excluding the impact of the adjustments detailed below under the caption , operating income , our non-gaap consolidated operating income increased 22.8 % and 18.1 % in 2016 and 2015 , respectively , and our non-gaap consolidated operating margin increased 70 basis points and 90 basis points in 2016 and 2015 , respectively . the increase in non-gaap consolidated operating income was primarily due to improved results from our animal hospital and laboratory business segments . merger agreement on january 7 , 2017 , we entered into the merger agreement with mmi holdings , inc. ( “ acquiror ” ) , venice merger sub inc. , a wholly owned subsidiary of acquiror ( `` merger sub `` ) , and , solely for purposes of section 9.15 of the merger agreement , mars , incorporated ( “ mars ” ) , pursuant to which , among other things , at the closing of the merger , we will become a wholly-owned subsidiary of acquiror . the merger is subject to satisfaction of a number of customary closing conditions contained in the merger agreement , including the approval of our stockholders and receipt of the remaining outstanding required regulatory approvals . the merger agreement and the merger are described in greater detail in the company 's definitive proxy statement for the special meeting filed on february 15 , 2017 with the sec , and other materials and documents filed with the sec , all of which are available on the sec 's website at www.sec.gov . the foregoing description of the merger agreement is qualified in its entirety by reference to the full text of the merger agreement attached as exhibit 2.1 to the current report on form 8-k filed with the sec on january 9 , 2017. share repurchase program in april 2013 , our board of directors authorized a share repurchase program for up to $ 125 million of our common shares , which was completed in august 2014. in august 2014 , our board of directors authorized the continuance of that share repurchase program , authorizing us to repurchase up to an additional $ 400 million of our common shares . these repurchases may be made from time to time in open market transactions , pursuant to trading plans established in accordance with sec rules , through privately negotiated transactions , block trades or accelerated share repurchases . the timing and number of shares repurchased will depend on a variety of factors , including price , capital availability , legal requirements and economic and market conditions . the company is not obligated to purchase any shares under the repurchase program , and repurchases may be suspended or discontinued at any time without prior notice . our share repurchase program has no expiration date . the repurchases have been and will continue to be funded by existing cash balances and by our revolving credit facility . the merger agreement limits our ability to repurchase shares of our common stock , subject to certain exceptions , and the share repurchases under the share repurchase program will not continue so long as the merger agreement is in effect and has not been terminated . refer to item 5. market for registrant 's common equity , related stockholder matters and issuer purchases of equity securities in part ii of this report . sale of vetstreet on december 31 , 2015 , we completed the sale of our vetstreet business , resulting in a gain of $ 43.3 million . concurrent with the sale of substantially all of the assets of vetstreet , we purchased a 19.9 % interest in the continuing vetstreet business . acquisitions our annual growth strategy includes the acquisition of independent animal hospitals . we also evaluate the acquisition of animal hospital chains , laboratories or related businesses if favorable opportunities are presented . in 2016 , we acquired 71 independent animal hospitals and 56 hospitals from capna with annualized revenue of $ 397.0 million . in 2015 , we acquired 55 independent animal hospitals with annualized revenue of $ 122.0 million . 27 the following table summarizes the changes in the number of facilities operated by our animal hospital and laboratory segments : replace_table_token_7_th critical accounting policies and estimates we believe that the application of the following accounting policies , which are important to our financial position and results of operations , require significant judgments and estimates on the part of management . for a summary of all of our accounting policies , including the accounting policies discussed below , see note 2 , summary of significant accounting policies , in our consolidated financial statements of this annual report on form 10-k. revenue generally , we recognize revenue when persuasive evidence of a sales arrangement exists , delivery of goods has occurred or services have been rendered , the sales price or fee is fixed or determinable and collectability is reasonably assured . for the animal hospital segment , revenue is recognized when services are performed or products are sold . for the laboratory segment , revenue is recognized when services are performed . for the other segments , revenue is generally recognized when services are provided or delivery of goods has occurred . our medical technology business sells digital radiography imaging equipment bundled with other services in certain instances . under these arrangements , the sales consideration is allocated at inception to all deliverables using the relative selling price method , whereby any discount in the arrangement is allocated proportionally to each deliverable on the basis of each deliverable 's selling price . valuation of goodwill and other long lived assets goodwill we allocate a significant portion of the purchase price for our acquired businesses to goodwill . our goodwill represents the excess of the cost of an acquired entity over the net of the amounts assigned to identifiable assets acquired and liabilities assumed . story_separator_special_tag non-gaap consolidated gross profit , which excludes the impact of the adjustments detailed in the table above , increased $ 93.5 million in 2016 , as compared to 2015 . the increase in non-gaap consolidated gross profit was primarily attributable to organic revenue growth and increased gross margins in our animal hospital and laboratory business segments . the increase in non-gaap consolidated gross profit also included $ 54.2 million of gross profit related to the acquisitions consummated since the beginning of 2015 . 33 consolidated gross profit increased $ 65.4 million in 2015 , as compared to 2014 . excluding the impact of the adjustments detailed in the table above , non-gaap consolidated gross profit increased $ 67.8 million in 2015 , as compared to 2014 . the increase in non-gaap consolidated gross profit was primarily attributable to organic revenue growth and increased gross margins at our animal hospital and laboratory business segments . the increase also included $ 26.2 million of gross profit related to the acquisitions consummated since the beginning of 2014 . segment results animal hospital segment revenue animal hospital revenue increased $ 393.9 million in 2016 , as compared to 2015 and $ 183.0 million in 2015 , as compared to 2014 . the components of the increases are summarized in the following table ( in thousands , except percentages and average price per order ) : replace_table_token_12_th ( 1 ) same-store revenue and orders were calculated using animal hospital operating results , adjusted to exclude the operating results for newly acquired animal hospitals that we did not own , as of the beginning of the comparable period in the prior year . same-store revenue also includes revenue generated by customers referred from our relocated or combined animal hospitals , including those merged upon acquisition . ( 2 ) computed by dividing same-store revenue by same-store orders . the average revenue per order may not calculate exactly due to rounding . ( 3 ) net acquired revenue represents the revenue from those animal hospitals acquired , net of revenue from animal hospitals sold or closed , on or after the beginning of the comparable period in the prior year . fluctuations in net acquired revenue occur due to the volume , size and timing of acquisitions and dispositions . ( 4 ) the 2016 business-day adjustment reflects the impact of the one additional day in 2016 as compared to 2015. during the year ended december 31 , 2016 , as compared to the same period in the prior year , our volume of same-store orders increased primarily due to the combination of an overall improvement in the economy during the year and the impact of certain previously implemented initiatives in our animal hospitals . our business strategy is to place a greater emphasis on comprehensive wellness visits and advanced medical procedures , which typically generate higher priced orders . for the year ended december 31 , 2016 , we experienced an increase in the number of higher-priced orders partially offset by a slight decrease in the number of lower-priced orders . price increases as well as the mix in year over year growth rates of low to high-priced orders contributed to the overall increase in the average revenue per order . prices at each of our hospitals are reviewed regularly and adjustments are made based on market considerations , demographics and our costs . these adjustments historically approximated 3 % to 6 % on most 34 services at the majority of our animal hospitals and are typically implemented in november of each year ; however , price increases in 2016 generally ranged between 4 % and 6 % . direct costs animal hospital direct costs increased $ 318.3 million for the year ended december 31 , 2016 , as compared to 2015 . the increase was primarily due to an increase in compensation related expenses of $ 189.1 million , supplies of $ 50.0 million , rent of $ 14.0 million , and depreciation and amortization of $ 18.6 million . the remainder of the increase was due to numerous items , all of which were individually immaterial . the increases in compensation related costs and supplies generally are related to overall revenue growth . the increase in rent and depreciation and amortization is primarily related to acquired animal hospitals . animal hospital direct costs increased $ 149.5 million for the year ended december 31 , 2015 , as compared to 2014 . the increase was primarily due to an increase in compensation related expenses of $ 85.5 million , supplies of $ 26.3 million , rent of $ 5.6 million , and depreciation and amortization of $ 5.5 million . the remainder of the increase was due to numerous items , all of which were individually immaterial . the increases in compensation related costs and supplies generally are related to overall revenue growth . the increase in rent and depreciation and amortization is primarily related to acquired animal hospitals . gross profit animal hospital gross profit is calculated as animal hospital revenue less animal hospital direct costs . animal hospital direct costs comprise all costs of services and products at the animal hospitals including , but not limited to , salaries of veterinarians , technicians and all other animal hospital-based personnel , facilities rent , occupancy costs , supply costs , depreciation and amortization , certain marketing and promotional expenses and costs of goods sold associated with the retail sales of pet food and pet supplies . the following table summarizes gross profit , gross margin , non-gaap gross profit , and non-gaap gross margin for our animal hospital segment ( in thousands , except percentages ) and the same measures on a same-store basis : replace_table_token_13_th ( 1 ) non-gaap gross profit , non-gaap gross margin and the same measures expressed on a same store basis , are not measurements of financial performance prepared in accordance with gaap . see non-gaap financial measures below

cash flows from operating activities net cash provided by operating activities increased $ 72.3 million in 2016 , as compared to 2015 . operating cash flows for the year ended december 31 , 2016 included $ 217.4 million of net income and net non-cash expenses of $ 149.1 million , partially offset by net cash provided as a result of changes in operating assets and liabilities of $ 23.3 million . the changes in operating assets and liabilities primarily included a $ 23.5 million decrease in prepaid income taxes , a $ 20.0 million increase in accrued payroll and related liabilities , and a $ 16.1 million increase in accounts payable and other accrued liabilities , partially offset by a $ 22.8 million increase in inventory , prepaid expenses and other assets , and a $ 13.6 million increase in trade accounts receivable . the decrease in prepaid income taxes and the increases in accrued payroll and related liabilities , and accounts payable and other accrued liabilities are primarily due to the timing of payment obligations . the increase in inventory , prepaid expenses and other assets is primarily due to increased medical supplies in relation to the acquired hospitals in 2016 and an increase in the accruals for partner program receivables . the increase in trade accounts receivable was primarily due to increased revenues in both our hospital and laboratory business segments . net cash provided by operating activities increased $ 47.3 million in 2015 , as compared to 2014 . operating cash flows for the year ended december 31 , 2015 included $ 216.1 million of net income and net non-cash expenses of $ 113.4 million , partially offset by net cash used as a result of changes in operating assets and liabilities of $ 12.0 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.
     ```cash flows from operating activities net cash provided by operating activities increased $ 72.3 million in 2016 , as compared to 2015 . operating cash flows for the year ended december 31 , 2016 included $ 217.4 million of net income and net non-cash expenses of $ 149.1 million , partially offset by net cash provided as a result of changes in operating assets and liabilities of $ 23.3 million . the changes in operating assets and liabilities primarily included a $ 23.5 million decrease in prepaid income taxes , a $ 20.0 million increase in accrued payroll and related liabilities , and a $ 16.1 million increase in accounts payable and other accrued liabilities , partially offset by a $ 22.8 million increase in inventory , prepaid expenses and other assets , and a $ 13.6 million increase in trade accounts receivable . the decrease in prepaid income taxes and the increases in accrued payroll and related liabilities , and accounts payable and other accrued liabilities are primarily due to the timing of payment obligations . the increase in inventory , prepaid expenses and other assets is primarily due to increased medical supplies in relation to the acquired hospitals in 2016 and an increase in the accruals for partner program receivables . the increase in trade accounts receivable was primarily due to increased revenues in both our hospital and laboratory business segments . net cash provided by operating activities increased $ 47.3 million in 2015 , as compared to 2014 . operating cash flows for the year ended december 31 , 2015 included $ 216.1 million of net income and net non-cash expenses of $ 113.4 million , partially offset by net cash used as a result of changes in operating assets and liabilities of $ 12.0 million .
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 Suspicious Activity Report : excluding the impact of the adjustments detailed below under the caption , operating income , our non-gaap consolidated operating income increased 22.8 % and 18.1 % in 2016 and 2015 , respectively , and our non-gaap consolidated operating margin increased 70 basis points and 90 basis points in 2016 and 2015 , respectively . the increase in non-gaap consolidated operating income was primarily due to improved results from our animal hospital and laboratory business segments . merger agreement on january 7 , 2017 , we entered into the merger agreement with mmi holdings , inc. ( “ acquiror ” ) , venice merger sub inc. , a wholly owned subsidiary of acquiror ( `` merger sub `` ) , and , solely for purposes of section 9.15 of the merger agreement , mars , incorporated ( “ mars ” ) , pursuant to which , among other things , at the closing of the merger , we will become a wholly-owned subsidiary of acquiror . the merger is subject to satisfaction of a number of customary closing conditions contained in the merger agreement , including the approval of our stockholders and receipt of the remaining outstanding required regulatory approvals . the merger agreement and the merger are described in greater detail in the company 's definitive proxy statement for the special meeting filed on february 15 , 2017 with the sec , and other materials and documents filed with the sec , all of which are available on the sec 's website at www.sec.gov . the foregoing description of the merger agreement is qualified in its entirety by reference to the full text of the merger agreement attached as exhibit 2.1 to the current report on form 8-k filed with the sec on january 9 , 2017. share repurchase program in april 2013 , our board of directors authorized a share repurchase program for up to $ 125 million of our common shares , which was completed in august 2014. in august 2014 , our board of directors authorized the continuance of that share repurchase program , authorizing us to repurchase up to an additional $ 400 million of our common shares . these repurchases may be made from time to time in open market transactions , pursuant to trading plans established in accordance with sec rules , through privately negotiated transactions , block trades or accelerated share repurchases . the timing and number of shares repurchased will depend on a variety of factors , including price , capital availability , legal requirements and economic and market conditions . the company is not obligated to purchase any shares under the repurchase program , and repurchases may be suspended or discontinued at any time without prior notice . our share repurchase program has no expiration date . the repurchases have been and will continue to be funded by existing cash balances and by our revolving credit facility . the merger agreement limits our ability to repurchase shares of our common stock , subject to certain exceptions , and the share repurchases under the share repurchase program will not continue so long as the merger agreement is in effect and has not been terminated . refer to item 5. market for registrant 's common equity , related stockholder matters and issuer purchases of equity securities in part ii of this report . sale of vetstreet on december 31 , 2015 , we completed the sale of our vetstreet business , resulting in a gain of $ 43.3 million . concurrent with the sale of substantially all of the assets of vetstreet , we purchased a 19.9 % interest in the continuing vetstreet business . acquisitions our annual growth strategy includes the acquisition of independent animal hospitals . we also evaluate the acquisition of animal hospital chains , laboratories or related businesses if favorable opportunities are presented . in 2016 , we acquired 71 independent animal hospitals and 56 hospitals from capna with annualized revenue of $ 397.0 million . in 2015 , we acquired 55 independent animal hospitals with annualized revenue of $ 122.0 million . 27 the following table summarizes the changes in the number of facilities operated by our animal hospital and laboratory segments : replace_table_token_7_th critical accounting policies and estimates we believe that the application of the following accounting policies , which are important to our financial position and results of operations , require significant judgments and estimates on the part of management . for a summary of all of our accounting policies , including the accounting policies discussed below , see note 2 , summary of significant accounting policies , in our consolidated financial statements of this annual report on form 10-k. revenue generally , we recognize revenue when persuasive evidence of a sales arrangement exists , delivery of goods has occurred or services have been rendered , the sales price or fee is fixed or determinable and collectability is reasonably assured . for the animal hospital segment , revenue is recognized when services are performed or products are sold . for the laboratory segment , revenue is recognized when services are performed . for the other segments , revenue is generally recognized when services are provided or delivery of goods has occurred . our medical technology business sells digital radiography imaging equipment bundled with other services in certain instances . under these arrangements , the sales consideration is allocated at inception to all deliverables using the relative selling price method , whereby any discount in the arrangement is allocated proportionally to each deliverable on the basis of each deliverable 's selling price . valuation of goodwill and other long lived assets goodwill we allocate a significant portion of the purchase price for our acquired businesses to goodwill . our goodwill represents the excess of the cost of an acquired entity over the net of the amounts assigned to identifiable assets acquired and liabilities assumed . story_separator_special_tag non-gaap consolidated gross profit , which excludes the impact of the adjustments detailed in the table above , increased $ 93.5 million in 2016 , as compared to 2015 . the increase in non-gaap consolidated gross profit was primarily attributable to organic revenue growth and increased gross margins in our animal hospital and laboratory business segments . the increase in non-gaap consolidated gross profit also included $ 54.2 million of gross profit related to the acquisitions consummated since the beginning of 2015 . 33 consolidated gross profit increased $ 65.4 million in 2015 , as compared to 2014 . excluding the impact of the adjustments detailed in the table above , non-gaap consolidated gross profit increased $ 67.8 million in 2015 , as compared to 2014 . the increase in non-gaap consolidated gross profit was primarily attributable to organic revenue growth and increased gross margins at our animal hospital and laboratory business segments . the increase also included $ 26.2 million of gross profit related to the acquisitions consummated since the beginning of 2014 . segment results animal hospital segment revenue animal hospital revenue increased $ 393.9 million in 2016 , as compared to 2015 and $ 183.0 million in 2015 , as compared to 2014 . the components of the increases are summarized in the following table ( in thousands , except percentages and average price per order ) : replace_table_token_12_th ( 1 ) same-store revenue and orders were calculated using animal hospital operating results , adjusted to exclude the operating results for newly acquired animal hospitals that we did not own , as of the beginning of the comparable period in the prior year . same-store revenue also includes revenue generated by customers referred from our relocated or combined animal hospitals , including those merged upon acquisition . ( 2 ) computed by dividing same-store revenue by same-store orders . the average revenue per order may not calculate exactly due to rounding . ( 3 ) net acquired revenue represents the revenue from those animal hospitals acquired , net of revenue from animal hospitals sold or closed , on or after the beginning of the comparable period in the prior year . fluctuations in net acquired revenue occur due to the volume , size and timing of acquisitions and dispositions . ( 4 ) the 2016 business-day adjustment reflects the impact of the one additional day in 2016 as compared to 2015. during the year ended december 31 , 2016 , as compared to the same period in the prior year , our volume of same-store orders increased primarily due to the combination of an overall improvement in the economy during the year and the impact of certain previously implemented initiatives in our animal hospitals . our business strategy is to place a greater emphasis on comprehensive wellness visits and advanced medical procedures , which typically generate higher priced orders . for the year ended december 31 , 2016 , we experienced an increase in the number of higher-priced orders partially offset by a slight decrease in the number of lower-priced orders . price increases as well as the mix in year over year growth rates of low to high-priced orders contributed to the overall increase in the average revenue per order . prices at each of our hospitals are reviewed regularly and adjustments are made based on market considerations , demographics and our costs . these adjustments historically approximated 3 % to 6 % on most 34 services at the majority of our animal hospitals and are typically implemented in november of each year ; however , price increases in 2016 generally ranged between 4 % and 6 % . direct costs animal hospital direct costs increased $ 318.3 million for the year ended december 31 , 2016 , as compared to 2015 . the increase was primarily due to an increase in compensation related expenses of $ 189.1 million , supplies of $ 50.0 million , rent of $ 14.0 million , and depreciation and amortization of $ 18.6 million . the remainder of the increase was due to numerous items , all of which were individually immaterial . the increases in compensation related costs and supplies generally are related to overall revenue growth . the increase in rent and depreciation and amortization is primarily related to acquired animal hospitals . animal hospital direct costs increased $ 149.5 million for the year ended december 31 , 2015 , as compared to 2014 . the increase was primarily due to an increase in compensation related expenses of $ 85.5 million , supplies of $ 26.3 million , rent of $ 5.6 million , and depreciation and amortization of $ 5.5 million . the remainder of the increase was due to numerous items , all of which were individually immaterial . the increases in compensation related costs and supplies generally are related to overall revenue growth . the increase in rent and depreciation and amortization is primarily related to acquired animal hospitals . gross profit animal hospital gross profit is calculated as animal hospital revenue less animal hospital direct costs . animal hospital direct costs comprise all costs of services and products at the animal hospitals including , but not limited to , salaries of veterinarians , technicians and all other animal hospital-based personnel , facilities rent , occupancy costs , supply costs , depreciation and amortization , certain marketing and promotional expenses and costs of goods sold associated with the retail sales of pet food and pet supplies . the following table summarizes gross profit , gross margin , non-gaap gross profit , and non-gaap gross margin for our animal hospital segment ( in thousands , except percentages ) and the same measures on a same-store basis : replace_table_token_13_th ( 1 ) non-gaap gross profit , non-gaap gross margin and the same measures expressed on a same store basis , are not measurements of financial performance prepared in accordance with gaap . see non-gaap financial measures below

