we take a disciplined approach to acquisitions : we look for companies that are highly scalable and are a good strategic fit with our core competency . when we acquire a company , we seek to integrate it with our operations and scale it up by adding salespeople . we integrate the acquired operations with our technology platform , which connects them to our broader organization , and we give them access to our shared carrier pool . we gain more carriers , customers , lane histories and pricing histories with each acquisition , and in some cases an acquisition adds complementary services . 31 we use these resources company-wide to buy transportation more efficiently and to cross-sell a more complete supply chain solution to customers . since the beginning of 2012 , we have developed an active pipeline of targets . in 2012 , we completed the acquisition of four non-asset third party logistics companies . we acquired another six companies in 2013 , including 3pd , the largest non-asset , third party provider of heavy goods , last-mile logistics in north america , and nlm , the largest provider of web-based expedited transportation management in north america . on january 5 , 2014 , we agreed to acquire pacer international , inc. , a tennessee corporation ( pacer ) , the third largest provider of intermodal transportation services in north america . we plan to continue to acquire quality companies that fit our strategy for growth . cold-starts . we believe that cold-starts can generate high returns on invested capital because of the relatively low investment required and the large component of variable-based incentive compensation . we are currently ramping up 23 cold-starts : 10 in freight brokerage , 12 in freight forwarding and one in expedited transportation . we seek to locate our freight brokerage cold-starts in prime areas for sales recruitment . we plan to continue to open cold-start locations where we see the potential for strong returns . pending acquisition of pacer international on january 5 , 2014 , xpo entered into a definitive agreement and plan of merger ( the merger agreement ) with pacer international , inc. , a tennessee corporation ( pacer ) , and acquisition sub , inc. , a tennessee corporation and a wholly owned subsidiary of xpo ( merger subsidiary ) , providing for the acquisition of pacer by xpo . pursuant to the terms of merger agreement , merger subsidiary will be merged with and into pacer ( the merger ) , with pacer continuing as the surviving corporation and an indirect wholly owned subsidiary of xpo . pursuant to the terms of the merger agreement and subject to the conditions thereof , at the effective time of the merger , each outstanding share of common stock of pacer , par value $ 0.01 per share ( the pacer common stock ) , other than shares of pacer common stock held by pacer , xpo , merger subsidiary or their respective subsidiaries , will be converted into the right to receive ( 1 ) $ 6.00 in cash and ( 2 ) subject to the limitations in the following sentence , a fraction ( the exchange ratio ) of a share of xpo common stock , par value $ 0.001 per share ( the xpo common stock ) , equal to $ 3.00 divided by the volume-weighted average price per share of xpo common stock for the last 10 trading days prior to the closing date ( such average , the vwap ,  and , such cash and stock consideration together , the merger consideration ) . for the purpose of calculating the exchange ratio , the vwap may not be less than $ 23.12 per share or greater than $ 32.94 per share . if the vwap for purposes of the exchange ratio calculation is less than or equal to $ 23.12 per share , then the exchange ratio will be fixed at 0.1298 of a share of xpo common stock . if the vwap for purposes of the exchange ratio calculation is greater than or equal to $ 32.94 per share , then the exchange ratio will be fixed at 0.0911 of a share of xpo common stock . the completion of the merger is subject to customary closing conditions , including approval of the merger by the holders of a majority of the outstanding shares of pacer common stock . xpo 's and merger subsidiary 's obligations to consummate the merger are not subject to any condition related to the availability of financing . revolving loan credit agreement on october 18 , 2013 , we and certain of our wholly-owned subsidiaries , as borrowers , entered into a $ 125.0 million multicurrency secured revolving loan credit agreement ( the credit agreement ) with the lender parties thereto and morgan stanley senior funding , inc. , as administrative agent for such lenders , with a maturity of five years . 32 the proceeds of the credit agreement may be used by us for ongoing working capital needs and other general corporate purposes , including strategic acquisitions . borrowings under the credit agreement bear interest at a per annum rate equal to , at our option , the one , two , three or six month ( or such other period less than one month or greater than six months as the lenders may agree ) libor rate plus a margin of 1.75 % to 2.25 % , or a base rate plus a margin of 0.75 % to 1.25 % . we are required to pay an undrawn commitment fee equal to 0.25 % or 0.375 % of the quarterly average undrawn portion of the commitments under the credit agreement , as well as customary letter of credit fees . the margin added to libor , or base rate , will depend on the quarterly average availability of the commitments under the credit agreement . story_separator_special_tag sg & a expense increased 539.1 % to $ 21.7 million in 2012 from $ 3.4 million in 2011. the increase in sg & a expense was associated with the addition of turbo , kelron , continental and birddog , as well as investments in sales force recruitment and the opening of new offices . our freight brokerage operations generated an operating loss of $ 5.6 million in 2012 compared to operating income of $ 1.3 million in 2011. the reduction in operating income was attributable to the increase in sg & a expense and the lower gross margin percentage associated with our cold-start sales offices . expedited transportation statement of operations data for the year ended december 31 , ( in thousands ) replace_table_token_6_th note : total depreciation and amortization for the expedited transportation operating segment , included in both direct expense and sg & a , was $ 1.4 million , $ 0.5 million and $ 0.6 million , for the years ended december 31 , 2013 , 2012 and 2011 , respectively . expedited transportation year ended december 31 , 2013 compared to year ended december 31 , 2012 revenue in our expedited transportation segment increased 8.3 % to $ 101.8 million in 2013 from $ 94.0 million in 2012. this growth was driven by the acquisition of east coast air charter on february 8 , 2013 partially offset by a decline in the rest of our over-the-road expedited business . 38 direct expenses consist primarily of payments to independent owner operators and contract carriers for ground transportation and air charter services , insurance and truck leasing expense . expedited transportation gross margin dollars increased 1.7 % to $ 17.2 million in 2013 from $ 16.9 million in 2012. as a percentage of revenue , expedited transportation gross margin was 16.8 % in 2013 , compared to 17.9 % in 2012. the decrease in gross margin as a percentage of revenue primarily reflects a soft expedited freight environment in the first half of the year as well as the addition of expedited air charter revenue from the 2013 acquisition of east coast air charter ; air charter services typically generate higher gross revenue but lower gross margin percentage than our over-the-road expedited business . sg & a expense increased 18.9 % to $ 12.0 million in 2013 from $ 10.1 million in 2012. the increase was due to the addition of east coast air charter , particularly intangible amortization associated with the acquisition . as a percentage of revenue , sg & a expense increased to 11.7 % in 2013 compared to 10.7 % in 2012. operating income decreased to $ 5.2 million in 2013 compared to $ 6.8 million in 2012. the decrease in operating income was primarily related to the decrease in gross margin as a percent of revenue , as described above . management 's growth strategy for our expedited transportation segment is based on : targeted investments to expand the sales and service workforce , in order to capture key opportunities in specialized areas ( e.g . , cross-border , refrigeration and air charter ) ; an increased focus on carrier recruitment and retention , as well as improved utilization of the current carrier fleet ; technology upgrades to improve efficiency in sales and carrier procurement ; selective acquisitions of non-asset based expedited businesses that would benefit from our scale and potential access to capital ; and cross-selling of expedited transportation services to customers of our other business segments . year ended december 31 , 2012 compared to year ended december 31 , 2011 revenue in our expedited transportation segment increased 7.4 % to $ 94.0 million in 2012 from $ 87.6 million in 2011. this growth was driven by an increase in temperature control and international revenue as well as an increase in air charter revenue related to a customer project completed in the first quarter of 2012. expedited transportation gross margin dollars decreased 7.6 % to $ 16.9 million in 2012 from $ 18.3 million in 2011. as a percentage of revenue , expedited transportation gross margin was 17.9 % in 2012 , compared to 20.9 % in 2011. the decrease in gross margin as a percentage of revenue primarily reflects higher rates paid to independent fleet owners and owner-operators , effective march 1 , 2012 , and an increase in costs associated with fleet recruiting initiatives . sg & a expense remained flat at $ 10.1 million in 2012 compared to 2011. as a percentage of revenue , sg & a expense decreased to 10.7 % in 2012 compared to 11.5 % in 2011. operating income decreased to $ 6.8 million in 2012 compared to $ 8.2 million in 2011. the decrease in operating income was primarily related to the decrease in gross margin as a percent of revenue and an increase in sg & a , as described above . 39 freight forwarding statement of operations data for the year ended december 31 , ( in thousands ) replace_table_token_7_th freight forwarding year ended december 31 , 2013 compared to year ended december 31 , 2012 revenue in our freight forwarding segment increased 8.1 % to $ 73.2 million in 2013 from $ 67.7 million in 2012. the increase was primarily the result of the opening of new freight forwarding locations . direct expense consists primarily of payments for purchased transportation and commissions paid to freight forwarding 's independently-owned stations . freight forwarding 's gross margin dollars increased 31.1 % to $ 10.2 million in 2013 from $ 7.8 million in 2012. as a percentage of revenue , freight forwarding gross margin increased to 14.0 % in 2013 as compared to 11.5 % in 2012. the increase in gross margin percentage was primarily driven by branch conversions from independent ownership to company ownership . sg & a expense increased 67.7 % to $ 11.2 million in 2013 from $ 6.7 million in 2012. as a percentage of revenue , sg

cash flow during 2013 , $ 66.3 million was used in cash from operations compared to $ 24.3 million used for 2012 and $ 6.6 million generated for 2011. the primary use of cash for the period was payment of transportation services and various sg & a expenses . cash generated from revenue equaled $ 665.3 million for 2013 as compared to $ 264.8 million for 2012 and $ 178.7 million for 2011 and correlates directly with the revenue increase between the periods . cash flow increases are related primarily to volume increases between the periods ended december 31 , 2013 , 2012 and 2011. cash used for payment of transportation services for 2013 equaled $ 585.1 million as compared to $ 223.0 million for 2012 and $ 148.3 million for 2011. the increase in cash outflows between the periods also directly correlates to the increase in revenues between the periods ended december 31 , 2013 , 2012 and 2011. other operating uses of cash included sg & a items , which equaled $ 134.4 million , $ 67.2 million and $ 23.4 million for the years ended december 31 , 2013 , 2012 and 2011 , respectively . payroll represents the most significant sg & a item . for 2013 , cash used for payroll equaled $ 74.9 million as compared to $ 31.3 million for 2012 and $ 13.6 million for 2011 . 42 investing activities used approximately $ 470.3 million for 2013 compared to a use of $ 64.2 million and $ 0.7 million from these activities for 2012 and 2011 , respectively . during 2013 , $ 458.8 million was used in acquisitions and $ 11.6 million was used to purchase fixed assets while $ 0.1 million was provided by other investing activities . during 2012 , $ 57.2 million was used for acquisitions and $ 7.0 million was used to purchase fixed assets while during 2011 $ 0.7 million was used to purchase fixed assets . financing activities generated approximately $ 305.8 million for 2013 compared to $ 266.8 million and $ 67.6 million generated for 2012 and 2011 , respectively .


 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 flow during 2013 , $ 66.3 million was used in cash from operations compared to $ 24.3 million used for 2012 and $ 6.6 million generated for 2011. the primary use of cash for the period was payment of transportation services and various sg & a expenses . cash generated from revenue equaled $ 665.3 million for 2013 as compared to $ 264.8 million for 2012 and $ 178.7 million for 2011 and correlates directly with the revenue increase between the periods . cash flow increases are related primarily to volume increases between the periods ended december 31 , 2013 , 2012 and 2011. cash used for payment of transportation services for 2013 equaled $ 585.1 million as compared to $ 223.0 million for 2012 and $ 148.3 million for 2011. the increase in cash outflows between the periods also directly correlates to the increase in revenues between the periods ended december 31 , 2013 , 2012 and 2011. other operating uses of cash included sg & a items , which equaled $ 134.4 million , $ 67.2 million and $ 23.4 million for the years ended december 31 , 2013 , 2012 and 2011 , respectively . payroll represents the most significant sg & a item . for 2013 , cash used for payroll equaled $ 74.9 million as compared to $ 31.3 million for 2012 and $ 13.6 million for 2011 . 42 investing activities used approximately $ 470.3 million for 2013 compared to a use of $ 64.2 million and $ 0.7 million from these activities for 2012 and 2011 , respectively . during 2013 , $ 458.8 million was used in acquisitions and $ 11.6 million was used to purchase fixed assets while $ 0.1 million was provided by other investing activities . during 2012 , $ 57.2 million was used for acquisitions and $ 7.0 million was used to purchase fixed assets while during 2011 $ 0.7 million was used to purchase fixed assets . financing activities generated approximately $ 305.8 million for 2013 compared to $ 266.8 million and $ 67.6 million generated for 2012 and 2011 , respectively .
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 Suspicious Activity Report : we take a disciplined approach to acquisitions : we look for companies that are highly scalable and are a good strategic fit with our core competency . when we acquire a company , we seek to integrate it with our operations and scale it up by adding salespeople . we integrate the acquired operations with our technology platform , which connects them to our broader organization , and we give them access to our shared carrier pool . we gain more carriers , customers , lane histories and pricing histories with each acquisition , and in some cases an acquisition adds complementary services . 31 we use these resources company-wide to buy transportation more efficiently and to cross-sell a more complete supply chain solution to customers . since the beginning of 2012 , we have developed an active pipeline of targets . in 2012 , we completed the acquisition of four non-asset third party logistics companies . we acquired another six companies in 2013 , including 3pd , the largest non-asset , third party provider of heavy goods , last-mile logistics in north america , and nlm , the largest provider of web-based expedited transportation management in north america . on january 5 , 2014 , we agreed to acquire pacer international , inc. , a tennessee corporation ( pacer ) , the third largest provider of intermodal transportation services in north america . we plan to continue to acquire quality companies that fit our strategy for growth . cold-starts . we believe that cold-starts can generate high returns on invested capital because of the relatively low investment required and the large component of variable-based incentive compensation . we are currently ramping up 23 cold-starts : 10 in freight brokerage , 12 in freight forwarding and one in expedited transportation . we seek to locate our freight brokerage cold-starts in prime areas for sales recruitment . we plan to continue to open cold-start locations where we see the potential for strong returns . pending acquisition of pacer international on january 5 , 2014 , xpo entered into a definitive agreement and plan of merger ( the merger agreement ) with pacer international , inc. , a tennessee corporation ( pacer ) , and acquisition sub , inc. , a tennessee corporation and a wholly owned subsidiary of xpo ( merger subsidiary ) , providing for the acquisition of pacer by xpo . pursuant to the terms of merger agreement , merger subsidiary will be merged with and into pacer ( the merger ) , with pacer continuing as the surviving corporation and an indirect wholly owned subsidiary of xpo . pursuant to the terms of the merger agreement and subject to the conditions thereof , at the effective time of the merger , each outstanding share of common stock of pacer , par value $ 0.01 per share ( the pacer common stock ) , other than shares of pacer common stock held by pacer , xpo , merger subsidiary or their respective subsidiaries , will be converted into the right to receive ( 1 ) $ 6.00 in cash and ( 2 ) subject to the limitations in the following sentence , a fraction ( the exchange ratio ) of a share of xpo common stock , par value $ 0.001 per share ( the xpo common stock ) , equal to $ 3.00 divided by the volume-weighted average price per share of xpo common stock for the last 10 trading days prior to the closing date ( such average , the vwap ,  and , such cash and stock consideration together , the merger consideration ) . for the purpose of calculating the exchange ratio , the vwap may not be less than $ 23.12 per share or greater than $ 32.94 per share . if the vwap for purposes of the exchange ratio calculation is less than or equal to $ 23.12 per share , then the exchange ratio will be fixed at 0.1298 of a share of xpo common stock . if the vwap for purposes of the exchange ratio calculation is greater than or equal to $ 32.94 per share , then the exchange ratio will be fixed at 0.0911 of a share of xpo common stock . the completion of the merger is subject to customary closing conditions , including approval of the merger by the holders of a majority of the outstanding shares of pacer common stock . xpo 's and merger subsidiary 's obligations to consummate the merger are not subject to any condition related to the availability of financing . revolving loan credit agreement on october 18 , 2013 , we and certain of our wholly-owned subsidiaries , as borrowers , entered into a $ 125.0 million multicurrency secured revolving loan credit agreement ( the credit agreement ) with the lender parties thereto and morgan stanley senior funding , inc. , as administrative agent for such lenders , with a maturity of five years . 32 the proceeds of the credit agreement may be used by us for ongoing working capital needs and other general corporate purposes , including strategic acquisitions . borrowings under the credit agreement bear interest at a per annum rate equal to , at our option , the one , two , three or six month ( or such other period less than one month or greater than six months as the lenders may agree ) libor rate plus a margin of 1.75 % to 2.25 % , or a base rate plus a margin of 0.75 % to 1.25 % . we are required to pay an undrawn commitment fee equal to 0.25 % or 0.375 % of the quarterly average undrawn portion of the commitments under the credit agreement , as well as customary letter of credit fees . the margin added to libor , or base rate , will depend on the quarterly average availability of the commitments under the credit agreement . story_separator_special_tag sg & a expense increased 539.1 % to $ 21.7 million in 2012 from $ 3.4 million in 2011. the increase in sg & a expense was associated with the addition of turbo , kelron , continental and birddog , as well as investments in sales force recruitment and the opening of new offices . our freight brokerage operations generated an operating loss of $ 5.6 million in 2012 compared to operating income of $ 1.3 million in 2011. the reduction in operating income was attributable to the increase in sg & a expense and the lower gross margin percentage associated with our cold-start sales offices . expedited transportation statement of operations data for the year ended december 31 , ( in thousands ) replace_table_token_6_th note : total depreciation and amortization for the expedited transportation operating segment , included in both direct expense and sg & a , was $ 1.4 million , $ 0.5 million and $ 0.6 million , for the years ended december 31 , 2013 , 2012 and 2011 , respectively . expedited transportation year ended december 31 , 2013 compared to year ended december 31 , 2012 revenue in our expedited transportation segment increased 8.3 % to $ 101.8 million in 2013 from $ 94.0 million in 2012. this growth was driven by the acquisition of east coast air charter on february 8 , 2013 partially offset by a decline in the rest of our over-the-road expedited business . 38 direct expenses consist primarily of payments to independent owner operators and contract carriers for ground transportation and air charter services , insurance and truck leasing expense . expedited transportation gross margin dollars increased 1.7 % to $ 17.2 million in 2013 from $ 16.9 million in 2012. as a percentage of revenue , expedited transportation gross margin was 16.8 % in 2013 , compared to 17.9 % in 2012. the decrease in gross margin as a percentage of revenue primarily reflects a soft expedited freight environment in the first half of the year as well as the addition of expedited air charter revenue from the 2013 acquisition of east coast air charter ; air charter services typically generate higher gross revenue but lower gross margin percentage than our over-the-road expedited business . sg & a expense increased 18.9 % to $ 12.0 million in 2013 from $ 10.1 million in 2012. the increase was due to the addition of east coast air charter , particularly intangible amortization associated with the acquisition . as a percentage of revenue , sg & a expense increased to 11.7 % in 2013 compared to 10.7 % in 2012. operating income decreased to $ 5.2 million in 2013 compared to $ 6.8 million in 2012. the decrease in operating income was primarily related to the decrease in gross margin as a percent of revenue , as described above . management 's growth strategy for our expedited transportation segment is based on : targeted investments to expand the sales and service workforce , in order to capture key opportunities in specialized areas ( e.g . , cross-border , refrigeration and air charter ) ; an increased focus on carrier recruitment and retention , as well as improved utilization of the current carrier fleet ; technology upgrades to improve efficiency in sales and carrier procurement ; selective acquisitions of non-asset based expedited businesses that would benefit from our scale and potential access to capital ; and cross-selling of expedited transportation services to customers of our other business segments . year ended december 31 , 2012 compared to year ended december 31 , 2011 revenue in our expedited transportation segment increased 7.4 % to $ 94.0 million in 2012 from $ 87.6 million in 2011. this growth was driven by an increase in temperature control and international revenue as well as an increase in air charter revenue related to a customer project completed in the first quarter of 2012. expedited transportation gross margin dollars decreased 7.6 % to $ 16.9 million in 2012 from $ 18.3 million in 2011. as a percentage of revenue , expedited transportation gross margin was 17.9 % in 2012 , compared to 20.9 % in 2011. the decrease in gross margin as a percentage of revenue primarily reflects higher rates paid to independent fleet owners and owner-operators , effective march 1 , 2012 , and an increase in costs associated with fleet recruiting initiatives . sg & a expense remained flat at $ 10.1 million in 2012 compared to 2011. as a percentage of revenue , sg & a expense decreased to 10.7 % in 2012 compared to 11.5 % in 2011. operating income decreased to $ 6.8 million in 2012 compared to $ 8.2 million in 2011. the decrease in operating income was primarily related to the decrease in gross margin as a percent of revenue and an increase in sg & a , as described above . 39 freight forwarding statement of operations data for the year ended december 31 , ( in thousands ) replace_table_token_7_th freight forwarding year ended december 31 , 2013 compared to year ended december 31 , 2012 revenue in our freight forwarding segment increased 8.1 % to $ 73.2 million in 2013 from $ 67.7 million in 2012. the increase was primarily the result of the opening of new freight forwarding locations . direct expense consists primarily of payments for purchased transportation and commissions paid to freight forwarding 's independently-owned stations . freight forwarding 's gross margin dollars increased 31.1 % to $ 10.2 million in 2013 from $ 7.8 million in 2012. as a percentage of revenue , freight forwarding gross margin increased to 14.0 % in 2013 as compared to 11.5 % in 2012. the increase in gross margin percentage was primarily driven by branch conversions from independent ownership to company ownership . sg & a expense increased 67.7 % to $ 11.2 million in 2013 from $ 6.7 million in 2012. as a percentage of revenue , sg

