critical accounting policies and estimates we have identified the policies discussed below as critical to understanding our business and our results of operations and financial condition . the impact and any associated risks related to these policies on our business operations is discussed throughout management 's discussion and analysis of financial condition and results of operations where such policies affect our reported and expected financial results . 20 revenue recognition we recognize revenues when there is persuasive evidence of an arrangement , title and risk of loss have passed , delivery has occurred or the services have been rendered , the sales price is fixed or determinable and collection of the related receivable is reasonably assured . title and risk of loss generally pass to our customers upon shipment or at delivery destination point . in circumstances where either title or risk of loss pass upon destination , acceptance or cash payment , we defer revenue recognition until such events occur . our equipment has non-software and embedded software components that function together to deliver the equipment 's essential functionality . revenue is recognized upon shipment or at delivery destination point , provided that customer acceptance criteria can be demonstrated prior to shipment . certain contracts require us to perform tests of the product to ensure that performance meets the published product specifications or customer requested specifications , which are generally conducted prior to shipment . where the criteria can not be demonstrated prior to shipment , revenue is deferred until customer acceptance has been received . we also defer the portion of the sales price that is not due until acceptance , which represents deferred profit . for multiple element arrangements , we allocate revenue to all deliverables based on their relative selling prices . in such circumstances , a hierarchy is used to determine the selling price for allocating revenue to deliverables as follows : ( i ) vendor-specific objective evidence of selling price ( vsoe ) , ( ii ) third-party evidence of selling price ( tpe ) , and ( iii ) best estimate of the selling price ( besp ) . for a delivered item to be considered a separate unit , the delivered item must have value to the customer on a standalone basis and the delivery or performance of the undelivered item must be considered probable and substantially in our control . our post-shipment obligations include installation , training services , one-year standard warranties , and extended warranties . installation does not alter the product capabilities , does not require specialized skills or tools and can be performed by the customers or other vendors . installation is typically provided within five days of product shipment and is completed within one to two days thereafter . training services are optional and do not affect the customers ' ability to use the product . we defer revenue for the selling price of installation and training . extended warranties constitute warranty obligations beyond one year and we defer revenue in accordance with financial accounting standards board ( fasb ) accounting standards codification ( asc ) 605-20 , separately priced extended warranty and product maintenance contracts and asc 605-25 , revenue recognition multiple-element arrangements. service revenue is recognized over the contractual period or as services are performed . our products are generally subject to warranty and the related costs of the warranty are provided for in cost of revenues when product revenue is recognized . we classify shipping and handling costs in cost of revenues . we do not provide our customers with contractual rights of return for any of our products . retirement and postretirement plans effective january 1 , 2012 , we changed the method of recognizing actuarial gains and losses for our defined benefit pension plans and postretirement benefit plan and calculating the expected return on plan assets for our defined benefit pension plans . historically , we recognized net actuarial gains and losses in accumulated other comprehensive income within shareholders ' equity on our consolidated balance sheet on an annual basis and amortized them into operating results over the average remaining years of service of the plan participants , to the extent such gains and losses were outside of a range ( corridor ) . in 2012 , we elected to immediately recognize net actuarial gains and losses and the change in the fair value of the plan assets in our operating results in the year in which they occur or upon any interim remeasurement of the plans . in addition , we used to calculate the expected return on plan assets using a calculated market-related value of plan assets . effective january 1 , 2012 , we elected to calculate the expected return on plan assets using the fair value of the plan assets . we believe that this new method is preferable as it eliminates the delay in recognizing gains and losses in our operating results and it will improve the transparency by faster recognition of the effects of economic and 21 interest rate trends on plan obligations and investments . these actuarial gains and losses are generally measured annually as of december 31 and , accordingly , will be recorded during the fourth quarter of each year or upon any interim remeasurement of the plans . in accordance with financial accounting standards board accounting standards codification topic 250 , accounting changes and error corrections , all prior periods presented in this annual report on form 10-k have been adjusted to apply the new accounting method retrospectively . inventories inventories are stated at the lower of cost ( first-in , first-out basis ) or net realizable value . on a quarterly basis , we use consistent methodologies to evaluate all inventories for net realizable value . we record a provision for both excess and obsolete inventory when such write-downs or write-offs are identified through the quarterly review process . story_separator_special_tag 29 interest and other replace_table_token_18_th interest income increased by $ 2.2 million , from $ 4.1 million in 2013 to $ 6.3 million in 2014 , due primarily to higher cash and marketable securities balances in 2014. interest expense decreased by $ 19.2 million , from $ 26.1 million in 2013 to $ 6.9 million in 2014 , due primarily to a repayment of our convertible debt in the first quarter of 2014. in 2013 and 2012 , interest expense included convertible debt discount amortization . in 2013 , other ( income ) expense , net included a $ 34.2 million gain from the sale of an equity investment . income ( loss ) before income taxes replace_table_token_19_th ( 1 ) included in corporate are pension and postretirement plans actuarial gains and losses , interest income and interest expense . the decrease in income before income taxes from 2013 to 2014 was primarily due to a $ 98.9 million goodwill impairment charge related to wireless test and $ 46.6 million pension expense related to actuarial losses in 2014 , partially offset by higher income due to higher revenues in semiconductor test in 2014. the decrease in income before income taxes from 2012 to 2013 was primarily due to lower revenues in 2013 compared to 2012 , a $ 9.8 million increase in restructuring and other costs , partially offset by a $ 34.2 million gain from the sale of an equity investment in 2013. income taxes income tax expense for 2014 , 2013 and 2012 totaled $ 14.1 million , $ 37.0 million and $ 48.9 million , respectively . the effective tax rate for 2014 , 2013 and 2012 was 14.8 % , 18.3 % and 18.4 % , respectively . the decrease in income tax expense from 2013 to 2014 was primarily attributable to a shift in the geographic distribution of income which decreased income subject to taxation in the united states relative to lower tax rate jurisdictions , partially offset by an increase in income tax expense associated with uncertain tax positions and a reduction in the benefit from u.s. research and development tax credits . the decrease in income tax expense from 2012 to 2013 was due to the reinstatement of the u.s. research and development tax credit in 2013 for fiscal years 2013 and 2012 and lower pre-tax income , partially offset by higher tax expense for uncertain tax positions and state taxes . 30 u.s. research and development tax credits provided a 7.9 % and 7.2 % reduction to the 2014 and 2013 u.s. statutory federal tax rate of 35.0 % , respectively . the research and development tax credit expired at the end of 2014 ; therefore if the credit is not re-enacted there could be an unfavorable impact on our 2015 effective income tax rate . we operate under a tax holiday in singapore , which is effective through december 31 , 2015. the tax savings attributable to the singapore tax holiday for the years ended december 31 , 2014 , 2013 and 2012 were $ 13.2 million or $ 0.06 per diluted share , $ 4.7 million or $ 0.02 per diluted share and $ 10.9 million or $ 0.05 per diluted share , respectively . we are in discussions with the singapore economic development board with respect to extension of the tax holiday for periods after december 31 , 2015. contractual obligations the following table reflects our contractual obligations as of december 31 , 2014 : replace_table_token_20_th ( 1 ) included in other long-term liabilities are liabilities for customer advances , extended warranty , uncertain tax positions , deferred tax liabilities and other obligations . for certain long-term obligations , we are unable to provide a reasonably reliable estimate of the timing of future payments relating to these obligations and therefore we included these amounts in the column marked other. story_separator_special_tag in january 2015 , our board of directors authorized the repurchase of up to $ 500 million of common stock , $ 300 million of which we intend to repurchase in 2015. we believe our cash , cash equivalents and marketable securities balance will be sufficient to pay our quarterly dividend , execute our authorized share repurchase program and meet our working capital and expenditure needs for at least the next twelve months . the amount of cash , cash equivalents and marketable securities in the u.s. and our operations in the u.s. provide sufficient liquidity to fund our business activities in the u.s. we have approximately $ 616 million of cash outside the u.s. that if repatriated would incur additional taxes . determination of the additional taxes that would be incurred is not practicable due to uncertainty regarding the remittance structure , the mix of earnings and earnings and profit pools in the year of remittance , and overall complexity of the calculation . inflation has not had a significant long-term impact on earnings . retirement plans asc 715-20 , compensation  retirement benefits  defined benefit plans requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by asc 715-20. the pension asset or liability represents the difference between the fair value of the pension plan 's assets and the projected benefit obligation as of december 31. for other postretirement benefit plans , the liability is the difference between the fair value of the plan 's assets and the accumulated postretirement benefit obligation as of december 31 . 33 our pension expense , which includes the u.s. qualified pension plan ( u.s . plan ) , certain qualified plans for non-u.s. subsidiaries , and a u.s. supplemental executive defined benefit plan , was approximately $ 52.4 million for the year ended december 31 , 2014. the largest portion of our 2014 pension expense was $ 31.2 million for our u.s. plan . pension

liquidity and capital resources our cash , cash equivalents and marketable securities balance increased $ 99.2 million to $ 1.3 billion from 2013 to 2014. cash activity for 2014 , 2013 and 2012 was as follows : replace_table_token_21_th in 2014 , changes in operating assets and liabilities , net of businesses acquired , provided cash of $ 52.4 million . this was due to a $ 100.8 million decrease in operating assets and a $ 48.4 million decrease in operating liabilities . 31 the decrease in operating assets was due to a $ 41.5 million decrease in prepayments and other assets primarily related to a reduction in prepayments to our contract manufacturers , a $ 51.2 million decrease in inventories due to higher sales , and an $ 8.1 million decrease in accounts receivable . the decrease in operating liabilities was due to $ 33.9 million of retirement plan contributions , a $ 17.0 million decrease in other accrued liabilities , a $ 16.9 million decrease in accounts payable , a $ 7.3 million decrease in accrued employee compensation due primarily to employee stock awards payroll taxes and variable compensation payments , a $ 4.3 million convertible note interest payment , partially offset by a $ 22.0 million increase in customer advance payments and deferred revenue , and an $ 8.9 million increase in accrued income taxes . investing activities during 2014 used cash of $ 332.9 million due to $ 1,578.7 million used for purchases of marketable securities and $ 169.0 million used for purchases of property , plant and equipment , and $ 19.4 million used for the acquisition of ait , completed in october 2014 , partially offset by proceeds from sales and maturities of marketable securities that provided cash of $ 859.7 million and $ 570.4 million , respectively , and net proceeds from life insurance of $ 4.2 million primarily related to the cash surrender value from the cancellation of teradyne owned life insurance policies on its retired chief executive officer .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 , cash equivalents and marketable securities balance increased $ 99.2 million to $ 1.3 billion from 2013 to 2014. cash activity for 2014 , 2013 and 2012 was as follows : replace_table_token_21_th in 2014 , changes in operating assets and liabilities , net of businesses acquired , provided cash of $ 52.4 million . this was due to a $ 100.8 million decrease in operating assets and a $ 48.4 million decrease in operating liabilities . 31 the decrease in operating assets was due to a $ 41.5 million decrease in prepayments and other assets primarily related to a reduction in prepayments to our contract manufacturers , a $ 51.2 million decrease in inventories due to higher sales , and an $ 8.1 million decrease in accounts receivable . the decrease in operating liabilities was due to $ 33.9 million of retirement plan contributions , a $ 17.0 million decrease in other accrued liabilities , a $ 16.9 million decrease in accounts payable , a $ 7.3 million decrease in accrued employee compensation due primarily to employee stock awards payroll taxes and variable compensation payments , a $ 4.3 million convertible note interest payment , partially offset by a $ 22.0 million increase in customer advance payments and deferred revenue , and an $ 8.9 million increase in accrued income taxes . investing activities during 2014 used cash of $ 332.9 million due to $ 1,578.7 million used for purchases of marketable securities and $ 169.0 million used for purchases of property , plant and equipment , and $ 19.4 million used for the acquisition of ait , completed in october 2014 , partially offset by proceeds from sales and maturities of marketable securities that provided cash of $ 859.7 million and $ 570.4 million , respectively , and net proceeds from life insurance of $ 4.2 million primarily related to the cash surrender value from the cancellation of teradyne owned life insurance policies on its retired chief executive officer .
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 Suspicious Activity Report : critical accounting policies and estimates we have identified the policies discussed below as critical to understanding our business and our results of operations and financial condition . the impact and any associated risks related to these policies on our business operations is discussed throughout management 's discussion and analysis of financial condition and results of operations where such policies affect our reported and expected financial results . 20 revenue recognition we recognize revenues when there is persuasive evidence of an arrangement , title and risk of loss have passed , delivery has occurred or the services have been rendered , the sales price is fixed or determinable and collection of the related receivable is reasonably assured . title and risk of loss generally pass to our customers upon shipment or at delivery destination point . in circumstances where either title or risk of loss pass upon destination , acceptance or cash payment , we defer revenue recognition until such events occur . our equipment has non-software and embedded software components that function together to deliver the equipment 's essential functionality . revenue is recognized upon shipment or at delivery destination point , provided that customer acceptance criteria can be demonstrated prior to shipment . certain contracts require us to perform tests of the product to ensure that performance meets the published product specifications or customer requested specifications , which are generally conducted prior to shipment . where the criteria can not be demonstrated prior to shipment , revenue is deferred until customer acceptance has been received . we also defer the portion of the sales price that is not due until acceptance , which represents deferred profit . for multiple element arrangements , we allocate revenue to all deliverables based on their relative selling prices . in such circumstances , a hierarchy is used to determine the selling price for allocating revenue to deliverables as follows : ( i ) vendor-specific objective evidence of selling price ( vsoe ) , ( ii ) third-party evidence of selling price ( tpe ) , and ( iii ) best estimate of the selling price ( besp ) . for a delivered item to be considered a separate unit , the delivered item must have value to the customer on a standalone basis and the delivery or performance of the undelivered item must be considered probable and substantially in our control . our post-shipment obligations include installation , training services , one-year standard warranties , and extended warranties . installation does not alter the product capabilities , does not require specialized skills or tools and can be performed by the customers or other vendors . installation is typically provided within five days of product shipment and is completed within one to two days thereafter . training services are optional and do not affect the customers ' ability to use the product . we defer revenue for the selling price of installation and training . extended warranties constitute warranty obligations beyond one year and we defer revenue in accordance with financial accounting standards board ( fasb ) accounting standards codification ( asc ) 605-20 , separately priced extended warranty and product maintenance contracts and asc 605-25 , revenue recognition multiple-element arrangements. service revenue is recognized over the contractual period or as services are performed . our products are generally subject to warranty and the related costs of the warranty are provided for in cost of revenues when product revenue is recognized . we classify shipping and handling costs in cost of revenues . we do not provide our customers with contractual rights of return for any of our products . retirement and postretirement plans effective january 1 , 2012 , we changed the method of recognizing actuarial gains and losses for our defined benefit pension plans and postretirement benefit plan and calculating the expected return on plan assets for our defined benefit pension plans . historically , we recognized net actuarial gains and losses in accumulated other comprehensive income within shareholders ' equity on our consolidated balance sheet on an annual basis and amortized them into operating results over the average remaining years of service of the plan participants , to the extent such gains and losses were outside of a range ( corridor ) . in 2012 , we elected to immediately recognize net actuarial gains and losses and the change in the fair value of the plan assets in our operating results in the year in which they occur or upon any interim remeasurement of the plans . in addition , we used to calculate the expected return on plan assets using a calculated market-related value of plan assets . effective january 1 , 2012 , we elected to calculate the expected return on plan assets using the fair value of the plan assets . we believe that this new method is preferable as it eliminates the delay in recognizing gains and losses in our operating results and it will improve the transparency by faster recognition of the effects of economic and 21 interest rate trends on plan obligations and investments . these actuarial gains and losses are generally measured annually as of december 31 and , accordingly , will be recorded during the fourth quarter of each year or upon any interim remeasurement of the plans . in accordance with financial accounting standards board accounting standards codification topic 250 , accounting changes and error corrections , all prior periods presented in this annual report on form 10-k have been adjusted to apply the new accounting method retrospectively . inventories inventories are stated at the lower of cost ( first-in , first-out basis ) or net realizable value . on a quarterly basis , we use consistent methodologies to evaluate all inventories for net realizable value . we record a provision for both excess and obsolete inventory when such write-downs or write-offs are identified through the quarterly review process . story_separator_special_tag 29 interest and other replace_table_token_18_th interest income increased by $ 2.2 million , from $ 4.1 million in 2013 to $ 6.3 million in 2014 , due primarily to higher cash and marketable securities balances in 2014. interest expense decreased by $ 19.2 million , from $ 26.1 million in 2013 to $ 6.9 million in 2014 , due primarily to a repayment of our convertible debt in the first quarter of 2014. in 2013 and 2012 , interest expense included convertible debt discount amortization . in 2013 , other ( income ) expense , net included a $ 34.2 million gain from the sale of an equity investment . income ( loss ) before income taxes replace_table_token_19_th ( 1 ) included in corporate are pension and postretirement plans actuarial gains and losses , interest income and interest expense . the decrease in income before income taxes from 2013 to 2014 was primarily due to a $ 98.9 million goodwill impairment charge related to wireless test and $ 46.6 million pension expense related to actuarial losses in 2014 , partially offset by higher income due to higher revenues in semiconductor test in 2014. the decrease in income before income taxes from 2012 to 2013 was primarily due to lower revenues in 2013 compared to 2012 , a $ 9.8 million increase in restructuring and other costs , partially offset by a $ 34.2 million gain from the sale of an equity investment in 2013. income taxes income tax expense for 2014 , 2013 and 2012 totaled $ 14.1 million , $ 37.0 million and $ 48.9 million , respectively . the effective tax rate for 2014 , 2013 and 2012 was 14.8 % , 18.3 % and 18.4 % , respectively . the decrease in income tax expense from 2013 to 2014 was primarily attributable to a shift in the geographic distribution of income which decreased income subject to taxation in the united states relative to lower tax rate jurisdictions , partially offset by an increase in income tax expense associated with uncertain tax positions and a reduction in the benefit from u.s. research and development tax credits . the decrease in income tax expense from 2012 to 2013 was due to the reinstatement of the u.s. research and development tax credit in 2013 for fiscal years 2013 and 2012 and lower pre-tax income , partially offset by higher tax expense for uncertain tax positions and state taxes . 30 u.s. research and development tax credits provided a 7.9 % and 7.2 % reduction to the 2014 and 2013 u.s. statutory federal tax rate of 35.0 % , respectively . the research and development tax credit expired at the end of 2014 ; therefore if the credit is not re-enacted there could be an unfavorable impact on our 2015 effective income tax rate . we operate under a tax holiday in singapore , which is effective through december 31 , 2015. the tax savings attributable to the singapore tax holiday for the years ended december 31 , 2014 , 2013 and 2012 were $ 13.2 million or $ 0.06 per diluted share , $ 4.7 million or $ 0.02 per diluted share and $ 10.9 million or $ 0.05 per diluted share , respectively . we are in discussions with the singapore economic development board with respect to extension of the tax holiday for periods after december 31 , 2015. contractual obligations the following table reflects our contractual obligations as of december 31 , 2014 : replace_table_token_20_th ( 1 ) included in other long-term liabilities are liabilities for customer advances , extended warranty , uncertain tax positions , deferred tax liabilities and other obligations . for certain long-term obligations , we are unable to provide a reasonably reliable estimate of the timing of future payments relating to these obligations and therefore we included these amounts in the column marked other. story_separator_special_tag in january 2015 , our board of directors authorized the repurchase of up to $ 500 million of common stock , $ 300 million of which we intend to repurchase in 2015. we believe our cash , cash equivalents and marketable securities balance will be sufficient to pay our quarterly dividend , execute our authorized share repurchase program and meet our working capital and expenditure needs for at least the next twelve months . the amount of cash , cash equivalents and marketable securities in the u.s. and our operations in the u.s. provide sufficient liquidity to fund our business activities in the u.s. we have approximately $ 616 million of cash outside the u.s. that if repatriated would incur additional taxes . determination of the additional taxes that would be incurred is not practicable due to uncertainty regarding the remittance structure , the mix of earnings and earnings and profit pools in the year of remittance , and overall complexity of the calculation . inflation has not had a significant long-term impact on earnings . retirement plans asc 715-20 , compensation  retirement benefits  defined benefit plans requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by asc 715-20. the pension asset or liability represents the difference between the fair value of the pension plan 's assets and the projected benefit obligation as of december 31. for other postretirement benefit plans , the liability is the difference between the fair value of the plan 's assets and the accumulated postretirement benefit obligation as of december 31 . 33 our pension expense , which includes the u.s. qualified pension plan ( u.s . plan ) , certain qualified plans for non-u.s. subsidiaries , and a u.s. supplemental executive defined benefit plan , was approximately $ 52.4 million for the year ended december 31 , 2014. the largest portion of our 2014 pension expense was $ 31.2 million for our u.s. plan . pension

