on november 20 , 2019 , we executed a definitive agreement to sell our medical aesthetics business for a sales price of $ 205 million in cash subject to certain closing adjustments . net of these adjustments , we expect net proceeds of approximately $ 138 million . we expect this disposition to be completed around the end of calendar year 2019. the definitive agreement contains representations and warranties and covenants customary for a transaction of this nature , and the completion of the sale is subject to customary closing conditions , including , among others , the expiration or termination of the applicable waiting period under the hart-scott-rodino antitrust improvements act of 1976 , as amended , and certain other competition and regulatory approvals . the definitive agreement also contains certain termination rights for us and the purchaser , including , among other events , ( i ) if the transaction has not been completed on or prior to march 18 , 2020 , ( ii ) following a breach by the other party that would cause a closing condition not to be satisfied and is not or can not be cured within 60 days ' notice of that breach or ( ii ) if there is any law , injunction or other judgment permanently prohibiting the transaction . we can not assure that we will be able to complete this transaction on a timely basis . our gyn surgical products include our novasure endometrial ablation system , or novasure , and our myosure hysteroscopic tissue removal system , or myosure , as well as our fluent fluid management system , or fluent . the novasure portfolio is comprised of the novasure classic and novasure advanced devices and involves a trans-cervical procedure for the treatment of abnormal uterine bleeding . the myosure suite of devices offers four options to provide incision-less removal of fibroids , polyps , and other pathology within the uterus . the fluent system is a fluid management system that provides liquid distention during diagnostic and operative hysteroscopic procedures . 37 our skeletal health segment 's products includes the horizon dxa , a dual energy x-ray s ystem , which evaluates bone density and performs body composition assessments , and the fluoroscan insight fd mini c-arm , which assists in performing minimally invasive orthopedic surgical procedures on a patient 's extremities , such as the hand , wrist , knee , foot , and ankle . unless the context otherwise requires , references to we , us , hologic or our company refer to hologic , inc. and its consolidated subsidiaries . acquisitions and dispositions cynosure , inc. on march 22 , 2017 , we completed the acquisition of cynosure pursuant to which we acquired all of the outstanding shares of cynosure . the acquisition was funded through available cash , and the total purchase price was $ 1.66 billion . the allocation of the purchase price was based on estimates of the fair value of assets acquired and liabilities assumed as of march 22 , 2017. as part of the purchase price allocation , we determined the identifiable intangible assets were developed technology of $ 736.0 million , in-process research and development of $ 107.0 million , trade names of $ 74.0 million , a distribution agreement of $ 42.0 million and customer relationships of $ 35.0 million . the fair values of the intangible assets were estimated using the income approach , specifically the excess earning method and relief from royalty method , and the cash flow projections were discounted using rates ranging from 11 % to 12 % . the cash flows were based on estimates used to price the transaction , and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model and the weighted average cost of capital . the developed technology assets comprised know-how , patents and technologies embedded in cynosure 's products and relate to currently marketed products . in-process research and development projects related to in-process projects that have not reached technological feasibility as of the acquisition date and have no alternative future use . the primary basis for determining technological feasibility of these projects is obtaining regulatory approval to market the underlying product or expected commercial release depending on the project . we recorded $ 107.0 million of in-process research and development assets related to three projects , which were expected to be completed during fiscal 2018 and 2019 with a preliminary cost to complete of approximately $ 18.0 million . all of the in-process research and development assets were valued using the multiple-period excess earnings method approach using discount rates ranging from 14 % to 22 % . during the fourth quarter of fiscal 2017 , we obtained regulatory approval for two projects with an aggregate fair value of $ 61.0 million and these assets were reclassified to developed technology . the remaining project , which had an initial fair value of $ 46.0 million , was abandoned in the second quarter of fiscal 2018 due to unsuccessful clinical results . as a result , the company recorded a $ 46.0 million impairment charge in the second quarter of fiscal 2018. the calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill . the factors contributing to the recognition of the amount of goodwill were based on several strategic and synergistic benefits that were expected to be realized from the cynosure acquisition . these benefits included the expectation that our entry into the aesthetics market would significantly broaden our offering in women 's health . the combined company was expected to benefit from a broader global presence , synergistic utilization of hologic 's direct sales force , primarily its gyn surgical sales force , with certain cynosure products and entry into an adjacent , cash-pay segment . story_separator_special_tag the increases in costs as a percentage of revenue were partially offset by higher domestic sales volume of the higher margin 3dimensions system sales and increased sales of the higher margin workflow products , consisting of intelligent 2d , clarity hd , and smartcurve upgrades . medical aesthetics ' product costs as a percentage of revenue decreased in fiscal 2019 compared to fiscal 2018 primarily due to fiscal 2018 including a $ 6.8 million revenue reserve recorded in the fourth quarter of fiscal 2018 for the voluntary tempsure vitalia recall in response to the fda letter and related inventory charges in fiscal 2018. this was partially offset by lower sales volume , unfavorable product mix as we sold fewer units of our higher margin sculpsure laser and related pac keys and monalisa touch device , unfavorable manufacturing variances , increased inventory reserves and tariff costs in china . gyn surgical 's product costs as a percentage of revenue decreased slightly in fiscal 2019 compared to fiscal 2018 primarily due to favorable manufacturing variances from overall increased volumes . product costs were relatively consistent in fiscal 2019 compared to fiscal 2018. while there is a continued mix shift to the lower margin myosure products from novasure comprising a higher percentage of gyn surgical product sales and increased sales of fluent , this trend was offset by an increase in sales volume in fiscal 2019 for the higher margin novasure advanced device compared to the classic device . skeletal health 's product costs as a percentage of revenue were relatively consistent in fiscal 2019 compared to fiscal 2018 . amortization of intangible assets . amortization of intangible assets included in cost of product revenues relates to acquired developed technology , which is generally amortized over its estimated useful life of between 5 and 15 years using a straight-line method or , if reliably determinable , based on the pattern in which the economic benefits of the assets are expected to be consumed . amortization expense decreased in fiscal 2019 compared to fiscal 2018 primarily due to lower amortization from intangible assets acquired in the cynosure acquisition which were written down in the second quarter of fiscal 2019 ( partially offset by shortening the remaining life of certain assets ) and lower amortization of intangible assets acquired in the cytyc acquisition which reduce over time . these decreases were partially offset by combined amortization expense related to intangible assets acquired in the faxitron and focal acquisitions of $ 12.9 million in the fiscal 2019. impairment of intangible assets and equipment . during fiscal 2019 , we identified indicators of impairment for our medical aesthetics reporting unit as a result of reductions in forecasts during the year , and in connection with our efforts to sell the business that began prior to the end of fiscal 2019 as described above . as a result of these indicators of impairment , we recorded total impairment charges of $ 685.4 million in fiscal 2019. the impairment charge was allocated to developed technology for $ 576.9 million and equipment assets for $ 1.8 million , which is included in cost of revenues . in the first quarter of fiscal 2020 , this asset group will meet the assets held-for-sale criteria and will be recorded at fair value less the costs to sell , which could result in additional charges . cost of service and other revenues . replace_table_token_7_th service and other revenues gross margin was 41.2 % in fiscal 2019 compared to 45.1 % in fiscal 2018 . the decrease in gross margin is primarily due to an increase in costs in breast health to repair digital mammography systems under service contracts , including an increase in spare parts revenue with unfavorable margins , increased departmental spend and higher 44 freight costs , and increased field service costs in medical aesthetics . in fiscal 2019 , the reduced gross margin was partially offset by an increase in breast health license revenue , which has a higher gross margin . operating expenses . replace_table_token_8_th research and development expenses . research and development expenses increased 6.2 % in fiscal 2019 compared to fiscal 2018 primarily due to a $ 4.5 million charge related to the purchase of intellectual property in the third quarter of fiscal 2019 , higher compensation expense in breast health due to increased headcount and the inclusion of expenses from the faxitron and focal acquisitions contributing a $ 4.8 million increase , and an increase in consulting spend , partially offset by a decrease in project spend and a reduction in diagnostics from lower headcount . at any point in time , we have a number of different research projects and clinical trials being conducted and the timing of these projects and related costs can vary from period to period . selling and marketing expenses . selling and marketing expenses increased 3.7 % in fiscal 2019 compared to fiscal 2018 primarily due to expenses attributable to the faxitron and focal acquisitions contributing a $ 19.7 million increase in fiscal 2019 , increased sales personnel headcount in surgical , increased marketing initiatives in diagnostic , and higher travel partially offset by lower medical aesthetics expenses primarily due to lower compensation expense as a result of lower headcount , and a reduction in marketing initiatives spend and trade shows . general and administrative expenses . general and administrative expenses decreased 9.2 % in fiscal 2019 compared to fiscal 2018 primarily due to the inclusion in fiscal 2018 of a $ 34.8 million legal settlement charge related to the smith & nephew patent infringement lawsuit related regarding our myosure system . excluding the impact of the smith & nephew settlement , general and administrative expenses were consistent in fiscal 2019 compared to fiscal 2018. fiscal 2019 included higher compensation and benefits due to increased headcount and improved results , higher facility and infrastructure costs , increased acquisition and transactional related expenses including contingent consideration , and an increase in

liquidity and capital resources at september 28 , 2019 , we had working capital of $ 723.0 million , and our cash and cash equivalents totaled $ 601.8 million . our cash and cash equivalents balance decreased by $ 64.9 million during fiscal 2019 principally due to cash used in financing and investing activities related to net repayments of debt , repurchases of common stock and net cash paid for acquisitions , partially offset by cash generated through cash flow from our core operating activities . in fiscal 2019 , our operating activities provided us with $ 649.5 million of cash . we incurred a net loss of $ 203.6 million which was offset by non-cash intangible asset and equipment impairment charges aggregating $ 685.4 million , non-cash charges for depreciation and amortization aggregating $ 463.1 million , stock-based compensation expense of $ 62.0 , and non-cash interest expense of $ 8.6 million related to our outstanding debt . these adjustments to net loss were partially offset by a decrease in net deferred tax liabilities of $ 235.7 million primarily from the impairment of intangible assets and to a lesser extent amortization of intangible assets . cash provided by operations included a net cash outflow of $ 156.3 million from changes in our operating assets and liabilities .


 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 at september 28 , 2019 , we had working capital of $ 723.0 million , and our cash and cash equivalents totaled $ 601.8 million . our cash and cash equivalents balance decreased by $ 64.9 million during fiscal 2019 principally due to cash used in financing and investing activities related to net repayments of debt , repurchases of common stock and net cash paid for acquisitions , partially offset by cash generated through cash flow from our core operating activities . in fiscal 2019 , our operating activities provided us with $ 649.5 million of cash . we incurred a net loss of $ 203.6 million which was offset by non-cash intangible asset and equipment impairment charges aggregating $ 685.4 million , non-cash charges for depreciation and amortization aggregating $ 463.1 million , stock-based compensation expense of $ 62.0 , and non-cash interest expense of $ 8.6 million related to our outstanding debt . these adjustments to net loss were partially offset by a decrease in net deferred tax liabilities of $ 235.7 million primarily from the impairment of intangible assets and to a lesser extent amortization of intangible assets . cash provided by operations included a net cash outflow of $ 156.3 million from changes in our operating assets and liabilities .
```    
 Suspicious Activity Report : on november 20 , 2019 , we executed a definitive agreement to sell our medical aesthetics business for a sales price of $ 205 million in cash subject to certain closing adjustments . net of these adjustments , we expect net proceeds of approximately $ 138 million . we expect this disposition to be completed around the end of calendar year 2019. the definitive agreement contains representations and warranties and covenants customary for a transaction of this nature , and the completion of the sale is subject to customary closing conditions , including , among others , the expiration or termination of the applicable waiting period under the hart-scott-rodino antitrust improvements act of 1976 , as amended , and certain other competition and regulatory approvals . the definitive agreement also contains certain termination rights for us and the purchaser , including , among other events , ( i ) if the transaction has not been completed on or prior to march 18 , 2020 , ( ii ) following a breach by the other party that would cause a closing condition not to be satisfied and is not or can not be cured within 60 days ' notice of that breach or ( ii ) if there is any law , injunction or other judgment permanently prohibiting the transaction . we can not assure that we will be able to complete this transaction on a timely basis . our gyn surgical products include our novasure endometrial ablation system , or novasure , and our myosure hysteroscopic tissue removal system , or myosure , as well as our fluent fluid management system , or fluent . the novasure portfolio is comprised of the novasure classic and novasure advanced devices and involves a trans-cervical procedure for the treatment of abnormal uterine bleeding . the myosure suite of devices offers four options to provide incision-less removal of fibroids , polyps , and other pathology within the uterus . the fluent system is a fluid management system that provides liquid distention during diagnostic and operative hysteroscopic procedures . 37 our skeletal health segment 's products includes the horizon dxa , a dual energy x-ray s ystem , which evaluates bone density and performs body composition assessments , and the fluoroscan insight fd mini c-arm , which assists in performing minimally invasive orthopedic surgical procedures on a patient 's extremities , such as the hand , wrist , knee , foot , and ankle . unless the context otherwise requires , references to we , us , hologic or our company refer to hologic , inc. and its consolidated subsidiaries . acquisitions and dispositions cynosure , inc. on march 22 , 2017 , we completed the acquisition of cynosure pursuant to which we acquired all of the outstanding shares of cynosure . the acquisition was funded through available cash , and the total purchase price was $ 1.66 billion . the allocation of the purchase price was based on estimates of the fair value of assets acquired and liabilities assumed as of march 22 , 2017. as part of the purchase price allocation , we determined the identifiable intangible assets were developed technology of $ 736.0 million , in-process research and development of $ 107.0 million , trade names of $ 74.0 million , a distribution agreement of $ 42.0 million and customer relationships of $ 35.0 million . the fair values of the intangible assets were estimated using the income approach , specifically the excess earning method and relief from royalty method , and the cash flow projections were discounted using rates ranging from 11 % to 12 % . the cash flows were based on estimates used to price the transaction , and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model and the weighted average cost of capital . the developed technology assets comprised know-how , patents and technologies embedded in cynosure 's products and relate to currently marketed products . in-process research and development projects related to in-process projects that have not reached technological feasibility as of the acquisition date and have no alternative future use . the primary basis for determining technological feasibility of these projects is obtaining regulatory approval to market the underlying product or expected commercial release depending on the project . we recorded $ 107.0 million of in-process research and development assets related to three projects , which were expected to be completed during fiscal 2018 and 2019 with a preliminary cost to complete of approximately $ 18.0 million . all of the in-process research and development assets were valued using the multiple-period excess earnings method approach using discount rates ranging from 14 % to 22 % . during the fourth quarter of fiscal 2017 , we obtained regulatory approval for two projects with an aggregate fair value of $ 61.0 million and these assets were reclassified to developed technology . the remaining project , which had an initial fair value of $ 46.0 million , was abandoned in the second quarter of fiscal 2018 due to unsuccessful clinical results . as a result , the company recorded a $ 46.0 million impairment charge in the second quarter of fiscal 2018. the calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill . the factors contributing to the recognition of the amount of goodwill were based on several strategic and synergistic benefits that were expected to be realized from the cynosure acquisition . these benefits included the expectation that our entry into the aesthetics market would significantly broaden our offering in women 's health . the combined company was expected to benefit from a broader global presence , synergistic utilization of hologic 's direct sales force , primarily its gyn surgical sales force , with certain cynosure products and entry into an adjacent , cash-pay segment . story_separator_special_tag the increases in costs as a percentage of revenue were partially offset by higher domestic sales volume of the higher margin 3dimensions system sales and increased sales of the higher margin workflow products , consisting of intelligent 2d , clarity hd , and smartcurve upgrades . medical aesthetics ' product costs as a percentage of revenue decreased in fiscal 2019 compared to fiscal 2018 primarily due to fiscal 2018 including a $ 6.8 million revenue reserve recorded in the fourth quarter of fiscal 2018 for the voluntary tempsure vitalia recall in response to the fda letter and related inventory charges in fiscal 2018. this was partially offset by lower sales volume , unfavorable product mix as we sold fewer units of our higher margin sculpsure laser and related pac keys and monalisa touch device , unfavorable manufacturing variances , increased inventory reserves and tariff costs in china . gyn surgical 's product costs as a percentage of revenue decreased slightly in fiscal 2019 compared to fiscal 2018 primarily due to favorable manufacturing variances from overall increased volumes . product costs were relatively consistent in fiscal 2019 compared to fiscal 2018. while there is a continued mix shift to the lower margin myosure products from novasure comprising a higher percentage of gyn surgical product sales and increased sales of fluent , this trend was offset by an increase in sales volume in fiscal 2019 for the higher margin novasure advanced device compared to the classic device . skeletal health 's product costs as a percentage of revenue were relatively consistent in fiscal 2019 compared to fiscal 2018 . amortization of intangible assets . amortization of intangible assets included in cost of product revenues relates to acquired developed technology , which is generally amortized over its estimated useful life of between 5 and 15 years using a straight-line method or , if reliably determinable , based on the pattern in which the economic benefits of the assets are expected to be consumed . amortization expense decreased in fiscal 2019 compared to fiscal 2018 primarily due to lower amortization from intangible assets acquired in the cynosure acquisition which were written down in the second quarter of fiscal 2019 ( partially offset by shortening the remaining life of certain assets ) and lower amortization of intangible assets acquired in the cytyc acquisition which reduce over time . these decreases were partially offset by combined amortization expense related to intangible assets acquired in the faxitron and focal acquisitions of $ 12.9 million in the fiscal 2019. impairment of intangible assets and equipment . during fiscal 2019 , we identified indicators of impairment for our medical aesthetics reporting unit as a result of reductions in forecasts during the year , and in connection with our efforts to sell the business that began prior to the end of fiscal 2019 as described above . as a result of these indicators of impairment , we recorded total impairment charges of $ 685.4 million in fiscal 2019. the impairment charge was allocated to developed technology for $ 576.9 million and equipment assets for $ 1.8 million , which is included in cost of revenues . in the first quarter of fiscal 2020 , this asset group will meet the assets held-for-sale criteria and will be recorded at fair value less the costs to sell , which could result in additional charges . cost of service and other revenues . replace_table_token_7_th service and other revenues gross margin was 41.2 % in fiscal 2019 compared to 45.1 % in fiscal 2018 . the decrease in gross margin is primarily due to an increase in costs in breast health to repair digital mammography systems under service contracts , including an increase in spare parts revenue with unfavorable margins , increased departmental spend and higher 44 freight costs , and increased field service costs in medical aesthetics . in fiscal 2019 , the reduced gross margin was partially offset by an increase in breast health license revenue , which has a higher gross margin . operating expenses . replace_table_token_8_th research and development expenses . research and development expenses increased 6.2 % in fiscal 2019 compared to fiscal 2018 primarily due to a $ 4.5 million charge related to the purchase of intellectual property in the third quarter of fiscal 2019 , higher compensation expense in breast health due to increased headcount and the inclusion of expenses from the faxitron and focal acquisitions contributing a $ 4.8 million increase , and an increase in consulting spend , partially offset by a decrease in project spend and a reduction in diagnostics from lower headcount . at any point in time , we have a number of different research projects and clinical trials being conducted and the timing of these projects and related costs can vary from period to period . selling and marketing expenses . selling and marketing expenses increased 3.7 % in fiscal 2019 compared to fiscal 2018 primarily due to expenses attributable to the faxitron and focal acquisitions contributing a $ 19.7 million increase in fiscal 2019 , increased sales personnel headcount in surgical , increased marketing initiatives in diagnostic , and higher travel partially offset by lower medical aesthetics expenses primarily due to lower compensation expense as a result of lower headcount , and a reduction in marketing initiatives spend and trade shows . general and administrative expenses . general and administrative expenses decreased 9.2 % in fiscal 2019 compared to fiscal 2018 primarily due to the inclusion in fiscal 2018 of a $ 34.8 million legal settlement charge related to the smith & nephew patent infringement lawsuit related regarding our myosure system . excluding the impact of the smith & nephew settlement , general and administrative expenses were consistent in fiscal 2019 compared to fiscal 2018. fiscal 2019 included higher compensation and benefits due to increased headcount and improved results , higher facility and infrastructure costs , increased acquisition and transactional related expenses including contingent consideration , and an increase in

