our clients are contractually obligated to pay us for all hours billed . to a much lesser extent , we also earn revenue if a client hires one of our consultants . this type of contractually non-refundable revenue is recognized at the time our client completes the hiring process and represented 0.5 % of our revenue for each of the years ended may 25 , 2013 , may 26 , 2012 and may 28 , 2011. we periodically review our outstanding accounts receivable balance and determine an estimate of the amount of those receivables we believe may prove uncollectible . our provision for bad debts , if any , is included in our selling , general and administrative expenses . the costs to pay our professional consultants and all related benefit and incentive costs , including provisions for paid time off and other employee benefits , are included in direct cost of services . we pay most of our consultants on an hourly basis for all hours worked on client engagements and , therefore , direct cost of services tends to vary directly with the volume of revenue we earn . we expense the benefits we pay to our consultants as they are earned . these benefits include paid time off and holidays ; a discretionary bonus plan ; subsidized group health , dental and life insurance programs ; a matching 401 ( k ) retirement plan ; the ability to participate in the company 's espp ; and professional development and career training . in addition , we pay the related costs of employment , including state and federal payroll taxes , workers ' compensation insurance , unemployment insurance and other costs . typically , a consultant must work a threshold number of hours to be eligible for all of the benefits . we recognize direct cost of services when incurred . selling , general and administrative expenses include the payroll and related costs of our internal management as well as general and administrative , marketing and recruiting costs . our sales and marketing efforts are led by our management team who are salaried employees and earn bonuses based on operating results for the company as a whole and within each individual 's geographic market . the company 's fiscal year consists of 52 or 53 weeks , ending on the saturday in may closest to may 31. fiscal 2013 and 2012 consisted of 52 weeks each . for fiscal years of 53 weeks , such as next year 's fiscal 2014 , the first three quarters consist of 13 weeks each and the fourth quarter consists of 14 weeks . critical accounting policies the following discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with gaap in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . the following represents a summary of our critical accounting policies , defined as those policies that we believe : ( a ) are the most important to the portrayal of our financial condition and results of operations and ( b ) involve inherently uncertain issues that require management 's most difficult , subjective or complex judgments . valuation of long-lived assets  we assess the potential impairment of long-lived tangible and intangible assets periodically or whenever events or changes in circumstances indicate that the carrying value may not be recoverable . our goodwill and certain other intangible assets are not subject to periodic amortization . these assets are considered to have an indefinite life and their carrying values are required to be assessed by us for impairment at least annually . depending on future market values of our stock , our operating performance and other factors , these assessments could potentially result in impairment reductions of these intangible assets in the future and this adjustment may materially affect the company 's future financial results and financial condition . contingent consideration  the company estimates and records the acquisition date fair value of contingent consideration as part of purchase price consideration for acquisitions occurring subsequent to may 30 , 2009. in addition , each reporting period , the company estimates changes in the fair value of contingent consideration and any change in fair value is recognized in the company 's consolidated statement of operations . the estimate of the fair value of contingent consideration requires very subjective assumptions to be made of future operating results , discount rates and probabilities assigned to various potential operating result scenarios . future revisions to these assumptions could materially change the estimate of the fair value of contingent consideration and therefore materially affect the company 's future financial results and financial condition . 32 under the terms of a november 2009 membership interest purchase agreement that we entered into with sitrick and company , michael s. sitrick , brincko associates , inc. and john p. brincko ( together , the sellers ) to acquire sitrick brincko group , the sellers have the opportunity to receive contingent consideration subsequent to the fourth anniversary of the acquisition , provided that sitrick brincko group 's average annual ebitda ( defined as earnings before interest , taxes , depreciation and amortization ) over a period of four years following the acquisition date exceeds $ 11.3 million . the range of undiscounted amounts the company could be obligated to pay as contingent consideration under the earn-out arrangement is between $ 0 and an unlimited amount . at the date of acquisition , the company determined the fair value of the obligation to pay contingent consideration based on probability-weighted projections of the average ebitda during the four year earn-out measurement period . story_separator_special_tag this decrease is primarily attributable to the absence of paid holidays in the united states during the fourth quarter and the declining impact of payroll taxes as the calendar year progresses . s , g & a expenses increased $ 700,000 from the quarter ended february 23 , 2013 to the quarter ended may 25 , 2013 , primarily as a result of increased marketing spend and severance expenses in certain european offices offset by reduced payroll related benefit costs . the leverage of s , g & a expenses was relatively flat at 30.1 % in the third quarter of fiscal 2013 and 30.2 % in the fourth quarter of fiscal 2013. a downturn or softening in global economic conditions and the impact of the summer holiday period could put resulting pressure on revenue in the first quarter of fiscal 2014 , and may limit our ability to leverage direct cost of services and s , g & a expenses . employee portion of contingent consideration adjustment and contingent consideration adjustment . at the conclusion of the second annual evaluation period for earn-out qualification as of november 26 , 2012 , the company determined that it was more likely than not that the sitrick brincko group would not exceed the target average ebitda of $ 11.3 million necessary for an earn-out payment in november 2013 and reduced the fair value of the estimated liability from $ 33.4 million to zero , representing a non-cash favorable adjustment as reflected in the company 's consolidated statement of operations for the year ended may 26 , 2012 ( $ 20.4 million net of tax , including the employee portion adjustment discussed below ) . as of may 25 , 2013 , the company has not altered its conclusion after updating its probability weighted assessment of various projected ebitda scenarios for the remaining two quarters in the earn-out period . in addition , in fiscal 2012 , the company also reversed its previously recorded estimate of $ 500,000 for the employee portion of contingent consideration after determining that it is more likely than not that the earn-out contingent consideration will not be paid . as of may 25 , 2013 , the company continues to believe it is more likely than not that no contingent consideration will be payable . in the event that the contingent consideration is not paid at the conclusion of the earn-out period , mr. brincko will be entitled to receive a cash payment of $ 2,250,000 , subject to his employment in good standing with the company as defined . as a result of the company 's determination that it is more likely than not that the contingent consideration will not be earned , this amount is recognized as a component of s , g & a over the remaining service period from the time it was estimated that no contingent consideration will be due . the estimate of the fair value of contingent consideration payable , including the employee portion , requires very subjective assumptions to be made of various potential operating result scenarios ; significant increases in the future estimated ebitda could result in an increase in the estimated fair value of the sitrick brincko group contingent consideration and therefore materially affect the company 's future financial results and financial condition . amortization and depreciation expense . amortization of intangible assets decreased to $ 1.7 million in fiscal 2013 from $ 3.4 million in fiscal 2012. the decrease is the result of the completion of amortization on certain identifiable intangible assets . based upon identified intangible assets recorded at may 25 , 2013 , the company anticipates amortization expense related to identified intangible assets to approximate $ 1.7 million during the fiscal year ending may 31 , 2014. depreciation expense decreased from $ 5.7 million for the year ended may 26 , 2012 to $ 4.6 million for the year ended may 25 , 2013. depreciation decreased as a number of assets were fully depreciated during fiscal 2012 and fiscal 2013 and the company has slowed the amount invested in property and equipment since fiscal 2009 as compared to previous fiscal years . interest income . interest income declined to $ 175,000 in fiscal 2013 compared to $ 252,000 in fiscal 2012. the decrease in interest income is the result of lower interest rates available for the company 's investments as compared to fiscal 2012 and , to a lesser extent , lower available cash balances available for investment . the company has invested available cash in certificates of deposit , money market investments and commercial paper that have been classified as cash equivalents due to the short maturities of these investments . as of may 25 , 2013 , the company had $ 25.0 million of investments in commercial paper and certificates of deposit with remaining maturity dates between three months and one year from the balance sheet date classified as short-term investments and considered held-to-maturity securities . 37 income taxes . the provision for income taxes decreased from $ 32.2 million ( effective rate of 43.9 % ) for the year ended may 26 , 2012 to $ 19.4 million ( effective rate of 48.6 % ) for the year ended may 25 , 2013. while the provision decreased because of lower pretax income , the effective tax rate increased as a consequence of the mix of international results . in addition , the provision for taxes in each of fiscal 2013 and fiscal 2012 resulted from taxes on income from operations in the united states and certain other foreign jurisdictions , a lower benefit for losses in certain foreign jurisdictions with tax rates lower than the united states statutory rates , and no benefit for losses in jurisdictions in which a valuation allowance on operating loss carryforwards had previously been established . the effective tax rate in both fiscal years disproportionally magnifies the effect of the components of the tax rate that differ

liquidity and capital resources our primary source of liquidity is cash provided by our operations and , historically , to a lesser extent , stock option exercises . we have generated positive cash flows annually from operations since inception , and we continued to do so during the year ended may 25 , 2013. our ability to continue to increase positive cash flow from operations in the future will be , at least in part , dependent on improvement in global economic conditions . at may 25 , 2013 , the company had operating leases , primarily for office premises , and purchase obligations , primarily for property and equipment , expiring at various dates . at may 25 , 2013 , the company had no capital leases . the following table summarizes our future minimum rental commitments under operating leases and our other known contractual obligations as of may 25 , 2013 : replace_table_token_13_th the company has a $ 3.0 million unsecured revolving credit facility with bank of america ( the credit agreement ) . the credit agreement allows the company to choose the interest rate applicable to advances . the interest rate options are bank of america 's prime rate and a london inter-bank offered rate ( libor ) plus 2.25 % . interest , if any , is payable monthly . the credit agreement expires november 30 , 2013. as of may 25 , 2013 , the company had approximately $ 1.3 million available under the terms of the credit agreement as bank of america has issued approximately $ 1.7 million of outstanding letters of credit in favor of third parties related to operating leases . as of may 25 , 2013 , the company was in compliance with all covenants included in the credit agreement . operating activities provided $ 35.0 million in cash in fiscal 2013 compared to $ 36.4 million in fiscal 2012. cash provided by operations in fiscal 2013 resulted from net income of $ 20.5 million and net favorable non-cash reconciling adjustments of $ 14.5 million ( principally depreciation and amortization and stock compensation expense ) .


 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 primary source of liquidity is cash provided by our operations and , historically , to a lesser extent , stock option exercises . we have generated positive cash flows annually from operations since inception , and we continued to do so during the year ended may 25 , 2013. our ability to continue to increase positive cash flow from operations in the future will be , at least in part , dependent on improvement in global economic conditions . at may 25 , 2013 , the company had operating leases , primarily for office premises , and purchase obligations , primarily for property and equipment , expiring at various dates . at may 25 , 2013 , the company had no capital leases . the following table summarizes our future minimum rental commitments under operating leases and our other known contractual obligations as of may 25 , 2013 : replace_table_token_13_th the company has a $ 3.0 million unsecured revolving credit facility with bank of america ( the credit agreement ) . the credit agreement allows the company to choose the interest rate applicable to advances . the interest rate options are bank of america 's prime rate and a london inter-bank offered rate ( libor ) plus 2.25 % . interest , if any , is payable monthly . the credit agreement expires november 30 , 2013. as of may 25 , 2013 , the company had approximately $ 1.3 million available under the terms of the credit agreement as bank of america has issued approximately $ 1.7 million of outstanding letters of credit in favor of third parties related to operating leases . as of may 25 , 2013 , the company was in compliance with all covenants included in the credit agreement . operating activities provided $ 35.0 million in cash in fiscal 2013 compared to $ 36.4 million in fiscal 2012. cash provided by operations in fiscal 2013 resulted from net income of $ 20.5 million and net favorable non-cash reconciling adjustments of $ 14.5 million ( principally depreciation and amortization and stock compensation expense ) .
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 Suspicious Activity Report : our clients are contractually obligated to pay us for all hours billed . to a much lesser extent , we also earn revenue if a client hires one of our consultants . this type of contractually non-refundable revenue is recognized at the time our client completes the hiring process and represented 0.5 % of our revenue for each of the years ended may 25 , 2013 , may 26 , 2012 and may 28 , 2011. we periodically review our outstanding accounts receivable balance and determine an estimate of the amount of those receivables we believe may prove uncollectible . our provision for bad debts , if any , is included in our selling , general and administrative expenses . the costs to pay our professional consultants and all related benefit and incentive costs , including provisions for paid time off and other employee benefits , are included in direct cost of services . we pay most of our consultants on an hourly basis for all hours worked on client engagements and , therefore , direct cost of services tends to vary directly with the volume of revenue we earn . we expense the benefits we pay to our consultants as they are earned . these benefits include paid time off and holidays ; a discretionary bonus plan ; subsidized group health , dental and life insurance programs ; a matching 401 ( k ) retirement plan ; the ability to participate in the company 's espp ; and professional development and career training . in addition , we pay the related costs of employment , including state and federal payroll taxes , workers ' compensation insurance , unemployment insurance and other costs . typically , a consultant must work a threshold number of hours to be eligible for all of the benefits . we recognize direct cost of services when incurred . selling , general and administrative expenses include the payroll and related costs of our internal management as well as general and administrative , marketing and recruiting costs . our sales and marketing efforts are led by our management team who are salaried employees and earn bonuses based on operating results for the company as a whole and within each individual 's geographic market . the company 's fiscal year consists of 52 or 53 weeks , ending on the saturday in may closest to may 31. fiscal 2013 and 2012 consisted of 52 weeks each . for fiscal years of 53 weeks , such as next year 's fiscal 2014 , the first three quarters consist of 13 weeks each and the fourth quarter consists of 14 weeks . critical accounting policies the following discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with gaap in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . the following represents a summary of our critical accounting policies , defined as those policies that we believe : ( a ) are the most important to the portrayal of our financial condition and results of operations and ( b ) involve inherently uncertain issues that require management 's most difficult , subjective or complex judgments . valuation of long-lived assets  we assess the potential impairment of long-lived tangible and intangible assets periodically or whenever events or changes in circumstances indicate that the carrying value may not be recoverable . our goodwill and certain other intangible assets are not subject to periodic amortization . these assets are considered to have an indefinite life and their carrying values are required to be assessed by us for impairment at least annually . depending on future market values of our stock , our operating performance and other factors , these assessments could potentially result in impairment reductions of these intangible assets in the future and this adjustment may materially affect the company 's future financial results and financial condition . contingent consideration  the company estimates and records the acquisition date fair value of contingent consideration as part of purchase price consideration for acquisitions occurring subsequent to may 30 , 2009. in addition , each reporting period , the company estimates changes in the fair value of contingent consideration and any change in fair value is recognized in the company 's consolidated statement of operations . the estimate of the fair value of contingent consideration requires very subjective assumptions to be made of future operating results , discount rates and probabilities assigned to various potential operating result scenarios . future revisions to these assumptions could materially change the estimate of the fair value of contingent consideration and therefore materially affect the company 's future financial results and financial condition . 32 under the terms of a november 2009 membership interest purchase agreement that we entered into with sitrick and company , michael s. sitrick , brincko associates , inc. and john p. brincko ( together , the sellers ) to acquire sitrick brincko group , the sellers have the opportunity to receive contingent consideration subsequent to the fourth anniversary of the acquisition , provided that sitrick brincko group 's average annual ebitda ( defined as earnings before interest , taxes , depreciation and amortization ) over a period of four years following the acquisition date exceeds $ 11.3 million . the range of undiscounted amounts the company could be obligated to pay as contingent consideration under the earn-out arrangement is between $ 0 and an unlimited amount . at the date of acquisition , the company determined the fair value of the obligation to pay contingent consideration based on probability-weighted projections of the average ebitda during the four year earn-out measurement period . story_separator_special_tag this decrease is primarily attributable to the absence of paid holidays in the united states during the fourth quarter and the declining impact of payroll taxes as the calendar year progresses . s , g & a expenses increased $ 700,000 from the quarter ended february 23 , 2013 to the quarter ended may 25 , 2013 , primarily as a result of increased marketing spend and severance expenses in certain european offices offset by reduced payroll related benefit costs . the leverage of s , g & a expenses was relatively flat at 30.1 % in the third quarter of fiscal 2013 and 30.2 % in the fourth quarter of fiscal 2013. a downturn or softening in global economic conditions and the impact of the summer holiday period could put resulting pressure on revenue in the first quarter of fiscal 2014 , and may limit our ability to leverage direct cost of services and s , g & a expenses . employee portion of contingent consideration adjustment and contingent consideration adjustment . at the conclusion of the second annual evaluation period for earn-out qualification as of november 26 , 2012 , the company determined that it was more likely than not that the sitrick brincko group would not exceed the target average ebitda of $ 11.3 million necessary for an earn-out payment in november 2013 and reduced the fair value of the estimated liability from $ 33.4 million to zero , representing a non-cash favorable adjustment as reflected in the company 's consolidated statement of operations for the year ended may 26 , 2012 ( $ 20.4 million net of tax , including the employee portion adjustment discussed below ) . as of may 25 , 2013 , the company has not altered its conclusion after updating its probability weighted assessment of various projected ebitda scenarios for the remaining two quarters in the earn-out period . in addition , in fiscal 2012 , the company also reversed its previously recorded estimate of $ 500,000 for the employee portion of contingent consideration after determining that it is more likely than not that the earn-out contingent consideration will not be paid . as of may 25 , 2013 , the company continues to believe it is more likely than not that no contingent consideration will be payable . in the event that the contingent consideration is not paid at the conclusion of the earn-out period , mr. brincko will be entitled to receive a cash payment of $ 2,250,000 , subject to his employment in good standing with the company as defined . as a result of the company 's determination that it is more likely than not that the contingent consideration will not be earned , this amount is recognized as a component of s , g & a over the remaining service period from the time it was estimated that no contingent consideration will be due . the estimate of the fair value of contingent consideration payable , including the employee portion , requires very subjective assumptions to be made of various potential operating result scenarios ; significant increases in the future estimated ebitda could result in an increase in the estimated fair value of the sitrick brincko group contingent consideration and therefore materially affect the company 's future financial results and financial condition . amortization and depreciation expense . amortization of intangible assets decreased to $ 1.7 million in fiscal 2013 from $ 3.4 million in fiscal 2012. the decrease is the result of the completion of amortization on certain identifiable intangible assets . based upon identified intangible assets recorded at may 25 , 2013 , the company anticipates amortization expense related to identified intangible assets to approximate $ 1.7 million during the fiscal year ending may 31 , 2014. depreciation expense decreased from $ 5.7 million for the year ended may 26 , 2012 to $ 4.6 million for the year ended may 25 , 2013. depreciation decreased as a number of assets were fully depreciated during fiscal 2012 and fiscal 2013 and the company has slowed the amount invested in property and equipment since fiscal 2009 as compared to previous fiscal years . interest income . interest income declined to $ 175,000 in fiscal 2013 compared to $ 252,000 in fiscal 2012. the decrease in interest income is the result of lower interest rates available for the company 's investments as compared to fiscal 2012 and , to a lesser extent , lower available cash balances available for investment . the company has invested available cash in certificates of deposit , money market investments and commercial paper that have been classified as cash equivalents due to the short maturities of these investments . as of may 25 , 2013 , the company had $ 25.0 million of investments in commercial paper and certificates of deposit with remaining maturity dates between three months and one year from the balance sheet date classified as short-term investments and considered held-to-maturity securities . 37 income taxes . the provision for income taxes decreased from $ 32.2 million ( effective rate of 43.9 % ) for the year ended may 26 , 2012 to $ 19.4 million ( effective rate of 48.6 % ) for the year ended may 25 , 2013. while the provision decreased because of lower pretax income , the effective tax rate increased as a consequence of the mix of international results . in addition , the provision for taxes in each of fiscal 2013 and fiscal 2012 resulted from taxes on income from operations in the united states and certain other foreign jurisdictions , a lower benefit for losses in certain foreign jurisdictions with tax rates lower than the united states statutory rates , and no benefit for losses in jurisdictions in which a valuation allowance on operating loss carryforwards had previously been established . the effective tax rate in both fiscal years disproportionally magnifies the effect of the components of the tax rate that differ

