , which was achieved in fiscal 2016. the improvements to performance associated with the q2'15 plan include two components . the first component reflects strategic actions initiated in the second quarter of fiscal 2015 consisting of idling shredding equipment and closing seven auto parts stores at amr to align our business to market conditions , targeting an improvement in annual operating performance of approximately $ 18 million , of which approximately one-third is from reduced depreciation expense . as part of the second component of the q2'15 plan , in april 2015 , we initiated measures , and also announced the integration of the mrb and apb businesses into the combined amr platform , in order to achieve operational synergies and further reduce our annual operating expenses , primarily sg & a expense , by approximately $ 28 million through personnel reductions , reducing organizational layers , consolidating shared service functions and reducing other administrative costs . we expanded the q2'15 plan and target by initiating measures in fiscal 2016 with an additional $ 35 million in expected benefits primarily through additional reductions in personnel , savings from procurement activities , streamlining of administrative and supporting services functions , and adjustments to our operating capacity through additional facility closures , with approximately two-thirds of the target coming from a reduction in sg & a expense and the rest from a reduction in production costs , primarily at amr . collectively , the initiatives commenced in the second quarter of fiscal 2015 and expanded in subsequent quarters including the initiatives commenced in fiscal 2016 are referred to as the q2'15 plan . in fiscal 2016 , we achieved approximat ely $ 78 million of combined benefits related to the q1'15 and q2'15 plans , compared to $ 28 million in fiscal 2015. we expect to achieve substantially all of the combined annual improvement target of $ 95 million associated with the q1'15 and q2'15 plans in fiscal 2017. restructuring charges and other exit-related activities incurred in connection with cost reduction and productivity improvement plans for the last three fiscal years ended august 31 were comprised of the following ( in thousands ) : replace_table_token_11_th we do not include restructuring charges and other exit-related activities in the measurement of the performance of our reportable segments . the significant majority of restructuring charges require us to make cash payments . see note 10 - restructuring charges and other exit-related activities in the notes to the consolidated financial statements in part ii , item 8 of this report . 34 / schnitzer steel industries , inc. form 10-k 2016 schnitzer steel industries , inc. fiscal 2015 compared with fiscal 2014 consolidated operating loss was $ 196 million in fiscal 2015 , compared to consolidated operating income of $ 24 million in the prior year . adjusted consolidated operating income in fiscal 2015 was $ 11 million , which excludes a goodwill impairment charge of $ 141 million
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2,652 | through this collaboration , we seek to understand how the therapeutic effect of immune checkpoint inhibitors , such as antibodies to ctla-4 and pd-1 , are modulated by blocking translocation of certain metabolites and bacterial antigens and toxins from interacting with the host immune system in pre-clinical oncology models . building on previous research that showed a type of permeability known as “ leaky gut ” that may cause microbial translocation of toxic products into circulation of the bloodstream , we are expanding our work in liver disease . initial in vitro data suggests the potential use of larazotide in alcoholic liver diseases . we entered into a research collaboration with massachusetts general hospital to explore larazotide in animal models for the treatment of ash . monster merger on january 29 , 2018 , monster and private innovate completed a reverse recapitalization in accordance with the terms of the monster merger agreement . in connection with the transaction , private innovate changed its name to ib pharmaceuticals inc. pursuant to the monster merger agreement , monster merger sub merged with and into ib pharmaceuticals with ib pharmaceuticals surviving as the wholly owned subsidiary of monster . immediately following the monster merger , monster changed its name to innovate biopharmaceuticals , inc. on march 29 , 2018 , ib pharmaceuticals was merged into innovate and ceased to exist . the monster merger is further described in “ note 1—summary of significant accounting policies ” and “ note 3—monster merger and financing ” to the accompanying financial statements included in this annual report on form 10-k. agreement and plan of merger and reorganization with rdd pharma , ltd. on october 6 , 2019 , we entered into the rdd merger agreement , pursuant to which we agreed to acquire all of the outstanding capital stock of privately-held rdd , an israel corporation , in exchange for a combination of common and preferred shares to be issued by us . the rdd merger will include a concurrent capital raise led by orbimed advisors llc , with a minimum funding requirement of $ 10 million . we are targeting completion of the rdd merger and rdd merger financing near the end of the first quarter of 2020. upon closing of the rdd merger , on an as-converted , fully diluted basis , our current stockholders will own approximately 62 % of the combined company 's capital stock and the current rdd stockholders will own approximately 38 % of the combined company 's capital stock . the final ownership percentages are subject to dilution based on the final amount of capital invested in the rdd merger financing , which will dilute both the current innovate stockholders and current rdd stockholders on a pro rata basis . we intend to use the proceeds from the rdd merger financing to advance our phase 3 clinical trial for the treatment of celiac disease as well as for progression of rdd 's current pipeline . subject to and concurrently with the closing of the rdd merger , the board will appoint john temperato , the chief executive officer of rdd , as chief executive officer of the combined company , 9 meters biopharma , inc. financial overview since our inception , we have focused our efforts and resources on identifying and developing our research and development programs . we have not had any products approved for commercial sale and have incurred operating losses in each year since inception . substantially all of our operating losses resulted from expenses incurred in connection with our research and 72 development programs and from general and administrative costs associated with our operations . as of december 31 , 2019 , we had an accumulated deficit of $ 70.6 million . we incurred net losses of $ 27.0 million and $ 24.2 million for the years ended december 31 , 2019 and 2018 , respectively . we expect to continue to incur significant expenses and increase our operating losses for the foreseeable future , which may fluctuate significantly between periods . we anticipate that our expenses will increase substantially as and to the extent we : continue research and development , including preclinical and clinical development of our existing and future product candidates , including inn-202 ; complete integration of operations and personnel associated with the proposed rdd merger ; potentially seek regulatory approval for our product candidates ; commercialize any product candidates for which we obtain regulatory approval ; maintain and protect our intellectual property rights ; add operational , financial and management information systems and personnel ; and continue to incur additional legal , accounting , regulatory , tax-related and other expenses required to operate as a public company . as such , we will need substantial additional funding to support our operating activities . adequate funding may not be available to us on acceptable terms , or at all . we currently anticipate that we will seek to fund our operations through equity or debt financings , strategic alliances or licensing arrangements , or other sources of financing . our failure to obtain sufficient funds on acceptable terms could have a material adverse effect on our business , results of operations and financial condition . other recent developments in june 2019 , we expanded our senior management team by appointing edward j. sitar as our chief financial officer . mr. sitar has extensive experience in finance and the life sciences industry . mr. sitar is responsible for developing and implementing our financial strategy and growth plans . in february 2019 , we strengthened our clinical development team by appointing patrick griffin , m.d . , f.a.c.p . as our chief medical officer . dr. griffin has several decades of clinical development experience in gastroenterology , autoimmune and metabolic diseases and has overseen multiple phase 3 clinical trials . story_separator_special_tag there are no further amounts outstanding under the senior convertible note and the senior convertible note has been canceled . amortization of the debt discount for the note and senior convertible note totaled approximately $ 2.5 million for the year ended december 31 , 2018 and is recorded as interest expense in the accompanying statements of operations and comprehensive loss . there was no such expense related to the note and senior convertible note during the year ended december 31 , 2019. unsecured convertible promissory note on march 8 , 2019 , we entered into a securities purchase agreement pursuant to which we issued an unsecured convertible promissory note , or the unsecured convertible note , in the principal amount of $ 5.5 million . the holder of the unsecured 77 convertible note , or the convertible noteholder , may elect to convert all or a portion of the unsecured convertible note at any time and from time to time into our common stock at a conversion price of $ 3.25 per share , subject to adjustment for stock splits , dividends , combinations and similar events . we may prepay all or a portion of the unsecured convertible note at any time for an amount equal to 115 % of then outstanding obligations or the portion of the obligations we are prepaying . the purchase price of the unsecured convertible note was $ 5.0 million and the unsecured convertible note carries an original issuance discount of $ 0.5 million , which is included in the principal amount of the unsecured convertible note . in addition , we agreed to pay $ 20,000 of transaction expenses , which were netted out of the purchase price of the unsecured convertible note . we also incurred additional transaction costs of approximately $ 37,000 , which were recorded as debt issuance costs . as a result of the redemption features of the unsecured convertible note , further described in “ note 6—debt , ” we are amortizing the debt issuance costs and accreting the oid to interest expense over the estimated redemption period of 15 months , using the effective interest method . the various conversion and redemption features contained in the unsecured convertible note are embedded derivative instruments , which were recorded as a debt discount and derivative liability at the issuance date at their estimated fair value of $ 1.3 million . amortization of debt discount and accretion of the oid for the unsecured convertible note recorded as interest expense was approximately $ 1.1 million for the year ended december 31 , 2019. the unsecured convertible note bears interest at the rate of 10 % ( which will increase to 18 % upon and during the continuance of an event of default ) per annum , compounding on a daily basis . all principal and accrued interest on the unsecured convertible note is due on the second-year anniversary of the unsecured convertible note 's issuance . during the year ended december 31 , 2019 , we made principal payments of $ 1.5 million under the unsecured convertible note . at any time after the six-month anniversary of the issuance of the unsecured convertible note , ( i ) if the average volume weighted average price over 20 trading dates exceeds $ 10.00 per share , we may generally require that the unsecured convertible note convert into shares of our common stock at the $ 3.25 ( as adjusted ) conversion price , and ( ii ) the convertible noteholder may elect to require all or a portion of the unsecured convertible note be redeemed by us . if the convertible noteholder requires a redemption , we , at our discretion , may pay the redeemed portion of the unsecured convertible note in cash or in our common stock at a conversion rate equal to the lesser of ( i ) the $ 3.25 ( as adjusted ) conversion rate or ( ii ) 80 % of the average of the five lowest volume weighted-average prices of our common stock over the preceding 20 trading days . the convertible noteholder may not redeem more than $ 500,000 per calendar month during the period between the six-month anniversary of the date of issuance until the first-year anniversary of the date of issuance and $ 750,000 per calendar month thereafter . our obligation or right to deliver our shares upon the conversion or redemption of the unsecured convertible note is subject to a 19.99 % cap and subject to a floor price trading price of $ 3.25 ( unless waived by us ) . any amounts elected to be redeemed once the cap is reached or if the market price is less than the $ 3.25 floor price must be paid in cash . in addition , we will be required to pay in cash any amounts elected to be redeemed by the noteholder if any of the following conditions are not satisfied as of the date the noteholder delivers a notice of redemption : ( i ) all conversion shares are freely tradable under rule 144 of the securities act without the need for registration under applicable federal and state securities laws ( without regard to any limitation on conversion of the notes ) , ( ii ) no event of default ( as defined in the applicable note ) has occurred and is continuing , ( iii ) the average and median daily dollar volume of our common stock for the prior 20 and 200 trading days is greater than $ 250,000 , ( iv ) the five-day volume weighted-average price of our common stock is at least $ 1.00 per share and ( v ) our market capitalization is at least $ 15 million . if there is an event of default under the unsecured convertible note , the convertible noteholder may accelerate our obligations or elect to increase the outstanding obligations under the unsecured convertible note . the amount of
| cash flows the following table sets forth the primary sources and uses of cash for the years ended december 31 , 2019 and 2018 : replace_table_token_4_th operating activities for the year ended december 31 , 2019 , net cash used in operating activities of approximately $ 18.0 million primarily consisted of a net loss of $ 27.0 million and a non-cash gain of $ 1.2 million for the extinguishment of the senior convertible note derivative liability and changes in the fair value of the warrant liabilities and the unsecured convertible note derivative liability . these decreases were offset by adjustments for non-cash share-based compensation of approximately $ 2.9 million , non-cash warrant inducement expense of $ 1.3 million , non-cash loss of $ 1.0 million on the extinguishment of debt , non-cash interest expense of approximately $ 1.1 million , write-off of deferred offering costs associated with the atm facility of $ 0.1 million and a net change of approximately $ 3.9 million due to changes in operating assets and liabilities . for the year ended december 31 , 2018 , net cash used in operating activities of approximately $ 15.2 million primarily consisted of a net loss of $ 24.2 million , offset by adjustments for non-cash share-based compensation of approximately $ 3.8 million , beneficial conversion feature of $ 3.1 million , non-cash interest expense of approximately $ 2.8 million offset by the change in fair value of derivative liability of $ 0.1 million and a net change totaling approximately $ 0.7 million due to increases in prepaid expense , accounts payable and other current assets and accounts payable and decreases in accrued expenses . investing activities for the year ended december 31 , 2019 , net cash used in investing activities of approximately $ 12,000 represented the purchase of computer 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 flows the following table sets forth the primary sources and uses of cash for the years ended december 31 , 2019 and 2018 : replace_table_token_4_th operating activities for the year ended december 31 , 2019 , net cash used in operating activities of approximately $ 18.0 million primarily consisted of a net loss of $ 27.0 million and a non-cash gain of $ 1.2 million for the extinguishment of the senior convertible note derivative liability and changes in the fair value of the warrant liabilities and the unsecured convertible note derivative liability . these decreases were offset by adjustments for non-cash share-based compensation of approximately $ 2.9 million , non-cash warrant inducement expense of $ 1.3 million , non-cash loss of $ 1.0 million on the extinguishment of debt , non-cash interest expense of approximately $ 1.1 million , write-off of deferred offering costs associated with the atm facility of $ 0.1 million and a net change of approximately $ 3.9 million due to changes in operating assets and liabilities . for the year ended december 31 , 2018 , net cash used in operating activities of approximately $ 15.2 million primarily consisted of a net loss of $ 24.2 million , offset by adjustments for non-cash share-based compensation of approximately $ 3.8 million , beneficial conversion feature of $ 3.1 million , non-cash interest expense of approximately $ 2.8 million offset by the change in fair value of derivative liability of $ 0.1 million and a net change totaling approximately $ 0.7 million due to increases in prepaid expense , accounts payable and other current assets and accounts payable and decreases in accrued expenses . investing activities for the year ended december 31 , 2019 , net cash used in investing activities of approximately $ 12,000 represented the purchase of computer equipment .
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Suspicious Activity Report : through this collaboration , we seek to understand how the therapeutic effect of immune checkpoint inhibitors , such as antibodies to ctla-4 and pd-1 , are modulated by blocking translocation of certain metabolites and bacterial antigens and toxins from interacting with the host immune system in pre-clinical oncology models . building on previous research that showed a type of permeability known as “ leaky gut ” that may cause microbial translocation of toxic products into circulation of the bloodstream , we are expanding our work in liver disease . initial in vitro data suggests the potential use of larazotide in alcoholic liver diseases . we entered into a research collaboration with massachusetts general hospital to explore larazotide in animal models for the treatment of ash . monster merger on january 29 , 2018 , monster and private innovate completed a reverse recapitalization in accordance with the terms of the monster merger agreement . in connection with the transaction , private innovate changed its name to ib pharmaceuticals inc. pursuant to the monster merger agreement , monster merger sub merged with and into ib pharmaceuticals with ib pharmaceuticals surviving as the wholly owned subsidiary of monster . immediately following the monster merger , monster changed its name to innovate biopharmaceuticals , inc. on march 29 , 2018 , ib pharmaceuticals was merged into innovate and ceased to exist . the monster merger is further described in “ note 1—summary of significant accounting policies ” and “ note 3—monster merger and financing ” to the accompanying financial statements included in this annual report on form 10-k. agreement and plan of merger and reorganization with rdd pharma , ltd. on october 6 , 2019 , we entered into the rdd merger agreement , pursuant to which we agreed to acquire all of the outstanding capital stock of privately-held rdd , an israel corporation , in exchange for a combination of common and preferred shares to be issued by us . the rdd merger will include a concurrent capital raise led by orbimed advisors llc , with a minimum funding requirement of $ 10 million . we are targeting completion of the rdd merger and rdd merger financing near the end of the first quarter of 2020. upon closing of the rdd merger , on an as-converted , fully diluted basis , our current stockholders will own approximately 62 % of the combined company 's capital stock and the current rdd stockholders will own approximately 38 % of the combined company 's capital stock . the final ownership percentages are subject to dilution based on the final amount of capital invested in the rdd merger financing , which will dilute both the current innovate stockholders and current rdd stockholders on a pro rata basis . we intend to use the proceeds from the rdd merger financing to advance our phase 3 clinical trial for the treatment of celiac disease as well as for progression of rdd 's current pipeline . subject to and concurrently with the closing of the rdd merger , the board will appoint john temperato , the chief executive officer of rdd , as chief executive officer of the combined company , 9 meters biopharma , inc. financial overview since our inception , we have focused our efforts and resources on identifying and developing our research and development programs . we have not had any products approved for commercial sale and have incurred operating losses in each year since inception . substantially all of our operating losses resulted from expenses incurred in connection with our research and 72 development programs and from general and administrative costs associated with our operations . as of december 31 , 2019 , we had an accumulated deficit of $ 70.6 million . we incurred net losses of $ 27.0 million and $ 24.2 million for the years ended december 31 , 2019 and 2018 , respectively . we expect to continue to incur significant expenses and increase our operating losses for the foreseeable future , which may fluctuate significantly between periods . we anticipate that our expenses will increase substantially as and to the extent we : continue research and development , including preclinical and clinical development of our existing and future product candidates , including inn-202 ; complete integration of operations and personnel associated with the proposed rdd merger ; potentially seek regulatory approval for our product candidates ; commercialize any product candidates for which we obtain regulatory approval ; maintain and protect our intellectual property rights ; add operational , financial and management information systems and personnel ; and continue to incur additional legal , accounting , regulatory , tax-related and other expenses required to operate as a public company . as such , we will need substantial additional funding to support our operating activities . adequate funding may not be available to us on acceptable terms , or at all . we currently anticipate that we will seek to fund our operations through equity or debt financings , strategic alliances or licensing arrangements , or other sources of financing . our failure to obtain sufficient funds on acceptable terms could have a material adverse effect on our business , results of operations and financial condition . other recent developments in june 2019 , we expanded our senior management team by appointing edward j. sitar as our chief financial officer . mr. sitar has extensive experience in finance and the life sciences industry . mr. sitar is responsible for developing and implementing our financial strategy and growth plans . in february 2019 , we strengthened our clinical development team by appointing patrick griffin , m.d . , f.a.c.p . as our chief medical officer . dr. griffin has several decades of clinical development experience in gastroenterology , autoimmune and metabolic diseases and has overseen multiple phase 3 clinical trials . story_separator_special_tag there are no further amounts outstanding under the senior convertible note and the senior convertible note has been canceled . amortization of the debt discount for the note and senior convertible note totaled approximately $ 2.5 million for the year ended december 31 , 2018 and is recorded as interest expense in the accompanying statements of operations and comprehensive loss . there was no such expense related to the note and senior convertible note during the year ended december 31 , 2019. unsecured convertible promissory note on march 8 , 2019 , we entered into a securities purchase agreement pursuant to which we issued an unsecured convertible promissory note , or the unsecured convertible note , in the principal amount of $ 5.5 million . the holder of the unsecured 77 convertible note , or the convertible noteholder , may elect to convert all or a portion of the unsecured convertible note at any time and from time to time into our common stock at a conversion price of $ 3.25 per share , subject to adjustment for stock splits , dividends , combinations and similar events . we may prepay all or a portion of the unsecured convertible note at any time for an amount equal to 115 % of then outstanding obligations or the portion of the obligations we are prepaying . the purchase price of the unsecured convertible note was $ 5.0 million and the unsecured convertible note carries an original issuance discount of $ 0.5 million , which is included in the principal amount of the unsecured convertible note . in addition , we agreed to pay $ 20,000 of transaction expenses , which were netted out of the purchase price of the unsecured convertible note . we also incurred additional transaction costs of approximately $ 37,000 , which were recorded as debt issuance costs . as a result of the redemption features of the unsecured convertible note , further described in “ note 6—debt , ” we are amortizing the debt issuance costs and accreting the oid to interest expense over the estimated redemption period of 15 months , using the effective interest method . the various conversion and redemption features contained in the unsecured convertible note are embedded derivative instruments , which were recorded as a debt discount and derivative liability at the issuance date at their estimated fair value of $ 1.3 million . amortization of debt discount and accretion of the oid for the unsecured convertible note recorded as interest expense was approximately $ 1.1 million for the year ended december 31 , 2019. the unsecured convertible note bears interest at the rate of 10 % ( which will increase to 18 % upon and during the continuance of an event of default ) per annum , compounding on a daily basis . all principal and accrued interest on the unsecured convertible note is due on the second-year anniversary of the unsecured convertible note 's issuance . during the year ended december 31 , 2019 , we made principal payments of $ 1.5 million under the unsecured convertible note . at any time after the six-month anniversary of the issuance of the unsecured convertible note , ( i ) if the average volume weighted average price over 20 trading dates exceeds $ 10.00 per share , we may generally require that the unsecured convertible note convert into shares of our common stock at the $ 3.25 ( as adjusted ) conversion price , and ( ii ) the convertible noteholder may elect to require all or a portion of the unsecured convertible note be redeemed by us . if the convertible noteholder requires a redemption , we , at our discretion , may pay the redeemed portion of the unsecured convertible note in cash or in our common stock at a conversion rate equal to the lesser of ( i ) the $ 3.25 ( as adjusted ) conversion rate or ( ii ) 80 % of the average of the five lowest volume weighted-average prices of our common stock over the preceding 20 trading days . the convertible noteholder may not redeem more than $ 500,000 per calendar month during the period between the six-month anniversary of the date of issuance until the first-year anniversary of the date of issuance and $ 750,000 per calendar month thereafter . our obligation or right to deliver our shares upon the conversion or redemption of the unsecured convertible note is subject to a 19.99 % cap and subject to a floor price trading price of $ 3.25 ( unless waived by us ) . any amounts elected to be redeemed once the cap is reached or if the market price is less than the $ 3.25 floor price must be paid in cash . in addition , we will be required to pay in cash any amounts elected to be redeemed by the noteholder if any of the following conditions are not satisfied as of the date the noteholder delivers a notice of redemption : ( i ) all conversion shares are freely tradable under rule 144 of the securities act without the need for registration under applicable federal and state securities laws ( without regard to any limitation on conversion of the notes ) , ( ii ) no event of default ( as defined in the applicable note ) has occurred and is continuing , ( iii ) the average and median daily dollar volume of our common stock for the prior 20 and 200 trading days is greater than $ 250,000 , ( iv ) the five-day volume weighted-average price of our common stock is at least $ 1.00 per share and ( v ) our market capitalization is at least $ 15 million . if there is an event of default under the unsecured convertible note , the convertible noteholder may accelerate our obligations or elect to increase the outstanding obligations under the unsecured convertible note . the amount of
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2,653 | typically , revenues are determined based on the number of visits conducted at the clinic and recognized at the point in time when services are performed . costs , typically salaries for our employees , are recorded when incurred . revenues from the industrial injury prevention business , which are also included in other revenues in the consolidated statements of net income , are derived from onsite services we provide to clients ' employees including injury prevention , rehabilitation , ergonomic assessments and performance optimization . revenue from the industrial injury prevention business is recognized when obligations under the terms of the contract are satisfied . revenues are recognized at an amount equal to the consideration we expect to receive in exchange for providing injury prevention services to its clients . the revenue is determined and recognized based on the number of hours and respective rate for services provided in a given period . additionally , other revenues include services we provide on-site , such as schools and industrial worksites , for physical or occupational therapy services , and athletic trainers and gym membership fees . contract terms and rates are agreed to in advance between us and the third parties . services are typically performed over the contract period and revenue is recorded at the point of service . if the services are paid in advance , revenue is recorded as a contract liability over the period of the agreement and recognized at the point in time , when the services are performed . in may 2014 , march 2016 , april 2016 , and december 2016 , the financial accounting standards board ( fasb ) issued accounting standards update ( asu ) 2014-09 , revenue from contracts with customers , asu 2016-08 , revenue from contracts with customers , principal versus agent considerations , asu 2016-10 , revenue from contracts with customers , identifying performance obligations and licensing , asu 2016-12 , revenue from contracts with customers , narrow scope improvements and practical expedients , and asu 2016-20 , technical corrections and improvements to topic 606 , revenue from contracts with customer ( collectively the standards ) , respectively , which supersede most of the current revenue recognition 25 requirements ( asc 606 ) . the core principle of the new guidance 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 . we implemented the new standards beginning january 1 , 2018 using a modified retrospective transition method . the principal change relates to how the new standard requires healthcare providers to estimate the amount of variable consideration to be included in the transaction price up to an amount which is probable that a significant reversal will not occur . the most common forms of variable consideration we experience are amounts for services provided that are ultimately not realizable from a customer . there were no changes to revenues or other revenues upon implementation . under the new standards , our estimate for unrealizable amounts will continue to be recognized as a reduction to revenue . the bad debt expense historically reported will not materially change . for asc 606 , there is an implied contract between us and the patient upon each patient visit . separate contractual arrangements exist between us and third party payors ( e.g . insurers , managed care programs , government programs , workers ' compensation ) which establish the amounts the third parties pay on behalf of the patients for covered services rendered . while these agreements are not considered contracts with the customer , they are used for determining the transaction price for services provided to the patients covered by the third party payors . the payor contracts do not indicate performance obligations for us , but indicate reimbursement rates for patients who are covered by those payors when the services are provided . at that time , we are obligated to provide services for the reimbursement rates stipulated in the payor contracts . the execution of the contract alone does not indicate a performance obligation . for self-paying customers , the performance obligation exists when we provide the services at established rates . the difference between our established rate and the anticipated reimbursement rate is accounted for as an offset to revenue – contractual allowance . we determine allowances for doubtful accounts based on the specific agings and payor classifications at each clinic . the provision for doubtful accounts is included in clinic operating costs in the statements of net income . patient accounts receivable , which are stated at the historical carrying amount net of contractual allowances , write-offs and allowance for doubtful accounts , includes only those amounts we estimate to be collectible . the following table details the revenue related to the various categories . replace_table_token_8_th contractual allowances . contractual allowances result from the differences between the rates charged for services performed and expected reimbursements by both insurance companies and government sponsored healthcare programs for such services . medicare regulations and the various third party payors and managed care contracts are often complex and may include multiple reimbursement mechanisms payable for the services provided in our clinics . we estimate contractual allowances based on our interpretation of the applicable regulations , payor contracts and historical calculations . each month we estimate our contractual allowance for each clinic based on payor contracts and the historical collection experience of the clinic and applies an appropriate contractual allowance reserve percentage to the gross accounts receivable balances for each payor of the clinic . based on our historical experience , calculating the contractual allowance reserve percentage at the payor level is sufficient to allow us to provide the necessary detail and accuracy with our collectability estimates . story_separator_special_tag for both periods of 2018 , in accordance with current accounting guidance , the revaluation of redeemable non-controlling interest , net of tax , is not included in net income but rather charged directly to retained earnings , but is included in the earnings per basic and diluted share calculation . see table below . 30 for 2018 , our adjusted ebitda increased by 7.1 % to $ 62.1 million from $ 57.9 million in 2017. see definition and reconciliation of adjusted ebitda in the following table . replace_table_token_12_th replace_table_token_13_th * mandatorily redeemable non-controlling interests the above table details the calculation of basic and diluted earnings per share attributable to our shareholders and reconciles net income attributable to our shareholders calculated in accordance with gaap to adjusted ebitda and operating results , non-gaap measures defined below . we believe providing operating results and adjusted ebitda are useful information to our investors for the purposes of comparing our period-to-period results . in addition , we believe that providing operating results allows our investors to compare 31 our results with other similar businesses since most do not have redeemable instruments and therefore have different liability and equity structures . we use operating results , which eliminates the mrnci – change in redemption which is a current non-cash item that can be subject to volatility and unusual costs , as one of the principal measures to evaluate and monitor financial performance period over period . adjusted ebitda is defined as earnings before gain on derecognition of debt , interest income , interest expense – mandatorily redeemable non-controlling interests – change in redemption value , interest expense – debt and other , taxes , depreciation , amortization and equity-based awards compensation expense . operating results and adjusted ebitda are not measures of financial performance under gaap . operating results and adjusted ebitda should not be considered in isolation or as an alternative to , or substitute for , net income attributable to usph shareholders presented in the consolidated financial statements . net patient revenues net patient revenues increased to $ 417.7 million for 2018 from $ 389.2 million for 2017 , an increase of $ 28.5 million , or 7.3 % . the increase in net patient revenues of $ 28.5 million consisted of an increase of $ 4.7 million from new clinics and $ 23.8 million from mature clinics . during 2018 , we acquired one multi-clinic group consisting of four clinics and five other single clinic practices for a total of 9 clinics . the net patient revenues from acquired clinics are included in our results of operations since the respective date of their acquisition . see above table and discussion under —executive summary detailing our multi-clinic acquisitions . total patient visits increased to 3,958,000 for 2018 from 3,705,000 for 2017. the growth in patient visits was attributable to 43,000 visits in new clinics and an increase of 210,000 visits for mature clinics primarily due to 2017 new clinics . the average net patient revenue per visit slightly increased to $ 105.55 in 2018 from $ 105.05 in 2017. net patient revenues are based on established billing rates less allowances and discounts for patients covered by contractual programs and workers ' compensation . net patient revenues reflect contractual and other adjustments , which we evaluate monthly , relating to patient discounts from certain payors . payments received under these contractual programs and workers ' compensation are based on predetermined rates and are generally less than the established billing rates of the clinics . other revenues other revenues , consisting primarily of industrial injury prevention business and management fees revenue , increased by $ 11.4 million , from $ 24.8 million in 2017 to $ 36.2 million in 2018. the revenues from the recently acquired industrial injury prevention business were $ 25.5 million in 2018 and $ 14.9 million in 2017. revenues from management contracts were $ 8.3 million for 2018 as compared to $ 7.4 million for 2017. other miscellaneous revenue was $ 2.4 million for 2018 and $ 2.5 million for 2017. operating costs operating costs were $ 352.2 million , or 77.6 % of net revenues , for 2018 and $ 323.4 million , or 78.1 % of net revenues , for 2017. the dollar increase was attributable to $ 5.3 million in operating costs for new clinics , an additional $ 15.1 million related to a mature clinics , $ 7.4 million related to the addition of the industrial injury prevention business , and an increase of $ 1.0 million related to management contracts . the 2017 closure costs of $ 0.6 million , included in operating costs , are primarily due to the closure of a single clinic acquired partnership due to the loss of a significant management contract . ( see table detailing acquisition dates above under – executive summary ) . each component of clinic operating costs is discussed below : operating costs—salaries and related costs salaries and related costs increased to $ 259.2 million for 2018 from $ 237.1 million for 2017 , an increase of $ 22.1 million , or 9.3 % . approximately $ 3.3 million of the increase was attributable to new clinics , $ 12.6 million of the increase was due to higher costs at various mature clinics primarily due to an increase in salaries and related costs in 2017 new clinics which had a full year of activity in 2018 , $ 5.4 million was due to higher salary costs at the industrial injury prevention businesses primarily due to the acquisition in april of 2018 and $ 0.8 million related to management contracts . salaries and related costs as a percentage of net revenues was 57.1 % for 2018 and 57.3 % for 2017 . 32 operating costs—rent , supplies , contract labor and other rent , supplies , contract labor and other costs increased to $ 88.4 million for 2018 from $ 82.1 million for 2017 , an increase
| gain on derecognition of debt gain on derecognition of debt was $ 1.8 million for the year 2018 as a liability relating to some former physical therapy partners is no longer deemed payable . provision for income taxes the provision for income tax in 2018 was $ 11.4 million , inclusive of a $ 0.5 million benefit related to the reconciliation of the 2017 federal and state returns to our book provision . without this benefit , the provision for income taxes as a percentage of income before taxes less net income attributable to non-controlling interest was 25.7 % . the income tax expense in 2017 was $ 6.0 million . included in 2017 is a tax benefit of $ 4.3 million due to the revaluation of deferred tax assets and liabilities due to the tcja . also , included in 2017 was a charge of $ 0.3 million related to a detailed reconciliation of the federal and state taxes payable and receivable accounts along with federal and state deferred tax assets and liability accounts at december 31 , 2016. without this reconciliation charge and prior to the $ 4.3 million tax benefit , the provision for income taxes as a percentage of income before taxes less net income attributable to non-controlling interest was 35.6 % . as reported , the provision for income tax as a percentage of income before taxes less net income attributable to non-controlling interest was 24.6 % in 2018 and 21.3 % in 2017. net income attributable to non-controlling interests net income attributable to non-controlling interests was $ 13.9 million in 2018 and $ 5.5 million in 2017. net income attributable to non-controlling interests ( permanent equity ) was $ 5.5 million in 2018 as compared to $ 5.2 million in 2017. net income attributable to redeemable non-controlling interests ( temporary equity ) was $ 8.4 million in 2018 and $ 0.2 million in 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.
```gain on derecognition of debt gain on derecognition of debt was $ 1.8 million for the year 2018 as a liability relating to some former physical therapy partners is no longer deemed payable . provision for income taxes the provision for income tax in 2018 was $ 11.4 million , inclusive of a $ 0.5 million benefit related to the reconciliation of the 2017 federal and state returns to our book provision . without this benefit , the provision for income taxes as a percentage of income before taxes less net income attributable to non-controlling interest was 25.7 % . the income tax expense in 2017 was $ 6.0 million . included in 2017 is a tax benefit of $ 4.3 million due to the revaluation of deferred tax assets and liabilities due to the tcja . also , included in 2017 was a charge of $ 0.3 million related to a detailed reconciliation of the federal and state taxes payable and receivable accounts along with federal and state deferred tax assets and liability accounts at december 31 , 2016. without this reconciliation charge and prior to the $ 4.3 million tax benefit , the provision for income taxes as a percentage of income before taxes less net income attributable to non-controlling interest was 35.6 % . as reported , the provision for income tax as a percentage of income before taxes less net income attributable to non-controlling interest was 24.6 % in 2018 and 21.3 % in 2017. net income attributable to non-controlling interests net income attributable to non-controlling interests was $ 13.9 million in 2018 and $ 5.5 million in 2017. net income attributable to non-controlling interests ( permanent equity ) was $ 5.5 million in 2018 as compared to $ 5.2 million in 2017. net income attributable to redeemable non-controlling interests ( temporary equity ) was $ 8.4 million in 2018 and $ 0.2 million in 2017 .
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Suspicious Activity Report : typically , revenues are determined based on the number of visits conducted at the clinic and recognized at the point in time when services are performed . costs , typically salaries for our employees , are recorded when incurred . revenues from the industrial injury prevention business , which are also included in other revenues in the consolidated statements of net income , are derived from onsite services we provide to clients ' employees including injury prevention , rehabilitation , ergonomic assessments and performance optimization . revenue from the industrial injury prevention business is recognized when obligations under the terms of the contract are satisfied . revenues are recognized at an amount equal to the consideration we expect to receive in exchange for providing injury prevention services to its clients . the revenue is determined and recognized based on the number of hours and respective rate for services provided in a given period . additionally , other revenues include services we provide on-site , such as schools and industrial worksites , for physical or occupational therapy services , and athletic trainers and gym membership fees . contract terms and rates are agreed to in advance between us and the third parties . services are typically performed over the contract period and revenue is recorded at the point of service . if the services are paid in advance , revenue is recorded as a contract liability over the period of the agreement and recognized at the point in time , when the services are performed . in may 2014 , march 2016 , april 2016 , and december 2016 , the financial accounting standards board ( fasb ) issued accounting standards update ( asu ) 2014-09 , revenue from contracts with customers , asu 2016-08 , revenue from contracts with customers , principal versus agent considerations , asu 2016-10 , revenue from contracts with customers , identifying performance obligations and licensing , asu 2016-12 , revenue from contracts with customers , narrow scope improvements and practical expedients , and asu 2016-20 , technical corrections and improvements to topic 606 , revenue from contracts with customer ( collectively the standards ) , respectively , which supersede most of the current revenue recognition 25 requirements ( asc 606 ) . the core principle of the new guidance 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 . we implemented the new standards beginning january 1 , 2018 using a modified retrospective transition method . the principal change relates to how the new standard requires healthcare providers to estimate the amount of variable consideration to be included in the transaction price up to an amount which is probable that a significant reversal will not occur . the most common forms of variable consideration we experience are amounts for services provided that are ultimately not realizable from a customer . there were no changes to revenues or other revenues upon implementation . under the new standards , our estimate for unrealizable amounts will continue to be recognized as a reduction to revenue . the bad debt expense historically reported will not materially change . for asc 606 , there is an implied contract between us and the patient upon each patient visit . separate contractual arrangements exist between us and third party payors ( e.g . insurers , managed care programs , government programs , workers ' compensation ) which establish the amounts the third parties pay on behalf of the patients for covered services rendered . while these agreements are not considered contracts with the customer , they are used for determining the transaction price for services provided to the patients covered by the third party payors . the payor contracts do not indicate performance obligations for us , but indicate reimbursement rates for patients who are covered by those payors when the services are provided . at that time , we are obligated to provide services for the reimbursement rates stipulated in the payor contracts . the execution of the contract alone does not indicate a performance obligation . for self-paying customers , the performance obligation exists when we provide the services at established rates . the difference between our established rate and the anticipated reimbursement rate is accounted for as an offset to revenue – contractual allowance . we determine allowances for doubtful accounts based on the specific agings and payor classifications at each clinic . the provision for doubtful accounts is included in clinic operating costs in the statements of net income . patient accounts receivable , which are stated at the historical carrying amount net of contractual allowances , write-offs and allowance for doubtful accounts , includes only those amounts we estimate to be collectible . the following table details the revenue related to the various categories . replace_table_token_8_th contractual allowances . contractual allowances result from the differences between the rates charged for services performed and expected reimbursements by both insurance companies and government sponsored healthcare programs for such services . medicare regulations and the various third party payors and managed care contracts are often complex and may include multiple reimbursement mechanisms payable for the services provided in our clinics . we estimate contractual allowances based on our interpretation of the applicable regulations , payor contracts and historical calculations . each month we estimate our contractual allowance for each clinic based on payor contracts and the historical collection experience of the clinic and applies an appropriate contractual allowance reserve percentage to the gross accounts receivable balances for each payor of the clinic . based on our historical experience , calculating the contractual allowance reserve percentage at the payor level is sufficient to allow us to provide the necessary detail and accuracy with our collectability estimates . story_separator_special_tag for both periods of 2018 , in accordance with current accounting guidance , the revaluation of redeemable non-controlling interest , net of tax , is not included in net income but rather charged directly to retained earnings , but is included in the earnings per basic and diluted share calculation . see table below . 30 for 2018 , our adjusted ebitda increased by 7.1 % to $ 62.1 million from $ 57.9 million in 2017. see definition and reconciliation of adjusted ebitda in the following table . replace_table_token_12_th replace_table_token_13_th * mandatorily redeemable non-controlling interests the above table details the calculation of basic and diluted earnings per share attributable to our shareholders and reconciles net income attributable to our shareholders calculated in accordance with gaap to adjusted ebitda and operating results , non-gaap measures defined below . we believe providing operating results and adjusted ebitda are useful information to our investors for the purposes of comparing our period-to-period results . in addition , we believe that providing operating results allows our investors to compare 31 our results with other similar businesses since most do not have redeemable instruments and therefore have different liability and equity structures . we use operating results , which eliminates the mrnci – change in redemption which is a current non-cash item that can be subject to volatility and unusual costs , as one of the principal measures to evaluate and monitor financial performance period over period . adjusted ebitda is defined as earnings before gain on derecognition of debt , interest income , interest expense – mandatorily redeemable non-controlling interests – change in redemption value , interest expense – debt and other , taxes , depreciation , amortization and equity-based awards compensation expense . operating results and adjusted ebitda are not measures of financial performance under gaap . operating results and adjusted ebitda should not be considered in isolation or as an alternative to , or substitute for , net income attributable to usph shareholders presented in the consolidated financial statements . net patient revenues net patient revenues increased to $ 417.7 million for 2018 from $ 389.2 million for 2017 , an increase of $ 28.5 million , or 7.3 % . the increase in net patient revenues of $ 28.5 million consisted of an increase of $ 4.7 million from new clinics and $ 23.8 million from mature clinics . during 2018 , we acquired one multi-clinic group consisting of four clinics and five other single clinic practices for a total of 9 clinics . the net patient revenues from acquired clinics are included in our results of operations since the respective date of their acquisition . see above table and discussion under —executive summary detailing our multi-clinic acquisitions . total patient visits increased to 3,958,000 for 2018 from 3,705,000 for 2017. the growth in patient visits was attributable to 43,000 visits in new clinics and an increase of 210,000 visits for mature clinics primarily due to 2017 new clinics . the average net patient revenue per visit slightly increased to $ 105.55 in 2018 from $ 105.05 in 2017. net patient revenues are based on established billing rates less allowances and discounts for patients covered by contractual programs and workers ' compensation . net patient revenues reflect contractual and other adjustments , which we evaluate monthly , relating to patient discounts from certain payors . payments received under these contractual programs and workers ' compensation are based on predetermined rates and are generally less than the established billing rates of the clinics . other revenues other revenues , consisting primarily of industrial injury prevention business and management fees revenue , increased by $ 11.4 million , from $ 24.8 million in 2017 to $ 36.2 million in 2018. the revenues from the recently acquired industrial injury prevention business were $ 25.5 million in 2018 and $ 14.9 million in 2017. revenues from management contracts were $ 8.3 million for 2018 as compared to $ 7.4 million for 2017. other miscellaneous revenue was $ 2.4 million for 2018 and $ 2.5 million for 2017. operating costs operating costs were $ 352.2 million , or 77.6 % of net revenues , for 2018 and $ 323.4 million , or 78.1 % of net revenues , for 2017. the dollar increase was attributable to $ 5.3 million in operating costs for new clinics , an additional $ 15.1 million related to a mature clinics , $ 7.4 million related to the addition of the industrial injury prevention business , and an increase of $ 1.0 million related to management contracts . the 2017 closure costs of $ 0.6 million , included in operating costs , are primarily due to the closure of a single clinic acquired partnership due to the loss of a significant management contract . ( see table detailing acquisition dates above under – executive summary ) . each component of clinic operating costs is discussed below : operating costs—salaries and related costs salaries and related costs increased to $ 259.2 million for 2018 from $ 237.1 million for 2017 , an increase of $ 22.1 million , or 9.3 % . approximately $ 3.3 million of the increase was attributable to new clinics , $ 12.6 million of the increase was due to higher costs at various mature clinics primarily due to an increase in salaries and related costs in 2017 new clinics which had a full year of activity in 2018 , $ 5.4 million was due to higher salary costs at the industrial injury prevention businesses primarily due to the acquisition in april of 2018 and $ 0.8 million related to management contracts . salaries and related costs as a percentage of net revenues was 57.1 % for 2018 and 57.3 % for 2017 . 32 operating costs—rent , supplies , contract labor and other rent , supplies , contract labor and other costs increased to $ 88.4 million for 2018 from $ 82.1 million for 2017 , an increase
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2,654 | to make this distinction , the company has labeled balances and results of operations prior to the transaction date as predecessor company and balances and results of operations for periods subsequent to the transaction date as successor company. the lack of comparability arises from the assets and liabilities having new accounting bases as a result of recording them at their fair values as of the transaction date rather than at historical cost basis . to denote this lack of comparability , a heavy black line has been placed between the successor company and predecessor company columns in the discussion herein . 28 in connection with the transaction , as part of the regulatory approval process the company made certain commitments to the board of governors of the federal reserve system ( the federal reserve ) , the most significant of which are , ( i ) maintain a tier 1 leverage ratio of at least 10 % , ( ii ) maintain a total risk-based capital ratio of at least 15 % , ( iii ) limit purchased loans to 40 % of total loans , ( iv ) fund 100 % of the company 's loans with core deposits ( defined as non-maturity deposits and non-brokered insured time deposits ) , and ( v ) hold commercial real estate loans ( including owner-occupied commercial real estate ) to within 300 % of total risk-based capital . on june 28 , 2013 , the federal reserve approved the amendment of the commitment to hold commercial real estate loans to within 300 % of total risk-based capital to exclude owner-occupied commercial real estate loans . all other commitments made to the federal reserve in connection with the merger remain unchanged . the company and the bank are currently in compliance with all commitments to the federal reserve . the company 's compliance ratios at june 30 , 2013 follow . condition ratio at june 30 , 2013 ( i ) tier 1 leverage ratio 17.78 % ( ii ) total risk-based capital ratio 27.54 % ( iii ) ratio of purchased loans to total loans 37.57 % ( iv ) ratio of loans to core deposits 92.94 % ( v ) ratio of commercial real estate loans to total risk-based capital 159.07 % as a result of the sale of the company 's insurance agency business in the first quarter of fiscal 2012 and discontinuation of further significant business activities in the insurance agency segment , the company has classified the results of its insurance agency division as discontinued operations in the company 's consolidated financial statements and discussion herein . fiscal 2013 financial highlights the company 's financial and strategic highlights for fiscal 2013 include the following : · earned net income of $ 4.4 million , or $ 0.39 per diluted share , from continuing operations as compared to $ 1.0 million , or $ 0.15 per diluted share , from continuing operations in fiscal 2012 . · purchased commercial loans totaling $ 121.3 million , and earned an average yield on the purchased portfolio of 16.0 % , a result that includes regularly scheduled interest and accretion , and accelerated accretion and fees recognized on loan payoffs . the company also monitors the total return on its purchased loan portfolio , a measure that includes gains on sales of purchased loans , as well as interest , scheduled accretion and accelerated accretion and fees . on this basis , the purchased loan portfolio earned a total return of 18.3 % for fiscal 2013. an overview of the lasg portfolio for fiscal 2013 follows : replace_table_token_8_th ( 1 ) the total return on purchased loans represents scheduled accretion , accelerated accretion , gains on asset sales , and other noninterest income recorded during the period divided by the average invested balance , on an annualized basis . · increased the company 's deposit base by $ 62.4 million , principally through $ 69.0 million of net deposits raised through ablebanking , the bank 's online affinity deposit platform . · redeemed tarp preferred stock and warrants totaling $ 4.3 million . 29 results of operations continuing operations general net income from continuing operations for the year ended june 30 , 2013 was $ 4.4 million , a $ 3.4 million increase over 2012. items of significance affecting the company 's earnings included : · an increase in the net interest margin , which grew to 4.62 % , compared to 3.69 % for the year ended june 30 , 2012 , principally due to growth in the company 's purchased loan portfolio . the following table summarizes interest income and related yields recognized on the company 's loans . replace_table_token_9_th the yield on purchased loans was increased by unscheduled loan payoffs , which resulted in immediate recognition of the prepaid loans ' discount in interest income . the following table details the total return on purchased loans , which includes transactional income of $ 10.6 million for the year ended june 30 , 2013. replace_table_token_10_th ( 1 ) the total return on purchased loans represents scheduled accretion , accelerated accretion , gains on asset sales , and other noninterest income recorded during the period divided by the average invested balance , on an annualized basis . · net gains on residential mortgage loan sales of $ 3.0 million , compared to $ 2.8 million in fiscal 2012 . · net gains on portfolio loan sales of $ 2.3 million , compared to $ 1.1 million in fiscal 2012 . · an increase of $ 6.5 million in noninterest expense , principally resulting from increased staffing and infrastructure costs necessary to execute the company 's loan purchasing strategy . further , during fiscal 2013 , the company incurred $ 1.4 million of nonrecurring expenses related to severance and the settlement of a previously disclosed lawsuit . story_separator_special_tag such concessions may include reductions of interest rates to below-market terms and or extension of repayment terms . tdrs increased $ 2.4 million during fiscal 2013 , of which , $ 1.1 million related to loans discharged in bankruptcy in prior years . under recent regulatory guidance , these loans are required to be classified as tdrs and are considered collateral dependent impaired loans . the balances and payment status of tdrs follow : replace_table_token_31_th at june 30 , 2013 , the company had real estate owned and other repossessed collateral amounting to $ 2.1 million , compared to $ 834 thousand at june 30 , 2012 , an increase of $ 1.3 million . the real estate and personal property collateral for commercial and consumer loans are written down to fair value upon transfer to acquired assets . revenues and expenses are recognized in the period when received or incurred on other real estate and in substance foreclosures . gains and losses on disposition are recognized in noninterest income . we continue to focus on asset quality issues and allocate significant resources to credit policy , loan review , asset management , collection , and workout functions . despite this ongoing effort , there can be no assurance that adverse changes in the real estate markets and economic conditions will not result in higher non-performing assets levels in the future and negatively impact our results of operations through higher provision for loan losses , net loan charge-offs , decreased accrual of income and increased noninterest expenses . 43 potential problem loans commercial real estate and commercial loans are periodically evaluated under a ten-point rating system . these ratings are guidelines in assessing the risk of a particular loan . the company had $ 2.9 million and $ 2.5 million of commercial loans rated substandard or worse at june 30 , 2013 and june 30 , 2012 , respectively . replace_table_token_32_th replace_table_token_33_th risk management management and the board of directors of the company recognize that taking and managing risk is fundamental to the business of banking . through the development , implementation and monitoring of its policies with respect to risk management , the company strives to measure , evaluate and control the risks it faces . the board and management understand that an effective risk management system is critical to the company 's safety and soundness . chief among the risks faced by us are credit risk , market risk ( including interest rate risk ) , liquidity risk , and operational ( transaction ) risk . credit risk the company considers credit risk to be the most significant risk that it faces , in that it has the greatest potential to affect the financial condition and operating results of the company . credit risk is managed through a combination of policies and limits established by the board , the monitoring of compliance with these policies and limits , and the periodic evaluation of loans in the portfolio , including those with problem characteristics . the company also utilizes the services of an independent third-party to provide loan review services , which consist of a variety of monitoring techniques after a loan is purchased or originated . in general , northeast 's policies establish limits on the maximum amount of credit that may be granted to a single borrower ( including affiliates ) , the aggregate amount of loans outstanding by type in relation to total assets and capital , and concentrations of loans by size , property type , and geography . underwriting criteria , such as collateral and debt service coverage ratios and approval limits are also specified in loan policies . the company 's policies also address the performance of periodic credit reviews , the risk rating of loans , when loans should be placed on non-performing status and factors that should be considered in establishing the bank 's allowance for loan losses . for additional information , refer to asset quality above and item 1 , businesslending activities. market risk market risk is the risk of loss due to adverse changes in market prices and rates , and typically encompasses exposures such as sensitivity to changes in market interest rates , foreign currency exchange rates , and commodity prices . the company has no exposure to foreign currency exchange or commodity price movements . because net interest income is our primary source of revenue , interest rate risk is a significant market risk to which the company is exposed . interest rate risk can be defined as the exposure of future net interest income to adverse movements in interest rates . net interest income is affected by changes in interest rates as well as by fluctuations in the level , mix and duration of the company 's assets and liabilities . over and above the influence that interest rates have on net interest income , changes in rates also affect the volume of lending activity , the ability of borrowers to repay loans , the volume of loan prepayments , the flow and mix of deposits , and the market value of the company 's assets and liabilities . the company 's management has established an asset liability management committee ( alco ) , which is responsible for managing the company 's interest rate risk in accordance with policies and limits approved by the board of directors . with regard to 44 management of market risk , the alco is charged with managing the company 's mix of assets and funding sources to produce results that are consistent with the company 's liquidity , capital adequacy , growth , and profitability goals . exposure to interest rate risk is managed by northeast through periodic evaluations of the current interest rate risk inherent in its rate-sensitive assets and liabilities , coupled with determinations of the level of risk considered appropriate given the company 's capital and liquidity requirements , business strategy , and performance objectives .
| cash and cash equivalents cash and cash equivalents decreased $ 62.3 million , or 48.6 % , to $ 65.9 million at june 30 , 2013 as compared to $ 128.3 million at june 30 , 2012. this decrease occurred as cash was used to fund loan growth . 36 investments securities the available-for-sale securities portfolio totaled $ 121.6 million and $ 133.3 million at june 30 , 2013 and 2012 , respectively . the year over year decrease of $ 11.7 million , or 8.8 % , was primarily due to principal amortization of mortgage-backed securities during the year . mortgage-backed securities and u.s. government-sponsored enterprise bonds totaling $ 53.5 million were pledged for outstanding borrowings at june 30 , 2013. at june 30 , 2013 , the company 's investment portfolio was comprised entirely of u.s. government-sponsored enterprise bonds and mortgage-backed securities guaranteed by government agencies . generally , funds retained by the company as a result of increases in deposits or decreases in loans , to the extent not immediately deployed by the bank , are invested in securities held in its investment portfolio , which serves as a source of liquidity for the company . the composition of the company 's securities portfolio at the dates indicated follows . replace_table_token_17_th the table below sets forth certain information regarding the contractual maturities and weighted average yields of the company 's securities portfolio at june 30 , 2013. actual maturities of mortgage-backed securities will differ from contractual maturities due both to scheduled amortization and prepayments . replace_table_token_18_th management reviews the portfolio of investments on an ongoing basis to determine if there have been any other-than-temporary declines in value . no other-than-temporary impairment expense was recognized during fiscal 2013 or fiscal 2012 . 37 loans loans , including loans held-for-sale , totaled $ 444.0 million at june 30 , 2013 , compared to $ 366.1 million at june 30 , 2012. the increase of $ 77.9 million , or 21.3 % , at june 30 , 2013 , was principally due to net increases of $ 83.7 million and $ 10.1 million in commercial real estate and commercial business loans , respectively , offset by decreases in all other categories .
| 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 decreased $ 62.3 million , or 48.6 % , to $ 65.9 million at june 30 , 2013 as compared to $ 128.3 million at june 30 , 2012. this decrease occurred as cash was used to fund loan growth . 36 investments securities the available-for-sale securities portfolio totaled $ 121.6 million and $ 133.3 million at june 30 , 2013 and 2012 , respectively . the year over year decrease of $ 11.7 million , or 8.8 % , was primarily due to principal amortization of mortgage-backed securities during the year . mortgage-backed securities and u.s. government-sponsored enterprise bonds totaling $ 53.5 million were pledged for outstanding borrowings at june 30 , 2013. at june 30 , 2013 , the company 's investment portfolio was comprised entirely of u.s. government-sponsored enterprise bonds and mortgage-backed securities guaranteed by government agencies . generally , funds retained by the company as a result of increases in deposits or decreases in loans , to the extent not immediately deployed by the bank , are invested in securities held in its investment portfolio , which serves as a source of liquidity for the company . the composition of the company 's securities portfolio at the dates indicated follows . replace_table_token_17_th the table below sets forth certain information regarding the contractual maturities and weighted average yields of the company 's securities portfolio at june 30 , 2013. actual maturities of mortgage-backed securities will differ from contractual maturities due both to scheduled amortization and prepayments . replace_table_token_18_th management reviews the portfolio of investments on an ongoing basis to determine if there have been any other-than-temporary declines in value . no other-than-temporary impairment expense was recognized during fiscal 2013 or fiscal 2012 . 37 loans loans , including loans held-for-sale , totaled $ 444.0 million at june 30 , 2013 , compared to $ 366.1 million at june 30 , 2012. the increase of $ 77.9 million , or 21.3 % , at june 30 , 2013 , was principally due to net increases of $ 83.7 million and $ 10.1 million in commercial real estate and commercial business loans , respectively , offset by decreases in all other categories .
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Suspicious Activity Report : to make this distinction , the company has labeled balances and results of operations prior to the transaction date as predecessor company and balances and results of operations for periods subsequent to the transaction date as successor company. the lack of comparability arises from the assets and liabilities having new accounting bases as a result of recording them at their fair values as of the transaction date rather than at historical cost basis . to denote this lack of comparability , a heavy black line has been placed between the successor company and predecessor company columns in the discussion herein . 28 in connection with the transaction , as part of the regulatory approval process the company made certain commitments to the board of governors of the federal reserve system ( the federal reserve ) , the most significant of which are , ( i ) maintain a tier 1 leverage ratio of at least 10 % , ( ii ) maintain a total risk-based capital ratio of at least 15 % , ( iii ) limit purchased loans to 40 % of total loans , ( iv ) fund 100 % of the company 's loans with core deposits ( defined as non-maturity deposits and non-brokered insured time deposits ) , and ( v ) hold commercial real estate loans ( including owner-occupied commercial real estate ) to within 300 % of total risk-based capital . on june 28 , 2013 , the federal reserve approved the amendment of the commitment to hold commercial real estate loans to within 300 % of total risk-based capital to exclude owner-occupied commercial real estate loans . all other commitments made to the federal reserve in connection with the merger remain unchanged . the company and the bank are currently in compliance with all commitments to the federal reserve . the company 's compliance ratios at june 30 , 2013 follow . condition ratio at june 30 , 2013 ( i ) tier 1 leverage ratio 17.78 % ( ii ) total risk-based capital ratio 27.54 % ( iii ) ratio of purchased loans to total loans 37.57 % ( iv ) ratio of loans to core deposits 92.94 % ( v ) ratio of commercial real estate loans to total risk-based capital 159.07 % as a result of the sale of the company 's insurance agency business in the first quarter of fiscal 2012 and discontinuation of further significant business activities in the insurance agency segment , the company has classified the results of its insurance agency division as discontinued operations in the company 's consolidated financial statements and discussion herein . fiscal 2013 financial highlights the company 's financial and strategic highlights for fiscal 2013 include the following : · earned net income of $ 4.4 million , or $ 0.39 per diluted share , from continuing operations as compared to $ 1.0 million , or $ 0.15 per diluted share , from continuing operations in fiscal 2012 . · purchased commercial loans totaling $ 121.3 million , and earned an average yield on the purchased portfolio of 16.0 % , a result that includes regularly scheduled interest and accretion , and accelerated accretion and fees recognized on loan payoffs . the company also monitors the total return on its purchased loan portfolio , a measure that includes gains on sales of purchased loans , as well as interest , scheduled accretion and accelerated accretion and fees . on this basis , the purchased loan portfolio earned a total return of 18.3 % for fiscal 2013. an overview of the lasg portfolio for fiscal 2013 follows : replace_table_token_8_th ( 1 ) the total return on purchased loans represents scheduled accretion , accelerated accretion , gains on asset sales , and other noninterest income recorded during the period divided by the average invested balance , on an annualized basis . · increased the company 's deposit base by $ 62.4 million , principally through $ 69.0 million of net deposits raised through ablebanking , the bank 's online affinity deposit platform . · redeemed tarp preferred stock and warrants totaling $ 4.3 million . 29 results of operations continuing operations general net income from continuing operations for the year ended june 30 , 2013 was $ 4.4 million , a $ 3.4 million increase over 2012. items of significance affecting the company 's earnings included : · an increase in the net interest margin , which grew to 4.62 % , compared to 3.69 % for the year ended june 30 , 2012 , principally due to growth in the company 's purchased loan portfolio . the following table summarizes interest income and related yields recognized on the company 's loans . replace_table_token_9_th the yield on purchased loans was increased by unscheduled loan payoffs , which resulted in immediate recognition of the prepaid loans ' discount in interest income . the following table details the total return on purchased loans , which includes transactional income of $ 10.6 million for the year ended june 30 , 2013. replace_table_token_10_th ( 1 ) the total return on purchased loans represents scheduled accretion , accelerated accretion , gains on asset sales , and other noninterest income recorded during the period divided by the average invested balance , on an annualized basis . · net gains on residential mortgage loan sales of $ 3.0 million , compared to $ 2.8 million in fiscal 2012 . · net gains on portfolio loan sales of $ 2.3 million , compared to $ 1.1 million in fiscal 2012 . · an increase of $ 6.5 million in noninterest expense , principally resulting from increased staffing and infrastructure costs necessary to execute the company 's loan purchasing strategy . further , during fiscal 2013 , the company incurred $ 1.4 million of nonrecurring expenses related to severance and the settlement of a previously disclosed lawsuit . story_separator_special_tag such concessions may include reductions of interest rates to below-market terms and or extension of repayment terms . tdrs increased $ 2.4 million during fiscal 2013 , of which , $ 1.1 million related to loans discharged in bankruptcy in prior years . under recent regulatory guidance , these loans are required to be classified as tdrs and are considered collateral dependent impaired loans . the balances and payment status of tdrs follow : replace_table_token_31_th at june 30 , 2013 , the company had real estate owned and other repossessed collateral amounting to $ 2.1 million , compared to $ 834 thousand at june 30 , 2012 , an increase of $ 1.3 million . the real estate and personal property collateral for commercial and consumer loans are written down to fair value upon transfer to acquired assets . revenues and expenses are recognized in the period when received or incurred on other real estate and in substance foreclosures . gains and losses on disposition are recognized in noninterest income . we continue to focus on asset quality issues and allocate significant resources to credit policy , loan review , asset management , collection , and workout functions . despite this ongoing effort , there can be no assurance that adverse changes in the real estate markets and economic conditions will not result in higher non-performing assets levels in the future and negatively impact our results of operations through higher provision for loan losses , net loan charge-offs , decreased accrual of income and increased noninterest expenses . 43 potential problem loans commercial real estate and commercial loans are periodically evaluated under a ten-point rating system . these ratings are guidelines in assessing the risk of a particular loan . the company had $ 2.9 million and $ 2.5 million of commercial loans rated substandard or worse at june 30 , 2013 and june 30 , 2012 , respectively . replace_table_token_32_th replace_table_token_33_th risk management management and the board of directors of the company recognize that taking and managing risk is fundamental to the business of banking . through the development , implementation and monitoring of its policies with respect to risk management , the company strives to measure , evaluate and control the risks it faces . the board and management understand that an effective risk management system is critical to the company 's safety and soundness . chief among the risks faced by us are credit risk , market risk ( including interest rate risk ) , liquidity risk , and operational ( transaction ) risk . credit risk the company considers credit risk to be the most significant risk that it faces , in that it has the greatest potential to affect the financial condition and operating results of the company . credit risk is managed through a combination of policies and limits established by the board , the monitoring of compliance with these policies and limits , and the periodic evaluation of loans in the portfolio , including those with problem characteristics . the company also utilizes the services of an independent third-party to provide loan review services , which consist of a variety of monitoring techniques after a loan is purchased or originated . in general , northeast 's policies establish limits on the maximum amount of credit that may be granted to a single borrower ( including affiliates ) , the aggregate amount of loans outstanding by type in relation to total assets and capital , and concentrations of loans by size , property type , and geography . underwriting criteria , such as collateral and debt service coverage ratios and approval limits are also specified in loan policies . the company 's policies also address the performance of periodic credit reviews , the risk rating of loans , when loans should be placed on non-performing status and factors that should be considered in establishing the bank 's allowance for loan losses . for additional information , refer to asset quality above and item 1 , businesslending activities. market risk market risk is the risk of loss due to adverse changes in market prices and rates , and typically encompasses exposures such as sensitivity to changes in market interest rates , foreign currency exchange rates , and commodity prices . the company has no exposure to foreign currency exchange or commodity price movements . because net interest income is our primary source of revenue , interest rate risk is a significant market risk to which the company is exposed . interest rate risk can be defined as the exposure of future net interest income to adverse movements in interest rates . net interest income is affected by changes in interest rates as well as by fluctuations in the level , mix and duration of the company 's assets and liabilities . over and above the influence that interest rates have on net interest income , changes in rates also affect the volume of lending activity , the ability of borrowers to repay loans , the volume of loan prepayments , the flow and mix of deposits , and the market value of the company 's assets and liabilities . the company 's management has established an asset liability management committee ( alco ) , which is responsible for managing the company 's interest rate risk in accordance with policies and limits approved by the board of directors . with regard to 44 management of market risk , the alco is charged with managing the company 's mix of assets and funding sources to produce results that are consistent with the company 's liquidity , capital adequacy , growth , and profitability goals . exposure to interest rate risk is managed by northeast through periodic evaluations of the current interest rate risk inherent in its rate-sensitive assets and liabilities , coupled with determinations of the level of risk considered appropriate given the company 's capital and liquidity requirements , business strategy , and performance objectives .
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2,655 | in 2009 , 2010 , and 2011 , we recognized additional gains of $ 0.2 million , $ 0.3 million , and $ 0.2 million , respectively , which were recorded in cost of revenue . we will continue to record additional gain in the future contingent upon attainment of certain earnout provisions . 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 . 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 . in those instances when revenue is recognized upon shipment to distributors , we use historical rates of return from the distributors to provide for estimated product returns . we accrue for warranty costs , sales returns and other allowances at the time of shipment based on historical experience and expected future costs . in october 2009 , the financial accounting standards board , or fasb , amended the accounting standards for multiple deliverable revenue arrangements to : ( i ) provide updated guidance on whether multiple deliverables exist , how the deliverables in an arrangement should be separated , and how the consideration should be allocated ; ( ii ) require an entity to allocate revenue in an arrangement using a best estimate of selling prices , or bsp , for deliverables if a vendor does not have vendor-specific objective evidence of selling price , or vsoe , or third-party evidence of selling price , or tpe ; and ( iii ) eliminate the use of the residual method and require an entity to allocate revenue using the relative selling price method . 28 we adopted the updated accounting standards on january 1 , 2011 on a prospective basis for applicable transactions originating or materially modified after december 31 , 2010. this guidance does not change the units of accounting for revenue transactions . our products and services qualify as separate units of accounting and are deemed to be non-contingent deliverables as our arrangements typically do not have any significant performance , cancellation , termination and refund type provisions . products are typically considered delivered upon shipment . revenue from services is recognized ratably over the period during which the services are to be performed . prior to the adoption of accounting standards update , or asu , 2009-13 , revenue recognition ( topic 605 ) : multiple-deliverable revenue arrangements , we established the fair value or tpe of services in multiple-element arrangements based primarily on sales prices when the products and services were sold separately . as such , we applied the residual method to allocate the arrangement fee between products and services . in limited circumstances , if fair value could not be established for undelivered elements , all of the revenue under the arrangement was deferred until those elements were delivered . upon adoption of asu 2009-13 , on january 1 , 2011 , we allocated revenue to products and services in such arrangements using the relative selling price method to recognize revenue when the basic revenue recognition criteria for each deliverable are met . we derive revenue primarily from stand-alone sales of our products . in certain cases , our products are sold along with services , which include education , training , installation , and or extended warranty services . we have established tpe for our training , education and installation services . story_separator_special_tag after determining there were indicators of impairment , we proceeded to test for impairment and concluded that an impairment charge was required . the impairment charges were incurred to write-down the value of our fixed assets to fair value , as discussed in note 4 of the consolidated financial statements . there were no similar impairment charges incurred in 2010. interest expense interest expense for 2011 decreased by $ 1.0 million to zero compared to $ 1.0 million in 2010 , primarily due to a decrease in outstanding debt balances and continued low interest rates during 2011. this includes the effect of our september 2010 extinguishment of debt associated with the sale of our oakland , california campus as discussed in note 7 of the consolidated financial statements . interest income interest income for 2011 remained consistent with 2010 due to low average balances of cash and cash equivalents and the continued low interest rates during 2011. other income other income for 2011 increased by $ 0.1 million to $ 0.1 million compared to zero in 2010 due to an increased foreign exchange gain from prior period . 34 income tax provision during the years ended december 31 , 2011 and 2010 , we recorded an income tax provision of $ 0.1 million and an income tax benefit of $ 0.1 million , respectively , related to foreign and state taxes . no material provision or benefit for income taxes was recorded in 2011 and 2010 , due to our recurring operating losses and the significant uncertainty regarding the realization of our net deferred tax assets , against which we have continued to record a full valuation allowance . 2010 compared with 2009 net revenue information about our net revenue for products and services for 2010 and 2009 is summarized below ( in millions ) : replace_table_token_6_th information about our net revenue for north america and international markets for 2010 and 2009 is summarized below ( in millions ) : replace_table_token_7_th net revenue increased 2 % or $ 2.5 million to $ 129.0 million for 2010 compared to $ 126.5 million for 2009. the increase in net revenue was primarily attributable to an increase in product revenue , which in 2010 increased 3 % or $ 3.7 million compared to 2009. the increase was primarily due to increased sales in our slms product portfolio related to the continued success of our mxk product launch . service revenue decreased 21 % or $ 1.2 million compared to 2009 , primarily due to a decrease in gross sales accompanied by the timing of services performed and revenue earned . service revenue represents revenue from maintenance and other services associated with product shipments . international net revenue increased 11 % or $ 7.9 million to $ 78.8 million in 2010 and represented 61 % of total net revenue compared with 56 % in 2009. the increase in international net revenue was primarily due to higher demand in latin america as a result of recent growth in demand for our products . in addition to the growth experienced in latin america , we experienced continued growth associated with one customer in the middle east ( etisalat ) that accounted for 24 % of net revenue in 2010. the increase in international net revenue was partially offset by a decrease in domestic net revenue of 10 % or $ 5.4 million to $ 50.2 million in 2010 compared to $ 55.6 million in 2009. the decrease was primarily the result of the continued weak economic conditions in the united states during 2010 . 35 etisalat accounted for 24 % and 19 % of net revenue in 2010 and 2009 , respectively . cost of revenue and gross profit total cost of revenue , including stock-based compensation , decreased $ 1.2 million or 2 % to $ 79.9 million for 2010 , compared to $ 81.1 million for 2009. total cost of revenue was 62 % of net revenue for 2010 , compared to 64 % of net revenue for 2009 , which resulted in an increase in gross profit percentage from 36 % in 2009 to 38 % in 2010. the gross margin increased as compared with prior periods primarily due to increased sales volume and the reduction in cost of revenue for the period resulting from greater sales of products with higher gross margin , such as our mxk products . research and product development expenses research and product development expenses decreased 4 % or $ 0.9 million to $ 21.2 million for 2010 compared to $ 22.1 million for 2009. the decrease was primarily due to a reduction in non-personnel expenses resulting from the introduction of our mxk product to the market mid-year 2009 causing a decrease in prototype and rework expenses of $ 0.7 million in 2010. sales and marketing expenses sales and marketing expenses increased 9 % or $ 2.0 million to $ 24.0 million for 2010 compared to $ 22.0 million for 2009. the increase was primarily attributable to increases in marketing expenses of $ 1.3 million as we continue to grow our brand awareness which included increases of $ 0.5 million in personnel-related costs and $ 0.8 million in non-personnel costs . in addition , overall sales and customer service expenses increased $ 0.7 million compared to 2009 , mainly due to increased personnel-related expenses , including $ 0.3 million of additional headcount expenses incurred to support operations in the middle east . general and administrative expenses general and administrative expenses remained flat at $ 9.9 million for both 2010 and 2009. there were continued reductions made in personnel-related costs of $ 0.3 million in 2010 compared to 2009 and $ 0.4 million in cost savings related to decreased property taxes resulting from our september 2010 sale of the oakland , california campus . these decreases were offset by a $ 0.2 million increase in software maintenance expenses , and $ 0.5 million increase in other miscellaneous expenses .
| liquidity and capital resources our operations are financed through a combination of our existing cash , cash equivalents , available credit facilities , and sales of equity and debt instruments , based on our operating requirements and market conditions . at december 31 , 2011 , cash and cash equivalents were $ 18.2 million compared to $ 21.2 million at december 31 , 2010. the decrease in cash and cash equivalents of $ 3.0 million was attributable to net cash used in operating activities and investing activities of $ 6.8 million and $ 1.4 million , respectively , offset by net cash provided by financing activities of $ 5.2 million . operating activities for fiscal year 2011 , net cash used in operating activities consisted of a net loss of $ 11.7 million , adjusted for non-cash charges totaling $ 9.6 million and an increase in operating assets totaling $ 4.7 million . the most significant components of the changes in net operating assets were an increase in accounts receivable of $ 3.8 million and a decrease in accrued and other liabilities of $ 4.4 million , partially offset by a decrease in inventories of $ 3.7 million . the increase in accounts receivable related to the timing of cash collections . the main driver for the decrease in accrued and other liabilities related to a decrease of $ 1.9 million related to payments made under the largo lease liability , as well as , a non-cash decrease of $ 0.8 million due to the continued amortization of our deferred gain and leasehold improvement liabilities in connection with our oakland campus . lastly , the decrease in inventories was primarily due to better utilization of inventory during 2011. for fiscal year 2010 , net cash provided by operating activities consisted of a net loss of $ 4.8 million , adjusted for non-cash charges totaling $ 2.7 million and a decrease in operating assets totaling $ 4.2 million . the most significant components of the changes in net operating assets were a decrease in accounts receivable of $ 6.6 million partially offset by a decrease in accounts payable of $ 3.1 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 operations are financed through a combination of our existing cash , cash equivalents , available credit facilities , and sales of equity and debt instruments , based on our operating requirements and market conditions . at december 31 , 2011 , cash and cash equivalents were $ 18.2 million compared to $ 21.2 million at december 31 , 2010. the decrease in cash and cash equivalents of $ 3.0 million was attributable to net cash used in operating activities and investing activities of $ 6.8 million and $ 1.4 million , respectively , offset by net cash provided by financing activities of $ 5.2 million . operating activities for fiscal year 2011 , net cash used in operating activities consisted of a net loss of $ 11.7 million , adjusted for non-cash charges totaling $ 9.6 million and an increase in operating assets totaling $ 4.7 million . the most significant components of the changes in net operating assets were an increase in accounts receivable of $ 3.8 million and a decrease in accrued and other liabilities of $ 4.4 million , partially offset by a decrease in inventories of $ 3.7 million . the increase in accounts receivable related to the timing of cash collections . the main driver for the decrease in accrued and other liabilities related to a decrease of $ 1.9 million related to payments made under the largo lease liability , as well as , a non-cash decrease of $ 0.8 million due to the continued amortization of our deferred gain and leasehold improvement liabilities in connection with our oakland campus . lastly , the decrease in inventories was primarily due to better utilization of inventory during 2011. for fiscal year 2010 , net cash provided by operating activities consisted of a net loss of $ 4.8 million , adjusted for non-cash charges totaling $ 2.7 million and a decrease in operating assets totaling $ 4.2 million . the most significant components of the changes in net operating assets were a decrease in accounts receivable of $ 6.6 million partially offset by a decrease in accounts payable of $ 3.1 million .
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Suspicious Activity Report : in 2009 , 2010 , and 2011 , we recognized additional gains of $ 0.2 million , $ 0.3 million , and $ 0.2 million , respectively , which were recorded in cost of revenue . we will continue to record additional gain in the future contingent upon attainment of certain earnout provisions . 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 . 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 . in those instances when revenue is recognized upon shipment to distributors , we use historical rates of return from the distributors to provide for estimated product returns . we accrue for warranty costs , sales returns and other allowances at the time of shipment based on historical experience and expected future costs . in october 2009 , the financial accounting standards board , or fasb , amended the accounting standards for multiple deliverable revenue arrangements to : ( i ) provide updated guidance on whether multiple deliverables exist , how the deliverables in an arrangement should be separated , and how the consideration should be allocated ; ( ii ) require an entity to allocate revenue in an arrangement using a best estimate of selling prices , or bsp , for deliverables if a vendor does not have vendor-specific objective evidence of selling price , or vsoe , or third-party evidence of selling price , or tpe ; and ( iii ) eliminate the use of the residual method and require an entity to allocate revenue using the relative selling price method . 28 we adopted the updated accounting standards on january 1 , 2011 on a prospective basis for applicable transactions originating or materially modified after december 31 , 2010. this guidance does not change the units of accounting for revenue transactions . our products and services qualify as separate units of accounting and are deemed to be non-contingent deliverables as our arrangements typically do not have any significant performance , cancellation , termination and refund type provisions . products are typically considered delivered upon shipment . revenue from services is recognized ratably over the period during which the services are to be performed . prior to the adoption of accounting standards update , or asu , 2009-13 , revenue recognition ( topic 605 ) : multiple-deliverable revenue arrangements , we established the fair value or tpe of services in multiple-element arrangements based primarily on sales prices when the products and services were sold separately . as such , we applied the residual method to allocate the arrangement fee between products and services . in limited circumstances , if fair value could not be established for undelivered elements , all of the revenue under the arrangement was deferred until those elements were delivered . upon adoption of asu 2009-13 , on january 1 , 2011 , we allocated revenue to products and services in such arrangements using the relative selling price method to recognize revenue when the basic revenue recognition criteria for each deliverable are met . we derive revenue primarily from stand-alone sales of our products . in certain cases , our products are sold along with services , which include education , training , installation , and or extended warranty services . we have established tpe for our training , education and installation services . story_separator_special_tag after determining there were indicators of impairment , we proceeded to test for impairment and concluded that an impairment charge was required . the impairment charges were incurred to write-down the value of our fixed assets to fair value , as discussed in note 4 of the consolidated financial statements . there were no similar impairment charges incurred in 2010. interest expense interest expense for 2011 decreased by $ 1.0 million to zero compared to $ 1.0 million in 2010 , primarily due to a decrease in outstanding debt balances and continued low interest rates during 2011. this includes the effect of our september 2010 extinguishment of debt associated with the sale of our oakland , california campus as discussed in note 7 of the consolidated financial statements . interest income interest income for 2011 remained consistent with 2010 due to low average balances of cash and cash equivalents and the continued low interest rates during 2011. other income other income for 2011 increased by $ 0.1 million to $ 0.1 million compared to zero in 2010 due to an increased foreign exchange gain from prior period . 34 income tax provision during the years ended december 31 , 2011 and 2010 , we recorded an income tax provision of $ 0.1 million and an income tax benefit of $ 0.1 million , respectively , related to foreign and state taxes . no material provision or benefit for income taxes was recorded in 2011 and 2010 , due to our recurring operating losses and the significant uncertainty regarding the realization of our net deferred tax assets , against which we have continued to record a full valuation allowance . 2010 compared with 2009 net revenue information about our net revenue for products and services for 2010 and 2009 is summarized below ( in millions ) : replace_table_token_6_th information about our net revenue for north america and international markets for 2010 and 2009 is summarized below ( in millions ) : replace_table_token_7_th net revenue increased 2 % or $ 2.5 million to $ 129.0 million for 2010 compared to $ 126.5 million for 2009. the increase in net revenue was primarily attributable to an increase in product revenue , which in 2010 increased 3 % or $ 3.7 million compared to 2009. the increase was primarily due to increased sales in our slms product portfolio related to the continued success of our mxk product launch . service revenue decreased 21 % or $ 1.2 million compared to 2009 , primarily due to a decrease in gross sales accompanied by the timing of services performed and revenue earned . service revenue represents revenue from maintenance and other services associated with product shipments . international net revenue increased 11 % or $ 7.9 million to $ 78.8 million in 2010 and represented 61 % of total net revenue compared with 56 % in 2009. the increase in international net revenue was primarily due to higher demand in latin america as a result of recent growth in demand for our products . in addition to the growth experienced in latin america , we experienced continued growth associated with one customer in the middle east ( etisalat ) that accounted for 24 % of net revenue in 2010. the increase in international net revenue was partially offset by a decrease in domestic net revenue of 10 % or $ 5.4 million to $ 50.2 million in 2010 compared to $ 55.6 million in 2009. the decrease was primarily the result of the continued weak economic conditions in the united states during 2010 . 35 etisalat accounted for 24 % and 19 % of net revenue in 2010 and 2009 , respectively . cost of revenue and gross profit total cost of revenue , including stock-based compensation , decreased $ 1.2 million or 2 % to $ 79.9 million for 2010 , compared to $ 81.1 million for 2009. total cost of revenue was 62 % of net revenue for 2010 , compared to 64 % of net revenue for 2009 , which resulted in an increase in gross profit percentage from 36 % in 2009 to 38 % in 2010. the gross margin increased as compared with prior periods primarily due to increased sales volume and the reduction in cost of revenue for the period resulting from greater sales of products with higher gross margin , such as our mxk products . research and product development expenses research and product development expenses decreased 4 % or $ 0.9 million to $ 21.2 million for 2010 compared to $ 22.1 million for 2009. the decrease was primarily due to a reduction in non-personnel expenses resulting from the introduction of our mxk product to the market mid-year 2009 causing a decrease in prototype and rework expenses of $ 0.7 million in 2010. sales and marketing expenses sales and marketing expenses increased 9 % or $ 2.0 million to $ 24.0 million for 2010 compared to $ 22.0 million for 2009. the increase was primarily attributable to increases in marketing expenses of $ 1.3 million as we continue to grow our brand awareness which included increases of $ 0.5 million in personnel-related costs and $ 0.8 million in non-personnel costs . in addition , overall sales and customer service expenses increased $ 0.7 million compared to 2009 , mainly due to increased personnel-related expenses , including $ 0.3 million of additional headcount expenses incurred to support operations in the middle east . general and administrative expenses general and administrative expenses remained flat at $ 9.9 million for both 2010 and 2009. there were continued reductions made in personnel-related costs of $ 0.3 million in 2010 compared to 2009 and $ 0.4 million in cost savings related to decreased property taxes resulting from our september 2010 sale of the oakland , california campus . these decreases were offset by a $ 0.2 million increase in software maintenance expenses , and $ 0.5 million increase in other miscellaneous expenses .
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2,656 | the acquisition of the rocketdyne business is conditioned upon , among other things , the receipt of required regulatory approvals and other customary closing conditions . subject to the satisfaction of these conditions , the acquisition is expected to close in the first half of 2013. if the acquisition is not completed , we will be required to pay a termination fee of up to $ 20.0 million in the event that the purchase agreement is terminated in certain circumstances . the rocketdyne business is the largest liquid rocket propulsion designer , developer , and manufacturer in the u.s. for more than 50 years , the rocketdyne business has set the standard in space propulsion design , development and manufacturing . the rocketdyne business has powered nearly all of nasa 's human-rated launch vehicles to date and has recorded more than 1,600 space launches . we believe the rocketdyne business acquisition will provide strategic value for the country , our customers , and our stakeholders . the combined enterprise will be better positioned to compete in a dynamic , highly competitive marketplace , and provide more affordable products for our customers . in addition , this transaction is expected to almost double our net sales and provide additional growth opportunities as we build upon the complementary capabilities of each legacy company . on january 28 , 2013 , we issued $ 460.0 million in aggregate principal amount of our 7 1 / 8 % notes . the 7 1 / 8 % notes were sold to qualified institutional buyers in accordance with rule 144a under the securities act and outside the u.s. in accordance with regulation s under the securities act . we intend to use the net proceeds of the 7 1 / 8 % notes offering to fund , in part , the proposed acquisition of the rocketdyne business , and to pay related fees and expenses . the proceeds from the 7 1 / 8 % notes offering were deposited into escrow pending the consummation of the proposed acquisition . if the acquisition is not consummated on or prior to july 21 , 2013 ( subject to a one-month extension upon satisfaction of certain conditions ) or upon the occurrence of certain other events , the 7 1 / 8 % notes will be subject to a special mandatory redemption at a price equal to 100 % of the issue price of the 7 1 / 8 % notes , plus accrued and unpaid interest , if any , to , but not including the date of the special mandatory redemption . see note 15 in notes to the consolidated financial statements . in connection with the financing of the acquisition , we also intend to borrow the $ 50 million new term loan under our senior credit facility , which is available in a single draw until 360 days after august 16 , 2012 to fund the acquisition ( or to be deposited in an account held by the administrative agent under our senior credit facility in anticipation of the acquisition ) . we expect to incur substantial expenses in connection with the acquisition and the integration of our operations with the rocketdyne business . we incurred $ 11.6 million of expenses related to the proposed acquisition of the rocketdyne business in fiscal 2012. there are a large number of processes , policies , procedures , operations , technologies and systems that must be integrated , including purchasing , accounting and finance , sales , payroll , pricing , marketing , and benefits . while we have assumed that a certain level of expenses will be incurred , there are many factors beyond our control that could affect the total amount or the timing of the integration expenses . moreover , many of the expenses that will be incurred are , by their nature , difficult to estimate . as of november 30 , 2012 , we classified our ldacs program as assets held for sale because we expect that we will be required to divest the ldacs product line in order to finalize the acquisition of the rocketdyne business . the net sales associated with the ldacs program totaled $ 34.3 million in fiscal 2012. see note 13 in notes to the consolidated financial statements . we are operating in an environment that is characterized by both increasing complexity in the global security environment , as well as continuing worldwide economic pressures . a significant component of our strategy in this environment is to focus on delivering excellent performance to our customers , driving improvements and efficiencies across our operations , and creating value through the enhancement and expansion of our business . some of the significant challenges we face are as follows : dependence upon government programs and contracts , future reductions or changes in u.s. government spending in our industry , integration of the possible rocketdyne business acquisition , environmental matters , capital structure , an underfunded pension plan , and implementation of our erp system . some of these matters are discussed in more detail below . 36 major customers the principal end user customers of our products and technology are agencies of the u.s. government . since a majority of our sales are , directly or indirectly , to the u.s. government , funding for the purchase of our products and services generally follows trends in u.s. aerospace and defense spending . customers that represented more than 10 % of net sales for the fiscal years presented are as follows : replace_table_token_11_th sales to the u.s. government and its agencies , including sales to our significant customers discussed above , were as follows ( dollars in millions ) : replace_table_token_12_th the standard missile program , which is included in the u.s. government sales , represented 25 % , 24 % , and 26 % of net sales for fiscal 2012 , 2011 , and 2010 , respectively . story_separator_special_tag during fiscal 2010 , we repurchased $ 77.8 million principal amount of our 2 1 / 4 % debentures at various prices ranging from 93.0 % of par to 98.975 % of par , plus accrued and unpaid interest using a portion of the net proceeds of our 4 1 / 16 % debentures issued in december 2009. a summary of our losses on the 2 1 / 4 % debentures repurchased during fiscal 2010 is as follows ( in millions ) : replace_table_token_22_th during fiscal 2010 , we repurchased $ 22.5 million principal amount of our 9 1 / 2 % notes at 102 % of par , plus accrued and unpaid interest using a portion of the net proceeds of our 4 1 / 16 % debentures issued in december 2009. a summary of our losses on the 9 1 / 2 % notes repurchased during fiscal 2010 is as follows ( in millions ) : replace_table_token_23_th interest expense replace_table_token_24_th * primary reason for change . the decrease in interest expense was primarily due to the repurchase of debt in fiscal 2012 and 2011. we repurchased $ 68.4 million of the outstanding 2 1 / 4 % debentures in fiscal 2011 and repurchased $ 75.0 million of the outstanding 9 1 / 2 % notes in fiscal 2012 . 43 * * primary reason for change . the decrease in interest expense was primarily due to lower average debt balances during fiscal 2011 compared to fiscal 2010 periods , including the repurchase of $ 22.5 million and $ 77.8 million of principal on the 9 1 / 2 % notes and 2 1 / 4 % debentures , respectively , in fiscal 2010. interest income replace_table_token_25_th * primary reason for change . the decrease in interest income was primarily due to lower average interest rates and cash balances in fiscal 2012 compared to fiscal 2011 . * * primary reason for change . the decline in interest income was primarily due to lower average interest rates during fiscal 2011 compared fiscal 2010 partially offset by higher average cash balances . income tax provision ( benefit ) replace_table_token_26_th a valuation allowance has been recorded to offset a substantial portion of our net deferred tax assets at november 30 , 2012 and 2011 to reflect the uncertainty of realization ( see discussion below ) . deferred tax assets and liabilities arise due to temporary differences in the basis of our assets and liabilities between financial statement accounting and income tax based accounting . changes in these temporary differences cause an increase or decrease to income taxes payable ; however , our net deferred tax balances do not change due to the valuation allowance on the deferred tax assets . a significant part of our effective tax rate is due to the current period change in these temporary differences which represent future tax income or deductions . the following table shows the reconciling items between the income tax provision ( benefit ) using the federal statutory rate and our reported income tax provision ( benefit ) . replace_table_token_27_th as of november 30 , 2012 and 2011 , the valuation allowance was $ 288.1 million and $ 211.1 million , respectively . a valuation allowance is required when it is more likely than not that all or a portion of deferred tax assets may not be realized . establishment and removal of a valuation allowance requires management to consider all positive and negative evidence and make a judgmental decision regarding the amount of valuation allowance required as of a reporting date . the weight given to the evidence is commensurate with the extent to which it can 44 be objectively verified . the more negative evidence that exists , the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed . additionally , in accordance with accounting standards , the effect of our proposed acquisition of the rocketdyne business has not been considered in the evaluation of the valuation allowance . in this evaluation , management has considered all available evidence , both positive and negative , including the following : our recent history of generating taxable income which has allowed for the utilization of net operating loss credits and tax credit carryfowards ; the existence of a three year cumulative comprehensive loss related to our defined benefit pension plan in the current and recent prior periods ; projections of our future results which reflect uncertainty over our ability to generate taxable income principally due to : ( i ) increased periodic pension expense in fiscal 2013 due to a decline in the discount rate utilized to value the pension obligation associated with our defined benefit pension plan and ( ii ) the lack of objective , verifiable evidence to predict future aerospace and defense spending associated with the budget control act of 2011 , including which governmental spending accounts may be subject to sequestration , the percentage reduction with respect thereto , and the latitude agencies will have in selecting specific expenditures to cut . as of november 30 , 2012 , the weight of the negative evidence , principally associated with the above uncertainties , outweighed the recent historical positive evidence regarding the likelihood that a substantial portion of the net deferred tax assets was realizable . depending on our ability to continue to generate taxable income and the resolution of the above uncertainties favorably , it is possible that the valuation allowance could be released during fiscal 2013 , which would materially and favorably affect our results of operations in the period of the reversal . management will continue to evaluate the ability to realize our net deferred tax assets and related valuation allowance on a quarterly basis . the american taxpayer relief act of 2012 passed in january 2013 , retroactively reinstated the federal research and development credit . as a result , we expect to
| liquidity and capital resources the change in cash and cash equivalents is summarized as follows : replace_table_token_40_th net cash provided by operating activities the $ 86.2 million of cash provided by operating activities in fiscal 2012 was primarily the result of the net loss adjusted for non-cash adjustments which generated $ 64.1 million of cash and an increase of $ 22.3 million in accounts payable which was primarily due to the timing of payments . the $ 76.8 million of cash provided by operating activities in fiscal 2011 was primarily the result of net income adjusted for non-cash adjustments which generated $ 85.6 million of cash partially offset by a net cash usage of $ 14.2 million related to environmental remediation and retirement benefit plans . the $ 148.1 million of cash provided by operating activities in fiscal 2010 was primarily the result of net income adjusted for non-cash adjustments which generated $ 90.1 million of cash and a $ 74.8 million increase in cash provided by working capital ( defined as accounts receivable , inventories , accounts payable , contract advances , income tax related , and other current assets and liabilities ) . the increase in working capital is due to the following : ( i ) an increase in contract advances of $ 44.0 million from prior year ; ( ii ) a decrease in inventories of $ 10.7 million primarily due to an increase in customer progress payments ; and ( iii ) an increase in collections on billed accounts receivables , resulting in a decrease in receivables days outstanding . net cash ( used in ) provided by investing activities during fiscal 2012 , we had capital expenditures of $ 37.2 million of which $ 14.9 million was related to our erp implementation . during fiscal 2011 and 2010 , we had capital expenditures of $ 21.1 million and $ 16.9 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 the change in cash and cash equivalents is summarized as follows : replace_table_token_40_th net cash provided by operating activities the $ 86.2 million of cash provided by operating activities in fiscal 2012 was primarily the result of the net loss adjusted for non-cash adjustments which generated $ 64.1 million of cash and an increase of $ 22.3 million in accounts payable which was primarily due to the timing of payments . the $ 76.8 million of cash provided by operating activities in fiscal 2011 was primarily the result of net income adjusted for non-cash adjustments which generated $ 85.6 million of cash partially offset by a net cash usage of $ 14.2 million related to environmental remediation and retirement benefit plans . the $ 148.1 million of cash provided by operating activities in fiscal 2010 was primarily the result of net income adjusted for non-cash adjustments which generated $ 90.1 million of cash and a $ 74.8 million increase in cash provided by working capital ( defined as accounts receivable , inventories , accounts payable , contract advances , income tax related , and other current assets and liabilities ) . the increase in working capital is due to the following : ( i ) an increase in contract advances of $ 44.0 million from prior year ; ( ii ) a decrease in inventories of $ 10.7 million primarily due to an increase in customer progress payments ; and ( iii ) an increase in collections on billed accounts receivables , resulting in a decrease in receivables days outstanding . net cash ( used in ) provided by investing activities during fiscal 2012 , we had capital expenditures of $ 37.2 million of which $ 14.9 million was related to our erp implementation . during fiscal 2011 and 2010 , we had capital expenditures of $ 21.1 million and $ 16.9 million , respectively .
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Suspicious Activity Report : the acquisition of the rocketdyne business is conditioned upon , among other things , the receipt of required regulatory approvals and other customary closing conditions . subject to the satisfaction of these conditions , the acquisition is expected to close in the first half of 2013. if the acquisition is not completed , we will be required to pay a termination fee of up to $ 20.0 million in the event that the purchase agreement is terminated in certain circumstances . the rocketdyne business is the largest liquid rocket propulsion designer , developer , and manufacturer in the u.s. for more than 50 years , the rocketdyne business has set the standard in space propulsion design , development and manufacturing . the rocketdyne business has powered nearly all of nasa 's human-rated launch vehicles to date and has recorded more than 1,600 space launches . we believe the rocketdyne business acquisition will provide strategic value for the country , our customers , and our stakeholders . the combined enterprise will be better positioned to compete in a dynamic , highly competitive marketplace , and provide more affordable products for our customers . in addition , this transaction is expected to almost double our net sales and provide additional growth opportunities as we build upon the complementary capabilities of each legacy company . on january 28 , 2013 , we issued $ 460.0 million in aggregate principal amount of our 7 1 / 8 % notes . the 7 1 / 8 % notes were sold to qualified institutional buyers in accordance with rule 144a under the securities act and outside the u.s. in accordance with regulation s under the securities act . we intend to use the net proceeds of the 7 1 / 8 % notes offering to fund , in part , the proposed acquisition of the rocketdyne business , and to pay related fees and expenses . the proceeds from the 7 1 / 8 % notes offering were deposited into escrow pending the consummation of the proposed acquisition . if the acquisition is not consummated on or prior to july 21 , 2013 ( subject to a one-month extension upon satisfaction of certain conditions ) or upon the occurrence of certain other events , the 7 1 / 8 % notes will be subject to a special mandatory redemption at a price equal to 100 % of the issue price of the 7 1 / 8 % notes , plus accrued and unpaid interest , if any , to , but not including the date of the special mandatory redemption . see note 15 in notes to the consolidated financial statements . in connection with the financing of the acquisition , we also intend to borrow the $ 50 million new term loan under our senior credit facility , which is available in a single draw until 360 days after august 16 , 2012 to fund the acquisition ( or to be deposited in an account held by the administrative agent under our senior credit facility in anticipation of the acquisition ) . we expect to incur substantial expenses in connection with the acquisition and the integration of our operations with the rocketdyne business . we incurred $ 11.6 million of expenses related to the proposed acquisition of the rocketdyne business in fiscal 2012. there are a large number of processes , policies , procedures , operations , technologies and systems that must be integrated , including purchasing , accounting and finance , sales , payroll , pricing , marketing , and benefits . while we have assumed that a certain level of expenses will be incurred , there are many factors beyond our control that could affect the total amount or the timing of the integration expenses . moreover , many of the expenses that will be incurred are , by their nature , difficult to estimate . as of november 30 , 2012 , we classified our ldacs program as assets held for sale because we expect that we will be required to divest the ldacs product line in order to finalize the acquisition of the rocketdyne business . the net sales associated with the ldacs program totaled $ 34.3 million in fiscal 2012. see note 13 in notes to the consolidated financial statements . we are operating in an environment that is characterized by both increasing complexity in the global security environment , as well as continuing worldwide economic pressures . a significant component of our strategy in this environment is to focus on delivering excellent performance to our customers , driving improvements and efficiencies across our operations , and creating value through the enhancement and expansion of our business . some of the significant challenges we face are as follows : dependence upon government programs and contracts , future reductions or changes in u.s. government spending in our industry , integration of the possible rocketdyne business acquisition , environmental matters , capital structure , an underfunded pension plan , and implementation of our erp system . some of these matters are discussed in more detail below . 36 major customers the principal end user customers of our products and technology are agencies of the u.s. government . since a majority of our sales are , directly or indirectly , to the u.s. government , funding for the purchase of our products and services generally follows trends in u.s. aerospace and defense spending . customers that represented more than 10 % of net sales for the fiscal years presented are as follows : replace_table_token_11_th sales to the u.s. government and its agencies , including sales to our significant customers discussed above , were as follows ( dollars in millions ) : replace_table_token_12_th the standard missile program , which is included in the u.s. government sales , represented 25 % , 24 % , and 26 % of net sales for fiscal 2012 , 2011 , and 2010 , respectively . story_separator_special_tag during fiscal 2010 , we repurchased $ 77.8 million principal amount of our 2 1 / 4 % debentures at various prices ranging from 93.0 % of par to 98.975 % of par , plus accrued and unpaid interest using a portion of the net proceeds of our 4 1 / 16 % debentures issued in december 2009. a summary of our losses on the 2 1 / 4 % debentures repurchased during fiscal 2010 is as follows ( in millions ) : replace_table_token_22_th during fiscal 2010 , we repurchased $ 22.5 million principal amount of our 9 1 / 2 % notes at 102 % of par , plus accrued and unpaid interest using a portion of the net proceeds of our 4 1 / 16 % debentures issued in december 2009. a summary of our losses on the 9 1 / 2 % notes repurchased during fiscal 2010 is as follows ( in millions ) : replace_table_token_23_th interest expense replace_table_token_24_th * primary reason for change . the decrease in interest expense was primarily due to the repurchase of debt in fiscal 2012 and 2011. we repurchased $ 68.4 million of the outstanding 2 1 / 4 % debentures in fiscal 2011 and repurchased $ 75.0 million of the outstanding 9 1 / 2 % notes in fiscal 2012 . 43 * * primary reason for change . the decrease in interest expense was primarily due to lower average debt balances during fiscal 2011 compared to fiscal 2010 periods , including the repurchase of $ 22.5 million and $ 77.8 million of principal on the 9 1 / 2 % notes and 2 1 / 4 % debentures , respectively , in fiscal 2010. interest income replace_table_token_25_th * primary reason for change . the decrease in interest income was primarily due to lower average interest rates and cash balances in fiscal 2012 compared to fiscal 2011 . * * primary reason for change . the decline in interest income was primarily due to lower average interest rates during fiscal 2011 compared fiscal 2010 partially offset by higher average cash balances . income tax provision ( benefit ) replace_table_token_26_th a valuation allowance has been recorded to offset a substantial portion of our net deferred tax assets at november 30 , 2012 and 2011 to reflect the uncertainty of realization ( see discussion below ) . deferred tax assets and liabilities arise due to temporary differences in the basis of our assets and liabilities between financial statement accounting and income tax based accounting . changes in these temporary differences cause an increase or decrease to income taxes payable ; however , our net deferred tax balances do not change due to the valuation allowance on the deferred tax assets . a significant part of our effective tax rate is due to the current period change in these temporary differences which represent future tax income or deductions . the following table shows the reconciling items between the income tax provision ( benefit ) using the federal statutory rate and our reported income tax provision ( benefit ) . replace_table_token_27_th as of november 30 , 2012 and 2011 , the valuation allowance was $ 288.1 million and $ 211.1 million , respectively . a valuation allowance is required when it is more likely than not that all or a portion of deferred tax assets may not be realized . establishment and removal of a valuation allowance requires management to consider all positive and negative evidence and make a judgmental decision regarding the amount of valuation allowance required as of a reporting date . the weight given to the evidence is commensurate with the extent to which it can 44 be objectively verified . the more negative evidence that exists , the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed . additionally , in accordance with accounting standards , the effect of our proposed acquisition of the rocketdyne business has not been considered in the evaluation of the valuation allowance . in this evaluation , management has considered all available evidence , both positive and negative , including the following : our recent history of generating taxable income which has allowed for the utilization of net operating loss credits and tax credit carryfowards ; the existence of a three year cumulative comprehensive loss related to our defined benefit pension plan in the current and recent prior periods ; projections of our future results which reflect uncertainty over our ability to generate taxable income principally due to : ( i ) increased periodic pension expense in fiscal 2013 due to a decline in the discount rate utilized to value the pension obligation associated with our defined benefit pension plan and ( ii ) the lack of objective , verifiable evidence to predict future aerospace and defense spending associated with the budget control act of 2011 , including which governmental spending accounts may be subject to sequestration , the percentage reduction with respect thereto , and the latitude agencies will have in selecting specific expenditures to cut . as of november 30 , 2012 , the weight of the negative evidence , principally associated with the above uncertainties , outweighed the recent historical positive evidence regarding the likelihood that a substantial portion of the net deferred tax assets was realizable . depending on our ability to continue to generate taxable income and the resolution of the above uncertainties favorably , it is possible that the valuation allowance could be released during fiscal 2013 , which would materially and favorably affect our results of operations in the period of the reversal . management will continue to evaluate the ability to realize our net deferred tax assets and related valuation allowance on a quarterly basis . the american taxpayer relief act of 2012 passed in january 2013 , retroactively reinstated the federal research and development credit . as a result , we expect to
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2,657 | furthermore , revenues related to our collaborative development activities are dependent upon the progress toward and the achievement of developmental milestones by us or our collaborative partners . 41 our operating expenses are also difficult to predict and depend on several factors . research and development expenses , drug manufacturing , and clinical research activities , depend on the ongoing requirements of our development programs , availability of capital and direction from regulatory agencies , which are difficult to predict . management may be able to control the timing and level of research and development and general and administrative expenses , but many of these expenditures will occur irrespective of our actions due to contractually committed activities and or payments . as a result of these factors , we believe that period to period comparisons are not necessarily meaningful and you should not rely on them as an indication of future performance . due to all of the foregoing factors , it is possible that our operating results will be below the expectations of market analysts and investors . in such event , the prevailing market price of our common stock could be materially adversely affected . overview we are a biotechnology company that designs , optimizes and develops novel drugs that block key enzymes involved in the pathogenesis of diseases . we focus on therapeutic areas with unmet medical needs that are of interest to us and aligned with our capabilities and expertise . our areas of interest and related development of drug candidates are determined by the scientific discoveries and the potential advantages that our experienced drug discovery group identifies , as well as by the associated potential commercial opportunity of those discoveries . we integrate the disciplines of biology , crystallography , medicinal chemistry and computer modeling to discover and develop small molecule pharmaceuticals through the process known as structure-guided drug design . our strategy is to create a sustainable portfolio of commercial products and drug candidates whereby we out-license rights to drug candidates in geographies or therapeutic areas where we do not intend to and or do not have the ability commercialize them . critical accounting policies and estimates the accompanying discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements and the related disclosures , which have been prepared in accordance with generally accepted accounting principles in the united states . the preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues , expenses and related disclosure of contingent assets and liabilities . we evaluate our estimates , judgments and the policies underlying these estimates on a periodic basis , as situations change and regularly discuss financial events , policies , and issues with members of our audit committee and our independent registered public accounting firm . we routinely evaluate our estimates and policies regarding revenue recognition , administration , inventory and manufacturing , taxes , stock-based compensation , research and development , consulting and other expenses and any associated liabilities . recent corporate highlights peramivir on february 24 , 2011 , barda/hhs awarded us a $ 55.0 million contract modification intended to fund completion of the phase 3 development of i.v . peramivir for the treatment of patients hospitalized with influenza . this contract modification brings the total award from barda/hhs to $ 234.8 million and extends the contract term by 24 months through december 31 , 2013. the contract , as it currently stands , provides for funding through completion of phase 3 and to support the filing of an nda to seek regulatory approval for i.v . peramivir in the u.s. through december 31 , 2011 , approximately $ 174.7 million has been recognized as revenue under this contract . this contract modification supports implementation of our proposed changes to our 301 clinical trial . significant changes to the 301 clinical trial are as follows : ( 1 ) modifying the primary efficacy analysis population of the study to focus on a subset of approximately 160 patients not treated with neuraminidase inhibitors as soc , in order to provide the greatest opportunity to demonstrate a statistically significant peramivir treatment effect ; 42 ( 2 ) increasing the total study target enrollment to approximately 600 subjects from the prior target of 445 subjects ; and ( 3 ) adding more clinical site locations in geographical regions where neuraminidase inhibitors are not widely used , including sites in india and possibly china . these changes are expected to increase the amount of time required to complete enrollment in this ongoing study . the actual time to reach completion of enrollment will depend on the prevalence and severity of influenza , as well as the ability of the more than 265 investigator sites to successfully enroll patients . in addition , we have agreed with the fda and barda/hhs to conduct a planned interim analysis in our 301 clinical trial , which includes a futility assessment . this analysis is scheduled to be conducted at the earlier of the conclusion of the 2012 southern hemisphere flu season or reaching 70 % of the current enrollment goal of 160 patients for the primary efficacy analysis population . if the interim analysis shows an efficacy trend in favor of peramivir , it is expected the clinical trial would continue toward either the current enrollment target or a higher target , depending on the trend . if , however , the new enrollment target to reach statistical significance is predicted to exceed 320 patients , we would expect to terminate the clinical trial and evaluate the data in hand . story_separator_special_tag our current and planned clinical trials plus the related development , manufacturing , regulatory approval process requirements and additional personnel resources and testing required for the continuing development of our drug candidates will consume significant capital resources and will increase our expenses . our expenses , revenues and burn rate could vary significantly depending on many factors , including our ability to raise additional capital , the development progress of our collaborative agreements for our drug candidates , the amount and timing of funding we receive from barda/hhs for peramivir , the amount of funding or assistance , if any , we receive from other governmental agencies or other new partnerships with third parties for the development of our drug candidates , the progress and results of our current and proposed clinical trials for our most advanced drug candidates , the progress made in the manufacturing of our lead drug candidates and the progression of our other programs . with the funds available at december 31 , 2011 and future amounts that are expected to be received from barda/hhs , and our other financing sources , we believe these resources will be sufficient to fund our operations through 2012. however , this is a forward-looking statement , and there may be changes that would consume available resources significantly before such time . our long-term capital requirements and the adequacy of our available funds will depend upon many factors , including : our ability to perform under the contract with barda/hhs and receive reimbursement ; the progress and magnitude of our research , drug discovery and development programs ; changes in existing collaborative relationships or government contracts ; our ability to establish additional collaborative relationships with academic institutions , biotechnology or pharmaceutical companies and governmental agencies or other third parties ; the extent to which our partners , including governmental agencies will share in the costs associated with the development of our programs or run the development programs themselves ; our ability to negotiate favorable development and marketing strategic alliances for certain drug candidates ; or a decision to build or expand internal development and commercial capabilities ; successful commercialization of marketed products by either us or a partner ; the scope and results of preclinical studies and clinical trials to identify and evaluate drug candidates ; our ability to engage sites and enroll subjects in our clinical trials ; the scope of manufacturing of our drug candidates to support our preclinical research and clinical trials ; increases in personnel and related costs to support the development of our drug candidates ; the scope of manufacturing of our drug substance and drug products required for future nda filings ; competitive and technological advances ; the time and costs involved in obtaining regulatory approvals ; and the costs involved in all aspects of intellectual property strategy and protection including the costs involved in preparing , filing , prosecuting , maintaining , defending and enforcing patent claims . we expect that we will be required to raise additional capital to complete the development and commercialization of our current drug candidates and we may seek to raise capital at any time we deem market conditions to be favorable . additional funding , whether through additional sales of equity or debt securities or collaborative or other arrangements with corporate partners or from other sources , including governmental 48 agencies in general and from the barda/hhs contract specifically , may not be available when needed or on terms acceptable to us . the issuance of preferred or common stock or convertible securities , with terms and prices significantly more favorable than those of the currently outstanding common stock , could have the effect of diluting or adversely affecting the holdings or rights of our existing stockholders . in addition , collaborative arrangements may require us to transfer certain material rights to such corporate partners . insufficient funds may require us to delay , scale-back or eliminate certain of our research and development programs . our future working capital requirements , including the need for additional working capital , will be largely determined by the advancement of our portfolio of drug candidates as well as rate of reimbursement by barda/hhs of our peramivir expenses . more specifically , our working capital requirements will be dependent on the number , magnitude , scope and timing of our development programs ; regulatory approval of our drug candidates ; obtaining and funding from collaborative partners ; the cost , timing and outcome of regulatory reviews , regulatory investigations , and changes in regulatory requirements ; the costs of obtaining patent protection for our drug candidates ; the timing and terms of business development activities ; the rate of technological advances relevant to our operations ; the efficiency of manufacturing processes developed on our behalf by third parties ; and the level of required administrative support for our daily operations . financial outlook for 2012 based upon planned strategic and development operations , we expect net operating cash usage to be in the range of $ 32 to $ 38 million , and expect our total operating expenses to be in the range of $ 57 to $ 69 million . our operating cash forecast excludes any potential cash inflows from out-licensing or other sources . our ability to remain within our operating expense and operating cash target ranges are subject to multiple factors , including unanticipated or additional general development and administrative costs and other factors described under the risk factors located elsewhere in this report . furthermore , these ranges are highly dependent on peramivir-related operating expenses , which are reimbursed by barda/hhs . our peramivir expenses are hard to predict and are largely a function of the rate of enrollment in the our ongoing 301 phase 3 clinical trial , which in turn is dependent on the prevalence and severity of influenza in
| liquidity and capital resources cash expenditures have exceeded revenues since our inception and we expect our 2012 operating expense to exceed our 2012 revenue . our operations have principally been funded through public offerings and private placements of equity securities ; cash from collaborative and other research and development agreements , including government contracts ; and to a lesser extent , the pharma notes financing . on february 24 , 2011 , we announced that barda/hhs had awarded us a $ 55.0 million contract modification intended to fund completion of the phase 3 development of i.v . peramivir , bringing the total award from barda/hhs to $ 234.8 million and extending the contract term by 24 months through december 2013. on march 9 , 2011 , we completed a $ 30.0 million pharma notes financing transaction designed to monetize certain future royalty and milestone payments under our license agreement with shionogi . we received net proceeds from this transaction of approximately $ 22.7 million . other sources of funding have included the following : other collaborative and other research and development agreements ; government grants ; equipment lease financing ; facility leases ; research grants ; and interest 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.
```liquidity and capital resources cash expenditures have exceeded revenues since our inception and we expect our 2012 operating expense to exceed our 2012 revenue . our operations have principally been funded through public offerings and private placements of equity securities ; cash from collaborative and other research and development agreements , including government contracts ; and to a lesser extent , the pharma notes financing . on february 24 , 2011 , we announced that barda/hhs had awarded us a $ 55.0 million contract modification intended to fund completion of the phase 3 development of i.v . peramivir , bringing the total award from barda/hhs to $ 234.8 million and extending the contract term by 24 months through december 2013. on march 9 , 2011 , we completed a $ 30.0 million pharma notes financing transaction designed to monetize certain future royalty and milestone payments under our license agreement with shionogi . we received net proceeds from this transaction of approximately $ 22.7 million . other sources of funding have included the following : other collaborative and other research and development agreements ; government grants ; equipment lease financing ; facility leases ; research grants ; and interest income .
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Suspicious Activity Report : furthermore , revenues related to our collaborative development activities are dependent upon the progress toward and the achievement of developmental milestones by us or our collaborative partners . 41 our operating expenses are also difficult to predict and depend on several factors . research and development expenses , drug manufacturing , and clinical research activities , depend on the ongoing requirements of our development programs , availability of capital and direction from regulatory agencies , which are difficult to predict . management may be able to control the timing and level of research and development and general and administrative expenses , but many of these expenditures will occur irrespective of our actions due to contractually committed activities and or payments . as a result of these factors , we believe that period to period comparisons are not necessarily meaningful and you should not rely on them as an indication of future performance . due to all of the foregoing factors , it is possible that our operating results will be below the expectations of market analysts and investors . in such event , the prevailing market price of our common stock could be materially adversely affected . overview we are a biotechnology company that designs , optimizes and develops novel drugs that block key enzymes involved in the pathogenesis of diseases . we focus on therapeutic areas with unmet medical needs that are of interest to us and aligned with our capabilities and expertise . our areas of interest and related development of drug candidates are determined by the scientific discoveries and the potential advantages that our experienced drug discovery group identifies , as well as by the associated potential commercial opportunity of those discoveries . we integrate the disciplines of biology , crystallography , medicinal chemistry and computer modeling to discover and develop small molecule pharmaceuticals through the process known as structure-guided drug design . our strategy is to create a sustainable portfolio of commercial products and drug candidates whereby we out-license rights to drug candidates in geographies or therapeutic areas where we do not intend to and or do not have the ability commercialize them . critical accounting policies and estimates the accompanying discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements and the related disclosures , which have been prepared in accordance with generally accepted accounting principles in the united states . the preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues , expenses and related disclosure of contingent assets and liabilities . we evaluate our estimates , judgments and the policies underlying these estimates on a periodic basis , as situations change and regularly discuss financial events , policies , and issues with members of our audit committee and our independent registered public accounting firm . we routinely evaluate our estimates and policies regarding revenue recognition , administration , inventory and manufacturing , taxes , stock-based compensation , research and development , consulting and other expenses and any associated liabilities . recent corporate highlights peramivir on february 24 , 2011 , barda/hhs awarded us a $ 55.0 million contract modification intended to fund completion of the phase 3 development of i.v . peramivir for the treatment of patients hospitalized with influenza . this contract modification brings the total award from barda/hhs to $ 234.8 million and extends the contract term by 24 months through december 31 , 2013. the contract , as it currently stands , provides for funding through completion of phase 3 and to support the filing of an nda to seek regulatory approval for i.v . peramivir in the u.s. through december 31 , 2011 , approximately $ 174.7 million has been recognized as revenue under this contract . this contract modification supports implementation of our proposed changes to our 301 clinical trial . significant changes to the 301 clinical trial are as follows : ( 1 ) modifying the primary efficacy analysis population of the study to focus on a subset of approximately 160 patients not treated with neuraminidase inhibitors as soc , in order to provide the greatest opportunity to demonstrate a statistically significant peramivir treatment effect ; 42 ( 2 ) increasing the total study target enrollment to approximately 600 subjects from the prior target of 445 subjects ; and ( 3 ) adding more clinical site locations in geographical regions where neuraminidase inhibitors are not widely used , including sites in india and possibly china . these changes are expected to increase the amount of time required to complete enrollment in this ongoing study . the actual time to reach completion of enrollment will depend on the prevalence and severity of influenza , as well as the ability of the more than 265 investigator sites to successfully enroll patients . in addition , we have agreed with the fda and barda/hhs to conduct a planned interim analysis in our 301 clinical trial , which includes a futility assessment . this analysis is scheduled to be conducted at the earlier of the conclusion of the 2012 southern hemisphere flu season or reaching 70 % of the current enrollment goal of 160 patients for the primary efficacy analysis population . if the interim analysis shows an efficacy trend in favor of peramivir , it is expected the clinical trial would continue toward either the current enrollment target or a higher target , depending on the trend . if , however , the new enrollment target to reach statistical significance is predicted to exceed 320 patients , we would expect to terminate the clinical trial and evaluate the data in hand . story_separator_special_tag our current and planned clinical trials plus the related development , manufacturing , regulatory approval process requirements and additional personnel resources and testing required for the continuing development of our drug candidates will consume significant capital resources and will increase our expenses . our expenses , revenues and burn rate could vary significantly depending on many factors , including our ability to raise additional capital , the development progress of our collaborative agreements for our drug candidates , the amount and timing of funding we receive from barda/hhs for peramivir , the amount of funding or assistance , if any , we receive from other governmental agencies or other new partnerships with third parties for the development of our drug candidates , the progress and results of our current and proposed clinical trials for our most advanced drug candidates , the progress made in the manufacturing of our lead drug candidates and the progression of our other programs . with the funds available at december 31 , 2011 and future amounts that are expected to be received from barda/hhs , and our other financing sources , we believe these resources will be sufficient to fund our operations through 2012. however , this is a forward-looking statement , and there may be changes that would consume available resources significantly before such time . our long-term capital requirements and the adequacy of our available funds will depend upon many factors , including : our ability to perform under the contract with barda/hhs and receive reimbursement ; the progress and magnitude of our research , drug discovery and development programs ; changes in existing collaborative relationships or government contracts ; our ability to establish additional collaborative relationships with academic institutions , biotechnology or pharmaceutical companies and governmental agencies or other third parties ; the extent to which our partners , including governmental agencies will share in the costs associated with the development of our programs or run the development programs themselves ; our ability to negotiate favorable development and marketing strategic alliances for certain drug candidates ; or a decision to build or expand internal development and commercial capabilities ; successful commercialization of marketed products by either us or a partner ; the scope and results of preclinical studies and clinical trials to identify and evaluate drug candidates ; our ability to engage sites and enroll subjects in our clinical trials ; the scope of manufacturing of our drug candidates to support our preclinical research and clinical trials ; increases in personnel and related costs to support the development of our drug candidates ; the scope of manufacturing of our drug substance and drug products required for future nda filings ; competitive and technological advances ; the time and costs involved in obtaining regulatory approvals ; and the costs involved in all aspects of intellectual property strategy and protection including the costs involved in preparing , filing , prosecuting , maintaining , defending and enforcing patent claims . we expect that we will be required to raise additional capital to complete the development and commercialization of our current drug candidates and we may seek to raise capital at any time we deem market conditions to be favorable . additional funding , whether through additional sales of equity or debt securities or collaborative or other arrangements with corporate partners or from other sources , including governmental 48 agencies in general and from the barda/hhs contract specifically , may not be available when needed or on terms acceptable to us . the issuance of preferred or common stock or convertible securities , with terms and prices significantly more favorable than those of the currently outstanding common stock , could have the effect of diluting or adversely affecting the holdings or rights of our existing stockholders . in addition , collaborative arrangements may require us to transfer certain material rights to such corporate partners . insufficient funds may require us to delay , scale-back or eliminate certain of our research and development programs . our future working capital requirements , including the need for additional working capital , will be largely determined by the advancement of our portfolio of drug candidates as well as rate of reimbursement by barda/hhs of our peramivir expenses . more specifically , our working capital requirements will be dependent on the number , magnitude , scope and timing of our development programs ; regulatory approval of our drug candidates ; obtaining and funding from collaborative partners ; the cost , timing and outcome of regulatory reviews , regulatory investigations , and changes in regulatory requirements ; the costs of obtaining patent protection for our drug candidates ; the timing and terms of business development activities ; the rate of technological advances relevant to our operations ; the efficiency of manufacturing processes developed on our behalf by third parties ; and the level of required administrative support for our daily operations . financial outlook for 2012 based upon planned strategic and development operations , we expect net operating cash usage to be in the range of $ 32 to $ 38 million , and expect our total operating expenses to be in the range of $ 57 to $ 69 million . our operating cash forecast excludes any potential cash inflows from out-licensing or other sources . our ability to remain within our operating expense and operating cash target ranges are subject to multiple factors , including unanticipated or additional general development and administrative costs and other factors described under the risk factors located elsewhere in this report . furthermore , these ranges are highly dependent on peramivir-related operating expenses , which are reimbursed by barda/hhs . our peramivir expenses are hard to predict and are largely a function of the rate of enrollment in the our ongoing 301 phase 3 clinical trial , which in turn is dependent on the prevalence and severity of influenza in
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2,658 | during fiscal 2019 , the company generated its highest annual revenue since its initial public offering and reported increases in headcount and backlog for the year . revenue increased 8.7 % from fiscal 2018 to fiscal 2019 primarily driven by continued strength in client demand , which led to increased client staff headcount , and an increase in client staff labor , as well as improved contract performance . revenue also benefited from higher billable expenses as compared to the prior year . operating income increased 15.9 % to $ 602.4 million in fiscal 2019 from $ 519.7 million in fiscal 2018 , which reflects an increase in operating margin to 9.0 % from 8.4 % in the comparable year . the increase in operating income was primarily driven by the same factors driving revenue growth as well as improved contract performance . during fiscal 2019 the company also benefited from an $ 11.2 million reduction in expense as a result of an amendment and associated revaluation of our long term disability plan liability . the company also incurred incremental legal costs during fiscal 2018 and 2019 in response to the u.s. department of justice investigation and matters which purport to relate to the investigation , a portion of which was offset by the receipt of insurance reimbursements . we expect to incur additional costs in the future . based on the information currently available , the company is not able to reasonably estimate the expected long-term incremental legal costs or amounts that may be reimbursed associated with this investigation and these related matters . 44 non-gaap measures we publicly disclose certain non-gaap financial measurements , including revenue , excluding billable expenses , adjusted operating income , adjusted ebitda , adjusted ebitda margin on revenue , adjusted ebitda margin on revenue , excluding billable expenses , adjusted net income , and adjusted diluted earnings per share , or adjusted diluted eps , because management uses these measures for business planning purposes , including to manage our business against internal projected results of operations and measure our performance . we view adjusted operating income , adjusted ebitda , adjusted ebitda margin on revenue , adjusted ebitda margin on revenue , excluding billable expenses , adjusted net income , and adjusted diluted eps as measures of our core operating business , which exclude the impact of the items detailed below , as these items are generally not operational in nature . these non-gaap measures also provide another basis for comparing period to period results by excluding potential differences caused by non-operational and unusual or non-recurring items . in addition , we use revenue , excluding billable expenses because it provides management useful information about the company 's operating performance by excluding the impact of costs that are not indicative of the level of productivity of our consulting staff headcount and our overall direct labor , which management believes provides useful information to our investors about our core operations . we also utilize and discuss free cash flow , because management uses this measure for business planning purposes , measuring the cash generating ability of the operating business , and measuring liquidity generally . we present these supplemental measures because we believe that these measures provide investors and securities analysts with important supplemental information with which to evaluate our performance , long-term earnings potential , or liquidity , as applicable , and to enable them to assess our performance on the same basis as management . these supplemental performance measurements may vary from and may not be comparable to similarly titled measures by other companies in our industry . revenue , excluding billable expenses , adjusted operating income , adjusted ebitda , adjusted ebitda margin on revenue , adjusted ebitda margin on revenue , excluding billable expenses , adjusted net income , adjusted diluted eps , and free cash flow are not recognized measurements under accounting principles generally accepted in the united states , or gaap , and when analyzing our performance or liquidity , as applicable , investors should ( i ) evaluate each adjustment in our reconciliation of revenue to revenue , excluding billable expenses , operating income to adjusted operating income , net income to adjusted ebitda , adjusted ebitda margin on revenue , adjusted ebitda margin on revenue , excluding billable expenses , adjusted net income and adjusted diluted earnings per share , and net cash provided by operating activities to free cash flow , ( ii ) use revenue , excluding billable expenses , adjusted operating income , adjusted ebitda , adjusted ebitda margin on revenue , adjusted ebitda margin on revenue , excluding billable expenses , adjusted net income , and adjusted diluted eps in addition to , and not as an alternative to , revenue , operating income , net income or diluted eps , as measures of operating results , each as defined under gaap and ( iii ) use free cash flow in addition to , and not as an alternative to , net cash provided by operating activities as a measure of liquidity , each as defined under gaap . we have defined the aforementioned non-gaap measures as follows : `` revenue , excluding billable expenses `` represents revenue less billable expenses . we use revenue , excluding billable expenses because it provides management useful information about the company 's operating performance by excluding the impact of costs that are not indicative of the level of productivity of our consulting staff headcount and our overall direct labor , which management believes provides useful information to our investors about our core operations . `` adjusted operating income `` represents operating income before : ( i ) adjustments related to the amortization of intangible assets resulting from the acquisition of our company by the carlyle group ( the “ carlyle acquisition ” ) , and ( ii ) transaction costs , fees , losses , and expenses , including fees associated with debt prepayments . story_separator_special_tag compared to time-and-materials and cost-reimbursable contracts , fixed-price contracts generally offer higher profit margin opportunities because we receive the full benefit of any cost savings but generally involve greater financial risk because we bear the impact of any cost overruns . in the aggregate , the contract type mix in our revenue for any given period will affect that period 's profitability . changes in contract type as a result of re-competes and new business could influence the percentage/mix in unanticipated ways . 50 the table below presents the percentage of total revenue for each type of contract : replace_table_token_10_th note : upon the adoption of topic 606 in fiscal 2019 , the contract type descriptions noted above have been aligned to the revenue by contract type descriptions found in note 3 to our accompanying consolidated financial statements . contract diversity and revenue mix we provide services to our clients through a large number of single award contracts , contract vehicles , and multiple award contract vehicles . most of our revenue is generated under indefinite delivery/indefinite quantity , or idiq , contract vehicles , which include multiple award government wide acquisition contract vehicles , or gwacs , and general services administration multiple award schedule contracts , or gsa schedules , and certain single award contracts . gwacs and gsa schedules are available to all u.s. government agencies . any number of contractors typically compete under multiple award idiq contract vehicles for task orders to provide particular services , and we earn revenue under these contract vehicles only to the extent that we are successful in the bidding process for task orders . no single task order under any idiq contract represented more than 3.8 % of our revenue in fiscal 2019 . no single definite contract accounted for more than 2.8 % of our revenue in fiscal 2019. we generate revenue under our contracts and task orders through our provision of services as both a prime contractor and subcontractor , as well as from the provision of services by subcontractors under contracts and task orders for which we act as the prime contractor . for fiscal 2019 , 2018 , and 2017 , 92 % , 91 % , and 91 % , respectively , of our revenue was generated by contracts and task orders for which we served as a prime contractor ; 8 % , 9 % , and 9 % , respectively , of our revenue was generated by contracts and task orders for which we served as a subcontractor ; and approximately 24 % , 25 % , and 25 % , respectively , of our revenue was generated by services provided by our subcontractors . the mix of these types of revenue affects our operating margin . substantially all of our operating margin is derived from direct consulting staff labor as the portion of our operating margin derived from fees we earn on services provided by our subcontractors is not significant . we view growth in direct consulting staff labor as the primary driver of earnings growth . direct consulting staff labor growth is driven by consulting staff headcount growth , after attrition , and total backlog growth . our people revenue from our contracts is derived from services delivered by consulting staff and , to a lesser extent , from our subcontractors . our ability to hire , retain , and deploy talent with skills appropriately aligned with client needs is critical to our ability to grow our revenue . we continuously evaluate whether our talent base is properly sized and appropriately compensated and contains an optimal mix of skills to be cost competitive and meet the rapidly evolving needs of our clients . we seek to achieve that result through recruitment and management of capacity and compensation . as of march 31 , 2019 , 2018 , and 2017 , we employed approximately 26,100 , 24,600 , and 23,300 people , respectively , of which approximately 23,400 , 22,100 , and 21,000 , respectively , were consulting staff . contract backlog we define backlog to include the following three components : funded backlog . funded backlog represents the revenue value of orders for services under existing contracts for which funding is appropriated or otherwise authorized less revenue previously recognized on these contracts . unfunded backlog . unfunded backlog represents the revenue value of orders ( including optional orders ) for services under existing contracts for which funding has not been appropriated or otherwise authorized . priced options . priced contract options represent 100 % of the revenue value of all future contract option periods under existing contracts that may be exercised at our clients ' option and for which funding has not been appropriated or otherwise authorized . our backlog does not include contracts that have been awarded but are currently under protest and also does not include any task orders under idiq contracts , except to the extent that task orders have been awarded to us under those contracts . 51 the following table summarizes the value of our contract backlog at the respective dates presented : replace_table_token_11_th our total backlog consists of remaining performance obligations , certain orders under contracts for which the period of performance has expired , and unexercised option period and other unexercised optional orders . as of march 31 , 2019 , the company has $ 5.8 billion of remaining performance obligations and we expect to recognize more than half of the remaining performance obligations as revenue over the next 12 months , and approximately three quarters over the next 24 months . the remainder is expected to be recognized thereafter . however , given the uncertainties discussed below , as well as the risks described in `` item 1a . risk factors `` , we can give no assurance that we will be able to convert our backlog into revenue in any particular period , if at all . our backlog includes orders under contracts
| net cash used in financing activities was $ 413.4 million in fiscal 2019 compared to $ 203.1 million in the prior year . the increase in net cash used in financing activities was primarily due to net proceeds of $ 343.3 million received in fiscal 2018 from the issuance of the senior notes . this was partially offset by $ 130 million in net borrowings on the revolving credit facility in fiscal 2018 as well as a $ 17.5 million decrease in share repurchases in fiscal 2019 as compared to the prior year . 60 dividends and share repurchases the company paid $ 0.80 in dividends per share to shareholders of record in fiscal 2019 . on may 28 , 2019 , the company announced a regular quarterly cash dividend in the amount of $ 0.23 per share . the quarterly dividend is payable on june 28 , 2019 to stockholders of record on june 14 , 2019. the following table summarizes the cash distributions recognized in the consolidated statement of cash flows : replace_table_token_14_th ( 1 ) amounts represent recurring dividends that were declared and paid for during each quarter of fiscal 2019 , 2018 , and 2017 , respectively . ( 2 ) dividend equivalents are distributions made to option holders equal to the previously declared special dividends . on december 12 , 2011 , the board of directors approved a $ 30.0 million share repurchase program , which was further increased by the board of directors on ( i ) january 27 , 2015 to $ 180.0 million , ( ii ) january 25 , 2017 to $ 410.0 million , ( iii ) november 2 , 2017 to $ 610.0 million and ( iv ) may 24 , 2018 to $ 910.0 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 used in financing activities was $ 413.4 million in fiscal 2019 compared to $ 203.1 million in the prior year . the increase in net cash used in financing activities was primarily due to net proceeds of $ 343.3 million received in fiscal 2018 from the issuance of the senior notes . this was partially offset by $ 130 million in net borrowings on the revolving credit facility in fiscal 2018 as well as a $ 17.5 million decrease in share repurchases in fiscal 2019 as compared to the prior year . 60 dividends and share repurchases the company paid $ 0.80 in dividends per share to shareholders of record in fiscal 2019 . on may 28 , 2019 , the company announced a regular quarterly cash dividend in the amount of $ 0.23 per share . the quarterly dividend is payable on june 28 , 2019 to stockholders of record on june 14 , 2019. the following table summarizes the cash distributions recognized in the consolidated statement of cash flows : replace_table_token_14_th ( 1 ) amounts represent recurring dividends that were declared and paid for during each quarter of fiscal 2019 , 2018 , and 2017 , respectively . ( 2 ) dividend equivalents are distributions made to option holders equal to the previously declared special dividends . on december 12 , 2011 , the board of directors approved a $ 30.0 million share repurchase program , which was further increased by the board of directors on ( i ) january 27 , 2015 to $ 180.0 million , ( ii ) january 25 , 2017 to $ 410.0 million , ( iii ) november 2 , 2017 to $ 610.0 million and ( iv ) may 24 , 2018 to $ 910.0 million .
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Suspicious Activity Report : during fiscal 2019 , the company generated its highest annual revenue since its initial public offering and reported increases in headcount and backlog for the year . revenue increased 8.7 % from fiscal 2018 to fiscal 2019 primarily driven by continued strength in client demand , which led to increased client staff headcount , and an increase in client staff labor , as well as improved contract performance . revenue also benefited from higher billable expenses as compared to the prior year . operating income increased 15.9 % to $ 602.4 million in fiscal 2019 from $ 519.7 million in fiscal 2018 , which reflects an increase in operating margin to 9.0 % from 8.4 % in the comparable year . the increase in operating income was primarily driven by the same factors driving revenue growth as well as improved contract performance . during fiscal 2019 the company also benefited from an $ 11.2 million reduction in expense as a result of an amendment and associated revaluation of our long term disability plan liability . the company also incurred incremental legal costs during fiscal 2018 and 2019 in response to the u.s. department of justice investigation and matters which purport to relate to the investigation , a portion of which was offset by the receipt of insurance reimbursements . we expect to incur additional costs in the future . based on the information currently available , the company is not able to reasonably estimate the expected long-term incremental legal costs or amounts that may be reimbursed associated with this investigation and these related matters . 44 non-gaap measures we publicly disclose certain non-gaap financial measurements , including revenue , excluding billable expenses , adjusted operating income , adjusted ebitda , adjusted ebitda margin on revenue , adjusted ebitda margin on revenue , excluding billable expenses , adjusted net income , and adjusted diluted earnings per share , or adjusted diluted eps , because management uses these measures for business planning purposes , including to manage our business against internal projected results of operations and measure our performance . we view adjusted operating income , adjusted ebitda , adjusted ebitda margin on revenue , adjusted ebitda margin on revenue , excluding billable expenses , adjusted net income , and adjusted diluted eps as measures of our core operating business , which exclude the impact of the items detailed below , as these items are generally not operational in nature . these non-gaap measures also provide another basis for comparing period to period results by excluding potential differences caused by non-operational and unusual or non-recurring items . in addition , we use revenue , excluding billable expenses because it provides management useful information about the company 's operating performance by excluding the impact of costs that are not indicative of the level of productivity of our consulting staff headcount and our overall direct labor , which management believes provides useful information to our investors about our core operations . we also utilize and discuss free cash flow , because management uses this measure for business planning purposes , measuring the cash generating ability of the operating business , and measuring liquidity generally . we present these supplemental measures because we believe that these measures provide investors and securities analysts with important supplemental information with which to evaluate our performance , long-term earnings potential , or liquidity , as applicable , and to enable them to assess our performance on the same basis as management . these supplemental performance measurements may vary from and may not be comparable to similarly titled measures by other companies in our industry . revenue , excluding billable expenses , adjusted operating income , adjusted ebitda , adjusted ebitda margin on revenue , adjusted ebitda margin on revenue , excluding billable expenses , adjusted net income , adjusted diluted eps , and free cash flow are not recognized measurements under accounting principles generally accepted in the united states , or gaap , and when analyzing our performance or liquidity , as applicable , investors should ( i ) evaluate each adjustment in our reconciliation of revenue to revenue , excluding billable expenses , operating income to adjusted operating income , net income to adjusted ebitda , adjusted ebitda margin on revenue , adjusted ebitda margin on revenue , excluding billable expenses , adjusted net income and adjusted diluted earnings per share , and net cash provided by operating activities to free cash flow , ( ii ) use revenue , excluding billable expenses , adjusted operating income , adjusted ebitda , adjusted ebitda margin on revenue , adjusted ebitda margin on revenue , excluding billable expenses , adjusted net income , and adjusted diluted eps in addition to , and not as an alternative to , revenue , operating income , net income or diluted eps , as measures of operating results , each as defined under gaap and ( iii ) use free cash flow in addition to , and not as an alternative to , net cash provided by operating activities as a measure of liquidity , each as defined under gaap . we have defined the aforementioned non-gaap measures as follows : `` revenue , excluding billable expenses `` represents revenue less billable expenses . we use revenue , excluding billable expenses because it provides management useful information about the company 's operating performance by excluding the impact of costs that are not indicative of the level of productivity of our consulting staff headcount and our overall direct labor , which management believes provides useful information to our investors about our core operations . `` adjusted operating income `` represents operating income before : ( i ) adjustments related to the amortization of intangible assets resulting from the acquisition of our company by the carlyle group ( the “ carlyle acquisition ” ) , and ( ii ) transaction costs , fees , losses , and expenses , including fees associated with debt prepayments . story_separator_special_tag compared to time-and-materials and cost-reimbursable contracts , fixed-price contracts generally offer higher profit margin opportunities because we receive the full benefit of any cost savings but generally involve greater financial risk because we bear the impact of any cost overruns . in the aggregate , the contract type mix in our revenue for any given period will affect that period 's profitability . changes in contract type as a result of re-competes and new business could influence the percentage/mix in unanticipated ways . 50 the table below presents the percentage of total revenue for each type of contract : replace_table_token_10_th note : upon the adoption of topic 606 in fiscal 2019 , the contract type descriptions noted above have been aligned to the revenue by contract type descriptions found in note 3 to our accompanying consolidated financial statements . contract diversity and revenue mix we provide services to our clients through a large number of single award contracts , contract vehicles , and multiple award contract vehicles . most of our revenue is generated under indefinite delivery/indefinite quantity , or idiq , contract vehicles , which include multiple award government wide acquisition contract vehicles , or gwacs , and general services administration multiple award schedule contracts , or gsa schedules , and certain single award contracts . gwacs and gsa schedules are available to all u.s. government agencies . any number of contractors typically compete under multiple award idiq contract vehicles for task orders to provide particular services , and we earn revenue under these contract vehicles only to the extent that we are successful in the bidding process for task orders . no single task order under any idiq contract represented more than 3.8 % of our revenue in fiscal 2019 . no single definite contract accounted for more than 2.8 % of our revenue in fiscal 2019. we generate revenue under our contracts and task orders through our provision of services as both a prime contractor and subcontractor , as well as from the provision of services by subcontractors under contracts and task orders for which we act as the prime contractor . for fiscal 2019 , 2018 , and 2017 , 92 % , 91 % , and 91 % , respectively , of our revenue was generated by contracts and task orders for which we served as a prime contractor ; 8 % , 9 % , and 9 % , respectively , of our revenue was generated by contracts and task orders for which we served as a subcontractor ; and approximately 24 % , 25 % , and 25 % , respectively , of our revenue was generated by services provided by our subcontractors . the mix of these types of revenue affects our operating margin . substantially all of our operating margin is derived from direct consulting staff labor as the portion of our operating margin derived from fees we earn on services provided by our subcontractors is not significant . we view growth in direct consulting staff labor as the primary driver of earnings growth . direct consulting staff labor growth is driven by consulting staff headcount growth , after attrition , and total backlog growth . our people revenue from our contracts is derived from services delivered by consulting staff and , to a lesser extent , from our subcontractors . our ability to hire , retain , and deploy talent with skills appropriately aligned with client needs is critical to our ability to grow our revenue . we continuously evaluate whether our talent base is properly sized and appropriately compensated and contains an optimal mix of skills to be cost competitive and meet the rapidly evolving needs of our clients . we seek to achieve that result through recruitment and management of capacity and compensation . as of march 31 , 2019 , 2018 , and 2017 , we employed approximately 26,100 , 24,600 , and 23,300 people , respectively , of which approximately 23,400 , 22,100 , and 21,000 , respectively , were consulting staff . contract backlog we define backlog to include the following three components : funded backlog . funded backlog represents the revenue value of orders for services under existing contracts for which funding is appropriated or otherwise authorized less revenue previously recognized on these contracts . unfunded backlog . unfunded backlog represents the revenue value of orders ( including optional orders ) for services under existing contracts for which funding has not been appropriated or otherwise authorized . priced options . priced contract options represent 100 % of the revenue value of all future contract option periods under existing contracts that may be exercised at our clients ' option and for which funding has not been appropriated or otherwise authorized . our backlog does not include contracts that have been awarded but are currently under protest and also does not include any task orders under idiq contracts , except to the extent that task orders have been awarded to us under those contracts . 51 the following table summarizes the value of our contract backlog at the respective dates presented : replace_table_token_11_th our total backlog consists of remaining performance obligations , certain orders under contracts for which the period of performance has expired , and unexercised option period and other unexercised optional orders . as of march 31 , 2019 , the company has $ 5.8 billion of remaining performance obligations and we expect to recognize more than half of the remaining performance obligations as revenue over the next 12 months , and approximately three quarters over the next 24 months . the remainder is expected to be recognized thereafter . however , given the uncertainties discussed below , as well as the risks described in `` item 1a . risk factors `` , we can give no assurance that we will be able to convert our backlog into revenue in any particular period , if at all . our backlog includes orders under contracts
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2,659 | , combined sales to governmental and academic customers grew in china and india but declined in all other regions . in 2015 , combined sales to governmental and academic customers grew in the u.s. and china but declined in all other regions . instrument system sales increased 4 % and 3 % in 2016 and 2015 , respectively , due to higher demand for lc and lc-ms instrument systems . this strength in demand was driven by hplc , uplc ® , acquity arc tm , qda ® and vion ® ims q-tof tm instrument systems , as well as other lc-ms systems that incorporate the company 's benchtop tandem quadrupole technologies . recurring revenues ( combined sales of chemistry consumables and services ) increased 8 % and 2 % in 2016 and 2015 , respectively , as a result of a larger installed base of customers and higher billing demand for service sales . foreign currency translation lowered the 2015 recurring revenues by 6 % . geographically , sales in asia increased 13 % and 9 % in 2016 and 2015 , respectively . the sales growth in asia was a result of the broad-based increase in china 's sales across all product and customer classes and the favorable effect of foreign currency in japan , where foreign currency translation increased sales by 12 % in 2016 after decreasing sales by 12 % in 2015. sales in the u.s. in 2016 increased 1 % after the u.s. delivered sales growth of 10 % in 2015 , when the company experienced greater demand for its products and services in the u.s. sales in europe and in the rest of the world increased by 4 % and 6 % , respectively , in 2016 as compared to an 8 % decline in both europe and the rest of the world sales in 2015. the negative effects of foreign currency translation on the 2016 sales growth in europe and the rest of the world was approximately 3 % , which was significantly less than the 14 % decrease in europe and the 5 % decrease in the rest of the world sales in 2015 , when the u.s. dollar strengthened substantially against all currencies throughout the world . operating income was $ 624 million in 2016 , an increase of 10 % as compared to 2015. this increase was primarily a result of the effect of higher sales volume achieved in 2016 and the positive impact of foreign currency translation on our u.k. manufacturing and research and development costs as a result of the significantly weaker british pound . operating income increased 10 % in 2015 as compared to 2014 as a result of higher sales volumes achieved in 2015 being partly offset by a $ 56 million reduction in operating income from the adverse effects of foreign currency translation . the company generated $ 629 million , $ 560 million and $ 512 million of net cash flows from operations in 2016 , 2015 and 2014 , respectively . the increases in operating cash flow in each year were primarily a result of the increase in sales and net income . cash flows used in investing activities included capital expenditures related to property , plant , equipment and software capitalization of $ 95 million , $ 100 million and $ 91 million in 2016 , 2015 and 2014 , respectively . in september 2016 , the company acquired rubotherm gmbh for approximately $ 6 million in cash and the company made payments of $ 3 million and $ 15 million to acquire and license intellectual property during 2015 and 2014 , respectively . these acquisitions did not have a significant impact on the company 's sales and profits in 2016. during 2016 and 2014 , the company issued and sold senior unsecured notes for an aggregate principal amount of $ 250 million and $ 200 million , respectively . during 2016 , 2015 and 2014 , the company repurchased $ 318 million , $ 327 million and $ 329 million of the company 's outstanding common stock , respectively , under 27 authorized share repurchase programs . the company believes that it has the financial flexibility to fund these share repurchases given current cash and investment levels and debt borrowing capacity , as well as to invest in research , technology and business acquisitions to further grow the company 's sales and profits . results of operations sales by geography geographic sales information is presented below for the years ended december 31 , 2016 , 2015 and 2014 ( in thousands ) : replace_table_token_6_th in 2016 , sales growth in the u.s. sales was driven by increases in recurring revenues , which were offset by declines in instrument systems sales . u.s. sales increased to pharmaceutical customers but declined to non-pharmaceutical end-markets . europe 's sales in 2016 were also driven by recurring revenues and primarily due to increases to pharmaceutical and industrial customers . china achieved strong sales growth in all product and customer classes in 2016 , with double-digit growth in lc-ms instrument systems and chemistry consumables as well as double-digit growth to pharmaceutical customers . japan 's increase in sales in 2016 was largely driven by the benefit of foreign currency translation , which increased sales by 12 % . the increase in sales in the rest of asia in 2016 was driven by lc-ms instrument systems and chemistry consumables sales to pharmaceutical and industrial customers . sales to the rest of asia decreased 6 % due to the negative effect of foreign currency translation . sales in the rest of the world in 2016 were broad-based across all product classes as sales increased to industrial customers but declined across all other customer classes . in 2015 , the u.s. sales growth was broad-based across all products and was driven by pharmaceutical and industrial customers . story_separator_special_tag the company accounts for its uncertain tax return reporting positions in accordance with the accounting standards for income taxes , which require financial statement reporting of the expected future tax consequences of uncertain tax reporting positions on the presumption that all concerned tax authorities possess full knowledge of those tax reporting positions , as well as all of the pertinent facts and circumstances , but prohibit any discounting of unrecognized tax benefits associated with those reporting positions for the time value of money . the company classified interest and penalties related to unrecognized tax benefits as a component of the 35 provision for income taxes . if all of the company 's unrecognized tax benefits accrued as of december 31 , 2016 were to become recognizable in the future , the company would record a total reduction of approximately $ 10 million in its income tax provision . with limited exceptions , the company is no longer subject to tax audit examinations in significant jurisdictions for the years ended on or before december 31 , 2012. however , carryforward tax attributes that were generated in years beginning on or before january 1 , 2013 may still be adjusted upon examination by tax authorities if the attributes are utilized . the company continuously monitors the lapsing of statutes of limitations on potential tax assessments for related changes in the measurement of unrecognized tax benefits , related net interest and penalties , and deferred tax assets and liabilities . during the year ended december 31 , 2016 , the company concluded tax audit disputes outside the u.s. that , in part , related to matters for which the company had recorded net uncertain tax benefits . the resolution of these tax disputes resulted in a $ 1 million reduction in the measurement of its unrecognized tax benefits for the year ended december 31 , 2016. during the year ended december 31 , 2015 , the company concluded u.s. tax audit disputes that , in part , related to matters for which the company had recorded net uncertain tax benefits . the resolution of these tax disputes resulted in a $ 2 million reduction in the measurement of its unrecognized tax benefits and a $ 2 million decrease in its provision for income taxes for the year ended december 31 , 2015. as of december 31 , 2016 , the company expects to record additional reductions in the measurement of its unrecognized tax benefits and related net interest and penalties of approximately $ 5 million within the next twelve months due to potential tax audit settlements and the lapsing of statutes of limitations on potential tax assessments . the company does not expect to record any other material reductions in the measurement of its unrecognized tax benefits within the next twelve months . the company has not paid any dividends and has no plans , at this time , to pay any dividends in the future . off-balance sheet arrangements the company has not created , and is not party to , any special-purpose or off-balance sheet entities for the purpose of raising capital , incurring debt or operating parts of its business that are not consolidated ( to the extent of the company 's ownership interest therein ) into the consolidated financial statements . the company has not entered into any transactions with unconsolidated entities whereby it has subordinated retained interests , derivative instruments or other contingent arrangements that expose the company to material continuing risks , contingent liabilities or any other obligation under a variable interest in an unconsolidated entity that provides financing , liquidity , market risk or credit risk support to the company . the company enters into standard indemnification agreements in its ordinary course of business . pursuant to these agreements , the company indemnifies , holds harmless and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party , generally the company 's business partners or customers , in connection with patent , copyright or other intellectual property infringement claims by any third party with respect to its current products , as well as claims relating to property damage or personal injury resulting from the performance of services by the company or its subcontractors . the maximum potential amount of future payments the company could be required to make under these indemnification agreements is unlimited . historically , the company 's costs to defend lawsuits or settle claims relating to such indemnity agreements have been minimal and management accordingly believes the estimated fair value of these agreements is immaterial . critical accounting policies and estimates summary the preparation of consolidated financial statements requires the company to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent 36 liabilities . critical accounting policies are those that are central to the presentation of the company 's financial condition and results of operations that require management to make estimates about matters that are highly uncertain and that would have a material impact on the company 's results of operations given changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that reasonably could have been used in the current period . on an ongoing basis , the company evaluates its policies and estimates . the company bases its estimates on historical experience and on various other assumptions that are believed to be 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 . actual amounts may differ from these estimates under different assumptions or conditions . there are other items within the company 's consolidated financial statements that require estimation , but are not deemed critical as defined above . changes in estimates used in these and other items could potentially have
| cash used in investing activities net cash used in investing activities totaled $ 488 million , $ 400 million and $ 402 million in 2016 , 2015 and 2014 , respectively . additions to fixed assets and capitalized software were $ 95 million , $ 100 million and $ 91 million in 2016 , 2015 and 2014 , respectively . during 2016 , 2015 and 2014 , the company purchased $ 2.4 billion , $ 2.0 billion and $ 2.2 billion of investments , respectively , while $ 2.0 billion , $ 1.7 billion and $ 1.9 billion of 32 investments matured , respectively . business acquisitions , net of cash acquired , were $ 6 million , $ 23 million and $ 27 million during 2016 , 2015 and 2014 , respectively . in 2016 , the company sold an equity investment for $ 4 million and , in 2015 , the company received $ 5 million cash from the sale of a building in the u.k. during 2015 and 2014 , the company made payments of $ 3 million and $ 15 million , respectively , to acquire and license intellectual property . cash used in financing activities the company issued and sold senior unsecured notes with an aggregate principal amount of $ 250 million and $ 200 million in may 2016 and june 2014 , respectively . the proceeds from the issuance of the senior unsecured notes in 2016 were used to repay existing debt and for general corporate purposes . interest on the fixed rate senior unsecured notes is payable semi-annually each year . interest on the floating rate senior unsecured notes is payable quarterly . the company may prepay all or some of the senior unsecured notes at any time in an amount not less than 10 % of the aggregate principal amount outstanding , plus the applicable make-whole amount or prepayment premium for series h senior unsecured notes .
| 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 investing activities net cash used in investing activities totaled $ 488 million , $ 400 million and $ 402 million in 2016 , 2015 and 2014 , respectively . additions to fixed assets and capitalized software were $ 95 million , $ 100 million and $ 91 million in 2016 , 2015 and 2014 , respectively . during 2016 , 2015 and 2014 , the company purchased $ 2.4 billion , $ 2.0 billion and $ 2.2 billion of investments , respectively , while $ 2.0 billion , $ 1.7 billion and $ 1.9 billion of 32 investments matured , respectively . business acquisitions , net of cash acquired , were $ 6 million , $ 23 million and $ 27 million during 2016 , 2015 and 2014 , respectively . in 2016 , the company sold an equity investment for $ 4 million and , in 2015 , the company received $ 5 million cash from the sale of a building in the u.k. during 2015 and 2014 , the company made payments of $ 3 million and $ 15 million , respectively , to acquire and license intellectual property . cash used in financing activities the company issued and sold senior unsecured notes with an aggregate principal amount of $ 250 million and $ 200 million in may 2016 and june 2014 , respectively . the proceeds from the issuance of the senior unsecured notes in 2016 were used to repay existing debt and for general corporate purposes . interest on the fixed rate senior unsecured notes is payable semi-annually each year . interest on the floating rate senior unsecured notes is payable quarterly . the company may prepay all or some of the senior unsecured notes at any time in an amount not less than 10 % of the aggregate principal amount outstanding , plus the applicable make-whole amount or prepayment premium for series h senior unsecured notes .
```
Suspicious Activity Report : , combined sales to governmental and academic customers grew in china and india but declined in all other regions . in 2015 , combined sales to governmental and academic customers grew in the u.s. and china but declined in all other regions . instrument system sales increased 4 % and 3 % in 2016 and 2015 , respectively , due to higher demand for lc and lc-ms instrument systems . this strength in demand was driven by hplc , uplc ® , acquity arc tm , qda ® and vion ® ims q-tof tm instrument systems , as well as other lc-ms systems that incorporate the company 's benchtop tandem quadrupole technologies . recurring revenues ( combined sales of chemistry consumables and services ) increased 8 % and 2 % in 2016 and 2015 , respectively , as a result of a larger installed base of customers and higher billing demand for service sales . foreign currency translation lowered the 2015 recurring revenues by 6 % . geographically , sales in asia increased 13 % and 9 % in 2016 and 2015 , respectively . the sales growth in asia was a result of the broad-based increase in china 's sales across all product and customer classes and the favorable effect of foreign currency in japan , where foreign currency translation increased sales by 12 % in 2016 after decreasing sales by 12 % in 2015. sales in the u.s. in 2016 increased 1 % after the u.s. delivered sales growth of 10 % in 2015 , when the company experienced greater demand for its products and services in the u.s. sales in europe and in the rest of the world increased by 4 % and 6 % , respectively , in 2016 as compared to an 8 % decline in both europe and the rest of the world sales in 2015. the negative effects of foreign currency translation on the 2016 sales growth in europe and the rest of the world was approximately 3 % , which was significantly less than the 14 % decrease in europe and the 5 % decrease in the rest of the world sales in 2015 , when the u.s. dollar strengthened substantially against all currencies throughout the world . operating income was $ 624 million in 2016 , an increase of 10 % as compared to 2015. this increase was primarily a result of the effect of higher sales volume achieved in 2016 and the positive impact of foreign currency translation on our u.k. manufacturing and research and development costs as a result of the significantly weaker british pound . operating income increased 10 % in 2015 as compared to 2014 as a result of higher sales volumes achieved in 2015 being partly offset by a $ 56 million reduction in operating income from the adverse effects of foreign currency translation . the company generated $ 629 million , $ 560 million and $ 512 million of net cash flows from operations in 2016 , 2015 and 2014 , respectively . the increases in operating cash flow in each year were primarily a result of the increase in sales and net income . cash flows used in investing activities included capital expenditures related to property , plant , equipment and software capitalization of $ 95 million , $ 100 million and $ 91 million in 2016 , 2015 and 2014 , respectively . in september 2016 , the company acquired rubotherm gmbh for approximately $ 6 million in cash and the company made payments of $ 3 million and $ 15 million to acquire and license intellectual property during 2015 and 2014 , respectively . these acquisitions did not have a significant impact on the company 's sales and profits in 2016. during 2016 and 2014 , the company issued and sold senior unsecured notes for an aggregate principal amount of $ 250 million and $ 200 million , respectively . during 2016 , 2015 and 2014 , the company repurchased $ 318 million , $ 327 million and $ 329 million of the company 's outstanding common stock , respectively , under 27 authorized share repurchase programs . the company believes that it has the financial flexibility to fund these share repurchases given current cash and investment levels and debt borrowing capacity , as well as to invest in research , technology and business acquisitions to further grow the company 's sales and profits . results of operations sales by geography geographic sales information is presented below for the years ended december 31 , 2016 , 2015 and 2014 ( in thousands ) : replace_table_token_6_th in 2016 , sales growth in the u.s. sales was driven by increases in recurring revenues , which were offset by declines in instrument systems sales . u.s. sales increased to pharmaceutical customers but declined to non-pharmaceutical end-markets . europe 's sales in 2016 were also driven by recurring revenues and primarily due to increases to pharmaceutical and industrial customers . china achieved strong sales growth in all product and customer classes in 2016 , with double-digit growth in lc-ms instrument systems and chemistry consumables as well as double-digit growth to pharmaceutical customers . japan 's increase in sales in 2016 was largely driven by the benefit of foreign currency translation , which increased sales by 12 % . the increase in sales in the rest of asia in 2016 was driven by lc-ms instrument systems and chemistry consumables sales to pharmaceutical and industrial customers . sales to the rest of asia decreased 6 % due to the negative effect of foreign currency translation . sales in the rest of the world in 2016 were broad-based across all product classes as sales increased to industrial customers but declined across all other customer classes . in 2015 , the u.s. sales growth was broad-based across all products and was driven by pharmaceutical and industrial customers . story_separator_special_tag the company accounts for its uncertain tax return reporting positions in accordance with the accounting standards for income taxes , which require financial statement reporting of the expected future tax consequences of uncertain tax reporting positions on the presumption that all concerned tax authorities possess full knowledge of those tax reporting positions , as well as all of the pertinent facts and circumstances , but prohibit any discounting of unrecognized tax benefits associated with those reporting positions for the time value of money . the company classified interest and penalties related to unrecognized tax benefits as a component of the 35 provision for income taxes . if all of the company 's unrecognized tax benefits accrued as of december 31 , 2016 were to become recognizable in the future , the company would record a total reduction of approximately $ 10 million in its income tax provision . with limited exceptions , the company is no longer subject to tax audit examinations in significant jurisdictions for the years ended on or before december 31 , 2012. however , carryforward tax attributes that were generated in years beginning on or before january 1 , 2013 may still be adjusted upon examination by tax authorities if the attributes are utilized . the company continuously monitors the lapsing of statutes of limitations on potential tax assessments for related changes in the measurement of unrecognized tax benefits , related net interest and penalties , and deferred tax assets and liabilities . during the year ended december 31 , 2016 , the company concluded tax audit disputes outside the u.s. that , in part , related to matters for which the company had recorded net uncertain tax benefits . the resolution of these tax disputes resulted in a $ 1 million reduction in the measurement of its unrecognized tax benefits for the year ended december 31 , 2016. during the year ended december 31 , 2015 , the company concluded u.s. tax audit disputes that , in part , related to matters for which the company had recorded net uncertain tax benefits . the resolution of these tax disputes resulted in a $ 2 million reduction in the measurement of its unrecognized tax benefits and a $ 2 million decrease in its provision for income taxes for the year ended december 31 , 2015. as of december 31 , 2016 , the company expects to record additional reductions in the measurement of its unrecognized tax benefits and related net interest and penalties of approximately $ 5 million within the next twelve months due to potential tax audit settlements and the lapsing of statutes of limitations on potential tax assessments . the company does not expect to record any other material reductions in the measurement of its unrecognized tax benefits within the next twelve months . the company has not paid any dividends and has no plans , at this time , to pay any dividends in the future . off-balance sheet arrangements the company has not created , and is not party to , any special-purpose or off-balance sheet entities for the purpose of raising capital , incurring debt or operating parts of its business that are not consolidated ( to the extent of the company 's ownership interest therein ) into the consolidated financial statements . the company has not entered into any transactions with unconsolidated entities whereby it has subordinated retained interests , derivative instruments or other contingent arrangements that expose the company to material continuing risks , contingent liabilities or any other obligation under a variable interest in an unconsolidated entity that provides financing , liquidity , market risk or credit risk support to the company . the company enters into standard indemnification agreements in its ordinary course of business . pursuant to these agreements , the company indemnifies , holds harmless and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party , generally the company 's business partners or customers , in connection with patent , copyright or other intellectual property infringement claims by any third party with respect to its current products , as well as claims relating to property damage or personal injury resulting from the performance of services by the company or its subcontractors . the maximum potential amount of future payments the company could be required to make under these indemnification agreements is unlimited . historically , the company 's costs to defend lawsuits or settle claims relating to such indemnity agreements have been minimal and management accordingly believes the estimated fair value of these agreements is immaterial . critical accounting policies and estimates summary the preparation of consolidated financial statements requires the company to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent 36 liabilities . critical accounting policies are those that are central to the presentation of the company 's financial condition and results of operations that require management to make estimates about matters that are highly uncertain and that would have a material impact on the company 's results of operations given changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that reasonably could have been used in the current period . on an ongoing basis , the company evaluates its policies and estimates . the company bases its estimates on historical experience and on various other assumptions that are believed to be 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 . actual amounts may differ from these estimates under different assumptions or conditions . there are other items within the company 's consolidated financial statements that require estimation , but are not deemed critical as defined above . changes in estimates used in these and other items could potentially have
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2,660 | we generally charge for services involving data extraction , manipulation , indexing , formatting and other similar services on a per file basis . for our data storage services , we typically charge the client a fee based on the amount of data to be stored and length of storage , as well as licensing fees for the third-party software applications we use to store and retrieve the data . we generally charge for our reprographics services on a page-by-page basis , depending on the level of difficulty involved in the photocopying , and for our other reprographics-related services on a time and materials basis . we typically charge for our printing services on a time and materials basis , depending on several factors , including whether the work involves electronic or print press printing , quantity of items printed , number of colors involved in the printing , quality of paper used and graphic design time . revenues from our segments vary from period to period depending on the volume and size of work orders received . our revenues can vary from period to period due to the impact of specific large jobs . currently , we derive our revenues primarily from law firms . today , approximately 3 % of our total revenues are recurring in nature . as we continue to diversify our service offerings and continue expanding into other markets , including healthcare , insurance , and government , we expect the period-to-period fluctuations in our revenues to decrease . cost of revenue includes expenses related to compensation and benefits to employees , occupancy costs , equipment costs , supplies , and other costs , which are directly related to providing goods and services to our clients . sales and marketing expense includes commissions , salaries , travel and entertainment and other costs related to our sales staff . administrative expense consists primarily of compensation and related benefits to executive management , accounting , human resources , and other administrative employees , communications costs , insurance costs , legal and accounting professional fees , and other costs incurred to provide support to our operating segments . recent events in january 2002 , the company completed the relocation of its arlington , virginia production facilities and headquarters to alexandria , virginia . the company purchased the property in alexandria , virginia in november 2000 , for a total purchase price of approximately $ 7.5 million , including a cash expenditure of approximately $ 1.7 million and a related mortgage of approximately $ 5.8 million . as a result of holding the alexandria property during 2001 in addition to leasing its arlington location , the company incurred significant costs for maintaining both locations . significant developments fiscal year 2002 during 2002 , the company opened several new offices around the country . offices were opened in the financial district of new york city in february and in the downtown area of washington , dc in may . as these offices are located closer to some of our clients , it gives us the ability to be competitive on smaller jobs which often require faster turn-around times . in august , offices were opened in chicago , illinois and wilmington , delaware . the wilmington office , focusing primarily on legal copy services , serves as a small production center to serve key accounts in the area with a faster , more efficient turn-around time , as well as to make our services available to new clients in the area . the chicago office is focusing on providing both imaging and reprographic services . in july 2002 , the company hired mary ann mayhew as executive vice president of government and professional services . in october 2002 , brian leydet who served as the company 's executive vice president of operations terminated employment with the company . martin lauzze who previously served as regional vice president replaced mr. leydet . as expected revenue growth did not materialize , the position of regional vice president of operations was eliminated . significant developments - fiscal year 2001 during october 2001 , the company opened an office in tempe , arizona . the opening of the arizona office was consistent with the company 's strategy of geographic expansion . the arizona office was expected to provide significant additional selling 14 opportunities and allow for market penetration into the west coast . in october 2002 , the company ceased production at its facility in arizona as a result of a strategic decision to focus on larger geographic markets for growth , and to minimize current losses . in december 2001 , the gsa awarded the company a federal supply schedule , which is effective until january 2006. federal supply schedules are centralized , government-wide acquisition contracts negotiated and awarded by the gsa . under our federal supply schedule , any u.s. federal government agency can procure services directly from us . we have begun marketing our document and information management services to document-intensive federal agencies . on-site 's government services division has developed a pipeline of new business opportunities . to date , a number of proposals have been submitted to various state and federal government agencies , as well as to federal government prime contractors . many of these opportunities represent potential multi-year contracts . however , many of the contract awards have not been made due to delays in approval of the government 's budget . to date , revenues derived under the gsa schedules are minimal . results of operations year ended december 31 , 2002 compared with the year ended december 31 , 2001 revenue revenue decreased approximately $ 2.3 million or 6.0 % , from approximately $ 39.5 million in 2001 to approximately $ 37.1 million in 2002. the company generates a large percentage of its revenue from law firms , which typically engage in large transactional matters involving mergers and acquisitions . story_separator_special_tag 121 , accounting for the impairment of long-lived assets and for long-lived assets to be disposed of and portions of accounting principles bulletin opinion no . 30 , reporting the results of operations. this standard provides a single accounting model for long-lived assets to be disposed of and significantly changes the criteria that would 18 have to be met to classify an asset as held-for-sale . classification as held-for-sale is an important distinction since such assets are not depreciated and are stated at the lower of fair value and carrying amount . this standard also requires expected future operating losses from discontinued operations to be displayed in the period ( s ) in which the losses are incurred , rather than as of the measurement date as presently required . the adoption of this standard at january 1 , 2002 did not have a material effect on the company 's financial position , results of operations or cash flows . in august 2002 , the fasb issued sfas no . 146 , accounting for costs associated with exit or disposal activities ( sfas no . 146 ) . it addresses financial accounting and reporting for costs associated with exit or disposal activities and nullified emerging issues task force ( eitf ) issue no . 94-3 , liability recognition for certain employee termination benefits and other costs to exit an activity ( including certain costs incurred in a restructuring ) . sfas no . 146 requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred and establishes that fair value is the objective for initial measurement of the liability . under eitf issue no . 94-3 , a liability for an exit cost is recognized at the date of an entity 's commitment to an exit plan . the new standard is effective for exit or disposal activities that are initiated after december 31 , 2002. the company does not believe sfas no . 146 will have a material effect on the company 's financial position , results of operations or cash flows . in november 2002 , the fasb issued fasb interpretation no . 45 , guarantor 's accounting and disclosure requirements for guarantees , including indirect guarantees of indebtedness of others ( fin 45 ) . fin 45 requires that upon issuance of a guarantee , a guarantor must recognize a liability for the fair value of an obligation assumed under a guarantee . fin 45 also requires additional disclosures by a guarantor in its interim and annual financial statements about the obligations associated with guarantees issued . the recognition provisions of fin 45 are effective for any guarantees issued or modified after december 31 , 2002. the disclosure requirements are effective for financial statements of interim or annual periods ending after december 15 , 2002. the adoption of fin45 is not expected to have a material effect on the company 's financial position , results of operations , or cash flows . in december 2002 , the fasb issued sfas no . 148 , accounting for stock-based compensation transition and disclosure ( sfas no . 148 ) . sfas no . 148 amends sfas no . 123 accounting for stock-based compensation ( sfas no . 123 ) to provide alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee compensation . in addition , sfas no . 148 amends the disclosure requirements of sfas no . 123 to require prominent disclosures in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the method used on reported results . sfas no . 148 is effective for fiscal years beginning after december 15 , 2002. the interim disclosure provisions are effective for financial reports containing financial statements for interim periods beginning after december 15 , 2002. the company does not expect the adoption of sfas no . 148 to have a material effect on its financial position , results of operations , or cash flows . story_separator_special_tag 1.0in ; text-indent : -.25in ; `` > 2001 cash flows were positively affected by approximately $ 1.7 million as a result of an overall decrease in accounts receivable balances from december 31 , 2000 to december 31 , 2001. accounts receivable balances from december 31 , 2001 to december 31 , 2002 increased slightly . accounts payable balances decreased by approximately $ 772,000 from december 31 , 2001 to december 31 , 2002 as a result of the company taking advantage of early payment discounts . net cash flows used in investing activities increased approximately $ 380,000 to approximately $ 2.4 million in 2002 compared to approximately $ 2.0 million in 2001. the increase is due to capital expenditures for improvements to the company 's new alexandria , va office and purchases of equipment , including high-value data storage equipment for use in our imaging segment . the company anticipates that future requirements for capital expenditures will include capital expenditures incurred during the ordinary course of business , including costs related to our anticipated geographic expansion , investment in high-end data storage equipment , and improvements related to our alexandria , virginia facility . we anticipate our capital expenditures for 2003 will be between $ 1.5 million 20 and $ 2.0 million . we expect to fund such capital expenditures with cash generated from operating activities and funding from our line of credit . we currently do not have plans to enter into any financing type arrangements . critical accounting policies and significant estimates the preparation of financial statements in conformity with accounting principles generally accepted in the united states of america requires estimates and assumptions that affect the reported amounts of assets and liabilities , revenue and expenses , and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes . the u.s. securities and exchange
| liquidity and capital resources we have funded our expansion by utilizing internally generated cash flow , long term financing , and a short-term commercial line of credit . for our short-term liquidity , we rely on our line of credit , the availability of which depends on the company 's accounts receivable balances , and cash flows from operations . the company may experience an inability to meet its capital requirements if any one or a combination of the following occur : significant losses from operations , significant decrease in revenues , default of certain line of credit covenants , causing the line of credit to be due on demand , or the default by customers , or a group of customers , with significant accounts receivable balances owed to the company . we anticipate the cash flow from operations and credit facilities will be sufficient to meet the expected cash requirements for the next twelve months . there can be no assurances that unforeseen events may not require more working capital than we have at our disposal . in order to meet its capital requirements , the company may seek additional sources of financing . these may include collateral-based loans , capital leases , and operating leases . as of december 31 , 2002 we had approximately $ 4,300 in cash and working capital of approximately $ 1.9 million . in order to assure additional working capital is available to fund our operations , we had available a $ 7,000,000 working capital line of credit as of december 31 , 2002. the company has the capacity to borrow , at any given time , the lesser of the established line of credit or eligible accounts receivable , generally defined as 75 % of accounts receivable that are less than 120 days old . as of december 31 , 2002 we had available approximately $ 2.6 million under the line of credit . the working capital line of credit bears interest at the lesser of the bank 's prime rate of interest or the 30-day libor plus 2.20 % .
| 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 expansion by utilizing internally generated cash flow , long term financing , and a short-term commercial line of credit . for our short-term liquidity , we rely on our line of credit , the availability of which depends on the company 's accounts receivable balances , and cash flows from operations . the company may experience an inability to meet its capital requirements if any one or a combination of the following occur : significant losses from operations , significant decrease in revenues , default of certain line of credit covenants , causing the line of credit to be due on demand , or the default by customers , or a group of customers , with significant accounts receivable balances owed to the company . we anticipate the cash flow from operations and credit facilities will be sufficient to meet the expected cash requirements for the next twelve months . there can be no assurances that unforeseen events may not require more working capital than we have at our disposal . in order to meet its capital requirements , the company may seek additional sources of financing . these may include collateral-based loans , capital leases , and operating leases . as of december 31 , 2002 we had approximately $ 4,300 in cash and working capital of approximately $ 1.9 million . in order to assure additional working capital is available to fund our operations , we had available a $ 7,000,000 working capital line of credit as of december 31 , 2002. the company has the capacity to borrow , at any given time , the lesser of the established line of credit or eligible accounts receivable , generally defined as 75 % of accounts receivable that are less than 120 days old . as of december 31 , 2002 we had available approximately $ 2.6 million under the line of credit . the working capital line of credit bears interest at the lesser of the bank 's prime rate of interest or the 30-day libor plus 2.20 % .
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Suspicious Activity Report : we generally charge for services involving data extraction , manipulation , indexing , formatting and other similar services on a per file basis . for our data storage services , we typically charge the client a fee based on the amount of data to be stored and length of storage , as well as licensing fees for the third-party software applications we use to store and retrieve the data . we generally charge for our reprographics services on a page-by-page basis , depending on the level of difficulty involved in the photocopying , and for our other reprographics-related services on a time and materials basis . we typically charge for our printing services on a time and materials basis , depending on several factors , including whether the work involves electronic or print press printing , quantity of items printed , number of colors involved in the printing , quality of paper used and graphic design time . revenues from our segments vary from period to period depending on the volume and size of work orders received . our revenues can vary from period to period due to the impact of specific large jobs . currently , we derive our revenues primarily from law firms . today , approximately 3 % of our total revenues are recurring in nature . as we continue to diversify our service offerings and continue expanding into other markets , including healthcare , insurance , and government , we expect the period-to-period fluctuations in our revenues to decrease . cost of revenue includes expenses related to compensation and benefits to employees , occupancy costs , equipment costs , supplies , and other costs , which are directly related to providing goods and services to our clients . sales and marketing expense includes commissions , salaries , travel and entertainment and other costs related to our sales staff . administrative expense consists primarily of compensation and related benefits to executive management , accounting , human resources , and other administrative employees , communications costs , insurance costs , legal and accounting professional fees , and other costs incurred to provide support to our operating segments . recent events in january 2002 , the company completed the relocation of its arlington , virginia production facilities and headquarters to alexandria , virginia . the company purchased the property in alexandria , virginia in november 2000 , for a total purchase price of approximately $ 7.5 million , including a cash expenditure of approximately $ 1.7 million and a related mortgage of approximately $ 5.8 million . as a result of holding the alexandria property during 2001 in addition to leasing its arlington location , the company incurred significant costs for maintaining both locations . significant developments fiscal year 2002 during 2002 , the company opened several new offices around the country . offices were opened in the financial district of new york city in february and in the downtown area of washington , dc in may . as these offices are located closer to some of our clients , it gives us the ability to be competitive on smaller jobs which often require faster turn-around times . in august , offices were opened in chicago , illinois and wilmington , delaware . the wilmington office , focusing primarily on legal copy services , serves as a small production center to serve key accounts in the area with a faster , more efficient turn-around time , as well as to make our services available to new clients in the area . the chicago office is focusing on providing both imaging and reprographic services . in july 2002 , the company hired mary ann mayhew as executive vice president of government and professional services . in october 2002 , brian leydet who served as the company 's executive vice president of operations terminated employment with the company . martin lauzze who previously served as regional vice president replaced mr. leydet . as expected revenue growth did not materialize , the position of regional vice president of operations was eliminated . significant developments - fiscal year 2001 during october 2001 , the company opened an office in tempe , arizona . the opening of the arizona office was consistent with the company 's strategy of geographic expansion . the arizona office was expected to provide significant additional selling 14 opportunities and allow for market penetration into the west coast . in october 2002 , the company ceased production at its facility in arizona as a result of a strategic decision to focus on larger geographic markets for growth , and to minimize current losses . in december 2001 , the gsa awarded the company a federal supply schedule , which is effective until january 2006. federal supply schedules are centralized , government-wide acquisition contracts negotiated and awarded by the gsa . under our federal supply schedule , any u.s. federal government agency can procure services directly from us . we have begun marketing our document and information management services to document-intensive federal agencies . on-site 's government services division has developed a pipeline of new business opportunities . to date , a number of proposals have been submitted to various state and federal government agencies , as well as to federal government prime contractors . many of these opportunities represent potential multi-year contracts . however , many of the contract awards have not been made due to delays in approval of the government 's budget . to date , revenues derived under the gsa schedules are minimal . results of operations year ended december 31 , 2002 compared with the year ended december 31 , 2001 revenue revenue decreased approximately $ 2.3 million or 6.0 % , from approximately $ 39.5 million in 2001 to approximately $ 37.1 million in 2002. the company generates a large percentage of its revenue from law firms , which typically engage in large transactional matters involving mergers and acquisitions . story_separator_special_tag 121 , accounting for the impairment of long-lived assets and for long-lived assets to be disposed of and portions of accounting principles bulletin opinion no . 30 , reporting the results of operations. this standard provides a single accounting model for long-lived assets to be disposed of and significantly changes the criteria that would 18 have to be met to classify an asset as held-for-sale . classification as held-for-sale is an important distinction since such assets are not depreciated and are stated at the lower of fair value and carrying amount . this standard also requires expected future operating losses from discontinued operations to be displayed in the period ( s ) in which the losses are incurred , rather than as of the measurement date as presently required . the adoption of this standard at january 1 , 2002 did not have a material effect on the company 's financial position , results of operations or cash flows . in august 2002 , the fasb issued sfas no . 146 , accounting for costs associated with exit or disposal activities ( sfas no . 146 ) . it addresses financial accounting and reporting for costs associated with exit or disposal activities and nullified emerging issues task force ( eitf ) issue no . 94-3 , liability recognition for certain employee termination benefits and other costs to exit an activity ( including certain costs incurred in a restructuring ) . sfas no . 146 requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred and establishes that fair value is the objective for initial measurement of the liability . under eitf issue no . 94-3 , a liability for an exit cost is recognized at the date of an entity 's commitment to an exit plan . the new standard is effective for exit or disposal activities that are initiated after december 31 , 2002. the company does not believe sfas no . 146 will have a material effect on the company 's financial position , results of operations or cash flows . in november 2002 , the fasb issued fasb interpretation no . 45 , guarantor 's accounting and disclosure requirements for guarantees , including indirect guarantees of indebtedness of others ( fin 45 ) . fin 45 requires that upon issuance of a guarantee , a guarantor must recognize a liability for the fair value of an obligation assumed under a guarantee . fin 45 also requires additional disclosures by a guarantor in its interim and annual financial statements about the obligations associated with guarantees issued . the recognition provisions of fin 45 are effective for any guarantees issued or modified after december 31 , 2002. the disclosure requirements are effective for financial statements of interim or annual periods ending after december 15 , 2002. the adoption of fin45 is not expected to have a material effect on the company 's financial position , results of operations , or cash flows . in december 2002 , the fasb issued sfas no . 148 , accounting for stock-based compensation transition and disclosure ( sfas no . 148 ) . sfas no . 148 amends sfas no . 123 accounting for stock-based compensation ( sfas no . 123 ) to provide alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee compensation . in addition , sfas no . 148 amends the disclosure requirements of sfas no . 123 to require prominent disclosures in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the method used on reported results . sfas no . 148 is effective for fiscal years beginning after december 15 , 2002. the interim disclosure provisions are effective for financial reports containing financial statements for interim periods beginning after december 15 , 2002. the company does not expect the adoption of sfas no . 148 to have a material effect on its financial position , results of operations , or cash flows . story_separator_special_tag 1.0in ; text-indent : -.25in ; `` > 2001 cash flows were positively affected by approximately $ 1.7 million as a result of an overall decrease in accounts receivable balances from december 31 , 2000 to december 31 , 2001. accounts receivable balances from december 31 , 2001 to december 31 , 2002 increased slightly . accounts payable balances decreased by approximately $ 772,000 from december 31 , 2001 to december 31 , 2002 as a result of the company taking advantage of early payment discounts . net cash flows used in investing activities increased approximately $ 380,000 to approximately $ 2.4 million in 2002 compared to approximately $ 2.0 million in 2001. the increase is due to capital expenditures for improvements to the company 's new alexandria , va office and purchases of equipment , including high-value data storage equipment for use in our imaging segment . the company anticipates that future requirements for capital expenditures will include capital expenditures incurred during the ordinary course of business , including costs related to our anticipated geographic expansion , investment in high-end data storage equipment , and improvements related to our alexandria , virginia facility . we anticipate our capital expenditures for 2003 will be between $ 1.5 million 20 and $ 2.0 million . we expect to fund such capital expenditures with cash generated from operating activities and funding from our line of credit . we currently do not have plans to enter into any financing type arrangements . critical accounting policies and significant estimates the preparation of financial statements in conformity with accounting principles generally accepted in the united states of america requires estimates and assumptions that affect the reported amounts of assets and liabilities , revenue and expenses , and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes . the u.s. securities and exchange
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2,661 | see properties – proved reserves under part i , item 2 ; selected financial data under part ii , item 6 and financial statements and supplementary data – note 20 – supplemental oil and gas disclosures under part ii , item 8 in this form 10-k for additional information on our proved reserves . our drilling efforts in recent years have included the deepwater of the gulf of mexico . production from our deepwater fields represented 41 % , 42 % , and 46 % of our total production for the years 2018 , 2017 , and 2016 , respectively . one of our larger deepwater fields is the big bend field , which commenced production in late 2015. over 90 % of our reserves in this field are composed of oil and ngls on a boe basis . as of december 31 , 2018 , the big bend field was in our top ten fields based on reserves , net to our interest , on a boe basis . 53 to provide additional financial flexibility , we created the jv drilling program during 2018 and initiated drilling on several of the projects . the jv drilling program enables w & t to receive returns on its investment on a promoted basis and enables private investors to participate in 14 drilling projects . it also allows more projects to be taken on which leverages our capital expenditures and diversifies our risk . during 2018 , there were four wells in the jv drilling program that came on production . in addition , as of december 31 , 2018 , one well was being drilled and one well was in the completion stage . the current plan is to complete the 14 projects within a three-year period , but is subject to change as needed with any required approval of the other investors . see financial statements and supplementary data – note 4 – joint venture drilling program under part ii , item 8 in this form 10-k for additional information on the jv drilling program . in october 2018 , we entered into a series of transactions to effect a refinancing of substantially all of our outstanding indebtedness . at that time , we issued $ 625.0 million of 9.75 % senior second lien notes , which were issued at par with an interest rate of 9.75 % per annum that matures on november 1 , 2023. concurrently , we renewed our credit facility by entering into the credit agreement , which matures on october 18 , 2022 and increased the borrowing base from $ 150.0 million to $ 250.0 million . the borrowing base is subject to scheduled semi-annual redeterminations to occur on or before may 15 and november 14 each calendar year , and certain additional redeterminations that may be requested at the discretion of either the lenders or the company . funds from the senior second lien notes , cash on hand and borrowings under the credit agreement were used to repurchase and retire , repay or redeem all of our previously outstanding secured senior notes and secured term loans . the refinancing transaction reduced our debt levels , extended the maturities for our fixed rate debt and provides extended liquidity under the credit agreement through october 2022. see financial statements and supplementary data – note 2 – long-term debt under part ii , item 8 in this form 10-k for a full description of the transaction and the new debt instruments . our financial condition , cash flow and results of operations are significantly affected by the volume of our oil , ngls and natural gas production and the prices that we receive for such production . our production volumes for 2018 were comprised of approximately 50 % oil and condensate , 10 % ngls and 40 % natural gas , determined using the energy-equivalent ratio of six mcf of natural gas to one barrel of crude oil , condensate or ngls . the energy-equivalent ratio does not assume price equivalency , and the energy-equivalent prices per mcfe for crude oil , ngls and natural gas may differ significantly . for 2018 , our combined total production of oil , ngls and natural gas was 8.5 % below 2017 , primarily due to natural production declines , partially offset by production from wells drilled and completed during 2018 and 2017 and from acquisitions . our realized sales prices received for our crude oil , ngls and natural gas production are affected by not only domestic production activities and political issues , but more importantly , international events , including both geopolitical and economic events . during 2018 , crude oil and ngl average realized prices were significantly above 2017 realized prices , increasing 36.3 % and 21.6 % , respectively . selected issues and data points related to crude oil , ngls and natural gas markets are described below . as reported by the u.s. energy information administration ( “ eia ” ) in their short-term energy outlook issued in january 2019 ( “ steo ” ) , worldwide production of petroleum and other liquids was estimated to have increased by 2.8 % in 2018 over the prior year , which was higher than the year-over-year production growth experienced from the last two years of 0.5 % for 2017 and 1.5 % for 2016. the increases in production for 2018 were primary from increases in the u.s. consumption for 2018 increased 1.5 % over 2017 and was lower than production , resulting in inventory builds for 2018. the eia forecasts worldwide production of petroleum and other liquids year-over-year increases for 2019 and 2020 to be 1.4 % and 1.7 % , respectively . the increase is due primarily to increases in production in the u.s. and brazil . story_separator_special_tag the ngls revenue increase was attributable to a 21.6 % increase in the average realized sales price to $ 28.40 per barrel in 2018 from $ 23.35 per barrel in 2017 , partially offset by a decrease of 5.4 % in sales volumes . the decrease in natural gas revenue was attributable to a 13.0 % decrease in sales volumes , partially offset by a 5.1 % increase in the average realized natural gas sales price to $ 3.11 per mcf in 2018 from $ 2.96 per mcf in 2017. overall , prices increased 30.8 % on a per boe basis and production declined 8.5 % on a per boe per day basis . the largest production increases for 2018 compared to 2017 were from our newly acquired interest in the heidelberg field and our ship shoal 300 field . revenue and production was adjusted for royalty relief on two of our deepwater fields related to their 2017 and 2016 production and realized prices which is recognized in the subsequent year . this royalty relief impact to revenues during 2018 and 2017 was $ 1.0 million and $ 5.0 million , respectively . offsetting were production decreases primarily due to natural production declines and production deferrals . production for 2018 was also negatively impacted by maintenance , well issues and pipeline outages that collectively resulted in deferred production of 1.6 mmboe , which was approximately the same amount as in 2017 . 57 revenues from oil and liquids as a percent of our total revenues were 82.0 % for 2018 compared to 76.4 % for 2017. ngls realized sales prices as a percent of crude oil realized prices decreased to 43.3 % for 2018 compared to 48.5 % for 2017. lease operating expenses . lease operating expenses , which include base lease operating expenses , insurance , workovers , and facilities maintenance , increased $ 9.5 million , or 6.6 % , to $ 153.3 million in 2018 compared to $ 143.7 million in 2017. the heidelberg field acquisition accounted for approximately half of the lease operating expense increase . on a per boe basis , lease operating expenses increased to $ 11.50 per boe during 2018 compared to $ 9.86 per boe during 2017. on a component basis , base lease operating expenses increased $ 5.1 million and insurance premiums increased $ 2.2 million and workover expenses increased $ 2.3 million , partially offset by facilities maintenance decreases of $ 0.1 million . base lease operating expenses increased primarily due the addition of the heidelberg field , lower product handling and operating charges to an outside party at our matterhorn field and higher incentive compensation expenses . the insurance premium increase is primarily due to our insurance policies related to named windstorms , which had expanded coverage in 2018 compared to the 2017 period , as named windstorm coverage was limited to just our mahogany field in the first half of 2017. the increase in workover expenses is primarily attributable to additional projects at our mahogany field compared to the prior year to increase production . production taxes . production taxes were $ 1.8 million , approximately the same as in 2017. most of our production is from federal waters where no production taxes are imposed . our fairway field , which is in state waters , is subject to production taxes . gathering and transportation costs . gathering and transportation costs increased to $ 22.4 million , or 9.5 % , in 2018 compared to $ 20.4 million in 2017 primarily related to the heidelberg field , where we are required to pay additional amounts if throughputs are below minimums quantities and were partially offset by lower expenses from lower production volumes . depreciation , depletion , amortization and accretion . dd & a , which includes accretion for aro , increased to $ 11.24 per boe in 2018 from $ 10.68 per boe in 2017. on a nominal basis , dd & a decreased to $ 149.9 million ( 3.7 % ) in 2018 from $ 155.7 million in 2017. dd & a on a nominal basis decreased primarily due to lower production , partially offset by an increase in the dd & a rate . factors affecting the dd & a rate are capital expenditures , changes in future development costs on remaining reserves and changes in proved reserve volumes . general and administrative expenses ( “ g & a ” ) . for 2018 , g & a expenses of $ 60.1 million were essentially at the same level as in 2017. we experienced reductions in legal settlements , fines and contract labor , offset by increases for settlements related to the departure of certain executives , increases in medical claims and a buyout of an office lease . g & a on a per boe basis was $ 4.51 boe for 2018 compared to $ 4.10 boe for 2017. see financial statements and supplementary data – note 11 – share-based awards and cash-based awards under part ii , item 8 in this form 10-k for additional information . derivative gain . for 2018 , a $ 53.8 million derivative gain was recorded for crude oil and natural gas derivative contracts . we entered into derivative contracts for crude oil during the second quarter of 2018 relating to a portion of our 2018 estimated production , which expired in december 2018. in the fourth quarter of 2018 , we entered into additional derivative contracts for crude oil and natural gas , which consists primarily of crude oil contracts with a term of 18 months . for 2017 , a $ 4.2 million derivative gain was recorded for crude oil and natural gas derivative contracts . we entered into derivative contracts for crude oil and natural gas during the first quarter of 2017 relating to a portion of our 2017 estimated production and there were no open contracts as of december 31 , 2017. see financial
| gain on exchange of debt . during 2018 , the refinancing transaction resulted in a gain of $ 47.1 million for 2018. during 2017 , a net gain of $ 7.8 million was recognized primarily as a result of paying interest in cash on certain debt instruments that had the option of paying-in-kind ( “ pik ” ) or in cash . see financial statements and supplementary data - note 2 – long-term debt under part ii , item 8 in this form 10-k for additional information . other ( income ) expense , net . during 2018 and 2017 , other ( income ) expense , net , was $ 3.9 million of net income and $ 5.1 million of net expense , respectively . for 2018 , the amount consists of credits related to the de-recognition of certain liabilities that had exceeded the statute of limitations , partially offset by expenses related to the amortization of the brokerage fee paid in connection with the jv drilling program . for 2017 , the amount consists primarily of expense items related to the apache lawsuit of $ 6.3 million , partially offset by loss-of-use reimbursements from a third-party for damages incurred at one of our platforms of $ 1.1 million . see financial statements and supplementary data - note 18 – contingencies under part ii , item 8 in this form 10-k for additional information . income tax benefit . our income tax expense for 2018 was $ 0.5 million and our income tax benefit for 2017 was $ 12.6 million . for 2018 , immaterial deferred tax expense was recorded due to dollar-for-dollar offsets by our valuation allowance . the income tax benefit for 2017 was primarily attributable to claims made pursuant to internal revenue code ( “ irc ” ) section 172 ( f ) , ( related to rules for “ specified liability losses ” ) which permit certain platform dismantlement , well abandonment and site clearance costs to be carried back 10 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.
```gain on exchange of debt . during 2018 , the refinancing transaction resulted in a gain of $ 47.1 million for 2018. during 2017 , a net gain of $ 7.8 million was recognized primarily as a result of paying interest in cash on certain debt instruments that had the option of paying-in-kind ( “ pik ” ) or in cash . see financial statements and supplementary data - note 2 – long-term debt under part ii , item 8 in this form 10-k for additional information . other ( income ) expense , net . during 2018 and 2017 , other ( income ) expense , net , was $ 3.9 million of net income and $ 5.1 million of net expense , respectively . for 2018 , the amount consists of credits related to the de-recognition of certain liabilities that had exceeded the statute of limitations , partially offset by expenses related to the amortization of the brokerage fee paid in connection with the jv drilling program . for 2017 , the amount consists primarily of expense items related to the apache lawsuit of $ 6.3 million , partially offset by loss-of-use reimbursements from a third-party for damages incurred at one of our platforms of $ 1.1 million . see financial statements and supplementary data - note 18 – contingencies under part ii , item 8 in this form 10-k for additional information . income tax benefit . our income tax expense for 2018 was $ 0.5 million and our income tax benefit for 2017 was $ 12.6 million . for 2018 , immaterial deferred tax expense was recorded due to dollar-for-dollar offsets by our valuation allowance . the income tax benefit for 2017 was primarily attributable to claims made pursuant to internal revenue code ( “ irc ” ) section 172 ( f ) , ( related to rules for “ specified liability losses ” ) which permit certain platform dismantlement , well abandonment and site clearance costs to be carried back 10 years .
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Suspicious Activity Report : see properties – proved reserves under part i , item 2 ; selected financial data under part ii , item 6 and financial statements and supplementary data – note 20 – supplemental oil and gas disclosures under part ii , item 8 in this form 10-k for additional information on our proved reserves . our drilling efforts in recent years have included the deepwater of the gulf of mexico . production from our deepwater fields represented 41 % , 42 % , and 46 % of our total production for the years 2018 , 2017 , and 2016 , respectively . one of our larger deepwater fields is the big bend field , which commenced production in late 2015. over 90 % of our reserves in this field are composed of oil and ngls on a boe basis . as of december 31 , 2018 , the big bend field was in our top ten fields based on reserves , net to our interest , on a boe basis . 53 to provide additional financial flexibility , we created the jv drilling program during 2018 and initiated drilling on several of the projects . the jv drilling program enables w & t to receive returns on its investment on a promoted basis and enables private investors to participate in 14 drilling projects . it also allows more projects to be taken on which leverages our capital expenditures and diversifies our risk . during 2018 , there were four wells in the jv drilling program that came on production . in addition , as of december 31 , 2018 , one well was being drilled and one well was in the completion stage . the current plan is to complete the 14 projects within a three-year period , but is subject to change as needed with any required approval of the other investors . see financial statements and supplementary data – note 4 – joint venture drilling program under part ii , item 8 in this form 10-k for additional information on the jv drilling program . in october 2018 , we entered into a series of transactions to effect a refinancing of substantially all of our outstanding indebtedness . at that time , we issued $ 625.0 million of 9.75 % senior second lien notes , which were issued at par with an interest rate of 9.75 % per annum that matures on november 1 , 2023. concurrently , we renewed our credit facility by entering into the credit agreement , which matures on october 18 , 2022 and increased the borrowing base from $ 150.0 million to $ 250.0 million . the borrowing base is subject to scheduled semi-annual redeterminations to occur on or before may 15 and november 14 each calendar year , and certain additional redeterminations that may be requested at the discretion of either the lenders or the company . funds from the senior second lien notes , cash on hand and borrowings under the credit agreement were used to repurchase and retire , repay or redeem all of our previously outstanding secured senior notes and secured term loans . the refinancing transaction reduced our debt levels , extended the maturities for our fixed rate debt and provides extended liquidity under the credit agreement through october 2022. see financial statements and supplementary data – note 2 – long-term debt under part ii , item 8 in this form 10-k for a full description of the transaction and the new debt instruments . our financial condition , cash flow and results of operations are significantly affected by the volume of our oil , ngls and natural gas production and the prices that we receive for such production . our production volumes for 2018 were comprised of approximately 50 % oil and condensate , 10 % ngls and 40 % natural gas , determined using the energy-equivalent ratio of six mcf of natural gas to one barrel of crude oil , condensate or ngls . the energy-equivalent ratio does not assume price equivalency , and the energy-equivalent prices per mcfe for crude oil , ngls and natural gas may differ significantly . for 2018 , our combined total production of oil , ngls and natural gas was 8.5 % below 2017 , primarily due to natural production declines , partially offset by production from wells drilled and completed during 2018 and 2017 and from acquisitions . our realized sales prices received for our crude oil , ngls and natural gas production are affected by not only domestic production activities and political issues , but more importantly , international events , including both geopolitical and economic events . during 2018 , crude oil and ngl average realized prices were significantly above 2017 realized prices , increasing 36.3 % and 21.6 % , respectively . selected issues and data points related to crude oil , ngls and natural gas markets are described below . as reported by the u.s. energy information administration ( “ eia ” ) in their short-term energy outlook issued in january 2019 ( “ steo ” ) , worldwide production of petroleum and other liquids was estimated to have increased by 2.8 % in 2018 over the prior year , which was higher than the year-over-year production growth experienced from the last two years of 0.5 % for 2017 and 1.5 % for 2016. the increases in production for 2018 were primary from increases in the u.s. consumption for 2018 increased 1.5 % over 2017 and was lower than production , resulting in inventory builds for 2018. the eia forecasts worldwide production of petroleum and other liquids year-over-year increases for 2019 and 2020 to be 1.4 % and 1.7 % , respectively . the increase is due primarily to increases in production in the u.s. and brazil . story_separator_special_tag the ngls revenue increase was attributable to a 21.6 % increase in the average realized sales price to $ 28.40 per barrel in 2018 from $ 23.35 per barrel in 2017 , partially offset by a decrease of 5.4 % in sales volumes . the decrease in natural gas revenue was attributable to a 13.0 % decrease in sales volumes , partially offset by a 5.1 % increase in the average realized natural gas sales price to $ 3.11 per mcf in 2018 from $ 2.96 per mcf in 2017. overall , prices increased 30.8 % on a per boe basis and production declined 8.5 % on a per boe per day basis . the largest production increases for 2018 compared to 2017 were from our newly acquired interest in the heidelberg field and our ship shoal 300 field . revenue and production was adjusted for royalty relief on two of our deepwater fields related to their 2017 and 2016 production and realized prices which is recognized in the subsequent year . this royalty relief impact to revenues during 2018 and 2017 was $ 1.0 million and $ 5.0 million , respectively . offsetting were production decreases primarily due to natural production declines and production deferrals . production for 2018 was also negatively impacted by maintenance , well issues and pipeline outages that collectively resulted in deferred production of 1.6 mmboe , which was approximately the same amount as in 2017 . 57 revenues from oil and liquids as a percent of our total revenues were 82.0 % for 2018 compared to 76.4 % for 2017. ngls realized sales prices as a percent of crude oil realized prices decreased to 43.3 % for 2018 compared to 48.5 % for 2017. lease operating expenses . lease operating expenses , which include base lease operating expenses , insurance , workovers , and facilities maintenance , increased $ 9.5 million , or 6.6 % , to $ 153.3 million in 2018 compared to $ 143.7 million in 2017. the heidelberg field acquisition accounted for approximately half of the lease operating expense increase . on a per boe basis , lease operating expenses increased to $ 11.50 per boe during 2018 compared to $ 9.86 per boe during 2017. on a component basis , base lease operating expenses increased $ 5.1 million and insurance premiums increased $ 2.2 million and workover expenses increased $ 2.3 million , partially offset by facilities maintenance decreases of $ 0.1 million . base lease operating expenses increased primarily due the addition of the heidelberg field , lower product handling and operating charges to an outside party at our matterhorn field and higher incentive compensation expenses . the insurance premium increase is primarily due to our insurance policies related to named windstorms , which had expanded coverage in 2018 compared to the 2017 period , as named windstorm coverage was limited to just our mahogany field in the first half of 2017. the increase in workover expenses is primarily attributable to additional projects at our mahogany field compared to the prior year to increase production . production taxes . production taxes were $ 1.8 million , approximately the same as in 2017. most of our production is from federal waters where no production taxes are imposed . our fairway field , which is in state waters , is subject to production taxes . gathering and transportation costs . gathering and transportation costs increased to $ 22.4 million , or 9.5 % , in 2018 compared to $ 20.4 million in 2017 primarily related to the heidelberg field , where we are required to pay additional amounts if throughputs are below minimums quantities and were partially offset by lower expenses from lower production volumes . depreciation , depletion , amortization and accretion . dd & a , which includes accretion for aro , increased to $ 11.24 per boe in 2018 from $ 10.68 per boe in 2017. on a nominal basis , dd & a decreased to $ 149.9 million ( 3.7 % ) in 2018 from $ 155.7 million in 2017. dd & a on a nominal basis decreased primarily due to lower production , partially offset by an increase in the dd & a rate . factors affecting the dd & a rate are capital expenditures , changes in future development costs on remaining reserves and changes in proved reserve volumes . general and administrative expenses ( “ g & a ” ) . for 2018 , g & a expenses of $ 60.1 million were essentially at the same level as in 2017. we experienced reductions in legal settlements , fines and contract labor , offset by increases for settlements related to the departure of certain executives , increases in medical claims and a buyout of an office lease . g & a on a per boe basis was $ 4.51 boe for 2018 compared to $ 4.10 boe for 2017. see financial statements and supplementary data – note 11 – share-based awards and cash-based awards under part ii , item 8 in this form 10-k for additional information . derivative gain . for 2018 , a $ 53.8 million derivative gain was recorded for crude oil and natural gas derivative contracts . we entered into derivative contracts for crude oil during the second quarter of 2018 relating to a portion of our 2018 estimated production , which expired in december 2018. in the fourth quarter of 2018 , we entered into additional derivative contracts for crude oil and natural gas , which consists primarily of crude oil contracts with a term of 18 months . for 2017 , a $ 4.2 million derivative gain was recorded for crude oil and natural gas derivative contracts . we entered into derivative contracts for crude oil and natural gas during the first quarter of 2017 relating to a portion of our 2017 estimated production and there were no open contracts as of december 31 , 2017. see financial
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2,662 | such declines could also require us to write down the carrying value of our oil and gas assets which would also cause a reduction in net income . finally , low commodity prices will likely cause a reduction of the borrowing base under our credit facility . the borrowing base under our credit facility is scheduled to be redetermined on march 28 , 2019. the realized prices that we receive for our production differ from nymex futures and spot market prices , principally due to : basis differentials which are dependent on actual delivery location ; adjustments for btu content ; quality of the hydrocarbons ; and gathering , processing and transportation costs . the following table sets forth our average differentials for the years ended december 31 , 2016 , 2017 and 2018 : replace_table_token_14_th _ ( 1 ) average realized prices are before the impact of hedging activities . the company 's derivative contracts as of december 31 , 2018 consisted of nymex-based fixed price swaps and basis differential swaps . under fixed price swaps , we receive a fixed price for our production and pay a variable market price to the contract counter-party . our hedging arrangements equate to approximately 51 % of the oil production of our estimated net proved developed producing reserves ( as of december 31 , 2018 ) through december 31 , 2019 , 62 % for 2020 and 66 % for 2021. subsequent to december 31 , 2018 , in connection with the redetermination of our credit facility , we have entered into additional fixed price commodity swaps . taking these additional contracts into consideration , we have entered into fixed price commodity swap arrangements on approximately 61 % of the oil production of our estimated net proved developed producing reserves ( as of december 31 , 2018 ) through december 31 , 2019 , 80 % for 2020 and 75 % for 2021. by removing a portion of price volatility on our future oil and gas production , we believe we will mitigate , but not eliminate , the potential effects of changing commodity prices on our cash flows from operations for those periods . however , when prevailing market prices are higher than our contract prices , we will not realize increased cash flows on the portion of the production that has been hedged . we have in the past and will in the future sustain losses on both open and settled derivative contracts if market prices are higher than our contract prices . conversely , when prevailing market prices are lower than our contract prices , we will sustain realized and unrealized gains on our commodity derivative contracts . in 2016 , we incurred a loss of $ 18.0 million , consisting of a gain of $ 1.8 million on closed contracts and a loss of $ 19.8 million related to open contracts . in 2017 , we incurred a loss of $ 1.8 million , consisting of a gain of $ 2.5 million on closed contracts and a loss of $ 4.3 million related to open contracts . in 2018 , we recorded a gain of $ 8.1 million , consisting of a loss of $ 19.0 million on closed contracts and a gain of $ 27.1 million related to open contracts . we have not designated any of these derivative contracts as a hedge as permitted by applicable accounting rules if certain conditions are met . 46 the following table sets forth our derivative contracts at december 31 , 2018 : replace_table_token_15_th at december 31 , 2018 , the aggregate fair market value of our commodity derivative contracts was an asset of approximately $ 15.1 million . production volumes . our proved reserves will decline as oil and gas is produced , unless we find , acquire or develop additional properties containing proved reserves or conduct successful exploration and development activities . based on the reserve information set forth in our reserve report as of december 31 , 2018 , our average annual estimated decline rate for our net proved developed producing reserves is 35 % ; 19 % ; 14 % ; 11 % and 9 % in 2019 , 2020 , 2021 , 2022 and 2023 , respectively , 11 % in the following five years , and approximately 8 % thereafter . these rates of decline are estimates and actual production declines could be materially higher . while we have had some success in finding , acquiring and developing additional reserves , we have not always been able to fully replace the production volumes lost from natural field declines and property sales . our ability to acquire or find additional reserves in the future will be dependent , in part , upon the amount of available funds for acquisition , exploration and development projects . in addition to our ability to successfully drill wells , we must also market our production which depends substantially on the availability , proximity and capacity of gathering systems , pipelines and processing facilities , which are also known as midstream facilities , owned and operated by third parties . if adequate midstream facilities and services are not available to us on a timely basis and at acceptable costs , our production and results of operations could be adversely affected . both of our principal areas of operation ( the bakken and permian basin ) have experienced substantial development in recent years , and this has made it more difficult for providers of midstream infrastructure and services to keep pace with the corresponding increases in field-wide production . the ultimate timing and availability of adequate infrastructure is not within our control and we could experience capacity constraints for extended periods of time that would negatively impact our ability to meet our production targets . weather , regulatory developments and other factors also affect the adequacy of midstream infrastructure . we had capital expenditures during 2018 of approximately $ 174.0 story_separator_special_tag production and ad valorem taxes for the year ended december 31 , 2017 increased to $ 7.2 million from $ 5.5 million in 2016. the increase was primarily due to higher realized prices and sales volumes in 2017 as compared to 2016. production and ad valorem taxes as a percentage of oil and gas revenue decreased to 8 % in 2017 as compared to 10 % in 2016. the decrease in the percentage of oil and gas revenue was primarily due to increased production in texas which has lower production tax rates than the other states in which we operate . general and administrative ( “ g & a ” ) expense . g & a expense , excluding stock-based compensation , increased to $ 13.0 million for the year ended december 31 , 2017 from $ 10.4 million in 2016. the increase was primarily due to incentive bonuses accrued in 2017 as well as a one-time discretionary bonus paid in 2017. g & a expense per boe was $ 4.83 for the year ended december 31 , 2017 compared to $ 4.58 for the same period of 2016. stock-based compensation . options granted to employees and directors are valued at the date of grant and expense is recognized over the options vesting period . in addition to options , restricted shares of common stock have been granted and are valued at the date of grant and expense is recognized over their vesting period . stock-based compensation was consistent at $ 3.2 million for the years ended december 31 , 2017 and 2016. there were no significant grants of stock options or restricted stock in 2017 . 50 depreciation , depletion , and amortization ( “ dd & a ” ) expenses . dd & a expense , excluding accretion , increased to $ 26.2 million for the year ended december 31 , 2017 from $ 24.4 million in 2016. dd & a expense increased primarily due to higher future development costs included in the december 31 , 2017 reserve report as well as higher production volumes in 2017 as compared to 2016. dd & a per boe for 2017 was $ 9.72 compared to $ 10.80 in 2016. the decrease in dd & a expense per boe was primarily due to a higher reserve volumes in 2017 as compared to 2016. interest expense . interest expense decreased to $ 2.5 million in 2017 from $ 3.8 million for 2016. the decrease was primarily due to lower debt levels in 2017 as compared to 2016 , partially offset by higher interest rates in 2017 as compared to 2016. income taxes . due to losses incurred and loss carry forwards , we did not recognize any income tax expense for the years ended december 31 , 2017 and 2016 . ( gain ) loss on derivative contracts . our derivative contracts consisted of fixed price swaps , basis differential swaps and collar contracts in 2017 and 2016. the net estimated value of our commodity derivative contracts was a liability of approximately $ 13.2 million as of december 31 , 2017. when our derivative contract prices are higher than prevailing market prices , we incur gains and conversely , when our derivative contract prices are lower than prevailing market prices , we incur losses . for the year ended december 31 , 2017 , we incurred a loss on our derivative contracts of approximately $ 1.8 million , consisting of a gain of $ 2.5 million on closed contracts and a loss of $ 4.3 million on the mark to market valuation of open contracts . for the year-ended december 31 , 2016 , we incurred a loss of $ 18.0 million , consisting of a gain of $ 1.8 million on closed contracts and a loss of $ 19.8 million related to open contracts . monetization of derivative contracts . during 2016 , we monetized certain of our derivative contracts . proceeds from the monetization were approximately $ 14.4 million . we did not monetize any derivative contracts in 2017. ceiling limitation write-down . during 2016 , we incurred impairments of $ 67.6 million . as of december 31 , 2017 , the net capitalized cost of our oil and gas properties did not exceed the present value of our estimated proved reserves . the year-end amount was calculated in accordance with sec rules utilizing the twelve month first-day-of-the-month average oil and gas prices for the year ended 2017 which were $ 46.83 per bbl for oil and $ 1.79 per mcf for gas as adjusted to reflect the expected realized prices for our oil and gas reserves . story_separator_special_tag id= `` 5588f2019171549568983040 `` > $ 23.1 million , current maturities of long-term debt of $ 0.3 million , the current amount of our derivative liability of $ 0.6 million and accrued expenses of $ 0.8 million . the working capital deficit is expected to be funded by cash flows from operations and borrowings under our credit facility . capital expenditures . capital expenditures in 2016 , 2017 and 2018 were $ 31.7 million , $ 135.1 million , and $ 174.0 million , respectively . expenditures in 2017 included non-cash expenditures of $ 26.8 million , ( which consisted of 2.0 million shares of our common stock issued in connection with an acquisition in august 2017 , all of our interest in the surface estate of coyanosa draw ranch and one-half of the mineral interests under the coyanosa draw ranch ) . the table below sets forth the components of these capital expenditures : replace_table_token_18_th during 2016 capital expenditures were primarily for exploration and for the development of our existing properties . during 2017 and 2018 , capital expenditures were for the exploration and development of our existing properties and acquisition of additional leasehold . expenditures in 2017 included non-cash expenditures of $ 26.8 million , ( which consisted of 2.0 million shares of our common stock issued in connection
| liquidity and capital resources general . the oil and gas industry is a highly capital intensive and cyclical business . our capital requirements are driven principally by our obligations to service debt and to fund the following : the development and exploration of existing properties , including drilling and completion costs of wells ; acquisition of interests in additional oil and gas properties ; and production and gathering facilities . the amount of capital expenditures we are able to make has a direct impact on our ability to increase cash flow from operations and , thereby , will directly affect our ability to service our debt obligations and to grow the business through the development of existing properties and the acquisition of new properties . in addition in january 2019 , we announced that we had engaged petrie partners to assist us in identifying and assessing our options for our bakken properties . we are still early in this process and do not know the ultimate outcome . in the event that this process were to result in the sale of our bakken properties , we believe that the proceeds would be used to significantly pay down or fully retire our debt , support our raven no . 1 rig in the delaware basin until it achieves free cash flow and possibly buy back stock . we feel that the cash flow from these sources will be adequate to fund our operations into the future , long and short term .
| 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 general . the oil and gas industry is a highly capital intensive and cyclical business . our capital requirements are driven principally by our obligations to service debt and to fund the following : the development and exploration of existing properties , including drilling and completion costs of wells ; acquisition of interests in additional oil and gas properties ; and production and gathering facilities . the amount of capital expenditures we are able to make has a direct impact on our ability to increase cash flow from operations and , thereby , will directly affect our ability to service our debt obligations and to grow the business through the development of existing properties and the acquisition of new properties . in addition in january 2019 , we announced that we had engaged petrie partners to assist us in identifying and assessing our options for our bakken properties . we are still early in this process and do not know the ultimate outcome . in the event that this process were to result in the sale of our bakken properties , we believe that the proceeds would be used to significantly pay down or fully retire our debt , support our raven no . 1 rig in the delaware basin until it achieves free cash flow and possibly buy back stock . we feel that the cash flow from these sources will be adequate to fund our operations into the future , long and short term .
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Suspicious Activity Report : such declines could also require us to write down the carrying value of our oil and gas assets which would also cause a reduction in net income . finally , low commodity prices will likely cause a reduction of the borrowing base under our credit facility . the borrowing base under our credit facility is scheduled to be redetermined on march 28 , 2019. the realized prices that we receive for our production differ from nymex futures and spot market prices , principally due to : basis differentials which are dependent on actual delivery location ; adjustments for btu content ; quality of the hydrocarbons ; and gathering , processing and transportation costs . the following table sets forth our average differentials for the years ended december 31 , 2016 , 2017 and 2018 : replace_table_token_14_th _ ( 1 ) average realized prices are before the impact of hedging activities . the company 's derivative contracts as of december 31 , 2018 consisted of nymex-based fixed price swaps and basis differential swaps . under fixed price swaps , we receive a fixed price for our production and pay a variable market price to the contract counter-party . our hedging arrangements equate to approximately 51 % of the oil production of our estimated net proved developed producing reserves ( as of december 31 , 2018 ) through december 31 , 2019 , 62 % for 2020 and 66 % for 2021. subsequent to december 31 , 2018 , in connection with the redetermination of our credit facility , we have entered into additional fixed price commodity swaps . taking these additional contracts into consideration , we have entered into fixed price commodity swap arrangements on approximately 61 % of the oil production of our estimated net proved developed producing reserves ( as of december 31 , 2018 ) through december 31 , 2019 , 80 % for 2020 and 75 % for 2021. by removing a portion of price volatility on our future oil and gas production , we believe we will mitigate , but not eliminate , the potential effects of changing commodity prices on our cash flows from operations for those periods . however , when prevailing market prices are higher than our contract prices , we will not realize increased cash flows on the portion of the production that has been hedged . we have in the past and will in the future sustain losses on both open and settled derivative contracts if market prices are higher than our contract prices . conversely , when prevailing market prices are lower than our contract prices , we will sustain realized and unrealized gains on our commodity derivative contracts . in 2016 , we incurred a loss of $ 18.0 million , consisting of a gain of $ 1.8 million on closed contracts and a loss of $ 19.8 million related to open contracts . in 2017 , we incurred a loss of $ 1.8 million , consisting of a gain of $ 2.5 million on closed contracts and a loss of $ 4.3 million related to open contracts . in 2018 , we recorded a gain of $ 8.1 million , consisting of a loss of $ 19.0 million on closed contracts and a gain of $ 27.1 million related to open contracts . we have not designated any of these derivative contracts as a hedge as permitted by applicable accounting rules if certain conditions are met . 46 the following table sets forth our derivative contracts at december 31 , 2018 : replace_table_token_15_th at december 31 , 2018 , the aggregate fair market value of our commodity derivative contracts was an asset of approximately $ 15.1 million . production volumes . our proved reserves will decline as oil and gas is produced , unless we find , acquire or develop additional properties containing proved reserves or conduct successful exploration and development activities . based on the reserve information set forth in our reserve report as of december 31 , 2018 , our average annual estimated decline rate for our net proved developed producing reserves is 35 % ; 19 % ; 14 % ; 11 % and 9 % in 2019 , 2020 , 2021 , 2022 and 2023 , respectively , 11 % in the following five years , and approximately 8 % thereafter . these rates of decline are estimates and actual production declines could be materially higher . while we have had some success in finding , acquiring and developing additional reserves , we have not always been able to fully replace the production volumes lost from natural field declines and property sales . our ability to acquire or find additional reserves in the future will be dependent , in part , upon the amount of available funds for acquisition , exploration and development projects . in addition to our ability to successfully drill wells , we must also market our production which depends substantially on the availability , proximity and capacity of gathering systems , pipelines and processing facilities , which are also known as midstream facilities , owned and operated by third parties . if adequate midstream facilities and services are not available to us on a timely basis and at acceptable costs , our production and results of operations could be adversely affected . both of our principal areas of operation ( the bakken and permian basin ) have experienced substantial development in recent years , and this has made it more difficult for providers of midstream infrastructure and services to keep pace with the corresponding increases in field-wide production . the ultimate timing and availability of adequate infrastructure is not within our control and we could experience capacity constraints for extended periods of time that would negatively impact our ability to meet our production targets . weather , regulatory developments and other factors also affect the adequacy of midstream infrastructure . we had capital expenditures during 2018 of approximately $ 174.0 story_separator_special_tag production and ad valorem taxes for the year ended december 31 , 2017 increased to $ 7.2 million from $ 5.5 million in 2016. the increase was primarily due to higher realized prices and sales volumes in 2017 as compared to 2016. production and ad valorem taxes as a percentage of oil and gas revenue decreased to 8 % in 2017 as compared to 10 % in 2016. the decrease in the percentage of oil and gas revenue was primarily due to increased production in texas which has lower production tax rates than the other states in which we operate . general and administrative ( “ g & a ” ) expense . g & a expense , excluding stock-based compensation , increased to $ 13.0 million for the year ended december 31 , 2017 from $ 10.4 million in 2016. the increase was primarily due to incentive bonuses accrued in 2017 as well as a one-time discretionary bonus paid in 2017. g & a expense per boe was $ 4.83 for the year ended december 31 , 2017 compared to $ 4.58 for the same period of 2016. stock-based compensation . options granted to employees and directors are valued at the date of grant and expense is recognized over the options vesting period . in addition to options , restricted shares of common stock have been granted and are valued at the date of grant and expense is recognized over their vesting period . stock-based compensation was consistent at $ 3.2 million for the years ended december 31 , 2017 and 2016. there were no significant grants of stock options or restricted stock in 2017 . 50 depreciation , depletion , and amortization ( “ dd & a ” ) expenses . dd & a expense , excluding accretion , increased to $ 26.2 million for the year ended december 31 , 2017 from $ 24.4 million in 2016. dd & a expense increased primarily due to higher future development costs included in the december 31 , 2017 reserve report as well as higher production volumes in 2017 as compared to 2016. dd & a per boe for 2017 was $ 9.72 compared to $ 10.80 in 2016. the decrease in dd & a expense per boe was primarily due to a higher reserve volumes in 2017 as compared to 2016. interest expense . interest expense decreased to $ 2.5 million in 2017 from $ 3.8 million for 2016. the decrease was primarily due to lower debt levels in 2017 as compared to 2016 , partially offset by higher interest rates in 2017 as compared to 2016. income taxes . due to losses incurred and loss carry forwards , we did not recognize any income tax expense for the years ended december 31 , 2017 and 2016 . ( gain ) loss on derivative contracts . our derivative contracts consisted of fixed price swaps , basis differential swaps and collar contracts in 2017 and 2016. the net estimated value of our commodity derivative contracts was a liability of approximately $ 13.2 million as of december 31 , 2017. when our derivative contract prices are higher than prevailing market prices , we incur gains and conversely , when our derivative contract prices are lower than prevailing market prices , we incur losses . for the year ended december 31 , 2017 , we incurred a loss on our derivative contracts of approximately $ 1.8 million , consisting of a gain of $ 2.5 million on closed contracts and a loss of $ 4.3 million on the mark to market valuation of open contracts . for the year-ended december 31 , 2016 , we incurred a loss of $ 18.0 million , consisting of a gain of $ 1.8 million on closed contracts and a loss of $ 19.8 million related to open contracts . monetization of derivative contracts . during 2016 , we monetized certain of our derivative contracts . proceeds from the monetization were approximately $ 14.4 million . we did not monetize any derivative contracts in 2017. ceiling limitation write-down . during 2016 , we incurred impairments of $ 67.6 million . as of december 31 , 2017 , the net capitalized cost of our oil and gas properties did not exceed the present value of our estimated proved reserves . the year-end amount was calculated in accordance with sec rules utilizing the twelve month first-day-of-the-month average oil and gas prices for the year ended 2017 which were $ 46.83 per bbl for oil and $ 1.79 per mcf for gas as adjusted to reflect the expected realized prices for our oil and gas reserves . story_separator_special_tag id= `` 5588f2019171549568983040 `` > $ 23.1 million , current maturities of long-term debt of $ 0.3 million , the current amount of our derivative liability of $ 0.6 million and accrued expenses of $ 0.8 million . the working capital deficit is expected to be funded by cash flows from operations and borrowings under our credit facility . capital expenditures . capital expenditures in 2016 , 2017 and 2018 were $ 31.7 million , $ 135.1 million , and $ 174.0 million , respectively . expenditures in 2017 included non-cash expenditures of $ 26.8 million , ( which consisted of 2.0 million shares of our common stock issued in connection with an acquisition in august 2017 , all of our interest in the surface estate of coyanosa draw ranch and one-half of the mineral interests under the coyanosa draw ranch ) . the table below sets forth the components of these capital expenditures : replace_table_token_18_th during 2016 capital expenditures were primarily for exploration and for the development of our existing properties . during 2017 and 2018 , capital expenditures were for the exploration and development of our existing properties and acquisition of additional leasehold . expenditures in 2017 included non-cash expenditures of $ 26.8 million , ( which consisted of 2.0 million shares of our common stock issued in connection
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2,663 | the negative provision in each period was also impacted by other recoveries from our collection efforts and a continual decline in our historical charge-off levels from prior years . we had our fourth consecutive full year of net recoveries in 2016. the following table reflects the provision for loan losses for the past five years along with certain metrics that impact the determination of the level of the provision for loan losses . replace_table_token_14_th economic conditions in our market areas of grand rapids and holland have improved during the past several years . the state 's unemployment rate at the end of 2016 was 4.5 % . the grand rapids and holland area unemployment rate was 3.1 % at the end of 2016. residential housing values and commercial real estate property values have shown signs of improvement , with some of our newer appraisals tending to reflect values at or above prior year values . it also appears that the housing market in our primary market area is improving . in the grand rapids market during 2016 , there were 65 % more living unit starts than in 2015. similarly , in the holland-grand haven/lakeshore region , there were 27 % more living unit starts in 2016 than in 2015. these improvements are on top of improved results in 2015 over 2014. also , these markets are now also seeing significant activity in duplex , condominium and apartment starts after years of virtually no activity . beginning in 2014 , with our improved financial condition , and earnings growth , our primary focus was on high quality loan portfolio growth . we experienced strong commercial loan growth in the fourth quarter of 2014 and throughout 2015 and 2016. most of our emphasis has been on growing commercial and industrial loans . these loans have increased from $ 274.1 million at december 31 , 2013 to $ 327.7 million at december 31 , 2014 , $ 377.3 million at december 31 , 2015 and $ 449.3 million at december 31 , 2016. commercial real estate loans have increased from $ 472.3 million at december 31 , 2013 to $ 490.5 million at december 31 , 2014 , $ 508.7 million at december 31 , 2015 and $ 518.0 million at december 31 , 2016. consumer loans have increased from $ 295.9 million at december 31 , 2013 to $ 300.3 million at december 31 , 2014 , $ 312.0 million at december 31 , 2015 and $ 313.5 million at december 31 , 2016. we believe we are positioned for continued growth in 2017. results of operations summary : net income was $ 16.0 million ( $ 22.2 million on a pretax basis ) for 2016 , compared to $ 12.8 million ( $ 18.4 million on a pretax basis ) and $ 10.5 million ( $ 15.0 million on a pretax basis ) for 2014. earnings per common share on a diluted basis was $ 0.47 for 2016 , $ 0.38 for 2015 and $ 0.31 for 2014. generally , the improvement in company earnings was the result of growth in revenue while expenses have been held flat . the increase in earnings in 2016 compared to 2015 and 2014 was due primarily to increased net interest income and noninterest income , along with a reduction in noninterest expense . net interest income increased to $ 47.5 million in 2016 compared to $ 44.1 million in 2015 and $ 41.4 million in 2014. we realized a higher level of income from gains on sales of residential mortgages in 2016 and 2015 compared to 2014 due to the extended low interest rate environment . total noninterest expense was $ 45.8 million in 2016 compared to $ 47.0 million in 2015 and $ 45.9 million in 2014. earnings in each period were positively impacted by negative provisions for loan losses ( $ 1.35 million in 2016 , $ 3.5 million in 2015 and $ 3.35 million in 2014 ) . these negative provisions resulted from reduced levels of nonperforming loans , improved asset quality and net loan recoveries realized in each of these periods . these items are discussed more fully below . - 26 - we continued our improvement in nonperforming asset expenses in 2016. costs associated with nonperforming assets were $ 1.3 million in 2016 , compared to $ 3.0 million in 2015 and $ 3.1 million in 2014. lost interest from nonperforming assets decreased to approximately $ 572,000 for 2016 , compared to $ 1.4 million for 2015 and $ 1.9 million for 2014. each of these items are discussed more fully below . net interest income : net interest income totaled $ 47.5 million during 2016 , compared to $ 44.1 million during 2015 and $ 41.4 million in 2014. the increase in net interest income during 2016 compared to 2015 marked our second consecutive year with an increase in net interest income , following several years of declining net interest income . this increase was primarily due to an increase in average earning assets of $ 63.9 million from $ 1.48 billion in 2015 to $ 1.55 billion in 2016. average yield on securities , interest earning assets and net interest margin are presented on a fully taxable equivalent basis . our net interest income as a percentage of average interest-earning assets ( i.e . `` net interest margin `` or `` margin `` ) increased by 10 basis points compared to 2015. the increase in net interest income during 2015 compared to 2014 was due to an increase in average earning assets of $ 129.4 million from $ 1.35 billion in 2014 to $ 1.48 billion in 2015. our net interest margin decreased by 6 basis points in 2015 compared to 2014. the yield on earning assets increased 6 basis points from 3.36 % for 2015 to 3.42 % for 2016 and decreased 12 basis points from 3.48 % for 2014 to 3.36 % story_separator_special_tag story_separator_special_tag loan type and also shows average originated loan size ( dollars in thousands ) : replace_table_token_22_th our loan portfolio is reviewed regularly by our senior management , our loan officers , and an internal loan review team that is independent of our loan originators and credit administration . an administrative loan committee consisting of senior management and seasoned lending and collections personnel meets monthly to manage our internal watch list and proactively manage high risk loans . when reasonable doubt exists concerning collectability of interest or principal of one of our loans , the loan is placed in nonaccrual status . any interest previously accrued but not collected is reversed and charged against current earnings . - 34 - nonperforming assets are comprised of nonperforming loans , foreclosed assets and repossessed assets . at december 31 , 2016 , nonperforming assets totaled $ 12.6 million compared to $ 18.3 million at december 31 , 2015. additions to other real estate owned in 2016 were $ 339,000 , compared to $ 2.5 million in 2015. based on the loans currently in their redemption period , we expect there to be few additions to other real estate owned in 2017. proceeds from sales of foreclosed properties were $ 5.3 million in 2016 , resulting in a net realized gain on sale of $ 645,000. proceeds from sales of foreclosed properties were $ 11.5 million in 2015 resulting in a net realized loss on sale of $ 926,000. we expect the level of sales of foreclosed properties in 2017 to be similar to the levels experienced in 2016. nonperforming loans include loans on nonaccrual status and loans delinquent more than 90 days but still accruing . as of december 31 , 2016 , nonperforming loans totaled $ 300,000 , or 0.04 % of total portfolio loans , compared to $ 756,000 , or 0.06 % of total portfolio loans , at december 31 , 2015. there were no nonperforming loans for development or sale of 1-4 family residential properties at december 31 , 2016 compared to $ 195,000 , or 25.8 % of total nonperforming loans , at december 31 , 2015. the remaining balance of nonperforming loans at december 31 , 2016 consisted of $ 183,000 of commercial real estate loans secured by various types of non-residential real estate , $ 36,000 of commercial and industrial loans , and $ 81,000 of consumer and residential mortgage loans . foreclosed and repossessed assets include assets acquired in settlement of loans . foreclosed assets totaled $ 12.3 million at december 31 , 2016 and $ 17.6 million at december 31 , 2015. of this balance at december 31 , 2016 , there were 34 commercial real estate properties totaling approximately $ 11.7 million . the remaining balance was comprised of 7 residential properties totaling approximately $ 564,000. one commercial real estate property comprised $ 3.4 million , or 28 % , of total other real estate owned at december 31 , 2016. all properties acquired through or in lieu of foreclosure are initially transferred at their fair value less estimated costs to sell and then evaluated monthly for impairment after transfer using a lower of cost or market approach . updated property valuations are obtained at least annually on all foreclosed assets . at december 31 , 2016 , our foreclosed asset portfolio had a weighted average age held in portfolio of 5.35 years . below is a breakout of our foreclosed asset portfolio at december 31 , 2016 and 2015 by property type and the percentages the property has been written down since taken into our possession and the combined writedown percentage , including losses taken when the property was loan collateral ( dollars in thousands ) : replace_table_token_23_th - 35 - the following table shows the composition and amount of our nonperforming assets ( dollars in thousands ) : replace_table_token_24_th the following table shows the composition and amount of our troubled debt restructurings ( “ tdrs ” ) at december 31 , 2016 and 2015 ( dollars in thousands ) : replace_table_token_25_th ( 1 ) included in nonperforming asset table above we had a total of $ 30.0 million and $ 39.1 million of loans whose terms have been modified in tdrs as of december 31 , 2016 and 2015 , respectively . these loans may have involved the restructuring of terms to allow customers to mitigate the risk of foreclosure by meeting a lower loan payment requirement based upon their current cash flow . these may also include loans that renewed at existing contractual rates , but below market rates for comparable credit . for each restructuring , a comprehensive credit underwriting analysis of the borrower 's financial condition and prospects of repayment under the revised terms is performed to assess whether the structure can be successful and that cash flows will be sufficient to support the restructured debt . an analysis is also performed to determine whether the restructured loan should be on accrual status . generally , if the loan is on accrual at the time of restructure , it will remain on accrual after the restructuring . in some cases , a nonaccrual loan may be placed on accrual at restructuring if the loan 's actual payment history demonstrates it would have cash flowed under the restructured terms . after six consecutive payments under the restructured terms , a nonaccrual restructured loan is reviewed for possible upgrade to accruing status . in situations where there is a subsequent modification or renewal and the loan is brought to market terms , including a contractual interest rate not less than a market interest rate for new debt with similar credit risk characteristics , the tdr and impaired designations may be removed . as with other impaired loans , an allowance for loan loss is estimated for each tdr based on the most likely source of repayment for each loan . for impaired commercial real estate loans that are collateral
| cash and cash equivalents : our cash and cash equivalents , which include federal funds sold and short-term investments , were $ 89.8 million at december 31 , 2016 compared to $ 181.5 million at december 31 , 2015. this $ 91.7 million decrease was caused by our efforts to grow loans and investments resulting in the deployment of excess liquidity . interest-bearing time deposits with other financial institutions : we opened a $ 20.0 million time deposit account with our primary correspondent bank in the first quarter of 2014. this time deposit matured in february 2016 . - 32 - securities : securities available for sale were $ 184.4 million at december 31 , 2016 compared to $ 166.8 million at december 31 , 2015. the balance at december 31 , 2016 primarily consisted of u.s. agency securities , agency mortgage backed securities and various municipal investments . our held to maturity portfolio increased from $ 51.9 million at december 31 , 2015 to $ 69.4 million at december 31 , 2016. our held to maturity portfolio is comprised of state and municipal bonds . portfolio loans and asset quality : total portfolio loans increased by $ 82.9 million to $ 1.28 billion at december 31 , 2016 compared to $ 1.20 billion at december 31 , 2015. during 2016 , our commercial portfolio increased by $ 81.4 million , while our residential portfolio increased by $ 7.6 million and our consumer portfolio decreased by $ 6.1 million . the volume of residential mortgage loans originated for sale in 2016 increased slightly compared to 2015 due to the mortgage rate environment and our increase in the number of residential mortgage lenders .
| 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 : our cash and cash equivalents , which include federal funds sold and short-term investments , were $ 89.8 million at december 31 , 2016 compared to $ 181.5 million at december 31 , 2015. this $ 91.7 million decrease was caused by our efforts to grow loans and investments resulting in the deployment of excess liquidity . interest-bearing time deposits with other financial institutions : we opened a $ 20.0 million time deposit account with our primary correspondent bank in the first quarter of 2014. this time deposit matured in february 2016 . - 32 - securities : securities available for sale were $ 184.4 million at december 31 , 2016 compared to $ 166.8 million at december 31 , 2015. the balance at december 31 , 2016 primarily consisted of u.s. agency securities , agency mortgage backed securities and various municipal investments . our held to maturity portfolio increased from $ 51.9 million at december 31 , 2015 to $ 69.4 million at december 31 , 2016. our held to maturity portfolio is comprised of state and municipal bonds . portfolio loans and asset quality : total portfolio loans increased by $ 82.9 million to $ 1.28 billion at december 31 , 2016 compared to $ 1.20 billion at december 31 , 2015. during 2016 , our commercial portfolio increased by $ 81.4 million , while our residential portfolio increased by $ 7.6 million and our consumer portfolio decreased by $ 6.1 million . the volume of residential mortgage loans originated for sale in 2016 increased slightly compared to 2015 due to the mortgage rate environment and our increase in the number of residential mortgage lenders .
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Suspicious Activity Report : the negative provision in each period was also impacted by other recoveries from our collection efforts and a continual decline in our historical charge-off levels from prior years . we had our fourth consecutive full year of net recoveries in 2016. the following table reflects the provision for loan losses for the past five years along with certain metrics that impact the determination of the level of the provision for loan losses . replace_table_token_14_th economic conditions in our market areas of grand rapids and holland have improved during the past several years . the state 's unemployment rate at the end of 2016 was 4.5 % . the grand rapids and holland area unemployment rate was 3.1 % at the end of 2016. residential housing values and commercial real estate property values have shown signs of improvement , with some of our newer appraisals tending to reflect values at or above prior year values . it also appears that the housing market in our primary market area is improving . in the grand rapids market during 2016 , there were 65 % more living unit starts than in 2015. similarly , in the holland-grand haven/lakeshore region , there were 27 % more living unit starts in 2016 than in 2015. these improvements are on top of improved results in 2015 over 2014. also , these markets are now also seeing significant activity in duplex , condominium and apartment starts after years of virtually no activity . beginning in 2014 , with our improved financial condition , and earnings growth , our primary focus was on high quality loan portfolio growth . we experienced strong commercial loan growth in the fourth quarter of 2014 and throughout 2015 and 2016. most of our emphasis has been on growing commercial and industrial loans . these loans have increased from $ 274.1 million at december 31 , 2013 to $ 327.7 million at december 31 , 2014 , $ 377.3 million at december 31 , 2015 and $ 449.3 million at december 31 , 2016. commercial real estate loans have increased from $ 472.3 million at december 31 , 2013 to $ 490.5 million at december 31 , 2014 , $ 508.7 million at december 31 , 2015 and $ 518.0 million at december 31 , 2016. consumer loans have increased from $ 295.9 million at december 31 , 2013 to $ 300.3 million at december 31 , 2014 , $ 312.0 million at december 31 , 2015 and $ 313.5 million at december 31 , 2016. we believe we are positioned for continued growth in 2017. results of operations summary : net income was $ 16.0 million ( $ 22.2 million on a pretax basis ) for 2016 , compared to $ 12.8 million ( $ 18.4 million on a pretax basis ) and $ 10.5 million ( $ 15.0 million on a pretax basis ) for 2014. earnings per common share on a diluted basis was $ 0.47 for 2016 , $ 0.38 for 2015 and $ 0.31 for 2014. generally , the improvement in company earnings was the result of growth in revenue while expenses have been held flat . the increase in earnings in 2016 compared to 2015 and 2014 was due primarily to increased net interest income and noninterest income , along with a reduction in noninterest expense . net interest income increased to $ 47.5 million in 2016 compared to $ 44.1 million in 2015 and $ 41.4 million in 2014. we realized a higher level of income from gains on sales of residential mortgages in 2016 and 2015 compared to 2014 due to the extended low interest rate environment . total noninterest expense was $ 45.8 million in 2016 compared to $ 47.0 million in 2015 and $ 45.9 million in 2014. earnings in each period were positively impacted by negative provisions for loan losses ( $ 1.35 million in 2016 , $ 3.5 million in 2015 and $ 3.35 million in 2014 ) . these negative provisions resulted from reduced levels of nonperforming loans , improved asset quality and net loan recoveries realized in each of these periods . these items are discussed more fully below . - 26 - we continued our improvement in nonperforming asset expenses in 2016. costs associated with nonperforming assets were $ 1.3 million in 2016 , compared to $ 3.0 million in 2015 and $ 3.1 million in 2014. lost interest from nonperforming assets decreased to approximately $ 572,000 for 2016 , compared to $ 1.4 million for 2015 and $ 1.9 million for 2014. each of these items are discussed more fully below . net interest income : net interest income totaled $ 47.5 million during 2016 , compared to $ 44.1 million during 2015 and $ 41.4 million in 2014. the increase in net interest income during 2016 compared to 2015 marked our second consecutive year with an increase in net interest income , following several years of declining net interest income . this increase was primarily due to an increase in average earning assets of $ 63.9 million from $ 1.48 billion in 2015 to $ 1.55 billion in 2016. average yield on securities , interest earning assets and net interest margin are presented on a fully taxable equivalent basis . our net interest income as a percentage of average interest-earning assets ( i.e . `` net interest margin `` or `` margin `` ) increased by 10 basis points compared to 2015. the increase in net interest income during 2015 compared to 2014 was due to an increase in average earning assets of $ 129.4 million from $ 1.35 billion in 2014 to $ 1.48 billion in 2015. our net interest margin decreased by 6 basis points in 2015 compared to 2014. the yield on earning assets increased 6 basis points from 3.36 % for 2015 to 3.42 % for 2016 and decreased 12 basis points from 3.48 % for 2014 to 3.36 % story_separator_special_tag story_separator_special_tag loan type and also shows average originated loan size ( dollars in thousands ) : replace_table_token_22_th our loan portfolio is reviewed regularly by our senior management , our loan officers , and an internal loan review team that is independent of our loan originators and credit administration . an administrative loan committee consisting of senior management and seasoned lending and collections personnel meets monthly to manage our internal watch list and proactively manage high risk loans . when reasonable doubt exists concerning collectability of interest or principal of one of our loans , the loan is placed in nonaccrual status . any interest previously accrued but not collected is reversed and charged against current earnings . - 34 - nonperforming assets are comprised of nonperforming loans , foreclosed assets and repossessed assets . at december 31 , 2016 , nonperforming assets totaled $ 12.6 million compared to $ 18.3 million at december 31 , 2015. additions to other real estate owned in 2016 were $ 339,000 , compared to $ 2.5 million in 2015. based on the loans currently in their redemption period , we expect there to be few additions to other real estate owned in 2017. proceeds from sales of foreclosed properties were $ 5.3 million in 2016 , resulting in a net realized gain on sale of $ 645,000. proceeds from sales of foreclosed properties were $ 11.5 million in 2015 resulting in a net realized loss on sale of $ 926,000. we expect the level of sales of foreclosed properties in 2017 to be similar to the levels experienced in 2016. nonperforming loans include loans on nonaccrual status and loans delinquent more than 90 days but still accruing . as of december 31 , 2016 , nonperforming loans totaled $ 300,000 , or 0.04 % of total portfolio loans , compared to $ 756,000 , or 0.06 % of total portfolio loans , at december 31 , 2015. there were no nonperforming loans for development or sale of 1-4 family residential properties at december 31 , 2016 compared to $ 195,000 , or 25.8 % of total nonperforming loans , at december 31 , 2015. the remaining balance of nonperforming loans at december 31 , 2016 consisted of $ 183,000 of commercial real estate loans secured by various types of non-residential real estate , $ 36,000 of commercial and industrial loans , and $ 81,000 of consumer and residential mortgage loans . foreclosed and repossessed assets include assets acquired in settlement of loans . foreclosed assets totaled $ 12.3 million at december 31 , 2016 and $ 17.6 million at december 31 , 2015. of this balance at december 31 , 2016 , there were 34 commercial real estate properties totaling approximately $ 11.7 million . the remaining balance was comprised of 7 residential properties totaling approximately $ 564,000. one commercial real estate property comprised $ 3.4 million , or 28 % , of total other real estate owned at december 31 , 2016. all properties acquired through or in lieu of foreclosure are initially transferred at their fair value less estimated costs to sell and then evaluated monthly for impairment after transfer using a lower of cost or market approach . updated property valuations are obtained at least annually on all foreclosed assets . at december 31 , 2016 , our foreclosed asset portfolio had a weighted average age held in portfolio of 5.35 years . below is a breakout of our foreclosed asset portfolio at december 31 , 2016 and 2015 by property type and the percentages the property has been written down since taken into our possession and the combined writedown percentage , including losses taken when the property was loan collateral ( dollars in thousands ) : replace_table_token_23_th - 35 - the following table shows the composition and amount of our nonperforming assets ( dollars in thousands ) : replace_table_token_24_th the following table shows the composition and amount of our troubled debt restructurings ( “ tdrs ” ) at december 31 , 2016 and 2015 ( dollars in thousands ) : replace_table_token_25_th ( 1 ) included in nonperforming asset table above we had a total of $ 30.0 million and $ 39.1 million of loans whose terms have been modified in tdrs as of december 31 , 2016 and 2015 , respectively . these loans may have involved the restructuring of terms to allow customers to mitigate the risk of foreclosure by meeting a lower loan payment requirement based upon their current cash flow . these may also include loans that renewed at existing contractual rates , but below market rates for comparable credit . for each restructuring , a comprehensive credit underwriting analysis of the borrower 's financial condition and prospects of repayment under the revised terms is performed to assess whether the structure can be successful and that cash flows will be sufficient to support the restructured debt . an analysis is also performed to determine whether the restructured loan should be on accrual status . generally , if the loan is on accrual at the time of restructure , it will remain on accrual after the restructuring . in some cases , a nonaccrual loan may be placed on accrual at restructuring if the loan 's actual payment history demonstrates it would have cash flowed under the restructured terms . after six consecutive payments under the restructured terms , a nonaccrual restructured loan is reviewed for possible upgrade to accruing status . in situations where there is a subsequent modification or renewal and the loan is brought to market terms , including a contractual interest rate not less than a market interest rate for new debt with similar credit risk characteristics , the tdr and impaired designations may be removed . as with other impaired loans , an allowance for loan loss is estimated for each tdr based on the most likely source of repayment for each loan . for impaired commercial real estate loans that are collateral
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2,664 | we continue to explore and discuss opportunities to expand the scope of our alternative investment and private equity activities in europe , the u.s. and elsewhere . these opportunities could include internal growth of new funds and direct investments by us , partnerships or strategic relationships , investments with third parties or acquisitions of existing funds or management companies . also , consistent with our obligations to lfcm holdings llc ( lfcm holdings ) , we may explore discrete capital markets opportunities . business environment economic and global financial market conditions can materially affect our financial performance . as described above , our principal sources of revenue are derived from activities in our financial advisory and asset management business segments . as our financial advisory revenues are for the most part dependent on the successful completion of merger , acquisition , restructuring , capital raising or similar transactions , and our asset management revenues are primarily driven by the levels of assets under management ( aum ) , weak economic and global financial market conditions can result in a challenging business environment for m & a and capital-raising activity as well as our asset management business , but may provide opportunities for our restructuring business . overall , equity market indices at december 31 , 2011 reflected little change in the u.s. , and declined outside the u.s. , when compared to such indices at december 31 , 2010 , with periods of significant volatility during the year . for the same period , capital-raising and m & a activity were uneven due to economic uncertainty caused by concerns over the scope and depth of the sovereign debt situation in europe , the u.s. debt ceiling and related rating agency downgrade issues and continuing high u.s. unemployment , among other factors . the announced value of m & a activity increased modestly when compared to 2010. restructuring activity continued at low levels , reflecting a cyclical decline in restructuring activity and a decrease in the number of corporate defaults . entering 2012 , the outlook for equity and credit markets appears healthier , interest rates remain low while corporate cash balances remain high , ceo confidence appears to be improving and , as such , companies may be better positioned to make acquisitions for future growth and investors may be increasingly interested in deploying capital for investment purposes . uncertainty remains , however , with regard to the stability of the global financial system and a variety of other factors . in recent years , we have expanded our geographic reach , bolstered our industry expertise and continued to build in growth areas . companies , government bodies and investors seek independent advice with a geographic perspective , deep understanding of capital structure , informed research and knowledge of global economic conditions . we believe that our business model as an independent advisor will continue to create opportunities for us to attract new clients and key personnel . we seek to leverage the power and scale of our firm-wide global network to drive growth in both our financial advisory and asset management business segments . we believe that we are well positioned to benefit from opportunities that may result from regional or global increases in m & a , restructuring , capital-raising or similar transactions , as well as increases in demand for investment management and advisory services . we continue to focus on the development of our business in this environment and on a wide variety of related factors , including the generation of stable revenue growth during periods of macroeconomic volatility , the prudent management of our costs and expenses and the return of cash to our shareholders . we operate in a very competitive and rapidly changing environment . new risks and uncertainties emerge from time to time , and it is not possible for our management to predict all risks and uncertainties , nor can we assess the impact of all potentially applicable factors on our business or the extent to which any factor , or combination of factors , may cause actual results to differ materially from those contained in any forward-looking statements . see the section entitled risk factors in this form 10-k. furthermore , net income and revenue in any period may not be indicative of full-year results or the results of any other period and may vary significantly from year to year and quarter to quarter . 38 financial advisory as shown in the following table , during 2011 the value and number of completed and announced m & a transactions increased as compared to 2010 , despite the overall decline in the value of both announced and completed transactions during the second half of 2011 versus the corresponding prior year period . replace_table_token_5_th source : dealogic as of january 16 , 2012. we continue to believe that we are relatively well positioned as our clients refinance , restructure and reposition their asset portfolios for growth . global restructuring activity during 2011 decreased from 2010 levels driven by a cyclical decline , resulting in a decelerating pace of corporate debt defaults . according to moody 's investors service , inc. , during 2011 a total of 36 issuers defaulted , as compared to 61 in 2010. while the number and value of corporate defaults for 2011 are significantly lower as compared to 2010 , we expect that our restructuring business will remain active . our restructuring activities include advising companies on matters relating to debt restructurings , refinancings and other on- and off-balance sheet assignments . our restructuring assignments are generally executed over a six- to eighteen-month period . story_separator_special_tag ( c ) consists of acceleration of amortization expense of ( i ) $ 86,514 in connection with the vesting of share-based incentive awards held by lazard 's former chairman and chief executive officer as a result of his death in october 2009 and ( ii ) $ 60,512 related to the unamortized portion of previously awarded deferred cash incentive awards ( no portion of which relates to lazard 's former chairman and chief executive officer ) . ( d ) provision relating to the restructuring plan announced in the first quarter of 2009 . ( e ) there was no benefit pursuant to the tax receivable agreement relating to the 2009 special items . 43 the consolidated financial statements are prepared in conformity with accounting principles generally accepted in the united states of america ( u.s . gaap ) . selected financial data from the company 's reported consolidated results of operations is set forth below , followed by a more detailed discussion of both consolidated and business segment results . replace_table_token_8_th the tables below describe the components of operating revenue , adjusted and awarded compensation and benefits expense and related key ratios , which include non-u.s. gaap measures used by the company to manage total compensation and benefits expense . we believe such non-u.s. gaap measures provide the most meaningful basis for comparison between present , historical and future periods , as described above . replace_table_token_9_th ( a ) interest expense incurred by lfb is reported as a charge in determining operating revenue because lfb is a commercial bank and we consider its interest expense to be a cost directly related to the revenues of its business . ( b ) revenue related to the consolidation of noncontrolling interests is excluded from operating revenue because the company has no economic interest in such amount . ( c ) gain on the repurchase of the company 's subordinated promissory note is excluded from operating revenue because of the non-operating nature of such transaction . ( d ) changes in the fair value of investments held in connection with lazard fund interests and other similar deferred compensation arrangements are excluded from operating revenue because they are equally offset by the change in value of the derivative liability pertaining to such awards , which is recorded within compensation and benefits expense . 44 replace_table_token_10_th ( a ) expenses related to the consolidation of noncontrolling interests are excluded because , as is the case with operating revenue , lazard has no economic interest in such amounts . ( b ) changes in fair value of the derivative compensation liability recorded in connection with lazard fund interests and other similar deferred compensation arrangements are excluded from compensation and benefits expense because such amounts are equally offset by a corresponding change in the fair value of the underlying investments excluded from operating revenue . ( c ) includes base salaries and benefits of $ 506,490 , $ 453,193 and $ 422,614 for 2011 , 2010 and 2009 , respectively , and cash incentive compensation of $ 372,373 , $ 472,484 and $ 404,569 for the respective years . ( d ) grant date fair value of deferred incentive compensation awards granted applicable to the relevant year-end compensation process ( e.g . grant date fair value of deferred incentive awards granted in 2012 , 2011 and 2010 related to the 2011 , 2010 and 2009 year-end compensation processes , respectively ) . ( e ) represents deferred incentive compensation awards that are granted outside the year-end compensation process , and includes investments in people ( e.g . sign-on bonuses ) . ( f ) an estimate , based on historical experience and future expectations , for future forfeitures of the deferred portion of such awards in order to present awarded compensation and benefits expense on a similar basis to that under u.s. gaap , which also considers estimated forfeitures . ( g ) represents an adjustment to the year-end foreign exchange spot rate from the full year average rate for year- end incentive compensation awards . 45 certain additional key ratios and headcount information are set forth below : replace_table_token_11_th operating results as reflected in the table above , the 2010 and 2009 special items had a significant impact on the company 's reported operating results for the respective years . lazard management believes that comparisons between years are most meaningful after excluding the impact of such items . year ended december 31 , 2011 versus december 31 , 2010 the company reported net income attributable to lazard ltd in both 2011 and 2010 of $ 175 million . the company 's results in 2010 were significantly impacted by the 2010 special items , which served to decrease net income attributable to lazard ltd by $ 72 million . accordingly , excluding the after-tax impact of the 2010 special items , net income attributable to lazard ltd in 2011 decreased $ 72 million , or 29 % , as compared to 2010. the changes in the company 's operating results during these years are described below . net revenue decreased by $ 76 million , or 4 % , with operating revenue decreasing by $ 95 million , or 5 % . fees from investment banking and other advisory activities decreased $ 135 million , or 12 % , reflecting the continued cyclical decline in restructuring activity and the number of corporate debt defaults , as well as a slowdown in overall m & a activity . restructuring fee revenues in 2011 declined by $ 96 million , or 33 % . m & a and strategic advisory fees in 2011 decreased $ 14 million , or 2 % . money management fees , including incentive fees , increased $ 47 million , or 6 % , primarily due to a $ 102 million , or 14 % , increase in money management fees principally reflecting a $ 15 billion , or 11 % ,
| liquidity and capital resources the company 's liquidity and capital resources are derived from operating activities , financing agreements and equity offerings . operating activities net revenue , operating income and cash receipts fluctuate significantly between quarters . in the case of financial advisory , fee receipts are generally dependent upon the successful completion of client transactions , the occurrence and timing of which is irregular and not subject to lazard 's control . in the case of asset management , incentive fees earned on aum are generally not earned until the end of the applicable measurement period , which is generally the fourth quarter of lazard 's fiscal year , with the respective receivable collected in the first quarter of the following year . 58 liquidity is significantly impacted by cash payments for , or in respect of , incentive compensation , a significant portion of which are made during the first three months of the year . as a consequence , cash on hand generally declines in the beginning of the year and gradually builds over the remainder of the year . we also pay certain tax advances during the year on behalf of our managing directors , which serve to reduce their respective incentive compensation payments . we expect this seasonal pattern of cash flow to continue . lazard 's consolidated financial statements are presented in u.s. dollars . many of lazard 's non-u.s. subsidiaries have a functional currency ( i.e . , the currency in which operational activities are primarily conducted ) that is other than the u.s. dollar , generally the currency of the country in which such subsidiaries are domiciled . such subsidiaries ' assets and liabilities are translated into u.s. dollars at the respective balance sheet date exchange rates , while revenue and expenses are translated at average exchange rates during the year based on the daily closing exchange rates . adjustments that result from translating amounts from a subsidiary 's functional currency are reported as a component of members'/stockholders ' equity . foreign currency remeasurement gains and losses on transactions in non-functional currencies are included on the consolidated statements of operations .
| 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 liquidity and capital resources are derived from operating activities , financing agreements and equity offerings . operating activities net revenue , operating income and cash receipts fluctuate significantly between quarters . in the case of financial advisory , fee receipts are generally dependent upon the successful completion of client transactions , the occurrence and timing of which is irregular and not subject to lazard 's control . in the case of asset management , incentive fees earned on aum are generally not earned until the end of the applicable measurement period , which is generally the fourth quarter of lazard 's fiscal year , with the respective receivable collected in the first quarter of the following year . 58 liquidity is significantly impacted by cash payments for , or in respect of , incentive compensation , a significant portion of which are made during the first three months of the year . as a consequence , cash on hand generally declines in the beginning of the year and gradually builds over the remainder of the year . we also pay certain tax advances during the year on behalf of our managing directors , which serve to reduce their respective incentive compensation payments . we expect this seasonal pattern of cash flow to continue . lazard 's consolidated financial statements are presented in u.s. dollars . many of lazard 's non-u.s. subsidiaries have a functional currency ( i.e . , the currency in which operational activities are primarily conducted ) that is other than the u.s. dollar , generally the currency of the country in which such subsidiaries are domiciled . such subsidiaries ' assets and liabilities are translated into u.s. dollars at the respective balance sheet date exchange rates , while revenue and expenses are translated at average exchange rates during the year based on the daily closing exchange rates . adjustments that result from translating amounts from a subsidiary 's functional currency are reported as a component of members'/stockholders ' equity . foreign currency remeasurement gains and losses on transactions in non-functional currencies are included on the consolidated statements of operations .
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Suspicious Activity Report : we continue to explore and discuss opportunities to expand the scope of our alternative investment and private equity activities in europe , the u.s. and elsewhere . these opportunities could include internal growth of new funds and direct investments by us , partnerships or strategic relationships , investments with third parties or acquisitions of existing funds or management companies . also , consistent with our obligations to lfcm holdings llc ( lfcm holdings ) , we may explore discrete capital markets opportunities . business environment economic and global financial market conditions can materially affect our financial performance . as described above , our principal sources of revenue are derived from activities in our financial advisory and asset management business segments . as our financial advisory revenues are for the most part dependent on the successful completion of merger , acquisition , restructuring , capital raising or similar transactions , and our asset management revenues are primarily driven by the levels of assets under management ( aum ) , weak economic and global financial market conditions can result in a challenging business environment for m & a and capital-raising activity as well as our asset management business , but may provide opportunities for our restructuring business . overall , equity market indices at december 31 , 2011 reflected little change in the u.s. , and declined outside the u.s. , when compared to such indices at december 31 , 2010 , with periods of significant volatility during the year . for the same period , capital-raising and m & a activity were uneven due to economic uncertainty caused by concerns over the scope and depth of the sovereign debt situation in europe , the u.s. debt ceiling and related rating agency downgrade issues and continuing high u.s. unemployment , among other factors . the announced value of m & a activity increased modestly when compared to 2010. restructuring activity continued at low levels , reflecting a cyclical decline in restructuring activity and a decrease in the number of corporate defaults . entering 2012 , the outlook for equity and credit markets appears healthier , interest rates remain low while corporate cash balances remain high , ceo confidence appears to be improving and , as such , companies may be better positioned to make acquisitions for future growth and investors may be increasingly interested in deploying capital for investment purposes . uncertainty remains , however , with regard to the stability of the global financial system and a variety of other factors . in recent years , we have expanded our geographic reach , bolstered our industry expertise and continued to build in growth areas . companies , government bodies and investors seek independent advice with a geographic perspective , deep understanding of capital structure , informed research and knowledge of global economic conditions . we believe that our business model as an independent advisor will continue to create opportunities for us to attract new clients and key personnel . we seek to leverage the power and scale of our firm-wide global network to drive growth in both our financial advisory and asset management business segments . we believe that we are well positioned to benefit from opportunities that may result from regional or global increases in m & a , restructuring , capital-raising or similar transactions , as well as increases in demand for investment management and advisory services . we continue to focus on the development of our business in this environment and on a wide variety of related factors , including the generation of stable revenue growth during periods of macroeconomic volatility , the prudent management of our costs and expenses and the return of cash to our shareholders . we operate in a very competitive and rapidly changing environment . new risks and uncertainties emerge from time to time , and it is not possible for our management to predict all risks and uncertainties , nor can we assess the impact of all potentially applicable factors on our business or the extent to which any factor , or combination of factors , may cause actual results to differ materially from those contained in any forward-looking statements . see the section entitled risk factors in this form 10-k. furthermore , net income and revenue in any period may not be indicative of full-year results or the results of any other period and may vary significantly from year to year and quarter to quarter . 38 financial advisory as shown in the following table , during 2011 the value and number of completed and announced m & a transactions increased as compared to 2010 , despite the overall decline in the value of both announced and completed transactions during the second half of 2011 versus the corresponding prior year period . replace_table_token_5_th source : dealogic as of january 16 , 2012. we continue to believe that we are relatively well positioned as our clients refinance , restructure and reposition their asset portfolios for growth . global restructuring activity during 2011 decreased from 2010 levels driven by a cyclical decline , resulting in a decelerating pace of corporate debt defaults . according to moody 's investors service , inc. , during 2011 a total of 36 issuers defaulted , as compared to 61 in 2010. while the number and value of corporate defaults for 2011 are significantly lower as compared to 2010 , we expect that our restructuring business will remain active . our restructuring activities include advising companies on matters relating to debt restructurings , refinancings and other on- and off-balance sheet assignments . our restructuring assignments are generally executed over a six- to eighteen-month period . story_separator_special_tag ( c ) consists of acceleration of amortization expense of ( i ) $ 86,514 in connection with the vesting of share-based incentive awards held by lazard 's former chairman and chief executive officer as a result of his death in october 2009 and ( ii ) $ 60,512 related to the unamortized portion of previously awarded deferred cash incentive awards ( no portion of which relates to lazard 's former chairman and chief executive officer ) . ( d ) provision relating to the restructuring plan announced in the first quarter of 2009 . ( e ) there was no benefit pursuant to the tax receivable agreement relating to the 2009 special items . 43 the consolidated financial statements are prepared in conformity with accounting principles generally accepted in the united states of america ( u.s . gaap ) . selected financial data from the company 's reported consolidated results of operations is set forth below , followed by a more detailed discussion of both consolidated and business segment results . replace_table_token_8_th the tables below describe the components of operating revenue , adjusted and awarded compensation and benefits expense and related key ratios , which include non-u.s. gaap measures used by the company to manage total compensation and benefits expense . we believe such non-u.s. gaap measures provide the most meaningful basis for comparison between present , historical and future periods , as described above . replace_table_token_9_th ( a ) interest expense incurred by lfb is reported as a charge in determining operating revenue because lfb is a commercial bank and we consider its interest expense to be a cost directly related to the revenues of its business . ( b ) revenue related to the consolidation of noncontrolling interests is excluded from operating revenue because the company has no economic interest in such amount . ( c ) gain on the repurchase of the company 's subordinated promissory note is excluded from operating revenue because of the non-operating nature of such transaction . ( d ) changes in the fair value of investments held in connection with lazard fund interests and other similar deferred compensation arrangements are excluded from operating revenue because they are equally offset by the change in value of the derivative liability pertaining to such awards , which is recorded within compensation and benefits expense . 44 replace_table_token_10_th ( a ) expenses related to the consolidation of noncontrolling interests are excluded because , as is the case with operating revenue , lazard has no economic interest in such amounts . ( b ) changes in fair value of the derivative compensation liability recorded in connection with lazard fund interests and other similar deferred compensation arrangements are excluded from compensation and benefits expense because such amounts are equally offset by a corresponding change in the fair value of the underlying investments excluded from operating revenue . ( c ) includes base salaries and benefits of $ 506,490 , $ 453,193 and $ 422,614 for 2011 , 2010 and 2009 , respectively , and cash incentive compensation of $ 372,373 , $ 472,484 and $ 404,569 for the respective years . ( d ) grant date fair value of deferred incentive compensation awards granted applicable to the relevant year-end compensation process ( e.g . grant date fair value of deferred incentive awards granted in 2012 , 2011 and 2010 related to the 2011 , 2010 and 2009 year-end compensation processes , respectively ) . ( e ) represents deferred incentive compensation awards that are granted outside the year-end compensation process , and includes investments in people ( e.g . sign-on bonuses ) . ( f ) an estimate , based on historical experience and future expectations , for future forfeitures of the deferred portion of such awards in order to present awarded compensation and benefits expense on a similar basis to that under u.s. gaap , which also considers estimated forfeitures . ( g ) represents an adjustment to the year-end foreign exchange spot rate from the full year average rate for year- end incentive compensation awards . 45 certain additional key ratios and headcount information are set forth below : replace_table_token_11_th operating results as reflected in the table above , the 2010 and 2009 special items had a significant impact on the company 's reported operating results for the respective years . lazard management believes that comparisons between years are most meaningful after excluding the impact of such items . year ended december 31 , 2011 versus december 31 , 2010 the company reported net income attributable to lazard ltd in both 2011 and 2010 of $ 175 million . the company 's results in 2010 were significantly impacted by the 2010 special items , which served to decrease net income attributable to lazard ltd by $ 72 million . accordingly , excluding the after-tax impact of the 2010 special items , net income attributable to lazard ltd in 2011 decreased $ 72 million , or 29 % , as compared to 2010. the changes in the company 's operating results during these years are described below . net revenue decreased by $ 76 million , or 4 % , with operating revenue decreasing by $ 95 million , or 5 % . fees from investment banking and other advisory activities decreased $ 135 million , or 12 % , reflecting the continued cyclical decline in restructuring activity and the number of corporate debt defaults , as well as a slowdown in overall m & a activity . restructuring fee revenues in 2011 declined by $ 96 million , or 33 % . m & a and strategic advisory fees in 2011 decreased $ 14 million , or 2 % . money management fees , including incentive fees , increased $ 47 million , or 6 % , primarily due to a $ 102 million , or 14 % , increase in money management fees principally reflecting a $ 15 billion , or 11 % ,
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2,665 | information privacy or other negative impact ; the impact of laws and regulations relating to privacy and security of patient health information and standards for electronic transactions ; the impact of a change in the mix of our earnings , and changes in tax rates and laws generally ; failure to maintain effective internal control over financial reporting ; the impact of fluctuations in our operating results , quarter to quarter earnings and other factors on the price of our securities ; the impact of the trend for insurance companies and managed care organizations to enter into sole source contracts on our ability to obtain patients ; 46 the impact of fluctuations in foreign exchange rates ; and those risks and uncertainties described from time to time in our filings with the securities and exchange commission . given these risks and uncertainties , you are cautioned not to place undue reliance on such forward-looking statements . these risks and uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements . these forward-looking statements are made only as of the date of this annual report on form 10-k. we do not undertake and specifically decline any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments . overview our business strategy is to acquire and develop behavioral healthcare facilities and improve our operating results within our facilities and our other behavioral healthcare operations . we strive to improve the operating results of our facilities by providing high-quality services , expanding referral networks and marketing initiatives while meeting the increased demand for behavioral healthcare services through expansion of our current locations as well as developing new services within existing locations . at december 31 , 2015 , we operated 258 behavioral healthcare facilities with over 9,900 beds in 39 states , the united kingdom and puerto rico . during the year ended december 31 , 2015 , we acquired 176 facilities and added approximately 670 new beds , including 460 to existing facilities and 210 in two de novo facilities . for the year ending december 31 , 2016 , we expect to add approximately 800 total beds exclusive of acquisitions . we are the leading publicly traded pure-play provider of behavioral healthcare services , with operations in the united states and the united kingdom . management believes that the company 's recent acquisitions position the company as a leading platform in a highly fragmented industry under the direction of an experienced management team that has significant industry expertise . management expects to take advantage of several strategies that are more accessible as a result of our increased size and geographic scale , including continuing a national marketing strategy to attract new patients and referral sources , increasing our volume of out-of-state referrals , providing a broader range of services to new and existing patients and clients and selectively pursuing opportunities to expand our facility and bed count . acquisitions on february 16 , 2016 , we completed the acquisition of priory for a total purchase price of approximately $ 2.2 billion , including total cash consideration of approximately $ 1.9 billion and 4,033,561 shares our common stock . priory is the leading independent provider of behavioral healthcare services in the united kingdom . at december 31 , 2015 , priory operated 327 facilities with approximately 7,100 beds . on december 1 , 2015 , we completed the acquisition of certain facilities from mmo , including two acute inpatient behavioral health facilities with a total of 80 beds located in jennings and covington , louisiana , for cash consideration of approximately $ 20.2 million . on november 1 , 2015 , we completed the acquisitions of ( i ) discovery house for cash consideration of approximately $ 118.5 million , ( ii ) duffy 's for cash consideration of approximately $ 29.6 million and ( iii ) cleveland house for approximately $ 10.3 million . discovery house operates 19 comprehensive treatment centers located in four states . duffy 's is a substance abuse facility with 61 beds located in calistoga , california . cleveland house is an inpatient psychiatric facility with 32 beds located in england . on october 1 , 2015 , we completed the acquisition of meadow view , an inpatient psychiatric facility with 28 beds located in england , for cash consideration of approximately $ 6.8 million . on september 1 , 2015 , we completed the acquisitions of ( i ) three facilities from danshell for approximately $ 59.8 million , ( ii ) two facilities from h & scp for approximately $ 26.2 million and ( iii ) manor hall for approximately $ 14.0 million . the inpatient psychiatric facilities acquired from danshell have an aggregate of 73 beds and are located in england . the inpatient psychiatric facilities acquired from h & scp have an aggregate of 50 beds and are located in england . manor hall has 26 beds and is located in england . on august 31 , 2015 , we completed the acquisition of a controlling interest in southcoast , an inpatient psychiatric facility located in fairhaven , massachusetts . we own 75 % of the equity interests in the facility . on july 1 , 2015 , we completed the acquisition of the assets of belmont , an inpatient psychiatric facility with 147 beds located in philadelphia , pennsylvania for cash consideration of approximately $ 38.2 million which consists of $ 35.0 million base purchase price and an estimated working capital settlement of $ 3.2 million . 47 on july 1 , 2015 , we completed the acquisition of the manor clinic , a substance abuse facility with 15 beds located in england , for cash consideration of approximately $ 5.9 million . story_separator_special_tag on february 13 , 2014 , we entered into the fourth amendment to the amended and restated credit agreement , to increase the size of the amended and restated senior credit facility and extend the maturity date thereof , which resulted in the company having a revolving line of credit of up to $ 300.0 million and term loans of $ 300.0 million . the fourth amendment also reduced the interest rates applicable to the amended and restated senior credit facility and provided increased flexibility to the company in terms of the financial and other restrictive covenants . the fourth amendment also provides for a $ 150.0 million incremental credit facility , with the potential for unlimited additional incremental amounts , provided the company meets certain financial ratios , in each case subject to customary conditions precedent to borrowing . on june 16 , 2014 , we entered into the fifth amendment to the amended and restated senior credit facility . the fifth amendment specifically permitted the acquisition of partnerships in care , gave us the ability to incur a tranche of term loan b debt in the future through its incremental credit facility , and modified certain of the restrictive covenants on miscellaneous investments and incurrence of miscellaneous liens . finally , the fifth amendment provided increased flexibility to the company in terms of our financial covenants . on december 15 , 2014 , we entered into a sixth amendment to our amended and restated credit agreement . pursuant to the sixth amendment , we incurred $ 235.0 million of additional term loans . a portion of the additional term loan advance was used to prepay our outstanding revolving loans , and a portion of the additional term loan advance was held as cash on our consolidated balance sheet . the sixth amendment also specifically permitted the acquisition of crc . in connection with the acquisition of crc , the sixth amendment ( i ) imposed a temporary reserve on our revolving credit facility in the amount of $ 110.0 million in order to preserve such reserved amounts for later borrowings to partially fund the consideration for the acquisition of crc ( subject to limited conditionality provisions ) ( the reserve is no longer in effect due to the acquisition of crc ) , ( ii ) permitted the incurrence of an additional incremental term loan facility under the amended and restated credit agreement partially to fund the consideration for the acquisition of crc ( subject to limited conditionality provisions ) and ( iii ) permitted our issuance of additional senior unsecured indebtedness or senior unsecured bridge indebtedness partially to fund the consideration for the acquisition of crc . the sixth amendment also permits us , subject to certain consents , to add one or more foreign borrowers and or request revolving loans and letters of credit in foreign currencies . on february 6 , 2015 , we entered into the seventh amendment to our amended and restated credit agreement . the seventh amendment added citibank , n.a . as an l/c issuer under the amended and restated credit agreement in order to permit the rollover of crc 's existing letters of credit into the amended and restated credit agreement and increased both the company 's letter of credit sublimit and swing line sublimit to $ 20.0 million . on february 11 , 2015 , we entered into the first incremental amendment to our amended and restated credit agreement . the first incremental amendment activated a new $ 500.0 million incremental existing tlb facility that was added to the amended and restated senior secured credit facility , subject to limited conditionality provisions . borrowings under the existing tlb facility were used to fund a portion of the purchase price for our acquisition of crc . on april 22 , 2015 , we entered into an eighth amendment to our amended and restated credit agreement . the eighth amendment changed the definition of change of control in part to remove a provision whose purpose was , when calculating whether a majority of incumbent directors have approved new directors , that any incumbent director that became a director as a result of a threatened or actual proxy contest was not counted in such calculation . 53 on january 25 , 2016 , we entered into the ninth amendment to the amended and restated senior credit facility . the ninth amendment modifies certain definitions and provides increased flexibility to us in terms of our financial covenants . our baskets for permitted investments were also increased to provide increased flexibility for us to invest in non-wholly owned subsidiaries , joint ventures and foreign subsidiaries . we may now invest in non-wholly owned subsidiaries and joint ventures up to 10.0 % of our and our subsidiaries ' total assets in any consecutive four fiscal quarter period , and up to 12.5 % of our and our subsidiaries ' total assets during the term of the amended and restated credit agreement . we may also invest in foreign subsidiaries that are not loan parties up to 10 % of our and our subsidiaries ' total assets in any consecutive four fiscal quarter period , and up to 15 % of our and our subsidiaries ' total assets during the term of the amended and restated credit agreement . the foregoing permitted investments are subject to an aggregate cap of 25 % of our and our subsidiaries ' total assets in any fiscal year . on february 16 , 2016 , we entered into the second incremental facility amendment to our amended and restated credit agreement . the second incremental amendment activated a new $ 955.0 million incremental term loan b facility and added $ 135.0 million to the term loan a facility to our amended and restated senior secured credit facility , subject to limited conditionality provisions . borrowings under the new tlb facility were used to fund a portion of the purchase price for
| debt extinguishment costs . debt extinguishment costs for the year ended december 31 , 2015 represent $ 7.5 million of cash charges and $ 3.3 million of non-cash charges recorded in connection with the repayment of $ 97.5 million of 12.875 % senior notes . transaction-related expenses . transaction-related expenses were $ 36.6 million for the year ended december 31 , 2015 compared to $ 13.7 million for the year ended december 31 , 2014. transaction-related expenses represent costs incurred in the respective periods , primarily related to the 2014 and 2015 acquisitions , as summarized below ( in thousands ) : replace_table_token_5_th provision for income taxes . for the year ended december 31 , 2015 , the provision for income taxes was $ 53.4 million , reflecting an effective tax rate of 32.4 % , compared to $ 42.9 million , reflecting an effective tax rate of 34.0 % , for 2014. the decrease in the tax rate for the year ended december 31 , 2015 was primarily attributable to a full year of results for partnerships in care in 2015 , compared to six months in 2014 , partnerships in care is located in a lower taxing jurisdiction and for which earnings are permanently reinvested . 50 year ended december 31 , 2014 compared to the year ended december 31 , 2013 revenue before provision for doubtful accounts . revenue before provision for doubtful accounts increased $ 295.7 million , or 40.2 % , to $ 1.0 billion for the year ended december 31 , 2014 from $ 735.1 million for the year ended december 31 , 2013. the increase related primarily to revenue generated during the year ended december 31 , 2014 from the facilities acquired in our 2013 and 2014 acquisitions , particularly the acquisition of partnerships in care . same-facility revenue before provision for doubtful accounts increased by $ 79.1 million , or 10.8 % , for the year ended december 31 , 2014 compared to the year ended december 31 , 2013 , resulting from same-facility growth in patient days of 10.3 % and same-facility revenue per day of 0.6 % .
| 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 extinguishment costs . debt extinguishment costs for the year ended december 31 , 2015 represent $ 7.5 million of cash charges and $ 3.3 million of non-cash charges recorded in connection with the repayment of $ 97.5 million of 12.875 % senior notes . transaction-related expenses . transaction-related expenses were $ 36.6 million for the year ended december 31 , 2015 compared to $ 13.7 million for the year ended december 31 , 2014. transaction-related expenses represent costs incurred in the respective periods , primarily related to the 2014 and 2015 acquisitions , as summarized below ( in thousands ) : replace_table_token_5_th provision for income taxes . for the year ended december 31 , 2015 , the provision for income taxes was $ 53.4 million , reflecting an effective tax rate of 32.4 % , compared to $ 42.9 million , reflecting an effective tax rate of 34.0 % , for 2014. the decrease in the tax rate for the year ended december 31 , 2015 was primarily attributable to a full year of results for partnerships in care in 2015 , compared to six months in 2014 , partnerships in care is located in a lower taxing jurisdiction and for which earnings are permanently reinvested . 50 year ended december 31 , 2014 compared to the year ended december 31 , 2013 revenue before provision for doubtful accounts . revenue before provision for doubtful accounts increased $ 295.7 million , or 40.2 % , to $ 1.0 billion for the year ended december 31 , 2014 from $ 735.1 million for the year ended december 31 , 2013. the increase related primarily to revenue generated during the year ended december 31 , 2014 from the facilities acquired in our 2013 and 2014 acquisitions , particularly the acquisition of partnerships in care . same-facility revenue before provision for doubtful accounts increased by $ 79.1 million , or 10.8 % , for the year ended december 31 , 2014 compared to the year ended december 31 , 2013 , resulting from same-facility growth in patient days of 10.3 % and same-facility revenue per day of 0.6 % .
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Suspicious Activity Report : information privacy or other negative impact ; the impact of laws and regulations relating to privacy and security of patient health information and standards for electronic transactions ; the impact of a change in the mix of our earnings , and changes in tax rates and laws generally ; failure to maintain effective internal control over financial reporting ; the impact of fluctuations in our operating results , quarter to quarter earnings and other factors on the price of our securities ; the impact of the trend for insurance companies and managed care organizations to enter into sole source contracts on our ability to obtain patients ; 46 the impact of fluctuations in foreign exchange rates ; and those risks and uncertainties described from time to time in our filings with the securities and exchange commission . given these risks and uncertainties , you are cautioned not to place undue reliance on such forward-looking statements . these risks and uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements . these forward-looking statements are made only as of the date of this annual report on form 10-k. we do not undertake and specifically decline any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments . overview our business strategy is to acquire and develop behavioral healthcare facilities and improve our operating results within our facilities and our other behavioral healthcare operations . we strive to improve the operating results of our facilities by providing high-quality services , expanding referral networks and marketing initiatives while meeting the increased demand for behavioral healthcare services through expansion of our current locations as well as developing new services within existing locations . at december 31 , 2015 , we operated 258 behavioral healthcare facilities with over 9,900 beds in 39 states , the united kingdom and puerto rico . during the year ended december 31 , 2015 , we acquired 176 facilities and added approximately 670 new beds , including 460 to existing facilities and 210 in two de novo facilities . for the year ending december 31 , 2016 , we expect to add approximately 800 total beds exclusive of acquisitions . we are the leading publicly traded pure-play provider of behavioral healthcare services , with operations in the united states and the united kingdom . management believes that the company 's recent acquisitions position the company as a leading platform in a highly fragmented industry under the direction of an experienced management team that has significant industry expertise . management expects to take advantage of several strategies that are more accessible as a result of our increased size and geographic scale , including continuing a national marketing strategy to attract new patients and referral sources , increasing our volume of out-of-state referrals , providing a broader range of services to new and existing patients and clients and selectively pursuing opportunities to expand our facility and bed count . acquisitions on february 16 , 2016 , we completed the acquisition of priory for a total purchase price of approximately $ 2.2 billion , including total cash consideration of approximately $ 1.9 billion and 4,033,561 shares our common stock . priory is the leading independent provider of behavioral healthcare services in the united kingdom . at december 31 , 2015 , priory operated 327 facilities with approximately 7,100 beds . on december 1 , 2015 , we completed the acquisition of certain facilities from mmo , including two acute inpatient behavioral health facilities with a total of 80 beds located in jennings and covington , louisiana , for cash consideration of approximately $ 20.2 million . on november 1 , 2015 , we completed the acquisitions of ( i ) discovery house for cash consideration of approximately $ 118.5 million , ( ii ) duffy 's for cash consideration of approximately $ 29.6 million and ( iii ) cleveland house for approximately $ 10.3 million . discovery house operates 19 comprehensive treatment centers located in four states . duffy 's is a substance abuse facility with 61 beds located in calistoga , california . cleveland house is an inpatient psychiatric facility with 32 beds located in england . on october 1 , 2015 , we completed the acquisition of meadow view , an inpatient psychiatric facility with 28 beds located in england , for cash consideration of approximately $ 6.8 million . on september 1 , 2015 , we completed the acquisitions of ( i ) three facilities from danshell for approximately $ 59.8 million , ( ii ) two facilities from h & scp for approximately $ 26.2 million and ( iii ) manor hall for approximately $ 14.0 million . the inpatient psychiatric facilities acquired from danshell have an aggregate of 73 beds and are located in england . the inpatient psychiatric facilities acquired from h & scp have an aggregate of 50 beds and are located in england . manor hall has 26 beds and is located in england . on august 31 , 2015 , we completed the acquisition of a controlling interest in southcoast , an inpatient psychiatric facility located in fairhaven , massachusetts . we own 75 % of the equity interests in the facility . on july 1 , 2015 , we completed the acquisition of the assets of belmont , an inpatient psychiatric facility with 147 beds located in philadelphia , pennsylvania for cash consideration of approximately $ 38.2 million which consists of $ 35.0 million base purchase price and an estimated working capital settlement of $ 3.2 million . 47 on july 1 , 2015 , we completed the acquisition of the manor clinic , a substance abuse facility with 15 beds located in england , for cash consideration of approximately $ 5.9 million . story_separator_special_tag on february 13 , 2014 , we entered into the fourth amendment to the amended and restated credit agreement , to increase the size of the amended and restated senior credit facility and extend the maturity date thereof , which resulted in the company having a revolving line of credit of up to $ 300.0 million and term loans of $ 300.0 million . the fourth amendment also reduced the interest rates applicable to the amended and restated senior credit facility and provided increased flexibility to the company in terms of the financial and other restrictive covenants . the fourth amendment also provides for a $ 150.0 million incremental credit facility , with the potential for unlimited additional incremental amounts , provided the company meets certain financial ratios , in each case subject to customary conditions precedent to borrowing . on june 16 , 2014 , we entered into the fifth amendment to the amended and restated senior credit facility . the fifth amendment specifically permitted the acquisition of partnerships in care , gave us the ability to incur a tranche of term loan b debt in the future through its incremental credit facility , and modified certain of the restrictive covenants on miscellaneous investments and incurrence of miscellaneous liens . finally , the fifth amendment provided increased flexibility to the company in terms of our financial covenants . on december 15 , 2014 , we entered into a sixth amendment to our amended and restated credit agreement . pursuant to the sixth amendment , we incurred $ 235.0 million of additional term loans . a portion of the additional term loan advance was used to prepay our outstanding revolving loans , and a portion of the additional term loan advance was held as cash on our consolidated balance sheet . the sixth amendment also specifically permitted the acquisition of crc . in connection with the acquisition of crc , the sixth amendment ( i ) imposed a temporary reserve on our revolving credit facility in the amount of $ 110.0 million in order to preserve such reserved amounts for later borrowings to partially fund the consideration for the acquisition of crc ( subject to limited conditionality provisions ) ( the reserve is no longer in effect due to the acquisition of crc ) , ( ii ) permitted the incurrence of an additional incremental term loan facility under the amended and restated credit agreement partially to fund the consideration for the acquisition of crc ( subject to limited conditionality provisions ) and ( iii ) permitted our issuance of additional senior unsecured indebtedness or senior unsecured bridge indebtedness partially to fund the consideration for the acquisition of crc . the sixth amendment also permits us , subject to certain consents , to add one or more foreign borrowers and or request revolving loans and letters of credit in foreign currencies . on february 6 , 2015 , we entered into the seventh amendment to our amended and restated credit agreement . the seventh amendment added citibank , n.a . as an l/c issuer under the amended and restated credit agreement in order to permit the rollover of crc 's existing letters of credit into the amended and restated credit agreement and increased both the company 's letter of credit sublimit and swing line sublimit to $ 20.0 million . on february 11 , 2015 , we entered into the first incremental amendment to our amended and restated credit agreement . the first incremental amendment activated a new $ 500.0 million incremental existing tlb facility that was added to the amended and restated senior secured credit facility , subject to limited conditionality provisions . borrowings under the existing tlb facility were used to fund a portion of the purchase price for our acquisition of crc . on april 22 , 2015 , we entered into an eighth amendment to our amended and restated credit agreement . the eighth amendment changed the definition of change of control in part to remove a provision whose purpose was , when calculating whether a majority of incumbent directors have approved new directors , that any incumbent director that became a director as a result of a threatened or actual proxy contest was not counted in such calculation . 53 on january 25 , 2016 , we entered into the ninth amendment to the amended and restated senior credit facility . the ninth amendment modifies certain definitions and provides increased flexibility to us in terms of our financial covenants . our baskets for permitted investments were also increased to provide increased flexibility for us to invest in non-wholly owned subsidiaries , joint ventures and foreign subsidiaries . we may now invest in non-wholly owned subsidiaries and joint ventures up to 10.0 % of our and our subsidiaries ' total assets in any consecutive four fiscal quarter period , and up to 12.5 % of our and our subsidiaries ' total assets during the term of the amended and restated credit agreement . we may also invest in foreign subsidiaries that are not loan parties up to 10 % of our and our subsidiaries ' total assets in any consecutive four fiscal quarter period , and up to 15 % of our and our subsidiaries ' total assets during the term of the amended and restated credit agreement . the foregoing permitted investments are subject to an aggregate cap of 25 % of our and our subsidiaries ' total assets in any fiscal year . on february 16 , 2016 , we entered into the second incremental facility amendment to our amended and restated credit agreement . the second incremental amendment activated a new $ 955.0 million incremental term loan b facility and added $ 135.0 million to the term loan a facility to our amended and restated senior secured credit facility , subject to limited conditionality provisions . borrowings under the new tlb facility were used to fund a portion of the purchase price for
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2,666 | however , we believe the economic uncertainty in europe will continue to affect how we and our competitors are pricing in end markets . in the americas , we experienced pricing pressures in our diy channel while in our wholesale channel we were able to increase pricing for certain products in the second half of the year . we review our business and operating structure on a regular basis and implement restructuring initiatives as needed . the emea 2013 restructuring actions that commenced in 2013 are substantially complete . in 2014 we initiated and completed additional restructuring activities in the americas , asia-pacific and corporate to reduce costs through reductions-in-force and these activities are concluded . we also began various restructuring initiatives in emea in the fourth quarter of 2014 in response to the current market conditions and to better align our internal cost base with the external market environment . please see note 4 of the notes to consolidated financial statements for a more detailed explanation of our restructuring activities . in addition to the restructuring initiatives , we implemented a transformation program in emea in the fourth quarter of 2013. the emea transformation program is designed to realign our european operating strategy from being country specific to pan european focused . under this initiative , we have begun to ( 1 ) develop better sales capabilities through improved product management and enhanced product cross-selling efforts , ( 2 ) drive more efficient sourcing and logistics , and ( 3 ) enhance our focus on emerging market opportunities . we are in the process of aligning our legal and tax structure in accordance with our business structure and to take advantage of favorable tax rates where possible . we expect this project to be ongoing through 2018. we incurred non-recurring deployment costs of approximately $ 7.5 million and $ 1.2 million in 2014 and 2013 , respectively . these non-recurring costs consist primarily of external consulting and it related costs and are exclusive of restructuring expense . we anticipate total non-recurring external deployment costs of $ 5.5 million in 2015 for the emea program . total annual gross savings of approximately $ 5.0 million were achieved in 2014 , approximately $ 11.3 million is expected in 2015 , and forecasted annual savings of $ 19.7 million are anticipated by 2018 . 26 acquisitions and disposals on december 1 , 2014 , we completed the acquisition of aerco international , inc. ( `` aerco `` ) , in a share purchase transaction . the aggregate purchase price was approximately $ 272.2 million and was financed from a borrowing under the company 's credit agreement . the purchase price includes an estimated working capital adjustment of $ 7.7 million and is subject to a final post-closing working capital adjustment . aerco is a leading provider of commercial high-efficiency boilers , water heaters and heating solutions in north america . aerco is based in blauvelt , new york and its products are distributed for commercial and municipal use primarily in north america . aerco strengthens our strategic vision to expand into heat source products and strengthens our solutions and system offerings . aerco 's annual revenues for 2014 were approximately $ 100 million , of which $ 5.3 million was included in our 2014 consolidated financial statements . please see note 5 of the notes to consolidated financial statements for additional information regarding operating results of aerco . on august 1 , 2013 , the company completed the sale of all of the outstanding shares of an indirectly wholly-owned subsidiary , austroflex , receiving net cash proceeds of $ 7.9 million . we chose to divest austroflex because it did not meet performance expectations . the loss after tax on disposal of the business was approximately $ 2.2 million . further , during the year ended december 31 , 2011 , the company wrote down austroflex 's long-lived assets by $ 14.8 million . austroflex 's results of operations were presented as discontinued operations for 2013 and 2012. please see note 3 of the notes to consolidated financial statements for additional information regarding operating results of austroflex . on december 21 , 2012 , we disposed of the outstanding shares of flomatic corporation ( flomatic ) , to a third party in an all cash transaction . flomatic was acquired as part of the danfoss socla s.a.s . ( socla ) acquisition in april 2011. flomatic specializes in manufacturing various valves for the well water industry , a product line not core to our business . the operating results of flomatic were classified in discontinued operations and a net loss on disposal of approximately $ 3.8 million was charged to discontinued operations in 2012. on january 31 , 2012 , we completed the acquisition of tekmar control systems ( tekmar ) , a designer and manufacturer of control systems used in heating , ventilation , and air conditioning applications , in a share purchase transaction . the initial purchase price paid was approximately $ 17.8 million and a contingent liability of $ 5.1 million was recognized as the estimate of the acquisition date fair value of the earn-out . the contingent liability was increased by $ 0.5 million and $ 1.0 million during 2014 and 2013 , respectively , based on performance metrics achieved or expected to be achieved . a portion of the contingent consideration was paid out during 2014 and 2013 , in the amount of $ 2.2 million and $ 1.2 million , respectively , and the remaining 2015 payment is estimated to be $ 2.5 million . story_separator_special_tag the goodwill impairment was based on historical results being below our expectations and a reduction in the expected future cash flows to be generated by brae . see note 2 of notes to consolidated financial statements in this annual report on form 10-k , for additional information regarding these impairments . operating income . operating income by geographic segment for 2013 and 2012 was as follows : replace_table_token_18_th the change in operating income was attributable to the following : replace_table_token_19_th the decrease in consolidated organic operating income was due primarily to an increase in sg & a expenses , as previously discussed . acquired operating income relates to the tekmar acquisition . the increase in restructuring , impairment charges and other from 2013 to 2012 is primarily driven by the emea restructuring programs , as previously discussed . the net increase in operating income from foreign exchange was primarily due to the appreciation of the euro against the u.s. dollar . we can not predict whether the euro will appreciate or depreciate against the u.s. dollar in future periods or whether future foreign exchange rate fluctuations will have a positive or negative impact on our operating income . 34 as of january 1 , 2014 , we began allocating certain expenses to our three operating segments that had previously been recorded as corporate expenses . these expenses primarily include stock compensation , legal expenses and audit expenses that are directly attributable to and benefit the three operating segments . the 2013 and 2012 results have been retrospectively revised for comparative purposes . interest expense . interest expense decreased $ 3.1 million , or 12.6 % , in 2013 compared to 2012 , primarily due to the retirement in mid-may 2013 of $ 75 million in unsecured senior notes and to a lower balance outstanding on our stand-by letters of credit . see note 10 of notes to consolidated financial statements in this annual report on form 10-k , for additional information regarding financing arrangements . other expense ( income ) , net . other expense ( income ) , net increased $ 3.6 million in 2013 compared to 2012 , primarily due to foreign currency transaction losses in the americas , emea and asia-pacific as a result of the appreciation of the chinese yuan and the euro against the u.s. dollar and appreciation of the u.s. dollar against the canadian dollar in 2013. in addition , a favorable customs settlement recorded in 2012 did not repeat in 2013. income taxes . our effective tax rate for continuing operations increased to 30.6 % in 2013 from 29.7 % in 2012. the 2013 rate is up slightly due to a change in tax laws in france that limited intercompany interest deductions . in 2012 , the rate was favorably impacted by the release of a tax reserve following the completion of a european tax audit . net income from continuing operations . net income from continuing operations for 2013 was $ 60.9 million , or $ 1.71 per common share , compared to $ 70.4 million , or $ 1.95 per common share , for 2012. results for 2013 include net after-tax charges of $ 18.3 million , or $ 0.51 per common share , including legal settlement charges of $ 0.26 , restructuring and other net charges of $ 0.17 , goodwill and other long-lived asset impairments of $ 0.04 , earnout adjustments of $ 0.02 and emea transformation deployment costs of $ 0.02. results for 2012 include net after-tax charges of $ 8.1 million , or $ 0.22 per common share , including restructuring and other net charges of $ 0.07 , goodwill and other long-lived asset impairments of $ 0.07 , a charge to adjust the twvc gain of $ 0.04 , retention costs for our former chief financial officer of $ 0.03 , net legal/customs settlement charges of $ 0.02 , and other net credits of $ 0.01 , primarily related to a favorable tax adjustment due to a change in 2012 in italian tax rules . the appreciation primarily of the euro against the u.s. dollar in 2013 resulted in a positive impact on our operations of $ 0.03 per common share compared to 2012. we can not predict whether the euro , canadian dollar or chinese yuan will appreciate or depreciate against the u.s. dollar in future periods or whether future foreign exchange rate fluctuations will have a positive or negative impact on our net income . loss from discontinued operations . loss from discontinued operations in 2013 of $ 2.3 million , or ( $ 0.07 ) per common share , was related to the operations and loss on disposal of austroflex . see note 3 of notes to consolidated financial statements . story_separator_special_tag style= `` font-family : times ; `` > as of december 31 , 2014 , our actual financial ratios calculated in accordance with our credit agreement compared to the required levels under the credit agreement were as follows : actual ratio required level minimum level interest charge coverage ratio 9.00 to 1.00 3.50 to 1.00 maximum level leverage ratio 1.49 to 1.00 3.25 to 1.00 as of december 31 , 2014 , we were in compliance with all covenants related to the credit agreement and had $ 201.4 million of unused and available credit under the credit agreement and $ 23.6 million of stand-by letters of credit outstanding on the credit agreement . the company had $ 275.0 million of borrowings outstanding under the credit agreement at december 31 , 2014. we have several senior note agreements as further detailed in note 10 of notes to consolidated financial statements . these senior note agreements require us to maintain a fixed charge coverage ratio of consolidated ebitda plus consolidated rent expense during the period to consolidated fixed charges . consolidated fixed charges are the sum of consolidated interest expense for the period
| liquidity and capital resources 2014 cash flows in 2014 , we generated $ 135.2 million of cash from operating activities as compared to $ 118.3 million in 2013. the increase was primarily due to inventory reduction efforts mostly in the americas and strong accounts receivable collections , offset by reductions in accounts payable in the current year related to the prior year build-up of lead free inventory late in 2013. we generated approximately $ 111.9 million of free cash flow ( a non-gaap financial measure , which we reconcile below , defined as net cash provided by continuing operating activities minus capital expenditures plus 35 proceeds from sale of assets ) , compared to free cash flow of $ 92.1 million in 2013. free cash flow as a percentage of net income from continuing operations was 222.5 % in 2014 as compared to 151.2 % in 2013. in 2014 , we used $ 295.5 million of net cash for investing activities , including $ 272.2 million for the purchase of aerco and $ 23.7 million of cash for capital equipment . we anticipate investing approximately $ 30 million to $ 35 million in capital equipment in 2015 to improve our manufacturing capabilities . in 2014 , we generated $ 220.8 million of net cash from financing activities . cash provided by financing activities was primarily due to the $ 275.0 million borrowings under our credit agreement to fund the aerco acquisition and by proceeds of $ 11.8 million from option exercises under the employee stock plans , offset by payments to repurchase approximately 670,000 shares of class a common stock at a cost of $ 39.6 million and payment of dividends of $ 20.5 million . on february 18 , 2014 , we terminated a prior credit agreement and entered into a new credit agreement ( the credit agreement ) among the company , certain subsidiaries of the company who become borrowers under the credit agreement , jpmorgan chase bank , n.a. , as administrative agent , swing line lender and letter of credit issuer , and the other lenders referred to therein .
| 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 2014 cash flows in 2014 , we generated $ 135.2 million of cash from operating activities as compared to $ 118.3 million in 2013. the increase was primarily due to inventory reduction efforts mostly in the americas and strong accounts receivable collections , offset by reductions in accounts payable in the current year related to the prior year build-up of lead free inventory late in 2013. we generated approximately $ 111.9 million of free cash flow ( a non-gaap financial measure , which we reconcile below , defined as net cash provided by continuing operating activities minus capital expenditures plus 35 proceeds from sale of assets ) , compared to free cash flow of $ 92.1 million in 2013. free cash flow as a percentage of net income from continuing operations was 222.5 % in 2014 as compared to 151.2 % in 2013. in 2014 , we used $ 295.5 million of net cash for investing activities , including $ 272.2 million for the purchase of aerco and $ 23.7 million of cash for capital equipment . we anticipate investing approximately $ 30 million to $ 35 million in capital equipment in 2015 to improve our manufacturing capabilities . in 2014 , we generated $ 220.8 million of net cash from financing activities . cash provided by financing activities was primarily due to the $ 275.0 million borrowings under our credit agreement to fund the aerco acquisition and by proceeds of $ 11.8 million from option exercises under the employee stock plans , offset by payments to repurchase approximately 670,000 shares of class a common stock at a cost of $ 39.6 million and payment of dividends of $ 20.5 million . on february 18 , 2014 , we terminated a prior credit agreement and entered into a new credit agreement ( the credit agreement ) among the company , certain subsidiaries of the company who become borrowers under the credit agreement , jpmorgan chase bank , n.a. , as administrative agent , swing line lender and letter of credit issuer , and the other lenders referred to therein .
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Suspicious Activity Report : however , we believe the economic uncertainty in europe will continue to affect how we and our competitors are pricing in end markets . in the americas , we experienced pricing pressures in our diy channel while in our wholesale channel we were able to increase pricing for certain products in the second half of the year . we review our business and operating structure on a regular basis and implement restructuring initiatives as needed . the emea 2013 restructuring actions that commenced in 2013 are substantially complete . in 2014 we initiated and completed additional restructuring activities in the americas , asia-pacific and corporate to reduce costs through reductions-in-force and these activities are concluded . we also began various restructuring initiatives in emea in the fourth quarter of 2014 in response to the current market conditions and to better align our internal cost base with the external market environment . please see note 4 of the notes to consolidated financial statements for a more detailed explanation of our restructuring activities . in addition to the restructuring initiatives , we implemented a transformation program in emea in the fourth quarter of 2013. the emea transformation program is designed to realign our european operating strategy from being country specific to pan european focused . under this initiative , we have begun to ( 1 ) develop better sales capabilities through improved product management and enhanced product cross-selling efforts , ( 2 ) drive more efficient sourcing and logistics , and ( 3 ) enhance our focus on emerging market opportunities . we are in the process of aligning our legal and tax structure in accordance with our business structure and to take advantage of favorable tax rates where possible . we expect this project to be ongoing through 2018. we incurred non-recurring deployment costs of approximately $ 7.5 million and $ 1.2 million in 2014 and 2013 , respectively . these non-recurring costs consist primarily of external consulting and it related costs and are exclusive of restructuring expense . we anticipate total non-recurring external deployment costs of $ 5.5 million in 2015 for the emea program . total annual gross savings of approximately $ 5.0 million were achieved in 2014 , approximately $ 11.3 million is expected in 2015 , and forecasted annual savings of $ 19.7 million are anticipated by 2018 . 26 acquisitions and disposals on december 1 , 2014 , we completed the acquisition of aerco international , inc. ( `` aerco `` ) , in a share purchase transaction . the aggregate purchase price was approximately $ 272.2 million and was financed from a borrowing under the company 's credit agreement . the purchase price includes an estimated working capital adjustment of $ 7.7 million and is subject to a final post-closing working capital adjustment . aerco is a leading provider of commercial high-efficiency boilers , water heaters and heating solutions in north america . aerco is based in blauvelt , new york and its products are distributed for commercial and municipal use primarily in north america . aerco strengthens our strategic vision to expand into heat source products and strengthens our solutions and system offerings . aerco 's annual revenues for 2014 were approximately $ 100 million , of which $ 5.3 million was included in our 2014 consolidated financial statements . please see note 5 of the notes to consolidated financial statements for additional information regarding operating results of aerco . on august 1 , 2013 , the company completed the sale of all of the outstanding shares of an indirectly wholly-owned subsidiary , austroflex , receiving net cash proceeds of $ 7.9 million . we chose to divest austroflex because it did not meet performance expectations . the loss after tax on disposal of the business was approximately $ 2.2 million . further , during the year ended december 31 , 2011 , the company wrote down austroflex 's long-lived assets by $ 14.8 million . austroflex 's results of operations were presented as discontinued operations for 2013 and 2012. please see note 3 of the notes to consolidated financial statements for additional information regarding operating results of austroflex . on december 21 , 2012 , we disposed of the outstanding shares of flomatic corporation ( flomatic ) , to a third party in an all cash transaction . flomatic was acquired as part of the danfoss socla s.a.s . ( socla ) acquisition in april 2011. flomatic specializes in manufacturing various valves for the well water industry , a product line not core to our business . the operating results of flomatic were classified in discontinued operations and a net loss on disposal of approximately $ 3.8 million was charged to discontinued operations in 2012. on january 31 , 2012 , we completed the acquisition of tekmar control systems ( tekmar ) , a designer and manufacturer of control systems used in heating , ventilation , and air conditioning applications , in a share purchase transaction . the initial purchase price paid was approximately $ 17.8 million and a contingent liability of $ 5.1 million was recognized as the estimate of the acquisition date fair value of the earn-out . the contingent liability was increased by $ 0.5 million and $ 1.0 million during 2014 and 2013 , respectively , based on performance metrics achieved or expected to be achieved . a portion of the contingent consideration was paid out during 2014 and 2013 , in the amount of $ 2.2 million and $ 1.2 million , respectively , and the remaining 2015 payment is estimated to be $ 2.5 million . story_separator_special_tag the goodwill impairment was based on historical results being below our expectations and a reduction in the expected future cash flows to be generated by brae . see note 2 of notes to consolidated financial statements in this annual report on form 10-k , for additional information regarding these impairments . operating income . operating income by geographic segment for 2013 and 2012 was as follows : replace_table_token_18_th the change in operating income was attributable to the following : replace_table_token_19_th the decrease in consolidated organic operating income was due primarily to an increase in sg & a expenses , as previously discussed . acquired operating income relates to the tekmar acquisition . the increase in restructuring , impairment charges and other from 2013 to 2012 is primarily driven by the emea restructuring programs , as previously discussed . the net increase in operating income from foreign exchange was primarily due to the appreciation of the euro against the u.s. dollar . we can not predict whether the euro will appreciate or depreciate against the u.s. dollar in future periods or whether future foreign exchange rate fluctuations will have a positive or negative impact on our operating income . 34 as of january 1 , 2014 , we began allocating certain expenses to our three operating segments that had previously been recorded as corporate expenses . these expenses primarily include stock compensation , legal expenses and audit expenses that are directly attributable to and benefit the three operating segments . the 2013 and 2012 results have been retrospectively revised for comparative purposes . interest expense . interest expense decreased $ 3.1 million , or 12.6 % , in 2013 compared to 2012 , primarily due to the retirement in mid-may 2013 of $ 75 million in unsecured senior notes and to a lower balance outstanding on our stand-by letters of credit . see note 10 of notes to consolidated financial statements in this annual report on form 10-k , for additional information regarding financing arrangements . other expense ( income ) , net . other expense ( income ) , net increased $ 3.6 million in 2013 compared to 2012 , primarily due to foreign currency transaction losses in the americas , emea and asia-pacific as a result of the appreciation of the chinese yuan and the euro against the u.s. dollar and appreciation of the u.s. dollar against the canadian dollar in 2013. in addition , a favorable customs settlement recorded in 2012 did not repeat in 2013. income taxes . our effective tax rate for continuing operations increased to 30.6 % in 2013 from 29.7 % in 2012. the 2013 rate is up slightly due to a change in tax laws in france that limited intercompany interest deductions . in 2012 , the rate was favorably impacted by the release of a tax reserve following the completion of a european tax audit . net income from continuing operations . net income from continuing operations for 2013 was $ 60.9 million , or $ 1.71 per common share , compared to $ 70.4 million , or $ 1.95 per common share , for 2012. results for 2013 include net after-tax charges of $ 18.3 million , or $ 0.51 per common share , including legal settlement charges of $ 0.26 , restructuring and other net charges of $ 0.17 , goodwill and other long-lived asset impairments of $ 0.04 , earnout adjustments of $ 0.02 and emea transformation deployment costs of $ 0.02. results for 2012 include net after-tax charges of $ 8.1 million , or $ 0.22 per common share , including restructuring and other net charges of $ 0.07 , goodwill and other long-lived asset impairments of $ 0.07 , a charge to adjust the twvc gain of $ 0.04 , retention costs for our former chief financial officer of $ 0.03 , net legal/customs settlement charges of $ 0.02 , and other net credits of $ 0.01 , primarily related to a favorable tax adjustment due to a change in 2012 in italian tax rules . the appreciation primarily of the euro against the u.s. dollar in 2013 resulted in a positive impact on our operations of $ 0.03 per common share compared to 2012. we can not predict whether the euro , canadian dollar or chinese yuan will appreciate or depreciate against the u.s. dollar in future periods or whether future foreign exchange rate fluctuations will have a positive or negative impact on our net income . loss from discontinued operations . loss from discontinued operations in 2013 of $ 2.3 million , or ( $ 0.07 ) per common share , was related to the operations and loss on disposal of austroflex . see note 3 of notes to consolidated financial statements . story_separator_special_tag style= `` font-family : times ; `` > as of december 31 , 2014 , our actual financial ratios calculated in accordance with our credit agreement compared to the required levels under the credit agreement were as follows : actual ratio required level minimum level interest charge coverage ratio 9.00 to 1.00 3.50 to 1.00 maximum level leverage ratio 1.49 to 1.00 3.25 to 1.00 as of december 31 , 2014 , we were in compliance with all covenants related to the credit agreement and had $ 201.4 million of unused and available credit under the credit agreement and $ 23.6 million of stand-by letters of credit outstanding on the credit agreement . the company had $ 275.0 million of borrowings outstanding under the credit agreement at december 31 , 2014. we have several senior note agreements as further detailed in note 10 of notes to consolidated financial statements . these senior note agreements require us to maintain a fixed charge coverage ratio of consolidated ebitda plus consolidated rent expense during the period to consolidated fixed charges . consolidated fixed charges are the sum of consolidated interest expense for the period
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2,667 | management is in the process of finalizing the impact of the adoption of this guidance on united 's financial condition , results of operations , liquidity , and regulatory capital ratios . based on current economic conditions , management expects the allowance for credit losses to increase by 20 % to 30 % . for additional discussion of accounting pronouncements pending adoption , see note a of the notes to the condensed consolidated financial statements in part ii , item 8 of this form 10-k. 31 transition from the london interbank offerered rate ( libor ) in 2017 , the united kingdom 's financial conduct authority , which regulates libor , publicly announced that it intends to stop persuading or compelling banks to submit the rates used to calculate libor after 2021. currently , it is unclear whether these banks , as a group or individually , will continue to submit the rates used to calculate libor after 2021. it is also unclear whether libor will continue to be viewed as an acceptable market benchmark , what rate or rates may become accepted alternatives to libor , or what the effect of any such changes may be on the markets for libor-indexed financial instruments . working groups comprised of various regulators and other industry groups have been formed in the united states and other countries in order to provide guidance on this topic . in particular , the alternative reference rates committee ( arrc ) has been formed in the united states by the federal reserve board and the federal reserve bank of new york . the arrc has identified the secured overnight financing rate ( sofr ) as its preferred alternative reference rate for u.s. dollar libor . the arrc has also published recommended fall-back language for libor-linked financial instruments , among numerous other areas of guidance . at this time , however , it is unclear whether these recommendations will be broadly accepted by industry participants , whether they will continue to evolve , and what impact they will ultimately have on the broader markets that utilize libor as a reference rate . united has loans , derivative contracts , borrowings , and other financial instruments that are directly or indirectly dependent on libor . the transition from libor will cause changes to payment calculations for existing contracts that use libor as the reference rate . these changes will create various risks surrounding the financial , operational , compliance and legal aspects associated with changing certain elements of existing contracts . united will also be subject to risks surrounding changes to models and systems that currently use libor reference rates , as well as market and strategic risks that could arise from the use of alternative reference rates . additionally , united could face reputational risks if this transition is not managed appropriately with its customers . while the full impact of the transition is not yet known , failure to adequately manage the transition could have a material adverse effect on our business , financial condition and results of operations . introduction the following discussion and analysis presents the more significant changes in financial condition as of december 31 , 2019 and 2018 and the results of operations of united and its subsidiaries for each of the years then ended . this discussion and the consolidated financial statements and the notes to consolidated financial statements include the accounts of united bankshares , inc. and its wholly-owned subsidiaries , unless otherwise indicated . management has evaluated all significant events and transactions that occurred after december 31 , 2019 , but prior to the date these financial statements were issued , for potential recognition or disclosure required in these financial statements . refer to management 's discussion and analysis of financial condition and results of operations included in our annual report on form 10-k filed with the sec on march 1 , 2019 ( the 2018 form 10-k ) for a discussion and analysis of the more significant factors that affected periods prior to 2018. this discussion and analysis should be read in conjunction with the unaudited consolidated financial statements and accompanying notes thereto , which are included elsewhere in this document . use of non-gaap financial measures this discussion and analysis contains certain financial measures that are not recognized under gaap . under sec regulation g , public companies making disclosures containing financial measures that are not in accordance with gaap must also disclose , along with each “ non-gaap ” financial measure , certain additional information , including a reconciliation of the non-gaap financial measure to the closest comparable gaap financial measure , as well as a statement of the company 's reasons for utilizing the non-gaap financial measure . generally , united has presented a non-gaap financial measure because it believes that this measure provides meaningful additional information to assist in the evaluation of united 's results of operations or financial position . presentation of a non-gaap financial measure is consistent with how united 's management evaluates its performance internally and this non-gaap financial measure is frequently used by securities analysts , investors and other interested parties in the evaluation of companies in the banking industry . specifically , this discussion contains certain references to financial measures identified as tax-equivalent ( fte ) net interest income and return on average tangible equity . management believes these non-gaap financial measures to be helpful in understanding united 's results of operations or financial position . 32 net interest income is presented in this discussion on a tax-equivalent basis . the tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments . although this is a non-gaap measure , united 's management believes this measure is more widely used within the financial services industry and provides better comparability of net interest income arising from taxable and tax-exempt sources . story_separator_special_tag the following discussion explains in more detail the changes in financial condition by major category . story_separator_special_tag justify ; font-family : times new roman ; font-size : 10pt ; margin-top : 12pt ; margin-bottom : 0px ; `` > during 2019 , united recognized other-than-temporary impairment totaling $ 198 thousand on three investment securities . with the exception of these three securities , management does not believe that any other individual security with an unrealized loss as of december 31 , 2019 is other-than-temporarily impaired . united believes the decline in value resulted from changes in market interest rates , credit spreads and liquidity , not an adverse change in the expected contractual cash flows . based on a review of each of the securities in the investment portfolio , management concluded that it was not probable that it would be unable to realize the cost basis investment and appropriate interest payments on such securities . united has the intent and the ability to hold these securities until such time as the value recovers or the securities mature . however , united acknowledges that any impaired securities may be sold in future periods in response to significant , unanticipated changes in asset/liability management decisions , unanticipated future market movements or business plan changes . further information regarding the amortized cost and estimated fair value of investment securities , including remaining maturities as well as a more detailed discussion of management 's other-than-temporary impairment analysis , is presented in note c , notes to consolidated financial statements . loans held for sale loans held for sale increased $ 137.67 million or 55.10 % from year-end 2018. loan originations in the secondary market exceeded sales during the year of 2019. loan originations were $ 2.57 billion while loans sales were $ 2.44 billion . loans held for sale were $ 387.51 million at december 31 , 2019 as compared to $ 249.85 million at year-end 2018. portfolio loans loans , net of unearned income , increased $ 289.91 million or 2.16 % . since year-end 2018 , commercial , financial and agricultural loans decreased $ 100.40 million or 1.33 % as commercial real estate loans decreased $ 427.79 million or 7.65 % which was mostly offset by a $ 327.40 million or 16.72 % increase in commercial loans ( not secured by real estate ) . residential real estate loans increased $ 185.01 million or 5.28 % due mainly to an increase in first lien mortgage loans , and consumer loans increased $ 201.67 million or 20.91 % due to an increase in indirect automobile financing . construction and land development loans remained flat from prior year , decreasing $ 2.26 million or less than 1 % . 38 a summary of loans outstanding is as follows : replace_table_token_7_th the following table summarizes the outstanding balances of portfolio loans originated and acquired , by type , as of december 31 , 2019 and december 31 , 2018 : replace_table_token_8_th replace_table_token_9_th the following table shows the maturity of commercial , financial , and agricultural loans and real estate construction and land development loans as of december 31 , 2019 : replace_table_token_10_th 39 at december 31 , 2019 , commercial , financial and agricultural loans and real estate construction and land development loans by maturity are as follows : replace_table_token_11_th more information relating to loans is presented in note d , notes to consolidated financial statements . other assets other assets decreased $ 15.23 million or 3.33 % from year-end 2018 , mainly due to deferred tax assets decreasing $ 18.32 million . in addition , core deposit intangibles decreased $ 7.02 million due to amortization . partially offsetting these decreases were increases of $ 7.72 million in accounts receivables and $ 4.28 million in prepaid assets . deposits deposits represent united 's primary source of funding . total deposits at december 31 , 2019 decreased $ 142.33 million or 1.02 % . in terms of composition , interest-bearing deposits decreased $ 346.88 million or 3.62 % while noninterest-bearing deposits increased $ 204.55 million or 4.63 % from december 31 , 2018. noninterest-bearing deposits consist of demand deposit and noninterest bearing money market ( mmda ) account balances . the $ 204.55 million increase in noninterest-bearing deposits was due mainly to increases in commercial noninterest-bearing deposits of $ 139.67 million or 6.19 % and personal noninterest-bearing deposits of $ 23.38 million or 3.25 % . in addition , in process items increased $ 9.44 million . interest-bearing deposits consist of interest-bearing checking ( now ) , regular savings , interest-bearing mmda , and time deposit account balances . interest-bearing mmdas decreased $ 300.89 million or 5.05 % while now accounts decreased $ 2.32 million or less than 1 % since year-end 2018. in particular , interest-bearing mmdas decreased $ 300.89 million as commercial mmdas decreased $ 162.79 million , brokered mmdas decreased $ 126.95 million , and public funds mmdas decreased $ 61.10 million . excluding sweep activity from now accounts to interest-bearing mmdas to reduce united 's reserve requirement at its federal reserve bank , now accounts decreased $ 159.34 million or 8.05 % mainly due to a decrease of $ 137.70 million in personal now accounts and a $ 73.10 million decrease in public funds now accounts . partially offsetting these decreases was an increase of $ 51.46 million in commercial now accounts . regular savings decreased $ 72.07 million or 7.55 % from year-end 2018 mainly due to a $ 68.18 million decrease in personal savings accounts , a $ 4.60 million decrease in commercial savings accounts , and a $ 3.25 million decrease in retirement savings accounts . time deposits under $ 100,000 increased $ 11.63 million or 1.63 % from year-end 2018. this increase in time deposits under $ 100,000 is the result of a $ 9.52 million increase in certificate of deposit account registry service ( cdars ) balances and a $ 4.59 million increase in fixed cds
| cash and cash equivalents cash and cash equivalents at december 31 , 2019 decreased $ 182.90 million or 17.92 % from year-end 2018. in particular , interest-bearing deposits with other banks decreased $ 180.27 million or 21.67 % as united placed less cash in an interest-bearing account with the federal reserve . in addition , cash and due from banks decreased $ 2.65 million or 1.41 % . federal funds sold increased $ 17 thousand or 2.12 % . during the year of 2019 , net cash of $ 147.69 million and $ 48.45 million were provided by operating and financing activities , respectively , while net cash of $ 379.05 million was used in investing activities . further details related to changes in cash and cash equivalents are presented in the consolidated statements of cash flows . securities total investment securities at december 31 , 2019 increased $ 126.07 million or 4.96 % from year-end 2018. securities available for sale increased $ 100.26 million or 4.29 % . this change in securities available for sale reflects $ 712.56 million in sales , maturities and calls of securities , $ 771.29 million in purchases , and an increase of $ 32.47 million in market value . the majority of the purchase activity was related to corporate securities which were almost exclusively issued by investment grade rated , single-name issuers , and have maturity dates of less than five years . securities held to maturity declined $ 18.55 million or 92.77 % from year-end 2018 due mainly to the transfer of $ 11.54 million of investment securities to available for sale securities upon the adoption of asu no . 2017-12. equity securities were $ 8.89 million at december 31 , 2019 , a decrease of $ 840 thousand or 8.63
| 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 at december 31 , 2019 decreased $ 182.90 million or 17.92 % from year-end 2018. in particular , interest-bearing deposits with other banks decreased $ 180.27 million or 21.67 % as united placed less cash in an interest-bearing account with the federal reserve . in addition , cash and due from banks decreased $ 2.65 million or 1.41 % . federal funds sold increased $ 17 thousand or 2.12 % . during the year of 2019 , net cash of $ 147.69 million and $ 48.45 million were provided by operating and financing activities , respectively , while net cash of $ 379.05 million was used in investing activities . further details related to changes in cash and cash equivalents are presented in the consolidated statements of cash flows . securities total investment securities at december 31 , 2019 increased $ 126.07 million or 4.96 % from year-end 2018. securities available for sale increased $ 100.26 million or 4.29 % . this change in securities available for sale reflects $ 712.56 million in sales , maturities and calls of securities , $ 771.29 million in purchases , and an increase of $ 32.47 million in market value . the majority of the purchase activity was related to corporate securities which were almost exclusively issued by investment grade rated , single-name issuers , and have maturity dates of less than five years . securities held to maturity declined $ 18.55 million or 92.77 % from year-end 2018 due mainly to the transfer of $ 11.54 million of investment securities to available for sale securities upon the adoption of asu no . 2017-12. equity securities were $ 8.89 million at december 31 , 2019 , a decrease of $ 840 thousand or 8.63
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Suspicious Activity Report : management is in the process of finalizing the impact of the adoption of this guidance on united 's financial condition , results of operations , liquidity , and regulatory capital ratios . based on current economic conditions , management expects the allowance for credit losses to increase by 20 % to 30 % . for additional discussion of accounting pronouncements pending adoption , see note a of the notes to the condensed consolidated financial statements in part ii , item 8 of this form 10-k. 31 transition from the london interbank offerered rate ( libor ) in 2017 , the united kingdom 's financial conduct authority , which regulates libor , publicly announced that it intends to stop persuading or compelling banks to submit the rates used to calculate libor after 2021. currently , it is unclear whether these banks , as a group or individually , will continue to submit the rates used to calculate libor after 2021. it is also unclear whether libor will continue to be viewed as an acceptable market benchmark , what rate or rates may become accepted alternatives to libor , or what the effect of any such changes may be on the markets for libor-indexed financial instruments . working groups comprised of various regulators and other industry groups have been formed in the united states and other countries in order to provide guidance on this topic . in particular , the alternative reference rates committee ( arrc ) has been formed in the united states by the federal reserve board and the federal reserve bank of new york . the arrc has identified the secured overnight financing rate ( sofr ) as its preferred alternative reference rate for u.s. dollar libor . the arrc has also published recommended fall-back language for libor-linked financial instruments , among numerous other areas of guidance . at this time , however , it is unclear whether these recommendations will be broadly accepted by industry participants , whether they will continue to evolve , and what impact they will ultimately have on the broader markets that utilize libor as a reference rate . united has loans , derivative contracts , borrowings , and other financial instruments that are directly or indirectly dependent on libor . the transition from libor will cause changes to payment calculations for existing contracts that use libor as the reference rate . these changes will create various risks surrounding the financial , operational , compliance and legal aspects associated with changing certain elements of existing contracts . united will also be subject to risks surrounding changes to models and systems that currently use libor reference rates , as well as market and strategic risks that could arise from the use of alternative reference rates . additionally , united could face reputational risks if this transition is not managed appropriately with its customers . while the full impact of the transition is not yet known , failure to adequately manage the transition could have a material adverse effect on our business , financial condition and results of operations . introduction the following discussion and analysis presents the more significant changes in financial condition as of december 31 , 2019 and 2018 and the results of operations of united and its subsidiaries for each of the years then ended . this discussion and the consolidated financial statements and the notes to consolidated financial statements include the accounts of united bankshares , inc. and its wholly-owned subsidiaries , unless otherwise indicated . management has evaluated all significant events and transactions that occurred after december 31 , 2019 , but prior to the date these financial statements were issued , for potential recognition or disclosure required in these financial statements . refer to management 's discussion and analysis of financial condition and results of operations included in our annual report on form 10-k filed with the sec on march 1 , 2019 ( the 2018 form 10-k ) for a discussion and analysis of the more significant factors that affected periods prior to 2018. this discussion and analysis should be read in conjunction with the unaudited consolidated financial statements and accompanying notes thereto , which are included elsewhere in this document . use of non-gaap financial measures this discussion and analysis contains certain financial measures that are not recognized under gaap . under sec regulation g , public companies making disclosures containing financial measures that are not in accordance with gaap must also disclose , along with each “ non-gaap ” financial measure , certain additional information , including a reconciliation of the non-gaap financial measure to the closest comparable gaap financial measure , as well as a statement of the company 's reasons for utilizing the non-gaap financial measure . generally , united has presented a non-gaap financial measure because it believes that this measure provides meaningful additional information to assist in the evaluation of united 's results of operations or financial position . presentation of a non-gaap financial measure is consistent with how united 's management evaluates its performance internally and this non-gaap financial measure is frequently used by securities analysts , investors and other interested parties in the evaluation of companies in the banking industry . specifically , this discussion contains certain references to financial measures identified as tax-equivalent ( fte ) net interest income and return on average tangible equity . management believes these non-gaap financial measures to be helpful in understanding united 's results of operations or financial position . 32 net interest income is presented in this discussion on a tax-equivalent basis . the tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments . although this is a non-gaap measure , united 's management believes this measure is more widely used within the financial services industry and provides better comparability of net interest income arising from taxable and tax-exempt sources . story_separator_special_tag the following discussion explains in more detail the changes in financial condition by major category . story_separator_special_tag justify ; font-family : times new roman ; font-size : 10pt ; margin-top : 12pt ; margin-bottom : 0px ; `` > during 2019 , united recognized other-than-temporary impairment totaling $ 198 thousand on three investment securities . with the exception of these three securities , management does not believe that any other individual security with an unrealized loss as of december 31 , 2019 is other-than-temporarily impaired . united believes the decline in value resulted from changes in market interest rates , credit spreads and liquidity , not an adverse change in the expected contractual cash flows . based on a review of each of the securities in the investment portfolio , management concluded that it was not probable that it would be unable to realize the cost basis investment and appropriate interest payments on such securities . united has the intent and the ability to hold these securities until such time as the value recovers or the securities mature . however , united acknowledges that any impaired securities may be sold in future periods in response to significant , unanticipated changes in asset/liability management decisions , unanticipated future market movements or business plan changes . further information regarding the amortized cost and estimated fair value of investment securities , including remaining maturities as well as a more detailed discussion of management 's other-than-temporary impairment analysis , is presented in note c , notes to consolidated financial statements . loans held for sale loans held for sale increased $ 137.67 million or 55.10 % from year-end 2018. loan originations in the secondary market exceeded sales during the year of 2019. loan originations were $ 2.57 billion while loans sales were $ 2.44 billion . loans held for sale were $ 387.51 million at december 31 , 2019 as compared to $ 249.85 million at year-end 2018. portfolio loans loans , net of unearned income , increased $ 289.91 million or 2.16 % . since year-end 2018 , commercial , financial and agricultural loans decreased $ 100.40 million or 1.33 % as commercial real estate loans decreased $ 427.79 million or 7.65 % which was mostly offset by a $ 327.40 million or 16.72 % increase in commercial loans ( not secured by real estate ) . residential real estate loans increased $ 185.01 million or 5.28 % due mainly to an increase in first lien mortgage loans , and consumer loans increased $ 201.67 million or 20.91 % due to an increase in indirect automobile financing . construction and land development loans remained flat from prior year , decreasing $ 2.26 million or less than 1 % . 38 a summary of loans outstanding is as follows : replace_table_token_7_th the following table summarizes the outstanding balances of portfolio loans originated and acquired , by type , as of december 31 , 2019 and december 31 , 2018 : replace_table_token_8_th replace_table_token_9_th the following table shows the maturity of commercial , financial , and agricultural loans and real estate construction and land development loans as of december 31 , 2019 : replace_table_token_10_th 39 at december 31 , 2019 , commercial , financial and agricultural loans and real estate construction and land development loans by maturity are as follows : replace_table_token_11_th more information relating to loans is presented in note d , notes to consolidated financial statements . other assets other assets decreased $ 15.23 million or 3.33 % from year-end 2018 , mainly due to deferred tax assets decreasing $ 18.32 million . in addition , core deposit intangibles decreased $ 7.02 million due to amortization . partially offsetting these decreases were increases of $ 7.72 million in accounts receivables and $ 4.28 million in prepaid assets . deposits deposits represent united 's primary source of funding . total deposits at december 31 , 2019 decreased $ 142.33 million or 1.02 % . in terms of composition , interest-bearing deposits decreased $ 346.88 million or 3.62 % while noninterest-bearing deposits increased $ 204.55 million or 4.63 % from december 31 , 2018. noninterest-bearing deposits consist of demand deposit and noninterest bearing money market ( mmda ) account balances . the $ 204.55 million increase in noninterest-bearing deposits was due mainly to increases in commercial noninterest-bearing deposits of $ 139.67 million or 6.19 % and personal noninterest-bearing deposits of $ 23.38 million or 3.25 % . in addition , in process items increased $ 9.44 million . interest-bearing deposits consist of interest-bearing checking ( now ) , regular savings , interest-bearing mmda , and time deposit account balances . interest-bearing mmdas decreased $ 300.89 million or 5.05 % while now accounts decreased $ 2.32 million or less than 1 % since year-end 2018. in particular , interest-bearing mmdas decreased $ 300.89 million as commercial mmdas decreased $ 162.79 million , brokered mmdas decreased $ 126.95 million , and public funds mmdas decreased $ 61.10 million . excluding sweep activity from now accounts to interest-bearing mmdas to reduce united 's reserve requirement at its federal reserve bank , now accounts decreased $ 159.34 million or 8.05 % mainly due to a decrease of $ 137.70 million in personal now accounts and a $ 73.10 million decrease in public funds now accounts . partially offsetting these decreases was an increase of $ 51.46 million in commercial now accounts . regular savings decreased $ 72.07 million or 7.55 % from year-end 2018 mainly due to a $ 68.18 million decrease in personal savings accounts , a $ 4.60 million decrease in commercial savings accounts , and a $ 3.25 million decrease in retirement savings accounts . time deposits under $ 100,000 increased $ 11.63 million or 1.63 % from year-end 2018. this increase in time deposits under $ 100,000 is the result of a $ 9.52 million increase in certificate of deposit account registry service ( cdars ) balances and a $ 4.59 million increase in fixed cds
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2,668 | the cbot crush spread during fiscal year 2015 ranged from approximately $ 0.02 in february 2015 to approximately $ 0.37 in may 2015. income from continuing operations , net of tax was approximately $ 31.4 million in fiscal year 2015 compared to approximately $ 86.8 million in fiscal year 2014. we sold our interest in patriot holdings , llc ( “ patriot ” ) effective june 1 , 2015 for an after tax gain of approximately $ 6.6 million . the gain and resulting loss of income from patriot using the equity method of accounting affects comparability between years . the decrease in profitability primarily resulted from lower crush spreads ( compared to the prior year ) experienced in the ethanol industry for a majority of fiscal year 2015 as lower energy prices and over supply of ethanol reduced ethanol pricing during fiscal year 2015. we expect that future operating results , from our consolidated plants , will be based upon combined annual production of between 215 and 240 million gallons of ethanol , which assumes that our consolidated ethanol plants will operate at or above nameplate capacity . however , due to the inherent volatility of the crush spread , we can not predict the likelihood of future operating results being similar to the fiscal year 2015 results . we utilize derivative financial instruments , primarily exchange traded commodity future contracts , in conjunction with certain of our grain procurement activities . the crush spread in the first quarter of fiscal year 2016 has continued to be negatively impacted by lower energy pricing and over supply of ethanol . likewise , distillers grains pricing has also trailed the prior year which we believe is largely being impacted by lower corn prices and over supply . distillers grains pricing may also be negatively impacted by the chinese government initiating an anti-dumping and countervailing duty investigation in january 2016. the epa has reduced the rfs required volume from conventional biofuels for 2014 , 2015 and 2016 from its originally mandated levels of 14.4 billion , 15.0 billion and 15.0 billion gallons to 13.6 billion , 14.1 billion and 14.5 billion gallons , respectively . the uncertainty regarding the required rfs volumes for future years could negatively impact ethanol pricing . the u.s. ethanol industry produced approximately 14.8 billion 23 gallons of conventional biofuel in 2015. the u.s. exported approximately 844 million gallons in 2015. if the export market is not maintained or increased , ethanol pricing may be negatively impacted . we plan to seek and evaluate various investment opportunities including energy related , agricultural or other ventures we believe fit our investment criteria . we can make no assurances that we will be successful in our efforts to find such opportunities . through a wholly owned subsidiary rex i.p . , llc , we have entered into a joint venture with hytken to file and defend patents for technology relating to heavy oil and oil sands production methods , and to attempt to commercially exploit the technology to generate license fees , royalty income and development opportunities . the patented technology is an enhanced method of heavy oil recovery involving zero emissions downhole steam generation . we own 60 % and hytken owns 40 % of the entity named future energy , llc , an ohio limited liability company . future energy is managed by a board of three managers , two appointed by us and one by hytken . during fiscal year 2013 , we agreed to fund direct patent expenses relating to patent applications and defense , annual annuity fees and maintenance on a country by country basis , with the right to terminate funding and transfer related patent rights to hytken . we may also fund , through loans , all costs relating to new intellectual property , consultants , and future research and development , pilot field tests and equipment purchases for commercialization stage of the patents . to date , we have paid approximately $ 1.6 million for our ownership interest , patent and other expenses . results of the formation and year to date operations of future energy , llc were immaterial to the consolidated financial statements . in addition , at january 31 , 2016 , we had lease agreements for all or parts of three former retail properties and had one vacant former retail property . we are marketing the vacant property to lease or sell . ethanol investments in fiscal year 2006 , we entered the alternative energy industry by investing in several entities organized to construct and , subsequently operate , ethanol producing plants . we are invested in three entities as of january 31 , 2016 , utilizing equity investments . the following table is a summary of our ethanol investments at january 31 , 2016 ( gallons in millions ) : replace_table_token_4_th 24 results of operations comparison of fiscal years ended january 31 , 2016 and 2015 the following table summarizes selected data from our consolidated operations : replace_table_token_5_th net sales and revenue – net sales and revenue in fiscal year 2015 were approximately $ 436.5 million , a 23.7 % decrease from approximately $ 572.2 million in fiscal year 2014. the following table summarizes sales of our consolidated operations for each product and service group for the periods presented ( amounts in thousands ) : replace_table_token_6_th ethanol sales decreased from approximately $ 452.8 million in the prior year to approximately $ 333.2 million in the current year , primarily a result of a $ 0.56 decline in the price per gallon sold . management believes the decline in the selling price results primarily from the historically low crude oil prices experienced in fiscal year 2015 and an oversupply of ethanol . story_separator_special_tag noncontrolling interests of one earth and nugen were approximately $ ( 16.2 ) million and $ ( 0.4 ) million , respectively , during fiscal year 2014. noncontrolling interests of one earth and nugen were approximately $ ( 5.4 ) million and $ ( 0.2 ) million , respectively , during fiscal year 2013. the loss related to noncontrolling interests of future energy was approximately $ 0.2 million and $ 0.4 million during fiscal years 2014 and 2013 , respectively . net income or loss attributable to rex common shareholders – as a result of the foregoing , net income attributable to rex common shareholders was approximately $ 87.3 million for fiscal year 2014 compared to $ 35.1 million for fiscal year 2013. story_separator_special_tag purchased approximately 282,000 shares of our common stock for approximately $ 18.1 million in open market transactions . 31 at january 31 , 2015 , we had no debt outstanding as we paid off our debt during fiscal year 2014 and terminated the related agreements . based on our forecasts , which are primarily based on estimates of plant production , prices of ethanol , corn , distillers grains , non-food grade corn oil and natural gas as well as other assumptions management believes to be reasonable , management believes that cash flow from operating activities together with working capital will be sufficient to meet one earth 's and nugen 's respective liquidity needs . however , if a material adverse change in the financial position of one earth or nugen should occur , or if actual sales or expenses are substantially different than what has been forecasted , one earth 's and nugen 's liquidity , and ability to fund future operating and capital requirements could be negatively impacted . including equity method investees , approximately 9.5 % of our net assets are restricted pursuant to the terms of various loan agreements as of january 31 , 2016. excluding equity method investees , none of our net assets are restricted as of january 31 , 2016. off balance sheet arrangements none . tabular disclosure of contractual obligations in the ordinary course of business , we enter into agreements under which we are obligated to make legally enforceable future cash payments . these agreements include obligations related to purchasing inventory and leasing rail cars . the following table summarizes by category expected future cash outflows associated with contractual obligations in effect , at january 31 , 2016 ( amounts in thousands ) : replace_table_token_8_th ( a ) amounts represent primarily payments due for rail car usage and grain contracts at one earth and nugen . we are not able to determine the likely settlement period for uncertain tax positions , accordingly , approximately $ 1.0 million of uncertain tax positions and related interest and penalties have been excluded from the table above . we are not able to determine the likely settlement for forward basis corn purchase contracts which do not contain a determinable fixed price ; accordingly , payments for such contracts have been excluded from the table above . seasonality and quarterly fluctuations the impact of seasonal and quarterly fluctuations has not been material to our results of operations for the past three fiscal years . impact of inflation the impact of inflation has not been material to our results of operations for the past three fiscal years . 32 critical accounting policies we believe the application of the following accounting policies , which are important to our financial position and results of operations , require significant assumptions , judgments and estimates on the part of management . we base our assumptions , judgments , and estimates on historical experience , current trends and other factors that management believes to be relevant at the time our consolidated financial statements are prepared . on a regular basis , management reviews the accounting policies , assumptions , estimates and judgments to ensure that our financial statements are presented in accordance with generally accepted accounting principles ( gaap ) . however , because future events and their effects can not be determined with certainty , actual results could differ from our assumptions and estimates , and such differences could be material . further , if different assumptions , judgments and estimates had been used , the results could have been different and such differences could be material . for a summary of all of our accounting policies , including the accounting policies discussed below , see note 1 of the notes to the consolidated financial statements . management believes that the following accounting policies are the most critical to aid in fully understanding and evaluating our reported financial results , and they require management 's most difficult , subjective or complex judgments , resulting from the need to make estimates about the effect of matters that are inherently uncertain . revenue recognition – we recognize sales from ethanol , distillers grains and non-food grade corn oil when title transfers to customers , generally upon shipment from our plant or upon loading of the rail car used to transport the products . investments– the method of accounting applied to long-term investments , whether consolidated , equity or cost , involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which we are the primary beneficiary . the evaluation of consolidation under accounting standards codification ( “ asc 810 ” ) “ consolidation ” is complex and requires judgments to be made . we consolidate the results of two majority owned subsidiaries , one earth and nugen . the results of one earth are included on a delayed basis of one month . the company accounts for investments in limited liability companies in which it may have a less than 20 % ownership interest , using the equity method of accounting when the
| liquidity and capital resources our primary sources of cash have been income from operations , a sale of one of our ethanol investments , and dividends from ethanol investments . our primary uses of cash have been capital expenditures at our ethanol plants , long term debt repayments and stock repurchases . outlook – our cash balance of approximately $ 135.8 million includes approximately $ 78.6 million held by one earth and nugen . during fiscal year 2014 , one earth and nugen paid off and terminated their debt agreements , and are no longer limited with respect to paying dividends . we expect that one earth and nugen will use a majority of their cash for working capital needs , general corporate purposes and dividend payments . we expect our equity method investee to limit the payment of dividends based upon working capital needs . we are investigating various uses of our excess cash . we have a stock buyback program , and given our current authorization level , can repurchase a total of 243,238 shares as of january 31 , 2016. we typically repurchase our common stock when our stock price is trading at prices we deem to be a discount to the underlying value of our net assets . we do not currently plan to build a new ethanol plant . another possible use of our cash is to expand the capacity of our existing consolidated plants by approximately 10-15 % as these plants have qualified as efficient ethanol producers through the epa pathway assessment . we also plan to seek and evaluate other various investment opportunities including energy related , agricultural or other ventures we believe fit our investment criteria . we do not have significant commitments for capital expenditures at january 31 , 2016. we expect capital expenditures to be in the range of approximately $ 6 million to $ 10 million in fiscal year 2016 and expect to fund such capital expenditures with available cash at our ethanol plant 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 our primary sources of cash have been income from operations , a sale of one of our ethanol investments , and dividends from ethanol investments . our primary uses of cash have been capital expenditures at our ethanol plants , long term debt repayments and stock repurchases . outlook – our cash balance of approximately $ 135.8 million includes approximately $ 78.6 million held by one earth and nugen . during fiscal year 2014 , one earth and nugen paid off and terminated their debt agreements , and are no longer limited with respect to paying dividends . we expect that one earth and nugen will use a majority of their cash for working capital needs , general corporate purposes and dividend payments . we expect our equity method investee to limit the payment of dividends based upon working capital needs . we are investigating various uses of our excess cash . we have a stock buyback program , and given our current authorization level , can repurchase a total of 243,238 shares as of january 31 , 2016. we typically repurchase our common stock when our stock price is trading at prices we deem to be a discount to the underlying value of our net assets . we do not currently plan to build a new ethanol plant . another possible use of our cash is to expand the capacity of our existing consolidated plants by approximately 10-15 % as these plants have qualified as efficient ethanol producers through the epa pathway assessment . we also plan to seek and evaluate other various investment opportunities including energy related , agricultural or other ventures we believe fit our investment criteria . we do not have significant commitments for capital expenditures at january 31 , 2016. we expect capital expenditures to be in the range of approximately $ 6 million to $ 10 million in fiscal year 2016 and expect to fund such capital expenditures with available cash at our ethanol plant subsidiaries .
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Suspicious Activity Report : the cbot crush spread during fiscal year 2015 ranged from approximately $ 0.02 in february 2015 to approximately $ 0.37 in may 2015. income from continuing operations , net of tax was approximately $ 31.4 million in fiscal year 2015 compared to approximately $ 86.8 million in fiscal year 2014. we sold our interest in patriot holdings , llc ( “ patriot ” ) effective june 1 , 2015 for an after tax gain of approximately $ 6.6 million . the gain and resulting loss of income from patriot using the equity method of accounting affects comparability between years . the decrease in profitability primarily resulted from lower crush spreads ( compared to the prior year ) experienced in the ethanol industry for a majority of fiscal year 2015 as lower energy prices and over supply of ethanol reduced ethanol pricing during fiscal year 2015. we expect that future operating results , from our consolidated plants , will be based upon combined annual production of between 215 and 240 million gallons of ethanol , which assumes that our consolidated ethanol plants will operate at or above nameplate capacity . however , due to the inherent volatility of the crush spread , we can not predict the likelihood of future operating results being similar to the fiscal year 2015 results . we utilize derivative financial instruments , primarily exchange traded commodity future contracts , in conjunction with certain of our grain procurement activities . the crush spread in the first quarter of fiscal year 2016 has continued to be negatively impacted by lower energy pricing and over supply of ethanol . likewise , distillers grains pricing has also trailed the prior year which we believe is largely being impacted by lower corn prices and over supply . distillers grains pricing may also be negatively impacted by the chinese government initiating an anti-dumping and countervailing duty investigation in january 2016. the epa has reduced the rfs required volume from conventional biofuels for 2014 , 2015 and 2016 from its originally mandated levels of 14.4 billion , 15.0 billion and 15.0 billion gallons to 13.6 billion , 14.1 billion and 14.5 billion gallons , respectively . the uncertainty regarding the required rfs volumes for future years could negatively impact ethanol pricing . the u.s. ethanol industry produced approximately 14.8 billion 23 gallons of conventional biofuel in 2015. the u.s. exported approximately 844 million gallons in 2015. if the export market is not maintained or increased , ethanol pricing may be negatively impacted . we plan to seek and evaluate various investment opportunities including energy related , agricultural or other ventures we believe fit our investment criteria . we can make no assurances that we will be successful in our efforts to find such opportunities . through a wholly owned subsidiary rex i.p . , llc , we have entered into a joint venture with hytken to file and defend patents for technology relating to heavy oil and oil sands production methods , and to attempt to commercially exploit the technology to generate license fees , royalty income and development opportunities . the patented technology is an enhanced method of heavy oil recovery involving zero emissions downhole steam generation . we own 60 % and hytken owns 40 % of the entity named future energy , llc , an ohio limited liability company . future energy is managed by a board of three managers , two appointed by us and one by hytken . during fiscal year 2013 , we agreed to fund direct patent expenses relating to patent applications and defense , annual annuity fees and maintenance on a country by country basis , with the right to terminate funding and transfer related patent rights to hytken . we may also fund , through loans , all costs relating to new intellectual property , consultants , and future research and development , pilot field tests and equipment purchases for commercialization stage of the patents . to date , we have paid approximately $ 1.6 million for our ownership interest , patent and other expenses . results of the formation and year to date operations of future energy , llc were immaterial to the consolidated financial statements . in addition , at january 31 , 2016 , we had lease agreements for all or parts of three former retail properties and had one vacant former retail property . we are marketing the vacant property to lease or sell . ethanol investments in fiscal year 2006 , we entered the alternative energy industry by investing in several entities organized to construct and , subsequently operate , ethanol producing plants . we are invested in three entities as of january 31 , 2016 , utilizing equity investments . the following table is a summary of our ethanol investments at january 31 , 2016 ( gallons in millions ) : replace_table_token_4_th 24 results of operations comparison of fiscal years ended january 31 , 2016 and 2015 the following table summarizes selected data from our consolidated operations : replace_table_token_5_th net sales and revenue – net sales and revenue in fiscal year 2015 were approximately $ 436.5 million , a 23.7 % decrease from approximately $ 572.2 million in fiscal year 2014. the following table summarizes sales of our consolidated operations for each product and service group for the periods presented ( amounts in thousands ) : replace_table_token_6_th ethanol sales decreased from approximately $ 452.8 million in the prior year to approximately $ 333.2 million in the current year , primarily a result of a $ 0.56 decline in the price per gallon sold . management believes the decline in the selling price results primarily from the historically low crude oil prices experienced in fiscal year 2015 and an oversupply of ethanol . story_separator_special_tag noncontrolling interests of one earth and nugen were approximately $ ( 16.2 ) million and $ ( 0.4 ) million , respectively , during fiscal year 2014. noncontrolling interests of one earth and nugen were approximately $ ( 5.4 ) million and $ ( 0.2 ) million , respectively , during fiscal year 2013. the loss related to noncontrolling interests of future energy was approximately $ 0.2 million and $ 0.4 million during fiscal years 2014 and 2013 , respectively . net income or loss attributable to rex common shareholders – as a result of the foregoing , net income attributable to rex common shareholders was approximately $ 87.3 million for fiscal year 2014 compared to $ 35.1 million for fiscal year 2013. story_separator_special_tag purchased approximately 282,000 shares of our common stock for approximately $ 18.1 million in open market transactions . 31 at january 31 , 2015 , we had no debt outstanding as we paid off our debt during fiscal year 2014 and terminated the related agreements . based on our forecasts , which are primarily based on estimates of plant production , prices of ethanol , corn , distillers grains , non-food grade corn oil and natural gas as well as other assumptions management believes to be reasonable , management believes that cash flow from operating activities together with working capital will be sufficient to meet one earth 's and nugen 's respective liquidity needs . however , if a material adverse change in the financial position of one earth or nugen should occur , or if actual sales or expenses are substantially different than what has been forecasted , one earth 's and nugen 's liquidity , and ability to fund future operating and capital requirements could be negatively impacted . including equity method investees , approximately 9.5 % of our net assets are restricted pursuant to the terms of various loan agreements as of january 31 , 2016. excluding equity method investees , none of our net assets are restricted as of january 31 , 2016. off balance sheet arrangements none . tabular disclosure of contractual obligations in the ordinary course of business , we enter into agreements under which we are obligated to make legally enforceable future cash payments . these agreements include obligations related to purchasing inventory and leasing rail cars . the following table summarizes by category expected future cash outflows associated with contractual obligations in effect , at january 31 , 2016 ( amounts in thousands ) : replace_table_token_8_th ( a ) amounts represent primarily payments due for rail car usage and grain contracts at one earth and nugen . we are not able to determine the likely settlement period for uncertain tax positions , accordingly , approximately $ 1.0 million of uncertain tax positions and related interest and penalties have been excluded from the table above . we are not able to determine the likely settlement for forward basis corn purchase contracts which do not contain a determinable fixed price ; accordingly , payments for such contracts have been excluded from the table above . seasonality and quarterly fluctuations the impact of seasonal and quarterly fluctuations has not been material to our results of operations for the past three fiscal years . impact of inflation the impact of inflation has not been material to our results of operations for the past three fiscal years . 32 critical accounting policies we believe the application of the following accounting policies , which are important to our financial position and results of operations , require significant assumptions , judgments and estimates on the part of management . we base our assumptions , judgments , and estimates on historical experience , current trends and other factors that management believes to be relevant at the time our consolidated financial statements are prepared . on a regular basis , management reviews the accounting policies , assumptions , estimates and judgments to ensure that our financial statements are presented in accordance with generally accepted accounting principles ( gaap ) . however , because future events and their effects can not be determined with certainty , actual results could differ from our assumptions and estimates , and such differences could be material . further , if different assumptions , judgments and estimates had been used , the results could have been different and such differences could be material . for a summary of all of our accounting policies , including the accounting policies discussed below , see note 1 of the notes to the consolidated financial statements . management believes that the following accounting policies are the most critical to aid in fully understanding and evaluating our reported financial results , and they require management 's most difficult , subjective or complex judgments , resulting from the need to make estimates about the effect of matters that are inherently uncertain . revenue recognition – we recognize sales from ethanol , distillers grains and non-food grade corn oil when title transfers to customers , generally upon shipment from our plant or upon loading of the rail car used to transport the products . investments– the method of accounting applied to long-term investments , whether consolidated , equity or cost , involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which we are the primary beneficiary . the evaluation of consolidation under accounting standards codification ( “ asc 810 ” ) “ consolidation ” is complex and requires judgments to be made . we consolidate the results of two majority owned subsidiaries , one earth and nugen . the results of one earth are included on a delayed basis of one month . the company accounts for investments in limited liability companies in which it may have a less than 20 % ownership interest , using the equity method of accounting when the
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2,669 | to the extent we proceed with the clinical development of cenderitide and if we further develop cu-np , our second product candidate , our research and development expenses will continue increasing . accordingly , our success depends not only on the safety and efficacy of our product candidates , but also on our ability to finance the development of the products . our major sources of working capital have been proceeds from public and private sales of our equity and debt securities . research and development , or r & d , expenses consist primarily of salaries and related personnel costs , fees paid to consultants and outside service providers for pre-clinical , clinical , and manufacturing development , legal expenses resulting from intellectual property prosecution , contractual review , and other expenses relating to the design , development , testing , and enhancement of our product candidates . we expense our r & d costs as they are incurred . general and administrative , or g & a , expenses consist primarily of salaries and related expenses for executive , finance and other administrative personnel , personnel recruiting fees , accounting , legal and other professional fees , business development expenses , rent , business insurance and other corporate expenses . our results include non-cash compensation expense as a result of the issuance of stock , stock options , and warrants . we expense the fair value of stock options and warrants over the vesting period . when more precise pricing data is unavailable , we determine the fair value of stock options using the black-scholes option-pricing model . the terms and vesting schedules for share-based awards vary by type of grant and the employment status of the grantee . generally , the awards vest based upon time-based or performance-based conditions . performance-based conditions generally include the attainment of goals related to our financial performance and product development . stock-based compensation expense is included in the respective categories of expense in the statements of operations . we expect to record additional non-cash compensation expense in the future , which may be significant . results of operations general and administrative expenses . g & a expenses for the years ended december 31 , 2012 and 2011 were approximately $ 1.6 million and $ 2.1 million , respectively . this decrease of approximately $ 0.5 million compared to the same period of 2011 is primarily attributable to a decrease of approximately $ 0.2 million in compensation costs , primarily from reduced stock compensation expense . additionally , there was a reduction in professional fees of approximately $ 0.2 compared to the same period of 2011 from requiring less services from outside consultants due to limited operations . additionally , there was an approximately $ 0.1 million savings compared to the same period in 2011 as a result of no longer being listed on the nasdaq as of may 2011. research and development expenses . r & d expenses for the years ended december 31 , 2012 and 2011 were approximately $ 1.0 million and $ 4.1 million , respectively . this decrease of approximately $ 3.1 million over the same period of 2011 is primarily due to the fact that during 2011 , the company was actively conducting clinical development activities of cenderitide and in 2012 , the company was winding down clinical activities and had almost no development activities for most of the year . this resulted in a decrease of approximately $ 2.4 million in development costs . additionally , we had a reduction of approximately $ 0.5 million in compensation costs , including stock compensation , compared to 2011 due to having no r & d employees for approximately half of 2012 , compared to one employee during all of 2011. there was also a reduction in r & d professional fees of approximately $ 0.2 million compared to 2011 as a result of the decrease in r & d activities . cenderitide ( formerly cd-np ) . all development of cenderitide is on hold pending the results of our efforts to pursue strategic alternatives for the company . 29 cu-np . since acquiring our rights to cu-np in june 2008 , we have incurred a total of approximately $ 0.6 million through december 31 , 2011. all development of cu-np is on hold pending the results of our efforts to pursue strategic alternatives for the company . our expenditures on current and future clinical development programs , particularly our cenderitide program , are expected to be substantial , particularly in relation to our available capital resources , and to increase . however , these planned expenditures are subject to many uncertainties , including the results of clinical trials and whether we develop any of our drug candidates with a partner or independently . as a result of such uncertainties , we can not predict with any significant degree of certainty the duration and completion costs of our research and development projects or whether , when and to what extent we will generate revenues from the commercialization and sale of any of our product candidates . the duration and cost of clinical trials may vary significantly over the life of a project as a result of unanticipated events arising during clinical development and a variety of factors , including : · the number of trials and studies in a clinical program ; · the number of patients who participate in the trials ; · the number of sites included in the trials ; · the rates of patient recruitment and enrollment ; · the duration of patient treatment and follow-up ; · the costs of manufacturing our drug candidates ; and · the costs , requirements , timing of , and the ability to secure regulatory approvals . collaboration income . story_separator_special_tag we may terminate the agreement without cause upon 90 days ' written notice . as of the end of 2012 , we were not in compliance with several terms of the cu-np license agreement , including , but not limited to , provisions requiring us to pay mayo an annual maintenance fee and actively pursue the development of cu-np . we are in discussions with the mayo foundation to amend and the agreement , but we can not guarantee that we will be able to reach an agreement with mayo that allows us to maintain our rights to cenderitide . see “ risk factors – risks relating to our business – we are not in compliance with various provisions of our license agreements with the mayo foundation . if we are unable to renegotiate these agreements , then we will lose our rights to cenderitide and cu-np . ” off -balance sheet arrangements there were no off-balance sheet arrangements as of december 31 , 2012. critical accounting policies and estimates our financial statements are prepared in accordance with generally accepted accounting principles . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , expenses and related disclosures . we evaluate our estimates and assumptions on an ongoing basis , including research and development and clinical trial accruals , and stock-based compensation estimates . our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances . our actual results could differ from these estimates . we believe the following critical accounting policies reflect the more significant judgments and estimates used in the preparation of our financial statements and accompanying notes . research and development expenses and accruals r & d expenses consist primarily of salaries and related personnel costs , fees paid to consultants and outside service providers for pre-clinical , clinical , and manufacturing development , legal expenses resulting from intellectual property prosecution , contractual review , and other expenses relating to the design , development , testing , and enhancement of our product candidates . except for capitalized patent expenses , r & d costs are expensed as incurred . amounts due under such arrangements may be either fixed fee or fee for service , and may include upfront payments , monthly payments , and payments upon the completion of milestones or receipt of deliverables . our cost accruals for clinical trials and other r & d activities are based on estimates of the services received and efforts expended pursuant to contracts with numerous clinical trial centers and cros , clinical study sites , laboratories , consultants , or other clinical trial vendors that perform the activities . related contracts vary significantly in length , and may be for a fixed amount , a variable amount based on actual costs incurred , capped at a certain limit , or for a combination of these elements . activity levels are monitored through close communication with the cro 's and other clinical trial vendors , including detailed invoice and task completion review , analysis of expenses against budgeted amounts , analysis of work performed against approved contract budgets and payment schedules , and recognition of any changes in scope of the services to be performed . certain cro and significant clinical trial vendors provide an estimate of costs incurred but not invoiced at the end of each quarter for each individual trial . the estimates are reviewed and discussed with the cro or vendor as necessary , and are included in r & d expenses for the related period . for clinical study sites , which are paid periodically on a per-subject basis to the institutions performing the clinical study , we accrue an estimated amount based on subject screening and enrollment in each quarter . all estimates may differ significantly from the actual amount subsequently invoiced , which may occur several months after the related services were performed . in the normal course of business we contract with third parties to perform various r & d activities in the on-going development of our product candidates . the financial terms of these agreements are subject to negotiation and vary from contract to contract and may result in uneven payment flows . payments under the contracts depend on factors such as the achievement of certain events , the successful enrollment of patients , and the completion of portions of the clinical trial or similar conditions . the objective of our accrual policy is to match the recording of expenses in our financial statements to the actual services received and efforts expended . as such , expense accruals related to clinical trials and other r & d activities are recognized based on our estimate of the degree of completion of the event or events specified in the specific contract . no adjustments for material changes in estimates have been recognized in any period presented . 34 stock-based compensation our results include non-cash compensation expense as a result of the issuance of stock , stock options and warrants . we have issued stock options to employees , directors , consultants and scientific advisory board members under our amended and restated 2005 stock option plan . we expense the fair value of stock-based compensation over the vesting period . when more precise pricing data is unavailable , we determine the fair value of stock options using the black-scholes option-pricing model . this valuation model requires us to make assumptions and judgments about the variables used in the calculation . these variables and assumptions include the weighted-average period of time that the options granted are expected to be outstanding , the volatility of our common stock , the risk-free interest rate and the estimated rate of forfeitures of unvested stock options . stock options or other equity instruments to non-employees ( including consultants and all members of the company 's scientific advisory
| liquidity and capital resources the following table summarizes our liquidity and capital resources as of and for each of the last two fiscal years , and is intended to supplement the more detailed discussion that follows . the amounts stated are expressed in thousands . replace_table_token_2_th replace_table_token_3_th 30 our total cash resources as of december 31 , 2012 were $ 0.05 million , compared to $ 1.0 million as of december 31 , 2011. as of december 31 , 2012 , we had approximately $ 0.4 million in liabilities , of which , approximately $ 0.1 relates to the non-cash warrant liability , and $ 0.2 million in net working capital deficit . we incurred a net loss of $ 1.9 million and had negative cash flow from operating activities of $ 2.2 million for the year ended december 31 , 2012. since august 1 , 2005 ( inception ) through december 31 , 2012 , we have incurred an aggregate net loss of approximately $ 46.7 million , while negative cash flow from operating activities has amounted to $ 34.9 million . to the extent we obtain sufficient capital and are able to continue developing our product candidates , we expect to continue to incur substantial and increasing losses , which will continue to generate negative net cash flows from operating activities as we expand our technology portfolio and engage in further research and development activities , particularly the conducting of pre-clinical studies and clinical trials . we need substantial additional capital in order to continue the development of cenderitide , for which the next step is a phase 2 trial . we estimate that this phase 2 trial will cost approximately $ 15 million to $ 20 million and take approximately 30 months to complete .
| 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 following table summarizes our liquidity and capital resources as of and for each of the last two fiscal years , and is intended to supplement the more detailed discussion that follows . the amounts stated are expressed in thousands . replace_table_token_2_th replace_table_token_3_th 30 our total cash resources as of december 31 , 2012 were $ 0.05 million , compared to $ 1.0 million as of december 31 , 2011. as of december 31 , 2012 , we had approximately $ 0.4 million in liabilities , of which , approximately $ 0.1 relates to the non-cash warrant liability , and $ 0.2 million in net working capital deficit . we incurred a net loss of $ 1.9 million and had negative cash flow from operating activities of $ 2.2 million for the year ended december 31 , 2012. since august 1 , 2005 ( inception ) through december 31 , 2012 , we have incurred an aggregate net loss of approximately $ 46.7 million , while negative cash flow from operating activities has amounted to $ 34.9 million . to the extent we obtain sufficient capital and are able to continue developing our product candidates , we expect to continue to incur substantial and increasing losses , which will continue to generate negative net cash flows from operating activities as we expand our technology portfolio and engage in further research and development activities , particularly the conducting of pre-clinical studies and clinical trials . we need substantial additional capital in order to continue the development of cenderitide , for which the next step is a phase 2 trial . we estimate that this phase 2 trial will cost approximately $ 15 million to $ 20 million and take approximately 30 months to complete .
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Suspicious Activity Report : to the extent we proceed with the clinical development of cenderitide and if we further develop cu-np , our second product candidate , our research and development expenses will continue increasing . accordingly , our success depends not only on the safety and efficacy of our product candidates , but also on our ability to finance the development of the products . our major sources of working capital have been proceeds from public and private sales of our equity and debt securities . research and development , or r & d , expenses consist primarily of salaries and related personnel costs , fees paid to consultants and outside service providers for pre-clinical , clinical , and manufacturing development , legal expenses resulting from intellectual property prosecution , contractual review , and other expenses relating to the design , development , testing , and enhancement of our product candidates . we expense our r & d costs as they are incurred . general and administrative , or g & a , expenses consist primarily of salaries and related expenses for executive , finance and other administrative personnel , personnel recruiting fees , accounting , legal and other professional fees , business development expenses , rent , business insurance and other corporate expenses . our results include non-cash compensation expense as a result of the issuance of stock , stock options , and warrants . we expense the fair value of stock options and warrants over the vesting period . when more precise pricing data is unavailable , we determine the fair value of stock options using the black-scholes option-pricing model . the terms and vesting schedules for share-based awards vary by type of grant and the employment status of the grantee . generally , the awards vest based upon time-based or performance-based conditions . performance-based conditions generally include the attainment of goals related to our financial performance and product development . stock-based compensation expense is included in the respective categories of expense in the statements of operations . we expect to record additional non-cash compensation expense in the future , which may be significant . results of operations general and administrative expenses . g & a expenses for the years ended december 31 , 2012 and 2011 were approximately $ 1.6 million and $ 2.1 million , respectively . this decrease of approximately $ 0.5 million compared to the same period of 2011 is primarily attributable to a decrease of approximately $ 0.2 million in compensation costs , primarily from reduced stock compensation expense . additionally , there was a reduction in professional fees of approximately $ 0.2 compared to the same period of 2011 from requiring less services from outside consultants due to limited operations . additionally , there was an approximately $ 0.1 million savings compared to the same period in 2011 as a result of no longer being listed on the nasdaq as of may 2011. research and development expenses . r & d expenses for the years ended december 31 , 2012 and 2011 were approximately $ 1.0 million and $ 4.1 million , respectively . this decrease of approximately $ 3.1 million over the same period of 2011 is primarily due to the fact that during 2011 , the company was actively conducting clinical development activities of cenderitide and in 2012 , the company was winding down clinical activities and had almost no development activities for most of the year . this resulted in a decrease of approximately $ 2.4 million in development costs . additionally , we had a reduction of approximately $ 0.5 million in compensation costs , including stock compensation , compared to 2011 due to having no r & d employees for approximately half of 2012 , compared to one employee during all of 2011. there was also a reduction in r & d professional fees of approximately $ 0.2 million compared to 2011 as a result of the decrease in r & d activities . cenderitide ( formerly cd-np ) . all development of cenderitide is on hold pending the results of our efforts to pursue strategic alternatives for the company . 29 cu-np . since acquiring our rights to cu-np in june 2008 , we have incurred a total of approximately $ 0.6 million through december 31 , 2011. all development of cu-np is on hold pending the results of our efforts to pursue strategic alternatives for the company . our expenditures on current and future clinical development programs , particularly our cenderitide program , are expected to be substantial , particularly in relation to our available capital resources , and to increase . however , these planned expenditures are subject to many uncertainties , including the results of clinical trials and whether we develop any of our drug candidates with a partner or independently . as a result of such uncertainties , we can not predict with any significant degree of certainty the duration and completion costs of our research and development projects or whether , when and to what extent we will generate revenues from the commercialization and sale of any of our product candidates . the duration and cost of clinical trials may vary significantly over the life of a project as a result of unanticipated events arising during clinical development and a variety of factors , including : · the number of trials and studies in a clinical program ; · the number of patients who participate in the trials ; · the number of sites included in the trials ; · the rates of patient recruitment and enrollment ; · the duration of patient treatment and follow-up ; · the costs of manufacturing our drug candidates ; and · the costs , requirements , timing of , and the ability to secure regulatory approvals . collaboration income . story_separator_special_tag we may terminate the agreement without cause upon 90 days ' written notice . as of the end of 2012 , we were not in compliance with several terms of the cu-np license agreement , including , but not limited to , provisions requiring us to pay mayo an annual maintenance fee and actively pursue the development of cu-np . we are in discussions with the mayo foundation to amend and the agreement , but we can not guarantee that we will be able to reach an agreement with mayo that allows us to maintain our rights to cenderitide . see “ risk factors – risks relating to our business – we are not in compliance with various provisions of our license agreements with the mayo foundation . if we are unable to renegotiate these agreements , then we will lose our rights to cenderitide and cu-np . ” off -balance sheet arrangements there were no off-balance sheet arrangements as of december 31 , 2012. critical accounting policies and estimates our financial statements are prepared in accordance with generally accepted accounting principles . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , expenses and related disclosures . we evaluate our estimates and assumptions on an ongoing basis , including research and development and clinical trial accruals , and stock-based compensation estimates . our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances . our actual results could differ from these estimates . we believe the following critical accounting policies reflect the more significant judgments and estimates used in the preparation of our financial statements and accompanying notes . research and development expenses and accruals r & d expenses consist primarily of salaries and related personnel costs , fees paid to consultants and outside service providers for pre-clinical , clinical , and manufacturing development , legal expenses resulting from intellectual property prosecution , contractual review , and other expenses relating to the design , development , testing , and enhancement of our product candidates . except for capitalized patent expenses , r & d costs are expensed as incurred . amounts due under such arrangements may be either fixed fee or fee for service , and may include upfront payments , monthly payments , and payments upon the completion of milestones or receipt of deliverables . our cost accruals for clinical trials and other r & d activities are based on estimates of the services received and efforts expended pursuant to contracts with numerous clinical trial centers and cros , clinical study sites , laboratories , consultants , or other clinical trial vendors that perform the activities . related contracts vary significantly in length , and may be for a fixed amount , a variable amount based on actual costs incurred , capped at a certain limit , or for a combination of these elements . activity levels are monitored through close communication with the cro 's and other clinical trial vendors , including detailed invoice and task completion review , analysis of expenses against budgeted amounts , analysis of work performed against approved contract budgets and payment schedules , and recognition of any changes in scope of the services to be performed . certain cro and significant clinical trial vendors provide an estimate of costs incurred but not invoiced at the end of each quarter for each individual trial . the estimates are reviewed and discussed with the cro or vendor as necessary , and are included in r & d expenses for the related period . for clinical study sites , which are paid periodically on a per-subject basis to the institutions performing the clinical study , we accrue an estimated amount based on subject screening and enrollment in each quarter . all estimates may differ significantly from the actual amount subsequently invoiced , which may occur several months after the related services were performed . in the normal course of business we contract with third parties to perform various r & d activities in the on-going development of our product candidates . the financial terms of these agreements are subject to negotiation and vary from contract to contract and may result in uneven payment flows . payments under the contracts depend on factors such as the achievement of certain events , the successful enrollment of patients , and the completion of portions of the clinical trial or similar conditions . the objective of our accrual policy is to match the recording of expenses in our financial statements to the actual services received and efforts expended . as such , expense accruals related to clinical trials and other r & d activities are recognized based on our estimate of the degree of completion of the event or events specified in the specific contract . no adjustments for material changes in estimates have been recognized in any period presented . 34 stock-based compensation our results include non-cash compensation expense as a result of the issuance of stock , stock options and warrants . we have issued stock options to employees , directors , consultants and scientific advisory board members under our amended and restated 2005 stock option plan . we expense the fair value of stock-based compensation over the vesting period . when more precise pricing data is unavailable , we determine the fair value of stock options using the black-scholes option-pricing model . this valuation model requires us to make assumptions and judgments about the variables used in the calculation . these variables and assumptions include the weighted-average period of time that the options granted are expected to be outstanding , the volatility of our common stock , the risk-free interest rate and the estimated rate of forfeitures of unvested stock options . stock options or other equity instruments to non-employees ( including consultants and all members of the company 's scientific advisory
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2,670 | however , actual results may differ from these estimates and assumptions . if our judgment or interpretation of the facts and circumstances relating to the various transactions had been different , it is possible that different accounting policies would have been applied , thus resulting in a different presentation of the financial statements . additionally , other companies may utilize different assumptions or estimates that may impact comparability of our results of operations to those of companies in similar businesses . we believe the following critical accounting policies govern the significant judgments and estimates used in the preparation of our financial statements , which should be read in conjunction with the more complete discussion of our accounting policies and procedures included in “ note 2 – summary of significant accounting policies ” to our consolidated financial statements . 33 goodwill impairment we evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate the carrying value may not be recoverable . we adopted asu 2017-04 , intangibles – goodwill and others ( topic 350 ) : simplifying the test for goodwill impairment ( “ asu 2017-04 ” ) , which simplifies the measurement of goodwill impairment by eliminating step 2 from the goodwill impairment test ( comparing the implied fair value of goodwill with the carrying amount of goodwill ) . the risks and uncertainties involved in applying the principles related to goodwill impairment include , but are not limited to , the following : we estimate the fair value using discounted cash flows and relevant competitor multiples . we monitor factors that may impact the fair value including market comparable company multiples , interest rates and global economic conditions . we use a combined income and market approach in evaluations for potential impairment , which requires management to make key assumptions related to revenue growth rate , cash flow assumptions , discount rate and selection of comparable companies . see “ note 9 – fair value measures ” for discussion regarding our sensitivity analysis performed around these assumptions . real estate investment impairment we invest in real estate assets and subsequently monitor those investments quarterly for impairment , including the review of real estate properties subject to direct financing leases . additionally , we record depreciation and amortization related to our investments . the risks and uncertainties involved in applying the principles related to real estate investments include , but are not limited to , the following : the estimated useful lives of our depreciable assets affect the amount of depreciation and amortization recognized on our investments . the review of impairment indicators and subsequent determination of the undiscounted future cash flows could require us to reduce the value of assets and recognize an impairment loss . the fair value of held for sale assets is estimated by management . this estimated value could result in a reduction of the carrying value of the asset . changes in assumptions based on actual results may have a material impact on the company 's financial results . loans held for investment impairment we evaluate loans held for investment on a quarterly basis . as a first step in the notes receivable impairment process , we must determine , based on current information and events , if it is probable that we will be unable to collect the amounts due in accordance with the loan agreement . the risks and uncertainties involved in applying the principles related to notes receivable include , but are not limited to , the following : evaluating the financial condition and other current obligations of the borrower involves judgment in assessing their liquidity and financial stability . allocation of purchase price of real estate assets in connection with our acquisition of properties , we allocate the purchase price to the tangible and intangible assets and liabilities acquired based on their respective estimated fair values . tangible assets consist of land , buildings , fixtures and tenant improvements . intangible assets consist of above- and below- market lease values and the value of in-place leases . our purchase price allocations are developed utilizing third-party appraisal reports , industry standards and management experience . the risks and uncertainties involved in applying the principles related to purchase price allocations include , but are not limited to , the following : the value allocated to land as opposed to buildings , fixtures and tenant improvements affects the amount of depreciation expense we record . if more value is attributed to land , depreciation expense is lower than if more value is attributed to buildings , fixtures and tenant improvements ; intangible lease assets and liabilities can be significantly affected by estimates , including market rent , lease term including renewal options at rental rates below estimated market rental rates , carrying costs of the property during a hypothetical expected lease-up period , and current market conditions and costs , including tenant improvement allowances and rent concessions ; and we determine whether any financing assumed is above- or below- market based upon comparison to similar financing terms for similar investment properties . 34 income taxes as a reit , the general partner generally is not subject to federal income tax on taxable income that it distributes to its shareholders as long as it distributes at least 90 % of its annual taxable income ( computed without regard to the deduction for dividends paid and excluding net capital gains ) , with the exception of its trs entities . however , the general partner , including its trs entities , and the operating partnership are still subject to certain state and local income and franchise taxes in the various jurisdictions in which they operate . we provide for income taxes in accordance with current authoritative accounting and tax guidance . the tax provision or benefit related to significant or unusual items is recognized in the quarter in which those items occur . story_separator_special_tag during the year ended december 31 , 2015 , the company recorded a gain on forgiveness of debt of $ 4.8 million related to the foreclosure of one property . 42 other income , net 2017 vs 2016 – the increase of $ 1.0 million during the year ended december 31 , 2017 as compared to the same period in 2016 was primarily due to post-closing adjustments , of $ 1.6 million , recorded in accordance with the purchase and sale agreement during the year ended december 31 , 2016 related to a multi-tenant asset portfolio sale completed in 2014 , offset by a decrease in interest income related to the company 's investment securities and mortgage notes receivable of $ 0.6 million . 2016 vs 2015 – the decrease of $ 4.1 million during the year ended december 31 , 2016 as compared to the same period in 2015 was primarily a result of a decrease in disposition fees earned from 1031 real estate programs of $ 3.8 million . reserve for loan loss the reserve for loan loss of $ 15.3 million for the year ended december 31 , 2015 related to an unsecured note from rcs capital corporation in connection with the unconsummated sale of cole capital . during the three months ended december 31 , 2015 , the company assessed the collectability of the note , determined it was unlikely to be repaid and recorded the reserve equal to the carrying value of the note . equity in income and gain on disposition of unconsolidated entities 2017 vs 2016 – the decrease of $ 7.0 million during the year ended december 31 , 2017 as compared to the same period in 2016 was primarily the result of a gain of $ 10.2 million recognized on the disposition of one unconsolidated joint venture owning one property in 2016 , with no comparable gain in 2017 . 2016 vs 2015 – equity in income ( loss ) and gain on disposition of unconsolidated entities increased $ 0.7 million during the year ended december 31 , 2016 as compared to 2015 . during the year ended december 31 , 2016 , the company recorded a gain of $ 10.2 million related to the disposition of one property , comprising 343 million square feet of office space , owned by an unconsolidated joint venture . during the year ended december 31 , 2015 , the company recorded a gain of $ 6.7 million related to the disposition of its interest in one consolidated joint venture , whose only assets consisted of investments in three unconsolidated joint ventures that owned three properties , comprising 752 million square feet of retail space . during the years ended december 31 , 2016 and 2015 , the company recognized $ 0.9 million and $ 2.3 million of net income , respectively , from the unconsolidated joint ventures . the company recorded equity in loss related to its investments in the cole reits of $ 1.3 million during the year ended december 31 , 2016 , as compared to equity in income of $ 0.1 million during the year ended december 31 , 2015 . gain ( loss ) on derivative instruments , net 2017 vs 2016 – the $ 4.2 million increase during the year ended december 31 , 2017 as compared to the same period in 2016 , was primarily a result of the termination of six interest rate swaps in connection with the early repayment of the outstanding borrowings under our credit facility term loan , as discussed in note 11 – derivatives and hedging activities to our consolidated financial statements , which resulted in a gain of $ 1.1 million as compared to a loss of $ 3.3 million in 2016 . 2016 vs 2015 – the decrease during the year ended december 31 , 2016 , is due to the termination of two interest rate swaps in connection with the early repayment of a portion of the credit facility term loan , which resulted in a loss of $ 3.3 million , offset by an increase in the fair value of the company 's interest rate swaps . gain ( loss ) on disposition of real estate and real estate assets held for sale , net 2017 vs 2016 – the increase in gain on disposition of real estate and held for sale assets , net of $ 16.0 million during the year ended december 31 , 2017 as compared to the same period in 2016 , was due to the company 's disposition of 131 properties , excluding six properties transferred to the lender in either a deed-in-lieu of foreclosure or foreclosure sale transaction , for an aggregate sales price of $ 594.9 million which resulted in a gain of $ 64.7 million during the year ended december 31 , 2017 , as compared to the disposal of 301 properties for an aggregate sales price of $ 1.1 billion during the same period in 2016 for a gain of $ 50.6 million , which included $ 28.8 million of goodwill allocation related to the sales . during the year ended december 31 , 2017 , the company also recognized a loss of $ 3.1 million related to assets classified as held for sale , as compared to a loss of $ 5.1 million during the same period in 2016 . 2016 vs 2015 – during the year ended december 31 , 2016 , the change of $ 117.8 million from a net loss on dispositions of real estate to a net gain was due to the company 's disposition of 301 properties for an aggregate sales price of $ 1.1 billion , which resulted in an aggregate gain of $ 50.6 million , as compared to the disposal of 228 properties for an aggregate sales price of $ 1.4 billion during the same period in 2015 for a loss of $ 69.1 million . during the year ended december
| other debt during the fourth quarter of 2017 , the company repaid the remaining outstanding principal balance on the secured term loan from kbc bank , n.v. ( the “ kbc loan ” ) . dividends on november 7 , 2017 , the company 's board of directors declared a quarterly cash dividend of $ 0.1375 per share of common stock ( equaling an annualized dividend rate of $ 0.55 per share ) for the fourth quarter of 2017 to stockholders of record as of december 29 , 2017 , which was paid on january 16 , 2018 . an equivalent distribution by the operating partnership is applicable per op unit . 49 our series f preferred stock , as discussed in “ note 15 – equity ” to our consolidated financial statements , will pay cumulative cash dividends at the rate of 6.70 % per annum on their liquidation preference of $ 25.00 per share ( equivalent to $ 1.675 per share on an annual basis ) . as of december 31 , 2017 , there were approximately 42.8 million shares of series f preferred stock ( and approximately 42.8 million corresponding series f preferred units that were issued to the general partner ) and 86,874 limited partner series f preferred units that were issued and outstanding . contractual obligations the following is a summary of our contractual obligations as of december 31 , 2017 ( in thousands ) : replace_table_token_12_th ( 1 ) for the loan in maturity default , as discussed in note 10 – debt , the payment obligations for future periods are based on an estimated extension of maturity to january 1 , 2018 . ( 2 ) as of december 31 , 2017 , we had $ 78.9 million of variable rate mortgage notes effectively fixed through the use of interest rate swap agreements .
| 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.
```other debt during the fourth quarter of 2017 , the company repaid the remaining outstanding principal balance on the secured term loan from kbc bank , n.v. ( the “ kbc loan ” ) . dividends on november 7 , 2017 , the company 's board of directors declared a quarterly cash dividend of $ 0.1375 per share of common stock ( equaling an annualized dividend rate of $ 0.55 per share ) for the fourth quarter of 2017 to stockholders of record as of december 29 , 2017 , which was paid on january 16 , 2018 . an equivalent distribution by the operating partnership is applicable per op unit . 49 our series f preferred stock , as discussed in “ note 15 – equity ” to our consolidated financial statements , will pay cumulative cash dividends at the rate of 6.70 % per annum on their liquidation preference of $ 25.00 per share ( equivalent to $ 1.675 per share on an annual basis ) . as of december 31 , 2017 , there were approximately 42.8 million shares of series f preferred stock ( and approximately 42.8 million corresponding series f preferred units that were issued to the general partner ) and 86,874 limited partner series f preferred units that were issued and outstanding . contractual obligations the following is a summary of our contractual obligations as of december 31 , 2017 ( in thousands ) : replace_table_token_12_th ( 1 ) for the loan in maturity default , as discussed in note 10 – debt , the payment obligations for future periods are based on an estimated extension of maturity to january 1 , 2018 . ( 2 ) as of december 31 , 2017 , we had $ 78.9 million of variable rate mortgage notes effectively fixed through the use of interest rate swap agreements .
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Suspicious Activity Report : however , actual results may differ from these estimates and assumptions . if our judgment or interpretation of the facts and circumstances relating to the various transactions had been different , it is possible that different accounting policies would have been applied , thus resulting in a different presentation of the financial statements . additionally , other companies may utilize different assumptions or estimates that may impact comparability of our results of operations to those of companies in similar businesses . we believe the following critical accounting policies govern the significant judgments and estimates used in the preparation of our financial statements , which should be read in conjunction with the more complete discussion of our accounting policies and procedures included in “ note 2 – summary of significant accounting policies ” to our consolidated financial statements . 33 goodwill impairment we evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate the carrying value may not be recoverable . we adopted asu 2017-04 , intangibles – goodwill and others ( topic 350 ) : simplifying the test for goodwill impairment ( “ asu 2017-04 ” ) , which simplifies the measurement of goodwill impairment by eliminating step 2 from the goodwill impairment test ( comparing the implied fair value of goodwill with the carrying amount of goodwill ) . the risks and uncertainties involved in applying the principles related to goodwill impairment include , but are not limited to , the following : we estimate the fair value using discounted cash flows and relevant competitor multiples . we monitor factors that may impact the fair value including market comparable company multiples , interest rates and global economic conditions . we use a combined income and market approach in evaluations for potential impairment , which requires management to make key assumptions related to revenue growth rate , cash flow assumptions , discount rate and selection of comparable companies . see “ note 9 – fair value measures ” for discussion regarding our sensitivity analysis performed around these assumptions . real estate investment impairment we invest in real estate assets and subsequently monitor those investments quarterly for impairment , including the review of real estate properties subject to direct financing leases . additionally , we record depreciation and amortization related to our investments . the risks and uncertainties involved in applying the principles related to real estate investments include , but are not limited to , the following : the estimated useful lives of our depreciable assets affect the amount of depreciation and amortization recognized on our investments . the review of impairment indicators and subsequent determination of the undiscounted future cash flows could require us to reduce the value of assets and recognize an impairment loss . the fair value of held for sale assets is estimated by management . this estimated value could result in a reduction of the carrying value of the asset . changes in assumptions based on actual results may have a material impact on the company 's financial results . loans held for investment impairment we evaluate loans held for investment on a quarterly basis . as a first step in the notes receivable impairment process , we must determine , based on current information and events , if it is probable that we will be unable to collect the amounts due in accordance with the loan agreement . the risks and uncertainties involved in applying the principles related to notes receivable include , but are not limited to , the following : evaluating the financial condition and other current obligations of the borrower involves judgment in assessing their liquidity and financial stability . allocation of purchase price of real estate assets in connection with our acquisition of properties , we allocate the purchase price to the tangible and intangible assets and liabilities acquired based on their respective estimated fair values . tangible assets consist of land , buildings , fixtures and tenant improvements . intangible assets consist of above- and below- market lease values and the value of in-place leases . our purchase price allocations are developed utilizing third-party appraisal reports , industry standards and management experience . the risks and uncertainties involved in applying the principles related to purchase price allocations include , but are not limited to , the following : the value allocated to land as opposed to buildings , fixtures and tenant improvements affects the amount of depreciation expense we record . if more value is attributed to land , depreciation expense is lower than if more value is attributed to buildings , fixtures and tenant improvements ; intangible lease assets and liabilities can be significantly affected by estimates , including market rent , lease term including renewal options at rental rates below estimated market rental rates , carrying costs of the property during a hypothetical expected lease-up period , and current market conditions and costs , including tenant improvement allowances and rent concessions ; and we determine whether any financing assumed is above- or below- market based upon comparison to similar financing terms for similar investment properties . 34 income taxes as a reit , the general partner generally is not subject to federal income tax on taxable income that it distributes to its shareholders as long as it distributes at least 90 % of its annual taxable income ( computed without regard to the deduction for dividends paid and excluding net capital gains ) , with the exception of its trs entities . however , the general partner , including its trs entities , and the operating partnership are still subject to certain state and local income and franchise taxes in the various jurisdictions in which they operate . we provide for income taxes in accordance with current authoritative accounting and tax guidance . the tax provision or benefit related to significant or unusual items is recognized in the quarter in which those items occur . story_separator_special_tag during the year ended december 31 , 2015 , the company recorded a gain on forgiveness of debt of $ 4.8 million related to the foreclosure of one property . 42 other income , net 2017 vs 2016 – the increase of $ 1.0 million during the year ended december 31 , 2017 as compared to the same period in 2016 was primarily due to post-closing adjustments , of $ 1.6 million , recorded in accordance with the purchase and sale agreement during the year ended december 31 , 2016 related to a multi-tenant asset portfolio sale completed in 2014 , offset by a decrease in interest income related to the company 's investment securities and mortgage notes receivable of $ 0.6 million . 2016 vs 2015 – the decrease of $ 4.1 million during the year ended december 31 , 2016 as compared to the same period in 2015 was primarily a result of a decrease in disposition fees earned from 1031 real estate programs of $ 3.8 million . reserve for loan loss the reserve for loan loss of $ 15.3 million for the year ended december 31 , 2015 related to an unsecured note from rcs capital corporation in connection with the unconsummated sale of cole capital . during the three months ended december 31 , 2015 , the company assessed the collectability of the note , determined it was unlikely to be repaid and recorded the reserve equal to the carrying value of the note . equity in income and gain on disposition of unconsolidated entities 2017 vs 2016 – the decrease of $ 7.0 million during the year ended december 31 , 2017 as compared to the same period in 2016 was primarily the result of a gain of $ 10.2 million recognized on the disposition of one unconsolidated joint venture owning one property in 2016 , with no comparable gain in 2017 . 2016 vs 2015 – equity in income ( loss ) and gain on disposition of unconsolidated entities increased $ 0.7 million during the year ended december 31 , 2016 as compared to 2015 . during the year ended december 31 , 2016 , the company recorded a gain of $ 10.2 million related to the disposition of one property , comprising 343 million square feet of office space , owned by an unconsolidated joint venture . during the year ended december 31 , 2015 , the company recorded a gain of $ 6.7 million related to the disposition of its interest in one consolidated joint venture , whose only assets consisted of investments in three unconsolidated joint ventures that owned three properties , comprising 752 million square feet of retail space . during the years ended december 31 , 2016 and 2015 , the company recognized $ 0.9 million and $ 2.3 million of net income , respectively , from the unconsolidated joint ventures . the company recorded equity in loss related to its investments in the cole reits of $ 1.3 million during the year ended december 31 , 2016 , as compared to equity in income of $ 0.1 million during the year ended december 31 , 2015 . gain ( loss ) on derivative instruments , net 2017 vs 2016 – the $ 4.2 million increase during the year ended december 31 , 2017 as compared to the same period in 2016 , was primarily a result of the termination of six interest rate swaps in connection with the early repayment of the outstanding borrowings under our credit facility term loan , as discussed in note 11 – derivatives and hedging activities to our consolidated financial statements , which resulted in a gain of $ 1.1 million as compared to a loss of $ 3.3 million in 2016 . 2016 vs 2015 – the decrease during the year ended december 31 , 2016 , is due to the termination of two interest rate swaps in connection with the early repayment of a portion of the credit facility term loan , which resulted in a loss of $ 3.3 million , offset by an increase in the fair value of the company 's interest rate swaps . gain ( loss ) on disposition of real estate and real estate assets held for sale , net 2017 vs 2016 – the increase in gain on disposition of real estate and held for sale assets , net of $ 16.0 million during the year ended december 31 , 2017 as compared to the same period in 2016 , was due to the company 's disposition of 131 properties , excluding six properties transferred to the lender in either a deed-in-lieu of foreclosure or foreclosure sale transaction , for an aggregate sales price of $ 594.9 million which resulted in a gain of $ 64.7 million during the year ended december 31 , 2017 , as compared to the disposal of 301 properties for an aggregate sales price of $ 1.1 billion during the same period in 2016 for a gain of $ 50.6 million , which included $ 28.8 million of goodwill allocation related to the sales . during the year ended december 31 , 2017 , the company also recognized a loss of $ 3.1 million related to assets classified as held for sale , as compared to a loss of $ 5.1 million during the same period in 2016 . 2016 vs 2015 – during the year ended december 31 , 2016 , the change of $ 117.8 million from a net loss on dispositions of real estate to a net gain was due to the company 's disposition of 301 properties for an aggregate sales price of $ 1.1 billion , which resulted in an aggregate gain of $ 50.6 million , as compared to the disposal of 228 properties for an aggregate sales price of $ 1.4 billion during the same period in 2015 for a loss of $ 69.1 million . during the year ended december
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2,671 | the following table summarizes our revenues by product type for the years ended december 31 , 2018 , 2017 and 2016 : replace_table_token_7_th ev parts during the year ended december 31 , 2018 , our revenue from the sale of ev parts was $ 99,099,312 , representing an increase of $ 1,743,484 or 1.8 % from $ 97,355,828 for the year ended december 31 , 2017 and a decrease of $ 20,980,000 or 17.5 % from $ 120,079,312 for the year ended december 31 , 2016 , respectively . our revenue for the year ended december 31 , 2018 primarily consisted of the sales of battery packs , body parts , ev drive motors , ev controllers , air conditioning units and other auto parts for use in the ev products manufactured by the jv company , which accounted for 88.1 % of total sales . among total sales for the year ended december 31 , 2018 , approximately 75.6 % were related to the sale of battery packs . in compliance with the regulations of the chinese auto industry , we hold the necessary production licenses to manufacture the battery packs exclusively used in ev products manufactured by the jv company . besides the sale of battery packs , approximately 3.5 % of total sales were related to sales of ev controllers , approximately 2.7 % of the total sales were related to sales of air conditioning units , approximately 3.5 % of total sales were related to sales of ev drive motors and approximately 2.8 % of total sales were related to sales of body parts and other auto parts . during the year ended december 31 , 2018 and 2017 , our revenues from the sale of ev parts to the jv company accounted approximately 43.3 % and 90.4 % of our total net revenue for the year , respectively . the ev parts we sold to the jv company were used in manufacturing pure ev products by the jv company 's subsidiaries . ev products our revenue from the sale of ev products for the fiscal year 2018 and 2017 was $ 0 , representing a decrease of $ 3,718,291 or 100 % from $ 3,718,291 for the year ended december 31 , 2016. pursuant to the jv agreement , production of ev products was completely transferred to the jv company at the end of 2014 , but the company retained the right to sell ev products that remained in stock . the company completed sales of ev products in stock in 2016. the company currently primarily focuses on manufacturing and supplying ev parts to the jv company and third parties for the production of evs . off-road vehicles during the year ended december 31 , 2018 , our revenues from the sale of off-road vehicles including go-karts , all-terrain vehicles ( “ atvs ” ) , and others , were $ 13,339,516 , representing an increase of $ 7,889,723 or 144.8 % from $ 5,449,793 for the year ended december 31 , 2017 , and an increase of $ 7,645,106 or 134.3 % from $ 5,694,410 for the year ended december 31 , 2016. the increase in revenue of off-road vehicles was largely due to additional sales from sc autosports , which became our wholly-owned subsidiary in the u.s. in july 2018. our off-road vehicles business line accounted for approximately 11.9 % of our total net revenue for the year ended december 31 , 2018. of our off-road vehicle revenue , our atv business accounted for approximately 8.5 % of our total net revenue and our go-kart business accounted for approximately 3.3 % of our total net revenue . 28 the following table shows the breakdown of our net revenues : replace_table_token_8_th cost of goods sold cost of goods sold for the year ended december 31 , 2018 was $ 92,191,383 , representing an increase of $ 3,729,951 , or 4.2 % , from $ 88,461,432 for the year ended december 31 , 2017 and a decrease of $ 19,578,814 , or 17.5 % , from $ 111,770,197 for the year ended december 31 , 2016. the change was primarily due to the corresponding increase in sales from 2017 and decrease in sales from 2016. please refer to the gross profit section below for product margin analysis . gross profit our margins by product for the past three years are as set forth below : replace_table_token_9_th 29 gross profit for the year ended december 31 , 2018 was $ 20,247,445 , as compared to $ 14,344,189 for the year ended december 31 , 2017 , and $ 17,721,816 for the year ended december 31 , 2016 , representing an increase of $ 5,903,256 or 41.2 % from 2017 and an increase of $ 2,525,629 or 14.3 % from 2016. the increases were primarily attributable to the increased margin in 2018 as compared to that in 2017 and 2016. our gross margin for the year ended december 31 , 2018 , was 18.0 % , compared to 14.0 % for the year ended december 31 , 2017 , and 13.7 % for the year ended december 31 , 2016. the increase in our gross margin as compared to 2017 and 2016 was mainly due to the higher gross margin from off-road vehicle sales of sc autosports , a result of its effective procurement of inventories at discounted prices , as well as increased gross margin from sales of battery packs . story_separator_special_tag adjustments to reduce the cost of inventory to its net realizable value are made , if required , for estimated excess , obsolescence , or impaired balances . when inventories are sold , their carrying amount is charged to expense in the year in which the revenue is recognized . write-downs for declines in net realizable value or for losses of inventories are recognized as an expense in the year the impairment or loss occurs . there were $ 840,701 and $ 620,919 of decline in net realizable value of inventory for the years ended of december 31 , 2018 and 2017 , respectively , due to our provision for slow moving inventory . although we believe that there is little likelihood that actual results will differ materially from our current estimates , if customer demand for our products decreases significantly in the near future , or if the financial condition of our customers deteriorates in the near future , we could realize significant write downs for slow-moving inventories or uncollectible accounts receivable . policy affecting recognition of revenue our revenue recognition policy plays a key role in our consolidated financial statements . we recognize revenue when goods or services are transferred to customers in an amount that reflects the consideration which we expect to receive in exchange for those goods or services . in determining when and how revenue is recognized from contracts with customers , we perform the following five-step analysis : ( i ) identification of contract with customer; ( ii ) determination of performance obligations; ( iii ) measurement of the transaction price; ( iv ) allocation of the transaction price to the performance obligations; and ( v ) recognition of revenue when ( or as ) we satisfy each performance obligation . we generate revenue through the sale of ev products , ev parts and off-road vehicles and our revenue recognition policies for our ev products , ev parts and off-road vehicles are the same . the revenue is recognized at a point in time once we have determined that the customer has obtained control over the product . control is typically deemed to have been transferred to the customer when the performance obligation is fulfilled , usually at the time of delivery , at the net sales price ( transaction price ) . estimates of variable consideration , such as volume discounts and rebates , are determined , reviewed and revised periodically by management . revenue is recognized net of any taxes collected from customers , which are subsequently remitted to governmental authorities . shipping and handling costs for product shipments occur prior to the customer obtaining control of the goods are accounted for as fulfillment costs rather than separate performance obligations and recorded as sales and marketing expenses . policy affecting options , warrants and convertible notes our stock option cost is recorded in accordance with asc 718 and asc 505. the fair value of stock options is estimated using the black-scholes-merton model . our expected volatility assumption is based on the historical volatility of our stock . the expected life assumption is primarily based on the expiration date of the option . the risk-free interest rate for the expected term of the option is based on the u.s. treasury yield curve in effect at the time of grant . stock option expense recognition is based on awards expected to vest . there were no estimated forfeitures . asc standards require forfeitures to be estimated at the time of grant and revised in subsequent periods , if necessary , if actual forfeitures differ from those estimates . 37 our warrant costs are recorded in liabilities and equities , respectively , in accordance with asc 480 , asc 505 and asc 815. the fair value of a warrant , which is classified as a liability , is estimated using the binomial tree model and the lattice valuation model . our expected volatility assumption is based on the historical volatility of our common stock . the expected life assumption is primarily based on the expiration date of the warrant . the risk-free interest rate for the expected term of the warrant is based on the u.s. treasury yield curve in effect at the time of measurement . our warrants , which are freestanding derivatives classified as liabilities on the balance sheet , are measured at fair value on each reporting date , with decreases in fair value recognized in earnings and increases in fair values recognized in expenses . the fair value of equity-based warrants , which are not considered derivatives under asc 815 , is estimated using the black-scholes -merton model . our expected volatility assumption is based on the historical volatility of our common stock . the expected life assumption is primarily based on the expiration date of the warrant . the risk-free interest rate for the expected term of the option is based on the u.s. treasury yield curve in effect at the time of grant . in accordance with asc 815 , the conversion feature of the convertible notes is separated from the debt instrument and accounted for separately as a derivative instrument . on the date the convertible notes are issued , the conversion feature is recorded as a liability at its fair value , and future decreases in fair value are recognized in earnings while increases in fair values are recognized in expenses . we used the black-scholes -merton option-pricing model to obtain the fair value of the conversion feature . the expected volatility assumption is based on the historical volatility of our common stock . the expected life assumption is primarily based on the expiration date of the conversion features . the risk-free interest rate for the expected term of the conversion features is based on the u.s. treasury yield curve in effect at the time of measurement . warranty liability most of our non-ev products ( “ legacy products ” ) are exported out of china to
| cash flow for the year ended december 31 , 2018 , cash provided in operating activities was $ 13,587,621 , as compared to cash used in operating activities of $ 3,214,471 for the year ended december 31 , 2017 , and cash used in operating activities of $ 49,526,543 for the year ended december 31 , 2016. our operating cash inflows include cash received primarily from sales of our ev parts and off-road vehicles . these cash inflows are offset largely by cash paid primarily to our suppliers for production materials and parts used in our manufacturing process , operation expenses , employee compensation , and interest expenses on our financings . the major operating activities that provided cash for the year ended december 31 , 2018 were an increase of accounts payable of $ 137,390,139 , ( net of assignment of notes receivable from unrelated parties to suppliers to settle accounts payable of $ 31,347,383 , assignment of notes receivable from jv company and related parties to suppliers to settle accounts payable of $ 77,107,835 , settlement of accounts payable with notes payables of $ 31,039,932 , reversal of construction in progress and accounts payable of $ 8,029,198 , reclassification of overpaid accounts payable of $ 16,826 to advances to suppliers , and replacement of notes payables with accounts payable of $ 10,582,651 ) , and an increase of other payables and accrued liabilities of $ 60,736,669 ( net of assignment of notes receivable from unrelated parties to supplier to settle other payable of $ 28,636,652 and assignment of notes receivablefrom jv company and related parties to supplier to settle other payable of $ 34,242,433 ) .
| 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 for the year ended december 31 , 2018 , cash provided in operating activities was $ 13,587,621 , as compared to cash used in operating activities of $ 3,214,471 for the year ended december 31 , 2017 , and cash used in operating activities of $ 49,526,543 for the year ended december 31 , 2016. our operating cash inflows include cash received primarily from sales of our ev parts and off-road vehicles . these cash inflows are offset largely by cash paid primarily to our suppliers for production materials and parts used in our manufacturing process , operation expenses , employee compensation , and interest expenses on our financings . the major operating activities that provided cash for the year ended december 31 , 2018 were an increase of accounts payable of $ 137,390,139 , ( net of assignment of notes receivable from unrelated parties to suppliers to settle accounts payable of $ 31,347,383 , assignment of notes receivable from jv company and related parties to suppliers to settle accounts payable of $ 77,107,835 , settlement of accounts payable with notes payables of $ 31,039,932 , reversal of construction in progress and accounts payable of $ 8,029,198 , reclassification of overpaid accounts payable of $ 16,826 to advances to suppliers , and replacement of notes payables with accounts payable of $ 10,582,651 ) , and an increase of other payables and accrued liabilities of $ 60,736,669 ( net of assignment of notes receivable from unrelated parties to supplier to settle other payable of $ 28,636,652 and assignment of notes receivablefrom jv company and related parties to supplier to settle other payable of $ 34,242,433 ) .
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Suspicious Activity Report : the following table summarizes our revenues by product type for the years ended december 31 , 2018 , 2017 and 2016 : replace_table_token_7_th ev parts during the year ended december 31 , 2018 , our revenue from the sale of ev parts was $ 99,099,312 , representing an increase of $ 1,743,484 or 1.8 % from $ 97,355,828 for the year ended december 31 , 2017 and a decrease of $ 20,980,000 or 17.5 % from $ 120,079,312 for the year ended december 31 , 2016 , respectively . our revenue for the year ended december 31 , 2018 primarily consisted of the sales of battery packs , body parts , ev drive motors , ev controllers , air conditioning units and other auto parts for use in the ev products manufactured by the jv company , which accounted for 88.1 % of total sales . among total sales for the year ended december 31 , 2018 , approximately 75.6 % were related to the sale of battery packs . in compliance with the regulations of the chinese auto industry , we hold the necessary production licenses to manufacture the battery packs exclusively used in ev products manufactured by the jv company . besides the sale of battery packs , approximately 3.5 % of total sales were related to sales of ev controllers , approximately 2.7 % of the total sales were related to sales of air conditioning units , approximately 3.5 % of total sales were related to sales of ev drive motors and approximately 2.8 % of total sales were related to sales of body parts and other auto parts . during the year ended december 31 , 2018 and 2017 , our revenues from the sale of ev parts to the jv company accounted approximately 43.3 % and 90.4 % of our total net revenue for the year , respectively . the ev parts we sold to the jv company were used in manufacturing pure ev products by the jv company 's subsidiaries . ev products our revenue from the sale of ev products for the fiscal year 2018 and 2017 was $ 0 , representing a decrease of $ 3,718,291 or 100 % from $ 3,718,291 for the year ended december 31 , 2016. pursuant to the jv agreement , production of ev products was completely transferred to the jv company at the end of 2014 , but the company retained the right to sell ev products that remained in stock . the company completed sales of ev products in stock in 2016. the company currently primarily focuses on manufacturing and supplying ev parts to the jv company and third parties for the production of evs . off-road vehicles during the year ended december 31 , 2018 , our revenues from the sale of off-road vehicles including go-karts , all-terrain vehicles ( “ atvs ” ) , and others , were $ 13,339,516 , representing an increase of $ 7,889,723 or 144.8 % from $ 5,449,793 for the year ended december 31 , 2017 , and an increase of $ 7,645,106 or 134.3 % from $ 5,694,410 for the year ended december 31 , 2016. the increase in revenue of off-road vehicles was largely due to additional sales from sc autosports , which became our wholly-owned subsidiary in the u.s. in july 2018. our off-road vehicles business line accounted for approximately 11.9 % of our total net revenue for the year ended december 31 , 2018. of our off-road vehicle revenue , our atv business accounted for approximately 8.5 % of our total net revenue and our go-kart business accounted for approximately 3.3 % of our total net revenue . 28 the following table shows the breakdown of our net revenues : replace_table_token_8_th cost of goods sold cost of goods sold for the year ended december 31 , 2018 was $ 92,191,383 , representing an increase of $ 3,729,951 , or 4.2 % , from $ 88,461,432 for the year ended december 31 , 2017 and a decrease of $ 19,578,814 , or 17.5 % , from $ 111,770,197 for the year ended december 31 , 2016. the change was primarily due to the corresponding increase in sales from 2017 and decrease in sales from 2016. please refer to the gross profit section below for product margin analysis . gross profit our margins by product for the past three years are as set forth below : replace_table_token_9_th 29 gross profit for the year ended december 31 , 2018 was $ 20,247,445 , as compared to $ 14,344,189 for the year ended december 31 , 2017 , and $ 17,721,816 for the year ended december 31 , 2016 , representing an increase of $ 5,903,256 or 41.2 % from 2017 and an increase of $ 2,525,629 or 14.3 % from 2016. the increases were primarily attributable to the increased margin in 2018 as compared to that in 2017 and 2016. our gross margin for the year ended december 31 , 2018 , was 18.0 % , compared to 14.0 % for the year ended december 31 , 2017 , and 13.7 % for the year ended december 31 , 2016. the increase in our gross margin as compared to 2017 and 2016 was mainly due to the higher gross margin from off-road vehicle sales of sc autosports , a result of its effective procurement of inventories at discounted prices , as well as increased gross margin from sales of battery packs . story_separator_special_tag adjustments to reduce the cost of inventory to its net realizable value are made , if required , for estimated excess , obsolescence , or impaired balances . when inventories are sold , their carrying amount is charged to expense in the year in which the revenue is recognized . write-downs for declines in net realizable value or for losses of inventories are recognized as an expense in the year the impairment or loss occurs . there were $ 840,701 and $ 620,919 of decline in net realizable value of inventory for the years ended of december 31 , 2018 and 2017 , respectively , due to our provision for slow moving inventory . although we believe that there is little likelihood that actual results will differ materially from our current estimates , if customer demand for our products decreases significantly in the near future , or if the financial condition of our customers deteriorates in the near future , we could realize significant write downs for slow-moving inventories or uncollectible accounts receivable . policy affecting recognition of revenue our revenue recognition policy plays a key role in our consolidated financial statements . we recognize revenue when goods or services are transferred to customers in an amount that reflects the consideration which we expect to receive in exchange for those goods or services . in determining when and how revenue is recognized from contracts with customers , we perform the following five-step analysis : ( i ) identification of contract with customer; ( ii ) determination of performance obligations; ( iii ) measurement of the transaction price; ( iv ) allocation of the transaction price to the performance obligations; and ( v ) recognition of revenue when ( or as ) we satisfy each performance obligation . we generate revenue through the sale of ev products , ev parts and off-road vehicles and our revenue recognition policies for our ev products , ev parts and off-road vehicles are the same . the revenue is recognized at a point in time once we have determined that the customer has obtained control over the product . control is typically deemed to have been transferred to the customer when the performance obligation is fulfilled , usually at the time of delivery , at the net sales price ( transaction price ) . estimates of variable consideration , such as volume discounts and rebates , are determined , reviewed and revised periodically by management . revenue is recognized net of any taxes collected from customers , which are subsequently remitted to governmental authorities . shipping and handling costs for product shipments occur prior to the customer obtaining control of the goods are accounted for as fulfillment costs rather than separate performance obligations and recorded as sales and marketing expenses . policy affecting options , warrants and convertible notes our stock option cost is recorded in accordance with asc 718 and asc 505. the fair value of stock options is estimated using the black-scholes-merton model . our expected volatility assumption is based on the historical volatility of our stock . the expected life assumption is primarily based on the expiration date of the option . the risk-free interest rate for the expected term of the option is based on the u.s. treasury yield curve in effect at the time of grant . stock option expense recognition is based on awards expected to vest . there were no estimated forfeitures . asc standards require forfeitures to be estimated at the time of grant and revised in subsequent periods , if necessary , if actual forfeitures differ from those estimates . 37 our warrant costs are recorded in liabilities and equities , respectively , in accordance with asc 480 , asc 505 and asc 815. the fair value of a warrant , which is classified as a liability , is estimated using the binomial tree model and the lattice valuation model . our expected volatility assumption is based on the historical volatility of our common stock . the expected life assumption is primarily based on the expiration date of the warrant . the risk-free interest rate for the expected term of the warrant is based on the u.s. treasury yield curve in effect at the time of measurement . our warrants , which are freestanding derivatives classified as liabilities on the balance sheet , are measured at fair value on each reporting date , with decreases in fair value recognized in earnings and increases in fair values recognized in expenses . the fair value of equity-based warrants , which are not considered derivatives under asc 815 , is estimated using the black-scholes -merton model . our expected volatility assumption is based on the historical volatility of our common stock . the expected life assumption is primarily based on the expiration date of the warrant . the risk-free interest rate for the expected term of the option is based on the u.s. treasury yield curve in effect at the time of grant . in accordance with asc 815 , the conversion feature of the convertible notes is separated from the debt instrument and accounted for separately as a derivative instrument . on the date the convertible notes are issued , the conversion feature is recorded as a liability at its fair value , and future decreases in fair value are recognized in earnings while increases in fair values are recognized in expenses . we used the black-scholes -merton option-pricing model to obtain the fair value of the conversion feature . the expected volatility assumption is based on the historical volatility of our common stock . the expected life assumption is primarily based on the expiration date of the conversion features . the risk-free interest rate for the expected term of the conversion features is based on the u.s. treasury yield curve in effect at the time of measurement . warranty liability most of our non-ev products ( “ legacy products ” ) are exported out of china to
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2,672 | business developments below is a summary of our recent significant business developments : hemophilia b program on october 19 , 2017 , we announced that following multi-disciplinary meetings with the fda and the ema , we plan to expeditiously advance amt-061 , which combines an aav5 vector with the fix-padua mutant , into a pivotal study in mid 2018 for patients with severe and moderately severe hemophilia b. the study is expected to be an open-label , single-dose , multi-center , multi-national trial investigating the efficacy and safety of amt-061 administered to adult patients with severe or moderately severe hemophilia b. we have initiated production of multiple clinical-grade batches of amt-061 in our state-of-the-art lexington , ma manufacturing facility . material is being produced at commercial scale and utilizing current good manufacturing practices ( “ cgmp ” ) . we also announced on october 19 , 2017 , that we have acquired a patent family that broadly covers the fix- 53 padua variant and our use in gene therapy for the treatment of coagulopathies , including hemophilia b. this family includes a patent issued in the u.s. , as well as pending patent applications in europe and canada . huntington program ( amt-130 ) on april 26 , 2017 , we presented new preclinical data on amt-130 amt-130 comprises an aav5 vector carrying a dna cassette encoding an engineered microrna that silences the human huntingtin protein . at the 12th annual chdi huntington 's disease therapeutics conference in malta . data from the study showed widespread and distribution of the aav5 vector throughout the brain and extensive silencing of the human mutant huntingtin gene ( “ htt ” ) in mini pigs , which are among the largest huntington 's disease animal models available for testing . the study demonstrated that a single administration of aav5-mihtt resulted in significant reductions in htt mrna in all regions of the brain transduced by amt-130 , as well as in the cortex . consistent with the reduction in htt mrna , a clear dose-dependent reduction in mutant huntingtin protein levels in the brain was observed , with similar trends in the cerebral spinal fluid . in september 2017 , amt-130 received orphan drug designation from the u.s. food and drug administration . also in september 2017 , we initiated our glp toxicology study in non-human primates with amt-130 . we expect to complete this study and file an ind with the fda by the end of 2018. on october 18 , 2017 , we presented new preclinical data on amt-130 at the european society of gene and cell therapy ( “ esgct ” ) 25th anniversary congress in berlin , germany . data from the study demonstrated that following administration of amt-130 in huntington 's disease mouse models , significant improvements in both motor-coordination and survival were observed , as well as a dose-dependent , sustained reduction in huntingtin protein . manufacturing intellectual property in july 2017 , we were granted a patent from the united states patent and trademark office . the newly issued hermens '627 patent significantly expands our leading intellectual property portfolio related to large-scale , highly reproducible manufacturing of aav in insect cells . this patent , which broadens earlier claims granted in this patent family , is based on research focused on enhancing the genetic stability of the rep78/52 encoding sequences used to produce aav vectors in insect cells . the technology covered in the hermens '627 patent family is currently widely applied in insect cell-based aav manufacturing . aav 5 safety and immunogenicity data on may 12 , 2017 , we presented at the american society of gene & cell therapy 's ( “ asgct ” ) annual meeting in washington , d.c. , new preclinical data demonstrating successful and effective transduction of aav5 in non-human primates with pre-existing anti-aav5 neutralizing antibodies ( “ nabs ” ) . at all observed levels , pre-existing neutralizing antibodies for aav5 did not have a negative impact on the transduction effectiveness of the aav5 vector . this data suggests that patients with pre-existing anti-aav5 nabs may be able to be successfully treated with aav5 gene therapies , such as our product candidates in hemophilia b and in huntington 's disease . this development has the potential to significantly expand the applicability of aav5 gene therapies to nearly all patients , regardless of pre-existing antibodies . in addition , aav5 also appears to have a more favorable immunogenicity profile , with no immune responses detected across three clinical studies involving intravenous administration to 22 patients . we believe these factors make aav5 a highly differentiated , best-in-class vector with the potential to more effectively and safely deliver gene therapies to a greater group of patients in need of treatment . bms collaboration we have made continued progress on our research collaboration with bristol-myers squibb ( “ bms ” ) in congestive heart failure . on august 8 , 2017 , we announced that preliminary data from a study in large animals demonstrated both dna delivery and human s100a1 expression in the myocardium after treatments with product produced from our proprietary insect cell , baculovirus manufacturing process . based on this finding and others , we and bms have advanced the amt-126 , the gene therapy candidate for the treatment of congestive heart failure into further preclinical studies , including a preclinical heart function study in a diseased mini pig model in early 2018 . 54 chiesi collaboration on april 20 , 2017 , we announced that we would not pursue the renewal of the glybera marketing authorization in europe when it is expired on october 25 , 2017. we will be responsible for terminating the phase iv post-approval study . story_separator_special_tag 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 could result in reporting amounts that are too high or too low in any particular period . recent accounting pronouncements asu 2014-09 : asc 606 revenue from contracts with customers in july 2015 , the fasb issued asu 2015-14 , revenue from contracts with customers : deferral of the effective date ( “ asu 2015-14 ” ) , which deferred the effective date for asu 2014-09 , revenue from contracts with customers ( “ asu 2014-09 ” ) , by one year . asu 2014-09 will supersede the revenue recognition requirements in asc 605 , revenue recognition , and requires entities to recognize revenue in a way 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 to in exchange for those goods or services . in 2016 , the fasb issued asu 2016-08 , 2016-10 and 2016-12 , which provided further clarification on asu 2014-09. asu 2014-09 is effective for annual reporting periods beginning after december 15 , 2017 , including interim periods within that reporting period , which for the company is january 1 , 2018. asu 2014-09 provides for two implementation methods to us , ( i ) full retrospective application to all periods from january 1 , 2015 onwards for revenue recognized in relation to collaborations ; or ( ii ) application of the standard from january 1 , 2018 , onwards to active collaborations with an adjustment to retained earnings as of december 31 , 2017 , to include the cumulative adjustment to revenue recognized in prior periods in relation to active collaborations . we selected 59 the cumulative effect method to adopt the standard and will not use practical expedients at initial application . we have one active collaboration arrangement with bristol myers squibb ( “ bms ” ) . as a result of the cumulative effect method we will not apply the requirements of asu 2014-09 to any comparative periods presented and therefore the impact assessment applies to bms collaboration agreement only . we are finalizing our evaluation of the impact of adopting this standard . we have considered the new standard and preliminarily expect that the revenue recognition for the existing license will not be materially impacted based on the transfer of the services over the performance obligation . sales-based milestone payments and royalties will continue to be recognized in the statement of comprehensive income when earned . collaboration revenues , which are typically related to reimbursements from collaborators for our performance and costs incurred of research and development services under the respective agreements , are recognized in the statement of comprehensive income on the basis of labor hours valued at a contractually agreed rate and as costs incurred . asu 2016-02 : leases in february 2016 , the fasb issued asu 2016-02 , leases ( “ asu 2016-02 ” ) . the standard amends the existing accounting standards for lease accounting , including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting . asu 2016-02 is effective for annual periods in fiscal years beginning after december 15 , 2019. early adoption is permitted . the new leases standard requires a modified retrospective transition approach for all leases existing at , or entered into after , the date of initial application with an option to use certain transition relief . we expect asu 2016-02 to have a material impact on our consolidated financial statements , primarily from recognition of a right-of-use asset and lease liability in the consolidated balance sheets and a shift of cash outflows from operating activities to financing activities . see note 2 to our consolidate financial statements included in part iv , item 15 , exhibits and financial statement schedules of this annual report on form 10-k for a detailed description of recent accounting pronouncements applicable to our business . results of operations the following table presents a comparison of the twelve months ended december 31 , 2017 , 2016 and 2015. replace_table_token_8_th 60 revenue we recognize total collaboration revenues associated with development activities that are reimbursable by chiesi ( up to the july 2017 termination of the collaboration ) and bms under our respective collaboration agreements . we recognize license revenues associated with the amortization of the non‑refundable upfront payment , target designation fees and research and development milestone payments we have received or might receive from bms . the timing of these cash payments may differ from the recognition of revenue , as revenue is deferred and recognized over the duration of the performance period . we treat other revenue , such as sales milestone payments or service fees , as earned when receivable . our revenue for the years ended december 31 , 2017 , 2016 and 2015 was as follows : replace_table_token_9_th in association with the upfront payments and target designation fees received from bms in the second and third quarters of 2015 , we recognized $ 4.1 million in license revenue during the year ended december 31 , 2017 , compared to $ 3.9 million and $ 2.4 million for the years ended december 31 , 2016 and december 31 , 2015. following the termination of our collaboration with chiesi in july 2017 , we no longer recognize license revenue in association with the upfront fees received in 2013. we recognized $ 0.0 million license revenue during the year ended december 31 , 2017 , compared to $ 1.0 million and $ 1.0 million for the years ended december 31 , 2016 and december 31 , 2015. we recognized our license revenue during the year ended december 31 , 2017 , net of a $ 0.5 million reduction for amounts
| sources of liquidity from our first institutional venture capital financing in 2006 through 2017 , we funded our operations primarily through private placements and public offerings of equity securities , convertible and other debt securities and to a lesser extent upfront , target designation or similar payments from our collaboration partners as well as collaboration revenues . on october 27 , 2017 , we completed a follow-on public offering of ordinary shares . we issued and sold 5,000,000 ordinary shares at $ 18.25 per ordinary share , resulting in gross proceeds of approximately $ 91.3 million . the net proceeds to us from this offering were approximately $ 85.3 million , after deducting underwriting discounts and commissions and other offering expenses payable by us . in september 2017 , we established an “ at the market ” equity offering program pursuant to which we can sell up to 5 million ordinary shares at prevailing market prices from time to time . no ordinary shares were issued in accordance with this program during 2017. in april 2015 , we completed our follow‑on public offering raising total gross proceeds of $ 88.5 million and net proceeds of $ 82.5 million after commissions and after deducting share issuance expenses . also in april 2015 , we entered into collaboration agreements with bms , the financial terms of which consist of : · an upfront payment of $ 50.0 million made at the closing of the transaction on may 2015 ; · a $ 15.0 million payment made in july 2015 , following the designation of three additional collaboration targets ; · an initial equity investment of $ 37.6 million for the purchase of 1.1 million ordinary shares , representing 4.9 % of our outstanding shares following such issuance , made in june 2015 at a price of $ 33.84 per share ; · a second equity investment of $ 37.9 million for the purchase of an additional 1.3 million ordinary shares , representing 5.0 % of our outstanding shares following such issuance , made in august 2015 at a price of $ 29.67 per share ; · two warrants to acquire additional equity interests , at a premium to market , to own 14.9
| 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 from our first institutional venture capital financing in 2006 through 2017 , we funded our operations primarily through private placements and public offerings of equity securities , convertible and other debt securities and to a lesser extent upfront , target designation or similar payments from our collaboration partners as well as collaboration revenues . on october 27 , 2017 , we completed a follow-on public offering of ordinary shares . we issued and sold 5,000,000 ordinary shares at $ 18.25 per ordinary share , resulting in gross proceeds of approximately $ 91.3 million . the net proceeds to us from this offering were approximately $ 85.3 million , after deducting underwriting discounts and commissions and other offering expenses payable by us . in september 2017 , we established an “ at the market ” equity offering program pursuant to which we can sell up to 5 million ordinary shares at prevailing market prices from time to time . no ordinary shares were issued in accordance with this program during 2017. in april 2015 , we completed our follow‑on public offering raising total gross proceeds of $ 88.5 million and net proceeds of $ 82.5 million after commissions and after deducting share issuance expenses . also in april 2015 , we entered into collaboration agreements with bms , the financial terms of which consist of : · an upfront payment of $ 50.0 million made at the closing of the transaction on may 2015 ; · a $ 15.0 million payment made in july 2015 , following the designation of three additional collaboration targets ; · an initial equity investment of $ 37.6 million for the purchase of 1.1 million ordinary shares , representing 4.9 % of our outstanding shares following such issuance , made in june 2015 at a price of $ 33.84 per share ; · a second equity investment of $ 37.9 million for the purchase of an additional 1.3 million ordinary shares , representing 5.0 % of our outstanding shares following such issuance , made in august 2015 at a price of $ 29.67 per share ; · two warrants to acquire additional equity interests , at a premium to market , to own 14.9
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Suspicious Activity Report : business developments below is a summary of our recent significant business developments : hemophilia b program on october 19 , 2017 , we announced that following multi-disciplinary meetings with the fda and the ema , we plan to expeditiously advance amt-061 , which combines an aav5 vector with the fix-padua mutant , into a pivotal study in mid 2018 for patients with severe and moderately severe hemophilia b. the study is expected to be an open-label , single-dose , multi-center , multi-national trial investigating the efficacy and safety of amt-061 administered to adult patients with severe or moderately severe hemophilia b. we have initiated production of multiple clinical-grade batches of amt-061 in our state-of-the-art lexington , ma manufacturing facility . material is being produced at commercial scale and utilizing current good manufacturing practices ( “ cgmp ” ) . we also announced on october 19 , 2017 , that we have acquired a patent family that broadly covers the fix- 53 padua variant and our use in gene therapy for the treatment of coagulopathies , including hemophilia b. this family includes a patent issued in the u.s. , as well as pending patent applications in europe and canada . huntington program ( amt-130 ) on april 26 , 2017 , we presented new preclinical data on amt-130 amt-130 comprises an aav5 vector carrying a dna cassette encoding an engineered microrna that silences the human huntingtin protein . at the 12th annual chdi huntington 's disease therapeutics conference in malta . data from the study showed widespread and distribution of the aav5 vector throughout the brain and extensive silencing of the human mutant huntingtin gene ( “ htt ” ) in mini pigs , which are among the largest huntington 's disease animal models available for testing . the study demonstrated that a single administration of aav5-mihtt resulted in significant reductions in htt mrna in all regions of the brain transduced by amt-130 , as well as in the cortex . consistent with the reduction in htt mrna , a clear dose-dependent reduction in mutant huntingtin protein levels in the brain was observed , with similar trends in the cerebral spinal fluid . in september 2017 , amt-130 received orphan drug designation from the u.s. food and drug administration . also in september 2017 , we initiated our glp toxicology study in non-human primates with amt-130 . we expect to complete this study and file an ind with the fda by the end of 2018. on october 18 , 2017 , we presented new preclinical data on amt-130 at the european society of gene and cell therapy ( “ esgct ” ) 25th anniversary congress in berlin , germany . data from the study demonstrated that following administration of amt-130 in huntington 's disease mouse models , significant improvements in both motor-coordination and survival were observed , as well as a dose-dependent , sustained reduction in huntingtin protein . manufacturing intellectual property in july 2017 , we were granted a patent from the united states patent and trademark office . the newly issued hermens '627 patent significantly expands our leading intellectual property portfolio related to large-scale , highly reproducible manufacturing of aav in insect cells . this patent , which broadens earlier claims granted in this patent family , is based on research focused on enhancing the genetic stability of the rep78/52 encoding sequences used to produce aav vectors in insect cells . the technology covered in the hermens '627 patent family is currently widely applied in insect cell-based aav manufacturing . aav 5 safety and immunogenicity data on may 12 , 2017 , we presented at the american society of gene & cell therapy 's ( “ asgct ” ) annual meeting in washington , d.c. , new preclinical data demonstrating successful and effective transduction of aav5 in non-human primates with pre-existing anti-aav5 neutralizing antibodies ( “ nabs ” ) . at all observed levels , pre-existing neutralizing antibodies for aav5 did not have a negative impact on the transduction effectiveness of the aav5 vector . this data suggests that patients with pre-existing anti-aav5 nabs may be able to be successfully treated with aav5 gene therapies , such as our product candidates in hemophilia b and in huntington 's disease . this development has the potential to significantly expand the applicability of aav5 gene therapies to nearly all patients , regardless of pre-existing antibodies . in addition , aav5 also appears to have a more favorable immunogenicity profile , with no immune responses detected across three clinical studies involving intravenous administration to 22 patients . we believe these factors make aav5 a highly differentiated , best-in-class vector with the potential to more effectively and safely deliver gene therapies to a greater group of patients in need of treatment . bms collaboration we have made continued progress on our research collaboration with bristol-myers squibb ( “ bms ” ) in congestive heart failure . on august 8 , 2017 , we announced that preliminary data from a study in large animals demonstrated both dna delivery and human s100a1 expression in the myocardium after treatments with product produced from our proprietary insect cell , baculovirus manufacturing process . based on this finding and others , we and bms have advanced the amt-126 , the gene therapy candidate for the treatment of congestive heart failure into further preclinical studies , including a preclinical heart function study in a diseased mini pig model in early 2018 . 54 chiesi collaboration on april 20 , 2017 , we announced that we would not pursue the renewal of the glybera marketing authorization in europe when it is expired on october 25 , 2017. we will be responsible for terminating the phase iv post-approval study . story_separator_special_tag 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 could result in reporting amounts that are too high or too low in any particular period . recent accounting pronouncements asu 2014-09 : asc 606 revenue from contracts with customers in july 2015 , the fasb issued asu 2015-14 , revenue from contracts with customers : deferral of the effective date ( “ asu 2015-14 ” ) , which deferred the effective date for asu 2014-09 , revenue from contracts with customers ( “ asu 2014-09 ” ) , by one year . asu 2014-09 will supersede the revenue recognition requirements in asc 605 , revenue recognition , and requires entities to recognize revenue in a way 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 to in exchange for those goods or services . in 2016 , the fasb issued asu 2016-08 , 2016-10 and 2016-12 , which provided further clarification on asu 2014-09. asu 2014-09 is effective for annual reporting periods beginning after december 15 , 2017 , including interim periods within that reporting period , which for the company is january 1 , 2018. asu 2014-09 provides for two implementation methods to us , ( i ) full retrospective application to all periods from january 1 , 2015 onwards for revenue recognized in relation to collaborations ; or ( ii ) application of the standard from january 1 , 2018 , onwards to active collaborations with an adjustment to retained earnings as of december 31 , 2017 , to include the cumulative adjustment to revenue recognized in prior periods in relation to active collaborations . we selected 59 the cumulative effect method to adopt the standard and will not use practical expedients at initial application . we have one active collaboration arrangement with bristol myers squibb ( “ bms ” ) . as a result of the cumulative effect method we will not apply the requirements of asu 2014-09 to any comparative periods presented and therefore the impact assessment applies to bms collaboration agreement only . we are finalizing our evaluation of the impact of adopting this standard . we have considered the new standard and preliminarily expect that the revenue recognition for the existing license will not be materially impacted based on the transfer of the services over the performance obligation . sales-based milestone payments and royalties will continue to be recognized in the statement of comprehensive income when earned . collaboration revenues , which are typically related to reimbursements from collaborators for our performance and costs incurred of research and development services under the respective agreements , are recognized in the statement of comprehensive income on the basis of labor hours valued at a contractually agreed rate and as costs incurred . asu 2016-02 : leases in february 2016 , the fasb issued asu 2016-02 , leases ( “ asu 2016-02 ” ) . the standard amends the existing accounting standards for lease accounting , including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting . asu 2016-02 is effective for annual periods in fiscal years beginning after december 15 , 2019. early adoption is permitted . the new leases standard requires a modified retrospective transition approach for all leases existing at , or entered into after , the date of initial application with an option to use certain transition relief . we expect asu 2016-02 to have a material impact on our consolidated financial statements , primarily from recognition of a right-of-use asset and lease liability in the consolidated balance sheets and a shift of cash outflows from operating activities to financing activities . see note 2 to our consolidate financial statements included in part iv , item 15 , exhibits and financial statement schedules of this annual report on form 10-k for a detailed description of recent accounting pronouncements applicable to our business . results of operations the following table presents a comparison of the twelve months ended december 31 , 2017 , 2016 and 2015. replace_table_token_8_th 60 revenue we recognize total collaboration revenues associated with development activities that are reimbursable by chiesi ( up to the july 2017 termination of the collaboration ) and bms under our respective collaboration agreements . we recognize license revenues associated with the amortization of the non‑refundable upfront payment , target designation fees and research and development milestone payments we have received or might receive from bms . the timing of these cash payments may differ from the recognition of revenue , as revenue is deferred and recognized over the duration of the performance period . we treat other revenue , such as sales milestone payments or service fees , as earned when receivable . our revenue for the years ended december 31 , 2017 , 2016 and 2015 was as follows : replace_table_token_9_th in association with the upfront payments and target designation fees received from bms in the second and third quarters of 2015 , we recognized $ 4.1 million in license revenue during the year ended december 31 , 2017 , compared to $ 3.9 million and $ 2.4 million for the years ended december 31 , 2016 and december 31 , 2015. following the termination of our collaboration with chiesi in july 2017 , we no longer recognize license revenue in association with the upfront fees received in 2013. we recognized $ 0.0 million license revenue during the year ended december 31 , 2017 , compared to $ 1.0 million and $ 1.0 million for the years ended december 31 , 2016 and december 31 , 2015. we recognized our license revenue during the year ended december 31 , 2017 , net of a $ 0.5 million reduction for amounts
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2,673 | research and development expenses our research and development expenses consist mainly of costs associated with the clinical trials of our product candidates that have not yet received regulatory approval for marketing and for which no alternative future use has been identified . this includes the salaries , benefits and stock-based compensation of research and development personnel , raw materials , such as insulin purchases , laboratory supplies and materials , facility costs , costs for consultants and related contract research , licensing fees , and depreciation of equipment . we track research and development costs by the type of cost incurred . we partially offset research and development expenses with the recognition of estimated amounts receivable from the state of connecticut pursuant to a program under which we can exchange qualified research and development income tax credits for cash . our research and development staff conducts our internal research and development activities , which include research , product development , clinical development , manufacturing and related activities . this staff is located in our facilities in valencia , california ; paramus , new jersey ; and danbury , connecticut . we expense research and development costs as we incur them . clinical development timelines , likelihood of success and total costs vary widely . we are focused primarily on advancing afrezza through regulatory filings . at this time , due to the risks inherent in the clinical trial process and given the early stage of development of our product candidates other than afrezza , we are unable to estimate with any certainty the costs that we will incur in the continued development of our product candidates for commercialization . the costs required to complete the development of afrezza will be largely dependent on the cost and efficiency of our clinical trial operations and discussions with the fda regarding its requirements . during the first quarter of 2011 , we implemented a restructuring to streamline operations , reduce operating expenses , extend our cash runway and focus our resources on securing fda approval of the nda for afrezza . in connection with the restructuring , we recorded charges to research and development expenses of approximately $ 4.7 million for employee severance and other related termination benefits . the restructuring 42 resulted in research and development operating cost savings of approximately $ 9.5 million in 2011. these savings were partially offset by increased costs associated with the additional trials required by the fda . general and administrative expenses our general and administrative expenses consist primarily of salaries , benefits and stock-based compensation for administrative , finance , business development , human resources , legal and information systems support personnel . in addition , general and administrative expenses include professional service fees and business insurance costs . in connection with the restructuring , we recorded charges to general and administrative expenses of approximately $ 1.6 million for employee severance and other related termination benefits . the restructuring resulted in general and administrative operating cost savings of approximately $ 2.8 million in 2011. these savings were offset primarily by increased professional fees . critical accounting policies we have based our discussion and analysis of our financial condition and results of operations on our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities and expenses . we evaluate our estimates and judgments on an ongoing basis . we base our estimates on historical experience and on various assumptions that we believe to be reasonable under the circumstances , the results of which form the basis for making estimates of expenses such as stock option expenses and judgments about the carrying values of assets and liabilities . actual results may differ from these estimates under different assumptions or conditions . the significant accounting policies that are critical to the judgments and estimates used in the preparation of our financial statements are described in more detail below . impairment of long-lived assets assessing long-lived assets for impairment requires us to make assumptions and judgments regarding the carrying value of these assets . we evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable . the assets are considered to be impaired if we determine that the carrying value may not be recoverable based upon our assessment of the following events or changes in circumstances : significant changes in our strategic business objectives and utilization of the assets ; a determination that the carrying value of such assets can not be recovered through undiscounted cash flows ; loss of legal ownership or title to the assets ; a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset ( asset group ) , including an adverse action or assessment by a regulator ; or the impact of significant negative industry or economic trends . if we believe our assets to be impaired , the impairment we recognize is the amount by which the carrying value of the assets exceeds the fair value of the assets . any write-downs would be treated as permanent reductions in the carrying amount of the asset and an operating loss would be recognized . in addition , we base the useful lives and related amortization or depreciation expense on our estimate of the useful lives of the assets . if a change were to occur in any of the above-mentioned factors or estimates , our reported results could materially change . to date , we have had recurring operating losses , and the recoverability of our long-lived assets is contingent upon executing our business plan . story_separator_special_tag accordingly , we will need to raise additional capital , either through the sale of equity or debt securities , the entry into a strategic business collaboration with a pharmaceutical or biotechnology company , the establishment of other funding facilities , licensing arrangements , asset sales or other means , and or refinance our indebtedness under the 2013 notes , in order to continue the development and commercialization of afrezza and other product candidates and to support our other ongoing activities . there can be no assurance that we will be able to do so on favorable terms by the applicable repayment date , or at all . in addition , if we undergo a fundamental change , as that term is defined in the indentures governing the terms of the 2013 notes , each holder of 2013 notes will have the option to require us to repurchase all or any portion of such holder 's notes at a repurchase price of 100 % of the principal amount of such notes to be repurchased plus accrued and unpaid interest , if any . any of these events could have a material adverse effect on our business , results of operations and financial condition , up to and including the noteholders initiating bankruptcy proceedings or causing us to cease operations altogether . this raises substantial doubt about our ability to continue as a going concern . 49 we intend to use our capital resources to continue the development and commercialization of afrezza , if approved . we are expending a portion of our capital to scale up our manufacturing capabilities in our danbury facilities . we also intend to use our capital resources for general corporate purposes . we have held extensive discussions with a number of pharmaceutical companies concerning a potential strategic business collaboration for afrezza . we can not predict when , if ever , we could conclude an agreement with a partner . there can be no assurance that any such collaboration will be available to us on a timely basis or on acceptable terms , if at all . if we enter into a strategic business collaboration with a pharmaceutical or biotechnology company , we would expect , as part of the transaction , to receive additional capital . in addition , we expect to pursue the sale of equity and or debt securities , or the establishment of other funding facilities . issuances of debt or additional equity could impact the rights of our existing stockholders , dilute the ownership percentages of our existing stockholders and may impose restrictions on our operations . these restrictions could include limitations on additional borrowing , specific restrictions on the use of our assets as well as prohibitions on our ability to create liens , pay dividends , redeem our stock or make investments . we also may seek to raise additional capital by pursuing opportunities for the licensing , sale or divestiture of certain intellectual property and other assets , including our technosphere technology platform . there can be no assurance , however , that any strategic collaboration , sale of securities or sale or license of assets will be available to us on a timely basis or on acceptable terms , if at all . if we are unable to raise additional capital , we may be required to enter into agreements with third parties to develop or commercialize products or technologies that we otherwise would have sought to develop independently , and any such agreements may not be on terms as commercially favorable to us . however , we can not provide assurances that our plans will not change or that changed circumstances will not result in the depletion of our capital resources more rapidly than we currently anticipate . if planned operating results are not achieved or we are not successful in raising additional capital through equity or debt financing or entering a business collaboration , we may be required to reduce expenses through the delay , reduction or curtailment of our projects , including afrezza development activities , or further reduction of costs for facilities and administration , and there will continue to be substantial doubt about our ability to continue as a going concern . off-balance sheet arrangements as of december 31 , 2012 , we did not have any off-balance sheet arrangements . commitments and contingencies our contractual obligations represent future cash commitments and liabilities under agreements with third parties , and exclude contingent liabilities for which we can not reasonably predict future payments . accordingly , the table below excludes contractual obligations relating to milestone and royalty payments due to third parties , all of which are contingent upon certain future events . the expected timing of payment of the obligations presented below is estimated based on current information . future payments relate to operating lease obligations , the senior convertible notes , and open purchase order and supply commitments consisted of the following at december 31 , 2012 ( in thousands ) : replace_table_token_7_th ( 1 ) the amounts included in open purchase order and supply commitments are subject to performance under the purchase order or contract by the supplier of the goods or services and do not become our obligation until such performance is rendered . the amount shown is principally for the purchase of materials for our clinical trials , the acquisition of manufacturing equipment , and commitments related to the expansion of our manufacturing plant . 50 ( 2 ) the senior convertible notes obligations include the 2013 notes and the 2015 notes . the amounts include future interest payments at fixed rates of 3.75 % and 5.75 % , respectively , and payment of the notes in full upon maturity in 2013 and 2015 , respectively . ( 3 ) the obligation for the note payable to the principal stockholder includes future principal and interest payments related to the $ 119.6 million of borrowings as of december
| liquidity and capital resources we have funded our operations primarily through the sale of equity securities and convertible debt securities and borrowings under our loan arrangement with our principal stockholder . in october 2007 , we entered into a $ 350.0 million loan arrangement with our principal stockholder . in february 2009 , as a result of our principal stockholder being licensed as a finance lender under the california finance lenders law , the promissory note underlying the loan arrangement was revised to reflect the lender as the mann group llc , an entity controlled by our principal stockholder . until january 1 , 2013 , interest on outstanding principal amounts accrued at a fixed rate equal to the one-year london interbank offered rate ( libor ) rate as reported by the wall street journal on the date of such advance plus 3 % per annum . the borrowing rate was 4.5 % at december 31 , 2012. we amended the promissory note underlying the loan arrangement at various dates during 2012. the most recent amendment occurred in october 2012 to extend the maturity date to january 1 , 2014 , extend the date through which we can borrow under the promissory note to 47 september 30 , 2013 , and adjust the annual interest rate on all outstanding principal to the one-year libor rate on december 31 , 2012 plus 5 % , effective beginning on january 1 , 2013. as of december 31 , 2012 , the total principal amount outstanding under the credit facility was $ 119.6 million , and the amount available for future borrowings was $ 125.4 million . interest is due and payable quarterly in arrears on the first day of each calendar quarter for the preceding quarter , or at such other time as we and the mann group mutually agree . all or any portion of accrued and unpaid interest that becomes due and payable may be paid-in-kind and capitalized at any time upon mutual agreement of both parties . the mann group can require us to prepay up to $ 200.0 million in advances that have been outstanding for at least 12 months .
| 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 primarily through the sale of equity securities and convertible debt securities and borrowings under our loan arrangement with our principal stockholder . in october 2007 , we entered into a $ 350.0 million loan arrangement with our principal stockholder . in february 2009 , as a result of our principal stockholder being licensed as a finance lender under the california finance lenders law , the promissory note underlying the loan arrangement was revised to reflect the lender as the mann group llc , an entity controlled by our principal stockholder . until january 1 , 2013 , interest on outstanding principal amounts accrued at a fixed rate equal to the one-year london interbank offered rate ( libor ) rate as reported by the wall street journal on the date of such advance plus 3 % per annum . the borrowing rate was 4.5 % at december 31 , 2012. we amended the promissory note underlying the loan arrangement at various dates during 2012. the most recent amendment occurred in october 2012 to extend the maturity date to january 1 , 2014 , extend the date through which we can borrow under the promissory note to 47 september 30 , 2013 , and adjust the annual interest rate on all outstanding principal to the one-year libor rate on december 31 , 2012 plus 5 % , effective beginning on january 1 , 2013. as of december 31 , 2012 , the total principal amount outstanding under the credit facility was $ 119.6 million , and the amount available for future borrowings was $ 125.4 million . interest is due and payable quarterly in arrears on the first day of each calendar quarter for the preceding quarter , or at such other time as we and the mann group mutually agree . all or any portion of accrued and unpaid interest that becomes due and payable may be paid-in-kind and capitalized at any time upon mutual agreement of both parties . the mann group can require us to prepay up to $ 200.0 million in advances that have been outstanding for at least 12 months .
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Suspicious Activity Report : research and development expenses our research and development expenses consist mainly of costs associated with the clinical trials of our product candidates that have not yet received regulatory approval for marketing and for which no alternative future use has been identified . this includes the salaries , benefits and stock-based compensation of research and development personnel , raw materials , such as insulin purchases , laboratory supplies and materials , facility costs , costs for consultants and related contract research , licensing fees , and depreciation of equipment . we track research and development costs by the type of cost incurred . we partially offset research and development expenses with the recognition of estimated amounts receivable from the state of connecticut pursuant to a program under which we can exchange qualified research and development income tax credits for cash . our research and development staff conducts our internal research and development activities , which include research , product development , clinical development , manufacturing and related activities . this staff is located in our facilities in valencia , california ; paramus , new jersey ; and danbury , connecticut . we expense research and development costs as we incur them . clinical development timelines , likelihood of success and total costs vary widely . we are focused primarily on advancing afrezza through regulatory filings . at this time , due to the risks inherent in the clinical trial process and given the early stage of development of our product candidates other than afrezza , we are unable to estimate with any certainty the costs that we will incur in the continued development of our product candidates for commercialization . the costs required to complete the development of afrezza will be largely dependent on the cost and efficiency of our clinical trial operations and discussions with the fda regarding its requirements . during the first quarter of 2011 , we implemented a restructuring to streamline operations , reduce operating expenses , extend our cash runway and focus our resources on securing fda approval of the nda for afrezza . in connection with the restructuring , we recorded charges to research and development expenses of approximately $ 4.7 million for employee severance and other related termination benefits . the restructuring 42 resulted in research and development operating cost savings of approximately $ 9.5 million in 2011. these savings were partially offset by increased costs associated with the additional trials required by the fda . general and administrative expenses our general and administrative expenses consist primarily of salaries , benefits and stock-based compensation for administrative , finance , business development , human resources , legal and information systems support personnel . in addition , general and administrative expenses include professional service fees and business insurance costs . in connection with the restructuring , we recorded charges to general and administrative expenses of approximately $ 1.6 million for employee severance and other related termination benefits . the restructuring resulted in general and administrative operating cost savings of approximately $ 2.8 million in 2011. these savings were offset primarily by increased professional fees . critical accounting policies we have based our discussion and analysis of our financial condition and results of operations on our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities and expenses . we evaluate our estimates and judgments on an ongoing basis . we base our estimates on historical experience and on various assumptions that we believe to be reasonable under the circumstances , the results of which form the basis for making estimates of expenses such as stock option expenses and judgments about the carrying values of assets and liabilities . actual results may differ from these estimates under different assumptions or conditions . the significant accounting policies that are critical to the judgments and estimates used in the preparation of our financial statements are described in more detail below . impairment of long-lived assets assessing long-lived assets for impairment requires us to make assumptions and judgments regarding the carrying value of these assets . we evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable . the assets are considered to be impaired if we determine that the carrying value may not be recoverable based upon our assessment of the following events or changes in circumstances : significant changes in our strategic business objectives and utilization of the assets ; a determination that the carrying value of such assets can not be recovered through undiscounted cash flows ; loss of legal ownership or title to the assets ; a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset ( asset group ) , including an adverse action or assessment by a regulator ; or the impact of significant negative industry or economic trends . if we believe our assets to be impaired , the impairment we recognize is the amount by which the carrying value of the assets exceeds the fair value of the assets . any write-downs would be treated as permanent reductions in the carrying amount of the asset and an operating loss would be recognized . in addition , we base the useful lives and related amortization or depreciation expense on our estimate of the useful lives of the assets . if a change were to occur in any of the above-mentioned factors or estimates , our reported results could materially change . to date , we have had recurring operating losses , and the recoverability of our long-lived assets is contingent upon executing our business plan . story_separator_special_tag accordingly , we will need to raise additional capital , either through the sale of equity or debt securities , the entry into a strategic business collaboration with a pharmaceutical or biotechnology company , the establishment of other funding facilities , licensing arrangements , asset sales or other means , and or refinance our indebtedness under the 2013 notes , in order to continue the development and commercialization of afrezza and other product candidates and to support our other ongoing activities . there can be no assurance that we will be able to do so on favorable terms by the applicable repayment date , or at all . in addition , if we undergo a fundamental change , as that term is defined in the indentures governing the terms of the 2013 notes , each holder of 2013 notes will have the option to require us to repurchase all or any portion of such holder 's notes at a repurchase price of 100 % of the principal amount of such notes to be repurchased plus accrued and unpaid interest , if any . any of these events could have a material adverse effect on our business , results of operations and financial condition , up to and including the noteholders initiating bankruptcy proceedings or causing us to cease operations altogether . this raises substantial doubt about our ability to continue as a going concern . 49 we intend to use our capital resources to continue the development and commercialization of afrezza , if approved . we are expending a portion of our capital to scale up our manufacturing capabilities in our danbury facilities . we also intend to use our capital resources for general corporate purposes . we have held extensive discussions with a number of pharmaceutical companies concerning a potential strategic business collaboration for afrezza . we can not predict when , if ever , we could conclude an agreement with a partner . there can be no assurance that any such collaboration will be available to us on a timely basis or on acceptable terms , if at all . if we enter into a strategic business collaboration with a pharmaceutical or biotechnology company , we would expect , as part of the transaction , to receive additional capital . in addition , we expect to pursue the sale of equity and or debt securities , or the establishment of other funding facilities . issuances of debt or additional equity could impact the rights of our existing stockholders , dilute the ownership percentages of our existing stockholders and may impose restrictions on our operations . these restrictions could include limitations on additional borrowing , specific restrictions on the use of our assets as well as prohibitions on our ability to create liens , pay dividends , redeem our stock or make investments . we also may seek to raise additional capital by pursuing opportunities for the licensing , sale or divestiture of certain intellectual property and other assets , including our technosphere technology platform . there can be no assurance , however , that any strategic collaboration , sale of securities or sale or license of assets will be available to us on a timely basis or on acceptable terms , if at all . if we are unable to raise additional capital , we may be required to enter into agreements with third parties to develop or commercialize products or technologies that we otherwise would have sought to develop independently , and any such agreements may not be on terms as commercially favorable to us . however , we can not provide assurances that our plans will not change or that changed circumstances will not result in the depletion of our capital resources more rapidly than we currently anticipate . if planned operating results are not achieved or we are not successful in raising additional capital through equity or debt financing or entering a business collaboration , we may be required to reduce expenses through the delay , reduction or curtailment of our projects , including afrezza development activities , or further reduction of costs for facilities and administration , and there will continue to be substantial doubt about our ability to continue as a going concern . off-balance sheet arrangements as of december 31 , 2012 , we did not have any off-balance sheet arrangements . commitments and contingencies our contractual obligations represent future cash commitments and liabilities under agreements with third parties , and exclude contingent liabilities for which we can not reasonably predict future payments . accordingly , the table below excludes contractual obligations relating to milestone and royalty payments due to third parties , all of which are contingent upon certain future events . the expected timing of payment of the obligations presented below is estimated based on current information . future payments relate to operating lease obligations , the senior convertible notes , and open purchase order and supply commitments consisted of the following at december 31 , 2012 ( in thousands ) : replace_table_token_7_th ( 1 ) the amounts included in open purchase order and supply commitments are subject to performance under the purchase order or contract by the supplier of the goods or services and do not become our obligation until such performance is rendered . the amount shown is principally for the purchase of materials for our clinical trials , the acquisition of manufacturing equipment , and commitments related to the expansion of our manufacturing plant . 50 ( 2 ) the senior convertible notes obligations include the 2013 notes and the 2015 notes . the amounts include future interest payments at fixed rates of 3.75 % and 5.75 % , respectively , and payment of the notes in full upon maturity in 2013 and 2015 , respectively . ( 3 ) the obligation for the note payable to the principal stockholder includes future principal and interest payments related to the $ 119.6 million of borrowings as of december
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2,674 | we have taken steps to align our business operations to better respond to customer needs . we have made it easier for customers to shop at dsw with a number of digital enhancements , including a mobile app , as well as the use of paypal as a secure payment option . we have also given our customer the ability to shop our full assortment by integrating inventory and order fulfillment between our brick and mortar and digital channels . financial summary during fiscal 2015 , we generated a 0.8 % increase in comparable sales and a 5.0 % increase in total sales . this increase compares to a comparable sales increase of 1.8 % for fiscal 2014 . in fiscal 2015 , dsw 's merchandise margin rate , defined as gross profit excluding occupancy and distribution and fulfillment expenses ( a non-gaap measure ) decreased as a percentage of net sales from 43.7 % in fiscal 2014 to 42.8 % in fiscal 2015 . reported net income was $ 136.0 million , or $ 1.54 per diluted share , a decrease of 8.9 % over last year 's reported earnings per share of $ 1.69 per diluted share . the earnings decrease was primarily driven by sales challenges in the fall season attributable to unseasonably warm weather . we have continued making investments in our business that are critical to long-term growth . in fiscal 2015 , we invested $ 111.7 million in capital expenditures compared to $ 93.3 million during fiscal 2014 . our capital expenditures during fiscal 2015 were primarily related to opening 40 new stores , store remodels and business infrastructure . we plan to open approximately 30 to 35 stores in fiscal 2016 . as of january 30 , 2016 , we operated 468 dsw stores , dsw.com and shoe departments in 276 stein mart stores and steinmart.com , 102 gordmans stores and gordmans.com , and one frugal fannie 's store . dsw inc. has two reportable segments : the dsw segment , which includes the dsw stores and dsw.com , and the affiliated business group segment . 19 results of operations the following table represents selected components of our consolidated results of operations , expressed as percentages of net sales : replace_table_token_7_th fiscal year ended january 30 , 2016 ( fiscal 2015 ) compared to fiscal year ended january 31 , 2015 ( fiscal 2014 ) and fiscal 2014 compared to fiscal year ended february 1 , 2014 ( fiscal 2013 ) net sales- net sales for fiscal 2015 increased by 5.0 % from fiscal 2014 and net sales for fiscal 2014 increased by 5.4 % from fiscal 2013 . the following table summarizes the increase in our net sales : replace_table_token_8_th the following table summarizes our net sales by reportable segment and in total : replace_table_token_9_th 20 the following table summarizes our comparable sales change by reportable segment and in total : replace_table_token_10_th fiscal 2015 vs. fiscal 2014- our increase in total net sales for the dsw segment was the result of an increase in comparable sales and non-comparable sales growth . our comparable sales increase includes a 22 % increase in digitally demanded sales . dsw segment comparable sales decreased in our largest business , women 's footwear , by 2 % , increased in men 's footwear by 2 % , increased in athletic footwear by 13 % , and decreased in accessories by 2 % . our non-comparable sales growth is attributable to stores opened in fiscal 2014 , as well as 37 net new dsw stores in fiscal 2015 . the increase in total net sales for our affiliated business group segment was primarily the result of comparable sales growth and the net addition of eight new shoe departments in fiscal 2015. fiscal 2014 vs. fiscal 2013- our increase in total net sales for the dsw segment was the result of an increase in comparable sales and non-comparable sales growth . the increase in comparable sales was a result of an increase in customer traffic . dsw segment comparable sales decreased in our largest business , women 's footwear , by 1 % , increased in men 's footwear by 4 % , increased in accessories by 10 % and in athletic footwear by 5 % . our non-comparable sales growth is attributable to stores opened in fiscal 2013 , as well as 37 new dsw stores in fiscal 2014 . the increase in total net sales for our affiliated business group segment was primarily the result of comparable sales growth and the net addition of 15 new shoe departments in fiscal 2014. gross profit- gross profit is defined as net sales less cost of sales . gross profit decreased as a percentage of net sales to 29.3 % in fiscal 2015 from 30.2 % in fiscal 2014 and 31.2 % in fiscal 2013 . by reportable segment and in total , gross profit as a percentage of net sales was : replace_table_token_11_th in fiscal 2013 , dsw inc. gross profit was negatively impacted by $ 16.5 million related to our luxury test , which was comprised of a sales benefit of $ 18.4 million offset by cost of sales of $ 34.9 million , which include inventory adjustments . for dsw inc. , the reconciliation of gross profit excluding our luxury test was : replace_table_token_12_th 21 for the dsw segment , the reconciliation of merchandise margin ( non-gaap ) to gross profit was : replace_table_token_13_th fiscal 2015 vs. fiscal 2014- dsw segment gross profit decreased 90 basis points while occupancy expenses and distribution and fulfillment expenses were flat year over year . story_separator_special_tag the cost of the inventory reflected on the balance sheet is decreased by charges to cost of sales at the time the retail value of the inventory is lowered through the use of markdowns , which are reductions in prices due to customers ' perception of value . hence , earnings are negatively impacted as the merchandise is marked down prior to sale . markdowns establish a new cost basis for inventory . changes in facts or circumstances do not result in the reversal of previously recorded markdowns or an increase in the newly established cost basis . markdowns require management to make assumptions regarding customer preferences , fashion trends and consumer demand . inherent in the calculation of inventories are certain significant management judgments and estimates , including setting the original merchandise retail value , markdowns , and estimates of losses between physical inventory counts , or shrinkage , which combined with the averaging process within the retail inventory method , can significantly impact the ending inventory valuation at cost and the resulting gross profit . dsw records a reduction to inventories and a charge to cost of sales for shrinkage . shrinkage is calculated as a percentage of sales from the last physical inventory date . estimates are based on both historical experience as well as recent physical inventory results . physical store inventory counts are taken on an annual basis and have supported our shrinkage estimates . if our estimate of shrinkage , on a cost basis , were to increase or decrease 0.5 % as a percentage of dsw inc. net sales , it would result in a decrease or increase of approximately $ 5.1 million to operating profit . investments . our investments are valued using a market-based approach using level 1 , 2 and 3 inputs . we evaluate our investments for impairment and whether impairment is other-than-temporary . based on the nature of the impairment ( s ) , we would record temporary impairments as unrealized losses in other comprehensive loss or other-than-temporary impairments in earnings . the investment is written down to its current market value at the time the impairment is deemed to have occurred . in determining whether impairment has occurred , we review information about the underlying investment that is publicly available and assess our ability to hold the securities for the foreseeable future . we believe that our fair value estimates are reasonable . asset impairment and long-lived assets . we periodically evaluate the carrying amount of our long-lived assets , primarily property and equipment , and finite lived intangible assets when events and circumstances warrant such a review to ascertain if any assets have been impaired . the carrying amount of a long-lived asset or asset group is considered impaired when the carrying value of the asset or asset group exceeds the expected future cash flows from the asset . our reviews are conducted at the lowest identifiable level , which includes a store . the impairment loss recognized is the excess of the carrying amount of the asset or asset group over its fair value , based on projected discounted cash flows using a discount rate determined by management . any impairment loss realized is generally included in cost of sales . we believe that the long-lived assets ' carrying amounts and useful lives are appropriate . to the extent these future projections or our strategies change , the conclusion regarding impairment may differ from our current estimates . customer loyalty program . we maintain a customer loyalty program for dsw in which program members earn reward certificates that result in discounts on future purchases . upon reaching the target-earned threshold , the members receive reward certificates for these discounts , which expire three months after being issued . we accrue the anticipated redemptions of the discount earned at the time of the initial purchase . to estimate these costs , we make assumptions related to customer purchase levels and redemption rates based on historical experience . if our redemption rate were to increase or decrease by 5 % , it would result in an increase or a decrease of approximately $ 1.6 million to the reserve at year end . 28 policy judgments and estimates effect if actual results differ from assumptions income taxes . we determine the aggregate amount of income tax expense to accrue and the amount which will be currently payable based upon tax statutes of each jurisdiction we do business in . deferred tax assets and liabilities , as a result of these timing differences , are reflected on our balance sheet for temporary differences that will reverse in subsequent years . a valuation allowance is established against deferred tax assets when it is more likely than not that some or all of the deferred tax assets will not be realized . in making these estimates , we adjust income based on a determination of generally accepted accounting principles for items that are treated differently by the applicable taxing authorities . if our management had made these determinations on a different basis , our tax expense , assets and liabilities could be different . although we believe that our estimates are reasonable , actual results could differ from these estimates resulting in an outcome that may be materially different from that which is reflected in our consolidated financial statements . stock-based compensation . we recognize compensation expense for stock option awards and time-based restricted stock awards on a straight-line basis over the requisite service period of the award for the awards that actually vest . we use the black-scholes pricing model to value stock-based compensation expense , which requires us to estimate the expected term of the stock options and expected future stock price volatility over the expected term . if our expected term estimate were to increase or decrease by one year , it would not materially impact our operating profit . exit and disposal obligations . we record a
| net cash provided by operations in fiscal 2014 decreased to $ 197.0 million from $ 301.4 million for fiscal 2013 . the decrease in net cash provided by operations was driven primarily by changes in working capital , an increase in inventories due to store growth and opportunistic pre-buys , the usage of our net operating losses in fiscal 2013 and the settlement of the pension plan in fiscal 2013. free cash flow is defined as cash flows from operating activities less capital expenditures . the table below represents the free cash flow for the periods presented : replace_table_token_14_th we operate our stores and fulfillment center from leased facilities . all lease obligations are accounted for as operating leases . we disclose the minimum payments due under operating leases in the notes to the consolidated financial statements included elsewhere in this annual report on form 10-k. we own our corporate office headquarters and our distribution center . although our plan for continued expansion could place increased demands on our financial , managerial , operational and administrative resources and result in increased demands on management , we do not believe that our anticipated growth plan will have an unfavorable impact on our operations or liquidity . investing activities for fiscal 2015 , our net cash used in investing activities was $ 31.1 million compared to $ 105.5 million for fiscal 2014 . during fiscal 2015 , we incurred $ 111.7 million for capital expenditures , of which $ 52.3 million related to stores , $ 28.2 million related to technology and the remaining $ 31.2 million related to supply chain and other business projects . during fiscal 2015 , we had net sales of short-term and long-term investments of $ 73.6 million compared to $ 69.8 million during fiscal 2014 . the net sales of investments were to fund our share repurchases and payment of dividends . for fiscal 2014 , cash used in investing activities amounted to $ 105.5 million compared to $ 241.4 million for fiscal 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.
```net cash provided by operations in fiscal 2014 decreased to $ 197.0 million from $ 301.4 million for fiscal 2013 . the decrease in net cash provided by operations was driven primarily by changes in working capital , an increase in inventories due to store growth and opportunistic pre-buys , the usage of our net operating losses in fiscal 2013 and the settlement of the pension plan in fiscal 2013. free cash flow is defined as cash flows from operating activities less capital expenditures . the table below represents the free cash flow for the periods presented : replace_table_token_14_th we operate our stores and fulfillment center from leased facilities . all lease obligations are accounted for as operating leases . we disclose the minimum payments due under operating leases in the notes to the consolidated financial statements included elsewhere in this annual report on form 10-k. we own our corporate office headquarters and our distribution center . although our plan for continued expansion could place increased demands on our financial , managerial , operational and administrative resources and result in increased demands on management , we do not believe that our anticipated growth plan will have an unfavorable impact on our operations or liquidity . investing activities for fiscal 2015 , our net cash used in investing activities was $ 31.1 million compared to $ 105.5 million for fiscal 2014 . during fiscal 2015 , we incurred $ 111.7 million for capital expenditures , of which $ 52.3 million related to stores , $ 28.2 million related to technology and the remaining $ 31.2 million related to supply chain and other business projects . during fiscal 2015 , we had net sales of short-term and long-term investments of $ 73.6 million compared to $ 69.8 million during fiscal 2014 . the net sales of investments were to fund our share repurchases and payment of dividends . for fiscal 2014 , cash used in investing activities amounted to $ 105.5 million compared to $ 241.4 million for fiscal 2013 .
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Suspicious Activity Report : we have taken steps to align our business operations to better respond to customer needs . we have made it easier for customers to shop at dsw with a number of digital enhancements , including a mobile app , as well as the use of paypal as a secure payment option . we have also given our customer the ability to shop our full assortment by integrating inventory and order fulfillment between our brick and mortar and digital channels . financial summary during fiscal 2015 , we generated a 0.8 % increase in comparable sales and a 5.0 % increase in total sales . this increase compares to a comparable sales increase of 1.8 % for fiscal 2014 . in fiscal 2015 , dsw 's merchandise margin rate , defined as gross profit excluding occupancy and distribution and fulfillment expenses ( a non-gaap measure ) decreased as a percentage of net sales from 43.7 % in fiscal 2014 to 42.8 % in fiscal 2015 . reported net income was $ 136.0 million , or $ 1.54 per diluted share , a decrease of 8.9 % over last year 's reported earnings per share of $ 1.69 per diluted share . the earnings decrease was primarily driven by sales challenges in the fall season attributable to unseasonably warm weather . we have continued making investments in our business that are critical to long-term growth . in fiscal 2015 , we invested $ 111.7 million in capital expenditures compared to $ 93.3 million during fiscal 2014 . our capital expenditures during fiscal 2015 were primarily related to opening 40 new stores , store remodels and business infrastructure . we plan to open approximately 30 to 35 stores in fiscal 2016 . as of january 30 , 2016 , we operated 468 dsw stores , dsw.com and shoe departments in 276 stein mart stores and steinmart.com , 102 gordmans stores and gordmans.com , and one frugal fannie 's store . dsw inc. has two reportable segments : the dsw segment , which includes the dsw stores and dsw.com , and the affiliated business group segment . 19 results of operations the following table represents selected components of our consolidated results of operations , expressed as percentages of net sales : replace_table_token_7_th fiscal year ended january 30 , 2016 ( fiscal 2015 ) compared to fiscal year ended january 31 , 2015 ( fiscal 2014 ) and fiscal 2014 compared to fiscal year ended february 1 , 2014 ( fiscal 2013 ) net sales- net sales for fiscal 2015 increased by 5.0 % from fiscal 2014 and net sales for fiscal 2014 increased by 5.4 % from fiscal 2013 . the following table summarizes the increase in our net sales : replace_table_token_8_th the following table summarizes our net sales by reportable segment and in total : replace_table_token_9_th 20 the following table summarizes our comparable sales change by reportable segment and in total : replace_table_token_10_th fiscal 2015 vs. fiscal 2014- our increase in total net sales for the dsw segment was the result of an increase in comparable sales and non-comparable sales growth . our comparable sales increase includes a 22 % increase in digitally demanded sales . dsw segment comparable sales decreased in our largest business , women 's footwear , by 2 % , increased in men 's footwear by 2 % , increased in athletic footwear by 13 % , and decreased in accessories by 2 % . our non-comparable sales growth is attributable to stores opened in fiscal 2014 , as well as 37 net new dsw stores in fiscal 2015 . the increase in total net sales for our affiliated business group segment was primarily the result of comparable sales growth and the net addition of eight new shoe departments in fiscal 2015. fiscal 2014 vs. fiscal 2013- our increase in total net sales for the dsw segment was the result of an increase in comparable sales and non-comparable sales growth . the increase in comparable sales was a result of an increase in customer traffic . dsw segment comparable sales decreased in our largest business , women 's footwear , by 1 % , increased in men 's footwear by 4 % , increased in accessories by 10 % and in athletic footwear by 5 % . our non-comparable sales growth is attributable to stores opened in fiscal 2013 , as well as 37 new dsw stores in fiscal 2014 . the increase in total net sales for our affiliated business group segment was primarily the result of comparable sales growth and the net addition of 15 new shoe departments in fiscal 2014. gross profit- gross profit is defined as net sales less cost of sales . gross profit decreased as a percentage of net sales to 29.3 % in fiscal 2015 from 30.2 % in fiscal 2014 and 31.2 % in fiscal 2013 . by reportable segment and in total , gross profit as a percentage of net sales was : replace_table_token_11_th in fiscal 2013 , dsw inc. gross profit was negatively impacted by $ 16.5 million related to our luxury test , which was comprised of a sales benefit of $ 18.4 million offset by cost of sales of $ 34.9 million , which include inventory adjustments . for dsw inc. , the reconciliation of gross profit excluding our luxury test was : replace_table_token_12_th 21 for the dsw segment , the reconciliation of merchandise margin ( non-gaap ) to gross profit was : replace_table_token_13_th fiscal 2015 vs. fiscal 2014- dsw segment gross profit decreased 90 basis points while occupancy expenses and distribution and fulfillment expenses were flat year over year . story_separator_special_tag the cost of the inventory reflected on the balance sheet is decreased by charges to cost of sales at the time the retail value of the inventory is lowered through the use of markdowns , which are reductions in prices due to customers ' perception of value . hence , earnings are negatively impacted as the merchandise is marked down prior to sale . markdowns establish a new cost basis for inventory . changes in facts or circumstances do not result in the reversal of previously recorded markdowns or an increase in the newly established cost basis . markdowns require management to make assumptions regarding customer preferences , fashion trends and consumer demand . inherent in the calculation of inventories are certain significant management judgments and estimates , including setting the original merchandise retail value , markdowns , and estimates of losses between physical inventory counts , or shrinkage , which combined with the averaging process within the retail inventory method , can significantly impact the ending inventory valuation at cost and the resulting gross profit . dsw records a reduction to inventories and a charge to cost of sales for shrinkage . shrinkage is calculated as a percentage of sales from the last physical inventory date . estimates are based on both historical experience as well as recent physical inventory results . physical store inventory counts are taken on an annual basis and have supported our shrinkage estimates . if our estimate of shrinkage , on a cost basis , were to increase or decrease 0.5 % as a percentage of dsw inc. net sales , it would result in a decrease or increase of approximately $ 5.1 million to operating profit . investments . our investments are valued using a market-based approach using level 1 , 2 and 3 inputs . we evaluate our investments for impairment and whether impairment is other-than-temporary . based on the nature of the impairment ( s ) , we would record temporary impairments as unrealized losses in other comprehensive loss or other-than-temporary impairments in earnings . the investment is written down to its current market value at the time the impairment is deemed to have occurred . in determining whether impairment has occurred , we review information about the underlying investment that is publicly available and assess our ability to hold the securities for the foreseeable future . we believe that our fair value estimates are reasonable . asset impairment and long-lived assets . we periodically evaluate the carrying amount of our long-lived assets , primarily property and equipment , and finite lived intangible assets when events and circumstances warrant such a review to ascertain if any assets have been impaired . the carrying amount of a long-lived asset or asset group is considered impaired when the carrying value of the asset or asset group exceeds the expected future cash flows from the asset . our reviews are conducted at the lowest identifiable level , which includes a store . the impairment loss recognized is the excess of the carrying amount of the asset or asset group over its fair value , based on projected discounted cash flows using a discount rate determined by management . any impairment loss realized is generally included in cost of sales . we believe that the long-lived assets ' carrying amounts and useful lives are appropriate . to the extent these future projections or our strategies change , the conclusion regarding impairment may differ from our current estimates . customer loyalty program . we maintain a customer loyalty program for dsw in which program members earn reward certificates that result in discounts on future purchases . upon reaching the target-earned threshold , the members receive reward certificates for these discounts , which expire three months after being issued . we accrue the anticipated redemptions of the discount earned at the time of the initial purchase . to estimate these costs , we make assumptions related to customer purchase levels and redemption rates based on historical experience . if our redemption rate were to increase or decrease by 5 % , it would result in an increase or a decrease of approximately $ 1.6 million to the reserve at year end . 28 policy judgments and estimates effect if actual results differ from assumptions income taxes . we determine the aggregate amount of income tax expense to accrue and the amount which will be currently payable based upon tax statutes of each jurisdiction we do business in . deferred tax assets and liabilities , as a result of these timing differences , are reflected on our balance sheet for temporary differences that will reverse in subsequent years . a valuation allowance is established against deferred tax assets when it is more likely than not that some or all of the deferred tax assets will not be realized . in making these estimates , we adjust income based on a determination of generally accepted accounting principles for items that are treated differently by the applicable taxing authorities . if our management had made these determinations on a different basis , our tax expense , assets and liabilities could be different . although we believe that our estimates are reasonable , actual results could differ from these estimates resulting in an outcome that may be materially different from that which is reflected in our consolidated financial statements . stock-based compensation . we recognize compensation expense for stock option awards and time-based restricted stock awards on a straight-line basis over the requisite service period of the award for the awards that actually vest . we use the black-scholes pricing model to value stock-based compensation expense , which requires us to estimate the expected term of the stock options and expected future stock price volatility over the expected term . if our expected term estimate were to increase or decrease by one year , it would not materially impact our operating profit . exit and disposal obligations . we record a
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2,675 | we have observed the following trends related to our profitability in recent years : our profitability improved in 2019 as compared to 2018 due to higher revenue as well as the effects of cost savings and efficiency initiatives we have undertaken . we expect to continue to undertake efforts intended to improve the efficiency of operations . if we are able to continue our efficiency efforts such that our rate of revenue growth exceeds our expense growth rate , we anticipate overall profitability improvement in 2020 as compared to 2019 . 22 network bandwidth costs represent a significant portion of our cost of revenue . historically , we have been able to mitigate increases in these costs by reducing our network bandwidth costs per unit and investing in internal-use software development to improve the performance and efficiency of our network . our total bandwidth costs may increase in the future as a result of expected higher traffic levels and serving more traffic from higher cost regions . we will need to continue to effectively manage our bandwidth costs to maintain current levels of profitability . co-location costs are also a significant portion of our cost of revenue . by improving our internal-use software and managing our hardware deployments to enable us to use servers more efficiently , we have been able to manage the growth of co-location costs . we expect to continue to scale our network in the future and will need to continue to effectively manage our co-location costs to maintain current levels of profitability . payroll and related costs stabilized in 2019 as compared to prior years . we expect to continue to manage our headcount and payroll costs in the future to focus investments on certain areas of the business while maintaining efficient operations in others . we expect to continue to hire employees in support of our strategic initiatives , but do not expect overall headcount to increase significantly in 2020. depreciation and amortization expense related to our network equipment decreased during 2019 as compared to 2018. we implemented software and hardware initiatives to manage our global network more efficiently ; as a result , the expected average useful life of our network assets , primarily servers , increased from four years to five years , effective january 1 , 2019. we expect to continue to invest in our network in 2020 , which will increase our capital expenditures and resulting depreciation expense . we report our revenue in two divisions : the web division and the media and carrier division . revenue by division is a customer-focused reporting view that reflects revenue from customers that are managed by the division . as the purchasing patterns and required account expertise of customers change over time , we may reassign a customer from one division to another . in 2019 , we reassigned some of our customers from the media and carrier division to the web division and revised historical results in order to reflect the most recent categorization and to provide a comparable view for all periods presented . 23 results of operations the following sets forth , as a percentage of revenue , consolidated statements of income data for the years indicated : replace_table_token_2_th revenue revenue during the periods presented is as follows ( in thousands ) : replace_table_token_3_th the increase in our revenue in 2019 as compared to 2018 was primarily the result of higher media traffic volumes , including from our large internet platform customers , and continued strong growth in sales of our cloud security solutions . cloud security solutions revenue for the year ended december 31 , 2019 was $ 848.7 million , compared to $ 658.7 million for the year ended december 31 , 2018 , which represents a 28.8 % increase . the increase in our revenue in 2018 as compared to 2017 was primarily the result of higher media traffic volumes , increased sales of our new product offerings and continued strong growth in our cloud security solutions . cloud security solutions revenue for the year ended december 31 , 2018 was $ 658.7 million , compared to $ 487.6 million for the year ended december 31 , 2017 , which represents a 35.1 % increase . the increase in web division revenue for 2019 as compared to 2018 was primarily the result of increased sales of both new and existing cloud security solutions to this customer base . the increase in web division revenue in 2018 as compared to 2017 was due to increased purchases of new solutions and upgrades to existing services by this customer base . increased sales of our cloud security solutions to web division customers , in particular our kona site defender , prolexic and managed security solutions , as well as our new bot manager offering were a principal contributor to our overall revenue growth in 2018 . 24 the increase in media and carrier division revenue for 2019 as compared to 2018 , as well as 2018 as compared to 2017 , was primarily the result of increased customer traffic volumes from video delivery and gaming customers and sales of cloud security solutions to this customer base . revenue derived in the u.s. and internationally during the periods presented is as follows ( in thousands ) : replace_table_token_4_th the u.s. growth rate for 2019 was negatively impacted by a reduction in prices paid by some of our customers , partially offset by an increase in revenue from our large internet platform customers , as these customers are based in the u.s. for the year ended december 31 , 2019 , approximately 41 % of our revenue was derived from our operations located outside of the u.s. , compared to 38 % for the year ended december 31 , 2018 , and 34 % for the year ended december 31 , 2017 . story_separator_special_tag the non-gaap financial measures do not replace the presentation of our gaap financial measures and should only be used as a supplement to , not as a substitute for , our financial results presented in accordance with gaap . the non-gaap adjustments , and our basis for excluding them from non-gaap financial measures , are outlined below : amortization of acquired intangible assets – we have incurred amortization of intangible assets , included in our gaap financial statements , related to various acquisitions we have made . the amount of an acquisition 's purchase price allocated to intangible assets and term of its related amortization can vary significantly and are unique to each acquisition ; therefore , we exclude amortization of acquired intangible assets from our non-gaap financial measures to provide investors with a consistent basis for comparing pre- and post-acquisition operating results . stock-based compensation and amortization of capitalized stock-based compensation – although stock-based compensation is an important aspect of the compensation paid to our employees , the grant date fair value varies based on the stock price at the time of grant , varying valuation methodologies , subjective assumptions and the variety of award types . this makes the comparison of our current financial results to previous and future periods difficult to interpret ; therefore , we believe it is useful to exclude stock-based compensation and amortization of capitalized stock-based compensation from our non-gaap financial measures in order to highlight the performance of our core business and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies . acquisition-related costs – acquisition-related costs include transaction fees , advisory fees , due diligence costs and other direct costs associated with strategic activities . in addition , subsequent adjustments to our initial estimated amounts of contingent consideration and indemnification associated with specific acquisitions are included within acquisition-related costs . these amounts are impacted by the timing and size of the acquisitions . we exclude acquisition-related costs from our non-gaap financial measures to provide a useful comparison of our operating results to prior periods and to our peer companies because such amounts vary significantly based on the magnitude of our acquisition transactions and do not reflect our core operations . 31 restructuring charges – we have incurred restructuring charges that are included in our gaap financial statements , primarily related to workforce reductions and estimated costs of exiting facility lease commitments . we exclude these items from our non-gaap financial measures when evaluating our continuing business performance as such items vary significantly based on the magnitude of the restructuring action and do not reflect expected future operating expenses . in addition , these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of our business . amortization of debt discount and issuance costs and amortization of capitalized interest expense – in august 2019 , we issued $ 1,150 million of convertible senior notes due 2027 with a coupon interest rate of 0.375 % . in may 2018 , we issued $ 1,150 million of convertible senior notes due 2025 with a coupon interest rate of 0.125 % . in february 2014 , we issued $ 690 million of convertible senior notes due 2019 with a coupon interest rate of 0 % . the imputed interest rates of these convertible senior notes were 3.10 % , 4.26 % and 3.20 % , respectively . this is a result of the debt discounts recorded for the conversion features that are required to be separately accounted for as equity under gaap , thereby reducing the carrying values of the convertible debt instruments . the debt discounts are amortized as interest expense together with the issuance costs of the debt . the interest expense excluded from our non-gaap results is comprised of these non-cash components and is excluded from management 's assessment of our operating performance because management believes the non-cash expense is not representative of ongoing operating performance . gains and losses on investments – we have recorded gains and losses from the disposition , changes to fair value and impairment of certain investments . we believe excluding these amounts from our non-gaap financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operating performance . legal and stockholder matter costs – we have incurred losses related to the settlement of legal matters and costs from professional service providers related to a non-routine stockholder matter . we believe excluding these amounts from our non-gaap financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations . endowment of akamai foundation – during the second quarter of 2018 , we incurred a charge to endow the akamai foundation . we believe excluding this amount from non-gaap financial measures is useful to investors as this one-time event is not representative of our core business operations . transformation costs – we have incurred professional services fees associated with internal transformation programs designed to improve operating margins and that are part of a planned program intended to significantly change the manner in which business is conducted . we believe excluding these amounts from our non-gaap financial measures is useful to investors as the types of events and activities giving rise to them occur infrequently and are not representative of our core business operations and ongoing operating performance . income and losses from equity method investment – we record income or losses on our share of earnings and losses of our equity method investment . we exclude such income and losses because we lack control over the operations of the investment and the related income and losses are not representative of our core business operations . income tax effect of non-gaap adjustments and certain discrete tax items – the non-gaap adjustments described above are reported on a
| cash used in investing activities replace_table_token_20_th the increase in cash used in investing activities in 2019 as compared to 2018 was primarily driven by an increase in purchases of marketable securities with the proceeds from our august 2019 issuance of convertible senior notes , cash paid for acquired companies in 2019 , increased capital expenditures and cash invested in an equity method investment . the increase in cash used in investing activities in 2018 as compared to 2017 was driven by marketable securities activities . in 2017 , we did not reinvest all proceeds from sales and maturities of our marketable securities which created a cash inflow in that year . the increase in cash used in investing activities in 2018 as compared to 2017 was partially offset by the cash paid in 2017 for the acquisitions of nominum , inc. and soasta , inc. 36 cash ( used in ) provided by financing activities replace_table_token_21_th the change in net cash used in or provided by financing activities in 2019 as compared to 2018 was due to our repayment of $ 690 million of aggregate principal of convertible notes in 2019 , partially offset by a decrease in shares repurchased under our repurchase programs . the change in net cash used in or provided by financing activities during 2018 as compared to 2017 was the result of our issuance of convertible senior notes issued in may 2018 and related note hedge and warrant transactions . the increase was partially offset by an increase in shares repurchased under our repurchase programs . in february 2016 , the board of directors authorized a $ 1.0 billion share repurchase program that was effective from february 2016 through december 2018. in march 2018 , the board of directors increased the share repurchase authorization by $ 416.7 million , such that the amount that was authorized and available for repurchase in 2018 was $ 750.0 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.
```cash used in investing activities replace_table_token_20_th the increase in cash used in investing activities in 2019 as compared to 2018 was primarily driven by an increase in purchases of marketable securities with the proceeds from our august 2019 issuance of convertible senior notes , cash paid for acquired companies in 2019 , increased capital expenditures and cash invested in an equity method investment . the increase in cash used in investing activities in 2018 as compared to 2017 was driven by marketable securities activities . in 2017 , we did not reinvest all proceeds from sales and maturities of our marketable securities which created a cash inflow in that year . the increase in cash used in investing activities in 2018 as compared to 2017 was partially offset by the cash paid in 2017 for the acquisitions of nominum , inc. and soasta , inc. 36 cash ( used in ) provided by financing activities replace_table_token_21_th the change in net cash used in or provided by financing activities in 2019 as compared to 2018 was due to our repayment of $ 690 million of aggregate principal of convertible notes in 2019 , partially offset by a decrease in shares repurchased under our repurchase programs . the change in net cash used in or provided by financing activities during 2018 as compared to 2017 was the result of our issuance of convertible senior notes issued in may 2018 and related note hedge and warrant transactions . the increase was partially offset by an increase in shares repurchased under our repurchase programs . in february 2016 , the board of directors authorized a $ 1.0 billion share repurchase program that was effective from february 2016 through december 2018. in march 2018 , the board of directors increased the share repurchase authorization by $ 416.7 million , such that the amount that was authorized and available for repurchase in 2018 was $ 750.0 million .
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Suspicious Activity Report : we have observed the following trends related to our profitability in recent years : our profitability improved in 2019 as compared to 2018 due to higher revenue as well as the effects of cost savings and efficiency initiatives we have undertaken . we expect to continue to undertake efforts intended to improve the efficiency of operations . if we are able to continue our efficiency efforts such that our rate of revenue growth exceeds our expense growth rate , we anticipate overall profitability improvement in 2020 as compared to 2019 . 22 network bandwidth costs represent a significant portion of our cost of revenue . historically , we have been able to mitigate increases in these costs by reducing our network bandwidth costs per unit and investing in internal-use software development to improve the performance and efficiency of our network . our total bandwidth costs may increase in the future as a result of expected higher traffic levels and serving more traffic from higher cost regions . we will need to continue to effectively manage our bandwidth costs to maintain current levels of profitability . co-location costs are also a significant portion of our cost of revenue . by improving our internal-use software and managing our hardware deployments to enable us to use servers more efficiently , we have been able to manage the growth of co-location costs . we expect to continue to scale our network in the future and will need to continue to effectively manage our co-location costs to maintain current levels of profitability . payroll and related costs stabilized in 2019 as compared to prior years . we expect to continue to manage our headcount and payroll costs in the future to focus investments on certain areas of the business while maintaining efficient operations in others . we expect to continue to hire employees in support of our strategic initiatives , but do not expect overall headcount to increase significantly in 2020. depreciation and amortization expense related to our network equipment decreased during 2019 as compared to 2018. we implemented software and hardware initiatives to manage our global network more efficiently ; as a result , the expected average useful life of our network assets , primarily servers , increased from four years to five years , effective january 1 , 2019. we expect to continue to invest in our network in 2020 , which will increase our capital expenditures and resulting depreciation expense . we report our revenue in two divisions : the web division and the media and carrier division . revenue by division is a customer-focused reporting view that reflects revenue from customers that are managed by the division . as the purchasing patterns and required account expertise of customers change over time , we may reassign a customer from one division to another . in 2019 , we reassigned some of our customers from the media and carrier division to the web division and revised historical results in order to reflect the most recent categorization and to provide a comparable view for all periods presented . 23 results of operations the following sets forth , as a percentage of revenue , consolidated statements of income data for the years indicated : replace_table_token_2_th revenue revenue during the periods presented is as follows ( in thousands ) : replace_table_token_3_th the increase in our revenue in 2019 as compared to 2018 was primarily the result of higher media traffic volumes , including from our large internet platform customers , and continued strong growth in sales of our cloud security solutions . cloud security solutions revenue for the year ended december 31 , 2019 was $ 848.7 million , compared to $ 658.7 million for the year ended december 31 , 2018 , which represents a 28.8 % increase . the increase in our revenue in 2018 as compared to 2017 was primarily the result of higher media traffic volumes , increased sales of our new product offerings and continued strong growth in our cloud security solutions . cloud security solutions revenue for the year ended december 31 , 2018 was $ 658.7 million , compared to $ 487.6 million for the year ended december 31 , 2017 , which represents a 35.1 % increase . the increase in web division revenue for 2019 as compared to 2018 was primarily the result of increased sales of both new and existing cloud security solutions to this customer base . the increase in web division revenue in 2018 as compared to 2017 was due to increased purchases of new solutions and upgrades to existing services by this customer base . increased sales of our cloud security solutions to web division customers , in particular our kona site defender , prolexic and managed security solutions , as well as our new bot manager offering were a principal contributor to our overall revenue growth in 2018 . 24 the increase in media and carrier division revenue for 2019 as compared to 2018 , as well as 2018 as compared to 2017 , was primarily the result of increased customer traffic volumes from video delivery and gaming customers and sales of cloud security solutions to this customer base . revenue derived in the u.s. and internationally during the periods presented is as follows ( in thousands ) : replace_table_token_4_th the u.s. growth rate for 2019 was negatively impacted by a reduction in prices paid by some of our customers , partially offset by an increase in revenue from our large internet platform customers , as these customers are based in the u.s. for the year ended december 31 , 2019 , approximately 41 % of our revenue was derived from our operations located outside of the u.s. , compared to 38 % for the year ended december 31 , 2018 , and 34 % for the year ended december 31 , 2017 . story_separator_special_tag the non-gaap financial measures do not replace the presentation of our gaap financial measures and should only be used as a supplement to , not as a substitute for , our financial results presented in accordance with gaap . the non-gaap adjustments , and our basis for excluding them from non-gaap financial measures , are outlined below : amortization of acquired intangible assets – we have incurred amortization of intangible assets , included in our gaap financial statements , related to various acquisitions we have made . the amount of an acquisition 's purchase price allocated to intangible assets and term of its related amortization can vary significantly and are unique to each acquisition ; therefore , we exclude amortization of acquired intangible assets from our non-gaap financial measures to provide investors with a consistent basis for comparing pre- and post-acquisition operating results . stock-based compensation and amortization of capitalized stock-based compensation – although stock-based compensation is an important aspect of the compensation paid to our employees , the grant date fair value varies based on the stock price at the time of grant , varying valuation methodologies , subjective assumptions and the variety of award types . this makes the comparison of our current financial results to previous and future periods difficult to interpret ; therefore , we believe it is useful to exclude stock-based compensation and amortization of capitalized stock-based compensation from our non-gaap financial measures in order to highlight the performance of our core business and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies . acquisition-related costs – acquisition-related costs include transaction fees , advisory fees , due diligence costs and other direct costs associated with strategic activities . in addition , subsequent adjustments to our initial estimated amounts of contingent consideration and indemnification associated with specific acquisitions are included within acquisition-related costs . these amounts are impacted by the timing and size of the acquisitions . we exclude acquisition-related costs from our non-gaap financial measures to provide a useful comparison of our operating results to prior periods and to our peer companies because such amounts vary significantly based on the magnitude of our acquisition transactions and do not reflect our core operations . 31 restructuring charges – we have incurred restructuring charges that are included in our gaap financial statements , primarily related to workforce reductions and estimated costs of exiting facility lease commitments . we exclude these items from our non-gaap financial measures when evaluating our continuing business performance as such items vary significantly based on the magnitude of the restructuring action and do not reflect expected future operating expenses . in addition , these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of our business . amortization of debt discount and issuance costs and amortization of capitalized interest expense – in august 2019 , we issued $ 1,150 million of convertible senior notes due 2027 with a coupon interest rate of 0.375 % . in may 2018 , we issued $ 1,150 million of convertible senior notes due 2025 with a coupon interest rate of 0.125 % . in february 2014 , we issued $ 690 million of convertible senior notes due 2019 with a coupon interest rate of 0 % . the imputed interest rates of these convertible senior notes were 3.10 % , 4.26 % and 3.20 % , respectively . this is a result of the debt discounts recorded for the conversion features that are required to be separately accounted for as equity under gaap , thereby reducing the carrying values of the convertible debt instruments . the debt discounts are amortized as interest expense together with the issuance costs of the debt . the interest expense excluded from our non-gaap results is comprised of these non-cash components and is excluded from management 's assessment of our operating performance because management believes the non-cash expense is not representative of ongoing operating performance . gains and losses on investments – we have recorded gains and losses from the disposition , changes to fair value and impairment of certain investments . we believe excluding these amounts from our non-gaap financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operating performance . legal and stockholder matter costs – we have incurred losses related to the settlement of legal matters and costs from professional service providers related to a non-routine stockholder matter . we believe excluding these amounts from our non-gaap financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations . endowment of akamai foundation – during the second quarter of 2018 , we incurred a charge to endow the akamai foundation . we believe excluding this amount from non-gaap financial measures is useful to investors as this one-time event is not representative of our core business operations . transformation costs – we have incurred professional services fees associated with internal transformation programs designed to improve operating margins and that are part of a planned program intended to significantly change the manner in which business is conducted . we believe excluding these amounts from our non-gaap financial measures is useful to investors as the types of events and activities giving rise to them occur infrequently and are not representative of our core business operations and ongoing operating performance . income and losses from equity method investment – we record income or losses on our share of earnings and losses of our equity method investment . we exclude such income and losses because we lack control over the operations of the investment and the related income and losses are not representative of our core business operations . income tax effect of non-gaap adjustments and certain discrete tax items – the non-gaap adjustments described above are reported on a
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2,676 | in addition , as a result of our acquisition of coen energy in 2017 , our customers include businesses engaged in the development of natural gas resources in pennsylvania and surrounding states . in our natural gas segment we purchase natural gas from natural gas producers and trading companies and sell and distribute natural gas to approximately 15,000 commercial and industrial customer locations across 13 states in the northeast and mid-atlantic united states . 32 table of contents our materials handling segment is generally conducted under multi-year agreements as either fee-based activities or as leasing arrangements when the right to use an identified asset ( such as storage tanks or storage locations ) has been conveyed in the agreement . we offload , store and or prepare for delivery a variety of customer-owned products , including asphalt , clay slurry , salt , gypsum , crude oil , residual fuel oil , coal , petroleum coke , caustic soda , tallow , pulp and heavy equipment . historically , a majority of our materials handling activity has generated qualified income . our other operations segment primarily includes the marketing and distribution of coal conducted in our portland , maine terminal , and commercial trucking activity conducted by our canadian subsidiary . we take title to the products we sell in our refined products and natural gas segments . in order to manage our exposure to commodity price fluctuations , we use derivatives and forward contracts to maintain a position that is substantially balanced between product purchases and product sales . we do not take title to any of the products in our materials handling segment . our foreign sales , primarily sales of refined products and natural gas to customers in canada , were $ 185.1 million , $ 255.5 million and $ 290.4 million for the years ended december 31 , 2020 , 2019 and 2018 , respectively . long-lived assets ( exclusive of intangible and other assets , net , and goodwill ) classified by geographic location were as follows : replace_table_token_2_th covid-19 the global outbreak of the novel coronavirus ( covid-19 ) was declared a pandemic by the world health organization and a national emergency by the u.s. government in march 2020 and has negatively affected the u.s. and global economy , disrupted global supply chains , resulted in significant travel and transport restrictions , including mandated closures and orders to “ shelter-in-place , ” and created significant disruption of the financial markets . beginning in the quarterly period ended march 31 , 2020 , a wide array of sectors including but not limited to the energy , transportation , manufacturing and commercial , along with global economic conditions generally , have been significantly disrupted by the pandemic . a growing number of the partnership 's customers in these industries have experienced substantial reductions in their operations due to travel restrictions as well as the extended shutdown of various businesses in affected regions . furthermore , government measures have also led to a precipitous decline in fuel prices in response to concerns about demand for fuel . the pandemic and associated impacts on economic activity had an adverse effect on the partnership 's operating results for the year ended december 31 , 2020 , specifically , the partnership has seen a decline in demand and related sales volume as large sectors of the global economy have been adversely impacted by the crisis . in response to these developments , the partnership took swift action to ensure the safety of employees and other stakeholders , and initiated a number of initiatives relating to cost reduction , liquidity and operating efficiencies . the partnership makes estimates and assumptions that affect the reported amounts on these consolidated financial statements and accompanying notes as of the date of the financial statements . the partnership assessed accounting estimates that require consideration of forecasted financial information , including , but not limited to , the allowance for credit losses , the carrying value of goodwill , intangible assets , and other long-lived assets . this assessment was conducted in the context of information reasonably available to the partnership , as well as consideration of the future potential impacts of covid-19 on the partnership 's business as of december 31 , 2020. at this time , the partnership is unable to predict with specificity the ultimate impact of the crisis , as it will depend on the magnitude , severity and duration of the pandemic , as well as how quickly , and to what extent , normal economic and operating conditions resume on a sustainable basis globally . accordingly , if the impact is more severe or longer in duration than the partnership has assumed , such impact could potentially result in impairments and increases in credit allowances . idr reset election on february 11 , 2021 , sprague holdings provided notice to partnership that sprague holdings had made an idr reset election , as defined in our partnership agreement . pursuant to the idr reset election , sprague holdings will relinquish the 33 table of contents right to receive incentive distribution payments based on the minimum quarterly and target cash distribution levels set at the time of the partnership 's initial public offering and the partnership will issue 3,107,248 common units to sprague holdings . pursuant to the idr reset election , the minimum quarterly distribution amount will be increased from $ 0.4125 per common unit per quarter to $ 0.6675 per common unit per quarter and the levels at which the incentive distribution rights participate in distributions will be reset at higher amounts based on current common unit distribution rates and a formula in our partnership agreement . the idr reset election is expected to be consummated on march 5 , 2021. upon consummation of the idr reset election , sprague holdings will own 16,058,484 common units , representing 61.6 % of the limited partner interest in the partnership . story_separator_special_tag in addition , technology-driven changes such as automated fueling or the use of electric fleets can impact the fuel and manual support required at these operations . consequently , we may experience variability in the revenue we receive from this business segment . we can also see variability in the commercial segment such as in the construction industry , at times related to the increase or decrease in fracking and natural gas production , leading to further volatility . absolute price increase or decreases can impact demand and credit risk . commodity prices in both our refined products and natural gas segments can vary sharply due to market conditions . as commodity product prices rise , we can experience reduced demand as customers engage in conservation efforts , are exposed to a higher level of credit risk to meet customer requirements , and incur increased working capital costs for holding inventory and accounts receivable . in a lower commodity price environment our customers are generally less prone to engage in conservation efforts , we experience lower credit risk , and working capital costs to hold inventory and finance accounts receivable . the impact of the market structure on our hedging strategy . we typically hedge our exposure to commodity price moves with nymex futures contracts and `` over the counter `` or `` otc `` swaps . in markets where futures prices are higher than spot prices ( typically referred to as contango ) , we generate positive margins when rolling our inventory hedges to successive months . in markets where futures prices are lower than spot prices ( typically referred to as backwardation ) , we realize losses when rolling our inventory hedges to successive months . in backwardated markets , we operate with lower inventory levels and , as a result , have reduced hedging and financing requirements , thereby limiting losses . energy efficiency , new technology and alternative fuels could reduce demand for our products . increased conservation and technological advances have adversely affected the demand for heating oil and residual fuel oil . consumption of residual fuel oil , in particular , has steadily declined in recent years , primarily due to customers converting from other fuels to natural gas , weak industrial demand and tightening of environmental regulations . 37 table of contents use of natural gas is expected to continue to displace other fuels , which we believe will favorably impact our natural gas volumes and margins . interest rates could rise . interest rates could be higher than current levels , causing our financing costs to increase accordingly . during the 24 months ended december 31 , 2020 , we hedged approximately 47 % of our floating-rate debt with fixed-for-floating interest rate swaps . although higher interest rates could limit our ability to raise funds in the debt capital markets , we expect to remain competitive with respect to acquisitions and capital projects , as our competitors would face similar circumstances . as with other yield-oriented securities , our unit price is impacted by the level of our cash distributions and implied distribution yield . the distribution yield is often used by investors to compare and rank related yield-oriented securities for investment decision-making purposes . therefore , changes in interest rates , either positive or negative , may affect the yield requirements of investors who invest in our common units , and a rising interest rate environment could have an adverse impact on our unit price and our ability to issue additional equity to make acquisitions , reduce debt or for other purposes . 38 table of contents results of operations overview our current and future results of operations may not be comparable to our historical results of operations . our results of operations may be impacted by , among other things , swings in commodity prices , primarily in refined products and natural gas , and acquisitions or dispositions . we use economic hedges to minimize the impact of changing prices on refined products and natural gas inventory . as a result , commodity price increases at the end of a year can create lower gross margins as the economic hedges , or derivatives , for such inventory may lose value , whereas an increase in the value of such inventory is disregarded for gaap financial reporting purposes and recorded at the lower of cost or net realizable value . please read “ how management evaluates our results of operations . ” the following tables set forth information regarding our results of operations for the periods presented : replace_table_token_3_th 39 table of contents reconciliation to adjusted gross margin , ebitda and adjusted ebitda the following table sets forth a reconciliation of our consolidated operating income to our total adjusted gross margin , a non-gaap measure , for the periods presented and a reconciliation of our consolidated net income to ebitda and adjusted ebitda , non-gaap measures , for the periods presented . see above `` management 's discussion and analysis of financial condition and results of operations - ebitda and adjusted ebitda `` of this report . the table below also presents information on weather conditions for the periods presented . replace_table_token_4_th 40 table of contents ( 1 ) inventory is valued at the lower of cost or net realizable value . the adjustment related to change in unrealized gain on inventory which is not included in net income ( loss ) , represents the estimated difference between inventory valued at the lower of cost or net realizable value as compared to market values . the fair value of the derivatives we use to economically hedge our inventory declines or appreciates in value as the value of the underlying inventory appreciates or declines , which creates unrealized hedging losses ( gains ) with respect to the derivatives that are included in net income ( loss ) . ( 2 ) represents our estimate of the change in fair value of the
| cash flows replace_table_token_11_th operating activities net cash provided by operating activities for the year ended december 31 , 2020 was $ 154.5 million and was favorably impacted by net income of $ 33.8 million , a decrease of $ 9.1 million in derivative instruments as a result of the increase in commodity prices in refined products during the year , a decrease of $ 88.1 million in accounts receivable driven by a combination of lower sales prices and volumes , a decrease of $ 37.7 million in inventories largely due to reductions in the cost of inventory purchases , as well as gain on the sale of the mount vernon terminal of $ 8.1 million included in the gain on sale of assets and insurance recoveries of $ 10.0 million . cash flows from operations were negatively impacted as a result of a reduction of $ 52.8 million in accounts payable and accrued liabilities primarily relating to the timing of invoice payments for product purchases . net cash used in operating activities for the year ended december 31 , 2019 was $ 65.4 million and was favorably impacted by net income of $ 31.3 million , a decrease of $ 48.1 million in derivative instruments as a result of the increase in commodity prices in refined products during the year . cash flows from operations were negatively impacted by an increase of 46 table of contents $ 11.9 million in accounts receivable , primarily related to higher commodity prices , an increase of $ 33.7 million in inventory , a decrease of $ 85.7 million in accounts payable and accrued liabilities , as well as an increase of $ 50.2 million in other assets due to year end timing .
| 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_11_th operating activities net cash provided by operating activities for the year ended december 31 , 2020 was $ 154.5 million and was favorably impacted by net income of $ 33.8 million , a decrease of $ 9.1 million in derivative instruments as a result of the increase in commodity prices in refined products during the year , a decrease of $ 88.1 million in accounts receivable driven by a combination of lower sales prices and volumes , a decrease of $ 37.7 million in inventories largely due to reductions in the cost of inventory purchases , as well as gain on the sale of the mount vernon terminal of $ 8.1 million included in the gain on sale of assets and insurance recoveries of $ 10.0 million . cash flows from operations were negatively impacted as a result of a reduction of $ 52.8 million in accounts payable and accrued liabilities primarily relating to the timing of invoice payments for product purchases . net cash used in operating activities for the year ended december 31 , 2019 was $ 65.4 million and was favorably impacted by net income of $ 31.3 million , a decrease of $ 48.1 million in derivative instruments as a result of the increase in commodity prices in refined products during the year . cash flows from operations were negatively impacted by an increase of 46 table of contents $ 11.9 million in accounts receivable , primarily related to higher commodity prices , an increase of $ 33.7 million in inventory , a decrease of $ 85.7 million in accounts payable and accrued liabilities , as well as an increase of $ 50.2 million in other assets due to year end timing .
```
Suspicious Activity Report : in addition , as a result of our acquisition of coen energy in 2017 , our customers include businesses engaged in the development of natural gas resources in pennsylvania and surrounding states . in our natural gas segment we purchase natural gas from natural gas producers and trading companies and sell and distribute natural gas to approximately 15,000 commercial and industrial customer locations across 13 states in the northeast and mid-atlantic united states . 32 table of contents our materials handling segment is generally conducted under multi-year agreements as either fee-based activities or as leasing arrangements when the right to use an identified asset ( such as storage tanks or storage locations ) has been conveyed in the agreement . we offload , store and or prepare for delivery a variety of customer-owned products , including asphalt , clay slurry , salt , gypsum , crude oil , residual fuel oil , coal , petroleum coke , caustic soda , tallow , pulp and heavy equipment . historically , a majority of our materials handling activity has generated qualified income . our other operations segment primarily includes the marketing and distribution of coal conducted in our portland , maine terminal , and commercial trucking activity conducted by our canadian subsidiary . we take title to the products we sell in our refined products and natural gas segments . in order to manage our exposure to commodity price fluctuations , we use derivatives and forward contracts to maintain a position that is substantially balanced between product purchases and product sales . we do not take title to any of the products in our materials handling segment . our foreign sales , primarily sales of refined products and natural gas to customers in canada , were $ 185.1 million , $ 255.5 million and $ 290.4 million for the years ended december 31 , 2020 , 2019 and 2018 , respectively . long-lived assets ( exclusive of intangible and other assets , net , and goodwill ) classified by geographic location were as follows : replace_table_token_2_th covid-19 the global outbreak of the novel coronavirus ( covid-19 ) was declared a pandemic by the world health organization and a national emergency by the u.s. government in march 2020 and has negatively affected the u.s. and global economy , disrupted global supply chains , resulted in significant travel and transport restrictions , including mandated closures and orders to “ shelter-in-place , ” and created significant disruption of the financial markets . beginning in the quarterly period ended march 31 , 2020 , a wide array of sectors including but not limited to the energy , transportation , manufacturing and commercial , along with global economic conditions generally , have been significantly disrupted by the pandemic . a growing number of the partnership 's customers in these industries have experienced substantial reductions in their operations due to travel restrictions as well as the extended shutdown of various businesses in affected regions . furthermore , government measures have also led to a precipitous decline in fuel prices in response to concerns about demand for fuel . the pandemic and associated impacts on economic activity had an adverse effect on the partnership 's operating results for the year ended december 31 , 2020 , specifically , the partnership has seen a decline in demand and related sales volume as large sectors of the global economy have been adversely impacted by the crisis . in response to these developments , the partnership took swift action to ensure the safety of employees and other stakeholders , and initiated a number of initiatives relating to cost reduction , liquidity and operating efficiencies . the partnership makes estimates and assumptions that affect the reported amounts on these consolidated financial statements and accompanying notes as of the date of the financial statements . the partnership assessed accounting estimates that require consideration of forecasted financial information , including , but not limited to , the allowance for credit losses , the carrying value of goodwill , intangible assets , and other long-lived assets . this assessment was conducted in the context of information reasonably available to the partnership , as well as consideration of the future potential impacts of covid-19 on the partnership 's business as of december 31 , 2020. at this time , the partnership is unable to predict with specificity the ultimate impact of the crisis , as it will depend on the magnitude , severity and duration of the pandemic , as well as how quickly , and to what extent , normal economic and operating conditions resume on a sustainable basis globally . accordingly , if the impact is more severe or longer in duration than the partnership has assumed , such impact could potentially result in impairments and increases in credit allowances . idr reset election on february 11 , 2021 , sprague holdings provided notice to partnership that sprague holdings had made an idr reset election , as defined in our partnership agreement . pursuant to the idr reset election , sprague holdings will relinquish the 33 table of contents right to receive incentive distribution payments based on the minimum quarterly and target cash distribution levels set at the time of the partnership 's initial public offering and the partnership will issue 3,107,248 common units to sprague holdings . pursuant to the idr reset election , the minimum quarterly distribution amount will be increased from $ 0.4125 per common unit per quarter to $ 0.6675 per common unit per quarter and the levels at which the incentive distribution rights participate in distributions will be reset at higher amounts based on current common unit distribution rates and a formula in our partnership agreement . the idr reset election is expected to be consummated on march 5 , 2021. upon consummation of the idr reset election , sprague holdings will own 16,058,484 common units , representing 61.6 % of the limited partner interest in the partnership . story_separator_special_tag in addition , technology-driven changes such as automated fueling or the use of electric fleets can impact the fuel and manual support required at these operations . consequently , we may experience variability in the revenue we receive from this business segment . we can also see variability in the commercial segment such as in the construction industry , at times related to the increase or decrease in fracking and natural gas production , leading to further volatility . absolute price increase or decreases can impact demand and credit risk . commodity prices in both our refined products and natural gas segments can vary sharply due to market conditions . as commodity product prices rise , we can experience reduced demand as customers engage in conservation efforts , are exposed to a higher level of credit risk to meet customer requirements , and incur increased working capital costs for holding inventory and accounts receivable . in a lower commodity price environment our customers are generally less prone to engage in conservation efforts , we experience lower credit risk , and working capital costs to hold inventory and finance accounts receivable . the impact of the market structure on our hedging strategy . we typically hedge our exposure to commodity price moves with nymex futures contracts and `` over the counter `` or `` otc `` swaps . in markets where futures prices are higher than spot prices ( typically referred to as contango ) , we generate positive margins when rolling our inventory hedges to successive months . in markets where futures prices are lower than spot prices ( typically referred to as backwardation ) , we realize losses when rolling our inventory hedges to successive months . in backwardated markets , we operate with lower inventory levels and , as a result , have reduced hedging and financing requirements , thereby limiting losses . energy efficiency , new technology and alternative fuels could reduce demand for our products . increased conservation and technological advances have adversely affected the demand for heating oil and residual fuel oil . consumption of residual fuel oil , in particular , has steadily declined in recent years , primarily due to customers converting from other fuels to natural gas , weak industrial demand and tightening of environmental regulations . 37 table of contents use of natural gas is expected to continue to displace other fuels , which we believe will favorably impact our natural gas volumes and margins . interest rates could rise . interest rates could be higher than current levels , causing our financing costs to increase accordingly . during the 24 months ended december 31 , 2020 , we hedged approximately 47 % of our floating-rate debt with fixed-for-floating interest rate swaps . although higher interest rates could limit our ability to raise funds in the debt capital markets , we expect to remain competitive with respect to acquisitions and capital projects , as our competitors would face similar circumstances . as with other yield-oriented securities , our unit price is impacted by the level of our cash distributions and implied distribution yield . the distribution yield is often used by investors to compare and rank related yield-oriented securities for investment decision-making purposes . therefore , changes in interest rates , either positive or negative , may affect the yield requirements of investors who invest in our common units , and a rising interest rate environment could have an adverse impact on our unit price and our ability to issue additional equity to make acquisitions , reduce debt or for other purposes . 38 table of contents results of operations overview our current and future results of operations may not be comparable to our historical results of operations . our results of operations may be impacted by , among other things , swings in commodity prices , primarily in refined products and natural gas , and acquisitions or dispositions . we use economic hedges to minimize the impact of changing prices on refined products and natural gas inventory . as a result , commodity price increases at the end of a year can create lower gross margins as the economic hedges , or derivatives , for such inventory may lose value , whereas an increase in the value of such inventory is disregarded for gaap financial reporting purposes and recorded at the lower of cost or net realizable value . please read “ how management evaluates our results of operations . ” the following tables set forth information regarding our results of operations for the periods presented : replace_table_token_3_th 39 table of contents reconciliation to adjusted gross margin , ebitda and adjusted ebitda the following table sets forth a reconciliation of our consolidated operating income to our total adjusted gross margin , a non-gaap measure , for the periods presented and a reconciliation of our consolidated net income to ebitda and adjusted ebitda , non-gaap measures , for the periods presented . see above `` management 's discussion and analysis of financial condition and results of operations - ebitda and adjusted ebitda `` of this report . the table below also presents information on weather conditions for the periods presented . replace_table_token_4_th 40 table of contents ( 1 ) inventory is valued at the lower of cost or net realizable value . the adjustment related to change in unrealized gain on inventory which is not included in net income ( loss ) , represents the estimated difference between inventory valued at the lower of cost or net realizable value as compared to market values . the fair value of the derivatives we use to economically hedge our inventory declines or appreciates in value as the value of the underlying inventory appreciates or declines , which creates unrealized hedging losses ( gains ) with respect to the derivatives that are included in net income ( loss ) . ( 2 ) represents our estimate of the change in fair value of the
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2,677 | we have put preparedness plans in place at our facilities to maintain continuity of operations , while also taking steps to keep employees and patients safe . in line with recommendations to reduce large gatherings and increase social distancing , we have , where practical , transitioned a large number of office-based employees to a remote work environment . in march 2020 , in response to the covid-19 pandemic , the coronavirus aid , relief , and economic security act ( “ cares act ” ) was signed into law . the cares act provides numerous tax provisions and other stimulus measures , including temporary changes regarding the prior and future utilization of net operating losses , temporary changes to the prior and future limitations on interest deductions , temporary suspension of certain payment requirements for the employer portion of social security taxes , technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property , and the creation of certain payroll tax credits associated with the retention of employees . we have received a number of benefits under the cares act including , but not limited to : the cares act allowed for qualified healthcare providers to receive advanced payments under the existing medicare accelerated and advance payments program ( “ maapp funds ” ) during the covid-19 pandemic . under this program , healthcare providers could choose to receive advanced payments for future medicare services provided . we applied for and received approval to receive maap funds from centers for medicare & medicaid services ( “ cms ” ) in april 2020. we will record these payments as a liability until all performance obligations have been met as the payments were made on behalf of patients before services were provided . currently , maapp funds received are required to be applied to future medicare billings commencing in august 2021 , with all such remaining amounts required to be repaid by january 2024. beginning january 2024 , any unpaid balance will begin accruing interest . we currently intend to repay funds prior to august 2021. included in cash and cash equivalents and accrued liabilities at december 31 , 2020 is $ 14.1 million of maapp funds . we elected to defer depositing the employer 's share of social security taxes for payments due from march 27 , 2020 through december 31 , 2020 , interest-free and penalty-free . as of december 31 , 2020 , $ 4.2 million related to these deferred payments is included in accrued liabilities and $ 4.1 million is included in long term liabilities . the cares act provided additional waivers , reimbursement , grants and other funds to assist health care providers during the covid-19 pandemic , including $ 100.0 billion in appropriations for the public health and social services emergency fund , also referred to as the provider relief fund , to be used for preventing , preparing , and responding to the coronavirus , and for reimbursing eligible health care providers for lost revenues and health care related expenses that are attributable to covid-19 . through december 31 , 2020 , our consolidated subsidiaries received approximately $ 13.5 million of payments under the cares act ( “ relief funds ” ) . in accordance with gaap , these payments have been recorded as other income – relief funds . for the year ended december 31 , 2020 , we have recognized approximately $ 13.5 million , as other income – relief funds on the accompanying consolidated statements of income . these funds are not required to be repaid upon attestation and provided that we comply with certain terms and conditions regarding the use of such funds , which could change materially based on evolving grant compliance provisions and guidance provided by the u.s. department of health and human services . currently , we can attest to and comply with the terms and conditions . we will continue to monitor the evolving guidelines and may record adjustments as additional information is released . critical accounting policies critical accounting policies are those that have a significant impact on our results of operations and financial position involving significant estimates requiring our judgment . our critical accounting policies are : 26 revenue recognition . revenues are recognized in the period in which services are rendered . net patient revenues consists of revenues for physical therapy and occupational therapy clinics that provide pre-and post-operative care and treatment for orthopedic related disorders , sports-related injuries , preventative care , rehabilitation of injured workers and neurological-related injuries . net patient revenues ( patient revenues less estimated contractual adjustments ) are recognized at the estimated net realizable amounts from third-party payors , patients and others in exchange for services rendered when obligations under the terms of the contract are satisfied . there is an implied contract between us and the patient upon each patient visit . generally , this occurs as we provide physical and occupational therapy services , as each service provided is distinct and future services rendered are not dependent on previously rendered services . we have agreements with third-party payors that provide for payments to us at amounts different from our established rates . the allowance for estimated contractual adjustments is based on terms of payor contracts and historical collection and write-off experience . management contract revenues , which are included in other revenues in the consolidated statements of net income , are derived from contractual arrangements whereby we manage a clinic owned by a third party . we do not have any ownership interest in these clinics . typically , revenues are determined based on the number of visits conducted at the clinic and recognized at the point in time when services are performed . costs , typically salaries for our employees , are recorded when incurred . story_separator_special_tag : replace_table_token_9_th for 2020 , our net income attributable to shareholders , in accordance with gaap , was $ 35.2 million as compared to $ 40.0 million for the comparable period of 2019. inclusive of the charge for revaluation of non-controlling interest , net of tax , used to compute diluted earnings per share in accordance with gaap , earnings per share was $ 2.48 per share for 2020 and $ 2.45 per share for 2019. for both 2020 and 2019 , in accordance with current accounting guidance , the revaluation of redeemable non-controlling interest , net of tax , is not included in net income but rather charged directly to retained earnings ; however , the charge for this change is included in the earnings per basic and diluted share calculation . see table below ( in thousands , except per share data ) . replace_table_token_10_th for 2020 , our operating results ( as defined below ) , including relief funds ( defined below ) , was $ 38.4 million , or $ 2.99 per diluted share , as compared to $ 36.0 million , or $ 2.82 per diluted share in 2019. for 2020 , our operating results , excluding relief funds , was $ 30.6 million , or $ 2.39 per diluted share , as compared to $ 36.0 million , or $ 2.82 per diluted share in 2019. operating results , a non-generally accepted accounting principle ( “ gaap ” ) measure , equals net income attributable to our shareholders per the consolidated statements of net income plus charges incurred for closure costs , less gain on the sale of partnership interests and clinics , less allocated non-controlling interests , excludes expenses incurred for the transition to our new chief financial officer , all net of tax . the earnings per share from operating results also excludes the impact of the revaluation of redeemable non-controlling interest . see table below for a detailed computation ( in thousands , except per share data ) : 31 replace_table_token_11_th for 2020 , the company 's adjusted ebitda was $ 70.0 million compared to $ 72.8 million in 2019. for 2020 , the company 's adjusted ebitda , excluding relief funds , was $ 56.5 million . adjusted ebitda is defined as earnings before interest income , interest expense – debt and other , taxes , depreciation , amortization , derecognition of goodwill and equity-based awards compensation expense . see reconciliation of adjusted ebitda to net income attributable to our shareholders in the following table ( in thousands ) : 32 replace_table_token_12_th the above tables reconcile net income attributable to our shareholders calculated in accordance with gaap to adjusted ebitda and operating results , non-gaap measures defined above . we believe that operating results , which eliminates certain items described above that can be subject to volatility and unusual costs , is one of the principal measures to evaluate and monitor financial performance period over period . we also believe that operating results is useful information for investors to use in comparing the company 's period-to-period results as well as for comparing with other similar businesses . we believe adjusted ebitda is useful information for investors in comparing the company 's period-to-period results as well as comparing with similar businesses which report adjusted ebitda as defined by their company . operating results and adjusted ebitda are not measures of financial performance under gaap . operating results and adjusted ebitda should not be considered in isolation or as an alternative to , or substitute for , net income attributable to our shareholders presented in the consolidated financial statements . net patient revenues net patient revenues from physical therapy operations decreased approximately 13.8 % or $ 60.0 million to $ 373.3 million in 2020 from $ 433.3 million in 2019. included in net patient revenues above are revenues related to clinics sold or closed in 2020 and 2019 of $ 4.4 million in 2020 and $ 28.6 million in 2019. during 2020 , the company sold its interest in 14 clinics and closed 34 clinics . during 2019 , the company sold its interest in a partnership which include 30 clinics and closed 11 clinics . for comparison purposes , adjusted for revenue from the clinics sold or closed , net patient revenues from physical therapy operations was approximately $ 369.0 million in 2020 , inclusive of $ 9.7 million related to new clinics and $ 404.8 million in 2019. net patient revenues related to mature clinics decreased by $ 45.5 million in 2020 compared to 2019. the reduction is largely attributable to the adverse effects of the covid-19 pandemic . see table below for a detail of net patient revenues from physical therapy operations ( in thousands ) : replace_table_token_13_th including all clinics operational during 2020 and 2019 , the average net patient revenue per visit was $ 105.66 and $ 105.90 respectively . total patient visits were 3,533,371 in 2020 and 4,091,967 in 2019. the reduction is largely attributable to the adverse effects of the covid-19 pandemic . 33 net patient revenues are based on established billing rates less allowances and discounts for patients covered by contractual programs and workers ' compensation . net patient revenues reflect contractual and other adjustments , which we evaluate monthly , relating to patient discounts from certain payors . payments received under these contractual programs and workers ' compensation are based on predetermined rates and are generally less than the established billing rates of the clinics . other revenues other revenues , consisting primarily of revenues from our industrial injury prevention business and management fees revenue , increased by $ 1.0 million , from $ 48.6 million in 2019 to $ 49.6 million in 2020. revenues from management contracts were $ 8.4 million for 2020 as compared to $ 8.7 million for 2019. revenue from our industrial injury prevention business increased 4.6 % to $ 39.2 million in 2020 compared to $ 37.5 million
| liquidity and capital resources we believe that our business is generating sufficient cash flow from operating activities to allow us to meet our short-term and long-term cash requirements , other than those with respect to future significant acquisitions . at december 31 , 2020 , we had $ 32.9 million in cash and cash equivalents compared to $ 23.5 million at december 31 , 2019. although the start-up costs associated with opening new clinics and our planned capital expenditures are significant , we believe that our cash and cash equivalents and availability under our amended credit agreement are sufficient to fund the working capital needs of our operating subsidiaries , future clinic development and acquisitions and investments through at least december 2021. significant acquisitions would likely require financing under our amended credit agreement . effective december 5 , 2013 , we entered into an amended and restated credit agreement with a commitment for a $ 125.0 million revolving credit facility . this agreement was amended in august 2015 , january 2016 , march 2017 and november 2017 ( hereafter referred to as “ amended credit agreement ” ) . the amended credit agreement is unsecured and has loan covenants , including requirements that we comply with a consolidated fixed charge coverage ratio and consolidated leverage ratio . proceeds from the amended credit agreement may be used for working capital , acquisitions , purchases of our common stock , dividend payments to our common stockholders , capital expenditures and other corporate purposes . the pricing grid is based on our consolidated leverage ratio with the applicable spread over libor ranging from 1.25 % to 2.0 % or the applicable spread over the base rate ranging from 0.1 % to 1 % . fees under the amended credit agreement include an unused commitment fee ranging from 0.25 % to 0.3 % depending on our consolidated leverage ratio and the amount of funds outstanding under the amended credit agreement .
| 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 believe that our business is generating sufficient cash flow from operating activities to allow us to meet our short-term and long-term cash requirements , other than those with respect to future significant acquisitions . at december 31 , 2020 , we had $ 32.9 million in cash and cash equivalents compared to $ 23.5 million at december 31 , 2019. although the start-up costs associated with opening new clinics and our planned capital expenditures are significant , we believe that our cash and cash equivalents and availability under our amended credit agreement are sufficient to fund the working capital needs of our operating subsidiaries , future clinic development and acquisitions and investments through at least december 2021. significant acquisitions would likely require financing under our amended credit agreement . effective december 5 , 2013 , we entered into an amended and restated credit agreement with a commitment for a $ 125.0 million revolving credit facility . this agreement was amended in august 2015 , january 2016 , march 2017 and november 2017 ( hereafter referred to as “ amended credit agreement ” ) . the amended credit agreement is unsecured and has loan covenants , including requirements that we comply with a consolidated fixed charge coverage ratio and consolidated leverage ratio . proceeds from the amended credit agreement may be used for working capital , acquisitions , purchases of our common stock , dividend payments to our common stockholders , capital expenditures and other corporate purposes . the pricing grid is based on our consolidated leverage ratio with the applicable spread over libor ranging from 1.25 % to 2.0 % or the applicable spread over the base rate ranging from 0.1 % to 1 % . fees under the amended credit agreement include an unused commitment fee ranging from 0.25 % to 0.3 % depending on our consolidated leverage ratio and the amount of funds outstanding under the amended credit agreement .
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Suspicious Activity Report : we have put preparedness plans in place at our facilities to maintain continuity of operations , while also taking steps to keep employees and patients safe . in line with recommendations to reduce large gatherings and increase social distancing , we have , where practical , transitioned a large number of office-based employees to a remote work environment . in march 2020 , in response to the covid-19 pandemic , the coronavirus aid , relief , and economic security act ( “ cares act ” ) was signed into law . the cares act provides numerous tax provisions and other stimulus measures , including temporary changes regarding the prior and future utilization of net operating losses , temporary changes to the prior and future limitations on interest deductions , temporary suspension of certain payment requirements for the employer portion of social security taxes , technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property , and the creation of certain payroll tax credits associated with the retention of employees . we have received a number of benefits under the cares act including , but not limited to : the cares act allowed for qualified healthcare providers to receive advanced payments under the existing medicare accelerated and advance payments program ( “ maapp funds ” ) during the covid-19 pandemic . under this program , healthcare providers could choose to receive advanced payments for future medicare services provided . we applied for and received approval to receive maap funds from centers for medicare & medicaid services ( “ cms ” ) in april 2020. we will record these payments as a liability until all performance obligations have been met as the payments were made on behalf of patients before services were provided . currently , maapp funds received are required to be applied to future medicare billings commencing in august 2021 , with all such remaining amounts required to be repaid by january 2024. beginning january 2024 , any unpaid balance will begin accruing interest . we currently intend to repay funds prior to august 2021. included in cash and cash equivalents and accrued liabilities at december 31 , 2020 is $ 14.1 million of maapp funds . we elected to defer depositing the employer 's share of social security taxes for payments due from march 27 , 2020 through december 31 , 2020 , interest-free and penalty-free . as of december 31 , 2020 , $ 4.2 million related to these deferred payments is included in accrued liabilities and $ 4.1 million is included in long term liabilities . the cares act provided additional waivers , reimbursement , grants and other funds to assist health care providers during the covid-19 pandemic , including $ 100.0 billion in appropriations for the public health and social services emergency fund , also referred to as the provider relief fund , to be used for preventing , preparing , and responding to the coronavirus , and for reimbursing eligible health care providers for lost revenues and health care related expenses that are attributable to covid-19 . through december 31 , 2020 , our consolidated subsidiaries received approximately $ 13.5 million of payments under the cares act ( “ relief funds ” ) . in accordance with gaap , these payments have been recorded as other income – relief funds . for the year ended december 31 , 2020 , we have recognized approximately $ 13.5 million , as other income – relief funds on the accompanying consolidated statements of income . these funds are not required to be repaid upon attestation and provided that we comply with certain terms and conditions regarding the use of such funds , which could change materially based on evolving grant compliance provisions and guidance provided by the u.s. department of health and human services . currently , we can attest to and comply with the terms and conditions . we will continue to monitor the evolving guidelines and may record adjustments as additional information is released . critical accounting policies critical accounting policies are those that have a significant impact on our results of operations and financial position involving significant estimates requiring our judgment . our critical accounting policies are : 26 revenue recognition . revenues are recognized in the period in which services are rendered . net patient revenues consists of revenues for physical therapy and occupational therapy clinics that provide pre-and post-operative care and treatment for orthopedic related disorders , sports-related injuries , preventative care , rehabilitation of injured workers and neurological-related injuries . net patient revenues ( patient revenues less estimated contractual adjustments ) are recognized at the estimated net realizable amounts from third-party payors , patients and others in exchange for services rendered when obligations under the terms of the contract are satisfied . there is an implied contract between us and the patient upon each patient visit . generally , this occurs as we provide physical and occupational therapy services , as each service provided is distinct and future services rendered are not dependent on previously rendered services . we have agreements with third-party payors that provide for payments to us at amounts different from our established rates . the allowance for estimated contractual adjustments is based on terms of payor contracts and historical collection and write-off experience . management contract revenues , which are included in other revenues in the consolidated statements of net income , are derived from contractual arrangements whereby we manage a clinic owned by a third party . we do not have any ownership interest in these clinics . typically , revenues are determined based on the number of visits conducted at the clinic and recognized at the point in time when services are performed . costs , typically salaries for our employees , are recorded when incurred . story_separator_special_tag : replace_table_token_9_th for 2020 , our net income attributable to shareholders , in accordance with gaap , was $ 35.2 million as compared to $ 40.0 million for the comparable period of 2019. inclusive of the charge for revaluation of non-controlling interest , net of tax , used to compute diluted earnings per share in accordance with gaap , earnings per share was $ 2.48 per share for 2020 and $ 2.45 per share for 2019. for both 2020 and 2019 , in accordance with current accounting guidance , the revaluation of redeemable non-controlling interest , net of tax , is not included in net income but rather charged directly to retained earnings ; however , the charge for this change is included in the earnings per basic and diluted share calculation . see table below ( in thousands , except per share data ) . replace_table_token_10_th for 2020 , our operating results ( as defined below ) , including relief funds ( defined below ) , was $ 38.4 million , or $ 2.99 per diluted share , as compared to $ 36.0 million , or $ 2.82 per diluted share in 2019. for 2020 , our operating results , excluding relief funds , was $ 30.6 million , or $ 2.39 per diluted share , as compared to $ 36.0 million , or $ 2.82 per diluted share in 2019. operating results , a non-generally accepted accounting principle ( “ gaap ” ) measure , equals net income attributable to our shareholders per the consolidated statements of net income plus charges incurred for closure costs , less gain on the sale of partnership interests and clinics , less allocated non-controlling interests , excludes expenses incurred for the transition to our new chief financial officer , all net of tax . the earnings per share from operating results also excludes the impact of the revaluation of redeemable non-controlling interest . see table below for a detailed computation ( in thousands , except per share data ) : 31 replace_table_token_11_th for 2020 , the company 's adjusted ebitda was $ 70.0 million compared to $ 72.8 million in 2019. for 2020 , the company 's adjusted ebitda , excluding relief funds , was $ 56.5 million . adjusted ebitda is defined as earnings before interest income , interest expense – debt and other , taxes , depreciation , amortization , derecognition of goodwill and equity-based awards compensation expense . see reconciliation of adjusted ebitda to net income attributable to our shareholders in the following table ( in thousands ) : 32 replace_table_token_12_th the above tables reconcile net income attributable to our shareholders calculated in accordance with gaap to adjusted ebitda and operating results , non-gaap measures defined above . we believe that operating results , which eliminates certain items described above that can be subject to volatility and unusual costs , is one of the principal measures to evaluate and monitor financial performance period over period . we also believe that operating results is useful information for investors to use in comparing the company 's period-to-period results as well as for comparing with other similar businesses . we believe adjusted ebitda is useful information for investors in comparing the company 's period-to-period results as well as comparing with similar businesses which report adjusted ebitda as defined by their company . operating results and adjusted ebitda are not measures of financial performance under gaap . operating results and adjusted ebitda should not be considered in isolation or as an alternative to , or substitute for , net income attributable to our shareholders presented in the consolidated financial statements . net patient revenues net patient revenues from physical therapy operations decreased approximately 13.8 % or $ 60.0 million to $ 373.3 million in 2020 from $ 433.3 million in 2019. included in net patient revenues above are revenues related to clinics sold or closed in 2020 and 2019 of $ 4.4 million in 2020 and $ 28.6 million in 2019. during 2020 , the company sold its interest in 14 clinics and closed 34 clinics . during 2019 , the company sold its interest in a partnership which include 30 clinics and closed 11 clinics . for comparison purposes , adjusted for revenue from the clinics sold or closed , net patient revenues from physical therapy operations was approximately $ 369.0 million in 2020 , inclusive of $ 9.7 million related to new clinics and $ 404.8 million in 2019. net patient revenues related to mature clinics decreased by $ 45.5 million in 2020 compared to 2019. the reduction is largely attributable to the adverse effects of the covid-19 pandemic . see table below for a detail of net patient revenues from physical therapy operations ( in thousands ) : replace_table_token_13_th including all clinics operational during 2020 and 2019 , the average net patient revenue per visit was $ 105.66 and $ 105.90 respectively . total patient visits were 3,533,371 in 2020 and 4,091,967 in 2019. the reduction is largely attributable to the adverse effects of the covid-19 pandemic . 33 net patient revenues are based on established billing rates less allowances and discounts for patients covered by contractual programs and workers ' compensation . net patient revenues reflect contractual and other adjustments , which we evaluate monthly , relating to patient discounts from certain payors . payments received under these contractual programs and workers ' compensation are based on predetermined rates and are generally less than the established billing rates of the clinics . other revenues other revenues , consisting primarily of revenues from our industrial injury prevention business and management fees revenue , increased by $ 1.0 million , from $ 48.6 million in 2019 to $ 49.6 million in 2020. revenues from management contracts were $ 8.4 million for 2020 as compared to $ 8.7 million for 2019. revenue from our industrial injury prevention business increased 4.6 % to $ 39.2 million in 2020 compared to $ 37.5 million
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2,678 | the following presents the federal income tax characterization of the distributions paid : replace_table_token_8_th for the year ended december 31 , 2017 , distributions paid to our stockholders were 15.8 % ordinary income , 0 % capital gain , and 84.2 % return of capital/non-dividend distribution . distributions are paid on a monthly basis 46 distributions to stockholders for the year ended december 31 , 2017 were declared and paid monthly based on daily record dates at rates per share per day as follows : replace_table_token_9_th replace_table_token_10_th ( 1 ) the distribution paid per share of class s common stock is net of deferred selling commissions . going forward , we expect our board of directors to continue to declare cash distributions based on daily record dates and to pay these distributions on a monthly basis , and after the offerings to continue to declare stock distributions based on a single record date as of the end of the month , and to pay these dividends on a monthly basis . cash distributions will be determined by our board of directors based on our financial condition and such other factors as our board of directors deems relevant . our board of directors has not pre-established a percentage rate of return for stock dividends or cash distributions to stockholders . we have not established a minimum dividend or distribution level , and our charter does not require that we make dividends or distributions to our stockholders other than as necessary to meet irs reit qualification standards . our operating performance can not be accurately predicted and may deteriorate in the future due to numerous factors , including those discussed under “ risk factors . ” those factors include : our ability to continue to raise capital to make additional investments ; the future operating performance of our current and future real estate investments in the existing real estate and financial environment ; our advisor 's ability to identify additional real estate investments that are suitable to execute our investment objectives ; the success and economic viability of our tenants ; our ability to refinance existing indebtedness at comparable terms ; changes in interest rates on any variable rate debt obligations we incur ; and the level of participation in our dividend reinvestment plan . in the event our cash flow from operations decreases in the future , the level of our distributions may also decrease . in addition , future distributions declared and paid may exceed cash flow from operations , to the extent that the advisor defers payment of fees and reimbursements to which it is entitled . to maintain our qualification as a reit , we must make aggregate annual distributions to our stockholders of at least 90 % of our reit taxable income ( which is computed without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with gaap ) . if we meet the reit qualification requirements , we generally will not be subject to federal income tax on the income that we distribute to our stockholders each year . our board of directors may authorize distributions in excess of those required for us to maintain reit status depending on our financial condition and such other factors as our board of directors deems relevant . share repurchase program our board of directors has authorized a share repurchase program for our class c common stock and a share repurchase program for our class s common stock . 47 in accordance with our share repurchase program for our class c common stock , the per share repurchase price depends on the length of time the redeeming stockholder has held such shares as follows : less than one year from the purchase date , 97 % of the most recently published nav per share ; after at least one year but less than two years from the purchase date , 98 % of the most recently published nav per share ; after at least two years but less than three years from the purchase date , 99 % of the most recently published nav per share ; and after three years from the purchase date , 100 % of the most recently published nav per share . our most recently published nav per share effective as of january 19 , 2018 is $ 10.05. prior to january 19 , 2018 , repurchases under the share repurchase program of shares of our class c common stock were made based on our initial offering price of $ 10.00 per share , subject to the same discounts for the length of time such shares were held as described above . in accordance with our share repurchase program for our class s common stock , shares of class s common stock are not eligible for repurchase unless they have been held for at least one year . after this holding period has been met , class s shares can be redeemed at the most recently published nav , which is currently $ 10.05. as of december 31 , 2017 , 303,004 shares had been tendered for redemption by the company , which represented all redemption requests received in good order and eligible for redemption through december 31 , 2017. all of these shares had been redeemed except for the 39,731 of shares in connection with the repurchase requests that were made in december 2017 and were repurchased on january 4 , 2018. these shares were repurchased with the proceeds from reinvested dividends at 97 % of the pre-nav $ 10.00 price per share during the 12-month period and 98 % of the pre-nav $ 10.00 price per share during the 12- to 24-month period following a stockholder 's investment in the shares . story_separator_special_tag although we have no plans at this time to change any of our investment objectives , our board of directors may change any and all such investment objectives , including our focus on single tenant properties , if it believes such changes are in the best interests of our stockholders . through december 31 , 2017 , the company had sold 9,055,175 shares of its class c common stock pursuant to the registered offering for aggregate gross offering proceeds of $ 90,551,752 and 3,000 shares of its class s common stock pursuant to the class s offering for aggregate gross offering proceeds of $ 30,000. rich uncles nnn reit operator , llc , our advisor , will make recommendations on all investments to our board of directors . all proposed real estate investments must be approved by at least a majority of our board of directors subject to guidelines established by our board of directors . as we accept subscriptions for shares in the offerings , we will transfer substantially all of the net proceeds of the offerings to our operating partnership as a capital contribution in exchange for units of general partnership and or limited partnership interest that will be held by our wholly-owned subsidiary , rich uncles nnn lp , llc ; however , we will be deemed to have made capital contributions to the operating partnership in the amount of the gross offering proceeds received from investors . the reit will be deemed to have simultaneously reimbursed the sponsor for the costs associated with the offerings , subject to a maximum of 3 % of the gross offering proceeds . because we plan to conduct substantially all of our operations through the operating partnership , we are considered an umbrella partnership real estate investment trust , or upreit . using an upreit structure may give us an advantage in acquiring properties from persons who might not otherwise sell their properties because of unfavorable tax results . generally , a sale of property directly to a reit , or a contribution in exchange for reit shares , is a taxable transaction to the selling property owner . however , in an upreit structure , a seller of a property who desires to defer taxable gain on the sale of property may transfer the property to the operating partnership in exchange for partnership interests in the operating partnership without recognizing gain for tax purposes . we intend to present our financial statements and operating partnership income , expenses and depreciation on a consolidated basis . all items of income , gain , deduction ( including depreciation ) , loss and credit flow through the operating partnership to us as all subsidiary entities are disregarded for federal tax purposes . these tax items do not generally flow through us to our stockholders . rather , our net income and net capital gain effectively flow through us to our stockholders as and when we pay distributions . liquidity and capital resources the company 's proceeds from shares sold in the offerings have been , and will continue to be , primarily for ( i ) property acquisitions ; ( ii ) capital expenditures ; ( iii ) payment of principal on our outstanding indebtedness and ( iv ) payment of fees to advisor . our cash needs for the purchase of real estate properties and other real estate investments will be funded primarily from the sale of our shares , including those offered for sale through our dividend reinvestment plan , and from debt proceeds . we expect that once we have fully invested the proceeds of the offerings and other potential subsequent offerings , our debt financing and other liabilities , including our pro rata share of the debt financing of entities in which we invest , will be approximately 50 % of the cost of our tangible assets ( before deducting depreciation or other non-cash reserves and without taking into account borrowings relating to the initial acquisition of properties that are outstanding under a revolving credit facility or similar agreement ) . our aggregate borrowings , secured and unsecured , must be reasonable in relation to our net assets . we intend to limit our leverage to 50 % of the cost of acquiring our tangible assets ( before deducting depreciation or other non-cash reserves and without taking into account borrowings relating to the initial acquisition of properties that are outstanding under a revolving credit facility or similar agreement ) . this is an overall target . our borrowings on one or more individual properties may exceed 50 % of their individual cost , so long as our overall leverage does not exceed 50 % . our charter limits our borrowing to 50 % of our net assets ( equivalent to 50 % of the cost of our assets ) unless any excess borrowing is approved by a majority of our conflicts committee and is disclosed to our stockholders in our next quarterly report , along with the justification for such excess . when calculating our use of leverage , we will not include borrowings relating to the initial acquisition of properties and that are outstanding under a revolving credit facility ( or similar agreement ) . there is no limitation on the amount we may borrow for the purchase of any single asset . 52 we may borrow amounts from our advisor or sponsor if such loan is approved by a majority of our directors , including a majority of our conflicts committee , not otherwise interested in the transaction , as being fair , competitive , commercially reasonable and no less favorable to us than comparable loans between unaffiliated parties under the circumstances . any such loan will be included in determining whether we have complied with the borrowing limit in our charter . neither our advisor nor our sponsor has any obligation to make any loans to us . debt financing for acquisitions and investments may
| cash flows from investing activities net cash used in investing activities was $ 115,593,935 for the year ended december 31 , 2017 and consisted primarily of the following : · $ 100,458,868 for the acquisition of nine real estate investments ; · $ 685,160 for improvements to real estate ; · $ 3,935,884 for payment of acquisition fees to affiliate ; and · $ 10,542,594 investments in unconsolidated entities ( tic investment in a property located in santa clara , ca ) . net cash used in investing activities was $ 37,155,065 for the year ended december 31 , 2016 and consisted primarily of the following : · $ 32,754,452 for the acquisition of nine real estate investments ; · $ 231,408 for payment of acquisition fees to affiliates ; · $ 3,640,634 for the investment in rich uncles real estate investment trust i ( rich uncles reit i ) ; and · $ 500,000 received for escrow deposits for future real estate purchases . cash flows from financing activities net cash provided by financing activities was $ 112,308,480 for the year ended december 31 , 2017 and consisted primarily of the following : · $ 60,505,707 of net cash provided by the issuance of common stock and investor deposits related to our offerings , net of payments of organization and offering costs of $ 2,049,847 ; · $ 55,390,000 from borrowings from our unsecured credit facility , partially offset by payments on unsecured credit facility of $ 53,547,803 ; · $ 53,165,056 of net cash provided by debt financing as a result from mortgage notes payable of $ 55,369,988 , partially offset by principal payments of $ 407,725 , refundable loan deposits of $ 40,000 , deferred financing costs to third parties of $ 1,430,607 , and financing fees to affiliates of $ 326,600 .
| 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 investing activities net cash used in investing activities was $ 115,593,935 for the year ended december 31 , 2017 and consisted primarily of the following : · $ 100,458,868 for the acquisition of nine real estate investments ; · $ 685,160 for improvements to real estate ; · $ 3,935,884 for payment of acquisition fees to affiliate ; and · $ 10,542,594 investments in unconsolidated entities ( tic investment in a property located in santa clara , ca ) . net cash used in investing activities was $ 37,155,065 for the year ended december 31 , 2016 and consisted primarily of the following : · $ 32,754,452 for the acquisition of nine real estate investments ; · $ 231,408 for payment of acquisition fees to affiliates ; · $ 3,640,634 for the investment in rich uncles real estate investment trust i ( rich uncles reit i ) ; and · $ 500,000 received for escrow deposits for future real estate purchases . cash flows from financing activities net cash provided by financing activities was $ 112,308,480 for the year ended december 31 , 2017 and consisted primarily of the following : · $ 60,505,707 of net cash provided by the issuance of common stock and investor deposits related to our offerings , net of payments of organization and offering costs of $ 2,049,847 ; · $ 55,390,000 from borrowings from our unsecured credit facility , partially offset by payments on unsecured credit facility of $ 53,547,803 ; · $ 53,165,056 of net cash provided by debt financing as a result from mortgage notes payable of $ 55,369,988 , partially offset by principal payments of $ 407,725 , refundable loan deposits of $ 40,000 , deferred financing costs to third parties of $ 1,430,607 , and financing fees to affiliates of $ 326,600 .
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Suspicious Activity Report : the following presents the federal income tax characterization of the distributions paid : replace_table_token_8_th for the year ended december 31 , 2017 , distributions paid to our stockholders were 15.8 % ordinary income , 0 % capital gain , and 84.2 % return of capital/non-dividend distribution . distributions are paid on a monthly basis 46 distributions to stockholders for the year ended december 31 , 2017 were declared and paid monthly based on daily record dates at rates per share per day as follows : replace_table_token_9_th replace_table_token_10_th ( 1 ) the distribution paid per share of class s common stock is net of deferred selling commissions . going forward , we expect our board of directors to continue to declare cash distributions based on daily record dates and to pay these distributions on a monthly basis , and after the offerings to continue to declare stock distributions based on a single record date as of the end of the month , and to pay these dividends on a monthly basis . cash distributions will be determined by our board of directors based on our financial condition and such other factors as our board of directors deems relevant . our board of directors has not pre-established a percentage rate of return for stock dividends or cash distributions to stockholders . we have not established a minimum dividend or distribution level , and our charter does not require that we make dividends or distributions to our stockholders other than as necessary to meet irs reit qualification standards . our operating performance can not be accurately predicted and may deteriorate in the future due to numerous factors , including those discussed under “ risk factors . ” those factors include : our ability to continue to raise capital to make additional investments ; the future operating performance of our current and future real estate investments in the existing real estate and financial environment ; our advisor 's ability to identify additional real estate investments that are suitable to execute our investment objectives ; the success and economic viability of our tenants ; our ability to refinance existing indebtedness at comparable terms ; changes in interest rates on any variable rate debt obligations we incur ; and the level of participation in our dividend reinvestment plan . in the event our cash flow from operations decreases in the future , the level of our distributions may also decrease . in addition , future distributions declared and paid may exceed cash flow from operations , to the extent that the advisor defers payment of fees and reimbursements to which it is entitled . to maintain our qualification as a reit , we must make aggregate annual distributions to our stockholders of at least 90 % of our reit taxable income ( which is computed without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with gaap ) . if we meet the reit qualification requirements , we generally will not be subject to federal income tax on the income that we distribute to our stockholders each year . our board of directors may authorize distributions in excess of those required for us to maintain reit status depending on our financial condition and such other factors as our board of directors deems relevant . share repurchase program our board of directors has authorized a share repurchase program for our class c common stock and a share repurchase program for our class s common stock . 47 in accordance with our share repurchase program for our class c common stock , the per share repurchase price depends on the length of time the redeeming stockholder has held such shares as follows : less than one year from the purchase date , 97 % of the most recently published nav per share ; after at least one year but less than two years from the purchase date , 98 % of the most recently published nav per share ; after at least two years but less than three years from the purchase date , 99 % of the most recently published nav per share ; and after three years from the purchase date , 100 % of the most recently published nav per share . our most recently published nav per share effective as of january 19 , 2018 is $ 10.05. prior to january 19 , 2018 , repurchases under the share repurchase program of shares of our class c common stock were made based on our initial offering price of $ 10.00 per share , subject to the same discounts for the length of time such shares were held as described above . in accordance with our share repurchase program for our class s common stock , shares of class s common stock are not eligible for repurchase unless they have been held for at least one year . after this holding period has been met , class s shares can be redeemed at the most recently published nav , which is currently $ 10.05. as of december 31 , 2017 , 303,004 shares had been tendered for redemption by the company , which represented all redemption requests received in good order and eligible for redemption through december 31 , 2017. all of these shares had been redeemed except for the 39,731 of shares in connection with the repurchase requests that were made in december 2017 and were repurchased on january 4 , 2018. these shares were repurchased with the proceeds from reinvested dividends at 97 % of the pre-nav $ 10.00 price per share during the 12-month period and 98 % of the pre-nav $ 10.00 price per share during the 12- to 24-month period following a stockholder 's investment in the shares . story_separator_special_tag although we have no plans at this time to change any of our investment objectives , our board of directors may change any and all such investment objectives , including our focus on single tenant properties , if it believes such changes are in the best interests of our stockholders . through december 31 , 2017 , the company had sold 9,055,175 shares of its class c common stock pursuant to the registered offering for aggregate gross offering proceeds of $ 90,551,752 and 3,000 shares of its class s common stock pursuant to the class s offering for aggregate gross offering proceeds of $ 30,000. rich uncles nnn reit operator , llc , our advisor , will make recommendations on all investments to our board of directors . all proposed real estate investments must be approved by at least a majority of our board of directors subject to guidelines established by our board of directors . as we accept subscriptions for shares in the offerings , we will transfer substantially all of the net proceeds of the offerings to our operating partnership as a capital contribution in exchange for units of general partnership and or limited partnership interest that will be held by our wholly-owned subsidiary , rich uncles nnn lp , llc ; however , we will be deemed to have made capital contributions to the operating partnership in the amount of the gross offering proceeds received from investors . the reit will be deemed to have simultaneously reimbursed the sponsor for the costs associated with the offerings , subject to a maximum of 3 % of the gross offering proceeds . because we plan to conduct substantially all of our operations through the operating partnership , we are considered an umbrella partnership real estate investment trust , or upreit . using an upreit structure may give us an advantage in acquiring properties from persons who might not otherwise sell their properties because of unfavorable tax results . generally , a sale of property directly to a reit , or a contribution in exchange for reit shares , is a taxable transaction to the selling property owner . however , in an upreit structure , a seller of a property who desires to defer taxable gain on the sale of property may transfer the property to the operating partnership in exchange for partnership interests in the operating partnership without recognizing gain for tax purposes . we intend to present our financial statements and operating partnership income , expenses and depreciation on a consolidated basis . all items of income , gain , deduction ( including depreciation ) , loss and credit flow through the operating partnership to us as all subsidiary entities are disregarded for federal tax purposes . these tax items do not generally flow through us to our stockholders . rather , our net income and net capital gain effectively flow through us to our stockholders as and when we pay distributions . liquidity and capital resources the company 's proceeds from shares sold in the offerings have been , and will continue to be , primarily for ( i ) property acquisitions ; ( ii ) capital expenditures ; ( iii ) payment of principal on our outstanding indebtedness and ( iv ) payment of fees to advisor . our cash needs for the purchase of real estate properties and other real estate investments will be funded primarily from the sale of our shares , including those offered for sale through our dividend reinvestment plan , and from debt proceeds . we expect that once we have fully invested the proceeds of the offerings and other potential subsequent offerings , our debt financing and other liabilities , including our pro rata share of the debt financing of entities in which we invest , will be approximately 50 % of the cost of our tangible assets ( before deducting depreciation or other non-cash reserves and without taking into account borrowings relating to the initial acquisition of properties that are outstanding under a revolving credit facility or similar agreement ) . our aggregate borrowings , secured and unsecured , must be reasonable in relation to our net assets . we intend to limit our leverage to 50 % of the cost of acquiring our tangible assets ( before deducting depreciation or other non-cash reserves and without taking into account borrowings relating to the initial acquisition of properties that are outstanding under a revolving credit facility or similar agreement ) . this is an overall target . our borrowings on one or more individual properties may exceed 50 % of their individual cost , so long as our overall leverage does not exceed 50 % . our charter limits our borrowing to 50 % of our net assets ( equivalent to 50 % of the cost of our assets ) unless any excess borrowing is approved by a majority of our conflicts committee and is disclosed to our stockholders in our next quarterly report , along with the justification for such excess . when calculating our use of leverage , we will not include borrowings relating to the initial acquisition of properties and that are outstanding under a revolving credit facility ( or similar agreement ) . there is no limitation on the amount we may borrow for the purchase of any single asset . 52 we may borrow amounts from our advisor or sponsor if such loan is approved by a majority of our directors , including a majority of our conflicts committee , not otherwise interested in the transaction , as being fair , competitive , commercially reasonable and no less favorable to us than comparable loans between unaffiliated parties under the circumstances . any such loan will be included in determining whether we have complied with the borrowing limit in our charter . neither our advisor nor our sponsor has any obligation to make any loans to us . debt financing for acquisitions and investments may
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2,679 | our strategy for improving the profitability of mobile consumer products is to differentiate our products from our competitors and to provide compelling solutions under our brand with regard to features , design , ease of use and performance . throughout fiscal 2011 , we remained focused on our long-term strategy to invest in uc as a key long-term driver of revenue and profit growth , maintain profitability in our consumer bluetooth products and earn a return on invested capital in excess of the cost of capital . while staying focused on our long-term strategy , we continued to distribute capital to stockholders through repurchases of our common stock , and , subsequent to our fiscal year end , on may 2 , 2011 , our board of directors authorized the repurchase of up to 7,000,000 shares of our outstanding common stock . 28 looking forward into fiscal 2012 , we continue to believe that uc is a key long-term driver of revenue and profit growth . in fiscal 2011 , we introduced new products and generated $ 53 million in revenues from our uc product portfolio . we continue to focus on innovative product development , including the use of software and services as part of our products . our investment also includes growing our sales force and increasing marketing and other support costs as we expand our key strategic partnerships to market uc products . our goal is to be the world leader in audio solutions for the uc market and we feel we are well positioned as we enter fiscal 2012 with a strong uc product portfolio . we intend for the following discussion of our financial condition and results of operations to provide information that will assist in understanding our financial statements and therefore , this discussion should be read in conjunction with the financial statements and accompanying notes . results of operations the following tables set forth , for the periods indicated , the consolidated statements of operations data . the financial information and the ensuing discussion should be read in conjunction with the accompanying consolidated financial statements and notes thereto . except as noted , financial results are for continuing operations . altec lansing , our former aeg segment , was sold effective december 1 , 2009. we have classified the aeg operating results as discontinued operations in the consolidated statement of operations for all periods presented . replace_table_token_2_th 29 net revenues replace_table_token_3_th our consolidated net revenues increased in fiscal 2011 as compared to fiscal 2010 driven by growth in occ product revenues as a result of improved global economic conditions and growth in demand for uc . while we experienced foreign exchange fluctuations in our net revenues during the first half of the fiscal year , the overall foreign exchange impact for the entire fiscal year was not material . our consolidated net revenues decreased in fiscal 2010 as compared to fiscal 2009 primarily in our mobile and occ product revenues as a result of global economic weakness due to the global recession especially in the first half of fiscal 2010 in comparison to the prior year . while we experienced foreign exchange fluctuations in our net revenues during the first half of fiscal 2010 , the overall foreign exchange impact for the entire fiscal year was not material . net revenues may vary due to the timing of the introduction of new products , discounts and other incentives and channel mix . in addition , we typically experience seasonality in our quarterly revenues which occurs in the third quarter of our fiscal year . our occ products represent our largest source of revenues while our mobile products represent our largest unit volumes . primary fluctuations in the net revenues in fiscal 2011 compared to fiscal 2010 were as follows : occ product net revenues increased $ 86.1 million as a result of higher volumes due to improved global economic conditions and growth in demand for uc products . mobile net revenues decreased $ 12.2 million mostly due to overall weakness in the product category which resulted in a lower unit volume of sales . we believe we have maintained our share of the total global market , although gains achieved internationally were partially offset by a reduction in u.s. market share . primary fluctuations in the net revenues in fiscal 2010 compared to fiscal 2009 were as follows : mobile product net revenues decreased by $ 37.7 million due primarily to lower volumes as a result of the global recession along with the benefit realized in fiscal 2009 from bluetooth headset revenues attributable to hands-free driving legislation enacted in the states of california and washington in the u.s. in fiscal 2009. occ product net revenues decreased by $ 25.3 million as a result of lower volumes due to weakness in economic conditions as a result of the global recession . gaming and computer audio net revenues increased by $ 5.2 million due to higher sales of uc products and the overall strength of the product portfolio . clarity net revenues decreased by $ 3.0 million due primarily to lower purchases under state government programs as a result of the impact of the recession on state budgets and lower oem sales in europe . 30 geographical information replace_table_token_4_th consolidated u.s. net revenues , as a percentage of total net revenues , decreased by 3.0 percentage points to 59 % in fiscal 2011 from 62 % in fiscal 2010 mostly due to the weakness in the mobile product category . consolidated international net revenues , as a percentage of total net revenues , increased to 41 % in fiscal 2011 from 38 % in fiscal 2010. the increase in absolute dollars in the u.s. revenues was a result of increased occ revenues due to improved global economic conditions and growth in demand for uc . story_separator_special_tag the sale was completed effective december 1 , 2009 . all of the revenues in the aeg segment were derived from sales of altec lansing products . all operations of aeg have been classified as discontinued operations in the consolidated statement of operations for all periods presented . the results from discontinued operations in fiscal 2010 include a loss of $ 0.6 million on sale of altec lansing which is calculated as follows ( in thousands ) : proceeds received upon close $ 11,075 escrow payments received to date 2,065 remaining escrow payments to be received ( subsequently received in fiscal 2011 ) 1,625 payment to purchaser for adjustment for final value of net assets under apa ( 3,956 ) total estimated proceeds 10,809 book value of net assets sold ( 11,057 ) costs incurred upon closing ( 363 ) loss on sale of aeg $ ( 611 ) there was no income or loss from discontinued operations for the year ended march 31 , 2011. the results from discontinued operations for the years ended march 31 , 2010 and 2009 are as follows : replace_table_token_13_th 36 financial condition the table below provides selected consolidated cash flow information for the periods indicated : replace_table_token_14_th story_separator_special_tag style= `` font-family : inherit ; font-size:10pt ; color : # 000000 ; text-decoration : none ; `` > $ 169.9 million , consisting primarily of $ 256.3 million and $ 48.9 million for the purchase of short-term and long-term investments , respectively , along with capital expenditures of $ 18.6 million . these uses of cash were offset in part by net proceeds of $ 142.5 million from sales and maturities of short-term investments , $ 9.1 million from the sale of our suzhou facility classified as assets held for sale and $ 1.6 million in net proceeds from release of the escrow from the sale of altec lansing , our aeg segment . capital expenditures during fiscal 2011 related primarily to building and leasehold improvements including the installation of an expanded solar energy system in our headquarters in santa cruz , california , tooling and various it projects and equipment . in fiscal 2010 , net cash flows provided from investing activities were $ 67.9 million , consisting primarily of net maturities and sales of short-term investments of $ 64.0 million and $ 9.1 million in net proceeds from the sale of altec lansing offset in part by capital expenditures of $ 6.3 million . capital expenditures during fiscal 2010 primarily related to tooling and various it projects . in fiscal 2009 , net cash flows used for investing activities were $ 83.2 million , consisting primarily of capital expenditures of $ 23.7 million and net purchases of short-term investments of $ 59.9 million . significant capital expenditures during fiscal 2009 primarily related to $ 4.3 million in costs to complete construction of the new corporate data center in our santa cruz , california headquarters , $ 3.2 million for the construction of our engineering center in santa cruz , california and $ 2.3 million for various it projects . we anticipate our capital expenditures in fiscal 2012 to be in the range of $ 18.0 million to $ 20.0 million consisting primarily of building and leasehold improvements both in our u.s. and europe offices , it related expenditures and tooling for new products . we will continue to evaluate new business opportunities and new markets ; as a result , future growth within the existing business or new opportunities and markets may dictate the need for additional facilities and capital expenditures to support that growth . cash flows from financing activities net cash flows used for financing activities in fiscal 2011 were $ 55.4 million and consisted of $ 105.7 million used for the repurchase of common stock and $ 9.7 million in dividend payments , which were partially offset by $ 50.1 million in proceeds from the exercise of employee stock options , $ 4.2 million in proceeds from the sale of treasury stock issued for purchases under our employee stock purchase plan ( “ espp ” ) and $ 5.7 million of excess tax benefits from stock-based compensation . net cash flows used for financing activities in fiscal 2010 were $ 21.0 million and consisted of $ 49.7 million related to repurchases of common stock and $ 9.8 million in dividend payments , which were partially offset by $ 32.6 million in proceeds from the exercise of employee stock options , $ 3.6 million in proceeds from the sale of treasury stock issued for purchases under our espp and $ 2.2 million of excess tax benefits from stock-based compensation . net cash flows used for financing activities in fiscal 2009 were $ 14.9 million and consisted of $ 17.8 million related to repurchases of common stock and $ 9.8 million in dividend payments , which were partially offset by $ 6.9 million in proceeds from the exercise of employee stock options and $ 5.2 million in proceeds from the sale of treasury stock issued for purchases under our espp . 38 on may 3 , 2011 , we announced that our board of directors had declared a cash dividend of $ 0.05 per share of our common stock , payable on june 10 , 2011 to stockholders of record on may 20 , 2011. we expect to continue our quarterly dividend of $ 0.05 per common share . the actual declaration of future dividends , and the establishment of record and payment dates , is subject to final determination by the audit committee of the board of directors of plantronics each quarter after its review of our financial condition and financial performance . liquidity and capital resources our primary discretionary cash requirements historically have been to repurchase stock . at march 31 , 2011 , we had working capital of $ 524.1 million , including $ 430.0 million of cash , cash equivalents and short-term investments , compared with working
| cash flows from operating activities cash flows from operating activities in fiscal 2011 were $ 158.2 million and consisted of our net income of $ 109.2 million , non-cash charges of $ 29.1 million and working capital sources of cash of $ 19.9 million . non-cash charges consisted primarily of $ 16.3 million of depreciation and amortization , $ 15.9 million of stock-based compensation and a $ 6.2 million income tax benefit associated with stock option exercises , offset in part by $ 5.7 million in excess tax benefits from stock-based compensation expense and a $ 5.2 million benefit from deferred income taxes . working capital sources of cash consisted primarily of a decrease in inventory of $ 13.0 million as we continued to improve the management of our inventory levels , increases in accounts payable and accrued liabilities of $ 10.2 million and $ 9.9 million , respectively , due to timing of payments along with a benefit from income taxes of $ 4.2 million . working capital uses of cash consisted primarily of an increase in accounts receivable of $ 15.1 million due to higher revenues in the fourth quarter of fiscal 2011 than in the prior year 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.
```cash flows from operating activities cash flows from operating activities in fiscal 2011 were $ 158.2 million and consisted of our net income of $ 109.2 million , non-cash charges of $ 29.1 million and working capital sources of cash of $ 19.9 million . non-cash charges consisted primarily of $ 16.3 million of depreciation and amortization , $ 15.9 million of stock-based compensation and a $ 6.2 million income tax benefit associated with stock option exercises , offset in part by $ 5.7 million in excess tax benefits from stock-based compensation expense and a $ 5.2 million benefit from deferred income taxes . working capital sources of cash consisted primarily of a decrease in inventory of $ 13.0 million as we continued to improve the management of our inventory levels , increases in accounts payable and accrued liabilities of $ 10.2 million and $ 9.9 million , respectively , due to timing of payments along with a benefit from income taxes of $ 4.2 million . working capital uses of cash consisted primarily of an increase in accounts receivable of $ 15.1 million due to higher revenues in the fourth quarter of fiscal 2011 than in the prior year quarter .
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Suspicious Activity Report : our strategy for improving the profitability of mobile consumer products is to differentiate our products from our competitors and to provide compelling solutions under our brand with regard to features , design , ease of use and performance . throughout fiscal 2011 , we remained focused on our long-term strategy to invest in uc as a key long-term driver of revenue and profit growth , maintain profitability in our consumer bluetooth products and earn a return on invested capital in excess of the cost of capital . while staying focused on our long-term strategy , we continued to distribute capital to stockholders through repurchases of our common stock , and , subsequent to our fiscal year end , on may 2 , 2011 , our board of directors authorized the repurchase of up to 7,000,000 shares of our outstanding common stock . 28 looking forward into fiscal 2012 , we continue to believe that uc is a key long-term driver of revenue and profit growth . in fiscal 2011 , we introduced new products and generated $ 53 million in revenues from our uc product portfolio . we continue to focus on innovative product development , including the use of software and services as part of our products . our investment also includes growing our sales force and increasing marketing and other support costs as we expand our key strategic partnerships to market uc products . our goal is to be the world leader in audio solutions for the uc market and we feel we are well positioned as we enter fiscal 2012 with a strong uc product portfolio . we intend for the following discussion of our financial condition and results of operations to provide information that will assist in understanding our financial statements and therefore , this discussion should be read in conjunction with the financial statements and accompanying notes . results of operations the following tables set forth , for the periods indicated , the consolidated statements of operations data . the financial information and the ensuing discussion should be read in conjunction with the accompanying consolidated financial statements and notes thereto . except as noted , financial results are for continuing operations . altec lansing , our former aeg segment , was sold effective december 1 , 2009. we have classified the aeg operating results as discontinued operations in the consolidated statement of operations for all periods presented . replace_table_token_2_th 29 net revenues replace_table_token_3_th our consolidated net revenues increased in fiscal 2011 as compared to fiscal 2010 driven by growth in occ product revenues as a result of improved global economic conditions and growth in demand for uc . while we experienced foreign exchange fluctuations in our net revenues during the first half of the fiscal year , the overall foreign exchange impact for the entire fiscal year was not material . our consolidated net revenues decreased in fiscal 2010 as compared to fiscal 2009 primarily in our mobile and occ product revenues as a result of global economic weakness due to the global recession especially in the first half of fiscal 2010 in comparison to the prior year . while we experienced foreign exchange fluctuations in our net revenues during the first half of fiscal 2010 , the overall foreign exchange impact for the entire fiscal year was not material . net revenues may vary due to the timing of the introduction of new products , discounts and other incentives and channel mix . in addition , we typically experience seasonality in our quarterly revenues which occurs in the third quarter of our fiscal year . our occ products represent our largest source of revenues while our mobile products represent our largest unit volumes . primary fluctuations in the net revenues in fiscal 2011 compared to fiscal 2010 were as follows : occ product net revenues increased $ 86.1 million as a result of higher volumes due to improved global economic conditions and growth in demand for uc products . mobile net revenues decreased $ 12.2 million mostly due to overall weakness in the product category which resulted in a lower unit volume of sales . we believe we have maintained our share of the total global market , although gains achieved internationally were partially offset by a reduction in u.s. market share . primary fluctuations in the net revenues in fiscal 2010 compared to fiscal 2009 were as follows : mobile product net revenues decreased by $ 37.7 million due primarily to lower volumes as a result of the global recession along with the benefit realized in fiscal 2009 from bluetooth headset revenues attributable to hands-free driving legislation enacted in the states of california and washington in the u.s. in fiscal 2009. occ product net revenues decreased by $ 25.3 million as a result of lower volumes due to weakness in economic conditions as a result of the global recession . gaming and computer audio net revenues increased by $ 5.2 million due to higher sales of uc products and the overall strength of the product portfolio . clarity net revenues decreased by $ 3.0 million due primarily to lower purchases under state government programs as a result of the impact of the recession on state budgets and lower oem sales in europe . 30 geographical information replace_table_token_4_th consolidated u.s. net revenues , as a percentage of total net revenues , decreased by 3.0 percentage points to 59 % in fiscal 2011 from 62 % in fiscal 2010 mostly due to the weakness in the mobile product category . consolidated international net revenues , as a percentage of total net revenues , increased to 41 % in fiscal 2011 from 38 % in fiscal 2010. the increase in absolute dollars in the u.s. revenues was a result of increased occ revenues due to improved global economic conditions and growth in demand for uc . story_separator_special_tag the sale was completed effective december 1 , 2009 . all of the revenues in the aeg segment were derived from sales of altec lansing products . all operations of aeg have been classified as discontinued operations in the consolidated statement of operations for all periods presented . the results from discontinued operations in fiscal 2010 include a loss of $ 0.6 million on sale of altec lansing which is calculated as follows ( in thousands ) : proceeds received upon close $ 11,075 escrow payments received to date 2,065 remaining escrow payments to be received ( subsequently received in fiscal 2011 ) 1,625 payment to purchaser for adjustment for final value of net assets under apa ( 3,956 ) total estimated proceeds 10,809 book value of net assets sold ( 11,057 ) costs incurred upon closing ( 363 ) loss on sale of aeg $ ( 611 ) there was no income or loss from discontinued operations for the year ended march 31 , 2011. the results from discontinued operations for the years ended march 31 , 2010 and 2009 are as follows : replace_table_token_13_th 36 financial condition the table below provides selected consolidated cash flow information for the periods indicated : replace_table_token_14_th story_separator_special_tag style= `` font-family : inherit ; font-size:10pt ; color : # 000000 ; text-decoration : none ; `` > $ 169.9 million , consisting primarily of $ 256.3 million and $ 48.9 million for the purchase of short-term and long-term investments , respectively , along with capital expenditures of $ 18.6 million . these uses of cash were offset in part by net proceeds of $ 142.5 million from sales and maturities of short-term investments , $ 9.1 million from the sale of our suzhou facility classified as assets held for sale and $ 1.6 million in net proceeds from release of the escrow from the sale of altec lansing , our aeg segment . capital expenditures during fiscal 2011 related primarily to building and leasehold improvements including the installation of an expanded solar energy system in our headquarters in santa cruz , california , tooling and various it projects and equipment . in fiscal 2010 , net cash flows provided from investing activities were $ 67.9 million , consisting primarily of net maturities and sales of short-term investments of $ 64.0 million and $ 9.1 million in net proceeds from the sale of altec lansing offset in part by capital expenditures of $ 6.3 million . capital expenditures during fiscal 2010 primarily related to tooling and various it projects . in fiscal 2009 , net cash flows used for investing activities were $ 83.2 million , consisting primarily of capital expenditures of $ 23.7 million and net purchases of short-term investments of $ 59.9 million . significant capital expenditures during fiscal 2009 primarily related to $ 4.3 million in costs to complete construction of the new corporate data center in our santa cruz , california headquarters , $ 3.2 million for the construction of our engineering center in santa cruz , california and $ 2.3 million for various it projects . we anticipate our capital expenditures in fiscal 2012 to be in the range of $ 18.0 million to $ 20.0 million consisting primarily of building and leasehold improvements both in our u.s. and europe offices , it related expenditures and tooling for new products . we will continue to evaluate new business opportunities and new markets ; as a result , future growth within the existing business or new opportunities and markets may dictate the need for additional facilities and capital expenditures to support that growth . cash flows from financing activities net cash flows used for financing activities in fiscal 2011 were $ 55.4 million and consisted of $ 105.7 million used for the repurchase of common stock and $ 9.7 million in dividend payments , which were partially offset by $ 50.1 million in proceeds from the exercise of employee stock options , $ 4.2 million in proceeds from the sale of treasury stock issued for purchases under our employee stock purchase plan ( “ espp ” ) and $ 5.7 million of excess tax benefits from stock-based compensation . net cash flows used for financing activities in fiscal 2010 were $ 21.0 million and consisted of $ 49.7 million related to repurchases of common stock and $ 9.8 million in dividend payments , which were partially offset by $ 32.6 million in proceeds from the exercise of employee stock options , $ 3.6 million in proceeds from the sale of treasury stock issued for purchases under our espp and $ 2.2 million of excess tax benefits from stock-based compensation . net cash flows used for financing activities in fiscal 2009 were $ 14.9 million and consisted of $ 17.8 million related to repurchases of common stock and $ 9.8 million in dividend payments , which were partially offset by $ 6.9 million in proceeds from the exercise of employee stock options and $ 5.2 million in proceeds from the sale of treasury stock issued for purchases under our espp . 38 on may 3 , 2011 , we announced that our board of directors had declared a cash dividend of $ 0.05 per share of our common stock , payable on june 10 , 2011 to stockholders of record on may 20 , 2011. we expect to continue our quarterly dividend of $ 0.05 per common share . the actual declaration of future dividends , and the establishment of record and payment dates , is subject to final determination by the audit committee of the board of directors of plantronics each quarter after its review of our financial condition and financial performance . liquidity and capital resources our primary discretionary cash requirements historically have been to repurchase stock . at march 31 , 2011 , we had working capital of $ 524.1 million , including $ 430.0 million of cash , cash equivalents and short-term investments , compared with working
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2,680 | the average renewal lease term is reported in months and reflects the average renewal lease term of railcar types in the lpi , weighted by fleet composition . 27 rail north america fleet data the following table shows fleet activity for rail north america railcars , excluding boxcars , for the years ended december 31 : replace_table_token_9_th 28 the following table shows fleet statistics for rail north america boxcars for the years ended december 31 : replace_table_token_10_th the following table shows fleet activity for rail north america locomotives for the years ended december 31 : replace_table_token_11_th segment profit in 2019 , segment profit of $ 276.2 million decreased 10.3 % compared to $ 307.9 million in 2018 . the decrease was driven by lower net gains on asset dispositions , higher maintenance expense , and lower lease revenue , partially offset by higher other revenue . asset remarketing income is dependent on a number of factors and will vary from year to year . in 2018 , segment profit of $ 307.9 million increased 2.9 % compared to $ 299.3 million in 2017. the increase was driven by higher asset disposition gains and lower maintenance expense , partially offset by lower lease revenue and lower lease termination fees . 29 revenues in 2019 , lease revenue decreased $ 5.1 million , or 0.6 % . the decrease was due to lower lease rates , higher rental abatement attributable to more railcars in the maintenance network , and fewer locomotives on lease in the current year , partially offset by more railcars on lease . other revenue increased $ 28.1 million , due to higher repair revenue and higher lease termination fees in 2019. in 2018 , lease revenue decreased $ 26.5 million , or 2.9 % , primarily due to lower lease rates and fewer railcars on lease . other revenue decreased $ 9.4 million , largely a result of lower lease termination fees in 2018. other revenue in 2017 included $ 7.8 million as compensation for damage to returned railcars . the expenses to repair these railcars were recognized as incurred . expenses in 2019 , maintenance expense increased $ 13.2 million , driven by more tank qualifications in 2019 , as expected , as well as higher repairs performed by the railroads on gatx-owned railcars . depreciation expense increased $ 8.4 million due to new railcar investments , including the railcars acquired from ecn capital corporation in 2018. operating lease expense increased $ 4.8 million , primarily a result of the elimination of deferred gain amortization for sale-leaseback transactions in accordance with the new lease accounting standard . see `` note 2 . accounting changes `` and `` note 5 . leases `` in part ii , item 8 of this form 10-k for further detail regarding the impact of the new lease accounting standard . other operating expense decreased $ 3.4 million , primarily due to lower switching , storage , and freight costs as a result of continued high utilization . in 2018 , maintenance expense decreased $ 10.3 million , driven by fewer repairs performed by the railroads , as well as fewer tank qualifications and lower costs from assigning railcars to new lessees . depreciation expense increased $ 9.1 million due to railcar investments and the purchase of railcars previously on operating leases . operating lease expense decreased $ 11.1 million , resulting from the purchase of railcars previously on operating leases . other operating expense decreased $ 1.4 million , due to lower switching , storage , and freight costs , reflective of lower assignment activity . other income ( expense ) in 2019 , net gain on asset dispositions decreased $ 21.7 million , resulting from lower asset remarketing gains and lower net scrapping gains . net scrapping gains were lower in the current year due to certain railcars and locomotives scrapped at a loss , as well as lower scrap prices per ton . see `` note 23 . financial data of business segments `` , item 8 of this form 10-k , for further details of the components of net gain on asset dispositions . the amount and timing of disposition gains is dependent on a number of factors and will vary from year to year . net interest expense increased $ 9.3 million , driven by a higher average debt balance and a higher average interest rate . in 2018 , net gain on asset dispositions increased $ 31.1 million , attributable to more railcars sold in 2018 , as well as higher scrapping gains resulting primarily from a higher scrap price per ton . net interest expense increased $ 4.0 million , driven by a higher average interest rate and a higher average debt balance . investment volume during 2019 , investment volume was $ 502.2 million compared to $ 737.4 million in 2018 , and $ 460.9 million in 2017 . we acquired 3,225 railcars in 2019 , compared to 7,489 railcars , including 2,832 railcars purchased as part of the ecn capital corporation transaction in 2018 , and 3,613 railcars in 2017 . our investment volume is predominantly composed of acquired railcars , but also includes certain capitalized repairs and improvements to owned railcars and our maintenance facilities . as a result , the dollar value of investment volume does not necessarily correspond to the number of railcars acquired in any given period . in addition , the comparability of amounts invested and the number of railcars acquired in each period is impacted by the mix of railcars purchased , which may include tank cars and freight cars , as well as newly manufactured railcars or those purchased in the secondary market . story_separator_special_tag revenues in 2019 , lease revenue was comparable to the same period in 2018. marine operating revenue decreased $ 6.1 million , due to lower revenue from the specialized gas vessels . in 2019 , utilization of the vessels was lower due to idle time associated with the transition to a new commercial manager , as discussed previously . in 2018 , lease revenue decreased $ 2.8 million , primarily due to the impact of the sales of assets in 2017. marine operating revenue decreased $ 10.7 million , largely due to lower revenue from the specialized gas vessels and the absence of revenue from the marine assets that were sold in 2017. the revenue from the specialized gas vessels declined due to continued pressure on charter rates and lower utilization , resulting from weak demand and oversupply of vessels in the market . expenses in 2019 , marine operating expense increased $ 2.1 million . this increase was driven by the write-off of residual net assets as part of the wind-up of activities under the prior commercial management pooling agreement , partially offset by lower expenses from the specialized gas vessels . 36 in 2018 , marine operating expense decreased $ 8.0 million , primarily due to the absence of the marine assets that were sold in 2017 , as well as lower expenses from the specialized gas vessels , which included higher dry-docking costs in the prior year . other income ( expense ) in 2019 , net loss on asset dispositions increased $ 1.3 million , largely due to higher impairment losses for certain offshore supply vessels , partially offset by higher residual sharing fees from the managed portfolio . in 2018 , net gain ( loss ) on asset dispositions decreased $ 11.1 million . net gains of approximately $ 1.8 million were recorded in 2017 associated with the planned exit of marine investments . excluding this item , net gain ( loss ) on asset dispositions decreased $ 9.3 million due to lower residual sharing fees from the managed portfolio , as well as well as higher impairment losses for certain offshore supply vessels . in 2019 , income from our share of affiliates ' earnings increased $ 34.0 million . the increase was due to more engines on lease and increased residual realization at the rrpf affiliates . in 2018 , income from our share of affiliates ' earnings increased $ 2.1 million , primarily from earnings at the rrpf affiliates due to higher operating income , driven by engines added to the fleet in 2018 , partially offset by lower net disposition gains on engines sold . investment volume portfolio management did not make any investments in 2019. investment volume of $ 14.1 million in 2018 and $ 36.6 million in 2017 consisted primarily of equity investments in the rrpf affiliates . asc segment summary asc generated strong operating results in 2019 , driven by increased operational efficiency and favorable operating conditions . asc deployed 11 vessels , carrying 27.0 million net tons of freight in 2019 compared to 11 vessels carrying 26.2 million net tons in 2018 and 12 vessels carrying 27.8 million net tons in 2017. in 2019 , one of asc 's vessels was heavily damaged by fire during winter maintenance . as a result , the vessel was removed from service and written off . upon final assessment of the damage , the vessel was deemed a total loss , and insurance proceeds of $ 27.0 million were received , resulting in a net casualty gain of $ 10.5 million . during 2017 , asc sold three of its vessels for total proceeds of $ 8.3 million , resulting in a net loss of $ 1.8 million . in addition , asc returned two leased vessels . on february 7 , 2020 , we entered into an agreement to sell asc . the sale is subject to customary closing conditions . see `` note 25 . subsequent events `` in part ii , item 8 of this form 10-k for additional information . 37 the following table shows asc 's segment results for the years ended december 31 ( in millions ) : replace_table_token_17_th 38 segment profit in 2019 , segment profit was $ 46.1 million , compared to $ 33.0 million in 2018 . segment profit in 2019 included a net casualty gain of $ 10.5 million , as noted above . excluding this item , results for asc were $ 2.6 million higher than 2018. the increase was driven by higher volume and more efficient fleet performance as a result of favorable operating conditions . in 2018 , segment profit was $ 33.0 million , compared to $ 24.5 million in 2017. in 2018 , higher rates , favorable operating conditions , and efficient fleet performance more than offset lower volume . revenues in 2019 , marine operating revenue increased $ 5.8 million , or 3.2 % , primarily due to higher volume resulting from improved sailing conditions , partially offset by lower fuel revenue . the terms of our contracts provide that a substantial portion of fuel costs is passed on to customers . therefore , the variance in fuel revenue is offset by a corresponding variance in marine operating expense . in 2018 , marine operating revenue increased $ 13.3 million , or 7.9 % , primarily due to higher rates and late 2017 sailing season surcharges realized in 2018. higher fuel revenue , which is offset in marine operating expense , also contributed to the variance . expenses in 2019 , maintenance expense increased $ 1.9 million , driven by more winter work and higher operating repairs , partially offset by lower fuel costs . marine operating expense was comparable to the prior year . in 2018 , maintenance expense was comparable to the prior year . marine operating expense increased $ 7.9 million , largely driven by higher fuel costs , partially offset
| debt total debt increased $ 255.7 million from the prior year . issuances of long-term debt of $ 748.5 million were offset by maturities and principal payments of $ 504.6 million and the effects of foreign exchange on foreign debt balances . the following table shows the details of our long-term debt issuances in 2019 ( $ in millions ) : replace_table_token_21_th ( 1 ) floating interest rate at december 31 , 2019 . as of december 31 , 2019 , our outstanding debt had a weighted-average remaining term of 8.7 years and a weighted-average interest rate of 4.08 % , compared to 8.9 years and 4.01 % at december 31 , 2018. the following table shows the carrying value of our debt and lease obligations by major component , including off-balance sheet debt , as of december 31 ( in millions ) : replace_table_token_22_th ( 1 ) prior to 2019 , off-balance sheet debt represented the estimated present value of committed operating lease payments for certain railcars that have been financed through sale-leasebacks and was equal to the amount reported as off-balance sheet assets . in accordance with the new lease accounting standard , we no longer have any assets that qualify as off-balance sheet assets beginning in 2019. the adoption of this new standard required us to recognize operating lease liabilities on our balance sheet . see “ non-gaap financial measures ” at the end of this item . 42 see `` note 7 . debt `` in part ii , item 8 of this form 10-k. equity total equity increased $ 47.0 million in 2019 , primarily due to net income of $ 211.2 million , $ 39.4 million from the impact of adoption of new accounting standards as of january 1 , 2019 , $ 13.7 million from the effects of share-based compensation , $ 7.2 million from the effects of post-retirement benefit plan adjustments , and $ 3.9 million of net unrealized gains on derivatives .
| 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 total debt increased $ 255.7 million from the prior year . issuances of long-term debt of $ 748.5 million were offset by maturities and principal payments of $ 504.6 million and the effects of foreign exchange on foreign debt balances . the following table shows the details of our long-term debt issuances in 2019 ( $ in millions ) : replace_table_token_21_th ( 1 ) floating interest rate at december 31 , 2019 . as of december 31 , 2019 , our outstanding debt had a weighted-average remaining term of 8.7 years and a weighted-average interest rate of 4.08 % , compared to 8.9 years and 4.01 % at december 31 , 2018. the following table shows the carrying value of our debt and lease obligations by major component , including off-balance sheet debt , as of december 31 ( in millions ) : replace_table_token_22_th ( 1 ) prior to 2019 , off-balance sheet debt represented the estimated present value of committed operating lease payments for certain railcars that have been financed through sale-leasebacks and was equal to the amount reported as off-balance sheet assets . in accordance with the new lease accounting standard , we no longer have any assets that qualify as off-balance sheet assets beginning in 2019. the adoption of this new standard required us to recognize operating lease liabilities on our balance sheet . see “ non-gaap financial measures ” at the end of this item . 42 see `` note 7 . debt `` in part ii , item 8 of this form 10-k. equity total equity increased $ 47.0 million in 2019 , primarily due to net income of $ 211.2 million , $ 39.4 million from the impact of adoption of new accounting standards as of january 1 , 2019 , $ 13.7 million from the effects of share-based compensation , $ 7.2 million from the effects of post-retirement benefit plan adjustments , and $ 3.9 million of net unrealized gains on derivatives .
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Suspicious Activity Report : the average renewal lease term is reported in months and reflects the average renewal lease term of railcar types in the lpi , weighted by fleet composition . 27 rail north america fleet data the following table shows fleet activity for rail north america railcars , excluding boxcars , for the years ended december 31 : replace_table_token_9_th 28 the following table shows fleet statistics for rail north america boxcars for the years ended december 31 : replace_table_token_10_th the following table shows fleet activity for rail north america locomotives for the years ended december 31 : replace_table_token_11_th segment profit in 2019 , segment profit of $ 276.2 million decreased 10.3 % compared to $ 307.9 million in 2018 . the decrease was driven by lower net gains on asset dispositions , higher maintenance expense , and lower lease revenue , partially offset by higher other revenue . asset remarketing income is dependent on a number of factors and will vary from year to year . in 2018 , segment profit of $ 307.9 million increased 2.9 % compared to $ 299.3 million in 2017. the increase was driven by higher asset disposition gains and lower maintenance expense , partially offset by lower lease revenue and lower lease termination fees . 29 revenues in 2019 , lease revenue decreased $ 5.1 million , or 0.6 % . the decrease was due to lower lease rates , higher rental abatement attributable to more railcars in the maintenance network , and fewer locomotives on lease in the current year , partially offset by more railcars on lease . other revenue increased $ 28.1 million , due to higher repair revenue and higher lease termination fees in 2019. in 2018 , lease revenue decreased $ 26.5 million , or 2.9 % , primarily due to lower lease rates and fewer railcars on lease . other revenue decreased $ 9.4 million , largely a result of lower lease termination fees in 2018. other revenue in 2017 included $ 7.8 million as compensation for damage to returned railcars . the expenses to repair these railcars were recognized as incurred . expenses in 2019 , maintenance expense increased $ 13.2 million , driven by more tank qualifications in 2019 , as expected , as well as higher repairs performed by the railroads on gatx-owned railcars . depreciation expense increased $ 8.4 million due to new railcar investments , including the railcars acquired from ecn capital corporation in 2018. operating lease expense increased $ 4.8 million , primarily a result of the elimination of deferred gain amortization for sale-leaseback transactions in accordance with the new lease accounting standard . see `` note 2 . accounting changes `` and `` note 5 . leases `` in part ii , item 8 of this form 10-k for further detail regarding the impact of the new lease accounting standard . other operating expense decreased $ 3.4 million , primarily due to lower switching , storage , and freight costs as a result of continued high utilization . in 2018 , maintenance expense decreased $ 10.3 million , driven by fewer repairs performed by the railroads , as well as fewer tank qualifications and lower costs from assigning railcars to new lessees . depreciation expense increased $ 9.1 million due to railcar investments and the purchase of railcars previously on operating leases . operating lease expense decreased $ 11.1 million , resulting from the purchase of railcars previously on operating leases . other operating expense decreased $ 1.4 million , due to lower switching , storage , and freight costs , reflective of lower assignment activity . other income ( expense ) in 2019 , net gain on asset dispositions decreased $ 21.7 million , resulting from lower asset remarketing gains and lower net scrapping gains . net scrapping gains were lower in the current year due to certain railcars and locomotives scrapped at a loss , as well as lower scrap prices per ton . see `` note 23 . financial data of business segments `` , item 8 of this form 10-k , for further details of the components of net gain on asset dispositions . the amount and timing of disposition gains is dependent on a number of factors and will vary from year to year . net interest expense increased $ 9.3 million , driven by a higher average debt balance and a higher average interest rate . in 2018 , net gain on asset dispositions increased $ 31.1 million , attributable to more railcars sold in 2018 , as well as higher scrapping gains resulting primarily from a higher scrap price per ton . net interest expense increased $ 4.0 million , driven by a higher average interest rate and a higher average debt balance . investment volume during 2019 , investment volume was $ 502.2 million compared to $ 737.4 million in 2018 , and $ 460.9 million in 2017 . we acquired 3,225 railcars in 2019 , compared to 7,489 railcars , including 2,832 railcars purchased as part of the ecn capital corporation transaction in 2018 , and 3,613 railcars in 2017 . our investment volume is predominantly composed of acquired railcars , but also includes certain capitalized repairs and improvements to owned railcars and our maintenance facilities . as a result , the dollar value of investment volume does not necessarily correspond to the number of railcars acquired in any given period . in addition , the comparability of amounts invested and the number of railcars acquired in each period is impacted by the mix of railcars purchased , which may include tank cars and freight cars , as well as newly manufactured railcars or those purchased in the secondary market . story_separator_special_tag revenues in 2019 , lease revenue was comparable to the same period in 2018. marine operating revenue decreased $ 6.1 million , due to lower revenue from the specialized gas vessels . in 2019 , utilization of the vessels was lower due to idle time associated with the transition to a new commercial manager , as discussed previously . in 2018 , lease revenue decreased $ 2.8 million , primarily due to the impact of the sales of assets in 2017. marine operating revenue decreased $ 10.7 million , largely due to lower revenue from the specialized gas vessels and the absence of revenue from the marine assets that were sold in 2017. the revenue from the specialized gas vessels declined due to continued pressure on charter rates and lower utilization , resulting from weak demand and oversupply of vessels in the market . expenses in 2019 , marine operating expense increased $ 2.1 million . this increase was driven by the write-off of residual net assets as part of the wind-up of activities under the prior commercial management pooling agreement , partially offset by lower expenses from the specialized gas vessels . 36 in 2018 , marine operating expense decreased $ 8.0 million , primarily due to the absence of the marine assets that were sold in 2017 , as well as lower expenses from the specialized gas vessels , which included higher dry-docking costs in the prior year . other income ( expense ) in 2019 , net loss on asset dispositions increased $ 1.3 million , largely due to higher impairment losses for certain offshore supply vessels , partially offset by higher residual sharing fees from the managed portfolio . in 2018 , net gain ( loss ) on asset dispositions decreased $ 11.1 million . net gains of approximately $ 1.8 million were recorded in 2017 associated with the planned exit of marine investments . excluding this item , net gain ( loss ) on asset dispositions decreased $ 9.3 million due to lower residual sharing fees from the managed portfolio , as well as well as higher impairment losses for certain offshore supply vessels . in 2019 , income from our share of affiliates ' earnings increased $ 34.0 million . the increase was due to more engines on lease and increased residual realization at the rrpf affiliates . in 2018 , income from our share of affiliates ' earnings increased $ 2.1 million , primarily from earnings at the rrpf affiliates due to higher operating income , driven by engines added to the fleet in 2018 , partially offset by lower net disposition gains on engines sold . investment volume portfolio management did not make any investments in 2019. investment volume of $ 14.1 million in 2018 and $ 36.6 million in 2017 consisted primarily of equity investments in the rrpf affiliates . asc segment summary asc generated strong operating results in 2019 , driven by increased operational efficiency and favorable operating conditions . asc deployed 11 vessels , carrying 27.0 million net tons of freight in 2019 compared to 11 vessels carrying 26.2 million net tons in 2018 and 12 vessels carrying 27.8 million net tons in 2017. in 2019 , one of asc 's vessels was heavily damaged by fire during winter maintenance . as a result , the vessel was removed from service and written off . upon final assessment of the damage , the vessel was deemed a total loss , and insurance proceeds of $ 27.0 million were received , resulting in a net casualty gain of $ 10.5 million . during 2017 , asc sold three of its vessels for total proceeds of $ 8.3 million , resulting in a net loss of $ 1.8 million . in addition , asc returned two leased vessels . on february 7 , 2020 , we entered into an agreement to sell asc . the sale is subject to customary closing conditions . see `` note 25 . subsequent events `` in part ii , item 8 of this form 10-k for additional information . 37 the following table shows asc 's segment results for the years ended december 31 ( in millions ) : replace_table_token_17_th 38 segment profit in 2019 , segment profit was $ 46.1 million , compared to $ 33.0 million in 2018 . segment profit in 2019 included a net casualty gain of $ 10.5 million , as noted above . excluding this item , results for asc were $ 2.6 million higher than 2018. the increase was driven by higher volume and more efficient fleet performance as a result of favorable operating conditions . in 2018 , segment profit was $ 33.0 million , compared to $ 24.5 million in 2017. in 2018 , higher rates , favorable operating conditions , and efficient fleet performance more than offset lower volume . revenues in 2019 , marine operating revenue increased $ 5.8 million , or 3.2 % , primarily due to higher volume resulting from improved sailing conditions , partially offset by lower fuel revenue . the terms of our contracts provide that a substantial portion of fuel costs is passed on to customers . therefore , the variance in fuel revenue is offset by a corresponding variance in marine operating expense . in 2018 , marine operating revenue increased $ 13.3 million , or 7.9 % , primarily due to higher rates and late 2017 sailing season surcharges realized in 2018. higher fuel revenue , which is offset in marine operating expense , also contributed to the variance . expenses in 2019 , maintenance expense increased $ 1.9 million , driven by more winter work and higher operating repairs , partially offset by lower fuel costs . marine operating expense was comparable to the prior year . in 2018 , maintenance expense was comparable to the prior year . marine operating expense increased $ 7.9 million , largely driven by higher fuel costs , partially offset
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2,681 | through our sierra brand , we manufacture a wide range of high-performance bullets and ammunition for both rifles and pistols that are used for precision target shooting , hunting and military and law enforcement purposes . clarus corporation , incorporated in delaware in 1991 , acquired black diamond equipment , ltd. ( which may be referred to as “ black diamond equipment ” ) and gregory mountain products , llc ( which may be referred to as “ gregory mountain products ” or “ gregory ” ) in may 2010 and changed its name to black diamond , inc. , in january 2011. in july 2012 , we acquired poc sweden ab and its subsidiaries ( collectively , “ poc ” ) and in october 2012 , we acquired pieps holding gmbh and its subsidiaries ( collectively , “ pieps ” ) . on july 23 , 2014 , the company completed the sale of certain assets to samsonite llc comprising gregory mountain product 's business . on october 7 , 2015 , the company sold its equity interests in poc . on august 14 , 2017 , the company changed its name from black diamond , inc. to clarus corporation and its stock ticker symbol from “ bde ” to “ clar ” on the nasdaq stock exchange . on august 21 , 2017 , the company acquired sierra bullets , l.l.c . ( “ sierra ” ) . on november 6 , 2018 , the company acquired the assets of skinourishment , inc. ( “ skinourishment ” ) . 28 on may 7 , 2018 , the company announced a “ modified dutch auction ” tender offer for clarus ' common stock , as well as the preferred share purchase rights associated with such shares ( collectively , the “ shares ” ) . on july 11 , 2018 , the tender offer expired , following which the company announced it would accept 417,237 shares for purchase at a price of $ 8.00 per share , for an aggregate cost of approximately $ 3,338,000 , excluding fees and expenses . on august 6 , 2018 , the company announced that its board of directors approved the initiation of a quarterly cash dividend program of $ 0.025 per share of the company 's common stock ( the “ quarterly cash dividend ” ) or $ 0.10 per share on an annualized basis . in 2018 , our total quarterly cash dividends were $ 1,488,000. on january 18 , 2019 , the company announced that its board of directors approved the payment on february 8 , 2019 of the quarterly cash dividend to the record holders of shares of the company 's common stock as of the close of business on january 29 , 2019. critical accounting policies and use of estimates management 's discussion of our financial condition and results of operations is based on the consolidated financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles ( “ gaap ” ) . the preparation of the consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements . estimates also affect the reported amounts of revenues and expenses during the reporting periods . we continually evaluate our estimates and assumptions including those related to derivatives , revenue recognition , income taxes and valuation of long-lived assets , goodwill and other intangible assets . we base our estimates on historical experience and other assumptions that are believed to be reasonable under the circumstances . actual results could differ from these estimates . we believe the following critical accounting policies include the more significant estimates and assumptions used in the preparation of our consolidated financial statements . our accounting policies are more fully described in note 1 of our consolidated financial statements . · we allocate the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values . the excess of the purchase price over these fair values is recorded as goodwill . we engage independent third-party valuation specialists to assist us in determining the fair values of certain assets acquired and liabilities assumed . such valuations require management to make significant estimates and assumptions , especially with respect to intangible assets . significant estimates in valuing certain intangible assets include but are not limited to the projected financial information related to each individual asset , particularly forecasted revenue . management 's estimates of fair value are based upon assumptions believed to be reasonable , but which are inherently uncertain and unpredictable and thus , actual results may differ from estimates . · we account for income taxes using the asset and liability method . the asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities , and for operating loss and tax credit carryforwards . we may make assumptions , judgments and estimates in order to determine the future taxable income available to support the recoverability of deferred tax assets at a more-likely-than-not threshold . the sources of future taxable income include 1 ) future reversal of existing taxable temporary differences , 2 ) taxable income in carryback years if carryback is permitted , 3 ) future taxable income from future operations , and 4 ) tax planning strategies . the degree and subjectivity and judgment increases as the source of future taxable income becomes more inherently subjective . our assumptions , judgments and estimates relative to the realizability of a deferred tax asset take into account predictions of the amount and category of expected future taxable income . story_separator_special_tag gross profit consolidated gross profit increased $ 10,126 , or 23.2 % , to $ 53,810 during the year ended december 31 , 2017 , compared to consolidated gross profit of $ 43,684 during the year ended december 31 , 2016. consolidated gross margin was 31.5 % during the year ended december 31 , 2017 , compared to a consolidated gross margin of 29.5 % during the year ended december 31 , 2016. consolidated gross margin during the year ended december 31 , 2017 , increased compared to the prior year due to a favorable product mix in higher margin products and channel distribution , as well as lower costs related to the company 's manufacturing activities that were transferred from china to the united states . gross margin also benefited from the inclusion of sierra ; however , this benefit was offset by a decrease in gross margin of 1.2 % due to the sale of inventory that was recorded at its preliminary fair value in purchase accounting during the year ended december 31 , 2017. selling , general and administrative consolidated selling , general and administrative expenses increased $ 6,359 , or 12.7 % , to $ 56,295 during the year ended december 31 , 2017 , compared to consolidated selling , general and administrative expenses of $ 49,936 during the year ended december 31 , 2016. the increase in selling , general and administrative expenses was partially attributable to the inclusion of sierra of $ 2,370 , with the remaining increase being attributable to the company 's investment in the brand related activities of sales , marketing and research and development in supporting its strategic initiatives around new product introduction and increasing brand equity . stock compensation also increased $ 954 during the year ended december 31 , 2017 compared to the prior year . restructuring charges consolidated restructuring expense decreased $ 1,235 , or 88.5 % , to $ 160 during the year ended december 31 , 2017 , compared to consolidated restructuring expense of $ 1,395 during the year ended december 31 , 2016. restructuring expenses incurred during the year ended december 31 , 2017 , related to costs associated with the formal closure and liquidation of the company 's black diamond equipment manufacturing operations in zhuhai , china . restructuring expenses incurred during the year ended december 31 , 2016 , primarily related to benefits provided to employees who were terminated due to the company 's reduction-in-force as part of its continued realignment of resources within the organization , costs associated with the move of the company 's black diamond equipment european office from basel , switzerland to innsbruck , austria , and costs associated with the formal closure and liquidation of the company 's black diamond equipment manufacturing operations in zhuhai , china . merger and integration costs consolidated merger and integration expense increased to $ 82 during the year ended december 31 , 2017 compared to consolidated merger and integration expense of $ 0 during the year ended december 31 , 2016 , which consisted of expenses related to the integration of sierra . transaction costs consolidated transaction expense increased $ 1,798 , or 620.0 % , to $ 2,088 during the year ended december 31 , 2017 , compared to consolidated transaction costs of $ 290 during the year ended december 31 , 2016. the expenses during the year ended december 31 , 2017 consisted of expenses related to the company 's acquisition of sierra . upon the company 's acquisition of sierra , on august 21 , 2017 , the company paid a fee in the amount of $ 1,000 to kanders & company , inc. ( “ kanders & company ” ) in consideration of the significant support received by the company from kanders & company in sourcing , structuring , performing due diligence and negotiating the acquisition . mr. warren b. kanders , the company 's executive chairman of the board of directors and a member of its board of directors , is the sole stockholder of kanders & company . the expenses during the year ended december 31 , 2016 consisted of expenses related to the company 's redeployment and diversification strategy . arbitration award during the year ended december 31 , 2016 , the company received an arbitral award on agreed terms of $ 1,967 , related to certain claims against the former owner of pieps associated with the voluntary recall of all the pieps vector avalanche transceivers during the year ended december 31 , 2013 . 35 interest expense , net consolidated interest expense , net , decreased $ 1,588 , or 55.2 % , to $ 1,288 during the year ended december 31 , 2017 , compared to consolidated interest expense , net , of $ 2,876 during the year ended december 31 , 2016. the decrease in interest expense , net , was primarily attributable to the repayment of the company 's 5 % senior subordinated notes during the three months ended march 31 , 2017. other , net consolidated other , net , decreased $ 190 , or 35.6 % , to income of $ 343 during the year ended december 31 , 2017 , compared to consolidated other , net income of $ 533 during the year ended december 31 , 2016. the decrease in other , net , was primarily attributable to a decrease in remeasurement gains recognized on the company 's foreign denominated accounts receivable and accounts payable , losses on mark-to-market adjustments on non-hedged foreign currency contracts and the absence of gains related to the sale of marketable securities during the year ended december 31 , 2017. these losses were partially offset by gains related to recognition of cumulative translation adjustments due to the substantial liquidation of a foreign entity . income taxes on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as the tax act . the tax act made
| liquidity and capital resources consolidated year ended december 31 , 2018 compared to consolidated year ended december 31 , 2017 the following presents a discussion of cash flows for the consolidated year ended december 31 , 2018 compared with the consolidated year ended december 31 , 2017. our primary ongoing funding requirements are for working capital , expansion of our operations ( both organically and through acquisitions ) and general corporate needs , as well as investing activities associated with the expansion into new product categories . we plan to fund these activities through a combination of our future operating cash flows and revolving credit facility . we believe that our liquidity requirements for at least the next 12 months will be adequately covered by cash provided by operations and our existing revolving credit facility . at december 31 , 2018 , we had total cash of $ 2,486 compared to a cash balance of $ 1,856 at december 31 , 2017 , which was substantially controlled by the company 's u.s. entities . at december 31 , 2018 , the company had $ 1,616 of the $ 2,486 in cash held by foreign entities , of which $ 554 is considered permanently reinvested .
| 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 consolidated year ended december 31 , 2018 compared to consolidated year ended december 31 , 2017 the following presents a discussion of cash flows for the consolidated year ended december 31 , 2018 compared with the consolidated year ended december 31 , 2017. our primary ongoing funding requirements are for working capital , expansion of our operations ( both organically and through acquisitions ) and general corporate needs , as well as investing activities associated with the expansion into new product categories . we plan to fund these activities through a combination of our future operating cash flows and revolving credit facility . we believe that our liquidity requirements for at least the next 12 months will be adequately covered by cash provided by operations and our existing revolving credit facility . at december 31 , 2018 , we had total cash of $ 2,486 compared to a cash balance of $ 1,856 at december 31 , 2017 , which was substantially controlled by the company 's u.s. entities . at december 31 , 2018 , the company had $ 1,616 of the $ 2,486 in cash held by foreign entities , of which $ 554 is considered permanently reinvested .
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Suspicious Activity Report : through our sierra brand , we manufacture a wide range of high-performance bullets and ammunition for both rifles and pistols that are used for precision target shooting , hunting and military and law enforcement purposes . clarus corporation , incorporated in delaware in 1991 , acquired black diamond equipment , ltd. ( which may be referred to as “ black diamond equipment ” ) and gregory mountain products , llc ( which may be referred to as “ gregory mountain products ” or “ gregory ” ) in may 2010 and changed its name to black diamond , inc. , in january 2011. in july 2012 , we acquired poc sweden ab and its subsidiaries ( collectively , “ poc ” ) and in october 2012 , we acquired pieps holding gmbh and its subsidiaries ( collectively , “ pieps ” ) . on july 23 , 2014 , the company completed the sale of certain assets to samsonite llc comprising gregory mountain product 's business . on october 7 , 2015 , the company sold its equity interests in poc . on august 14 , 2017 , the company changed its name from black diamond , inc. to clarus corporation and its stock ticker symbol from “ bde ” to “ clar ” on the nasdaq stock exchange . on august 21 , 2017 , the company acquired sierra bullets , l.l.c . ( “ sierra ” ) . on november 6 , 2018 , the company acquired the assets of skinourishment , inc. ( “ skinourishment ” ) . 28 on may 7 , 2018 , the company announced a “ modified dutch auction ” tender offer for clarus ' common stock , as well as the preferred share purchase rights associated with such shares ( collectively , the “ shares ” ) . on july 11 , 2018 , the tender offer expired , following which the company announced it would accept 417,237 shares for purchase at a price of $ 8.00 per share , for an aggregate cost of approximately $ 3,338,000 , excluding fees and expenses . on august 6 , 2018 , the company announced that its board of directors approved the initiation of a quarterly cash dividend program of $ 0.025 per share of the company 's common stock ( the “ quarterly cash dividend ” ) or $ 0.10 per share on an annualized basis . in 2018 , our total quarterly cash dividends were $ 1,488,000. on january 18 , 2019 , the company announced that its board of directors approved the payment on february 8 , 2019 of the quarterly cash dividend to the record holders of shares of the company 's common stock as of the close of business on january 29 , 2019. critical accounting policies and use of estimates management 's discussion of our financial condition and results of operations is based on the consolidated financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles ( “ gaap ” ) . the preparation of the consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements . estimates also affect the reported amounts of revenues and expenses during the reporting periods . we continually evaluate our estimates and assumptions including those related to derivatives , revenue recognition , income taxes and valuation of long-lived assets , goodwill and other intangible assets . we base our estimates on historical experience and other assumptions that are believed to be reasonable under the circumstances . actual results could differ from these estimates . we believe the following critical accounting policies include the more significant estimates and assumptions used in the preparation of our consolidated financial statements . our accounting policies are more fully described in note 1 of our consolidated financial statements . · we allocate the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values . the excess of the purchase price over these fair values is recorded as goodwill . we engage independent third-party valuation specialists to assist us in determining the fair values of certain assets acquired and liabilities assumed . such valuations require management to make significant estimates and assumptions , especially with respect to intangible assets . significant estimates in valuing certain intangible assets include but are not limited to the projected financial information related to each individual asset , particularly forecasted revenue . management 's estimates of fair value are based upon assumptions believed to be reasonable , but which are inherently uncertain and unpredictable and thus , actual results may differ from estimates . · we account for income taxes using the asset and liability method . the asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities , and for operating loss and tax credit carryforwards . we may make assumptions , judgments and estimates in order to determine the future taxable income available to support the recoverability of deferred tax assets at a more-likely-than-not threshold . the sources of future taxable income include 1 ) future reversal of existing taxable temporary differences , 2 ) taxable income in carryback years if carryback is permitted , 3 ) future taxable income from future operations , and 4 ) tax planning strategies . the degree and subjectivity and judgment increases as the source of future taxable income becomes more inherently subjective . our assumptions , judgments and estimates relative to the realizability of a deferred tax asset take into account predictions of the amount and category of expected future taxable income . story_separator_special_tag gross profit consolidated gross profit increased $ 10,126 , or 23.2 % , to $ 53,810 during the year ended december 31 , 2017 , compared to consolidated gross profit of $ 43,684 during the year ended december 31 , 2016. consolidated gross margin was 31.5 % during the year ended december 31 , 2017 , compared to a consolidated gross margin of 29.5 % during the year ended december 31 , 2016. consolidated gross margin during the year ended december 31 , 2017 , increased compared to the prior year due to a favorable product mix in higher margin products and channel distribution , as well as lower costs related to the company 's manufacturing activities that were transferred from china to the united states . gross margin also benefited from the inclusion of sierra ; however , this benefit was offset by a decrease in gross margin of 1.2 % due to the sale of inventory that was recorded at its preliminary fair value in purchase accounting during the year ended december 31 , 2017. selling , general and administrative consolidated selling , general and administrative expenses increased $ 6,359 , or 12.7 % , to $ 56,295 during the year ended december 31 , 2017 , compared to consolidated selling , general and administrative expenses of $ 49,936 during the year ended december 31 , 2016. the increase in selling , general and administrative expenses was partially attributable to the inclusion of sierra of $ 2,370 , with the remaining increase being attributable to the company 's investment in the brand related activities of sales , marketing and research and development in supporting its strategic initiatives around new product introduction and increasing brand equity . stock compensation also increased $ 954 during the year ended december 31 , 2017 compared to the prior year . restructuring charges consolidated restructuring expense decreased $ 1,235 , or 88.5 % , to $ 160 during the year ended december 31 , 2017 , compared to consolidated restructuring expense of $ 1,395 during the year ended december 31 , 2016. restructuring expenses incurred during the year ended december 31 , 2017 , related to costs associated with the formal closure and liquidation of the company 's black diamond equipment manufacturing operations in zhuhai , china . restructuring expenses incurred during the year ended december 31 , 2016 , primarily related to benefits provided to employees who were terminated due to the company 's reduction-in-force as part of its continued realignment of resources within the organization , costs associated with the move of the company 's black diamond equipment european office from basel , switzerland to innsbruck , austria , and costs associated with the formal closure and liquidation of the company 's black diamond equipment manufacturing operations in zhuhai , china . merger and integration costs consolidated merger and integration expense increased to $ 82 during the year ended december 31 , 2017 compared to consolidated merger and integration expense of $ 0 during the year ended december 31 , 2016 , which consisted of expenses related to the integration of sierra . transaction costs consolidated transaction expense increased $ 1,798 , or 620.0 % , to $ 2,088 during the year ended december 31 , 2017 , compared to consolidated transaction costs of $ 290 during the year ended december 31 , 2016. the expenses during the year ended december 31 , 2017 consisted of expenses related to the company 's acquisition of sierra . upon the company 's acquisition of sierra , on august 21 , 2017 , the company paid a fee in the amount of $ 1,000 to kanders & company , inc. ( “ kanders & company ” ) in consideration of the significant support received by the company from kanders & company in sourcing , structuring , performing due diligence and negotiating the acquisition . mr. warren b. kanders , the company 's executive chairman of the board of directors and a member of its board of directors , is the sole stockholder of kanders & company . the expenses during the year ended december 31 , 2016 consisted of expenses related to the company 's redeployment and diversification strategy . arbitration award during the year ended december 31 , 2016 , the company received an arbitral award on agreed terms of $ 1,967 , related to certain claims against the former owner of pieps associated with the voluntary recall of all the pieps vector avalanche transceivers during the year ended december 31 , 2013 . 35 interest expense , net consolidated interest expense , net , decreased $ 1,588 , or 55.2 % , to $ 1,288 during the year ended december 31 , 2017 , compared to consolidated interest expense , net , of $ 2,876 during the year ended december 31 , 2016. the decrease in interest expense , net , was primarily attributable to the repayment of the company 's 5 % senior subordinated notes during the three months ended march 31 , 2017. other , net consolidated other , net , decreased $ 190 , or 35.6 % , to income of $ 343 during the year ended december 31 , 2017 , compared to consolidated other , net income of $ 533 during the year ended december 31 , 2016. the decrease in other , net , was primarily attributable to a decrease in remeasurement gains recognized on the company 's foreign denominated accounts receivable and accounts payable , losses on mark-to-market adjustments on non-hedged foreign currency contracts and the absence of gains related to the sale of marketable securities during the year ended december 31 , 2017. these losses were partially offset by gains related to recognition of cumulative translation adjustments due to the substantial liquidation of a foreign entity . income taxes on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as the tax act . the tax act made
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2,682 | the bank opened its twenty-fourth branch office in late 2011. the branch is located within a senior housing development , harrogate , in lakewood , new jersey and maintains limited hours for residents and employees of the retirement community . the bank currently plans to open an additional branch office in jackson , new jersey in late 2012 or early 2013. core account development has benefited from bank efforts to attract business deposits in conjunction with its commercial 41 lending operations and from an expanded mix of retail core account products . additionally , marketing and incentive plans have focused on core account growth . as a result of these efforts the bank 's core deposit ratio has grown to 84.2 % at december 31 , 2011 as compared to 60.5 % at december 31 , 2006 and only 33.0 % at december 31 , 1997. core deposits are generally considered a less expensive and more stable funding source than certificates of deposit . management continues to diversify the bank 's product line in order to enhance non-interest income . the bank offers alternative investment products ( annuities , mutual funds and life insurance ) for sale through its retail branch network . the products are non-proprietary , sold through a third party vendor , and provide the bank with fee income opportunities . in early 2005 , the alternative investment program was expanded to add licensed bank employees which allows the bank to capture more of the revenue associated with the sale of investment products . the bank offers trust and asset management services and has also expanded the non-interest income received from business relationships by offering fee based products , including merchant services . as a result of these initiatives , income from fees and service charges has increased to $ 11.4 million for the year ended december 31 , 2011 as compared to $ 10.5 million for the year ended december 31 , 2006 and only $ 1.4 million for the year ended december 31 , 1997. the bank also offers reverse mortgage loans which are sold into the secondary market . the gain on sale from selling reverse mortgages is included in the net gain on sales of loans available for sale . in addition to the objectives described above , in 2011 the company determined to more actively manage its capital position to improve return on equity . in the fourth quarter of 2011 , the company announced its intention to repurchase up to 942,306 shares , or 5 % , of its outstanding common stock . through december 31 , 2011 , the company had repurchased 165,154 shares of common stock for $ 2.1 million . summary interest-earning assets , both loans and securities , are generally priced against longer-term indices , while interest-bearing liabilities , primarily deposits and borrowings , are generally priced against shorter-term indices . in 2011 , the company 's net interest margin has contracted as compared to prior year periods . due to the low interest rate environment , high loan refinance volume has caused yields on loans and mortgage-backed securities to trend downward . at the same time , the company 's asset mix has shifted as higher-yielding loans have decreased due to weak demand , prepayments and the sale of newly originated 30-year fixed-rate one-to-four family loans , while lower-yielding interest-earning deposits and securities have increased . management expects the low interest rate environment to continue beyond 2012 , resulting in further pressure on the net interest margin . in addition to the interest rate environment , the company is dependent upon national and local economic conditions . the overall economy remains weak with continued high unemployment coupled with concern surrounding the housing market . these conditions have had an adverse impact on the company 's results of operations . highlights of the company 's financial results for the year ended december 31 , 2011 were as follows : total assets increased to $ 2.302 billion at december 31 , 2011 , from $ 2.251 billion at december 31 , 2010. loans receivable , net decreased $ 97.8 million , or 5.9 % , at december 31 , 2011 , as compared to december 31 , 2010 primarily due to weak demand , prepayments resulting from the low interest rate environment and the sale of newly originated 30-year fixed-rate one-to-four family loans . investment securities available for sale increased by $ 73.4 million , or 79.8 % , to $ 165.3 million at december 31 , 2011 , from $ 91.9 million at december 31 , 2010. deposits increased by $ 42.1 million , or 2.5 % , at december 31 , 2011 , as compared to december 31 , 2010. an increase of $ 58.3 million in core deposits ( i.e . all deposits excluding time deposits ) was partly offset by a decline in time deposits , which decreased $ 16.2 million . at december 31 , 2011 , core deposits , a key focus for the company , represented 84.2 % of total deposits . for the year ended december 31 , 2011 , net income increased to $ 20.7 million , or $ 1.14 per diluted share , as compared to net income of $ 20.4 million , or $ 1.12 per diluted share for the prior year . for the year ended december 31 , 2010 , diluted earnings per share included $ 922,000 , or $ .05 per share , relating to the reduction in the state tax valuation allowance . net interest income for the year ended december 31 , 2011 increased to $ 77.3 million , as compared to $ 77.1 million in the prior year , reflecting greater average interest-earning assets partly offset by a decrease in the net interest margin to 3.59 % for the year ended december 31 , 2011 as compared to 3.69 % in the prior year . story_separator_special_tag stockholders ' equity at december 31 , 2011 increased by 7.8 % , to $ 216.8 million , as compared to $ 201.3 million at december 31 , 2010 , primarily due to net income and a reduction in accumulated other comprehensive loss partly offset by the cash dividend on common stock and by the repurchase of 165,154 shares of common stock for $ 2.1 million . 47 comparison of operating results for the years ended december 31 , 2011 and december 31 , 2010 general net income for year ended december 31 , 2011 increased to $ 20.7 million , as compared to net income of $ 20.4 million for the prior year . on a per share basis , diluted earnings per share increased 1.8 % , to $ 1.14 , for the year ended december 31 , 2011 , as compared to $ 1.12 for the prior year . for the year ended december 31 , 2010 , diluted earnings per share included $ 922,000 , or $ .05 per share , relating to the reduction in the state tax valuation allowance . interest income interest income for the year ended december 31 , 2011 was $ 95.4 million as compared to $ 101.4 million for the year ended december 31 , 2010. the yield on interest-earning assets declined to 4.43 % for the year ended december 31 , 2011 , as compared to 4.86 % for the prior year . this decline was due to a change in the mix of average interest-earning assets from higher-yielding loans receivable into lower-yielding interest-earning deposits and investment securities , as well as the continued low interest rate environment , which caused asset yields to decline . the low interest rate environment also caused high loan refinance volume which resulted in yields on loans and mortgage-backed securities to trend downward . average interest-earning assets increased by $ 66.8 million , or 3.2 % , for the year ended december 31 , 2011 , as compared to the prior year . the increase in average interest-earning assets was primarily due to an increase in average investment securities of $ 82.5 million for the year ended december 31 , 2011 as compared to the prior year and an increase in average interest-earning deposits and short-term investments of $ 23.7 million . these increases were offset by a decrease in average loans receivable , net , of $ 37.0 million . interest expense interest expense for year ended december 31 , 2011 was $ 18.1 million compared to $ 24.3 million for the year ended december 31 , 2010. the cost of interest-bearing liabilities decreased to 0.95 % for the year ended december 31 , 2011 as compared to 1.30 % for the prior year . average interest-bearing liabilities increased by $ 40.0 million for the year ended december 31 , 2011 , as compared to the prior year . the increase in average interest-bearing liabilities was primarily due to an increase in average interest-bearing deposits of $ 127.6 million , offset by a decrease in average fhlb advances of $ 87.6 million . net interest income net interest income for the year ended december 31 , 2011 was $ 77.3 million , as compared to $ 77.1 million in the prior year , reflecting a lower net interest margin partly offset by greater interest-earning assets . the net interest margin decreased to 3.59 % for the year ended december 31 , 2011 from 3.69 % in the prior year . provision for loan losses for the year ended december 31 , 2011 , the provision for loan losses was $ 7.8 million , as compared to $ 8.0 million for the prior year . non-performing loans increased $ 6.5 million , to $ 44.0 million at december 31 , 2011 from $ 37.5 million at december 31 , 2010. the increase is primarily due to the second quarter addition of a $ 6.4 million loan relationship secured by commercial and residential real estate , all business assets and a personal guarantee . an appraisal performed in may 2011 values the real estate collateral at $ 8.7 million . most of the remaining increase in non-performing loans is related to a net increase in non-performing one-to-four family loans of $ 2.6 million . loans receivable , net decreased by $ 97.8 million at december 31 , 2011 as compared to december 31 , 2010. net loan charge-offs increased to $ 9.2 million for the year ended december 31 , 2011 , as compared to $ 3.0 million for the prior year . during the fourth quarter of 2011 , the company modified its charge-off policy on problem loans secured by real estate . historically , the company established specific valuation reserves for estimated losses for problem real estate related loans when the loans were deemed uncollectible . the specific valuation reserves were based upon the estimated fair value of the underlying collateral , less costs to sell . the actual loan charge-off was not recorded until the foreclosure process was complete . under the modified policy , losses on loans secured by real estate are charged-off in the period the loans , or portion thereof , are deemed uncollectible , generally after the loan becomes 120 days delinquent . the modification to the charge-off policy resulted in additional charge-offs in the fourth quarter of 2011 of $ 5.7 million . all of these charge-offs were timely identified in previous periods in the company 's allowance for loan losses process as a specific valuation reserve and were included in the company 's loss history as part of the evaluation of the allowance for loan losses . accordingly , the additional charge-offs did not affect the company 's provision for loan losses or net income for 2011. without the additional charge-offs of $ 5.7 million recorded in the fourth quarter of 2011 , the company would have reported the following as of and for the
| liquidity and capital resources the company 's primary sources of funds are deposits , principal and interest payments on loans and mortgage-backed securities , proceeds from the sales of loans , fhlb advances and other borrowings and , to a lesser extent , investment maturities . while scheduled amortization of loans is a predictable source of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . the company has other sources of liquidity if a need for additional funds arises , including advances from the fhlb . at december 31 , 2011 and 2010 , the bank had no outstanding overnight borrowings from the fhlb . the bank utilizes overnight borrowings from time-to-time to fund short-term liquidity needs . fhlb advances totaled $ 266.0 million at december 31 , 2011 , an increase from $ 265.0 million at december 31 , 2010. securities sold under agreements to repurchase with retail customers decreased to $ 66.1 million at december 31 , 2011 from $ 67.9 million at december 31 , 2010. like deposit flows , this funding source is dependent upon demand from the bank 's customer base . the company 's cash needs for the year ended december 31 , 2011 were primarily satisfied by principal payments on loans and mortgage-backed securities , proceeds from the sale of mortgage loans held for sale and increased deposits . the low interest rate environment during the year accelerated prepayments of loans and mortgage-backed securities which increased the company 's cash flows . the cash was principally utilized for loan originations and the purchase of investment and mortgage-backed securities . for the year ended december 31 , 2010 , the cash needs of the company were primarily satisfied by principal payments on loans and mortgage-backed securities , proceeds from the sale of mortgage loans held for sale and increased deposits . the cash was principally utilized for loan originations , the purchase of investment and mortgage-backed securities and the repayment of borrowings . in the normal course of business , the bank routinely enters into various commitments , primarily relating to the origination and sale of 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.
```liquidity and capital resources the company 's primary sources of funds are deposits , principal and interest payments on loans and mortgage-backed securities , proceeds from the sales of loans , fhlb advances and other borrowings and , to a lesser extent , investment maturities . while scheduled amortization of loans is a predictable source of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . the company has other sources of liquidity if a need for additional funds arises , including advances from the fhlb . at december 31 , 2011 and 2010 , the bank had no outstanding overnight borrowings from the fhlb . the bank utilizes overnight borrowings from time-to-time to fund short-term liquidity needs . fhlb advances totaled $ 266.0 million at december 31 , 2011 , an increase from $ 265.0 million at december 31 , 2010. securities sold under agreements to repurchase with retail customers decreased to $ 66.1 million at december 31 , 2011 from $ 67.9 million at december 31 , 2010. like deposit flows , this funding source is dependent upon demand from the bank 's customer base . the company 's cash needs for the year ended december 31 , 2011 were primarily satisfied by principal payments on loans and mortgage-backed securities , proceeds from the sale of mortgage loans held for sale and increased deposits . the low interest rate environment during the year accelerated prepayments of loans and mortgage-backed securities which increased the company 's cash flows . the cash was principally utilized for loan originations and the purchase of investment and mortgage-backed securities . for the year ended december 31 , 2010 , the cash needs of the company were primarily satisfied by principal payments on loans and mortgage-backed securities , proceeds from the sale of mortgage loans held for sale and increased deposits . the cash was principally utilized for loan originations , the purchase of investment and mortgage-backed securities and the repayment of borrowings . in the normal course of business , the bank routinely enters into various commitments , primarily relating to the origination and sale of loans .
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Suspicious Activity Report : the bank opened its twenty-fourth branch office in late 2011. the branch is located within a senior housing development , harrogate , in lakewood , new jersey and maintains limited hours for residents and employees of the retirement community . the bank currently plans to open an additional branch office in jackson , new jersey in late 2012 or early 2013. core account development has benefited from bank efforts to attract business deposits in conjunction with its commercial 41 lending operations and from an expanded mix of retail core account products . additionally , marketing and incentive plans have focused on core account growth . as a result of these efforts the bank 's core deposit ratio has grown to 84.2 % at december 31 , 2011 as compared to 60.5 % at december 31 , 2006 and only 33.0 % at december 31 , 1997. core deposits are generally considered a less expensive and more stable funding source than certificates of deposit . management continues to diversify the bank 's product line in order to enhance non-interest income . the bank offers alternative investment products ( annuities , mutual funds and life insurance ) for sale through its retail branch network . the products are non-proprietary , sold through a third party vendor , and provide the bank with fee income opportunities . in early 2005 , the alternative investment program was expanded to add licensed bank employees which allows the bank to capture more of the revenue associated with the sale of investment products . the bank offers trust and asset management services and has also expanded the non-interest income received from business relationships by offering fee based products , including merchant services . as a result of these initiatives , income from fees and service charges has increased to $ 11.4 million for the year ended december 31 , 2011 as compared to $ 10.5 million for the year ended december 31 , 2006 and only $ 1.4 million for the year ended december 31 , 1997. the bank also offers reverse mortgage loans which are sold into the secondary market . the gain on sale from selling reverse mortgages is included in the net gain on sales of loans available for sale . in addition to the objectives described above , in 2011 the company determined to more actively manage its capital position to improve return on equity . in the fourth quarter of 2011 , the company announced its intention to repurchase up to 942,306 shares , or 5 % , of its outstanding common stock . through december 31 , 2011 , the company had repurchased 165,154 shares of common stock for $ 2.1 million . summary interest-earning assets , both loans and securities , are generally priced against longer-term indices , while interest-bearing liabilities , primarily deposits and borrowings , are generally priced against shorter-term indices . in 2011 , the company 's net interest margin has contracted as compared to prior year periods . due to the low interest rate environment , high loan refinance volume has caused yields on loans and mortgage-backed securities to trend downward . at the same time , the company 's asset mix has shifted as higher-yielding loans have decreased due to weak demand , prepayments and the sale of newly originated 30-year fixed-rate one-to-four family loans , while lower-yielding interest-earning deposits and securities have increased . management expects the low interest rate environment to continue beyond 2012 , resulting in further pressure on the net interest margin . in addition to the interest rate environment , the company is dependent upon national and local economic conditions . the overall economy remains weak with continued high unemployment coupled with concern surrounding the housing market . these conditions have had an adverse impact on the company 's results of operations . highlights of the company 's financial results for the year ended december 31 , 2011 were as follows : total assets increased to $ 2.302 billion at december 31 , 2011 , from $ 2.251 billion at december 31 , 2010. loans receivable , net decreased $ 97.8 million , or 5.9 % , at december 31 , 2011 , as compared to december 31 , 2010 primarily due to weak demand , prepayments resulting from the low interest rate environment and the sale of newly originated 30-year fixed-rate one-to-four family loans . investment securities available for sale increased by $ 73.4 million , or 79.8 % , to $ 165.3 million at december 31 , 2011 , from $ 91.9 million at december 31 , 2010. deposits increased by $ 42.1 million , or 2.5 % , at december 31 , 2011 , as compared to december 31 , 2010. an increase of $ 58.3 million in core deposits ( i.e . all deposits excluding time deposits ) was partly offset by a decline in time deposits , which decreased $ 16.2 million . at december 31 , 2011 , core deposits , a key focus for the company , represented 84.2 % of total deposits . for the year ended december 31 , 2011 , net income increased to $ 20.7 million , or $ 1.14 per diluted share , as compared to net income of $ 20.4 million , or $ 1.12 per diluted share for the prior year . for the year ended december 31 , 2010 , diluted earnings per share included $ 922,000 , or $ .05 per share , relating to the reduction in the state tax valuation allowance . net interest income for the year ended december 31 , 2011 increased to $ 77.3 million , as compared to $ 77.1 million in the prior year , reflecting greater average interest-earning assets partly offset by a decrease in the net interest margin to 3.59 % for the year ended december 31 , 2011 as compared to 3.69 % in the prior year . story_separator_special_tag stockholders ' equity at december 31 , 2011 increased by 7.8 % , to $ 216.8 million , as compared to $ 201.3 million at december 31 , 2010 , primarily due to net income and a reduction in accumulated other comprehensive loss partly offset by the cash dividend on common stock and by the repurchase of 165,154 shares of common stock for $ 2.1 million . 47 comparison of operating results for the years ended december 31 , 2011 and december 31 , 2010 general net income for year ended december 31 , 2011 increased to $ 20.7 million , as compared to net income of $ 20.4 million for the prior year . on a per share basis , diluted earnings per share increased 1.8 % , to $ 1.14 , for the year ended december 31 , 2011 , as compared to $ 1.12 for the prior year . for the year ended december 31 , 2010 , diluted earnings per share included $ 922,000 , or $ .05 per share , relating to the reduction in the state tax valuation allowance . interest income interest income for the year ended december 31 , 2011 was $ 95.4 million as compared to $ 101.4 million for the year ended december 31 , 2010. the yield on interest-earning assets declined to 4.43 % for the year ended december 31 , 2011 , as compared to 4.86 % for the prior year . this decline was due to a change in the mix of average interest-earning assets from higher-yielding loans receivable into lower-yielding interest-earning deposits and investment securities , as well as the continued low interest rate environment , which caused asset yields to decline . the low interest rate environment also caused high loan refinance volume which resulted in yields on loans and mortgage-backed securities to trend downward . average interest-earning assets increased by $ 66.8 million , or 3.2 % , for the year ended december 31 , 2011 , as compared to the prior year . the increase in average interest-earning assets was primarily due to an increase in average investment securities of $ 82.5 million for the year ended december 31 , 2011 as compared to the prior year and an increase in average interest-earning deposits and short-term investments of $ 23.7 million . these increases were offset by a decrease in average loans receivable , net , of $ 37.0 million . interest expense interest expense for year ended december 31 , 2011 was $ 18.1 million compared to $ 24.3 million for the year ended december 31 , 2010. the cost of interest-bearing liabilities decreased to 0.95 % for the year ended december 31 , 2011 as compared to 1.30 % for the prior year . average interest-bearing liabilities increased by $ 40.0 million for the year ended december 31 , 2011 , as compared to the prior year . the increase in average interest-bearing liabilities was primarily due to an increase in average interest-bearing deposits of $ 127.6 million , offset by a decrease in average fhlb advances of $ 87.6 million . net interest income net interest income for the year ended december 31 , 2011 was $ 77.3 million , as compared to $ 77.1 million in the prior year , reflecting a lower net interest margin partly offset by greater interest-earning assets . the net interest margin decreased to 3.59 % for the year ended december 31 , 2011 from 3.69 % in the prior year . provision for loan losses for the year ended december 31 , 2011 , the provision for loan losses was $ 7.8 million , as compared to $ 8.0 million for the prior year . non-performing loans increased $ 6.5 million , to $ 44.0 million at december 31 , 2011 from $ 37.5 million at december 31 , 2010. the increase is primarily due to the second quarter addition of a $ 6.4 million loan relationship secured by commercial and residential real estate , all business assets and a personal guarantee . an appraisal performed in may 2011 values the real estate collateral at $ 8.7 million . most of the remaining increase in non-performing loans is related to a net increase in non-performing one-to-four family loans of $ 2.6 million . loans receivable , net decreased by $ 97.8 million at december 31 , 2011 as compared to december 31 , 2010. net loan charge-offs increased to $ 9.2 million for the year ended december 31 , 2011 , as compared to $ 3.0 million for the prior year . during the fourth quarter of 2011 , the company modified its charge-off policy on problem loans secured by real estate . historically , the company established specific valuation reserves for estimated losses for problem real estate related loans when the loans were deemed uncollectible . the specific valuation reserves were based upon the estimated fair value of the underlying collateral , less costs to sell . the actual loan charge-off was not recorded until the foreclosure process was complete . under the modified policy , losses on loans secured by real estate are charged-off in the period the loans , or portion thereof , are deemed uncollectible , generally after the loan becomes 120 days delinquent . the modification to the charge-off policy resulted in additional charge-offs in the fourth quarter of 2011 of $ 5.7 million . all of these charge-offs were timely identified in previous periods in the company 's allowance for loan losses process as a specific valuation reserve and were included in the company 's loss history as part of the evaluation of the allowance for loan losses . accordingly , the additional charge-offs did not affect the company 's provision for loan losses or net income for 2011. without the additional charge-offs of $ 5.7 million recorded in the fourth quarter of 2011 , the company would have reported the following as of and for the
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2,683 | at 83 % leased and at a purchase price below replacement cost , we believe that this purchase provides an opportunity to create value through the lease-up of vacant space in one of the most highly amenitized office properties in buckhead atlanta . as noted above , in the merger , we added two active development projects to our development pipeline : domain 10 and domain 12 in austin . domain 12 is 100 % leased and on track to deliver in the first half of 2020. with the execution of an expansion with amazon in the third quarter of 2019 , we increased the percent leased of domain 10 from 63 % upon acquisition to 98 % . domain 10 is scheduled to deliver in late 2020. we continued to make progress on our existing development projects that include 120 west trinity in decatur , georgia , 10000 avalon in atlanta , and 300 colorado in austin . these projects are on track to deliver in 2020 and early 2021 and the office portion of these properties is a combined 77 % pre-leased . we commenced development of 100 mill , a 287,000 square foot office property in tempe , arizona . this project has estimated construction costs of $ 153 million , is scheduled for delivery in early 2022 , and is 44 % pre-leased . in the first quarter of 2019 , dimensional place , a 281,000 square foot office building in charlotte commenced operations . we continue to look for additional development opportunities with our robust land bank . in 2019 , we leased or renewed 3.1 million square feet of office space . the weighted average net effective rent per square foot , representing base rent less operating expense reimbursements and leasing costs , for new or renewed non-amenity leases with terms greater than one year was $ 23.82 per square foot . cash basis net effective rent per square foot increased 7.7 % on spaces that had been previously occupied in the past year . cash basis net effective rent represents net rent at the end of the term paid by the prior tenant compared to the net rent at the beginning of the term paid by the current tenant . our same property net operating income for the year increased 2.6 % on a gaap basis and 4.8 % on a cash basis . 24 market conditions we believe that the sunbelt region , and in particular the six core sunbelt markets in which we operate , possess some of the most attractive economic and real estate fundamentals in the nation . our markets are located in states that lead the nation in new job growth and net migration as residents relocate from the northeast , midwest , and west coast to our markets . this migration , when combined with low levels of new supply , has led to steady office absorption and positive rent growth , supporting healthy office fundamentals . we believe that we are well positioned to benefit from , and ultimately outperform in , the current real estate environment . our atlanta portfolio totals 7.3 million square feet , representing 33.8 % of our net operating income for the fourth quarter of 2019 and was 91.2 % leased at december 31 , 2019. in addition , we had two projects under development in atlanta at december 31 , 2019 , one office property and one mixed use property , in which we hold 90 % and 20 % interests , respectively . job growth in atlanta for the year ended december 31 , 2019 was 2.2 % , above the national average , and construction as a percentage of the total market square footage was 2.6 % at year end . our portfolio is well located primarily in the midtown , buckhead , and central perimeter submarkets with direct access to mass transit . our austin portfolio totals 4.0 million square feet , representing 23.2 % of our net operating income for the fourth quarter of 2019 and was 95.8 % leased at december 31 , 2019. in addition , we have three projects under development in austin , one owned in a 50-50 joint venture and two wholly-owned that together total 978,000 square feet and are a combined 95 % leased . job growth in austin for the year ended december 31 , 2019 was 2.7 % and construction as a percentage of the total market square footage was 9.1 % . our portfolio is predominantly in the central business district and northwest submarket where vacancy is 5.6 % and 6.8 % , respectively . we believe that our dominant presence in austin , combined with strong job growth and low unemployment are favorable for our existing portfolio . our charlotte portfolio totals 4.3 million square feet , representing 16.9 % of our net operating income for the fourth quarter of 2019 and was 96.2 % leased at december 31 , 2019. job growth in charlotte for the year ended december 31 , 2019 was 2.4 % and construction as a percentage of the total market square footage was 5.1 % . our portfolio is located in the uptown and south end submarkets where rent growth has significantly surpassed the national average . the overall market has benefitted from charlotte 's strong population growth , which has increased at three times the national rate over the past decade . strong demand and favorable economics have spurred a high level of new development across the market , specifically in uptown where approximately 2.7 million square feet is currently under construction . story_separator_special_tag if indicators of impairment are present for any of our investments in joint ventures , we calculate the fair value of the investment . if the fair value of the investment is less than the carrying value of the investment , we must determine whether the impairment is temporary or other than temporary , as outlined in gaap . if we assesses the impairment to be temporary , we do not record an impairment charge . if we conclude that the impairment is other than temporary , we record an impairment charge . we use considerable judgment in the determination of whether there are indicators of impairment present and in the assumptions , estimations , and inputs used in calculating the fair value of the investment . these judgments are similar to those outlined above in the impairment of real estate assets . we also use judgment in making the determination as to whether the impairment is temporary or other than temporary by considering , among other things , the length of time that the impairment has existed , the financial condition of the joint venture , and the ability and intent of the holder to retain the investment long enough for a recovery in market value . our judgment as to the fair value of the investment or on the conclusion of the nature of the impairment could have a material impact on our financial condition , results of operations , and cash flows . stock-based compensation we have several types of stock-based compensation plans . these plans are described in note 15 , as are the accounting policies by type of award . compensation cost for all stock-based awards requires measurement at estimated fair value on the grant date , and compensation cost is recognized over the service vesting period , which represents the requisite service period . for compensation plans that contain market performance measures , we must estimate the fair value of the awards on a quarterly basis and must adjust compensation expense accordingly . the fair values of these awards are estimated using complex pricing valuation models that require a number of estimates and assumptions . for awards that are based on our future earnings , we must estimate future earnings and adjust the estimated fair value of the awards accordingly . we use considerable judgments in determining the fair value of these awards . compensation expense associated with these awards could vary significantly based upon these estimates . discussion of new accounting pronouncements on january 1 , 2019 , we adopted asc 842 , which amended the previous standard for lease accounting by requiring lessees to record most leases on their balance sheets and by making targeted changes to lessor accounting and reporting . the new standard requires lessees to record a right-of-use asset and a lease liability for leases and classify such leases as either finance or operating leases based on the principle of whether the lease is effectively a financed purchase of the leased asset by the lessee . 28 the classification of the leases determines whether the lease expense is recognized based on an effective interest method ( finance leases ) or on a straight-line basis over the term of the lease ( operating leases ) . the new standard also revised the treatment of indirect leasing costs and permits the capitalization and amortization of direct leasing costs only . for the years ended december 31 , 2018 and 2017 , we capitalized $ 3.8 million and $ 3.0 million of indirect leasing costs , respectively . the company adopted the following optional practical expedients provided in asc 842 : no reassessment of any expired or existing contracts to determine if they contain a lease ; no reassessment of initial direct costs for any existing leases ; no recognition of right-of-use assets and lease liabilities for leases with a term of one year or less ; no separate classification and disclosure of non-lease components of revenue in lease contracts from the related lease components provided certain conditions are met ; and no reassessment of the lease classification . for those leases where we were the lessee , specifically ground leases , the adoption of asc 842 required us to record a right-of-use asset and a lease liability in the amount of $ 56.3 million on the condensed consolidated balance sheet . in calculating the right of use asset and lease liability , we used a weighted average discount rate of 4.49 % , which represented our incremental borrowing rate related to the ground lease assets as of january 1 , 2019. ground leases executed before the adoption of asc 842 are accounted for as operating leases and did not result in a materially different ground lease expense . however , most ground leases executed after the adoption of asc 842 are expected to be accounted for as finance leases , which will result in ground lease expense being recorded using the effective interest method instead of the straight-line method over the term of the lease , resulting in higher expense associated with the ground lease in the earlier years of a ground lease when compared to the straight line method . we elected to use the `` modified retrospective `` method upon adoption of asc 842 , which permitted application of the new standard on the adoption date as opposed to the earliest comparative period presented in its financial statements . on january 1 , 2018 , we adopted asu 2017-05 , “ other income - gains and losses from the derecognition of nonfinancial assets ( subtopic 610-20 ) : clarifying the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets ” ( “ asu 2017-05 `` ) . as a result of the adoption of asu 2017-05 , we recorded a cumulative effect from change in accounting principle , which credited distributions in excess of cumulative net income by $ 22.3 million . this cumulative effect
| liquidity and capital resources our primary short-term and long-term liquidity needs include the following : property and land acquisitions ; expenditures on development projects ; building improvements , tenant improvements , and leasing costs ; principal and interest payments on indebtedness ; and common stock dividends and distributions to outside unitholders of cplp . we may satisfy these needs with one or more of the following : cash and cash equivalents on hand ; net cash from operations ; proceeds from the sale of assets ; borrowings under our credit facility ; proceeds from mortgage notes payable ; proceeds from construction loans ; proceeds from unsecured loans ; proceeds from offerings of equity securities ; and joint venture formations . financial condition a key component of our strategy is to maintain a conservative balance sheet with leverage and liquidity that enables us to be positioned for future growth . our leverage metrics at december 31 , 2019 , which include net debt to ebitda , net debt to undepreciated assets , and net debt to total market capitalization , were among the strongest within our sector of public office reits . as of december 31 , 2019 , and we had $ 251.5 million outstanding under our credit facility with the ability to borrow an additional $ 748.5 million under our credit facility . we also had $ 17.6 million in cash , cash equivalents , and restricted cash on hand at december 31 , 2019 . 33 contractual obligations and commitments at december 31 , 2019 , we were subject to the following contractual obligations and commitments ( in thousands ) : replace_table_token_13_th ( 1 ) interest on variable rate obligations is based on rates effective as of december 31 , 2019 .
| 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 short-term and long-term liquidity needs include the following : property and land acquisitions ; expenditures on development projects ; building improvements , tenant improvements , and leasing costs ; principal and interest payments on indebtedness ; and common stock dividends and distributions to outside unitholders of cplp . we may satisfy these needs with one or more of the following : cash and cash equivalents on hand ; net cash from operations ; proceeds from the sale of assets ; borrowings under our credit facility ; proceeds from mortgage notes payable ; proceeds from construction loans ; proceeds from unsecured loans ; proceeds from offerings of equity securities ; and joint venture formations . financial condition a key component of our strategy is to maintain a conservative balance sheet with leverage and liquidity that enables us to be positioned for future growth . our leverage metrics at december 31 , 2019 , which include net debt to ebitda , net debt to undepreciated assets , and net debt to total market capitalization , were among the strongest within our sector of public office reits . as of december 31 , 2019 , and we had $ 251.5 million outstanding under our credit facility with the ability to borrow an additional $ 748.5 million under our credit facility . we also had $ 17.6 million in cash , cash equivalents , and restricted cash on hand at december 31 , 2019 . 33 contractual obligations and commitments at december 31 , 2019 , we were subject to the following contractual obligations and commitments ( in thousands ) : replace_table_token_13_th ( 1 ) interest on variable rate obligations is based on rates effective as of december 31 , 2019 .
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Suspicious Activity Report : at 83 % leased and at a purchase price below replacement cost , we believe that this purchase provides an opportunity to create value through the lease-up of vacant space in one of the most highly amenitized office properties in buckhead atlanta . as noted above , in the merger , we added two active development projects to our development pipeline : domain 10 and domain 12 in austin . domain 12 is 100 % leased and on track to deliver in the first half of 2020. with the execution of an expansion with amazon in the third quarter of 2019 , we increased the percent leased of domain 10 from 63 % upon acquisition to 98 % . domain 10 is scheduled to deliver in late 2020. we continued to make progress on our existing development projects that include 120 west trinity in decatur , georgia , 10000 avalon in atlanta , and 300 colorado in austin . these projects are on track to deliver in 2020 and early 2021 and the office portion of these properties is a combined 77 % pre-leased . we commenced development of 100 mill , a 287,000 square foot office property in tempe , arizona . this project has estimated construction costs of $ 153 million , is scheduled for delivery in early 2022 , and is 44 % pre-leased . in the first quarter of 2019 , dimensional place , a 281,000 square foot office building in charlotte commenced operations . we continue to look for additional development opportunities with our robust land bank . in 2019 , we leased or renewed 3.1 million square feet of office space . the weighted average net effective rent per square foot , representing base rent less operating expense reimbursements and leasing costs , for new or renewed non-amenity leases with terms greater than one year was $ 23.82 per square foot . cash basis net effective rent per square foot increased 7.7 % on spaces that had been previously occupied in the past year . cash basis net effective rent represents net rent at the end of the term paid by the prior tenant compared to the net rent at the beginning of the term paid by the current tenant . our same property net operating income for the year increased 2.6 % on a gaap basis and 4.8 % on a cash basis . 24 market conditions we believe that the sunbelt region , and in particular the six core sunbelt markets in which we operate , possess some of the most attractive economic and real estate fundamentals in the nation . our markets are located in states that lead the nation in new job growth and net migration as residents relocate from the northeast , midwest , and west coast to our markets . this migration , when combined with low levels of new supply , has led to steady office absorption and positive rent growth , supporting healthy office fundamentals . we believe that we are well positioned to benefit from , and ultimately outperform in , the current real estate environment . our atlanta portfolio totals 7.3 million square feet , representing 33.8 % of our net operating income for the fourth quarter of 2019 and was 91.2 % leased at december 31 , 2019. in addition , we had two projects under development in atlanta at december 31 , 2019 , one office property and one mixed use property , in which we hold 90 % and 20 % interests , respectively . job growth in atlanta for the year ended december 31 , 2019 was 2.2 % , above the national average , and construction as a percentage of the total market square footage was 2.6 % at year end . our portfolio is well located primarily in the midtown , buckhead , and central perimeter submarkets with direct access to mass transit . our austin portfolio totals 4.0 million square feet , representing 23.2 % of our net operating income for the fourth quarter of 2019 and was 95.8 % leased at december 31 , 2019. in addition , we have three projects under development in austin , one owned in a 50-50 joint venture and two wholly-owned that together total 978,000 square feet and are a combined 95 % leased . job growth in austin for the year ended december 31 , 2019 was 2.7 % and construction as a percentage of the total market square footage was 9.1 % . our portfolio is predominantly in the central business district and northwest submarket where vacancy is 5.6 % and 6.8 % , respectively . we believe that our dominant presence in austin , combined with strong job growth and low unemployment are favorable for our existing portfolio . our charlotte portfolio totals 4.3 million square feet , representing 16.9 % of our net operating income for the fourth quarter of 2019 and was 96.2 % leased at december 31 , 2019. job growth in charlotte for the year ended december 31 , 2019 was 2.4 % and construction as a percentage of the total market square footage was 5.1 % . our portfolio is located in the uptown and south end submarkets where rent growth has significantly surpassed the national average . the overall market has benefitted from charlotte 's strong population growth , which has increased at three times the national rate over the past decade . strong demand and favorable economics have spurred a high level of new development across the market , specifically in uptown where approximately 2.7 million square feet is currently under construction . story_separator_special_tag if indicators of impairment are present for any of our investments in joint ventures , we calculate the fair value of the investment . if the fair value of the investment is less than the carrying value of the investment , we must determine whether the impairment is temporary or other than temporary , as outlined in gaap . if we assesses the impairment to be temporary , we do not record an impairment charge . if we conclude that the impairment is other than temporary , we record an impairment charge . we use considerable judgment in the determination of whether there are indicators of impairment present and in the assumptions , estimations , and inputs used in calculating the fair value of the investment . these judgments are similar to those outlined above in the impairment of real estate assets . we also use judgment in making the determination as to whether the impairment is temporary or other than temporary by considering , among other things , the length of time that the impairment has existed , the financial condition of the joint venture , and the ability and intent of the holder to retain the investment long enough for a recovery in market value . our judgment as to the fair value of the investment or on the conclusion of the nature of the impairment could have a material impact on our financial condition , results of operations , and cash flows . stock-based compensation we have several types of stock-based compensation plans . these plans are described in note 15 , as are the accounting policies by type of award . compensation cost for all stock-based awards requires measurement at estimated fair value on the grant date , and compensation cost is recognized over the service vesting period , which represents the requisite service period . for compensation plans that contain market performance measures , we must estimate the fair value of the awards on a quarterly basis and must adjust compensation expense accordingly . the fair values of these awards are estimated using complex pricing valuation models that require a number of estimates and assumptions . for awards that are based on our future earnings , we must estimate future earnings and adjust the estimated fair value of the awards accordingly . we use considerable judgments in determining the fair value of these awards . compensation expense associated with these awards could vary significantly based upon these estimates . discussion of new accounting pronouncements on january 1 , 2019 , we adopted asc 842 , which amended the previous standard for lease accounting by requiring lessees to record most leases on their balance sheets and by making targeted changes to lessor accounting and reporting . the new standard requires lessees to record a right-of-use asset and a lease liability for leases and classify such leases as either finance or operating leases based on the principle of whether the lease is effectively a financed purchase of the leased asset by the lessee . 28 the classification of the leases determines whether the lease expense is recognized based on an effective interest method ( finance leases ) or on a straight-line basis over the term of the lease ( operating leases ) . the new standard also revised the treatment of indirect leasing costs and permits the capitalization and amortization of direct leasing costs only . for the years ended december 31 , 2018 and 2017 , we capitalized $ 3.8 million and $ 3.0 million of indirect leasing costs , respectively . the company adopted the following optional practical expedients provided in asc 842 : no reassessment of any expired or existing contracts to determine if they contain a lease ; no reassessment of initial direct costs for any existing leases ; no recognition of right-of-use assets and lease liabilities for leases with a term of one year or less ; no separate classification and disclosure of non-lease components of revenue in lease contracts from the related lease components provided certain conditions are met ; and no reassessment of the lease classification . for those leases where we were the lessee , specifically ground leases , the adoption of asc 842 required us to record a right-of-use asset and a lease liability in the amount of $ 56.3 million on the condensed consolidated balance sheet . in calculating the right of use asset and lease liability , we used a weighted average discount rate of 4.49 % , which represented our incremental borrowing rate related to the ground lease assets as of january 1 , 2019. ground leases executed before the adoption of asc 842 are accounted for as operating leases and did not result in a materially different ground lease expense . however , most ground leases executed after the adoption of asc 842 are expected to be accounted for as finance leases , which will result in ground lease expense being recorded using the effective interest method instead of the straight-line method over the term of the lease , resulting in higher expense associated with the ground lease in the earlier years of a ground lease when compared to the straight line method . we elected to use the `` modified retrospective `` method upon adoption of asc 842 , which permitted application of the new standard on the adoption date as opposed to the earliest comparative period presented in its financial statements . on january 1 , 2018 , we adopted asu 2017-05 , “ other income - gains and losses from the derecognition of nonfinancial assets ( subtopic 610-20 ) : clarifying the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets ” ( “ asu 2017-05 `` ) . as a result of the adoption of asu 2017-05 , we recorded a cumulative effect from change in accounting principle , which credited distributions in excess of cumulative net income by $ 22.3 million . this cumulative effect
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2,684 | estate taxes of $ 53,000 compared to $ 51,000 for the prior year period , depreciation expense of $ 74,000 compared to $ 73,000 for the prior year period and $ 52,000 in interest expense compared to $ 58,000 for the prior year period . for the year ended february 28 , 2017 , our real estate operations reported a net loss of $ 123,000 compared to a net loss of $ 122,000 for the prior year period . the reported losses exclude any inter-company rent . 10 a summary of our real estate operations is as follows : replace_table_token_4_th replace_table_token_5_th for the years ended february 28 , 2017 and february 29 , 2016 , net cash outflows related to the industrial park were $ 192,000 and $ 187,000 , respectively . these cash outflows are net of rental income and depreciation expense and include the principal payments on the industrial park 's mortgage and the costs of capital improvements . prior to purchasing the industrial park in december 2010 , our annual rental expense was approximately $ 136,000 or $ 7.14 per square foot . if we are able to lease additional vacant space , it will provide positive cash flow for the industrial park when compared to our prior rental payments of $ 136,000. our rental income was approximately $ 6.00 per square foot , based on 15,600 square feet leased to third parties for the years ended february 28 , 2017 and february 29 , 2016. interest expense : interest expense decreased to $ 52,000 for the year ended february 28 , 2017 as compared to $ 58,000 for the year ended february 29 , 2016. interest and dividend income : interest and dividend income increased to $ 71,000 for the year ended february 28 , 2017 as compared to $ 55,000 for the year ended february 29 , 2016. our present investment policy is to invest excess cash in highly liquid mutual funds . our holdings are rated at or above investment grade . other income : during the year ended february 28 , 2017 , we received a payout of $ 200,000 in life insurance proceeds from the death of a former employee . income tax ( benefit ) expense : we recorded an income tax benefit of $ 19,000 for the year ended february 28 , 2017 as compared to an expense of $ 195,000 for the year ended february 29 , 2016. the details of the current year 's tax benefit are explained in note 12 in our financial statements . 11 net income : for the year ended february 28 , 2017 , we had net income of $ 96,000 as compared to $ 548,000 for the year ended february 29 , 2016. the decrease in our net income is due to a decrease in our revenues and gross profit which was partially offset by a decrease in operating expenses . in addition , in the current year period , we received a payout of $ 200,000 in life insurance proceeds from the death of a former employee . for the years ended february 28 , 2017 and february 29 , 2016 , we do not believe that our sales revenue or net income has been adversely affected by the impact of inflation or changing prices . other comprehensive income ( loss ) net unrealized income ( loss ) on marketable securities : as of february 28 , 2017 , certain of our marketable securities were in an unrealized gain position . unrealized gains ( losses ) are principally due to changes in the fair value of our investments held as available-for-sale . because we have the ability and intent to hold the securities until maturity , or for the foreseeable future as classified as available-for-sale , we do not deem the gain or decline to be other-than-temporary . for the year ended february 28 , 2017 , the unrealized gain on our available-for-sale marketable securities was $ 112,000 compared to a loss of $ 70,140 for the year ended february 29 , 2016. off - balance sheet arrangements we do not have any off - balance sheet arrangements as of february 28 , 2017. critical accounting policies the discussion and analysis of the company 's 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 of america . the preparation of these financial statements requires the company to make estimates and judgments that affect the reported amount of assets and liabilities , revenues and expenses , and related disclosure on contingent assets and liabilities at the date of the financial statements . actual results may differ from these estimates under different assumptions and conditions . critical accounting policies are defined as those that are reflective of significant judgments and uncertainties , and may potentially result in materially different results under different assumptions and conditions . as of february 28 , 2017 , management believes there are no critical accounting policies applicable to the company that are reflective of significant judgments and or uncertainties . stock-based compensation the computation of the expense associated with stock-based compensation requires the use of a valuation model . asc 718 is a complex accounting standard , the application of which requires significant judgment and the use of estimates , particularly surrounding black-scholes assumptions such as stock price volatility , expected option lives , and expected option forfeiture rates , to value equity-based compensation . we currently use a black-scholes option pricing model to calculate the fair value of stock options . we primarily use historical data to determine the assumptions to be used in the black-scholes model and have no reason to believe that future data is likely to differ materially from historical data . however , changes in the assumptions to reflect future stock price volatility and future stock award exercise experience could result story_separator_special_tag estate taxes of $ 53,000 compared to $ 51,000 for the prior year period , depreciation expense of $ 74,000 compared to $ 73,000 for the prior year period and $ 52,000 in interest expense compared to $ 58,000 for the prior year period . for the year ended february 28 , 2017 , our real estate operations reported a net loss of $ 123,000 compared to a net loss of $ 122,000 for the prior year period . the reported losses exclude any inter-company rent . 10 a summary of our real estate operations is as follows : replace_table_token_4_th replace_table_token_5_th for the years ended february 28 , 2017 and february 29 , 2016 , net cash outflows related to the industrial park were $ 192,000 and $ 187,000 , respectively . these cash outflows are net of rental income and depreciation expense and include the principal payments on the industrial park 's mortgage and the costs of capital improvements . prior to purchasing the industrial park in december 2010 , our annual rental expense was approximately $ 136,000 or $ 7.14 per square foot . if we are able to lease additional vacant space , it will provide positive cash flow for the industrial park when compared to our prior rental payments of $ 136,000. our rental income was approximately $ 6.00 per square foot , based on 15,600 square feet leased to third parties for the years ended february 28 , 2017 and february 29 , 2016. interest expense : interest expense decreased to $ 52,000 for the year ended february 28 , 2017 as compared to $ 58,000 for the year ended february 29 , 2016. interest and dividend income : interest and dividend income increased to $ 71,000 for the year ended february 28 , 2017 as compared to $ 55,000 for the year ended february 29 , 2016. our present investment policy is to invest excess cash in highly liquid mutual funds . our holdings are rated at or above investment grade . other income : during the year ended february 28 , 2017 , we received a payout of $ 200,000 in life insurance proceeds from the death of a former employee . income tax ( benefit ) expense : we recorded an income tax benefit of $ 19,000 for the year ended february 28 , 2017 as compared to an expense of $ 195,000 for the year ended february 29 , 2016. the details of the current year 's tax benefit are explained in note 12 in our financial statements . 11 net income : for the year ended february 28 , 2017 , we had net income of $ 96,000 as compared to $ 548,000 for the year ended february 29 , 2016. the decrease in our net income is due to a decrease in our revenues and gross profit which was partially offset by a decrease in operating expenses . in addition , in the current year period , we received a payout of $ 200,000 in life insurance proceeds from the death of a former employee . for the years ended february 28 , 2017 and february 29 , 2016 , we do not believe that our sales revenue or net income has been adversely affected by the impact of inflation or changing prices . other comprehensive income ( loss ) net unrealized income ( loss ) on marketable securities : as of february 28 , 2017 , certain of our marketable securities were in an unrealized gain position . unrealized gains ( losses ) are principally due to changes in the fair value of our investments held as available-for-sale . because we have the ability and intent to hold the securities until maturity , or for the foreseeable future as classified as available-for-sale , we do not deem the gain or decline to be other-than-temporary . for the year ended february 28 , 2017 , the unrealized gain on our available-for-sale marketable securities was $ 112,000 compared to a loss of $ 70,140 for the year ended february 29 , 2016. off - balance sheet arrangements we do not have any off - balance sheet arrangements as of february 28 , 2017. critical accounting policies the discussion and analysis of the company 's 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 of america . the preparation of these financial statements requires the company to make estimates and judgments that affect the reported amount of assets and liabilities , revenues and expenses , and related disclosure on contingent assets and liabilities at the date of the financial statements . actual results may differ from these estimates under different assumptions and conditions . critical accounting policies are defined as those that are reflective of significant judgments and uncertainties , and may potentially result in materially different results under different assumptions and conditions . as of february 28 , 2017 , management believes there are no critical accounting policies applicable to the company that are reflective of significant judgments and or uncertainties . stock-based compensation the computation of the expense associated with stock-based compensation requires the use of a valuation model . asc 718 is a complex accounting standard , the application of which requires significant judgment and the use of estimates , particularly surrounding black-scholes assumptions such as stock price volatility , expected option lives , and expected option forfeiture rates , to value equity-based compensation . we currently use a black-scholes option pricing model to calculate the fair value of stock options . we primarily use historical data to determine the assumptions to be used in the black-scholes model and have no reason to believe that future data is likely to differ materially from historical data . however , changes in the assumptions to reflect future stock price volatility and future stock award exercise experience could result
| liquidity and capital resources working capital - our working capital increased $ 530,000 from $ 5,855,000 at february 29 , 2016 to $ 6,385,000 at february 28 , 2017. the increase in working capital is due to net income of $ 96,000 and our non-cash expenses of $ 440,000 for depreciation and amortization , $ 47,000 for stock based compensation , $ 112,000 for an increase in the market values of our available-for-sale investments and $ 161,000 for an increase in our deferred tax asset . these non-cash expenses were offset by cash outflows of $ 183,000 for the purchase of equipment and furnishings and $ 143,000 for the repayment of notes payable . the company 's current ratio was 5.4 to 1 at february 28 , 2017 as compared to 4.5 to 1 at february 29 , 2016. at february 28 , 2017 , our working capital includes $ 2,557,000 of cash and $ 2,342,000 of marketable securities , a total of $ 4,899,000. at february 29 , 2016 , our working capital included $ 2,388,000 of cash and $ 1,696,000 of marketable securities , a total of $ 4,084,000. the aggregate balance of cash and marketable securities increased $ 815,000 during the twelve-month period ended february 28 , 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.
```liquidity and capital resources working capital - our working capital increased $ 530,000 from $ 5,855,000 at february 29 , 2016 to $ 6,385,000 at february 28 , 2017. the increase in working capital is due to net income of $ 96,000 and our non-cash expenses of $ 440,000 for depreciation and amortization , $ 47,000 for stock based compensation , $ 112,000 for an increase in the market values of our available-for-sale investments and $ 161,000 for an increase in our deferred tax asset . these non-cash expenses were offset by cash outflows of $ 183,000 for the purchase of equipment and furnishings and $ 143,000 for the repayment of notes payable . the company 's current ratio was 5.4 to 1 at february 28 , 2017 as compared to 4.5 to 1 at february 29 , 2016. at february 28 , 2017 , our working capital includes $ 2,557,000 of cash and $ 2,342,000 of marketable securities , a total of $ 4,899,000. at february 29 , 2016 , our working capital included $ 2,388,000 of cash and $ 1,696,000 of marketable securities , a total of $ 4,084,000. the aggregate balance of cash and marketable securities increased $ 815,000 during the twelve-month period ended february 28 , 2017 .
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Suspicious Activity Report : estate taxes of $ 53,000 compared to $ 51,000 for the prior year period , depreciation expense of $ 74,000 compared to $ 73,000 for the prior year period and $ 52,000 in interest expense compared to $ 58,000 for the prior year period . for the year ended february 28 , 2017 , our real estate operations reported a net loss of $ 123,000 compared to a net loss of $ 122,000 for the prior year period . the reported losses exclude any inter-company rent . 10 a summary of our real estate operations is as follows : replace_table_token_4_th replace_table_token_5_th for the years ended february 28 , 2017 and february 29 , 2016 , net cash outflows related to the industrial park were $ 192,000 and $ 187,000 , respectively . these cash outflows are net of rental income and depreciation expense and include the principal payments on the industrial park 's mortgage and the costs of capital improvements . prior to purchasing the industrial park in december 2010 , our annual rental expense was approximately $ 136,000 or $ 7.14 per square foot . if we are able to lease additional vacant space , it will provide positive cash flow for the industrial park when compared to our prior rental payments of $ 136,000. our rental income was approximately $ 6.00 per square foot , based on 15,600 square feet leased to third parties for the years ended february 28 , 2017 and february 29 , 2016. interest expense : interest expense decreased to $ 52,000 for the year ended february 28 , 2017 as compared to $ 58,000 for the year ended february 29 , 2016. interest and dividend income : interest and dividend income increased to $ 71,000 for the year ended february 28 , 2017 as compared to $ 55,000 for the year ended february 29 , 2016. our present investment policy is to invest excess cash in highly liquid mutual funds . our holdings are rated at or above investment grade . other income : during the year ended february 28 , 2017 , we received a payout of $ 200,000 in life insurance proceeds from the death of a former employee . income tax ( benefit ) expense : we recorded an income tax benefit of $ 19,000 for the year ended february 28 , 2017 as compared to an expense of $ 195,000 for the year ended february 29 , 2016. the details of the current year 's tax benefit are explained in note 12 in our financial statements . 11 net income : for the year ended february 28 , 2017 , we had net income of $ 96,000 as compared to $ 548,000 for the year ended february 29 , 2016. the decrease in our net income is due to a decrease in our revenues and gross profit which was partially offset by a decrease in operating expenses . in addition , in the current year period , we received a payout of $ 200,000 in life insurance proceeds from the death of a former employee . for the years ended february 28 , 2017 and february 29 , 2016 , we do not believe that our sales revenue or net income has been adversely affected by the impact of inflation or changing prices . other comprehensive income ( loss ) net unrealized income ( loss ) on marketable securities : as of february 28 , 2017 , certain of our marketable securities were in an unrealized gain position . unrealized gains ( losses ) are principally due to changes in the fair value of our investments held as available-for-sale . because we have the ability and intent to hold the securities until maturity , or for the foreseeable future as classified as available-for-sale , we do not deem the gain or decline to be other-than-temporary . for the year ended february 28 , 2017 , the unrealized gain on our available-for-sale marketable securities was $ 112,000 compared to a loss of $ 70,140 for the year ended february 29 , 2016. off - balance sheet arrangements we do not have any off - balance sheet arrangements as of february 28 , 2017. critical accounting policies the discussion and analysis of the company 's 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 of america . the preparation of these financial statements requires the company to make estimates and judgments that affect the reported amount of assets and liabilities , revenues and expenses , and related disclosure on contingent assets and liabilities at the date of the financial statements . actual results may differ from these estimates under different assumptions and conditions . critical accounting policies are defined as those that are reflective of significant judgments and uncertainties , and may potentially result in materially different results under different assumptions and conditions . as of february 28 , 2017 , management believes there are no critical accounting policies applicable to the company that are reflective of significant judgments and or uncertainties . stock-based compensation the computation of the expense associated with stock-based compensation requires the use of a valuation model . asc 718 is a complex accounting standard , the application of which requires significant judgment and the use of estimates , particularly surrounding black-scholes assumptions such as stock price volatility , expected option lives , and expected option forfeiture rates , to value equity-based compensation . we currently use a black-scholes option pricing model to calculate the fair value of stock options . we primarily use historical data to determine the assumptions to be used in the black-scholes model and have no reason to believe that future data is likely to differ materially from historical data . however , changes in the assumptions to reflect future stock price volatility and future stock award exercise experience could result story_separator_special_tag estate taxes of $ 53,000 compared to $ 51,000 for the prior year period , depreciation expense of $ 74,000 compared to $ 73,000 for the prior year period and $ 52,000 in interest expense compared to $ 58,000 for the prior year period . for the year ended february 28 , 2017 , our real estate operations reported a net loss of $ 123,000 compared to a net loss of $ 122,000 for the prior year period . the reported losses exclude any inter-company rent . 10 a summary of our real estate operations is as follows : replace_table_token_4_th replace_table_token_5_th for the years ended february 28 , 2017 and february 29 , 2016 , net cash outflows related to the industrial park were $ 192,000 and $ 187,000 , respectively . these cash outflows are net of rental income and depreciation expense and include the principal payments on the industrial park 's mortgage and the costs of capital improvements . prior to purchasing the industrial park in december 2010 , our annual rental expense was approximately $ 136,000 or $ 7.14 per square foot . if we are able to lease additional vacant space , it will provide positive cash flow for the industrial park when compared to our prior rental payments of $ 136,000. our rental income was approximately $ 6.00 per square foot , based on 15,600 square feet leased to third parties for the years ended february 28 , 2017 and february 29 , 2016. interest expense : interest expense decreased to $ 52,000 for the year ended february 28 , 2017 as compared to $ 58,000 for the year ended february 29 , 2016. interest and dividend income : interest and dividend income increased to $ 71,000 for the year ended february 28 , 2017 as compared to $ 55,000 for the year ended february 29 , 2016. our present investment policy is to invest excess cash in highly liquid mutual funds . our holdings are rated at or above investment grade . other income : during the year ended february 28 , 2017 , we received a payout of $ 200,000 in life insurance proceeds from the death of a former employee . income tax ( benefit ) expense : we recorded an income tax benefit of $ 19,000 for the year ended february 28 , 2017 as compared to an expense of $ 195,000 for the year ended february 29 , 2016. the details of the current year 's tax benefit are explained in note 12 in our financial statements . 11 net income : for the year ended february 28 , 2017 , we had net income of $ 96,000 as compared to $ 548,000 for the year ended february 29 , 2016. the decrease in our net income is due to a decrease in our revenues and gross profit which was partially offset by a decrease in operating expenses . in addition , in the current year period , we received a payout of $ 200,000 in life insurance proceeds from the death of a former employee . for the years ended february 28 , 2017 and february 29 , 2016 , we do not believe that our sales revenue or net income has been adversely affected by the impact of inflation or changing prices . other comprehensive income ( loss ) net unrealized income ( loss ) on marketable securities : as of february 28 , 2017 , certain of our marketable securities were in an unrealized gain position . unrealized gains ( losses ) are principally due to changes in the fair value of our investments held as available-for-sale . because we have the ability and intent to hold the securities until maturity , or for the foreseeable future as classified as available-for-sale , we do not deem the gain or decline to be other-than-temporary . for the year ended february 28 , 2017 , the unrealized gain on our available-for-sale marketable securities was $ 112,000 compared to a loss of $ 70,140 for the year ended february 29 , 2016. off - balance sheet arrangements we do not have any off - balance sheet arrangements as of february 28 , 2017. critical accounting policies the discussion and analysis of the company 's 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 of america . the preparation of these financial statements requires the company to make estimates and judgments that affect the reported amount of assets and liabilities , revenues and expenses , and related disclosure on contingent assets and liabilities at the date of the financial statements . actual results may differ from these estimates under different assumptions and conditions . critical accounting policies are defined as those that are reflective of significant judgments and uncertainties , and may potentially result in materially different results under different assumptions and conditions . as of february 28 , 2017 , management believes there are no critical accounting policies applicable to the company that are reflective of significant judgments and or uncertainties . stock-based compensation the computation of the expense associated with stock-based compensation requires the use of a valuation model . asc 718 is a complex accounting standard , the application of which requires significant judgment and the use of estimates , particularly surrounding black-scholes assumptions such as stock price volatility , expected option lives , and expected option forfeiture rates , to value equity-based compensation . we currently use a black-scholes option pricing model to calculate the fair value of stock options . we primarily use historical data to determine the assumptions to be used in the black-scholes model and have no reason to believe that future data is likely to differ materially from historical data . however , changes in the assumptions to reflect future stock price volatility and future stock award exercise experience could result
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2,685 | - 21 - depreciation and amortization represent depreciation of property and equipment , leasehold improvements and capitalized software costs . property , equipment and software are depreciated using t he straight-line method over their estimated useful lives , which range from 3 to 39 years . leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life . critical accounting policies and estimates we have identified the following accounting estimate as critical to our business and the understanding of our results of operations . for a detailed discussion of the application of this and other accounting policies , see “ note 1 - summary of operations and significant accounting policies ” to the consolidated financial statements incorporated into item 8 of part ii of this report . the preparation of this annual report on form 10-k requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expenses during the reporting period . management bases its estimates on historical experience and on various other assumptions that are believed to be 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 . actual results may differ from these estimates . workers ' compensation reserves we recognize our liability for the ultimate payment of incurred claims and claims adjustment expenses by establishing a reserve which represents our estimates of future amounts necessary to pay claims and related expenses with respect to workplace injuries that have occurred . when a claim involving a probable loss is reported , our independent third-party administrator for workers ' compensation claims ( “ tpa ” ) establishes a case reserve for the estimated amount of ultimate loss . the estimate reflects a judgment based on established case reserving practices and the experience and knowledge of the tpa regarding the nature and expected amount of the claim , as well as the estimated expenses of settling the claim , including legal and other fees and expenses of claims administration . the adequacy of such case reserves in part depends on the professional judgment of the tpa to properly and comprehensively evaluate the economic consequences of each claim . our reserves include an additional component for potential future increases in the cost to finally resolve open injury claims and claims incurred in prior periods but not reported ( together , `` ibnr `` ) based on actuarial estimates provided by the company 's independent actuary . ibnr reserves , unlike specific case reserves , do not apply to a specific claim but rather apply to the entire population of claims arising from a specific time period . ibnr primarily covers costs relating to : future claim payments in excess of case reserves on recorded open claims ; additional claim payments on closed claims ; and claims that have occurred but have not yet been reported to us . the process of estimating unpaid claims and claims adjustment expense involves a high degree of judgment and is affected by both internal and external events , including changes in claims handling practices , modifications in reserve estimation procedures , changes in individuals involved in the reserve estimation process , inflation , trends in the litigation and settlement of pending claims , and legislative changes . our estimates are based on informed judgment , derived from individual experiences and expertise applied to multiple sets of data and analyses . we consider significant facts and circumstances known both at the time that loss reserves are initially established and as new facts and circumstances become known . due to the inherent uncertainty underlying loss reserve estimates , the expenses incurred through final resolution of our liability for our workers ' compensation claims will likely vary from the related loss reserves at the reporting date . therefore , as specific claims are paid out in the future , actual paid losses may be materially different from our current loss reserves . - 22 - a basic premise in most actu arial analyses is that historical data and past patterns demonstrated in the incurred and paid historical data form a reasonable basis upon which to project future outcomes , absent a material change . significant structural changes to the available data can materially impact the reserve estimation process . to the extent a material change affecting the ultimate claim liability becomes known , such change is quantified to the extent possible through an analysis of internal company data and , if available and whe n appropriate , external data . actuaries exercise a considerable degree of judgment in the evaluation of these factors and the need for such actuarial judgment is more pronounced when faced with material uncertainties . we believe that the amounts recorded for our estimated liabilities for workers ' compensation claims , which are based on informed judgment , analysis of data , actuarial estimates , and analysis of other trends associated with the company 's historical universe of claims data , are reasonable . nevertheless , adjustments to such estimates will be required in future periods if the development of claim costs varies materially from our estimates and such future adjustments may be material to our results of operations . recent accounting pronouncements for a discussion of recent accounting pronouncements and their potential effect on the company 's results of operations and financial condition , see “ note 1 - summary of operations and significant accounting policies ” to the consolidated financial statements incorporated into item 8 of part ii of this report . story_separator_special_tag contractual obligations the company 's contractual obligations as of december 31 , 2018 are summarized below : replace_table_token_9_th inflation inflation generally has not been a significant factor in the company 's operations during the periods discussed above . the company has taken into account the impact of escalating medical and other costs in establishing reserves for future workers ' compensation claims payments . - 29 - item 7a . quantitative and qualitat ive disclosures about market risk the company 's exposure to market risk for changes in interest rates primarily relates to its investment portfolio and its outstanding borrowings on its line of credit and long-term debt . as of december 31 , 2018 , the company 's investments consisted principally of approximately $ 181.8 million in corporate bonds , $ 87.9 million in mortgage backed securities , $ 45.2 million in u.s. treasuries , $ 44.7 million in u.s. government agency securities , $ 4.7 million in supranational , $ 1.1 million in mutual funds , and $ 0.4 million in money market funds . the company 's outstanding debt totaled approximately $ 4.2 million at december 31 , 2018. based on the company 's overall interest exposure at december 31 , 2018 , a 50 basis point increase in market interest rates would have a $ 5.6 million effect on the fair value of the company 's investment portfolio . a 50 basis point increase would have an immaterial effect on the company 's outstanding borrowings because of the relative size of the outstanding borrowings . item 8. financial statements and supplementary data the consolidated financial statements and notes thereto required by this item begin on page f-1 of this report , as listed in item 15. item 9. changes in and disagreements with accountants on accounting and financial disclosure none . item 9a . controls and procedures evaluation of disclosure controls and procedures we maintain “ disclosure controls and procedures ” that are designed with the objective of providing reasonable assurance that information required to be disclosed in the reports we file or submit under the securities exchange act of 1934 , as amended ( the “ exchange act ” ) , is recorded , processed , summarized , and reported within the time periods specified in the sec 's rules and forms , and that such information is accumulated and communicated to our management , including our chief executive officer ( “ ceo ” ) and chief financial officer ( “ cfo ” ) , as appropriate , to allow timely decisions regarding required disclosure . in designing and evaluating our disclosure controls and procedures , our management recognizes that any controls and procedures , no matter how well designed and operated , can provide only reasonable assurance of achieving the desired control objectives , and our management is required to apply their judgment in evaluating the cost-benefit relationship of possible controls and procedures . based on their evaluation , the company 's ceo and cfo have concluded that the company 's disclosure controls and procedures ( as defined in rules 13a-15 ( e ) and 15d-15 ( e ) under the exchange act ) were effective as of december 31 , 2018. annual report on internal control over financial reporting management is responsible for establishing and maintaining adequate internal control over financial reporting ( “ icfr ” ) as defined in rules 13a-15 ( f ) and 15d-15 ( f ) under the exchange act . our icfr is a process designed by , or under the supervision of , our ceo and our cfo to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our consolidated financial statements for external purposes in accordance with generally accepted accounting principles ( “ gaap ” ) in the united states of america . management , with the participation of our ceo and cfo , conducted an evaluation of the effectiveness of our icfr based on the framework established in internal control—integrated framework ( 2013 ) issued by the committee of sponsoring organizations of the treadway commission . based upon that evaluation , management has concluded that the company 's internal control over financial reporting was effective as of december 31 , 2018 . - 30 - the effectiveness of the company 's internal control over financial reporting has also been audited by deloitte & touche llp , the company 's independent registered public accounting firm , as stated in their report included below . changes in internal control over financial reporting there have been no changes in the company 's internal control over financial reporting that occurred during the quarter ended december 31 , 2018 that have materially affected , or are reasonably likely to materially affect , the company 's internal control over financial reporting . inherent limitations control systems , no matter how well designed and operated , can provide only reasonable , not absolute , assurance that the control systems ' objectives are being met . further , the design of any control systems must reflect the fact that there are resource constraints , and the benefits of all controls must be considered relative to their costs . due to the inherent limitations in all control systems , no evaluation of controls can provide absolute assurance that all control issues and instances of fraud , if any , within the company have been detected . these inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple errors or mistakes . control systems can also be circumvented by the individual acts of some persons , by collusion of two or more people , or by management override of the controls . the design of any system of controls is based in part on certain assumptions about the likelihood of future events , and there can be no assurance that any design will succeed in achieving its stated goals under all
| liquidity and capital resources the company 's cash balance of $ 140.7 million , which includes cash , cash equivalents , and restricted cash , increased $ 20.5 million for the twelve months ended december 31 , 2018 , compared to a decrease of $ 221.1 million for the comparable period of 2017. the increase in cash at december 31 , 2018 as compared to december 31 , 2017 was primarily due to decreased purchases of restricted investments . net cash provided by operating activities in 2018 amounted to $ 69.8 million , compared to net cash provided of $ 112.9 million for the comparable period of 2017. in 2018 , cash flow from operating activities was primarily provided by net income of $ 38.1 million and increased workers ' compensation claims liabilities of $ 49.6 million , partially offset by decreased accrued payroll , payroll taxes and related benefits of $ 21.9 million and increased trade accounts receivable of $ 14.9 million . net cash used in investing activities totaled $ 39.3 million in 2018 , compared to net cashed used of $ 325.0 million for the comparable period of 2017. in 2018 , cash used in investing activities consisted primarily of purchases of investments and restricted investments of $ 110.7 million , partially offset by proceeds from sales and maturities of investments and restricted investments of $ 76.5 million . net cash used in financing activities in 2018 was $ 9.9 million compared to net cash used of $ 9.0 million for the comparable period of 2017. in 2018 , cash was primarily used for dividend payments of $ 7.3 million and common stock repurchased on vesting of restricted stock units of $ 3.0 million . - 27 - the states of california , maryland , oregon , washington , colorado and delaware required us to maintain specified financial instruments totaling $ 85.2 million and $ 96.8 million at december 31 , 2018 and 2017 , respectively , to cover potential workers ' compensation claims losses related to the company 's current and former status as a self-insured employer .
| 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 of $ 140.7 million , which includes cash , cash equivalents , and restricted cash , increased $ 20.5 million for the twelve months ended december 31 , 2018 , compared to a decrease of $ 221.1 million for the comparable period of 2017. the increase in cash at december 31 , 2018 as compared to december 31 , 2017 was primarily due to decreased purchases of restricted investments . net cash provided by operating activities in 2018 amounted to $ 69.8 million , compared to net cash provided of $ 112.9 million for the comparable period of 2017. in 2018 , cash flow from operating activities was primarily provided by net income of $ 38.1 million and increased workers ' compensation claims liabilities of $ 49.6 million , partially offset by decreased accrued payroll , payroll taxes and related benefits of $ 21.9 million and increased trade accounts receivable of $ 14.9 million . net cash used in investing activities totaled $ 39.3 million in 2018 , compared to net cashed used of $ 325.0 million for the comparable period of 2017. in 2018 , cash used in investing activities consisted primarily of purchases of investments and restricted investments of $ 110.7 million , partially offset by proceeds from sales and maturities of investments and restricted investments of $ 76.5 million . net cash used in financing activities in 2018 was $ 9.9 million compared to net cash used of $ 9.0 million for the comparable period of 2017. in 2018 , cash was primarily used for dividend payments of $ 7.3 million and common stock repurchased on vesting of restricted stock units of $ 3.0 million . - 27 - the states of california , maryland , oregon , washington , colorado and delaware required us to maintain specified financial instruments totaling $ 85.2 million and $ 96.8 million at december 31 , 2018 and 2017 , respectively , to cover potential workers ' compensation claims losses related to the company 's current and former status as a self-insured employer .
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Suspicious Activity Report : - 21 - depreciation and amortization represent depreciation of property and equipment , leasehold improvements and capitalized software costs . property , equipment and software are depreciated using t he straight-line method over their estimated useful lives , which range from 3 to 39 years . leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life . critical accounting policies and estimates we have identified the following accounting estimate as critical to our business and the understanding of our results of operations . for a detailed discussion of the application of this and other accounting policies , see “ note 1 - summary of operations and significant accounting policies ” to the consolidated financial statements incorporated into item 8 of part ii of this report . the preparation of this annual report on form 10-k requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expenses during the reporting period . management bases its estimates on historical experience and on various other assumptions that are believed to be 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 . actual results may differ from these estimates . workers ' compensation reserves we recognize our liability for the ultimate payment of incurred claims and claims adjustment expenses by establishing a reserve which represents our estimates of future amounts necessary to pay claims and related expenses with respect to workplace injuries that have occurred . when a claim involving a probable loss is reported , our independent third-party administrator for workers ' compensation claims ( “ tpa ” ) establishes a case reserve for the estimated amount of ultimate loss . the estimate reflects a judgment based on established case reserving practices and the experience and knowledge of the tpa regarding the nature and expected amount of the claim , as well as the estimated expenses of settling the claim , including legal and other fees and expenses of claims administration . the adequacy of such case reserves in part depends on the professional judgment of the tpa to properly and comprehensively evaluate the economic consequences of each claim . our reserves include an additional component for potential future increases in the cost to finally resolve open injury claims and claims incurred in prior periods but not reported ( together , `` ibnr `` ) based on actuarial estimates provided by the company 's independent actuary . ibnr reserves , unlike specific case reserves , do not apply to a specific claim but rather apply to the entire population of claims arising from a specific time period . ibnr primarily covers costs relating to : future claim payments in excess of case reserves on recorded open claims ; additional claim payments on closed claims ; and claims that have occurred but have not yet been reported to us . the process of estimating unpaid claims and claims adjustment expense involves a high degree of judgment and is affected by both internal and external events , including changes in claims handling practices , modifications in reserve estimation procedures , changes in individuals involved in the reserve estimation process , inflation , trends in the litigation and settlement of pending claims , and legislative changes . our estimates are based on informed judgment , derived from individual experiences and expertise applied to multiple sets of data and analyses . we consider significant facts and circumstances known both at the time that loss reserves are initially established and as new facts and circumstances become known . due to the inherent uncertainty underlying loss reserve estimates , the expenses incurred through final resolution of our liability for our workers ' compensation claims will likely vary from the related loss reserves at the reporting date . therefore , as specific claims are paid out in the future , actual paid losses may be materially different from our current loss reserves . - 22 - a basic premise in most actu arial analyses is that historical data and past patterns demonstrated in the incurred and paid historical data form a reasonable basis upon which to project future outcomes , absent a material change . significant structural changes to the available data can materially impact the reserve estimation process . to the extent a material change affecting the ultimate claim liability becomes known , such change is quantified to the extent possible through an analysis of internal company data and , if available and whe n appropriate , external data . actuaries exercise a considerable degree of judgment in the evaluation of these factors and the need for such actuarial judgment is more pronounced when faced with material uncertainties . we believe that the amounts recorded for our estimated liabilities for workers ' compensation claims , which are based on informed judgment , analysis of data , actuarial estimates , and analysis of other trends associated with the company 's historical universe of claims data , are reasonable . nevertheless , adjustments to such estimates will be required in future periods if the development of claim costs varies materially from our estimates and such future adjustments may be material to our results of operations . recent accounting pronouncements for a discussion of recent accounting pronouncements and their potential effect on the company 's results of operations and financial condition , see “ note 1 - summary of operations and significant accounting policies ” to the consolidated financial statements incorporated into item 8 of part ii of this report . story_separator_special_tag contractual obligations the company 's contractual obligations as of december 31 , 2018 are summarized below : replace_table_token_9_th inflation inflation generally has not been a significant factor in the company 's operations during the periods discussed above . the company has taken into account the impact of escalating medical and other costs in establishing reserves for future workers ' compensation claims payments . - 29 - item 7a . quantitative and qualitat ive disclosures about market risk the company 's exposure to market risk for changes in interest rates primarily relates to its investment portfolio and its outstanding borrowings on its line of credit and long-term debt . as of december 31 , 2018 , the company 's investments consisted principally of approximately $ 181.8 million in corporate bonds , $ 87.9 million in mortgage backed securities , $ 45.2 million in u.s. treasuries , $ 44.7 million in u.s. government agency securities , $ 4.7 million in supranational , $ 1.1 million in mutual funds , and $ 0.4 million in money market funds . the company 's outstanding debt totaled approximately $ 4.2 million at december 31 , 2018. based on the company 's overall interest exposure at december 31 , 2018 , a 50 basis point increase in market interest rates would have a $ 5.6 million effect on the fair value of the company 's investment portfolio . a 50 basis point increase would have an immaterial effect on the company 's outstanding borrowings because of the relative size of the outstanding borrowings . item 8. financial statements and supplementary data the consolidated financial statements and notes thereto required by this item begin on page f-1 of this report , as listed in item 15. item 9. changes in and disagreements with accountants on accounting and financial disclosure none . item 9a . controls and procedures evaluation of disclosure controls and procedures we maintain “ disclosure controls and procedures ” that are designed with the objective of providing reasonable assurance that information required to be disclosed in the reports we file or submit under the securities exchange act of 1934 , as amended ( the “ exchange act ” ) , is recorded , processed , summarized , and reported within the time periods specified in the sec 's rules and forms , and that such information is accumulated and communicated to our management , including our chief executive officer ( “ ceo ” ) and chief financial officer ( “ cfo ” ) , as appropriate , to allow timely decisions regarding required disclosure . in designing and evaluating our disclosure controls and procedures , our management recognizes that any controls and procedures , no matter how well designed and operated , can provide only reasonable assurance of achieving the desired control objectives , and our management is required to apply their judgment in evaluating the cost-benefit relationship of possible controls and procedures . based on their evaluation , the company 's ceo and cfo have concluded that the company 's disclosure controls and procedures ( as defined in rules 13a-15 ( e ) and 15d-15 ( e ) under the exchange act ) were effective as of december 31 , 2018. annual report on internal control over financial reporting management is responsible for establishing and maintaining adequate internal control over financial reporting ( “ icfr ” ) as defined in rules 13a-15 ( f ) and 15d-15 ( f ) under the exchange act . our icfr is a process designed by , or under the supervision of , our ceo and our cfo to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our consolidated financial statements for external purposes in accordance with generally accepted accounting principles ( “ gaap ” ) in the united states of america . management , with the participation of our ceo and cfo , conducted an evaluation of the effectiveness of our icfr based on the framework established in internal control—integrated framework ( 2013 ) issued by the committee of sponsoring organizations of the treadway commission . based upon that evaluation , management has concluded that the company 's internal control over financial reporting was effective as of december 31 , 2018 . - 30 - the effectiveness of the company 's internal control over financial reporting has also been audited by deloitte & touche llp , the company 's independent registered public accounting firm , as stated in their report included below . changes in internal control over financial reporting there have been no changes in the company 's internal control over financial reporting that occurred during the quarter ended december 31 , 2018 that have materially affected , or are reasonably likely to materially affect , the company 's internal control over financial reporting . inherent limitations control systems , no matter how well designed and operated , can provide only reasonable , not absolute , assurance that the control systems ' objectives are being met . further , the design of any control systems must reflect the fact that there are resource constraints , and the benefits of all controls must be considered relative to their costs . due to the inherent limitations in all control systems , no evaluation of controls can provide absolute assurance that all control issues and instances of fraud , if any , within the company have been detected . these inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple errors or mistakes . control systems can also be circumvented by the individual acts of some persons , by collusion of two or more people , or by management override of the controls . the design of any system of controls is based in part on certain assumptions about the likelihood of future events , and there can be no assurance that any design will succeed in achieving its stated goals under all
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2,686 | approval at the extraordinary general meeting of the shareholders of cch held on august 27 , 2020. ubi was determined to be the accounting acquirer and ubh was determined to be the accounting acquiree , in accordance with asc 810 , as the company is considered to be the primary beneficiary of ubh after the business combination . under the asc 805 , business combinations , acquisition method of accounting , purchase price allocation of assets acquired and liabilities assumed of ubh are presented based on their estimated fair values as of the closing of the business combination . as a result of the business combination , ubi 's financial statement presentation distinguishes ubh as the “ predecessor ” for periods prior to the closing of the business combination . ubi , which includes consolidation of ubh subsequent to the business combination , is the “ successor ” for periods after the closing of the business combination . as a result of the application of the acquisition method of accounting in the successor period , the financial statements for the successor period are presented on a full step-up basis as a result of the business combination , and are therefore not comparable to the financial statements of the predecessor period that are not presented on the same full step-up basis due to the business combination . key developments and trends our management team monitors a number of developments and trends that could impact our revenue and profitability objectives . long-term demographics , consumer trends , and demand – we participate in the attractive and growing $ 28 billion u.s. salty snacks category , within the broader $ 97 billion market for u.s. snack foods . the salty snacks category has grown retail sales at an approximately 5.6 % compound annual growth rate ( “ cagr ” ) over the last four years , including the increased in-home consumption of salty snacks due to covid-19 during 2020. during fiscal 2020 , snacking occasions are on the rise as consumers increasingly seek out convenient , delicious snacks for both on-the-go and at-home lifestyles . according to data from the hartman group , the consumer goods forum , and iri , approximately 50 % of u.s. eating occasions are snacks , with 95 % of the u.s. population snacking daily and the average american snacking 2.6 times per day based upon the latest available iri data . additionally , the salty snacks category has historically benefited from favorable competitive dynamics , including low private label penetration and category leaders competing primarily through marketing and innovation . we expect these consumer and category trends to continue to drive strong retail sales growth for salty snacks . as a staple food product with resilient consumer demand and a predominantly domestic supply chain , the salty snack category is well positioned to navigate periods of economic disruption or other unforeseen global events . the u.s. salty snack category has demonstrated strong performance through economic downturns historically , growing at a 4 % cagr from 2007 to 2010 during the last recession . more recently , the u.s. salty snack category demonstrated strong performance during the novel coronavirus ( “ covid-19 ” ) pandemic which began in march 2020 in the u.s. for the 52 weeks ended december 27 , 2020 , u.s. retail sales for salty snacks based on iri data increased by 9.1 % versus the comparable prior year period while our retail sales increased by 15.1 % in the same period . competition – the salty snack industry is highly competitive and includes many diverse participants . our products primarily compete with other salty snacks but also compete more broadly for certain eating occasions with other snack foods . we believe that the principal competitive factors in the salty snack industry include taste , convenience , product variety , product quality , price , nutrition , consumer brand awareness , media and promotional activities , in-store merchandising execution , customer service , cost-efficient distribution , and access to retailer shelf space . we believe we compete effectively with respect to each of these factors . operating costs – our operating costs include raw materials , labor , manufacturing overhead , selling , distribution , general and administrative expenses . we manage these expenses through annual cost saving and productivity initiatives , sourcing and hedging programs , pricing actions , refinancing and tax optimization . additionally , we maintain ongoing efforts led by our project management office , or pmo , to expand our profitability , including implementing significant reductions to our operating cost structure in both supply chain and overhead costs . 41 taxes – on march 27 , 2020 , the coronavirus aid , relief , and economic security act ( “ cares act ” ) was enacted which includes various tax provisions with retroactive effect . the cares act is an approximately $ 2 trillion emergency economic stimulus package in response to the coronavirus outbreak , which among other things contains numerous income tax provisions . some of these tax provisions are effective retroactively for years ending before the date of enactment . we deferred $ 7.8 million of payroll tax deposits per the cares act . the deferred payroll taxes must be deposited in two installments , with half due on december 31 , 2021 and the remainder on december 31 , 2022. we continue to evaluate the impact of the cares act ; however , we believe it is unlikely to have a material effect on our consolidated financial position , results of operations , and cash flow . financing costs – we regularly evaluate our variable and fixed-rate debt . we continue to use low-cost , short- and long-term debt to finance our ongoing working capital , capital expenditures and other investments and dividends . story_separator_special_tag io discounts increased from $ 77.2 million in fiscal 2019 to $ 96.5 million in fiscal 2020 , reducing gross profit by $ 19.3 million . selling and administrative expense selling and administrative expenses were $ 107.5 million for the successor period , $ 195.6 million from december 30 , 2019 through august 28 , 2020 , and $ 228.3 million for the year ended december 29 , 2019. selling and administrative expenses for the combined year ended january 3 , 2021 increased $ 74.8 million or 33 % over fiscal 2019. the increased expenses in fiscal 2020 were driven by higher transaction-related service provider fees , higher operational costs related to incremental sales volume , operating expense of the acquired kennedy , kitchen cooked , h.k . anderson and truco businesses , higher incentive compensation expense and an additional 53rd week . gain ( loss ) on sale of assets gain on sale of assets was $ 0.9 million for the successor period , $ 1.3 million from december 30 , 2019 through august 28 , 2020 , and $ 13.3 million for the year ended december 29 , 2019. gain on sale of assets was primarily driven by a reduction in the number of conversions of rsp routes to io routes , which resulted in lower proceeds from the sale of routes in fiscal year 2020 compared to the same time period in fiscal year 2019. additionally , company owned routes were recorded at fair value as a result of the business combination , which resulted in increasing the io route asset by $ 10.5 million . other ( expense ) income , net other expense , net was $ 15.4 million for the successor period , $ 25.4 million from december 30 , 2019 through august 28 , 2020 , and $ 49.0 million for the year ended december 29 , 2019. the company incurred $ 2.5 million of expenses in connection with the repayment of the senior secured first lien note and incremental interest of $ 1.1 million and deferred financing fees that were expensed of $ 4.7 million related to the bridge loan in connection with the acquisition of truco during the successor period . interest expense decreased $ 8.4 million for the combined year ended january 3 , 2021 , versus the fiscal year 2019. the lower interest expense was driven by a reduction in the comparative average libor rate and payoff of the existing second lien term loan and subsequent origination of a new term loan with a lower fixed rate component in the fiscal fourth quarter of 2019 , which favorably impacted the fiscal year 2020. income taxes inco me taxes were a benefit of $ 0.3 million for the successor period , expense of $ 4.0 million for december 30 , 2019 through august 28 , 2020 , and expense of $ 3.1 million for the year ended december 29 , 2019 . 47 year ended december 29 , 2019 ( predecessor ) versus year ended december 30 , 2018 ( predecessor ) net sales net sales for fiscal 2019 compared to fiscal 2018 remained relatively flat , with a $ 3.8 million and 0.5 % decrease year over year . the decrease in net sales was related to the conversion of rsp operated routes to ios which resulted in additional discounts and commissions offered to ios . io discounts increased from $ 58.0 million in fiscal 2018 to $ 77.2 million in fiscal 2019 , reducing net sales by $ 19.2 million for the period . this conversion was mostly offset by the fourth quarter results associated with the acquisition of kennedy , which closed on october 21 , 2019. excluding the offsetting impact of the kennedy acquisition and changes in io discounts , power brands , which accounted for approximately 78 % of the overall sales , increased by approximately 2 % . this was partially offset by a decrease in sales of approximately 5 % within the foundation brands , which accounted for the remaining 22 % . growth in power brands was led by the utz , zapp 's and golden flake pork skins brands , partially offset by the negative impact of a strategic realignment of the boulder canyon and tgi fridays brands as part of the inventure foods integration process . the decrease in sales of foundation brands primarily resulted from our strategic decision to exit certain low-margin , non-core private label businesses acquired through previous acquisitions . cost of goods sold and gross profit our gross profit for fiscal 2019 was $ 253.8 million , a $ 12.9 million and 4.8 % decrease compared to gross profit of $ 266.7 million for fiscal 2018. the decrease in gross profit in fiscal year 2019 was made up of a net $ 16.8 million reduction due to conversion of rsp routes to ios which increased io discounts and decreased cost of stale and damaged product , $ 5.4 million increase due to the kennedy acquisition , and $ 1.5 million reduction primarily due to higher input costs . our gross profit margin was 33.0 % and 34.5 % for fiscal years 2019 and 2018 , respectively . the decrease in gross profit margin was primarily driven by the conversion of rsp routes to ios as well as lower overall gross profit margins of kennedy and higher input costs . io discounts increased from $ 58.0 million in fiscal 2018 to $ 77.2 million in fiscal 2019 , reducing gross profit by $ 19.2 million for the period . excluding the impact of increased io discounts due to dsd route conversions , gross profit as a percentage of net sales would have increased by 0.2 % from 34.5 % to 34.7 % . selling and administrative expense our selling and administrative expenses for fiscal 2019 were $ 228.3 million , a $ 23.1 million and 9.2 % decrease , compared to selling and administrative expenses of $
| liquidity and capital resources the following table presents net cash provided by operating activities , investing activities and financing activities for the fifty-three weeks ended january 3 , 2021 and fifty-two weeks ended december 29 , 2019. replace_table_token_5_th 51 for the period ended january 3 , 2021 , our consolidated cash balance , including cash equivalents , was $ 46.9 million or $ 31.8 million higher than at december 29 , 2019. net cash provided by operating activities for the combined fifty-three weeks ended january 3 , 2021 was $ 29.7 million compared to $ 28.0 million for the fifty-two weeks ended december 29 , 2019 , with the difference largely driven by the increase in gross margin and lower interest expense partially offset by the increased cash expenses associated with transaction costs . cash used in investing activities for the combined fifty-three weeks ended january 3 , 2021 was $ 703.4 million mostly driven by the business combination and capital expenditures of $ 21.7 million , versus cash used in investing activity of $ 115.9 million for the fifty-two weeks ended december 29 , 2019 , which was driven by the acquisitions of truco and the corresponding on the border tradename , along with the acquisition of ubh , kitchen cooked and the h.k . anderson business . additionally , during fiscal year 2019 , we sold certain io notes , which resulted in cash proceeds of $ 33.2 million . net cash provided by financing activities was $ 231.5 million for the combined fifty-three weeks ended january 3 , 2021 , which was primarily as a result of the bridge credit agreement for the acquisition of truco and exercise of warrants , versus net cash provided by financing activities of $ 96.0 million for the fifty-two weeks ended december 29 , 2019. financing arrangements the primary objective of our financing strategy is to maintain a prudent capital structure that provides us flexibility to pursue our growth objectives .
| 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 following table presents net cash provided by operating activities , investing activities and financing activities for the fifty-three weeks ended january 3 , 2021 and fifty-two weeks ended december 29 , 2019. replace_table_token_5_th 51 for the period ended january 3 , 2021 , our consolidated cash balance , including cash equivalents , was $ 46.9 million or $ 31.8 million higher than at december 29 , 2019. net cash provided by operating activities for the combined fifty-three weeks ended january 3 , 2021 was $ 29.7 million compared to $ 28.0 million for the fifty-two weeks ended december 29 , 2019 , with the difference largely driven by the increase in gross margin and lower interest expense partially offset by the increased cash expenses associated with transaction costs . cash used in investing activities for the combined fifty-three weeks ended january 3 , 2021 was $ 703.4 million mostly driven by the business combination and capital expenditures of $ 21.7 million , versus cash used in investing activity of $ 115.9 million for the fifty-two weeks ended december 29 , 2019 , which was driven by the acquisitions of truco and the corresponding on the border tradename , along with the acquisition of ubh , kitchen cooked and the h.k . anderson business . additionally , during fiscal year 2019 , we sold certain io notes , which resulted in cash proceeds of $ 33.2 million . net cash provided by financing activities was $ 231.5 million for the combined fifty-three weeks ended january 3 , 2021 , which was primarily as a result of the bridge credit agreement for the acquisition of truco and exercise of warrants , versus net cash provided by financing activities of $ 96.0 million for the fifty-two weeks ended december 29 , 2019. financing arrangements the primary objective of our financing strategy is to maintain a prudent capital structure that provides us flexibility to pursue our growth objectives .
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Suspicious Activity Report : approval at the extraordinary general meeting of the shareholders of cch held on august 27 , 2020. ubi was determined to be the accounting acquirer and ubh was determined to be the accounting acquiree , in accordance with asc 810 , as the company is considered to be the primary beneficiary of ubh after the business combination . under the asc 805 , business combinations , acquisition method of accounting , purchase price allocation of assets acquired and liabilities assumed of ubh are presented based on their estimated fair values as of the closing of the business combination . as a result of the business combination , ubi 's financial statement presentation distinguishes ubh as the “ predecessor ” for periods prior to the closing of the business combination . ubi , which includes consolidation of ubh subsequent to the business combination , is the “ successor ” for periods after the closing of the business combination . as a result of the application of the acquisition method of accounting in the successor period , the financial statements for the successor period are presented on a full step-up basis as a result of the business combination , and are therefore not comparable to the financial statements of the predecessor period that are not presented on the same full step-up basis due to the business combination . key developments and trends our management team monitors a number of developments and trends that could impact our revenue and profitability objectives . long-term demographics , consumer trends , and demand – we participate in the attractive and growing $ 28 billion u.s. salty snacks category , within the broader $ 97 billion market for u.s. snack foods . the salty snacks category has grown retail sales at an approximately 5.6 % compound annual growth rate ( “ cagr ” ) over the last four years , including the increased in-home consumption of salty snacks due to covid-19 during 2020. during fiscal 2020 , snacking occasions are on the rise as consumers increasingly seek out convenient , delicious snacks for both on-the-go and at-home lifestyles . according to data from the hartman group , the consumer goods forum , and iri , approximately 50 % of u.s. eating occasions are snacks , with 95 % of the u.s. population snacking daily and the average american snacking 2.6 times per day based upon the latest available iri data . additionally , the salty snacks category has historically benefited from favorable competitive dynamics , including low private label penetration and category leaders competing primarily through marketing and innovation . we expect these consumer and category trends to continue to drive strong retail sales growth for salty snacks . as a staple food product with resilient consumer demand and a predominantly domestic supply chain , the salty snack category is well positioned to navigate periods of economic disruption or other unforeseen global events . the u.s. salty snack category has demonstrated strong performance through economic downturns historically , growing at a 4 % cagr from 2007 to 2010 during the last recession . more recently , the u.s. salty snack category demonstrated strong performance during the novel coronavirus ( “ covid-19 ” ) pandemic which began in march 2020 in the u.s. for the 52 weeks ended december 27 , 2020 , u.s. retail sales for salty snacks based on iri data increased by 9.1 % versus the comparable prior year period while our retail sales increased by 15.1 % in the same period . competition – the salty snack industry is highly competitive and includes many diverse participants . our products primarily compete with other salty snacks but also compete more broadly for certain eating occasions with other snack foods . we believe that the principal competitive factors in the salty snack industry include taste , convenience , product variety , product quality , price , nutrition , consumer brand awareness , media and promotional activities , in-store merchandising execution , customer service , cost-efficient distribution , and access to retailer shelf space . we believe we compete effectively with respect to each of these factors . operating costs – our operating costs include raw materials , labor , manufacturing overhead , selling , distribution , general and administrative expenses . we manage these expenses through annual cost saving and productivity initiatives , sourcing and hedging programs , pricing actions , refinancing and tax optimization . additionally , we maintain ongoing efforts led by our project management office , or pmo , to expand our profitability , including implementing significant reductions to our operating cost structure in both supply chain and overhead costs . 41 taxes – on march 27 , 2020 , the coronavirus aid , relief , and economic security act ( “ cares act ” ) was enacted which includes various tax provisions with retroactive effect . the cares act is an approximately $ 2 trillion emergency economic stimulus package in response to the coronavirus outbreak , which among other things contains numerous income tax provisions . some of these tax provisions are effective retroactively for years ending before the date of enactment . we deferred $ 7.8 million of payroll tax deposits per the cares act . the deferred payroll taxes must be deposited in two installments , with half due on december 31 , 2021 and the remainder on december 31 , 2022. we continue to evaluate the impact of the cares act ; however , we believe it is unlikely to have a material effect on our consolidated financial position , results of operations , and cash flow . financing costs – we regularly evaluate our variable and fixed-rate debt . we continue to use low-cost , short- and long-term debt to finance our ongoing working capital , capital expenditures and other investments and dividends . story_separator_special_tag io discounts increased from $ 77.2 million in fiscal 2019 to $ 96.5 million in fiscal 2020 , reducing gross profit by $ 19.3 million . selling and administrative expense selling and administrative expenses were $ 107.5 million for the successor period , $ 195.6 million from december 30 , 2019 through august 28 , 2020 , and $ 228.3 million for the year ended december 29 , 2019. selling and administrative expenses for the combined year ended january 3 , 2021 increased $ 74.8 million or 33 % over fiscal 2019. the increased expenses in fiscal 2020 were driven by higher transaction-related service provider fees , higher operational costs related to incremental sales volume , operating expense of the acquired kennedy , kitchen cooked , h.k . anderson and truco businesses , higher incentive compensation expense and an additional 53rd week . gain ( loss ) on sale of assets gain on sale of assets was $ 0.9 million for the successor period , $ 1.3 million from december 30 , 2019 through august 28 , 2020 , and $ 13.3 million for the year ended december 29 , 2019. gain on sale of assets was primarily driven by a reduction in the number of conversions of rsp routes to io routes , which resulted in lower proceeds from the sale of routes in fiscal year 2020 compared to the same time period in fiscal year 2019. additionally , company owned routes were recorded at fair value as a result of the business combination , which resulted in increasing the io route asset by $ 10.5 million . other ( expense ) income , net other expense , net was $ 15.4 million for the successor period , $ 25.4 million from december 30 , 2019 through august 28 , 2020 , and $ 49.0 million for the year ended december 29 , 2019. the company incurred $ 2.5 million of expenses in connection with the repayment of the senior secured first lien note and incremental interest of $ 1.1 million and deferred financing fees that were expensed of $ 4.7 million related to the bridge loan in connection with the acquisition of truco during the successor period . interest expense decreased $ 8.4 million for the combined year ended january 3 , 2021 , versus the fiscal year 2019. the lower interest expense was driven by a reduction in the comparative average libor rate and payoff of the existing second lien term loan and subsequent origination of a new term loan with a lower fixed rate component in the fiscal fourth quarter of 2019 , which favorably impacted the fiscal year 2020. income taxes inco me taxes were a benefit of $ 0.3 million for the successor period , expense of $ 4.0 million for december 30 , 2019 through august 28 , 2020 , and expense of $ 3.1 million for the year ended december 29 , 2019 . 47 year ended december 29 , 2019 ( predecessor ) versus year ended december 30 , 2018 ( predecessor ) net sales net sales for fiscal 2019 compared to fiscal 2018 remained relatively flat , with a $ 3.8 million and 0.5 % decrease year over year . the decrease in net sales was related to the conversion of rsp operated routes to ios which resulted in additional discounts and commissions offered to ios . io discounts increased from $ 58.0 million in fiscal 2018 to $ 77.2 million in fiscal 2019 , reducing net sales by $ 19.2 million for the period . this conversion was mostly offset by the fourth quarter results associated with the acquisition of kennedy , which closed on october 21 , 2019. excluding the offsetting impact of the kennedy acquisition and changes in io discounts , power brands , which accounted for approximately 78 % of the overall sales , increased by approximately 2 % . this was partially offset by a decrease in sales of approximately 5 % within the foundation brands , which accounted for the remaining 22 % . growth in power brands was led by the utz , zapp 's and golden flake pork skins brands , partially offset by the negative impact of a strategic realignment of the boulder canyon and tgi fridays brands as part of the inventure foods integration process . the decrease in sales of foundation brands primarily resulted from our strategic decision to exit certain low-margin , non-core private label businesses acquired through previous acquisitions . cost of goods sold and gross profit our gross profit for fiscal 2019 was $ 253.8 million , a $ 12.9 million and 4.8 % decrease compared to gross profit of $ 266.7 million for fiscal 2018. the decrease in gross profit in fiscal year 2019 was made up of a net $ 16.8 million reduction due to conversion of rsp routes to ios which increased io discounts and decreased cost of stale and damaged product , $ 5.4 million increase due to the kennedy acquisition , and $ 1.5 million reduction primarily due to higher input costs . our gross profit margin was 33.0 % and 34.5 % for fiscal years 2019 and 2018 , respectively . the decrease in gross profit margin was primarily driven by the conversion of rsp routes to ios as well as lower overall gross profit margins of kennedy and higher input costs . io discounts increased from $ 58.0 million in fiscal 2018 to $ 77.2 million in fiscal 2019 , reducing gross profit by $ 19.2 million for the period . excluding the impact of increased io discounts due to dsd route conversions , gross profit as a percentage of net sales would have increased by 0.2 % from 34.5 % to 34.7 % . selling and administrative expense our selling and administrative expenses for fiscal 2019 were $ 228.3 million , a $ 23.1 million and 9.2 % decrease , compared to selling and administrative expenses of $
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2,687 | these intercompany revenues are recorded at a transfer price which is typically in excess of the actual manufacturing cost . products are carried in inventory and subsequently placed in service and amortized at this transfer price . on a consolidated basis , intercompany mfg revenues and mfg income are eliminated and the carrying value of inventories and rental merchandise in service is reduced to the manufacturing cost . income before income taxes from mfg , net of the intercompany mfg elimination , offsets the merchandise amortization costs incurred by the u.s. and canadian rental and cleaning reporting segment as the merchandise costs of this reporting segment are amortized and recognized based on inventories purchased from mfg at the transfer price which is above our manufacturing cost . the corporate operating segment consists of costs associated with our distribution center , sales and marketing , information systems , engineering , materials management , manufacturing planning , finance , budgeting , human resources , other general 19 and administrative costs and interest expense . the revenues generated from the corporate operating segment represent certain direct sales made directly from our distribution center . the products sold by this operating segment are the same products rented and sold by the u.s. and canadian rental and cleaning reporting segment . in the segment disclosures in note 15 , “ segment reporting ” , of our consolidated financial statements , no assets or capital expenditures are presented for the corporate operating segment as no assets are allocated to this operating segment in the information reviewed by our chief executive officer . however , depreciation and amortization expense related to certain assets are reflected in income from operations and income before income taxes for the corporate operating segment . the assets that give rise to this depreciation and amortization are included in the total assets of the u.s. and canadian rental and cleaning reporting segment as this is how they are tracked and reviewed by us . we refer to our u.s. and canadian rental and cleaning , mfg , and corporate segments combined as our “ core laundry operations ” . the specialty garments operating segment purchases , rents , cleans , delivers and sells , specialty garments and non-garment items primarily for nuclear and cleanroom applications and provides cleanroom cleaning services at limited customer locations . the first aid operating segment sells first aid cabinet services and other safety supplies as well as maintains wholesale distribution and pill packaging operations . approximately 89 % of our revenues in fiscal 2020 were derived from u.s. and canadian rental and cleaning and corporate . a key driver of this business is the number of workers employed by our customers . our revenues are directly impacted by fluctuations in these employment levels . revenues from specialty garments , which accounted for approximately 7 % of our 2020 revenues , increase during outages and refueling by nuclear power plants , as garment usage increases at these times . first aid represented approximately 4 % of our total revenue in fiscal 2020. critical accounting policies and estimates we believe the following critical accounting policies reflect our more significant judgments and estimates used in the preparation of our consolidated financial statements . use of estimates we prepare our financial statements in conformity with u.s. gaap , which requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes . we utilize key estimates in preparing the financial statements , including casualty and environmental estimates , recoverability of goodwill , intangibles , income taxes and long-lived assets . these estimates are based on historical information , current trends , and information available from other sources . our results are affected by economic , political , legislative , regulatory and legal actions . economic conditions , such as recessionary trends , inflation , interest and monetary exchange rates , government fiscal policies , government policies surrounding the containment of covid-19 and changes in the prices of raw materials , can have a significant effect on operations . these factors and other events could cause actual results to differ from management 's estimates . revenue recognition and allowance for doubtful accounts we recognize revenue from rental operations and related services in the period in which the services are provided . direct sale revenue is recognized in the period in which the services are performed or when the product is shipped . our judgment and estimates are used in determining the collectability of accounts receivable and evaluating the adequacy of the allowance for doubtful accounts as well as our sales credits reserve . we consider specific accounts receivable and historical bad debt experience , customer credit worthiness , current economic trends and the age of outstanding balances as part of our evaluation in assessing the allowance for doubtful accounts . we consider our historical credit experience in assessing the sales credits reserve . changes in our estimates are reflected in the period they become known . if the financial condition of our customers were to deteriorate , resulting in an impairment of their ability to make payments , additional allowances may be required . material changes in our estimates may result in significant differences in the amount and timing of bad debt expense recognition for any given period . our revenues do not include taxes we collect from our customers and remit to governmental authorities . costs to obtain a contract we defer commission expenses paid to employee-partners when the commissions are deemed to be incremental for obtaining the route servicing customer contract . the deferred commissions are amortized on a straight-line basis over the expected period of benefit , which is generally the estimated life of the customer relationship . we review the deferred commission 20 balances for impairment on an ongoing basis . deferred commissions are classified as current or noncurrent based on the timing of when we expect to recognize the expense . story_separator_special_tag the covid-19 pandemic has also resulted in material adverse economic conditions that are impacting , and may continue to impact , our business and the businesses of our suppliers and customers . unemployment levels have increased significantly , and the u.s. economy has entered an economic recession . some analysts have predicted that the current economic recession may persist for a significant period of time and become severe . although the extent and duration of the impact of the covid-19 pandemic on our business and operations and the business and operations of our customers and suppliers remain uncertain , the continued spread of covid-19 , the imposition of related public health measures and travel , health-related , business and other restrictions and the resulting materially adverse economic conditions may materially adversely impact our business , financial condition , results of operations and cash flows . 24 please see “ item 1a . risk factors ” in this annual report on form 10- k for an additional discussion of risks and potential risks of the covid-19 pandemic on our business , financial condition and results of operations . results of operations the following table presents certain selected financial data , including the percentage of revenues represented by each item , for fiscal years 2020 , 2019 and 2018. replace_table_token_2_th ( 1 ) exclusive of depreciation on our property , plant and equipment and amortization of our intangible assets . revenues and income ( loss ) from operations by reporting segment for fiscal 2020 , 2019 , and 2018 are presented in the following table . refer to note 15 , “ segment reporting ” , of our consolidated financial statements for a discussion of our reporting segments . replace_table_token_3_th 25 general we derive our revenues through the design , manufacture , personalization , rental , cleaning , delivering , and selling of a wide range of uniforms and protective clothing , including shirts , pants , jackets , coveralls , lab coats , smocks and aprons and specialized protective wear , such as flame resistant and high visibility garments . we also rent industrial wiping products , floor mats , facility service products , other non-garment items , and provide restroom and cleaning supplies and first aid cabinet services and other safety supplies , to a variety of manufacturers , retailers and service companies . cost of revenues include the amortization of rental merchandise in service and merchandise costs related to direct sales as well as labor and other production , service and delivery costs , and distribution costs associated with operating our core laundry operations , specialty garments facilities , and first aid locations . selling and administrative costs include costs related to our sales and marketing functions as well as general and administrative costs associated with our corporate offices , non-operating environmental sites and operating locations including information systems , engineering , materials management , manufacturing planning , finance , budgeting , and human resources . we have a substantial number of plants and conduct a significant portion of our business in energy producing regions in the u.s. and canada . in general , we are relatively more dependent on business in these regions than are many of our competitors . recent volatility in energy prices have had and may continue to have a significant impact on wearer levels at existing customers in our north american energy-dependent markets . our operating results are also directly impacted by the costs of the gasoline used to fuel our vehicles and the natural gas used to operate our plants . while it is difficult to quantify the positive and negative impacts on our future financial results from changes in energy prices , in general , we believe that significant decreases in oil and natural gas prices would have an overall negative impact on our results due to cutbacks by our customers both in , and dependent upon , the oil and natural gas industries , which would outweigh the benefits in our operating costs from lower energy costs . our business is subject to various state and federal regulations , including employment laws and regulations , minimum wage requirements , overtime requirements , working condition requirements , citizenship requirements , healthcare insurance mandates and other laws and regulations that impact our labor costs . labor costs increased in fiscal 2020 as a result of increases in state and local minimum wage levels as well as the overall impact of wage pressure as the result of a low unemployment environment . on december 22 , 2017 , the tax cuts and jobs act ( the “ tcja ” ) was enacted into law , which , among other provisions , reduced the u.s. federal corporate income tax rate effective january 1 , 2018 from a top marginal rate of 35 % to a new 21 % corporate rate and imposed a one-time transition tax on the deemed repatriation of certain deferred foreign income . we have made reasonable estimates of the effects of the tcja and these estimates could change in future periods as we continue to analyze the effects of the tcja ( see note 4 , “ income taxes ” to our consolidated financial statements included in this annual report on form 10-k ) . as a result of the tcja , u.s. corporations are subject to lower income tax rates , and we were required to remeasure our u.s. net deferred tax liabilities at a lower rate , resulting in a net benefit of $ 22.6 million recorded in the provision for income taxes as of august 25 , 2018. partially offsetting this benefit , we recorded a charge of $ 2.5 million for transition taxes related to the deemed repatriation of foreign earnings as of august 29 , 2019. a portion of our sales is derived from international markets , including canada . revenues denominated in currencies other than the u.s. dollar represented approximately 6.9 % , 7.0 %
| liquidity and capital resources general cash , cash equivalents and short-term investments totaled $ 474.8 million as of august 29 , 2020 , an increase of $ 89.5 million from $ 385.3 million as of august 31 , 2019. we generated $ 286.7 million and $ 282.1 million in cash from operating activities in the fiscal years ended august 29 , 2020 and august 31 , 2019 , respectively . pursuant to a share repurchase program approved by the board of directors on january 2 , 2019 , we repurchased 0.1 million shares of our common stock for an aggregate of approximately $ 21.7 million during fiscal 2020 and 0.2 million shares of our common stock for an aggregate $ 30.5 million during fiscal 2019. on march 27 , 2018 , we repurchased 1.105 million shares of class b common stock and 0.073 million shares of common stock for a combined $ 146.0 million in a private transaction with the croatti family at a per share price of $ 124.00 . 31 we believe , although there can be no assurance , t hat our current cash , cash equivalents and short-term investments balances , our cash generated from future operations and amounts available under our credit agreement ( defined below ) will be sufficient to meet our current anticipated working capital and capital expenditure requirements for at least the next 12 months and will help us manage the impacts of the covid-19 pandemic on our business and address related liquidity needs . cash flows provided by operating activities have historically been the primary source of our 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 general cash , cash equivalents and short-term investments totaled $ 474.8 million as of august 29 , 2020 , an increase of $ 89.5 million from $ 385.3 million as of august 31 , 2019. we generated $ 286.7 million and $ 282.1 million in cash from operating activities in the fiscal years ended august 29 , 2020 and august 31 , 2019 , respectively . pursuant to a share repurchase program approved by the board of directors on january 2 , 2019 , we repurchased 0.1 million shares of our common stock for an aggregate of approximately $ 21.7 million during fiscal 2020 and 0.2 million shares of our common stock for an aggregate $ 30.5 million during fiscal 2019. on march 27 , 2018 , we repurchased 1.105 million shares of class b common stock and 0.073 million shares of common stock for a combined $ 146.0 million in a private transaction with the croatti family at a per share price of $ 124.00 . 31 we believe , although there can be no assurance , t hat our current cash , cash equivalents and short-term investments balances , our cash generated from future operations and amounts available under our credit agreement ( defined below ) will be sufficient to meet our current anticipated working capital and capital expenditure requirements for at least the next 12 months and will help us manage the impacts of the covid-19 pandemic on our business and address related liquidity needs . cash flows provided by operating activities have historically been the primary source of our liquidity .
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Suspicious Activity Report : these intercompany revenues are recorded at a transfer price which is typically in excess of the actual manufacturing cost . products are carried in inventory and subsequently placed in service and amortized at this transfer price . on a consolidated basis , intercompany mfg revenues and mfg income are eliminated and the carrying value of inventories and rental merchandise in service is reduced to the manufacturing cost . income before income taxes from mfg , net of the intercompany mfg elimination , offsets the merchandise amortization costs incurred by the u.s. and canadian rental and cleaning reporting segment as the merchandise costs of this reporting segment are amortized and recognized based on inventories purchased from mfg at the transfer price which is above our manufacturing cost . the corporate operating segment consists of costs associated with our distribution center , sales and marketing , information systems , engineering , materials management , manufacturing planning , finance , budgeting , human resources , other general 19 and administrative costs and interest expense . the revenues generated from the corporate operating segment represent certain direct sales made directly from our distribution center . the products sold by this operating segment are the same products rented and sold by the u.s. and canadian rental and cleaning reporting segment . in the segment disclosures in note 15 , “ segment reporting ” , of our consolidated financial statements , no assets or capital expenditures are presented for the corporate operating segment as no assets are allocated to this operating segment in the information reviewed by our chief executive officer . however , depreciation and amortization expense related to certain assets are reflected in income from operations and income before income taxes for the corporate operating segment . the assets that give rise to this depreciation and amortization are included in the total assets of the u.s. and canadian rental and cleaning reporting segment as this is how they are tracked and reviewed by us . we refer to our u.s. and canadian rental and cleaning , mfg , and corporate segments combined as our “ core laundry operations ” . the specialty garments operating segment purchases , rents , cleans , delivers and sells , specialty garments and non-garment items primarily for nuclear and cleanroom applications and provides cleanroom cleaning services at limited customer locations . the first aid operating segment sells first aid cabinet services and other safety supplies as well as maintains wholesale distribution and pill packaging operations . approximately 89 % of our revenues in fiscal 2020 were derived from u.s. and canadian rental and cleaning and corporate . a key driver of this business is the number of workers employed by our customers . our revenues are directly impacted by fluctuations in these employment levels . revenues from specialty garments , which accounted for approximately 7 % of our 2020 revenues , increase during outages and refueling by nuclear power plants , as garment usage increases at these times . first aid represented approximately 4 % of our total revenue in fiscal 2020. critical accounting policies and estimates we believe the following critical accounting policies reflect our more significant judgments and estimates used in the preparation of our consolidated financial statements . use of estimates we prepare our financial statements in conformity with u.s. gaap , which requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes . we utilize key estimates in preparing the financial statements , including casualty and environmental estimates , recoverability of goodwill , intangibles , income taxes and long-lived assets . these estimates are based on historical information , current trends , and information available from other sources . our results are affected by economic , political , legislative , regulatory and legal actions . economic conditions , such as recessionary trends , inflation , interest and monetary exchange rates , government fiscal policies , government policies surrounding the containment of covid-19 and changes in the prices of raw materials , can have a significant effect on operations . these factors and other events could cause actual results to differ from management 's estimates . revenue recognition and allowance for doubtful accounts we recognize revenue from rental operations and related services in the period in which the services are provided . direct sale revenue is recognized in the period in which the services are performed or when the product is shipped . our judgment and estimates are used in determining the collectability of accounts receivable and evaluating the adequacy of the allowance for doubtful accounts as well as our sales credits reserve . we consider specific accounts receivable and historical bad debt experience , customer credit worthiness , current economic trends and the age of outstanding balances as part of our evaluation in assessing the allowance for doubtful accounts . we consider our historical credit experience in assessing the sales credits reserve . changes in our estimates are reflected in the period they become known . if the financial condition of our customers were to deteriorate , resulting in an impairment of their ability to make payments , additional allowances may be required . material changes in our estimates may result in significant differences in the amount and timing of bad debt expense recognition for any given period . our revenues do not include taxes we collect from our customers and remit to governmental authorities . costs to obtain a contract we defer commission expenses paid to employee-partners when the commissions are deemed to be incremental for obtaining the route servicing customer contract . the deferred commissions are amortized on a straight-line basis over the expected period of benefit , which is generally the estimated life of the customer relationship . we review the deferred commission 20 balances for impairment on an ongoing basis . deferred commissions are classified as current or noncurrent based on the timing of when we expect to recognize the expense . story_separator_special_tag the covid-19 pandemic has also resulted in material adverse economic conditions that are impacting , and may continue to impact , our business and the businesses of our suppliers and customers . unemployment levels have increased significantly , and the u.s. economy has entered an economic recession . some analysts have predicted that the current economic recession may persist for a significant period of time and become severe . although the extent and duration of the impact of the covid-19 pandemic on our business and operations and the business and operations of our customers and suppliers remain uncertain , the continued spread of covid-19 , the imposition of related public health measures and travel , health-related , business and other restrictions and the resulting materially adverse economic conditions may materially adversely impact our business , financial condition , results of operations and cash flows . 24 please see “ item 1a . risk factors ” in this annual report on form 10- k for an additional discussion of risks and potential risks of the covid-19 pandemic on our business , financial condition and results of operations . results of operations the following table presents certain selected financial data , including the percentage of revenues represented by each item , for fiscal years 2020 , 2019 and 2018. replace_table_token_2_th ( 1 ) exclusive of depreciation on our property , plant and equipment and amortization of our intangible assets . revenues and income ( loss ) from operations by reporting segment for fiscal 2020 , 2019 , and 2018 are presented in the following table . refer to note 15 , “ segment reporting ” , of our consolidated financial statements for a discussion of our reporting segments . replace_table_token_3_th 25 general we derive our revenues through the design , manufacture , personalization , rental , cleaning , delivering , and selling of a wide range of uniforms and protective clothing , including shirts , pants , jackets , coveralls , lab coats , smocks and aprons and specialized protective wear , such as flame resistant and high visibility garments . we also rent industrial wiping products , floor mats , facility service products , other non-garment items , and provide restroom and cleaning supplies and first aid cabinet services and other safety supplies , to a variety of manufacturers , retailers and service companies . cost of revenues include the amortization of rental merchandise in service and merchandise costs related to direct sales as well as labor and other production , service and delivery costs , and distribution costs associated with operating our core laundry operations , specialty garments facilities , and first aid locations . selling and administrative costs include costs related to our sales and marketing functions as well as general and administrative costs associated with our corporate offices , non-operating environmental sites and operating locations including information systems , engineering , materials management , manufacturing planning , finance , budgeting , and human resources . we have a substantial number of plants and conduct a significant portion of our business in energy producing regions in the u.s. and canada . in general , we are relatively more dependent on business in these regions than are many of our competitors . recent volatility in energy prices have had and may continue to have a significant impact on wearer levels at existing customers in our north american energy-dependent markets . our operating results are also directly impacted by the costs of the gasoline used to fuel our vehicles and the natural gas used to operate our plants . while it is difficult to quantify the positive and negative impacts on our future financial results from changes in energy prices , in general , we believe that significant decreases in oil and natural gas prices would have an overall negative impact on our results due to cutbacks by our customers both in , and dependent upon , the oil and natural gas industries , which would outweigh the benefits in our operating costs from lower energy costs . our business is subject to various state and federal regulations , including employment laws and regulations , minimum wage requirements , overtime requirements , working condition requirements , citizenship requirements , healthcare insurance mandates and other laws and regulations that impact our labor costs . labor costs increased in fiscal 2020 as a result of increases in state and local minimum wage levels as well as the overall impact of wage pressure as the result of a low unemployment environment . on december 22 , 2017 , the tax cuts and jobs act ( the “ tcja ” ) was enacted into law , which , among other provisions , reduced the u.s. federal corporate income tax rate effective january 1 , 2018 from a top marginal rate of 35 % to a new 21 % corporate rate and imposed a one-time transition tax on the deemed repatriation of certain deferred foreign income . we have made reasonable estimates of the effects of the tcja and these estimates could change in future periods as we continue to analyze the effects of the tcja ( see note 4 , “ income taxes ” to our consolidated financial statements included in this annual report on form 10-k ) . as a result of the tcja , u.s. corporations are subject to lower income tax rates , and we were required to remeasure our u.s. net deferred tax liabilities at a lower rate , resulting in a net benefit of $ 22.6 million recorded in the provision for income taxes as of august 25 , 2018. partially offsetting this benefit , we recorded a charge of $ 2.5 million for transition taxes related to the deemed repatriation of foreign earnings as of august 29 , 2019. a portion of our sales is derived from international markets , including canada . revenues denominated in currencies other than the u.s. dollar represented approximately 6.9 % , 7.0 %
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2,688 | other government agencies , that impact money supply and market interest rates ; the effects of changes in u.s. federal , state or local tax laws ; the effects of negative publicity on the corporation 's reputation ; the effects of adverse outcomes in litigation and governmental or administrative proceedings ; the potential to incur losses in connection with repurchase and indemnification payments related to sold loans ; the corporation 's ability to achieve its growth plans ; completed and potential acquisitions may affect costs and the corporation may not be able to successfully integrate the acquired business or realize the anticipated benefits from such acquisitions ; the effects of competition on deposit rates and growth , loan rates and growth and net interest margin ; 33 the corporation 's ability to manage the level of non-interest expenses , including salaries and employee benefits expenses , operating risk losses and goodwill impairment ; the effects of changes in accounting policies , standards , and interpretations on the corporation 's reporting of its financial condition and results of operations ; the impact of operational risks , including the risk of human error , inadequate or failed internal processes and systems , computer and telecommunications systems failures , faulty or incomplete data and an inadequate risk management framework ; the impact of failures of third parties upon which the corporation relies to perform in accordance with contractual arrangements ; the failure or circumvention of the corporation 's system of internal controls ; the loss of , or failure to safeguard , confidential or proprietary information ; the corporation 's failure to identify and to address cyber-security risks , including data breaches and cyber-attacks ; the corporation 's ability to keep pace with technological changes ; the corporation 's ability to attract and retain talented personnel ; capital and liquidity strategies , including the corporation 's ability to comply with applicable capital and liquidity requirements , and the corporation 's ability to generate capital internally or raise capital on favorable terms ; the corporation 's reliance on its subsidiaries for substantially all of its revenues and its ability to pay dividends or other distributions ; and the effects of any downgrade in the corporation 's or fulton bank 's credit ratings on their borrowing costs or access to capital markets . overview the corporation is a financial holding company , which , through its wholly owned banking subsidiary , provides a full range of retail and commercial financial services in pennsylvania , delaware , maryland , new jersey and virginia . during 2018 , the corporation consolidated two of its wholly owned banking subsidiaries into its lead bank , fulton bank , and during 2019 , the remaining three wholly owned banking subsidiaries were consolidated into fulton bank . the corporation generates the majority of its revenue through net interest income , or the difference between interest earned on loans and investments and interest paid on deposits and borrowings . growth in net interest income is dependent upon balance sheet growth and maintaining or increasing the net interest margin , which is net interest income ( fully taxable-equivalent , or `` fte `` ) as a percentage of average interest-earning assets . the corporation also generates revenue through fees earned on the various services and products offered to its customers and through gains on sales of assets , such as loans , investments and properties . offsetting these revenue sources are provisions for credit losses on loans and leases and off-balance sheet credit risks , non-interest expenses and income taxes . the following table presents a summary of the corporation 's earnings and selected performance ratios : replace_table_token_5_th ( 1 ) ratio represents a financial measure derived by methods other than u.s. generally accepted accounting principles ( `` gaap `` ) . see reconciliation of this non-gaap financial measure to the most directly comparable gaap measure under the heading , `` supplemental reporting of non-gaap based financial measures , `` in item 6. selected financial data . ( 2 ) presented on an fte basis , using a 21 % federal tax rate and statutory interest expense disallowances . see also the `` net interest income `` section of management 's discussion . 34 following is a summary of the financial highlights for the year ended december 31 , 2019 : net income per share growth - diluted net income per share increased $ 0.17 , or 14.4 % , to $ 1.35 in 2019 compared to $ 1.18 in 2018 . the growth in net income per share was due to a $ 17.9 million , or 8.6 % , increase in net income and the impact of an 8.8 million , or 5.0 % , decrease in weighted average diluted shares outstanding in comparison to 2018 . the increase in net income was driven by a $ 17.9 million , or 2.8 % , increase in net interest income , a $ 14.1 million decrease in the provision for credit losses , a $ 15.9 million , or 8.1 % , increase in non-interest income , and a $ 4.7 million increase in investment securities gains , partially offset by a $ 21.6 million , or 4.0 % , increase in non-interest expense and a $ 13.1 million increase in income taxes . net interest income growth - the $ 17.9 million increase in net interest income resulted from growth in interest-earning assets , partially offset by the impact of a lower net interest margin . ◦ net interest margin - for the year ended december 31 , 2019 , the net interest margin decreased 4 basis points , or 1.2 % , in comparison to 2018 , driven by an 18 basis point increase in yields on interest-earning assets , being more than offset by a 22 basis point increase in the cost of funds . story_separator_special_tag ( 3 ) average balances include amortized historical cost for available for sale securities ; the related unrealized holding gains ( losses ) are included in other assets . 39 the following table summarizes the changes in fte interest income and interest expense resulting from changes in average balances ( volumes ) and changes in rates : replace_table_token_7_th note : changes which are partially attributable to both volume and rate are allocated to the volume and rate components presented above based on the percentage of the direct changes that are attributable to each component . comparison of 2019 to 2018 the federal open market committee ( `` fomc `` ) increased the target federal funds rate ( `` fed funds rate `` ) by 25 basis points in each of march , june , september and december of 2018. during 2019 , the fomc decreased the fed funds rate by 25 basis points in each of august , september and october . these changes in the fed funds rate resulted in corresponding increases or decreases to the index rates for the corporation 's variable and adjustable rate loans , primarily the prime rate and the london interbank offered rate ( `` libor `` ) as well as for certain interest-bearing liabilities . fte net interest income increased $ 18.8 million , or 2.9 % , to $ 661.4 million in 2019 . net interest margin decreased 4 basis points to 3.36 % in 2019 from 3.40 % in 2018 . as summarized above , fte interest income increased $ 35.4 million as the result of an 18 basis point increase in the yield on interest-earning assets , and increased $ 32.3 million as the result of a $ 796.4 million , or 4.2 % , increase in average interest-earning assets , primarily loans and leases . the average yield on the loan and lease portfolio increased 17 basis points , to 4.55 % , largely due to the aforementioned increases in the fed funds rate in 2018 and corresponding increases to loan index rates . all variable and certain adjustable rate loans repriced to higher rates as a result of these interest rate increases , and yields on new loan originations exceeded the average yield on the loan portfolio . adjustable rate loans reprice on dates specified in the loan agreements , which may be later than the date the fed funds rate and related loan index rates increase or decrease . therefore , the benefit of increases or the reverse effect of decreases in index rates on adjustable rate loans may not be fully realized until future periods . interest expense increased $ 48.9 million , with a 28 basis point increase in the rate on average interest-bearing liabilities contributing $ 39.7 million to this increase . the rates on average interest-bearing time , savings accounts and demand deposits increased 45 , 25 and 20 basis points , respectively . these rate increases contributed $ 12.9 million , $ 12.5 million and $ 8.6 million , respectively , to the increase in interest expense . in addition , the 63 basis point increase in the rates on short-term borrowings contributed $ 5.3 million to the increase in interest expense . assuming no further changes in the fed funds rate , as a result of the interest rate decreases in the second half of 2019 , yields on the loan portfolio are likely to decrease in the future . deposit cost changes typically lag the changes in the loan yields as most deposit rates are not directly tied to an index . 40 average loans and leases and average fte yields , by type , are summarized in the following table : replace_table_token_8_th n/a - not applicable average loans and leases increased $ 615.1 million , or 3.9 % , which contributed $ 27.5 million to the increase in fte interest income . in addition , the average yield on the loan and lease portfolio increased 17 basis points , contributing $ 27.7 million to the increase in fte interest income . as mentioned above , the increase in average yields on loans and leases was driven by the repricing of existing variable and adjustable rate loans as a result of increases in the prime rate and libor during 2018 that were only partially offset by decreases in those same rates that occurred in the second half of 2019. average investment securities increased $ 116.0 million , or 4.4 % , in comparison to 2018 , which contributed $ 9.2 million to the increase in fte interest income . the average yield on investment securities increased 21 basis points , contributing $ 5.7 million to the increase in fte interest income . other interest-earning assets increased $ 62.4 million , or 16.3 % , primarily the result of an increase in cash pledged with counterparties for commercial loan interest rate swap contracts . the yield on other interest-earning assets increased 46 basis points in comparison to 2018 , as a result of the fed funds rate increases during 2018 that were only partially offset by the decreases during 2019 , resulting in a $ 1.9 million increase in fte interest income . average deposits and interest rates , by type , are summarized in the following table : replace_table_token_9_th average interest-bearing deposits contributed $ 44.1 million to the increase in interest expense , increasing $ 971.8 million , or 8.4 % , in comparison to 2018 . the average cost of interest-bearing deposits increased 29 basis points to 1.05 % in 2019 from 0.76 % in 2018 , due to increases in the rates on all types of interest-bearing deposits as a result of the fed funds rate increases and related market competition that occurred in 2018 , and was only partially impacted by decreases to the fed funds rate that occurred in 2019. average brokered deposits increased $ 123.6 million , to $ 245.5 million , as a result
| cash and cash equivalents the $ 72.1 million , or 16.2 % , increase in cash and cash equivalents mainly resulted from additional collateral required to be posted with counterparties for derivative contracts . frb and fhlb stock frb and fhlb stock increased $ 18.1 million , or 22.9 % , due to a $ 19.6 million increase in frb stock partially offset by a $ 1.5 million decrease in fhlb stock . additional frb stock was required to be purchased as a result of the charter consolidation . 49 investment securities the following table presents the carrying amount of investment securities as of december 31 : replace_table_token_19_th total available for sale securities increased $ 417.2 million , or 20.1 % , to $ 2.5 billion at december 31 , 2019 . cash flows from maturities , sales and repayments of residential mortgage-backed securities , u.s. government sponsored agency securities and securities with shorter expected durations were reinvested in other investment categories in order to diversify the portfolio into securities with longer expected durations to reduce the corporation 's asset-sensitive interest rate risk profile . total held to maturity securities decreased $ 236.8 million , or 39.0 % , primarily as a result of the transfer of state and municipal securities from the held to maturity classification to the available for sale classification as permitted through the early adoption of asu 2019-04 , as disclosed in `` note 1 - basis of presentation '' and `` note 3 -investment securities '' in the notes to consolidated 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 the $ 72.1 million , or 16.2 % , increase in cash and cash equivalents mainly resulted from additional collateral required to be posted with counterparties for derivative contracts . frb and fhlb stock frb and fhlb stock increased $ 18.1 million , or 22.9 % , due to a $ 19.6 million increase in frb stock partially offset by a $ 1.5 million decrease in fhlb stock . additional frb stock was required to be purchased as a result of the charter consolidation . 49 investment securities the following table presents the carrying amount of investment securities as of december 31 : replace_table_token_19_th total available for sale securities increased $ 417.2 million , or 20.1 % , to $ 2.5 billion at december 31 , 2019 . cash flows from maturities , sales and repayments of residential mortgage-backed securities , u.s. government sponsored agency securities and securities with shorter expected durations were reinvested in other investment categories in order to diversify the portfolio into securities with longer expected durations to reduce the corporation 's asset-sensitive interest rate risk profile . total held to maturity securities decreased $ 236.8 million , or 39.0 % , primarily as a result of the transfer of state and municipal securities from the held to maturity classification to the available for sale classification as permitted through the early adoption of asu 2019-04 , as disclosed in `` note 1 - basis of presentation '' and `` note 3 -investment securities '' in the notes to consolidated financial statements .
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Suspicious Activity Report : other government agencies , that impact money supply and market interest rates ; the effects of changes in u.s. federal , state or local tax laws ; the effects of negative publicity on the corporation 's reputation ; the effects of adverse outcomes in litigation and governmental or administrative proceedings ; the potential to incur losses in connection with repurchase and indemnification payments related to sold loans ; the corporation 's ability to achieve its growth plans ; completed and potential acquisitions may affect costs and the corporation may not be able to successfully integrate the acquired business or realize the anticipated benefits from such acquisitions ; the effects of competition on deposit rates and growth , loan rates and growth and net interest margin ; 33 the corporation 's ability to manage the level of non-interest expenses , including salaries and employee benefits expenses , operating risk losses and goodwill impairment ; the effects of changes in accounting policies , standards , and interpretations on the corporation 's reporting of its financial condition and results of operations ; the impact of operational risks , including the risk of human error , inadequate or failed internal processes and systems , computer and telecommunications systems failures , faulty or incomplete data and an inadequate risk management framework ; the impact of failures of third parties upon which the corporation relies to perform in accordance with contractual arrangements ; the failure or circumvention of the corporation 's system of internal controls ; the loss of , or failure to safeguard , confidential or proprietary information ; the corporation 's failure to identify and to address cyber-security risks , including data breaches and cyber-attacks ; the corporation 's ability to keep pace with technological changes ; the corporation 's ability to attract and retain talented personnel ; capital and liquidity strategies , including the corporation 's ability to comply with applicable capital and liquidity requirements , and the corporation 's ability to generate capital internally or raise capital on favorable terms ; the corporation 's reliance on its subsidiaries for substantially all of its revenues and its ability to pay dividends or other distributions ; and the effects of any downgrade in the corporation 's or fulton bank 's credit ratings on their borrowing costs or access to capital markets . overview the corporation is a financial holding company , which , through its wholly owned banking subsidiary , provides a full range of retail and commercial financial services in pennsylvania , delaware , maryland , new jersey and virginia . during 2018 , the corporation consolidated two of its wholly owned banking subsidiaries into its lead bank , fulton bank , and during 2019 , the remaining three wholly owned banking subsidiaries were consolidated into fulton bank . the corporation generates the majority of its revenue through net interest income , or the difference between interest earned on loans and investments and interest paid on deposits and borrowings . growth in net interest income is dependent upon balance sheet growth and maintaining or increasing the net interest margin , which is net interest income ( fully taxable-equivalent , or `` fte `` ) as a percentage of average interest-earning assets . the corporation also generates revenue through fees earned on the various services and products offered to its customers and through gains on sales of assets , such as loans , investments and properties . offsetting these revenue sources are provisions for credit losses on loans and leases and off-balance sheet credit risks , non-interest expenses and income taxes . the following table presents a summary of the corporation 's earnings and selected performance ratios : replace_table_token_5_th ( 1 ) ratio represents a financial measure derived by methods other than u.s. generally accepted accounting principles ( `` gaap `` ) . see reconciliation of this non-gaap financial measure to the most directly comparable gaap measure under the heading , `` supplemental reporting of non-gaap based financial measures , `` in item 6. selected financial data . ( 2 ) presented on an fte basis , using a 21 % federal tax rate and statutory interest expense disallowances . see also the `` net interest income `` section of management 's discussion . 34 following is a summary of the financial highlights for the year ended december 31 , 2019 : net income per share growth - diluted net income per share increased $ 0.17 , or 14.4 % , to $ 1.35 in 2019 compared to $ 1.18 in 2018 . the growth in net income per share was due to a $ 17.9 million , or 8.6 % , increase in net income and the impact of an 8.8 million , or 5.0 % , decrease in weighted average diluted shares outstanding in comparison to 2018 . the increase in net income was driven by a $ 17.9 million , or 2.8 % , increase in net interest income , a $ 14.1 million decrease in the provision for credit losses , a $ 15.9 million , or 8.1 % , increase in non-interest income , and a $ 4.7 million increase in investment securities gains , partially offset by a $ 21.6 million , or 4.0 % , increase in non-interest expense and a $ 13.1 million increase in income taxes . net interest income growth - the $ 17.9 million increase in net interest income resulted from growth in interest-earning assets , partially offset by the impact of a lower net interest margin . ◦ net interest margin - for the year ended december 31 , 2019 , the net interest margin decreased 4 basis points , or 1.2 % , in comparison to 2018 , driven by an 18 basis point increase in yields on interest-earning assets , being more than offset by a 22 basis point increase in the cost of funds . story_separator_special_tag ( 3 ) average balances include amortized historical cost for available for sale securities ; the related unrealized holding gains ( losses ) are included in other assets . 39 the following table summarizes the changes in fte interest income and interest expense resulting from changes in average balances ( volumes ) and changes in rates : replace_table_token_7_th note : changes which are partially attributable to both volume and rate are allocated to the volume and rate components presented above based on the percentage of the direct changes that are attributable to each component . comparison of 2019 to 2018 the federal open market committee ( `` fomc `` ) increased the target federal funds rate ( `` fed funds rate `` ) by 25 basis points in each of march , june , september and december of 2018. during 2019 , the fomc decreased the fed funds rate by 25 basis points in each of august , september and october . these changes in the fed funds rate resulted in corresponding increases or decreases to the index rates for the corporation 's variable and adjustable rate loans , primarily the prime rate and the london interbank offered rate ( `` libor `` ) as well as for certain interest-bearing liabilities . fte net interest income increased $ 18.8 million , or 2.9 % , to $ 661.4 million in 2019 . net interest margin decreased 4 basis points to 3.36 % in 2019 from 3.40 % in 2018 . as summarized above , fte interest income increased $ 35.4 million as the result of an 18 basis point increase in the yield on interest-earning assets , and increased $ 32.3 million as the result of a $ 796.4 million , or 4.2 % , increase in average interest-earning assets , primarily loans and leases . the average yield on the loan and lease portfolio increased 17 basis points , to 4.55 % , largely due to the aforementioned increases in the fed funds rate in 2018 and corresponding increases to loan index rates . all variable and certain adjustable rate loans repriced to higher rates as a result of these interest rate increases , and yields on new loan originations exceeded the average yield on the loan portfolio . adjustable rate loans reprice on dates specified in the loan agreements , which may be later than the date the fed funds rate and related loan index rates increase or decrease . therefore , the benefit of increases or the reverse effect of decreases in index rates on adjustable rate loans may not be fully realized until future periods . interest expense increased $ 48.9 million , with a 28 basis point increase in the rate on average interest-bearing liabilities contributing $ 39.7 million to this increase . the rates on average interest-bearing time , savings accounts and demand deposits increased 45 , 25 and 20 basis points , respectively . these rate increases contributed $ 12.9 million , $ 12.5 million and $ 8.6 million , respectively , to the increase in interest expense . in addition , the 63 basis point increase in the rates on short-term borrowings contributed $ 5.3 million to the increase in interest expense . assuming no further changes in the fed funds rate , as a result of the interest rate decreases in the second half of 2019 , yields on the loan portfolio are likely to decrease in the future . deposit cost changes typically lag the changes in the loan yields as most deposit rates are not directly tied to an index . 40 average loans and leases and average fte yields , by type , are summarized in the following table : replace_table_token_8_th n/a - not applicable average loans and leases increased $ 615.1 million , or 3.9 % , which contributed $ 27.5 million to the increase in fte interest income . in addition , the average yield on the loan and lease portfolio increased 17 basis points , contributing $ 27.7 million to the increase in fte interest income . as mentioned above , the increase in average yields on loans and leases was driven by the repricing of existing variable and adjustable rate loans as a result of increases in the prime rate and libor during 2018 that were only partially offset by decreases in those same rates that occurred in the second half of 2019. average investment securities increased $ 116.0 million , or 4.4 % , in comparison to 2018 , which contributed $ 9.2 million to the increase in fte interest income . the average yield on investment securities increased 21 basis points , contributing $ 5.7 million to the increase in fte interest income . other interest-earning assets increased $ 62.4 million , or 16.3 % , primarily the result of an increase in cash pledged with counterparties for commercial loan interest rate swap contracts . the yield on other interest-earning assets increased 46 basis points in comparison to 2018 , as a result of the fed funds rate increases during 2018 that were only partially offset by the decreases during 2019 , resulting in a $ 1.9 million increase in fte interest income . average deposits and interest rates , by type , are summarized in the following table : replace_table_token_9_th average interest-bearing deposits contributed $ 44.1 million to the increase in interest expense , increasing $ 971.8 million , or 8.4 % , in comparison to 2018 . the average cost of interest-bearing deposits increased 29 basis points to 1.05 % in 2019 from 0.76 % in 2018 , due to increases in the rates on all types of interest-bearing deposits as a result of the fed funds rate increases and related market competition that occurred in 2018 , and was only partially impacted by decreases to the fed funds rate that occurred in 2019. average brokered deposits increased $ 123.6 million , to $ 245.5 million , as a result
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2,689 | in addition to historical information , this discussion and analysis contains forward-looking statements within the meaning of section 27a of the securities act , and section 21e of the exchange act . operating results are not necessarily indicative of results that may occur for the full fiscal year or any other future period . the term `` private madrigal `` refers to madrigal pharmaceuticals , inc. prior to the consummation of the merger described herein . the term `` synta `` refers to synta pharmaceuticals corp. prior to the consummation of the merger described herein . unless otherwise indicated , references to the terms `` madrigal , `` the `` company , `` `` we , `` `` our `` and `` us `` refer to private madrigal prior to the consummation of the merger described herein and madrigal pharmaceuticals , inc. ( formerly known as synta pharmaceuticals corp. ) upon the consummation of the merger described herein . overview we are a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapeutic candidates for the treatment of cardiovascular , metabolic and liver diseases . our lead product candidate , mgl-3196 , is a proprietary , liver-directed , selective thyroid hormone receptor-ß , or thr-ß , agonist that can potentially be used to treat a number of disease states with high unmet medical need . we are developing mgl-3196 for non-alcoholic steatohepatitis , or nash and we have initiated a phase 2 clinical trial in this indication . we are also developing mgl-3196 for dyslipidemia , particularly genetic dyslipidemias such as familial hypercholesterolemia , or fh , including both homozygous and heterozygous forms of the disease . we have initiated a phase 2 clinical trial in heterozygous fh , or hefh , patients and we are planning to conduct a proof-of-concept clinical trial in homozygous fh , or hofh , patients . mgl-3196 is a once-daily oral pill that has been studied in four completed phase 1 trials in a total of 129 subjects . mgl-3196 appeared to be safe and well-tolerated in these trials , which included a single ascending dose trial , a multiple ascending dose trial , and two drug interaction trials with statins . key developments reverse merger on july 22 , 2016 , synta completed its business combination with private madrigal in accordance with the terms of an agreement and plan of merger and reorganization , dated as of april 13 , 2016 , or the merger agreement . pursuant to the merger agreement , synta formed a wholly-owned subsidiary that merged with and into private madrigal , with private madrigal surviving the merger and becoming a wholly-owned subsidiary of synta , or the merger . in connection with , and prior to the consummation of , the merger , synta effected a 1-for-35 reverse stock split of its common stock , or the reverse stock split , and , following the merger , changed its name to `` madrigal pharmaceuticals , inc. `` all shares and per share amounts have been retrospectively adjusted to give effect to the reverse stock split , except as otherwise disclosed . following the consummation of the merger , our business became the business conducted by private madrigal prior to the consummation of the merger . in october 2016 , madrigal initiated a phase 2 clinical study in nash ( [ nct02912260 ] at www.clinicaltrials.gov ) . the randomized , double-blind , placebo-controlled , multi-center phase 2 study will enroll 117 patients 18 years of age and older with biopsy-confirmed nash . patients are randomized to receive either placebo or mgl-3196 , twice as many receiving mgl-3196 as placebo . efficacy will be confirmed at the end of the trial ( 36 weeks ) by repeat magnetic resonance imagingproton density fat fraction ( mri-pdff ) and conventional liver biopsy to examine histological evidence for the resolution of nash . recent published data show a high correlation of reduction of 47 liver fat measured by mri-pdff to nash scoring on liver biopsy . other secondary endpoints include changes in clinically relevant biomarkers at 12 and 36 weeks , improvement in fibrosis by at least one stage with no worsening of steatohepatitis , and safety and tolerability . the company expects to have top-line mri-pdff data from this study near year-end 2017. in february 2017 , madrigal initiated a phase 2 clinical study in hefh ( [ nct03038022 ] at www.clinicaltrials.gov ) . the 12-week , randomized , double-blind , placebo-controlled , multi-center phase 2 study is expected to enroll 105 patients with hefh in several european countries . patients will be randomized in a 2:1 ratio to receive either mgl-3196 or placebo , in addition to their current drug regimen ( including high dose statins and or ezetimibe ) . the primary endpoint of the study is reduction of ldl cholesterol , with secondary endpoints including reductions in triglycerides , lp ( a ) , and apob , as well as safety . lp ( a ) is a severely atherogenic lipid particle , commonly elevated in familial hypercholesterolemia patients , the levels of which are not adequately reduced by existing lipid lowering therapies . thr-ß agonism is one of the few therapeutic approaches that can substantially lower lp ( a ) . the company expects to have topline data from this study near year-end 2017. basis of presentation research and development expenses research and development expenses primarily consist of costs associated with our research activities , including the preclinical and clinical development of our product candidates . we expense our research and development expenses as incurred . story_separator_special_tag 49 stock-based compensation we recognize stock-based compensation expense based on the grant date fair value of stock options granted to employees , officers and directors . we use the black-scholes option pricing model to determine the grant date fair value as our management believes it is the most appropriate valuation method for its option grants . the black-scholes model requires inputs for risk-free interest rate , dividend yield , volatility and expected lives of the options . certain of the employee stock options granted by us are structured to qualify as incentive stock options , or isos . under current tax regulations , we do not receive a tax deduction for the issuance , exercise or disposition of isos if the employee meets certain holding requirements . if the employee does not meet the holding requirements , a disqualifying disposition occurs , at which time we may receive a tax deduction . we do not record tax benefits related to isos unless and until a disqualifying disposition is reported . in the event of a disqualifying disposition , the entire tax benefit is recorded as a reduction of income tax expense . we have not recognized any income tax benefit for its share-based compensation arrangements due to the fact that we do not believe it is more likely than not it will realize the related deferred tax assets . results of operations comparison years ended december 31 , 2016 and 2015 the following table provides comparative results of operations for the years ended december 31 , 2016 and 2015 ( in thousands ) : replace_table_token_3_th research and development expense our research and development expenses were $ 15.9 million for the year ended december 31 , 2016 compared to $ 2.4 million for the year ended december 31 , 2015. research and development expenses increased in 2016 primarily due to increased expenses for our clinical and preclinical development programs for mgl-3196 . expense related to stock based compensation increased by $ 5.4 million , of which $ 4.8 million related to private madrigal 's change in control bonus plan recognized at the merger . with the exception of the expense related to private madrigal 's change in control bonus plan , we expect our research and development expenses to increase over time as we advance our clinical and preclinical development . general and administrative expense our general and administrative expenses were $ 9.3 million for the year ended december 31 , 2016 compared to $ 0.8 million for the year ended december 31 , 2015. the increase in general and administrative expenses for the year ended december 31 , 2016 was primarily due to approximately $ 2.1 million in costs associated with the merger and the increased operating expenses of maintaining a public company . expense related to stock based compensation increased by $ 2.5 million , of which $ .6 million was related to private madrigal 's change in control bonus plan . with the exception of the merger-related expenses , we believe that our general and administrative expenses may increase over time as we advance our clinical and preclinical development programs for mgl-3196 and continue 50 operating as a public company , both of which will likely result in an increase in our headcount , consulting services , and certain overhead needed to support those efforts . interest expense our interest expense was $ 1.2 million for the year ended december 31 , 2016 compared to $ 3.6 million for the year ended december 31 , 2015. the decrease in interest expense was primarily driven by lower interest expense on our convertible notes outstanding . on april 13 , 2016 , we entered into the restated purchase agreement with certain of our investors whereby such investors committed $ 9.0 million of financing before the consummation of the merger . pursuant to the restated purchase agreement , bay city capital agreed to waive all accrued interest on the convertible notes incurred prior to april 13 , 2016. in addition , the investors , including bay city capital , agreed that no interest would accrue on such convertible notes from the date of the restated purchase agreement through the date we consummated the merger . liquidity and capital resources as of december 31 , 2016 , we had cash , cash equivalents and marketable securities of $ 40.5 million . to date , we have funded our operations primarily through the issuance of convertible debt and the proceeds from the merger . we believe our cash and cash equivalents will be sufficient to fund our operations through at least the first quarter of 2018 , which is more than one year after the date the december 31 , 2016 financial statements were issued . on july 22 , 2016 , we completed the merger with synta which provided $ 42.6 million in cash , cash equivalents and marketable securities . in december 2016 , we sold an aggregate of 381,717 shares of common stock pursuant to the at-the-market issuance sales agreement ( october 2015 sales agreement ) , with cowen and company , llc ( cowen ) for an aggregate of approximately $ 6.1 million in gross proceeds . net proceeds to the company were approximately $ 6.0 million after deducting commissions and other transactions costs . as of march 24 , 2017 , in 2017 the company sold an aggregate of 215,539 shares of common stock pursuant to the october 2015 sales agreement for an aggregate of approximately $ 3.5 million in gross proceeds . net proceeds to the company were approximately $ 3.4 million after deducting commissions and other transactions costs . approximately $ 90.4 million remained reserved under the company 's shelf registration statement and the applicable prospectus supplement for possible future issuance under the october 2015 sales agreement . our primary uses of capital are , and we expect will continue to be , funding research efforts and the development of our product candidates , compensation and
| net cash used in operating activities $ ( 17,607 ) $ ( 3,142 ) net cash provided by investing activities 21,992 net cash provided by financing activities 14,454 3,300 net increase in cash and cash equivalents $ 18,839 $ 158 net cash used in operating activities was $ 17.6 million for the year ended december 31 , 2016 compared to $ 3.1 million for the year ended december 31 , 2015. the use of cash in operating activities for the year ended december 31 , 2016 reflected a net loss of $ 26.4 million from our operations , including costs related to the merger , and changes in our operating assets and liabilities , partially offset by $ 1.2 million of interest expense related to our related party convertible notes and $ 8.7 million of stock-based compensation expense . the use of cash in operating activities for the year ended december 31 , 2015 reflected a net loss of $ 6.8 million from our operations , partially offset by $ 3.6 million of interest expense related to our related party convertible notes .
| 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 $ ( 17,607 ) $ ( 3,142 ) net cash provided by investing activities 21,992 net cash provided by financing activities 14,454 3,300 net increase in cash and cash equivalents $ 18,839 $ 158 net cash used in operating activities was $ 17.6 million for the year ended december 31 , 2016 compared to $ 3.1 million for the year ended december 31 , 2015. the use of cash in operating activities for the year ended december 31 , 2016 reflected a net loss of $ 26.4 million from our operations , including costs related to the merger , and changes in our operating assets and liabilities , partially offset by $ 1.2 million of interest expense related to our related party convertible notes and $ 8.7 million of stock-based compensation expense . the use of cash in operating activities for the year ended december 31 , 2015 reflected a net loss of $ 6.8 million from our operations , partially offset by $ 3.6 million of interest expense related to our related party convertible notes .
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Suspicious Activity Report : in addition to historical information , this discussion and analysis contains forward-looking statements within the meaning of section 27a of the securities act , and section 21e of the exchange act . operating results are not necessarily indicative of results that may occur for the full fiscal year or any other future period . the term `` private madrigal `` refers to madrigal pharmaceuticals , inc. prior to the consummation of the merger described herein . the term `` synta `` refers to synta pharmaceuticals corp. prior to the consummation of the merger described herein . unless otherwise indicated , references to the terms `` madrigal , `` the `` company , `` `` we , `` `` our `` and `` us `` refer to private madrigal prior to the consummation of the merger described herein and madrigal pharmaceuticals , inc. ( formerly known as synta pharmaceuticals corp. ) upon the consummation of the merger described herein . overview we are a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapeutic candidates for the treatment of cardiovascular , metabolic and liver diseases . our lead product candidate , mgl-3196 , is a proprietary , liver-directed , selective thyroid hormone receptor-ß , or thr-ß , agonist that can potentially be used to treat a number of disease states with high unmet medical need . we are developing mgl-3196 for non-alcoholic steatohepatitis , or nash and we have initiated a phase 2 clinical trial in this indication . we are also developing mgl-3196 for dyslipidemia , particularly genetic dyslipidemias such as familial hypercholesterolemia , or fh , including both homozygous and heterozygous forms of the disease . we have initiated a phase 2 clinical trial in heterozygous fh , or hefh , patients and we are planning to conduct a proof-of-concept clinical trial in homozygous fh , or hofh , patients . mgl-3196 is a once-daily oral pill that has been studied in four completed phase 1 trials in a total of 129 subjects . mgl-3196 appeared to be safe and well-tolerated in these trials , which included a single ascending dose trial , a multiple ascending dose trial , and two drug interaction trials with statins . key developments reverse merger on july 22 , 2016 , synta completed its business combination with private madrigal in accordance with the terms of an agreement and plan of merger and reorganization , dated as of april 13 , 2016 , or the merger agreement . pursuant to the merger agreement , synta formed a wholly-owned subsidiary that merged with and into private madrigal , with private madrigal surviving the merger and becoming a wholly-owned subsidiary of synta , or the merger . in connection with , and prior to the consummation of , the merger , synta effected a 1-for-35 reverse stock split of its common stock , or the reverse stock split , and , following the merger , changed its name to `` madrigal pharmaceuticals , inc. `` all shares and per share amounts have been retrospectively adjusted to give effect to the reverse stock split , except as otherwise disclosed . following the consummation of the merger , our business became the business conducted by private madrigal prior to the consummation of the merger . in october 2016 , madrigal initiated a phase 2 clinical study in nash ( [ nct02912260 ] at www.clinicaltrials.gov ) . the randomized , double-blind , placebo-controlled , multi-center phase 2 study will enroll 117 patients 18 years of age and older with biopsy-confirmed nash . patients are randomized to receive either placebo or mgl-3196 , twice as many receiving mgl-3196 as placebo . efficacy will be confirmed at the end of the trial ( 36 weeks ) by repeat magnetic resonance imagingproton density fat fraction ( mri-pdff ) and conventional liver biopsy to examine histological evidence for the resolution of nash . recent published data show a high correlation of reduction of 47 liver fat measured by mri-pdff to nash scoring on liver biopsy . other secondary endpoints include changes in clinically relevant biomarkers at 12 and 36 weeks , improvement in fibrosis by at least one stage with no worsening of steatohepatitis , and safety and tolerability . the company expects to have top-line mri-pdff data from this study near year-end 2017. in february 2017 , madrigal initiated a phase 2 clinical study in hefh ( [ nct03038022 ] at www.clinicaltrials.gov ) . the 12-week , randomized , double-blind , placebo-controlled , multi-center phase 2 study is expected to enroll 105 patients with hefh in several european countries . patients will be randomized in a 2:1 ratio to receive either mgl-3196 or placebo , in addition to their current drug regimen ( including high dose statins and or ezetimibe ) . the primary endpoint of the study is reduction of ldl cholesterol , with secondary endpoints including reductions in triglycerides , lp ( a ) , and apob , as well as safety . lp ( a ) is a severely atherogenic lipid particle , commonly elevated in familial hypercholesterolemia patients , the levels of which are not adequately reduced by existing lipid lowering therapies . thr-ß agonism is one of the few therapeutic approaches that can substantially lower lp ( a ) . the company expects to have topline data from this study near year-end 2017. basis of presentation research and development expenses research and development expenses primarily consist of costs associated with our research activities , including the preclinical and clinical development of our product candidates . we expense our research and development expenses as incurred . story_separator_special_tag 49 stock-based compensation we recognize stock-based compensation expense based on the grant date fair value of stock options granted to employees , officers and directors . we use the black-scholes option pricing model to determine the grant date fair value as our management believes it is the most appropriate valuation method for its option grants . the black-scholes model requires inputs for risk-free interest rate , dividend yield , volatility and expected lives of the options . certain of the employee stock options granted by us are structured to qualify as incentive stock options , or isos . under current tax regulations , we do not receive a tax deduction for the issuance , exercise or disposition of isos if the employee meets certain holding requirements . if the employee does not meet the holding requirements , a disqualifying disposition occurs , at which time we may receive a tax deduction . we do not record tax benefits related to isos unless and until a disqualifying disposition is reported . in the event of a disqualifying disposition , the entire tax benefit is recorded as a reduction of income tax expense . we have not recognized any income tax benefit for its share-based compensation arrangements due to the fact that we do not believe it is more likely than not it will realize the related deferred tax assets . results of operations comparison years ended december 31 , 2016 and 2015 the following table provides comparative results of operations for the years ended december 31 , 2016 and 2015 ( in thousands ) : replace_table_token_3_th research and development expense our research and development expenses were $ 15.9 million for the year ended december 31 , 2016 compared to $ 2.4 million for the year ended december 31 , 2015. research and development expenses increased in 2016 primarily due to increased expenses for our clinical and preclinical development programs for mgl-3196 . expense related to stock based compensation increased by $ 5.4 million , of which $ 4.8 million related to private madrigal 's change in control bonus plan recognized at the merger . with the exception of the expense related to private madrigal 's change in control bonus plan , we expect our research and development expenses to increase over time as we advance our clinical and preclinical development . general and administrative expense our general and administrative expenses were $ 9.3 million for the year ended december 31 , 2016 compared to $ 0.8 million for the year ended december 31 , 2015. the increase in general and administrative expenses for the year ended december 31 , 2016 was primarily due to approximately $ 2.1 million in costs associated with the merger and the increased operating expenses of maintaining a public company . expense related to stock based compensation increased by $ 2.5 million , of which $ .6 million was related to private madrigal 's change in control bonus plan . with the exception of the merger-related expenses , we believe that our general and administrative expenses may increase over time as we advance our clinical and preclinical development programs for mgl-3196 and continue 50 operating as a public company , both of which will likely result in an increase in our headcount , consulting services , and certain overhead needed to support those efforts . interest expense our interest expense was $ 1.2 million for the year ended december 31 , 2016 compared to $ 3.6 million for the year ended december 31 , 2015. the decrease in interest expense was primarily driven by lower interest expense on our convertible notes outstanding . on april 13 , 2016 , we entered into the restated purchase agreement with certain of our investors whereby such investors committed $ 9.0 million of financing before the consummation of the merger . pursuant to the restated purchase agreement , bay city capital agreed to waive all accrued interest on the convertible notes incurred prior to april 13 , 2016. in addition , the investors , including bay city capital , agreed that no interest would accrue on such convertible notes from the date of the restated purchase agreement through the date we consummated the merger . liquidity and capital resources as of december 31 , 2016 , we had cash , cash equivalents and marketable securities of $ 40.5 million . to date , we have funded our operations primarily through the issuance of convertible debt and the proceeds from the merger . we believe our cash and cash equivalents will be sufficient to fund our operations through at least the first quarter of 2018 , which is more than one year after the date the december 31 , 2016 financial statements were issued . on july 22 , 2016 , we completed the merger with synta which provided $ 42.6 million in cash , cash equivalents and marketable securities . in december 2016 , we sold an aggregate of 381,717 shares of common stock pursuant to the at-the-market issuance sales agreement ( october 2015 sales agreement ) , with cowen and company , llc ( cowen ) for an aggregate of approximately $ 6.1 million in gross proceeds . net proceeds to the company were approximately $ 6.0 million after deducting commissions and other transactions costs . as of march 24 , 2017 , in 2017 the company sold an aggregate of 215,539 shares of common stock pursuant to the october 2015 sales agreement for an aggregate of approximately $ 3.5 million in gross proceeds . net proceeds to the company were approximately $ 3.4 million after deducting commissions and other transactions costs . approximately $ 90.4 million remained reserved under the company 's shelf registration statement and the applicable prospectus supplement for possible future issuance under the october 2015 sales agreement . our primary uses of capital are , and we expect will continue to be , funding research efforts and the development of our product candidates , compensation and
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2,690 | estimated unpaid losses on reported claims are developed based on historical experience with similar claims by the company . development on reported claims , estimates of unpaid ultimate losses on claims incurred prior to december 31 , 2014 but not yet reported , and estimates of unpaid loss adjustment expenses are developed based on the company 's historical experience , using actuarial methods to assist in the analysis . the company 's actuaries develop ranges of estimated development on reported and unreported claims as well as loss adjustment expenses using various methods , including the paid-loss development method , the reported-loss development method , the paid bornhuetter-ferguson method and the reported bornhuetter-ferguson method . any single method used to estimate ultimate losses has inherent advantages and disadvantages due to the trends and changes affecting the business environment and the company 's administrative policies . further , external factors , such as legislative changes , medical cost inflation , and others may directly or indirectly impact the relative adequacy of liabilities for unpaid losses and loss adjustment expenses . the company 's approach is to select an estimate of ultimate losses based on comparing results of a variety of reserving methods , as opposed to total reliance on any single method . unpaid loss and loss adjustment expenses are reviewed periodically for significant lines of business , and when current results differ from the original assumptions used to develop such estimates , the amount of the company 's recorded liability for unpaid loss and loss adjustment expenses is adjusted . in the event the company 's actual reported losses in any period are materially in excess of the previously estimated amounts , such losses , to the extent reinsurance coverage does not exist , could have a material adverse effect on the company 's results of operations . future policy benefits comprised 33 % of the company 's total liabilities at december 31 , 2014. these liabilities relate primarily to life insurance products and are based upon assumed future investment yields , mortality rates , and withdrawal rates after giving effect to possible risks of adverse deviation . the assumed mortality and withdrawal rates are based upon the company 's experience . if actual results differ from the initial assumptions , the amount of the company 's recorded liability could require adjustment . deferred acquisition costs comprised 9 % of the company 's total assets at december 31 , 2014. deferred acquisition costs are commissions , premium taxes , and other costs that vary with and are primarily related to the acquisition of new and renewal business and are generally deferred and amortized . the deferred amounts are recorded as an asset on the balance sheet and amortized to expense in a systematic manner . traditional life insurance and long-duration health insurance deferred policy acquisition costs are amortized over the estimated premium-paying period of the related policies using assumptions consistent with those used in computing the related liability for policy benefit reserves . deferred acquisition costs for property and casualty insurance and short-duration health insurance are amortized over the effective period of the related insurance policies . deferred policy acquisition costs are expensed when such costs are deemed not to be recoverable from future premiums ( for traditional life and long-duration health insurance ) and from the related unearned premiums and investment income ( for property and casualty and short-duration health insurance ) . assessments of recoverability for property and casualty and short-duration health insurance are extremely sensitive to the estimates of a subsequent year 's projected losses related to the unearned premiums . projected loss estimates for a current block of business for which unearned premiums remain to be earned may vary significantly from the indicated losses incurred in any previous calendar year . receivables are amounts due from reinsurers , insureds and agents , and any sales of investment securities not yet settled , and comprised 8 % of the company 's total assets at december 31 , 2014. insured and agent balances are evaluated periodically for collectibility . annually , the company performs an analysis of the creditworthiness of the reinsurers with whom the company contracts using various data sources . failure of reinsurers to meet their obligations due to insolvencies , disputes or otherwise could result in uncollectible amounts and losses to the company . allowances for uncollectible amounts are established , as and when a loss has been determined probable , against the related receivable . losses are recognized by the company when determined on a specific account basis and a general provision for loss is made based on the company 's historical experience . cash and investments comprised 81 % of the company 's total assets at december 31 , 2014. substantially all of the company 's investments are in bonds and common and preferred stocks , the values of which are subject to significant market fluctuations . the company carries all investments as available for sale and , accordingly , at their estimated fair values . the company owns certain fixed maturities that do not have publicly quoted values , but had an estimated fair value as determined by management of $ 2.2 million at december 31 , 2014. such values inherently involve a greater degree of judgment and uncertainty and therefore ultimately greater price 17 volatility than the value of securities with publicly quoted market values . on occasion , the value of an investment may decline to a value below its amortized purchase price and remain at such value for an extended period of time . when an investment 's indicated fair value has declined below its cost basis for a period of time , the company evaluates such investment for an other than temporary impairment . story_separator_special_tag 22 the company had net realized investment gains of $ 1.6 million in 2014 compared to net realized investment gains of $ 8.7 million in 2013. the net realized investment gains in 2014 resulted from the disposition of several of the company 's investments in fixed maturities . the net realized investment gains in 2013 were primarily due to the sale of a number of the company 's investments in longer-term fixed maturities discussed previously . during 2014 , the company recorded investment impairments due to other than temporary declines in values of $ 0.2 million on certain of its investments in non-redeemable preferred stocks . while the impairments did not impact the carrying value of these investments , they resulted in realized losses which reduced reported realized gains . there were no impairments recorded in 2013. management continually evaluates the company 's investment portfolio and , as may be determined to be appropriate , makes adjustments for impairments and or will divest investments . see note 2 of notes to consolidated financial statements . interest expense interest expense decreased $ 0.3 million , or 15.3 % , in 2014 as compared to 2013. the decrease in interest expense was primarily due to the termination of the company 's zero cost interest rate collar with wells fargo bank , national association ( wells fargo ) on march 4 , 2013 , the stated maturity date , by its terms . the interest rate collar had a london interbank offered rate ( libor ) floor of 4.77 % . as a result of interest rates remaining below the libor floor , the company was making payments to wells fargo under the interest rate collar through the maturity date . also contributing to the decrease in interest expense was a decrease in the outstanding amount of junior subordinated debentures . on august 4 , 2014 , the company acquired $ 7.5 million of principal amount junior subordinated debentures , which decreased the outstanding balance to $ 33.7 million and resulted in prospectively lower interest expense . other expenses other expenses ( commissions , underwriting expenses , and other expenses ) increased $ 1.7 million , or 3.3 % , in 2014 as compared to 2013. the increase in other expenses was primarily attributable to increases in agency and underwriting related expenses in the life and health operations , amortization of deferred acquisition costs exceeding deferrals due to lower levels of new business as well as the increase of $ 0.4 million in amortization of unearned compensation from stock awards . further , there was also an increase in severance expense of $ 0.1 million related to an increase in the number of employee separations in 2014 as compared to 2013. partially offsetting the increase in other expenses was the $ 1.6 million decrease in commission accruals at american southern due to recent increased loss experience . the majority of american southern 's business is structured in a way that agents are compensated based upon the loss ratios of the business they place with the company . during periods in which the loss ratio increases , commissions and underwriting expenses will generally decrease , and conversely , during periods in which the loss ratio decreases , commissions and underwriting expenses will generally increase . as a percentage of earned premiums , other expenses were 34.9 % in 2014 as compared with 35.6 % in 2013. the decrease in the expense ratio was primarily due to the decrease in commission accruals at american southern discussed previously . income taxes the primary differences between the effective tax rate and the federal statutory income tax rate resulted from the dividends-received deduction ( drd ) , the small life insurance company deduction ( sld ) and the change in deferred tax asset valuation allowance . the current estimated drd is adjusted as underlying factors change and can vary from estimates based on , but not limited to , actual distributions from investments as well as the amount of the company 's taxable income . the sld varies in amount and is determined at a rate of 60 percent of the tentative life insurance company taxable income ( licti ) . the sld for any taxable year is reduced ( but not below zero ) by 15 percent of the tentative licti for such taxable year as it exceeds $ 3.0 million and is ultimately phased out at $ 15.0 million . the change in deferred tax asset valuation allowance was due to the unanticipated utilization of certain capital loss carryforward benefits that had been previously reduced to zero through an existing valuation allowance reserve . story_separator_special_tag times new roman , times , serif ; font-size : 10.67px ; font-variant : normal ; font-weight : bold `` > increased level of investing exceeding normal sales and maturities , additions to property and equipment of $ 4.1 million , the purchase of junior subordinated debentures for treasury for $ 6.8 million , the redemption of 10,000 shares of the series d preferred stock for $ 1.0 million , dividends paid on the company 's common stock and series d preferred stock of $ 0.8 million and $ 0.5 million , respectively , and the purchase of shares for treasury for $ 2.6 million . partially offsetting the decrease was the net cash provided by operations of $ 4.5 million during 2014. the company believes that existing cash balances as well as the dividends , fees , and tax-sharing payments it expects to receive from its subsidiaries and , if needed , additional borrowings from financial institutions , will enable the company to meet its liquidity requirements for the foreseeable future . management is not aware of any current recommendations by regulatory authorities , which , if implemented , would have a material adverse effect on the company 's liquidity , capital resources or operations . new accounting pronouncements see recently issued accounting standards in note 1 of notes to
| liquidity and capital resources the primary cash needs of the company are for the payment of claims and operating expenses , maintaining adequate statutory capital and surplus levels , and meeting debt service requirements . current and expected patterns of claim frequency and severity may change from period to period but generally are expected to 23 continue within historical ranges . the company 's primary sources of cash are written premiums , investment income and proceeds from the sale and maturity of its invested assets . the company believes that , within each operating company , total invested assets will be sufficient to satisfy all policy liabilities and that cash inflows from investment earnings , future premium receipts and reinsurance collections will be adequate to fund the payment of claims and expenses as needed . cash flows at the parent are derived from dividends , management fees , and tax-sharing payments , as described below , from the subsidiaries . the cash needs of the parent are for the payment of operating expenses , the acquisition of capital assets and debt service requirements , as well as the repurchase of shares and payments of any dividends as may be authorized and approved by the company 's board of directors from time to time . at december 31 , 2014 , the parent had approximately $ 19.7 million of unrestricted cash and investments . dividend payments to a parent corporation by its wholly owned insurance subsidiaries are subject to annual limitations and are restricted to 10 % of statutory surplus or statutory earnings before recognizing realized investment gains of the individual insurance subsidiaries . at december 31 , 2014 , the parent 's insurance subsidiaries had an aggregate statutory surplus of $ 73.0 million . dividends were paid to atlantic american by its subsidiaries totaling $ 6.5 million and $ 6.6 million in 2014 and 2013 , respectively . the parent provides certain administrative , purchasing and other services to each of its 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 the primary cash needs of the company are for the payment of claims and operating expenses , maintaining adequate statutory capital and surplus levels , and meeting debt service requirements . current and expected patterns of claim frequency and severity may change from period to period but generally are expected to 23 continue within historical ranges . the company 's primary sources of cash are written premiums , investment income and proceeds from the sale and maturity of its invested assets . the company believes that , within each operating company , total invested assets will be sufficient to satisfy all policy liabilities and that cash inflows from investment earnings , future premium receipts and reinsurance collections will be adequate to fund the payment of claims and expenses as needed . cash flows at the parent are derived from dividends , management fees , and tax-sharing payments , as described below , from the subsidiaries . the cash needs of the parent are for the payment of operating expenses , the acquisition of capital assets and debt service requirements , as well as the repurchase of shares and payments of any dividends as may be authorized and approved by the company 's board of directors from time to time . at december 31 , 2014 , the parent had approximately $ 19.7 million of unrestricted cash and investments . dividend payments to a parent corporation by its wholly owned insurance subsidiaries are subject to annual limitations and are restricted to 10 % of statutory surplus or statutory earnings before recognizing realized investment gains of the individual insurance subsidiaries . at december 31 , 2014 , the parent 's insurance subsidiaries had an aggregate statutory surplus of $ 73.0 million . dividends were paid to atlantic american by its subsidiaries totaling $ 6.5 million and $ 6.6 million in 2014 and 2013 , respectively . the parent provides certain administrative , purchasing and other services to each of its subsidiaries .
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Suspicious Activity Report : estimated unpaid losses on reported claims are developed based on historical experience with similar claims by the company . development on reported claims , estimates of unpaid ultimate losses on claims incurred prior to december 31 , 2014 but not yet reported , and estimates of unpaid loss adjustment expenses are developed based on the company 's historical experience , using actuarial methods to assist in the analysis . the company 's actuaries develop ranges of estimated development on reported and unreported claims as well as loss adjustment expenses using various methods , including the paid-loss development method , the reported-loss development method , the paid bornhuetter-ferguson method and the reported bornhuetter-ferguson method . any single method used to estimate ultimate losses has inherent advantages and disadvantages due to the trends and changes affecting the business environment and the company 's administrative policies . further , external factors , such as legislative changes , medical cost inflation , and others may directly or indirectly impact the relative adequacy of liabilities for unpaid losses and loss adjustment expenses . the company 's approach is to select an estimate of ultimate losses based on comparing results of a variety of reserving methods , as opposed to total reliance on any single method . unpaid loss and loss adjustment expenses are reviewed periodically for significant lines of business , and when current results differ from the original assumptions used to develop such estimates , the amount of the company 's recorded liability for unpaid loss and loss adjustment expenses is adjusted . in the event the company 's actual reported losses in any period are materially in excess of the previously estimated amounts , such losses , to the extent reinsurance coverage does not exist , could have a material adverse effect on the company 's results of operations . future policy benefits comprised 33 % of the company 's total liabilities at december 31 , 2014. these liabilities relate primarily to life insurance products and are based upon assumed future investment yields , mortality rates , and withdrawal rates after giving effect to possible risks of adverse deviation . the assumed mortality and withdrawal rates are based upon the company 's experience . if actual results differ from the initial assumptions , the amount of the company 's recorded liability could require adjustment . deferred acquisition costs comprised 9 % of the company 's total assets at december 31 , 2014. deferred acquisition costs are commissions , premium taxes , and other costs that vary with and are primarily related to the acquisition of new and renewal business and are generally deferred and amortized . the deferred amounts are recorded as an asset on the balance sheet and amortized to expense in a systematic manner . traditional life insurance and long-duration health insurance deferred policy acquisition costs are amortized over the estimated premium-paying period of the related policies using assumptions consistent with those used in computing the related liability for policy benefit reserves . deferred acquisition costs for property and casualty insurance and short-duration health insurance are amortized over the effective period of the related insurance policies . deferred policy acquisition costs are expensed when such costs are deemed not to be recoverable from future premiums ( for traditional life and long-duration health insurance ) and from the related unearned premiums and investment income ( for property and casualty and short-duration health insurance ) . assessments of recoverability for property and casualty and short-duration health insurance are extremely sensitive to the estimates of a subsequent year 's projected losses related to the unearned premiums . projected loss estimates for a current block of business for which unearned premiums remain to be earned may vary significantly from the indicated losses incurred in any previous calendar year . receivables are amounts due from reinsurers , insureds and agents , and any sales of investment securities not yet settled , and comprised 8 % of the company 's total assets at december 31 , 2014. insured and agent balances are evaluated periodically for collectibility . annually , the company performs an analysis of the creditworthiness of the reinsurers with whom the company contracts using various data sources . failure of reinsurers to meet their obligations due to insolvencies , disputes or otherwise could result in uncollectible amounts and losses to the company . allowances for uncollectible amounts are established , as and when a loss has been determined probable , against the related receivable . losses are recognized by the company when determined on a specific account basis and a general provision for loss is made based on the company 's historical experience . cash and investments comprised 81 % of the company 's total assets at december 31 , 2014. substantially all of the company 's investments are in bonds and common and preferred stocks , the values of which are subject to significant market fluctuations . the company carries all investments as available for sale and , accordingly , at their estimated fair values . the company owns certain fixed maturities that do not have publicly quoted values , but had an estimated fair value as determined by management of $ 2.2 million at december 31 , 2014. such values inherently involve a greater degree of judgment and uncertainty and therefore ultimately greater price 17 volatility than the value of securities with publicly quoted market values . on occasion , the value of an investment may decline to a value below its amortized purchase price and remain at such value for an extended period of time . when an investment 's indicated fair value has declined below its cost basis for a period of time , the company evaluates such investment for an other than temporary impairment . story_separator_special_tag 22 the company had net realized investment gains of $ 1.6 million in 2014 compared to net realized investment gains of $ 8.7 million in 2013. the net realized investment gains in 2014 resulted from the disposition of several of the company 's investments in fixed maturities . the net realized investment gains in 2013 were primarily due to the sale of a number of the company 's investments in longer-term fixed maturities discussed previously . during 2014 , the company recorded investment impairments due to other than temporary declines in values of $ 0.2 million on certain of its investments in non-redeemable preferred stocks . while the impairments did not impact the carrying value of these investments , they resulted in realized losses which reduced reported realized gains . there were no impairments recorded in 2013. management continually evaluates the company 's investment portfolio and , as may be determined to be appropriate , makes adjustments for impairments and or will divest investments . see note 2 of notes to consolidated financial statements . interest expense interest expense decreased $ 0.3 million , or 15.3 % , in 2014 as compared to 2013. the decrease in interest expense was primarily due to the termination of the company 's zero cost interest rate collar with wells fargo bank , national association ( wells fargo ) on march 4 , 2013 , the stated maturity date , by its terms . the interest rate collar had a london interbank offered rate ( libor ) floor of 4.77 % . as a result of interest rates remaining below the libor floor , the company was making payments to wells fargo under the interest rate collar through the maturity date . also contributing to the decrease in interest expense was a decrease in the outstanding amount of junior subordinated debentures . on august 4 , 2014 , the company acquired $ 7.5 million of principal amount junior subordinated debentures , which decreased the outstanding balance to $ 33.7 million and resulted in prospectively lower interest expense . other expenses other expenses ( commissions , underwriting expenses , and other expenses ) increased $ 1.7 million , or 3.3 % , in 2014 as compared to 2013. the increase in other expenses was primarily attributable to increases in agency and underwriting related expenses in the life and health operations , amortization of deferred acquisition costs exceeding deferrals due to lower levels of new business as well as the increase of $ 0.4 million in amortization of unearned compensation from stock awards . further , there was also an increase in severance expense of $ 0.1 million related to an increase in the number of employee separations in 2014 as compared to 2013. partially offsetting the increase in other expenses was the $ 1.6 million decrease in commission accruals at american southern due to recent increased loss experience . the majority of american southern 's business is structured in a way that agents are compensated based upon the loss ratios of the business they place with the company . during periods in which the loss ratio increases , commissions and underwriting expenses will generally decrease , and conversely , during periods in which the loss ratio decreases , commissions and underwriting expenses will generally increase . as a percentage of earned premiums , other expenses were 34.9 % in 2014 as compared with 35.6 % in 2013. the decrease in the expense ratio was primarily due to the decrease in commission accruals at american southern discussed previously . income taxes the primary differences between the effective tax rate and the federal statutory income tax rate resulted from the dividends-received deduction ( drd ) , the small life insurance company deduction ( sld ) and the change in deferred tax asset valuation allowance . the current estimated drd is adjusted as underlying factors change and can vary from estimates based on , but not limited to , actual distributions from investments as well as the amount of the company 's taxable income . the sld varies in amount and is determined at a rate of 60 percent of the tentative life insurance company taxable income ( licti ) . the sld for any taxable year is reduced ( but not below zero ) by 15 percent of the tentative licti for such taxable year as it exceeds $ 3.0 million and is ultimately phased out at $ 15.0 million . the change in deferred tax asset valuation allowance was due to the unanticipated utilization of certain capital loss carryforward benefits that had been previously reduced to zero through an existing valuation allowance reserve . story_separator_special_tag times new roman , times , serif ; font-size : 10.67px ; font-variant : normal ; font-weight : bold `` > increased level of investing exceeding normal sales and maturities , additions to property and equipment of $ 4.1 million , the purchase of junior subordinated debentures for treasury for $ 6.8 million , the redemption of 10,000 shares of the series d preferred stock for $ 1.0 million , dividends paid on the company 's common stock and series d preferred stock of $ 0.8 million and $ 0.5 million , respectively , and the purchase of shares for treasury for $ 2.6 million . partially offsetting the decrease was the net cash provided by operations of $ 4.5 million during 2014. the company believes that existing cash balances as well as the dividends , fees , and tax-sharing payments it expects to receive from its subsidiaries and , if needed , additional borrowings from financial institutions , will enable the company to meet its liquidity requirements for the foreseeable future . management is not aware of any current recommendations by regulatory authorities , which , if implemented , would have a material adverse effect on the company 's liquidity , capital resources or operations . new accounting pronouncements see recently issued accounting standards in note 1 of notes to
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2,691 | diluted earnings per share decreased 29.4 % to $ 1.32 for the year ended december 31 , 2017 from $ 1.87 in 2016 . cash provided by operations increased $ 30.5 million , or 18.5 % , to $ 195.4 million during 2017 . the operating results in any period are not necessarily indicative of the results that may be expected for any future period . critical accounting policies we prepare our consolidated financial statements in accordance with u.s. generally accepted accounting principles ( “ gaap ” ) , which require us to make judgments , estimates and assumptions that affect : ( i ) the reported amounts of assets and liabilities , ( ii ) disclosure of contingent assets and liabilities at the end of each reporting period and ( iii ) the reported amounts of revenues and expenses during each reporting period . we evaluate these estimates and assumptions based on historical experience , knowledge and assessment of current business and other conditions , and expectations regarding the future based on available information and reasonable assumptions , which together form a basis for making judgments about matters not readily apparent from other sources . since the use of estimates is an integral component of the financial reporting process , actual results could differ from those estimates . some of our accounting policies require higher degrees of judgment than others in their application . when reviewing our audited consolidated financial statements , you should consider ( i ) our selection of critical accounting policies , ( ii ) the judgment and other uncertainties affecting the application of such policies and ( iii ) the sensitivity of reported results to changes in conditions and assumptions . we consider the policies discussed below to be critical to an understanding of our consolidated financial statements as their application places significant demands on the judgment of our management . an accounting policy is considered critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made , and if different estimates that reasonably could have been used , or changes in the accounting estimates that are reasonably likely to occur periodically , could materially impact the consolidated financial statements . we believe that the following critical accounting policies are the most sensitive and require more significant estimates and assumptions used in the preparation of our consolidated financial statements . you should read the following descriptions of critical accounting policies , judgments and estimates in conjunction with our audited consolidated financial statements and other disclosures included elsewhere in this annual report . revenues — we recognize revenue when realized or realizable and earned , which is when the following criteria are met : persuasive evidence of an arrangement exists ; delivery has occurred ; the sales price is fixed or determinable ; and collectability is reasonably assured . determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue we report . if there is uncertainty about the project completion or receipt of payment for the services , revenues are deferred until the uncertainty is sufficiently resolved . at the time revenues are recognized , we provide for any contractual deductions and reduce revenues accordingly . we defer amounts billed to our clients for revenues not yet earned . such amounts are anticipated to be recorded as revenues as services are performed in subsequent periods . unbilled revenues represent services provided which are billed subsequent to the period end in accordance with the contract terms . we derive our revenues from a variety of service offerings , which represent specific competencies of our it professionals . contracts for these services have different terms and conditions based on the scope , deliverables , and complexity of the engagement , which require management to make judgments and estimates in determining appropriate revenue recognition . fees for these contracts may be in the form of time-and-materials or fixed-price arrangements . the majority of our revenues ( 90.3 % of revenues in 2017 , 88.2 % in 2016 and 85.8 % in 2015 ) are generated under time-and-material contracts whereby revenues are recognized as services are performed with the corresponding cost of providing those services reflected as cost of revenues . the majority of such revenues are billed using hourly , daily or monthly rates by which actual time incurred is charged directly to the client . we expect time-and-material arrangements to continue to comprise the majority of our revenues in the future . 27 revenues from fixed-price contracts ( 8.3 % of revenues in 2017 , 10.4 % in 2016 and 12.8 % in 2015 ) include fixed-price maintenance and support arrangements , which may exceed one year in duration , as well as fixed-price application development arrangements . revenues from maintenance and support arrangements are generally recognized ratably over the expected service period . revenues from fixed-price application development arrangements are determined using the proportional performance method . in instances where final acceptance of the product , system , or solution is specified by the client , revenue is deferred until all acceptance criteria have been met . in the absence of a sufficient basis to measure progress towards completion , revenue is recognized upon receipt of final acceptance from the client . assumptions , risks and uncertainties inherent in the estimates used in the application of the proportional performance method of accounting could affect the amount of revenues , receivables and deferred revenues at each reporting period . business combinations — we account for our business combinations using the acquisition accounting method , which requires us to determine the fair value of net assets acquired and the related goodwill and other intangible assets in accordance with the fasb asc topic 805 , “ business combinations . story_separator_special_tag revenues in this geography benefited by $ 5.9 million from the appreciation of the russian ruble relative to the u.s. dollar . 2016 compared to 2015 during the year ended december 31 , 2016 , revenues in our largest geography , north america , closed at $ 670.6 million growing $ 180.3 million , or 36.8 % , from $ 490.3 million reported for the year ended december 31 , 2015. revenues from this geography accounted for 57.8 % of total revenues in 2016 , an increase of 4.2 % from 53.6 % reported in 2015. within north america , we experienced strong growth across all verticals despite considerable market , geo-political , and economic uncertainties : each of the two verticals , media and entertainment and life sciences and healthcare , grew above 40 % ; while emerging verticals and financial services grew 59.6 % and 94.9 % , respectively . in addition , our traditionally strong software & hi-tech portfolio grew 27.3 % , which allowed us to keep this important segment at our strategic target of 20 % of consolidated revenues . we saw continued traction with customers in the pharmaceutical segment of our life sciences and healthcare vertical , and significantly grew our portfolio of customers in emerging verticals with over 30 % growth in revenues there coming from customers who have been with us less than one year . combined growth in our software & hi-tech and media & entertainment verticals accounted for 48.6 % of the overall growth in the north america geography , of which $ 19.6 million , or 22.4 % , was attributable to the expansion of existing relationship with certain long-standing customers within our media and entertainment vertical . 33 revenues in our europe geography were $ 417.8 million , an increase of $ 61.3 million , or 17.2 % over $ 356.5 million reported in 2015. revenues in this geography accounted for 36.0 % of consolidated revenues in 2016 as compared to 39.0 % in 2015. the slowdown in revenue growth in 2016 was largely attributable to decelerated growth in revenues from our top customer in this geography , coupled with increased internal and external pressures on customers within our travel and consumer vertical , and currency headwinds , primarily due to the depreciation of the british pound relative to the u.s. dollar . consistent with results in our north america geography , europe experienced strong growth in the media and entertainment , life sciences and healthcare , and emerging verticals , each of which grew over 48 % during 2016. over 40 % of growth in life sciences and healthcare and emerging verticals came from customers who have been with us less than one year . financial services remained our largest vertical in this geography and accounted for 34.0 % of the overall growth in 2016. revenues in the cis geography showed an increase of $ 3.0 million , or 6.9 % , from 2015. the increase in cis revenues came predominantly from customers within the financial services and travel and consumer verticals . revenues by client concentration while we seek to grow revenues from our existing clients by continually expanding the scope and size of our engagements , we expect client concentration from our top clients to continue to decrease over the long-term . the following table sets forth revenues including reimbursable expenses contributed by our top one , top five , top ten and top twenty clients by amount and as a percentage of our revenues for the periods indicated : replace_table_token_15_th ( 1 ) no single client comprises more than 10 % of the company 's revenues including reimbursable expenses for the year ended december 31 , 2017 . during the year ended december 31 , 2017 , our revenue growth outside the top twenty accounts was $ 204,587 or 34.3 % . we have long-standing relationships with many of our customers , and revenues derived from these customers may fluctuate as these accounts mature or upon completion of multi-year projects . our focus on delivering quality to our clients is reflected by an average of 94.9 % and 85.7 % of our revenues in 2017 coming from clients that had used our services for at least one and two years , respectively . while we believe there 's a significant potential for future growth as we expand our capabilities and offerings within specific domains and verticals , we continue to focus on diversification of our client concentration and building up a portfolio of accounts that we believe have significant revenue potential . we anticipate the contribution of these accounts to our total revenues to increase in the mid- to long-term and offset the slower growth rate of some of our largest customers as those accounts mature . 34 revenues by service offering our end-to-end service offerings are grouped into five main categories with software development representing our core competency and a substantial majority of our business . the following table sets forth revenues by service offering by amount and as a percentage of our revenues for the periods indicated : replace_table_token_16_th revenues by contract type our engagement models are based on the type of services provided to a client , the mix and locations of professionals involved and the business outcomes our clients are looking to achieve . our two types of service arrangements are time-and-material and fixed-price contracts . historically , the majority of our revenues have been generated under time-and-material contracts and we expect time-and-material arrangements to continue to comprise the majority of our revenues in the future . under time-and-material contracts , we are compensated for actual time incurred by our it professionals at negotiated hourly , daily or monthly rates . fixed-price contracts require us to perform services throughout the contractual period and we are paid in installments on agreed intervals . the following table sets forth revenues by contract type by amount and as a percentage of our revenues
| cash flows the following table summarizes our cash flows for the periods indicated : replace_table_token_19_th operating activities 2017 compared to 2016 net cash provided by operating activities during the year ended december 31 , 2017 increased $ 30.5 million , or 18.5 % , to $ 195.4 million , as compared to 2016 primarily driven by the $ 39.3 million increase in income from operations . the $ 74.3 million increase in the provision for income taxes had minimal impact on cash flow as it was offset by a $ 70.5 million increase in taxes payable primarily attributable to the u.s. tax act which are expected to be paid over the next 8 years . 2016 compared to 2015 net cash provided by operating activities during the year ended december 31 , 2016 increased $ 88.4 million , or 115.7 % , to $ 164.8 million , as compared to 2015. the increase in operating cash flows was primarily attributable to higher customer collections as we made substantial progress in managing our billed and unbilled trade receivables , and decreased the ratio of billed and unbilled trade receivables to revenues over the course of 2016. investing activities 2017 compared to 2016 net cash used in investing activities during the year ended december 31 , 2017 was $ 36.2 million compared to $ 9.3 million used in the same period in 2016 . during 2017 , the investing cash outflow was primarily attributed to capital expenditures of $ 29.8 million and was consistent with capital expenditures of $ 29.3 million in 2016. our capital expenditures during 2017 were driven by our continuous investment in facilities and computer equipment to support our increased headcount .
| 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 periods indicated : replace_table_token_19_th operating activities 2017 compared to 2016 net cash provided by operating activities during the year ended december 31 , 2017 increased $ 30.5 million , or 18.5 % , to $ 195.4 million , as compared to 2016 primarily driven by the $ 39.3 million increase in income from operations . the $ 74.3 million increase in the provision for income taxes had minimal impact on cash flow as it was offset by a $ 70.5 million increase in taxes payable primarily attributable to the u.s. tax act which are expected to be paid over the next 8 years . 2016 compared to 2015 net cash provided by operating activities during the year ended december 31 , 2016 increased $ 88.4 million , or 115.7 % , to $ 164.8 million , as compared to 2015. the increase in operating cash flows was primarily attributable to higher customer collections as we made substantial progress in managing our billed and unbilled trade receivables , and decreased the ratio of billed and unbilled trade receivables to revenues over the course of 2016. investing activities 2017 compared to 2016 net cash used in investing activities during the year ended december 31 , 2017 was $ 36.2 million compared to $ 9.3 million used in the same period in 2016 . during 2017 , the investing cash outflow was primarily attributed to capital expenditures of $ 29.8 million and was consistent with capital expenditures of $ 29.3 million in 2016. our capital expenditures during 2017 were driven by our continuous investment in facilities and computer equipment to support our increased headcount .
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Suspicious Activity Report : diluted earnings per share decreased 29.4 % to $ 1.32 for the year ended december 31 , 2017 from $ 1.87 in 2016 . cash provided by operations increased $ 30.5 million , or 18.5 % , to $ 195.4 million during 2017 . the operating results in any period are not necessarily indicative of the results that may be expected for any future period . critical accounting policies we prepare our consolidated financial statements in accordance with u.s. generally accepted accounting principles ( “ gaap ” ) , which require us to make judgments , estimates and assumptions that affect : ( i ) the reported amounts of assets and liabilities , ( ii ) disclosure of contingent assets and liabilities at the end of each reporting period and ( iii ) the reported amounts of revenues and expenses during each reporting period . we evaluate these estimates and assumptions based on historical experience , knowledge and assessment of current business and other conditions , and expectations regarding the future based on available information and reasonable assumptions , which together form a basis for making judgments about matters not readily apparent from other sources . since the use of estimates is an integral component of the financial reporting process , actual results could differ from those estimates . some of our accounting policies require higher degrees of judgment than others in their application . when reviewing our audited consolidated financial statements , you should consider ( i ) our selection of critical accounting policies , ( ii ) the judgment and other uncertainties affecting the application of such policies and ( iii ) the sensitivity of reported results to changes in conditions and assumptions . we consider the policies discussed below to be critical to an understanding of our consolidated financial statements as their application places significant demands on the judgment of our management . an accounting policy is considered critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made , and if different estimates that reasonably could have been used , or changes in the accounting estimates that are reasonably likely to occur periodically , could materially impact the consolidated financial statements . we believe that the following critical accounting policies are the most sensitive and require more significant estimates and assumptions used in the preparation of our consolidated financial statements . you should read the following descriptions of critical accounting policies , judgments and estimates in conjunction with our audited consolidated financial statements and other disclosures included elsewhere in this annual report . revenues — we recognize revenue when realized or realizable and earned , which is when the following criteria are met : persuasive evidence of an arrangement exists ; delivery has occurred ; the sales price is fixed or determinable ; and collectability is reasonably assured . determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue we report . if there is uncertainty about the project completion or receipt of payment for the services , revenues are deferred until the uncertainty is sufficiently resolved . at the time revenues are recognized , we provide for any contractual deductions and reduce revenues accordingly . we defer amounts billed to our clients for revenues not yet earned . such amounts are anticipated to be recorded as revenues as services are performed in subsequent periods . unbilled revenues represent services provided which are billed subsequent to the period end in accordance with the contract terms . we derive our revenues from a variety of service offerings , which represent specific competencies of our it professionals . contracts for these services have different terms and conditions based on the scope , deliverables , and complexity of the engagement , which require management to make judgments and estimates in determining appropriate revenue recognition . fees for these contracts may be in the form of time-and-materials or fixed-price arrangements . the majority of our revenues ( 90.3 % of revenues in 2017 , 88.2 % in 2016 and 85.8 % in 2015 ) are generated under time-and-material contracts whereby revenues are recognized as services are performed with the corresponding cost of providing those services reflected as cost of revenues . the majority of such revenues are billed using hourly , daily or monthly rates by which actual time incurred is charged directly to the client . we expect time-and-material arrangements to continue to comprise the majority of our revenues in the future . 27 revenues from fixed-price contracts ( 8.3 % of revenues in 2017 , 10.4 % in 2016 and 12.8 % in 2015 ) include fixed-price maintenance and support arrangements , which may exceed one year in duration , as well as fixed-price application development arrangements . revenues from maintenance and support arrangements are generally recognized ratably over the expected service period . revenues from fixed-price application development arrangements are determined using the proportional performance method . in instances where final acceptance of the product , system , or solution is specified by the client , revenue is deferred until all acceptance criteria have been met . in the absence of a sufficient basis to measure progress towards completion , revenue is recognized upon receipt of final acceptance from the client . assumptions , risks and uncertainties inherent in the estimates used in the application of the proportional performance method of accounting could affect the amount of revenues , receivables and deferred revenues at each reporting period . business combinations — we account for our business combinations using the acquisition accounting method , which requires us to determine the fair value of net assets acquired and the related goodwill and other intangible assets in accordance with the fasb asc topic 805 , “ business combinations . story_separator_special_tag revenues in this geography benefited by $ 5.9 million from the appreciation of the russian ruble relative to the u.s. dollar . 2016 compared to 2015 during the year ended december 31 , 2016 , revenues in our largest geography , north america , closed at $ 670.6 million growing $ 180.3 million , or 36.8 % , from $ 490.3 million reported for the year ended december 31 , 2015. revenues from this geography accounted for 57.8 % of total revenues in 2016 , an increase of 4.2 % from 53.6 % reported in 2015. within north america , we experienced strong growth across all verticals despite considerable market , geo-political , and economic uncertainties : each of the two verticals , media and entertainment and life sciences and healthcare , grew above 40 % ; while emerging verticals and financial services grew 59.6 % and 94.9 % , respectively . in addition , our traditionally strong software & hi-tech portfolio grew 27.3 % , which allowed us to keep this important segment at our strategic target of 20 % of consolidated revenues . we saw continued traction with customers in the pharmaceutical segment of our life sciences and healthcare vertical , and significantly grew our portfolio of customers in emerging verticals with over 30 % growth in revenues there coming from customers who have been with us less than one year . combined growth in our software & hi-tech and media & entertainment verticals accounted for 48.6 % of the overall growth in the north america geography , of which $ 19.6 million , or 22.4 % , was attributable to the expansion of existing relationship with certain long-standing customers within our media and entertainment vertical . 33 revenues in our europe geography were $ 417.8 million , an increase of $ 61.3 million , or 17.2 % over $ 356.5 million reported in 2015. revenues in this geography accounted for 36.0 % of consolidated revenues in 2016 as compared to 39.0 % in 2015. the slowdown in revenue growth in 2016 was largely attributable to decelerated growth in revenues from our top customer in this geography , coupled with increased internal and external pressures on customers within our travel and consumer vertical , and currency headwinds , primarily due to the depreciation of the british pound relative to the u.s. dollar . consistent with results in our north america geography , europe experienced strong growth in the media and entertainment , life sciences and healthcare , and emerging verticals , each of which grew over 48 % during 2016. over 40 % of growth in life sciences and healthcare and emerging verticals came from customers who have been with us less than one year . financial services remained our largest vertical in this geography and accounted for 34.0 % of the overall growth in 2016. revenues in the cis geography showed an increase of $ 3.0 million , or 6.9 % , from 2015. the increase in cis revenues came predominantly from customers within the financial services and travel and consumer verticals . revenues by client concentration while we seek to grow revenues from our existing clients by continually expanding the scope and size of our engagements , we expect client concentration from our top clients to continue to decrease over the long-term . the following table sets forth revenues including reimbursable expenses contributed by our top one , top five , top ten and top twenty clients by amount and as a percentage of our revenues for the periods indicated : replace_table_token_15_th ( 1 ) no single client comprises more than 10 % of the company 's revenues including reimbursable expenses for the year ended december 31 , 2017 . during the year ended december 31 , 2017 , our revenue growth outside the top twenty accounts was $ 204,587 or 34.3 % . we have long-standing relationships with many of our customers , and revenues derived from these customers may fluctuate as these accounts mature or upon completion of multi-year projects . our focus on delivering quality to our clients is reflected by an average of 94.9 % and 85.7 % of our revenues in 2017 coming from clients that had used our services for at least one and two years , respectively . while we believe there 's a significant potential for future growth as we expand our capabilities and offerings within specific domains and verticals , we continue to focus on diversification of our client concentration and building up a portfolio of accounts that we believe have significant revenue potential . we anticipate the contribution of these accounts to our total revenues to increase in the mid- to long-term and offset the slower growth rate of some of our largest customers as those accounts mature . 34 revenues by service offering our end-to-end service offerings are grouped into five main categories with software development representing our core competency and a substantial majority of our business . the following table sets forth revenues by service offering by amount and as a percentage of our revenues for the periods indicated : replace_table_token_16_th revenues by contract type our engagement models are based on the type of services provided to a client , the mix and locations of professionals involved and the business outcomes our clients are looking to achieve . our two types of service arrangements are time-and-material and fixed-price contracts . historically , the majority of our revenues have been generated under time-and-material contracts and we expect time-and-material arrangements to continue to comprise the majority of our revenues in the future . under time-and-material contracts , we are compensated for actual time incurred by our it professionals at negotiated hourly , daily or monthly rates . fixed-price contracts require us to perform services throughout the contractual period and we are paid in installments on agreed intervals . the following table sets forth revenues by contract type by amount and as a percentage of our revenues
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2,692 | our net1 solutions business unit is responsible for the worldwide technical development and commercialization of our array of web and mobile applications and payment technologies , such as mvc , chip and gsm licensing and vtu , and has deployed solutions in many countries , including south africa , namibia , nigeria , malawi , cameroon , the philippines , india and colombia . sources of revenue we generate our revenues by charging transaction fees to government agencies , merchants , financial service providers , utility providers , bill issuers , employers , healthcare providers and cardholders ; by providing loans and insurance products and by selling hardware , licensing software and providing related technology services . 39 we have structured our business and our business development efforts around four related but separate approaches to deploying our technology . in our most basic approach , we act as a supplier , selling our equipment , software , and related technology to a customer . the revenue and costs associated with this approach are reflected in our financial inclusion and applied technologies segment . we have found that we have greater revenue and profit opportunities , however , by acting as a service provider instead of a supplier . in this approach we own and operate the ueps ourselves , charging one-time and on-going fees for the use of the system either on a fixed or ad valorem basis . this is the case in south africa , where we distribute welfare grants on behalf of the south african government on a fixed fee basis , but charge a fee on an ad valorem basis for goods and services purchased using our smart card . the revenue and costs associated with this approach are reflected in our south african transaction processing and financial inclusion and applied technologies segments . because our smart cards are designed to enable the delivery of more advanced services and products , we are also willing to supply those services and products directly where the business case is compelling . for instance , we provide short-term loans to our smart card holders . this is an example of the third approach that we have taken . here we can act as the principal in operating a business that can be better delivered through our ueps . we can also act as an agent , for instance , in the provision of insurance policies . in both cases , the revenue and costs associated with this approach are reflected in our financial inclusion and applied technologies segment . in south africa , we also generate fees from debit and credit card transaction processing , the provision of value-added services such as bill payments , mobile top-up and prepaid utility sales , and from providing a payroll transaction management service . the revenue and costs associated with these services are reflected in our south african transaction processing and financial inclusion and applied technologies segments . through ksnet , we earn most of our revenue from payment processing services we provide to approximately 237,000 merchants and to card issuers in south korea through our value-added-network . through masterpayment and transact24 we generate fee revenue through the provision of payment service provider and card issuing and acquiring services in primarily germany , china and the u.s. furthermore , in the u.s. , we earn transaction fees from our customers utilizing our xeorules online real-time management system for healthcare transactions . we also generate fees from our customers who utilize our vcpay technology to generate a unique , one-time use prepaid virtual card number to securely purchase goods and services or perform bill payments in any card-not-present environment . the revenue and costs at of all of these businesses are reflected in our international transaction processing segment . finally , we have business partnerships or joint ventures to introduce our financial technology solutions to markets such as namibia , one credit in nigeria , and mobikwik in india . in these situations , we take an equity position in the business while also acting as a supplier of technology . in evaluating these types of opportunities , we seek to maintain a highly disciplined approach , carefully selecting partners , participating closely in the development of the business plan and remaining actively engaged in the management of the new business . in most instances , the joint venture or partnership has a license to use our proprietary technologies in the specific territory , including the back-end system . we also own 26 % of finbond group limited , or finbond , a south african public company that has a mutual banking license in south africa and owns certain state lenders in the u.s. we account for our equity investments using the equity method . we believe that this flexible approach enables us to drive adoption of our solution while capturing the value created by the implementation of our technology . developments during fiscal 2017 sassa contract extended to march 31 , 2018 our contract signed in february 2012 with sassa was scheduled to expire on march 31 , 2017. at a parliamentary briefing session on february 1 , 2017 , sassa informed the meeting that it would not be ready to assume the payment function on april 1 , 2017. sassa expressed its intention to approach the constitutional court to obtain permission to extend our contract . on february 9 , 2017 , we received a letter from sassa that essentially was an invitation to meet to discuss an interim arrangement to continue with the payment of social welfare grants after march 31 , 2017 , for a limited period . story_separator_special_tag in june 2017 , mr. herman g. kotzé became our chief executive officer , replacing mr. s.c.p . belamant , who retired as chief executive officer . mr. kotzé has been our chief financial officer , secretary and treasurer since 2004 , and will retain these positions until a suitable candidate is identified and engaged to perform these functions . 43 closure of doj investigation related to 2012 sassa contract in july 2017 , we were advised that the u.s. department of justice had closed its investigation concerning possible violations of the fcpa . the investigation commenced in november 2012 , following the award of the sassa national contract to us in january 2012. the closing of the doj investigation follows the united states securities and exchange commission closing their investigation in june 2015 , the dismissal of a shareholder class action law suit by the u.s. southern district in september 2015 , and the south african police service 's directorate for priority crime investigation , the hawks , closing their investigation in november 2015. critical accounting policies our consolidated financial statements have been prepared in accordance with u.s. gaap , which requires management to make estimates and assumptions about future events that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities . as future events and their effects can not be determined with absolute certainty , the determination of estimates requires management 's judgment based on a variety of assumptions and other determinants such as historical experience , current and expected market conditions and certain scientific evaluation techniques . management believes that the following accounting policies are critical due to the degree of estimation required and the impact of these policies on the understanding of the results of our operations and financial condition . business combinations and the recoverability of goodwill a component of our growth strategy has been to acquire and integrate businesses that complement our existing operations . the purchase price of an acquired business is allocated to the tangible and intangible assets acquired and liabilities assumed based upon their estimated fair value at the date of purchase . the difference between the purchase price and the fair value of the net assets acquired is recorded as goodwill . in determining the fair value of assets acquired and liabilities assumed in a business combination , we use various recognized valuation methods , including present value modeling . further , we make assumptions using certain valuation techniques , including discount rates and timing of future cash flows . we review the carrying value of goodwill annually or more frequently if circumstances indicate impairment may have occurred . in performing this review , we are required to estimate the fair value of goodwill that is implied from a valuation of the reporting unit to which the goodwill has been allocated after deducting the fair values of all the identifiable assets and liabilities that form part of the reporting unit . the determination of the fair value of a reporting unit requires us to make significant judgments and estimates . in determining the fair value of reporting units , we consider the earnings before interest , taxation , depreciation and amortization , or ebitda , and the ebitda multiples applicable to peer and industry comparables of the reporting units . we base our estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain . in addition , we make judgments and assumptions in allocating assets and liabilities to each of our reporting units . the results of our impairment tests during fiscal 2017 indicated that the fair value of our reporting units exceeded their carrying values and therefore our reporting units were not at risk of potential impairment . intangible assets acquired through acquisitions the fair values of the identifiable intangible assets acquired through acquisitions were determined by management using the purchase method of accounting . we completed acquisitions during fiscal 2017 and 2016 where we identified and recognized intangible assets . we have used the relief from royalty method , the multi-period excess earnings method , the income approach and the cost approach to value acquisition-related intangible assets . in so doing , we made assumptions regarding expected future revenues and expenses to develop the underlying forecasts , applied contributory asset charges , discount rates , exchange rates , cash tax charges and useful lives . the valuations were based on information available at the time of the acquisition and the expectations and assumptions that have been deemed reasonable by us . no assurance can be given , however , that the underlying assumptions or events associated with such assets will occur as projected . for these reasons , among others , the actual cash flows may vary from forecasts of future cash flows . to the extent actual cash flows vary , revisions to the useful life or impairment of intangible assets may be necessary . 44 deferred taxation we estimate our tax liability through the calculations done for the determination of our current tax liability , 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 disclosed on our balance sheet . management then has to assess the likelihood that deferred tax assets are more likely than not to be realized in future periods . in the event it is determined that the deferred tax assets to be realized in the future would be in excess of the net recorded amount , an adjustment to the deferred tax asset valuation allowance would be recorded . this adjustment would increase income in the period such determination was made . likewise , should it be determined that all or part of the net deferred tax asset would not be realized in the future , an adjustment to increase the deferred tax asset valuation allowance would be charged to income
| cash flows from operating activities in zar , cash flows from operating activities for fiscal 2017 decreased to $ 97.2 million ( zar 1.3 billion ) from $ 116.6 million ( zar 1.7 billion ) for fiscal 2016. excluding the impact of interest received , interest paid under our korean debt and taxes presented in the table below , the decrease relates primarily to the growth of masterpayment 's working capital finance offering and the separation payment made to our former chief executive officer , offset by an increase in cash from operating activities resulted from improved trading activity during fiscal 2017. during fiscal 2017 , we paid interest of $ 1.5 million under our south korean debt facility . in zar , cash flows from operating activities for fiscal 2016 increased to $ 116.6 million ( zar 1.7 billion ) from $ 135.3 million ( zar 1.5 billion ) for fiscal 2015. excluding the impact of interest received , interest paid under our korean debt and taxes presented in the table below , the increase in cash from operating activities resulted from improved trading activity during fiscal 2016. during fiscal 2016 , we paid interest of $ 3.3 million under our south korean debt facility . during fiscal 2017 , we made a first provisional tax payment of $ 18.2 million ( zar 252.0 million ) and a second provisional tax payment of $ 17.2 million ( zar 221.7 million ) related to our 2017 tax year in south africa . we paid dividend withholding taxes of $ 1.5 million ( zar 21.3 million ) . we also paid taxes totaling $ 8.1 million in other tax jurisdictions , primarily south korea . during fiscal 2016 , we made a first provisional tax payment of $ 16.0 million ( zar 239.9 million ) and a second provisional tax payment of $ 13.7 million ( zar 207.3 million ) related to our 2016 tax year in south africa . we paid dividend withholding taxes of $ 4.2 million ( zar 60.0 million ) . we also paid taxes totaling $ 5.0 million in other tax jurisdictions , primarily south korea .
| 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 in zar , cash flows from operating activities for fiscal 2017 decreased to $ 97.2 million ( zar 1.3 billion ) from $ 116.6 million ( zar 1.7 billion ) for fiscal 2016. excluding the impact of interest received , interest paid under our korean debt and taxes presented in the table below , the decrease relates primarily to the growth of masterpayment 's working capital finance offering and the separation payment made to our former chief executive officer , offset by an increase in cash from operating activities resulted from improved trading activity during fiscal 2017. during fiscal 2017 , we paid interest of $ 1.5 million under our south korean debt facility . in zar , cash flows from operating activities for fiscal 2016 increased to $ 116.6 million ( zar 1.7 billion ) from $ 135.3 million ( zar 1.5 billion ) for fiscal 2015. excluding the impact of interest received , interest paid under our korean debt and taxes presented in the table below , the increase in cash from operating activities resulted from improved trading activity during fiscal 2016. during fiscal 2016 , we paid interest of $ 3.3 million under our south korean debt facility . during fiscal 2017 , we made a first provisional tax payment of $ 18.2 million ( zar 252.0 million ) and a second provisional tax payment of $ 17.2 million ( zar 221.7 million ) related to our 2017 tax year in south africa . we paid dividend withholding taxes of $ 1.5 million ( zar 21.3 million ) . we also paid taxes totaling $ 8.1 million in other tax jurisdictions , primarily south korea . during fiscal 2016 , we made a first provisional tax payment of $ 16.0 million ( zar 239.9 million ) and a second provisional tax payment of $ 13.7 million ( zar 207.3 million ) related to our 2016 tax year in south africa . we paid dividend withholding taxes of $ 4.2 million ( zar 60.0 million ) . we also paid taxes totaling $ 5.0 million in other tax jurisdictions , primarily south korea .
```
Suspicious Activity Report : our net1 solutions business unit is responsible for the worldwide technical development and commercialization of our array of web and mobile applications and payment technologies , such as mvc , chip and gsm licensing and vtu , and has deployed solutions in many countries , including south africa , namibia , nigeria , malawi , cameroon , the philippines , india and colombia . sources of revenue we generate our revenues by charging transaction fees to government agencies , merchants , financial service providers , utility providers , bill issuers , employers , healthcare providers and cardholders ; by providing loans and insurance products and by selling hardware , licensing software and providing related technology services . 39 we have structured our business and our business development efforts around four related but separate approaches to deploying our technology . in our most basic approach , we act as a supplier , selling our equipment , software , and related technology to a customer . the revenue and costs associated with this approach are reflected in our financial inclusion and applied technologies segment . we have found that we have greater revenue and profit opportunities , however , by acting as a service provider instead of a supplier . in this approach we own and operate the ueps ourselves , charging one-time and on-going fees for the use of the system either on a fixed or ad valorem basis . this is the case in south africa , where we distribute welfare grants on behalf of the south african government on a fixed fee basis , but charge a fee on an ad valorem basis for goods and services purchased using our smart card . the revenue and costs associated with this approach are reflected in our south african transaction processing and financial inclusion and applied technologies segments . because our smart cards are designed to enable the delivery of more advanced services and products , we are also willing to supply those services and products directly where the business case is compelling . for instance , we provide short-term loans to our smart card holders . this is an example of the third approach that we have taken . here we can act as the principal in operating a business that can be better delivered through our ueps . we can also act as an agent , for instance , in the provision of insurance policies . in both cases , the revenue and costs associated with this approach are reflected in our financial inclusion and applied technologies segment . in south africa , we also generate fees from debit and credit card transaction processing , the provision of value-added services such as bill payments , mobile top-up and prepaid utility sales , and from providing a payroll transaction management service . the revenue and costs associated with these services are reflected in our south african transaction processing and financial inclusion and applied technologies segments . through ksnet , we earn most of our revenue from payment processing services we provide to approximately 237,000 merchants and to card issuers in south korea through our value-added-network . through masterpayment and transact24 we generate fee revenue through the provision of payment service provider and card issuing and acquiring services in primarily germany , china and the u.s. furthermore , in the u.s. , we earn transaction fees from our customers utilizing our xeorules online real-time management system for healthcare transactions . we also generate fees from our customers who utilize our vcpay technology to generate a unique , one-time use prepaid virtual card number to securely purchase goods and services or perform bill payments in any card-not-present environment . the revenue and costs at of all of these businesses are reflected in our international transaction processing segment . finally , we have business partnerships or joint ventures to introduce our financial technology solutions to markets such as namibia , one credit in nigeria , and mobikwik in india . in these situations , we take an equity position in the business while also acting as a supplier of technology . in evaluating these types of opportunities , we seek to maintain a highly disciplined approach , carefully selecting partners , participating closely in the development of the business plan and remaining actively engaged in the management of the new business . in most instances , the joint venture or partnership has a license to use our proprietary technologies in the specific territory , including the back-end system . we also own 26 % of finbond group limited , or finbond , a south african public company that has a mutual banking license in south africa and owns certain state lenders in the u.s. we account for our equity investments using the equity method . we believe that this flexible approach enables us to drive adoption of our solution while capturing the value created by the implementation of our technology . developments during fiscal 2017 sassa contract extended to march 31 , 2018 our contract signed in february 2012 with sassa was scheduled to expire on march 31 , 2017. at a parliamentary briefing session on february 1 , 2017 , sassa informed the meeting that it would not be ready to assume the payment function on april 1 , 2017. sassa expressed its intention to approach the constitutional court to obtain permission to extend our contract . on february 9 , 2017 , we received a letter from sassa that essentially was an invitation to meet to discuss an interim arrangement to continue with the payment of social welfare grants after march 31 , 2017 , for a limited period . story_separator_special_tag in june 2017 , mr. herman g. kotzé became our chief executive officer , replacing mr. s.c.p . belamant , who retired as chief executive officer . mr. kotzé has been our chief financial officer , secretary and treasurer since 2004 , and will retain these positions until a suitable candidate is identified and engaged to perform these functions . 43 closure of doj investigation related to 2012 sassa contract in july 2017 , we were advised that the u.s. department of justice had closed its investigation concerning possible violations of the fcpa . the investigation commenced in november 2012 , following the award of the sassa national contract to us in january 2012. the closing of the doj investigation follows the united states securities and exchange commission closing their investigation in june 2015 , the dismissal of a shareholder class action law suit by the u.s. southern district in september 2015 , and the south african police service 's directorate for priority crime investigation , the hawks , closing their investigation in november 2015. critical accounting policies our consolidated financial statements have been prepared in accordance with u.s. gaap , which requires management to make estimates and assumptions about future events that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities . as future events and their effects can not be determined with absolute certainty , the determination of estimates requires management 's judgment based on a variety of assumptions and other determinants such as historical experience , current and expected market conditions and certain scientific evaluation techniques . management believes that the following accounting policies are critical due to the degree of estimation required and the impact of these policies on the understanding of the results of our operations and financial condition . business combinations and the recoverability of goodwill a component of our growth strategy has been to acquire and integrate businesses that complement our existing operations . the purchase price of an acquired business is allocated to the tangible and intangible assets acquired and liabilities assumed based upon their estimated fair value at the date of purchase . the difference between the purchase price and the fair value of the net assets acquired is recorded as goodwill . in determining the fair value of assets acquired and liabilities assumed in a business combination , we use various recognized valuation methods , including present value modeling . further , we make assumptions using certain valuation techniques , including discount rates and timing of future cash flows . we review the carrying value of goodwill annually or more frequently if circumstances indicate impairment may have occurred . in performing this review , we are required to estimate the fair value of goodwill that is implied from a valuation of the reporting unit to which the goodwill has been allocated after deducting the fair values of all the identifiable assets and liabilities that form part of the reporting unit . the determination of the fair value of a reporting unit requires us to make significant judgments and estimates . in determining the fair value of reporting units , we consider the earnings before interest , taxation , depreciation and amortization , or ebitda , and the ebitda multiples applicable to peer and industry comparables of the reporting units . we base our estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain . in addition , we make judgments and assumptions in allocating assets and liabilities to each of our reporting units . the results of our impairment tests during fiscal 2017 indicated that the fair value of our reporting units exceeded their carrying values and therefore our reporting units were not at risk of potential impairment . intangible assets acquired through acquisitions the fair values of the identifiable intangible assets acquired through acquisitions were determined by management using the purchase method of accounting . we completed acquisitions during fiscal 2017 and 2016 where we identified and recognized intangible assets . we have used the relief from royalty method , the multi-period excess earnings method , the income approach and the cost approach to value acquisition-related intangible assets . in so doing , we made assumptions regarding expected future revenues and expenses to develop the underlying forecasts , applied contributory asset charges , discount rates , exchange rates , cash tax charges and useful lives . the valuations were based on information available at the time of the acquisition and the expectations and assumptions that have been deemed reasonable by us . no assurance can be given , however , that the underlying assumptions or events associated with such assets will occur as projected . for these reasons , among others , the actual cash flows may vary from forecasts of future cash flows . to the extent actual cash flows vary , revisions to the useful life or impairment of intangible assets may be necessary . 44 deferred taxation we estimate our tax liability through the calculations done for the determination of our current tax liability , 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 disclosed on our balance sheet . management then has to assess the likelihood that deferred tax assets are more likely than not to be realized in future periods . in the event it is determined that the deferred tax assets to be realized in the future would be in excess of the net recorded amount , an adjustment to the deferred tax asset valuation allowance would be recorded . this adjustment would increase income in the period such determination was made . likewise , should it be determined that all or part of the net deferred tax asset would not be realized in the future , an adjustment to increase the deferred tax asset valuation allowance would be charged to income
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2,693 | the company 's total gross revenues declined slightly in fiscal 2010 by approximately 4.8 % or $ 60,928 as compared to 2009 , with net revenues reflecting a decline of only 1 % year over year . the decline to gross revenues is the result of ( 1 ) decreased revenues from leasing activities of $ 30,943 as our sublease operations ceased during the third quarter of 2010 ; and ( 2 ) slightly decreased revenues from functional food premix sales , a decline of 5.7 % or $ 68,175 in gross sales year over year , though net margins ( premix ) reflect a slight increase from 18.6 % ( 2009 ) to 21.8 % ( 2010 ) . the decrease to gross revenues from functional food sales and leasing operations was slightly offset by new sales generated in fact products inc. of $ 38,190 from the sale of natural supplement products with no comparative figures from fiscal 2009. costs of goods sold on wholesale bake mixes decreased slightly from $ 967,218 or 81.3 % ( 2009 ) to $ 876,760 or 78.2 % ( 2010 ) . costs of goods sold on natural supplement products sold by fact products inc were $ 32,733 or approximately 86 % . the company continued to report losses at the close of fiscal 2010. the company is looking to see its first profitable year of operations by the close of fiscal 2011 , with the successful development and launch during fiscal 2010 of bake mix products for new channels of distribution , including the opportunity to sell direct to the consumer and establish a branded market presence with fact group nutrition first products . the company is still unable to cover its operational expenses from net revenues . current year losses are predominantly the result of amortization expenses relating to its intellectual property , interest expenses relating to credit facilities and loans , increased consulting and general operating costs year over year , as well as development and marketing expenses associated with its new product initiatives , with no increase in revenues to mitigate the increased expenses . the company no longer considers its investment in fact an investment in a developing business . fact has a proven track record of year over year revenue since the close of fiscal year 2002 , and expects to see increasing revenue growth . fact 's ability to continue to execute its business plan and achieve profitable operations will be impacted by numerous factors including the following : maintenance of existing customers and acquisition of new customers through supply and licensing agreements ; acceptance of products produced by our customers from our fact group premixes and formulations by the retail consumer ; acceptance of the company 's branded products by the retail consumer ; access to sufficient amounts of key ingredients for uninterrupted supply of the company 's premixes to customers ; protection of the company 's proprietary formulations and continuing development of new commercial formulations ; the onset of competitive products in the retail marketplace and ongoing financing to meet operational overhead until such time as fact through the business of its operating subsidiaries can consistently achieve sufficient sales to meet ongoing expenses and growth initiatives . the company has invested approximately $ 73,000 in the operations of fact products up to the close of the fiscal year ended 2010 and has recorded losses of approximately $ 73,000 related to this investment derived mainly from salaries paid to employees which account for 93 % of the expenditures to december 31 , 2010. initial sales in fact products commenced in november 2010 , and the company expects operations in fact products to generate net profits prior to the close of fiscal 2011 . 16 for the years ended december 31 , 2010 , and 2009 the company incurred operating losses of $ 888,833 and $ 697,608 respectively . fiscal 2010 operations reflect no significant change to combined gross revenues year over year . revenues generated from the sales of functional food premix reflected a slight decline of 5.7 % year over year . revenues generated by leasing operations reflect a decrease from $ 78,382 ( 2009 ) to $ 47,439 ( 2010 ) as a result of the cessation of leasing operations during august 2010 when the company 's subleases expired , bringing a close to revenues generated from leasing operations . the company also recorded revenues from new operations in subsidiary fact products totaling $ 38,190 during fiscal 2010 with no comparative results during the prior fiscal year . associated costs of goods sold relating to functional premix sales decreased $ 967,218 ( 2009 ) to $ 876,760 ( 2010 ) . this decrease was predominantly the result of modest sales from the company 's nutrition first line of retail bake mixes which generate at higher net margin than the company 's wholesale bakery mix sales . the company 's gross margin on the sale of functional bake mixes and products reflects a slight increase from 18.6 % to 21.8 % year over year . fact products generated sales of $ 38,190 with costs of goods sold totaling $ 32,733 and no comparative operations during fiscal 2009. legal fees decreased from $ 40,090 ( 2009 ) to ( $ 2,182 ) ( 2010 ) as the company settled certain outstanding legal matters , and upon settlement was able to negotiate a reduction to accrued legal fees which resulted in the gain reflected on the income statement during fiscal 2010. consulting fees decreased from $ 240,649 ( 2009 ) to $ 202,168 as the company negotiated flat fees for certain consulting services provided at a more favorable rate . administrative expenses increased from $ 392,681 ( 2009 ) to $ 493,985 as the company incurred increased costs related to research and development on new product lines , sample costs both for raw materials and transport fees and substantially increased travel costs during the current year story_separator_special_tag the company 's total gross revenues declined slightly in fiscal 2010 by approximately 4.8 % or $ 60,928 as compared to 2009 , with net revenues reflecting a decline of only 1 % year over year . the decline to gross revenues is the result of ( 1 ) decreased revenues from leasing activities of $ 30,943 as our sublease operations ceased during the third quarter of 2010 ; and ( 2 ) slightly decreased revenues from functional food premix sales , a decline of 5.7 % or $ 68,175 in gross sales year over year , though net margins ( premix ) reflect a slight increase from 18.6 % ( 2009 ) to 21.8 % ( 2010 ) . the decrease to gross revenues from functional food sales and leasing operations was slightly offset by new sales generated in fact products inc. of $ 38,190 from the sale of natural supplement products with no comparative figures from fiscal 2009. costs of goods sold on wholesale bake mixes decreased slightly from $ 967,218 or 81.3 % ( 2009 ) to $ 876,760 or 78.2 % ( 2010 ) . costs of goods sold on natural supplement products sold by fact products inc were $ 32,733 or approximately 86 % . the company continued to report losses at the close of fiscal 2010. the company is looking to see its first profitable year of operations by the close of fiscal 2011 , with the successful development and launch during fiscal 2010 of bake mix products for new channels of distribution , including the opportunity to sell direct to the consumer and establish a branded market presence with fact group nutrition first products . the company is still unable to cover its operational expenses from net revenues . current year losses are predominantly the result of amortization expenses relating to its intellectual property , interest expenses relating to credit facilities and loans , increased consulting and general operating costs year over year , as well as development and marketing expenses associated with its new product initiatives , with no increase in revenues to mitigate the increased expenses . the company no longer considers its investment in fact an investment in a developing business . fact has a proven track record of year over year revenue since the close of fiscal year 2002 , and expects to see increasing revenue growth . fact 's ability to continue to execute its business plan and achieve profitable operations will be impacted by numerous factors including the following : maintenance of existing customers and acquisition of new customers through supply and licensing agreements ; acceptance of products produced by our customers from our fact group premixes and formulations by the retail consumer ; acceptance of the company 's branded products by the retail consumer ; access to sufficient amounts of key ingredients for uninterrupted supply of the company 's premixes to customers ; protection of the company 's proprietary formulations and continuing development of new commercial formulations ; the onset of competitive products in the retail marketplace and ongoing financing to meet operational overhead until such time as fact through the business of its operating subsidiaries can consistently achieve sufficient sales to meet ongoing expenses and growth initiatives . the company has invested approximately $ 73,000 in the operations of fact products up to the close of the fiscal year ended 2010 and has recorded losses of approximately $ 73,000 related to this investment derived mainly from salaries paid to employees which account for 93 % of the expenditures to december 31 , 2010. initial sales in fact products commenced in november 2010 , and the company expects operations in fact products to generate net profits prior to the close of fiscal 2011 . 16 for the years ended december 31 , 2010 , and 2009 the company incurred operating losses of $ 888,833 and $ 697,608 respectively . fiscal 2010 operations reflect no significant change to combined gross revenues year over year . revenues generated from the sales of functional food premix reflected a slight decline of 5.7 % year over year . revenues generated by leasing operations reflect a decrease from $ 78,382 ( 2009 ) to $ 47,439 ( 2010 ) as a result of the cessation of leasing operations during august 2010 when the company 's subleases expired , bringing a close to revenues generated from leasing operations . the company also recorded revenues from new operations in subsidiary fact products totaling $ 38,190 during fiscal 2010 with no comparative results during the prior fiscal year . associated costs of goods sold relating to functional premix sales decreased $ 967,218 ( 2009 ) to $ 876,760 ( 2010 ) . this decrease was predominantly the result of modest sales from the company 's nutrition first line of retail bake mixes which generate at higher net margin than the company 's wholesale bakery mix sales . the company 's gross margin on the sale of functional bake mixes and products reflects a slight increase from 18.6 % to 21.8 % year over year . fact products generated sales of $ 38,190 with costs of goods sold totaling $ 32,733 and no comparative operations during fiscal 2009. legal fees decreased from $ 40,090 ( 2009 ) to ( $ 2,182 ) ( 2010 ) as the company settled certain outstanding legal matters , and upon settlement was able to negotiate a reduction to accrued legal fees which resulted in the gain reflected on the income statement during fiscal 2010. consulting fees decreased from $ 240,649 ( 2009 ) to $ 202,168 as the company negotiated flat fees for certain consulting services provided at a more favorable rate . administrative expenses increased from $ 392,681 ( 2009 ) to $ 493,985 as the company incurred increased costs related to research and development on new product lines , sample costs both for raw materials and transport fees and substantially increased travel costs during the current year
| liquidity and capital resources as of december 31 , 2010 , we have a total of $ 604,309 ( $ 186,925 – 2009 ) in current assets , of which $ 323,198 ( $ 45,736 – 2009 ) is in the form of cash , and $ 200,371 ( $ 133,915 – 2009 ) is in the form of accounts receivable . our current liabilities total $ 2,104,995 ( $ 1,144,991 – 2009 ) , resulting in a working capital deficit of $ 1,500,686 ( $ 958,066 ) . the company 's negative working capital increased due to the addition of loans from both related and arm 's length third parties , an increase to the current portion of long term debt payable and an increase to accounts payable as senior officers and certain consultants continued to accrue salaries without payment . during 2010 the company 's primary sources of working capital have come from revenues generated from our functional foods business , new revenues from sales in our natural supplement products division , monthly rental income ( up until august 2010 ) and the net proceeds from : · $ 634,988 in loan proceeds from an arms ' length third parties , of which amount $ 249,250 is an operating line of credit for use in financing accounts receivable ; · $ 61,147 in loan proceeds from a related party ; · $ 131,500 in proceeds from the sale of common stock through private placement . this working capital deficit places the company in a position of having insufficient resources to meet our short term and projected commitments , as well as insufficient to further our business plan in the absence of additional funding . currently the company and its subsidiaries operate in loss positions with insufficient revenues to offset the operational expenses . the company will be required to generate additional revenues through sales , raise funds through loans or equity offerings .
| 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 , 2010 , we have a total of $ 604,309 ( $ 186,925 – 2009 ) in current assets , of which $ 323,198 ( $ 45,736 – 2009 ) is in the form of cash , and $ 200,371 ( $ 133,915 – 2009 ) is in the form of accounts receivable . our current liabilities total $ 2,104,995 ( $ 1,144,991 – 2009 ) , resulting in a working capital deficit of $ 1,500,686 ( $ 958,066 ) . the company 's negative working capital increased due to the addition of loans from both related and arm 's length third parties , an increase to the current portion of long term debt payable and an increase to accounts payable as senior officers and certain consultants continued to accrue salaries without payment . during 2010 the company 's primary sources of working capital have come from revenues generated from our functional foods business , new revenues from sales in our natural supplement products division , monthly rental income ( up until august 2010 ) and the net proceeds from : · $ 634,988 in loan proceeds from an arms ' length third parties , of which amount $ 249,250 is an operating line of credit for use in financing accounts receivable ; · $ 61,147 in loan proceeds from a related party ; · $ 131,500 in proceeds from the sale of common stock through private placement . this working capital deficit places the company in a position of having insufficient resources to meet our short term and projected commitments , as well as insufficient to further our business plan in the absence of additional funding . currently the company and its subsidiaries operate in loss positions with insufficient revenues to offset the operational expenses . the company will be required to generate additional revenues through sales , raise funds through loans or equity offerings .
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Suspicious Activity Report : the company 's total gross revenues declined slightly in fiscal 2010 by approximately 4.8 % or $ 60,928 as compared to 2009 , with net revenues reflecting a decline of only 1 % year over year . the decline to gross revenues is the result of ( 1 ) decreased revenues from leasing activities of $ 30,943 as our sublease operations ceased during the third quarter of 2010 ; and ( 2 ) slightly decreased revenues from functional food premix sales , a decline of 5.7 % or $ 68,175 in gross sales year over year , though net margins ( premix ) reflect a slight increase from 18.6 % ( 2009 ) to 21.8 % ( 2010 ) . the decrease to gross revenues from functional food sales and leasing operations was slightly offset by new sales generated in fact products inc. of $ 38,190 from the sale of natural supplement products with no comparative figures from fiscal 2009. costs of goods sold on wholesale bake mixes decreased slightly from $ 967,218 or 81.3 % ( 2009 ) to $ 876,760 or 78.2 % ( 2010 ) . costs of goods sold on natural supplement products sold by fact products inc were $ 32,733 or approximately 86 % . the company continued to report losses at the close of fiscal 2010. the company is looking to see its first profitable year of operations by the close of fiscal 2011 , with the successful development and launch during fiscal 2010 of bake mix products for new channels of distribution , including the opportunity to sell direct to the consumer and establish a branded market presence with fact group nutrition first products . the company is still unable to cover its operational expenses from net revenues . current year losses are predominantly the result of amortization expenses relating to its intellectual property , interest expenses relating to credit facilities and loans , increased consulting and general operating costs year over year , as well as development and marketing expenses associated with its new product initiatives , with no increase in revenues to mitigate the increased expenses . the company no longer considers its investment in fact an investment in a developing business . fact has a proven track record of year over year revenue since the close of fiscal year 2002 , and expects to see increasing revenue growth . fact 's ability to continue to execute its business plan and achieve profitable operations will be impacted by numerous factors including the following : maintenance of existing customers and acquisition of new customers through supply and licensing agreements ; acceptance of products produced by our customers from our fact group premixes and formulations by the retail consumer ; acceptance of the company 's branded products by the retail consumer ; access to sufficient amounts of key ingredients for uninterrupted supply of the company 's premixes to customers ; protection of the company 's proprietary formulations and continuing development of new commercial formulations ; the onset of competitive products in the retail marketplace and ongoing financing to meet operational overhead until such time as fact through the business of its operating subsidiaries can consistently achieve sufficient sales to meet ongoing expenses and growth initiatives . the company has invested approximately $ 73,000 in the operations of fact products up to the close of the fiscal year ended 2010 and has recorded losses of approximately $ 73,000 related to this investment derived mainly from salaries paid to employees which account for 93 % of the expenditures to december 31 , 2010. initial sales in fact products commenced in november 2010 , and the company expects operations in fact products to generate net profits prior to the close of fiscal 2011 . 16 for the years ended december 31 , 2010 , and 2009 the company incurred operating losses of $ 888,833 and $ 697,608 respectively . fiscal 2010 operations reflect no significant change to combined gross revenues year over year . revenues generated from the sales of functional food premix reflected a slight decline of 5.7 % year over year . revenues generated by leasing operations reflect a decrease from $ 78,382 ( 2009 ) to $ 47,439 ( 2010 ) as a result of the cessation of leasing operations during august 2010 when the company 's subleases expired , bringing a close to revenues generated from leasing operations . the company also recorded revenues from new operations in subsidiary fact products totaling $ 38,190 during fiscal 2010 with no comparative results during the prior fiscal year . associated costs of goods sold relating to functional premix sales decreased $ 967,218 ( 2009 ) to $ 876,760 ( 2010 ) . this decrease was predominantly the result of modest sales from the company 's nutrition first line of retail bake mixes which generate at higher net margin than the company 's wholesale bakery mix sales . the company 's gross margin on the sale of functional bake mixes and products reflects a slight increase from 18.6 % to 21.8 % year over year . fact products generated sales of $ 38,190 with costs of goods sold totaling $ 32,733 and no comparative operations during fiscal 2009. legal fees decreased from $ 40,090 ( 2009 ) to ( $ 2,182 ) ( 2010 ) as the company settled certain outstanding legal matters , and upon settlement was able to negotiate a reduction to accrued legal fees which resulted in the gain reflected on the income statement during fiscal 2010. consulting fees decreased from $ 240,649 ( 2009 ) to $ 202,168 as the company negotiated flat fees for certain consulting services provided at a more favorable rate . administrative expenses increased from $ 392,681 ( 2009 ) to $ 493,985 as the company incurred increased costs related to research and development on new product lines , sample costs both for raw materials and transport fees and substantially increased travel costs during the current year story_separator_special_tag the company 's total gross revenues declined slightly in fiscal 2010 by approximately 4.8 % or $ 60,928 as compared to 2009 , with net revenues reflecting a decline of only 1 % year over year . the decline to gross revenues is the result of ( 1 ) decreased revenues from leasing activities of $ 30,943 as our sublease operations ceased during the third quarter of 2010 ; and ( 2 ) slightly decreased revenues from functional food premix sales , a decline of 5.7 % or $ 68,175 in gross sales year over year , though net margins ( premix ) reflect a slight increase from 18.6 % ( 2009 ) to 21.8 % ( 2010 ) . the decrease to gross revenues from functional food sales and leasing operations was slightly offset by new sales generated in fact products inc. of $ 38,190 from the sale of natural supplement products with no comparative figures from fiscal 2009. costs of goods sold on wholesale bake mixes decreased slightly from $ 967,218 or 81.3 % ( 2009 ) to $ 876,760 or 78.2 % ( 2010 ) . costs of goods sold on natural supplement products sold by fact products inc were $ 32,733 or approximately 86 % . the company continued to report losses at the close of fiscal 2010. the company is looking to see its first profitable year of operations by the close of fiscal 2011 , with the successful development and launch during fiscal 2010 of bake mix products for new channels of distribution , including the opportunity to sell direct to the consumer and establish a branded market presence with fact group nutrition first products . the company is still unable to cover its operational expenses from net revenues . current year losses are predominantly the result of amortization expenses relating to its intellectual property , interest expenses relating to credit facilities and loans , increased consulting and general operating costs year over year , as well as development and marketing expenses associated with its new product initiatives , with no increase in revenues to mitigate the increased expenses . the company no longer considers its investment in fact an investment in a developing business . fact has a proven track record of year over year revenue since the close of fiscal year 2002 , and expects to see increasing revenue growth . fact 's ability to continue to execute its business plan and achieve profitable operations will be impacted by numerous factors including the following : maintenance of existing customers and acquisition of new customers through supply and licensing agreements ; acceptance of products produced by our customers from our fact group premixes and formulations by the retail consumer ; acceptance of the company 's branded products by the retail consumer ; access to sufficient amounts of key ingredients for uninterrupted supply of the company 's premixes to customers ; protection of the company 's proprietary formulations and continuing development of new commercial formulations ; the onset of competitive products in the retail marketplace and ongoing financing to meet operational overhead until such time as fact through the business of its operating subsidiaries can consistently achieve sufficient sales to meet ongoing expenses and growth initiatives . the company has invested approximately $ 73,000 in the operations of fact products up to the close of the fiscal year ended 2010 and has recorded losses of approximately $ 73,000 related to this investment derived mainly from salaries paid to employees which account for 93 % of the expenditures to december 31 , 2010. initial sales in fact products commenced in november 2010 , and the company expects operations in fact products to generate net profits prior to the close of fiscal 2011 . 16 for the years ended december 31 , 2010 , and 2009 the company incurred operating losses of $ 888,833 and $ 697,608 respectively . fiscal 2010 operations reflect no significant change to combined gross revenues year over year . revenues generated from the sales of functional food premix reflected a slight decline of 5.7 % year over year . revenues generated by leasing operations reflect a decrease from $ 78,382 ( 2009 ) to $ 47,439 ( 2010 ) as a result of the cessation of leasing operations during august 2010 when the company 's subleases expired , bringing a close to revenues generated from leasing operations . the company also recorded revenues from new operations in subsidiary fact products totaling $ 38,190 during fiscal 2010 with no comparative results during the prior fiscal year . associated costs of goods sold relating to functional premix sales decreased $ 967,218 ( 2009 ) to $ 876,760 ( 2010 ) . this decrease was predominantly the result of modest sales from the company 's nutrition first line of retail bake mixes which generate at higher net margin than the company 's wholesale bakery mix sales . the company 's gross margin on the sale of functional bake mixes and products reflects a slight increase from 18.6 % to 21.8 % year over year . fact products generated sales of $ 38,190 with costs of goods sold totaling $ 32,733 and no comparative operations during fiscal 2009. legal fees decreased from $ 40,090 ( 2009 ) to ( $ 2,182 ) ( 2010 ) as the company settled certain outstanding legal matters , and upon settlement was able to negotiate a reduction to accrued legal fees which resulted in the gain reflected on the income statement during fiscal 2010. consulting fees decreased from $ 240,649 ( 2009 ) to $ 202,168 as the company negotiated flat fees for certain consulting services provided at a more favorable rate . administrative expenses increased from $ 392,681 ( 2009 ) to $ 493,985 as the company incurred increased costs related to research and development on new product lines , sample costs both for raw materials and transport fees and substantially increased travel costs during the current year
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2,694 | expansion within the current location is not viable , however management may seek to make acquisitions of established businesses , or , if a desirable location becomes available , we may elect to expand the concept . locations would be sought in heavily trafficked areas , such as within an airport , train station , etc . we have not found any such location as of the date of this filing and no agreements are in place . results of operations - for the years ended december 31 , 2012 and 2011 , the company had net income ( loss ) from operations of approximately ( $ 315,000 ) and $ 42,000 , respectively . total revenues - for the years ended december 31 , 2012 and 2011 , the company had total sales of approximately $ 1,118,500 and $ 1,078,000 respectively , for an increase of approximately $ 40,500 or 4 % . management believes revenues will continue to grow in the future as airport traffic increases . costs and expenses - costs of revenues , which include the costs of food , beverage , and kitchen supplies increased 3.3 % as a percentage of sales from 2011 to 2012. this increase can be attributed to the higher cost of certain food items . the cost of labor increased less than 2 % as a percentage of sales from 2011 to 2012. there were no sales for a little over three months in 2011 while the restaurant was closed for renovations . however , managers were paid during this time in order to have a company representative on location at all times during construction and there were some part-time employees paid to help clean out the restaurant just prior to construction and were also paid to help restock the restaurant prior to reopening . once renovations were completed the restaurant returned to operating with its full staff throughout all of 2012. the cost of rent increased approximately 4 % as a percentage of sales from 2011 to 2012. e.a.j . phl airport pays $ 14,000 per month basic rent plus 20 % of gross revenues above $ 1,200,000 under the lease . the rent is a fixed cost and sales are variable , so the total rent paid varies from year to year . depreciation expense increased approximately $ 23,000 from 2011 to 2012. this increase is attributable to the 2011 renovation which resulted in additions to leasehold improvements and the purchase of new equipment . general and administrative expenses increased 20.8 % as a percentage of sales from 2011 to 2012. this increase is a combination of several factors . while the restaurant was closed for three months in 2011 for remodeling , there was a decrease of general and administrative expenses and other professional fees . in 2012 these expenses naturally increased with the return to twelve months of operations . in addition , the company issued stock for services totaling $ 180,300. interest income and dividend income decreased from 2011 to 2012. interest income decreased $ 1,540 and , dividend income decreased $ 27 from 2011 to 2012. there was less interest due to lower interest rates and lower cash balances . interest expense decreased $ 8,721 from 2011 to 2012. this decrease is due to the decrease in interest being accrued on notes payable as some of those notes were partially repaid or paid in full . the unrealized gain ( loss ) on trading securities increased from a loss of $ 105,026 in 2011 to a gain of $ 97,977 in 2012. this change was due to the increased value of trading securities by the end of 2012. the realized gain ( loss ) from the sale of marketable securities changed from a gain of $ 54,317 in 2011 to a loss of $ 80,456 in 2012. this change was due to the sale of certain securities earlier in the year when the price was lower . 8 during 2012 , the company recognized an extraordinary gain of $ 2,354,988 on the extinguishment of debt for the write-off of convertible debentures , and loans and accounts payable related to subsidiaries that are no longer in business . story_separator_special_tag reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage . the impact of these events could also make it more difficult for us to attract and retain qualified persons to serve on the company 's board of directors , or as executive officers . we are presently evaluating and monitoring developments with respect to these new and proposed rules , and we can not predict or estimate the amount of the additional costs we may incur or the timing of such costs . in may 2011 , fasb issued asu 2011-04 “ fair value measurement ( topic 820 ) . ” the amendments in asu 2011-04 change the wording used to describe the requirements in u.s. gaap for measuring fair value and for disclosing information about fair value measurements . the amendments include ( 1 ) those that clarify the board 's intent about the application of existing fair value measurement and disclosure requirements and ( 2 ) those that change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements . in addition , to improve consistency in application across jurisdictions some changes in wording are necessary to ensure that u.s. gaap and ifrs fair value measurement and disclosure requirements are described in the same way ( for example , using the word shall rather than should to describe the requirements in u.s. gaap ) . story_separator_special_tag the amendments that clarify the board 's intent about the application of existing fair value measurement and disclosure requirements include ( a ) the application of the highest and best use and valuation premise concepts , ( b ) measuring the fair value of an instrument classified in a reporting entity 's shareholders ' equity , and ( c ) disclosures about fair value measurements that clarify that a reporting entity should disclose quantitative information about the unobservable inputs used in a fair value measurement that is categorized within level 3 of the fair value hierarchy . the amendments in this update that change a particular principle or requirement for measuring fair value or disclosing information about fair value measurements include ( a ) measuring the fair value of financial instruments that are managed within a portfolio , ( b ) application of premiums and discounts in a fair value measurement , and ( c ) additional disclosures about fair value measurements that expand the disclosures about fair value measurements . the amendments in asu 2011-04 are to be applied prospectively . for public entities , the amendments are effective during interim and annual periods beginning after december 15 , 2011. early application by public entities is not permitted . management does not expect the adoption of asu 2011-04 to have a material effect on the company 's financial position , results of operations or cash flows . in june 2011 , fasb issued asu 2011-05 “ comprehensive income ( topic 220 ) . ” under the amendments in this update , an entity has the option to present the total of comprehensive income , the components of net income , and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements . in both choices , an entity is required to present each component of net income along with total net income , each component of other comprehensive income along with a total for other comprehensive income , and a total amount for comprehensive income . in a single continuous statement , the entity is required to present the components of net income and total net income , the components of other comprehensive income and a total for other comprehensive income , along with the total of comprehensive income in that statement . in the two-statement approach , an entity is required to present components of net income and total net income in the statement of net income . the statement of other comprehensive income should immediately follow the statement of net income and include the components of other comprehensive income and a total for other comprehensive income , along with a total for comprehensive income . the amendments in this update should be applied retrospectively . for public entities , the amendments are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2011. early adoption is permitted . the amendments do not require any transition disclosures . management elected early adoption and has presented the total of comprehensive income , the components of net income , and the components of other comprehensive income in a single continuous statement of comprehensive income . 10 in december 2011 , fasb issued asu 2011-12 “ comprehensive income ( topic 220 ) . ” in order to defer only those changes in update 2011-05 that relate to the presentation of reclassification adjustments , the paragraphs in this update supersede certain pending paragraphs in update 2011-05. the amendments are being made to allow the board time to re-deliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented . while the board is considering the operational concerns about the presentation requirements for reclassification adjustments and the needs of financial statement users for additional information about reclassification adjustments , entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before update 2011-05. all other requirements in update 2011-05 are not affected by this update , including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements . public entities should apply these requirements for fiscal years , and interim periods within those years , beginning after december 15 , 2011. management does not expect the adoption of asu 2011-11 to have a material effect on the company 's financial position , results of operations or cash flows . in july 2012 , the fasb issued asu 2012-02 , `` intangibles -goodwill and other ( topic 350 ) : testing indefinite-lived intangible assets for impairment `` in accounting standards update no . 2012-02. this update amends asu 2011-08 , intangibles -goodwill and other ( topic 350 ) : testing indefinite-lived intangible assets for impairment and permits an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with subtopic 350-30 , intangibles -goodwill and other -general intangibles other than goodwill . the amendments are effective for annual and interim impairment tests performed for fiscal years beginning after september 15 , 2012. early adoption is permitted , including for annual and interim impairment tests performed as of a date before july 27 , 2012 , if a public entity 's financial statements for the most recent annual or interim period have not yet been issued or , for nonpublic entities , have not yet been made available for issuance . the adoption of asu 2012-02 is not expected to have a material impact on our financial position or results of operations . in october 2012 , the financial accounting standards board ( fasb
| liquidity and capital resources as of december 31 , 2012 , the company has a working capital deficit of $ 1,641,650. the company 's continued existence is dependent upon its ability to execute its operating plan and to obtain additional debt or equity financing . there can be no assurance the necessary debt or equity financing will be available , or will be available on terms acceptable to the company . management 's plans include searching for and opening new restaurants in the future , utilizing company assets to maximize shareholder value and obtaining additional financing to fund payment of obligations and to provide working capital for operations and to finance future growth . the company is actively pursuing alternative financing and has had discussions with various third parties , although no firm commitments have been obtained . in the interim , shareholders of the company have committed to meeting its operating expenses . management believes these efforts will generate sufficient cash flows from future operations to pay the company 's obligations and realize other assets . there is no assurance any of these transactions will occur . the company has met its capital requirements through the sale of its common stock , convertible preferred stock , convertible debentures and notes payable . since the company 's re-activation in january , 1997 , the company 's principal capital requirements have been the funding of ( i ) the development of the company and its 1950 's diner style concept , ( ii ) the construction of its existing units and the acquisition of the furniture , fixtures and equipment therein and ( iii ) towards the development of additional units . during 2012 and 2011 , the company used $ 6,912 and $ 333,901 , respectfully , in cash from investing activities from the purchase and sale of marketable equity securities and the purchase of property and equipment . as of december 31 , 2012 , the company owns marketable securities valued at $ 492,876. during 2012 and 2011 , the company repaid $ 252,000 and $ 220,000 in related party loans from past 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 and capital resources as of december 31 , 2012 , the company has a working capital deficit of $ 1,641,650. the company 's continued existence is dependent upon its ability to execute its operating plan and to obtain additional debt or equity financing . there can be no assurance the necessary debt or equity financing will be available , or will be available on terms acceptable to the company . management 's plans include searching for and opening new restaurants in the future , utilizing company assets to maximize shareholder value and obtaining additional financing to fund payment of obligations and to provide working capital for operations and to finance future growth . the company is actively pursuing alternative financing and has had discussions with various third parties , although no firm commitments have been obtained . in the interim , shareholders of the company have committed to meeting its operating expenses . management believes these efforts will generate sufficient cash flows from future operations to pay the company 's obligations and realize other assets . there is no assurance any of these transactions will occur . the company has met its capital requirements through the sale of its common stock , convertible preferred stock , convertible debentures and notes payable . since the company 's re-activation in january , 1997 , the company 's principal capital requirements have been the funding of ( i ) the development of the company and its 1950 's diner style concept , ( ii ) the construction of its existing units and the acquisition of the furniture , fixtures and equipment therein and ( iii ) towards the development of additional units . during 2012 and 2011 , the company used $ 6,912 and $ 333,901 , respectfully , in cash from investing activities from the purchase and sale of marketable equity securities and the purchase of property and equipment . as of december 31 , 2012 , the company owns marketable securities valued at $ 492,876. during 2012 and 2011 , the company repaid $ 252,000 and $ 220,000 in related party loans from past years .
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Suspicious Activity Report : expansion within the current location is not viable , however management may seek to make acquisitions of established businesses , or , if a desirable location becomes available , we may elect to expand the concept . locations would be sought in heavily trafficked areas , such as within an airport , train station , etc . we have not found any such location as of the date of this filing and no agreements are in place . results of operations - for the years ended december 31 , 2012 and 2011 , the company had net income ( loss ) from operations of approximately ( $ 315,000 ) and $ 42,000 , respectively . total revenues - for the years ended december 31 , 2012 and 2011 , the company had total sales of approximately $ 1,118,500 and $ 1,078,000 respectively , for an increase of approximately $ 40,500 or 4 % . management believes revenues will continue to grow in the future as airport traffic increases . costs and expenses - costs of revenues , which include the costs of food , beverage , and kitchen supplies increased 3.3 % as a percentage of sales from 2011 to 2012. this increase can be attributed to the higher cost of certain food items . the cost of labor increased less than 2 % as a percentage of sales from 2011 to 2012. there were no sales for a little over three months in 2011 while the restaurant was closed for renovations . however , managers were paid during this time in order to have a company representative on location at all times during construction and there were some part-time employees paid to help clean out the restaurant just prior to construction and were also paid to help restock the restaurant prior to reopening . once renovations were completed the restaurant returned to operating with its full staff throughout all of 2012. the cost of rent increased approximately 4 % as a percentage of sales from 2011 to 2012. e.a.j . phl airport pays $ 14,000 per month basic rent plus 20 % of gross revenues above $ 1,200,000 under the lease . the rent is a fixed cost and sales are variable , so the total rent paid varies from year to year . depreciation expense increased approximately $ 23,000 from 2011 to 2012. this increase is attributable to the 2011 renovation which resulted in additions to leasehold improvements and the purchase of new equipment . general and administrative expenses increased 20.8 % as a percentage of sales from 2011 to 2012. this increase is a combination of several factors . while the restaurant was closed for three months in 2011 for remodeling , there was a decrease of general and administrative expenses and other professional fees . in 2012 these expenses naturally increased with the return to twelve months of operations . in addition , the company issued stock for services totaling $ 180,300. interest income and dividend income decreased from 2011 to 2012. interest income decreased $ 1,540 and , dividend income decreased $ 27 from 2011 to 2012. there was less interest due to lower interest rates and lower cash balances . interest expense decreased $ 8,721 from 2011 to 2012. this decrease is due to the decrease in interest being accrued on notes payable as some of those notes were partially repaid or paid in full . the unrealized gain ( loss ) on trading securities increased from a loss of $ 105,026 in 2011 to a gain of $ 97,977 in 2012. this change was due to the increased value of trading securities by the end of 2012. the realized gain ( loss ) from the sale of marketable securities changed from a gain of $ 54,317 in 2011 to a loss of $ 80,456 in 2012. this change was due to the sale of certain securities earlier in the year when the price was lower . 8 during 2012 , the company recognized an extraordinary gain of $ 2,354,988 on the extinguishment of debt for the write-off of convertible debentures , and loans and accounts payable related to subsidiaries that are no longer in business . story_separator_special_tag reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage . the impact of these events could also make it more difficult for us to attract and retain qualified persons to serve on the company 's board of directors , or as executive officers . we are presently evaluating and monitoring developments with respect to these new and proposed rules , and we can not predict or estimate the amount of the additional costs we may incur or the timing of such costs . in may 2011 , fasb issued asu 2011-04 “ fair value measurement ( topic 820 ) . ” the amendments in asu 2011-04 change the wording used to describe the requirements in u.s. gaap for measuring fair value and for disclosing information about fair value measurements . the amendments include ( 1 ) those that clarify the board 's intent about the application of existing fair value measurement and disclosure requirements and ( 2 ) those that change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements . in addition , to improve consistency in application across jurisdictions some changes in wording are necessary to ensure that u.s. gaap and ifrs fair value measurement and disclosure requirements are described in the same way ( for example , using the word shall rather than should to describe the requirements in u.s. gaap ) . story_separator_special_tag the amendments that clarify the board 's intent about the application of existing fair value measurement and disclosure requirements include ( a ) the application of the highest and best use and valuation premise concepts , ( b ) measuring the fair value of an instrument classified in a reporting entity 's shareholders ' equity , and ( c ) disclosures about fair value measurements that clarify that a reporting entity should disclose quantitative information about the unobservable inputs used in a fair value measurement that is categorized within level 3 of the fair value hierarchy . the amendments in this update that change a particular principle or requirement for measuring fair value or disclosing information about fair value measurements include ( a ) measuring the fair value of financial instruments that are managed within a portfolio , ( b ) application of premiums and discounts in a fair value measurement , and ( c ) additional disclosures about fair value measurements that expand the disclosures about fair value measurements . the amendments in asu 2011-04 are to be applied prospectively . for public entities , the amendments are effective during interim and annual periods beginning after december 15 , 2011. early application by public entities is not permitted . management does not expect the adoption of asu 2011-04 to have a material effect on the company 's financial position , results of operations or cash flows . in june 2011 , fasb issued asu 2011-05 “ comprehensive income ( topic 220 ) . ” under the amendments in this update , an entity has the option to present the total of comprehensive income , the components of net income , and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements . in both choices , an entity is required to present each component of net income along with total net income , each component of other comprehensive income along with a total for other comprehensive income , and a total amount for comprehensive income . in a single continuous statement , the entity is required to present the components of net income and total net income , the components of other comprehensive income and a total for other comprehensive income , along with the total of comprehensive income in that statement . in the two-statement approach , an entity is required to present components of net income and total net income in the statement of net income . the statement of other comprehensive income should immediately follow the statement of net income and include the components of other comprehensive income and a total for other comprehensive income , along with a total for comprehensive income . the amendments in this update should be applied retrospectively . for public entities , the amendments are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2011. early adoption is permitted . the amendments do not require any transition disclosures . management elected early adoption and has presented the total of comprehensive income , the components of net income , and the components of other comprehensive income in a single continuous statement of comprehensive income . 10 in december 2011 , fasb issued asu 2011-12 “ comprehensive income ( topic 220 ) . ” in order to defer only those changes in update 2011-05 that relate to the presentation of reclassification adjustments , the paragraphs in this update supersede certain pending paragraphs in update 2011-05. the amendments are being made to allow the board time to re-deliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented . while the board is considering the operational concerns about the presentation requirements for reclassification adjustments and the needs of financial statement users for additional information about reclassification adjustments , entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before update 2011-05. all other requirements in update 2011-05 are not affected by this update , including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements . public entities should apply these requirements for fiscal years , and interim periods within those years , beginning after december 15 , 2011. management does not expect the adoption of asu 2011-11 to have a material effect on the company 's financial position , results of operations or cash flows . in july 2012 , the fasb issued asu 2012-02 , `` intangibles -goodwill and other ( topic 350 ) : testing indefinite-lived intangible assets for impairment `` in accounting standards update no . 2012-02. this update amends asu 2011-08 , intangibles -goodwill and other ( topic 350 ) : testing indefinite-lived intangible assets for impairment and permits an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with subtopic 350-30 , intangibles -goodwill and other -general intangibles other than goodwill . the amendments are effective for annual and interim impairment tests performed for fiscal years beginning after september 15 , 2012. early adoption is permitted , including for annual and interim impairment tests performed as of a date before july 27 , 2012 , if a public entity 's financial statements for the most recent annual or interim period have not yet been issued or , for nonpublic entities , have not yet been made available for issuance . the adoption of asu 2012-02 is not expected to have a material impact on our financial position or results of operations . in october 2012 , the financial accounting standards board ( fasb
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2,695 | the federal funds rate has been at a range of zero to 0.25 % since december 2008. our combined funds held for clients and corporate investment portfolios earned an average rate of return of 1.1 % for fiscal 2012 , compared to 1.3 % for fiscal 2011 and 1.5 % for fiscal 2010. highlights of our financial results for fiscal 2012 compared to fiscal 2011 are as follows : payroll service revenue increased 5 % to $ 1.5 billion . human resource services revenue increased 13 % to $ 676.2 million . interest on funds held for clients decreased 9 % to $ 43.6 million . total revenue increased 7 % to $ 2.2 billion . operating income increased 9 % to $ 853.9 million , and operating income , net of certain items , increased 10 % to $ 810.3 million . refer to the non-gaap financial measure discussion on the following page for further information on operating income , net of certain items . net income and diluted earnings per share each increased 6 % to $ 548.0 million and $ 1.51 per share , respectively . dividends of $ 460.5 million were paid to stockholders , representing 84 % of net income . our results for fiscal 2012 benefited from the inclusion of surepayroll , inc. ( surepayroll ) , a provider of payroll processing for small businesses , acquired on february 8 , 2011 , and eplan services , inc. ( eplan ) , a provider of recordkeeping and administrative solutions to the defined contribution marketplace , acquired on may 3 , 2011. these acquisitions in fiscal 2011 and an immaterial business acquisition in fiscal 2012 contributed approximately 2 % in total revenue growth for fiscal 2012 . 14 non-gaap financial measure in addition to reporting operating income , a united states ( u.s. ) generally accepted accounting principle ( gaap ) measure , we present operating income , net of certain items , which is a non-gaap measure . we believe operating income , net of certain items , is an appropriate additional measure , as it is an indicator of our core business operations performance period over period . it is also the basis of the measure used internally for establishing the following year 's targets and measuring management 's performance in connection with certain performance-based compensation payments and awards . operating income , net of certain items , excludes interest on funds held for clients and the expense charge in fiscal 2010 to increase the litigation reserve . interest on funds held for clients is an adjustment to operating income due to the volatility of interest rates , which are not within the control of management . the expense charge to increase the litigation reserve is also an adjustment to operating income due to its unusual and infrequent nature . it is outside the normal course of our operations and obscures the comparability of performance period over period . operating income , net of certain items , is not calculated through the application of gaap and is not the required form of disclosure by the securities and exchange commission . as such , it should not be considered as a substitute for the gaap measure of operating income and , therefore , should not be used in isolation , but in conjunction with the gaap measure . the use of any non-gaap measure may produce results that vary from the gaap measure and may not be comparable to a similarly defined non-gaap measure used by other companies . business outlook our client base totaled approximately 567,000 clients as of may 31 , 2012 , compared to approximately 564,000 clients as of may 31 , 2011 , and approximately 536,000 clients as of may 31 , 2010. our client base increased 0.5 % for fiscal 2012 , compared to an increase of 5.2 % for fiscal 2011 and a decline of 3.2 % for fiscal 2010. our organic client base growth was essentially flat for fiscal 2012 and declined 0.9 % for fiscal 2011. for fiscal 2012 , payroll services client retention was approximately 80 % of our beginning client base , a return to historical levels . this is a slight increase over fiscal 2011. through our focus on providing high-quality service to our customers to maximize client retention , we received the highest client satisfaction results in our history . our ancillary services provide services to employers and employees beyond payroll , but effectively leverage payroll processing data and , therefore , are beneficial to our operating margin . the following statistics demonstrate the growth in our human resource services ancillary service offerings : replace_table_token_5_th ( 1 ) growth rates exclude impact of acquisition of eplan . ( 2 ) includes paychex hr essentials as of may 31 , 2012 and 2011 . ( 3 ) includes workers ' compensation insurance services clients and health and benefits services clients . continued investment in our business is critical to our success . we continued to expand our product portfolio , through internal development and acquisitions , to add value for our clients . in the second half of fiscal 2011 , we acquired surepayroll and eplan . these acquisitions have created excellent opportunities in their markets , and allow paychex to offer a full range of payroll and 401 ( k ) outsourcing alternatives . during fiscal 2012 , we continued to integrate these acquired companies . in december 2011 , we purchased icon time systems , inc. , a provider of time and attendance solutions for small and medium-sized businesses , with whom we previously had a successful business relationship through one of our time and attendance offerings . additionally , 15 we launched new ancillary products in fiscal 2012. our business insurance payment service relieves business owners of the administrative burden of paying their insurance premiums . story_separator_special_tag million are excluded from the table above because the timing of actual payments can not be specifically or reasonably determined due to the variability in assumptions required to project the timing of future payments . advantage payroll services inc. ( advantage ) has license agreements with independently owned associate offices ( associates ) , which are responsible for selling and marketing advantage payroll services and performing certain operational functions , while paychex and advantage provide all centralized back-office payroll processing and payroll tax administration services . under these arrangements , advantage pays the associates commissions based on processing activity for the related clients . when we acquired advantage , there were fifteen associates . over the past few years , arrangements with some associates have been discontinued , and there are currently fewer than ten associates . since the actual amounts of future payments are uncertain , obligations under these arrangements are not included in the table above . commission expense for the associates for fiscal years 2012 , 2011 , and 2010 was $ 11.7 million , $ 10.4 million , and $ 9.9 million , respectively . in the normal course of business , we make representations and warranties that guarantee the performance of services under service arrangements with clients . historically , there have been no material losses related to such guarantees . in addition , we have entered into indemnification agreements with our officers and directors , which require us to defend and , if necessary , indemnify these individuals for certain pending or future legal claims as they relate to their services provided to us . we currently self-insure the deductible portion of various insured exposures under certain employee benefit plans . our estimated loss exposure under these insurance arrangements is recorded in other current liabilities on our consolidated balance sheets . historically , the amounts accrued have not been material . we also maintain insurance coverage in addition to our purchased primary insurance policies for gap coverage for employment practices liability , errors and omissions , warranty liability , theft and embezzlement , and acts of terrorism ; and capacity for deductibles and self-insured retentions through our captive insurance company . 23 off-balance sheet arrangements as part of our ongoing business , we do not participate in transactions with unconsolidated entities which would have been established for the purpose of facilitating off-balance sheet arrangements or other limited purposes . we do maintain investments as a limited partner in low-income housing projects that are not considered part of our ongoing operations . these investments are accounted for under the equity method of accounting and are less than 1 % of our total assets as of may 31 , 2012. operating cash flow activities replace_table_token_15_th the decrease in our operating cash flows for fiscal 2012 resulted mainly from fluctuations in operating assets and liabilities , partially offset by higher net income adjusted for non-cash items . the increase in our operating cash flows for fiscal 2011 resulted mainly from increases in net income and fluctuations in operating assets and liabilities . the fluctuations in our operating assets and liabilities between periods for both fiscal 2012 and fiscal 2011 were primarily related to the timing of collections from clients and payments for compensation , peo payroll , income tax , and other liabilities . investing cash flow activities replace_table_token_16_th funds held for clients and corporate investments : funds held for clients consist of short-term funds and available-for-sale securities . corporate investments are primarily comprised of available-for-sale securities . the portfolio of funds held for clients and corporate investments is detailed in note e of the notes to consolidated financial statements , contained in item 8 of this form 10-k. the fluctuation in the net change in funds held for clients and corporate investment activities for fiscal 2012 as compared to fiscal 2011 is largely due to timing within the client funds portfolio , as there was a large inflow of collections on may 31 , 2012 that was invested primarily in short-term investments on that date . see further discussion of this timing in the financing cash flows discussion of net change in client fund obligations . in addition , we increased our investment in longer-term available-for-sale securities within our corporate portfolio in fiscal 2012. the fluctuation in the net change in funds held for clients and corporate investment activities for fiscal 2011 as compared to fiscal 2010 was related to the mix of investment securities . in fiscal 2011 , we continued to increase our investment in vrdns and the amounts of purchases and sales for available-for-sale securities increased . however , partially offsetting this impact was the related liquidation of cash equivalents and the impact on cash equivalents from timing of remittances within the funds held for clients ' portfolio as compared to collections surrounding the fiscal year-end . see further discussion of this timing in the financing cash flows discussion of net change in client fund obligations . 24 in general , fluctuations in net funds held for clients and corporate investment activities primarily relate to timing of purchases , sales , or maturities of investments . the amount of funds held for clients will vary based upon the timing of collection of client funds , and the related remittance of funds to applicable tax or regulatory agencies for payroll tax administration services and to employees of clients utilizing employee payment services . additional discussion of interest rates and related risks is included in the market risk factors section , contained in item 7a of this form 10-k. purchases of long-lived assets : to support our continued client and ancillary product growth , purchases of property and equipment were made for data processing equipment and software , and for the expansion and upgrade of various operating facilities . during fiscal years 2012 , 2011 , and 2010 , we purchased approximately $ 2.6 million , $ 5.7 million , and $ 3.2 million ,
| financial position and liquidity the supply of high credit quality securities has been limited with the continued volatility in the global financial markets , thereby limiting our investment choices . despite this macroeconomic environment , our financial position as of may 31 , 2012 remained strong with cash and total corporate investments of $ 790.0 million and no debt . our investment strategy focuses on protecting principal and optimizing liquidity . yields on high quality financial instruments remain low , negatively impacting our income earned on funds held for clients and corporate investments . we invest predominately in municipal bonds general obligation bonds ; pre-refunded bonds , which are secured by a u.s. government escrow ; and essential services revenue bonds . during fiscal 2012 , our primary short-term investment vehicles were high quality variable rate demand notes ( vrdns ) and federal deposit insurance corporation ( fdic ) insured deposit accounts . a substantial portion of our portfolios is invested in high credit quality securities with aaa and aa ratings and a-1/p-1 ratings on short-term securities . we limit the amounts that can be invested in any single issuer and invest in short- to intermediate-term instruments whose fair value is less sensitive to interest rate changes . we believe that our investments as of may 31 , 2012 were not other-than-temporarily impaired , nor has any event occurred subsequent to that date that would indicate any other-than-temporary impairment . our primary source of cash is our ongoing operations . cash flow from operations was $ 706.6 million for fiscal 2012. historically , we have funded our operations , capital purchases , business acquisitions , and dividend payments from our operating activities . our positive cash flows in fiscal 2012 allowed us to support our business growth and to pay substantial dividends to our stockholders . during fiscal 2012 , dividends paid to stockholders were 84 % of net 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.
```financial position and liquidity the supply of high credit quality securities has been limited with the continued volatility in the global financial markets , thereby limiting our investment choices . despite this macroeconomic environment , our financial position as of may 31 , 2012 remained strong with cash and total corporate investments of $ 790.0 million and no debt . our investment strategy focuses on protecting principal and optimizing liquidity . yields on high quality financial instruments remain low , negatively impacting our income earned on funds held for clients and corporate investments . we invest predominately in municipal bonds general obligation bonds ; pre-refunded bonds , which are secured by a u.s. government escrow ; and essential services revenue bonds . during fiscal 2012 , our primary short-term investment vehicles were high quality variable rate demand notes ( vrdns ) and federal deposit insurance corporation ( fdic ) insured deposit accounts . a substantial portion of our portfolios is invested in high credit quality securities with aaa and aa ratings and a-1/p-1 ratings on short-term securities . we limit the amounts that can be invested in any single issuer and invest in short- to intermediate-term instruments whose fair value is less sensitive to interest rate changes . we believe that our investments as of may 31 , 2012 were not other-than-temporarily impaired , nor has any event occurred subsequent to that date that would indicate any other-than-temporary impairment . our primary source of cash is our ongoing operations . cash flow from operations was $ 706.6 million for fiscal 2012. historically , we have funded our operations , capital purchases , business acquisitions , and dividend payments from our operating activities . our positive cash flows in fiscal 2012 allowed us to support our business growth and to pay substantial dividends to our stockholders . during fiscal 2012 , dividends paid to stockholders were 84 % of net income .
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Suspicious Activity Report : the federal funds rate has been at a range of zero to 0.25 % since december 2008. our combined funds held for clients and corporate investment portfolios earned an average rate of return of 1.1 % for fiscal 2012 , compared to 1.3 % for fiscal 2011 and 1.5 % for fiscal 2010. highlights of our financial results for fiscal 2012 compared to fiscal 2011 are as follows : payroll service revenue increased 5 % to $ 1.5 billion . human resource services revenue increased 13 % to $ 676.2 million . interest on funds held for clients decreased 9 % to $ 43.6 million . total revenue increased 7 % to $ 2.2 billion . operating income increased 9 % to $ 853.9 million , and operating income , net of certain items , increased 10 % to $ 810.3 million . refer to the non-gaap financial measure discussion on the following page for further information on operating income , net of certain items . net income and diluted earnings per share each increased 6 % to $ 548.0 million and $ 1.51 per share , respectively . dividends of $ 460.5 million were paid to stockholders , representing 84 % of net income . our results for fiscal 2012 benefited from the inclusion of surepayroll , inc. ( surepayroll ) , a provider of payroll processing for small businesses , acquired on february 8 , 2011 , and eplan services , inc. ( eplan ) , a provider of recordkeeping and administrative solutions to the defined contribution marketplace , acquired on may 3 , 2011. these acquisitions in fiscal 2011 and an immaterial business acquisition in fiscal 2012 contributed approximately 2 % in total revenue growth for fiscal 2012 . 14 non-gaap financial measure in addition to reporting operating income , a united states ( u.s. ) generally accepted accounting principle ( gaap ) measure , we present operating income , net of certain items , which is a non-gaap measure . we believe operating income , net of certain items , is an appropriate additional measure , as it is an indicator of our core business operations performance period over period . it is also the basis of the measure used internally for establishing the following year 's targets and measuring management 's performance in connection with certain performance-based compensation payments and awards . operating income , net of certain items , excludes interest on funds held for clients and the expense charge in fiscal 2010 to increase the litigation reserve . interest on funds held for clients is an adjustment to operating income due to the volatility of interest rates , which are not within the control of management . the expense charge to increase the litigation reserve is also an adjustment to operating income due to its unusual and infrequent nature . it is outside the normal course of our operations and obscures the comparability of performance period over period . operating income , net of certain items , is not calculated through the application of gaap and is not the required form of disclosure by the securities and exchange commission . as such , it should not be considered as a substitute for the gaap measure of operating income and , therefore , should not be used in isolation , but in conjunction with the gaap measure . the use of any non-gaap measure may produce results that vary from the gaap measure and may not be comparable to a similarly defined non-gaap measure used by other companies . business outlook our client base totaled approximately 567,000 clients as of may 31 , 2012 , compared to approximately 564,000 clients as of may 31 , 2011 , and approximately 536,000 clients as of may 31 , 2010. our client base increased 0.5 % for fiscal 2012 , compared to an increase of 5.2 % for fiscal 2011 and a decline of 3.2 % for fiscal 2010. our organic client base growth was essentially flat for fiscal 2012 and declined 0.9 % for fiscal 2011. for fiscal 2012 , payroll services client retention was approximately 80 % of our beginning client base , a return to historical levels . this is a slight increase over fiscal 2011. through our focus on providing high-quality service to our customers to maximize client retention , we received the highest client satisfaction results in our history . our ancillary services provide services to employers and employees beyond payroll , but effectively leverage payroll processing data and , therefore , are beneficial to our operating margin . the following statistics demonstrate the growth in our human resource services ancillary service offerings : replace_table_token_5_th ( 1 ) growth rates exclude impact of acquisition of eplan . ( 2 ) includes paychex hr essentials as of may 31 , 2012 and 2011 . ( 3 ) includes workers ' compensation insurance services clients and health and benefits services clients . continued investment in our business is critical to our success . we continued to expand our product portfolio , through internal development and acquisitions , to add value for our clients . in the second half of fiscal 2011 , we acquired surepayroll and eplan . these acquisitions have created excellent opportunities in their markets , and allow paychex to offer a full range of payroll and 401 ( k ) outsourcing alternatives . during fiscal 2012 , we continued to integrate these acquired companies . in december 2011 , we purchased icon time systems , inc. , a provider of time and attendance solutions for small and medium-sized businesses , with whom we previously had a successful business relationship through one of our time and attendance offerings . additionally , 15 we launched new ancillary products in fiscal 2012. our business insurance payment service relieves business owners of the administrative burden of paying their insurance premiums . story_separator_special_tag million are excluded from the table above because the timing of actual payments can not be specifically or reasonably determined due to the variability in assumptions required to project the timing of future payments . advantage payroll services inc. ( advantage ) has license agreements with independently owned associate offices ( associates ) , which are responsible for selling and marketing advantage payroll services and performing certain operational functions , while paychex and advantage provide all centralized back-office payroll processing and payroll tax administration services . under these arrangements , advantage pays the associates commissions based on processing activity for the related clients . when we acquired advantage , there were fifteen associates . over the past few years , arrangements with some associates have been discontinued , and there are currently fewer than ten associates . since the actual amounts of future payments are uncertain , obligations under these arrangements are not included in the table above . commission expense for the associates for fiscal years 2012 , 2011 , and 2010 was $ 11.7 million , $ 10.4 million , and $ 9.9 million , respectively . in the normal course of business , we make representations and warranties that guarantee the performance of services under service arrangements with clients . historically , there have been no material losses related to such guarantees . in addition , we have entered into indemnification agreements with our officers and directors , which require us to defend and , if necessary , indemnify these individuals for certain pending or future legal claims as they relate to their services provided to us . we currently self-insure the deductible portion of various insured exposures under certain employee benefit plans . our estimated loss exposure under these insurance arrangements is recorded in other current liabilities on our consolidated balance sheets . historically , the amounts accrued have not been material . we also maintain insurance coverage in addition to our purchased primary insurance policies for gap coverage for employment practices liability , errors and omissions , warranty liability , theft and embezzlement , and acts of terrorism ; and capacity for deductibles and self-insured retentions through our captive insurance company . 23 off-balance sheet arrangements as part of our ongoing business , we do not participate in transactions with unconsolidated entities which would have been established for the purpose of facilitating off-balance sheet arrangements or other limited purposes . we do maintain investments as a limited partner in low-income housing projects that are not considered part of our ongoing operations . these investments are accounted for under the equity method of accounting and are less than 1 % of our total assets as of may 31 , 2012. operating cash flow activities replace_table_token_15_th the decrease in our operating cash flows for fiscal 2012 resulted mainly from fluctuations in operating assets and liabilities , partially offset by higher net income adjusted for non-cash items . the increase in our operating cash flows for fiscal 2011 resulted mainly from increases in net income and fluctuations in operating assets and liabilities . the fluctuations in our operating assets and liabilities between periods for both fiscal 2012 and fiscal 2011 were primarily related to the timing of collections from clients and payments for compensation , peo payroll , income tax , and other liabilities . investing cash flow activities replace_table_token_16_th funds held for clients and corporate investments : funds held for clients consist of short-term funds and available-for-sale securities . corporate investments are primarily comprised of available-for-sale securities . the portfolio of funds held for clients and corporate investments is detailed in note e of the notes to consolidated financial statements , contained in item 8 of this form 10-k. the fluctuation in the net change in funds held for clients and corporate investment activities for fiscal 2012 as compared to fiscal 2011 is largely due to timing within the client funds portfolio , as there was a large inflow of collections on may 31 , 2012 that was invested primarily in short-term investments on that date . see further discussion of this timing in the financing cash flows discussion of net change in client fund obligations . in addition , we increased our investment in longer-term available-for-sale securities within our corporate portfolio in fiscal 2012. the fluctuation in the net change in funds held for clients and corporate investment activities for fiscal 2011 as compared to fiscal 2010 was related to the mix of investment securities . in fiscal 2011 , we continued to increase our investment in vrdns and the amounts of purchases and sales for available-for-sale securities increased . however , partially offsetting this impact was the related liquidation of cash equivalents and the impact on cash equivalents from timing of remittances within the funds held for clients ' portfolio as compared to collections surrounding the fiscal year-end . see further discussion of this timing in the financing cash flows discussion of net change in client fund obligations . 24 in general , fluctuations in net funds held for clients and corporate investment activities primarily relate to timing of purchases , sales , or maturities of investments . the amount of funds held for clients will vary based upon the timing of collection of client funds , and the related remittance of funds to applicable tax or regulatory agencies for payroll tax administration services and to employees of clients utilizing employee payment services . additional discussion of interest rates and related risks is included in the market risk factors section , contained in item 7a of this form 10-k. purchases of long-lived assets : to support our continued client and ancillary product growth , purchases of property and equipment were made for data processing equipment and software , and for the expansion and upgrade of various operating facilities . during fiscal years 2012 , 2011 , and 2010 , we purchased approximately $ 2.6 million , $ 5.7 million , and $ 3.2 million ,
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2,696 | the company also expressed that although it believed its facilities were fully compliant at the time , the company did not know how its facilities would fare under the new rules and that the company expected to have a full understanding of the implications within the next two months . teams of inspectors from the government were sent to many provinces to inspect all mining and manufacturing facilities . the local government requested that facilities be closed , so that the facilities can undergo the inspection and analysis in the most efficient manner by inspectors ' team . as a result , our facilities were closed on september 1 , 2017. subsequently , the safety supervision and administration department and the environmental protection departments of the local government conducted inspections of every bromine production enterprise within its jurisdiction , in order to improve security , environmental protections , pollution , and safety . the company had been working closely with the county authorities to develop rectification plans for both its bromine and its chemical businesses . the company and the government had agreed on a rectification plan for schc , the company 's bromine and crude salt businesses which is currently under process . the company worked closely with the county authorities to develop rectification plans for both its bromine and crude salt businesses and agreed on a plan in october 2017. in the fiscal year ended december 31 , 2018 , the company incurred $ 16,243,677 in the rectification and improvements of plant and equipment of the bromine and crude salt factories resulting in a cumulative amount of $ 34,182,329 incurred as of december 31 , 2018. based on the renewed mining certificate , schc is limited to produce up to 24,000 tons of bromine per year , we believe this is sufficient for its production utilization rate .the shouguang city bromine association , on behalf of all the bromine plants in shouguang , has started discussions with the local government agencies . the local governmental agencies confirmed the facts that their initial requirements for the bromine industry did not include the project approval , the planning approval and the land use rights approval and that those three additional approvals were new requirements of the provincial government . the company understood from the local government that it has been coordinating with several government agencies to solve these three outstanding approval issues in a timely manner and that all the affected bromine plants are not allowed to commence production prior to obtaining those approvals . in april 2019 , factory no.1 , factory no.5 and factory no.7 ( factory no . 5 is considered part of factory no.7 and both are managed as one factory since 2010 ) restarted operations upon receipt of verbal notification from local government of yangkou county . on may 7 , 2019 , the company renamed its subdivision factory no . 1 to factory no . 4 ; and factory no . 5 ( which was previously considered part of factory no . 7 ) to factory no . 7 . 21 the company is not certain when the issuance of the approval documents will be effected . the company believes that this is another step by the government to improve the environment . it further believes the goal of the government is not to close all plants , but rather to codify the regulations related to project approval , land use , planning approval and environmental protection assessment approval so that illegal plants are not able to open in the future and so that plants close to population centers do not cause serious environmental damage . in addition , the company believes that the shandong provincial government wants to assure that each of its regional and county governments has applied the notice in a consistent manner . the company believes the issues related to the remaining three bromine and crude salt factories which have passed inspection are almost resolved . the company is actively working with the local government to obtain the documentation for approval of project , planning , land use rights and environmental protection evaluation . on november 24 , 2017 , gulf resources received a letter from the people 's government of yangkou county , shouguang city notifying the company that due to the new standards and regulations relating to safety production and environmental pollution , from certain local governmental departments , such as the municipal environmental protection department , the security supervision department and the fire department , decided to relocate chemical enterprises to a new industrial park called bohai marine fine chemical industry park . chemical companies that are not being asked to move into the park will be permanently closed . although we are in compliance with regulations within the county due to the proximity of our subsidiary , syci 's production plant to a residential area , we have been asked to relocate our chemical production plant to bohai marine fine chemical industry park . however , we must not commence activities until we have relocated the production plant and received inspection approval from related departments . the company has secured from the government the land use rights for its chemical plants located at the bohai park and presented a completed construction design draft and other related documents to the local authorities for approval . on january 6 , 2020 , the company received the environmental protection approval by the government of shouguang city , shandong province for the proposed yuxin chemical factory . the environmental protection approval was the last approval required before commencing construction . with this approval , gulf resources plans to begin construction in may 2020. in january 2017 , the company completed the first brine water and natural gas well field construction in sichuan province and announced the commencement of trial production . story_separator_special_tag other income , net , which represent bank interest income , net of finance lease interest expense was $ 301,325 for the fiscal year 2019 , an decrease of $ 199,365 ( or approximately 40 % ) as compared to the same period in 2018. net income ( loss ) . net loss was $ 25,800,045 for the fiscal year 2019 , compared to net loss of $ 69,963,986 in the same period in 2018. this decrease in the net loss was attributable to resume production and sales of two factories . effective tax rate . our effective income tax ( expense ) benefit rate for the fiscal years 2019 and 2018 were ( 12 % ) and 16 % respectively . this was mainly due to an increase in valuation allowance of $ 8,672,817 in the fiscal year 2019. the effective income tax benefit rate of 16 % for the fiscal year 2018 differs from the prc statutory income tax rate of 25 % mainly due to non-taxable item in connection with the unrealized exchange gain . 27 story_separator_special_tag bold 10pt times new roman , times , serif ; margin : 0pt 0 ; text-align : justify `` > contractual obligations and commitments we have no significant contractual obligations not fully recorded on our consolidated balance sheets or fully disclosed in the notes to our consolidated financial statements . additional information regarding our contractual obligations and commitments at december 31 , 2019 is provided in the notes to our consolidated financial statements . see “ notes to consolidated financial statements , note 19 - capital commitment and operating lease commitments . ” 29 material off-balance sheet arrangements we do not currently have any off-balance sheet arrangements falling within the definition of item 303 ( a ) of regulation s-k. critical accounting policies and estimates our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the united states of america ( u.s. gaap ) , which requires us to make judgments , estimates and assumptions . see “ note 1 – nature of business and summary of significant accounting policies , ” in notes to the consolidated financial statements , which is included in “ item 8. financial statements and supplementary data , ” which describes our significant accounting policies and methods used in the preparation of our consolidated financial statements . the methods , estimates and judgments that we use in applying our accounting policies require us to make difficult and subjective judgments , often as a result of the need to make estimates regarding matters that are inherently uncertain . our most critical estimates include : · allowance for doubtful accounts , which impacts revenue ; · the valuation of inventory , which impacts gross margins ; · impairment of long-lived assets ( including goodwill ) ; · the valuation and recognition of share-based compensation , which impacts operating expenses ; and · the recognition and measurement of deferred income taxes , which impact our provision for taxes . allowance for doubtful accounts we makes estimates of the uncollectibility of accounts receivable , especially analyzing accounts receivable and historical bad debts , customer concentrations , customer credit-worthiness , current economic trends and changes in customer payment terms , when evaluating the adequacy of the allowance for doubtful accounts . credit evaluations are undertaken for all major sale transactions before shipment is authorized . on a quarterly basis , we evaluate aged items in the accounts receivable aging report and provide an allowance in an amount we deem adequate for doubtful accounts . if management were to make different judgments or utilize different estimates , material differences in the amount of our reported operating expenses could result . inventory valuation inventory is stated at the lower of cost or market , with cost determined on a first-in first-out basis . the carrying value of inventory is reduced for estimated obsolescence by the difference between its cost and the estimated market value based upon assumptions about future demand . we evaluate the inventory carrying value for potential excess and obsolete inventory exposures by analyzing historical and anticipated demand . if actual future demand or market conditions are less favorable than those projected by management , additional inventory write-downs may be required in the future , which could have a material adverse effect on our results of operations . depreciation of property , plant and equipment property , plant and equipment are stated at cost less accumulated depreciation and any impairment losses . expenditures for new facilities or equipment , and major expenditures for betterment of existing facilities or equipment are capitalized and depreciated using the straight-line method at rates sufficient to depreciate such costs over the estimated productive lives . all other ordinary repair and maintenance costs are expensed as incurred . mineral rights are recorded at cost less accumulated depreciation and any impairment losses . mineral rights are amortized ratably over the term of the lease , or the equivalent term under the units of production method , whichever is shorter . in some situations , the life of the asset may be extended or shortened if circumstances arise that would lead us to believe that the estimated life of the asset has changed . the life of leasehold improvements may change based on the extension of lease contracts with our landlords . changes in the estimated lives of assets will result in an increase or decrease in the amount of depreciation recognized in future periods . 30 impairment of long lived assets we periodically evaluate whether events or circumstances have occurred that indicate long-lived assets may not be recoverable or that the remaining useful life may warrant revision . when such events or circumstances are present , we assess the recoverability of long-lived assets by determining whether the carrying value will be recovered through the expected undiscounted future cash flows resulting from the use of the asset . in the event the sum of
| liquidity and capital resources as of december 31 , 2019 , cash and cash equivalents were $ 100,301,986 as compared to $ 178,998,935 as of december 31 , 2018. the components of this decrease of $ 78,696,949 are reflected below . replace_table_token_10_th for the fiscal years 2019 and 2018 , we met our working capital and capital investment requirements mainly by using cash flows from operations and cash on hand . net cash provided by operating activities during the year ended december 31 , 2019 , cash flow used in operating activities of approximately $ 15 million was mainly due to a net loss of $ 25.8 million , an increase in accounts receivable of $ 5.07 million , reduced by a non-cash adjustment related to a decrease in deferred tax assets of $ 2.7 million and to depreciation and amortization of property , plant and equipment . during the year ended december 31 , 2018 , cash flow from operating activities of approximately $ 17.3 million was more than our net loss of approximately $ 70.0 million mainly due to ( i ) cash used in working capital of approximately $ 30.8 million , which mainly consisted of the decrease in accounts receivable and decrease in inventories , which offset by decrease in retention payable ; and ( ii ) substantial non-cash charges of approximately $ 56.5 million , mainly in the form of depreciation and amortization of property , plant and equipment and loss on demolition of factory , which was offset by increased deferred tax 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.
```liquidity and capital resources as of december 31 , 2019 , cash and cash equivalents were $ 100,301,986 as compared to $ 178,998,935 as of december 31 , 2018. the components of this decrease of $ 78,696,949 are reflected below . replace_table_token_10_th for the fiscal years 2019 and 2018 , we met our working capital and capital investment requirements mainly by using cash flows from operations and cash on hand . net cash provided by operating activities during the year ended december 31 , 2019 , cash flow used in operating activities of approximately $ 15 million was mainly due to a net loss of $ 25.8 million , an increase in accounts receivable of $ 5.07 million , reduced by a non-cash adjustment related to a decrease in deferred tax assets of $ 2.7 million and to depreciation and amortization of property , plant and equipment . during the year ended december 31 , 2018 , cash flow from operating activities of approximately $ 17.3 million was more than our net loss of approximately $ 70.0 million mainly due to ( i ) cash used in working capital of approximately $ 30.8 million , which mainly consisted of the decrease in accounts receivable and decrease in inventories , which offset by decrease in retention payable ; and ( ii ) substantial non-cash charges of approximately $ 56.5 million , mainly in the form of depreciation and amortization of property , plant and equipment and loss on demolition of factory , which was offset by increased deferred tax assets .
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Suspicious Activity Report : the company also expressed that although it believed its facilities were fully compliant at the time , the company did not know how its facilities would fare under the new rules and that the company expected to have a full understanding of the implications within the next two months . teams of inspectors from the government were sent to many provinces to inspect all mining and manufacturing facilities . the local government requested that facilities be closed , so that the facilities can undergo the inspection and analysis in the most efficient manner by inspectors ' team . as a result , our facilities were closed on september 1 , 2017. subsequently , the safety supervision and administration department and the environmental protection departments of the local government conducted inspections of every bromine production enterprise within its jurisdiction , in order to improve security , environmental protections , pollution , and safety . the company had been working closely with the county authorities to develop rectification plans for both its bromine and its chemical businesses . the company and the government had agreed on a rectification plan for schc , the company 's bromine and crude salt businesses which is currently under process . the company worked closely with the county authorities to develop rectification plans for both its bromine and crude salt businesses and agreed on a plan in october 2017. in the fiscal year ended december 31 , 2018 , the company incurred $ 16,243,677 in the rectification and improvements of plant and equipment of the bromine and crude salt factories resulting in a cumulative amount of $ 34,182,329 incurred as of december 31 , 2018. based on the renewed mining certificate , schc is limited to produce up to 24,000 tons of bromine per year , we believe this is sufficient for its production utilization rate .the shouguang city bromine association , on behalf of all the bromine plants in shouguang , has started discussions with the local government agencies . the local governmental agencies confirmed the facts that their initial requirements for the bromine industry did not include the project approval , the planning approval and the land use rights approval and that those three additional approvals were new requirements of the provincial government . the company understood from the local government that it has been coordinating with several government agencies to solve these three outstanding approval issues in a timely manner and that all the affected bromine plants are not allowed to commence production prior to obtaining those approvals . in april 2019 , factory no.1 , factory no.5 and factory no.7 ( factory no . 5 is considered part of factory no.7 and both are managed as one factory since 2010 ) restarted operations upon receipt of verbal notification from local government of yangkou county . on may 7 , 2019 , the company renamed its subdivision factory no . 1 to factory no . 4 ; and factory no . 5 ( which was previously considered part of factory no . 7 ) to factory no . 7 . 21 the company is not certain when the issuance of the approval documents will be effected . the company believes that this is another step by the government to improve the environment . it further believes the goal of the government is not to close all plants , but rather to codify the regulations related to project approval , land use , planning approval and environmental protection assessment approval so that illegal plants are not able to open in the future and so that plants close to population centers do not cause serious environmental damage . in addition , the company believes that the shandong provincial government wants to assure that each of its regional and county governments has applied the notice in a consistent manner . the company believes the issues related to the remaining three bromine and crude salt factories which have passed inspection are almost resolved . the company is actively working with the local government to obtain the documentation for approval of project , planning , land use rights and environmental protection evaluation . on november 24 , 2017 , gulf resources received a letter from the people 's government of yangkou county , shouguang city notifying the company that due to the new standards and regulations relating to safety production and environmental pollution , from certain local governmental departments , such as the municipal environmental protection department , the security supervision department and the fire department , decided to relocate chemical enterprises to a new industrial park called bohai marine fine chemical industry park . chemical companies that are not being asked to move into the park will be permanently closed . although we are in compliance with regulations within the county due to the proximity of our subsidiary , syci 's production plant to a residential area , we have been asked to relocate our chemical production plant to bohai marine fine chemical industry park . however , we must not commence activities until we have relocated the production plant and received inspection approval from related departments . the company has secured from the government the land use rights for its chemical plants located at the bohai park and presented a completed construction design draft and other related documents to the local authorities for approval . on january 6 , 2020 , the company received the environmental protection approval by the government of shouguang city , shandong province for the proposed yuxin chemical factory . the environmental protection approval was the last approval required before commencing construction . with this approval , gulf resources plans to begin construction in may 2020. in january 2017 , the company completed the first brine water and natural gas well field construction in sichuan province and announced the commencement of trial production . story_separator_special_tag other income , net , which represent bank interest income , net of finance lease interest expense was $ 301,325 for the fiscal year 2019 , an decrease of $ 199,365 ( or approximately 40 % ) as compared to the same period in 2018. net income ( loss ) . net loss was $ 25,800,045 for the fiscal year 2019 , compared to net loss of $ 69,963,986 in the same period in 2018. this decrease in the net loss was attributable to resume production and sales of two factories . effective tax rate . our effective income tax ( expense ) benefit rate for the fiscal years 2019 and 2018 were ( 12 % ) and 16 % respectively . this was mainly due to an increase in valuation allowance of $ 8,672,817 in the fiscal year 2019. the effective income tax benefit rate of 16 % for the fiscal year 2018 differs from the prc statutory income tax rate of 25 % mainly due to non-taxable item in connection with the unrealized exchange gain . 27 story_separator_special_tag bold 10pt times new roman , times , serif ; margin : 0pt 0 ; text-align : justify `` > contractual obligations and commitments we have no significant contractual obligations not fully recorded on our consolidated balance sheets or fully disclosed in the notes to our consolidated financial statements . additional information regarding our contractual obligations and commitments at december 31 , 2019 is provided in the notes to our consolidated financial statements . see “ notes to consolidated financial statements , note 19 - capital commitment and operating lease commitments . ” 29 material off-balance sheet arrangements we do not currently have any off-balance sheet arrangements falling within the definition of item 303 ( a ) of regulation s-k. critical accounting policies and estimates our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the united states of america ( u.s. gaap ) , which requires us to make judgments , estimates and assumptions . see “ note 1 – nature of business and summary of significant accounting policies , ” in notes to the consolidated financial statements , which is included in “ item 8. financial statements and supplementary data , ” which describes our significant accounting policies and methods used in the preparation of our consolidated financial statements . the methods , estimates and judgments that we use in applying our accounting policies require us to make difficult and subjective judgments , often as a result of the need to make estimates regarding matters that are inherently uncertain . our most critical estimates include : · allowance for doubtful accounts , which impacts revenue ; · the valuation of inventory , which impacts gross margins ; · impairment of long-lived assets ( including goodwill ) ; · the valuation and recognition of share-based compensation , which impacts operating expenses ; and · the recognition and measurement of deferred income taxes , which impact our provision for taxes . allowance for doubtful accounts we makes estimates of the uncollectibility of accounts receivable , especially analyzing accounts receivable and historical bad debts , customer concentrations , customer credit-worthiness , current economic trends and changes in customer payment terms , when evaluating the adequacy of the allowance for doubtful accounts . credit evaluations are undertaken for all major sale transactions before shipment is authorized . on a quarterly basis , we evaluate aged items in the accounts receivable aging report and provide an allowance in an amount we deem adequate for doubtful accounts . if management were to make different judgments or utilize different estimates , material differences in the amount of our reported operating expenses could result . inventory valuation inventory is stated at the lower of cost or market , with cost determined on a first-in first-out basis . the carrying value of inventory is reduced for estimated obsolescence by the difference between its cost and the estimated market value based upon assumptions about future demand . we evaluate the inventory carrying value for potential excess and obsolete inventory exposures by analyzing historical and anticipated demand . if actual future demand or market conditions are less favorable than those projected by management , additional inventory write-downs may be required in the future , which could have a material adverse effect on our results of operations . depreciation of property , plant and equipment property , plant and equipment are stated at cost less accumulated depreciation and any impairment losses . expenditures for new facilities or equipment , and major expenditures for betterment of existing facilities or equipment are capitalized and depreciated using the straight-line method at rates sufficient to depreciate such costs over the estimated productive lives . all other ordinary repair and maintenance costs are expensed as incurred . mineral rights are recorded at cost less accumulated depreciation and any impairment losses . mineral rights are amortized ratably over the term of the lease , or the equivalent term under the units of production method , whichever is shorter . in some situations , the life of the asset may be extended or shortened if circumstances arise that would lead us to believe that the estimated life of the asset has changed . the life of leasehold improvements may change based on the extension of lease contracts with our landlords . changes in the estimated lives of assets will result in an increase or decrease in the amount of depreciation recognized in future periods . 30 impairment of long lived assets we periodically evaluate whether events or circumstances have occurred that indicate long-lived assets may not be recoverable or that the remaining useful life may warrant revision . when such events or circumstances are present , we assess the recoverability of long-lived assets by determining whether the carrying value will be recovered through the expected undiscounted future cash flows resulting from the use of the asset . in the event the sum of
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2,697 | as a clinical-stage company , our revenues , expenses and results of operations are likely to fluctuate significantly from quarter to quarter and year to year . we believe that period-to-period comparisons of our results of operations should not be relied upon as indicative of our future performance . as of december 31 , 2017 , we had approximately $ 53.2 million in cash and cash equivalents . 73 financial operations overview the following discussion sets forth certain components of our consolidated statements of operations as well as factors that impact those items . revenue we generate revenue primarily from the receipt of upfront or license fees , milestone payments and payment for procurement services that are made pursuant to license agreements or related supply agreements or from the receipt of payments made pursuant to a royalty monetization agreement . license agreements with commercial partners generally include nonrefundable upfront fees and milestone payments , the receipt of which is dependent upon the achievement of certain development , regulatory or commercial milestones , as well as royalties on product sales of licensed products , if and when such product sales occur , and payments for procuring pharmaceutical ingredients . for these agreements , management applies judgment in the allocation of total agreement consideration to the separately identifiable components on a reliable basis that reasonably reflects the selling prices that might be expected to be achieved in stand-alone transactions . for the years ended december 31 , 2017 and 2016 , we recognized into revenue $ 1,000 and $ 11.4 million , respectively , in payments under a license agreement or procurement agreement . for the year ended december 31 , 2016 , we recognized into revenue nonrefundable payments received from our licensee for elobixibat in japan and other specified countries in asia , ea pharma co. , ltd. ( formerly known as ajinomoto pharmaceuticals co. , ltd. ) , or ea pharma , of $ 8.0 million in connection with a renegotiated payment stream and 3.225 million triggered by the decision of ea pharma to proceed with the preparation of a new drug application for elobixibat in japan . we expect that any future revenue recognized under our license agreement with ea pharma will fluctuate from quarter to quarter and year to year as a result of the uncertain timing of future milestone payments , if any . operating expenses research and development expenses research and development expenses consist primarily of personnel costs ( including salaries , benefits and other staff-related costs ) for employees in research and development functions , costs associated with preclinical and clinical development services , including clinical trials and related manufacturing costs , third-party contract research organizations , or cros , and related services and other outside costs , including fees for third-party professional services such as consultants . our preclinical studies and clinical studies are performed by cros . we expect to continue to focus our research and development efforts on preclinical studies and clinical trials of our product candidates . as a result , we expect our research and development expenses to continue to increase for the foreseeable future . our direct research and development expenses are tracked on a program-by-program basis and consist primarily of external costs such as fees paid to cros and others in connection with our preclinical and clinical development activities and related manufacturing . we do not allocate employee costs or facility expenses , including depreciation or other indirect costs , to specific product development programs because these costs are deployed across multiple product development programs and , as such , are not separately classified . successful development of our current and potential future product candidates is highly uncertain . completion dates and costs for our programs can vary significantly by product candidate and are difficult to predict . as a result , we can not estimate with any degree of certainty the costs we will incur in connection with development of any of our product candidates . we anticipate we will make determinations as to which programs and product candidates to pursue and how much funding to direct to each program and product candidate on an ongoing basis in response to the results of ongoing and future clinical trials , our ability to enter into licensing , collaboration and similar arrangements with respect to current or potential future product candidates , success of research and development programs and assessments of commercial potential . general and administrative expenses general and administrative expenses consist primarily of personnel costs ( including salaries and benefits ) for our executive , finance and other administrative employees . in addition , general and administrative expenses include fees for third-party professional services , including consulting , information technology , legal and accounting services and other corporate expenses and allocated overhead . critical accounting policies and estimates our management 's discussion and analysis of financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with united states generally accepted accounting principles . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , 74 revenues and expenses . we base our estimates and assumptions on historical experience and on various assumptions that we believe are reasonable under the circumstances , and we evaluate them on an ongoing basis . these estimates and assumptions form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenues and expenses that are not readily apparent from other sources . actual results and exper iences may differ materially from these estimates and judgments . in addition , our reported financial condition and results of operations could vary if new accounting standards are enacted that are applicable to our business . story_separator_special_tag the difference in interest income ( expense ) , ne t was principally attributable to the conversion of convertible loan notes issued in 2014 and 2015 into equity in connection with the completion of the biodel transaction in november 2016 and a reduction for 2017 in the amount of interest paid under a form er loan facility . non-operating income ( expense ) , net year ended december 31 , change 2017 2016 $ in thousands non-operating income ( expense ) , net $ 335 $ ( 2,675 ) $ ( 3,010 ) non-operating income ( expense ) , net was $ 335,000 of income for the year ended december 31 , 2017 compared with $ 2.7 million of expense for the year ended december 31 , 2016 , a difference of $ 3.0 million . the difference in non-operating income ( expense ) , net was principally attributable to adjustments for the 2016 period to fair value for derivative liabilities associated with outstanding convertible loan notes that were converted into equity in connection with the completion of the biodel transaction in november 2016 , a change in the mark-to-market adjustments on warrants between the periods , and the may 2017 exercise by our former lender of warrants valued at $ 617,000. income tax replace_table_token_3_th income tax expense was $ 212,000 for the year ended december 31 , 2017 compared to $ 62,000 for the year ended december 31 , 2016. years ended december 31 , 2016 and december 31 , 2015 revenue year ended december 31 , change 2016 2015 $ in thousands revenue $ 11,364 $ 5,099 $ 6,265 revenue was $ 11.4 million for the year ended december 31 , 2016 compared with revenue of $ 5.1 million for the year ended december 31 , 2015 , an increase of $ 6.3 million . the higher revenue was due to recognition in full of payments from ea pharma of $ 8.0 million received in april 2016 in connection with a renegotiated payment stream linked to know-how and intellectual property that we had delivered upon inception of the license agreement in 2012 and 3.225 million earned in the fourth quarter of 2016 upon the decision of ea pharma to proceed with the preparation of a new drug application for elobixibat in japan . for the year ended december 31 , 2015 , we recognized into revenue $ 5.1 million in payments received under our license agreement with ea pharma . research and development expenses year ended december 31 , change 2016 2015 $ in thousands research and development expenses $ 8,077 $ 5,634 $ 2,443 79 research and development expenses were $ 8.1 million for the year ended december 31 , 2016 compared with $ 5.6 million for the year ended december 31 , 2015 , an increase of $ 2.4 million . the increase was principally due to a $ 1.7 million increase in costs incurred to third parties for preclinical research services and clinical trials , primarily related to a4250 for which we initiated a phase 2 clinical trial in children with chronic cholestasis and pruritus in the second half of 2015 , as well as an in crease of $ 755,000 primarily in fees for contract r & d consulting services and also comprising facilities and personnel costs . the following table summarizes our principal product development programs and the out-of-pocket third-party expenses incurred with respect to each clinical-stage product candidate and our preclinical programs for the years ended december 31 , 2016 and 2015. replace_table_token_4_th ( 1 ) other project costs are leveraged across multiple programs . ( 2 ) other costs include facility , supply , consultant and overhead costs that support multiple programs . general and administrative expenses year ended december 31 , change 2016 2015 $ in thousands general and administrative expenses $ 15,786 $ 4,462 $ 11,324 general and administrative expenses were $ 15.8 million for the year ended december 31 , 2016 compared with $ 4.5 million for the year ended december 31 , 2015 , an increase of $ 11.3 million . the increase was principally attributable to professional fees incurred in connection with the negotiation and completion of the biodel transaction ( $ 3.9 million ) , higher personnel and stock-based compensation costs ( $ 2.2 million ) , severance costs ( $ 1.7 million ) , lease termination fees ( $ 1.2 million ) , accounting fees ( $ 500,000 ) , as well as costs associated with being a public company . other ( income ) expense , net replace_table_token_5_th other ( income ) expense , net totaled $ 205,000 of income for the year ended december 31 , 2016 compared with $ 271,000 of income for the year ended december 31 , 2015 , a difference of $ 66,000. the difference resulted from changes in currency exchange rates between the two periods . 80 interest expense , net year ended december 31 , change 2016 2015 $ in thousands interest expense , net $ ( 1,319 ) $ ( 1,722 ) $ ( 403 ) interest expense , net totaled $ 1.3 million for the year ended december 31 , 2016 compared with $ 1.7 million for 2015 , a decrease of $ 403,000. the decrease was attributable to lower interest on convertible loan notes issued in 2014 and 2015 due to their conversion into equity in connection with the completion of the biodel transaction . all accrued and unpaid interest on the convertible loan notes as of november 3 , 2016 was waived by the holders of the notes . non-operating expense year ended december 31 , change 2016 2015 $ in thousands non-operating expense $ ( 2,675 ) $ ( 320 ) $ 2,355 non-operating expense was $ 2.7 million for the year ended december 31 , 2016 compared with $ 320,000 for the year ended december 31 , 2015 , an increase of $ 2.4 million . the increase reflected adjustments
| sources of liquidity we do not expect to generate significant revenue from product sales unless and until we or a potential future licensee or collaborator obtains marketing approval for , and commercializes , one or more of our current or potential future product candidates ( other than elobixibat as a treatment for chronic constipation in japan ) , which we do not expect to occur until at least 2021 , if at all . we anticipate that we will continue to generate losses for the foreseeable future , and we expect the losses to increase as we continue the development of and seek regulatory approvals for our product candidates . we are subject to all of the risks applicable to the development of new pharmaceutical products and may encounter unforeseen expenses , difficulties , complications , delays and other unknown factors that may harm our business . we expect that , having become a public company upon completion of the biodel transaction in november 2016 , we will continue to incur additional costs associated with operating as a public company and anticipate that we will need substantial additional funding to complete development of and potentially commercialize our product candidates . our operations have historically been financed primarily through issuances of shares of common stock , preference shares or convertible debt , upfront fees paid upon entering into license agreements , payments received upon the achievement of specified milestone events under license agreements , grants and venture debt borrowings . our primary uses of capital are , and we expect will continue to be , personnel-related costs , third party expenses associated with our research and development programs , including the conduct of clinical trials , and manufacturing-related costs for our product candidates . as of december 31 , 2017 , our cash and cash equivalents were approximately $ 53.2 million . 81 during the first quarter of 2018 , following the japanese mhlw 's approval of elobixibat for the treatment of chronic constipation in january 2018 , we received a $ 45 million payment , net of certain transaction expenses , from hcr under our riaa .
| 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 we do not expect to generate significant revenue from product sales unless and until we or a potential future licensee or collaborator obtains marketing approval for , and commercializes , one or more of our current or potential future product candidates ( other than elobixibat as a treatment for chronic constipation in japan ) , which we do not expect to occur until at least 2021 , if at all . we anticipate that we will continue to generate losses for the foreseeable future , and we expect the losses to increase as we continue the development of and seek regulatory approvals for our product candidates . we are subject to all of the risks applicable to the development of new pharmaceutical products and may encounter unforeseen expenses , difficulties , complications , delays and other unknown factors that may harm our business . we expect that , having become a public company upon completion of the biodel transaction in november 2016 , we will continue to incur additional costs associated with operating as a public company and anticipate that we will need substantial additional funding to complete development of and potentially commercialize our product candidates . our operations have historically been financed primarily through issuances of shares of common stock , preference shares or convertible debt , upfront fees paid upon entering into license agreements , payments received upon the achievement of specified milestone events under license agreements , grants and venture debt borrowings . our primary uses of capital are , and we expect will continue to be , personnel-related costs , third party expenses associated with our research and development programs , including the conduct of clinical trials , and manufacturing-related costs for our product candidates . as of december 31 , 2017 , our cash and cash equivalents were approximately $ 53.2 million . 81 during the first quarter of 2018 , following the japanese mhlw 's approval of elobixibat for the treatment of chronic constipation in january 2018 , we received a $ 45 million payment , net of certain transaction expenses , from hcr under our riaa .
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Suspicious Activity Report : as a clinical-stage company , our revenues , expenses and results of operations are likely to fluctuate significantly from quarter to quarter and year to year . we believe that period-to-period comparisons of our results of operations should not be relied upon as indicative of our future performance . as of december 31 , 2017 , we had approximately $ 53.2 million in cash and cash equivalents . 73 financial operations overview the following discussion sets forth certain components of our consolidated statements of operations as well as factors that impact those items . revenue we generate revenue primarily from the receipt of upfront or license fees , milestone payments and payment for procurement services that are made pursuant to license agreements or related supply agreements or from the receipt of payments made pursuant to a royalty monetization agreement . license agreements with commercial partners generally include nonrefundable upfront fees and milestone payments , the receipt of which is dependent upon the achievement of certain development , regulatory or commercial milestones , as well as royalties on product sales of licensed products , if and when such product sales occur , and payments for procuring pharmaceutical ingredients . for these agreements , management applies judgment in the allocation of total agreement consideration to the separately identifiable components on a reliable basis that reasonably reflects the selling prices that might be expected to be achieved in stand-alone transactions . for the years ended december 31 , 2017 and 2016 , we recognized into revenue $ 1,000 and $ 11.4 million , respectively , in payments under a license agreement or procurement agreement . for the year ended december 31 , 2016 , we recognized into revenue nonrefundable payments received from our licensee for elobixibat in japan and other specified countries in asia , ea pharma co. , ltd. ( formerly known as ajinomoto pharmaceuticals co. , ltd. ) , or ea pharma , of $ 8.0 million in connection with a renegotiated payment stream and 3.225 million triggered by the decision of ea pharma to proceed with the preparation of a new drug application for elobixibat in japan . we expect that any future revenue recognized under our license agreement with ea pharma will fluctuate from quarter to quarter and year to year as a result of the uncertain timing of future milestone payments , if any . operating expenses research and development expenses research and development expenses consist primarily of personnel costs ( including salaries , benefits and other staff-related costs ) for employees in research and development functions , costs associated with preclinical and clinical development services , including clinical trials and related manufacturing costs , third-party contract research organizations , or cros , and related services and other outside costs , including fees for third-party professional services such as consultants . our preclinical studies and clinical studies are performed by cros . we expect to continue to focus our research and development efforts on preclinical studies and clinical trials of our product candidates . as a result , we expect our research and development expenses to continue to increase for the foreseeable future . our direct research and development expenses are tracked on a program-by-program basis and consist primarily of external costs such as fees paid to cros and others in connection with our preclinical and clinical development activities and related manufacturing . we do not allocate employee costs or facility expenses , including depreciation or other indirect costs , to specific product development programs because these costs are deployed across multiple product development programs and , as such , are not separately classified . successful development of our current and potential future product candidates is highly uncertain . completion dates and costs for our programs can vary significantly by product candidate and are difficult to predict . as a result , we can not estimate with any degree of certainty the costs we will incur in connection with development of any of our product candidates . we anticipate we will make determinations as to which programs and product candidates to pursue and how much funding to direct to each program and product candidate on an ongoing basis in response to the results of ongoing and future clinical trials , our ability to enter into licensing , collaboration and similar arrangements with respect to current or potential future product candidates , success of research and development programs and assessments of commercial potential . general and administrative expenses general and administrative expenses consist primarily of personnel costs ( including salaries and benefits ) for our executive , finance and other administrative employees . in addition , general and administrative expenses include fees for third-party professional services , including consulting , information technology , legal and accounting services and other corporate expenses and allocated overhead . critical accounting policies and estimates our management 's discussion and analysis of financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with united states generally accepted accounting principles . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , 74 revenues and expenses . we base our estimates and assumptions on historical experience and on various assumptions that we believe are reasonable under the circumstances , and we evaluate them on an ongoing basis . these estimates and assumptions form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenues and expenses that are not readily apparent from other sources . actual results and exper iences may differ materially from these estimates and judgments . in addition , our reported financial condition and results of operations could vary if new accounting standards are enacted that are applicable to our business . story_separator_special_tag the difference in interest income ( expense ) , ne t was principally attributable to the conversion of convertible loan notes issued in 2014 and 2015 into equity in connection with the completion of the biodel transaction in november 2016 and a reduction for 2017 in the amount of interest paid under a form er loan facility . non-operating income ( expense ) , net year ended december 31 , change 2017 2016 $ in thousands non-operating income ( expense ) , net $ 335 $ ( 2,675 ) $ ( 3,010 ) non-operating income ( expense ) , net was $ 335,000 of income for the year ended december 31 , 2017 compared with $ 2.7 million of expense for the year ended december 31 , 2016 , a difference of $ 3.0 million . the difference in non-operating income ( expense ) , net was principally attributable to adjustments for the 2016 period to fair value for derivative liabilities associated with outstanding convertible loan notes that were converted into equity in connection with the completion of the biodel transaction in november 2016 , a change in the mark-to-market adjustments on warrants between the periods , and the may 2017 exercise by our former lender of warrants valued at $ 617,000. income tax replace_table_token_3_th income tax expense was $ 212,000 for the year ended december 31 , 2017 compared to $ 62,000 for the year ended december 31 , 2016. years ended december 31 , 2016 and december 31 , 2015 revenue year ended december 31 , change 2016 2015 $ in thousands revenue $ 11,364 $ 5,099 $ 6,265 revenue was $ 11.4 million for the year ended december 31 , 2016 compared with revenue of $ 5.1 million for the year ended december 31 , 2015 , an increase of $ 6.3 million . the higher revenue was due to recognition in full of payments from ea pharma of $ 8.0 million received in april 2016 in connection with a renegotiated payment stream linked to know-how and intellectual property that we had delivered upon inception of the license agreement in 2012 and 3.225 million earned in the fourth quarter of 2016 upon the decision of ea pharma to proceed with the preparation of a new drug application for elobixibat in japan . for the year ended december 31 , 2015 , we recognized into revenue $ 5.1 million in payments received under our license agreement with ea pharma . research and development expenses year ended december 31 , change 2016 2015 $ in thousands research and development expenses $ 8,077 $ 5,634 $ 2,443 79 research and development expenses were $ 8.1 million for the year ended december 31 , 2016 compared with $ 5.6 million for the year ended december 31 , 2015 , an increase of $ 2.4 million . the increase was principally due to a $ 1.7 million increase in costs incurred to third parties for preclinical research services and clinical trials , primarily related to a4250 for which we initiated a phase 2 clinical trial in children with chronic cholestasis and pruritus in the second half of 2015 , as well as an in crease of $ 755,000 primarily in fees for contract r & d consulting services and also comprising facilities and personnel costs . the following table summarizes our principal product development programs and the out-of-pocket third-party expenses incurred with respect to each clinical-stage product candidate and our preclinical programs for the years ended december 31 , 2016 and 2015. replace_table_token_4_th ( 1 ) other project costs are leveraged across multiple programs . ( 2 ) other costs include facility , supply , consultant and overhead costs that support multiple programs . general and administrative expenses year ended december 31 , change 2016 2015 $ in thousands general and administrative expenses $ 15,786 $ 4,462 $ 11,324 general and administrative expenses were $ 15.8 million for the year ended december 31 , 2016 compared with $ 4.5 million for the year ended december 31 , 2015 , an increase of $ 11.3 million . the increase was principally attributable to professional fees incurred in connection with the negotiation and completion of the biodel transaction ( $ 3.9 million ) , higher personnel and stock-based compensation costs ( $ 2.2 million ) , severance costs ( $ 1.7 million ) , lease termination fees ( $ 1.2 million ) , accounting fees ( $ 500,000 ) , as well as costs associated with being a public company . other ( income ) expense , net replace_table_token_5_th other ( income ) expense , net totaled $ 205,000 of income for the year ended december 31 , 2016 compared with $ 271,000 of income for the year ended december 31 , 2015 , a difference of $ 66,000. the difference resulted from changes in currency exchange rates between the two periods . 80 interest expense , net year ended december 31 , change 2016 2015 $ in thousands interest expense , net $ ( 1,319 ) $ ( 1,722 ) $ ( 403 ) interest expense , net totaled $ 1.3 million for the year ended december 31 , 2016 compared with $ 1.7 million for 2015 , a decrease of $ 403,000. the decrease was attributable to lower interest on convertible loan notes issued in 2014 and 2015 due to their conversion into equity in connection with the completion of the biodel transaction . all accrued and unpaid interest on the convertible loan notes as of november 3 , 2016 was waived by the holders of the notes . non-operating expense year ended december 31 , change 2016 2015 $ in thousands non-operating expense $ ( 2,675 ) $ ( 320 ) $ 2,355 non-operating expense was $ 2.7 million for the year ended december 31 , 2016 compared with $ 320,000 for the year ended december 31 , 2015 , an increase of $ 2.4 million . the increase reflected adjustments
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2,698 | the c financial acquisition resulted in an additional $ 19.0 million of federal home loan bank advances at acquisition , of which , approximately $ 7.4 million matured during 2015 and $ 11.6 million remained at december 31 , 2015. additional details related to the change are discussed within the “ deposits and borrowings ” section of management 's discussion and analysis of financial condition and results of operations included as item 7 of this annual report on form 10-k. the corporation was able to maintain all regulatory capital ratios in excess of the regulatory definition of “ well-capitalized ” as discussed in the “ capital ” section of management 's discussion and analysis of financial condition and results of operations included as item 7 of this annual report on form 10-k. results of operations – 2014 net income available to stockholders was $ 60.2 million , or $ 1.65 per fully diluted common share , an increase of $ 18.0 million compared to $ 42.2 million , or $ 1.41 per fully diluted common share in 2013. on november 12 , 2013 , the corporation acquired cfs bancorp , inc. ( `` cfs `` ) , and on november 7 , 2014 , the corporation acquired community bancshares , inc. ( `` community `` ) . as of december 31 , 2014 , total assets equaled $ 5.8 billion , an increase of $ 386.9 million from december 31 , 2013. loans and investments , the corporation 's primary earning assets , totaled $ 5.1 billion , an increase of $ 379.4 million from the prior year 's total of $ 4.7 billion . investments increased $ 85.1 million and total loans increased $ 294.3 million . the corporation acquired $ 145.1 million in loans as a result of the community acquisition . 30 part ii : item 7. and item 7a . management 's discussion and analysis of financial condition and results of operations the corporation 's allowance for loan losses totaled $ 64.0 million as of december 31 , 2014. the allowance provides 131.1 percent coverage of all non-accrual loans and 1.63 percent of total loans . details of the allowance for loan losses and non-performing loans are discussed within the “ loan quality ” and “ provision and allowance for loan losses ” sections of management 's discussion and analysis of financial condition and results of operations included as item 7 of this annual report on form 10-k. the corporation recognized increases in goodwill and core deposit intangible of $ 13.8 million and $ 4.7 million , respectively , as a result of the community acquisition . at december 31 , 2014 , other real estate owned totaled $ 19.3 million , a decrease of $ 2.9 million from the december 31 , 2013 balance of $ 22.2 million . included in the december 31 , 2014 balance was $ 6.7 million acquired in the community acquisition . taxes , both current and deferred , decreased in 2014 by $ 14.7 million . details related to the change in taxes are discussed within the “ income taxes ” section of the management 's discussion and analysis of financial condition and results of operations included as item 7 of this annual report on form 10-k and in note 22. income tax of the notes to consolidated financial statements included as item 8 of this annual report on form 10-k. other assets of $ 20.8 million at december 31 , 2014 , decreased $ 8.2 million from december 31 , 2013. included in the decrease was an $ 11.1 million decrease in prepaid pension expense . additional details related to the prepaid pension expense are discussed in note 21. pension and other post retirement benefit plans , of the notes to consolidated financial statements included as item 8 of this annual report on form 10-k. deposits increased $ 409.2 million from december 31 , 2013 , while borrowings decreased $ 111.3 million during the same period . as part of the community acquisition , the bank acquired deposits of $ 228.4 million . as part of the community acquisition , the corporation issued approximately 1.6 million shares of common stock valued at $ 35.0 million . additional details of this transaction are discussed in note 16. stockholders ' equity of the notes to consolidated financial statements included as item 8 of this annual report on form 10-k. the corporation was able to maintain all regulatory capital ratios in excess of the regulatory definition of “ well-capitalized ” as discussed in the “ capital ” section of management 's discussion and analysis of financial condition and results of operations included as item 7 of this annual report on form 10-k. 31 part ii : item 7. and item 7a . management 's discussion and analysis of financial condition and results of operations net interest income net interest income is the primary source of the corporation 's earnings . net interest margin is a function of net interest income and the level of average earning assets . the following table presents the corporation 's interest income , interest expense , and net interest income as a percent of average earning assets for the three-year period ending in 2015 . replace_table_token_26_th ( 1 ) average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustment . ( 2 ) tax-exempt securities and loans are presented on a fully taxable equivalent basis , using a marginal tax rate of 35 percent for 2015 , 2014 and 2013. these totals equal $ 10,975 , $ 7,921 and $ 6,043 , respectively . ( 3 ) non-accruing loans have been included in the average balances . 32 part ii : item 7. and item 7a . story_separator_special_tag an allowance of $ 1,842,000 was recorded for the remaining balance of these impaired loans totaling $ 6,552,000 and is included in the corporation 's allowance for loan losses . at december 31 , 2015 , non-performing assets , which includes non-accrual loans , renegotiated loans , and other real estate owned , plus loans 90-days delinquent , totaled $ 51,476,000 ; a decrease of $ 23,261,000 from december 31 , 2014 as noted in the table below . replace_table_token_31_th 37 part ii : item 7. and item 7a . management 's discussion and analysis of financial condition and results of operations the composition of non-performing assets and 90-day delinquent loans is reflected in the following table . replace_table_token_32_th although the corporation believes its underwriting and loan review procedures are appropriate for the various kinds of loans it makes , its results of operations and financial condition could be adversely affected in the event the quality of its loan portfolio declines . deterioration in the economic environment including residential and commercial real estate values may result in increased levels of loan delinquencies and credit losses . commercial construction and land development loans were $ 366,704,000 at december 31 , 2015 , an increase of $ 159,483,000 from december 31 , 2014. at december 31 , 2015 , construction and land development loans represent 7.8 percent of loans compared to 5.3 percent at december 31 , 2014. management continues to closely monitor this segment of the portfolio , as well as being selective with additional exposure to this industry . in 2015 , total net charge offs were $ 1,928,000 , a decrease of $ 4,538,000 from 2014 and $ 6,216,000 from 2013. the corporation incurred two commercial loan charge offs over $ 500,000 in 2015 totaling $ 1,635,000. two recoveries over $ 500,000 , totaling $ 1,640,000 , were recognized during the year . residential real estate accounted for $ 1,298,000 , or 67.3 percent of total net charge offs , compared to $ 633,000 , or 9.8 percent , in 2014. the table below represents loan loss experience for the years indicated . replace_table_token_33_th the distribution of the net charge offs for the years indicated is provided in the following table . replace_table_token_34_th 38 part ii : item 7. and item 7a . management 's discussion and analysis of financial condition and results of operations provision and allowance for loan losses the allowance for loan losses is maintained through the provision for loan losses , which is a charge against earnings . the provision for loan losses in 2015 , 2014 and 2013 were $ 417,000 , $ 2,560,000 and $ 6,648,000 , respectively , showing significant year-over-year declines . based on management 's judgment as to the appropriate level of the allowance for loan losses , the amount provided in any period may be greater or less than net loan losses for the same period . the determination of the provision amount and the adequacy of the allowance in any period is based on management 's continuing review and evaluation of the loan portfolio , including an internally administered loan `` watch `` list and an independent review . the evaluation takes into consideration identified credit problems , management 's judgment as to the impact of current economic conditions on the portfolio and the possibility of losses inherent in the loan portfolio that are not specifically identified . additional details are discussed in note 1. nature of operations and summary of significant accounting policies , in the notes to consolidated financial statements included as item 8 of this annual report on form 10-k. management believes that the allowance for loan losses is adequate to cover probable incurred losses inherent in the loan portfolio at december 31 , 2015. the process for determining the adequacy of the allowance for loan losses is critical to the corporation 's financial results . it requires management to make difficult , subjective and complex judgments to estimate the effect of uncertain matters . the allowance for loan losses considers current factors , including economic conditions and ongoing internal and external examination processes and will increase or decrease as deemed necessary to ensure the allowance remains adequate . in addition , the allowance as a percentage of charge offs and nonperforming loans will change at different points in time based on credit performance , portfolio mix and collateral values . management continually evaluates the commercial loan portfolio by including consideration of specific borrower cash flow analysis and estimated collateral values , types and amounts on non-performing loans , past and anticipated loan loss experience , changes in the composition of the loan portfolio , and the current condition and amount of loans outstanding . in conformance with asc 805 and asc 820 , loans purchased after december 31 , 2008 are recorded at the acquisition date fair value . such loans are included in the allowance to the extent a specific impairment is identified that exceeds the fair value adjustment on an impaired loan . an allowance may also be necessary if the historical loss and environmental factor analysis indicates losses inherent in a purchased portfolio exceed the fair value adjustment on the portion of the purchased portfolio not deemed impaired . at december 31 , 2015 , the allowance for loan losses was $ 62,453,000 , a decrease of $ 1,511,000 from december 31 , 2014. as a percent of loans , the allowance decreased to 1.3 percent at december 31 , 2015 from 1.6 percent at december 31 , 2014. the decrease in the ratio of allowance to loans was due in part to a $ 430,289,000 net increase in loans , net of fair value adjustments , resulting from the acquisition of ameriana and c financial . during 2015 , the specific reserves against impaired loans decreased by $ 927,000 , and the allowance for loans not deemed impaired decreased by $ 584,000. not included in the allowance for loan losses
| liquidity liquidity management is the process by which the corporation ensures that adequate liquid funds are available for the holding company and its subsidiaries . these funds are necessary in order to meet financial commitments on a timely basis . these commitments include withdrawals by depositors , funding credit obligations to borrowers , paying dividends to stockholders , paying operating expenses , funding capital expenditures , and maintaining deposit reserve requirements . liquidity is monitored and closely managed by the asset/liability committee . the corporation 's liquidity is dependent upon the receipt of dividends from the bank , which are subject to certain regulatory limitations and access to other funding sources . liquidity of the bank is derived primarily from core deposit growth , principal payments received on loans , the sale and maturity of investment securities , net cash provided by operating activities , and access to other funding sources . the principal source of asset-funded liquidity is investment securities classified as available for sale , the market values of which totaled $ 658,400,000 at december 31 , 2015 , an increase of $ 108,857,000 , or 19.8 percent , from december 31 , 2014 . securities classified as held to maturity that are maturing within a short period of time can also be a source of liquidity . securities classified as held to maturity and that are maturing in one year or less totaled $ 4,144,000 at december 31 , 2015 . in addition , other types of assets such as cash and interest-bearing deposits with other banks , federal funds sold and loans maturing within one year are sources of liquidity . the most stable source of liability-funded liquidity for both the long-term and short-term is deposit growth and retention in the core deposit base .
| 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 liquidity management is the process by which the corporation ensures that adequate liquid funds are available for the holding company and its subsidiaries . these funds are necessary in order to meet financial commitments on a timely basis . these commitments include withdrawals by depositors , funding credit obligations to borrowers , paying dividends to stockholders , paying operating expenses , funding capital expenditures , and maintaining deposit reserve requirements . liquidity is monitored and closely managed by the asset/liability committee . the corporation 's liquidity is dependent upon the receipt of dividends from the bank , which are subject to certain regulatory limitations and access to other funding sources . liquidity of the bank is derived primarily from core deposit growth , principal payments received on loans , the sale and maturity of investment securities , net cash provided by operating activities , and access to other funding sources . the principal source of asset-funded liquidity is investment securities classified as available for sale , the market values of which totaled $ 658,400,000 at december 31 , 2015 , an increase of $ 108,857,000 , or 19.8 percent , from december 31 , 2014 . securities classified as held to maturity that are maturing within a short period of time can also be a source of liquidity . securities classified as held to maturity and that are maturing in one year or less totaled $ 4,144,000 at december 31 , 2015 . in addition , other types of assets such as cash and interest-bearing deposits with other banks , federal funds sold and loans maturing within one year are sources of liquidity . the most stable source of liability-funded liquidity for both the long-term and short-term is deposit growth and retention in the core deposit base .
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Suspicious Activity Report : the c financial acquisition resulted in an additional $ 19.0 million of federal home loan bank advances at acquisition , of which , approximately $ 7.4 million matured during 2015 and $ 11.6 million remained at december 31 , 2015. additional details related to the change are discussed within the “ deposits and borrowings ” section of management 's discussion and analysis of financial condition and results of operations included as item 7 of this annual report on form 10-k. the corporation was able to maintain all regulatory capital ratios in excess of the regulatory definition of “ well-capitalized ” as discussed in the “ capital ” section of management 's discussion and analysis of financial condition and results of operations included as item 7 of this annual report on form 10-k. results of operations – 2014 net income available to stockholders was $ 60.2 million , or $ 1.65 per fully diluted common share , an increase of $ 18.0 million compared to $ 42.2 million , or $ 1.41 per fully diluted common share in 2013. on november 12 , 2013 , the corporation acquired cfs bancorp , inc. ( `` cfs `` ) , and on november 7 , 2014 , the corporation acquired community bancshares , inc. ( `` community `` ) . as of december 31 , 2014 , total assets equaled $ 5.8 billion , an increase of $ 386.9 million from december 31 , 2013. loans and investments , the corporation 's primary earning assets , totaled $ 5.1 billion , an increase of $ 379.4 million from the prior year 's total of $ 4.7 billion . investments increased $ 85.1 million and total loans increased $ 294.3 million . the corporation acquired $ 145.1 million in loans as a result of the community acquisition . 30 part ii : item 7. and item 7a . management 's discussion and analysis of financial condition and results of operations the corporation 's allowance for loan losses totaled $ 64.0 million as of december 31 , 2014. the allowance provides 131.1 percent coverage of all non-accrual loans and 1.63 percent of total loans . details of the allowance for loan losses and non-performing loans are discussed within the “ loan quality ” and “ provision and allowance for loan losses ” sections of management 's discussion and analysis of financial condition and results of operations included as item 7 of this annual report on form 10-k. the corporation recognized increases in goodwill and core deposit intangible of $ 13.8 million and $ 4.7 million , respectively , as a result of the community acquisition . at december 31 , 2014 , other real estate owned totaled $ 19.3 million , a decrease of $ 2.9 million from the december 31 , 2013 balance of $ 22.2 million . included in the december 31 , 2014 balance was $ 6.7 million acquired in the community acquisition . taxes , both current and deferred , decreased in 2014 by $ 14.7 million . details related to the change in taxes are discussed within the “ income taxes ” section of the management 's discussion and analysis of financial condition and results of operations included as item 7 of this annual report on form 10-k and in note 22. income tax of the notes to consolidated financial statements included as item 8 of this annual report on form 10-k. other assets of $ 20.8 million at december 31 , 2014 , decreased $ 8.2 million from december 31 , 2013. included in the decrease was an $ 11.1 million decrease in prepaid pension expense . additional details related to the prepaid pension expense are discussed in note 21. pension and other post retirement benefit plans , of the notes to consolidated financial statements included as item 8 of this annual report on form 10-k. deposits increased $ 409.2 million from december 31 , 2013 , while borrowings decreased $ 111.3 million during the same period . as part of the community acquisition , the bank acquired deposits of $ 228.4 million . as part of the community acquisition , the corporation issued approximately 1.6 million shares of common stock valued at $ 35.0 million . additional details of this transaction are discussed in note 16. stockholders ' equity of the notes to consolidated financial statements included as item 8 of this annual report on form 10-k. the corporation was able to maintain all regulatory capital ratios in excess of the regulatory definition of “ well-capitalized ” as discussed in the “ capital ” section of management 's discussion and analysis of financial condition and results of operations included as item 7 of this annual report on form 10-k. 31 part ii : item 7. and item 7a . management 's discussion and analysis of financial condition and results of operations net interest income net interest income is the primary source of the corporation 's earnings . net interest margin is a function of net interest income and the level of average earning assets . the following table presents the corporation 's interest income , interest expense , and net interest income as a percent of average earning assets for the three-year period ending in 2015 . replace_table_token_26_th ( 1 ) average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustment . ( 2 ) tax-exempt securities and loans are presented on a fully taxable equivalent basis , using a marginal tax rate of 35 percent for 2015 , 2014 and 2013. these totals equal $ 10,975 , $ 7,921 and $ 6,043 , respectively . ( 3 ) non-accruing loans have been included in the average balances . 32 part ii : item 7. and item 7a . story_separator_special_tag an allowance of $ 1,842,000 was recorded for the remaining balance of these impaired loans totaling $ 6,552,000 and is included in the corporation 's allowance for loan losses . at december 31 , 2015 , non-performing assets , which includes non-accrual loans , renegotiated loans , and other real estate owned , plus loans 90-days delinquent , totaled $ 51,476,000 ; a decrease of $ 23,261,000 from december 31 , 2014 as noted in the table below . replace_table_token_31_th 37 part ii : item 7. and item 7a . management 's discussion and analysis of financial condition and results of operations the composition of non-performing assets and 90-day delinquent loans is reflected in the following table . replace_table_token_32_th although the corporation believes its underwriting and loan review procedures are appropriate for the various kinds of loans it makes , its results of operations and financial condition could be adversely affected in the event the quality of its loan portfolio declines . deterioration in the economic environment including residential and commercial real estate values may result in increased levels of loan delinquencies and credit losses . commercial construction and land development loans were $ 366,704,000 at december 31 , 2015 , an increase of $ 159,483,000 from december 31 , 2014. at december 31 , 2015 , construction and land development loans represent 7.8 percent of loans compared to 5.3 percent at december 31 , 2014. management continues to closely monitor this segment of the portfolio , as well as being selective with additional exposure to this industry . in 2015 , total net charge offs were $ 1,928,000 , a decrease of $ 4,538,000 from 2014 and $ 6,216,000 from 2013. the corporation incurred two commercial loan charge offs over $ 500,000 in 2015 totaling $ 1,635,000. two recoveries over $ 500,000 , totaling $ 1,640,000 , were recognized during the year . residential real estate accounted for $ 1,298,000 , or 67.3 percent of total net charge offs , compared to $ 633,000 , or 9.8 percent , in 2014. the table below represents loan loss experience for the years indicated . replace_table_token_33_th the distribution of the net charge offs for the years indicated is provided in the following table . replace_table_token_34_th 38 part ii : item 7. and item 7a . management 's discussion and analysis of financial condition and results of operations provision and allowance for loan losses the allowance for loan losses is maintained through the provision for loan losses , which is a charge against earnings . the provision for loan losses in 2015 , 2014 and 2013 were $ 417,000 , $ 2,560,000 and $ 6,648,000 , respectively , showing significant year-over-year declines . based on management 's judgment as to the appropriate level of the allowance for loan losses , the amount provided in any period may be greater or less than net loan losses for the same period . the determination of the provision amount and the adequacy of the allowance in any period is based on management 's continuing review and evaluation of the loan portfolio , including an internally administered loan `` watch `` list and an independent review . the evaluation takes into consideration identified credit problems , management 's judgment as to the impact of current economic conditions on the portfolio and the possibility of losses inherent in the loan portfolio that are not specifically identified . additional details are discussed in note 1. nature of operations and summary of significant accounting policies , in the notes to consolidated financial statements included as item 8 of this annual report on form 10-k. management believes that the allowance for loan losses is adequate to cover probable incurred losses inherent in the loan portfolio at december 31 , 2015. the process for determining the adequacy of the allowance for loan losses is critical to the corporation 's financial results . it requires management to make difficult , subjective and complex judgments to estimate the effect of uncertain matters . the allowance for loan losses considers current factors , including economic conditions and ongoing internal and external examination processes and will increase or decrease as deemed necessary to ensure the allowance remains adequate . in addition , the allowance as a percentage of charge offs and nonperforming loans will change at different points in time based on credit performance , portfolio mix and collateral values . management continually evaluates the commercial loan portfolio by including consideration of specific borrower cash flow analysis and estimated collateral values , types and amounts on non-performing loans , past and anticipated loan loss experience , changes in the composition of the loan portfolio , and the current condition and amount of loans outstanding . in conformance with asc 805 and asc 820 , loans purchased after december 31 , 2008 are recorded at the acquisition date fair value . such loans are included in the allowance to the extent a specific impairment is identified that exceeds the fair value adjustment on an impaired loan . an allowance may also be necessary if the historical loss and environmental factor analysis indicates losses inherent in a purchased portfolio exceed the fair value adjustment on the portion of the purchased portfolio not deemed impaired . at december 31 , 2015 , the allowance for loan losses was $ 62,453,000 , a decrease of $ 1,511,000 from december 31 , 2014. as a percent of loans , the allowance decreased to 1.3 percent at december 31 , 2015 from 1.6 percent at december 31 , 2014. the decrease in the ratio of allowance to loans was due in part to a $ 430,289,000 net increase in loans , net of fair value adjustments , resulting from the acquisition of ameriana and c financial . during 2015 , the specific reserves against impaired loans decreased by $ 927,000 , and the allowance for loans not deemed impaired decreased by $ 584,000. not included in the allowance for loan losses
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2,699 | replace_table_token_5_th 20 fifty-two week fiscal year ended december 28 , 2014 ( fiscal 2014 ) compared with fifty-two week fiscal year ended december 29 , 2013 ( fiscal 2013 ) revenues : replace_table_token_6_th light industrial revenues : light industrial revenues have in creased $ 10.3 million ( 14.4 % ) from $ 71.6 million in fiscal 2013 to $ 81.9 million in fiscal 2014 , mainly due to the additional volume acquired in the may 2013 acquisition of instaff , which accounted for $ 20.0 million of the in crease in light industrial revenue and partially offset by a de crease of $ 9.7 million in remaining branches . multifamily revenues : multifamily revenues in creased $ 10.5 million ( 44.1 % ) from $ 23.8 million in fiscal 2013 to $ 34.3 million in fiscal 2014 , due to our continued focus on expanding our market outside the state of texas . revenue from branches outside of texas accounted for $ 7.3 million of the in crease and revenue from branches in texas in creased $ 3.2 million . it staffing revenues : it staffing revenues in creased $ 0.3 million ( 0.5 % ) from $ 56.3 million in fiscal 2013 to $ 56.6 million in fiscal 2014 , mainly due to organic growth . in creased revenues from fiscal 2013 were $ 0.8 million at our extrinsic division , which were partially offset by a de crease of $ 0.5 million at our american partners division . gross profit : gross profit represents revenues from services less cost of services expenses , which consist of payroll , payroll taxes , payroll-related insurance , subcontractor costs , and reimbursable costs . replace_table_token_7_th replace_table_token_8_th 21 overall , our gross profit has in creased $ 5.4 million ( 18.6 % ) from $ 29.1 million in fiscal 2013 to $ 34.5 million in fiscal 2014 , mainly due to the increase in revenues . as a percentage of revenue , gross profit in creased slightly from fiscal 2013 to fiscal 2014 , mainly due to a revenue mix shift resulting from increased revenues from higher margin customers and a reduction in revenue of some lower margin customers . light industrial , which has the lowest gross profit percentages , contributed approximately 30.0 % of the fiscal 2013 gross profit and approximately 31.4 % of the fiscal 2014 gross profit . multifamily , which has the highest gross profit percentages , contributed approximately 26.9 % of the fiscal 2013 gross profit and approximately 33.3 % of the fiscal 2014 gross profit . it staffing contributed approximately 43.1 % of the fiscal 2013 gross profit and approximately 35.3 % of the fiscal 2014 gross profit . light industrial gross profit : light industrial gross profit in creased $ 2.2 million ( 25.3 % ) from $ 8.7 million in fiscal 2013 to $ 10.9 million in fiscal 2014 , mainly due to the additional volume acquired in the may 2013 acquisition of instaff . as a percentage of revenue , gross profit decreased from 12.2 % in fiscal 2013 to 13.3 % in fiscal 2014 . multifamily gross profit : multifamily gross profit in creased $ 3.7 million ( 47.4 % ) from $ 7.8 million in fiscal 2013 to $ 11.5 million in fiscal 2014 , mainly due to an increase in volume primarily generated by branches outside of texas . as a percentage of revenue , gross profit in creased from 32.8 % in fiscal 2013 to 33.5 % in fiscal 2014 . it staffing gross profit : it staffing gross profit de creased $ 0.5 million ( 4.0 % ) from $ 12.6 million in fiscal 2013 to $ 12.1 million in fiscal 2014 due to the mix of customers . as a percentage of revenue , gross profit de creased from 22.3 % in fiscal 2013 to 21.5 % in fiscal 2014 . selling , general and administrative expenses : selling , general and administrative expenses in creased $ 5.1 million ( 26.8 % ) to $ 24.1 million in fiscal 2014 from $ 19.0 million in fiscal 2013 , primarily due to additional selling expenses of approximately $ 2.5 million at multifamily with $ 1.8 million from branches outside of texas and $ 0.7 million from branches in texas , $ 1.4 million at light industrial , and $ 1.2 million at corporate in stock-based compensation . depreciation and amortization : depreciation and amortization charges de creased $ 0.3 million ( 6.1 % ) to $ 4.6 million in fiscal 2014 , compared with $ 4.9 million during fiscal 2013 . the de crease in depreciation and amortization is primarily due to changing the it staffing segment 's trade names to an indefinite lived intangible assets that would no longer amortize , due to a remarketing launch in 2014 , after which the company noticed significant remaining name recognition and distinctiveness in its it staffing segment 's trade names and decided to continue their use in operations indefinitely . interest expense , net : interest expense , net was $ 2.7 million in fiscal 2014 compared with $ 4.1 million in fiscal 2013 , a de crease of $ 1.4 million . the de crease in interest expense , net is primarily due to an amendment with the lender under the senior credit facility on january 29 , 2014 which resulted in the repayment of the subordinated loans having a higher interest rate . income taxes : we had income tax expense of $ 1.4 million in fiscal 2014 , compared with income tax benefit of $ 7.5 million in fiscal 2013 . story_separator_special_tag revenues include reimbursements of travel and out-of-pocket expenses with the equivalent amounts of expense recorded in cost of services . we consider revenue to be earned once evidence of an arrangement has been obtained , services are delivered , fees are fixed or determinable , and collectability is reasonably assured . allowance for doubtful accounts we establish an allowance for doubtful accounts for estimated losses resulting from the failure of our customers to make required payments . the allowance for doubtful accounts is determined based on management 's judgments and assumptions , including general economic conditions , portfolio composition , prior loss experience , and expectations of future write-offs . the allowance for doubtful accounts is reviewed quarterly and past due balances are written off after they are deemed to be uncollectible after all means of collection have been exhausted . if the financial condition of our customers were to deteriorate , resulting in an impairment of their ability to make payments , additional allowances may be required . goodwill and intangible assets goodwill is not amortized , but instead is measured at the reporting unit level for impairment annually at the end of each fiscal year , or more frequently if conditions indicate an earlier review is necessary . if we have determined that it is more likely than not that the fair value for one or more reporting units is greater than their carrying value , we may use a qualitative assessment for the annual impairment test . in conducting the qualitative assessment , we assess the totality of relevant events and circumstances that affect the fair value or carrying value of the reporting unit . such events and circumstances may include macroeconomic conditions , industry and competitive environment conditions , overall financial performance , reporting unit specific events and market considerations . we may also consider recent valuations of the reporting unit , including the magnitude of the difference between the most recent fair value estimate and the carrying value , as well as both positive and adverse events and circumstances , and the extent to which each of the events and circumstances identified may affect the comparison of a reporting unit 's fair value with its carrying value . for reporting units where the qualitative assessment is not used , goodwill is tested for impairment using a two-step process . in the first step , the estimated fair value of a reporting unit is compared to its carrying value . the fair value of the reporting unit is determined based on discounted cash flow projections . if the estimated fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporting unit , goodwill is not considered impaired and no further testing is required . if the carrying value of the net assets assigned to a reporting unit exceeds the estimated fair value of a reporting unit , a second step of the impairment test is performed in order to determine the implied fair value of a reporting unit 's goodwill . if the carrying value of a reporting unit 's goodwill exceeds its implied fair value , goodwill is deemed impaired and is written down to its implied fair value . 26 based on our annual testing , we have determined that there was no goodwill impairment in fiscal 2014 or fiscal 2013 . as of december 28 , 2014 , we have allocated $ 5.0 million , $ 1.1 million , and $ 0.3 million of total goodwill to our three separate reporting units : light industrial , multifamily and it staffing , respectively . we hold intangible assets with indefinite and finite lives . intangible assets with indefinite useful lives are not amortized but are tested at least annually for impairment . intangible assets with finite useful lives are amortized over their respective estimated useful lives , ranging from three to five years , based on a pattern in which the economic benefit of the respective intangible asset is realized . in may 2014 , due to a recent remarketing launch , we reassessed the useful lives of trade name assets and concluded that these are indefinite lived intangible assets and would no longer amortize them . we annually evaluate the remaining useful lives of our finite intangible assets to determine whether events and circumstances warrant a revision to the remaining period of amortization . we also evaluate the recoverability of intangible assets whenever events or changes in circumstances indicate that an intangible asset 's carrying amount may not be recoverable . we have determined that there were no impairment indicators for these assets in fiscal 2014 and fiscal 2013 . identifiable intangible assets recognized in conjunction with acquisitions are recorded at fair value . significant unobservable inputs were used to determine the fair value of the identifiable intangible assets based on the income approach valuation model whereby the present worth and anticipated future benefits of the identifiable intangible assets were discounted back to their net present value . goodwill represents the difference between the enterprise value/cash paid less the fair value of all recognized asset fair values including the identifiable intangible asset values . recent accounting pronouncements in may 2014 , the financial accounting standards board ( “ fasb ” ) issued accounting standards update ( “ asu ” ) 2014-09 , revenue from contracts with customers ( asu 2014-09 ) , which supersedes nearly all existing revenue recognition guidance under gaap . the core principle of asu 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services . asu 2014-09 defines a five step process to achieve this core principle and , in doing so , more judgment and estimates may be required within the revenue recognition process than are required under existing gaap . the standard is effective for annual
| liquidity and capital resources our primary sources of liquidity are cash generated from operations and borrowings under our senior credit facility . our primary uses of cash are payroll , subcontractor costs , operating expenses , capital expenditures and debt service . we believe that the cash generated from operations , together with the borrowing availability under our senior credit facility , will be sufficient to meet our normal working capital needs for at least the next twelve months , including investments made , and expenses incurred , in connection with opening new branches throughout the next year . our ability to continue to fund these items may be affected by general economic , competitive and other factors , many of which are outside of our control . if our future cash flow from operations and other capital resources are insufficient to fund our liquidity needs , we may be forced to obtain additional debt or equity capital or refinance all or a portion of our debt . at december 28 , 2014 , we are in material compliance with all debt covenants . while we believe we have sufficient liquidity and capital resources to meet our current operating requirements and expansion plans , we may elect to pursue additional growth opportunities within the next year that could require additional debt or equity financing . if we are unable to secure additional financing at favorable terms in order to pursue such additional growth opportunities , our ability to pursue such opportunities could be materially adversely affected . 22 a summary of our operating , investing and financing activities are shown in the following table : replace_table_token_9_th operating activities cash provided by operating activities consists of net ( loss ) income adjusted for non-cash items , including depreciation and amortization , loss on extinguishment of related party debt , stock compensation expense , put option adjustment , gain on contingent consideration , and the effect of working capital changes . the primary drivers of cash inflows and outflows are accounts receivable , security deposits , accounts payable and accrued expenses .
| 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 are cash generated from operations and borrowings under our senior credit facility . our primary uses of cash are payroll , subcontractor costs , operating expenses , capital expenditures and debt service . we believe that the cash generated from operations , together with the borrowing availability under our senior credit facility , will be sufficient to meet our normal working capital needs for at least the next twelve months , including investments made , and expenses incurred , in connection with opening new branches throughout the next year . our ability to continue to fund these items may be affected by general economic , competitive and other factors , many of which are outside of our control . if our future cash flow from operations and other capital resources are insufficient to fund our liquidity needs , we may be forced to obtain additional debt or equity capital or refinance all or a portion of our debt . at december 28 , 2014 , we are in material compliance with all debt covenants . while we believe we have sufficient liquidity and capital resources to meet our current operating requirements and expansion plans , we may elect to pursue additional growth opportunities within the next year that could require additional debt or equity financing . if we are unable to secure additional financing at favorable terms in order to pursue such additional growth opportunities , our ability to pursue such opportunities could be materially adversely affected . 22 a summary of our operating , investing and financing activities are shown in the following table : replace_table_token_9_th operating activities cash provided by operating activities consists of net ( loss ) income adjusted for non-cash items , including depreciation and amortization , loss on extinguishment of related party debt , stock compensation expense , put option adjustment , gain on contingent consideration , and the effect of working capital changes . the primary drivers of cash inflows and outflows are accounts receivable , security deposits , accounts payable and accrued expenses .
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Suspicious Activity Report : replace_table_token_5_th 20 fifty-two week fiscal year ended december 28 , 2014 ( fiscal 2014 ) compared with fifty-two week fiscal year ended december 29 , 2013 ( fiscal 2013 ) revenues : replace_table_token_6_th light industrial revenues : light industrial revenues have in creased $ 10.3 million ( 14.4 % ) from $ 71.6 million in fiscal 2013 to $ 81.9 million in fiscal 2014 , mainly due to the additional volume acquired in the may 2013 acquisition of instaff , which accounted for $ 20.0 million of the in crease in light industrial revenue and partially offset by a de crease of $ 9.7 million in remaining branches . multifamily revenues : multifamily revenues in creased $ 10.5 million ( 44.1 % ) from $ 23.8 million in fiscal 2013 to $ 34.3 million in fiscal 2014 , due to our continued focus on expanding our market outside the state of texas . revenue from branches outside of texas accounted for $ 7.3 million of the in crease and revenue from branches in texas in creased $ 3.2 million . it staffing revenues : it staffing revenues in creased $ 0.3 million ( 0.5 % ) from $ 56.3 million in fiscal 2013 to $ 56.6 million in fiscal 2014 , mainly due to organic growth . in creased revenues from fiscal 2013 were $ 0.8 million at our extrinsic division , which were partially offset by a de crease of $ 0.5 million at our american partners division . gross profit : gross profit represents revenues from services less cost of services expenses , which consist of payroll , payroll taxes , payroll-related insurance , subcontractor costs , and reimbursable costs . replace_table_token_7_th replace_table_token_8_th 21 overall , our gross profit has in creased $ 5.4 million ( 18.6 % ) from $ 29.1 million in fiscal 2013 to $ 34.5 million in fiscal 2014 , mainly due to the increase in revenues . as a percentage of revenue , gross profit in creased slightly from fiscal 2013 to fiscal 2014 , mainly due to a revenue mix shift resulting from increased revenues from higher margin customers and a reduction in revenue of some lower margin customers . light industrial , which has the lowest gross profit percentages , contributed approximately 30.0 % of the fiscal 2013 gross profit and approximately 31.4 % of the fiscal 2014 gross profit . multifamily , which has the highest gross profit percentages , contributed approximately 26.9 % of the fiscal 2013 gross profit and approximately 33.3 % of the fiscal 2014 gross profit . it staffing contributed approximately 43.1 % of the fiscal 2013 gross profit and approximately 35.3 % of the fiscal 2014 gross profit . light industrial gross profit : light industrial gross profit in creased $ 2.2 million ( 25.3 % ) from $ 8.7 million in fiscal 2013 to $ 10.9 million in fiscal 2014 , mainly due to the additional volume acquired in the may 2013 acquisition of instaff . as a percentage of revenue , gross profit decreased from 12.2 % in fiscal 2013 to 13.3 % in fiscal 2014 . multifamily gross profit : multifamily gross profit in creased $ 3.7 million ( 47.4 % ) from $ 7.8 million in fiscal 2013 to $ 11.5 million in fiscal 2014 , mainly due to an increase in volume primarily generated by branches outside of texas . as a percentage of revenue , gross profit in creased from 32.8 % in fiscal 2013 to 33.5 % in fiscal 2014 . it staffing gross profit : it staffing gross profit de creased $ 0.5 million ( 4.0 % ) from $ 12.6 million in fiscal 2013 to $ 12.1 million in fiscal 2014 due to the mix of customers . as a percentage of revenue , gross profit de creased from 22.3 % in fiscal 2013 to 21.5 % in fiscal 2014 . selling , general and administrative expenses : selling , general and administrative expenses in creased $ 5.1 million ( 26.8 % ) to $ 24.1 million in fiscal 2014 from $ 19.0 million in fiscal 2013 , primarily due to additional selling expenses of approximately $ 2.5 million at multifamily with $ 1.8 million from branches outside of texas and $ 0.7 million from branches in texas , $ 1.4 million at light industrial , and $ 1.2 million at corporate in stock-based compensation . depreciation and amortization : depreciation and amortization charges de creased $ 0.3 million ( 6.1 % ) to $ 4.6 million in fiscal 2014 , compared with $ 4.9 million during fiscal 2013 . the de crease in depreciation and amortization is primarily due to changing the it staffing segment 's trade names to an indefinite lived intangible assets that would no longer amortize , due to a remarketing launch in 2014 , after which the company noticed significant remaining name recognition and distinctiveness in its it staffing segment 's trade names and decided to continue their use in operations indefinitely . interest expense , net : interest expense , net was $ 2.7 million in fiscal 2014 compared with $ 4.1 million in fiscal 2013 , a de crease of $ 1.4 million . the de crease in interest expense , net is primarily due to an amendment with the lender under the senior credit facility on january 29 , 2014 which resulted in the repayment of the subordinated loans having a higher interest rate . income taxes : we had income tax expense of $ 1.4 million in fiscal 2014 , compared with income tax benefit of $ 7.5 million in fiscal 2013 . story_separator_special_tag revenues include reimbursements of travel and out-of-pocket expenses with the equivalent amounts of expense recorded in cost of services . we consider revenue to be earned once evidence of an arrangement has been obtained , services are delivered , fees are fixed or determinable , and collectability is reasonably assured . allowance for doubtful accounts we establish an allowance for doubtful accounts for estimated losses resulting from the failure of our customers to make required payments . the allowance for doubtful accounts is determined based on management 's judgments and assumptions , including general economic conditions , portfolio composition , prior loss experience , and expectations of future write-offs . the allowance for doubtful accounts is reviewed quarterly and past due balances are written off after they are deemed to be uncollectible after all means of collection have been exhausted . if the financial condition of our customers were to deteriorate , resulting in an impairment of their ability to make payments , additional allowances may be required . goodwill and intangible assets goodwill is not amortized , but instead is measured at the reporting unit level for impairment annually at the end of each fiscal year , or more frequently if conditions indicate an earlier review is necessary . if we have determined that it is more likely than not that the fair value for one or more reporting units is greater than their carrying value , we may use a qualitative assessment for the annual impairment test . in conducting the qualitative assessment , we assess the totality of relevant events and circumstances that affect the fair value or carrying value of the reporting unit . such events and circumstances may include macroeconomic conditions , industry and competitive environment conditions , overall financial performance , reporting unit specific events and market considerations . we may also consider recent valuations of the reporting unit , including the magnitude of the difference between the most recent fair value estimate and the carrying value , as well as both positive and adverse events and circumstances , and the extent to which each of the events and circumstances identified may affect the comparison of a reporting unit 's fair value with its carrying value . for reporting units where the qualitative assessment is not used , goodwill is tested for impairment using a two-step process . in the first step , the estimated fair value of a reporting unit is compared to its carrying value . the fair value of the reporting unit is determined based on discounted cash flow projections . if the estimated fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporting unit , goodwill is not considered impaired and no further testing is required . if the carrying value of the net assets assigned to a reporting unit exceeds the estimated fair value of a reporting unit , a second step of the impairment test is performed in order to determine the implied fair value of a reporting unit 's goodwill . if the carrying value of a reporting unit 's goodwill exceeds its implied fair value , goodwill is deemed impaired and is written down to its implied fair value . 26 based on our annual testing , we have determined that there was no goodwill impairment in fiscal 2014 or fiscal 2013 . as of december 28 , 2014 , we have allocated $ 5.0 million , $ 1.1 million , and $ 0.3 million of total goodwill to our three separate reporting units : light industrial , multifamily and it staffing , respectively . we hold intangible assets with indefinite and finite lives . intangible assets with indefinite useful lives are not amortized but are tested at least annually for impairment . intangible assets with finite useful lives are amortized over their respective estimated useful lives , ranging from three to five years , based on a pattern in which the economic benefit of the respective intangible asset is realized . in may 2014 , due to a recent remarketing launch , we reassessed the useful lives of trade name assets and concluded that these are indefinite lived intangible assets and would no longer amortize them . we annually evaluate the remaining useful lives of our finite intangible assets to determine whether events and circumstances warrant a revision to the remaining period of amortization . we also evaluate the recoverability of intangible assets whenever events or changes in circumstances indicate that an intangible asset 's carrying amount may not be recoverable . we have determined that there were no impairment indicators for these assets in fiscal 2014 and fiscal 2013 . identifiable intangible assets recognized in conjunction with acquisitions are recorded at fair value . significant unobservable inputs were used to determine the fair value of the identifiable intangible assets based on the income approach valuation model whereby the present worth and anticipated future benefits of the identifiable intangible assets were discounted back to their net present value . goodwill represents the difference between the enterprise value/cash paid less the fair value of all recognized asset fair values including the identifiable intangible asset values . recent accounting pronouncements in may 2014 , the financial accounting standards board ( “ fasb ” ) issued accounting standards update ( “ asu ” ) 2014-09 , revenue from contracts with customers ( asu 2014-09 ) , which supersedes nearly all existing revenue recognition guidance under gaap . the core principle of asu 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services . asu 2014-09 defines a five step process to achieve this core principle and , in doing so , more judgment and estimates may be required within the revenue recognition process than are required under existing gaap . the standard is effective for annual
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