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.
     ```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

