all references to years in this md & a represent fiscal years unless otherwise noted . management overview our revenues are primarily derived by selling , implementing and supporting software solutions , clinical content , hardware , devices and services that give health care providers secure access to clinical , administrative and financial data in real time , allowing them to improve quality , safety and efficiency in the delivery of health care . our fundamental strategy centers on creating organic growth by investing in research and development ( r & d ) to create solutions and services for the health care industry . this strategy has driven strong growth over the long-term , as reflected in five- and ten-year compound annual revenue growth rates of 12 % or more . this growth has also created an important strategic footprint in health care , with cerner ® solutions licensed by approximately 10,000 facilities around the world , including more than 2,700 hospitals ; 4,150 physician practices ; 45,000 physicians ; 550 ambulatory facilities , such as laboratories , ambulatory centers , behavioral health centers , cardiac facilities , radiology clinics and surgery centers ; 800 home health facilities ; 45 employer sites and 1,750 retail pharmacies . selling additional solutions back into this client base is an important element of our future revenue growth . we are also focused on driving growth through market share expansion by strategically aligning with health care providers that have not yet selected a supplier and by displacing competitors in health care settings that are looking to replace their current supplier . we expect to drive growth through new initiatives and services that reflect our ongoing ability to innovate and expand our reach into health care . examples of these include our careaware ® health care device architecture and devices , employer services , cerner itworks services , cerner revworks services , and solutions on our healthe intent platform . finally , we believe there is significant opportunity for growth outside of the united states , with many non-u.s. markets focused on hcit as part of their strategy to improve the quality and lower the cost of health care . beyond our strategy for driving revenue growth , we are also focused on earnings growth . similar to our history of growing revenue , our net earnings have increased at compound annual rates of more than 20 % over the most recent five- and ten-year periods . we expect to drive continued earnings growth through ongoing revenue growth coupled with margin expansion , which we expect to achieve through efficiencies in our implementation and operational processes and by leveraging r & d investments and controlling general and administrative expenses . we are also focused on continuing to deliver strong levels of cash flow , which we expect to do by continuing to grow earnings and prudently managing capital expenditures . results overview the company delivered strong levels of bookings , revenues , earnings and cash flows in 2012 . new business bookings revenue in 2012 , which reflects the value of executed contracts for software , hardware , professional services and managed services , was $ 3.1 billion , which is an increase of 15 % compared to $ 2.7 billion in 2011 . our 2012 revenues increased 21 % to $ 2.7 billion compared to $ 2.2 billion in 2011 . the year-over-year increase in revenue reflects improved economic conditions , ongoing demand related to the hitech act , and increased contributions form new initiatives , such as device resale , cerner itworks and cerner revworks . our 2012 net earnings increased 30 % to $ 397.2 million compared to $ 306.6 million in 2011 . diluted earnings per share increased 28 % to $ 2.26 compared to $ 1.76 in 2011 . the 2012 and 2011 net earnings and diluted earnings per share reflect the impact of stock-based compensation expense . the effect of these expenses reduced the 2012 net earnings and diluted earnings per share by $ 23.5 million and $ 0.13 , and the 2011 earnings and diluted earnings per share by $ 18.2 million and $ 0.11 , respectively . the growth in net earnings and diluted earnings per share was driven primarily by strong revenue growth and continued progress with our margin expansion initiatives , including efficiencies in our implementation and operational 22 processes , leveraging r & d investments and controlling general and administrative expenses . our full-year 2012 operating margin of 21.4 % reflects an increase of 50 basis points compared to 2011 , which was driven by strong margin expansion in our core business that was somewhat offset by record levels of lower-margin technology resale . we had cash collections of receivables of $ 2.7 billion in 2012 compared to $ 2.2 billion in 2011 . days sales outstanding was 74 days for the 2012 fourth quarter compared to 73 days for the 2012 third quarter and 83 days for the 2011 fourth quarter . operating cash flows for 2012 were strong at $ 708.3 million compared to $ 546.3 million in 2011 . health care information technology market outlook we have provided a detailed assessment of the health care information technology market under “ health care and health care it industry ” in part i , item 1 `` business . `` results of operations fiscal year 2012 compared to fiscal year 2011 replace_table_token_4_th revenues & backlog revenues increased 21 % to $ 2.7 billion in 2012 , as compared to $ 2.2 billion in 2011 . story_separator_special_tag critical accounting policies we believe that there are several accounting policies that are critical to understanding our historical and future performance , as these policies affect the reported amount of revenue and other significant areas involving our judgments and estimates . these significant accounting policies relate to revenue recognition , software development , potential impairments of goodwill , and income taxes . these policies and our procedures related to these policies are described in detail below and under specific areas within this md & a . in addition , note ( 1 ) to the consolidated financial statements expands upon discussion of our accounting policies . revenue recognition we recognize revenue within our multiple element arrangements , including software and software-related services , using the residual method . key factors in our revenue recognition model are our assessments that installation services are essential to the functionality of our software , whereas implementation services are not , and the length of time it takes for us to achieve the delivery and installation milestones for our licensed software . if our business model were to change such that implementation services are deemed to be essential to the functionality of our software , the period of time over which our licensed software revenue would be recognized would lengthen . we generally recognize revenue from the sale of our licensed software over two key milestones , delivery and installation , based on percentages that reflect the underlying effort from planning to installation . generally , both milestones are achieved in the quarter the contracts are executed . if the period of time to achieve our delivery and installation milestones for our licensed software were to lengthen , our milestones would be adjusted and the timing of revenue recognition for our licensed software could materially change . 32 we also recognize revenue for certain projects using the percentage of completion method . our revenue recognition is dependent upon our ability to reliably estimate the direct labor hours to complete a project which generally can span several years . we utilize our historical project experience and detailed planning process as a basis for our future estimates to complete current projects . significant delays in completion of the projects , unforeseen cost increases or penalties could result in significant reductions to revenue and margins on these contracts . the actual project results can be significantly different from the estimated results . when adjustments are identified near or at the end of a project , the full impact of the change in estimate is recognized in that period . this can result in a material impact on our results for a single reporting period . software development costs costs incurred internally in creating computer software solutions and enhancements to those solutions are expensed until completion of a detailed program design , which is when we determine that technological feasibility has been established . thereafter , all software development costs are capitalized until such time as the software solutions and enhancements are available for general release , and the capitalized costs subsequently are reported at the lower of amortized cost or net realizable value . net realizable value is computed as the estimated gross future revenues from each software solution less the amount of estimated future costs of completing and disposing of that product . because the development of projected net future revenues related to our software solutions used in our net realizable value computation is based on estimates , a significant reduction in our future revenues could impact the recovery of our capitalized software development costs . we historically have not experienced significant inaccuracies in computing the net realizable value of our software solutions and the difference between the net realizable value and the unamortized cost has grown over the past three years . we expect this trend to continue in the future . if we missed our estimates of net future revenues by 10 % , the amount of our capitalized software development costs would not be impaired . capitalized costs are amortized based on current and expected net future revenue for each software solution with minimum annual amortization equal to the straight-line amortization over the estimated economic life of the software solution . we are amortizing capitalized costs over five years . the five-year period over which capitalized software development costs are amortized is an estimate based upon our forecast of a reasonable useful life for the capitalized costs . historically , use of our software programs by our clients has exceeded five years and is capable of being used a decade or more . we expect that major software information systems companies , large information technology consulting service providers and systems integrators and others specializing in the health care industry may offer competitive products or services . the pace of change in the hcit market is rapid and there are frequent new product introductions , product enhancements and evolving industry standards and requirements . as a result , the capitalized software solutions may become less valuable or obsolete and could be subject to impairment . goodwill goodwill is not amortized but is evaluated for impairment annually or whenever there is an impairment indicator . all goodwill is assigned to a reporting unit , where it is subject to an annual impairment assessment . we assess goodwill for impairment in the second quarter of each fiscal year and evaluate impairment indicators at each quarter end . we assessed our goodwill for impairment in the second quarters of 2012 and 2011 and concluded that goodwill was not impaired . the 2012 assessment consisted of a qualitative analysis in accordance with new guidance effective in 2012. the 2011 assessment consisted of a quantitative analysis , in which the fair values of each of our reporting units exceeded their carrying amounts by a significant margin . we used a discounted cash flow analysis utilizing level 3 inputs , to determine the fair value of the reporting units in 2011.

liquidity and capital resources our liquidity is influenced by many factors , including the amount and timing of our revenues , our cash collections from our clients and the amount we invest in software development , acquisitions and capital expenditures . our principal sources of liquidity are our cash , cash equivalents , which consist of money market funds and time deposits 29 with original maturities of less than 90 days , and short-term investments . at the end of 2012 , we had cash and cash equivalents of $ 317.1 million and short-term investments of $ 719.7 million , as compared to cash and cash equivalents of $ 243.1 million and short-term investments of $ 531.6 million at the end of 2011 . approximately 15 % of our aggregate cash , cash equivalents and short-term investments at december 29 , 2012 , were held outside of the united states . as part of our business strategy , we plan to indefinitely reinvest the earnings of our foreign operations ; however , should the earnings of our foreign operations be repatriated , we would accrue and pay tax on such earnings , which may be material . additionally , we maintain a $ 100.0 million multi-year revolving credit facility , which expires in february 2017. the facility provides an unsecured revolving line of credit for working capital purposes , along with a letter of credit facility . interest is payable at a rate based on prime , libor , or the u.s. federal funds rate , plus a spread that varies depending on the leverage ratios maintained . the agreement provides certain restrictions on our ability to borrow , incur liens , sell assets and pay dividends and contains certain cash flow and liquidity covenants . as of the end of 2012 , we were in compliance with all debt covenants . as of the end of 2012 , we had no outstanding borrowings under this agreement ; however , we had $ 14.3 million of outstanding letters of credit , which reduced our available borrowing capacity to $ 85.7 million .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources our liquidity is influenced by many factors , including the amount and timing of our revenues , our cash collections from our clients and the amount we invest in software development , acquisitions and capital expenditures . our principal sources of liquidity are our cash , cash equivalents , which consist of money market funds and time deposits 29 with original maturities of less than 90 days , and short-term investments . at the end of 2012 , we had cash and cash equivalents of $ 317.1 million and short-term investments of $ 719.7 million , as compared to cash and cash equivalents of $ 243.1 million and short-term investments of $ 531.6 million at the end of 2011 . approximately 15 % of our aggregate cash , cash equivalents and short-term investments at december 29 , 2012 , were held outside of the united states . as part of our business strategy , we plan to indefinitely reinvest the earnings of our foreign operations ; however , should the earnings of our foreign operations be repatriated , we would accrue and pay tax on such earnings , which may be material . additionally , we maintain a $ 100.0 million multi-year revolving credit facility , which expires in february 2017. the facility provides an unsecured revolving line of credit for working capital purposes , along with a letter of credit facility . interest is payable at a rate based on prime , libor , or the u.s. federal funds rate , plus a spread that varies depending on the leverage ratios maintained . the agreement provides certain restrictions on our ability to borrow , incur liens , sell assets and pay dividends and contains certain cash flow and liquidity covenants . as of the end of 2012 , we were in compliance with all debt covenants . as of the end of 2012 , we had no outstanding borrowings under this agreement ; however , we had $ 14.3 million of outstanding letters of credit , which reduced our available borrowing capacity to $ 85.7 million .
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 Suspicious Activity Report : all references to years in this md & a represent fiscal years unless otherwise noted . management overview our revenues are primarily derived by selling , implementing and supporting software solutions , clinical content , hardware , devices and services that give health care providers secure access to clinical , administrative and financial data in real time , allowing them to improve quality , safety and efficiency in the delivery of health care . our fundamental strategy centers on creating organic growth by investing in research and development ( r & d ) to create solutions and services for the health care industry . this strategy has driven strong growth over the long-term , as reflected in five- and ten-year compound annual revenue growth rates of 12 % or more . this growth has also created an important strategic footprint in health care , with cerner ® solutions licensed by approximately 10,000 facilities around the world , including more than 2,700 hospitals ; 4,150 physician practices ; 45,000 physicians ; 550 ambulatory facilities , such as laboratories , ambulatory centers , behavioral health centers , cardiac facilities , radiology clinics and surgery centers ; 800 home health facilities ; 45 employer sites and 1,750 retail pharmacies . selling additional solutions back into this client base is an important element of our future revenue growth . we are also focused on driving growth through market share expansion by strategically aligning with health care providers that have not yet selected a supplier and by displacing competitors in health care settings that are looking to replace their current supplier . we expect to drive growth through new initiatives and services that reflect our ongoing ability to innovate and expand our reach into health care . examples of these include our careaware ® health care device architecture and devices , employer services , cerner itworks services , cerner revworks services , and solutions on our healthe intent platform . finally , we believe there is significant opportunity for growth outside of the united states , with many non-u.s. markets focused on hcit as part of their strategy to improve the quality and lower the cost of health care . beyond our strategy for driving revenue growth , we are also focused on earnings growth . similar to our history of growing revenue , our net earnings have increased at compound annual rates of more than 20 % over the most recent five- and ten-year periods . we expect to drive continued earnings growth through ongoing revenue growth coupled with margin expansion , which we expect to achieve through efficiencies in our implementation and operational processes and by leveraging r & d investments and controlling general and administrative expenses . we are also focused on continuing to deliver strong levels of cash flow , which we expect to do by continuing to grow earnings and prudently managing capital expenditures . results overview the company delivered strong levels of bookings , revenues , earnings and cash flows in 2012 . new business bookings revenue in 2012 , which reflects the value of executed contracts for software , hardware , professional services and managed services , was $ 3.1 billion , which is an increase of 15 % compared to $ 2.7 billion in 2011 . our 2012 revenues increased 21 % to $ 2.7 billion compared to $ 2.2 billion in 2011 . the year-over-year increase in revenue reflects improved economic conditions , ongoing demand related to the hitech act , and increased contributions form new initiatives , such as device resale , cerner itworks and cerner revworks . our 2012 net earnings increased 30 % to $ 397.2 million compared to $ 306.6 million in 2011 . diluted earnings per share increased 28 % to $ 2.26 compared to $ 1.76 in 2011 . the 2012 and 2011 net earnings and diluted earnings per share reflect the impact of stock-based compensation expense . the effect of these expenses reduced the 2012 net earnings and diluted earnings per share by $ 23.5 million and $ 0.13 , and the 2011 earnings and diluted earnings per share by $ 18.2 million and $ 0.11 , respectively . the growth in net earnings and diluted earnings per share was driven primarily by strong revenue growth and continued progress with our margin expansion initiatives , including efficiencies in our implementation and operational 22 processes , leveraging r & d investments and controlling general and administrative expenses . our full-year 2012 operating margin of 21.4 % reflects an increase of 50 basis points compared to 2011 , which was driven by strong margin expansion in our core business that was somewhat offset by record levels of lower-margin technology resale . we had cash collections of receivables of $ 2.7 billion in 2012 compared to $ 2.2 billion in 2011 . days sales outstanding was 74 days for the 2012 fourth quarter compared to 73 days for the 2012 third quarter and 83 days for the 2011 fourth quarter . operating cash flows for 2012 were strong at $ 708.3 million compared to $ 546.3 million in 2011 . health care information technology market outlook we have provided a detailed assessment of the health care information technology market under “ health care and health care it industry ” in part i , item 1 `` business . `` results of operations fiscal year 2012 compared to fiscal year 2011 replace_table_token_4_th revenues & backlog revenues increased 21 % to $ 2.7 billion in 2012 , as compared to $ 2.2 billion in 2011 . story_separator_special_tag critical accounting policies we believe that there are several accounting policies that are critical to understanding our historical and future performance , as these policies affect the reported amount of revenue and other significant areas involving our judgments and estimates . these significant accounting policies relate to revenue recognition , software development , potential impairments of goodwill , and income taxes . these policies and our procedures related to these policies are described in detail below and under specific areas within this md & a . in addition , note ( 1 ) to the consolidated financial statements expands upon discussion of our accounting policies . revenue recognition we recognize revenue within our multiple element arrangements , including software and software-related services , using the residual method . key factors in our revenue recognition model are our assessments that installation services are essential to the functionality of our software , whereas implementation services are not , and the length of time it takes for us to achieve the delivery and installation milestones for our licensed software . if our business model were to change such that implementation services are deemed to be essential to the functionality of our software , the period of time over which our licensed software revenue would be recognized would lengthen . we generally recognize revenue from the sale of our licensed software over two key milestones , delivery and installation , based on percentages that reflect the underlying effort from planning to installation . generally , both milestones are achieved in the quarter the contracts are executed . if the period of time to achieve our delivery and installation milestones for our licensed software were to lengthen , our milestones would be adjusted and the timing of revenue recognition for our licensed software could materially change . 32 we also recognize revenue for certain projects using the percentage of completion method . our revenue recognition is dependent upon our ability to reliably estimate the direct labor hours to complete a project which generally can span several years . we utilize our historical project experience and detailed planning process as a basis for our future estimates to complete current projects . significant delays in completion of the projects , unforeseen cost increases or penalties could result in significant reductions to revenue and margins on these contracts . the actual project results can be significantly different from the estimated results . when adjustments are identified near or at the end of a project , the full impact of the change in estimate is recognized in that period . this can result in a material impact on our results for a single reporting period . software development costs costs incurred internally in creating computer software solutions and enhancements to those solutions are expensed until completion of a detailed program design , which is when we determine that technological feasibility has been established . thereafter , all software development costs are capitalized until such time as the software solutions and enhancements are available for general release , and the capitalized costs subsequently are reported at the lower of amortized cost or net realizable value . net realizable value is computed as the estimated gross future revenues from each software solution less the amount of estimated future costs of completing and disposing of that product . because the development of projected net future revenues related to our software solutions used in our net realizable value computation is based on estimates , a significant reduction in our future revenues could impact the recovery of our capitalized software development costs . we historically have not experienced significant inaccuracies in computing the net realizable value of our software solutions and the difference between the net realizable value and the unamortized cost has grown over the past three years . we expect this trend to continue in the future . if we missed our estimates of net future revenues by 10 % , the amount of our capitalized software development costs would not be impaired . capitalized costs are amortized based on current and expected net future revenue for each software solution with minimum annual amortization equal to the straight-line amortization over the estimated economic life of the software solution . we are amortizing capitalized costs over five years . the five-year period over which capitalized software development costs are amortized is an estimate based upon our forecast of a reasonable useful life for the capitalized costs . historically , use of our software programs by our clients has exceeded five years and is capable of being used a decade or more . we expect that major software information systems companies , large information technology consulting service providers and systems integrators and others specializing in the health care industry may offer competitive products or services . the pace of change in the hcit market is rapid and there are frequent new product introductions , product enhancements and evolving industry standards and requirements . as a result , the capitalized software solutions may become less valuable or obsolete and could be subject to impairment . goodwill goodwill is not amortized but is evaluated for impairment annually or whenever there is an impairment indicator . all goodwill is assigned to a reporting unit , where it is subject to an annual impairment assessment . we assess goodwill for impairment in the second quarter of each fiscal year and evaluate impairment indicators at each quarter end . we assessed our goodwill for impairment in the second quarters of 2012 and 2011 and concluded that goodwill was not impaired . the 2012 assessment consisted of a qualitative analysis in accordance with new guidance effective in 2012. the 2011 assessment consisted of a quantitative analysis , in which the fair values of each of our reporting units exceeded their carrying amounts by a significant margin . we used a discounted cash flow analysis utilizing level 3 inputs , to determine the fair value of the reporting units in 2011.

