our results in pi & is are driven primarily by the number of inspectors that perform services for our customers and the fees that we charge for those services , which depend on the type and number of inspectors used on a particular project , the nature of the project and the duration of the project . we bill our customers on a per inspector basis , including per diem charges , mileage and other reimbursement items . 49 how we evaluate our operations our management uses a variety of financial and operating metrics to analyze our performance . we view these metrics as significant factors in assessing our operating results and profitability and intend to review these measurements frequently for consistency and trend analysis . these metrics include : saltwater disposal and residual oil volumes in w & es inspector headcount in pi & is operating expenses ; segment gross margin ; adjusted ebitda ; and distributable cash flow . saltwater disposal and residual oil volumes the amount of revenue we generate in w & es depends primarily on the volume of produced water and flowback water that we dispose for our customers pursuant to published or negotiated rates , as well as the volume of residual oil that we sell pursuant to rates that are determined based on the quality of the oil sold and prevailing oil prices . our revenues from produced water , flowback water or residual oil sales are generated pursuant to contracts that are short-term in nature . revenues in this segment are recognized when the service is performed and collectability of fees is reasonably assured . the volumes of saltwater disposed at our swd facilities are driven by water volumes generated from existing oil and natural gas wells during their useful lives and development drilling and production volumes from the wells located near our facilities . producers ' willingness to engage in new drilling is determined by a number of factors , the most important of which are the prevailing and projected prices of oil , natural gas and ngls , the cost to drill and operate a well , the availability and cost of capital and environmental and governmental regulations . we generally expect the level of drilling to positively correlate with long-term trends in prices of oil , natural gas and ngls . similarly , oil and natural gas production levels nationally and regionally generally tend to positively correlate with drilling activity . approximately 22 % and 25 % of our segment revenue for the years ended december 31 , 2014 and 2013 , respectively , in w & es was derived from sales of residual oil recovered during the saltwater treatment process . our ability to recover residual oil is dependent upon the oil content in the saltwater we treat , which is , among other things , a function of water type , chemistry , source and temperature . generally , where outside temperatures are lower , oil separation is more difficult . thus , our residual oil recovery during the winter season is lower than our recovery during the summer season in north dakota . additionally , residual oil content will decrease if , among other things , producers begin recovering higher levels of residual oil in saltwater prior to delivering such saltwater to us for treatment . inspector headcount the amount of revenue we generate in pi & is depends primarily on the number of inspectors that perform services for our customers . the number of inspectors engaged on projects is driven by the type of project , prevailing market rates , the age and condition of customers ' midstream pipelines , gathering systems and distribution systems and the legal and regulatory requirements relating to the inspection and maintenance of those assets . operating expenses the primary components of our operating expenses that we evaluate include costs of services , general and administrative , and depreciation and amortization . costs of services . we seek to maximize the profitability of our operations in part by minimizing , to the extent appropriate , expenses directly tied to operating and maintaining our assets . repair and maintenance costs , employee-related costs , residual oil disposal costs and utilities expenses are the primary cost of services components in w & es . these expenses generally remain relatively stable across broad ranges of saltwater disposal volumes but can fluctuate from period to period depending on the mix of activities performed during that period and the timing of these expenses . we seek to manage our operations and repair and maintenance capital expenditures on our swd facilities and related assets by scheduling repairs and maintenance over time to avoid significant variability in our maintenance capital expenditures , downtime and minimize their impact on our cash flows . employee-or-contractor-related costs and per diem expenses are the primary costs of services components in pi & is . these expenses fluctuate from period to period based on the number , type and location of projects on which we are engaged at any given time . 50 general and administrative . general and administrative expenses include management and overhead payroll , general office expenses , management fees , legal fees and other expenses . under our amended and restated omnibus agreement , holdings charges us an annual administrative fee of $ 4.0 million ( payable in equal quarterly installments ) for the provision of certain partnership overhead expenses . this fee is subject to an increase by an annual amount equal to ppi plus one percent or , with the concurrence of the conflicts committee , in the event of an expansion of our operations , including through acquisitions or internal growth . story_separator_special_tag the accounting estimate relative to assessing the impairment of goodwill is a critical accounting estimate for each of our reporting segments . for our pi & is reporting unit , we performed a qualitative assessment to determine whether the fair value of the reporting unit was more likely than not to be less than its carrying value . our evaluation consisted of assessing various qualitative factors including current and projected future earnings , capitalization , current customer relationships and projects and the impact of lower crude oil prices on our earnings . the qualitative assessment on this reporting unit indicated the fair value of the reporting unit exceeded the carrying value and the reporting unit was not at risk for a potential goodwill impairment . for our w & es segment , after giving consideration to certain qualitative factors including trends in the energy industry and recorded impairments of property and equipment , we elected to perform a quantitative goodwill impairment analysis . we computed the fair value of the reporting unit employing multiple valuation methodologies , including a market approach ( market price multiples of comparable companies ) and an income approach ( discounted cash flow analysis ) . this approach is consistent with the requirement to utilize all appropriate valuation techniques as described in asc 820-10-35-24 “ fair value measurements and disclosures . ” given recent declines in the price of crude oil and the related impact on the valuations of energy related companies , relevant market data was difficult to obtain and was of limited usefulness . accordingly , we relied heavily on the use of the income approach for the valuation of the reporting unit . 54 a discounted cash flow analysis requires us to make various assumptions about sales , operating margins , capital expenditures , working capital and growth rates . these assumptions are based on our budgets , business plans , economic projections , and anticipated future cash flows . in determining the fair value of our reporting units , we were required to make significant judgments and estimates regarding the impact of anticipated economic factors on our business . the forecast used in this analysis makes certain assumptions about future pricing , volumes and expected maintenance capital expenditures . assumptions are also made for a “ normalized ” perpetual growth rate for periods beyond the long range financial forecast period . critical estimates that are used as part of these evaluations include , among other things , the discount rate applied to future earnings reflecting a weighted average cost of capital rate and earnings growth assumptions . our estimate of water volumes disposed and revenue per barrel of water disposed are critical assumptions used in our discounted cash flow analysis for our swd facilities . our estimates of fair value are sensitive to changes in all of these variables , certain of which relate to broader macroeconomic conditions outside our control . as a result , actual performance in the near and longer-term could be different from these expectations and assumptions . this could be caused by events such as strategic decisions made in response to economic and competitive conditions and the impact of economic factors , such as continued increases in oil field development in our customer base . in addition , some of the inherent estimates and assumptions used in determining fair value of the reporting units are outside the control of management , including commodity prices , interest rates , cost of capital and our credit ratings . while we believe we have made reasonable estimates and assumptions to calculate the fair value of the reporting units and other intangible assets , it is possible a material change could occur . as a result of our valuation , we determined that the carrying value of the w & es reporting unit exceeded the fair value of the reporting unit resulting in a goodwill impairment charge of $ 19.8 million . the w & es segment has experienced increased competition in some of the regions in which we operate which has resulted in declining volumes and increased pricing pressure . the fourth quarter decline in oil prices has intensified competitive pressures and had a direct impact on our revenues . many of our customers have announced significantly reduced drilling programs in the bakken . the decline in drilling will directly impact the amount of flowback and produced water that we process and dispose . the energy downturn is also expected to continue to negatively impact our pricing as our customers look for ways to reduce costs . in addition , as we process lower water volumes , in particular flowback water volumes directly attributable to drilling , we will recover less skim oil . lower oil prices will also directly impact revenues as oil sales have historically represented in excess of 20 % of our w & es revenues . depreciation methods , estimated useful lives of property depreciation expense represents the systematic and rational write-off of the cost of property and equipment , net of residual or salvage value ( if any ) , to the results of operations for the periods the assets are used . we depreciate our property and equipment using the straight-line method , which results in recording depreciation expense evenly over the estimated life of the individual asset . the estimate of depreciation expense requires us to make assumptions regarding the useful economic lives and residual values of our assets . at the time we acquired and placed our property and equipment in service , we developed assumptions about such lives and residual values that we believe are reasonable ; however , circumstances may develop that could require us to change these assumptions in future periods , which would change our depreciation expense amounts prospectively . we currently use a life of 15 years for wells and related equipment , which include subsurface well completion and other improvements . we use a life of

cash flows the following table sets forth a summary of the net cash provided by ( used in ) operating , investing and financing activities for the periods identified . the cash flows include activity of the w & es segment for the periods presented and activity of the pi & is segment since the acquisition of the tir entities on june 26 , 2013 and therefore , may not be comparable from period to period . replace_table_token_11_th operating activities . the growth in operating cash flow for the year ended december 31 , 2014 is primarily the result of having a full year of operations for the tir entities as compared to slightly over six months in 2013. the operating cash flows for 2014 reflect the payment of income taxes of approximately $ 15.0 related to the conversion of the u.s. tir entities from taxable entities to pass-through entities for income tax purposes . the tax expense associated with the conversion was recorded in 2013. in addition , 2014 cash flows were favorably impacted by a decline in accounts receivable associated with lower headcounts in the fourth quarter of 2014 as well as an improvement in collections . operating cash flows for 2012 primarily include overhead activities of the start-up corporate parent and are not comparable to 2013. also , operating cash flows of our predecessor are not comparable to 2013 as a result of the acquisition of the tir entities , the changes in number of swd facilities and the change in structure of the entities . investing activities . cash flows from investing activities are primarily impacted by acquisition activity and to a lesser extent , our capital expenditures . investing cash flows for the year ended december 31 , 2014 primarily included a $ 1.8 million acquisition of a swd facility and capital expenditures of $ 0.5 million .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flows the following table sets forth a summary of the net cash provided by ( used in ) operating , investing and financing activities for the periods identified . the cash flows include activity of the w & es segment for the periods presented and activity of the pi & is segment since the acquisition of the tir entities on june 26 , 2013 and therefore , may not be comparable from period to period . replace_table_token_11_th operating activities . the growth in operating cash flow for the year ended december 31 , 2014 is primarily the result of having a full year of operations for the tir entities as compared to slightly over six months in 2013. the operating cash flows for 2014 reflect the payment of income taxes of approximately $ 15.0 related to the conversion of the u.s. tir entities from taxable entities to pass-through entities for income tax purposes . the tax expense associated with the conversion was recorded in 2013. in addition , 2014 cash flows were favorably impacted by a decline in accounts receivable associated with lower headcounts in the fourth quarter of 2014 as well as an improvement in collections . operating cash flows for 2012 primarily include overhead activities of the start-up corporate parent and are not comparable to 2013. also , operating cash flows of our predecessor are not comparable to 2013 as a result of the acquisition of the tir entities , the changes in number of swd facilities and the change in structure of the entities . investing activities . cash flows from investing activities are primarily impacted by acquisition activity and to a lesser extent , our capital expenditures . investing cash flows for the year ended december 31 , 2014 primarily included a $ 1.8 million acquisition of a swd facility and capital expenditures of $ 0.5 million .
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 Suspicious Activity Report : our results in pi & is are driven primarily by the number of inspectors that perform services for our customers and the fees that we charge for those services , which depend on the type and number of inspectors used on a particular project , the nature of the project and the duration of the project . we bill our customers on a per inspector basis , including per diem charges , mileage and other reimbursement items . 49 how we evaluate our operations our management uses a variety of financial and operating metrics to analyze our performance . we view these metrics as significant factors in assessing our operating results and profitability and intend to review these measurements frequently for consistency and trend analysis . these metrics include : saltwater disposal and residual oil volumes in w & es inspector headcount in pi & is operating expenses ; segment gross margin ; adjusted ebitda ; and distributable cash flow . saltwater disposal and residual oil volumes the amount of revenue we generate in w & es depends primarily on the volume of produced water and flowback water that we dispose for our customers pursuant to published or negotiated rates , as well as the volume of residual oil that we sell pursuant to rates that are determined based on the quality of the oil sold and prevailing oil prices . our revenues from produced water , flowback water or residual oil sales are generated pursuant to contracts that are short-term in nature . revenues in this segment are recognized when the service is performed and collectability of fees is reasonably assured . the volumes of saltwater disposed at our swd facilities are driven by water volumes generated from existing oil and natural gas wells during their useful lives and development drilling and production volumes from the wells located near our facilities . producers ' willingness to engage in new drilling is determined by a number of factors , the most important of which are the prevailing and projected prices of oil , natural gas and ngls , the cost to drill and operate a well , the availability and cost of capital and environmental and governmental regulations . we generally expect the level of drilling to positively correlate with long-term trends in prices of oil , natural gas and ngls . similarly , oil and natural gas production levels nationally and regionally generally tend to positively correlate with drilling activity . approximately 22 % and 25 % of our segment revenue for the years ended december 31 , 2014 and 2013 , respectively , in w & es was derived from sales of residual oil recovered during the saltwater treatment process . our ability to recover residual oil is dependent upon the oil content in the saltwater we treat , which is , among other things , a function of water type , chemistry , source and temperature . generally , where outside temperatures are lower , oil separation is more difficult . thus , our residual oil recovery during the winter season is lower than our recovery during the summer season in north dakota . additionally , residual oil content will decrease if , among other things , producers begin recovering higher levels of residual oil in saltwater prior to delivering such saltwater to us for treatment . inspector headcount the amount of revenue we generate in pi & is depends primarily on the number of inspectors that perform services for our customers . the number of inspectors engaged on projects is driven by the type of project , prevailing market rates , the age and condition of customers ' midstream pipelines , gathering systems and distribution systems and the legal and regulatory requirements relating to the inspection and maintenance of those assets . operating expenses the primary components of our operating expenses that we evaluate include costs of services , general and administrative , and depreciation and amortization . costs of services . we seek to maximize the profitability of our operations in part by minimizing , to the extent appropriate , expenses directly tied to operating and maintaining our assets . repair and maintenance costs , employee-related costs , residual oil disposal costs and utilities expenses are the primary cost of services components in w & es . these expenses generally remain relatively stable across broad ranges of saltwater disposal volumes but can fluctuate from period to period depending on the mix of activities performed during that period and the timing of these expenses . we seek to manage our operations and repair and maintenance capital expenditures on our swd facilities and related assets by scheduling repairs and maintenance over time to avoid significant variability in our maintenance capital expenditures , downtime and minimize their impact on our cash flows . employee-or-contractor-related costs and per diem expenses are the primary costs of services components in pi & is . these expenses fluctuate from period to period based on the number , type and location of projects on which we are engaged at any given time . 50 general and administrative . general and administrative expenses include management and overhead payroll , general office expenses , management fees , legal fees and other expenses . under our amended and restated omnibus agreement , holdings charges us an annual administrative fee of $ 4.0 million ( payable in equal quarterly installments ) for the provision of certain partnership overhead expenses . this fee is subject to an increase by an annual amount equal to ppi plus one percent or , with the concurrence of the conflicts committee , in the event of an expansion of our operations , including through acquisitions or internal growth . story_separator_special_tag the accounting estimate relative to assessing the impairment of goodwill is a critical accounting estimate for each of our reporting segments . for our pi & is reporting unit , we performed a qualitative assessment to determine whether the fair value of the reporting unit was more likely than not to be less than its carrying value . our evaluation consisted of assessing various qualitative factors including current and projected future earnings , capitalization , current customer relationships and projects and the impact of lower crude oil prices on our earnings . the qualitative assessment on this reporting unit indicated the fair value of the reporting unit exceeded the carrying value and the reporting unit was not at risk for a potential goodwill impairment . for our w & es segment , after giving consideration to certain qualitative factors including trends in the energy industry and recorded impairments of property and equipment , we elected to perform a quantitative goodwill impairment analysis . we computed the fair value of the reporting unit employing multiple valuation methodologies , including a market approach ( market price multiples of comparable companies ) and an income approach ( discounted cash flow analysis ) . this approach is consistent with the requirement to utilize all appropriate valuation techniques as described in asc 820-10-35-24 “ fair value measurements and disclosures . ” given recent declines in the price of crude oil and the related impact on the valuations of energy related companies , relevant market data was difficult to obtain and was of limited usefulness . accordingly , we relied heavily on the use of the income approach for the valuation of the reporting unit . 54 a discounted cash flow analysis requires us to make various assumptions about sales , operating margins , capital expenditures , working capital and growth rates . these assumptions are based on our budgets , business plans , economic projections , and anticipated future cash flows . in determining the fair value of our reporting units , we were required to make significant judgments and estimates regarding the impact of anticipated economic factors on our business . the forecast used in this analysis makes certain assumptions about future pricing , volumes and expected maintenance capital expenditures . assumptions are also made for a “ normalized ” perpetual growth rate for periods beyond the long range financial forecast period . critical estimates that are used as part of these evaluations include , among other things , the discount rate applied to future earnings reflecting a weighted average cost of capital rate and earnings growth assumptions . our estimate of water volumes disposed and revenue per barrel of water disposed are critical assumptions used in our discounted cash flow analysis for our swd facilities . our estimates of fair value are sensitive to changes in all of these variables , certain of which relate to broader macroeconomic conditions outside our control . as a result , actual performance in the near and longer-term could be different from these expectations and assumptions . this could be caused by events such as strategic decisions made in response to economic and competitive conditions and the impact of economic factors , such as continued increases in oil field development in our customer base . in addition , some of the inherent estimates and assumptions used in determining fair value of the reporting units are outside the control of management , including commodity prices , interest rates , cost of capital and our credit ratings . while we believe we have made reasonable estimates and assumptions to calculate the fair value of the reporting units and other intangible assets , it is possible a material change could occur . as a result of our valuation , we determined that the carrying value of the w & es reporting unit exceeded the fair value of the reporting unit resulting in a goodwill impairment charge of $ 19.8 million . the w & es segment has experienced increased competition in some of the regions in which we operate which has resulted in declining volumes and increased pricing pressure . the fourth quarter decline in oil prices has intensified competitive pressures and had a direct impact on our revenues . many of our customers have announced significantly reduced drilling programs in the bakken . the decline in drilling will directly impact the amount of flowback and produced water that we process and dispose . the energy downturn is also expected to continue to negatively impact our pricing as our customers look for ways to reduce costs . in addition , as we process lower water volumes , in particular flowback water volumes directly attributable to drilling , we will recover less skim oil . lower oil prices will also directly impact revenues as oil sales have historically represented in excess of 20 % of our w & es revenues . depreciation methods , estimated useful lives of property depreciation expense represents the systematic and rational write-off of the cost of property and equipment , net of residual or salvage value ( if any ) , to the results of operations for the periods the assets are used . we depreciate our property and equipment using the straight-line method , which results in recording depreciation expense evenly over the estimated life of the individual asset . the estimate of depreciation expense requires us to make assumptions regarding the useful economic lives and residual values of our assets . at the time we acquired and placed our property and equipment in service , we developed assumptions about such lives and residual values that we believe are reasonable ; however , circumstances may develop that could require us to change these assumptions in future periods , which would change our depreciation expense amounts prospectively . we currently use a life of 15 years for wells and related equipment , which include subsurface well completion and other improvements . we use a life of

