non-retail cost of sales primarily represents the cost of merchandise sold to our franchisees . operating expenses . operating expenses include personnel costs , selling costs , occupancy costs and delivery , among other expenses . legal and regulatory expense/ ( income ) . legal and regulatory expense relates to significant accruals for loss contingencies for pending legal and regulatory proceedings . legal and regulatory income results from significant reductions in previously accrued reserves . retirement and vacation charges . retirement and vacation charges represent costs primarily associated with the retirement of the company 's chief operating officer and a change in the company 's vacation policies in 2013 , as well as costs associated with the retirement of the company 's founder and former chairman of the board in 2012 . depreciation of lease merchandise . depreciation of lease merchandise reflects the expense associated with depreciating merchandise held for lease and leased to customers by our company-operated stores . other operating expense ( income ) , net . other operating expense ( income ) , net consists of gains or losses on sales of company-operated stores and delivery vehicles , impairment charges on assets held for sale and gains or losses on other dispositions of property , plant and equipment . critical accounting policies revenue recognition . lease revenues are recognized in the month they are due on the accrual basis of accounting . for internal management reporting purposes , lease revenues from sales and lease ownership agreements are recognized by the reportable segments as revenue in the month the cash is collected . on a monthly basis , we record an accrual for lease revenues due but not yet received , net of allowances , and a deferral of revenue for lease payments received prior to the month due . our revenue recognition accounting policy matches the lease revenue with the corresponding costs , mainly depreciation , associated with the lease merchandise . at december 31 , 2013 and 2012 , we had a revenue deferral representing cash collected in advance of being due or otherwise earned totaling $ 45.1 million and $ 45.3 million , respectively , and an accrued revenue receivable , net of allowance for doubtful accounts , based on historical collection rates of $ 7.9 million and $ 7.4 million , respectively . revenues from the sale of merchandise to franchisees are recognized at the time of receipt of the merchandise by the franchisee and revenues from such sales to other customers are recognized at the time of shipment . lease merchandise . our aaron 's sales & lease ownership and homesmart divisions depreciate merchandise over the applicable agreement period , generally 12 to 24 months ( monthly agreements ) or 60 to 120 weeks ( weekly agreements ) when leased , and 36 months when not leased , to 0 % salvage value . our policies generally require weekly lease merchandise counts at the stores and write-offs for unsalable , damaged , or missing merchandise inventories . full physical inventories are generally taken at our fulfillment and manufacturing facilities two to four times a year with appropriate provisions made for missing , damaged and unsalable merchandise . in addition , we monitor lease merchandise levels and mix by division , store and fulfillment center , as well as the average age of merchandise on hand . if unsalable lease merchandise can not be returned to vendors , its carrying value is adjusted to net realizable value or written off . all lease merchandise is available for lease and sale , excluding merchandise determined to be missing , damaged or unsalable . 25 we record lease merchandise carrying value adjustments on the allowance method , which estimates the merchandise losses incurred but not yet identified by management as of the end of the accounting period . lease merchandise adjustments totaled $ 58.0 million , $ 54.9 million and $ 46.2 million for the years ended december 31 , 2013 , 2012 , and 2011 , respectively . leases and closed store reserves . the majority of our company-operated stores are operated from leased facilities under operating lease agreements . the majority of the leases are for periods that do not exceed five years , although lease terms range in length up to approximately 15 years . leasehold improvements related to these leases are generally amortized over periods that do not exceed the lesser of the lease term or useful life . while some of our leases do not require escalating payments , for the leases which do contain such provisions we record the related lease expense on a straight-line basis over the lease term . we do not generally obtain significant amounts of lease incentives or allowances from landlords . any incentive or allowance amounts we receive are recognized ratably over the lease term . from time to time , we close or consolidate stores . our primary costs associated with closing stores are the future lease payments and related commitments . we record an estimate of the future obligation related to closed stores based upon the present value of the future lease payments and related commitments , net of estimated sublease income based upon historical experience . as of december 31 , 2013 and 2012 , our reserve for closed stores was $ 2.1 million and $ 2.8 million , respectively . due to changes in market conditions , our estimates related to sublease income may change and , as a result , our actual liability may be more or less than the recorded amount . excluding estimated sublease income , our future obligations related to closed stores on an undiscounted basis were $ 2.9 million and $ 4.1 million as of december 31 , 2013 and 2012 , respectively . insurance programs . we maintain insurance contracts to fund workers compensation , vehicle liability , general liability and group health insurance claims . story_separator_special_tag the company 's investment balance increased to $ 112.4 million at december 31 , 2013 from $ 85.9 million at december 31 , 2012 . the $ 26.5 million increase was primarily a result of purchases of investments , partially offset by scheduled maturities and calls of investments , during 2013 . lease merchandise , net . the decrease of $ 94.3 million in lease merchandise , net of accumulated depreciation , to $ 869.7 million at december 31 , 2013 from $ 964.1 million at december 31 , 2012 , is primarily the result of a net decrease of $ 79.1 million in the sales and lease ownership segment , $ 7.4 million in the homesmart segment and $ 7.8 million in the rimco segment due to the classification of the rimco net assets as held for sale at december 31 , 2013 . prepaid expenses and other assets . prepaid expenses and other assets decreased $ 22.0 million to $ 55.4 million at december 31 , 2013 from $ 77.4 million at december 31 , 2012 , primarily as a result of a $ 22.7 million decrease in the company 's income tax receivable . accrued regulatory expense . accrued regulatory expense increased to $ 28.4 million at december 31 , 2013 from zero at december 31 , 2012 and is related to a pending regulatory investigation by the california attorney general into the company 's leasing , marketing and privacy practices . deferred income taxes payable . the decrease of $ 36.8 million in deferred income taxes payable to $ 227.0 million at december 31 , 2013 from $ 263.7 million at december 31 , 2012 is primarily the result of the reversal of bonus depreciation deductions on lease merchandise included in the tax relief , unemployment reauthorization and job creation act of 2010. included in the deferred income tax payable as of december 31 , 2013 are a deferred tax asset of $ 60.2 million and a valuation allowance of $ 682,000 . the company has reserved the entire value of the canadian net operating loss as there is no expected taxable income to absorb the loss within that jurisdiction . with respect to all other deferred tax assets , the company believes it will have sufficient taxable income in future years to realize their benefit . liquidity and capital resources general cash flows from operations for the years ended december 31 , 2013 , 2012 and 2011 were $ 308.4 million , $ 59.8 million and $ 307.2 million , respectively . the $ 248.7 million increase in cash flows from operating activities during 2013 as compared to 2012 was due , in part , to a $ 41.7 million reduction in accrued litigation expense during 2012 resulting from the settlement of a lawsuit and $ 28.4 million in non-cash legal and regulatory expense during 2013 for loss contingencies related to the pending regulatory investigation by the california attorney general . the increase in cash flows from operating activities also includes a net $ 180.9 million decrease in lease merchandise , net of the effects of acquisitions and a $ 45.1 million increase related to the company 's income tax receivable . the change in income tax receivable is due to the american taxpayer relief act of 2012 enacted on january 2 , 2013 , which extended bonus depreciation on eligible inventory held during 2012 and 2013. in 2012 , the company made payments based on enacted law , resulting in an overpayment when the act was signed . purchases of sales and lease ownership stores had a positive impact on operating cash flows in each period presented . the positive impact on operating cash flows from purchasing stores occurs as the result of lease merchandise , other assets and intangibles acquired in these purchases being treated as an investing cash outflow . as such , the operating cash flows attributable to the newly purchased stores usually have an initial positive effect on operating cash flows that may not be indicative of the extent of their contributions in future periods . the amount of lease merchandise purchased in acquisitions and shown under investing activities , was $ 4.0 million in 2013 , $ 11.9 million in 2012 and $ 13.4 million in 2011 . sales of company-operated stores are an additional source of investing cash flows in each period presented . proceeds from such sales were $ 2.2 million in 2013 , $ 2.0 million in 2012 and $ 7.3 million in 2011 . the amount of lease merchandise sold in these sales and shown under investing activities was $ 882,000 in 2013 , $ 1.4 million in 2012 and $ 8.9 million in 2011 . 32 our primary capital requirements consist of buying lease merchandise for sales and lease ownership stores . as we continue to grow , the need for additional lease merchandise is expected to remain our major capital requirement . other capital requirements include purchases of property , plant and equipment and expenditures for acquisitions and income tax payments . these capital requirements historically have been financed through : cash flow from operations ; trade credit with vendors ; proceeds from the sale of lease return merchandise ; bank credit ; private debt offerings ; and stock offerings . debt financing at december 31 , 2013 , there was no outstanding balance under our revolving credit agreement . our revolving credit facility expires december 13 , 2017 and the total available credit under the facility as of december 31 , 2013 is $ 140.0 million . as of december 31 , 2013 , the company had outstanding $ 125.0 million in senior unsecured notes , originally issued to several insurance companies in a private placement in july 2011. the notes bear interest at the rate of 3.75 % per year and mature on april 27 , 2018. payments of interest are due quarterly , commencing july 27 , 2011 , with

cash to accrual adjustments 2,100 2,591 ( 3,529 ) ( 491 ) ( 19.0 ) 6,120 173.4 total revenues from external customers $ 2,234,631 $ 2,212,827 $ 2,012,578 $ 21,804 1.0 % $ 200,249 9.9 % 1 segment revenue consists of lease revenues and fees , retail sales and non-retail sales . 2 segment revenue consists of franchise royalties and fees . year ended december 31 , 2013 versus year ended december 31 , 2012 sales and lease ownership . sales and lease ownership segment revenues increased $ 8.1 million to $ 2.076 billion due to a 3.9 % increase in lease revenues and fees , partially offset by a 13.3 % decrease in non-retail sales . lease revenues and fees within the sales and lease ownership segment increased due to a net addition of 118 company-operated stores since the beginning of 2012 and a .6 % increase in same store revenues . non-retail sales decreased primarily due to less demand for product by franchisees . homesmart . homesmart segment revenues increased $ 7.6 million to $ 62.8 million due to a 13.3 % increase in lease revenues and fees . lease revenues and fees within the homesmart segment increased due to a net addition of 10 homesmart stores since the beginning of 2012 and a 9.3 % increase in same store revenues . rimco .


 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 to accrual adjustments 2,100 2,591 ( 3,529 ) ( 491 ) ( 19.0 ) 6,120 173.4 total revenues from external customers $ 2,234,631 $ 2,212,827 $ 2,012,578 $ 21,804 1.0 % $ 200,249 9.9 % 1 segment revenue consists of lease revenues and fees , retail sales and non-retail sales . 2 segment revenue consists of franchise royalties and fees . year ended december 31 , 2013 versus year ended december 31 , 2012 sales and lease ownership . sales and lease ownership segment revenues increased $ 8.1 million to $ 2.076 billion due to a 3.9 % increase in lease revenues and fees , partially offset by a 13.3 % decrease in non-retail sales . lease revenues and fees within the sales and lease ownership segment increased due to a net addition of 118 company-operated stores since the beginning of 2012 and a .6 % increase in same store revenues . non-retail sales decreased primarily due to less demand for product by franchisees . homesmart . homesmart segment revenues increased $ 7.6 million to $ 62.8 million due to a 13.3 % increase in lease revenues and fees . lease revenues and fees within the homesmart segment increased due to a net addition of 10 homesmart stores since the beginning of 2012 and a 9.3 % increase in same store revenues . rimco .
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 Suspicious Activity Report : non-retail cost of sales primarily represents the cost of merchandise sold to our franchisees . operating expenses . operating expenses include personnel costs , selling costs , occupancy costs and delivery , among other expenses . legal and regulatory expense/ ( income ) . legal and regulatory expense relates to significant accruals for loss contingencies for pending legal and regulatory proceedings . legal and regulatory income results from significant reductions in previously accrued reserves . retirement and vacation charges . retirement and vacation charges represent costs primarily associated with the retirement of the company 's chief operating officer and a change in the company 's vacation policies in 2013 , as well as costs associated with the retirement of the company 's founder and former chairman of the board in 2012 . depreciation of lease merchandise . depreciation of lease merchandise reflects the expense associated with depreciating merchandise held for lease and leased to customers by our company-operated stores . other operating expense ( income ) , net . other operating expense ( income ) , net consists of gains or losses on sales of company-operated stores and delivery vehicles , impairment charges on assets held for sale and gains or losses on other dispositions of property , plant and equipment . critical accounting policies revenue recognition . lease revenues are recognized in the month they are due on the accrual basis of accounting . for internal management reporting purposes , lease revenues from sales and lease ownership agreements are recognized by the reportable segments as revenue in the month the cash is collected . on a monthly basis , we record an accrual for lease revenues due but not yet received , net of allowances , and a deferral of revenue for lease payments received prior to the month due . our revenue recognition accounting policy matches the lease revenue with the corresponding costs , mainly depreciation , associated with the lease merchandise . at december 31 , 2013 and 2012 , we had a revenue deferral representing cash collected in advance of being due or otherwise earned totaling $ 45.1 million and $ 45.3 million , respectively , and an accrued revenue receivable , net of allowance for doubtful accounts , based on historical collection rates of $ 7.9 million and $ 7.4 million , respectively . revenues from the sale of merchandise to franchisees are recognized at the time of receipt of the merchandise by the franchisee and revenues from such sales to other customers are recognized at the time of shipment . lease merchandise . our aaron 's sales & lease ownership and homesmart divisions depreciate merchandise over the applicable agreement period , generally 12 to 24 months ( monthly agreements ) or 60 to 120 weeks ( weekly agreements ) when leased , and 36 months when not leased , to 0 % salvage value . our policies generally require weekly lease merchandise counts at the stores and write-offs for unsalable , damaged , or missing merchandise inventories . full physical inventories are generally taken at our fulfillment and manufacturing facilities two to four times a year with appropriate provisions made for missing , damaged and unsalable merchandise . in addition , we monitor lease merchandise levels and mix by division , store and fulfillment center , as well as the average age of merchandise on hand . if unsalable lease merchandise can not be returned to vendors , its carrying value is adjusted to net realizable value or written off . all lease merchandise is available for lease and sale , excluding merchandise determined to be missing , damaged or unsalable . 25 we record lease merchandise carrying value adjustments on the allowance method , which estimates the merchandise losses incurred but not yet identified by management as of the end of the accounting period . lease merchandise adjustments totaled $ 58.0 million , $ 54.9 million and $ 46.2 million for the years ended december 31 , 2013 , 2012 , and 2011 , respectively . leases and closed store reserves . the majority of our company-operated stores are operated from leased facilities under operating lease agreements . the majority of the leases are for periods that do not exceed five years , although lease terms range in length up to approximately 15 years . leasehold improvements related to these leases are generally amortized over periods that do not exceed the lesser of the lease term or useful life . while some of our leases do not require escalating payments , for the leases which do contain such provisions we record the related lease expense on a straight-line basis over the lease term . we do not generally obtain significant amounts of lease incentives or allowances from landlords . any incentive or allowance amounts we receive are recognized ratably over the lease term . from time to time , we close or consolidate stores . our primary costs associated with closing stores are the future lease payments and related commitments . we record an estimate of the future obligation related to closed stores based upon the present value of the future lease payments and related commitments , net of estimated sublease income based upon historical experience . as of december 31 , 2013 and 2012 , our reserve for closed stores was $ 2.1 million and $ 2.8 million , respectively . due to changes in market conditions , our estimates related to sublease income may change and , as a result , our actual liability may be more or less than the recorded amount . excluding estimated sublease income , our future obligations related to closed stores on an undiscounted basis were $ 2.9 million and $ 4.1 million as of december 31 , 2013 and 2012 , respectively . insurance programs . we maintain insurance contracts to fund workers compensation , vehicle liability , general liability and group health insurance claims . story_separator_special_tag the company 's investment balance increased to $ 112.4 million at december 31 , 2013 from $ 85.9 million at december 31 , 2012 . the $ 26.5 million increase was primarily a result of purchases of investments , partially offset by scheduled maturities and calls of investments , during 2013 . lease merchandise , net . the decrease of $ 94.3 million in lease merchandise , net of accumulated depreciation , to $ 869.7 million at december 31 , 2013 from $ 964.1 million at december 31 , 2012 , is primarily the result of a net decrease of $ 79.1 million in the sales and lease ownership segment , $ 7.4 million in the homesmart segment and $ 7.8 million in the rimco segment due to the classification of the rimco net assets as held for sale at december 31 , 2013 . prepaid expenses and other assets . prepaid expenses and other assets decreased $ 22.0 million to $ 55.4 million at december 31 , 2013 from $ 77.4 million at december 31 , 2012 , primarily as a result of a $ 22.7 million decrease in the company 's income tax receivable . accrued regulatory expense . accrued regulatory expense increased to $ 28.4 million at december 31 , 2013 from zero at december 31 , 2012 and is related to a pending regulatory investigation by the california attorney general into the company 's leasing , marketing and privacy practices . deferred income taxes payable . the decrease of $ 36.8 million in deferred income taxes payable to $ 227.0 million at december 31 , 2013 from $ 263.7 million at december 31 , 2012 is primarily the result of the reversal of bonus depreciation deductions on lease merchandise included in the tax relief , unemployment reauthorization and job creation act of 2010. included in the deferred income tax payable as of december 31 , 2013 are a deferred tax asset of $ 60.2 million and a valuation allowance of $ 682,000 . the company has reserved the entire value of the canadian net operating loss as there is no expected taxable income to absorb the loss within that jurisdiction . with respect to all other deferred tax assets , the company believes it will have sufficient taxable income in future years to realize their benefit . liquidity and capital resources general cash flows from operations for the years ended december 31 , 2013 , 2012 and 2011 were $ 308.4 million , $ 59.8 million and $ 307.2 million , respectively . the $ 248.7 million increase in cash flows from operating activities during 2013 as compared to 2012 was due , in part , to a $ 41.7 million reduction in accrued litigation expense during 2012 resulting from the settlement of a lawsuit and $ 28.4 million in non-cash legal and regulatory expense during 2013 for loss contingencies related to the pending regulatory investigation by the california attorney general . the increase in cash flows from operating activities also includes a net $ 180.9 million decrease in lease merchandise , net of the effects of acquisitions and a $ 45.1 million increase related to the company 's income tax receivable . the change in income tax receivable is due to the american taxpayer relief act of 2012 enacted on january 2 , 2013 , which extended bonus depreciation on eligible inventory held during 2012 and 2013. in 2012 , the company made payments based on enacted law , resulting in an overpayment when the act was signed . purchases of sales and lease ownership stores had a positive impact on operating cash flows in each period presented . the positive impact on operating cash flows from purchasing stores occurs as the result of lease merchandise , other assets and intangibles acquired in these purchases being treated as an investing cash outflow . as such , the operating cash flows attributable to the newly purchased stores usually have an initial positive effect on operating cash flows that may not be indicative of the extent of their contributions in future periods . the amount of lease merchandise purchased in acquisitions and shown under investing activities , was $ 4.0 million in 2013 , $ 11.9 million in 2012 and $ 13.4 million in 2011 . sales of company-operated stores are an additional source of investing cash flows in each period presented . proceeds from such sales were $ 2.2 million in 2013 , $ 2.0 million in 2012 and $ 7.3 million in 2011 . the amount of lease merchandise sold in these sales and shown under investing activities was $ 882,000 in 2013 , $ 1.4 million in 2012 and $ 8.9 million in 2011 . 32 our primary capital requirements consist of buying lease merchandise for sales and lease ownership stores . as we continue to grow , the need for additional lease merchandise is expected to remain our major capital requirement . other capital requirements include purchases of property , plant and equipment and expenditures for acquisitions and income tax payments . these capital requirements historically have been financed through : cash flow from operations ; trade credit with vendors ; proceeds from the sale of lease return merchandise ; bank credit ; private debt offerings ; and stock offerings . debt financing at december 31 , 2013 , there was no outstanding balance under our revolving credit agreement . our revolving credit facility expires december 13 , 2017 and the total available credit under the facility as of december 31 , 2013 is $ 140.0 million . as of december 31 , 2013 , the company had outstanding $ 125.0 million in senior unsecured notes , originally issued to several insurance companies in a private placement in july 2011. the notes bear interest at the rate of 3.75 % per year and mature on april 27 , 2018. payments of interest are due quarterly , commencing july 27 , 2011 , with

