” 20 pdi , inc. annual report on form 10-k ( continued ) critical accounting policies we prepare our financial statements in accordance with u.s. generally accepted accounting principles ( gaap ) . the preparation of financial statements and related disclosures in conformity with gaap requires management to make judgments , estimates and assumptions at a specific point in time that affect the amounts reported in the consolidated financial statements and disclosed in the accompanying notes . these assumptions and estimates are inherently uncertain . outlined below are accounting policies , which are important to our financial position and results of operations , and require the most significant judgments on the part of our management in their application . some of those judgments can be subjective and complex . management 's estimates are based on historical experience , information from third-party professionals , facts and circumstances available at the time and various other assumptions that are believed to be reasonable . actual results could differ from those estimates . additionally , changes in estimates could have a material impact on our consolidated results of operations in any one period . for a summary of all of our significant accounting policies , including the accounting policies discussed below , see note 1 , nature of business and significant account policies , to our consolidated financial statements . revenue and cost of services we recognize revenue from services rendered when the following four revenue recognition criteria are met : persuasive evidence of an arrangement exists ; services have been rendered ; the selling price is fixed or determinable ; and collectability is reasonably assured . many of the product detailing contracts allow for additional periodic incentive fees to be earned if certain performance benchmarks have been attained . revenue under pharmaceutical detailing contracts is generally based on the number of physician details made or the number of sales representatives utilized . with respect to risk-based contracts , all or a portion of revenues earned are based on contractually defined percentages of either product revenues or the market value of prescriptions written and filled in a given period . these contracts are generally for terms of one to two years and may be renewed or extended . the majority of these contracts , however , are terminable by the customer for any reason upon 30 to 90 days ' notice . certain contracts provide for termination payments if the customer terminates the agreement without cause . typically , however , these penalties do not offset the revenue we could have earned under the contract or the costs we may incur as a result of its termination . revenue earned from incentive fees is recognized in the period earned and when we are reasonably assured that payment will be made . under performance based contracts , revenue is recognized when the performance criteria has been achieved . many contracts also stipulate penalties if agreed upon performance benchmarks have not been met . revenue is recognized net of any potential penalties until the performance criteria relating to the penalties have been achieved . commission based revenue is recognized when performance is completed . revenue from recruiting and hiring contracts is recognized at the time the candidate begins full-time employment less a provision for sales allowances based on contractual commitments and historical experience . the loss or termination of a large pharmaceutical detailing contract or the loss of multiple contracts could have a material adverse effect on our business , financial condition or results of operations . historically , we have derived a significant portion of service revenue from a limited number of customers . concentration of business in the pharmaceutical services industry is common and the industry continues to consolidate . as a result , we are likely to continue to experience significant customer concentration in future periods . for the year ended december 31 , 2009 our two largest customers , who each individually represented 10 % or more of our service revenue , together accounted for approximately 58.5 % of our service revenue . for the years ended december 31 , 2008 and 2007 , our three largest customers , who each individually represented 10 % or more of our service revenue , together accounted for approximately 52.5 % and 37.9 % of our service revenue , respectively . see note 14 , significant customers , to our consolidated financial statements for additional information . revenue under marketing service contracts are generally based on a series of deliverable services associated with the design and execution of interactive promotional programs or marketing research/advisory programs . the contracts are generally terminable by the customer for any reason . upon termination , the customer is generally responsible for payment for all work completed to date , plus the cost of any nonrefundable commitments made on behalf of the customer . there is significant customer concentration in our pharmakon business , and the loss or termination of one or more of pharmakon 's large master service agreements could have a material adverse effect on our business and results of operations . due to the typical size of most tvg contracts , it is unlikely the loss or termination of any individual tvg contract would have a material adverse effect on our business , financial condition or results of operations . revenue from certain promotional contracts that include more than one service offering is accounted for as multiple-element arrangements . for these contracts , the deliverable elements are divided into separate units of accounting provided the following criteria are met : the price is fixed and determinable ; the delivered elements have stand-alone value to the customer ; there is objective and reliable evidence of the fair value of the undelivered elements ; and there is no right of return or refund . the contract revenue is then allocated to the separate units of accounting based on their relative fair values . story_separator_special_tag sales services ' revenue from new contracts and expansions of existing contracts was more than offset by lost revenue from the internalization of our contract sales force by one of our long-term customers and the expiration or termination of certain sales force arrangements in effect during 2008. marketing services ' revenue for the year ended december 31 , 2009 decreased by approximately $ 7.1 million , or 29.8 % , as compared to the year ended december 31 , 2008. this was primarily attributable to a decrease in revenue within our tvg business unit of $ 2.8 million due to fewer projects in 2009 , and a decrease in our pharmakon business unit of $ 2.0 million due to a reduction in the number of projects performed for its two largest customers due to delays in the implementation or reduced scope of a number of marketing initiatives in the first six months of 2009. the segment was also affected by a decrease in revenue of approximately $ 2.3 million in our vital issues in medicine business unit which closed in 2009 . 26 pdi , inc. annual report on form 10-k ( continued ) pc services had no revenue for the year ended december 31 , 2009 and had negative revenue of $ 1.0 million for the year ended december 31 , 2008 due to a non-refundable upfront payment made to novartis as per the terms of our former promotion agreement . cost of services cost of services for the year ended december 31 , 2009 was $ 58.6 million , or 45.8 % less than the cost of services of $ 108.0 million for the year ended december 31 , 2008. sales services ' cost of services decreased for the year ended december 31 , 2009 versus the comparable prior year period primarily due to a reduction in the average sales representative headcount and related costs correlating to an overall reduction in the number and size of our sales force engagements . marketing services ' cost of services decreased $ 5.4 million for the year ended december 31 , 2009 versus the comparable prior year period due to the decline in revenue attributable to the overall continued softness in the market for these types of services . pc services ' cost of services was a credit of $ 2.5 million for the year ended december 31 , 2009 due to the reversal of the excess amount of our 2008 contract loss accrual . pc services had cost of services of $ 22.6 million for the year ended december 31 , 2008 , including $ 10.3 million that was recorded in the fourth quarter of 2008 related to the accrued contract loss . see note 11 , product commercialization contract , to our consolidated financial statements for additional details . gross profit the overall increase in gross profit percentage from 4.0 % for the year ended december 31 , 2008 to 31.0 % for the year ended december 31 , 2009 was primarily the result of the impact of our product commercialization contract with novartis . the year ended december 31 , 2009 benefited from the reversal of the excess contract loss accrual of approximately $ 2.5 million associated with the settlement of our promotional agreement within pc services . the year ended december 31 , 2008 had negative gross profit of approximately $ 23.6 million associated with the promotion agreement , including $ 10.3 million related to the contract loss accrual mentioned above . sales services ' gross profit percentages were 21.4 % and 20.5 % for the years ended december 31 , 2009 and 2008 , respectively . the 2009 increase in gross profit was attributable to an increase in gross profit percentage within the shared sales teams business unit due to : lower fuel and mileage reimbursement costs ; lower insurance costs ; and certain operating efficiencies within our shared sales teams . gross profit percentage for the marketing services increased to 48.0 % for the year ended december 31 , 2009 from 40.8 % for the year ended december 31 , 2008. this increase was driven by improved margins at pharmakon and tvg , both of which had increases of approximately five percentage points , as well as closing our lower-margin vital issues in medicine business unit during the quarter ended september 30 , 2009. the pharmakon margin improvement was driven primarily by a change in its product mix on a year-over-year basis . note : compensation expense and other selling , general and administrative ( other sg & a ) expense amounts for each segment include allocated corporate overhead . replace_table_token_4_th the decrease in compensation expense for the year ended december 31 , 2009 was primarily the result of 2008 costs of approximately $ 0.5 million related to replacing our former chief executive officer not recurring in 2009. as a percentage of revenue , compensation expense for the year ended december 31 , 2009 increased to 26.3 % as compared to 20.3 % for the year ended december 31 , 2008. this percentage increase was primarily due to the decrease in revenue in 2009. the increase in sales services was primarily attributable to greater recruiting and hiring costs during the year ended december 31 , 2009. marketing services ' compensation expense was comparable in both periods . compensation expense for the year ended december 31 , 2009 in marketing services included approximately $ 0.8 million in severance costs which were essentially offset by our savings from headcount reductions . pc services ' compensation expense decreased for the year ended december 31 , 2009 as compared to the prior year period as a result of the april 2009 termination of our promotion agreement within pc services . 27 pdi , inc. annual report on form 10-k ( continued ) replace_table_token_5_th total other selling , general and administrative expenses increased by approximately $ 0.7 million , or 4.2 % , for the year ended december 31 ,

liquidity and capital resources as of december 31 , 2009 , we had cash and cash equivalents and short-term investments of approximately $ 72.6 million and working capital of $ 71.6 million , compared to cash and cash equivalents and short-term investments of approximately $ 90.2 million and working capital of approximately $ 81.6 million at december 31 , 2008. as of december 31 , 2009 and 2008 , we had no outstanding commercial debt . during the years ended december 31 , 2009 and 2008 , net cash used in operating activities was $ 16.0 million and $ 16.0 million , respectively . the main components of cash used in operating activities during the year ended december 31 , 2009 was a net loss of $ 33.6 million , a reduction in the accrued contract loss of $ 10.0 million and a $ 3.3 million increase in income tax receivable . this was partially offset by a reduction in accounts receivable of $ 3.9 million and non-cash items of $ 23.6 million . the net non-cash items consist primarily of asset impairment charges of $ 18.1 million , depreciation and amortization of $ 2.8 million , non-cash facility realignment charges of $ 2.6 million and stock-based compensation of $ 1.4 million . as of december 31 , 2009 , we had $ 3.5 million of unbilled costs and accrued profits on contracts in progress . when services are performed in advance of billing , the value of such services is recorded as unbilled costs and accrued profits on contracts in progress . normally all unbilled costs and accrued profits on contracts in progress are earned and billed within a few months of the period they are originally recognized . as of december 31 , 2009 , we had approximately $ 6.8 million of unearned contract revenue . unearned contract revenue represents amounts billed to customers for services that have not been performed . these amounts are recorded as revenue in the periods when earned .


 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 , 2009 , we had cash and cash equivalents and short-term investments of approximately $ 72.6 million and working capital of $ 71.6 million , compared to cash and cash equivalents and short-term investments of approximately $ 90.2 million and working capital of approximately $ 81.6 million at december 31 , 2008. as of december 31 , 2009 and 2008 , we had no outstanding commercial debt . during the years ended december 31 , 2009 and 2008 , net cash used in operating activities was $ 16.0 million and $ 16.0 million , respectively . the main components of cash used in operating activities during the year ended december 31 , 2009 was a net loss of $ 33.6 million , a reduction in the accrued contract loss of $ 10.0 million and a $ 3.3 million increase in income tax receivable . this was partially offset by a reduction in accounts receivable of $ 3.9 million and non-cash items of $ 23.6 million . the net non-cash items consist primarily of asset impairment charges of $ 18.1 million , depreciation and amortization of $ 2.8 million , non-cash facility realignment charges of $ 2.6 million and stock-based compensation of $ 1.4 million . as of december 31 , 2009 , we had $ 3.5 million of unbilled costs and accrued profits on contracts in progress . when services are performed in advance of billing , the value of such services is recorded as unbilled costs and accrued profits on contracts in progress . normally all unbilled costs and accrued profits on contracts in progress are earned and billed within a few months of the period they are originally recognized . as of december 31 , 2009 , we had approximately $ 6.8 million of unearned contract revenue . unearned contract revenue represents amounts billed to customers for services that have not been performed . these amounts are recorded as revenue in the periods when earned .
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 Suspicious Activity Report : ” 20 pdi , inc. annual report on form 10-k ( continued ) critical accounting policies we prepare our financial statements in accordance with u.s. generally accepted accounting principles ( gaap ) . the preparation of financial statements and related disclosures in conformity with gaap requires management to make judgments , estimates and assumptions at a specific point in time that affect the amounts reported in the consolidated financial statements and disclosed in the accompanying notes . these assumptions and estimates are inherently uncertain . outlined below are accounting policies , which are important to our financial position and results of operations , and require the most significant judgments on the part of our management in their application . some of those judgments can be subjective and complex . management 's estimates are based on historical experience , information from third-party professionals , facts and circumstances available at the time and various other assumptions that are believed to be reasonable . actual results could differ from those estimates . additionally , changes in estimates could have a material impact on our consolidated results of operations in any one period . for a summary of all of our significant accounting policies , including the accounting policies discussed below , see note 1 , nature of business and significant account policies , to our consolidated financial statements . revenue and cost of services we recognize revenue from services rendered when the following four revenue recognition criteria are met : persuasive evidence of an arrangement exists ; services have been rendered ; the selling price is fixed or determinable ; and collectability is reasonably assured . many of the product detailing contracts allow for additional periodic incentive fees to be earned if certain performance benchmarks have been attained . revenue under pharmaceutical detailing contracts is generally based on the number of physician details made or the number of sales representatives utilized . with respect to risk-based contracts , all or a portion of revenues earned are based on contractually defined percentages of either product revenues or the market value of prescriptions written and filled in a given period . these contracts are generally for terms of one to two years and may be renewed or extended . the majority of these contracts , however , are terminable by the customer for any reason upon 30 to 90 days ' notice . certain contracts provide for termination payments if the customer terminates the agreement without cause . typically , however , these penalties do not offset the revenue we could have earned under the contract or the costs we may incur as a result of its termination . revenue earned from incentive fees is recognized in the period earned and when we are reasonably assured that payment will be made . under performance based contracts , revenue is recognized when the performance criteria has been achieved . many contracts also stipulate penalties if agreed upon performance benchmarks have not been met . revenue is recognized net of any potential penalties until the performance criteria relating to the penalties have been achieved . commission based revenue is recognized when performance is completed . revenue from recruiting and hiring contracts is recognized at the time the candidate begins full-time employment less a provision for sales allowances based on contractual commitments and historical experience . the loss or termination of a large pharmaceutical detailing contract or the loss of multiple contracts could have a material adverse effect on our business , financial condition or results of operations . historically , we have derived a significant portion of service revenue from a limited number of customers . concentration of business in the pharmaceutical services industry is common and the industry continues to consolidate . as a result , we are likely to continue to experience significant customer concentration in future periods . for the year ended december 31 , 2009 our two largest customers , who each individually represented 10 % or more of our service revenue , together accounted for approximately 58.5 % of our service revenue . for the years ended december 31 , 2008 and 2007 , our three largest customers , who each individually represented 10 % or more of our service revenue , together accounted for approximately 52.5 % and 37.9 % of our service revenue , respectively . see note 14 , significant customers , to our consolidated financial statements for additional information . revenue under marketing service contracts are generally based on a series of deliverable services associated with the design and execution of interactive promotional programs or marketing research/advisory programs . the contracts are generally terminable by the customer for any reason . upon termination , the customer is generally responsible for payment for all work completed to date , plus the cost of any nonrefundable commitments made on behalf of the customer . there is significant customer concentration in our pharmakon business , and the loss or termination of one or more of pharmakon 's large master service agreements could have a material adverse effect on our business and results of operations . due to the typical size of most tvg contracts , it is unlikely the loss or termination of any individual tvg contract would have a material adverse effect on our business , financial condition or results of operations . revenue from certain promotional contracts that include more than one service offering is accounted for as multiple-element arrangements . for these contracts , the deliverable elements are divided into separate units of accounting provided the following criteria are met : the price is fixed and determinable ; the delivered elements have stand-alone value to the customer ; there is objective and reliable evidence of the fair value of the undelivered elements ; and there is no right of return or refund . the contract revenue is then allocated to the separate units of accounting based on their relative fair values . story_separator_special_tag sales services ' revenue from new contracts and expansions of existing contracts was more than offset by lost revenue from the internalization of our contract sales force by one of our long-term customers and the expiration or termination of certain sales force arrangements in effect during 2008. marketing services ' revenue for the year ended december 31 , 2009 decreased by approximately $ 7.1 million , or 29.8 % , as compared to the year ended december 31 , 2008. this was primarily attributable to a decrease in revenue within our tvg business unit of $ 2.8 million due to fewer projects in 2009 , and a decrease in our pharmakon business unit of $ 2.0 million due to a reduction in the number of projects performed for its two largest customers due to delays in the implementation or reduced scope of a number of marketing initiatives in the first six months of 2009. the segment was also affected by a decrease in revenue of approximately $ 2.3 million in our vital issues in medicine business unit which closed in 2009 . 26 pdi , inc. annual report on form 10-k ( continued ) pc services had no revenue for the year ended december 31 , 2009 and had negative revenue of $ 1.0 million for the year ended december 31 , 2008 due to a non-refundable upfront payment made to novartis as per the terms of our former promotion agreement . cost of services cost of services for the year ended december 31 , 2009 was $ 58.6 million , or 45.8 % less than the cost of services of $ 108.0 million for the year ended december 31 , 2008. sales services ' cost of services decreased for the year ended december 31 , 2009 versus the comparable prior year period primarily due to a reduction in the average sales representative headcount and related costs correlating to an overall reduction in the number and size of our sales force engagements . marketing services ' cost of services decreased $ 5.4 million for the year ended december 31 , 2009 versus the comparable prior year period due to the decline in revenue attributable to the overall continued softness in the market for these types of services . pc services ' cost of services was a credit of $ 2.5 million for the year ended december 31 , 2009 due to the reversal of the excess amount of our 2008 contract loss accrual . pc services had cost of services of $ 22.6 million for the year ended december 31 , 2008 , including $ 10.3 million that was recorded in the fourth quarter of 2008 related to the accrued contract loss . see note 11 , product commercialization contract , to our consolidated financial statements for additional details . gross profit the overall increase in gross profit percentage from 4.0 % for the year ended december 31 , 2008 to 31.0 % for the year ended december 31 , 2009 was primarily the result of the impact of our product commercialization contract with novartis . the year ended december 31 , 2009 benefited from the reversal of the excess contract loss accrual of approximately $ 2.5 million associated with the settlement of our promotional agreement within pc services . the year ended december 31 , 2008 had negative gross profit of approximately $ 23.6 million associated with the promotion agreement , including $ 10.3 million related to the contract loss accrual mentioned above . sales services ' gross profit percentages were 21.4 % and 20.5 % for the years ended december 31 , 2009 and 2008 , respectively . the 2009 increase in gross profit was attributable to an increase in gross profit percentage within the shared sales teams business unit due to : lower fuel and mileage reimbursement costs ; lower insurance costs ; and certain operating efficiencies within our shared sales teams . gross profit percentage for the marketing services increased to 48.0 % for the year ended december 31 , 2009 from 40.8 % for the year ended december 31 , 2008. this increase was driven by improved margins at pharmakon and tvg , both of which had increases of approximately five percentage points , as well as closing our lower-margin vital issues in medicine business unit during the quarter ended september 30 , 2009. the pharmakon margin improvement was driven primarily by a change in its product mix on a year-over-year basis . note : compensation expense and other selling , general and administrative ( other sg & a ) expense amounts for each segment include allocated corporate overhead . replace_table_token_4_th the decrease in compensation expense for the year ended december 31 , 2009 was primarily the result of 2008 costs of approximately $ 0.5 million related to replacing our former chief executive officer not recurring in 2009. as a percentage of revenue , compensation expense for the year ended december 31 , 2009 increased to 26.3 % as compared to 20.3 % for the year ended december 31 , 2008. this percentage increase was primarily due to the decrease in revenue in 2009. the increase in sales services was primarily attributable to greater recruiting and hiring costs during the year ended december 31 , 2009. marketing services ' compensation expense was comparable in both periods . compensation expense for the year ended december 31 , 2009 in marketing services included approximately $ 0.8 million in severance costs which were essentially offset by our savings from headcount reductions . pc services ' compensation expense decreased for the year ended december 31 , 2009 as compared to the prior year period as a result of the april 2009 termination of our promotion agreement within pc services . 27 pdi , inc. annual report on form 10-k ( continued ) replace_table_token_5_th total other selling , general and administrative expenses increased by approximately $ 0.7 million , or 4.2 % , for the year ended december 31 ,

