other fees includes online member join fees we receive from franchisees related to processing transactions for new members joining franchisee-owned stores through the company 's website and billing transaction fees we receive from franchisees related to franchisee membership billing processing through our third-party hosted point-of-sale system . through our point-of-sale system , we oversee the processing of membership billings for franchisee-owned stores through eft transactions and the billing transaction fees we receive are based upon the number of transactions processed . our royalties and other fees are deducted from these membership billings and remitted to us by the processor prior to the net billings being remitted to the franchisees . commission income is generated from activities related to our franchisees , including purchases of merchandise , promotional materials and store fixtures by our franchisees from third-party vendors . beginning in 2015 , commission income also included commissions earned on equipment sales by third-party vendors to franchisees in international locations . these commissions are recognized when amounts have been earned and collectability from the vendor is reasonably assured . corporate-owned store segment revenue : includes monthly membership dues , enrollment fees , annual fees and prepaid fees paid by our members as well as retail sales . this source of revenue comprised 28 % , 30 % , and 30 % of our total revenue for the years ended december 31 , 2016 , 2015 and 2014 , respectively . as of december 31 , 2016 , 96 % of our members paid their monthly dues by eft , while the remainder prepaid annually in advance . membership dues and fees are earned and recognized over the membership term . enrollment fees are recognized ratably over the estimated duration of the membership . annual fees are recognized ratably over the 12-month membership period . retail sales are recognized at the point of sale . equipment segment revenue : includes equipment revenue for new u.s. franchisee-owned stores as well as replacement equipment for u.s. existing franchisee-owned stores . franchisee-owned stores are required to replace their equipment every four to seven years based on the life of the specific equipment . this source of revenue comprised 41 % , 43 % and 44 % of our total revenue for the years ended december 31 , 2016 , 2015 and 2014 , respectively . equipment revenue is recognized when the equipment is delivered , assembled , and accepted by the franchisee . 39 expenses we primarily incur the following expenses : cost of revenue : primarily includes the direct costs associated with equipment sales to new and existing franchisee-owned stores in the u.s. as well as direct costs related to our point-of-sale system . cost of revenue also includes the cost of retail sales at our corporate-owned stores , which is immaterial . our cost of revenue changes primarily based on equipment sales volume . store operations : includes the direct costs associated with our corporate-owned stores , primarily rent , utilities , payroll , marketing , maintenance and supplies . the components of store operations remain relatively stable for each store and change primarily based on the number of corporate-owned stores . our statements of operations do not include , and we are not responsible for , any costs associated with operating franchisee-owned stores . selling , general and administrative expenses : consists of costs associated with administrative and franchisee support functions related to our existing business as well as growth and development activities , including costs to support equipment placement and assembly services . these costs primarily consist of payroll , it-related , marketing , legal and accounting expenses . cash flows we generate a significant portion of our cash flows from monthly membership dues , royalties and various fees and commissions related to transactions involving our franchisee-owned stores . we oversee the membership billing process , as well as the collection of our royalties and certain other fees , through our third-party hosted system-wide point-of-sale system . we collect monthly dues from our corporate-owned store members on or around the 17 th of each month , while annual fees are collected on or around the 1 st of the second month following the month in which the membership agreement was signed . through our point-of-sale system , we oversee the processing of membership billings for franchisee-owned stores . our royalties and certain other fees are deducted on or around the 17 th of each month from these membership billings by the processor prior to the net billings being remitted to the franchisees . our franchisees are responsible for maintaining the membership billing records and collection of member dues for their respective stores through the point-of-sale system . our royalties are based on monthly and annual membership billings for the franchisee-owned stores without regard to the collections of those billings by our franchisees . the amount and timing of the collection of royalties and membership dues and fees at corporate-owned stores is , therefore , generally fairly predictable . as new corporate-owned stores open , or existing stores generate positive same store sales , future corporate-owned store revenues are expected to grow . our corporate-owned stores also generate strong operating margins and cash flows , as a significant portion of our costs are fixed or semi-fixed such as rent and labor . equipment sales to new and existing franchisee-owned stores also generate significant cash flows . franchisees either pay in advance or provide evidence of a committed financing arrangement . recent transactions on november 22 , 2016 , we completed a secondary offering ( the “ november secondary offering ” ) pursuant to which the direct tsg investors and participating continuing llc owners sold an aggregate of 15,000,000 shares of class a common stock at a price of $ 23.22 per share . the company did not receive any proceeds from the sale of shares of our class a common stock offered in the november secondary offering . story_separator_special_tag these items include certain purchase accounting adjustments , management fees , certain it system upgrade costs , transaction fees , stock offering-related costs , ipo-related compensation expense , severance expense , pre-opening costs and certain other charges and gains . we believe that adjusted ebitda is an appropriate measure of operating performance in addition to ebitda because it eliminates the impact of other items that we believe reduce the comparability of our underlying core business performance from period to period and is therefore useful to our investors in co mparing the core performance of our business from period to period . four-wall ebitda is an assessment of store-level profitability for stores included in the same-store-sales base , which adjusts for certain administrative and other items that we do not con sider in our evaluation of store-level performance . a reconciliation of net income to ebitda and adjusted ebitda is set forth below for the years ended december 31 , 2016 , 2015 and 2014 : replace_table_token_8_th ( 1 ) includes $ 0.6 million and $ 4.7 million of loss on extinguishment of debt in the years ended december 31 , 2016 and 2014 , respectively . ( 2 ) represents the impact of revenue-related purchase accounting adjustments associated with the 2012 acquisition . at the time of the 2012 acquisition , the company maintained a deferred revenue account , which consisted of deferred area development agreement fees , deferred franchise fees , and deferred enrollment fees that the company billed and collected up front but recognizes for gaap purposes at a later date . in connection with the 2012 acquisition , it was determined that the carrying amount of deferred revenue was greater than the fair value assessed in accordance with asc 805—business combinations , which resulted in a write-down of the carrying value of the deferred revenue balance upon application of acquisition push-down accounting under asc 805. for the years ended december 31 , 2016 , 2015 and 2014 , these amounted to $ 487 , $ 713 and $ 1,329 , respectively , representing the amount of additional revenue that would have been recognized in those years if the write-down to deferred revenue had not occurred in connection with the application of acquisition pushdown accounting . in connection with the march 31 , 2014 acquisition of eight franchisee-owned stores , the adjustments above include the reversal of revenue recognized in accordance with gaap subsequent to the acquisition for which the corresponding cash was received by the previous owner prior to our acquisition of the stores . this adjustment is a decrease of $ 795 for the year ended december 31 , 2014 . 46 ( 3 ) represents the impact of rent related purchase accounting adjustments . in accordance with guidance in asc 805 – business combinations , in conne ction with the 2012 acquisition , the company 's deferred rent liability was required to be written off as of the acquisition date and rent is being recorded on a straight-line basis from the acquisition date through the end of the lease term . this resulted in higher overall rent expense each period than would have otherwise been recorded had the deferred rent liability not been written off as a result of the acquisition push down accounting applied in accordance with asc 805. adjustments of $ 475 , $ 415 and $ 4 92 in the years ending december 31 , 2016 , 2015 and 2014 , respectively , reflect the difference between the higher rent expense recorded in accordance with gaap since the acquisition and the rent expense that would have been recorded had the 2012 acquisition not occurred . adjustments of $ 386 , $ 478 and $ 495 for the years ending december 31 , 2016 , 2015 and 2014 , respectively , are due to the amortization of favorable and unfavorable lease intangible assets which were recorded in connection with the 2012 acquisit ion and the acquisition of eight franchisee-owned stores on march 31 , 2014. all of the rent related purchase accounting adjustments are adjustments to rent expense which is included in store operations on our consolidated statements of operations . ( 4 ) represents management fees and expenses paid to a management company affiliated with tsg pursuant to a management services agreement that terminated in connection with the ipo , including a $ 1.0 million termination fee in the year ended december 31 , 2015 . ( 5 ) represents costs associated with certain it system upgrades , primarily related to our point-of-sale systems . ( 6 ) represents transaction fees and expenses related to the amendment of our credit facility in the year ended december 31 , 2016 and to business acquisitions in the year ended december 31 , 2014 . ( 7 ) represents legal , accounting and other costs incurred in connection with offerings of the company 's class a common stock . ( 8 ) represents cash-based and equity-based compensation expense recorded in connection with the ipo . ( 9 ) represents severance expense recorded in connection with an equity award modification . ( 10 ) represents costs associated with new corporate-owned stores incurred prior to the store opening , including payroll-related costs , rent and occupancy expenses , marketing and other store operating supply expenses . ( 11 ) represents the impact of the recording of a one-time , non-cash loss recorded in accordance with asc 805 – business combinations related to our acquisition of eight franchisee owned stores on march 31 , 2014. the loss recorded under gaap represents the difference between the fair value of the reacquired franchise rights and the contractual terms of the required franchise rights and is included in other ( gain ) loss on our consolidated statements of operations . ( 12 ) represents a gain recorded in connection with the write-off of a previously accrued deferred equipment discount that is no longer expected to be utilized . this amount was

liquidity and capital resources as of december 31 , 2016 , we had $ 40.4 million of cash and cash equivalents . in addition , as of december 31 , 2016 , we had borrowing capacity of $ 75.0 million under our revolving credit facility . we require cash principally to fund day-to-day operations , to finance capital investments , to service our outstanding debt and obligations under our tax benefit arrangements and to address our working capital needs . based on our current level of operations and anticipated growth , we believe that with our available cash balance , the cash generated from our operations , and amounts available under our revolving credit facility will be adequate to meet our anticipated debt service requirements and obligations under our tax benefit arrangements , capital expenditures , payments of tax distributions and working capital needs for at least the next twelve months . we believe that we will be able to meet these obligations even if we experience no growth in sales or profits . our ability to continue to fund these items and continue to reduce debt could be adversely affected by the occurrence of any of the events described under “ risk factors. ” there can be no assurance , however , that our business will generate sufficient cash flows from operations or that future borrowings will be available under our revolving credit facility or otherwise to enable us to service our indebtedness , including our senior secured credit facility , or to make anticipated capital expenditures . our future operating performance and our ability to service , extend or refinance the senior secured credit facility will be subject to future economic conditions and to financial , business and other factors , many of which are beyond our control . the following table presents summary cash flow information for the years ended december 31 , 2016 and 2015 : replace_table_token_15_th operating activities for the year ended december 31 , 2016 , net cash provided by operating activities was $ 108.8 million compared to $ 81.7


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources as of december 31 , 2016 , we had $ 40.4 million of cash and cash equivalents . in addition , as of december 31 , 2016 , we had borrowing capacity of $ 75.0 million under our revolving credit facility . we require cash principally to fund day-to-day operations , to finance capital investments , to service our outstanding debt and obligations under our tax benefit arrangements and to address our working capital needs . based on our current level of operations and anticipated growth , we believe that with our available cash balance , the cash generated from our operations , and amounts available under our revolving credit facility will be adequate to meet our anticipated debt service requirements and obligations under our tax benefit arrangements , capital expenditures , payments of tax distributions and working capital needs for at least the next twelve months . we believe that we will be able to meet these obligations even if we experience no growth in sales or profits . our ability to continue to fund these items and continue to reduce debt could be adversely affected by the occurrence of any of the events described under “ risk factors. ” there can be no assurance , however , that our business will generate sufficient cash flows from operations or that future borrowings will be available under our revolving credit facility or otherwise to enable us to service our indebtedness , including our senior secured credit facility , or to make anticipated capital expenditures . our future operating performance and our ability to service , extend or refinance the senior secured credit facility will be subject to future economic conditions and to financial , business and other factors , many of which are beyond our control . the following table presents summary cash flow information for the years ended december 31 , 2016 and 2015 : replace_table_token_15_th operating activities for the year ended december 31 , 2016 , net cash provided by operating activities was $ 108.8 million compared to $ 81.7
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 Suspicious Activity Report : other fees includes online member join fees we receive from franchisees related to processing transactions for new members joining franchisee-owned stores through the company 's website and billing transaction fees we receive from franchisees related to franchisee membership billing processing through our third-party hosted point-of-sale system . through our point-of-sale system , we oversee the processing of membership billings for franchisee-owned stores through eft transactions and the billing transaction fees we receive are based upon the number of transactions processed . our royalties and other fees are deducted from these membership billings and remitted to us by the processor prior to the net billings being remitted to the franchisees . commission income is generated from activities related to our franchisees , including purchases of merchandise , promotional materials and store fixtures by our franchisees from third-party vendors . beginning in 2015 , commission income also included commissions earned on equipment sales by third-party vendors to franchisees in international locations . these commissions are recognized when amounts have been earned and collectability from the vendor is reasonably assured . corporate-owned store segment revenue : includes monthly membership dues , enrollment fees , annual fees and prepaid fees paid by our members as well as retail sales . this source of revenue comprised 28 % , 30 % , and 30 % of our total revenue for the years ended december 31 , 2016 , 2015 and 2014 , respectively . as of december 31 , 2016 , 96 % of our members paid their monthly dues by eft , while the remainder prepaid annually in advance . membership dues and fees are earned and recognized over the membership term . enrollment fees are recognized ratably over the estimated duration of the membership . annual fees are recognized ratably over the 12-month membership period . retail sales are recognized at the point of sale . equipment segment revenue : includes equipment revenue for new u.s. franchisee-owned stores as well as replacement equipment for u.s. existing franchisee-owned stores . franchisee-owned stores are required to replace their equipment every four to seven years based on the life of the specific equipment . this source of revenue comprised 41 % , 43 % and 44 % of our total revenue for the years ended december 31 , 2016 , 2015 and 2014 , respectively . equipment revenue is recognized when the equipment is delivered , assembled , and accepted by the franchisee . 39 expenses we primarily incur the following expenses : cost of revenue : primarily includes the direct costs associated with equipment sales to new and existing franchisee-owned stores in the u.s. as well as direct costs related to our point-of-sale system . cost of revenue also includes the cost of retail sales at our corporate-owned stores , which is immaterial . our cost of revenue changes primarily based on equipment sales volume . store operations : includes the direct costs associated with our corporate-owned stores , primarily rent , utilities , payroll , marketing , maintenance and supplies . the components of store operations remain relatively stable for each store and change primarily based on the number of corporate-owned stores . our statements of operations do not include , and we are not responsible for , any costs associated with operating franchisee-owned stores . selling , general and administrative expenses : consists of costs associated with administrative and franchisee support functions related to our existing business as well as growth and development activities , including costs to support equipment placement and assembly services . these costs primarily consist of payroll , it-related , marketing , legal and accounting expenses . cash flows we generate a significant portion of our cash flows from monthly membership dues , royalties and various fees and commissions related to transactions involving our franchisee-owned stores . we oversee the membership billing process , as well as the collection of our royalties and certain other fees , through our third-party hosted system-wide point-of-sale system . we collect monthly dues from our corporate-owned store members on or around the 17 th of each month , while annual fees are collected on or around the 1 st of the second month following the month in which the membership agreement was signed . through our point-of-sale system , we oversee the processing of membership billings for franchisee-owned stores . our royalties and certain other fees are deducted on or around the 17 th of each month from these membership billings by the processor prior to the net billings being remitted to the franchisees . our franchisees are responsible for maintaining the membership billing records and collection of member dues for their respective stores through the point-of-sale system . our royalties are based on monthly and annual membership billings for the franchisee-owned stores without regard to the collections of those billings by our franchisees . the amount and timing of the collection of royalties and membership dues and fees at corporate-owned stores is , therefore , generally fairly predictable . as new corporate-owned stores open , or existing stores generate positive same store sales , future corporate-owned store revenues are expected to grow . our corporate-owned stores also generate strong operating margins and cash flows , as a significant portion of our costs are fixed or semi-fixed such as rent and labor . equipment sales to new and existing franchisee-owned stores also generate significant cash flows . franchisees either pay in advance or provide evidence of a committed financing arrangement . recent transactions on november 22 , 2016 , we completed a secondary offering ( the “ november secondary offering ” ) pursuant to which the direct tsg investors and participating continuing llc owners sold an aggregate of 15,000,000 shares of class a common stock at a price of $ 23.22 per share . the company did not receive any proceeds from the sale of shares of our class a common stock offered in the november secondary offering . story_separator_special_tag these items include certain purchase accounting adjustments , management fees , certain it system upgrade costs , transaction fees , stock offering-related costs , ipo-related compensation expense , severance expense , pre-opening costs and certain other charges and gains . we believe that adjusted ebitda is an appropriate measure of operating performance in addition to ebitda because it eliminates the impact of other items that we believe reduce the comparability of our underlying core business performance from period to period and is therefore useful to our investors in co mparing the core performance of our business from period to period . four-wall ebitda is an assessment of store-level profitability for stores included in the same-store-sales base , which adjusts for certain administrative and other items that we do not con sider in our evaluation of store-level performance . a reconciliation of net income to ebitda and adjusted ebitda is set forth below for the years ended december 31 , 2016 , 2015 and 2014 : replace_table_token_8_th ( 1 ) includes $ 0.6 million and $ 4.7 million of loss on extinguishment of debt in the years ended december 31 , 2016 and 2014 , respectively . ( 2 ) represents the impact of revenue-related purchase accounting adjustments associated with the 2012 acquisition . at the time of the 2012 acquisition , the company maintained a deferred revenue account , which consisted of deferred area development agreement fees , deferred franchise fees , and deferred enrollment fees that the company billed and collected up front but recognizes for gaap purposes at a later date . in connection with the 2012 acquisition , it was determined that the carrying amount of deferred revenue was greater than the fair value assessed in accordance with asc 805—business combinations , which resulted in a write-down of the carrying value of the deferred revenue balance upon application of acquisition push-down accounting under asc 805. for the years ended december 31 , 2016 , 2015 and 2014 , these amounted to $ 487 , $ 713 and $ 1,329 , respectively , representing the amount of additional revenue that would have been recognized in those years if the write-down to deferred revenue had not occurred in connection with the application of acquisition pushdown accounting . in connection with the march 31 , 2014 acquisition of eight franchisee-owned stores , the adjustments above include the reversal of revenue recognized in accordance with gaap subsequent to the acquisition for which the corresponding cash was received by the previous owner prior to our acquisition of the stores . this adjustment is a decrease of $ 795 for the year ended december 31 , 2014 . 46 ( 3 ) represents the impact of rent related purchase accounting adjustments . in accordance with guidance in asc 805 – business combinations , in conne ction with the 2012 acquisition , the company 's deferred rent liability was required to be written off as of the acquisition date and rent is being recorded on a straight-line basis from the acquisition date through the end of the lease term . this resulted in higher overall rent expense each period than would have otherwise been recorded had the deferred rent liability not been written off as a result of the acquisition push down accounting applied in accordance with asc 805. adjustments of $ 475 , $ 415 and $ 4 92 in the years ending december 31 , 2016 , 2015 and 2014 , respectively , reflect the difference between the higher rent expense recorded in accordance with gaap since the acquisition and the rent expense that would have been recorded had the 2012 acquisition not occurred . adjustments of $ 386 , $ 478 and $ 495 for the years ending december 31 , 2016 , 2015 and 2014 , respectively , are due to the amortization of favorable and unfavorable lease intangible assets which were recorded in connection with the 2012 acquisit ion and the acquisition of eight franchisee-owned stores on march 31 , 2014. all of the rent related purchase accounting adjustments are adjustments to rent expense which is included in store operations on our consolidated statements of operations . ( 4 ) represents management fees and expenses paid to a management company affiliated with tsg pursuant to a management services agreement that terminated in connection with the ipo , including a $ 1.0 million termination fee in the year ended december 31 , 2015 . ( 5 ) represents costs associated with certain it system upgrades , primarily related to our point-of-sale systems . ( 6 ) represents transaction fees and expenses related to the amendment of our credit facility in the year ended december 31 , 2016 and to business acquisitions in the year ended december 31 , 2014 . ( 7 ) represents legal , accounting and other costs incurred in connection with offerings of the company 's class a common stock . ( 8 ) represents cash-based and equity-based compensation expense recorded in connection with the ipo . ( 9 ) represents severance expense recorded in connection with an equity award modification . ( 10 ) represents costs associated with new corporate-owned stores incurred prior to the store opening , including payroll-related costs , rent and occupancy expenses , marketing and other store operating supply expenses . ( 11 ) represents the impact of the recording of a one-time , non-cash loss recorded in accordance with asc 805 – business combinations related to our acquisition of eight franchisee owned stores on march 31 , 2014. the loss recorded under gaap represents the difference between the fair value of the reacquired franchise rights and the contractual terms of the required franchise rights and is included in other ( gain ) loss on our consolidated statements of operations . ( 12 ) represents a gain recorded in connection with the write-off of a previously accrued deferred equipment discount that is no longer expected to be utilized . this amount was

