acquired assets include intangible assets of $ 0.5 million , deferred tax assets of $ 22.2 million , consisting of tax effected net operating losses in the amount of $ 13.5 million , tax effected capitalized research and development expenses of $ 8.5 million and tax effected federal tax credits of $ 0.2 million , and deferred tax liabilities of $ 0.1 million . the excess amount of fair value received over consideration paid of $ 21.4 million was recorded as a deferred credit in the consolidated balance sheets and will be recognized within income tax provision in proportion to the realization of the deferred tax assets and federal tax credits prospectively . during the fourth quarter of the year ended december 31 , 2017 , the deferred tax assets and related deferred credit balances were revalued due primarily to the impact of tax reform . see note 12 of the notes to consolidated financial statements for further discussion of the impact of tax reform on our consolidated financial statements . additionally , in 2018 , the company disposed of approximately $ 7.4 million in deferred tax assets and reduced the deferred credit by approximately $ 6.9 million as a result of an irc section 382 ownership shift that occurred as a result of cinven 's sales of the company 's securities . the ownership shift resulted in a limitation in the ability to utilize the acquired tax attributes and resulted in the described asset write-off and reduction of the deferred credit . how we generate revenue we earn fees through the performance of services detailed in our customer contracts . contract scope and pricing is typically based on either a fixed-fee or unit-of-service model , with consideration of activities performed by third parties , as well as ancillary costs necessary to deliver on the contract scope that are reimbursable by our customers . our contracts can range in duration from a few months to several years . these contracts are individually priced and negotiated based on the anticipated project scope , including the complexity of the project and the performance risks inherent in the project . the majority of our contracts are structured with an upfront fee that is collected at the time of contract signing , and the balance of the fee is collected over the duration of the contract either through an arranged billing schedule or upon completion of certain performance targets or defined milestones . revenue , which is distinct from billing and cash receipt , is recognized based on the satisfaction of the individual performance obligations identified in each contract . substantially all of our customer contracts consist of a single performance obligation , as the promise to transfer the individual services defined in the contracts are not separately identifiable from other promises in the contract , and therefore not distinct . our performance obligations are generally satisfied over time and recognized as services are performed . the progression of our contract performance obligations are measured primarily utilizing the input method of cost to cost . cancellation provisions in our contracts allow our customers to terminate a contract either immediately or according to advance notice terms specified within the applicable contract , which is typically 30 days . contract cancellation may occur for various reasons , including , but not limited to , adverse patient reactions , lack of efficacy , or inadequate patient enrollment . upon cancellation , we are entitled to fees for services rendered and reimbursable costs incurred through the date of termination , including payment for subsequent services necessary to conclude the study or close out the contract . these fees are typically discussed and agreed upon with the customer and are realized as revenue when we believe the amount can be estimated reliably and its realization is probable . changes in revenue from period to period are driven primarily by new business volume and task order execution activity , project cancellations , changes in estimated costs to complete performance obligations , and the mix of active studies during a given period that can vary based on therapeutic area and or study life cycle stage . costs and expenses our costs and expenses are comprised primarily of our total direct costs , selling , general and administrative costs , depreciation and amortization and income taxes . - 53 - total direct costs total direct costs are primarily driven by labor and related employee benefits , but also include contracted third party service related expenses , fees paid to site investigators , reimbursed out of pocket expenses , laboratory supplies and other expenses contributing to service delivery . the other costs of service delivery can include office rent , utilities , supplies and software licenses which are allocated between total direct costs and selling , general and administrative expenses based on the estimated contribution among service delivery and support function efforts on a percentage basis . total direct costs are expensed as incurred and are not deferred in anticipation of contracts being awarded or finalization of changes in scope . total direct costs , as a percentage of net revenue , can vary from period to period due to project labor efficiencies , changes in workforce , compensation/bonus programs and service mix . selling , general and administrative selling , general and administrative expenses are primarily driven by compensation and related employee benefits , as well as rent , utilities , supplies , software licenses , professional fees ( e.g . , legal and accounting expenses ) , travel , marketing and other operating expenses . story_separator_special_tag income tax provision income tax provision increased by $ 9.3 million , to $ 17.8 million for the year ended december 31 , 2017 from $ 8.5 million for the year ended december 31 , 2016. the overall effective tax rates for the years ended december 31 , 2017 and 2016 were 31.3 % and 38.9 % , respectively . on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as “ tax cuts and jobs act ” ( tcja ) . the effective tax rate for 2017 decreased from 2016 primarily due to the impact from the tcja . excluding the impacts of the new federal tax reform legislation , our effective income tax rate in 2017 would have been an expense of 36.2 % . the remaining difference was primarily attributable to the impact of state taxes , domestic and foreign uncertain tax positions and the tax impact associated with acquired tax attributes . the 2017 tcja significantly reforms the internal revenue code of 1986 , as amended . the tcja , among other things , includes a reduction in the u.s. federal tax rate from 35 % to 21 % , allows for the expensing of capital expenditures and puts into effect the migration from a “ worldwide ” system of taxation to a territorial system . the provisional impact on the year ended december 31 , 2017 effective tax rate from the tcja was primarily attributable to a one-time transition tax of $ 0.6 million on unrepatriated earnings of foreign subsidiaries as well as a tax benefit of $ 3.4 million related to the revaluation of the deferred credit which was partially offset by the revaluation of our deferred tax assets and liabilities and other miscellaneous tax attributes due to the reduction of the u.s. corporate tax rate from 35 % to 21 % . - 59 - liquidity and capital resources we assess our liquidity in terms of our ability to generate cash to fund our operating , investing and financing activities . our principal sources of liquidity are operating cash flows and funds available for borrowing under our senior secured revolving credit facility ( as defined below ) . as of december 31 , 2018 , we had cash and cash equivalents of $ 23.3 million , including an immaterial amount of restricted cash , related to advanced payments received pursuant to certain sponsor contracts . approximately $ 10.4 million of our cash and cash equivalents , none of which was restricted , was held by our foreign subsidiaries as of december 31 , 2018. on august 16 , 2016 , the company completed its ipo of its common stock at a price of $ 23.00 per share . we issued and sold 8,050,000 shares of common stock in the ipo . the ipo raised net proceeds of approximately $ 173.6 million after deducting underwriting discounts and commissions . we used the proceeds from our ipo , combined with cash on hand , to repay $ 175.0 million of outstanding borrowings under our 2014 senior secured term loan facility . on december 8 , 2016 , the company entered into a credit agreement ( the “ senior secured credit agreement ” ) consisting of a $ 165.0 million term loan ( the “ senior secured term loan facility ” ) and a $ 150.0 million revolving credit facility ( the “ senior secured revolving credit facility ” and , together with the senior secured term loan facility , the “ senior secured credit facilities ” ) . as of december 31 , 2018 , we had $ 149.8 million available for borrowing under our senior secured revolving credit facility . proceeds from the senior secured term loan facility were used to repay and extinguish our obligations under the 2014 senior secured credit facilities as well as pay any fees , costs and expenses related thereto . our expected primary cash needs on both a short and long-term basis are for investment in operational growth , capital expenditures , payment of debt , share repurchases , selective strategic bolt-on acquisitions , other investments , and other general corporate needs . we have historically funded our operations and growth with cash flow from operations and borrowings under our credit facilities . we expect to continue expanding our operations through organic growth and potentially highly selective bolt-on acquisitions and investments . we expect these activities will be funded from existing cash , cash flow from operations and , if necessary , borrowings under our existing or future credit facilities or other debt . we have deemed that foreign earnings will be indefinitely reinvested and therefore we have not provided taxes on these earnings . while we do not anticipate the need to repatriate these foreign earnings for liquidity purposes given our cash flows from operations and available borrowings under existing and future credit facilities , we would incur taxes on these earnings if the need for repatriation due to liquidity purposes arises . we believe that our sources of liquidity and capital will be sufficient to finance our cash needs for the next 12 months and on a longer-term basis . however , we can not assure you that our business will generate sufficient cash flow from operations , or that future borrowings will be available to us under our senior secured credit facilities or otherwise , in an amount sufficient to fund our liquidity needs . if our cash flows and capital resources are insufficient to service our indebtedness , we may be forced to reduce or delay capital expenditures , sell assets , seek additional capital or restructure or refinance our indebtedness . see “ item 1a . risk factors—risks relating to our indebtedness—we may not be able to generate sufficient cash to service all of our indebtedness , and may be forced to take other actions to satisfy our obligations under our indebtedness that may not be successful

cash flows from operating activities cash flows from operations are driven mainly by net income and net movement in accounts receivable and unbilled , net , advanced billings , pre-funded liabilities , accounts payable and accrued expenses . accounts receivable and unbilled , net , advanced billings and pre-funded liabilities fluctuate on a regular basis as we perform our services , bill our customers and ultimately collect on those receivables . we attempt to negotiate payment terms in order to provide for payments prior to or soon after the provision of services , but this timing of collection can vary significantly on a period by period comparative basis . net cash flows provided by operating activities were $ 156.6 million for the year ended december 31 , 2018 consisting of net income of $ 73.2 million . adjustments to reconcile net income to net cash provided by operating activities were $ 43.8 million , primarily related to amortization of intangibles of $ 29.6 million , depreciation of $ 9.2 million , stock based compensation expense of $ 6.5 million , and deferred income tax provision of $ 3.9 million , offset by $ 7.7 million of amortization and adjustment of deferred credit . changes in operating assets and liabilities provided $ 39.6 million in operating cash flows and were primarily driven by increased accrued expenses of $ 29.0 million and increased advanced billings of $ 35.6 million , offset by increased accounts receivable and unbilled , net of $ 27.0 million . net cash flows provided by operating activities were $ 97.4 million for the year ended december 31 , 2017 consisting of net income of $ 39.1 million . adjustments to reconcile net income to net cash provided by operating activities were $ 45.4 million , primarily related to amortization of intangibles of $ 37.9 million , depreciation of $ 8.6 million , stock based compensation expense of $ 4.5 million , and deferred income tax provision of $ 3.2 million , offset by $ 8.8 million of amortization and adjustment of deferred credit .


 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 flows from operating activities cash flows from operations are driven mainly by net income and net movement in accounts receivable and unbilled , net , advanced billings , pre-funded liabilities , accounts payable and accrued expenses . accounts receivable and unbilled , net , advanced billings and pre-funded liabilities fluctuate on a regular basis as we perform our services , bill our customers and ultimately collect on those receivables . we attempt to negotiate payment terms in order to provide for payments prior to or soon after the provision of services , but this timing of collection can vary significantly on a period by period comparative basis . net cash flows provided by operating activities were $ 156.6 million for the year ended december 31 , 2018 consisting of net income of $ 73.2 million . adjustments to reconcile net income to net cash provided by operating activities were $ 43.8 million , primarily related to amortization of intangibles of $ 29.6 million , depreciation of $ 9.2 million , stock based compensation expense of $ 6.5 million , and deferred income tax provision of $ 3.9 million , offset by $ 7.7 million of amortization and adjustment of deferred credit . changes in operating assets and liabilities provided $ 39.6 million in operating cash flows and were primarily driven by increased accrued expenses of $ 29.0 million and increased advanced billings of $ 35.6 million , offset by increased accounts receivable and unbilled , net of $ 27.0 million . net cash flows provided by operating activities were $ 97.4 million for the year ended december 31 , 2017 consisting of net income of $ 39.1 million . adjustments to reconcile net income to net cash provided by operating activities were $ 45.4 million , primarily related to amortization of intangibles of $ 37.9 million , depreciation of $ 8.6 million , stock based compensation expense of $ 4.5 million , and deferred income tax provision of $ 3.2 million , offset by $ 8.8 million of amortization and adjustment of deferred credit .
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 Suspicious Activity Report : acquired assets include intangible assets of $ 0.5 million , deferred tax assets of $ 22.2 million , consisting of tax effected net operating losses in the amount of $ 13.5 million , tax effected capitalized research and development expenses of $ 8.5 million and tax effected federal tax credits of $ 0.2 million , and deferred tax liabilities of $ 0.1 million . the excess amount of fair value received over consideration paid of $ 21.4 million was recorded as a deferred credit in the consolidated balance sheets and will be recognized within income tax provision in proportion to the realization of the deferred tax assets and federal tax credits prospectively . during the fourth quarter of the year ended december 31 , 2017 , the deferred tax assets and related deferred credit balances were revalued due primarily to the impact of tax reform . see note 12 of the notes to consolidated financial statements for further discussion of the impact of tax reform on our consolidated financial statements . additionally , in 2018 , the company disposed of approximately $ 7.4 million in deferred tax assets and reduced the deferred credit by approximately $ 6.9 million as a result of an irc section 382 ownership shift that occurred as a result of cinven 's sales of the company 's securities . the ownership shift resulted in a limitation in the ability to utilize the acquired tax attributes and resulted in the described asset write-off and reduction of the deferred credit . how we generate revenue we earn fees through the performance of services detailed in our customer contracts . contract scope and pricing is typically based on either a fixed-fee or unit-of-service model , with consideration of activities performed by third parties , as well as ancillary costs necessary to deliver on the contract scope that are reimbursable by our customers . our contracts can range in duration from a few months to several years . these contracts are individually priced and negotiated based on the anticipated project scope , including the complexity of the project and the performance risks inherent in the project . the majority of our contracts are structured with an upfront fee that is collected at the time of contract signing , and the balance of the fee is collected over the duration of the contract either through an arranged billing schedule or upon completion of certain performance targets or defined milestones . revenue , which is distinct from billing and cash receipt , is recognized based on the satisfaction of the individual performance obligations identified in each contract . substantially all of our customer contracts consist of a single performance obligation , as the promise to transfer the individual services defined in the contracts are not separately identifiable from other promises in the contract , and therefore not distinct . our performance obligations are generally satisfied over time and recognized as services are performed . the progression of our contract performance obligations are measured primarily utilizing the input method of cost to cost . cancellation provisions in our contracts allow our customers to terminate a contract either immediately or according to advance notice terms specified within the applicable contract , which is typically 30 days . contract cancellation may occur for various reasons , including , but not limited to , adverse patient reactions , lack of efficacy , or inadequate patient enrollment . upon cancellation , we are entitled to fees for services rendered and reimbursable costs incurred through the date of termination , including payment for subsequent services necessary to conclude the study or close out the contract . these fees are typically discussed and agreed upon with the customer and are realized as revenue when we believe the amount can be estimated reliably and its realization is probable . changes in revenue from period to period are driven primarily by new business volume and task order execution activity , project cancellations , changes in estimated costs to complete performance obligations , and the mix of active studies during a given period that can vary based on therapeutic area and or study life cycle stage . costs and expenses our costs and expenses are comprised primarily of our total direct costs , selling , general and administrative costs , depreciation and amortization and income taxes . - 53 - total direct costs total direct costs are primarily driven by labor and related employee benefits , but also include contracted third party service related expenses , fees paid to site investigators , reimbursed out of pocket expenses , laboratory supplies and other expenses contributing to service delivery . the other costs of service delivery can include office rent , utilities , supplies and software licenses which are allocated between total direct costs and selling , general and administrative expenses based on the estimated contribution among service delivery and support function efforts on a percentage basis . total direct costs are expensed as incurred and are not deferred in anticipation of contracts being awarded or finalization of changes in scope . total direct costs , as a percentage of net revenue , can vary from period to period due to project labor efficiencies , changes in workforce , compensation/bonus programs and service mix . selling , general and administrative selling , general and administrative expenses are primarily driven by compensation and related employee benefits , as well as rent , utilities , supplies , software licenses , professional fees ( e.g . , legal and accounting expenses ) , travel , marketing and other operating expenses . story_separator_special_tag income tax provision income tax provision increased by $ 9.3 million , to $ 17.8 million for the year ended december 31 , 2017 from $ 8.5 million for the year ended december 31 , 2016. the overall effective tax rates for the years ended december 31 , 2017 and 2016 were 31.3 % and 38.9 % , respectively . on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as “ tax cuts and jobs act ” ( tcja ) . the effective tax rate for 2017 decreased from 2016 primarily due to the impact from the tcja . excluding the impacts of the new federal tax reform legislation , our effective income tax rate in 2017 would have been an expense of 36.2 % . the remaining difference was primarily attributable to the impact of state taxes , domestic and foreign uncertain tax positions and the tax impact associated with acquired tax attributes . the 2017 tcja significantly reforms the internal revenue code of 1986 , as amended . the tcja , among other things , includes a reduction in the u.s. federal tax rate from 35 % to 21 % , allows for the expensing of capital expenditures and puts into effect the migration from a “ worldwide ” system of taxation to a territorial system . the provisional impact on the year ended december 31 , 2017 effective tax rate from the tcja was primarily attributable to a one-time transition tax of $ 0.6 million on unrepatriated earnings of foreign subsidiaries as well as a tax benefit of $ 3.4 million related to the revaluation of the deferred credit which was partially offset by the revaluation of our deferred tax assets and liabilities and other miscellaneous tax attributes due to the reduction of the u.s. corporate tax rate from 35 % to 21 % . - 59 - liquidity and capital resources we assess our liquidity in terms of our ability to generate cash to fund our operating , investing and financing activities . our principal sources of liquidity are operating cash flows and funds available for borrowing under our senior secured revolving credit facility ( as defined below ) . as of december 31 , 2018 , we had cash and cash equivalents of $ 23.3 million , including an immaterial amount of restricted cash , related to advanced payments received pursuant to certain sponsor contracts . approximately $ 10.4 million of our cash and cash equivalents , none of which was restricted , was held by our foreign subsidiaries as of december 31 , 2018. on august 16 , 2016 , the company completed its ipo of its common stock at a price of $ 23.00 per share . we issued and sold 8,050,000 shares of common stock in the ipo . the ipo raised net proceeds of approximately $ 173.6 million after deducting underwriting discounts and commissions . we used the proceeds from our ipo , combined with cash on hand , to repay $ 175.0 million of outstanding borrowings under our 2014 senior secured term loan facility . on december 8 , 2016 , the company entered into a credit agreement ( the “ senior secured credit agreement ” ) consisting of a $ 165.0 million term loan ( the “ senior secured term loan facility ” ) and a $ 150.0 million revolving credit facility ( the “ senior secured revolving credit facility ” and , together with the senior secured term loan facility , the “ senior secured credit facilities ” ) . as of december 31 , 2018 , we had $ 149.8 million available for borrowing under our senior secured revolving credit facility . proceeds from the senior secured term loan facility were used to repay and extinguish our obligations under the 2014 senior secured credit facilities as well as pay any fees , costs and expenses related thereto . our expected primary cash needs on both a short and long-term basis are for investment in operational growth , capital expenditures , payment of debt , share repurchases , selective strategic bolt-on acquisitions , other investments , and other general corporate needs . we have historically funded our operations and growth with cash flow from operations and borrowings under our credit facilities . we expect to continue expanding our operations through organic growth and potentially highly selective bolt-on acquisitions and investments . we expect these activities will be funded from existing cash , cash flow from operations and , if necessary , borrowings under our existing or future credit facilities or other debt . we have deemed that foreign earnings will be indefinitely reinvested and therefore we have not provided taxes on these earnings . while we do not anticipate the need to repatriate these foreign earnings for liquidity purposes given our cash flows from operations and available borrowings under existing and future credit facilities , we would incur taxes on these earnings if the need for repatriation due to liquidity purposes arises . we believe that our sources of liquidity and capital will be sufficient to finance our cash needs for the next 12 months and on a longer-term basis . however , we can not assure you that our business will generate sufficient cash flow from operations , or that future borrowings will be available to us under our senior secured credit facilities or otherwise , in an amount sufficient to fund our liquidity needs . if our cash flows and capital resources are insufficient to service our indebtedness , we may be forced to reduce or delay capital expenditures , sell assets , seek additional capital or restructure or refinance our indebtedness . see “ item 1a . risk factors—risks relating to our indebtedness—we may not be able to generate sufficient cash to service all of our indebtedness , and may be forced to take other actions to satisfy our obligations under our indebtedness that may not be successful

