during the year ended june 30 , 2013 , we reported net income of $ 147.1 million and diluted earnings per share of $ 1.77 that included income tax expense of $ 86.1 million . we incurred research and development expenses of $ 53.7 million , $ 42.6 million , and $ 27.8 million for the years ended june 30 , 2013 , 2012 and 2011 , respectively . our research and development expenses include costs incurred in maintaining and improving our nine current molecular diagnostic test offerings and costs incurred for the discovery , development and validation of our pipeline of molecular diagnostic and companion diagnostic test candidates . 45 our selling , general and administrative expenses include costs associated with building our molecular diagnostic and companion diagnostic businesses domestically and internationally . selling , general and administrative expenses consist primarily of salaries , commissions and related personnel costs for sales , marketing , customer service , billing and collection , executive , legal , finance and accounting , information technology , human resources , and allocated facilities expenses . we expect that our selling , general and administrative expenses will increase from quarter to quarter and that such increases may be substantial , depending on the number and scope of any new molecular diagnostic and companion diagnostic launches , our efforts in support of our existing molecular diagnostic tests and companion diagnostic services as well as our continued international expansion efforts . between may 2010 and january 2013 , we repurchased $ 500 million of our outstanding common stock . in february 2013 , our board of directors authorized us to repurchase an additional $ 200 million of our outstanding common stock . in connection with this latest stock repurchase authorization , we have been authorized to repurchase shares at management 's discretion based on market conditions and have repurchased $ 46.6 million of our outstanding common stock as of june 30 , 2013 under this authorization . see also part ii , item 5. market for registrant 's common equity , related stockholder matters and issuer repurchases of equity securitiesissuer purchases of equity securities. critical accounting policies critical accounting policies are those policies which are both important to the portrayal of a company 's financial condition and results and require management 's most difficult , subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . our critical accounting policies are as follows : revenue recognition ; allowance for doubtful accounts ; goodwill ; and income taxes revenue recognition . revenue includes the sale of molecular diagnostic tests and of our companion diagnostic services . revenue is recorded at the invoiced amount net of any discounts or allowances and is recognized when persuasive evidence of an agreement exists , delivery has occurred , the fee is fixed or determinable , and collection is reasonably assured . revenue is recognized upon completion of the test or service , communication of results , and when collectability is reasonably assured . allowance for doubtful accounts . the preparation of our financial statements in accordance with u.s. gaap requires us to make estimates and assumptions that affect the reported amount of assets at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . trade accounts receivable are comprised of amounts due from sales of our molecular diagnostic tests , which are recorded net of any discounts or contractual allowances . we analyze trade accounts receivable and consider historic experience , customer creditworthiness , facts and circumstances specific to outstanding balances , and payment terms when evaluating the adequacy of the allowance for doubtful accounts . we periodically evaluate and adjust the allowance for doubtful accounts through a charge or credit to expense when trends or significant events indicate that a change in estimate is appropriate . such changes in estimate could materially affect our results of operations or financial position ; however , to date these changes have not been material . it is possible that we may need to adjust our estimates in future periods . after a review of our allowance for doubtful accounts as of june 30 , 2013 and 2012 , we have determined that a hypothetical ten percent increase in our allowance for doubtful accounts would result in additional bad debt expense and an increase to our allowance for doubtful accounts of $ 750,000 and $ 460,000 , respectively . 46 goodwill . we test goodwill for impairment on an annual basis and in the interim by reporting unit if events and circumstances indicate that goodwill may be impaired . the events and circumstances that are considered include business climate and market conditions , legal factors , operating performance indicators and competition . impairment of goodwill is evaluated on a qualitative basis to determine if using a two-step process is necessary . if the qualitative assessment suggests that impairment is more likely than not , a two-step impairment analysis is performed . the first step involves comparison of the fair value of a reporting unit with its carrying amount . the valuation of a reporting unit requires judgment in estimating future cash flows , discount rates and other factors . in making these judgments , we evaluate the financial health of our business , including such factors as industry performance , market saturation and opportunity , changes in technology and operating cash flows . changes in our forecasts or decreases in the value of our common stock could cause book value of reporting units to exceed their fair values . if the carrying amount of a reporting unit exceeds its fair value , the second step of the process involves a comparison of the fair value and the carrying amount of the goodwill of that reporting unit . story_separator_special_tag 51 interest income for the fiscal year ended june 30 , 2012 was $ 4.6 million , compared to $ 2.2 million for the prior fiscal year . the increase was due primarily to interest income recorded from a $ 25 million note receivable with crescendo bioscience , inc. , or crescendo . income tax expense for the fiscal year ended june 30 , 2012 was $ 72.4 million , for an effective rate of approximately 39 % , compared to income tax expense of $ 58.9 million and an effective rate of approximately 37 % in the 2011 period . income tax expense for the year ended june 30 , 2012 was based on the application of an annual effective tax rate , adjusted by discrete items recognized during the period . our annual effective tax rate is a product of the u.s. federal statutory rate of 35 % , a blended state income tax rate of 3 % and a 1 % impact from our international operations . the effective rate was adjusted by alternative minimum income taxes and timing differences related to the recognition of the tax effect of equity compensation expense from incentive stock options and the deduction realized if those options were disqualified upon exercise . certain significant or unusual items are separately recognized during the period in which they occur and can be a source of variability in the effective tax rates from period to period . for the year ended june 30 , 2012 we realized $ 34.2 million of excess tax benefits from stock-based compensation as a reduction of taxes payable . excess tax benefits from stock-based compensation were credited directly to additional paid-in-capital and were not included in income tax expense . accordingly , they did not impact our effective income tax rate . due to the realization of these excess tax benefits that offset our taxes payable , our current income tax expense in fiscal 2012 was significantly higher than our actual cash paid . ( see note 8 in the fiscal 2012 notes to consolidated financial statements . ) net income for the fiscal year ended june 30 , 2012 was $ 112.2 million compared to $ 100.7 million in the prior fiscal year . this 11 % increase was primarily due to an increase in revenues partially offset by higher research and development expenses . earnings per diluted share was $ 1.30 for the fiscal year ended june 30 , 2012 as compared to $ 1.10 for the prior fiscal year , an increase of 18 % . this increase was due to a larger net income and a reduced number of weighted shares outstanding during the 2012 fiscal year due to the our share repurchase program . story_separator_special_tag style= `` font-size:6px ; margin-top:0px ; margin-bottom:0px `` > the costs , timing , outcome , and enforcement of any regulatory review of our existing or future molecular diagnostic tests and companion diagnostic services ; the costs of preparing , filing and prosecuting patent applications , maintaining and enforcing our issued patents and pursuing or defending intellectual property-related claims ; the costs , timing and outcome of any litigation against us or that we pursue ; the introduction of technological innovations or new commercial tests by our competitors ; changes in intellectual property laws covering our molecular diagnostic tests and companion diagnostic services and patents or enforcement in the united states and foreign countries , such as the supreme court decision in the lawsuit brought against us by the association for molecular pathology et al ; changes in the governmental or private insurers reimbursement levels for our tests ; and changes in structure of the healthcare system or healthcare payment systems . off-balance sheet arrangements none . 53 contractual obligations the following table represents our consolidated contractual obligations as of june 30 , 2013 ( in thousands ) : replace_table_token_12_th the expected timing of payment for the obligations listed above is estimated based on current information . actual payment timing and amounts may differ depending on the timing of goods or services received or other changes . the table above only includes payment obligations that are fixed or determinable . the table excludes royalties to third parties based on future sales of any of our product candidates that are approved for sale , as the amounts , timing , and likelihood of any such payments are based on the level of future sales of tests and are unknown . effects of inflation we do not believe that inflation has had a material impact on our business , revenues , or operating results during the periods presented . certain factors that may affect future results of operations the securities and exchange commission encourages companies to disclose forward-looking information so that investors can better understand a company 's future prospects and make informed investment decisions . this annual report on form 10-k contains such forward-looking statements within the meaning of the private securities litigation reform act of 1995. words such as may ,  anticipate ,  estimate ,  expects ,  projects ,  intends ,  plans ,  believes and words and terms of similar substance used in connection with any discussion of future operating or financial performance , identify forward-looking statements . all forward-looking statements are management 's present expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those described in the forward-looking statements . these risks include , but are not limited to : the risk that sales and profit margins of our existing molecular diagnostic tests and companion diagnostic services may decline or will not continue to increase at historical rates ; risks related to changes in the governmental or private insurers reimbursement levels for our tests ; the risk that we may be unable to develop or achieve commercial success for additional molecular diagnostic tests and companion

liquidity and capital resources cash , cash equivalents , and marketable investment securities increased $ 76.9 million , or 17 % , from $ 454.2 million at june 30 , 2012 to $ 531.1 million at june 30 , 2013. this increase in our balance was attributable to increased sales and $ 57.8 million in proceeds from issuance of common stock under share-based compensation plans ; partially offset by the repurchase of $ 146.3 million of our common stock under our share repurchase programs , payments of $ 80.3 million in estimated income tax obligations , and operating expenditures during fiscal 2013. net cash provided by operating activities was $ 173.9 million , $ 141.8 million and $ 130.8 million during the fiscal years ended june 30 , 2013 , 2012 and 2011 , respectively . during the year ended june 30 , 2013 , our net income was reduced by non-cash charges in the form of share-based compensation and depreciation and amortization , which totaled $ 26.6 million and $ 8.9 million , respectively . net cash provided by operating activities for year ended june 30 , 2013 was also impacted by changes in bad debt expense , trade accounts receivable , accounts payable , inventory , and accrued liabilities . our investing activities used cash of $ 75.6 million , $ 38.9 million and $ 54.4 million during the fiscal years ended june 30 , 2013 , 2012 and 2011 , respectively .


 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 cash , cash equivalents , and marketable investment securities increased $ 76.9 million , or 17 % , from $ 454.2 million at june 30 , 2012 to $ 531.1 million at june 30 , 2013. this increase in our balance was attributable to increased sales and $ 57.8 million in proceeds from issuance of common stock under share-based compensation plans ; partially offset by the repurchase of $ 146.3 million of our common stock under our share repurchase programs , payments of $ 80.3 million in estimated income tax obligations , and operating expenditures during fiscal 2013. net cash provided by operating activities was $ 173.9 million , $ 141.8 million and $ 130.8 million during the fiscal years ended june 30 , 2013 , 2012 and 2011 , respectively . during the year ended june 30 , 2013 , our net income was reduced by non-cash charges in the form of share-based compensation and depreciation and amortization , which totaled $ 26.6 million and $ 8.9 million , respectively . net cash provided by operating activities for year ended june 30 , 2013 was also impacted by changes in bad debt expense , trade accounts receivable , accounts payable , inventory , and accrued liabilities . our investing activities used cash of $ 75.6 million , $ 38.9 million and $ 54.4 million during the fiscal years ended june 30 , 2013 , 2012 and 2011 , respectively .
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 Suspicious Activity Report : during the year ended june 30 , 2013 , we reported net income of $ 147.1 million and diluted earnings per share of $ 1.77 that included income tax expense of $ 86.1 million . we incurred research and development expenses of $ 53.7 million , $ 42.6 million , and $ 27.8 million for the years ended june 30 , 2013 , 2012 and 2011 , respectively . our research and development expenses include costs incurred in maintaining and improving our nine current molecular diagnostic test offerings and costs incurred for the discovery , development and validation of our pipeline of molecular diagnostic and companion diagnostic test candidates . 45 our selling , general and administrative expenses include costs associated with building our molecular diagnostic and companion diagnostic businesses domestically and internationally . selling , general and administrative expenses consist primarily of salaries , commissions and related personnel costs for sales , marketing , customer service , billing and collection , executive , legal , finance and accounting , information technology , human resources , and allocated facilities expenses . we expect that our selling , general and administrative expenses will increase from quarter to quarter and that such increases may be substantial , depending on the number and scope of any new molecular diagnostic and companion diagnostic launches , our efforts in support of our existing molecular diagnostic tests and companion diagnostic services as well as our continued international expansion efforts . between may 2010 and january 2013 , we repurchased $ 500 million of our outstanding common stock . in february 2013 , our board of directors authorized us to repurchase an additional $ 200 million of our outstanding common stock . in connection with this latest stock repurchase authorization , we have been authorized to repurchase shares at management 's discretion based on market conditions and have repurchased $ 46.6 million of our outstanding common stock as of june 30 , 2013 under this authorization . see also part ii , item 5. market for registrant 's common equity , related stockholder matters and issuer repurchases of equity securitiesissuer purchases of equity securities. critical accounting policies critical accounting policies are those policies which are both important to the portrayal of a company 's financial condition and results and require management 's most difficult , subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . our critical accounting policies are as follows : revenue recognition ; allowance for doubtful accounts ; goodwill ; and income taxes revenue recognition . revenue includes the sale of molecular diagnostic tests and of our companion diagnostic services . revenue is recorded at the invoiced amount net of any discounts or allowances and is recognized when persuasive evidence of an agreement exists , delivery has occurred , the fee is fixed or determinable , and collection is reasonably assured . revenue is recognized upon completion of the test or service , communication of results , and when collectability is reasonably assured . allowance for doubtful accounts . the preparation of our financial statements in accordance with u.s. gaap requires us to make estimates and assumptions that affect the reported amount of assets at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . trade accounts receivable are comprised of amounts due from sales of our molecular diagnostic tests , which are recorded net of any discounts or contractual allowances . we analyze trade accounts receivable and consider historic experience , customer creditworthiness , facts and circumstances specific to outstanding balances , and payment terms when evaluating the adequacy of the allowance for doubtful accounts . we periodically evaluate and adjust the allowance for doubtful accounts through a charge or credit to expense when trends or significant events indicate that a change in estimate is appropriate . such changes in estimate could materially affect our results of operations or financial position ; however , to date these changes have not been material . it is possible that we may need to adjust our estimates in future periods . after a review of our allowance for doubtful accounts as of june 30 , 2013 and 2012 , we have determined that a hypothetical ten percent increase in our allowance for doubtful accounts would result in additional bad debt expense and an increase to our allowance for doubtful accounts of $ 750,000 and $ 460,000 , respectively . 46 goodwill . we test goodwill for impairment on an annual basis and in the interim by reporting unit if events and circumstances indicate that goodwill may be impaired . the events and circumstances that are considered include business climate and market conditions , legal factors , operating performance indicators and competition . impairment of goodwill is evaluated on a qualitative basis to determine if using a two-step process is necessary . if the qualitative assessment suggests that impairment is more likely than not , a two-step impairment analysis is performed . the first step involves comparison of the fair value of a reporting unit with its carrying amount . the valuation of a reporting unit requires judgment in estimating future cash flows , discount rates and other factors . in making these judgments , we evaluate the financial health of our business , including such factors as industry performance , market saturation and opportunity , changes in technology and operating cash flows . changes in our forecasts or decreases in the value of our common stock could cause book value of reporting units to exceed their fair values . if the carrying amount of a reporting unit exceeds its fair value , the second step of the process involves a comparison of the fair value and the carrying amount of the goodwill of that reporting unit . story_separator_special_tag 51 interest income for the fiscal year ended june 30 , 2012 was $ 4.6 million , compared to $ 2.2 million for the prior fiscal year . the increase was due primarily to interest income recorded from a $ 25 million note receivable with crescendo bioscience , inc. , or crescendo . income tax expense for the fiscal year ended june 30 , 2012 was $ 72.4 million , for an effective rate of approximately 39 % , compared to income tax expense of $ 58.9 million and an effective rate of approximately 37 % in the 2011 period . income tax expense for the year ended june 30 , 2012 was based on the application of an annual effective tax rate , adjusted by discrete items recognized during the period . our annual effective tax rate is a product of the u.s. federal statutory rate of 35 % , a blended state income tax rate of 3 % and a 1 % impact from our international operations . the effective rate was adjusted by alternative minimum income taxes and timing differences related to the recognition of the tax effect of equity compensation expense from incentive stock options and the deduction realized if those options were disqualified upon exercise . certain significant or unusual items are separately recognized during the period in which they occur and can be a source of variability in the effective tax rates from period to period . for the year ended june 30 , 2012 we realized $ 34.2 million of excess tax benefits from stock-based compensation as a reduction of taxes payable . excess tax benefits from stock-based compensation were credited directly to additional paid-in-capital and were not included in income tax expense . accordingly , they did not impact our effective income tax rate . due to the realization of these excess tax benefits that offset our taxes payable , our current income tax expense in fiscal 2012 was significantly higher than our actual cash paid . ( see note 8 in the fiscal 2012 notes to consolidated financial statements . ) net income for the fiscal year ended june 30 , 2012 was $ 112.2 million compared to $ 100.7 million in the prior fiscal year . this 11 % increase was primarily due to an increase in revenues partially offset by higher research and development expenses . earnings per diluted share was $ 1.30 for the fiscal year ended june 30 , 2012 as compared to $ 1.10 for the prior fiscal year , an increase of 18 % . this increase was due to a larger net income and a reduced number of weighted shares outstanding during the 2012 fiscal year due to the our share repurchase program . story_separator_special_tag style= `` font-size:6px ; margin-top:0px ; margin-bottom:0px `` > the costs , timing , outcome , and enforcement of any regulatory review of our existing or future molecular diagnostic tests and companion diagnostic services ; the costs of preparing , filing and prosecuting patent applications , maintaining and enforcing our issued patents and pursuing or defending intellectual property-related claims ; the costs , timing and outcome of any litigation against us or that we pursue ; the introduction of technological innovations or new commercial tests by our competitors ; changes in intellectual property laws covering our molecular diagnostic tests and companion diagnostic services and patents or enforcement in the united states and foreign countries , such as the supreme court decision in the lawsuit brought against us by the association for molecular pathology et al ; changes in the governmental or private insurers reimbursement levels for our tests ; and changes in structure of the healthcare system or healthcare payment systems . off-balance sheet arrangements none . 53 contractual obligations the following table represents our consolidated contractual obligations as of june 30 , 2013 ( in thousands ) : replace_table_token_12_th the expected timing of payment for the obligations listed above is estimated based on current information . actual payment timing and amounts may differ depending on the timing of goods or services received or other changes . the table above only includes payment obligations that are fixed or determinable . the table excludes royalties to third parties based on future sales of any of our product candidates that are approved for sale , as the amounts , timing , and likelihood of any such payments are based on the level of future sales of tests and are unknown . effects of inflation we do not believe that inflation has had a material impact on our business , revenues , or operating results during the periods presented . certain factors that may affect future results of operations the securities and exchange commission encourages companies to disclose forward-looking information so that investors can better understand a company 's future prospects and make informed investment decisions . this annual report on form 10-k contains such forward-looking statements within the meaning of the private securities litigation reform act of 1995. words such as may ,  anticipate ,  estimate ,  expects ,  projects ,  intends ,  plans ,  believes and words and terms of similar substance used in connection with any discussion of future operating or financial performance , identify forward-looking statements . all forward-looking statements are management 's present expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those described in the forward-looking statements . these risks include , but are not limited to : the risk that sales and profit margins of our existing molecular diagnostic tests and companion diagnostic services may decline or will not continue to increase at historical rates ; risks related to changes in the governmental or private insurers reimbursement levels for our tests ; the risk that we may be unable to develop or achieve commercial success for additional molecular diagnostic tests and companion

