we expect our product 31 development , sales and marketing , and general and administrative expenses as a percentage of revenues to decrease over time as we grow our revenues , and we anticipate that we will gain economies of scale by increasing our customer base without direct incremental development costs and by utilizing more of the capacity of our data centers . since inception , we have invested heavily in our professional services organization to help ensure that customers successfully deploy and adopt our applications . additionally , we continue to expand our professional services partner ecosystem to further support our customers . we believe our investment in professional services , as well as partners building consulting practices around workday , will drive additional customer subscriptions and continued growth in revenues . in addition , over time we expect professional services revenues and the cost of professional services as a percentage of total revenues to decline as we increasingly rely on our partners to deploy workday applications and as the number of our existing customers continues to grow . fiscal year end our fiscal year ends on january 31. references to fiscal 2014 , for example , refer to the year ended january 31 , 2014. components of results of operations revenues we primarily derive our revenues from subscription services fees and professional services fees . subscription services revenues primarily consist of fees that give our customers access to our cloud applications , which include routine customer support at no additional cost . professional services fees include deployment services , optimization services , and training . subscription services revenues accounted for over 75 % of our total revenues during fiscal 2014 and represented over 90 % of our total unearned revenue as of january 31 , 2014. subscription services revenues are driven primarily by the number of customers , the number of workers at each customer , the number of applications subscribed to by each customer , the price of our applications , and to a lesser extent , renewal rates . to date , revenues from renewals have not been a substantial component of revenues . the mix of the applications to which a customer subscribes can affect our financial performance due to price differentials in our applications . compared to our other offerings , our hcm application has been available for a longer period of time , is more established in the marketplace and has benefited from continued enhancements of the functionality over a longer period of time , all of which help us to improve our pricing for that application . however , new products or services offerings by competitors in the future could impact the mix and pricing of our offerings . subscription services fees are recognized ratably as revenues over the contract term beginning on the date the application is made available to the customer , which is generally within one week of contract signing . our subscription contracts typically have a term of three years and are non-cancelable . we generally invoice our customers in advance , in annual installments . amounts that have been invoiced are initially recorded as unearned revenue . amounts that have not been invoiced represent backlog and are not reflected in our consolidated financial statements . our consulting engagements are typically billed on a time and materials basis , and revenues are typically recognized as the services are performed . we offer a number of training options intended to support our customers in configuring , using and administering our services . in some cases , we supplement our consulting teams by subcontracting resources from our service partners and deploying them on customer engagements . as workday 's professional services organization and the workday-related consulting practices of our partner firms 32 continue to develop , we expect the partners to increasingly contract directly with our subscription customers . as a result of this trend , and the increase of our subscription services revenues , we expect professional services revenues as a percentage of total revenues to decline over time . approximately 2 % of our total revenues for year ended january 31 , 2014 were derived from multiple-deliverable arrangements that were accounted for as a single unit of accounting , because some of our professional services offerings did not have standalone value when the related contracts were executed . in these situations , all revenue is recognized ratably over the term of the subscription contract . additionally , in these situations , we defer the direct costs of the related professional services contract and those direct costs are amortized over the same period as the professional services revenues are recognized . as of january 31 , 2014 , less than 10 % of our total unearned revenue balance represented multiple-deliverable arrangements accounted for as a single unit of accounting . for contracts executed subsequent to february 1 , 2012 , there was standalone value for all deliverables . costs and expenses costs of subscription services revenues . costs of subscription services revenues consist primarily of employee-related expenses related to hosting our applications and providing support , the costs of data center capacity , and depreciation of owned and leased computer equipment and software . costs of professional services revenues . costs of professional services revenues consist primarily of employee-related expenses associated with these services , the cost of subcontractors and travel costs . the percentage of total revenues derived from professional services was 24 % in fiscal 2014. the cost of providing professional services is significantly higher as a percentage of the related revenues than for our subscriptions . product development . product development expenses consist primarily of employee-related expenses . we continue to focus our product development efforts on adding new features and applications , increasing the functionality and enhancing the ease of use of our cloud applications . sales and marketing . story_separator_special_tag when calculating free cash flows , we subtract the gross value of all equipment , even when acquired under capital leases , so we can evaluate our progress on free cash flows independent of our capital financing decisions . management believes information regarding free cash flows provides investors and others with an important perspective on the cash available to make strategic acquisitions and investments , to fund ongoing operations and to fund other capital expenditures . limitations on the use of non-gaap financial measures a limitation of our non-gaap financial measures of core operating expenses and free cash flows is that they do not have uniform definitions . our definitions will likely differ from the definitions used by other companies , including peer companies , and therefore comparability may be limited . thus , our non-gaap measures of core operating expenses and free cash flows should be considered in addition to , not as a substitute for , or in isolation from , measures prepared in accordance with gaap . additionally , in the case of share-based compensation , if we did not pay out a portion of compensation in the form of share-based compensation and related employer payroll taxes , the cash salary expense included in costs of revenues and operating expenses would be higher , which would affect our cash position . further , the non-gaap measure of core operating 40 expenses has certain limitations because it does not reflect all items of income and expense that affect our operations and are reflected in the gaap measure of total operating expenses . we compensate for these limitations by reconciling core operating expenses to the most comparable gaap financial measure and reviewing these measures in conjunction with gaap financial information . management encourages investors and others to review our financial information in its entirety , not to rely on any single financial measure and to view our non-gaap financial measures in conjunction with the most comparable gaap financial measures . see results of operationsoperating expenses for a reconciliation of the non-gaap financial measure of core operating expenses to the most comparable gaap measure , total operating expenses ,  for fiscal 2014 , 2013 and 2012. see liquidity and capital resources for a reconciliation of free cash flows to the most comparable gaap measure , net cash provided by ( used in ) operating activities ,  for fiscal 2014 , 2013 and 2012. backlog we generally sign multiple-year subscription contracts for our applications . the timing of our invoices to the customer is a negotiated term and varies among our subscription contracts . for multiple-year agreements , it is common to invoice an initial amount at contract signing followed by subsequent annual invoices . at any point in the contract term , there can be amounts that we have not yet been contractually able to invoice . until such time as these amounts are invoiced , they are not recorded in revenues , unearned revenue or elsewhere in our consolidated financial statements . to the extent future invoicing is considered certain , we consider the contract to be non-cancelable backlog . future invoicing is considered certain when we have a fully executed non-cancelable contract , and invoicing is not dependent on a future event such as customer funding or the delivery of a product . the amount of subscription contract backlog was $ 636.1 million as of january 31 , 2014. we expect that the amount of backlog relative to the total value of our contracts will change from year to year for several reasons , including the amount of cash collected early in the contract term , the specific timing and duration of large customer subscription agreements , varying invoicing cycles of subscription agreements , the specific timing of customer renewals , changes in customer financial circumstances and foreign currency fluctuations . backlog may also vary based on changes in the average non-cancelable term of our subscription agreements . accordingly , we believe that fluctuations in backlog are not a reliable indicator of future revenues and we do not utilize backlog as a key management metric internally . contractual obligations the following table summarizes our consolidated principal contractual cash obligations , as of january 31 , 2014 : replace_table_token_13_th ( 1 ) represents aggregate principal amount of the notes , without the effect of associated discounts . 41 ( 2 ) represents estimated aggregate interest obligations for our outstanding notes that are payable in cash . ( 3 ) includes principal and imputed interest . ( 4 ) for the 95-year lease we entered in january 2013 , the cash obligations exclude the potential annual rental increases based on the increases to the consumer price index ( cpi ) . ( see more information under commitments below ) . we expect to make higher rent payments over the lease term due to increases in the cpi . commitments our principal commitments primarily consist of obligations under leases for office space and co-location facilities for data center capacity and our development and test data center , and computer equipment . for fiscal 2015 , we anticipate leasing additional office space near our headquarters and in various other locations around the world to support our growth . in january 2014 , workday acquired a 95-year lease for a 6.9 acre parcel of land adjacent to our existing pleasanton , california leased facilities . the lease affords us the opportunity to develop office space for employees in pleasanton , california . we paid $ 10.0 million to acquire the lease and $ 1.5 million in prepaid rent through december 31 , 2020. if construction does not commence by june 30 , 2015 , we will be required to make additional payments to the lessor , ranging from $ 0.2 million to $ 1.0 million based on the length of the delay . purchase orders are not included in the table above . our purchase orders represent authorizations to purchase rather

liquidity and capital resources as of january 31 , 2014 , our principal sources of liquidity were cash , cash equivalents and marketable securities totaling $ 1.9 billion , which were held for working capital purposes . our cash equivalents and marketable securities are comprised primarily of u.s. agency obligations , u.s. treasury securities , money market funds , commercial paper , and u.s. corporate securities . we have financed our operations primarily through sales of equity securities , customer payments , and issuance of debt . in july 2013 , we issued notes which provided us with net proceeds of $ 584.3 million . in january 2014 , we sold 6.9 million shares of our class a common stock in a follow-on offering which provided us with net proceeds of $ 592.2 million . our future capital requirements will depend on many factors , including our customer growth rate , subscription renewal activity , the timing and extent of development efforts , the expansion of sales and marketing activities , the introduction of new and enhanced services offerings , and the continuing market acceptance of our services . we may in the future enter into arrangements to acquire or invest in complementary businesses , services and technologies , and intellectual property rights . we may choose to seek additional equity or debt financing . our cash flows for fiscal 2014 , 2013 and 2012 were as follows : replace_table_token_11_th in evaluating our performance internally , we focus on long-term , sustainable growth in free cash flows . we define free cash flows , a non-gaap financial measure , as net cash provided by ( used in ) operating activities minus purchases of property and equipment , property and equipment acquired under capital leases and purchase of other intangible assets . see non-gaap financial measures for additional information . our free cash flows for fiscal 2014 , 2013 and 2012 were as follows : replace_table_token_12_th operating activities management uses cash provided by ( used in ) operating activities as a key financial matric .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 , 2014 , our principal sources of liquidity were cash , cash equivalents and marketable securities totaling $ 1.9 billion , which were held for working capital purposes . our cash equivalents and marketable securities are comprised primarily of u.s. agency obligations , u.s. treasury securities , money market funds , commercial paper , and u.s. corporate securities . we have financed our operations primarily through sales of equity securities , customer payments , and issuance of debt . in july 2013 , we issued notes which provided us with net proceeds of $ 584.3 million . in january 2014 , we sold 6.9 million shares of our class a common stock in a follow-on offering which provided us with net proceeds of $ 592.2 million . our future capital requirements will depend on many factors , including our customer growth rate , subscription renewal activity , the timing and extent of development efforts , the expansion of sales and marketing activities , the introduction of new and enhanced services offerings , and the continuing market acceptance of our services . we may in the future enter into arrangements to acquire or invest in complementary businesses , services and technologies , and intellectual property rights . we may choose to seek additional equity or debt financing . our cash flows for fiscal 2014 , 2013 and 2012 were as follows : replace_table_token_11_th in evaluating our performance internally , we focus on long-term , sustainable growth in free cash flows . we define free cash flows , a non-gaap financial measure , as net cash provided by ( used in ) operating activities minus purchases of property and equipment , property and equipment acquired under capital leases and purchase of other intangible assets . see non-gaap financial measures for additional information . our free cash flows for fiscal 2014 , 2013 and 2012 were as follows : replace_table_token_12_th operating activities management uses cash provided by ( used in ) operating activities as a key financial matric .
```    
 Suspicious Activity Report : we expect our product 31 development , sales and marketing , and general and administrative expenses as a percentage of revenues to decrease over time as we grow our revenues , and we anticipate that we will gain economies of scale by increasing our customer base without direct incremental development costs and by utilizing more of the capacity of our data centers . since inception , we have invested heavily in our professional services organization to help ensure that customers successfully deploy and adopt our applications . additionally , we continue to expand our professional services partner ecosystem to further support our customers . we believe our investment in professional services , as well as partners building consulting practices around workday , will drive additional customer subscriptions and continued growth in revenues . in addition , over time we expect professional services revenues and the cost of professional services as a percentage of total revenues to decline as we increasingly rely on our partners to deploy workday applications and as the number of our existing customers continues to grow . fiscal year end our fiscal year ends on january 31. references to fiscal 2014 , for example , refer to the year ended january 31 , 2014. components of results of operations revenues we primarily derive our revenues from subscription services fees and professional services fees . subscription services revenues primarily consist of fees that give our customers access to our cloud applications , which include routine customer support at no additional cost . professional services fees include deployment services , optimization services , and training . subscription services revenues accounted for over 75 % of our total revenues during fiscal 2014 and represented over 90 % of our total unearned revenue as of january 31 , 2014. subscription services revenues are driven primarily by the number of customers , the number of workers at each customer , the number of applications subscribed to by each customer , the price of our applications , and to a lesser extent , renewal rates . to date , revenues from renewals have not been a substantial component of revenues . the mix of the applications to which a customer subscribes can affect our financial performance due to price differentials in our applications . compared to our other offerings , our hcm application has been available for a longer period of time , is more established in the marketplace and has benefited from continued enhancements of the functionality over a longer period of time , all of which help us to improve our pricing for that application . however , new products or services offerings by competitors in the future could impact the mix and pricing of our offerings . subscription services fees are recognized ratably as revenues over the contract term beginning on the date the application is made available to the customer , which is generally within one week of contract signing . our subscription contracts typically have a term of three years and are non-cancelable . we generally invoice our customers in advance , in annual installments . amounts that have been invoiced are initially recorded as unearned revenue . amounts that have not been invoiced represent backlog and are not reflected in our consolidated financial statements . our consulting engagements are typically billed on a time and materials basis , and revenues are typically recognized as the services are performed . we offer a number of training options intended to support our customers in configuring , using and administering our services . in some cases , we supplement our consulting teams by subcontracting resources from our service partners and deploying them on customer engagements . as workday 's professional services organization and the workday-related consulting practices of our partner firms 32 continue to develop , we expect the partners to increasingly contract directly with our subscription customers . as a result of this trend , and the increase of our subscription services revenues , we expect professional services revenues as a percentage of total revenues to decline over time . approximately 2 % of our total revenues for year ended january 31 , 2014 were derived from multiple-deliverable arrangements that were accounted for as a single unit of accounting , because some of our professional services offerings did not have standalone value when the related contracts were executed . in these situations , all revenue is recognized ratably over the term of the subscription contract . additionally , in these situations , we defer the direct costs of the related professional services contract and those direct costs are amortized over the same period as the professional services revenues are recognized . as of january 31 , 2014 , less than 10 % of our total unearned revenue balance represented multiple-deliverable arrangements accounted for as a single unit of accounting . for contracts executed subsequent to february 1 , 2012 , there was standalone value for all deliverables . costs and expenses costs of subscription services revenues . costs of subscription services revenues consist primarily of employee-related expenses related to hosting our applications and providing support , the costs of data center capacity , and depreciation of owned and leased computer equipment and software . costs of professional services revenues . costs of professional services revenues consist primarily of employee-related expenses associated with these services , the cost of subcontractors and travel costs . the percentage of total revenues derived from professional services was 24 % in fiscal 2014. the cost of providing professional services is significantly higher as a percentage of the related revenues than for our subscriptions . product development . product development expenses consist primarily of employee-related expenses . we continue to focus our product development efforts on adding new features and applications , increasing the functionality and enhancing the ease of use of our cloud applications . sales and marketing . story_separator_special_tag when calculating free cash flows , we subtract the gross value of all equipment , even when acquired under capital leases , so we can evaluate our progress on free cash flows independent of our capital financing decisions . management believes information regarding free cash flows provides investors and others with an important perspective on the cash available to make strategic acquisitions and investments , to fund ongoing operations and to fund other capital expenditures . limitations on the use of non-gaap financial measures a limitation of our non-gaap financial measures of core operating expenses and free cash flows is that they do not have uniform definitions . our definitions will likely differ from the definitions used by other companies , including peer companies , and therefore comparability may be limited . thus , our non-gaap measures of core operating expenses and free cash flows should be considered in addition to , not as a substitute for , or in isolation from , measures prepared in accordance with gaap . additionally , in the case of share-based compensation , if we did not pay out a portion of compensation in the form of share-based compensation and related employer payroll taxes , the cash salary expense included in costs of revenues and operating expenses would be higher , which would affect our cash position . further , the non-gaap measure of core operating 40 expenses has certain limitations because it does not reflect all items of income and expense that affect our operations and are reflected in the gaap measure of total operating expenses . we compensate for these limitations by reconciling core operating expenses to the most comparable gaap financial measure and reviewing these measures in conjunction with gaap financial information . management encourages investors and others to review our financial information in its entirety , not to rely on any single financial measure and to view our non-gaap financial measures in conjunction with the most comparable gaap financial measures . see results of operationsoperating expenses for a reconciliation of the non-gaap financial measure of core operating expenses to the most comparable gaap measure , total operating expenses ,  for fiscal 2014 , 2013 and 2012. see liquidity and capital resources for a reconciliation of free cash flows to the most comparable gaap measure , net cash provided by ( used in ) operating activities ,  for fiscal 2014 , 2013 and 2012. backlog we generally sign multiple-year subscription contracts for our applications . the timing of our invoices to the customer is a negotiated term and varies among our subscription contracts . for multiple-year agreements , it is common to invoice an initial amount at contract signing followed by subsequent annual invoices . at any point in the contract term , there can be amounts that we have not yet been contractually able to invoice . until such time as these amounts are invoiced , they are not recorded in revenues , unearned revenue or elsewhere in our consolidated financial statements . to the extent future invoicing is considered certain , we consider the contract to be non-cancelable backlog . future invoicing is considered certain when we have a fully executed non-cancelable contract , and invoicing is not dependent on a future event such as customer funding or the delivery of a product . the amount of subscription contract backlog was $ 636.1 million as of january 31 , 2014. we expect that the amount of backlog relative to the total value of our contracts will change from year to year for several reasons , including the amount of cash collected early in the contract term , the specific timing and duration of large customer subscription agreements , varying invoicing cycles of subscription agreements , the specific timing of customer renewals , changes in customer financial circumstances and foreign currency fluctuations . backlog may also vary based on changes in the average non-cancelable term of our subscription agreements . accordingly , we believe that fluctuations in backlog are not a reliable indicator of future revenues and we do not utilize backlog as a key management metric internally . contractual obligations the following table summarizes our consolidated principal contractual cash obligations , as of january 31 , 2014 : replace_table_token_13_th ( 1 ) represents aggregate principal amount of the notes , without the effect of associated discounts . 41 ( 2 ) represents estimated aggregate interest obligations for our outstanding notes that are payable in cash . ( 3 ) includes principal and imputed interest . ( 4 ) for the 95-year lease we entered in january 2013 , the cash obligations exclude the potential annual rental increases based on the increases to the consumer price index ( cpi ) . ( see more information under commitments below ) . we expect to make higher rent payments over the lease term due to increases in the cpi . commitments our principal commitments primarily consist of obligations under leases for office space and co-location facilities for data center capacity and our development and test data center , and computer equipment . for fiscal 2015 , we anticipate leasing additional office space near our headquarters and in various other locations around the world to support our growth . in january 2014 , workday acquired a 95-year lease for a 6.9 acre parcel of land adjacent to our existing pleasanton , california leased facilities . the lease affords us the opportunity to develop office space for employees in pleasanton , california . we paid $ 10.0 million to acquire the lease and $ 1.5 million in prepaid rent through december 31 , 2020. if construction does not commence by june 30 , 2015 , we will be required to make additional payments to the lessor , ranging from $ 0.2 million to $ 1.0 million based on the length of the delay . purchase orders are not included in the table above . our purchase orders represent authorizations to purchase rather

