paypal holdings ' common stock began `` regular way `` trading under the ticker symbol `` pypl `` on the nasdaq stock market on july 20 , 2015. prior to the separation , ebay transferred substantially all of the assets and liabilities and operations of ebay 's payments business to paypal holdings , which was completed in june 2015 ( the `` capitalization `` ) . the combined financial statements prior to the capitalization were prepared on a stand-alone basis and were derived from ebay 's consolidated financial statements and accounting records . the combined financial statements reflect our financial position , results of operations , comprehensive income and cash flows as our business was operated as part of ebay prior to the capitalization . following the capitalization , our consolidated financial statements include the accounts of paypal holdings and its wholly-owned subsidiaries . the combined and consolidated financial position , results of operations and cash flows as of dates and for periods prior to the separation may not be indicative of what our financial position , results of operations and cash flows would have been as a separate stand-alone entity during the periods presented , nor are they indicative of what our financial position , results of operations and cash flows may be in the future . for additional information , see `` note 1—overview and summary of significant accounting policies `` to our combined and consolidated financial statements included elsewhere in this annual report on form 10-k. unless otherwise expressly stated or the context otherwise requires , references to “ we , ” “ our , ” “ us , ” “ the company ” and “ paypal ” refer to paypal holdings and its consolidated subsidiaries or , in the case of information as of dates or for periods prior to the separation , the combined and consolidated entities of the payments business of ebay , including paypal , inc. and certain other assets and liabilities that had been historically held at the ebay corporate level but were specifically identifiable and attributable to the payments business . 35 overview net revenues increased $ 1.2 billion , or 15 % in 2015 and $ 1.3 billion , or 19 % in 2014 . the increase was primarily driven by growth in total payment volume ( “ tpv ” ) of 20 % in 2015 and 26 % in 2014 . operating expenses increased $ 1 billion and $ 1.1 billion , or 15 % and 20 % , in 2015 and 2014 , respectively . the increase in 2015 was primarily due to an increase in transaction expense , customer support and operations expense , and transaction and loan losses . the increase in 2014 was primarily due to an increase in transaction expense , higher expenses due to additional sales and marketing programs and product development initiatives , and an increase in transaction and loan losses . operating income increased $ 193 million , or 15 % , in 2015 compared to 2014 , and $ 177 million , or 16 % , in 2014 compared to 2013 . non-gaap operating income increased $ 327 million , or 20 % , in 2015 compared to 2014 and $ 237 million , or 17 % , in 2014 compared to 2013 . our non-gaap operating margin was 21 % in 2015 , 2014 and 2013 . operating income and non-gaap operating income increased in 2015 and 2014 primarily as a result of higher net revenues partially offset by increased operating expenses . we recorded net income of $ 1.2 billion in 2015 , $ 419 million in 2014 and $ 955 million in 2013 . the increase in net income in 2015 compared to 2014 was primarily attributable to an increase in operating income of $ 193 million and a decrease in income tax expense of $ 582 million primarily resulting from the recognition of deferred tax liabilities in 2014 relating to undistributed foreign earnings of certain foreign subsidiaries for 2013 and prior years . the decrease in net income in 2014 compared to 2013 also was primarily attributable to the recognition of deferred tax liabilities in 2014 relating to undistributed foreign earnings of certain foreign subsidiaries for 2013 and prior years which resulted in an increase in income tax expense in 2014. we recorded non-gaap net income of $ 1.6 billion in 2015 , $ 1.3 billion in 2014 and $ 1.2 billion in 2013 . the increase in non-gaap net income in 2015 and 2014 was primarily attributable to an increase in operating income in each of these periods . our diluted net income per share was $ 1.00 in 2015 , $ 0.34 in 2014 and $ 0.78 in 2013 . our non-gaap diluted net income per share was $ 1.29 in 2015 , $ 1.10 in 2014 and $ 0.97 in 2013 . we generated net cash flows from operations of $ 2.5 billion in 2015 , compared to $ 2.2 billion and $ 2.0 billion in 2014 and 2013 , respectively . we generated free cash flow of $ 1.8 billion , $ 1.7 billion and $ 1.6 billion in 2015 , 2014 and 2013 , respectively . the following table provides a summary of our combined and consolidated operating results for the years ended december 31 , 2015 , 2014 and 2013 : replace_table_token_4_th 1 on july 17 , 2015 , the distribution date , ebay stockholders of record as of the close of business on july 8 , 2015 received one share of paypal common stock for every share of ebay common stock held as of the record date . basic and diluted net income per share for the years ended december 31 , 2014 and 2013 were calculated using the number of common shares distributed on july 17 , 2015 . story_separator_special_tag as a result of the arrangement , the impact to net revenues from other value added services during 2015 was a net decrease of $ 35 million compared to 2014 due to the reduction in net revenues earned from interest and fees on the participation interests sold , partially offset by the gain recognized on the sale of the participation interest ( inclusive of the gain of $ 26 million recognized on the initial sale of approximately $ 708 million in certain consumer loans receivable ) and servicing fees . 40 operating expenses the following table summarizes our operating expenses and related metrics we use to assess the trend in each : replace_table_token_8_th 1 transaction expense rate is calculated by dividing transaction expense by tpv 2 transaction and loan loss rate is calculated by dividing transaction and loan losses by tpv * * not meaningfu l transaction expense transaction expense is primarily comprised of the costs we incur to accept a customer 's funding source of payment . these costs include fees paid to payment processors and other financial institutions in order to draw funds from a customer 's credit or debit card , bank account or other funding source they have stored in their digital wallet . transaction expense also includes fees paid to disbursement partners for processing and disbursement costs to enable a transaction and interest expense on borrowings incurred to finance our portfolio of loans receivable arising from our paypal credit funding option . we refer to the allocation of funding sources used by our consumers as our “ funding mix . ” the cost of funding a transaction with a credit or debit card is generally more costly than the cost of funding a transaction from a bank or through internal sources such as a paypal account balance or paypal credit . as we expand the availability of alternative funding sources to our customers , a change in funding mix can increase or decrease our transaction expense rate . the cost of funding a transaction is also impacted by the geographic region or country in which a transaction occurs because we generally pay lower rates for transactions funded with credit cards outside the u.s. than in the u.s. for the years ended december 31 , 2015 , 2014 and 2013 , approximately 45 % , 48 % , and 48 % of tpv , respectively , was generated outside of the u.s. transaction expense increased $ 440 million , or 20 % , in 2015 compared to 2014. the increases in transaction expense in 2015 was primarily attributable to an increase in tpv , offset by favorable foreign currency fluctuations due to the strengthening of the u.s. dollar . transaction expense increased by $ 335 million , or 18 % , in 2014 compared to 2013 , due primarily to an increase in tpv . the impact from acquisitions was not material to our total transaction expense growth in 2015 or 2014. our transaction expense rate in 2015 increased compared to 2014 due to higher assessments charged by payments processors and other financial institutions when we draw funds from a customer 's credit or debit card , bank account or other funding sources partially offset by cost efficiencies from our payments platform and a favorable funding mix . our transaction expense rates in 2014 decreased compared to 2013 due to cost efficiencies from our payments platform , a favorable funding mix and a larger share of tpv in countries where we pay lower rates for transactions funded with credit cards than in the u.s. interest expense on borrowings incurred to finance our portfolio of loans receivable , included in transaction expense , was $ 3 million , $ 7 million and $ 14 million for the years ended december 31 , 2015 , 2014 and 2013 , respectively . transaction and loan losses transaction losses include the expense associated with our customer protection programs , fraud , and chargebacks . loan losses include the losses associated with our loans receivable balances . we expect our transaction and loan losses to fluctuate depending on many factors , including tpv , macroeconomic conditions , the extent of our customer protection programs , the impact of regulatory changes , and the credit quality of loans receivable arising from transactions funded with our paypal credit products and working capital advances to selected merchant sellers . additionally , prior to the distribution we recovered certain amounts 41 from ebay related to customer protection programs offered on eligible ebay purchases made with paypal . these costs include the actual amount of protection losses associated with ebay 's customer protection programs that we administer and fund on behalf of ebay , which are included as a reduction of transaction and loan losses . recoveries associated with protection losses incurred on eligible ebay purchases during the years ended december 31 , 2015 , 2014 and 2013 were $ 27 million , $ 43 million and $ 48 million , respectively . following the distribution , we no longer administer ebay 's customer protection programs or recover amounts from ebay associated with protection losses incurred on eligible ebay purchases ; instead , we and ebay each independently administer our own customer protection programs . further , our customer protection programs extend to customers ' eligible purchases on ebay and therefore we have incurred and expect to continue to incur related incremental costs associated with our customer protection programs following the distribution . transaction and loan losses increased $ 163 million or 25 % in 2015 compared to 2014 , and increased $ 144 million or 29 % in 2014 compared to 2013 . transaction losses were $ 511 million in 2015 , $ 408 million in 2014 and $ 310 million in 2013 , reflecting an increase of 25 % in 2015 compared to 2014 , and an increase of 32 % in 2014 compared to 2013. the increase in each of these periods was

cash paid for income taxes in 2015 , 2014 and 2013 was $ 216 million , $ 47 million and $ 28 million , respectively . investing activities the net cash used in investing activities of $ 6.4 billion in 2015 was due primarily to purchases of available for sale investments of $ 7.5 billion , cash paid for acquisitions ( net of cash acquired ) of $ 1.2 billion , increases in our loan receivable portfolio ( net of collections ) originated through our paypal credit products of $ 819 million and purchases of property and equipment of $ 722 million , due in part to the separation from ebay . these net cash outflows were offset by maturities and sales of investments of $ 3.3 billion and net cash inflows relating to receivables from ebay of $ 575 million . 49 the net cash used in investing activities of $ 1.5 billion in 2014 was due primarily to increases in our loan receivable portfolio ( net of collections ) originated through our paypal credit products of $ 1.0 billion , purchases of property and equipment of $ 492 million and net cash outflows relating to receivables from ebay of $ 362 million , offset by and net cash received for maturities and sales of investments of $ 409 million . the net cash used in investing activities of $ 1.7 billion in 2013 was due primarily to increases in our loan receivable portfolio ( net of collections and charge-offs ) originated through our paypal credit products of $ 793 million , cash paid for acquisitions ( net of cash acquired ) of $ 731 million , purchases of investments of $ 610 million and purchases of property and equipment of $ 391 million , offset by net cash inflows relating to receivables from ebay of $ 484 million and cash received for maturities and sales of investments of $ 320 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 paid for income taxes in 2015 , 2014 and 2013 was $ 216 million , $ 47 million and $ 28 million , respectively . investing activities the net cash used in investing activities of $ 6.4 billion in 2015 was due primarily to purchases of available for sale investments of $ 7.5 billion , cash paid for acquisitions ( net of cash acquired ) of $ 1.2 billion , increases in our loan receivable portfolio ( net of collections ) originated through our paypal credit products of $ 819 million and purchases of property and equipment of $ 722 million , due in part to the separation from ebay . these net cash outflows were offset by maturities and sales of investments of $ 3.3 billion and net cash inflows relating to receivables from ebay of $ 575 million . 49 the net cash used in investing activities of $ 1.5 billion in 2014 was due primarily to increases in our loan receivable portfolio ( net of collections ) originated through our paypal credit products of $ 1.0 billion , purchases of property and equipment of $ 492 million and net cash outflows relating to receivables from ebay of $ 362 million , offset by and net cash received for maturities and sales of investments of $ 409 million . the net cash used in investing activities of $ 1.7 billion in 2013 was due primarily to increases in our loan receivable portfolio ( net of collections and charge-offs ) originated through our paypal credit products of $ 793 million , cash paid for acquisitions ( net of cash acquired ) of $ 731 million , purchases of investments of $ 610 million and purchases of property and equipment of $ 391 million , offset by net cash inflows relating to receivables from ebay of $ 484 million and cash received for maturities and sales of investments of $ 320 million .
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 Suspicious Activity Report : paypal holdings ' common stock began `` regular way `` trading under the ticker symbol `` pypl `` on the nasdaq stock market on july 20 , 2015. prior to the separation , ebay transferred substantially all of the assets and liabilities and operations of ebay 's payments business to paypal holdings , which was completed in june 2015 ( the `` capitalization `` ) . the combined financial statements prior to the capitalization were prepared on a stand-alone basis and were derived from ebay 's consolidated financial statements and accounting records . the combined financial statements reflect our financial position , results of operations , comprehensive income and cash flows as our business was operated as part of ebay prior to the capitalization . following the capitalization , our consolidated financial statements include the accounts of paypal holdings and its wholly-owned subsidiaries . the combined and consolidated financial position , results of operations and cash flows as of dates and for periods prior to the separation may not be indicative of what our financial position , results of operations and cash flows would have been as a separate stand-alone entity during the periods presented , nor are they indicative of what our financial position , results of operations and cash flows may be in the future . for additional information , see `` note 1—overview and summary of significant accounting policies `` to our combined and consolidated financial statements included elsewhere in this annual report on form 10-k. unless otherwise expressly stated or the context otherwise requires , references to “ we , ” “ our , ” “ us , ” “ the company ” and “ paypal ” refer to paypal holdings and its consolidated subsidiaries or , in the case of information as of dates or for periods prior to the separation , the combined and consolidated entities of the payments business of ebay , including paypal , inc. and certain other assets and liabilities that had been historically held at the ebay corporate level but were specifically identifiable and attributable to the payments business . 35 overview net revenues increased $ 1.2 billion , or 15 % in 2015 and $ 1.3 billion , or 19 % in 2014 . the increase was primarily driven by growth in total payment volume ( “ tpv ” ) of 20 % in 2015 and 26 % in 2014 . operating expenses increased $ 1 billion and $ 1.1 billion , or 15 % and 20 % , in 2015 and 2014 , respectively . the increase in 2015 was primarily due to an increase in transaction expense , customer support and operations expense , and transaction and loan losses . the increase in 2014 was primarily due to an increase in transaction expense , higher expenses due to additional sales and marketing programs and product development initiatives , and an increase in transaction and loan losses . operating income increased $ 193 million , or 15 % , in 2015 compared to 2014 , and $ 177 million , or 16 % , in 2014 compared to 2013 . non-gaap operating income increased $ 327 million , or 20 % , in 2015 compared to 2014 and $ 237 million , or 17 % , in 2014 compared to 2013 . our non-gaap operating margin was 21 % in 2015 , 2014 and 2013 . operating income and non-gaap operating income increased in 2015 and 2014 primarily as a result of higher net revenues partially offset by increased operating expenses . we recorded net income of $ 1.2 billion in 2015 , $ 419 million in 2014 and $ 955 million in 2013 . the increase in net income in 2015 compared to 2014 was primarily attributable to an increase in operating income of $ 193 million and a decrease in income tax expense of $ 582 million primarily resulting from the recognition of deferred tax liabilities in 2014 relating to undistributed foreign earnings of certain foreign subsidiaries for 2013 and prior years . the decrease in net income in 2014 compared to 2013 also was primarily attributable to the recognition of deferred tax liabilities in 2014 relating to undistributed foreign earnings of certain foreign subsidiaries for 2013 and prior years which resulted in an increase in income tax expense in 2014. we recorded non-gaap net income of $ 1.6 billion in 2015 , $ 1.3 billion in 2014 and $ 1.2 billion in 2013 . the increase in non-gaap net income in 2015 and 2014 was primarily attributable to an increase in operating income in each of these periods . our diluted net income per share was $ 1.00 in 2015 , $ 0.34 in 2014 and $ 0.78 in 2013 . our non-gaap diluted net income per share was $ 1.29 in 2015 , $ 1.10 in 2014 and $ 0.97 in 2013 . we generated net cash flows from operations of $ 2.5 billion in 2015 , compared to $ 2.2 billion and $ 2.0 billion in 2014 and 2013 , respectively . we generated free cash flow of $ 1.8 billion , $ 1.7 billion and $ 1.6 billion in 2015 , 2014 and 2013 , respectively . the following table provides a summary of our combined and consolidated operating results for the years ended december 31 , 2015 , 2014 and 2013 : replace_table_token_4_th 1 on july 17 , 2015 , the distribution date , ebay stockholders of record as of the close of business on july 8 , 2015 received one share of paypal common stock for every share of ebay common stock held as of the record date . basic and diluted net income per share for the years ended december 31 , 2014 and 2013 were calculated using the number of common shares distributed on july 17 , 2015 . story_separator_special_tag as a result of the arrangement , the impact to net revenues from other value added services during 2015 was a net decrease of $ 35 million compared to 2014 due to the reduction in net revenues earned from interest and fees on the participation interests sold , partially offset by the gain recognized on the sale of the participation interest ( inclusive of the gain of $ 26 million recognized on the initial sale of approximately $ 708 million in certain consumer loans receivable ) and servicing fees . 40 operating expenses the following table summarizes our operating expenses and related metrics we use to assess the trend in each : replace_table_token_8_th 1 transaction expense rate is calculated by dividing transaction expense by tpv 2 transaction and loan loss rate is calculated by dividing transaction and loan losses by tpv * * not meaningfu l transaction expense transaction expense is primarily comprised of the costs we incur to accept a customer 's funding source of payment . these costs include fees paid to payment processors and other financial institutions in order to draw funds from a customer 's credit or debit card , bank account or other funding source they have stored in their digital wallet . transaction expense also includes fees paid to disbursement partners for processing and disbursement costs to enable a transaction and interest expense on borrowings incurred to finance our portfolio of loans receivable arising from our paypal credit funding option . we refer to the allocation of funding sources used by our consumers as our “ funding mix . ” the cost of funding a transaction with a credit or debit card is generally more costly than the cost of funding a transaction from a bank or through internal sources such as a paypal account balance or paypal credit . as we expand the availability of alternative funding sources to our customers , a change in funding mix can increase or decrease our transaction expense rate . the cost of funding a transaction is also impacted by the geographic region or country in which a transaction occurs because we generally pay lower rates for transactions funded with credit cards outside the u.s. than in the u.s. for the years ended december 31 , 2015 , 2014 and 2013 , approximately 45 % , 48 % , and 48 % of tpv , respectively , was generated outside of the u.s. transaction expense increased $ 440 million , or 20 % , in 2015 compared to 2014. the increases in transaction expense in 2015 was primarily attributable to an increase in tpv , offset by favorable foreign currency fluctuations due to the strengthening of the u.s. dollar . transaction expense increased by $ 335 million , or 18 % , in 2014 compared to 2013 , due primarily to an increase in tpv . the impact from acquisitions was not material to our total transaction expense growth in 2015 or 2014. our transaction expense rate in 2015 increased compared to 2014 due to higher assessments charged by payments processors and other financial institutions when we draw funds from a customer 's credit or debit card , bank account or other funding sources partially offset by cost efficiencies from our payments platform and a favorable funding mix . our transaction expense rates in 2014 decreased compared to 2013 due to cost efficiencies from our payments platform , a favorable funding mix and a larger share of tpv in countries where we pay lower rates for transactions funded with credit cards than in the u.s. interest expense on borrowings incurred to finance our portfolio of loans receivable , included in transaction expense , was $ 3 million , $ 7 million and $ 14 million for the years ended december 31 , 2015 , 2014 and 2013 , respectively . transaction and loan losses transaction losses include the expense associated with our customer protection programs , fraud , and chargebacks . loan losses include the losses associated with our loans receivable balances . we expect our transaction and loan losses to fluctuate depending on many factors , including tpv , macroeconomic conditions , the extent of our customer protection programs , the impact of regulatory changes , and the credit quality of loans receivable arising from transactions funded with our paypal credit products and working capital advances to selected merchant sellers . additionally , prior to the distribution we recovered certain amounts 41 from ebay related to customer protection programs offered on eligible ebay purchases made with paypal . these costs include the actual amount of protection losses associated with ebay 's customer protection programs that we administer and fund on behalf of ebay , which are included as a reduction of transaction and loan losses . recoveries associated with protection losses incurred on eligible ebay purchases during the years ended december 31 , 2015 , 2014 and 2013 were $ 27 million , $ 43 million and $ 48 million , respectively . following the distribution , we no longer administer ebay 's customer protection programs or recover amounts from ebay associated with protection losses incurred on eligible ebay purchases ; instead , we and ebay each independently administer our own customer protection programs . further , our customer protection programs extend to customers ' eligible purchases on ebay and therefore we have incurred and expect to continue to incur related incremental costs associated with our customer protection programs following the distribution . transaction and loan losses increased $ 163 million or 25 % in 2015 compared to 2014 , and increased $ 144 million or 29 % in 2014 compared to 2013 . transaction losses were $ 511 million in 2015 , $ 408 million in 2014 and $ 310 million in 2013 , reflecting an increase of 25 % in 2015 compared to 2014 , and an increase of 32 % in 2014 compared to 2013. the increase in each of these periods was

