to support our growth and successfully address these challenges through 2013 we plan to : extend our product leadership through continued innovation ; improve the end user experience with enhanced user interface ; maintain our focused global sales strategy to targeted customers ; invest in our research and development by significantly increasing headcount ; build-out our sales capacity by hiring additional sales professionals ; invest in self-study enablement to expand the pega ecosystem ; further develop and leverage our partner alliances ; and develop and increase our solutions frameworks . results of operations 2012 compared to 2011 replace_table_token_5_th the aggregate value of new license arrangements executed in 2012 was slightly higher than in 2011. the aggregate value of new license arrangements executed fluctuates quarter to quarter . during 2012 and 2011 , approximately 74 % and 58 % , respectively , of new license arrangements were executed with existing customers . we believe the continued demand for our software products and related services is due to the strong value proposition , short implementation period , and variety of licensing models we offer our customers . the increase in gross profit was primarily due to the increase in license revenue and to a lesser extent the increase in maintenance revenue . the increase in operating expenses was primarily due to the increase in selling and marketing expenses and to a lesser extent the increase in research and development expenses , associated with higher headcount . the increase in income from operations and income before provision for income taxes was primarily due to the higher increases in license and maintenance gross profit compared to the increase in operating expenses . 22 revenue replace_table_token_6_th in both 2011 and 2012 , more than 50 % of the aggregate value of new license arrangements for the fiscal year was executed in our fourth quarter . a large proportion of the value of these arrangements was term licenses that contributed very little to the increase in our term license revenue in 2012 , but will be recognized as revenue in future periods . as a result , the aggregate value of future payments due under non-cancelable term licenses increased significantly in both 2011 and 2012 from $ 90.9 million as of december 31 , 2010 to $ 161.4 million as of december 31 , 2011 and to $ 211.5 million as of december 31 , 2012. the increase in term license revenue for 2012 is a result of the increase in the aggregate value of future payments due under non-cancelable term licenses arrangements from prior years . see the table of future cash receipts by year from these term licenses on page 33. the increases in the aggregate value of term license arrangements executed in a certain period is not necessarily indicative of the volume level in future periods . the mix between perpetual and term license arrangements executed in a particular period varies based on customer needs . a change in the mix between perpetual and term license arrangements executed over time may cause our revenues to vary materially from period to period . the increase in perpetual license revenue was primarily due to the increase in the aggregate value of new perpetual license arrangements executed during the fourth quarter of 2012. subscription revenue primarily consists of the ratable recognition of license , maintenance and bundled services revenue on perpetual license arrangements that include a right to unspecified future products . subscription revenue does not include revenue from our pega cloud offerings . the timing of scheduled payments under customer arrangements may limit the amount of revenue that can be recognized in a reporting period . consequently , our subscription revenue may vary quarter to quarter . the increase in subscription revenue was primarily due to the full year of revenue recognized in 2012 on some arrangements for which we began recognizing revenue in the fourth quarter of 2011 . ( dollars in thousands ) year ended december 31 , increase 2012 2011 maintenance revenue maintenance $ 133,527 $ 117,110 $ 16,417 14 % the increase in maintenance revenue was primarily due to the growth in the aggregate value of the installed base of our software and continued strong renewal rates . replace_table_token_7_th 23 professional services are primarily consulting services related to new license implementations . revenue from our pega cloud offerings is included in consulting services revenue and was the primary driver for the increase in professional services revenue in 2012. in addition , our consulting services revenue increased due to higher realization rates in 2012 compared to 2011. as more of our customers are becoming enabled and our partners are leading the majority of implementation projects , our consulting services revenue may be lower in future periods . replace_table_token_8_th as a result of the increased number of customer and partner led implementations , we have slowed the hiring of consulting services personnel , reducing non-billable on-boarding time and increasing utilization rates of our staff , resulting in higher gross profit percentages . if we increase our hiring pace in future periods , we may again incur on-boarding and enablement costs that may result in lower professional services gross profit percentages . replace_table_token_9_th the decrease in amortization expense was due to the amortization in full of our trade name intangible asset in 2011 and our technology designs intangible asset in the first quarter of 2012. operating expenses replace_table_token_10_th selling and marketing expenses include compensation , benefits , and other headcount-related expenses associated with our selling and marketing personnel as well as advertising , promotions , trade shows , seminars , and other programs . selling and marketing expenses also include the amortization of customer related intangibles . 24 we continue to create additional sales capacity by increasing sales headcount to target new accounts in existing industries , as well as to expand coverage in new industries and geographies . story_separator_special_tag the impact on net income of the gains recorded on the foreign currency forward contracts and the foreign currency transaction losses recorded on the remeasurement and settlement of the foreign currency denominated assets , was a net loss of approximately $ 1.2 million for the year ended december 31 , 2011. this net loss was primarily due to the timing of settlement of intercompany balances and foreign currency denominated cash held as of the end of the period , for which we did not have foreign currency forward contracts . the decrease in interest income was primarily due to lower yields earned and a lower weighted-average value of marketable securities held throughout the year ended december 31 , 2011 compared to the same period in 2010. provision ( benefit ) for income taxes the provision ( benefit ) for income taxes represents current and future amounts owed for federal , state , and foreign taxes . during 2011 and 2010 , we recorded a $ 0.7 million provision and a $ 0.3 million benefit , respectively , which resulted in an effective tax rate of 6.5 % and ( 4.9 % ) , respectively . our effective income tax rate for 2011 was below the statutory federal income tax rate due to a $ 2.5 million reduction in unrecognized tax benefits and a corresponding reduction in income tax expense related to uncertain tax positions of prior years for which the statute of limitations expired , a $ 1.5 million benefit related to the current period domestic production activities and a $ 0.6 million benefit related to tax credits from our continued investment in research and development activities . these benefits were partially offset by a $ 0.3 million increase in our valuation allowances and $ 0.6 million of permanent differences related to nondeductible meals . during 2010 , we recorded a valuation allowance against state credits and a discrete item related to the nondeductible portion of acquisition-related costs we incurred during 2010 , which reduced our tax benefit by approximately $ 2.3 million and $ 0.7 million , respectively . the consolidation of chordiant 's operations had a significant impact on our consolidated state apportionment factors . as a result of this change , we recorded a valuation allowance against certain state credits . as of december 31 , 2011 , unrecognized tax benefits totaled approximately $ 25.3 million , of which $ 18.2 million , if recognized , would decrease our effective tax rate . however , approximately $ 11.1 million of these unrecognized tax benefits related to acquired net operating losses ( nols ) and research tax credits , which if recognized , would be subject to limitations on use . liquidity and capital resources replace_table_token_25_th we believe that our current cash , cash equivalents , and cash flow from operations will be sufficient to fund our operations and our share repurchase program for at least the next 12 months . 32 in june 2011 , we entered into a lease arrangement for our new office headquarters in cambridge , massachusetts commencing on july 1 , 2011 and terminating on december 31 , 2023 , subject to our option to extend for two additional five-year periods . we completed the move to our new office headquarters in the third quarter of 2012 and ceased use of the former office space in the fourth quarter of 2012 , resulting in approximately $ 0.2 million in lease exit costs . the remaining $ 0.5 million of lease payments for this space will be paid by the end of the second quarter of 2013. we invested approximately $ 12.8 million in 2012 , net of our landlord tenant improvement allowance for furniture , fixtures , it equipment , and leasehold improvements for our new office headquarters . we evaluate acquisition opportunities from time to time , which if pursued , could require use of our funds . approximately $ 51.5 million of our cash and cash equivalents is held in our foreign subsidiaries . if it became necessary to repatriate these funds , we may be required to pay u.s. tax , net of any applicable foreign tax credits , upon repatriation . we consider the earnings of our foreign subsidiaries to be permanently reinvested and , as a result , u.s. taxes on such earnings are not provided . it is impractical to estimate the amount of u.s. tax we could have to pay upon repatriation due to the complexity of the foreign tax credit calculations and because we consider our earnings permanently reinvested . there can be no assurance that changes in our plans or other events affecting our operations will not result in materially accelerated or unexpected expenditures . story_separator_special_tag style= `` border-collapse : collapse `` width= `` 100 % `` > ( 1 ) represents the fixed or minimum amounts due under purchase obligations for customer support and marketing programs . ( 2 ) as of december 31 , 2012 , our recorded liability for uncertain tax positions was approximately $ 13.6 million . we are unable to reasonably estimate the timing of the cash outflow due to uncertainties in the timing of the effective settlement of tax positions . ( 3 ) includes deferred rent of approximately $ 1.1 million included in accrued expenses and approximately $ 8.4 million in other long-term liabilities in the accompanying audited consolidated balance sheet as of december 31 , 2012. critical accounting policies , significant judgments and estimates management 's discussion and analysis of the financial condition and results of operations is based upon our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the u.s. and the rules and regulations of the sec for annual financial reporting . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and

cash provided by operating activities the primary drivers of cash provided by operating activities during 2012 were net income of $ 21.9 million and a $ 24.8 million increase in deferred revenue primarily resulting from the difference in timing of billings and revenue recognition for annual maintenance . the primary drivers of cash provided by operating activities during 2011 were $ 10.1 million of net income and a $ 14.6 million increase in deferred revenue primarily resulting from the difference in timing of billings and revenue recognition for annual maintenance . cash used in operating activities during 2010 was primarily due to our net loss of $ 5.9 million and a $ 23.4 million increase in accounts receivable . future cash receipts from license arrangements total contractual future cash receipts due from our existing license agreements was approximately $ 255 million as of december 31 , 2012 compared to $ 209.9 million as of december 31 , 2011. the future cash receipts due as of december 31 , 2012 are summarized as follows : replace_table_token_26_th ( 1 ) these amounts will be recognized as revenue in the future over the term of the agreement as payments become due or earlier if prepaid . ( 2 ) these amounts will be recognized as revenue in future periods and relate to perpetual and subscription licenses with extended payment terms and or additional rights of use . 33 cash ( used in ) provided by investing activities during 2012 , we invested $ 23.6 million primarily in leasehold improvements , furniture and fixtures and equipment for the build-out of our u.s. and india offices . during 2011 , cash used in investing activities was primarily for purchases of marketable debt securities for $ 57.2 million , partially offset by the proceeds received from the sales , maturities and called marketable debt securities of $ 21.7 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 provided by operating activities the primary drivers of cash provided by operating activities during 2012 were net income of $ 21.9 million and a $ 24.8 million increase in deferred revenue primarily resulting from the difference in timing of billings and revenue recognition for annual maintenance . the primary drivers of cash provided by operating activities during 2011 were $ 10.1 million of net income and a $ 14.6 million increase in deferred revenue primarily resulting from the difference in timing of billings and revenue recognition for annual maintenance . cash used in operating activities during 2010 was primarily due to our net loss of $ 5.9 million and a $ 23.4 million increase in accounts receivable . future cash receipts from license arrangements total contractual future cash receipts due from our existing license agreements was approximately $ 255 million as of december 31 , 2012 compared to $ 209.9 million as of december 31 , 2011. the future cash receipts due as of december 31 , 2012 are summarized as follows : replace_table_token_26_th ( 1 ) these amounts will be recognized as revenue in the future over the term of the agreement as payments become due or earlier if prepaid . ( 2 ) these amounts will be recognized as revenue in future periods and relate to perpetual and subscription licenses with extended payment terms and or additional rights of use . 33 cash ( used in ) provided by investing activities during 2012 , we invested $ 23.6 million primarily in leasehold improvements , furniture and fixtures and equipment for the build-out of our u.s. and india offices . during 2011 , cash used in investing activities was primarily for purchases of marketable debt securities for $ 57.2 million , partially offset by the proceeds received from the sales , maturities and called marketable debt securities of $ 21.7 million .
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 Suspicious Activity Report : to support our growth and successfully address these challenges through 2013 we plan to : extend our product leadership through continued innovation ; improve the end user experience with enhanced user interface ; maintain our focused global sales strategy to targeted customers ; invest in our research and development by significantly increasing headcount ; build-out our sales capacity by hiring additional sales professionals ; invest in self-study enablement to expand the pega ecosystem ; further develop and leverage our partner alliances ; and develop and increase our solutions frameworks . results of operations 2012 compared to 2011 replace_table_token_5_th the aggregate value of new license arrangements executed in 2012 was slightly higher than in 2011. the aggregate value of new license arrangements executed fluctuates quarter to quarter . during 2012 and 2011 , approximately 74 % and 58 % , respectively , of new license arrangements were executed with existing customers . we believe the continued demand for our software products and related services is due to the strong value proposition , short implementation period , and variety of licensing models we offer our customers . the increase in gross profit was primarily due to the increase in license revenue and to a lesser extent the increase in maintenance revenue . the increase in operating expenses was primarily due to the increase in selling and marketing expenses and to a lesser extent the increase in research and development expenses , associated with higher headcount . the increase in income from operations and income before provision for income taxes was primarily due to the higher increases in license and maintenance gross profit compared to the increase in operating expenses . 22 revenue replace_table_token_6_th in both 2011 and 2012 , more than 50 % of the aggregate value of new license arrangements for the fiscal year was executed in our fourth quarter . a large proportion of the value of these arrangements was term licenses that contributed very little to the increase in our term license revenue in 2012 , but will be recognized as revenue in future periods . as a result , the aggregate value of future payments due under non-cancelable term licenses increased significantly in both 2011 and 2012 from $ 90.9 million as of december 31 , 2010 to $ 161.4 million as of december 31 , 2011 and to $ 211.5 million as of december 31 , 2012. the increase in term license revenue for 2012 is a result of the increase in the aggregate value of future payments due under non-cancelable term licenses arrangements from prior years . see the table of future cash receipts by year from these term licenses on page 33. the increases in the aggregate value of term license arrangements executed in a certain period is not necessarily indicative of the volume level in future periods . the mix between perpetual and term license arrangements executed in a particular period varies based on customer needs . a change in the mix between perpetual and term license arrangements executed over time may cause our revenues to vary materially from period to period . the increase in perpetual license revenue was primarily due to the increase in the aggregate value of new perpetual license arrangements executed during the fourth quarter of 2012. subscription revenue primarily consists of the ratable recognition of license , maintenance and bundled services revenue on perpetual license arrangements that include a right to unspecified future products . subscription revenue does not include revenue from our pega cloud offerings . the timing of scheduled payments under customer arrangements may limit the amount of revenue that can be recognized in a reporting period . consequently , our subscription revenue may vary quarter to quarter . the increase in subscription revenue was primarily due to the full year of revenue recognized in 2012 on some arrangements for which we began recognizing revenue in the fourth quarter of 2011 . ( dollars in thousands ) year ended december 31 , increase 2012 2011 maintenance revenue maintenance $ 133,527 $ 117,110 $ 16,417 14 % the increase in maintenance revenue was primarily due to the growth in the aggregate value of the installed base of our software and continued strong renewal rates . replace_table_token_7_th 23 professional services are primarily consulting services related to new license implementations . revenue from our pega cloud offerings is included in consulting services revenue and was the primary driver for the increase in professional services revenue in 2012. in addition , our consulting services revenue increased due to higher realization rates in 2012 compared to 2011. as more of our customers are becoming enabled and our partners are leading the majority of implementation projects , our consulting services revenue may be lower in future periods . replace_table_token_8_th as a result of the increased number of customer and partner led implementations , we have slowed the hiring of consulting services personnel , reducing non-billable on-boarding time and increasing utilization rates of our staff , resulting in higher gross profit percentages . if we increase our hiring pace in future periods , we may again incur on-boarding and enablement costs that may result in lower professional services gross profit percentages . replace_table_token_9_th the decrease in amortization expense was due to the amortization in full of our trade name intangible asset in 2011 and our technology designs intangible asset in the first quarter of 2012. operating expenses replace_table_token_10_th selling and marketing expenses include compensation , benefits , and other headcount-related expenses associated with our selling and marketing personnel as well as advertising , promotions , trade shows , seminars , and other programs . selling and marketing expenses also include the amortization of customer related intangibles . 24 we continue to create additional sales capacity by increasing sales headcount to target new accounts in existing industries , as well as to expand coverage in new industries and geographies . story_separator_special_tag the impact on net income of the gains recorded on the foreign currency forward contracts and the foreign currency transaction losses recorded on the remeasurement and settlement of the foreign currency denominated assets , was a net loss of approximately $ 1.2 million for the year ended december 31 , 2011. this net loss was primarily due to the timing of settlement of intercompany balances and foreign currency denominated cash held as of the end of the period , for which we did not have foreign currency forward contracts . the decrease in interest income was primarily due to lower yields earned and a lower weighted-average value of marketable securities held throughout the year ended december 31 , 2011 compared to the same period in 2010. provision ( benefit ) for income taxes the provision ( benefit ) for income taxes represents current and future amounts owed for federal , state , and foreign taxes . during 2011 and 2010 , we recorded a $ 0.7 million provision and a $ 0.3 million benefit , respectively , which resulted in an effective tax rate of 6.5 % and ( 4.9 % ) , respectively . our effective income tax rate for 2011 was below the statutory federal income tax rate due to a $ 2.5 million reduction in unrecognized tax benefits and a corresponding reduction in income tax expense related to uncertain tax positions of prior years for which the statute of limitations expired , a $ 1.5 million benefit related to the current period domestic production activities and a $ 0.6 million benefit related to tax credits from our continued investment in research and development activities . these benefits were partially offset by a $ 0.3 million increase in our valuation allowances and $ 0.6 million of permanent differences related to nondeductible meals . during 2010 , we recorded a valuation allowance against state credits and a discrete item related to the nondeductible portion of acquisition-related costs we incurred during 2010 , which reduced our tax benefit by approximately $ 2.3 million and $ 0.7 million , respectively . the consolidation of chordiant 's operations had a significant impact on our consolidated state apportionment factors . as a result of this change , we recorded a valuation allowance against certain state credits . as of december 31 , 2011 , unrecognized tax benefits totaled approximately $ 25.3 million , of which $ 18.2 million , if recognized , would decrease our effective tax rate . however , approximately $ 11.1 million of these unrecognized tax benefits related to acquired net operating losses ( nols ) and research tax credits , which if recognized , would be subject to limitations on use . liquidity and capital resources replace_table_token_25_th we believe that our current cash , cash equivalents , and cash flow from operations will be sufficient to fund our operations and our share repurchase program for at least the next 12 months . 32 in june 2011 , we entered into a lease arrangement for our new office headquarters in cambridge , massachusetts commencing on july 1 , 2011 and terminating on december 31 , 2023 , subject to our option to extend for two additional five-year periods . we completed the move to our new office headquarters in the third quarter of 2012 and ceased use of the former office space in the fourth quarter of 2012 , resulting in approximately $ 0.2 million in lease exit costs . the remaining $ 0.5 million of lease payments for this space will be paid by the end of the second quarter of 2013. we invested approximately $ 12.8 million in 2012 , net of our landlord tenant improvement allowance for furniture , fixtures , it equipment , and leasehold improvements for our new office headquarters . we evaluate acquisition opportunities from time to time , which if pursued , could require use of our funds . approximately $ 51.5 million of our cash and cash equivalents is held in our foreign subsidiaries . if it became necessary to repatriate these funds , we may be required to pay u.s. tax , net of any applicable foreign tax credits , upon repatriation . we consider the earnings of our foreign subsidiaries to be permanently reinvested and , as a result , u.s. taxes on such earnings are not provided . it is impractical to estimate the amount of u.s. tax we could have to pay upon repatriation due to the complexity of the foreign tax credit calculations and because we consider our earnings permanently reinvested . there can be no assurance that changes in our plans or other events affecting our operations will not result in materially accelerated or unexpected expenditures . story_separator_special_tag style= `` border-collapse : collapse `` width= `` 100 % `` > ( 1 ) represents the fixed or minimum amounts due under purchase obligations for customer support and marketing programs . ( 2 ) as of december 31 , 2012 , our recorded liability for uncertain tax positions was approximately $ 13.6 million . we are unable to reasonably estimate the timing of the cash outflow due to uncertainties in the timing of the effective settlement of tax positions . ( 3 ) includes deferred rent of approximately $ 1.1 million included in accrued expenses and approximately $ 8.4 million in other long-term liabilities in the accompanying audited consolidated balance sheet as of december 31 , 2012. critical accounting policies , significant judgments and estimates management 's discussion and analysis of the financial condition and results of operations is based upon our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the u.s. and the rules and regulations of the sec for annual financial reporting . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and

